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[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1614 Introduced in House (IH)]

107th CONGRESS
  1st Session
                                H. R. 1614

    To amend the Elementary and Secondary Education Act of 1965, to 
 reauthorize and make improvements to that Act, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                             April 26, 2001

Mr. Hoeffel (for himself and Mr. Maloney of Connecticut) introduced the 
 following bill; which was referred to the Committee on Education and 
                             the Workforce

_______________________________________________________________________

                                 A BILL

 
    To amend the Elementary and Secondary Education Act of 1965, to 
 reauthorize and make improvements to that Act, and for other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Education Reform 
Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. Declaration of priorities.
                      TITLE I--STUDENT PERFORMANCE

Sec. 101. Heading.
Sec. 103. Authorization of appropriations.
Sec. 104. Reservation for school improvement.
Part A--Improving Basic Programs Operated by Local Educational Agencies

Sec. 105. State plans.
Sec. 106. Local educational agency plans.
Sec. 107. Schoolwide programs.
Sec. 108. School choice.
Sec. 109. Assessment and local educational agency and school 
                            improvement.
Sec. 110. State assistance for school support and improvement.
Sec. 111. Parental involvement changes.
Sec. 112. Qualifications for teachers and paraprofessionals.
Sec. 113. Professional development.
Sec. 114. Fiscal requirements.
Sec. 115. Coordination requirements.
Sec. 116. Grants for the outlying areas and the Secretary of the 
                            Interior.
Sec. 117. Amounts for grants.
Sec. 118. Basic grants to local educational agencies.
Sec. 119. Concentration grants.
Sec. 120. Targeted grants.
Sec. 121. Special allocation procedures.
              Part B--Even Start Family Literacy Programs

Sec. 131. Program authorized.
Sec. 132. Applications.
Sec. 133. Research.
                Part C--Education of Migratory Children

Sec. 141. Comprehensive needs assessment and service-delivery plan; 
                            authorized activities.
Part D--Prevention and Intervention Programs for Children and Youth Who 
         Are Neglected, Delinquent, or at Risk of Dropping Out

Sec. 151. State plan and State agency applications.
Sec. 152. Use of funds.
  Part E--Federal Evaluations, Demonstrations, and Transition Projects

Sec. 161. Evaluations.
Sec. 162. Demonstrations of innovative practices.
             Part F--Rural Education Development Initiative

Sec. 171. Rural education development initiative.
                       Part G--General Provisions

Sec. 181. Federal regulations.
Sec. 182. State administration.
TITLE II--TEACHER AND PRINCIPAL QUALITY, PROFESSIONAL DEVELOPMENT, AND 
                               CLASS SIZE

Sec. 201. Teacher and principal quality, professional development, and 
                            class size.
TITLE III--LANGUAGE MINORITY STUDENTS AND INDIAN, NATIVE HAWAIIAN, AND 
                        ALASKA NATIVE EDUCATION

Sec. 301. Language minority students.
Sec. 302. Emergency immigrant education program.
Sec. 303. Indian, Native Hawaiian, and Alaska Native education.
                     TITLE IV--PUBLIC SCHOOL CHOICE

Sec. 401. Public school choice.
Sec. 402. Development of public school choice programs; report cards.
                          TITLE V--IMPACT AID

Sec. 501. Impact aid.
      TITLE VI--HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES

Sec. 601. High performance and quality education initiatives.
                       TITLE VII--ACCOUNTABILITY

Sec. 701. Accountability.
               TITLE VIII--GENERAL PROVISIONS AND REPEALS

Sec. 801. Repeals, transfers, and redesignations regarding titles VIII 
                            and XIV.
Sec. 802. Other repeals. 
                   TITLE IX--TECHNOLOGY FOR EDUCATION

Sec. 901. Technology for education.
          TITLE X--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

Sec. 1001. Safe and drug-free schools and communities.
              TITLE XI--PROGRAMS OF NATIONAL SIGNIFICANCE

Sec. 1101. Programs of national significance.

SEC. 2. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a section or other provision, the reference shall be considered to 
be made to a section or other provision of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6301 et seq.).

SEC. 3. DECLARATION OF PRIORITIES.

    Congress declares that our national educational priorities are to--
            (1) introduce real accountability by making public 
        elementary school and secondary school education funding 
        performance-based rather than a guaranteed source of revenue 
        for States and local educational agencies;
            (2) require State educational agencies and local 
        educational agencies to establish high student performance 
        objectives, and to provide the State educational agencies and 
        local educational agencies with flexibility in using Federal 
        resources to ensure that the performance objectives are met;
            (3) provide Federal support to vital national priorities, 
        including compensatory education for disadvantaged children and 
        youth, teacher quality and professional development, programs 
        for limited English proficient students, student safety, and 
the incorporation of educational technology;
            (4) concentrate Federal education funding on impoverished 
        areas where elementary schools and secondary schools are most 
        likely to be in distress;
            (5) sanction State educational agencies and local 
        educational agencies that consistently fail to meet established 
        benchmarks; and
            (6) reward State educational agencies, local educational 
        agencies, and elementary schools and secondary schools that 
        demonstrate high performance.

                      TITLE I--STUDENT PERFORMANCE

SEC. 101. HEADING.

    The heading for title I (20 U.S.C. 6301 et seq.) is amended to read 
as follows:

                     ``TITLE I--STUDENT PERFORMANCE

``SEC. 102. FINDINGS, POLICY, AND PURPOSE.

    Section 1001 (20 U.S.C. 6301) is amended to read as follows:

``SEC. 1001. FINDINGS, POLICY AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) Despite more than 3 decades of Federal assistance, a 
        sizable achievement gap remains between low-income and middle-
        class students.
            ``(2) The 1994 reauthorization of the Elementary and 
        Secondary Education Act of 1965 was an important step in 
focusing our Nation's priorities on closing the achievement gap between 
poor and affluent students in the United States. The Federal Government 
must continue to build on these improvements made in 1994 by holding 
States and local educational agencies accountable for student 
achievement.
            ``(3) States can help close this achievement gap by 
        developing challenging curriculum content and student 
        performance standards so that all elementary school and 
        secondary school students perform at an advanced level. States 
        should implement vigorous and comprehensive student performance 
        assessments, such as the National Assessment of Educational 
        Progress (NAEP) so as to measure fully the progress of our 
        Nation's students.
            ``(4) In order to ensure that no child is left behind in 
        the new economy, the Federal Government must better target 
        Federal resources on those children who are most at-risk for 
        falling behind academically.
            ``(5)(A) Title I funds have been targeted on high-poverty 
        areas, but not to the degree they should be as demonstrated by 
        the following:
            ``(B) Although 95 percent of schools with poverty levels of 
        75 percent to 100 percent receive title I funding, 20 percent 
        of schools with poverty levels of 50 to 74 percent do not 
        receive any title I funding.
            ``(C) Only 64 percent of schools with poverty levels in the 
        35 percent to 49 percent range receive title I funding.
            ``(6) Title I funding should be significantly increased and 
        more effectively targeted to ensure that all low-income 
        students have an opportunity to excel academically.
            ``(7) The Federal Government should provide greater 
        decisionmaking authority and flexibility to schools and 
        teachers in exchange for greater responsibility for student 
        performance. Federal, State, and local efforts should be 
        focused on raising the academic achievement of all students. 
        Our Nation's children deserve nothing less than holding 
        accountable those responsible for shaping our childrens' future 
        and our country's future.
    ``(b) Policy.--Congress declares that it is the policy of the 
United States to ensure that all students receive a high-quality 
education by holding States, local educational agencies, and elementary 
schools and secondary schools accountable for increased student 
academic performance results, and by facilitating improved classroom 
instruction.
    ``(c) Purposes.--The purposes of this title are as follows:
            ``(1) To eliminate the existing 2-tiered educational 
        system, which set lower academic expectations for impoverished 
        students than for affluent students.
            ``(2) To require all States to have challenging content and 
        student performance standards and assessment measures in place.
            ``(3) To require all States to ensure adequate yearly 
        progress for all students by establishing annual, numerical 
        performance objectives.
            ``(4) To ensure that all title I students receive 
        educational instruction from a fully qualified teacher.
            ``(5) To support State and local educational agencies in 
        identifying, assisting, and correcting low-performing schools.
            ``(6) To increase Federal funding for part A programs for 
        disadvantaged students in return for increased academic 
        performance of all students.
            ``(7) To target Federal funding to local educational 
        agencies serving the highest percentages of low-income 
        students.''.

SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

    Section 1002 (20 U.S.C. 6302) is amended to read as follows:

``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Local Educational Agency Grants.--For the purpose of carrying 
out part A, other than section 1120(e), there are authorized to be 
appropriated $12,000,000,000 for fiscal year 2001 and such sums as may 
be necessary for each of the 4 succeeding fiscal years.
    ``(b) Even Start.--For the purpose of carrying out part B, there 
are authorized to be appropriated such sums as may be necessary for 
fiscal year 2001 and each of the 4 succeeding fiscal years.
    ``(c) Education of Migratory Children.--For the purpose of carrying 
out part C, there are authorized to be appropriated such sums as may be 
necessary for fiscal year 2001 and each of the 4 succeeding fiscal 
years.
    ``(d) Prevention and Intervention Programs for Youth Who Are 
Neglected, Delinquent, or At Risk of Dropping Out.--For the purpose of 
carrying out part D, there are authorized to be appropriated such sums 
as may be necessary for fiscal year 2002 and each of the 4 succeeding 
fiscal years.
    ``(e) Capital Expenses.--For the purpose of carrying out section 
1120(e), there are authorized to be appropriated $12,000,000 for fiscal 
year 2002 and $5,000,000 for fiscal year 2003.
    ``(f) Federal Activities.--For the purpose of carrying out sections 
1501 and 1502, there are authorized to be appropriated such sums as may 
be necessary for fiscal year 2002 and each of the 4 succeeding fiscal 
years.''.

SEC. 104. RESERVATION FOR SCHOOL IMPROVEMENT.

    Section 1003 (20 U.S.C. 6303) is amended to read as follows:

``SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.

    ``(a) State Reservations.--
            ``(1) In general.--Each State educational agency shall 
        reserve 2.5 percent of the amount the State educational agency 
        receives under part A for fiscal years 2002 and 2003, and 3.5 
        percent of that amount for fiscal years 2004 through 2006, to 
        carry out paragraph (2) and to carry out the State educational 
        agency's responsibilities under sections 1116 and 1117, 
        including the State educational agency's statewide system of 
        technical assistance and support for local educational 
        agencies.
            ``(2) Uses.--Of the amount reserved under paragraph (1) for 
        any fiscal year, the State educational agency shall make 
        available at least 80 percent of such amount directly to local 
        educational agencies.

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

SEC. 105. STATE PLANS.

    Section 1111 (20 U.S.C. 6311) is amended to read as follows:

``SEC. 1111. STATE PLANS.

    ``(a) Plans Required.--
            ``(1) In general.--Any State educational agency desiring a 
        grant under this part shall submit to the Secretary a plan, 
        developed in consultation with local educational agencies, 
        teachers, pupil services personnel, administrators (including 
        administrators of programs described in other parts of this 
        title), local school boards, other staff, and parents, that 
        satisfies the requirements of this section and that is 
        coordinated with other programs under this Act, the Individuals 
        with Disabilities Education Act, the Carl D. Perkins Vocational 
        and Technical Education Act of 1998, and the Head Start Act.
            ``(2) Consolidated plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a consolidated plan 
        under section 8302.
    ``(b) Standards, Assessments, and Accountability.--
            ``(1) Challenging standards.--
                    ``(A) In general.--Each State plan shall 
                demonstrate that the State has adopted challenging 
                content standards and challenging student performance 
                standards that will be used by the State, and the local 
                educational agencies, and elementary schools and 
                secondary schools, within the State to carry out this 
                part.
                    ``(B) Uniformity.--The standards required by 
                subparagraph (A) shall be the same standards that the 
                State applies to all elementary schools and secondary 
                schools within the State and all children attending 
                such schools.
                    ``(C) Subjects.--The State shall have such 
                standards for elementary school and secondary school 
                children served under this part in subjects determined 
                by the State, but including at least mathematics, 
                science, and English language arts, and which shall 
                include the same knowledge, skills, and levels of 
                performance expected of all children.
                    ``(D) Standards.--Standards under this paragraph 
                shall include--
                            ``(i) challenging content standards in 
                        academic subjects that--
                                    ``(I) specify what children are 
                                expected to know and be able to do;
                                    ``(II) contain coherent and 
                                rigorous content; and
                                    ``(III) encourage the teaching of 
                                advanced skills; and
                            ``(ii) challenging student performance 
                        standards that--
                                    ``(I) are aligned with the State's 
                                content standards;
                                    ``(II) describe 2 levels of high 
                                performance, proficient and advanced 
                                levels of performance, that determine 
                                how well children are mastering the 
                                material in the State content 
                                standards; and
                                    ``(III) describe a third level of 
                                performance, a basic level of 
                                performance, to provide complete 
                                information about the progress of the 
                                lower performing children toward 
                                achieving to the proficient and 
                                advanced levels of performance.
                    ``(E) Additional subjects.--For the subjects in 
                which students will be served under this part, but for 
                which a State is not required under subparagraphs (A), 
                (B), and (C) to develop, and has not otherwise 
                developed, challenging content and student performance 
                standards, the State plan shall describe a strategy for 
                ensuring that such students are taught the same 
                knowledge and skills and held to the same expectations 
                as are all children.
                    ``(F) Special rule.--In the case of a State that 
                allows local educational agencies to adopt more 
                rigorous standards than those set by the State, local 
                educational agencies shall be allowed to implement such 
                standards.
            ``(2) Adequate yearly progress.--
                    ``(A) In general.--Each State plan shall 
                demonstrate, based on assessments described under 
                paragraph (4), what constitutes adequate yearly 
                progress of--
                            ``(i) any school served under this part 
                        toward enabling all children to meet the 
                        State's challenging student performance 
                        standards;
                            ``(ii) any local educational agency that 
                        receives funds under this part toward enabling 
                        all children in schools served by the local 
                        educational agency and receiving assistance 
                        under this part to meet the State's challenging 
                        student performance standards; and
                            ``(iii) the State in enabling all children 
                        in schools receiving assistance under this part 
                        to meet the State's challenging student 
                        performance standards.
                    ``(B) Definition.--Adequate yearly progress shall 
                be defined by the State in a manner that--
                            ``(i) applies the same high standards of 
                        academic performance to all students in the 
                        State;
                            ``(ii) takes into account the progress of 
                        all students in the State and in each local 
                        educational agency and school served under 
                        section 1114 or 1115;
                            ``(iii) uses the State challenging content 
                        and challenging student performance standards 
                        and assessments described in paragraphs (1) and 
                        (4);
                            ``(iv) compares separately, within each 
                        State, local educational agency, and school, 
                        the performance and progress of students, by 
                        each major ethnic and racial group, by gender, 
                        by English proficiency status, and by 
                        economically disadvantaged students as compared 
                        to students who are not economically 
                        disadvantaged (except that such disaggregation 
                        shall not be required in a case in which the 
                        number of students in a category is 
                        insufficient to yield statistically reliable 
                        information or the results would reveal 
                        individually identifiable information about an 
                        individual student);
                            ``(v) compares the proportions of students 
                        at the basic, proficient, and advanced levels 
                        of performance with the proportions of students 
                        at each of the 4 performance levels in the same 
                        grade in the previous school year;
                            ``(vi) endeavors to include other academic 
                        measures such as promotion, attendance, drop-
                        out rates, completion of college preparatory 
                        courses, college admission tests taken, and 
                        secondary school completion, except that 
                        failure to meet another academic measure, other 
                        than student performance on State assessments 
                        aligned with State standards, shall not provide 
                        the sole basis for designating a district or 
                        school as in need of improvement;
                            ``(vii) includes annual numerical 
                        objectives for improving the performance of all 
                        groups described in clause (iv) and narrowing 
                        gaps in performance between these groups in, at 
                        least, the areas of mathematics and English 
                        language arts; and
                            ``(viii) includes a timeline for ensuring 
                        that each group of students described in clause 
                        (iv) meets or exceeds the State's proficient 
                        level of performance on each State assessment 
                        used for the purposes of this section and 
                        section 1116 not later than 10 years after the 
                        date of enactment of the Education Reform Act.
                    ``(C) Accountability.--Each State plan shall 
                demonstrate that the State has developed and is 
                implementing a statewide accountability system that has 
                been or will be effective in ensuring that all local 
                educational agencies, elementary schools, and secondary 
                schools are making adequate yearly progress as defined 
                in section 1111(b)(2)(B). Each State accountability 
                system shall--
                            ``(i) be based on the standards and 
                        assessments adopted under paragraphs (1) and 
                        (4) and take into account the performance of 
                        all students required by law to be included in 
                        such assessments;
                            ``(ii) be the same accountability system 
                        the State uses for all schools or all local 
                        educational agencies, if the State has an 
                        accountability system for all schools or all 
                        local educational agencies;
                            ``(iii) provide for the identification of 
                        schools or local educational agencies receiving 
                        funds under this part that for 2 consecutive 
                        years have exceeded such schools' or agencies' 
                        adequate yearly progress goals so that 
                        information about the practices and strategies 
                        of such schools or agencies can be disseminated 
                        to other schools in the local educational 
                        agency and in the State and such schools can be 
                        considered for rewards provided under title VII 
                        of this Act;
                            ``(iv) provide for the identification of 
                        schools and local educational agencies in need 
                        of improvement, as required by section 1116, 
                        and for the provision of technical assistance, 
                        professional development, and other capacity-
                        building as needed, including those measures 
                        specified in sections 1116(d)(9) and 1117, to 
                        ensure that schools and local educational 
                        agencies so identified have the resources, 
                        skills, and knowledge needed to carry out their 
                        obligations under sections 1114 and 1115 and to 
                        meet the requirements for annual improvement 
                        described in paragraph (2); and
                            ``(v) provide for the identification of 
                        schools and local educational agencies for 
                        corrective action or actions as required 
by section 1116, and for the implementation of corrective actions 
against school and school districts when such actions are required 
under such section.
                    ``(D) Annual improvement for states.--For a State 
                to make adequate yearly progress under subparagraph 
                (A)(iii), not less than 80 percent of the local 
                educational agencies within the State shall meet the 
                State's criteria for adequate yearly progress.
                    ``(E) Annual improvement for local educational 
                agencies.--For a local educational agency to make 
                adequate yearly progress under subparagraph (A)(ii), 
                not less than 80 percent of the schools served by the 
                local educational agency shall meet the State's 
                criteria for adequate yearly progress, except that this 
                subparagraph shall not apply to a local educational 
                agency that serves 5 or fewer schools.
                    ``(F) Annual improvement for schools.--For an 
                elementary school or a secondary school to make 
                adequate yearly progress under subparagraph (A)(i), not 
                less than 80 percent of each group of students 
                described in subparagraph (B)(iv) who are enrolled in 
                such school shall take the assessments described 
in paragraph (4)(D) and in section 612(a)(17)(A) of the Individuals 
with Disabilities Education Act.
                    ``(G) Public notice and comment.--
                            ``(i) In general.--Each State shall submit 
                        information in the State plan demonstrating 
                        that in developing such plan--
                                    ``(I) the State diligently sought 
                                public comment from a range of 
                                institutions and individuals in the 
                                State with an interest in improved 
                                student achievement; and
                                    ``(II) the State made and will 
                                continue to make a substantial effort 
                                to ensure that information regarding 
                                content standards, performance 
                                standards, assessments, and the State 
                                accountability system is widely known 
                                and understood by the public, parents, 
                                teachers, and school administrators 
                                throughout the State.
                            ``(ii) Efforts.--The efforts described in 
                        clause (i), at a minimum, shall include annual 
                        publication of such information and explanatory 
                        text to the public through such means as the 
                        Internet, the media, and public agencies. Non-
                        English language shall be used to communicate 
                        with parents where appropriate.
                    ``(H) Review.--The Secretary shall review 
                information from each State on the adequate yearly 
                progress of schools and local educational agencies 
                within the State required under subparagraphs (A) and 
                (B) for the purpose of determining State and local 
                compliance with section 1116.
            ``(3) State authority.--If a State educational agency 
        provides evidence that is satisfactory to the Secretary that 
        neither the State educational agency nor any other State 
        government official, agency, or entity has sufficient authority 
        under State law to adopt curriculum content and student 
        performance standards, and assessments aligned with such 
        standards, that will be applicable to all students enrolled in 
        the State's public schools, then the State educational agency 
        may meet the requirements of this subsection by--
                    ``(A) adopting curriculum content and student 
                performance standards and assessments that meet the 
                requirements of this subsection, on a statewide basis, 
                and limiting the applicability of such standards and 
                assessments to students served under this part; or
                    ``(B) adopting and implementing policies that 
                ensure that each local educational agency within a 
                State receiving a grant under this part will adopt 
                curriculum content and student performance standards 
                and assessments--
                            ``(i) that are aligned with the standards 
                        described in subparagraph (A); and
                            ``(ii) that meet the criteria in this 
                        subsection and any regulations regarding such 
                        standards and assessments that the Secretary 
                        may publish and that are applicable to all 
                        students served by each such local educational 
                        agency.
            ``(4) Assessments.--Each State plan shall demonstrate that 
        the State has implemented a set of high quality, yearly student 
        assessments that include, at a minimum, assessments in 
        mathematics, science, and English language arts, that will be 
        used, starting not later than the 2001-2002 school year as the 
        primary means of determining the yearly performance of each 
        local educational agency and school served by the State under 
        this title in enabling all children to meet the State's 
        challenging content and student performance standards. Such 
        assessments shall--
                    ``(A) be the same assessments used to measure the 
                performance of all children, if the State measures the 
                performance of all children;
                    ``(B) be aligned with the State's challenging 
                content and student performance standards, and provide 
                coherent information about student attainment of such 
                standards;
                    ``(C) be used only for purposes for which such 
                assessments are valid and reliable, and be consistent 
                with relevant, nationally recognized professional and 
                technical standards for such assessments;
                    ``(D) measure the performance of students against 
                the challenging State content and student performance 
                standards, and be administered not less than once 
                during--
                            ``(i) grades 3 through 5;
                            ``(ii) grades 6 through 9; and
                            ``(iii) grades 10 through 12;
                    ``(E) include multiple, up-to-date measures of 
                student performance, including measures that assess 
                higher order thinking skills and understanding;
                    ``(F) provide for--
                            ``(i) the participation in such assessments 
                        of all students;
                            ``(ii) the reasonable adaptations and 
                        accommodations for students with disabilities 
                        as defined in 602(3) of the Individuals with 
                        Disabilities Education Act necessary to measure 
                        the achievement of such students relative to 
                        State content and student performance 
                        standards;
                            ``(iii) in the case of a student with 
                        limited English proficiency, the assessment of 
                        such student in the student's native language 
                        if such a native language assessment is more 
                        likely than an English language assessment to 
                        yield accurate and reliable information on what 
                        that student knows and is able to do; and
                            ``(iv) notwithstanding clause (iii), the 
                        assessment (using tests written in English) of 
                        English language arts of any student who has 
                        attended school in the United States (not 
                        including the Commonwealth of Puerto Rico) for 
                        3 or more consecutive school years, except if 
                        the local educational agency determines, on a 
                        case-by-case individual basis, that assessments 
                        in another language and form would likely yield 
                        more accurate and reliable information on what 
                        such students know and can do, the local 
                        educational agency may assess such students in 
                        the appropriate language other than English for 
                        1 additional consecutive year beyond the third 
                        consecutive year; and
                    ``(G) include students who have attended schools in 
                a local educational agency for a full academic year but 
                have not attended a single school for a full academic 
                year, except that the performance of students who have 
                attended more than 1 school in the local educational 
                agency in any academic year shall be used only in 
                determining the progress of the local educational 
                agency;
                    ``(H) provide individual student reports to be 
                submitted to parents, including assessment scores or 
                other information on the attainment of student 
                performance standards; and
                    ``(I) enable results to be disaggregated within 
                each State, local educational agency, and school by 
                gender, by each major racial and ethnic group, by 
                English proficiency status, and by economically 
                disadvantaged students as compared to students who are 
                not economically disadvantaged.
            ``(5) Rigorous criteria.--States are encouraged to use 
        rigorous criteria assessment measures.
            ``(6) First grade literacy assessment.--In addition to 
        those assessments described in paragraph (4), each State 
        receiving funds under this part shall describe in its State 
        plan what reasonable steps it is taking to assist and encourage 
        local educational agencies--
                    ``(A) to measure literacy skills of first graders 
                in schools receiving funds under this part by providing 
                assessments of first graders that are--
                            ``(i) developmentally appropriate;
                            ``(ii) aligned with State content and 
                        student performance standards; and
                            ``(iii) scientifically research-based; and
                    ``(B) to assist and encourage local educational 
                agencies receiving funds under this part in identifying 
                and taking developmentally appropriate and effective 
                interventions in any school served under this part in 
                which a substantial number of first graders have not 
                demonstrated grade-level literacy proficiency by the 
                end of the school year.
            ``(7) Language assessments.--Each State plan shall identify 
        the languages other than English and Spanish that are present 
        in the participating student populations in the State, and 
        indicate the languages for which yearly student assessments are 
        not available and are needed. The State may request assistance 
        from the Secretary if linguistically accessible assessment 
        measures are needed. Upon request, the Secretary shall assist 
        with the identification of appropriate assessment measures in 
        the needed languages, but shall not mandate a specific 
        assessment or mode of instruction.
            ``(8) Assessment development.--A State shall develop and 
        implement the State assessments, including, at a minimum, 
        mathematics and English language arts, by the 2001-2002 school 
        year.
            ``(9) Requirement.--Each State plan shall describe--
                    ``(A) how the State educational agency will assist 
                each local educational agency and school affected by 
                the State plan to develop the capacity to comply with 
                each of the requirements of sections 1114(b), 1115(c), 
                and 1116 that are applicable to such agency or school;
                    ``(B) how the State educational agency will--
                            ``(i) hold each local educational agency 
                        affected by the State plan accountable for 
                        improved student performance, including a 
                        procedure for--
                                    ``(I) identifying local educational 
                                agencies and schools in need of 
                                improvement; and
                                    ``(II) assisting local educational 
                                agencies and schools identified under 
                                subclause (I) to address achievement 
                                problems, including thorough 
                                descriptions of the amounts and types 
                                of professional development to be 
                                provided instructional staff, the 
                                amount of any financial assistance to 
                                be provided by the State under section 
1003, and the amount of any funds to be provided by other sources and 
the activities to be provided by those sources; and
                            ``(ii) implementing corrective action if 
                        assistance is not effective;
                    ``(C) how the State educational agency is providing 
                low-performing students additional academic 
                instruction, such as before- and after-school programs 
                and summer academic programs;
                    ``(D) such other factors the State considers 
                appropriate to provide students an opportunity to 
                achieve the knowledge and skills described in the 
                State's challenging content standards;
                    ``(E) the specific steps the State educational 
                agency will take or the specific strategies the State 
                educational agency will use to ensure that--
                            ``(i) all teachers in both schoolwide 
                        programs and targeted assistance programs are 
                        fully qualified not later than December 31, 
                        2006; and
                            ``(ii) low-income students and minority 
                        students are not taught at higher rates than 
                        other students by unexperienced, uncertified, 
                        or out-of-field teachers; and
                    ``(F) the measures the State educational agency 
                will use to evaluate and publicly report the State's 
                progress in improving the quality of instruction in the 
                schools served by the State educational agency and 
                local educational agencies receiving funding under this 
                Act.
    ``(c) Other Provisions To Support Teaching and Learning.--Each 
State plan shall contain assurances that--
            ``(1) the State educational agency will work with other 
        agencies, including educational service agencies or other local 
        consortia and institutions to provide technical assistance to 
        local educational agencies and elementary schools and secondary 
        schools to carry out the State educational agency's 
        responsibilities under this part, including technical 
        assistance in providing professional development under section 
        1119(A) and technical assistance under section 1117; and
            ``(2)(A) where educational service agencies exist, the 
        State educational agency will consider providing professional 
        development and technical assistance through such agencies; and
            ``(B) where educational service agencies do not exist, the 
        State educational agency will consider providing professional 
        development and technical assistance through other cooperative 
        agreements, such as through a consortium of local educational 
        agencies;
            ``(3) the State educational agency will use the 
        disaggregated results of the student assessments required under 
        subsection (b)(4), and other measures or indicators available 
        to the State, to review annually the progress of each local 
        educational agency and school served under this part to 
        determine whether each such agency and school is making the 
        annual progress necessary to ensure that all students will meet 
        the proficient level of performance on the assessments 
        described in subsection (b)(4) within 10 years of the date of 
        enactment of the Education Reform Act;
            ``(4) the State educational agency will provide the least 
        restrictive and burdensome regulations for local educational 
        agencies and individual elementary schools and secondary 
        schools participating in a program assisted under this part;
            ``(5) the State educational agency will regularly inform 
        the Secretary and the public in the State of how Federal laws, 
        if any, hinder the ability of States to hold local educational 
        agencies and schools accountable for student academic 
        performance;
            ``(6) the State educational agency will encourage 
        elementary schools and secondary schools to consolidate funds 
        from other Federal, State, and local sources for schoolwide 
        reform in schoolwide programs under section 1114;
            ``(7) the State educational agency will modify or eliminate 
        State fiscal and accounting barriers so that elementary schools 
        and secondary schools can easily consolidate funds from other 
        Federal, State, and local sources for schoolwide programs under 
        section 1114;
            ``(8) the State educational agency has involved the 
        committee of practitioners established under section 1703(b) 
        (as redesignated by section 161(2)) in developing and 
        monitoring the implementation of the State plan; and
            ``(9) the State educational agency will inform local 
        educational agencies of the local educational agency's 
        authority to obtain waivers under title VIII and, if the State 
        is an Ed-Flex Partnership State, waivers under the Education 
        Flexibility Partnership Act of 1999.
    ``(d) Peer Review and Secretarial Approval.--The Secretary shall--
            ``(1) establish a peer review process to assist in the 
        review of State plans;
            ``(2) only approve a State plan meeting each of the 
        requirements of this section;
            ``(3) if the Secretary determines that the State plan does 
        not meet each of the requirements of subsection (a), (b), or 
        (c), immediately notify the State of such determination and the 
        reasons for such determination;
            ``(4) not disapprove a State plan before--
                    ``(A) notifying the State educational agency in 
                writing of the specific deficiencies of the State plan;
                    ``(B) offering the State an opportunity to revise 
                the State plan;
                    ``(C) providing technical assistance in order to 
                assist the State to meet the requirements under 
                subsections (a), (b), and (c); and
                    ``(D) providing a hearing;
            ``(5) have the authority to disapprove a State plan for not 
        meeting the requirements of this section, but shall not have 
        the authority to require a State, as a condition of approval of 
        the State plan, to include in, or delete from, such plan 1 or 
more specific elements of the challenging State content standards or to 
use specific assessment instruments or items; and
            ``(6) require a State to submit a revised State plan that 
        meets the requirements of this section to the Secretary for 
        approval not later than 1 year after the date of enactment of 
        the Education Reform Act.
    ``(e) Duration of the Plan.--
            ``(1) In general.--Each State plan shall--
                    ``(A) remain in effect for the duration of the 
                State's participation under this part; and
                    ``(B) be periodically reviewed and revised by the 
                State, as necessary, to reflect changes in the State's 
                strategies and programs under this part.
            ``(2) Additional information.--If the State makes 
        significant changes in its State plan, such as the adoption of 
        new challenging State content standards and State student 
        performance standards, new assessments, or a new definition of 
        adequate yearly progress, the State shall submit such 
        information to the Secretary.
    ``(f) Limitation on Conditions.--Nothing in this part shall be 
construed to authorize an officer or employee of the Federal Government 
to mandate, direct, or control a State's, local educational agency's, 
or elementary school's or secondary school's specific challenging 
content or student performance standards, assessments, curricula, or 
program of instruction, as a condition of eligibility to receive funds 
under this part.
    ``(g) Penalties.--
            ``(1) In general.--If a State fails to meet the statutory 
        deadlines for demonstrating that the State has in place 
        challenging content standards and student performance 
        standards, assessments, a system for measuring and monitoring 
        adequate yearly progress, and a statewide system for holding 
        schools and local educational agencies accountable for making 
        adequate yearly progress with each group of students specified 
        in subsection (b)(2)(B)(iv), the State shall be ineligible to 
        receive any administrative funds under section 1703(c) that 
        exceed the amount received by the State for such purposes in 
        the previous year.
            ``(2) Additional funds.--Based on the extent to which 
        challenging content standards and student performance 
        standards, assessments, systems for measuring and monitoring 
        adequate yearly progress, and a statewide system for holding 
        schools and local educational agencies accountable for making 
        adequate yearly progress with each group of students specified 
        in subsection (b)(2)(B)(iv), are not in place, the Secretary 
        shall withhold additional administrative funds in such amount 
        as the Secretary determines appropriate, except that for each 
        additional year that the State fails to comply with such 
        requirements, the Secretary shall withhold not less than \1/5\ 
        of the amount the State receives for administrative expenses 
        under section 1703(c).
            ``(3) Waiver.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), notwithstanding part D of title VIII, 
                the Education Flexibility Partnership Act of 1999, or 
                any other provision of law, a waiver of this section 
                shall not be granted, except that a State may request a 
                1-time, 1-year waiver to meet the requirements of this 
                section.
                    ``(B) Exception.--A waiver granted pursuant to 
                subparagraph (A) shall not apply to the requirements 
                described under subsection (h).
    ``(h) Special Rule on Science Standards and Assessments.--
Notwithstanding subsection (b) and part D of title IV, no State shall 
be required to meet the requirements under this title relating to 
science standards  or assessments until the beginning of the 2005-2006 
school year.''.

SEC. 106. LOCAL EDUCATIONAL AGENCY PLANS.

    (a) Subgrants.--Section 1112(a)(1) (20 U.S.C. 6312(a)(1)) is 
amended by striking ``'' and all that follows and inserting ``the 
Individuals with Disabilities Education Act, the Carl D. Perkins 
Vocational and Technical Education Act of 1998, the Head Start Act, and 
other Acts, as appropriate.''.
    (b) Plan Provisions.--Section 1112(b) (20 U.S.C. 6312(b)) is 
amended--
            (1) by striking ``Each'' and inserting ``In order to help 
        low-achieving children achieve high standards, each'';
            (2) in paragraph (1)--
                    (A) by striking ``part'' each place it appears and 
                inserting ``title''; and
                    (B) in subparagraph (B), by inserting ``low-
                achieving'' before ``children'';
            (3) in paragraph (4)--
                    (A) in subparagraph (A)--
                            (i) by striking ``program,'' and inserting 
                        ``programs and''; and
                            (ii) by striking ``, and school-to-work 
                        transition programs''; and
                    (B) in subparagraph (B), by striking ``under part 
                C'' and all that follows through ``dropping out'' and 
                inserting ``under part C, neglected or delinquent 
                youth,'';
            (4) in paragraph (7), by striking ``eligible'';
            (5) in paragraph (9), by striking the period and inserting 
        a semicolon; and
            (6) by adding at the end the following new paragraphs:
            ``(10) a description of the actions the local educational 
        agency will take to assist the low-performing schools served by 
        the local educational agency, including schools identified 
        under section 1116 as in need of improvement; and
            ``(11) a description of how the local educational agency 
        will promote the use of alternative instructional methods, and 
        extended learning time, such as an extended school year, 
        before- and after-school programs, and summer programs.''.
    (c) Assurances.--Section 1112(c) (20 U.S.C. 6312(c)) is amended to 
read as follows:
    ``(c) Assurances.--
            ``(1) In general.--Each local educational agency plan shall 
        provide assurances that the local educational agency will--
                    ``(A) specify the steps the local educational 
                agency will take to ensure that all teachers in both 
                schoolwide programs and targeted assistance are fully 
                qualified not later than December 31, 2005 and the 
                strategies the local educational agency will use to 
                ensure that low-income students and minority students 
                are not taught at higher rates than other children by 
                inexperienced, uncertified, or out-of-field teachers, 
                and the measures the agency will use to evaluate and 
                publicly report progress in improving the quality of 
                instruction in schools served by the local educational 
                agency and receiving funding under this Act;
                    ``(B) reserve not less than 10 percent of the funds 
                the agency receives under this part for high quality 
                professional development, as defined in section 1119, 
                for professional instruction staff;
                    ``(C) provide eligible schools and parents with 
                information regarding schoolwide project authority and 
                the ability of such schools to consolidate funds from 
                Federal, State, and local sources;
                    ``(D) provide technical assistance and support to 
                schoolwide programs;
                    ``(E) work in consultation with schools as the 
                schools develop a school plan pursuant to section 
                1114(b)(2), and assist schools in implementing such 
                plans or undertaking activities pursuant to section 
                1115(c), so that each school can make adequate yearly 
                progress toward meeting the challenging State student 
                performance standards;
                    ``(F) use the disaggregated results of the student 
                assessments required under section 1111(b)(4), and 
                other measures or indicators available to the agency, 
                to review annually the progress of each school served 
                by the agency and receiving funds under this title to 
                determine whether or not all schools are making the 
                annual progress necessary to ensure that all students 
                will meet the proficient level of performance on the 
                assessments described in section 1111(b)(4) within 10 
                years of the date of enactment of the Education Reform 
                Act;
                    ``(G) set and hold schools served by the local 
                educational agency accountable for meeting annual 
                numerical goals for improving the performance of all 
                groups of students based on the performance standards 
                set by the State under section 1111(b)(1)(D)(ii);
                    ``(H) fulfill the local educational agency's school 
                improvement responsibilities under section 1116, 
                including taking corrective actions under section 
                1116(c)(9);
                    ``(I) provide the State educational agency with--
                            ``(i) an annual, up-to-date, and accurate 
                        list of all schools served by the local 
                        educational agency that are eligible for school 
                        improvement and corrective action;
                            ``(ii) the reasons why each school 
                        described in clause (i) was identified for 
                        school improvement or corrective action; and
                            ``(iii) the specific plans for improving 
                        student performance in each of the schools 
                        described in clause (i), including the specific 
                        numerical achievement goals for the succeeding 
                        2 school years, for each group of students 
                        specified in section 1111(b)(2)(B)(iv) enrolled 
                        in each such school;
                    ``(J) provide services to eligible children 
                attending private elementary schools and secondary 
                schools in accordance with section 1120, and provide 
                timely and meaningful consultation with private school 
                officials regarding such services;
                    ``(K) take into account the experience of model 
                programs for the educationally disadvantaged and the 
                findings of relevant scientifically based research when 
                developing technical assistance plans for, and 
                delivering technical assistance to, schools served by 
                the local educational agency that are receiving funds 
                under this part and are in school improvement or 
                corrective action;
                    ``(L) in the case of a local educational agency 
                that chooses to use funds under this part to provide 
                early childhood development services to low-income 
                children below the age of compulsory school attendance, 
                ensure that such services comply with the performance 
                standards established under section 641A(a) of the Head 
                Start Act;
                    ``(M) comply with the requirements of section 1119 
                regarding the qualifications of teachers and 
                paraprofessionals;
                    ``(N) inform eligible schools served by the local 
                educational agency of the agency's authority to obtain 
                waivers on such school's behalf under title VIII, and 
                if the State is an Ed-Flex Partnership State, under the 
                Education Flexibility Partnership Act of 1999; and
                    ``(O) coordinate and collaborate, to the extent 
                feasible and necessary as determined by the local 
                educational agency, with other agencies providing 
                services to children, youth, and their families.
            ``(2) Model programs; scientifically based research.--In 
        carrying out paragraph (1)(K)--
                    ``(A) the Secretary shall consult with the 
                Secretary of Health and Human Services on the 
                implementation of such subparagraph, and shall 
                establish procedures (taking into consideration 
                existing State and local laws and local teacher 
contracts) to assist local educational agencies to comply with such 
subparagraph;
                    ``(B) the Secretary shall disseminate to local 
                educational agencies the Head Start performance 
                standards under section 641A(a) of the Head Start Act 
                upon such standard's publication; and
                    ``(C) local educational agencies affected by such 
                subparagraph shall plan for the implementation of such 
                subparagraph (taking into consideration existing State 
                and local laws, and local teacher contracts), including 
                pursuing the availability of other Federal, State, and 
                local funding sources to assist in compliance with such 
                subparagraph.
            ``(3) Inapplicability.--The provisions of this subsection 
        shall not apply to preschool programs using the Even Start 
        model or to Even Start programs.''.
    (d) Plan Development and Duration.--Section 1112(d) (20 U.S.C. 
6312(d)) is amended to read as follows:
    ``(d) Plan Development and Duration.--
            ``(1) Consultation.--Each local educational agency plan 
        shall be developed in consultation with teachers, principals, 
        local school boards, administrators (including administrators 
        of programs described in other parts of this title), other 
        appropriate school personnel, and parents of children in 
        elementary schools and secondary schools served under this 
        part.
            ``(2) Duration.--Each plan described in paragraph (1) shall 
        remain in effect for the duration of the local educational 
        agency's participation under this part.
            ``(3) Review.--Each local educational agency shall 
        periodically review, and as necessary, revise its plan.''.
    (e) State Approval.--Section 1112(e) (20 U.S.C. 6312(e)) is amended 
to read as follows:
    ``(e) Peer Review and State Approval.--
            ``(1) In general.--Each local educational agency plan shall 
        be filed according to a schedule established by the State 
        educational agency.
            ``(2) Approval.--The State educational agency shall 
        establish a peer review process to assist in the review of 
        local educational agency plans. The State educational agency 
        shall approve a local educational agency plan only if the State 
        educational agency determines that the local educational agency 
        plan--
                    ``(A) will enable elementary schools and secondary 
                schools served by the local educational agency and 
                under this part to help all groups of students 
                specified in section 1111(b)(1) meet or exceed the 
                proficient level of performance on the assessments 
                required under section 1111(b)(4) within 10 years of 
                the date of enactment of the Education Reform Act; and
                    ``(B) meets each of the requirements of this 
                section.
            ``(3) State review.--Each State educational agency shall at 
        least annually review each local agency plan approved under 
        this subsection against the results of the disaggregated 
        assessments required under section 1111(b)(4) for each local 
        educational agency to ensure that the progress of all students 
        in schools served by each local educational agency under this 
        part is adequate to ensure that all students in the State will 
        meet or exceed the proficient standard level of performance on 
        assessments within 10 years of the date of enactment of the 
        Education Reform Act.
            ``(4) Public review.--Each State educational agency will 
        make publicly available each local educational agency plan.''.

SEC. 107. SCHOOLWIDE PROGRAMS.

    (a) Use of Funds for Schoolwide Programs.--Section 1114(a) (20 
U.S.C. 6314(a)) is amended--
            (1) in paragraph (1), by striking ``school described in 
        subparagraph (A)'' and all that follows through ``such 
        families.'' the second place it appears and inserting ``school 
        that serves an eligible school attendance area in which--
                    ``(A) not less than 40 percent of the children are 
                from low-income families; or
                    ``(B) not less than 40 percent of the children 
                enrolled in the school are from such families.''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``subsections 
                (c)(1) and (e) of''; and
                    (B) in subparagraph (B), by striking ``subsections 
                (c)(1) and (e) of''.
    (b) Components of a Schoolwide Program.--Section 1114(b) (20 U.S.C. 
6314(b)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``section 
                1111(b)(1)'' and inserting ``section 1111(b)'';
                    (B) in subparagraph (B)--
                            (i) in clause (i), by striking ``section 
                        1111(b)(1)(D)'' and inserting ``1111(b)'';
                            (ii) in clause (iii)(II), by inserting 
                        ``and'' after the semicolon;
                            (iii) in clause (iv)(II), by striking ``; 
                        and'' and inserting a period; and
                            (iv) by striking clause (vii); and
                    (C) in subparagraph (G), by striking ``section 
                1112(b)(1)'' and inserting ``section 1112''; and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by striking ``Improving America's 
                        Schools Act of 1994'' and inserting ``Education 
                        Reform Act'';
                            (ii) by striking ``subsections (c)(1) and 
                        (e) of''; and
                            (iii) in clause (iv), by striking ``section 
                        1111(b)(3)'' and inserting ``section 
                        1111(b)(4)'';
                    (B) in subparagraph (B), by striking ``paragraphs 
                (1) and (3) of section 1111(b)'' and inserting 
                ``paragraphs (1) and (4) of section 1111(b)''; and
                    (C) in subparagraph (C)(i)--
                            (i) in subclause (I), by striking 
                        ``subsections (c) and (e) of''; and
                            (ii) in subclause (II), by striking 
                        ``Improving America's Schools Act of 1994'' and 
                        inserting ``Education Reform Act''.

SEC. 108. SCHOOL CHOICE.

    Section 1115A (20 U.S.C. 6316) is amended to read as follows:

``SEC. 1115A. SCHOOL CHOICE.

    ``(a) Choice Programs.--A local educational agency may use funds 
under this part, in combination with State, local, and private funds, 
to develop and implement public school choice programs, for children 
eligible for assistance under this part, that permit parents to select 
the public school that their child will attend and are consistent with 
State and local law, policy, and practice related to public school 
choice and local pupil transfer.
    ``(b) Choice Plan.--A local educational agency that chooses to 
implement a public school choice program under this section shall first 
develop a plan that--
            ``(1) contains an assurance that all eligible students 
        across grade levels served under this part will have equal 
        access to the program;
            ``(2) contains an assurance that the program does not 
        include elementary schools or secondary schools that follow a 
        racially discriminatory policy;
            ``(3) describes how elementary schools or secondary schools 
        will use resources under this part, and from other sources, to 
        implement the plan;
            ``(4) contains an assurance that the plan will be developed 
        with the involvement of parents and others in the community to 
        be served, and individuals who will carry out the plan, 
        including administrators, teachers, principals, and other 
        staff;
            ``(5) contains an assurance that parents of eligible 
        students served by the local educational agency will be given 
        prompt notice of the existence of the public school choice 
        program, the program's availability to such parents, and a 
        clear explanation of how the program will operate;
            ``(6) contains an assurance that the public school choice 
        program--
                    ``(A) shall include charter schools and any other 
                public elementary school and secondary school; and
                    ``(B) shall not include as a `receiving school' an 
                elementary school or a secondary school that--
                            ``(i) is or has been identified as a school 
                        in, or eligible for, school improvement or 
                        corrective action;
                            ``(ii) has been in school improvement or 
                        corrective action within the last 2 consecutive 
                        academic years; or
                            ``(iii) is at risk of being eligible for 
                        school improvement within the next school year;
            ``(7) contains an assurance that transportation services or 
        the costs of transportation to and from the public school 
        choice program--
                    ``(A) may be provided by the local educational 
                agency with funds under this part and from other 
                sources; and
                    ``(B) shall not be provided from funds made 
                available under this part to the local educational 
                agency that exceed 10 percent of such funds; and
            ``(8) contains an assurance that such local educational 
        agency will comply with the other requirements of this part.''.

SEC. 109. ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL 
              IMPROVEMENT.

    (a) Local Review.--Section 1116(a) (20 U.S.C. 6317(a)) is amended--
            (1) in paragraph (2), by striking ``1111(b)(2)(A)(i)'' and 
        inserting ``1111(b)(2)(B)'';
            (2) in paragraph (3)--
                    (A) by striking ``individual school performance 
                profiles'' and inserting ``school report cards'';
                    (B) by striking ``1111(b)(3)(I)'' and inserting 
                ``1111(b)(4)(I)''; and
                    (C) by striking ``and'' after the semicolon;
            (3) in paragraph (4), by striking the period and inserting 
        ``; and''; and
            (4) by adding at the end the following:
            ``(5) review the effectiveness of the actions and 
        activities the schools are carrying out under this part with 
        respect to parental involvement assisted under this Act.''.
    (b) School Improvement.--Section 1116(c) (20 U.S.C. 6317(c)) is 
amended to read as follows:
    ``(c) School Improvement.--
            ``(1) In general.--A local educational agency shall 
        identify for school improvement any elementary school or 
secondary school served under this part that--
                    ``(A) for 2 consecutive years failed to make 
                adequate yearly progress as defined in the State's plan 
                under section 1111(b)(2); or
                    ``(B) was in, or was eligible for, school 
                improvement status under this section on the day 
                preceding the date of the enactment of the Education 
                Reform Act.
            ``(2) Transition.--The 2-year period described in paragraph 
        (1)(A) shall include any continuous period of time immediately 
        preceding the date of the enactment of the Education Reform Act 
        during which an elementary school or a secondary school did not 
        make adequate yearly progress as defined in the State's plan, 
        as such plan was in effect on the day preceding the date of 
        enactment of the Education Reform Act.
            ``(3) Targeted assistance schools.--To determine if an 
        elementary school or a secondary school that is conducting a 
        targeted assistance program under section 1115 should be 
        identified as in need of improvement under this subsection, a 
local educational agency may choose to review the progress of only 
those students in such school who are served, or are eligible for 
services, under this part.
            ``(4) Opportunity to review and present evidence.--(A) 
        Before identifying an elementary school or a secondary school 
        for school improvement under paragraph (1), the local 
        educational agency shall provide the school with an opportunity 
        to review the school level data, including assessment data, on 
        which the proposed identification is based.
            ``(B) If the principal of a school proposed for 
        identification as in need of school improvement believes that 
        the proposed identification is in error for statistical or 
        other substantive reasons, the principal may provide supporting 
        evidence to the local educational agency, which the agency 
        shall consider before making a final determination.
            ``(5) Time limits.--Not later than 30 days after a local 
        educational agency makes its initial determination that a 
        school served by the agency and receiving assistance under this 
        part is eligible for school improvement, the local educational 
        agency shall make public a final determination on the status of 
        the school.
            ``(6) Notification to parents.--A local educational agency 
        shall, in an easily understandable format, and in the 3 
        languages, other than English, spoken by the greatest number of 
        individuals in the area served by the local educational agency, 
        provide in writing to parents of each student in an elementary 
        school or a secondary school identified for school 
        improvement--
                    ``(A) an explanation of what the school improvement 
                identification means, and how the school identified for 
                improvement compares in terms of academic performance 
                to other elementary schools or secondary schools served 
                by the local educational agency and the State 
                educational agency;
                    ``(B) the reasons for such identification;
                    ``(C) the data on which such identification was 
                based;
                    ``(D) an explanation of what the school identified 
                for improvement is doing to address the problem of low 
                achievement;
                    ``(E) an explanation of what the local educational 
                agency or State educational agency is doing to help the 
                school address its achievement problems, including the 
                amounts and types of professional development being 
                provided to the instructional staff in such school, the 
                amount of any financial assistance being provided by 
                the State educational agency under section 1003, and 
                the activities that are being provided with such 
                financial assistance;
                    ``(F) an explanation of how parents described in 
                this paragraph can become involved in addressing the 
                academic issues that caused the school to be identified 
                as in need of improvement; and
                    ``(G) an explanation of the right of parents, 
                pursuant to paragraph (7), to transfer their child to a 
                higher performing public school, including a public 
                charter school or magnet school, that is not in school 
                improvement, and how such transfer shall operate.
            ``(7) Public school choice option.--
                    ``(A) Schools in corrective action.--
                            ``(i) Schools in corrective action on or 
                        before date of enactment.--In the case of a 
                        school identified for corrective action on or 
                        before the date of enactment of the Education 
                        Reform Act, a local educational agency shall 
                        not later than 18 months after such date of 
                        enactment provide all students enrolled in the 
                        school an option to transfer (consistent with 
                        State and local law, policy, and practices 
                        related to public school choice and local pupil 
                        transfer) to any other higher performing public 
                        school, including a public charter or magnet 
                        school, that--
                                    ``(I) has not been identified for 
                                school improvement or corrective 
                                action;
                                    ``(II) is not at risk of being 
                                identified for school improvement or 
                                corrective action within the succeeding 
                                academic year; and
                                    ``(III) has not been in corrective 
                                action at any time during the 2 
                                preceding academic years.
                            ``(ii) Schools identified after date of 
                        enactment.--In the case of a school identified 
                        for corrective action after the date of 
                        enactment of the Education Reform Act, a local 
                        educational agency shall not later than 12 
                        months after the date on which a local 
                        educational agency identifies the school for 
                        corrective action provide all students enrolled 
                        in the school  with the transfer option 
described in clause (i).
                    ``(B) Cooperative agreement.--If all public schools 
                served by the local educational agency to which a child 
                may transfer under clause (i) are identified for 
                corrective action, the local educational agency shall, 
                to the extent practicable, establish a cooperative 
                agreement with other local educational agencies that 
                serve geographic areas in proximity to the geographic 
                area served by the local educational agency, to enable 
                a child to transfer (consistent with State and local 
                law, policy, and practices related to public school 
                choice and local pupil transfer) to a school served by 
                such other local educational agencies that meets the 
                requirements described in subparagraph (A)(i).
                    ``(C) Transportation.--A local educational agency 
                that serves a school that has been identified for 
                corrective action shall provide transportation services 
                or the costs of such services for children of parents 
who choose to transfer their children pursuant to this paragraph to a 
different school. Not more than 10 percent of the funds allocated to a 
local educational agency under this part may be used to provide such 
transportation services or costs of such services.
                    ``(D) Continuation option.--Once a school is no 
                longer identified for or in corrective action, the 
                local educational agency shall continue to provide 
                public school choice as an option to students in such 
                schools for a period of not less than 2 years.
            ``(8) School plan.--(A) Each school identified under 
        paragraph (1) for school improvement shall, after being so 
        identified, develop or revise a school plan, in consultation 
        with parents, school staff, the local educational agency 
        serving the school, the local school board, and other outside 
        experts, for approval by such local educational agency. The 
        school plan shall--
                    ``(i) incorporate scientifically based research 
                strategies that strengthen the core academic programs 
                in the school and address the specific academic issues 
                that caused the school to be identified for school 
                improvement;
                    ``(ii) adopt policies and practices in the school's 
                core academic program that have the greatest likelihood 
                of ensuring that all groups of students specified in 
                section 1111(b)(2)(B)(iv) enrolled in the school will 
                meet or exceed the State's proficient level of 
                performance on the assessment required in section 
                1111(b)(4) within 10 years of the date of enactment of 
                the Education Reform Act;
                    ``(iii) assure that the school will reserve not 
                less than 10 percent of the funds made available to it 
                under this part for each fiscal year that the school is 
                in school improvement for the purpose of providing the 
                school's teachers and principal high quality 
                professional development that--
                            ``(I) directly addresses the academic 
                        achievement problem that caused the school to 
                        be identified for school improvement; and
                            ``(II) meets the requirements for 
                        professional development activities under 
                        section 1119;
                    ``(iv) specify how the funds described in clause 
                (iii) will be used to remove the school from school 
                improvement status;
                    ``(v) establish specific annual, numerical progress 
                goals for each group of students specified in section 
                1111(b)(2)(B)(iv) enrolled in the school that will 
                ensure that all such groups of students meet or exceed 
                the State's proficient standard level of performance 
                within 10 years of the date of enactment of the 
                Education Reform Act;
                    ``(vi) identify how the school will provide written 
                notification to parents of each child enrolled in such 
                school, in a format and, to the extent practicable, in 
                a language such parents can understand; and
                    ``(vii) specify the responsibilities of the school, 
                the local educational agency, and the State educational 
                agency serving such school under the plan.
            ``(B) The local educational agency described in 
        subparagraph (A)(vi) may conditionally approve of a school plan 
        on inclusion of 1 or more of the corrective actions specified 
        in paragraph (10)(C).
            ``(C) A school shall implement the school plan or revised 
        plan expeditiously, but not later than the beginning of the 
        school year following the school year in which the school was 
        identified for improvement.
            ``(D) The local educational agency described in 
        subparagraph (A)(vi) shall establish a peer review process to 
        assist with review of a school improvement plan prepared by the 
        school served by the local educational agency, promptly review 
        the school plan, work with the school as necessary, and approve 
        the school plan if the school plan meets the requirements of 
        this paragraph.
            ``(9) Technical assistance.--(A) For each school identified 
        for school improvement under paragraph (1), the local 
        educational agency serving the school shall provide technical 
        assistance as the school develops and implements its school 
        plan.
            ``(B) Such technical assistance--
                    ``(i) shall include assistance in analyzing data 
                from the assessments required under section 1111(b)(4), 
                and other samples of student work, to identify and 
                address instructional problems and solutions;
                    ``(ii) shall include assistance in identifying and 
                implementing scientifically based instructional 
                strategies and methods that have proven effective in 
                addressing the specific instructional issues that 
                caused the school to be identified for school 
                improvement;
                    ``(iii) shall include assistance in analyzing and 
                revising the school's budget such that the school 
                resources are more effectively focused on those 
                activities most likely to increase student achievement 
                and to remove the school from school improvement 
                status;
                    ``(iv) may be provided directly by the local 
                educational agency, through mechanisms authorized under 
                section 1117, or with the local educational agency's 
                approval, by the State educational agency, an 
                institution of higher education in full compliance with 
                all the reporting provisions of title II of the Higher 
                Education Act of 1965, a private not-for-profit 
                organization or for-profit organization, an educational 
                service agency, the recipient of a Federal contract or 
                cooperative agreement as described under section 7005, 
                or other entity with experience in helping schools 
                improve achievement.
            ``(C) Technical assistance provided under this section by a 
        local educational agency or an entity authorized by such agency 
        shall be based upon scientifically based research.
            ``(10) Corrective action.--In order to help students served 
        under this part meet challenging State standards, each local 
        educational agency shall implement a system of corrective 
        action in accordance with the following:
                    ``(A) After providing technical assistance under 
                paragraph (9) and subject to subparagraph (F), the 
                local educational agency--
                            ``(i) may take corrective action at any 
                        time with respect to a school served by the 
                        local educational agency that has been 
                        identified under paragraph (1);
                            ``(ii) shall take corrective action with 
                        respect to any school served by the local 
                        educational agency that fails to make adequate 
                        yearly progress, as defined by the State under 
                        section 1111(b)(2)(B), after the end of the 
                        second year following the school year in which 
                        the school was identified under paragraph (1); 
                        and
                            ``(iii) shall continue to provide technical 
                        assistance while instituting any corrective 
                        action under clause (i) or (ii).
                    ``(B) As used in this paragraph, the term 
                `corrective action' means action, consistent with State 
                and local law, that--
                            ``(i) substantially and directly responds 
                        to--
                                    ``(I) the consistent academic 
                                failure of a school that caused the 
                                local educational agency to take such 
                                action; and
                                    ``(II) any underlying staffing, 
                                curricula, or other problem in the 
                                school; and
                            ``(ii) is designed to increase 
                        substantially the likelihood that students 
                        enrolled in the school subject to corrective 
                        action will perform at the proficient and 
                        advanced performance levels.
                    ``(C) In the case of a school described in 
                subparagraph (A)(ii), the local educational agency 
                shall take not less than 1 of the following corrective 
                actions:
                            ``(i) Withhold funds from the school.
                            ``(ii) Make alternative governance 
                        arrangements, including reopening the school as 
                        a public charter school.
                            ``(iii) Reconstitute the relevant school 
                        staff.
                            ``(iv)(I) Authorize students to transfer to 
                        other higher performing public schools served 
                        by the local educational agency, including 
                        public charter and magnet schools.
                            ``(II) Provide such students transportation 
                        services, or the costs of transportation, to 
                        such schools (except that such funds used to 
                        provide transportation services or costs of 
                        transportation shall not exceed 10 percent of 
                        the amount authorized under section 
                        1122(a)(2)).
                            ``(III) Take not less than 1 additional 
                        action described under this subparagraph.
                            ``(v) Institute and fully implement a new 
                        curriculum, including appropriate professional 
                        development for all relevant staff, that is 
                        based upon scientifically based research and 
                        offers substantial promise of improving 
                        educational achievement for low-performing 
                        students.
                    ``(D) A local educational agency may delay, for a 
                period not to exceed 1 year, implementation of 
                corrective action only if the failure to make adequate 
                yearly progress was justified due to exceptional or 
                uncontrollable circumstances, such as a natural 
                disaster or a precipitous and unforeseen decline in the 
                financial resources of the local educational agency or 
                school.
                    ``(E) The local educational agency shall publish 
                and disseminate to the public and to the parents of 
                each student enrolled in a school subject to corrective 
                action, in a format and, to the extent practicable, in 
                a language that the parents can understand, information 
                regarding any corrective action the local educational 
                agency takes under this paragraph through such means as 
                the Internet, the media, and public agencies.
                    ``(F)(i) Before taking corrective action with 
                respect to any school under this paragraph, a local 
                educational agency shall provide the school an 
                opportunity to review the school level data, including 
                assessment data, on which the proposed determination is 
                made.
                    ``(ii) If the school believes that the proposed 
                determination is in error for statistical or other 
                substantive reasons, the school principal may provide 
                supporting evidence to the local educational agency, 
                which shall consider such evidence before making a 
                final determination.
                    ``(G) Time limits.--Not later than 30 days after 
                the local educational agency makes its initial 
                determination that a school served by the local 
                educational agency and receiving assistance under this 
                part is eligible for corrective action, the local 
                educational agency shall make a final and public 
                determination on the status of the school.
            ``(11) State educational agency responsibilities.--If a 
        State educational agency determines that a local educational 
        agency failed to carry out its responsibilities under this 
        section, or determines that, after 1 year of implementation of 
        the corrective action, such action has not resulted in 
        sufficient progress in increased student performance, the State 
        educational agency shall take such action as the agency finds 
        necessary, including designating a course of corrective action 
        described in paragraph (10)(C), consistent with this section, 
        to improve the affected schools and to ensure that the local 
educational agency carries out the local educational agency's 
responsibilities under this section.
            ``(12) Special rules.--Schools that, for at least 2 of the 
        3 years following identification under paragraph (1), make 
        adequate yearly progress toward meeting the State's proficient 
        and advanced levels of performance shall no longer be 
        identified for school improvement.''.
    (c) State Review and Local Educational Agency Improvement.--Section 
1116(d) (20 U.S.C. 6317(d)) is amended to read as follows:
    ``(d) State Review and Local Educational Agency Improvement.--
            ``(1) In general.--A State educational agency shall 
        annually review the progress of each local educational agency 
        within the State receiving funds under this part to determine 
        whether schools served by such agencies and receiving 
        assistance under this part are making adequate yearly progress, 
        as defined in section 1111(b)(2), toward meeting the State's 
        student performance standards and to determine whether each 
        local educational agency is carrying out its responsibilities 
        under sections 1116 and 1117.
            ``(2) Identification of local educational agency for 
        improvement.--A State educational agency shall identify for 
        improvement any local educational agency that--
                    ``(A) for 2 consecutive years fails to make 
                adequate yearly progress as defined in the State's plan 
                under section 1111(b)(2); or
                    ``(B) had been identified for, or was eligible for, 
                improvement under this section as this section was in 
                effect on the day preceding the date of enactment of 
                the Education Reform Act.
            ``(3) Transition.--The 2-year period described in paragraph 
        (2)(A) shall include any continuous period of time immediately 
        preceding the date of the enactment of the Education Reform Act 
        during which a local educational agency did not make adequate 
        yearly progress as defined in the State's plan, as such plan 
        was in effect on the day preceding the date of the enactment of 
        the Education Reform Act.
            ``(4) Targeted assistance schools.--For purposes of 
        targeted assistance schools within a local educational agency, 
        a State educational agency may choose to review the progress of 
        only the students in such schools who are served under this 
        part.
            ``(5) Opportunity to review and present evidence.--(A) 
        Before identifying a local educational agency for improvement 
        under paragraph (2), a State educational agency shall provide 
        the local educational agency with an opportunity to review the 
        local educational agency data, including assessment data, on 
        which the proposed identification is based.
            ``(B) If the local educational agency believes that the 
        proposed identification is in error for statistical or other 
        substantive reasons, the local educational agency may provide 
        supporting evidence to the State educational agency, which the 
        State educational agency shall consider before making a final 
        determination.
            ``(6) Time limits.--Not later than 45 days after the State 
        educational agency makes its initial determination that a local 
        educational agency within the State and receiving assistance 
        under this part is eligible for improvement, the State 
        educational agency shall make public a final determination on 
        the status of the local educational agency.
            ``(7) Notification to parents.--The State educational 
        agency shall promptly notify parents of each student enrolled 
        in a school served by a local educational agency identified for 
        improvement, in a format, and to the extent practicable, in a 
        language the parents can understand, of the reasons for such 
        agency's identification and how parents can participate in 
        upgrading the quality of the local educational agency.
            ``(8) Local educational agency revisions.--
                    ``(A) In general.--Each local educational agency 
                identified under paragraph (2) shall, after being so 
                identified, develop or revise a local educational 
                agency plan, in consultation with the local school 
                board, parents, teachers, school staff, and others, for 
                approval by the State educational agency. Such plan 
                shall--
                            ``(i) incorporate scientifically based 
                        research strategies that strengthen the core 
                        academic program in the local educational 
                        agency;
                            ``(ii) identify specific annual numerical 
                        academic achievement objectives in at least the 
                        areas of mathematics and English language arts 
                        that the local educational agency will meet, 
                        with such objectives being calculated in a 
                        manner such that their achievement will ensure 
                        that each group of students enrolled in each 
                        school served by the local educational agency 
                        will meet or exceed the proficient standard 
                        level of performance in assessments required 
                        under section 1111(b)(4) within 10 years of the 
                        date of enactment of the Education Reform Act; 
                        and
                            ``(iii) assure that the local educational 
                        agency will--
                                    ``(I) reserve not less than 10 
                                percent of the funds made available to 
                                the local educational agency under this 
                                part for each fiscal year that the 
                                agency is in improvement for the 
                                purpose of providing high quality 
                                professional development to teachers 
                                and principals at schools served by the 
                                agency and receiving funds under this 
                                part that directly address the academic 
                                achievement problem that caused the 
                                local educational agency to be 
identified for improvement and shall be in keeping with the definition 
of professional development provided in section 1119; and
                                    ``(II) the improvement plan shall 
                                specify how these funds will be used to 
                                remove the local educational agency 
                                from improvement status;
                            ``(iv) identify how the local educational 
                        agency will provide written notification to 
                        parents described in paragraph (7) in a format, 
                        and to the extent practicable in a language, 
                        that the parents can understand, pursuant to 
                        paragraph (7);
                            ``(v) specify the responsibilities of the 
                        State educational agency and the local 
                        educational agency under the plan; and
                            ``(vi) include a review of the local 
                        educational agency budget to ensure that 
                        resources are focused on those activities that 
                        are most likely to improve student achievement 
                        and to remove the agency from improvement 
                        status.
                    ``(B) Peer review.--The State educational agency 
                shall establish a peer review process to assist with 
                the review of the local educational agency improvement 
                plan, promptly review the plan, work with the local 
                educational agency as necessary, and approve  the plan 
if the plan meets the requirements of this paragraph.
                    ``(C) Deadline for implementation.--The local 
                educational agency shall implement the local 
                educational agency plan or revised plan expeditiously, 
                but not later than the beginning of the school year 
                following the school year in which the agency was 
                identified for improvement.
                    ``(D) Resources reallocation.--If the local 
                educational agency budget fails to allocate resources, 
                consistent with, subparagraph (A)(iv), the State 
                educational agency may direct the local educational 
                agency to reallocate resources to more effective 
                activities.
            ``(9) State educational agency responsibility.--For each 
        local educational agency identified under paragraph (2), the 
        State educational agency shall provide technical or other 
        assistance, if requested, as authorized under section 1117, to 
        better enable the local educational agency--
                    ``(A) to develop and implement the local 
                educational agency plan or revised plan as approved by 
                the State educational agency consistent with the 
                requirements of this section; and
                    ``(B) to work with schools served by the local 
                educational agency that are identified for improvement.
            ``(10) Technical assistance.--Technical assistance provided 
        by the State educational agency--
                    ``(A) shall include assistance in analyzing data 
                from the assessments required under section 1111(b)(4) 
                to identify and address instructional problems and 
                solutions;
                    ``(B) shall include assistance in identifying and 
                implementing scientifically based instructional 
                strategies and methods that have proven effective in 
                addressing the specific instructional issues that 
                caused the local educational agency to be identified 
                for improvement;
                    ``(C) shall include assistance in analyzing and 
                revising the local educational agency's budget such 
                that the agency's resources are more effectively 
                focused on those activities most likely to increase 
                student achievement and to remove the agency from 
                improvement status; and
                    ``(D) may be provided by--
                            ``(i) the State educational agency; or
                            ``(ii) with the local educational agency's 
                        approval, by an institution of higher education 
                        (in full compliance with all the reporting 
                        provisions of title II of the Higher Education 
                        Act of 1965), a private not-for-profit or for-
                        profit organization, an educational service 
                        agency, the recipient of a Federal contract or 
                        cooperative agreement as described under 
                        section 7005, or any other entity with 
                        experience in helping schools improve 
                        achievement.
            ``(11) Resources reallocation.--The State educational 
        agency may, as a condition of providing the local educational 
        agency with technical assistance and financial support in 
        developing and carrying out an improvement plan, require that 
        the local educational agency reallocate resources away from 
        ineffective or inefficient activities to activities that, 
        through scientific research, have proven to have the greatest 
        impact on increasing student achievement and closing the 
        achievement gap between groups of students.
            ``(12) Corrective action.--In order to help students served 
        under this part meet challenging State standards, each State 
        educational agency shall implement a system of corrective 
        action in accordance with the following:
                    ``(A) After providing technical assistance under 
                paragraph (10), and subject to subparagraph (D), the 
                State educational agency--
                            ``(i) shall take corrective action with 
                        respect to any local educational agency that 
                        fails to make adequate yearly progress, as 
                        defined by the State, after the end of the 
                        second year following its identification under 
                        paragraph (2); and
                            ``(ii) shall continue to provide technical 
                        assistance while instituting any corrective 
                        action under clause (i) or (ii).
                    ``(B) As used in this paragraph, the term 
                `corrective action' means action, consistent with State 
                law, that--
                            ``(i) substantially and directly responds 
                        to--
                                    ``(I) the consistent academic 
                                failure of schools served by a local 
                                educational agency that caused the 
                                State educational agency to take such 
                                action with respect to the local 
                                educational agency; and
                                    ``(II) any underlying staffing, 
                                curricular, or other problem in the 
                                schools served by the local educational 
                                agency; and
                            ``(ii) is designed to meet the goal of 
                        having all students served under this part 
                        perform at the proficient and advanced 
                        performance levels.
                    ``(C) In the case of a local educational agency 
                described in subparagraph (A)(ii), the State 
                educational agency shall take not less than 1 of the 
                following corrective actions:
                            ``(i) Withhold funds from the local 
                        educational agency.
                            ``(ii) Reconstitute the relevant local 
                        educational agency personnel.
                            ``(iii) Remove particular schools from the 
                        area served by the local educational agency, 
                        and establish alternative arrangements for 
                        public governance and supervision of such 
                        schools.
                            ``(iv) Appoint, through the State 
                        educational agency, a receiver or trustee to 
                        administer the affairs of the local educational 
                        agency in place of the local educational 
                        agency's superintendent and school board.
                            ``(v) Abolish or restructure the local 
                        educational agency.
                            ``(vi)(I) Authorize students to transfer 
                        from a school operated by the local educational 
                        agency to a higher performing public school, 
                        including a public charter or magnet school, 
                        operated by another local educational agency.
                            ``(II) Provide students described in 
                        subclause (I) transportation services, or the 
                        costs of transportation, not to exceed 10 
                        percent of the funds allocated to a local 
                        educational agency under this part, to such 
                        higher performing schools or public charter 
                        schools.
                            ``(III) Take not less than 1 additional 
                        action described under this subparagraph.
                    ``(D) Prior to implementing any corrective action, 
                the State educational agency shall provide notice and 
                an opportunity for a hearing to the affected local 
                educational agency, if State law provides for such 
                notice and opportunity.
                    ``(E) Not later than 45 days after the State 
                educational agency makes its initial determination that 
                a local educational agency in the State and receiving 
                assistance under this part is eligible for improvement, 
                the State educational agency shall make public a final 
                determination on the status of the local educational 
                agency.
                    ``(F) The State educational agency shall publish 
                and disseminate to parents described in paragraph (7) 
                and the public information regarding any corrective 
                action the State educational agency takes under this 
                paragraph through such means as the Internet, the 
                media, and public agencies.
                    ``(G) The State educational agency may delay, for a 
                period not to exceed 1 year, implementation of 
                corrective action if the local educational agency's 
                failure to make adequate yearly progress was justified 
                due to exceptional or uncontrollable circumstances, 
                such as a natural disaster or a precipitous and 
                unforeseen decline in the financial resources of the 
                local educational agency or schools served by the local 
                educational agency.''.

SEC. 110. STATE ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

    Section 1117 (20 U.S.C. 6318) is amended to read as follows:

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

    ``(a) System for Support.--Using funds allocated under section 
1003(a)(1), each State educational agency shall establish a statewide 
system of intensive and sustained support and improvement for local 
educational agencies, elementary schools, and secondary schools 
receiving funds under this part, in order to ensure that all groups of 
students specified in section 1111 and attending such schools meet or 
exceed the proficient standard level performance on the assessments 
required by section 1111(b)(4) within 10 years of the date of enactment 
of the Education Reform Act.
    ``(b) Priorities.--In carrying out this section, a State 
educational agency shall--
            ``(1) first, provide support and assistance to local 
        educational agencies and schools identified as in need of 
        improvement under section 1116;
            ``(2) second, provide support and assistance to local 
        educational agencies subject to corrective action under section 
        1116, and assist elementary schools and secondary schools, in 
        accordance with section 1116(c)(11), for which a local 
        educational agency has failed to carry out its responsibilities 
        under section 1116(c) (9) and (10); and
            ``(3) third, provide support and assistance to local 
        educational agencies and schools that are at risk of being 
        identified as being in need of improvement within the next 
        academic year, participating under this part.
    ``(c) Approaches.--In order to achieve the purpose described in 
subsection (a), each statewide system shall provide technical 
assistance and support through approaches such as--
            ``(1) school support teams, composed of individuals who are 
        knowledgeable about scientifically based research, teaching and 
        learning practices, and particularly about strategies for 
        improving educational results for low-achieving children; and
            ``(2) designating and using Distinguished Educators, who 
        are chosen from schools served under this part that have been 
        especially successful in improving academic achievement.
    ``(d) Funds.--Each State educational agency--
            ``(1) shall use funds reserved under section 1003(a)(1), 
        but not used under section 1003(a)(2), to carry out this 
        section; and
            ``(2) may use State administrative funds authorized under 
        section 1703(c) to carry out this section.
    ``(e) Alternatives.--The State educational agency may--
            ``(1) devise additional approaches to providing the 
        technical assistance and support described in subsection (c), 
        such as providing assistance through institutions of higher 
        education, educational service agencies, or other local 
        consortia; and
            ``(2) seek approval from the Secretary to use funds under 
        section 1003(a)(2) for such approaches as part of the State 
        plan.''.

SEC. 111. PARENTAL INVOLVEMENT CHANGES.

    (a) Local Educational Agency Policy.--Section 1118(a) (20 U.S.C. 
6319(a)) is amended--
            (1) in paragraph (1), by striking ``programs, activities, 
        and procedures'' and inserting ``activities and procedures'';
            (2) in paragraph (2), by striking subparagraphs (E) and (F) 
        and inserting the following:
                    ``(E) conduct, with the involvement of parents, an 
                annual evaluation of the content and effectiveness of 
                the parental involvement policy in improving the 
                academic quality of the schools served under this part;
                    ``(F) involve parents in the activities of the 
                schools served under this part; and
                    ``(G) promote consumer friendly environments within 
                the local educational agency and schools served under 
                this part.'';
            (3) in paragraph (3), by adding at the end the following 
        new subparagraph:
            ``(C) Not less than 90 percent of the funds reserved under 
        subparagraph (A) shall be distributed to schools served under 
        this part.''.
    (b) Notice.--Section 1118(b)(1) (20 U.S.C. 6319(b)(1)) is amended 
by inserting after the first sentence ``Parents shall be notified of 
the policy in a format, and to the extent practicable in a language, 
that the parents can understand.''.
    (c) Parental Involvement.--Section 1118(c)(4) (20 U.S.C. 
6319(c)(4)) is amended--
            (1) in subparagraph (B), by striking ``school performance 
        profiles required under section 1116(a)(3)'' and inserting 
        ``school reports described under section 4401'';
            (2) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (F) and (G), respectively;
            (3) by inserting after subparagraph (C) the following:
                    ``(D) notice of the school's designation as a 
                school in need of improvement under section 1116(b), if 
                applicable, and a clear explanation of what such 
                designation means;
                    ``(E) notice of corrective action taken against the 
                school under section 1116(c)(9) and 1116(d)(12), if 
                applicable, and a clear explanation of what such action 
                means;''; and
            (4) in subparagraph (G) (as redesignated by paragraph (2)), 
        by striking ``subparagraph (D)'' and inserting ``subparagraph 
        (F)''.
    (d) Building Capacity for Involvement.--Section 1118(e) (20 U.S.C 
6319(e)) is amended--
            (1) in paragraph (1), by striking ``National Educational 
        Goals,'';
            (2) by redesignating paragraphs (14) and (15) as paragraphs 
        (16) and (17), respectively;
            (3) by inserting after paragraph (13) the following:
            ``(14) may establish a district wide parent advisory 
        council to advise on all matters related to parental 
        involvement in programs supported under this part;''; and
            (4) by redesignating paragraph (5) as paragraph (15) and 
        transferring such paragraph to follow paragraph 14 (as 
        redesignated by paragraph (3));
            (5) by inserting after paragraph (4) the following:
            ``(5) shall expand the use of electronic communications 
        among teachers, students, and parents, such as through the use 
        of websites and e-mail communications;'';
            (6) in paragraph (8), by inserting ``, to the extent 
        practicable, in a language and format the parent can 
        understand'' before the semicolon; and
            (7) in paragraph (15) (as redesignated by paragraph (4)), 
        by striking ``shall'' and inserting ``may''.
    (e) Accessibility.--Section 1118(f) (20 U.S.C. 6319(f)) is amended 
by striking ``, including'' and all that follows through the period and 
inserting ``and of parents of migratory children, including providing 
information and school reports required under section 1111 and 
described in section 4401 in a language and form such parents 
understand.''.

SEC. 112. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.

    Title I of the Act (20 U.S.C. 6301 et seq.) is amended--
            (1) by redesignating section 1119 (20 U.S.C. 6320) as 
        section 1119A; and
            (2) by inserting after section 1118 the following:

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

    ``(a) In General.--
            ``(1) Plan.--Each State educational agency receiving 
        assistance under this part shall develop and submit to the 
        Secretary a plan to ensure that all teachers teaching within 
        the State are fully qualified, as defined in section 2001(1), 
        not later than December 31, 2006. Such plan shall include an 
        assurance that the State educational agency will require each 
        local educational agency and school receiving funds under this 
        part publicly to report the annual progress with respect to the 
local educational agency's and school's performance in increasing the 
percentage of classes in core academic areas taught by fully qualified 
teachers.
            ``(2) Special rule.--Notwithstanding any other provision of 
        law, the provisions of this section governing teacher 
        qualifications shall not supersede State laws governing public 
        charter schools.
    ``(b) New Paraprofessionals.--Each local educational agency 
receiving assistance under this part shall ensure that each 
paraprofessional hired after December 31, 2004, and working in a 
program assisted under this part--
            ``(1) has completed at least the number of courses at an 
        institution of higher education in the area of elementary 
        education, or in the related subject area in which the 
        paraprofessional is working, for a minor degree at such 
        institution;
            ``(2) has obtained an associate's (or higher) degree; or
            ``(3) has met a rigorous standard of quality that 
        demonstrates, through formal State or local certification (as 
        established in subsection (h)),--
                    ``(A) knowledge of, and the ability to provide 
                tutorial assistance in, reading, writing, and 
                mathematics; or
                    ``(B) knowledge of, and the ability to provide 
                tutorial assistance in, reading readiness, writing 
                readiness, and mathematics readiness, as appropriate.
    ``(c) Existing Paraprofessionals.--Each local educational agency 
receiving assistance under this part shall ensure that each 
paraprofessional working in a program assisted under this part shall, 
within 6 years after the date of enactment of the Education Reform Act, 
satisfy the requirements of subsection (b).
    ``(d) Exceptions for Translation and Parental Involvement 
Activities.--Subsections (b) and (c) shall not apply to a 
paraprofessional--
            ``(1) who is proficient in English and a language other 
        than English, and who provides services primarily to enhance 
        the participation of children in programs under this part by 
        acting as a translator; or
            ``(2) whose duties consist solely of conducting parental 
        involvement activities consistent with section 1118 or other 
        school readiness activities that are noninstructional.
    ``(e) General Requirement for All Paraprofessionals.--Each local 
educational agency receiving assistance under this part shall ensure 
that each paraprofessional working in a program assisted under this 
part, regardless of the paraprofessional's hiring date, possesses a 
secondary school diploma or its recognized equivalent.
    ``(f) Duties of Paraprofessionals.--
            ``(1) In general.--Each local educational agency receiving 
        assistance under this part shall ensure that a paraprofessional 
        working in a program assisted under this part is not assigned a 
        duty inconsistent with this subsection.
            ``(2) Authorized responsibilities.--A paraprofessional 
        described in paragraph (1) may be assigned--
                    ``(A) to provide 1-on-1 tutoring for eligible 
                students under this part, if the tutoring is scheduled 
                at a time when the student would not otherwise receive 
                instruction from a teacher;
                    ``(B) to assist with classroom management, such as 
                organizing instructional and other materials;
                    ``(C) to provide assistance in a computer 
                laboratory;
                    ``(D) to conduct parental involvement activities or 
                school readiness activities that are noninstructional;
                    ``(E) to provide support in a library or media 
                center;
                    ``(F) to act as a translator;
                    ``(G) to provide assistance with extra curricular 
                activities which are noninstructional; or
                    ``(H) assist with instructional services to 
                students.
            ``(3) Limitations.--A paraprofessional described in 
        paragraph (1)--
                    ``(A) shall not perform the duties of a certified 
                teacher or a substitute; and
                    ``(B) shall not perform any duty assigned under 
                paragraph (2) unless under the direct supervision of a 
                fully qualified teacher or other appropriate 
                professional.
    ``(g) Uses of Funds.--
            ``(1) Professional development.--Notwithstanding subsection 
        (h)(2), a local educational agency receiving funds under this 
        part shall use such funds to support ongoing training and 
        professional development to assist teachers and 
        paraprofessionals in satisfying the requirements of this 
        section.
            ``(2) Training.--Such training and professional development 
        for paraprofessionals shall--
            ``(1) include training that is related directly to skills 
        and knowledge required to meet responsibilities that a 
        paraprofessional may be assigned;
            ``(2) provide paraprofessionals the opportunity to 
        undertake a minimum of 15 hours of ongoing job related training 
        per year; and
            ``(3) integrate training provided paraprofessionals with 
        professional development activities for teachers.
    ``(h) State Certification.--Each State educational agency receiving 
assistance under this part shall--
            ``(1) ensure that the State educational agency has in place 
        State criteria for the certification of paraprofessionals by 
        December 31, 2003; and
            ``(2) ensure that paraprofessionals hired before December 
        31, 2003, are in high-quality professional development 
        activities that ensure that the paraprofessional has the 
        ability to provide tutorial assistance in--
                    ``(A) reading, writing, and mathematics: or
                    ``(B) reading readiness, writing readiness, and 
                mathematics readiness, as appropriate.
    ``(i) Verification of Compliance.--
            ``(1) In general.--In verifying compliance with this 
        section, each local educational agency, at a minimum, shall 
        require that the principal of each elementary school and 
        secondary school operating a program under section 1114 or 1115 
        annually attest in writing as to whether each such school is in 
        compliance with the requirements of this section.
            ``(2) Availability of information.--Copies of the annual 
        certification described in paragraph (1)--
                    ``(A) shall be maintained at each elementary school 
                and secondary school operating a program under section 
                1114 or 1115 and at the main office of the local 
                educational agency; and
                    ``(B) shall be available to any member of the 
                general public upon request.''.

SEC. 113. PROFESSIONAL DEVELOPMENT.

    Section 1119A (as redesignated by section 112(a)) is amended--
            (1) by amending subsection (a) to read as follows:
    ``(a) Purpose.--The purpose of this section is to assist each local 
educational agency receiving assistance under this part in increasing 
the academic achievement of eligible children (as identified under 
section 1115(b)(1)(B)) (in this section referred to as eligible 
children) through improved teacher quality.'';
            (2) in subsection (b)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Required activities.--Each local educational agency 
        receiving assistance under this part shall provide professional 
        development activities under this section that shall--
                    ``(A) give teachers, principals, paraprofessionals, 
                and administrators the knowledge and skills to provide 
                eligible children with the opportunity to meet 
                challenging State or local content standards and 
                student performance standards;
                    ``(B) support the recruiting, hiring, and training 
                of fully qualified teachers, including teachers fully 
                qualified through State and local alternative routes;
                    ``(C) advance teacher understanding of effective 
                instructional strategies, based on scientifically based 
                research, for improving eligible children achievement, 
                at a minimum, in mathematics, science, and English 
                language arts;
                    ``(D) be directly related to the curricula and 
                content areas in which the teacher provides 
                instruction;
                    ``(E) be designed to enhance the ability of a 
                teacher to understand and use the State's standards for 
                the subject area in which the teacher provides 
                instruction;
                    ``(F) be tied to scientifically based research that 
                demonstrates the effectiveness of such professional 
                development activities or programs in increasing 
                eligible children achievement or substantially 
                increasing the knowledge and teaching skills of 
                teachers;
                    ``(G) be of sufficient intensity and duration (not 
                to include 1-day or short-term workshops and 
                conferences) to have a positive and lasting impact on 
                the teacher's performance in the classroom, except that 
                this subparagraph shall not apply to an activity if 
                such activity is one component of a long-term 
                comprehensive professional development plan established 
                by the teacher and the teacher's supervisor based upon 
                an assessment of their needs, their eligible children's 
                needs, and the needs of the local educational agency;
                    ``(H) be developed with extensive participation of 
                teachers, principals, parents, administrators of 
                schools, and local school boards of schools to be 
                served under this part;
                    ``(I) to the extent appropriate, provide training 
                for teachers in the use of technology so that 
                technology and its applications are effectively used in 
                the classroom to improve teaching and learning in the 
                curricula and academic content areas in which the 
                teachers provide instruction;
                    ``(J) as a whole, be regularly evaluated for such 
                activities' impact on increased teacher effectiveness 
                and improved student achievement, with the findings of 
                such evaluations used to improve the quality of 
                professional development; and
                    ``(K) include strategies for identifying and 
                eliminating gender and racial bias in instructional 
                materials, methods, and practices.'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by inserting ``and 
                        data to inform and instruct classroom 
                        practice'' before the semicolon;
                            (ii) by striking subparagraphs (D) and (G);
                            (iii) by redesignating subparagraphs (E), 
                        (F), (H), and (I), as subparagraphs (D), (E), 
                        (F) and (G), respectively; and
                            (iv) by inserting after subparagraph (G) 
                        (as redesignated by clause (iii)) the following 
                        new subparagraph:
                    ``(H) instruction in the ways that teachers, 
                principals, and guidance counselors can work with 
                parents and students from groups, such as females and 
                minorities, that are underrepresented in careers in 
                mathematics, science, engineering, and technology, to 
                encourage and maintain the interest of such students in 
                those careers.'';
            (3) by striking subsections (f) through (i); and
            (4) by adding after subsection (e) the following:
    ``(f) Consolidation of Funds.--Funds provided under this part that 
are used for professional development purposes may be consolidated with 
funds provided under title II of this Act and other sources.
    ``(g) Definition.--The term `fully qualified' has the same meaning 
given such term in section 2001(1).
    ``(h) Special Rule.--
            ``(1) In general.--No State educational agency shall 
        require a local educational agency or elementary school or 
        secondary school to expend a specific amount of funds for 
        professional development activities under this part.
            ``(2) Exception.--Paragraph (1) shall not apply with 
        respect to requirements under section 1116(d)(9).''.

SEC. 114. FISCAL REQUIREMENTS.

    Section 1120A(a) (20 U.S.C. 6322(a)) is amended by striking 
``section 14501'' and inserting ``section 8501''.

SEC. 115. COORDINATION REQUIREMENTS.

    Section 1120B (20 U.S.C. 6323) is amended--
            (1) in subsection (a), by striking ``to the extent 
        feasible'' and all that follows through the period and 
        inserting ``in coordination with local Head Start agencies, and 
        if feasible, other early childhood development programs.'';
            (2) in subsection (b)--
                    (A) in paragraph (3) by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (4) by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end, the following:
            ``(5) linking the educational services provided in such 
        local educational agency with the services provided in local 
        Head Start agencies.''.

SEC. 116. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE 
              INTERIOR.

    Section 1121 (20 U.S.C. 6331) is amended to read as follows:

``SEC. 1121. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE 
              INTERIOR.

    ``(a) Reservation of Funds.--From the amount appropriated for 
payments to States for any fiscal year under section 1002(a), the 
Secretary shall reserve a total of 1 percent to provide assistance to--
            ``(1) the outlying areas in the amount determined in 
        accordance with subsection (b); and
            ``(2) the Secretary of the Interior in the amount necessary 
        to make payments pursuant to subsection (d).
    ``(b) Assistance to Outlying Areas.--
            ``(1) Grants authorized.--From the amount made available 
        for a fiscal year under subsection (a), the Secretary shall 
        award grants to the outlying areas and freely associated States 
        to carry out the purposes of this part.
            ``(2) Competitive grants.--For each of fiscal years 2001 
        and 2002, the Secretary shall ensure that grants are awarded 
        under this subsection on a competitive basis in accordance with 
        paragraph (3).
            ``(3) Requirements and limitation for competitive grants.--
                    ``(A) Recommendations.--The Secretary shall award 
                grants under this subsection on the basis of the 
                recommendations of the Pacific Region Educational 
                Laboratory in Honolulu, Hawaii.
                    ``(B) Termination of eligibility.--Notwithstanding 
                any other provision of law, the freely associated 
                States shall not be eligible to receive funds under 
                this part after September 30, 2001.
                    ``(C) Administrative costs.--The Secretary may 
                provide that not more than 5 percent of the amount 
                reserved for grants under this subsection will be used 
                to pay the administrative costs of the Pacific Region 
                Educational Laboratory for services provided under 
                subparagraph (A).
            ``(4) Special rule.--The provisions of Public Law 95-134 
        (91 Stat. 1159) that permit the consolidation of grants by the 
        outlying areas shall not apply to funds provided to the freely 
        associated States under this subsection.
            ``(5) Funding.--The amount reserved by the Secretary to 
        award grants under this subsection shall not exceed the amount 
        reserved under this section (as this section existed on the day 
        prior to the date of enactment of the Education Reform Act) for 
        the freely associated States for fiscal year 1999.
            ``(6) Definitions.--In this subsection and subsection (a):
                    ``(A) Freely associated states.--The term `freely 
                associated States' means the Republic of the Marshall 
                Islands, the Federated States of Micronesia, and the 
                Republic of Palau.
                    ``(B) Outlying area.--The term `outlying area' 
                means the United States Virgin Islands, Guam, American 
                Samoa, and the Commonwealth of the Northern Mariana 
                Islands.
    ``(c) Allotment to the Secretary of the Interior.--
            ``(1) In general.--The amount allotted for payments to the 
        Secretary of the Interior under subsection (a)(2) for any 
        fiscal year shall be, as determined pursuant to criteria 
        established by the Secretary, the amount necessary to meet the 
        special educational needs of--
                    ``(A) Indian children on reservations served by 
                elementary and secondary schools for Indian children 
                operated or supported by the Department of the 
                Interior; and
                    ``(B) out-of-State Indian children in elementary 
                and secondary schools in local educational agencies 
                under special contracts with the Department of the 
                Interior.
            ``(2) Payments.--From the amount allotted for payments to 
        the Secretary of the Interior under subsection (a)(2), the 
        Secretary of the Interior shall make payments to local 
        educational agencies, upon such terms as the Secretary 
        determines will best carry out the purposes of this part, with 
        respect to out-of-State Indian children described in paragraph 
        (1). The amount of such payment may not exceed, for each such 
        child, the greater of--
                    ``(A) 40 percent of the average per pupil 
                expenditure in the State in which the agency is 
                located; or
                    ``(B) 48 percent of such expenditure in the United 
                States.''.

SEC. 117. AMOUNTS FOR GRANTS.

    Section 1122 (20 U.S.C. 6332) is amended to read as follows:

``SEC. 1122. AMOUNTS FOR BASIC GRANTS, CONCENTRATION GRANTS, AND 
              TARGETED GRANTS.

    ``(a) Allocation Formula.--
            ``(1) Allocation to states.--Of the amount appropriated to 
        carry out this part for each of fiscal years 2002 through 2006 
        (each such year, as appropriate, shall be referred to in this 
        subsection as the `current fiscal year'), the amount to be 
        allocated to States for a fiscal year based on population data 
        for local educational agencies in such States, shall be equal 
        to the sum of--
                    ``(A) an amount equal to the sum of--
                            ``(i) the amount made available to carry 
                        out section 1124 (as such section existed on 
                        the day prior to the date of enactment of the 
                        Education Reform Act) for fiscal year 1999; and
                            ``(ii) 21.25 percent of the amount, if any, 
                        by which the amount appropriated under section 
                        1002(a) for the current fiscal year exceeds the 
                        amount appropriated under such section (as such 
                        section existed on the day prior to the date of 
                        enactment of the Education Reform Act) for 
                        fiscal year 2000, to be allocated in accordance 
                        with section 1124;
                    ``(B) an amount equal to the sum of--
                            ``(i) the amount made available to carry 
                        out section 1124A (as such section existed on 
                        the day prior to the date of enactment of the 
                        Education Reform Act) for fiscal year 2000; and
                            ``(ii) 3.75 percent of the amount, if any, 
                        by which the amount appropriated under section 
                        1002(a) for the current fiscal year exceeds the 
                        amount appropriated under such section (as such 
                        section existed on the day prior to the date of 
                        enactment of the Education Reform Act) for 
                        fiscal year 2000, to be allocated in accordance 
                        with section 1124A; and
                    ``(C) an amount equal to 75 percent of the amount, 
                if any, by which the amount appropriated under section 
                1002(a) for the current fiscal year exceeds the amount 
                appropriated under such section (as such section 
                existed on the day prior to the date of enactment of 
                the Education Reform Act) for fiscal year 2000, to be 
                allocated in accordance with section 1125.
            ``(2) Allocation to local educational agencies.--Of the 
        total amounts allocated to a State under this part for each of 
fiscal years 2002 and 2003, 96.5 percent shall be allocated by the 
State educational agency to local educational agencies, and for each of 
fiscal years 2004 through 2006, 95.5 percent shall be allocated to 
local educational agencies, of which--
                    ``(A) 75 percent shall be allocated in accordance 
                with section 1125;
                    ``(B) 21.25 percent shall be allocated in 
                accordance with section 1124; and
                    ``(C) 3.75 percent shall be allocated in accordance 
                with section 1124A.
    ``(b) Adjustments Where Necessitated by Appropriations.--
            ``(1) In general.--If the sums available under this part 
        for any fiscal year are insufficient to pay the full amounts 
        that all States and local educational agencies are eligible to 
        receive under sections 1124, 1124A, and 1125 for such fiscal 
        year, the Secretary shall ratably reduce the allocations to 
        such States and local educational agencies, subject to 
        subsections (c) and (d).
            ``(2) Additional funds.--If additional funds become 
        available for making payments under sections 1124, 1124A, and 
        1125 for such fiscal year, allocations that were reduced under 
        paragraph (1) shall be increased on the same basis as they were 
        reduced.
    ``(c) Hold-Harmless Amounts.--
            ``(1) Grants to states.--The total amount allocated to each 
        State under this part in each fiscal year shall not be less 
        than the amount allocated to each State in the preceding fiscal 
        year.
            ``(2) Grants to local educational agencies.--The total 
        amount allocated to each local educational agency under this 
        part in each fiscal year shall not be less than the amount 
        allocated to each local educational agency in the preceding 
        fiscal year.
    ``(d) Ratable Reductions.--
            ``(1) In general.--If the sums made available under this 
        part for any fiscal year are insufficient to pay the full 
        amounts that all States are eligible to receive under 
        subsection (c) for such year, the Secretary shall ratably 
        reduce such amounts for such year.
            ``(2) Additional funds.--If additional funds become 
        available for making payments under subsection (c) for such 
        fiscal year, amounts that were reduced under paragraph (1) 
        shall be increased on the same basis as such amounts were 
        reduced.
    ``(e) Definition.--For the purpose of this section and sections 
1124, 1124A, and 1125, the term `State' means each of the 50 States, 
the District of Columbia, and the Commonwealth of Puerto Rico.''.

SEC. 118. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    Section 1124 (20 U.S.C. 6333) is amended to read as follows:

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

    ``(a) Amount of Grants.--
            ``(1) Grants for local educational agencies and puerto 
        rico.--Except as provided in paragraph (3) and in section 1126, 
        the amount of a grant that a local educational agency is 
        eligible to receive under this section for a fiscal year shall 
        be determined by multiplying--
                    ``(A) the number of children counted under 
                subsection (c); and
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State involved, except that the 
                amount determined under this subparagraph shall not be 
                less than 32 percent or more than 48 percent, of the 
                average per-pupil expenditure in the United States.
            ``(2) Calculation of grants.--
                    ``(A) Allocations to local educational agencies.--
                The Secretary shall calculate the amount of grants 
                under this section on the basis of the number of 
                children counted under subsection (c) for local 
                educational agencies. For purposes of this 
                subparagraph, the Secretary and the Secretary of 
                Commerce shall publicly disclose the reasoning for 
                their determinations under subsection (c) in detail.
                    ``(B) Allocations to large and small local 
                educational agencies.--
                            ``(i) Application of provision.--The 
                        Secretary shall determine the amount of grant 
                        awards under this section for each large or 
                        small local educational agency.
                            ``(ii) Large agencies.--The amount of a 
                        grant awarded under this section for each large 
                        local educational agency shall be the amount 
                        determined by the Secretary under clause (i).
                            ``(iii) Small agencies.--With respect to 
                        the amount of a grant awarded under this 
                        section to a small local educational agency, 
                        the State educational agency may--
                                    ``(I) provide such grant in an 
                                amount determined by the Secretary 
                                under clause (i); or
                                    ``(II) use an alternative method 
                                approved by the Secretary to distribute 
                                the portion of the State's total grants 
                                under this section that is based on the 
                                number of small local educational 
                                agencies.
                            ``(iv) Alternative method.--An alternative 
                        method approved under clause (iii)(II) shall be 
                        based on population data that the State 
                        educational agency determines best reflects the 
                        current distribution of children in poor 
                        families among the State's small local 
                        educational agencies that meet the eligibility 
                        criteria of subsection (b).
                            ``(v) Appeals.--A small local educational 
                        agency that is dissatisfied with the 
                        determination of its grant amount by the State 
                        educational agency under clause (iii)(II), may 
                        appeal that determination to the Secretary, who 
shall respond not later than 45 days after receipt of such appeal.
                            ``(vi) Definition.--In this subparagraph:
                                    ``(I) large local educational 
                                agency.--The term `large local 
                                educational agency' means a local 
                                educational agency serving an area with 
                                a total population of 20,000 or more.
                                    ``(II) Small local educational 
                                agency.--The term `small local 
                                educational agency' means a local 
                                educational agency serving an area with 
                                a total population of less than 20,000.
            ``(3) Puerto rico.--
                    ``(A) In general.--For each fiscal year, the amount 
                of the grant that the Commonwealth of Puerto Rico shall 
                be eligible to receive under this section shall be 
                determined by multiplying the number of children 
                counted under subsection (c) for the Commonwealth of 
                Puerto Rico by the product of--
                            ``(i) the percentage which the average per 
                        pupil expenditure in the Commonwealth of Puerto 
                        Rico is of the lowest average per pupil 
                        expenditure of any of the 50 States; and
                            ``(ii) 32 percent of the average per pupil 
                        expenditure in the United States.
                    ``(B) Minimum percentage.--The percentage in 
                subparagraph (A)(i) shall not be less than--
                            ``(i) for fiscal year 2001, 75.0 percent;
                            ``(ii) for fiscal year 2002, 77.5 percent;
                            ``(iii) for fiscal year 2003, 80.0 percent;
                            ``(iv) for fiscal year 2004, 82.5 percent; 
                        and
                            ``(v) for fiscal year 2005, and succeeding 
                        fiscal years, 85.0 percent.
                    ``(C) Limitation.--If the application of 
                subparagraph (B) would result in any of the 50 States 
                or the District of Columbia receiving less under this 
                part than the State or District received under this 
                part for the preceding fiscal year, the percentage 
                shall be the greater of the percentage described in 
                subparagraph (A)(i) or the percentage used for the 
                preceding fiscal year.
            ``(4) Definition.--In this subsection, the term `State' 
        does not include Guam, American Samoa, the Virgin Islands, and 
        the Northern Mariana Islands.
    ``(b) Minimum Number of Children To Qualify.--A local educational 
agency shall be eligible for a basic grant under this section for any 
fiscal year only if--
            ``(1) there are 10 or more children counted under 
        subsection (c) with respect to that agency; and
            ``(2) such children make up more than 2 percent of the 
        total school-age population in the agency's jurisdiction.
    ``(c) Children to be Counted.--
            ``(1) Categories of children.--The number of children to be 
        counted for purposes of this section is the aggregate of--
                    ``(A) the number of children ages 5 to 17, 
                inclusive, in the school district of the local 
                educational agency involved from families below the 
                poverty level as determined under paragraph (2); and
                    ``(B) the number of children (determined under 
                paragraph (4) for either the preceding year as 
                described in that paragraph, or for the second 
                preceding year, as the Secretary finds appropriate) 
                ages 5 to 17, inclusive, in the school district of the 
                local educational agency involved in institutions for 
                neglected and delinquent children (other than such 
                institutions operated by the United States), but not 
                counted pursuant to subpart 1 of part D for the 
                purposes of a grant to a State agency, or being 
                supported in foster homes with public funds.
            ``(2) Determination of number of children.--
                    ``(A) Number of children below the poverty level.--
                For purposes of this subsection, the Secretary shall 
                determine the number of children ages 5 to 17, 
                inclusive, from families below the poverty level on the 
                basis of the most recent satisfactory data, described 
                in paragraph (3), that is available from the Department 
                of Commerce.
                    ``(B) Special rules.--
                            ``(i) District of columbia and puerto 
                        rico.--The District of Columbia and the 
                        Commonwealth of Puerto Rico shall be treated as 
                        individual local educational agencies for 
                        purposes of this paragraph.
                            ``(ii) Multiple counties.--If a local 
                        educational agency contains 2 or more counties 
                        in their entirety, then each county will be 
                        treated as if such county were a separate local 
                        educational agency for purposes of calculating 
                        grants under this part. The total of grants for 
                        such counties shall be allocated to such local 
                        educational agency and the local educational 
                        agency shall distribute to schools in each 
                        county within such agency a share of the local 
                        educational agency's total grant in an amount 
                        that is not less than the county's share of the 
                        population counts used to calculate the local 
                        educational agency's grant.
            ``(3) Population updates.--
                    ``(A) In general.--In fiscal year 2002, and every 2 
                years thereafter, the Secretary shall use updated data 
                on the number of children, ages 5 to 17, inclusive, 
                from families below the poverty level for local 
                educational agencies or counties, as published by the 
                Department of Commerce, unless the Secretary and the 
                Secretary of Commerce determine that the use of the 
                updated population data would be inappropriate or 
                unreliable.
                    ``(B) Criteria of poverty.--In determining the 
                families which are below the poverty level, the 
                Secretary shall utilize the criteria of poverty used by 
                the Bureau of the Census in compiling the most recent 
                decennial census, in such form as those criteria have 
                been updated by increases in the Consumer Price Index 
                for all urban consumers, published by the Bureau of 
                Labor Statistics.
                    ``(C) Inappropriate or unreliable data.--If the 
                Secretary and the Secretary of Commerce determine that 
                some or all of the data referred to in subparagraph (A) 
                are inappropriate or unreliable, the Secretaries shall 
                publicly disclose the reasons for such determination.
            ``(4) Other children to be counted.--
                    ``(A) In general.--For the purposes of this 
                section, the Secretary shall--
                            ``(i) determine the number of children ages 
                        5 to 17, inclusive, from families above the 
                        poverty line on the basis of the number  of 
such children from families receiving an annual income in excess of the 
annual income current criteria of poverty for payments under a State 
program funded under part A of title IV of the Social Security Act; and
                            ``(ii) in making a determination under 
                        clause (i), utilize the criteria of poverty 
                        used by the Bureau of the Census in compiling 
                        the most recent decennial census for a family 
                        of 4 in such form as those criteria have been 
                        updated by increases in the Consumer Price 
                        Index for all urban consumers, published by the 
                        Bureau of Labor Statistics.
                    ``(B) Caseload data.--The Secretary shall determine 
                the number of children described in subparagraph (A) 
                and the number of children ages 5 to 17, inclusive, 
                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 year preceding the fiscal year 
                for which the determination is being made (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. For the purpose of this section, the 
                Secretary shall consider all children who are in 
                correctional institutions to be living in institutions 
                for delinquent children.
                    ``(C) Collection and transmission of data.--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.
            ``(5) Estimate.--When requested by the Secretary, the 
        Secretary of Commerce shall make a special updated estimate of 
        the number of children of such ages who are from families below 
        the poverty level in each school district, and the Secretary 
        may pay (either in advance or by way of reimbursement) the 
        Secretary of Commerce the cost of making this special estimate. 
        The Secretary of Commerce shall give consideration to any 
        request of the chief executive of a State for the collection of 
        additional census information.
    ``(d) State Minimum.--Notwithstanding section 1122, the aggregate 
amount allotted for all local educational agencies within a State may 
not be less than the lesser of--
            ``(1) 0.25 percent of total amount of grants awarded under 
        this section; or
            ``(2) the average of--
                    ``(A) one-quarter of 1 percent of the total amount 
                available for such fiscal year under this section; and
                    ``(B) the number of children in such State counted 
                under subsection (c) in the fiscal year multiplied by 
                150 percent of the national average per pupil payment 
                made with funds available under this section for that 
                year.''.

SEC. 119. CONCENTRATION GRANTS.

    Section 1124A (20 U.S.C. 6334) is amended to read as follows:

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

    ``(a) Eligibility for and Amount of Grants.--
            ``(1) Eligibility.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, each local educational agency in a 
                State other than Guam, American Samoa, the Virgin 
                Islands, and the Commonwealth of the Northern Mariana 
                Islands, that is eligible for a grant under section 
                1124 for any fiscal year shall be eligible for an 
                additional grant under this section for that fiscal 
                year if the number of children counted under section 
                1124(c) with respect to the agency exceeds--
                            ``(i) 6,500; or
                            ``(ii) 15 percent of the total number of 
                        children ages 5 through 17, inclusive, in the 
                        agency.
                    ``(B) Minimum amount.--Notwithstanding section 
                1122, no State described in subparagraph (A) shall 
                receive an amount under this section that is less than 
                the lesser of--
                            ``(i) 0.25 percent of the total amount of 
                        grants awarded under this section; or
                            ``(ii) the average of--
                                    ``(I) one-quarter of 1 percent of 
                                the amounts made available to carry out 
                                this section for such fiscal year; and
                                    ``(II) the greater of--
                                        ``(aa) $340,000; or
                                        ``(bb) the number of children 
                                        in such State counted for 
                                        purposes of this section in 
                                        that fiscal year multiplied by 
                                        150 percent of the national 
                                        average per pupil payment made 
                                        with funds available under this 
                                        section for that year.
            ``(2) Special rule.--For each local educational agency 
        eligible to receive an additional grant under this section for 
        any fiscal year the Secretary shall determine the product of--
                    ``(A) the number of children counted under section 
                1124(c) for that fiscal year; and
                    ``(B) the quotient resulting from the division of 
                the amount determined for those agencies under section 
                1124(a)(1) for the fiscal year for which the 
                determination is being made divided by the total number 
                of children counted under section 1124(c) for that 
agency for that fiscal year.
            ``(3) Amount.--The amount of an additional grant for which 
        an eligible local educational agency is eligible under this 
        section for any fiscal year shall be an amount that bears the 
        same ratio to the amount available to carry out this section 
        for that fiscal year as the product determined under paragraph 
        (2) for such local educational agency for that fiscal year 
        bears to the sum of such product for all local educational 
        agencies in the United States for that fiscal year.
            ``(4) Local allocations.--Grant amounts under this section 
        shall be determined in accordance with section 1124(a)(2) and 
        (3).
    ``(b) States Receiving Minimum Grants.--With respect to a State 
that receives a grant for the minimum amount under subsection 
(a)(1)(B), the State educational agency shall allocate such amount 
among the local educational agencies in each State either--
            ``(1) in accordance with paragraphs (2) and (4) of 
        subsection (a); or
            ``(2) based on their respective concentrations and numbers 
        of children counted under section 1124(c), except that only 
        those local educational agencies with concentrations or numbers 
        of children counted under section 1124(c) that exceed the 
        statewide average percentage of such children or the statewide 
        average number of such children shall receive any funds on the 
        basis of this paragraph.''.

SEC. 120. TARGETED GRANTS.

    Section 1125 (20 U.S.C 6335) is amended to read as follows:

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

    ``(a) Eligibility of Local Educational Agencies.--A local 
educational agency in a State shall be eligible to receive a targeted 
grant under this section for any fiscal year if the number of children 
in the local educational agency counted under subsection 1124(c), 
before the application of the weighting factor described in subsection 
(c), is at least 10, and if the number of children counted for grants 
under section 1124 is at least 5 percent of the total population age 5 
to 17 years, inclusive, in the local educational agency.
    ``(b) Grants for Local Educational Agencies, the District of 
Columbia, and Puerto Rico.--
            ``(1) In general.--The amount of a grant that a local 
        educational agency in a State or that the District of Columbia 
        is eligible to receive under this section for any fiscal year 
        shall be equal to the product of--
                    ``(A) the weighted child count determined under 
                subsection (c); and
                    ``(B) the amount determined under section 
                1124(a)(1)(B).
            ``(2) Puerto rico.--For each fiscal year, the amount of the 
        grant for which the Commonwealth of Puerto Rico is eligible to 
        receive under this section shall be equal to the number of 
        children counted under subsection (c) for Puerto Rico, 
        multiplied by the amount determined under section 1124(a)(4).
    ``(c) Weighted Child Count.--
            ``(1) In general.--For each fiscal year, the weighted child 
        count used to determine a local educational agency's grant 
        under this section shall be equal to the sum of--
                    ``(A) the number of children determined under 
                section 1124(c) for that local educational agency 
                constituting up to 14.265 percent, inclusive, of the 
                agency's total population ages 5 to 17, inclusive, 
                multiplied by 1.0;
                    ``(B) the number of such children constituting more 
                than 14.265 percent, but not more than 21.553 percent, 
                of such population, multiplied by 1.75;
                    ``(C) the number of such children constituting more 
                than 21.553 percent, but not more than 29.223 percent, 
                of such population, multiplied by 2.5;
                    ``(D) the number of such children constituting more 
                than 29.223 percent, but not more than 36.538 percent, 
                of such population, multiplied by 3.25; and
                    ``(E) the number of such children constituting more 
                than 36.538 percent of such population, multiplied by 
                4.0.
            ``(2) Puerto rico.--Notwithstanding subparagraph (A), the 
        weighted child count for Puerto Rico under this paragraph shall 
        not be greater than the total number of children counted under 
        section 1124(c) multiplied by 1.72.
    ``(d) Calculation of Grant Amounts.--Grants under this section 
shall be calculated in accordance with section 1124(a)(2) and (3).
    ``(e) State Minimum.--Notwithstanding any other provision of this 
section or section 1122, from the total amount made available for any 
fiscal year to carry out this section, each State shall be allotted at 
least the lesser of--
            ``(1) 0.25 percent of the total amount of grants awarded 
        under this section; or
            ``(2) the average of--
                    ``(A) one-quarter of 1 percent of the total amount 
                available for such fiscal year to carry out this 
                section; and
                    ``(B) 150 percent of the national average grant 
                under this section per child described in section 
                1124(c), without application of a weighting factor, 
                multiplied by the State's total number of children 
                described in section 1124(c), without application of a 
                weighting factor.''.

SEC. 121. SPECIAL ALLOCATION PROCEDURES.

    Section 1126 (20 U.S.C. 6337) is amended to read as follows:

``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

    ``(a) Allocations for Neglected Children.--
            ``(1) In general.--If a State educational agency determines 
        that a local educational agency in the State is unable or 
        unwilling to provide for the special educational needs of 
        children who are living in institutions for neglected children 
        as described in  subparagraph (B) of section 1124(c)(1), the 
State educational agency shall, if such agency assumes responsibility 
for the special educational needs of such children, receive the portion 
of such local educational agency's allocation under sections 1124, 
1124A, and 1125 that is attributable to such children.
            ``(2) Special rule.--If the State educational agency does 
        not assume the responsibility described in paragraph (1), any 
        other State or local public agency that does assume such 
        responsibility shall receive that portion of the local 
        educational agency's allocation.
    ``(b) Allocations Among Local Educational Agencies.--The State 
educational agency may allocate the amounts of grants under sections 
1124, 1124A, and 1125 among the affected local educational agencies--
            ``(1) if 2 or more local educational agencies serve, in 
        whole or in part, the same geographical area;
            ``(2) if a local educational agency provides free public 
        education for children who reside in the school district of 
        another local educational agency; or
            ``(3) to reflect the merger, creation, or change of 
        boundaries of 1 or more local educational agencies.
    ``(c) Reallocation.--If a State educational agency determines that 
the amount of a grant that a local educational agency would receive 
under sections 1124, 1124A, and 1125 is more than such local agency 
will use, the State educational agency shall make the excess amount 
available to other local educational agencies in the State that need 
additional funds in accordance with criteria established by the State 
educational agency.''.

              PART B--EVEN START FAMILY LITERACY PROGRAMS

SEC. 131. PROGRAM AUTHORIZED.

    Section 1202(c) (20 U.S.C. 6362(c)) is amended--
            (1) in paragraph (1), by striking ``section 2260(b)(3)'' 
        and inserting ``section 7005(c)'';
            (2) by striking paragraph (2)(C); and
            (3) in paragraph (3)--
                    (A) by striking ``is defined'' and inserting ``was 
                defined''; and
                    (B) by inserting ``as such section was in effect on 
                the day preceding the date of enactment of the 
                Education Reform Act'' after ``2252''.

SEC. 132. APPLICATIONS.

    Section 1207(c)(1)(F) (20 U.S.C. 6367(c)(1)(F)) is amended by 
striking ``the Goals 2000'' and all that follows through the period and 
inserting ``or other Acts, as appropriate, consistent with section 
8305.''.

SEC. 133. RESEARCH.

    Section 1211(b) (20 U.S.C. 6396b(b)) is amended to read as follows:
    ``(b) Dissemination.--The Secretary shall disseminate, or designate 
another entity to disseminate, the results of the research described in 
subsection (a) to States and recipients of subgrants under this 
part.''.

                PART C--EDUCATION OF MIGRATORY CHILDREN

SEC. 141. COMPREHENSIVE NEEDS ASSESSMENT AND SERVICE-DELIVERY PLAN; 
              AUTHORIZED ACTIVITIES.

    Section 1306(a)(1) (20 U.S.C. 6369(a)(1)) is amended--
            (1) in subparagraph (A), by striking ``the Goals 2000'' and 
        all that follows through the period and inserting ``or other 
        Acts, as appropriate, consistent with section 8305;'';
            (2) in subparagraph (B), by striking ``section 14302'' and 
        inserting ``section 8302''; and
            (3) in subparagraph (F), by striking ``bilingual 
        education'' and all that follows and inserting ``language 
        instruction programs under title III; and''.

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

SEC. 151. STATE PLAN AND STATE AGENCY APPLICATIONS.

    Section 1414 (20 U.S.C. 6434) is amended--
            (1) in subsection (a)(1), by striking ``the Goals 2000'' 
        and all that follows through the period and inserting ``or 
        other Acts, as appropriate, consistent with section 8305.''; 
        and
            (2) in subsection (c)--
                    (A) in paragraph (6), by striking ``section 14701'' 
                and inserting ``section 8701''; and
                    (B) in paragraph (7), by striking ``section 14501'' 
                and inserting ``section 8501''.

SEC. 152. USE OF FUNDS.

    Section 1415(a)(2)(D) (20 U.S.C. 6435(a)(2)(D)) is amended by 
striking ``section 14701'' and inserting ``section 8701''.

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

SEC. 161. EVALUATIONS.

    Section 1501 (20 U.S.C. 6491) is amended--
            (1) in subsection (a)(4)--
                    (A) by striking ``January 1, 1996'' and inserting 
                ``January 1, 2002''; and
                    (B) by striking ``January 1, 1999'' and inserting 
                ``January 1, 2005'';
            (2) in subsection (b)(1), by striking ``December 31, 1997'' 
        and inserting ``December 31, 2003''; and
            (3) in subsection (e)(2), by striking ``December 31, 1996'' 
        and inserting ``December 31, 2002''.

SEC. 162. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

    Section 1502 (20 U.S.C. 6492) is amended to read as follows:

``SEC. 1502. COMPREHENSIVE SCHOOL REFORM.

    ``(a) Findings and Purpose.--
            ``(1) Findings.--Congress finds the following:
                    ``(A) A number of schools across the country have 
                shown impressive gains in student performance through 
                the use of comprehensive models for schoolwide change 
                that incorporate virtually all aspects of school 
                operations.
                    ``(B) No single comprehensive school reform model 
                may be suitable for every school, however, schools 
should be encouraged to examine successful, externally developed 
comprehensive school reform approaches as they undertake comprehensive 
school reform.
                    ``(C) Comprehensive school reform is an important 
                means by which children are assisted in meeting 
                challenging State student performance standards.
            ``(2) Purpose.--The purpose of this section is to provide 
        financial incentives for schools to develop comprehensive 
        school reforms, based upon scientifically based research and 
        effective practices that include an emphasis on basic academics 
        and parental involvement so that all children can meet 
        challenging State content and performance standards.
    ``(b) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to provide 
        grants to State educational agencies to provide subgrants to 
        local educational agencies to carry out the purpose described 
        in subsection (a)(2).
            ``(2) Allocation.--
                    ``(A) Reservation.--Of the amount appropriated 
                under this section, the Secretary may reserve--
                            ``(i) not more than 1 percent for schools 
                        supported by the Bureau of Indian Affairs and 
                        in the United States Virgin Islands, Guam, 
                        American Samoa, and the Commonwealth of the 
                        Northern Mariana Islands; and
                            ``(ii) not more than 1 percent to conduct 
                        national evaluation activities described under 
                        subsection (e).
                    ``(B) In general.--Of the amount of funds remaining 
                after the reservation under subparagraph (A), the 
                Secretary shall allocate to each State for a fiscal 
                year, an amount that bears the same ratio to the amount 
                appropriated for that fiscal year as the amount made 
                available under section 1124 to the State for the 
                preceding fiscal year bears to the total amount 
                allocated under section 1124 to all States for that 
                year.
                    ``(C) Reallocation.--If a State does not apply for 
                funds under this section, the Secretary shall 
                reallocate such funds to other States that do apply in 
                proportion to the amount allocated to such States under 
                subparagraph (B).
    ``(c) State Awards.--
            ``(1) State application.--
                    ``(A) In general.--Each State educational agency 
                that desires to receive a grant under this section 
                shall submit an application to the Secretary at such 
                time, in such manner and containing such other 
                information as the Secretary may reasonably require.
                    ``(B) Contents.--Each State application shall also 
                describe--
                            ``(i) the process and selection criteria by 
                        which the State educational agency, using 
                        expert review, will select local educational 
                        agencies to receive subgrants under this 
                        section;
                            ``(ii) how the agency will ensure that only 
                        comprehensive school reforms that are based on 
                        scientifically based research receive funds 
                        under this section;
                            ``(iii) how the agency will disseminate 
                        materials regarding information on 
                        comprehensive school reforms that are based on 
                        scientifically based research;
                            ``(iv) how the agency will evaluate the 
                        implementation of such reforms and measure the 
                        extent to which the reforms resulted in 
                        increased student academic performance; and
                            ``(v) how the agency will provide, upon 
                        request, technical assistance to the local 
                        educational agency in evaluating, developing, 
                        and implementing comprehensive school reform.
            ``(2) Uses of funds.--
                    ``(A) In general.--Except as provided in 
                subparagraph (E), a State educational agency that 
                receives an award under this section shall use such 
                funds to provide competitive grants to local 
                educational agencies receiving funds under part A.
                    ``(B) Grant requirements.--A grant to a local 
                educational agency shall be--
                            ``(i) of sufficient size and scope to 
                        support the initial costs for the particular 
                        comprehensive school reform plan selected or 
                        designed by each school identified in the 
                        application of the local educational agency;
                            ``(ii) in an amount not less than $50,000 
                        to each participating school; and
                            ``(iii) renewable for two additional 1-year 
                        periods after the initial 1-year grant is made 
                        if schools are making substantial progress in 
                        the implementation of their reforms.
                    ``(C) Priority.--The State, in awarding grants 
                under this paragraph, shall give priority to local 
                educational agencies that--
                            ``(i) plan to use the funds in schools 
                        identified as being in need of improvement or 
                        corrective action under section 1116(c); and
                            ``(ii) demonstrate a commitment to assist 
                        schools with budget allocation, professional 
                        development, and other strategies necessary to 
                        ensure the comprehensive school reforms are 
                        properly implemented and are sustained in the 
                        future.
                    ``(D) Grant consideration.--In making subgrant 
                awards under this part, the State educational agency 
                shall take into account the equitable distribution of 
                awards to different geographic regions within the 
                State, including urban and rural areas, and to schools 
                serving elementary and secondary students.
                    ``(E) Administrative costs.--A State educational 
                agency that receives a grant award under this section 
                may reserve not more than 5 percent of such award for 
                administrative, evaluation, and technical assistance 
                expenses.
                    ``(F) Supplement.--Funds made available under this 
                section shall be used to supplement, not supplant, any 
                other Federal, State, or local funds that would 
                otherwise be available to carry out this section.
            ``(3) Reporting.--Each State educational agency that 
        receives an award under this section shall provide to the 
        Secretary such information as the Secretary may require, 
        including the names of local educational agencies and schools 
        selected to receive subgrant awards under this section, the 
        amount of such award, and a description of the comprehensive 
        school reform model selected and in use.
    ``(d) Local Awards.--
            ``(1) In general.--Each local educational agency that 
        applies for a subgrant under this section shall--
                    ``(A) identify which schools eligible for funds 
                under part A plan to implement a comprehensive school 
                reform program, including the projected costs of such a 
                program;
                    ``(B) describe the scientifically based 
                comprehensive school reforms that such schools will 
                implement;
                    ``(C) describe how the agency will provide 
                technical assistance and support for the effective 
                implementation of the scientifically based school 
                reforms selected by such schools; and
                    ``(D) describe how the agency will evaluate the 
                implementation of such reforms and measure the results 
                achieved in improving student academic performance.
            ``(2) Components of the program.--A local educational 
        agency that receives a subgrant award under this section shall 
        provide such funds to schools that implement a comprehensive 
        school reform program that--
                    ``(A) employs innovative strategies and proven 
                methods for student learning, teaching, and school 
                management that are based on scientifically based 
                research and effective practices and have been 
                replicated successfully in schools with diverse 
                characteristics;
                    ``(B) integrates a comprehensive design for 
                effective school functioning, including instruction, 
                assessment, classroom management, professional 
                development, parental involvement, and school 
                management, that aligns the school's curriculum, 
                technology, professional development into a 
                comprehensive reform plan for schoolwide change 
                designed to enable all students to meet challenging 
                State content and challenging student performance 
                standards and addresses needs identified through a 
                school needs assessment;
                    ``(C) provides high-quality and continuous teacher 
                and staff professional development;
                    ``(D) includes measurable goals for student 
                performance and benchmarks for meeting such goals;
                    ``(E) is supported by teachers, principals, 
                administrators, and other professional staff;
                    ``(F) provides for the meaningful involvement of 
                parents and the local community in planning and 
                implementing school improvement activities;
                    ``(G) uses high quality external technical support 
                and assistance from an entity, which may be an 
                institution of higher education, with experience and 
                expertise in schoolwide reform and improvement;
                    ``(H) includes a plan for the evaluation of the 
                implementation of school reforms and the student 
                results achieved; and
                    ``(I) identifies how other resources, including 
                Federal, State, local, and private resources, available 
                to the school will be used to coordinate services to 
                support and sustain the school reform effort.
            ``(3) Special rule.--A school that receives funds to 
        develop a comprehensive school reform program shall not be 
        limited to using the approaches identified or developed by the 
        Department of Education, but may develop its own comprehensive 
        school reform programs for schoolwide change that comply with 
        paragraph (2).
    ``(e) Evaluation and Report.--
            ``(1) In general.--The Secretary shall develop a plan for a 
        national evaluation of the programs developed pursuant to this 
        section.
            ``(2) Evaluation.--This national evaluation shall evaluate 
        the implementation and results achieved by schools after 3 
        years of implementing comprehensive school reforms, and assess 
        the effectiveness of comprehensive school reforms in schools 
        with diverse characteristics.
            ``(3) Reports.--Prior to the completion of a national 
        evaluation, the Secretary shall submit an interim report 
        outlining first year implementation activities to the 
        Committees on Education and the Workforce and Appropriations of 
        the House of Representatives and the Committees on Health, 
        Education, Labor, and Pensions and Appropriations of the 
        Senate.
    ``(f) Definition.--The term `scientifically based research'--
            ``(1) means the application of rigorous, systematic, and 
        objective procedures in the development of comprehensive school 
        reform models; and
            ``(2) shall include research that--
                    ``(A) employs systematic, empirical methods that 
                draw on observation or experiment;
                    ``(B) involves rigorous data analyses that are 
                adequate to test the stated hypotheses and justify the 
                general conclusions drawn;
                    ``(C) relies on measurements or observational 
                methods that provide valid data across  evaluators and 
observers and across multiple measurements and observations; and
                    ``(D) has been accepted by a peer-reviewed journal 
                or approved by a panel of independent experts through a 
                comparably rigorous, objective, and scientific review.
    ``(g) Authorization of Appropriations.--Funds appropriated for any 
fiscal year under section 1002(f) shall be used for carrying out the 
activities under this section.''.

             PART F--RURAL EDUCATION DEVELOPMENT INITIATIVE

SEC. 171. RURAL EDUCATION DEVELOPMENT INITIATIVE.

    Title I (20 U.S.C. 6301 et seq.) is amended--
            (1) by redesignating part F (20 U.S.C. 6511 et seq.) as 
        part G;
            (2) by redesignating sections 1601 through 1604 (20 U.S.C. 
        6511, 6514) as sections 1701 through 1704, respectively, and by 
        redesignating accordingly the references to such sections in 
        part G (as so redesignated); and
            (3) by inserting after part E (20 U.S.C. 6491 et seq.) the 
        following:

            ``PART F--RURAL EDUCATION DEVELOPMENT INITIATIVE

``SEC. 1601. FINDINGS.

    ``Congress makes the following findings:
            ``(1) The National Center for Educational Statistics 
        reports that 46 percent of our Nation's public elementary 
        schools and secondary schools serve rural areas.
            ``(2) While there are rural education initiatives 
        identified at the State and local level, no Federal education 
        policy focuses on the specific and unique needs of rural school 
        districts and schools, especially those that serve poor 
        students.
            ``(3) A critical problem for rural school districts 
        involves the hiring and retention of qualified administrators 
        and certified teachers, especially in science and mathematics. 
        Consequently, teachers in rural schools are almost twice as 
        likely to provide instruction in 3 or more subject areas than 
        teachers in urban schools. Rural schools also face other tough 
        challenges, such as shrinking local tax bases, high 
        transportation costs, aging buildings, limited course 
        offerings, and limited resources.
            ``(4) Data from the National Assessment of Educational 
        Progress (NAEP) consistently shows large gaps between the 
        achievement of students in high poverty schools and those in 
        other schools. High-poverty schools will face special 
        challenges in preparing their students to reach high standards 
        of performance on State and national assessments.

``SEC. 1602. DEFINITIONS.

    ``In this part:
            ``(1) Eligible local educational agency.--The term 
        `eligible local educational agency' means a local educational 
        agency that serves--
                    ``(A) a school-age population, not less than 15 
                percent of which consists of students from families 
                with incomes below the poverty line; and
                    ``(B)(i) a rural locality; or
                    ``(ii) a school-age population of not more than 800 
                students.
            ``(2) Metropolitan area.--The term `metropolitan area' 
        means an area defined as such by the Secretary of Commerce.
            ``(3) Poverty line.--The term `poverty line' means the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act (42 U.S.C. 9902(2))) 
        applicable to a family of the size involved.
            ``(4) Rural locality.--The term `rural locality' means a 
        locality that is not within a metropolitan area.
            ``(5) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            ``(6) School age population.--The term `school age 
        population' means the number of students aged 5 through 17.

``SEC. 1603. PROGRAM AUTHORIZED.

    ``(a) Grants Authorized.--The Secretary shall award grants, from 
allotments under subsection (b)(2), to each State having an application 
approved under section 1604 to enable the State educational agency to 
award grants to eligible local educational agencies to carry out local 
authorized activities described in section 1605(b).
    ``(b) Reservation and Allotments.--
            ``(1) Reservation.--From amounts appropriated under section 
        1608 for each fiscal year, the Secretary shall reserve \1/2\ of 
        1 percent of such amount for payments to the Secretary of the 
        Interior for activities approved by the Secretary, consistent 
        with this subpart, in elementary schools and secondary schools 
        operated or supported by the Bureau of Indian Affairs, on the 
        basis of their respective needs for assistance under this part.
            ``(2) Allotments.--
                    ``(A) In general.--From the amounts appropriated 
                under section 1608 for each fiscal year that remain 
                after making the reservation under paragraph (1), the 
                Secretary shall allot to each State having an 
                application approved under section 1604 an amount that 
                bears the same relationship to the remainder as the 
                school age population served by eligible local 
                educational agencies in the State bears to the school 
                age population served by eligible local educational 
                agencies in all States.
                    ``(B) Data.--In determining the school age 
                population under subparagraph (A), the Secretary shall 
                use the most recent data available from the Bureau of 
                the Census.
    ``(c) Direct Awards to Eligible Local Educational Agencies.--
            ``(1) Nonparticipating state.--If a State educational 
        agency for a fiscal year elects not to participate in a program 
        under this section, or does not have an application approved 
        under section 1604, an eligible local educational agency in 
        such State desiring a grant under this part for the fiscal year 
        shall apply directly to the Secretary to receive a grant under 
        this subsection.
            ``(2) Direct awards.--The Secretary may award, on a 
        competitive basis, the amount the State educational agency is 
        eligible to receive under subsection (b)(2) directly to 
        eligible local educational agencies in the State desiring a 
        grant under paragraph (1).
            ``(3) Administrative funds.--An eligible local educational 
        agency that receives a direct grant under this subsection may 
        use not more than 1 percent of the grant funds for the 
        administrative costs of carrying out this part in the first 
        year the agency receives a grant under this subsection and 0.5 
        percent for such costs in the second and each succeeding such 
        year.
    ``(d) Relation to Other Federal Funding.--Funds received under this 
part by a State educational agency or an eligible local educational 
agency shall not be taken into consideration in determining the 
eligibility for, or amount of, any other Federal funding awarded to 
such agencies.

``SEC. 1604. APPLICATIONS.

    ``(a) In General.--Each State educational agency desiring a grant 
under section 1603 and eligible local educational agency desiring a 
grant under section 1603(c) shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may require.
    ``(b) Contents.--Each application submitted under subsection (a) 
shall--
            ``(1) specify annual, measurable performance goals and 
        objectives, at a minimum, with respect to--
                    ``(A) increased student academic achievement;
                    ``(B) decreased gaps in achievement between 
                minority and non-minority students, and between 
                economically disadvantaged and non-economically 
                disadvantaged students; and
                    ``(C) other factors that the State educational 
                agency or eligible local educational agency may choose 
                to measure;
            ``(2) describe how the State educational agency or eligible 
        local educational agency will hold local educational agencies 
        and elementary schools or secondary schools receiving funds 
        under this part accountable for meeting the annual, measurable 
        goals and objectives;
            ``(3) describe how the State educational agency or eligible 
        local educational agency will provide technical assistance for 
        a local educational agency, an elementary school, or a 
        secondary school that does not meet the annual, measurable 
        goals and objectives; and
            ``(4) describe how the State educational agency or eligible 
        local educational agency will take action against a local 
        educational agency, an elementary school, or a secondary 
        school, if the local educational agency or school fails, over 2 
        consecutive years, to meet the annual, measurable goals and 
        objectives.

``SEC. 1605. WITHIN-STATE ALLOCATIONS.

    ``(a) Allocations.--A State educational agency shall award grants 
under this part to eligible local educational agencies within the State 
according to a formula developed by the State educational agency and 
approved by the Secretary.
    ``(b) Uses of Funds.--Grant funds awarded to eligible local 
educational agencies or made available to elementary schools and 
secondary schools under this section shall be used for--
            ``(1) educational technology, including software and 
        hardware;
            ``(2) professional development;
            ``(3) technical assistance;
            ``(4) recruitment and retention of fully qualified 
        teachers, as defined in title II, and highly qualified 
        principals;
            ``(5) parental involvement activities; or
            ``(6) academic enrichment or other education programs.
    ``(c) Reservation of Administrative Funds.--
            ``(1) First year.--For the first year that a State 
        educational agency receives a grant under this part, the 
        agency--
                    ``(A) shall use not less than 99 percent of the 
                grant funds to award grants to eligible local 
                educational agencies in the State; and
                    ``(B) may use not more than 1 percent for State 
                activities and the administrative costs of carrying out 
                this part.
            ``(2) Succeeding years.--For the second and each succeeding 
        year that a State educational agency receives a grant under 
        this part, the agency--
                    ``(A) shall use not less than 99.5 percent of the 
                grant funds to award grants to eligible local 
                educational agencies in the State; and
                    ``(B) may use not more than 0.5 percent of the 
                grant funds for State activities and the administrative 
                costs of carrying out this part.

``SEC. 1606. ACCOUNTABILITY.

    The Secretary, at the end of the third year that a State 
educational agency or an eligible local educational agency receiving a 
direct award under section 1603(c) participates in the program under 
this part, shall permit only those State educational agencies and 
eligible local educational agencies that meet their annual, measurable 
goals and objectives for 2 consecutive years to receive grant funds for 
the fourth or fifth fiscal years of the program under this part.

``SEC. 1607. REPORTS.

    ``(a) State Reports.--Each State educational agency that receives a 
grant under this part shall provide an annual report to the Secretary. 
The report shall describe--
            ``(1) the method the State educational agency used to award 
        grants to eligible local educational agencies and to provide 
        assistance to elementary schools and secondary schools under 
        this part;
            ``(2) how eligible local educational agencies and 
        elementary schools and secondary schools within the State used 
        the grant funds provided under this part; and
            ``(3) the degree to which progress has been made toward 
        meeting the annual, measurable goals and objectives described 
        in the State application.
    ``(b) Reports From Eligible Local Educational Agencies.--Each 
eligible local educational agency receiving a grant under section 
1603(c) shall provide an annual report to the Secretary. Such report 
shall describe--
            ``(1) how such agency used the grant funds provided under 
        this part;
            ``(2) the degree to which progress has been made toward 
        meeting the annual, measurable goals and objectives described 
        in the eligible local educational agency's application; and
            ``(3) how the local educational agency coordinated funds 
        received under this part with other Federal, State, and local 
        funds.
    ``(c) Report to Congress.--The Secretary shall prepare and submit 
to Congress an annual report setting forth the information provided to 
the Secretary pursuant to subsections (a) and (b).
    ``(d) Study.--The Comptroller General of the United States shall 
conduct a study regarding the impact of assistance provided under this 
part on student achievement, and shall submit such study to Congress.

``SEC. 1608. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$200,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 4 succeeding fiscal years.''.

                       PART G--GENERAL PROVISIONS

SEC. 181. FEDERAL REGULATIONS.

    Section 1701(b)(4) (20 U.S.C. 6511(b)(4)) (as redesignated by 
section 161(2)) is amended by striking ``July 1, 1995'' and inserting 
``May 1, 2000''.

SEC. 182. STATE ADMINISTRATION.

    Section 1703 (20 U.S.C. 6513) (as redesignated by section 161(2)) 
is amended by striking subsection (c).

TITLE II--TEACHER AND PRINCIPAL QUALITY, PROFESSIONAL DEVELOPMENT, AND 
                               CLASS SIZE

SEC. 201. TEACHER AND PRINCIPAL QUALITY, PROFESSIONAL DEVELOPMENT, AND 
              CLASS SIZE.

    Title II (20 U.S.C. 6601 et seq.) is amended to read as follows:

 ``TITLE II--TEACHER AND PRINCIPAL QUALITY, PROFESSIONAL DEVELOPMENT, 
                             AND CLASS SIZE

``SEC. 2001. PURPOSE.

    ``The purpose of this title is to provide grants to State 
educational agencies and local educational agencies in order to assist 
their efforts to increase student academic achievement through such 
strategies as improving teacher and principal quality, increasing 
professional development, and decreasing class size.

``SEC. 2002. DEFINITIONS.

    ``In this title:
            ``(1) Fully qualified.--The term `fully qualified' means--
                    ``(A) in the case of an elementary school teacher 
                (other than a teacher teaching in a public charter 
                school), a teacher who, at a minimum--
                            ``(i) has obtained State certification 
                        (which may include certification obtained 
                        through alternative means), or a State license, 
                        to teach in the State in which the teacher 
                        teaches;
                            ``(ii) holds a bachelor's degree from an 
                        institution of higher education; and
                            ``(iii) demonstrates subject matter 
                        knowledge, teaching knowledge, and the teaching 
                        skills required to teach effectively reading, 
                        writing, mathematics, science, social studies, 
                        and other elements of a liberal arts education; 
                        and
                    ``(B) in the case of a secondary school teacher 
                (other than a teacher teaching in a public charter 
                school), a teacher who, at a minimum--
                            ``(i) has obtained State certification 
                        (which may include certification obtained 
                        through alternative means), or a State license, 
                        to teach in the State in which the teacher 
                        teaches;
                            ``(ii) holds a bachelor's degree from an 
                        institution of higher education; and
                            ``(iii) demonstrates a high level of 
                        competence in all subject areas in which the 
                        teacher teaches through--
                                    ``(I) completion of an academic 
                                major (or courses totaling an 
                                equivalent number of credit hours) in 
                                each of the subject areas in which the 
                                teacher provides instruction;
                                    ``(II) achievement of a high level 
                                of performance in other professional 
                                employment experience in subject areas 
                                relevant to the subject areas in which 
                                the teacher provides instruction; or
                                    ``(III) achievement of a high level 
                                of performance on rigorous academic 
                                subject area tests administered by the 
                                State in which the teacher teaches.
            ``(2) Institution of higher education.--The term 
        `institution of higher education' means an institution of 
        higher education, as defined in section 101 of the Higher 
        Education Act of 1965, that--
                    ``(A) has not been identified as low performing 
                under section 208 of the Higher Education Act of 1965; 
                and
                    ``(B) is in full compliance with the public 
                reporting requirements described in section 207 of the 
                Higher Education Act of 1965.
            ``(3) Outlying area.--The term `outlying area' means the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
            ``(4) Poverty line.--The term `poverty line' means the 
        poverty line (as defined by the Office of Management and 
        Budget, and revised annually in accordance with section 673(2) 
        of the Community Services Block Grant Act) applicable to a 
        family of the size involved, for the most recent year.
            ``(5) School-age population.--The term `school-age 
        population' means the population aged 5 through 17, as 
        determined on the basis of the most recent satisfactory data.
            ``(6) State.--The term `State' means each of the several 
        States in the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

  ``PART A--TEACHER AND PRINCIPAL QUALITY AND PROFESSIONAL DEVELOPMENT

``SEC. 2011. PROGRAM AUTHORIZED.

    ``(a) Grants Authorized.--The Secretary shall award a grant, from 
allotments made under subsection (b), to each State having a State plan 
approved under section 2013, to enable the State to raise the quality 
of, and provide professional development opportunities for, public 
elementary school and secondary school teachers, principals, and 
administrators.
    ``(b) Reservations and Allotments.--
            ``(1) Reservations.--From the amount appropriated under 
        section 2023 to carry out this part for each fiscal year, the 
        Secretary shall reserve--
                    ``(A) \1/2\ of 1 percent of such amount for 
                payments to the Bureau of Indian Affairs for 
                activities, approved by the Secretary, consistent with 
                this part;
                    ``(B) \1/2\ of 1 percent of such amount for 
                payments to outlying areas, to be allotted in 
                accordance with their respective needs as determined by 
                the Secretary, for activities, approved by the 
                Secretary, consistent with this part; and
                    ``(C) such sums as may be necessary to continue to 
                support any multiyear partnership program award made 
                under parts A, C, and D (as such parts were in effect 
                on the day preceding the date of enactment of the 
                Education Reform Act) until the termination of the 
                multiyear award.
            ``(2) State allotments.--From the amount appropriated under 
        section 2023 for a fiscal year and remaining after the 
        Secretary makes reservations under paragraph (1), the Secretary 
        shall allot to each State having a State plan approved under 
        section 2013 the sum of--
                    ``(A) an amount that bears the same relationship to 
                50 percent of the remainder as the school-age 
                population from families with incomes below the poverty 
                line in the State bears to the school-age population 
                from families with incomes below the poverty line in 
                all States; and
                    ``(B) an amount that bears the same relationship to 
                50 percent of the remainder as the school-age 
                population in the State bears to the school-age 
                population in all States.
    ``(c) State Minimum.--For any fiscal year, no State shall be 
allotted under this section an amount that is less than \1/2\ of 1 
percent of the total amount allotted to all States under subsection 
(b)(2).
    ``(d) Hold-Harmless Amounts.--For fiscal year 2002, notwithstanding 
subsection (b)(2), the amount allotted to each State under this section 
shall be not less than 100 percent of the total amount the State was 
allotted under part B (as such part was in effect on the day preceding 
the date of enactment of the Education Reform Act) for the preceding 
fiscal year.
    ``(e) Ratable Reductions.--If the sums made available under 
subsection (b)(2) for any fiscal year are insufficient to pay the full 
amounts that all States are eligible to receive under subsection (d) 
for such year, the Secretary shall ratably reduce such amounts for such 
year.

``SEC. 2012. WITHIN STATE ALLOCATION.

    ``(a) In General.--Each State educational agency for a State 
receiving a grant under section 2011(a) shall--
            ``(1) set aside 10 percent of the grant funds to award 
        educator partnership grants under section 2021;
            ``(2) set aside not more than 5 percent of the grant funds 
        to carry out activities described the State plan submitted 
        under section 2013; and
            ``(3) using the remaining 85 percent of the grant funds, 
        make subgrants by allocating to each local educational agency 
        in the State the sum of--
                    ``(A) an amount that bears the same relationship to 
                60 percent of the remainder as the school-age 
                population from families with incomes below the poverty 
                line in the area served by the local educational agency 
                bears to the school-age population from families with 
                incomes below the poverty line in the area served by 
                all local educational agencies in the State; and
                    ``(B) an amount that bears the same relationship to 
                40 percent of the remainder as the school-age 
                population in the area served by the local educational 
                agency bears to the school-age population in the area 
                served by all local educational agencies in the State.
    ``(b) Hold-Harmless Amounts.--
            ``(1) Fiscal year 2002.--For fiscal year 2002, 
        notwithstanding subsection (a), the amount allocated to each 
        local educational agency under this section shall be not less 
        than 100 percent of the total amount the local educational 
        agency was allocated under this title (as in effect on the day 
        preceding the date of enactment of the Education Reform Act) 
        for fiscal year 2001.
            ``(2) Fiscal year 2003.--For fiscal year 2003, 
        notwithstanding subsection (a), the amount allocated to each 
        local educational agency under this section shall be not less 
        than 85 percent of the amount allocated to the local 
        educational agency under this section for fiscal year 2002.
            ``(3) Fiscal years 2004-2006.--For each of fiscal years 
        2004 through 2006, notwithstanding subsection (a), the amount 
        allocated to each local educational agency under this section 
        shall be not less than 70 percent of the amount allocated to 
        the local educational agency under this section for the 
        previous fiscal year.
    ``(c) Ratable Reductions.--If the sums made available under 
subsection (a)(3) for any fiscal year are insufficient to pay the full 
amounts that all local educational agencies are eligible to receive 
under subsection (b) for such year, the State educational agency shall 
ratably reduce such amounts for such year.

``SEC. 2013. STATE PLANS.

    ``(a) Plan Required.--
            ``(1) Comprehensive state plan.--The entity or agency 
        responsible for teacher certification or licensing under the 
        laws of the State desiring a grant under this part shall submit 
        a State plan to the Secretary at such time, in such manner, and 
        accompanied by such information as the Secretary may require. 
        If the State educational agency is not the entity or agency 
        designated under the laws of the State as responsible for 
        teacher certification or licensing in the State, then the plan 
        shall be developed in consultation with the State educational 
        agency. The entity or agency shall provide annual evidence of 
        such consultation to the Secretary.
            ``(2) Consolidated plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a consolidated plan 
        under section 8302.
    ``(b) Contents.--Each plan submitted under subsection (a) shall--
            ``(1) describe how the State is taking reasonable steps 
        to--
                    ``(A) reform teacher certification, 
                recertification, or licensure requirements to ensure 
                that--
                            ``(i) teachers have the necessary teaching 
                        skills and academic content knowledge in the 
                        academic subjects in which the teachers are 
                        assigned to teach;
                            ``(ii) such requirements are aligned with 
                        the challenging State content standards;
                            ``(iii) teachers have the knowledge and 
                        skills necessary to help students meet the 
                        challenging State student performance 
                        standards;
                            ``(iv) such requirements take into account 
                        the need, as determined by the State, for 
                        greater access to, and participation in, the 
                        teaching profession by individuals from 
                        historically underrepresented groups; and
                            ``(v) teachers have the necessary 
                        technological skills to integrate more 
                        effectively technology in the teaching of 
                        content required by State and local standards 
                        in all academic subjects in which the teachers 
                        provide instruction;
                    ``(B) develop and implement rigorous testing 
                procedures for teachers, as required in section 
                2002(1)(A), to ensure that new teachers have teaching 
                skills and academic content knowledge necessary to 
                teach effectively the content called for by State and 
                local standards in all academic subjects in which the 
                teachers provide instruction;
                    ``(C) establish, expand, or improve alternative 
                routes to State certification of teachers, especially 
                in the areas of mathematics and science, for highly 
                qualified individuals with a baccalaureate degree, 
                including mid-career professionals form other 
                occupations, paraprofessionals, former military 
                personnel, and recent college or university graduates 
                who have records of academic distinction and who 
                demonstrate the potential to become highly effective 
                teachers;
                    ``(D) reduce emergency teacher certification;
                    ``(E) develop and implement effective programs, and 
                provide financial assistance, to assist local 
                educational agencies, elementary schools, and secondary 
                schools in effectively recruiting and retaining fully 
                qualified teachers and principals, particularly in 
                schools that have the lowest proportion of fully 
                qualified teachers or the highest proportion of low-
                performing students;
                    ``(F) provide professional development programs 
                that meet the requirements described in section 2019;
                    ``(G) provide programs that are designed to assist 
                new teachers during their first 3 years of teaching, 
                such as mentoring programs that--
                            ``(i) provide mentoring to new teachers 
                        from veteran teachers with expertise in the 
                        same subject matter as the new teachers are 
                        teaching;
                            ``(ii) provide mentors time for activities 
                        such as coaching, observing, and assisting 
                        teachers who are being mentored; and
                            ``(iii) use standards or assessments that 
                        are consistent with the State's student 
                        performance standards and the requirements for 
                        professional development activities described 
                        in section 2019 in order to guide the new 
                        teachers;
                    ``(H) provide technical assistance to local 
                educational agencies in developing and implementing 
                activities described in section 2018; and
                    ``(I) ensure that programs in core academic 
                subjects, particularly in mathematics and science, will 
                take into account the need for greater access to, and 
                participation in, such core academic subjects by 
                students from historically underrepresented groups, 
                including females, minorities, individuals with limited 
                English proficiency, the economically disadvantaged, 
                and individuals with disabilities, by incorporating 
                pedagogical strategies and techniques that meet such 
                students' educational needs;
            ``(2) describe the activities for which assistance is 
        sought under the grant, and how such activities will improve 
        students' academic achievement and close academic achievement 
        gaps of low-income, minority, and limited English proficient 
        students;
            ``(3) describe how the State will establish annual 
        numerical performance objectives under section 2014 for 
        improving the qualifications of teachers and the professional 
        development of teachers, principals, and administrators;
            ``(4) contain an assurance that the State consulted with 
        local educational agencies, education-related community groups, 
        nonprofit organizations, parents, teachers, school 
        administrators, local school boards, institutions of higher 
        education in the State, and content specialists in establishing 
        the performance objectives described in section 2014;
            ``(5) describe how the State will hold local educational 
        agencies, elementary schools, and secondary schools accountable 
        for meeting the performance objectives described in section 
        2014 and for reporting annually on the local educational 
        agencies' and schools' progress in meeting the performance 
        objectives;
            ``(6) describe how the State will ensure that a local 
        educational agency receiving a subgrant under section 2012 will 
        comply with the requirements of this part;
            ``(7) provide an assurance that the State will require each 
        local educational agency, elementary school, or secondary 
        school receiving funds under this part to report publicly the 
        local educational agency's or school's annual progress with 
        respect to the performance objectives described in section 
        2014; and
            ``(8) describe how the State will coordinate professional 
        development activities authorized under this part with 
        professional development activities provided under other 
        Federal, State, and local programs, including programs 
        authorized under titles I and III and, where appropriate, the 
        Individuals with Disabilities Education Act and the Carl D. 
        Perkins Vocational and Technical Education Act of 1998.
    ``(c) Secretary Approval.--The Secretary shall, using a peer review 
process, approve a State plan if the plan meets the requirements of 
this section.
    ``(d) Duration of the Plan.--
            ``(1) In general.--Each State plan shall--
                    ``(A) remain in effect for the duration of the 
                State's participation under this part; and
                    ``(B) be periodically reviewed and revised by the 
                State, as necessary, to reflect changes to the State's 
                strategies and programs carried out under this part.
            ``(2) Additional information.--If a State receiving a grant 
        under this part makes significant changes to the State plan, 
        such as the adoption of new performance objectives, the State 
        shall submit information regarding the significant changes to 
        the Secretary.

``SEC. 2014. PERFORMANCE OBJECTIVES.

    ``(a) In General.--Each State receiving a grant under this part 
shall establish annual numerical performance objectives with respect to 
progress in improving the qualifications of teachers and the 
professional development of teachers, principals, and administrators. 
For each annual numerical performance objective established, the State 
shall specify an incremental percentage increase for the objective to 
be attained for each of the fiscal years for which the State receives a 
grant under this part, relative to the preceding fiscal year.
    ``(b) Required Objectives.--At a minimum, the annual numerical 
performance objectives described in subsection (a) shall include an 
incremental increase in the percentage of--
            ``(1) classes in core academic subjects that are being 
        taught by fully qualified teachers;
            ``(2) new teachers and principals receiving professional 
        development support, including mentoring for teachers, during 
        the teachers' first 3 years of teaching;
            ``(3) teachers, principals, and administrators 
        participating in high quality professional development programs 
        that are consistent with section 2019; and
            ``(4) fully qualified teachers teaching in the State, to 
        ensure that all teachers teaching in such State are fully 
        qualified by December 31, 2006.
    ``(c) Requirement for Fully Qualified Teachers.--Each State 
receiving a grant under this part shall ensure that all public 
elementary school and secondary school teachers in the State are fully 
qualified not later than December 31, 2005.
    ``(d) Accountability.--
            ``(1) In general.--Each State receiving a grant under this 
        part shall be held accountable for--
                    ``(A) meeting the State's annual numerical 
                performance objectives; and
                    ``(B) meeting the reporting requirements described 
                in section 4401.
            ``(2) Sanctions.--Any State that fails to meet the 
        requirement described in paragraph (1)(A) shall be subject to 
        sanctions under section 7001.
    ``(e) Coordination.--Each State that receives a grant under this 
part and a grant under section 202 of the Higher Education Act of 1965 
shall coordinate the activities the State carries out under such 
section 202 with the activities the State carries out under this 
section.

``SEC. 2015. OPTIONAL ACTIVITIES.

    ``Each State receiving a grant under section 2011(a) may use the 
grant funds--
            ``(1) to develop and implement a system to measure the 
        effectiveness of specific professional development programs and 
        strategies;
            ``(2) to increase the portability of teacher pensions and 
        reciprocity of teaching certification or licensure among 
        States, except that no reciprocity agreement developed under 
        this section may lead to the weakening of any State teacher 
        certification or licensing requirement;
            ``(3) to develop or assist local educational agencies in 
        the development and utilization of proven, innovative 
        strategies to deliver intensive professional development 
        programs that are cost effective and easily accessible, such as 
        programs offered through the use of technology and distance 
        learning;
            ``(4) to provide assistance to local educational agencies 
        for the development and implementation of innovative 
        professional development programs that train teachers to use 
        technology to improve teaching and learning and that are 
        consistent with the requirements of section 2019;
            ``(5) to provide professional development to enable 
        teachers to ensure that female students, minority students, 
        limited English proficient students, students with 
        disabilities, and economically disadvantaged students have the 
        full opportunity to achieve challenging State content and 
        performance standards in the core academic subjects;
            ``(6) to increase the number of women, minorities, and 
        individuals with disabilities who teach in the State and who 
        are fully qualified and provide instruction in core academic 
        subjects in which such individuals are underrepresented; and
            ``(7) to increase the number of highly qualified women, 
        minorities, and individuals from other underrepresented groups 
        who are involved in the administration of elementary schools 
        and secondary schools within the State.

``SEC. 2016. STATE ADMINISTRATIVE EXPENSES.

    ``Each State receiving a grant under section 2011(a) may use not 
more than 5 percent of the amount set aside in section 2012(a)(2) for 
the cost of--
            ``(1) planning and administering the activities described 
        in section 2013(b); and
            ``(2) making subgrants to local educational agencies under 
        section 2012.

``SEC. 2017. LOCAL PLANS.

    ``(a) In General.--Each local educational agency desiring a grant 
from the State under section 2012(a)(3) shall submit a local plan to 
the State educational agency--
            ``(1) at such time, in such manner, and accompanied by such 
        information as the State educational agency may require; and
            ``(2) that describes how the local educational agency will 
        coordinate the activities for which assistance is sought under 
        this part with other programs carried out under this Act, or 
        other Acts, as appropriate.
    ``(b) Local Plan Contents.--The local plan described in subsection 
(a) shall, at a minimum--
            ``(1) describe how the local educational agency will use 
        the grant funds to meet the State performance objectives for 
        teacher qualifications and professional development described 
        in section 2014;
            ``(2) describe how the local educational agency will hold 
        elementary schools and secondary schools accountable for 
        meeting the requirements described in this part;
            ``(3) contain an assurance that the local educational 
        agency will target funds to elementary schools and secondary 
        schools served by the local educational agency that--
                    ``(A) have the lowest proportion of fully qualified 
                teachers; and
                    ``(B) are identified for school improvement under 
                section 1116;
            ``(4) describe how the local educational agency will 
        coordinate professional development activities authorized under 
        section 2018(a) with professional development activities 
        provided through other Federal, State, and local programs, 
        including those authorized under titles I and III and, where 
        applicable, the Individuals with Disabilities Education Act and 
        the Carl D. Perkins Vocational and Technical Education Act of 
        1998; and
            ``(5) describe how the local educational agency has 
        collaborated with teachers, principals, parents, and 
        administrators in the preparation of the local plan.

``SEC. 2018. LOCAL ACTIVITIES.

    ``(a) In General.--Each local educational agency receiving a grant 
under section 2012(a)(3) shall use the grant funds to--
            ``(1) support professional development activities, 
        consistent with section 2019, for--
                    ``(A) teachers, in at least the areas of reading, 
                mathematics, and science; and
                    ``(B) teachers, principals, and administrators in 
                order to provide such individuals with the knowledge 
                and skills to provide all students, including female 
                students, minority students, limited English proficient 
                students, students with disabilities, and economically 
                disadvantaged students, with the opportunity to meet 
                challenging State content and student performance 
                standards;
            ``(2) provide professional development to teachers, 
        principals, and administrators to enhance the use of technology 
        within elementary schools and secondary schools in order to 
        deliver more effective curricula instruction;
            ``(3) recruit and retain fully qualified teachers and 
        highly qualified principals, particularly for elementary 
        schools and secondary schools located in areas with high 
        percentages of low-performing students and students from 
        families below the poverty line;
            ``(4) recruit and retain fully qualified teachers and high 
        quality principals to serve in the elementary schools and 
        secondary schools with the highest proportion of low-performing 
        students, such as through--
                    ``(A) mentoring programs for newly hired teachers, 
                including programs provided by master teachers, and for 
                newly hired principals; and
                    ``(B) programs that provide other incentives, 
                including financial incentives, to retain--
                            ``(i) teachers who have a record of success 
                        in helping low-performing students improve 
                        those students' academic success; and
                            ``(ii) principals who have a record of 
                        improving the performance of all students, or 
                        significantly narrowing the gaps between 
                        minority students and nonminority students, and 
                        economically disadvantaged students and 
                        noneconomically disadvantaged students, within 
                        the elementary schools or secondary schools 
                        served by the principals; and
            ``(5) provide professional development that incorporates 
        effective strategies, techniques, methods, and practices for 
        meeting the educational needs of diverse groups of students, 
        including female students, minority students, students with 
        disabilities, limited English proficient students, and 
        economically disadvantaged students.
    ``(b) Optional Activities.--Each local educational agency receiving 
a grant under section 2012(a)(3) may use the subgrant funds--
            ``(1) to provide a signing bonus or other financial 
        incentive, such as differential pay for--
                    ``(A) a teacher to teach in an academic subject for 
                which there exists a shortage of fully qualified 
                teachers within the elementary school or secondary 
                school in which the teacher teaches or within the 
                elementary schools and secondary schools served by the 
                local educational agency; or
                    ``(B) a highly qualified principal in a school in 
                which there is a large percentage of children--
                            ``(i) from low-income families; or
                            ``(ii) with high percentages of low-
                        performance scores on State assessments;
            ``(2) to establish programs that--
                    ``(A) recruit professionals into teaching from 
                other fields and provide such professionals with 
                alternative routes to teacher certification, especially 
                in the areas of mathematics, science, and English 
                language arts; and
                    ``(B) provide increased teaching and administration 
                opportunities for fully qualified females, minorities, 
                individuals with disabilities, and other individuals 
                underrepresented in the teaching or school 
                administration professions;
            ``(3) to establish programs and activities that are 
        designed to improve the quality of the teacher and principal 
        force, such as innovative professional development programs 
        (which may be provided through partnerships, including 
        partnerships with institutions of higher education), and 
        including programs that--
                    ``(A) train teachers and principals to utilize 
                technology to improve teaching and learning; and
                    ``(B) are consistent with the requirements of 
                section 2019;
            ``(4) to provide collaboratively designed performance pay 
        systems for teachers and principals that encourage teachers and 
        principals to work together to raise student performance;
            ``(5) to establish professional development programs that 
        provide instruction in how to teach children with different 
        learning styles, particularly children with disabilities and 
        children with special learning needs (including children who 
        are gifted and talented);
            ``(6) to establish professional development programs that 
        provide instruction in how best to discipline children in the 
        classroom, and to identify early and appropriate interventions 
        to help children described in paragraph (5) learn;
            ``(7) to provide professional development programs that 
        provide instruction in how to teach character education in a 
        manner that--
                    ``(A) reflects the values of parents, teachers, and 
                local communities; and
                    ``(B) incorporates elements of good character, 
                including honesty, citizenship, courage, justice, 
                respect, personal responsibility, and trustworthiness;
            ``(8) to provide scholarships or other incentives to assist 
        teachers in attaining national board certification;
            ``(9) to support activities designed to provide effective 
        professional development for teachers of limited English 
        proficient students; and
            ``(10) to establish other activities designed--
                    ``(A) to improve professional development for 
                teachers, principals, and administrators that are 
                consistent with section 2019; and
                    ``(B) to recruit and retain fully qualified 
                teachers and highly qualified principals.
    ``(c) Administrative Expenses.--Each local educational agency 
receiving a grant under section 2012(a)(3) may use not more than 1.5 
percent of the grant funds for any fiscal year for the cost of 
administering activities under this part.

``SEC. 2019. PROFESSIONAL DEVELOPMENT FOR TEACHERS.

    ``(a) Limitation Relating to Curriculum and Content Areas.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        local educational agency may not use grant funds allocated 
        under section 2012(a)(3) to support a professional development 
        activity for a teacher that is not--
                    ``(A) directly related to the curriculum for which 
                and content areas in which the teacher provides 
                instruction; or
                    ``(B) designed to enhance the ability of the 
                teacher to understand and use the State's challenging 
                content standards for the academic subject in which the 
                teacher provides instruction.
            ``(2) Exception.--Paragraph (1) shall not apply to 
        professional development activities that provide instruction in 
        methods of disciplining children.
    ``(b) Professional Development Activity.--A professional 
development activity carried out under this part shall--
            ``(1) be measured, in terms of progress described in 
        section 2014(a), using the specific performance indicators 
        established by the State in accordance with section 2014;
            ``(2) be tied to challenging State or local content 
        standards and student performance standards;
            ``(3) be tied to scientifically based research 
        demonstrating the effectiveness of such activities in 
        increasing student achievement or substantially increasing the 
        knowledge and teaching skills of teachers;
            ``(4) be of sufficient intensity and duration (such as not 
        to include 1-day or short-term workshops and conferences) to 
        have a positive and lasting impact on teachers' performance in 
        the classroom, except that this paragraph shall not apply to an 
        activity that is 1 component described in a long-term 
        comprehensive professional development plan established by a 
        teacher and the teacher's supervisor, and based upon an 
        assessment of the needs of the teacher, the teacher's students, 
        and the local educational agency;
            ``(5) be developed with extensive participation of 
        teachers, principals, parents, administrators, and local school 
        boards of elementary schools and secondary schools to be served 
        under this part, and institutions of higher education in the 
        State, and, with respect to any professional development 
        program described in paragraph (6) or (7) of section 2018(b), 
        shall, if applicable, be developed with extensive coordination 
        with, and participation of, professionals with expertise in 
        such type of professional development;
            ``(6) to the extent appropriate, provide training for 
        teachers regarding using technology and applying technology 
        effectively in the classroom to improve teaching and learning 
        concerning the curriculum and academic content areas, in which 
        those teachers provide instruction; and
            ``(7) be directly related to the content areas in which the 
        teachers provide instruction and the State content standards.
    ``(c) Accountability.--
            ``(1) In general.--A State shall notify a local educational 
        agency that the agency may be subject to the action described 
        in paragraph (3) if, after any fiscal year, the State 
        determines that the programs or activities funded by the agency 
        under this part fail to meet the requirements of subsections 
        (a) and (b).
            ``(2) Technical assistance.--A local educational agency 
        that has received notification pursuant to paragraph (1) may 
        request technical assistance from the State and an opportunity 
        for such local educational agency to comply with the 
        requirements of subsections (a) and (b).
            ``(3) State educational agency action.--If a State 
        educational agency determines that a local educational agency 
        failed to carry out the local educational agency's 
        responsibilities under this section, the State educational 
        agency shall take such action as the agency determines to be 
        necessary, consistent with this section, to provide, or direct 
        the local educational agency to provide, high-quality 
        professional development for teachers, principals, and 
        administrators.

``SEC. 2020. PARENTS' RIGHT TO KNOW.

    ``Each local educational agency receiving a grant under section 
2012(a)(3) shall meet the reporting requirements with respect to 
teacher qualifications described in section 4401(h).

``SEC. 2021. STATE REPORTS AND GAO STUDY.

    ``(a) State Reports.--Each State educational agency receiving a 
grant under this part shall annually provide a report to the Secretary 
describing--
            ``(1) the progress the State is making in increasing the 
        percentages of fully qualified teachers in the State to ensure 
        that all teachers are fully qualified not later than December 
        31, 2006, including information regarding--
                    ``(A) the percentage increase over the previous 
                fiscal year in the number of fully qualified teachers 
                teaching in elementary schools and secondary schools 
                served by local educational agencies receiving funds 
                under title I; and
                    ``(B) the percentage increase over the previous 
                fiscal year in the number of core classes being taught 
                by fully qualified teachers in elementary schools and 
                secondary schools being served under title I;
            ``(2) the activities undertaken by the State educational 
        agency and local educational agencies in the State to attract 
        and retain fully qualified teachers, especially in geographic 
        areas and content subject areas in which a shortage of such 
        teachers exist; and
            ``(3) the approximate percentage of Federal, State, local, 
        and nongovernmental resources being expended to carry out 
        activities described in paragraph (2).
    ``(b) GAO Study.--Not later than September 30, 2005, the 
Comptroller General of the United States shall prepare and submit to 
the Committee on Education and the Workforce of the House of 
Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate a study setting forth information regarding the 
progress of States' compliance in increasing the percentage of fully 
qualified teachers, as defined in section 2002(1), for fiscal years 
2001 through 2004.

``SEC. 2021. EDUCATOR PARTNERSHIP GRANTS.

    ``(a) Subgrants.--
            ``(1) In general.--A State receiving a grant under section 
        2011(a) shall award subgrants, on a competitive basis, from 
        amounts made available under section 2012(a)(1), to local 
        educational agencies, elementary schools, or secondary schools 
        that have formed educator partnerships, for the design and 
        implementation of programs that will enhance professional 
development opportunities for teachers, principals, and administrators, 
and will increase the number of fully qualified teachers.
            ``(2) Allocations.--A State awarding subgrants under this 
        subsection shall allocate the subgrant funds on a competitive 
        basis and in a manner that results in an equitable distribution 
        of the subgrant funds by geographic areas within the State.
            ``(3) Administrative expenses.--Each educator partnership 
        receiving a subgrant under this subsection may use not more 
        than 5 percent of the subgrant funds for any fiscal year for 
        the cost of planning and administering programs under this 
        section.
    ``(b) Educator Partnerships.--An educator partnership described in 
subsection (a) includes a cooperative arrangement between--
            ``(1) a public elementary school or secondary school 
        (including a charter school), or a local educational agency; 
        and
            ``(2) 1 or more of the following:
                    ``(A) An institution of higher education.
                    ``(B) An educational service agency.
                    ``(C) A public or private not-for-profit education 
                organization.
                    ``(D) A for-profit education organization.
                    ``(E) An entity from outside the traditional 
                education arena, including a corporation or consulting 
                firm.
    ``(c) Use of Funds.--An educator partnership receiving a subgrant 
under this section shall use the subgrant funds for--
            ``(1) developing and enhancing of professional development 
        activities for teachers in core academic subjects to ensure 
        that the teachers have content knowledge in the academic 
        subjects in which the teachers provide instruction;
            ``(2) developing and providing assistance to local 
        educational agencies and elementary schools and secondary 
        schools for sustained, high-quality professional development 
        activities for teachers, principals, and administrators, that--
                    ``(A) ensure that teachers, principals, and 
                administrators are able to use State content standards, 
                performance standards, and assessments to improve 
                instructional practices and student achievement; and
                    ``(B) may include intensive programs designed to 
                prepare a teacher who participates in such a program to 
                provide professional development instruction to other 
                teachers within the participating teacher's school;
            ``(3) increasing the number of fully qualified teachers 
        available to provide high-quality education to limited English 
        proficient students by--
                    ``(A) working with institutions of higher education 
                that offer degree programs, to attract more people into 
                such programs, and to prepare better new, English 
                language teachers to provide effective language 
                instruction to limited English proficient students; and
                    ``(B) supporting development and implementation of 
                professional development programs for language 
                instruction teachers to improve the language 
                proficiency of limited English proficient students;
            ``(4) developing and implementing professional development 
        activities for principals and administrators to enable the 
        principals and administrators to be effective school leaders 
        and to improve student achievement on challenging State content 
        and student performance standards, including professional 
        development relating to--
                    ``(A) leadership skills;
                    ``(B) recruitment, assignment, retention, and 
                evaluation of teachers and other staff;
                    ``(C) effective instructional practices, including 
                the use of technology; and
                    ``(D) parental and community involvement; and
            ``(5) providing activities that enhance professional 
        development opportunities for teachers, principals, and 
        administrators or will increase the number of fully qualified 
        teachers.
    ``(d) Application Required.--Each educator partnership desiring a 
subgrant under this section shall submit an application to the 
appropriate State educational agency at such time, in such manner, and 
accompanied by such information as the State educational agency may 
reasonably require.
    ``(e) Coordination.--Each educator partnership that receives a 
subgrant under this section and a grant under section 203 of the Higher 
Education Act of 1965 shall coordinate the activities carried out under 
such section 203 with any related activities carried out under this 
section.

``SEC. 2023. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$1,700,000,000 for fiscal year 2002 and such sums as may be necessary 
for each of the 4 succeeding fiscal years.

                     ``PART B--CLASS SIZE REDUCTION

``SEC. 2031. FINDINGS.

    ``Congress makes the following findings:
            ``(1) Rigorous research has shown that students attending 
        small classes in the early grades make more rapid educational 
        gains than students in larger classes, and that those gains 
        persist through at least the eighth grade.
            ``(2) The benefits of smaller classes are greatest for 
        lower-achieving, minority, poor, and inner-city children, as 
        demonstrated by a study that found that urban fourth graders in 
        smaller-than-average classes were \3/4\ of a school year ahead 
        of their counterparts in larger-than-average classes.
            ``(3) Teachers in small classes can provide students with 
        more individualized attention, spend more time on instruction 
        and less time on other tasks, and cover more material 
        effectively, and are better able to work with parents to 
        further their children's education, than teachers in large 
        classes.
            ``(4) Smaller classes allow teachers to identify and work 
        with students who have learning disabilities sooner than is 
        possible with larger classes, potentially reducing those 
        students' needs for special education services in the later 
        grades.
            ``(5) The National Research Council report, `Preventing 
        Reading Difficulties in Young Children', recommends reducing 
        class sizes, accompanied by providing high-quality professional 
        development for teachers, as a strategy for improving student 
        achievement in reading.
            ``(6) Efforts to improve educational outcomes by reducing 
        class sizes in the early grades are likely to be successful 
        only if well-qualified teachers are hired to fill additional 
        classroom positions, and if teachers receive intensive, ongoing 
        professional development.
            ``(7) Several States and school districts have begun 
        serious efforts to reduce class sizes in the early elementary 
        school grades, but those efforts may be impeded by financial 
        limitations or difficulties in hiring highly qualified 
        teachers.
            ``(8) The Federal Government can assist in those efforts by 
        providing funding for class size reductions in grades 1 through 
        3, and by helping to ensure that both new and current teachers 
        who are moving into smaller classrooms are well prepared.

``SEC. 2032. PURPOSE.

    ``The purpose of this part is to help States and local educational 
agencies recruit, train, and hire 100,000 additional teachers in order 
to--
            ``(1) reduce nationally class size in grades 1 through 3 to 
        an average of 18 students per regular classroom; and
            ``(2) improve teaching in the early elementary school 
        grades so that all students can learn to read independently and 
        well by the end of the third grade.

``SEC. 2033. ALLOTMENTS TO STATES.

    ``(a) Reservations for the Outlying Areas and the Bureau of Indian 
Affairs.--From the amount appropriated under section 2042 for any 
fiscal year, the Secretary shall reserve a total of not more than 1 
percent to make payments to--
            ``(1) outlying areas, on the basis of their respective 
        needs, for activities, approved by the Secretary, consistent 
        with this part; and
            ``(2) the Secretary of the Interior for activities approved 
        by the Secretary of Education, consistent with this part, in 
        schools operated or supported by the Bureau of Indian Affairs, 
        on the basis of their respective needs.
    ``(b) Allotments to States.--
            ``(1) In general.--From the amount appropriated under 
        section 2042 for a fiscal year and remaining after the 
        Secretary makes reservations under subsection (a), the 
        Secretary shall make grants by allotting to each State having a 
        State application approved under section 2034(c) an amount that 
        bears the same relationship to the remainder as the greater of 
        the amounts that the State received in the preceding fiscal 
        year under sections 1122 and 2202(b) (as such sections were in 
        effect on the day preceding the date of enactment of the 
        Education  Reform Act) bears to the total of the greater 
amounts that all States received under such sections for the preceding 
fiscal year.
            ``(2) Ratable reduction.--If the sums made available under 
        paragraph (1) for any fiscal year are insufficient to pay the 
        full amounts that all States are eligible to receive under 
        paragraph (1) for such year, the Secretary shall ratably reduce 
        such amounts for such year.
            ``(3) Reallotment.--If any State chooses not to participate 
        in the program carried out under this part, or fails to submit 
        an approvable application under this part, the Secretary shall 
        reallot the amount that such State would have received under 
        paragraphs (1) and (2) to States having applications approved 
        under section 2034(c), in accordance with paragraphs (1) and 
        (2).

``SEC. 2034. APPLICATIONS.

    ``(a) Applications Required.--The State educational agency for each 
State desiring a grant under this part shall submit an application to 
the Secretary at such time, in such form, and containing such 
information as the Secretary may require.
    ``(b) Contents.--The application shall include--
            ``(1) a description of the State's goals for using funds 
        under this part to reduce average class sizes in regular 
        classrooms in grades 1 through 3, including a description of 
        class sizes in those classrooms, for each local educational 
        agency in the State (as of the date of submission of the 
        application);
            ``(2) a description of how the State educational agency 
        will allocate program funds made available through the grant 
        within the State;
            ``(3) a description of how the State will use other funds, 
        including other Federal funds, to reduce class sizes and to 
        improve teacher quality and reading achievement within the 
        State; and
            ``(4) an assurance that the State educational agency will 
        submit to the Secretary such reports and information as the 
        Secretary may reasonably require.
    ``(c) Approval of Applications.--The Secretary shall approve a 
State application submitted under this section if the application meets 
the requirements of this section and holds reasonable promise of 
achieving the purpose of this part.

``SEC. 2035. WITHIN-STATE ALLOCATIONS.

    ``(a) Allocations to Local Educational Agencies.--Each State 
receiving a grant under this part for any fiscal year may reserve not 
more than 1 percent of the grant funds for the cost of administering 
this part and, using the remaining funds, shall make subgrants by 
allocating to each local educational agency in the State the sum of--
            ``(1) an amount that bears the same relationship to 80 
        percent of the remainder as the school-age population from 
        families with incomes below the poverty line in the area served 
        by the local educational agency bears to the school-age 
        population from families with incomes below the poverty line 
in the area served by all local educational agencies in the State; and
            ``(2) an amount that bears the same relationship to 20 
        percent of the remainder as the enrollment of the school-age 
        population in public and private nonprofit elementary schools 
        and secondary schools in the area served by the local 
        educational agency bears to the enrollment of the school-age 
        population in public and private nonprofit elementary schools 
        and secondary schools in the area served by all local 
        educational agencies in the State.
    ``(b) Reallocation.--If any local educational agency chooses not to 
participate in the program carried out under this part, or fails to 
submit an approvable application under this part, the State educational 
agency shall reallocate the amount such local educational agency would 
have received under subsection (a) to local educational agencies having 
applications approved under section 2036(b), in accordance with 
subsection (a).

``SEC. 2036. LOCAL APPLICATIONS.

    ``(a) In General.--Each local educational agency desiring a 
subgrant under section 2035(a) shall submit an application to the 
appropriate State educational agency at such time, in such form, and 
containing such information as the State educational agency may 
require, including a description of the local educational agency's 
program to reduce class sizes by hiring additional highly qualified 
teachers.
    ``(b) Approval of Applications.--The State educational agency shall 
approve a local agency application submitted under subsection (a) if 
the application meets the requirements of subsection (a) and holds 
reasonable promise of achieving the purpose of this part.

``SEC. 2037. USES OF FUNDS.

    ``(a) Administrative Expenses.--Each local educational agency 
receiving a subgrant under section 2035(a) may use not more than 3 
percent of the subgrant funds for any fiscal year for the cost of 
administering this part.
    ``(b) Recruitment, Teacher Testing, and Professional Development.--
            ``(1) In general.--Each local educational agency receiving 
        subgrant funds under this section shall use such subgrant funds 
        to carry out effective approaches to reducing class size with 
        fully qualified teachers who are certified within the State 
        (including teachers certified through State or local 
        alternative routes) and who demonstrate competency in the areas 
        in which the teachers provide instruction, to improve 
        educational achievement for both regular and special needs 
        children, with particular consideration given to reducing class 
        size in the early elementary grades.
            ``(2) Local activities.--
                    ``(A) In general.--Each local educational agency 
                receiving subgrant funds under this section may use 
                such subgrant funds for--
                            ``(i) recruiting (including through the use 
                        of signing bonuses, and other financial 
                        incentives), hiring, and training fully 
                        qualified regular and special education 
                        teachers (which may include hiring special 
                        education teachers to team-teach with regular 
                        teachers in classrooms that contain both 
                        children with disabilities and non-disabled 
                        children) and teachers of special-needs 
                        children, who are certified within the State, 
                        including teachers who are certified through 
                        State or local alternative routes, have a 
                        bachelor's degree, and demonstrate the general 
                        knowledge, teaching skills, and subject matter 
                        knowledge required to teach in the content 
                        areas in which the teachers provide 
                        instruction;
                            ``(ii) testing new teachers for academic 
                        content knowledge and satisfaction of State 
                        certification requirements consistent with 
                        title II of the Higher Education Act of 1965; 
                        and
                            ``(iii) providing professional development 
                        (which may include such activities as promoting 
                        retention and mentoring) to teachers, including 
                        special education teachers and teachers of 
                        special-needs children, in order to meet the 
                        goal of ensuring that all instructional staff 
                        have the subject matter knowledge, teaching 
                        knowledge, and teaching skills necessary to 
                        teach effectively in the content area or areas 
                        in which  they provide instruction, consistent 
with title II of the Higher Education Act of 1965.
                    ``(B) Limitations.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), a local educational agency may use 
                        not more than a total of 25 percent of the 
                        award received under this section for 
                        activities described in subparagraph (A)(ii) 
                        and (iii).
                            ``(ii) Ed-flex.--
                                    ``(I) Waiver.--A local educational 
                                agency located in a State designated as 
                                an Ed-Flex Partnership State under 
                                section 4(a)(1)(B) of the Education 
                                Flexibility Partnership Act of 1999, 
                                and in which 10 percent or more of 
                                teachers in elementary schools, as 
                                defined by section 8101(14), have not 
                                met applicable State and local 
                                certification requirements (including 
                                certification through State or local 
                                alternative routes), or if such 
                                requirements have been waived, may 
                                apply to the State educational agency 
                                for a waiver that would permit the 
                                agency to use more than 25 percent of 
                                the funds it receives under this 
                                section for activities described in 
                                subparagraph (A)(iii) for the purpose 
                                of helping teachers to become 
                                certified.
                                    ``(II) Approval.--If the State 
                                educational agency approves the local 
                                educational agency's application for a 
                                waiver under subclause (I), the 
local educational agency may use the funds subject to the waiver for 
activities described in subparagraph (A)(iii) that are needed to ensure 
that at least 90 percent of the teachers in elementary schools within 
the State are certified.
                    ``(C) Additional uses.--
                            ``(i) In general.--A local educational 
                        agency that has already reduced class size in 
                        the early grades to 18 or less children (or has 
                        already reduced class size to a State or local 
                        class size reduction goal that was in effect on 
                        the day before the enactment of the Department 
                        of Education Appropriations Act, 2000, if that 
                        State or local educational agency goal is 20 or 
                        fewer children) may use funds received under 
                        this section--
                                    ``(I) to make further class size 
                                reductions in grades kindergarten 
                                through 3;
                                    ``(II) to reduce class size in 
                                other grades; or
                                    ``(III) to carry out activities to 
                                improve teacher quality, including 
                                professional development.
                            ``(ii) Professional development.--If a 
                        local educational agency has already reduced 
                        class size in the early grades to 18 or fewer 
                        children and intends to use funds provided 
                        under this Part to carry out professional 
                        development activities, including activities to 
                        improve teacher quality, then the State shall 
                        make the award under section 2035 to the local 
                        educational agency.
    ``(c) Special Rule.--Notwithstanding subsection (b), if the award 
to a local educational agency under section 2035 is less than the 
starting salary for a new fully qualified teacher teaching in a school 
served by that agency, and such teacher is certified within the State 
(which may include certification through State or local alternative 
routes), has a bachelor's degree, and demonstrates the general 
knowledge, teaching skills, and subject matter knowledge required to 
teach in the content areas the teacher is assigned to provide 
instruction, then the agency may use grant funds under this part to--
            ``(1) help pay the salary of a full- or part-time teacher 
        hired to reduce class size, which may be in combination with 
        other Federal, State, or local funds; or
            ``(2) pay for activities described in subsection (b), which 
        may be related to teaching in smaller classes.

``SEC. 2038. PRIVATE SCHOOLS.

    ``If a local educational agency uses funds made available under 
this Part for professional development activities, the local 
educational agency shall ensure the equitable participation of private 
nonprofit elementary schools and secondary schools in such activities.

``SEC. 2039. TEACHER SALARIES AND BENEFITS.

    ``A local educational agency may use grant funds provided under 
this part--
            ``(1) except as provided in paragraph (2), to increase the 
        salaries of, or provide benefits (other than participation in 
        professional development and enrichment programs) to, teachers 
        only if such teachers were hired under this part; and
            ``(2) to pay the salaries of teachers hired under section 
        307 of the Department of Education Appropriations Act of 1999 
        who, not later than the beginning of the 2001-2002 school year, 
        are fully qualified, as defined in section 2002(1).

``SEC. 2040. STATE REPORT REQUIREMENTS.

    ``(a) Report on Activities.--A State educational agency receiving 
funds under this part shall submit a report to the Secretary providing 
information about the activities in the State assisted under this part.
    ``(b) Report to Parents.--Each State educational agency and local 
educational agency receiving funds under this part shall publicly issue 
a report to parents of children who attend schools assisted under this 
part describing--
            ``(1) the agency's progress in reducing class size;
            ``(2) the agency's progress in increasing the percentage of 
        classes in core academic areas that are taught by fully 
        qualified teachers who are certified within the State and 
        demonstrate competency in the content areas in which the 
        teachers provide instruction; and
            ``(3) the impact, if any, that hiring additional highly 
        qualified teachers and reducing class size has had on 
        increasing student academic achievement in schools served by 
        the agency.
    ``(c) Professional Qualifications Report.--Upon the request of a 
parent of a child attending a school receiving assistance under this 
part, such school shall provide the parent with information regarding 
the professional qualifications of their child's teacher.

``SEC. 2041. SUPPLEMENT NOT SUPPLANT.

    ``Each local educational agency receiving grant funds under this 
part shall use such funds only to supplement, and not to supplant, 
State and local funds that, in the absence of such funds, would 
otherwise be spent for activities under this part.

``SEC. 2042. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this part, there are authorized 
to be appropriated $1,400,000,000 for fiscal year 2001, and such sums 
as may be necessary for each of the 4 succeeding fiscal years.''.

TITLE III--LANGUAGE MINORITY STUDENTS AND INDIAN, NATIVE HAWAIIAN, AND 
                        ALASKA NATIVE EDUCATION

SEC. 301. LANGUAGE MINORITY STUDENTS.

    Title III (20 U.S.C. 6801 et seq.) is amended--
            (1) by amending the heading for title III to read as 
        follows:

 ``TITLE III--LANGUAGE MINORITY STUDENTS AND INDIAN, NATIVE HAWAIIAN, 
                     AND ALASKA NATIVE EDUCATION'';

            (2) by repealing section 3101 (20 U.S.C. 6801) and part A 
        (20 U.S.C. 6811 et seq.); and
            (3) by inserting after the heading for title III (as 
        amended by paragraph (1)) the following:

                ``Subtitle A--Language Minority Students

``SEC. 3101. FINDINGS, POLICY, AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1)(A) Educating limited English proficient students is 
        an urgent goal for many local educational agencies, but that 
        goal is not being achieved.
            ``(B) Each year, 640,000 limited English proficient 
        students are not served by any sort of program targeted to the 
        students' unique needs.
            ``(C) In 1998, only 15 percent of local educational 
        agencies that applied for funding under enhancement grants and 
        comprehensive school grants received such funding.
            ``(2)(A) The school dropout rate for Hispanic students, the 
        largest group of limited English proficient students, is 
        approximately 25 percent, and is approximately 46 percent for 
        Hispanic students born outside of the United States.
            ``(B) A United States Department of Education report 
        regarding school dropout rates states that language difficulty 
        `may be a barrier to participation in United States schools'.
            ``(C) Reading ability is a key predictor of graduation and 
        academic success.
            ``(3) Through fiscal year 1999, bilingual education 
        capacity and demonstration grants--
                    ``(A) have spread funding too broadly to make an 
                impact on language instruction educational programs 
                implemented by State educational agencies and local 
                educational agencies; and
                    ``(B) have lacked concrete performance measures.
            ``(4)(A) Since 1979, the number of limited English 
        proficient children in schools in the United States has 
        doubled, and demographic trends indicate the population of 
        limited English proficient children will continue to increase.
            ``(B) Language-minority Americans speak virtually all world 
        languages plus many that are indigenous to the United States.
            ``(C) The rich linguistic diversity language-minority 
        students bring to America's classrooms enhances the learning 
        environment for all students and should be valued for the 
        significant, positive impact such diversity has on the entire 
        school environment.
            ``(D) Parent and community participation in educational 
        language programs for limited English proficient students 
        contributes to program effectiveness.
            ``(E) The Federal Government, as reflected in title VI of 
        the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.) and 
        section 204(f) of the Equal Education Opportunities Act of 1974 
        (20 U.S.C. 1703), has a special and continuing obligation to 
        ensure that States and local educational agencies take 
        appropriate action to provide equal educational opportunities 
        to limited English proficient children and youth.
            ``(F) The Federal Government also, as exemplified by 
        programs authorized under this title, has a special and 
        continuing obligation to assist States and local educational 
        agencies to develop the capacity to provide programs of 
        instruction that offer limited English proficient children and 
        youth equal educational opportunities.
            ``(5) Limited English proficient children and youth face a 
        number of challenges in receiving an education that will enable 
        them to participate fully in American society, including--
                    ``(A) disproportionate attendance in high-poverty 
                schools, as demonstrated by the fact that, in 1994, 75 
                percent of limited English proficient students attended 
                schools in which at least half of all students were 
                eligible for free or reduced-price meals;
                    ``(B) the limited ability of parents of such 
                children and youth to participate fully in the 
                education of their children because of the parents' own 
                limited English proficiency;
                    ``(C) a shortage of teachers and other staff who 
                are professionally trained and qualified to serve such 
                children and youth; and
                    ``(D) lack of appropriate performance and 
                assessment standards that distinguish between language 
                and academic achievement so that there is equal 
                accountability on the part of State educational 
                agencies and local educational agencies for the 
achievement of limited English proficient students in academic content 
while acquiring English language skills.
    ``(b) Policy.--Congress declares it to be the policy of the United 
States that in order to ensure equal educational opportunity for all 
children and youth, and to promote educational excellence, the Federal 
Government should--
            ``(1) assist State educational agencies, local educational 
        agencies, and community-based organizations to build their 
        capacity to establish, implement, and sustain programs of 
        instruction and English language development for children and 
        youth of limited English proficiency;
            ``(2) hold State educational agencies and local educational 
        agencies accountable for increases in  English proficiency and 
core content knowledge among limited English proficient students; and
            ``(3) promote parental and community participation in 
        limited English proficiency programs.
    ``(c)  Purpose.--The purpose of this subtitle is to assist all 
limited English proficient students so that those students can meet or 
exceed the State proficient standard level for academic performance in 
core subject areas expected of all elementary school and secondary 
school students, and succeed in our Nation's society, by--
            ``(1) streamlining existing language instruction programs 
        into a performance-based grant for State and local educational 
        agencies to help limited English proficient students become 
        proficient in English;
            ``(2) increasing significantly the amount of Federal 
        assistance to local educational agencies serving such students 
        while requiring that State educational agencies and local 
        educational agencies demonstrate annual improvements in the 
        English proficiency of such students from the preceding fiscal 
        year; and
            ``(3) providing State educational agencies and local 
        educational agencies with the flexibility to implement 
        instructional programs based on scientific research that the 
        agencies believe to be the most effective for teaching English.

``SEC. 3102. DEFINITIONS.

    ``Except as otherwise provided, for purposes of this subtitle:
            ``(1) Limited english proficient student.--The term 
        `limited English proficient student' means an individual aged 5 
        through 17 enrolled in an elementary school or secondary 
        school--
                    ``(A) who--
                            ``(i) was not born in the United States or 
                        whose native language is a language other than 
                        English; or
                            ``(ii) is a Native American or Alaska 
                        Native, or who is a native resident of the 
                        outlying areas and comes from an environment 
                        where a language other than English has had a 
                        significant impact on such individual's level 
                        of English language proficiency; or
                            ``(iii) is migratory and whose native 
                        language is other than English, and who comes 
                        from an environment where a language other than 
                        English is dominant; and
                    ``(B) who has sufficient difficulty speaking, 
                reading, writing, or understanding the English 
                language, and whose difficulties may deny such 
                individual the opportunity to learn successfully in 
                classrooms where the language of instruction is English 
                or to participate fully in our society.
            ``(2) Language instruction educational program.--The term 
        `language instruction educational program' means an 
        instructional course in which a limited English proficient 
        student is placed for the purpose of becoming proficient in the 
        English language.
            ``(3) Specially qualified agency.--The term `specially 
        qualified agency' means a local educational agency in a State 
        that does not participate in a program under this subtitle for 
        a fiscal year.
            ``(4) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

``SEC. 3103. PROGRAM AUTHORIZED.

    ``(a) Grants Authorized.--The Secretary shall award grants, from 
allotments under subsection (b), to each State having a State plan 
approved under section 3105(c), to enable the State to help limited 
English proficient students become proficient in English.
    ``(b) Reservations and Allotments.--
            ``(1) Reservations.--From the amount appropriated under 
        section 3110 to carry out this subtitle for each fiscal year, 
        the Secretary shall reserve--
                    ``(A) \1/2\ of 1 percent of such amount for 
                payments to the Secretary of the Interior for 
                activities approved by the Secretary, consistent with 
                this subtitle, in schools operated or supported by the 
                Bureau of Indian Affairs, on the basis of their 
                respective needs for assistance under this subtitle; 
                and
                    ``(B) \1/2\ of 1 percent of such amount for 
                payments to outlying areas, to be allotted in 
                accordance with their respective needs as determined by 
                the Secretary, for activities, approved by the 
                Secretary, consistent with this subtitle.
            ``(2) State allotments.--From the amount appropriated under 
        section 3110 for any of the fiscal years 2001 through 2005 that 
        remains after making reservations under paragraph (1), the 
        Secretary shall allot to each State having a State plan 
        approved under section 3105(c) an amount that bears the same 
        relationship to the remainder as the number of limited English 
        proficient students in the State bears to the number of limited 
        English proficient students in all States.
            ``(3) Data.--For the purpose of determining the number of 
        limited English proficient students in a State and in all 
        States for each fiscal year, the Secretary shall use data that 
        will yield the most accurate, up-to-date, numbers of such 
        students, including--
                    ``(A) data available from the Bureau of the Census; 
                or
                    ``(B) data submitted to the Secretary by the States 
                to determine the number of limited English proficient 
                students in a State and in all States.
            ``(4) Hold-harmless amounts.--For fiscal year 2001, and for 
        each of the 4 succeeding fiscal years, notwithstanding 
        paragraph (2), the total amount allotted to each State under 
        this subsection shall be not less than 100 percent of the total 
        amount the State was allotted under parts A and B of title VII 
        (as such title was in effect on the day preceding the date of 
        enactment of the Education Reform Act).
    ``(c) Direct Awards to Specially Qualified Agencies.--
            ``(1) Nonparticipating state.--If a State educational 
        agency for a fiscal year elects not to participate in a program 
        under this subtitle, or does not have an application approved 
        under section 3105(c), a specially qualified agency in such 
        State desiring a grant under this subtitle for the fiscal year 
        shall apply directly to the Secretary to receive a grant under 
        this subsection.
            ``(2) Direct awards.--The Secretary may award, on a 
        competitive basis, the amount the State educational agency is 
        eligible to receive under subsection (b)(2) directly to 
        specially qualified agencies in the State desiring a grant 
        under paragraph (1) and having an application approved under 
        section 3105(c).
            ``(3) Administrative funds.--A specially qualified agency 
        that receives a direct grant under this subsection may use not 
        more than 1 percent of the grant funds for the administrative 
        costs of carrying out this subtitle in the first year the 
        agency receives a grant under this subsection and 0.5 percent 
        for such costs in the second and each succeeding such year.

``SEC. 3104. WITHIN-STATE ALLOCATIONS.

    ``(a) Grant Awards.--Each State educational agency receiving a 
grant under section 3103(a) shall use 95 percent of the grant funds to 
award subgrants, from allotments under subsection (b), to local 
educational agencies in the State to carry out the activities described 
in section 3107.
    ``(b) Allotment Formula.--Each State educational agency receiving a 
grant under this subtitle shall award a grant to each local educational 
agency in the State having a plan approved under section 3106 in an 
amount that bears the same relationship to the amount of funds 
appropriated under section 3110 as the school-age population of limited 
English proficient students in schools served by the local educational 
agency bears to the school-age population of limited English proficient 
students in schools served by all local educational agencies in the 
State.
    ``(c) Reservations.--
            ``(1) State activities.--Each State educational agency 
        receiving a grant under this subtitle may reserve not more than 
        5 percent of the grant funds to carry out activities described 
        in the State plan submitted under section 3105.
            ``(2) Administrative expenses.--From the amount reserved 
        under paragraph (1), a State educational agency may use not 
        more than 2 percent for the planning costs and administrative 
        costs of carrying out the activities described in the State 
        plan and providing grants to local educational agencies.

``SEC. 3105. STATE AND SPECIALLY QUALIFIED AGENCY PLAN.

    ``(a) Plan Required.--Each State educational agency and specially 
qualified agency desiring a grant under this subtitle shall submit a 
plan to the Secretary at such time, in such manner and accompanied by 
such information as the Secretary may require.
    ``(b) Contents.--Each State plan submitted under subsection (a) 
shall--
            ``(1) describe how the State or specially qualified agency 
        will--
                    ``(A) establish standards and benchmarks for 
                English language development that are aligned with the 
                State content and student performance standards 
                described in section 1111;
                    ``(B) develop high-quality, annual assessments to 
                measure English language proficiency, including 
                proficiency in the 4 recognized domains of speaking, 
                listening, reading, and writing; and
                    ``(C) develop annual performance objectives, based 
                on the English language development standards described 
                in subparagraph (A), to raise the level of English 
                proficiency of each limited English proficient student;
            ``(2) contain an assurance that the State educational 
        agency or specially qualified agency consulted with local 
        educational agencies, education-related community groups and 
        nonprofit organizations, parents, teachers, school 
        administrators, and English language instruction specialists, 
        in the setting of the performance objectives;
            ``(3) describe how--
                    ``(A) in the case of a State educational agency, 
                the State educational agency will hold local 
                educational agencies and elementary schools and 
                secondary schools accountable for--
                            ``(i) meeting the English proficiency 
                        performance objectives described in section 
                        3109; and
                            ``(ii) making adequate yearly progress with 
                        limited English proficient students in the 
                        subject areas of core content knowledge as 
                        described in section 1111; and
                    ``(B) in the case of a specially qualified agency, 
                the agency will hold elementary schools and secondary 
                schools accountable for meeting the English proficiency 
                performance objectives described in section 3109, and 
                making adequate yearly progress, including annual 
                numerical goals for improving the performance of 
                limited English proficient students on performance 
                standards described in section 1111(b)(1)(D)(ii);
            ``(4) describe the activities for which assistance is 
        sought, and how the activities will increase the speed and 
effectiveness with which students learn English;
            ``(5) in the case of a State educational agency, describe 
        how local educational agencies in the State will be given the 
        flexibility to teach English--
                    ``(A) using language instruction curriculum that is 
                scientifically research based; and
                    ``(B) in the manner the local educational agencies 
                determine to be the most effective; and
            ``(6) describe how--
                    ``(A) in the case of a State educational agency, 
                the State educational agency will provide technical 
                assistance to local educational  agencies and 
elementary schools and secondary schools for the purposes of 
identifying and implementing English language instruction educational 
programs and curricula that are scientifically research based; and
                    ``(B) in the case of a specially qualified agency, 
                the specially qualified agency will provide technical 
                assistance to elementary schools and secondary schools 
                served by the specially qualified agency for the 
                purposes of identifying and implementing English 
                language instruction educational programs and curricula 
                that are scientifically research based.
    ``(c) Approval.--The Secretary, using a peer review process, shall 
approve a State plan or a specially qualified agency plan if the plan 
meets the requirements of this section, and holds reasonable promise of 
achieving the purpose described in section 3101(c).
    ``(d) Duration of the Plan.--
            ``(1) In general.--Each State plan or specially qualified 
        agency plan shall--
                    ``(A) remain in effect for the duration of the 
                State's or specially qualified agency's participation 
                under this subtitle; and
                    ``(B) be periodically reviewed and revised by the 
                State or specially qualified agency, as necessary, to 
                reflect changes in the State's or specially qualified 
                agency's strategies and programs under this subtitle.
            ``(2) Additional information.--If the State educational 
        agency or specially qualified agency makes significant changes 
        in its plan, such as the adoption of new performance objectives 
        or assessment measures, the State educational agency or 
        specially qualified agency shall submit such information to the 
        Secretary.
    ``(e) Consolidated Plan.--A State plan submitted under subsection 
(a) may be submitted as part of a consolidated plan under section 8302.
    ``(f) Secretary Assistance.--Pursuant to section 7004(a)(3), the 
Secretary shall provide assistance, if required, in the development of 
English language development standards and English language proficiency 
assessments.

``SEC. 3106. LOCAL PLANS.

    ``(a) Plan Required.--Each local educational agency desiring a 
grant from the State educational agency under section 3104(a) shall 
submit a plan to the State educational agency at such time, in such 
manner, and accompanied by such information as the State educational 
agency may require.
    ``(b) Contents.--Each local educational agency plan submitted under 
subsection (a) shall--
            ``(1) describe how the local educational agency shall use 
        the grant funds to meet the English proficiency performance 
        objective described in section 3109;
            ``(2) describe how the local educational agency will hold 
        elementary schools and secondary schools accountable for 
        meeting the performance objectives;
            ``(3) contain an assurance that the local educational 
        agency consulted with elementary schools and secondary schools, 
        education-related community groups and nonprofit organizations, 
        institutions of higher education, parents, language instruction 
        teachers, school administrators, and English language 
        instruction specialists, in developing the local educational 
        agency plan; and
            ``(4) contain an assurance that the local educational 
        agency will use the disaggregated results of the student 
        assessments required under section 1111(b)(4), and other 
        measures or indicators available to the agency, to review 
        annually the progress of each school served by the agency under 
        this part and under title I to determine whether the schools 
        are making the annual progress necessary to ensure that limited 
        English proficient students attending the schools will meet the 
        proficient State content and student performance standard 
        within 10 years of enactment of the Education Reform Act.

``SEC. 3107. USES OF FUNDS.

    ``(a) Administrative Expenses.--Each local educational agency 
receiving a grant under section 3104 may use not more than 1 percent of 
the grant funds for any fiscal year for the cost of administering this 
subtitle.
    ``(b) Activities.--Each local educational agency receiving grant 
funds under section 3104 shall use the grant funds that are not used 
under subsection (a)--
            ``(1) to increase limited English proficient students' 
        proficiency in English by providing high-quality English 
        language instruction programs, such as bilingual education 
        programs and transitional education or English immersion 
        education programs, that are--
                    ``(A) tied to scientifically based research 
                demonstrating the effectiveness of the programs in 
                increasing English proficiency; and
                    ``(B) approved by the State educational agency;
            ``(2) to provide high-quality professional development 
        activities for teachers of limited English proficient students 
        that are--
                    ``(A) designed to enhance the ability of such 
                teachers to understand and use curricula, assessment 
                measures, and instructional strategies for limited 
                English proficient students;
                    ``(B) tied to scientifically based research 
                demonstrating the effectiveness of such programs in 
                increasing students' English proficiency or 
                substantially increasing the knowledge and teaching 
                skills of such teachers; and
                    ``(C) of sufficient intensity and duration (such as 
                not to include 1-day or short-term workshops and 
                conferences) to have a positive and lasting impact on 
                the teacher's performance in the classroom, except that 
                this paragraph shall not apply to an activity that is 1 
                component of a long-term, comprehensive professional 
                development plan established by a teacher and the 
                teacher's supervisor based upon an assessment of the 
                teacher's and supervisor's needs, the student's needs, 
                and the needs of the local educational agency;
            ``(3) to identify, acquire, and upgrade curricula, 
        instructional materials, educational software, and assessment 
        procedures; and
            ``(4) to provide parent and community participation 
        programs to improve English language instruction programs for 
        limited English proficient students.

``SEC. 3108. PROGRAM REQUIREMENTS.

    ``(a) Prohibition.--In carrying out this subtitle the Secretary 
shall neither mandate nor preclude a particular curricular or 
pedagogical approach to educating limited English proficient students.
    ``(b) Teacher English Fluency.--Each local educational agency 
receiving grant funds under section 3104 shall certify to the State 
educational agency that all teachers in any language instruction 
program for limited English proficient students funded under this 
subtitle are fluent in English.

``SEC. 3109. PERFORMANCE OBJECTIVES.

    ``(a) In General.--Each State educational agency or specifically 
qualified agency receiving a grant under this subtitle shall develop 
annual numerical performance objectives with respect to helping limited 
English proficient students become proficient in English. The 
objectives shall include incremental percentage increases for each 
fiscal  year a State receives a grant under this subtitle, including 
increases in the number of limited English proficient students 
demonstrating an increase in performance on annual assessments in 
reading, writing, speaking, and listening comprehension, from the 
preceding fiscal year.
    ``(b) Accountability.--Each State educational agency or specially 
qualified agency receiving a grant under this subtitle shall be held 
accountable for meeting the annual numerical performance objectives 
under this subtitle and the adequate yearly progress levels for limited 
English proficient students under section 1111(b)(2)(B) (iv) and (vii). 
Any State educational agency or specially qualified agency that fails 
to meet the annual performance objectives shall be subject to sanctions 
under section 7001.

``SEC. 3110. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subtitle $620,000,000 for fiscal year 2002, and such sums as may be 
necessary for each of the 4 succeeding fiscal years.

``SEC. 3111. REGULATIONS AND NOTIFICATION.

    ``(a) Regulation Rule.--In developing regulations under this 
subtitle, the Secretary shall consult with State educational agencies, 
local educational agencies, organizations representing limited English 
proficient individuals, and organizations representing teachers and 
other personnel involved in the education of limited English proficient 
students.
    ``(b) Parental Notification.--
            ``(1) In general.--Each local educational agency shall 
        notify parents of a student participating in a language 
        instruction educational program under this subtitle of--
                    ``(A) the student's level of English proficiency, 
                how such level was assessed, the status of the 
                student's academic achievement, and the implications of 
                the student's educational strengths and needs for age- 
                and grade-appropriate academic attainment, promotion, 
                and graduation;
                    ``(B) what programs are available to meet the 
                student's educational strengths and needs, and how such 
                programs differ in content and instructional goals from 
                other language instruction educational programs and, in 
                the case of a student with a disability, how such 
                program meets the objectives of the individualized 
                education program of such a student; and
                    ``(C) the instructional goals of the language 
                instruction educational program, and how the program 
                will specifically help the limited English proficient 
                student learn English and meet age-appropriate 
                standards for grade promotion and graduation, 
                including--
                            ``(i) the characteristics, benefits, and 
                        past academic results of the language 
                        instruction educational program and of 
                        instructional alternatives; and
                            ``(ii) the reasons the student was 
                        identified as being in need of a language 
                        instruction educational program.
            ``(2) Option to decline.--
                    ``(A) In general.--Each parent described in 
                paragraph (1) shall also be informed that the parent 
                has the option of declining the enrollment of their 
                children or youth in a language instruction educational 
                program, and shall be given an opportunity to decline 
                such enrollment if the parent so chooses.
                    ``(B) Obligations.--A local educational agency 
                shall not be relieved of any of the agency's 
                obligations under title VI of the Civil Rights Act of 
                1964 (42 U.S.C. 2000d et seq.) if a parent chooses not 
                to enroll their child in a language instruction 
                educational program.
            ``(3) Receipt of information.--A parent described in 
        paragraph (1) shall receive, in a manner and form 
        understandable to the parent including, if necessary and to the 
        extent feasible, in the native language of the parent, the 
        information required by this subsection. At a minimum, the 
        parent shall receive--
                    ``(A) timely information about projects funded 
                under this subtitle; and
                    ``(B) if the parent of a participating child so 
                desires, notice of opportunities for regular meetings 
                for the purpose of formulating and responding to 
                recommendations from parents of children assisted under 
                this subtitle.
            ``(4) Special rule.--A student shall not be admitted to, or 
        excluded from, any Federally assisted language instruction 
        educational program solely on the basis of a surname or 
        language-minority status.
            ``(5) Limitations on conditions.--Nothing in this subtitle 
        shall be construed to authorize an officer or employee of the 
        Federal Government to mandate, direct, or control a State's, 
        local educational agency's, elementary school's, or secondary 
        school's specific challenging English language development 
        standards or assessments, curricula, or program of instruction, 
        as a condition of eligibility to receive grant funds under this 
        subtitle.''.

SEC. 302. EMERGENCY IMMIGRANT EDUCATION PROGRAM.

    (a) Repeals, Transfers, and Redesignations.--Title III (20 U.S.C. 
6801 et seq.) is further amended--
            (1) by repealing part B (20 U.S.C. 6891 et seq.), part C 
        (20 U.S.C. 6921 et seq.), part D (20 U.S.C. 6951 et seq.), and 
        part E (20 U.S.C. 6971 et seq.);
            (2) by transferring part C of title VII (20 U.S.C. 7541 et 
        seq.) to title III and inserting such part after subtitle A (as 
        inserted by section 301(3));
            (3) by redesignating the heading for part C of title VII 
        (as transferred by paragraph (2)) as the heading for subtitle 
        B, and redesignating accordingly the references to such part as 
        the references to such subtitle; and
            (4) by redesignating section 7301 through 7309 (20 U.S.C. 
        7541, 7549) (as transferred by paragraph (2)) as sections 3201 
        through 3209, respectively, and redesignating accordingly the 
        references to such sections.
    (b) Amendments.--Subtitle B of title III (as so transferred and 
redesignated) is amended--
            (1) in section 3205(a)(2) (as redesignated by subsection 
        (a)(4)), by striking ``the Goals 2000: Educate America Act,''; 
        and
            (2) in section 3209 (as redesignated by subsection (a)(4)), 
        by striking ``$100,000,000'' and all that follows through 
        ``necessary for'' and inserting ``such sums as may be necessary 
        for fiscal year 2002 and''.

SEC. 303. INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION.

    (a) Repeals, Transfers, and Redesignations.--Title III (20 U.S.C 
6801 et seq.) is further amended--
            (1) by transferring title IX (20 U.S.C. 7801 et seq.) to 
        title III and inserting such title after subtitle B (as 
        inserted by section 302(a)(2));
            (2) by redesignating the heading for title IX (as 
        transferred by paragraph (1)) as the heading for subtitle C, 
        and redesignating accordingly the references to such title as 
        the references to such subtitle;
            (3) by redesignating sections 9101 and 9102 (20 U.S.C. 
        7801, 7802) (as transferred by paragraph (1)) as sections 3301 
        and 3302, respectively, and redesignating accordingly the 
        references to such sections;
            (4) by redesignating sections 9111 through 9118 (20 U.S.C. 
        7811, 7818) (as transferred by paragraph (1)) as sections 3311 
        through 3318, respectively, and redesignating accordingly the 
        references to such sections;
            (5) by redesignating sections 9121 through 9125 (20 U.S.C. 
        7831, 7835) (as transferred by paragraph (1)) as sections 3321 
        through 3325, and redesignating accordingly the references to 
        such section;
            (6) by redesignating sections 9131 and 9141 (20 U.S.C. 
        7851, 7861) (as transferred by paragraph (1)) as sections 3331 
        and 3341, respectively, and redesignating accordingly the 
        references to such sections;
            (7) by redesignating sections 9151 through 9154 (20 U.S.C. 
        7871, 7874) (as transferred by paragraph (1)) as sections 3351 
        through 3354, respectively, and redesignating accordingly the 
        references to such sections;
            (8) by redesignating sections 9161 and 9162 (20 U.S.C. 
        7881, 7882) (as transferred by paragraph (1)) as sections 3361 
        and 3362, respectively, and redesignating accordingly the 
        references to such sections;
            (9) by redesignating sections 9201 through 9212 (20 U.S.C. 
        7901, 7912) (as transferred by paragraph (1)) as sections 3401 
        through 3412, respectively, and redesignating accordingly the 
        references to such sections; and
            (10) by redesignating sections 9301 through 9308 (20 U.S.C. 
        7931, 7938) (as transferred by paragraph (1)) as sections 3501 
        through 3508, and redesignating accordingly the references to 
        such sections.
    (b) Amendments.--Subtitle C of title III (as so transferred and 
redesignated) is amended--
            (1) by amending section 3314(b)(2)(A) (as redesignated by 
        subsection (a)(4)) to read as follows:
            ``(2)(A) is consistent with, and promotes the goals in, the 
        State and local improvement plans under sections 1111 and 
        1112'';
            (2) by amending section 3325(e) (as redesignated by 
        subsection (a)(5)) to read as follows:
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this subpart 
for fiscal year 2001 and each of the 4 succeeding years.'';
            (3) in section 3361(4)(E) (as redesignated by subsection 
        (a)(8)), by striking ``the Act entitled the `Improving 
        America's Schools Act of 1994''' and inserting ``the Education 
        Reform Act'';
            (4) by amending section 3362 (as redesignated by subsection 
        (a)(8)) to read as follows:

``SEC. 3262. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out subparts 1 through 5 of this 
part, there are authorized to be appropriated to the Department of 
Education such sums as may be necessary for fiscal year 2002 and each 
of the 4 succeeding years.'';
            (5) in section 3404 (as redesignated by subsection 
        (a)(9))--
                    (A) in subsection (i), by striking ``Improving 
                America's Schools Act of 1994'' and inserting 
                ``Education Reform Act''; and
                    (B) in subsection (j), by striking ``$500,000 for 
                fiscal year 1995, and such sums as may be necessary'' 
                and inserting ``such sums as may be necessary for 
                fiscal year 2002, and'';
            (6) in section 3405(c) (as redesignated by subsection 
        (a)(9)), by striking ``$6,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and'';
            (7) in section 3406(e) (as redesignated by subsection 
        (a)(9)), by striking ``$2,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and'';
            (8) in section 3407(e) (as redesignated by subsection 
        (a)(9)), by striking ``$1,500,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and'';
            (9) in section 3408(c) (as redesignated by subsection 
        (a)(9)), by striking ``$2,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and'';
            (10) in section 3409(d) (as redesignated by subsection 
        (a)(9)), by striking ``$2,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and'';
            (11) in section 3410(d) (as redesignated by subsection 
        (a)(9)), by striking ``$1,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and'';
            (12) in section 3504(c) (as redesignated by subsection 
        (a)(10)), by striking ``$5,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and'';
            (13) in section 3505(e) (as redesignated by subsection 
        (a)(10)), by striking ``$2,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and''; and
            (14) in section 3506(d) (as redesignated by subsection 
        (a)(10)), by striking ``$1,000,000 for fiscal year 1995, and 
        such sums as may be necessary'' and inserting ``such sums as 
        may be necessary for fiscal year 2002, and''.

                     TITLE IV--PUBLIC SCHOOL CHOICE

SEC. 401. PUBLIC SCHOOL CHOICE.

    (a) Magnet Schools Amendments.--Section 5113(a) (20 U.S.C. 7213(a)) 
is amended--
            (1) by striking ``$120,000,000'' and inserting 
        ``$130,000,000''; and
            (2) by striking ``1995'' and inserting ``2002''.
    (b) Charter Schools Amendments.--
            (1) Parallel accountability.--Section 10302 (20 U.S.C. 
        8062) is amended by adding at the end the following:
    ``(g) Parallel Accountability.--Each State educational agency 
receiving a grant under this part shall hold charter schools assisted 
under this part accountable for adequate yearly progress for improving 
student performance under title I and as established in the school's 
charter, including the use of the same standards and assessments as 
established under title I.''.
            (2) Authorization of appropriations.--Section 10311 (20 
        U.S.C. 8067) is amended.--
                    (A) by striking ``$100,000,000'' and inserting 
                ``$200,000,000''; and
                    (B) by striking ``1999'' and inserting ``2001''.
    (c) Repeals, Transfers and Redesignations.--The Act (20 U.S.C. 6301 
et seq.) is amended--
            (1) by amending the heading for title IV (20 U.S.C. 7101 et 
        seq.) to read as follows:

                  ``TITLE IV--PUBLIC SCHOOL CHOICE'';

            (2) by amending section 4001 to read as follows:

``SEC. 4001. FINDINGS, POLICY, AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1)(A) Charter schools and magnet schools are an integral 
        part of the educational system in the United States.
            ``(1)(B) Thirty-four States and the District of Columbia 
        have established charter schools.
            ``(1)(C) Magnet schools have been established throughout 
        the United States.
            ``(1)(D) A Department of Education evaluation of charter 
        schools shows that 59 percent of charter schools reported that 
        lack of start-up funds posed a difficult or very difficult 
        challenge for the school.
            ``(2) State educational agencies and local educational 
        agencies should hold all schools accountable for the improved 
        performance of all students, including students attending 
        charter schools and magnet schools, under State standards and 
        student assessment measures.
            ``(3) School report cards constitute the key informational 
        component used by parents for effective public school choice.
    ``(b) Policy.--Congress declares it to be the policy of the United 
States--
            ``(1) to support and stimulate improved public school 
        performance through increased public elementary school and 
        secondary school competition and increased Federal financial 
        assistance; and
            ``(2) to provide parents with more choices among public 
        school options.
    ``(c) Purposes.--The purposes of this title are as follows:
            ``(1) To consolidate public school choice programs into 1 
        title.
            ``(2) To increase Federal assistance for magnet schools and 
        charter schools.
            ``(3) To help parents make better and more informed choices 
        by--
                    ``(A) providing continued support and financial 
                assistance for magnet schools;
                    ``(B) providing continued support and expansion of 
                charter schools and charter school districts; and
                    ``(C) providing financial assistance to States and 
                local educational agencies for the development of local 
                educational agency and school report cards.'';
            (3) by repealing sections 4002 through 4004 (20 U.S.C. 
        7102, 7104), and part A (20 U.S.C. 7111 et seq.), of title IV;
            (4) by transferring part A of title V (20 U.S.C. 7201 et 
        seq.) (as amended by subsection (a)) to title IV and inserting 
        such part A after section 4001;
            (5) by redesignating sections 5101 through 5113 (20 U.S.C. 
        7201, 7213) (as transferred by paragraph (4)) as sections 4101 
        through 4113, respectively, and by redesignating accordingly 
        the references to such sections in part A of title IV (as so 
        transferred);
            (6) by transferring part C of title X (20 U.S.C. 8061 et 
        seq.) (as amended by subsection (b)) to title IV and inserting 
        such part C after part A of title IV (as transferred by 
        paragraph (4));
            (7) by redesignating part C of title IV (as transferred by 
        paragraph (6)) as part B of title IV; and
            (8) by redesignating sections 10301 through 10311 (20 
        U.S.C. 8061, 8067) (as transferred by paragraph (6)) as 
        sections 4201 through 4211, respectively, and by redesignating 
        accordingly the references to such sections in such part B of 
        title IV (as so transferred and redesignated).

SEC. 402. DEVELOPMENT OF PUBLIC SCHOOL CHOICE PROGRAMS; REPORT CARDS.

    Title IV (20 U.S.C. 7101 et seq.) is further amended by adding at 
the end the following:

         ``PART C--DEVELOPMENT OF PUBLIC SCHOOL CHOICE PROGRAMS

``SEC. 4301. GRANTS AUTHORIZED.

    ``(a) In General.--From amounts made available to carry out this 
part for a fiscal year under section 4305, and not reserved under 
subsection (b), the Secretary is authorized to award grants, on a 
competitive basis, to local educational agencies to enable the local 
educational agencies to develop local public school choice programs.
    ``(b) Reservation for Evaluation, Technical Assistance, and 
Dissemination.--From the amount appropriated under section 4305 for any 
fiscal year, the Secretary may reserve not more than 5 percent to carry 
out evaluations under subsection (c), to provide technical assistance, 
and to disseminate information.
    ``(c) Evaluations.--The Secretary may use funds reserved under 
subsection (b) to carry out 1 or more evaluations of programs assisted 
under this part, which shall, at a minimum, address--
            ``(1) how, and the extent to which, the programs supported 
        with funds under this part promote educational equity and 
        excellence; and
            ``(2) the extent to which public schools of choice 
        supported with funds under this part are--
                    ``(A) held accountable to the public;
                    ``(B) effective in improving public education; and
                    ``(C) open and accessible to all students.
    ``(b) Duration.--Grants under this part may be awarded for a period 
not to exceed 3 years.

``SEC. 4302. DEFINITION OF HIGH-POVERTY LOCAL EDUCATIONAL AGENCY.

    ``In this part, the term `high-poverty local educational agency' 
means a local educational agency in which the percentage of children, 
ages 5 to 17, from families with incomes below the poverty line (as 
defined by the Office of Management and Budget and revised annually in 
accordance with section 673(2) of the Community Services Block Grant 
Act (42 U.S.C. 9902(2))) applicable to a family of the size involved 
for the most recent fiscal year for which satisfactory data are 
available is 20 percent or greater.

``SEC. 4303. USES OF FUNDS.

    ``(a) In General.--
            ``(1) Public school choice.--Funds under this part may be 
        used to demonstrate, develop, implement, evaluate, and 
        disseminate information on innovative approaches to promote 
        public school choice, including the design and development of 
        new public school choice options, the development of new 
        strategies for overcoming barriers to effective public school 
choice, and the design and development of public school choice systems 
that promote high standards for all students and the continuous 
improvement of all public schools.
            ``(2) Innovative approaches.--Such approaches at the 
        school, local educational agency, and State levels may 
        include--
                    ``(A) inter-district approaches to public school 
                choice, including approaches that increase equal access 
                to high-quality educational programs and diversity in 
                schools;
                    ``(B) public elementary and secondary programs that 
                involve partnerships with institutions of higher 
                education and that are located on the campuses of those 
                institutions;
                    ``(C) programs that allow students in public 
                secondary schools to enroll in postsecondary courses 
                and to receive both secondary and postsecondary 
                academic credit;
                    ``(D) worksite satellite schools, in which State or 
                local educational agencies form partnerships with 
                public or private employers, to create public schools 
                at parents' places of employment; and
                    ``(E) approaches to school desegregation that 
                provide students and parents choice through strategies 
                other than magnet schools.
    ``(b) Limitations.--Funds under this part--
            ``(1) shall supplement, and not supplant, non-Federal funds 
        expended for existing public school choice programs; and
            ``(2) may be used for providing transportation services or 
        costs, except that not more than 10 percent of the funds 
        received under this part shall be used by the local educational 
        agency to provide such services or costs.

``SEC. 4304. GRANT APPLICATION; PRIORITIES.

    ``(a) Application Required.--A State or local educational agency 
desiring to receive a grant under this part shall submit an application 
to the Secretary.
    ``(b) Application Contents.--Each application shall include--
            ``(1) a description of the program for which funds are 
        sought and the goals for such program;
            ``(2) a description of how the program funded under this 
        part will be coordinated with, and will complement and enhance, 
        programs under other related Federal and non-Federal projects;
            ``(3) if the program includes partners, the name of each 
        partner and a description of the partner's responsibilities;
            ``(4) a description of the policies and procedures the 
        applicant will use to ensure--
                    ``(A) its accountability for results, including its 
                goals and performance indicators; and
                    ``(B) that the program is open and accessible to, 
                and will promote high academic standards for, all 
                students; and
            ``(5) such other information as the Secretary may require.
    ``(c) Priorities.--
            ``(1) High-poverty agencies.--The Secretary shall give a 
        priority to applications for projects that would serve high-
        poverty local educational agencies.
            ``(2) Partnerships.--The Secretary may give a priority to 
        applications demonstrating that the applicant will carry out 
        the applicant's project in partnership with 1 or more public 
        and private agencies, organizations, and institutions, 
        including institutions of higher education and public and 
        private employers.

``SEC. 4305. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this part 
$100,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 4 succeeding fiscal years.

                         ``PART D--REPORT CARDS

``SEC. 4401. REPORT CARDS.

    ``(a) Grants Authorized.--The Secretary shall award a grant, from 
allotments under subsection (b), to each State having a State report 
card meeting the requirements described in subsection (g), to enable 
the State annually to publish report cards for each elementary school 
and secondary school that receives funding under this Act and is served 
by the State.
    ``(b) Reservations and Allotments.--
            ``(1) Reservations.--From the amount appropriated under 
        subsection (e) to carry out this part for each fiscal year, the 
        Secretary shall reserve--
                    ``(A) \1/2\ of 1 percent of such amount for 
                payments to the Secretary of the Interior for 
                activities approved by the Secretary, consistent with 
                this part, in schools operated or supported by the 
                Bureau of Indian Affairs, on the basis of their 
                respective needs for assistance under this part; and
                    ``(B) \1/2\ of 1 percent of such amount for 
                payments to outlying areas, to be allotted in 
                accordance with their respective needs for assistance 
                under this part, as determined by the Secretary, for 
                activities, approved by the Secretary, consistent with 
                this part.
            ``(2) State allotments.--From the amount appropriated under 
        subsection (e) for a fiscal year and remaining after the 
        Secretary makes reservations under paragraph (1), the Secretary 
        shall allot to each State having a State report card meeting 
        the requirements described in subsection (g) an amount that 
        bears the same relationship to the remainder as the number of 
        public school students enrolled in elementary schools and 
        secondary schools in the State bears to the number of such 
        students so enrolled in all States.
    ``(c) Within-State Allocations.--Each State educational agency 
receiving a grant under subsection (a) shall allocate the grant funds 
that remain after making the reservation described in subsection (d) to 
each local educational agency in the State in an amount that bears the 
same relationship to the remainder as the number of public school 
students enrolled in elementary schools and secondary schools served by 
the local educational agency bears to the number of such students so 
enrolled in all local educational agencies within the State.
    ``(d) State Reservation of Funds.--Each State educational agency 
receiving a grant under subsection (a) may reserve--
            ``(1) not more than 10 percent of the grant funds to carry 
        out activities described under subsections (f) and (g), and 
        (i)(1) for fiscal year 2002; and
            ``(2) not more than 5 percent of the grant funds to carry 
        out activities described under subsections (f) and (g), and 
        (i)(1) for fiscal year 2002 and each of the 3 succeeding fiscal 
        years.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this part $5,000,000 for fiscal year 2002 and 
such sums as may be necessary for each of the 4 succeeding fiscal 
years.
    ``(f) Annual State Report.--
            ``(1) Reports required.--
                    ``(A) In general.--Except as provided in paragraph 
                (3), not later than the beginning of the 2002-2003 
                school year, a State that receives assistance under 
                this Act shall prepare and disseminate an annual report 
                on all elementary schools and secondary schools within 
                the State that receive funds under part A of title I or 
                part A of title II.
                    ``(B) State report cards on education.--In the case 
                of a State that publishes State report cards on 
                education, the State shall include in such report cards 
                the information described in subsection (g).
                    ``(C) Report cards on all public schools.--In the 
                case of a State that publishes a report card on all 
                public elementary schools and secondary schools in the 
                State, the State shall include, at a minimum, the 
                information described in subsection (g) for all schools 
                that receive funds under part A of title I or part A of 
                title II.
            ``(2) Implementation; requirements.--
                    ``(A) Implementation.--The State shall ensure 
                implementation at all levels of the report cards 
                described in paragraph (1).
                    ``(B) Requirements.--Annual report cards under this 
                part shall be--
                            ``(i) concise; and
                            ``(ii) presented in a format and manner 
                        that parents can understand including, to the 
                        extent practicable, in a language the parents 
                        can understand.
            ``(3) Publication through other means.--In the event that 
        the State provides no such report card, the State shall, not 
        later than the beginning of the 2001-2002 school year, publicly 
        report the information described in subsection (g) for all 
        schools that receive funds under part A of title I or part A of 
        title II through other public means.
    ``(g) Content of Annual State Reports.--
            ``(1) Required information.--Each State described in 
        subsection (f)(1)(A), at a minimum, shall include in the annual 
        State report information on each local educational agency and 
        school that receives funds under part A of title I or part A of 
        title II within the State, including information regarding--
                    ``(A) student performance on statewide assessments 
                for the year for which the annual State report is made, 
                and the preceding year, in at least English language 
                arts and mathematics, including--
                            ``(i) a comparison of the proportions of 
                        students who performed at the basic, 
                        proficient, and advanced levels in each subject 
                        area, for each grade level at which assessments 
                        are required under title I, with proportions in 
                        each of the same 4 levels at the same grade 
                        levels in the previous school year;
                            ``(ii) a statement on the 3-year trend in 
                        the percentage of students performing at the 
                        basic, proficient, and advanced levels in each 
                        subject area, for each grade level for which 
                        assessments are required under title I; and
                            ``(iii) a statement of the percentage of 
                        students not tested and a listing of categories 
                        of the reasons why such students were not 
                        tested;
                    ``(B) student retention rates in grades, the number 
                of students completing advanced placement courses, and 
                4-year graduation rates;
                    ``(C) the professional qualifications of teachers 
                in the aggregate, including the percentage of teachers 
                teaching with emergency or provisional credentials, the 
                percentage of class sections not taught by fully 
                qualified teachers, and the percentage of teachers who 
                are fully qualified; and
                    ``(D) the professional qualifications of 
                paraprofessionals in the aggregate, the number of 
                paraprofessionals in the aggregate, and the ratio of 
                paraprofessionals to teachers in the classroom.
            ``(2) Student data.--Student data in each report shall 
        contain disaggregated results for the following categories:
                    ``(A) Racial and ethnic groups.
                    ``(B) Gender.
                    ``(C) Economically disadvantaged students, as 
                compared to students who are not economically 
                disadvantaged.
                    ``(D) Students with limited English proficiency, as 
                compared to students who are proficient in English.
            ``(3) Optional information.--A State may include in the 
        State annual report any other information the State determines 
        appropriate to reflect school quality and school achievement, 
        including by grade level information on average class size and 
        information on school safety, such as the incidence of school 
        violence and drug and alcohol abuse, and the incidence of 
        student suspensions and expulsions.
            ``(4) Waiver.--The Secretary may grant a waiver to a State 
        seeking a waiver of the requirements of this subsection if the 
        State demonstrates to the Secretary that--
                    ``(A) the content of existing State report cards 
                meets the goals of this part; and
                    ``(B) the State is taking identifiable steps to 
                meet the requirements of this subsection.
    ``(h) Local Educational Agency and School Report Cards.--
            ``(1) Report required.--
                    ``(A) In general.--The State shall ensure that each 
                local educational agency, elementary school, or 
                secondary school receiving funds under part A of title 
                I or part A of title II in the State, collects 
                appropriate data and publishes an annual report card 
                consistent with this subsection.
                    ``(B) Required information.--Each local educational 
                agency, elementary school, and secondary school 
                described in subparagraph (A), at a minimum, shall 
                include in its annual report card--
                            ``(i) the information described in 
                        subsections (g)(1) and (2) for each local 
                        educational agency and school;
                            ``(ii) in the case of a local educational 
                        agency--
                                    ``(I) information regarding the 
                                number and percentage of schools 
                                identified for school improvement, 
                                including schools identified under 
                                section 1116 of this Act, served by the 
                                local educational agency;
                                    ``(II) information on the 3-year 
                                trend in the number and percentage of 
                                elementary schools and secondary 
                                schools identified for school 
                                improvement; and
                                    ``(III) information that shows how 
                                students in the schools served by the 
                                local educational agency perform on the 
                                statewide assessment compared to 
                                students in the State as a whole;
                            ``(iii) in the case of an elementary school 
                        or a secondary school--
                                    ``(I) information regarding whether 
                                the school has been identified for 
                                school improvement; and
                                    ``(II) information that shows how 
                                the school's students performed on the 
                                statewide assessment compared to 
                                students in schools served by the same 
                                local educational agency and to all 
                                students in the State; and
                            ``(iii) other appropriate information, 
                        whether or not the information is included in 
                        the annual State report.
            ``(2) Special rule.--A local educational agency that issues 
        report cards for all public elementary schools and secondary 
        schools served by the agency shall include, at a minimum, the 
        information described in subsection (g) for all schools that 
        receive funds under part A of title I or part A of title II.
    ``(i) Dissemination and Accessibility of Reports and Report 
Cards.--
            ``(1) State reports.--State annual reports under subsection 
        (g) shall be disseminated to all elementary schools, secondary 
        schools, and local educational agencies in the State, and made 
        broadly available to the public through means such as posting 
        on the Internet and distribution to the media, and through 
        public agencies.
            ``(2) Local report cards.--Local educational agency report 
        cards under subsection (h) shall be disseminated to all 
        elementary schools and secondary schools served by the local 
        educational agency and to all parents of students attending 
        such schools, and made broadly available to the public through 
        means such as posting on the Internet and distribution to the 
        media, and through public agencies.
            ``(3) School report cards.--Elementary school and secondary 
        school report cards under subsection (h) shall be disseminated 
        to all parents of students attending that school, and made 
        broadly available to the public, through means such as posting 
        on the Internet and distribution to the media, and through 
        public agencies.
    ``(j) Parents Right-to-Know.--
            ``(1) Qualifications.--A local educational agency that 
        receives funds under part A of title I or part A of title II 
        shall provide, upon request, in an understandable and uniform 
        format, to any parent of a student attending any school 
        receiving funds under part A of title I or part A of title II, 
        information regarding the professional qualifications of the 
        student's classroom teachers, including, at a minimum--
                    ``(A) whether the teacher has met State 
                certification or licensing criteria for the grade 
                levels and subject areas in which the teacher provides 
                instruction;
                    ``(B) whether the teacher is teaching under 
                emergency or other provisional status through which 
                State certification or licensing criteria are waived;
                    ``(C) the baccalaureate degree major of the 
                teacher, any other graduate certification or degree 
                held by the teacher, and the field of discipline of 
                each such certification or degree; and
                    ``(D) whether the student is provided services by 
                paraprofessionals, and the qualifications of any such 
                paraprofessional.
            ``(2) Additional information.--In addition to the 
        information that parents may request under paragraph (1), and 
        the information provided in report cards under this part, a 
        school that receives funds under part A of title I or part A of 
        title II shall provide, to the extent practicable, to each 
        individual parent or guardian--
                    ``(A) information on the level of performance of 
                the individual student, for whom they are the parent or 
                guardian, in each of the State assessments as required 
                under part A of title I; and
                    ``(B) timely notice that the student, for whom they 
                are the parent or guardian, was assigned or taught for 
                2 or more consecutive weeks by a substitute teacher or 
                by a teacher not fully qualified.
    ``(k) Coordination of State Plan Content.--A State shall include in 
its plan under part A of title I or part A of title II, an assurance 
that the State has in effect a policy that meets the requirements of 
this section.
    ``(l) Privacy.--Information collected under this section shall be 
collected and disseminated in a manner that protects the privacy of 
individuals.
    ``(m) Definition.--The term `State' means each of the several 
States of the United States, the District of Columbia, and the 
Commonwealth of Puerto Rico.

                          TITLE V--IMPACT AID

SEC. 501. IMPACT AID.

    (a) Section 8014 (20 U.S.C. 7714) is amended--
            (1) in subsection (a)--
                    (A) by striking ``$16,750,000 for fiscal year 1995 
                and''; and
                    (B) by inserting ``fiscal year 2002 and'' after 
                ``necessary for'';
            (2) in subsection (b)--
                    (A) by striking ``$775,000,000 for fiscal year 1995 
                and''; and
                    (B) by inserting ``fiscal year 2002 and'' after 
                ``necessary for'';
            (3) in subsection (c)--
                    (A) by striking ``$45,000,000 for fiscal year 1995 
                and''; and
                    (B) by inserting ``fiscal year 2002 and'' after 
                ``necessary for'';
            (4) in subsection (d)--
                    (A) by striking ``$2,000,000 for fiscal year 1995 
                and''; and
                    (B) by inserting ``fiscal year 2002 and'' after 
                ``necessary for'';
            (5) in subsection (e)--
                    (A) by striking ``$25,000,000 for fiscal year 1995 
                and''; and
                    (B) by inserting ``fiscal year 2002 and'' after 
                ``necessary for'';
            (6) in subsection (f)--
                    (A) by striking ``$2,000,000 for fiscal year 1995 
                and''; and
                    (B) by inserting ``fiscal year 2002 and'' after 
                ``necessary for''; and
            (7) in subsection (g), by striking ``1998'' and inserting 
        ``2002''.
    (b) Repeals, Transfers, and Redesignations.--The Act (20 U.S.C. 
6301 et seq.) is amended--
            (1) by repealing title V (20 U.S.C. 7201 et seq.);
            (2) by redesignating title VIII (20 U.S.C. 7701 et seq.) 
        (as amended by subsection (a)) as title V, and transferring the 
        title to follow title IV (as amended by section 402);
            (3) by redesignating references to title VIII as references 
        to title V (as redesignated and transferred by paragraph (2)); 
        and
            (4) by redesignating sections 8001 through 8014 (20 U.S.C. 
        7701, 7714) (as transferred by paragraph (2)) as sections 5001 
        through 5014, respectively, and redesignating accordingly the 
        references to such sections.

      TITLE VI--HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES

SEC. 601. HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES.

    Title VI (20 U.S.C. 7301 et seq.) is amended to read as follows:

     ``TITLE VI--HIGH PERFORMANCE AND QUALITY EDUCATION INITIATIVES

``SEC. 6001. DEFINITIONS OF STATE.

    ``In this title:
            ``(1) Authentic task.--The term `authentic task' means a 
        real world task that--
                    ``(A) is challenging, meaningful, 
                multidisciplinary, and interactive;
                    ``(B) involves reasoning, problem solving, and 
                composition; and
                    ``(C) is not a discrete component skill that has no 
                obvious connection with students' activities outside of 
                school.
            ``(2) State.--The term `State' means each of the several 
        States, the District of Columbia, and the Commonwealth of 
        Puerto Rico.

``SEC. 6002. PROGRAMS AUTHORIZED.

    ``(a) Grants Authorized.--From the amount appropriated under 
section 6009 for a fiscal year, the Secretary shall award a grant to 
each State educational agency having a State plan approved under 
section 6005(a)(4) to enable the State educational agency to award 
grants to local educational agencies in the State.
    ``(b) Reservations and Allotments.--
            ``(1) Reservations.--From the amount appropriated under 
        section 6009 for a fiscal year, the Secretary shall reserve--
                    ``(A) not more than \1/2\ of 1 percent of such 
                amount for payments to the Bureau of Indian Affairs for 
                activities, approved by the Secretary, consistent with 
                this title;
                    ``(B) not more than \1/2\ of 1 percent of such 
                amounts for payments to outlying areas, to be allotted 
                in accordance with their respective needs for 
                assistance under this title as determined by the 
                Secretary, for activities, approved by the Secretary, 
                consistent with this title; and
                    ``(C) such sums as may be necessary to continue to 
                support any multiyear award made under titles III, IV, 
                V (part B), or X (as such titles were in effect on the 
                day preceding the date of enactment of the Education 
Reform Act) until the completion of the multiyear award.
            ``(2) State allotments.--
                    ``(A) In general.--From the amount appropriated 
                under section 6009 for a fiscal year and remaining 
                after the Secretary makes reservations under paragraph 
                (1), the Secretary shall allot to each State having a 
                State plan approved under section 6005(a)(4) the sum 
                of--
                            ``(i) an amount that bears the same 
                        relationship to 50 percent of the remainder as 
                        the amount the State received under part A of 
                        title I bears to the amount all States received 
                        under such part; and
                            ``(ii) an amount that bears the same 
                        relationship to 50 percent of the remainder as 
                        the school-age population in the State bears to 
                        the school-age population in all States.
                    ``(B) Data.--For the purposes of determining the 
                school-age population in a State and in all States, the 
                Secretary shall use the latest available Bureau of the 
                Census data.
    ``(c) State Minimum.--For any fiscal year, no State shall be 
allotted under this section an amount that is less than 0.4 percent of 
the total amount allotted to all States under subsection (b)(2).
    ``(d) Hold-Harmless Amounts.--For fiscal year 2001, notwithstanding 
subsection (e), the amount allotted to each State under this section 
shall be not less than 100 percent of the total amount the State was 
allotted in formula grants under titles III, IV, and VI (as such titles 
were in effect on the day preceding the date of enactment of the 
Education Reform Act) for the preceding fiscal year.
    ``(e) Ratable Reductions.--If the sums made available under 
subsection (b)(2)(A) for any fiscal year are insufficient to pay the 
full amounts that all State educational agencies are eligible to 
receive under that subsection for such year, the Secretary shall 
ratably reduce such amounts for such year.

``SEC. 6003. WITHIN STATE ALLOCATION.

    ``(a) Short Title.--Each State educational agency for a State 
receiving a grant award under section 6003(b)(2) shall--
            ``(1) set aside not more than 1 percent of the grant funds 
        for the cost of administering the activities under this title;
            ``(2) set aside not more than 4 percent of the grant funds 
        to--
                    ``(A) provide for the establishment of high-
                quality, internationally competitive content and 
                student performance standards and strategies that all 
                students will be expected to meet;
                    ``(B) provide for the establishment of high-
                quality, rigorous assessments that include multiple 
                measures and demonstrate comprehensive knowledge;
                    ``(C) encourage and enable all State educational 
                agencies and local educational agencies to develop, 
                implement, and strengthen comprehensive education 
                improvement plans that address student achievement, 
                teacher quality, parent involvement, and reliable 
                measurement and evaluation methods; and
                    ``(D) encourage and enable all States to develop 
                and implement value-added assessments, including model 
                value-added assessments identified by the Secretary 
                under section 7004(a)(6); and
            ``(3) using the remaining 95 percent of the grant funds, 
        make grants by allocating to each local educational agency in 
        the State having a local educational agency plan approved under 
        section 6005(b)(3) the sum of--
                    ``(A) an amount that bears the same relationship to 
                50 percent of such remainder as the amount the local 
                educational agency received under part A of title I 
                bears to the amount all local educational agencies in 
                the State received under such part; and
                    ``(B) an amount that bears the same relationship to 
                50 percent of such remainder as the school-age 
                population in the area served by the local educational 
                agency bears to the school-age population in the area 
                served by all local educational agencies in the State.
    ``(b) Matching Requirement.--
            ``(1) In general.--Each eligible local educational agency 
        receiving a grant under subsection (a) shall contribute 
        resources with respect to the local authorized activities to be 
        assisted under this title in case or in-kind from non-Federal 
        sources in an amount equal to 25 percent of the Federal funds 
        awarded under the grant.
            ``(2) Waiver.--A local educational agency may apply to the 
        State educational agency may grant a waiver of the requirements 
        of paragraph (1) to a local educational agency that--
                    ``(A) applies for such a waiver; and
                    ``(B) demonstrates extreme circumstances for being 
                unable to meet such requirements.

``SEC. 6004. PLANS.

    ``(a) State Plans.--
            ``(1) In general.--The State educational agency for each 
        State desiring a grant under this title shall submit a State 
        plan to the Secretary at such time, in such manner, and 
        accompanied by such information as the Secretary may require.
            ``(2) Consolidated plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a consolidated plan 
        under section 8302.
            ``(3) Contents.--Each plan submitted under paragraph (1) 
        shall--
                    ``(A) describe how the State educational agency 
                will assist each local educational agency and school 
                served under this title to comply with the requirements 
                described in section 6006 that are applicable to the 
                local educational agency or school;
                    ``(B) certify that the State has in place the 
                standards and assessments required under section 1111;
                    ``(C) certify that the State educational agency has 
                a system, as required under section 1111, for--
                            ``(i) holding each local educational agency 
                        and school accountable for adequate yearly 
                        progress (as defined in section 1111(b)(2)(B));
                            ``(ii) identifying local educational 
                        agencies and schools that are in need of 
                        improvement and corrective action (as required 
                        in sections 1116 and 1117);
                            ``(iii) assisting local educational 
                        agencies and schools that are identified for 
                        improvement with the development of improvement 
                        plans; and
                            ``(iv) providing technical assistance, 
                        professional development, and other capacity 
                        building as needed to get such agencies and 
                        schools out of improvement status;
                    ``(D) certify that the State educational agency 
                shall use the disaggregated results of student 
                assessments required under section 1111(b)(4), and 
                other measures or indicators available, to review 
                annually the progress of each local educational agency 
                and school served under this title to determine whether 
                or not each such agency and school is making adequate 
                yearly progress as required under section 1111;
                    ``(E) certify that the State educational agency 
                will take action against a local educational agency 
                that is in corrective action and receiving funds under 
                this title as described in section 6006(d)(1);
                    ``(F) describe what, if any, State and other 
                resources will be provided to local educational 
                agencies and schools served under this title to carry 
                out activities consistent with this title; and
                    ``(G) certify that the State educational agency has 
                a system to hold local educational agencies accountable 
                for meeting the annual performance objectives required 
                under subsection (b)(2)(C).
            ``(4) Approval.--The Secretary, using a peer review 
        process, shall approve a  State plan if the State plan meets 
the requirements of this subsection.
            ``(5) Duration of the plan.--Each State plan shall remain 
        in effect for the duration of the State's participation under 
        this title.
            ``(6) Requirement.--A State shall not be eligible to 
        receive funds under this title unless the State has established 
        the standards and assessments required under section 1111.
    ``(b) Local Plans.--
            ``(1) In general.--Each local educational agency shall 
        annually submit a local educational agency plan to the State 
        educational agency at such time, in such manner, and 
        accompanied by such information as the State educational agency 
        may require.
            ``(2) Contents.--Each local educational agency shall--
                    ``(A) describe the programs for which funds 
                allocated under section 6004(3) will be used and the 
                reasons for the selection of such programs;
                    ``(B) describe the methods the local educational 
                agency will use to measure the annual impact of 
                programs described under subparagraph (A) and the 
                extent to which such programs will increase student 
                academic performance;
                    ``(C) describe the annual, quantifiable, and 
                measurable performance goals and objectives for each 
                program described under subparagraph (A) and the extent 
                to which such goals and objectives are aligned with 
                State content and student performance standards;
                    ``(D) describe how the local educational agency 
                will hold schools accountable for meeting the intended 
                performance objectives for each program described under 
                subparagraph (C);
                    ``(E) provide an assurance that the local 
                educational agency has met the local plan requirements 
                described in section 1112 for--
                            ``(i) holding schools accountable for 
                        adequate yearly progress, including meeting 
                        annual numerical goals for improving the 
                        performance of all groups of students based on 
                        the student performance standards set by the 
                        State under section 1111(b)(1)(D)(ii);
                            ``(ii) identifying schools for school 
                        improvement or corrective action;
                            ``(iii) fulfilling the local educational 
                        agency's school improvement responsibilities 
                        described in section 1116, including taking 
                        corrective actions under section 1116(c)(10); 
                        and
                            ``(iv) providing technical assistance, 
                        professional development, or other capacity 
                        building to schools served by the agency;
                    ``(F) certify that the local educational agency 
                will take action against a school that is in corrective 
                action and receiving funds under this title as 
                described under section 6006(d)(2);
                    ``(G) describe what State and local resources will 
                be contributed to carrying out programs described under 
                subparagraph (A);
                    ``(H) provide assurances that the local educational 
                agency consulted, at a minimum, with parents, school 
                board members, teachers, administrators, business 
                partners, education organizations, and community groups 
                to develop the local educational plan and select the 
                programs to be assisted under this title; and
                    ``(I) provide assurances that the local educational 
                agency will continue such consultation on a regular 
basis and will provide the State with annual evidence of such 
consultation.
            ``(3) Approval.--The State, using a peer review process, 
        shall approve a local educational agency plan if the plan meets 
        the requirements of this subsection.
            ``(4) Duration of the plan.--Each local educational agency 
        plan shall remain in effect for the duration of the local 
        educational agency's participation under this title.
            ``(5) Public review.--Each State educational agency will 
        make publicly available each local educational agency plan 
        approved under paragraph (3).

``SEC. 6005. LOCAL USES OF FUNDS AND ACCOUNTABILITY.

    ``(a) Administrative Expenses.--Each local educational agency 
receiving a grant award under section 6004(3) may use not more than 1 
percent of the grant funds for any fiscal year for the cost of 
administering this title.
    ``(b) Required Activities.--Each local educational agency that 
receives a grant award under this title shall use grant funds remaining 
after the reservation under paragraph (a) in accordance with its local 
plan submitted under section 6004(b).
    ``(c) Limitations for Schools and Local Educational Agencies in 
Corrective Action.--
            ``(1) Local educational agencies in corrective action.--If 
        a local educational agency is identified for corrective action 
        under section 1116(d), the State educational agency shall--
                    ``(A) notwithstanding any other provision of law, 
                specify how the local educational agency shall spend 
                the grant funds in order to focus the local educational 
                agency on activities that will be the most effective in 
                raising student performance levels; and
                    ``(B) implement corrective action in accordance 
                with the provisions for corrective action described in 
                section 1116(d).
            ``(2) Schools in corrective action.--If a school is 
        identified for corrective action under section 1116(c), the 
        local educational agency shall--
                    ``(A) specify how the school shall spend grant 
                funds received under this section in order to focus on 
                activities that will be the most effective in raising 
                student performance levels; and
                    ``(B) implement corrective action in accordance 
                with the provisions for corrective action described in 
                section 1116(c)(10).
            ``(3) Duration.--Limitations imposed on schools and local 
        educational agencies in corrective action under paragraphs (1) 
        and (2) shall remain in effect until such time as the school or 
        local educational agency has made sufficient improvement, as 
        determined by the State educational agency, and is no longer in 
        corrective action.

``SEC. 6006. STATE AND LOCAL RESPONSIBILITIES.

    ``(a) Data Review.--
            ``(1) State and local review.--A State educational agency 
        shall jointly review with a local educational agency described 
        in section 6006(d)(1) the local educational agency's data 
        gathered from student assessments and other measures required 
        under section 1111(b)(4), in order to determine how the local 
        educational agency shall spend the grant funds pursuant to 
        section 6006(d)(1)(A) in order to substantially increase 
        student performance levels.
            ``(1) School and local review.--A local educational agency 
        shall jointly review with a school described in section 
        6006(d)(2) the school's data gathered from student assessments 
        and other measures required under section 1111(b)(4), in order 
        to determine how the school shall spend grant funds pursuant to 
section 6006(d)(2) in order to substantially increase student 
performance levels.
    ``(b) Technical Assistance.--
            ``(1) State assistance.--
                    ``(A) A State educational agency shall provide, 
                upon request by a local educational agency receiving 
                grant funds under this title, technical assistance to 
                the local educational agency and schools served by the 
                local educational agency, including assistance in 
                analyzing student performance and the impact of 
                programs assisted under this title and identifying the 
                best instructional strategies and methods for carrying 
                out such programs.
                    ``(B) State assistance may be provided by--
                            ``(i) the State educational agency; or
                            ``(ii) with the local educational agency's 
                        approval, by an institution of higher 
                        education, a private not-for-profit or for-
                        profit organization, an educational service 
                        agency, the recipient of a Federal contract or 
                        cooperative agreement as described in section 
                        7005, a nontraditional entity such as a 
                        corporation or consulting firm, or any other 
                        entity with experience in the program area for 
                        which the assistance is being sought.
            ``(2) Local assistance.--
                    ``(A) A local educational agency shall provide, 
                upon request by an elementary school or secondary 
                school served by the agency, technical assistance to 
                such school, including assistance in analyzing student 
                performance and the impact of programs assisted under 
                this title, and identifying the best instructional 
                strategies and methods for carrying out such programs.
                    ``(B) Local assistance may be provided by--
                            ``(i) the State educational agency or local 
                        educational agency; or
                            ``(ii) with the school's approval, by an 
                        institution of higher education, a private not-
                        for-profit or for-profit organization, an 
                        educational service agency, the recipient of a 
                        Federal contract or cooperative agreement as 
                        described in section 7005, a nontraditional 
                        entity such as a corporation or consulting 
                        firm, or any other entity with experience in 
the program area for which the assistance is being sought.

``SEC. 6007. LOCAL REPORTS.

    ``Each local educational agency receiving funds under this title 
shall annually publish and disseminate to the public in a format and, 
to the extent practicable, in a language that parents can understand, a 
report on--
            ``(1) information describing the use of funds in the 4 
        category areas described in section 6006(b);
            ``(2) the impact of such programs and an assessment of such 
        programs' effectiveness; and
            ``(3) the local educational agency's progress toward 
        attaining the goals and objectives described under section 
        6005(b), and the extent to which programs assisted under this 
        title have increased student achievement.

``SEC. 6008. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$1,000,000,000 for fiscal year 2001, and such sums as may be necessary 
for each of the 4 succeeding fiscal years.''.

                       TITLE VII--ACCOUNTABILITY

SEC. 701. ACCOUNTABILITY.

    Title VII of the Act (20 U.S.C. 7401 et seq.) is amended to read as 
follows:

                      ``TITLE VII--ACCOUNTABILITY

``SEC. 7001. SANCTIONS.

    ``(a) Third Fiscal Year.--If performance objectives established 
under a covered provision have not been met by a State receiving grant 
funds under such provision by the end of the third fiscal year for 
which the State receives such grant funds, the Secretary shall reduce 
by 50 percent the amount the State is entitled to receive for 
administrative expenses under such provision.
    ``(b) Fourth Fiscal Year.--If the State fails to meet the 
performance objectives established under a covered provision by the end 
of the fourth fiscal year for which the State receives grant funds 
under the covered provision, the Secretary shall reduce the total 
amount the State receives under title VI by 30 percent.
    ``(c) Duration.--If the Secretary determines, under subsection (a) 
or (b), that a State failed to meet the performance objectives 
established under a covered provision for a fiscal year, the Secretary 
shall reduce grant funds in accordance with subsection (a) or (b) for 
the State for each subsequent fiscal year until the State demonstrates 
that the State met the performance objectives for the fiscal year 
preceding the demonstration.
    ``(d) Technical Assistance.--The Secretary shall provide technical 
assistance, if sought, to a State subjected to sanctions under 
subsection (a) or (b).
    ``(e) Local Sanctions.--
            ``(1) In general.--Each State receiving assistance under 
        title I, II, III, or VI shall develop a system to hold local 
        educational agencies accountable for meeting--
                    ``(A) the performance objectives established under 
                part A of title II, part A of title III, and title VI; 
                and
                    ``(B) the adequate yearly progress requirements 
                established under part A of title I, and required under 
                part A of title III and title VI.
            ``(2) Sanctions.--A system developed under paragraph (c) 
        shall include a mechanism for sanctioning local educational 
        agencies for low performance with regard to failure to meet 
        such performance objectives and adequate yearly progress 
        levels.
    ``(f) Definitions.--In this section:
            ``(1) Covered provision.--The term `covered provision' 
        means part A of title I, part A of title II, part A of title 
        III, and section 6005(b)(2)(C).
            ``(2) Performance objectives.--The term `performance 
        objectives' means in the case of--
                    ``(A) part A of title I, the adequate yearly 
                progress levels established under subsections 
                (b)(2)(A)(iii) and (b)(2)(B) of section 1111;
                    ``(B) part A of title II, the set of performance 
                objectives established in section 2014;
                    ``(C) part A of title III, the set of performance 
                objectives established in section 3109; and
                    ``(D) title VI, the set of performance objectives 
                set by each local educational agency in section 
                6005(b)(2)(C).

``SEC. 7002. REWARDING HIGH PERFORMANCE.

    ``(a) State Rewards.--
            ``(1) In general.--From amounts appropriated under 
        subsection (d), and from amounts made available as a result of 
        reductions under section 7001, the Secretary shall make awards 
        to States that--
                    ``(A) for 3 consecutive years have--
                            ``(i) exceeded the States' performance 
                        objectives established for any title under this 
                        Act;
                            ``(ii) exceeded their adequate yearly 
                        progress levels established in section 1111(b);
                            ``(iii) significantly narrowed the gaps 
                        between minority and non-minority students, and 
                        between economically disadvantaged and non-
                        economically disadvantaged students;
                            ``(iv) raised all students to the 
                        proficient standard level prior to 10 years 
                        from the date of enactment of the Education 
                        Reform Act; or
                            ``(v) significantly increased the 
                        percentage of core classes being taught by 
                        fully qualified teachers teaching in schools 
                        receiving funds under part A of title I; or
                    ``(B) by not later than fiscal year 2003, ensure 
                that all teachers teaching in the States' public 
                elementary schools and secondary schools are fully 
                qualified.
            ``(2) State use of funds.--
                    ``(A) Demonstration sites.--Each State receiving an 
                award under paragraph (1) shall use a portion of the 
                award that is not distributed under subsection (b) to 
                establish demonstration sites with respect to high-
                performing schools (based on achievement or 
performance levels) objectives and adequate yearly progress in order to 
help low-performing schools.
                    ``(B) Improvement of performance.--Each State 
                receiving an award under paragraph (1) shall use the 
                portion of the award that is not used pursuant to 
                subparagraph (A) or (C) and is not distributed under 
                subsection (b) for the purpose of improving the level 
                of performance of all elementary and secondary school 
                students in the State, based on State content and 
                performance standards.
                    ``(C) Reservation for administrative expenses.--
                Each State receiving an award under paragraph (1) may 
                set aside not more than \1/2\ of 1 percent of the award 
                for the planning and administrative costs of carrying 
                out this section, including the costs of distributing 
                awards to local educational agencies.
    ``(b) Local Educational Agency Awards.--
            ``(1) In general.--Each State receiving an award under 
        subsection (a)(1) shall distribute 80 percent of the award 
        funds to local educational agencies in the State that--
                    ``(A) for 3 consecutive years have--
                            ``(i) exceeded the State-established local 
                        educational agency performance objectives 
                        established for any title under this Act;
                            ``(ii) exceeded the adequate yearly 
                        progress level established under section 
                        1111(b)(2);
                            ``(iii) significantly narrowed the gaps 
                        between minority and nonminority students, and 
                        between economically disadvantaged and 
                        noneconomically disadvantaged students;
                            ``(iv) raised all students enrolled in 
                        schools within the local educational agency to 
                        the proficient standard level prior to 10 years 
                        from the date of enactment of the Education 
                        Reform Act; or
                            ``(v) significantly increased the 
                        percentage of core classes being taught by 
                        fully qualified teachers teaching in schools 
                        receiving funds under part A of title I; or
                    ``(B) not later than December 31, 2003, ensured 
                that all teachers teaching in the elementary schools 
                and secondary schools served by the local educational 
                agencies are fully qualified; or
                    ``(C) have attained consistently high achievement 
                in another area that the State deems appropriate to 
                reward.
            ``(2) School-based performance awards.--A local educational 
        agency may use funds made available under paragraph (1) for 
        activities such as school-based performance awards.
            ``(3) Reservation for administrative expenses.--Each local 
        educational agency receiving an award under paragraph (1) may 
        set aside not more than \1/2\ of 1 percent of the award for the 
        planning and administrative costs of carrying out this section, 
        including the costs of distributing awards to eligible 
        elementary schools and secondary schools, teachers, and 
        principals.
    ``(c) School Rewards.--Each local educational agency receiving an 
award under subsection (b) shall consult with teachers and principals 
to develop a reward system, and shall use the award funds--
            ``(1) to reward individual schools that demonstrate high 
        performance with respect to--
                    ``(A) increasing the academic achievement of all 
                students;
                    ``(B) narrowing the academic achievement gap 
                described in section 1111(b)(2)(B)(vii);
                    ``(C) improving teacher quality;
                    ``(D) increasing high-quality professional 
                development for teachers, principals, and 
                administrators; or
                    ``(E) improving the English proficiency of limited 
                English proficient students;
            ``(2) to reward collaborative teams of teachers, or teams 
        of teachers and principals, that--
                    ``(A) significantly increase the annual performance 
                of low-performing students; or
                    ``(B) significantly improve in a fiscal year the 
                English proficiency of limited English proficient 
                students;
            ``(3) to reward principals who successfully raise the 
        performance of a substantial number of low-performing students 
        to high academic levels;
            ``(4) to develop or implement school district-wide programs 
        or policies to increase the level of student performance on 
        State assessments that are aligned with State content 
        standards; and
            ``(5) to reward schools for consistently high achievement 
        in another area that the local educational agency deems 
        appropriate to reward.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $200,000,000 for fiscal year 
2001, and such sums as may be necessary for each of the 4 succeeding 
fiscal years.
    ``(e) Definition.--The term `low-performing student' means students 
who are below the basic State standard level.

``SEC. 7003. SUPPLEMENT NOT SUPPLANT.

    ``A State educational agency and local educational agency shall use 
funds under this title to supplement, and, not supplant, Federal, 
State, and local funds that, in the absence of funds under this title, 
would otherwise be spent for activities of the type described in 
section 7002.

``SEC. 7004. SECRETARY'S ACTIVITIES.

    ``(a) In General.--Notwithstanding any other provision of this Act, 
from amounts appropriated under subsection (b) and not reserved under 
subsection (c), the Secretary may--
            ``(1) support activities of the National Board for 
        Professional Teaching Standards;
            ``(2) study and disseminate information regarding model 
        programs assisted under this Act;
            ``(3) provide training and technical assistance to States, 
        local educational agencies, elementary schools and secondary 
        schools, Indian tribes, and other recipients of grant funds 
under this Act that are carrying out activities assisted under this 
Act, including entering into contracts or cooperative agreements with 
public or private nonprofit entities or consortia of such entities, in 
order to provide comprehensive training and technical assistance 
related to the administration and implementation of activities assisted 
under this Act;
            ``(4) support activities that will promote systemic 
        education reform at the State and local levels;
            ``(5) award grants or contracts to public or private 
        nonprofit entities to enable the entities--
                    ``(A) to develop and disseminate exemplary reading, 
                mathematics, science, and technology educational 
                practices, and instructional materials to States, local 
                educational agencies, and elementary schools and 
                secondary schools; and
                    ``(B) to provide technical assistance for the 
                implementation of teaching methods and assessment tools 
                for use by elementary schools and secondary school 
                students, teachers, and administrators;
            ``(6) disseminate information on models of value-added 
        assessments;
            ``(7) award a grant or contract to a public or private 
        nonprofit entity or consortium of such entities for the 
        development and dissemination of exemplary programs and 
        curricula for accelerated and advanced learning for all 
        students, including gifted and talented students;
            ``(8) award a grant or contract with Reading Is 
        Fundamental, Inc. and other public or private nonprofit 
        entities to support and promote programs which include the 
        distribution of inexpensive books to students and literacy 
        activities that motivate children to read; and
            ``(9) provide assistance to States--
                    ``(A) by assisting in the development of English 
                language development standards and high-quality 
                assessments, if requested by a State participating in 
                activities under subtitle A of title III; and
                    ``(B) by developing native language tests for 
                limited English proficient students that a State may 
                administer to such students to assess student 
                achievement in at least reading, science, and 
                mathematics, consistent with section 1111.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $150,000,000 for fiscal year 
2002, and such sums as may be necessary for each of the 4 succeeding 
fiscal years.
    ``(c) Reservation.--From the amounts appropriated under subsection 
(b) the Secretary shall reserve $10,000,000 for the purposes of 
carrying out activities under section 1202(c).''.

               TITLE VIII--GENERAL PROVISIONS AND REPEALS

SEC. 801. REPEALS, TRANSFERS, AND REDESIGNATIONS REGARDING TITLES VIII 
              AND XIV.

    (a) In General.--The Act (20 U.S.C. 6301 et seq.) is amended--
            (1) by inserting after title VII the following:

                  ``TITLE VIII--GENERAL PROVISIONS'';

            (2) by repealing sections 14514 and 14603 (20 U.S.C. 8904, 
        8923);
            (3)(A) by transferring title XIV (20 U.S.C. 8801 et seq.) 
        to title VIII and inserting such title after the title heading 
        for title VIII; and
            (B) by striking the title heading for title XIV;
            (4)(A) by redesignating part H of title VIII (as 
        redesignated by paragraph (3)) as part I of title VIII; and
            (B) by redesignating the references to part H of title VIII 
        as references to part I of title VIII;
            (5) by inserting after part G of title VIII the following:

                   ``PART H--SUPPLEMENT, NOT SUPPLANT

``SEC. 8801. SUPPLEMENT, NOT SUPPLANT.

    ``A State educational agency or local educational agency shall use 
funds received under the Act to supplement, and not supplant, State and 
local funds that, in the absence of funds under this Act, would 
otherwise be spent for activities under this Act.'';
            (6) by redesignating the references to title XIV as 
        references to title VIII;
            (7)(A) by redesignating sections 14101 through 14103 (20 
        U.S.C. 8801, 8803) (as transferred by paragraph (3)) as 
        sections 8101 through 8103, respectively; and
            (B) by redesignating the references to such sections 14101 
        through 14103 as references to sections 8101 through 8103, 
        respectively;
            (8)(A) by redesignating sections 14201 through 14206 (20 
        U.S.C. 8821, 8826) (as transferred by paragraph (3)) as 
        sections 8201 through 8206, respectively; and
            (B) by redesignating the references to such sections 14201 
        through 14206 as references to sections 8201 through 8206, 
        respectively;
            (9)(A) by redesignating sections 14301 through 14307 (20 
        U.S.C. 8851, 8857) (as transferred by paragraph (3)) as 
        sections 8301 through 8307, respectively; and
            (B) by redesignating the references to such sections 14301 
        through 14307 as references to sections 8301 through 8307, 
        respectively;
            (10)(A) by redesignating section 14401 (20 U.S.C. 8881) (as 
        transferred by paragraph (3)) as section 8401; and
            (B) by redesignating the references to such section 14401 
        as references to section 8401;
            (11)(A) by redesignating sections 14501 through 14513 (20 
        U.S.C. 8891, 8903) (as transferred by paragraph (3)) as 
        sections 8501 through 8513, respectively; and
            (B) by redesignating the references to such sections 14501 
        through 14513 as references to sections 8501 through 8513, 
        respectively;
            (12)(A) by redesignating sections 14601 and 14602 (20 
        U.S.C. 8921, 8922) (as transferred by paragraph (3)) as 
sections 8601 and 8602, respectively; and
            (B) by redesignating the references to such sections 14601 
        and 14602 as references to sections 8601 and 8602, 
        respectively;
            (13)(A) by redesignating section 14701 (20 U.S.C. 8941) (as 
        transferred by paragraph (3)) as section 8701; and
            (B) by redesignating the references to such section 14701 
        as references to section 8701; and
            (14)(A) by redesignating sections 14801 and 14802 (20 
        U.S.C. 8961, 8962) (as transferred by paragraph (3)) as 
        sections 8901 and 8902, respectively; and
            (B) by redesignating the references to such sections 14801 
        and 14802 as references to sections 8901 and 8902, 
        respectively.
    (b) Amendments.--Title VIII (as so transferred and redesignated) is 
amended--
            (1) in section 8101(10) (as redesignated by subsection 
        (a)(7))--
                    (A) by striking subparagraphs (C) through (F); and
                    (B) by adding after subparagraph (B) the following:
                    ``(C) part A of title II;
                    ``(D) part A of title III; and
                    ``(E) title IV.'';
            (2) in section 8102 (as redesignated by subsection (a)(7)), 
        by striking ``VIII'' and inserting ``V'';
            (3) in section 8201 (as redesignated by subsection 
        (a)(8))--
                    (A) in subsection (a)(2), by striking ``, and 
                administrative funds under section 308(c) of the Goals 
                2000: Educate America Act''; and
                    (B) by striking subsection (f);
            (4) in section 8203(b) (as redesignated by subsection 
        (a)(8)), by striking ``Improving America's Schools Act of 
        1994'' and inserting ``Education Reform Act'';
            (5) in section 8204 (as redesignated by subsection 
        (a)(8))--
                    (A) by striking subsection (b); and
                    (B) in subsection (a)--
                            (i) in paragraph (2)--
                                    (I) in the matter preceding 
                                subparagraph (A), by striking ``1995'' 
                                and inserting ``2001'';
                                    (II) in subparagraph (B), by 
                                inserting ``professional development,'' 
                                after ``curriculum development,''; and
                            (ii) in paragraph (4)--
                                    (I) by striking ``and section 
                                410(b) of the Improving America's 
                                Schools Act of 1994''; and
                                    (II) by striking ``paragraph (2)'' 
                                and inserting ``subsection (a)(2)'';
                                    (III) by striking the following:
            ``(4) Results.--'' and inserting the following:
    ``(b) Results.--'';
                                    (IV) by striking the following:
                    ``(A) develop'' and inserting the following:
            ``(1) develop''; and
                                    (V) by striking the following:
                    ``(B) within'' and inserting the following:
            ``(2) within'';
            (6) in section 8205(a)(1) (as redesignated by subsection 
        (a)(8)), by striking ``part A of title IX'' and inserting 
        ``part B of title III'';
            (7) in section 8206 (as redesignated by subsection 
        (a)(8))--
                    (A) by striking ``(a) Unneeded Program Funds.--''; 
                and
                    (B) by striking subsection (b);
            (8) in section 8302(a)(2) (as redesignated by subsection 
        (a)(9))--
                    (A) by striking subparagraph (C); and
                    (B) by redesignating subparagraphs (D) and (E) as 
                subparagraphs (C) and (D), respectively;
            (9) in section 8304(b) (as redesignated by subsection 
        (a)(9)), by striking ``Improving America's Schools Act of 
        1994'' and inserting ``Education Reform Act'';
            (10) in section 8401 (as redesignated by subsection 
        (a)(10))--
                    (A) in subsection (a), by striking ``Except as 
                provided in subsection (c),'' and inserting 
                ``Notwithstanding any other provision regarding waivers 
                in this Act and except as provided in subsection 
                (c),''; and
                    (B) in subsection (c)(8), by striking ``part C of 
                title X'' and inserting ``part B of title IV'';
            (11) in section 8502 (as redesignated by subsection 
        (a)(11)), by striking ``VIII'' and inserting ``V'';
            (12) in section 8503(b)(1) (as redesignated by subsection 
        (a)(11))--
                    (A) by striking subparagraphs (B) through (E);
                    (B) by redesignating subparagraph (A) as 
                subparagraph (B);
                    (C) by inserting before subparagraph (B) the 
                following:
                    ``(A) part A of title I;''; and
                    (D) by adding at the end the following:
                    ``(C) title II;
                    ``(D) title III;
                    ``(E) title VI.''; and
            (13) in section 8506(d) (as redesignated by subsection 
        (a)(11)), by striking ``Improving America's Schools Act of 
        1994'' and inserting ``Education Reform Act'';
            (14) in section 8513 (as redesignated by subsection 
        (a)(11)), by striking ``Improving America's Schools Act of 
        1994'' each place it appears and inserting ``Education Reform 
        Act'';
            (15) in section 8601 (as redesignated by subsection 
        (a)(12))--
                    (A) in subsection (b)(3)--
                            (i) in subparagraph (A), by striking 
                        ``Improving America's Schools Act of 1994'' and 
inserting ``Education Reform Act''; and
                            (ii) in subparagraph (B), by striking 
                        ``Improving America's Schools Act'' and 
                        inserting ``Education Reform Act''; and
                    (B) in subsection (f), by striking ``Improving 
                America's Schools Act of 1994'' and inserting 
                ``Education Reform Act''; and
            (16) in section 8701(b) (as redesignated by subsection 
        (a)(13))--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B)--
                                    (I) in clause (i), by striking 
                                ``Improving America's Schools Act of 
                                1994'' and inserting ``Education Reform 
                                Act'';
                                    (II) in clause (ii), by striking 
                                ``such as the initiatives under the 
                                Goals 2000: Educate America Act, and'' 
                                and inserting ``under''; and
                                    (III) in clause (v), by striking 
                                ``, the Advisory Council on Education 
                                Statistics, and the National Education 
                                Goals Panel'' and inserting ``and the 
                                Advisory Council on Education 
                                Statistics''; and
                            (ii) in subparagraph (C)(ii), by striking 
                        ``the School-to-Work Opportunities Act of 1994, 
                        and the Goals 2000: Educate America Act'' and 
                        inserting ``and the School-to-Work 
                        Opportunities Act of 1994''; and
                    (B) in paragraph (3), by striking ``1998'' and 
                inserting ``2004''.

SEC. 802. OTHER REPEALS.

    Titles V and XIII (20 U.S.C. 7201 et seq., and 8601 et seq.) and 
the Goals 2000: Educate America Act (20 U.S.C. 5801 et seq.) are 
repealed.

                   TITLE IX--TECHNOLOGY FOR EDUCATION

SEC. 901. TECHNOLOGY FOR EDUCATION.

    Title X (20 U.S.C. 8001 et seq.) is amended to read as follows:

``SEC. 10101. SHORT TITLE.

    ``This title may be cited as the `Technology for Education Act of 
2000'.

           ``PART A--TECHNOLOGY FOR EDUCATION OF ALL STUDENTS

``SEC. 10111. FINDINGS.

    ``The Congress finds that--
            ``(1) technology can produce far greater opportunities for 
        all students to learn to high standards, promote efficiency and 
        effectiveness in education, and help propel our Nation's school 
        systems into very immediate and dramatic reform, without which 
        our Nation will not meet the National Education Goals by the 
        target year 2000;
            ``(2) the use of technology as a tool in the teaching and 
        learning process is essential to the development and 
        maintenance of a technologically literate citizenry and an 
        internationally competitive workforce;
            ``(3) the acquisition and use of technology in education 
        throughout the United States has been inhibited by--
                    ``(A) the absence of Federal leadership;
                    ``(B) the inability of many State and local 
                educational agencies to invest in and support needed 
                technologies;
                    ``(C) the limited exposure of students and teachers 
                to the power of technology as a cost-effective tool to 
                improve student learning and achievement;
                    ``(D) the lack of appropriate electrical and 
                telephone connections in the classroom; and
                    ``(E) the limited availability of appropriate 
                technology-enhanced curriculum, instruction, 
                professional development, and administrative support 
                resources and services in the educational marketplace;
            ``(4) policies at the Federal, State, and local levels 
        concerning technology in education must address disparities in 
        the availability of technology to different groups of students, 
        give priority to serving students in greatest need, and 
        recognize that educational telecommunications and technology 
        can address educational equalization concerns and school 
        restructuring needs by providing universal access to high-
        quality teaching and programs, particularly in urban and rural 
        areas;
            ``(5) the increasing use of new technologies and 
        telecommunications systems in business has increased the gap 
        between schooling and work force preparation, and underscores 
        the need for technology policies at the Federal, State, tribal, 
        and local levels that address preparation for school-to-work 
        transitions;
            ``(6) technology can enhance the ongoing professional 
        development of teachers and administrators by providing 
        constant access to updated research in teaching and learning by 
        means of telecommunications, and, through exposure to 
        technology advancements, keep teachers and administrators 
        excited and knowledgeable about unfolding opportunities for the 
        classroom;
            ``(7) planned and creative uses of technology, combined 
        with teachers adequately trained in the use of technology, can 
        reshape our Nation's traditional method of providing education 
        and empower teachers to create an environment in which students 
        are challenged through rigorous, rich classroom instruction 
        provided at a pace suited to each student's learning style, and 
        in which students have increased opportunities to develop 
        higher order thinking and technical skills;
            ``(8) schools need new ways of financing the acquisition 
        and maintenance of educational technology;
            ``(9) the needs for educational technology differ from 
        State to State;
            ``(10) technology can provide students, parents, teachers, 
        other education professionals, communities, and industry with 
        increased opportunities for partnerships and with increased 
        access to information, instruction, and educational services in 
        schools and other settings, including homes, libraries, 
        preschool and child-care facilities, adult and family education 
        programs, and postsecondary institutions;
            ``(11) the Department, consistent with the overall national 
        technology policy established by the President, must assume a 
        vital leadership and coordinating role in developing the 
        national vision and strategy to infuse advanced technology 
        throughout all educational programs;
            ``(12) Federal support can ease the burden at the State and 
        local levels by enabling the acquisition of advanced technology 
        and initiating the development of teacher training and support 
        as well as new educational products;
            ``(13) leadership at the Federal level should consider 
        guidelines to ensure that educational technology is accessible 
        to all users with maximum interoperability nationwide;
            ``(14) the rapidly changing nature of technology requires 
        coordination and flexibility in Federal leadership; and
            ``(15) technology has the potential to assist and support 
        the improvement of teaching and learning in schools and other 
        settings.

``SEC. 10112. STATEMENT OF PURPOSE.

    ``The purpose of this part is to support a comprehensive system for 
the acquisition and use by elementary and secondary schools in the 
United States of technology and technology-enhanced curricula, 
instruction, and administrative support resources and services to 
improve the delivery of educational services. Such system shall 
include--
            ``(1) national leadership with respect to the need for, and 
        the provision of, appropriate technology-enhanced curriculum, 
        instruction, and administrative programs to improve learning in 
        the United States, and to promote equal access for all students 
        to educational opportunities in order to achieve the National 
        Education Goals by the year 2000;
            ``(2) funding mechanisms which will support the 
        development, interconnection, implementation, improvement, and 
        maintenance of an effective educational technology 
        infrastructure, including activities undertaken by State and 
        local educational agencies to promote and provide equipment, 
        training for teachers and school library and media personnel, 
        and technical support;
            ``(3) support for technical assistance, professional 
        development, information and resource dissemination, in order 
        to help States, local educational agencies, teachers, school 
        library and media personnel, and administrators successfully 
        integrate technology into kindergarten through 12th grade 
        classrooms and library media centers;
            ``(4) support for the development of educational and 
        instructional programming in core subject areas, which shall 
        address the National Education Goals;
            ``(5) strengthening and building upon, but not duplicating, 
        existing telecommunications infrastructures dedicated to 
        educational purposes;
            ``(6) development and evaluation of new and emerging 
        educational technologies, telecommunications networks, and 
        state-of-the-art educational technology products that promote 
        the use of advanced technologies in the classroom and school 
        library media center;
            ``(7) assessment data regarding state-of-the-art uses of 
        technologies in United States education upon which commercial 
        and noncommercial telecommunications entities, and governments 
        can rely for decisionmaking about the need for, and provision 
        of, appropriate technologies for education in the United 
        States;
            ``(8) ensuring that uses of educational technology are 
        consistent with the overall national technology policy 
        established by the President, and ensuring that Federal 
        technology-related policies and programs will facilitate the 
        use of technology in education;
            ``(9) ensuring that activities supported under this part 
        will form the basis for sound State and local decisions about 
        investing in, sustaining, and expanding uses of technology in 
        education;
            ``(10) establishing working guidelines to ensure maximum 
        interoperability nationwide and ease of access for the emerging 
        technologies so that no school system will be excluded from the 
        technological revolution;
            ``(11) ensuring that, as technological advances are made, 
        the educational uses of these advances are considered and their 
        applications are developed; and
            ``(12) encouragement of collaborative relationships among 
        the State agency for higher education, the State library 
        administrative agency, the State telecommunications agency, and 
        the State educational agency, in the area of technology support 
        to strengthen the system of education.

``SEC. 10113. DEFINITIONS.

    ``For purposes of this title--
            ``(1) the term `adult education' has the same meaning given 
        such term by section 203 of the Adult Education and Family 
        Literacy Act;
            ``(2) the term `all students' means students from a broad 
        range of backgrounds and circumstances, including disadvantaged 
        students, students with diverse racial, ethnic, and cultural 
        backgrounds, students with disabilities, students with limited 
        English proficiency, students who have dropped out of school, 
        and academically talented students;
            ``(3) the term `information infrastructure' means a network 
        of communication systems designed to exchange information among 
        all citizens and residents of the United States;
            ``(4) the term `instructional programming' means the full 
        range of audio and video data, text, graphics, or additional 
        state-of-the-art communications, including multimedia based 
        resources distributed through interactive, command and control, 
        or passive methods for the purpose of education and 
instruction;
            ``(5) the terms `interoperable' and `interoperability' mean 
        the ability to exchange easily data with, and connect to, other 
        hardware and software in order to provide the greatest 
        accessibility for all students and other users;
            ``(6) the term `Office' means the Office of Educational 
        Technology;
            ``(7) the term `public telecommunications entity' has the 
        same meaning given to such term by section 397(12) of the 
        Communications Act of 1934;
            ``(8) the term `regional educational laboratory' means a 
        regional educational laboratory supported under section 941(h) 
        of the Educational, Research, Development, Dissemination, and 
        Improvement Act of 1994;
            ``(9) the term `State educational agency' includes the 
        Bureau of Indian Affairs for purposes of serving schools funded 
        by the Bureau of Indian Affairs in accordance with this part;
            ``(10) the term `State library administrative agency' has 
        the same meaning given to such term in section 3 of the Library 
        Services and Construction Act; and
            ``(11) the term `technology' means state-of-the-art 
        technology products and services, such as closed circuit 
        television systems, educational television and radio programs 
        and services, cable television, satellite, copper and fiber 
        optic transmission, computer hardware and software, video and 
        audio laser and CD-ROM discs, and video and audio tapes.

``SEC. 10114. AUTHORIZATION OF APPROPRIATIONS; FUNDING RULE.

    ``(a) Authorization of Appropriations.--
            ``(1) Subparts 1, 2, and 3.--There are authorized to be 
        appropriated $200,000,000 for fiscal year 2002 and such sums as 
        may be necessary for each of the four succeeding fiscal years 
        to carry out subparts 1, 2, and 3, of which--
                    ``(A)(i) $3,000,000 shall be available to carry out 
                subpart 1 (National Programs for Technology in 
                Education) for any such year for which the amount 
                appropriated under this subsection is less than 
                $75,000,000; and
                    ``(ii) $5,000,000 shall be available to carry out 
                subpart 1 for any such year for which the amount 
                appropriated under this subsection is equal to or 
                greater than $75,000,000;
                    ``(B) $10,000,000 shall be available to carry out 
                subpart 3 (Regional Technical Support and Professional 
                Development) for each such year; and
                    ``(C) the remainder shall be available to carry out 
                subpart 2 (State and Local Programs for School 
                Technology Resources) for each such year.
            ``(2) Subpart 4.--For the purpose of carrying out subpart 
        4, there are authorized to be appropriated $50,000,000 for 
        fiscal year 2001 and such sums as may be necessary for each of 
        the four succeeding fiscal years.
    ``(b) Funding Rule.--
            ``(1) Appropriations of less than $75,000,000.--For any 
        fiscal year for which the amount appropriated under subsection 
        (a)(1) is less than $75,000,000, from the remainder of funds 
        made available under subsection (a)(1)(C) the Secretary shall 
        award grants for the National Challenge Grants in accordance 
        with section 10136.
            ``(2) Appropriations equal to or greater than 
        $75,000,000.--For any fiscal year for which the amount 
        appropriated under subsection (a)(1) is equal to or greater 
        than $75,000,000, from the remainder of funds made available 
        under subsection (a)(1)(C) the Secretary shall award grants to 
        State educational agencies from allotments under section 10131, 
        except that the Secretary may reserve, from such remainder, 
        such funds as the Secretary determines necessary to meet 
        outstanding obligations for such fiscal year to continue the 
        National Challenge Grants for Technology awarded under section 
        10136.

``SEC. 10115. LIMITATION ON COSTS.

    ``Not more than 5 percent of the funds under this part that are 
made available to a recipient of funds under this part for any fiscal 
year may be used by such recipient for administrative costs or 
technical assistance.

       ``Subpart 1--National Programs for Technology in Education

``SEC. 10121. NATIONAL LONG-RANGE TECHNOLOGY PLAN.

    ``(a) In General.--The Secretary shall develop and publish not 
later than 12 months after the date of the enactment of the Education 
Reform Act, and update when the Secretary determines appropriate, a 
national long-range plan that supports the overall national technology 
policy and carries out the purposes of this part.
    ``(b) Plan Requirements.--The Secretary shall--
            ``(1) develop the national long-range plan in consultation 
        with other Federal departments or agencies, State and local 
        education practitioners and policymakers, experts in technology 
        and the applications of technology to education, 
        representatives of distance learning consortia, representatives 
        of telecommunications partnerships receiving assistance under 
        the Star Schools Act, and providers of technology services and 
        products;
            ``(2) transmit such plan to the President and to the 
        appropriate committees of the Congress; and
            ``(3) publish such plan in a form that is readily 
        accessible to the public.
    ``(c) Contents of the Plan.--The national long-range plan shall 
describe the Secretary's activities to promote the purposes of this 
title, including--
            ``(1) how the Secretary will encourage the effective use of 
        technology to provide all students the opportunity to achieve 
        State content standards and State student performance 
        standards, especially through programs administered by the 
        Department;
            ``(2) joint activities in support of the overall national 
        technology policy with other Federal departments or agencies, 
        such as the Office of Science and Technology Policy, the 
        National Endowment for the Humanities, the National Endowment 
for the Arts, the National Institute for Literacy, the National 
Aeronautics and Space Administration, the National Science Foundation, 
the Bureau of Indian Affairs, and the Departments of Commerce, Energy, 
Health and Human Services, and Labor--
                    ``(A) to promote the use of technology in 
                education, training, and lifelong learning, including 
                plans for the educational uses of a national 
                information infrastructure; and
                    ``(B) to ensure that the policies and programs of 
                such departments or agencies facilitate the use of 
                technology for educational purposes, to the extent 
                feasible;
            ``(3) how the Secretary will work with educators, State and 
        local educational agencies, and appropriate representatives of 
        the private sector to facilitate the effective use of 
        technology in education;
            ``(4) how the Secretary will promote--
                    ``(A) higher achievement of all students through 
                the integration of technology into the curriculum;
                    ``(B) increased access to the benefits of 
                technology for teaching and learning for schools  with 
a high number or percentage of children from low-income families;
                    ``(C) the use of technology to assist in the 
                implementation of State systemic reform strategies;
                    ``(D) the application of technological advances to 
                use in education;
                    ``(E) increased access to high quality adult and 
                family education services through the use of technology 
                for instruction and professional development; and
                    ``(F) increased opportunities for the professional 
                development of teachers in the use of new technologies;
            ``(5) how the Secretary will determine, in consultation 
        with appropriate individuals, organizations, industries, and 
        agencies, the feasibility and desirability of establishing 
        guidelines to facilitate an easy exchange of data and effective 
        use of technology in education;
            ``(6) how the Secretary will promote the exchange of 
        information among States, local educational agencies, schools, 
        consortia, and other entities concerning the effective use of 
        technology in education;
            ``(7) how the Secretary will utilize the outcomes of the 
        evaluation undertaken pursuant to section 10123 to promote the 
        purposes of this part; and
            ``(8) the Secretary's long-range measurable goals and 
        objectives relating to the purposes of this part.

``SEC. 10122. FEDERAL LEADERSHIP.

    ``(a) Program Authorized.--In order to provide Federal leadership 
in promoting the use of technology in education, the Secretary, in 
consultation with the National Science Foundation, the Department of 
Commerce, the United States National Commission on Libraries and 
Information Sciences, and other appropriate Federal agencies, may carry 
out activities designed to achieve the purposes of this part directly 
or by awarding grants or contracts competitively and pursuant to a peer 
review process to, or entering into contracts with, State educational 
agencies, local educational agencies, institutions of higher education, 
or other public and private nonprofit or for-profit agencies and 
organizations.
    ``(b) Assistance.--
            ``(1) In general.--The Secretary shall provide assistance 
        to the States to enable such States to plan effectively for the 
        use of technology in all schools throughout the State in 
        accordance with the purpose and requirements of section 317 of 
        the Goals 2000: Educate America Act.
            ``(2) Other federal agencies.--For the purpose of carrying 
        out coordinated or joint activities consistent with the 
        purposes of this part, the Secretary may accept funds from, and 
        transfer funds to, other Federal agencies.
    ``(c) Uses of Funds.--The Secretary shall use funds made available 
to carry out this section for activities designed to carry out the 
purpose of this part, such as--
            ``(1) providing assistance to technical assistance 
        providers to enable such providers to improve substantially the 
        services such providers offer to educators regarding the uses 
        of technology for education, including professional 
        development;
            ``(2) providing development grants to technical assistance 
        providers, to enable such providers to improve substantially 
        the services such providers offer to educators on the 
        educational uses of technology, including professional 
        development;
            ``(3) consulting with representatives of industry, 
        elementary and secondary education, higher education, adult and 
        family education, and appropriate experts in technology and 
        educational applications of technology in carrying out 
activities under this subpart;
            ``(4) research on, and the development of, guidelines to 
        facilitate maximum interoperability, efficiency and easy 
        exchange of data for effective use of technology in education;
            ``(5) research on, and the development of, applications for 
        education of the most advanced and newly emerging technologies 
        which research shall be coordinated, when appropriate, with the 
        Office of Educational Research and Improvement, and other 
        Federal agencies;
            ``(6) the development, demonstration, and evaluation of the 
        educational aspects of high performance computing and 
        communications technologies and of the national information 
        infrastructure, in providing professional development for 
        teachers, school librarians, and other educators; enriching 
        academic curricula for elementary and secondary schools; 
        facilitating communications among schools, local educational 
        agencies, libraries, parents, and local communities and in 
        other such areas as the Secretary deems appropriate;
            ``(7) the development, demonstration, and evaluation of 
        applications of existing technology in preschool education, 
        elementary and secondary education, training and lifelong 
        learning, and professional development of educational 
        personnel;
            ``(8) the development and evaluation of software and other 
        products, including multimedia television programming, that 
        incorporate advances in technology and help achieve the 
        National Education Goals, State content standards and State 
        student performance standards;
            ``(9) the development, demonstration, and evaluation of 
        model strategies for preparing teachers and other personnel to 
        use technology effectively to improve teaching and learning;
            ``(10) the development of model programs that demonstrate 
        the educational effectiveness of technology in urban and rural 
        areas and economically distressed communities;
            ``(11) research on, and the evaluation of, the 
        effectiveness and benefits of technology in education;
            ``(12) a biennial assessment of, and report to the public 
        regarding, the uses of technology in elementary and secondary 
        education throughout the United States upon which private 
        businesses and Federal, State, tribal, and local governments 
        may rely for decisionmaking about the need for, and provision 
        of, appropriate technologies in schools, which assessment and 
        report shall use, to the extent possible, existing information 
        and resources;
            ``(13) conferences on, and dissemination of information 
        regarding, the uses of technology in education;
            ``(14) the development of model strategies to promote 
        gender equity concerning access to, and the use of, technology 
        in the classroom;
            ``(15) encouraging collaboration between the Department and 
        other Federal agencies in the development, implementation, 
        evaluation and funding of applications of technology for 
        education, as appropriate; and
            ``(16) such other activities as the Secretary determines 
        will meet the purposes of this subpart.
    ``(d) Non-Federal Share.--
            ``(1) In general.--Subject to paragraphs (2) and (3), the 
        Secretary may require any recipient of a grant or contract 
        under this section to share in the cost of the activities 
        assisted under such grant or contract, which non-Federal share 
        shall be announced through a notice in the Federal Register and 
        may be in the form of cash or in-kind contributions, fairly 
        valued.
            ``(2) Increase.--The Secretary may increase the non-Federal 
        share that is required of a recipient of a grant or contract 
        under this section after the first year such recipient receives 
        funds under such grant or contract.
            ``(3) Maximum.--The non-Federal share required under this 
        section shall not exceed 50 percent of the cost of the 
        activities assisted pursuant to a grant or contract under this 
        section.

``SEC. 10123. STUDY, EVALUATION AND REPORT OF FUNDING ALTERNATIVES.

    ``The Secretary, through the Office of Educational Technology, 
shall conduct a study to evaluate, and report to the Congress on, the 
feasibility of several alternative models for providing sustained and 
adequate funding for schools throughout the United States so that such 
schools are able to acquire and maintain technology-enhanced 
curriculum, instruction, and administrative support resources and 
services. Such report shall be submitted to the Congress not later than 
one year after the date of enactment of the Education Reform Act.

 ``Subpart 2--State and Local Programs for School Technology Resources

``SEC. 10131. ALLOTMENT AND REALLOTMENT.

    ``(a) Allotment.--
            ``(1) In general.--Except as provided in paragraph (2), 
        each State educational agency shall be eligible to receive a 
        grant under this subpart for a fiscal year in an amount which 
        bears the same relationship to the amount made available under 
        section 10114(a)(1)(C) for such year as the amount such State 
        received under part A of title I for such year bears to the 
        amount received for such year under such part by all States.
            ``(2) Minimum.--No State educational agency shall be 
        eligible to receive a grant under paragraph (1) in any fiscal 
        year in an amount which is less than one-half of one percent of 
        the amount made available under section 10115(a)(1)(C) for such 
        year.
    ``(b) Reallotment of Unused Funds.--
            ``(1) In general.--The amount of any State educational 
        agency's allotment under subsection (a) for any fiscal year 
        which the Secretary determines will not be required for such 
        fiscal year to carry out this subpart shall be available for 
        reallotment from time to time, on such dates during such year 
        as the Secretary may determine, to other State educational 
        agencies in proportion to the original allotments to such State 
        educational agencies under subsection (a) for such year, but 
with such proportionate amount for any of such other State educational 
agencies being reduced to the extent such amount exceeds the sum the 
Secretary estimates such State needs and will be able to use for such 
year.
            ``(2) Other reallotments.--The total of reductions under 
        paragraph (1) shall be similarly reallotted among the State 
        educational agencies whose proportionate amounts were not so 
        reduced. Any amounts reallotted to a State educational agency 
        under this subsection during a year shall be deemed a subpart 
        of such agencies allotment under subsection (a) for such year.

``SEC. 10132. SCHOOL TECHNOLOGY RESOURCE GRANTS.

    ``(a) Grants to States.--
            ``(1) In general.--From amounts made available under 
        section 10131, the Secretary, through the Office of Educational 
        Technology, shall award grants to State educational agencies 
        having applications approved under section 10133.
            ``(2) Use of grants.--(A) Each State educational agency 
        receiving a grant under paragraph (1) shall use such grant 
        funds to award grants, on a competitive basis, to local 
        educational agencies to enable such local educational agencies 
        to carry out the activities described in section 10134.
            ``(B) In awarding grants under subparagraph (A), each State 
        educational agency shall ensure that each such grant is of 
        sufficient duration, and of sufficient size, scope, and 
        quality, to carry out the purposes of this part effectively.
    ``(b) Technical Assistance.--Each State educational agency 
receiving a grant under paragraph (1) shall--
            ``(1) identify the local educational agencies served by the 
        State educational agency that--
                    ``(A) have the highest number or percentage of 
                children in poverty; and
                    ``(B) demonstrate to such State educational agency 
                the greatest need for technical assistance in 
                developing the application under section 10133; and
            ``(2) offer such technical assistance to such local 
        educational agencies.

``SEC. 10133. STATE APPLICATION.

    ``To receive funds under this subpart, each State educational 
agency shall submit a statewide educational technology plan which may 
include plans submitted under the Goals 2000: Educate America Act or 
other statewide technology plans which meet the requirements of this 
section. Such application shall be submitted to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may reasonably require. Each such application shall contain a 
systemic statewide plan that--
            ``(1) outlines long-term strategies for financing 
        technology education in the State and describes how business, 
        industry, and other public and private agencies, including 
        libraries, library literacy programs, and institutions of 
        higher education, can participate in the implementation, 
        ongoing planning, and support of the plan; and
            ``(2) meets such other criteria as the Secretary may 
        establish in order to enable such agency to provide assistance 
        to local educational agencies that have the highest numbers or 
        percentages of children in poverty and demonstrate the greatest 
        need for technology, in order to enable such local educational 
        agencies, for the benefit of school sites served by such local 
        educational agencies, to carry out activities such as--
                    ``(A) purchasing quality technology resources;
                    ``(B) installing various linkages necessary to 
                acquire connectivity;
                    ``(C) integrating technology into the curriculum in 
                order to improve student learning and achievement;
                    ``(D) providing teachers and library media 
                personnel with training or access to training;
                    ``(E) providing administrative and technical 
                support and services that improve student learning 
                through enriched technology-enhanced resources, 
                including library media resources;
                    ``(F) promoting in individual schools the sharing, 
                distribution, and application of educational 
                technologies with demonstrated effectiveness;
                    ``(G) assisting schools in promoting parent 
                involvement;
                    ``(H) assisting the community in providing 
                literacy-related services;
                    ``(I) establishing partnerships with private or 
                public educational providers or other entities to serve 
                the needs of children in poverty; and
                    ``(J) providing assurances that financial 
                assistance provided under this part shall supplement, 
                not supplant, State and local funds.

``SEC. 10134. LOCAL USES OF FUNDS.

    ``Each local educational agency, to the extent possible, shall use 
the funds made available under section 10132(a)(2) for--
            ``(1) developing, adapting, or expanding existing and new 
        applications of technology to support the school reform effort;
            ``(2) funding projects of sufficient size and scope to 
        improve student learning and, as appropriate, support 
        professional development, and provide administrative support;
            ``(3) acquiring connectivity linkages, resources, and 
        services, including the acquisition of hardware and software, 
        for use by teachers, students and school library media 
        personnel in the classroom or in school library media centers, 
        in order to improve student learning by supporting the 
        instructional program offered by such agency to ensure that 
        students in schools will have meaningful access on a regular 
        basis to such linkages, resources and services;
            ``(4) providing ongoing professional development in the 
        integration of quality educational technologies into school 
        curriculum and long-term planning for implementing educational 
        technologies;
            ``(5) acquiring connectivity with wide area networks for 
        purposes of accessing information and educational programming 
sources, particularly with institutions of higher education and public 
libraries; and
            ``(6) providing educational services for adults and 
        families.

``SEC. 10135. LOCAL APPLICATIONS.

    ``Each local educational agency desiring assistance from a State 
educational agency under section 10132(a)(2) shall submit an 
application, consistent with the objectives of the systemic statewide 
plan, to the State educational agency at such time, in such manner and 
accompanied by such information as the State educational agency may 
reasonably require. Such application, at a minimum, shall--
            ``(1) include a strategic, long-range (three- to five-
        year), plan that includes--
                    ``(A) a description of the type of technologies to 
                be acquired, including specific provisions for 
                interoperability among components of such technologies 
                and, to the extent practicable, with existing 
                technologies;
                    ``(B) an explanation of how the acquired 
                technologies will be integrated into the curriculum to 
                help the local educational agency enhance teaching, 
                training, and student achievement;
                    ``(C) an explanation of how programs will be 
                developed in collaboration with existing adult literacy 
                services providers to maximize the use of such 
                technologies;
                    ``(D)(i) a description of how the local educational 
                agency will ensure ongoing, sustained professional 
                development for teachers, administrators, and school 
                library media personnel served by the local educational 
                agency to further the use of technology in the 
                classroom or library media center; and
                    ``(ii) a list of the source or sources of ongoing 
                training and technical assistance available to schools, 
                teachers and administrators served by the local 
                educational agency, such as State technology offices, 
                intermediate educational support units, regional 
                educational laboratories or institutions of higher 
                education;
                    ``(E) a description of the supporting resources, 
                such as services, software and print resources, which 
                will be acquired to ensure successful and effective use 
                of technologies acquired under this section;
                    ``(F) the projected timetable for implementing such 
                plan in schools;
                    ``(G) the projected cost of technologies to be 
                acquired and related expenses needed to implement such 
                plan; and
                    ``(H) a description of how the local educational 
                agency will coordinate the technology provided pursuant 
                to this subpart with other grant funds available for 
                technology from State and local sources;
            ``(2) describe how the local educational agency will 
        involve parents, public libraries, business leaders and 
        community leaders in the development of such plan;
            ``(3) describe how the acquired instructionally based 
        technologies will help the local educational agency--
                    ``(A) promote equity in education in order to 
                support State content standards and State student 
                performance standards that may be developed; and
                    ``(B) provide access for teachers, parents and 
                students to the best teaching practices and curriculum 
                resources through technology; and
            ``(4) describe a process for the ongoing evaluation of how 
        technologies acquired under this section--
                    ``(A) will be integrated into the school 
                curriculum; and
                    ``(B) will affect student achievement and progress 
                toward meeting the National Education Goals and any 
                challenging State content standards and State student 
                performance standards that may be developed.
    ``(d) Formation of Consortia.--A local educational agency for any 
fiscal year may apply for financial assistance as part of a consortium 
with other local educational agencies, institutions of higher 
education, intermediate educational units, libraries, or other 
educational entities appropriate to provide local programs. The State 
educational agency may assist in the formation of consortia among local 
educational agencies, providers of educational services for adults and 
families, institutions of higher education, intermediate educational 
units, libraries, or other appropriate educational entities to provide 
services for the teachers and students in a local educational agency at 
the request of such local educational agency.
    ``(e) Coordination of Application Requirements.--If a local 
educational agency submitting an application for assistance under this 
section has developed a comprehensive education improvement plan, in 
conjunction with requirements under this Act or the Goals 2000: Educate 
America Act, the State educational agency may approve such plan, or a 
component of such plan, notwithstanding the requirements of subsection 
(e) if the State educational agency determines that such approval would 
further the purposes of this subpart.

``SEC. 10136. NATIONAL CHALLENGE GRANTS FOR TECHNOLOGY IN EDUCATION.

    ``(a) Grants Authorized.--
            ``(1) In general.--From amounts made available under 
        section 10115(b)(1) for any fiscal year the Secretary is 
        authorized to award grants, on a competitive basis, to 
        consortia having applications approved under subsection (d), 
        which consortia shall include at least one local educational 
        agency with a high percentage or number of children living 
        below the poverty line and may include other local educational 
        agencies, State educational agencies, institutions of higher 
        education, businesses, academic content experts, software 
        designers, museums, libraries, or other appropriate entities.
            ``(2) Duration.--Grants under this section shall be awarded 
        for a period of 5 years.
    ``(b) Use of Grants.--Grants awarded under subsection (a) shall be 
used for activities similar to the activities described in section 
10134.
    ``(c) Priority.--In awarding grants under this section, the 
Secretary shall give priority to consortia which demonstrate in the 
application submitted under subsection (d) that--
            ``(1) the project for which assistance is sought is 
        designed to serve areas with a high number or percentage of 
        disadvantaged students or the greatest need for educational 
        technology;
            ``(2) the project will directly benefit students by, for 
        example, integrating the acquired technologies into curriculum 
        to help the local educational agency enhance teaching, 
        training, and student achievement;
            ``(3) the project will ensure ongoing, sustained 
        professional development for teachers, administrators, and 
        school library media personnel served by the local educational 
        agency to further the use of technology in the classroom or 
        library media center;
            ``(4) the project will ensure successful, effective, and 
        sustainable use of technologies acquired under this subsection; 
        and
            ``(5) members of the consortia or other appropriate 
        entities will contribute substantial financial and other 
        resources to achieve the goals of the project.
    ``(d) Application.--Each local educational agency desiring a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may reasonably require.

``SEC. 10137. FEDERAL ADMINISTRATION.

    ``(a) Evaluation Procedures.--The Secretary shall develop 
procedures for State and local evaluations of the programs under this 
subpart.
    ``(b) Evaluation Summary.--The Secretary shall submit to the 
Congress four years after the enactment of the Education Reform Act a 
summary of the State evaluations of programs under this subpart in 
accordance with the provisions of section 14701.

  ``Subpart 3--Regional Technical Support and Professional Development

``SEC. 10141. REGIONAL TECHNICAL SUPPORT AND PROFESSIONAL DEVELOPMENT.

    ``(a) Grants Authorized.--
            ``(1) Authority.--The Secretary, through the Office of 
        Educational Technology, shall make grants in accordance with 
        the provisions of this section, to regional entities such as 
        the Eisenhower Mathematics and Science Regional Consortia under 
        part C of title XIII, the regional education laboratories, the 
        comprehensive regional assistance centers, or such other 
        regional entities as may be designated or established by the 
        Secretary. In awarding grants under this section, the Secretary 
        shall give priority to such consortia and shall ensure that 
        each geographic region of the United States shall be served by 
        such a consortium.
            ``(2) Requirements.--Each consortium receiving a grant 
        under this section shall--
                    ``(A) be composed of State educational agencies, 
                institutions of higher education, nonprofit 
                organizations, or a combination thereof;
                    ``(B) in cooperation with State and local 
                educational agencies, develop a regional program that 
                addresses professional development, technical 
                assistance, and information resource dissemination, 
                with special emphasis on meeting the documented needs 
                of educators and learners in the region; and
                    ``(C) foster regional cooperation and resource and 
                coursework sharing.
    ``(b) Functions.--
            ``(1) Technical assistance.--Each consortium receiving a 
        grant under this section shall, to the extent practicable--
                    ``(A) collaborate with State educational agencies 
                and local educational agencies requesting 
                collaboration, particularly in the development of 
                strategies for assisting those schools with the highest 
                numbers or percentages of disadvantaged students with 
                little or no access to technology in the classroom;
                    ``(B) provide information, in coordination with 
                information available from the Secretary, to State 
                educational agencies, local educational agencies, 
                schools and adult education programs, on the types and 
                features of various educational technology equipment 
                and software available, evaluate and make 
                recommendations on equipment and software that support 
                the National Education Goals and are suited for a 
                school's particular needs, and compile and share 
                information regarding creative and effective 
                applications of technology in the classroom and school 
                library media centers in order to support the purposes 
                of this part;
                    ``(C) collaborate with such State educational 
                agencies, local educational agencies, or schools 
                requesting to participate in the tailoring of software 
                programs and other supporting materials to meet 
                challenging State content standards or challenging 
                State student performance standards that may be 
                developed; and
                    ``(D) provide technical assistance to facilitate 
                use of the electronic dissemination networks by State 
                and local educational agencies and schools throughout 
                the region.
            ``(2) Professional development.--Each consortium receiving 
        a grant under this section shall, to the extent practicable--
                    ``(A) develop and implement, in collaboration with 
                State educational agencies and institutions of higher 
                education, technology-specific, ongoing professional 
                development, such as--
                            ``(i) intensive school year and summer 
                        workshops that use teachers, school librarians, 
                        and school library personnel to train other 
                        teachers, school librarians, and other school 
                        library media personnel; and
                            ``(ii) distance professional development, 
                        including--
                                    ``(I) interactive training tele-
                                courses using researchers, educators, 
                                and telecommunications personnel who 
                                have experience in developing, 
                                implementing, or operating educational 
                                and instructional technology as a 
                                learning tool;
                                    ``(II) onsite courses teaching 
                                teachers to use educational and 
                                instructional technology and to develop 
                                their own instructional materials for 
                                effectively incorporating technology 
                                and programming in their own 
                                classrooms;
                                    ``(III) methods for successful 
                                integration of instructional technology 
                                into the curriculum in order to improve 
                                student learning and achievement;
                                    ``(IV) video conferences and 
                                seminars which offer professional 
                                development through peer interaction 
                                with experts as well as other teachers 
                                using technologies in their classrooms; 
                                and
                                    ``(V) mobile education technology 
                                and training resources;
                    ``(B) develop training resources that--
                            ``(i) are relevant to the needs of the 
                        region and schools within the region;
                            ``(ii) are relevant to the needs of adult 
                        literacy staff and volunteers, including onsite 
                        courses on how to--
                                    ``(I) use instructional technology; 
                                and
                                    ``(II) develop instructional 
                                materials for adult learning; and
                            ``(iii) are aligned with the needs of 
                        teachers and administrators in the region;
                    ``(C) establish a repository of professional 
                development and technical assistance resources;
                    ``(D) identify and link technical assistance 
                providers to State and local educational agencies, as 
                needed;
                    ``(E) ensure that training, professional 
                development, and technical assistance meet the needs of 
                educators, parents, and students served by the region;
                    ``(F) assist colleges and universities within the 
                region to develop and implement preservice training 
                programs for students enrolled in teacher education 
                programs; and
                    ``(G) assist local educational agencies and schools 
                in working with community members and parents to 
                develop support from communities and parents for 
                educational technology programs and projects.
            ``(3) Information and resource dissemination.--Each 
        consortium receiving a grant under this section shall, to the 
        extent practicable--
                    ``(A) assist State and local educational agencies 
                in the identification and procurement of financial, 
                technological and human resources needed to implement 
                technology plans;
                    ``(B) provide outreach and, at the request of a 
                State or local educational agency, work with such 
                agency to assist in the development and validation of 
                instructionally based technology education resources; 
                and
                    ``(C) coordinate activities and establish 
                partnerships with organizations and institutions of 
                higher education that represent the interests of the 
                region as such interests pertain to the application of 
                technology in teaching, learning, instructional 
                management, dissemination, collection and distribution 
                of educational statistics, and the transfer of student 
                information.
            ``(4) Coordination.--Each consortium receiving a grant 
        under this section shall work collaboratively, and coordinate 
        the services the consortium provides, with appropriate regional 
        and other entities assisted in whole or in part by the 
        Department.

                    ``Subpart 4--Product Development

``SEC. 10151. EDUCATIONAL TECHNOLOGY PRODUCT DEVELOPMENT.

    ``(a) Purpose.--It is the purpose of this subpart to--
            ``(1) support development of curriculum-based learning 
        resources using state-of-the-art technologies and techniques 
        designed to improve student learning; and
            ``(2) support development of long-term comprehensive 
        instructional programming and associated support resources that 
        ensure maximum access by all educational institutions.
    ``(b) Federal Assistance Authorized.--
            ``(1) In general.--The Secretary shall provide assistance, 
        on a competitive basis, to eligible consortia to enable such 
        entities to develop, produce, and distribute state-of-the-art 
        technology-enhanced instructional resources and programming for 
        use in the classroom or to support professional development for 
        teachers.
            ``(2) Grants and loans authorized.--In carrying out the 
        purposes of this section, the Secretary is authorized to pay 
        the Federal share of the cost of the development, production, 
        and distribution of state-of-the-art technology enhanced 
        instructional resources and programming--
                    ``(A) by awarding grants to, or entering into 
                contracts or cooperative agreements with, eligible 
                consortia; or
                    ``(B) by awarding loans to eligible consortia 
                which--
                            ``(i) shall be secured in such manner and 
                        be repaid within such period, not exceeding 20 
                        years, as may be determined by the Secretary;
                            ``(ii) shall bear interest at a rate 
                        determined by the Secretary which shall be not 
                        more than the total of one-quarter of 1 percent 
                        per annum added to the rate of interest paid by 
                        the Secretary on funds obtained from the 
                        Secretary of the Treasury; and
                            ``(iii) may be forgiven by the Secretary, 
                        in an amount not to exceed 25 percent of the 
                        total loan, under such terms and conditions as 
                        the Secretary may consider appropriate.
            ``(3) Matching requirement.--The Secretary may require any 
        recipient of a grant or contract under this subpart to share in 
        the cost of the activities assisted under such grant or 
        contract, which non-Federal share shall be announced through a 
        notice in the Federal Register and may be in the form of cash 
        or in-kind contributions, fairly valued.
            ``(4) Eligible consortium.--For the purpose of this 
        subsection, the term `eligible consortium' means a consortium--
                    ``(A) that shall include--
                            ``(i) a State or local educational agency; 
                        and
                            ``(ii) a business, industry, or 
                        telecommunications entity; and
                    ``(B) that may include--
                            ``(i) a public or private nonprofit 
                        organization; or
                            ``(ii) a postsecondary institution.
            ``(5) Priorities.--In awarding assistance under this 
        section, the Secretary shall give priority to applications 
        describing programs or systems that--
                    ``(A) promote the acquisition of higher-order 
                thinking skills and promise to raise the achievement 
                levels of all students, particularly disadvantaged 
                students who are not realizing their potential;
                    ``(B) are aligned with challenging State content 
                standards and State and local curriculum frameworks;
                    ``(C) may be adapted and applied nationally at a 
                reasonable cost over a broad technology platform;
                    ``(D) convert technology resources developed with 
                support from the Department of Defense and other 
                Federal agencies for effective use in the classroom;
                    ``(E) show promise of reducing the costs of 
                providing high-quality instruction;
                    ``(F) show promise of expanding access to high-
                quality instruction in content areas which would 
                otherwise not be available to students in rural and 
                urban communities or who are served by other 
                educational agencies with limited financial resources;
                    ``(G) are developed in consultation with classroom 
                teachers;
                    ``(H) are developed through consultation and 
                collaboration with appropriate education entities in 
                designing the product to ensure relevance to the 
                voluntary national content standards, the voluntary 
                national student performance standards and State 
                curriculum frameworks; and
                    ``(I) are developed so that the product can be 
                adapted for use by adults in need of literacy services, 
                including English as a second language and preparation 
                for a secondary school diploma or its recognized 
                equivalent.
            ``(6) Requirements for federal assistance.--Each eligible 
        consortium desiring Federal assistance under this section shall 
        submit an application to the Secretary at such time and in such 
        manner as the Secretary may prescribe. Each application shall 
        include--
                    ``(A) a description of how the product will improve 
                the achievement levels of students;
                    ``(B) a description of how the activities assisted 
                under this section will promote professional 
                development of teachers and administrators in the uses 
                and applications of the product, including the 
                development of training materials;
                    ``(C) a description of design, development, field 
                testing, evaluation, and distribution of products, 
                where appropriate;
                    ``(D) an assurance that the product shall 
                effectively serve a significant number or percentage of 
                economically disadvantaged students;
                    ``(E) plans for dissemination of products to a wide 
                audience of learners;
                    ``(F) a description of how the product can be 
                adapted for use by students with disabilities including 
                provisions for closed captioning or descriptive video, 
                where appropriate;
                    ``(G) a description of how ownership and rights to 
                the use and marketing of any product developed by the 
                consortium, including intellectual property rights, 
                will be allocated among consortium participants; and
                    ``(H) a description of the contributions, including 
                services and funds, to be made by each member of the 
                consortium, and how any revenues derived from the sale 
                of any product developed by the consortium shall be 
                distributed.
    ``(c) Consumer Report.--The Secretary shall provide for the 
independent evaluation of products developed under this section and 
shall disseminate information about products developed pursuant to 
provisions of this section to State and local educational agencies, and 
other organizations or individuals that the Secretary determines to be 
appropriate, through print and electronic media that are accessible to 
the education community at large.
    ``(d) Proceeds.--The Secretary shall not prohibit an eligible 
consortium or any of the members of such consortium from receiving 
financial benefits from the distribution of any products resulting from 
the assistance received under this section. Notwithstanding any other 
provision of law, any profits or royalties received by a State 
educational agency, local educational agency, or other nonprofit member 
of an eligible consortium receiving assistance under this section shall 
be used to support further development of curriculum-based learning 
resources, services, and programming or to provide access to such 
products for a wider audience.

                     ``PART B--STAR SCHOOLS PROGRAM

``SEC. 10201. SHORT TITLE.

    ``This part may be cited as the `Star Schools Act'.

``SEC. 10202. FINDINGS.

    ``The Congress finds that--
            ``(1) the Star Schools program has helped to encourage the 
        use of distance learning strategies to serve multi-State 
        regions primarily by means of satellite and broadcast 
        television;
            ``(2) in general, distance learning programs have been used 
        effectively to provide students in small, rural, and isolated 
        schools with courses and instruction, such as science and 
        foreign language instruction, that the local educational agency 
        is not otherwise able to provide; and
            ``(3) distance learning programs may also be used to--
                    ``(A) provide students of all ages in all types of 
                schools and educational settings with greater access to 
                high-quality instruction in the full range of core 
                academic subjects that will enable such students to 
                meet challenging, internationally competitive, 
                educational standards;
                    ``(B) expand professional development opportunities 
                for teachers;
                    ``(C) contribute to achievement of the National 
                Education Goals; and
                    ``(D) expand learning opportunities for everyone.

``SEC. 10203. PURPOSE.

    ``It is the purpose of this part to encourage improved instruction 
in mathematics, science, and foreign languages as well as other 
subjects, such as literacy skills and vocational education, and to 
serve underserved populations, including the disadvantaged, illiterate, 
limited-English proficient, and individuals with disabilities, through 
a star schools program under which grants are made to eligible 
telecommunication partnerships to enable such partnerships to--
            ``(1) develop, construct, acquire, maintain and operate 
        telecommunications audio and visual facilities and equipment;
            ``(2) develop and acquire educational and instructional 
        programming; and
            ``(3) obtain technical assistance for the use of such 
        facilities and instructional programming.

``SEC. 10204. GRANTS AUTHORIZED.

    ``(a) Authority.--The Secretary, through the Office of Educational 
Technology, is authorized to make grants, in accordance with the 
provisions of this part, to eligible entities to pay the Federal share 
of the cost of--
            ``(1) the development, construction, acquisition, 
        maintenance and operation of telecommunications facilities and 
        equipment;
            ``(2) the development and acquisition of live, interactive 
        instructional programming;
            ``(3) the development and acquisition of preservice and 
        inservice teacher training programs based on established 
        research regarding teacher-to-teacher mentoring, effective 
        skill transfer, and ongoing, in-class instruction;
            ``(4) the establishment of teleconferencing facilities and 
        resources for making interactive training available to 
        teachers;
            ``(5) obtaining technical assistance; and
            ``(6) the coordination of the design and connectivity of 
        telecommunications networks to reach the greatest number of 
        schools.
    ``(b) Duration.--
            ``(1) In general.--The Secretary shall award grants 
        pursuant to subsection (a) for a period of 5 years.
            ``(2) Renewal.--Grants awarded pursuant to subsection (a) 
        may be renewed for one additional three-year period.
    ``(c) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        $60,000,000 for fiscal year 2002, and such sums as may be 
        necessary for each of the four succeeding fiscal years, to 
        carry out this part.
            ``(2) Availability.--Funds appropriated pursuant to the 
        authority of subsection (a) shall remain available until 
        expended.
    ``(d) Limitations.--
            ``(1) In general.--A grant under this section shall not 
        exceed--
                    ``(A) five years in duration; and
                    ``(B) $10,000,000 in any one fiscal year.
            ``(2) Instructional programming.--Not less than 25 percent 
        of the funds available to the Secretary in any fiscal year 
        under this part shall be used for the cost of instructional 
        programming.
            ``(3) Special rule.--Not less than 50 percent of the funds 
        available in any fiscal year under this part shall be used for 
        the cost of facilities, equipment, teacher training or 
        retraining, technical assistance, or programming, for local 
        educational agencies which are eligible to receive asssistance 
        under part A of title I.
    ``(e) Federal Share.--
            ``(1) In general.--The Federal share of the cost of 
        projects funded under this section shall not exceed--
                    ``(A) 75 percent for the first and second years for 
                which an eligible telecommunications partnership 
                receives a grant under this part;
                    ``(B) 60 percent for the third and fourth such 
                years; and
                    ``(C) 50 percent for the fifth such year.
            ``(2) Reduction or waiver.--The Secretary may reduce or 
        waive the requirement of the non-Federal share under paragraph 
        (1) upon a showing of financial hardship.
    ``(f) Authority To Accept Funds From Other Agencies.--The Secretary 
is authorized to accept funds from other Federal departments or 
agencies to carry out the purposes of this section, including funds for 
the purchase of equipment.
    ``(g) Coordination.--The Department, the National Science 
Foundation, the Department of Agriculture, the Department of Commerce, 
and any other Federal department or agency operating a 
telecommunications network for educational purposes, shall coordinate 
the activities assisted under this part with the activities of such 
department or agency relating to a telecommunications network for 
educational purposes.
    ``(h) Closed Captioning and Descriptive Video.--Each entity 
receiving funds under this part is encouraged to provide--
            ``(1) closed captioning of the verbal content of such 
        program, where appropriate, to be broadcast by way of line 21 
        of the vertical blanking interval, or by way of comparable 
        successor technologies; and
            ``(2) descriptive video of the visual content of such 
        program, as appropriate.

``SEC. 10205. ELIGIBLE ENTITIES.

    ``(a) Eligible Entities.--
            ``(1) Required participation.--The Secretary may make a 
        grant under section 10204 to any eligible entity, if at least 
        one local educational agency is participating in the proposed 
        project.
            ``(2) Eligible entity.--For the purpose of this part, the 
        term `eligible entity' may include--
                    ``(A) a public agency or corporation established 
                for the purpose of developing and operating 
                telecommunications networks to enhance educational 
                opportunities provided by educational institutions, 
                teacher training centers, and other entities, except 
                that any such agency or corporation shall represent the 
                interests of elementary and secondary schools that are 
                eligible to participate in the program under part A of 
                title I; or
                    ``(B) a partnership that will provide 
                telecommunications services and which includes 3 or 
                more of the following entities, at least 1 of which 
                shall be an agency described in clause (i) or (ii):
                            ``(i) a local educational agency that 
                        serves a significant number of elementary and 
                        secondary schools that are eligible for 
                        assistance under part A of title I, or 
                        elementary and secondary schools operated or 
                        funded for Indian children by the Department of 
                        the Interior eligible under section 1121(b)(2);
                            ``(ii) a State educational agency;
                            ``(iii) adult and family education 
                        programs;
                            ``(iv) an institution of higher education 
                        or a State higher education agency;
                            ``(v) a teacher training center or academy 
                        that--
                                    ``(I) provides teacher pre-service 
                                and in-service training; and
                                    ``(II) receives Federal financial 
                                assistance or has been approved by a 
                                State agency;
                            ``(vi) (I) a public or private entity with 
                        experience and expertise in the planning and 
                        operation of a telecommunications network, 
                        including entities involved in 
                        telecommunications through satellite, cable, 
                        telephone, or computer; or
                            ``(II) a public broadcasting entity with 
                        such experience; or
                            ``(vii) a public or private elementary or 
                        secondary school.
    ``(b) Special Rule.--An eligible entity receiving assistance under 
this part shall be organized on a statewide or multistate basis.

``SEC. 10206. APPLICATIONS.

    ``(a) Applications Required.--Each eligible entity which desires to 
receive a grant under section 10204 shall submit an application to the 
Secretary, at such time, in such manner, and containing or accompanied 
by such information as the Secretary may reasonably require.
    ``(b) Star School Award Applications.--Each application submitted 
pursuant to subsection (a) shall--
            ``(1) describe how the proposed project will assist in 
        achieving the National Education Goals, how such project will 
        assist all students to have an opportunity to learn to 
        challenging State standards, how such project will assist State 
        and local educational reform efforts, and how such project will 
        contribute to creating a high quality system of lifelong 
        learning;
            ``(2) describe the telecommunications facilities and 
        equipment and technical assistance for which assistance is 
        sought, which may include--
                    ``(A) the design, development, construction, 
                acquisition, maintenance and operation of State or 
                multistate educational telecommunications networks and 
                technology resource centers;
                    ``(B) microwave, fiber optics, cable, and satellite 
                transmission equipment or any combination thereof;
                    ``(C) reception facilities;
                    ``(D) satellite time;
                    ``(E) production facilities;
                    ``(F) other telecommunications equipment capable of 
                serving a wide geographic area;
                    ``(G) the provision of training services to 
                instructors who will be using the facilities 
and equipment for which assistance is sought, including training in 
using such facilities and equipment and training in integrating 
programs into the classroom curriculum; and
                    ``(H) the development of educational and related 
                programming for use on a telecommunications network;
            ``(3) in the case of an application for assistance for 
        instructional programming, describe the types of programming 
        which will be developed to enhance instruction and training and 
        provide assurances that such programming will be designed in 
        consultation with professionals (including classroom teachers) 
        who are experts in the applicable subject matter and grade 
        level;
            ``(4) describe how the eligible entity has engaged in 
        sufficient survey and analysis of the area to be served to 
        ensure that the services offered by the eligible entity will 
        increase the availability of courses of instruction in English, 
        mathematics, science, foreign languages, arts, history, 
        geography, or other disciplines;
            ``(5) describe the professional development policies for 
        teachers and other school personnel to be implemented to ensure 
        the effective use of the telecommunications facilities and 
        equipment for which assistance is sought;
            ``(6) describe the manner in which historically underserved 
        students (such as students from low-income families, limited 
        English proficient students, students with disabilities, or 
        students who have low literacy skills) and their families, will 
        participate in the benefits of the telecommunications 
        facilities, equipment, technical assistance, and programming 
        assisted under this part;
            ``(7) describe how existing telecommunications equipment, 
        facilities, and services, where available, will be used;
            ``(8) provide assurances that the financial interest of the 
        United States in the telecommunications facilities and 
        equipment will be protected for the useful life of such 
        facilities and equipment;
            ``(9) provide assurances that a significant portion of any 
        facilities and equipment, technical assistance, and programming 
        for which assistance is sought for elementary and secondary 
        schools will be made available to schools or local educational 
        agencies that have a high number or percentage of children 
        eligible to be counted under part A of title I;
            ``(10) provide assurances that the applicant will use the 
        funds provided under this part to supplement and not supplant 
        funds otherwise available for the purposes of this part;
            ``(11) if any member of the consortia receives assistance 
        under subpart 3 of part A, describe how funds received under 
        this part will be coordinated with funds received for 
        educational technology in the classroom under such section;
            ``(12) describe the activities or services for which 
        assistance is sought, such as--
                    ``(A) providing facilities, equipment, training 
                services, and technical assistance;
                    ``(B) making programs accessible to students with 
                disabilities through mechanisms such as closed 
                captioning and descriptive video services;
                    ``(C) linking networks around issues of national 
                importance (such as elections) or to provide 
                information about employment opportunities, job 
                training, or student and other social service programs;
                    ``(D) sharing curriculum resources between networks 
                and development of program guides which demonstrate 
                cooperative, cross-network listing of programs for 
                specific curriculum areas;
                    ``(E) providing teacher and student support 
                services including classroom and training support 
                materials which permit student and teacher involvement 
                in the live interactive distance learning telecasts;
                    ``(F) incorporating community resources such as 
                libraries and museums into instructional programs;
                    ``(G) providing professional development for 
                teachers, including, as appropriate, training to early 
                childhood development and Head Start teachers and staff 
                and vocational education teachers and staff, and adult 
                and family educators;
                    ``(H) providing programs for adults to maximize the 
                use of telecommunications facilities and equipment;
                    ``(I) providing teacher training on proposed or 
                established voluntary national content standards in 
                mathematics and science and other disciplines as such 
                standards are developed; and
                    ``(J) providing parent education programs during 
                and after the regular school day which  reinforce a 
student's course of study and actively involve parents in the learning 
process;
            ``(13) describe how the proposed project as a whole will be 
        financed and how arrangements for future financing will be 
        developed before the project expires;
            ``(14) provide an assurance that a significant portion of 
        any facilities, equipment, technical assistance, and 
        programming for which assistance is sought for elementary and 
        secondary schools will be made available to schools in local 
        educational agencies that have a high percentage of children 
        counted for the purpose of part A of title I;
            ``(15) provide an assurance that the applicant will provide 
        such information and cooperate in any evaluation that the 
        Secretary may conduct under this part; and
            ``(16) include such additional assurances as the Secretary 
        may reasonably require.
    ``(c) Priorities.--The Secretary, in approving applications for 
grants authorized under section 10204, shall give priority to 
applications describing projects that--
            ``(1) propose high-quality plans to assist in achieving one 
        or more of the National Education Goals, will provide 
        instruction consistent with State content standards, or will 
otherwise provide significant and specific assistance to States and 
local educational agencies undertaking systemic education reform;
            ``(2) will provide services to programs serving adults, 
        especially parents, with low levels of literacy;
            ``(3) will serve schools with significant numbers of 
        children counted for the purposes of part A of title I;
            ``(4) ensure that the eligible entity will--
                    ``(A) serve the broadest range of institutions, 
                programs providing instruction outside of the school 
                setting, programs serving adults, especially parents, 
                with low levels of literacy, institutions of higher 
                education, teacher training centers, research 
                institutes, and private industry;
                    ``(B) have substantial academic and teaching 
                capabilities, including the capability of training, 
                retraining, and inservice upgrading of teaching skills 
                and the capability to provide professional development;
                    ``(C) provide a comprehensive range of courses for 
                educators to teach instructional strategies for 
                students with different skill levels;
                    ``(D) provide training to participating educators 
                in ways to integrate telecommunications courses into 
                existing school curriculum;
                    ``(E) provide instruction for students, teachers, 
                and parents;
                    ``(F) serve a multistate area; and
                    ``(G) give priority to the provision of equipment 
                and linkages to isolated areas; and
            ``(5) involve a telecommunications entity (such as a 
        satellite, cable, telephone, computer, or public or private 
        television stations) participating in the eligible entity and 
        donating equipment or in-kind services for telecommunications 
        linkages.
    ``(d) Geographic Distribution.--In approving applications for 
grants authorized under section 10204, the Secretary shall, to the 
extent feasible, ensure an equitable geographic distribution of 
services provided under this part.

``SEC. 10207. LEADERSHIP AND EVALUATION ACTIVITIES.

    ``(a) Reservation.--From the amount appropriated pursuant to the 
authority of section 10204(c)(1) in each fiscal year, the Secretary may 
reserve not more than 5 percent of such amount for national leadership, 
evaluation, and peer review activities.
    ``(b) Method of Funding.--The Secretary may fund the activities 
described in subsection (a) directly or through grants, contracts, and 
cooperative agreements.
    ``(c) Uses of Funds.--
            ``(1) Leadership.--Funds reserved for leadership activities 
        under subsection (a) may be used for--
                    ``(A) disseminating information, including lists 
                and descriptions of services available from grant 
                recipients under this part; and
                    ``(B) other activities designed to enhance the 
                quality of distance learning activities nationwide.
            ``(2) Evaluation.--Funds reserved for evaluation activities 
        under subsection (a) may be used to conduct independent 
        evaluations of the activities assisted under this part and of 
        distance learning in general, including--
                    ``(A) analyses of distance learning efforts, 
                including such efforts that are assisted under this 
                part and such efforts that are not assisted under this 
                part; and
                    ``(B) comparisons of the effects, including student 
                outcomes, of different technologies in distance 
                learning efforts.
            ``(3) Peer review.--Funds reserved for peer review 
        activities under subsection (a) may be used for peer review 
        of--
                    ``(A) applications for grants under this part; and
                    ``(B) activities assisted under this part.

``SEC. 10208. DEFINITIONS.

    ``As used in this part--
            ``(1) the term `educational institution' means an 
        institution of higher education, a local educational agency, or 
        a State educational agency;
            ``(2) the term `instructional programming' means courses of 
        instruction and training courses for elementary and secondary 
        students, teachers, and others, and materials for use in such 
        instruction and training that have been prepared in audio and 
        visual form on tape, disc, film, or live, and presented by 
        means of telecommunications devices; and
            ``(3) the term `public broadcasting entity' has the same 
        meaning given such term in section 397 of the Communications 
        Act of 1934.

``SEC. 10209. ADMINISTRATIVE PROVISIONS.

    ``(a) Continuing Eligibility.--
            ``(1) In general.--In order to be eligible to receive a 
        grant under section 10204 for a second 3-year grant period an 
        eligible entity shall demonstrate in the application submitted 
        pursuant to section 10206 that such partnership shall--
                    ``(A) continue to provide services in the subject 
                areas and geographic areas assisted with funds received 
                under this part for the previous 5-year grant period; 
                and
                    ``(B) use all grant funds received under this part 
                for the second 3-year grant period to provide expanded 
                services by--
                            ``(i) increasing the number of students, 
                        schools or school districts served by the 
                        courses of instruction assisted under this part 
                        in the previous fiscal year;
                            ``(ii) providing new courses of 
                        instruction; and
                            ``(iii) serving new populations of 
                        underserved individuals, such as children or 
                        adults who are disadvantaged, have limited-
                        English proficiency, are individuals with 
                        disabilities, are illiterate, or lack secondary 
                        school diplomas or their recognized equivalent.
            ``(2) Special rule.--Grant funds received pursuant to 
        paragraph (1) shall be used to supplement and not supplant 
        services provided by the grant recipient under this part in the 
        previous fiscal year.
    ``(b) Federal Activities.--The Secretary may assist grant 
recipients under section 10204 in acquiring satellite time, where 
appropriate, as economically as possible.

``SEC. 10210. OTHER ASSISTANCE.

    ``(a) Special Statewide Network.--
            ``(1) In general.--The Secretary, through the Office of 
        Educational Technology, may provide assistance to a statewide 
        telecommunications network under this subsection if such 
        network--
                    ``(A) provides 2-way full motion interactive video 
                and audio communications;
                    ``(B) links together public colleges and 
                universities and secondary schools throughout the 
                State; and
                    ``(C) meets any other requirements determined 
                appropriate by the Secretary.
            ``(2) State contribution.--A statewide telecommunications 
        network assisted under paragraph (1) shall contribute, either 
        directly or through private contributions, non-Federal funds 
        equal to not less than 50 percent of the cost of such network.
    ``(b) Special Local Network.--
            ``(1) In general.--The Secretary may provide assistance, on 
        a competitive basis, to a local educational agency or 
        consortium thereof to enable such agency or consortium to 
        establish a high technology demonstration program.
            ``(2) Program requirements.--A high technology 
        demonstration program assisted under paragraph (1) shall--
                    ``(A) include 2-way full motion interactive video, 
                audio and text communications;
                    ``(B) link together elementary and secondary 
                schools, colleges, and universities;
                    ``(C) provide parent participation and family 
                programs;
                    ``(D) include a staff development program; and
                    ``(E) have a significant contribution and 
                participation from business and industry.
            ``(3) Special rule.--Each high technology demonstration 
        program assisted under paragraph (1) shall be of sufficient 
        size and scope to have an effect on meeting the National 
        Education Goals.
            ``(4) Matching requirement.--A local educational agency or 
        consortium receiving a grant under paragraph (1) shall provide, 
        either directly or through private contributions, non-Federal 
        matching funds equal to not less than 50 percent of the amount 
        of the grant.
    ``(c) Telecommunications Programs for Continuing Education.--
            ``(1) Authority.--The Secretary is authorized to award 
        grants, on a competitive basis, to eligible entities to enable 
        such partnerships to develop and operate one or more programs 
        which provide on-line access to educational resources in 
        support of continuing education and curriculum requirements 
        relevant to achieving a secondary school diploma or its 
        recognized equivalent. The program authorized by this section 
        shall be designed to advance adult literacy, secondary school 
        completion and the acquisition of specified competency by the 
        end of the 12th grade, as envisioned by the Goals 2000: Educate 
        America Act.
            ``(2) Application.--Each eligible entity desiring a grant 
        under this section shall submit an application to the 
        Secretary. Each such application shall--
                    ``(A) demonstrate that the applicant will use 
                publicly funded or free public telecommunications 
                infrastructure to deliver video, voice and data in an 
                integrated service to support and assist in the 
                acquisition of a secondary school diploma or its 
                recognized equivalent;
                    ``(B) assure that the content of the materials to 
                be delivered is consistent with the accreditation 
                requirements of the State for which such materials are 
                used;
                    ``(C) incorporate, to the extent feasible, 
                materials developed in the Federal departments and 
                agencies and under appropriate federally funded 
                projects and programs;
                    ``(D) assure that the applicant has the 
                technological and substantive experience to carry out 
                the program; and
                    ``(E) contain such additional assurances as the 
                Secretary may reasonably require.

                  ``PART C--READY-TO-LEARN TELEVISION

``SEC. 10301. READY-TO-LEARN.

    ``(a) In General.--The Secretary is authorized to award grants to 
or enter into contracts or cooperative agreements with eligible 
entities described in section 10302(b) to develop, produce, and 
distribute educational and instructional video programming for 
preschool and elementary school children and their parents in order to 
facilitate the achievement of the National Education Goals.
    ``(b) Availability.--In making such grants, contracts, or 
cooperative agreements, the Secretary shall ensure that recipients make 
programming widely available with support materials as appropriate to 
young children, their parents, child care workers, and Head Start 
providers to increase the effective use of such programming.

``SEC. 10302. EDUCATIONAL PROGRAMMING.

    ``(a) Awards.--The Secretary shall award grants, contracts, or 
cooperative agreements to eligible entities to--
            ``(1) facilitate the development directly or through 
        contracts with producers of children and family educational 
        television programming, educational programming for preschool 
        and elementary school children, and accompanying support 
        materials and services that promote the effective use of such 
        programming; and
            ``(2) enable such entities to contract with entities (such 
        as public telecommunications entities and those funded under 
        the Star Schools Act) so that programs developed under this 
        section are disseminated and distributed to the widest possible 
        audience appropriate to be served by the programming by the 
        most appropriate distribution technologies.
    ``(b) Eligible Entities.--To be eligible to receive a grant, 
contract, or cooperative agreement under subsection (a), an entity 
shall be--
            ``(1) a nonprofit entity (including a public 
        telecommunications entity) able to demonstrate a capacity for 
        the development and distribution of educational and 
        instructional television programming of high quality for 
        preschool and elementary school children; and
            ``(2) able to demonstrate a capacity to contract with the 
        producers of children's television programming for the purpose 
        of developing educational television programming of high 
        quality for preschool and elementary school children.
    ``(c) Cultural Experiences.--Programming developed under this 
section shall reflect the recognition of diverse cultural experiences 
and the needs and experiences of both boys and girls in engaging and 
preparing young children for schooling.

``SEC. 10303. DUTIES OF SECRETARY.

    ``The Secretary is authorized--
            ``(1) to establish and administer a Special Projects of 
        National Significance program to award grants, contracts, or 
        cooperative agreements to public and nonprofit private 
        entities, or local public television stations or such public 
        television stations that are part of a consortium with one or 
        more State educational agencies, local educational agencies, 
        local schools, institutions of higher education, or community-
        based organizations of demonstrated effectiveness, for the 
        purpose of--
                    ``(A) addressing the learning needs of young 
                children in limited English proficient households, and 
                developing appropriate educational and instructional 
                television programming to foster the school readiness 
                of such children;
                    ``(B) developing programming and support materials 
                to increase family literacy skills among parents to 
                assist parents in teaching their children and utilizing 
                educational television programming to promote school 
                readiness; and
                    ``(C) identifying, supporting, and enhancing the 
                effective use and outreach of innovative programs that 
                promote school readiness;
            ``(2) to establish within the Department a clearinghouse to 
        compile and provide information, referrals and model program 
        materials and programming obtained or developed under this part 
        to parents, child care providers, and other appropriate 
individuals or entities to assist such individuals and entities in 
accessing programs and projects under this part; and
            ``(3) to develop and disseminate training materials, 
        including--
                    ``(A) interactive programs and programs adaptable 
                to distance learning technologies that are designed to 
                enhance knowledge of children's social and cognitive 
                skill development and positive adult-child 
                interactions; and
                    ``(B) support materials to promote the effective 
                use of materials developed under paragraph (2);
        among parents, Head Start providers, in-home and center based 
        day care providers, early childhood development personnel, and 
        elementary school teachers, public libraries, and after school 
        program personnel caring for preschool and elementary school 
        children;
            ``(4) coordinate activities with the Secretary of Health 
        and Human Services in order to--
                    ``(A) maximize the utilization of quality 
                educational programming by preschool and elementary 
                school children, and make such programming widely 
                available to federally funded programs serving such 
                populations; and
                    ``(B) provide information to recipients of funds 
                under Federal programs that have major training 
                components for early childhood development, including 
                Head Start, Even Start, and State training activities 
                funded under the Child Care Development Block Grant Act 
                of 1990 regarding the availability and utilization of 
                materials developed under paragraph (3) to enhance 
                parent and child care provider skills in early 
                childhood development and education.

``SEC. 10304. APPLICATIONS.

    ``Each eligible entity desiring a grant, contract, or cooperative 
agreement under section 10301 or 10303 shall submit an application to 
the Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may reasonably require.

``SEC. 10305. REPORTS AND EVALUATION.

    ``(a) Annual Report to Secretary.--An entity receiving funds under 
section 10301 shall prepare and submit to the Secretary an annual 
report which contains such information as the Secretary may require. At 
a minimum, the report shall describe the program activities undertaken 
with funds received under this section, including--
            ``(1) the programming that has been developed directly or 
        indirectly by the entity, and the target population of the 
        programs developed;
            ``(2) the support materials that have been developed to 
        accompany the programming, and the method by which such 
        materials are distributed to consumers and users of the 
        programming;
            ``(3) the means by which programming developed under this 
        section has been distributed, including the distance learning 
        technologies that have been utilized to make programming 
        available and the geographic distribution achieved through such 
        technologies; and
            ``(4) the initiatives undertaken by the entity to develop 
        public-private partnerships to secure non-Federal support for 
        the development and distribution and broadcast of educational 
        and instructional programming.
    ``(b) Report to Congress.--The Secretary shall prepare and submit 
to the relevant committees of Congress a biannual report which 
includes--
            ``(1) a summary of the information made available under 
        section 10302(a); and
            ``(2) a description of the training materials made 
        available under section 10303(3), the manner in which outreach 
        has been conducted to inform parents and child care providers 
        of the availability of such materials, and the manner in which 
        such materials have been distributed in accordance with such 
        section.

``SEC. 10306. ADMINISTRATIVE COSTS.

    ``With respect to the implementation of section 10302, entities 
receiving a grant, contract, or cooperative agreement from the 
Secretary may use not more than 5 percent of the amounts received under 
such section for the normal and customary expenses of administering the 
grant, contract, or cooperative agreement.

``SEC. 10307. DEFINITION.

    ``For the purposes of this part, the term `distance learning' means 
the transmission of educational or instructional programming to 
geographically dispersed individuals and groups via telecommunications.

``SEC. 10308. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this part, $16,000,000 for fiscal year 2002, and such sums as may 
be necessary for each of the four succeeding fiscal years. Not less 
than 60 percent of the amounts appropriated under this subsection for 
each fiscal year shall be used to carry out section 10302.
    ``(b) Special Projects.--Of the amount appropriated under 
subsection (b) for each fiscal year, at least 10 percent of such amount 
shall be used for each such fiscal year for activities under section 
10303(1)(C).

   ``PART D--TELECOMMUNICATIONS DEMONSTRATION PROJECT FOR MATHEMATICS

``SEC. 10401. PROJECT AUTHORIZED.

    ``The Secretary is authorized to make grants to a nonprofit 
telecommunications entity, or partnership of such entities, for the 
purpose of carrying out a national telecommunications-based 
demonstration project to improve the teaching of mathematics. The 
demonstration project authorized by this part shall be designed to 
assist elementary and secondary school teachers in preparing all 
students for achieving State content standards.

``SEC. 10402. APPLICATION REQUIRED.

    ``(a) In General.--Each nonprofit telecommunications entity, or 
partnership of such entities, desiring a grant under this part shall 
submit an application to the Secretary. Each such application shall--
            ``(1) demonstrate that the applicant will use the existing 
        publicly funded telecommunications infrastructure to deliver 
        video, voice and data in an integrated service to train 
        teachers in the use of new standards-based curricula materials 
        and learning technologies;
            ``(2) assure that the project for which assistance is 
        sought will be conducted in cooperation with appropriate State 
        educational agencies, local educational agencies, State or 
        local nonprofit public telecommunications entities, and a 
        national mathematics education professional association that 
        has developed content standards;
            ``(3) assure that a significant portion of the benefits 
        available for elementary and secondary schools from the project 
        for which assistance is sought will be available to schools of 
        local educational agencies which have a high percentage of 
        children counted for the purpose of part A of title I; and
            ``(4) contain such additional assurances as the Secretary 
        may reasonably require.
    ``(b) Approval of Applications; Number of Demonstration Sites.--In 
approving applications under this section, the Secretary shall assure 
that the demonstration project authorized by this part is conducted at 
elementary and secondary school sites in at least 15 States.

``SEC. 10403. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part, 
$5,000,000 for the fiscal year 2002, and such sums as may be necessary 
for each of the four succeeding fiscal years.

     ``PART E--ELEMENTARY MATHEMATICS AND SCIENCE EQUIPMENT PROGRAM

``SEC. 10501. SHORT TITLE.

    ``This part may be cited as the `Elementary Mathematics and Science 
Equipment Act'.

``SEC. 10502. STATEMENT OF PURPOSE.

    ``It is the purpose of this part to raise the quality of 
instruction in mathematics and science in the Nation's elementary 
schools by providing equipment and materials necessary for hands-on 
instruction through assistance to State and local educational agencies.

``SEC. 10503. PROGRAM AUTHORIZED.

    ``The Secretary is authorized to make allotments to State 
educational agencies under section 10504 to enable such agencies to 
award grants to local educational agencies for the purpose of providing 
equipment and materials to elementary schools to improve mathematics 
and science education in such schools.

``SEC. 10504. ALLOTMENTS OF FUNDS.

    ``(a) In General.--From the amount appropriated under section 10509 
for any fiscal year, the Secretary shall reserve--
            ``(1) not more than one-half of 1 percent for allotment 
        among Guam, American Samoa, the Virgin Islands, and the 
        Northern Mariana Islands according to their respective needs 
        for assistance under this part; and
            ``(2) one-half of 1 percent for programs for Indian 
        students served by schools funded by the Secretary of the 
        Interior which are consistent with the purposes of this part.
    ``(b) Allotment.--
            ``(1) In general.--The remainder of the amount so 
        appropriated (after meeting requirements in subsection (a)) 
        shall be allotted among State educational agencies so that--
                    ``(A) one-half of such remainder shall be 
                distributed by allotting to each State educational 
                agency an amount which bears the same ratio to such 
                one-half of such remainder as the number of children 
                aged 5 to 17, inclusive, in the State bears to the 
                number of such children in all States; and
                    ``(B) one-half of such remainder shall be 
                distributed according to each State's share of 
                allocations under part A of title I.
            ``(2) Minimum.--Except as provided in paragraph (3), no 
        State educational agency shall receive an allotment under this 
        subsection for any fiscal year in an amount that is--
                    ``(A) less than one-half of 1 percent of the amount 
                made available under this subsection for such fiscal 
                year; or
                    ``(B) less than the amount allotted to such State 
                for fiscal year 1988 under title II of the Education 
                for Economic Security Act.
            ``(3) Ratable reductions.--(A) If the sums made available 
        under this part for any fiscal year are insufficient to pay the 
        full amounts that all State educational agencies are eligible 
        to receive under paragraph (2)(B) for such year, the Secretary 
        shall ratably reduce the allotment to such agencies for such 
        year.
            ``(B) If additional funds become available for making 
        payments under paragraph (2)(B) for such fiscal year, 
        allotments that were reduced under subparagraph (A) shall be 
        increased on the same basis as such allotments were reduced.
    ``(c) Reallotment of Unused Funds.--The amount of any State 
educational agency's allotment under subsection (b) for any fiscal year 
to carry out this part which the Secretary determines will not be 
required for that fiscal year to carry out this part shall be available 
for reallotment from time to time, on such dates during that year as 
the Secretary may determine, to other State educational agencies in 
proportion to the original allotments to those State educational 
agencies under subsection (b) for that year but with such proportionate 
amount for any of those other State educational agencies being reduced 
to the extent it exceeds the sum the Secretary estimates that the State 
educational agency needs and will be able to use for that year, and the 
total of those reductions shall be similarly reallotted among the State 
educational agencies whose proportionate amounts were not so reduced. 
Any amounts reallotted to a State educational agency under this 
subsection during a year shall be deemed a part of the State 
educational agency's allotment under subsection (b) for that year.
    ``(d) Definition.--For the purposes of this part the term `State' 
means each of the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico.
    ``(e) Data.--The number of children aged 5 to 17, inclusive, in the 
State and in all States shall be determined by the Secretary on the 
basis of the most recent satisfactory data available to the Secretary.

``SEC. 10505. STATE APPLICATION.

    ``(a) Application.--Each State educational agency desiring to 
receive an allotment under this part shall file an application with the 
Secretary which covers a period of 5 fiscal years. Such application 
shall be filed at such time, in such manner, and containing or 
accompanied by such information as the Secretary may reasonably 
require.
    ``(b) Contents of Application.--Each application described in 
subsection (a) shall--
            ``(1) provide assurances that--
                    ``(A) the State educational agency shall use the 
                allotment provided under this part to award grants to 
                local educational agencies within the State to enable 
                such local educational agencies to provide assistance 
                to schools served by such agency to carry out the 
                purpose of this part;
                    ``(B) the State educational agency will provide 
                such fiscal control and funds accounting as the 
                Secretary may require;
                    ``(C) every public elementary school in the State 
                is eligible to receive assistance under this part once 
                over the 5-year duration of the program assisted under 
                this part;
                    ``(D) funds provided under this part will 
                supplement, not supplant, State and local funds made 
                available for activities authorized under this part;
                    ``(E) during the 5-year period described in the 
                application, the State educational agency will evaluate 
                its standards and programs for teacher preparation and 
                inservice professional development for elementary 
                mathematics and science;
                    ``(F) the State educational agency will take into 
                account the needs for greater access to and 
                participation in mathematics and science by students 
                and teachers from historically underrepresented groups, 
                including females, minorities, individuals with limited 
                English proficiency, the economically disadvantaged, 
                and individuals with disabilities; and
                    ``(G) that the needs of teachers and students in 
                areas with high concentrations of low-income students 
                and sparsely populated areas will be given priority in 
                awarding assistance under this part;
            ``(2) provide, if appropriate, a description of how funds 
        paid under this part will be coordinated with State and local 
        funds and other Federal resources, particularly with respect to 
        programs for the professional development and inservice 
        training of elementary school teachers in science and 
        mathematics; and
            ``(3) describe procedures--
                    ``(A) for submitting applications for programs 
                described in section 10506 for distribution of 
                assistance under this part within the State; and
                    ``(B) for approval of applications by the State 
                educational agency, including appropriate procedures to 
                assure that such agency will not disapprove an 
                application without notice and opportunity for a 
                hearing.
    ``(c) State Administration.--Not more than 5 percent of the funds 
allotted to each State educational agency under this part shall be used 
for the administrative costs of such agency associated with carrying 
out the program assisted under this part.

``SEC. 10506. LOCAL APPLICATION.

    ``(a) Application.--A local educational agency that desires to 
receive a grant under this part shall submit an application to the 
State educational agency. Each such application shall contain 
assurances that each school served by the local educational agency 
shall be eligible for assistance under this part only once.
    ``(b) Contents of Application.--Each application described in 
subsection (a) shall--
            ``(1) describe how the local educational agency plans to 
        set priorities on the use and distribution among schools of 
        grant funds received under this part to meet the purpose of 
        this part;
            ``(2) include assurances that the local educational agency 
        has made every effort to match on a dollar-for-dollar basis 
        from private or public sources the funds received under this 
        part, except that no such application shall be penalized or 
        denied assistance under this part based on failure to provide 
        such matching funds;
            ``(3) describe, if applicable, how funds under this part 
        will be coordinated with State, local, and other Federal 
        resources, especially with respect to programs for the 
        professional development and inservice training of elementary 
        school teachers in science and mathematics; and
            ``(4) describe the process which will be used to determine 
        different levels of assistance to be awarded to schools with 
        different needs.
    ``(c) Priority.--In awarding grants under this part, the State 
educational agency shall give priority to applications that--
            ``(1) assign highest priority to providing assistance to 
        schools which--
                    ``(A) are most seriously underequipped; or
                    ``(B) serve large numbers or percentages of 
                economically disadvantaged students;
            ``(2) are attentive to the needs of underrepresented groups 
        in science and mathematics;
            ``(3) demonstrate how science and mathematics equipment 
        will be part of a comprehensive plan of curriculum planning or 
        implementation and teacher training supporting hands-on 
        laboratory activities; and
            ``(4) assign priority to providing equipment and materials 
        for students in grades 1 through 6.

``SEC. 10507. PROGRAM REQUIREMENTS.

    ``(a) Coordination.--Each State educational agency receiving an 
allotment under this part shall--
            ``(1) disseminate information to school districts and 
        schools, including private nonprofit elementary schools, 
        regarding the program assisted under this part;
            ``(2) evaluate applications of local educational agencies;
            ``(3) award grants to local educational agencies based on 
        the priorities described in section 10506(c); and
            ``(4) evaluate local educational agencies' end-of-year 
        summaries and submit such evaluation to the Secretary.
    ``(b) Limitations on Use of Funds.--
            ``(1) In general.--Except as provided in paragraph (2), 
        grant funds and matching funds under this part only shall be 
        used to purchase science equipment, science materials, or 
        mathematical manipulative materials and shall not be used for 
        computers, computer peripherals, software, textbooks, or staff 
        development costs.
            ``(2) Capital improvements.--Grant funds under this part 
        may not be used for capital improvements. Not more than 50 
        percent of any matching funds provided by the local educational 
        agency may be used for capital improvements of classroom 
        science facilities to support the hands-on instruction that 
        this part is intended to support, such as the installation of 
        electrical outlets, plumbing, lab tables or counters, or 
        ventilation mechanisms.

``SEC. 10508. FEDERAL ADMINISTRATION.

    ``(a) Technical Assistance and Evaluation Procedures.--The 
Secretary shall provide technical assistance and, in consultation with 
State and local representatives of the program assisted under this 
part, shall develop procedures for State and local evaluations of the 
programs assisted under this part.
    ``(b) Report.--The Secretary shall report to the Congress each year 
on the program assisted under this part in accordance with section 
10701.

``SEC. 10509. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $30,000,000 for fiscal 
year 2002, and such sums as may be necessary for each of the four 
succeeding fiscal years, to carry out this part.''.

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

SEC. 1001. SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES.

    Title XI (20 U.S.C. 8401 et seq.) is amended to read as follows:

         ``TITLE XI--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

``SEC. 11001. SHORT TITLE.

    ``This title may be cited as the `Safe and Drug-Free Schools and 
Communities Act of 2000'.

``SEC. 11002. FINDINGS.

    ``The Congress finds as follows:
            ``(1) The seventh National Education Goal provides that by 
        the year 2000, all schools in America will be free of drugs and 
        violence and the unauthorized presence of firearms and alcohol, 
        and offer a disciplined environment that is conducive to 
        learning.
            ``(2) The widespread illegal use of alcohol and other drugs 
        among the Nation's secondary school students, and increasingly 
        by students in elementary schools as well, constitutes a grave 
        threat to such students' physical and mental well-being, and 
        significantly impedes the learning process. For example, data 
        show that students who drink tend to receive lower grades and 
        are more likely to miss school because of illness than students 
        who do not drink.
            ``(3) Our Nation's schools and communities are increasingly 
        plagued by violence and crime. Approximately 3,000,000 thefts 
        and violent crimes occur in or near our Nation's schools every 
        year, the equivalent of more than 16,000 incidents per school 
        day.
            ``(4) Violence that is linked to prejudice and intolerance 
        victimizes entire communities leading to more violence and 
        discrimination.
            ``(5) The tragic consequences of violence and the illegal 
        use of alcohol and drugs by students are felt not only by 
        students and such students' families, but by such students' 
        communities and the Nation, which can ill afford to lose such 
        students' skills, talents, and vitality.
            ``(6) While use of illegal drugs is a serious problem among 
        a minority of teenagers, alcohol use is far more widespread. 
        The proportion of high school students using alcohol, though 
        lower than a decade ago, remains unacceptably high. By the 8th 
        grade, 70 percent of youth report having tried alcohol and by 
        the 12th grade, about 88 percent have used alcohol. Alcohol use 
        by young people can and does have adverse consequences for 
        users, their families, communities, schools, and colleges.
            ``(7) Alcohol and tobacco are widely used by young people. 
        Such use can, and does, have adverse consequences for young 
        people, their families, communities, schools, and colleges. 
        Drug prevention programs for youth that address only controlled 
        drugs send an erroneous message that alcohol and tobacco do not 
        present significant problems, or that society is willing to 
        overlook their use. To be credible, messages opposing illegal 
        drug use by youth should address alcohol and tobacco as well.
            ``(8) Every day approximately 3,000 children start smoking. 
        Thirty percent of all secondary school seniors are smokers. 
        Half of all new smokers begin smoking before the age of 14, 90 
        percent of such smokers begin before the age of 21, and the 
        average age of the first use of smokeless tobacco is under the 
        age of 10. Use of tobacco products has been linked to serious 
        health problems. Drug education and prevention programs that 
        include tobacco have been effective in reducing teenage use of 
        tobacco.
            ``(9) Drug and violence prevention programs are essential 
        components of a comprehensive strategy to promote school safety 
        and to reduce the demand for and use of drugs throughout the 
        Nation. Schools and local organizations in communities 
        throughout the Nation have a special responsibility to work 
        together to combat the growing epidemic of violence and illegal 
        drug use and should measure the  success of their programs 
against clearly defined goals and objectives.
            ``(10) Students must take greater responsibility for their 
        own well-being, health, and safety if schools and communities 
        are to achieve the goals of providing a safe, disciplined, and 
        drug-free learning environment.

``SEC. 11003. PURPOSE.

    ``The purpose of this title is to support programs to meet the 
seventh National Education Goal by preventing violence in and around 
schools and by strengthening programs that prevent the illegal use of 
alcohol, tobacco, and drugs, involve parents, and are coordinated with 
related Federal, State, and community efforts and resources, through 
the provision of Federal assistance to--
            ``(1) States for grants to local educational agencies and 
        educational service agencies and consortia of such agencies to 
        establish, operate, and improve local programs of school drug 
        and violence prevention, early intervention, rehabilitation 
        referral, and education in elementary and secondary schools 
        (including intermediate and junior high schools);
            ``(2) States for grants to, and contracts with, community-
        based organizations and other public and private nonprofit 
        agencies and organizations for programs of drug and violence 
        prevention, early intervention, rehabilitation referral, and 
        education;
            ``(3) States for development, training, technical 
        assistance, and coordination activities;
            ``(4) public and private nonprofit organizations to conduct 
        training, demonstrations, and evaluation, and to provide 
        supplementary services for the prevention of drug use and 
        violence among students and youth; and
            ``(5) institutions of higher education to establish, 
        operate, expand, and improve programs of school drug and 
        violence prevention, education, and rehabilitation referral for 
        students enrolled in colleges and universities.

``SEC. 11004. FUNDING.

    ``There are authorized to be appropriated--
            ``(1) $440,000,000 for fiscal year 2002, and such sums as 
        may be necessary for each of the four succeeding fiscal years, 
        for State grants under subpart 1; and
            ``(2) $155,000,000 for fiscal year 2002, and such sums as 
        may be necessary for each of the four succeeding fiscal years, 
        for national programs under subpart 2.

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

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

``SEC. 11011. RESERVATIONS AND ALLOTMENTS.

    ``(a) Reservations.--From the amount made available under section 
11004(a) to carry out this subpart for each fiscal year, the 
Secretary--
            ``(1) shall reserve 1 percent of such amount for grants 
        under this subpart to Guam, American Samoa, the Virgin Islands, 
        and the Commonwealth of the Northern Mariana Islands, to be 
        allotted in accordance with the Secretary's determination of 
        their respective needs;
            ``(2) shall reserve 1 percent of such amount for the 
        Secretary of the Interior to carry out programs under this part 
        for Indian youth;
            ``(3) may reserve not more than $1,000,000 for the national 
        impact evaluation required by section 11117(a); and
            ``(4) shall reserve 0.2 percent of such amount for programs 
        for Native Hawaiians under section 11118.
    ``(b) State Allotments.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall, for each fiscal year, allocate among the 
        States--
                    ``(A) one-half of the remainder not reserved under 
                subsection (a) according to the ratio between the 
                school-aged population of each State and the school-
                aged population of all the States; and
                    ``(B) one-half of such remainder according to the 
                ratio between the amount each State received under part 
                A of title I for the preceding year and the sum of such 
                amounts received by all the States.
            ``(2) Minimum.--For any fiscal year, no State shall be 
        allotted under this subsection an amount that is less than one-
        half of 1 percent of the total amount allotted to all the 
        States under this subsection.
            ``(3) Reallotment.--The Secretary may reallot any amount of 
        any allotment to a State if the Secretary determines that the 
        State will be unable to use such amount within two years of 
        such allotment. Such reallotments shall be made on the same 
        basis as allotments are made under paragraph (1).
            ``(4) Definitions.--For the purpose of this subsection--
                    ``(A) the term `State' means each of the 50 States, 
                the District of Columbia, and the Commonwealth of 
                Puerto Rico; and
                    ``(B) the term `local educational agency' includes 
                educational service agencies and consortia of such 
                agencies.

``SEC. 11112. STATE APPLICATIONS.

    ``(a) In General.--In order to receive an allotment under section 
11111 for any fiscal year, a State shall submit to the Secretary, at 
such time as the Secretary may require, an application that--
            ``(1) describes how funds under this subpart will be 
        coordinated with programs under this Act, the Goals 2000: 
        Educate America Act, and other Acts, as appropriate, in 
        accordance with the provisions of section 14306;
            ``(2) contains the results of the State's needs assessment 
        for drug and violence prevention programs, which shall be based 
        on the results of on-going State evaluation activities, 
        including data on the prevalence of drug use and violence by 
        youth in schools and communities;
            ``(3) contains assurances that the sections of the 
        application concerning the funds provided to the chief 
        executive officer and the State educational agency were 
        developed separately by such officer or agency, respectively, 
        but in consultation and coordination with appropriate State 
        officials and others, including the chief State school officer, 
        the chief executive officer, the head of the State alcohol and 
        drug abuse agency, the heads of the State health and mental 
        health agencies, the head of the State criminal justice 
        planning agency, the head of the State child welfare agency, 
        the head of the State board of education, or their designees, 
        and representatives of parents, students, and community-based 
        organizations;
            ``(4) contains an assurance that the State will cooperate 
        with, and assist, the Secretary in conducting a national impact 
        evaluation of programs required by section 11117(a); and
            ``(5) includes any other information the Secretary may 
        require.
    ``(b) State Educational Agency Funds.--A State's application under 
this section shall also contain a comprehensive plan for the use of 
funds under section 11113(a) by the State educational agency that 
includes--
            ``(1) a statement of the State educational agency's 
        measurable goals and objectives for drug and violence 
        prevention and a description of the procedures such agency will 
        use for assessing and publicly reporting progress toward 
        meeting those goals and objectives;
            ``(2) a plan for monitoring the implementation of, and 
        providing technical assistance regarding, the drug and violence 
        prevention programs conducted by local educational agencies in 
        accordance with section 11116;
            ``(3) a description of how the State educational agency 
        will use funds under section 11113(b);
            ``(4) a description of how the State educational agency 
        will coordinate such agency's activities under this subpart 
        with the chief executive officer's drug and violence prevention 
        programs under this subpart and with the prevention efforts of 
        other State agencies;
            ``(5) an explanation of the criteria the State educational 
        agency will use to identify which local educational agencies 
        receive supplemental funds under section 11113(d)(2)(A)(ii) and 
        how the supplemental funds will be allocated among such local 
        educational agencies; and
            ``(6) a description of the procedures the State educational 
        agency will use to review applications from local educational 
        agencies under section 11115.
    ``(c) Governor's Funds.--A State's application under this section 
shall also contain a comprehensive plan for the use of funds under 
section 11114(a) by the chief executive officer that includes--
            ``(1) a statement of the chief executive officer's 
        measurable goals and objectives for drug and violence 
        prevention and a description of the procedures to be used for 
        assessing and publicly reporting progress toward meeting such 
        goals and objectives;
            ``(2) a description of how the chief executive officer will 
        coordinate such officer's activities under this part with the 
        State educational agency and other State agencies and 
        organizations involved with drug and violence prevention 
        efforts;
            ``(3) a description of how funds reserved under section 
        11114(a) will be used so as not to duplicate the efforts of the 
        State educational agency and local educational agencies with 
        regard to the provision of school-based prevention efforts and 
        services and how those funds will be used to serve populations 
        not normally served by the State educational agency, such as 
        school dropouts and youth in detention centers;
            ``(4) a description of how the chief executive officer will 
        award funds under section 11114(a) and a plan for monitoring 
        the performance of, and providing technical assistance to, 
        recipients of such funds;
            ``(5) a description of the special outreach activities that 
        will be carried out to maximize the participation of community-
        based organizations of demonstrated effectiveness which provide 
        services in low-income communities; and
            ``(6) a description of how funds will be used to support 
        community-wide comprehensive drug and violence prevention 
        planning.
    ``(d) Peer Review.--The Secretary shall use a peer review process 
in reviewing State applications under this section.
    ``(e) Interim Application.--Notwithstanding any other provisions of 
this section, a State may submit for fiscal year 2002 a one-year 
interim application and plan for the use of funds under this subpart 
that are consistent with the requirements of this section and contain 
such information as the Secretary may specify in regulations. The 
purpose of such interim application and plan shall be to afford the 
State the opportunity to fully develop and review such State's 
application and comprehensive plan otherwise required by this section. 
A State may not receive a grant under this subpart for a fiscal year 
subsequent to fiscal year 2001 unless the Secretary has approved such 
State's application and comprehensive plan in accordance with this 
subpart.

``SEC. 11113. STATE AND LOCAL EDUCATIONAL AGENCY PROGRAMS.

    ``(a) Use of Funds.--
            ``(1) In general.--Except as provided in paragraph (2), an 
        amount equal to 80 percent of the total amount allocated to a 
        State under section 11111 for each fiscal year shall be used by 
        the State educational agency and its local educational agencies 
        for drug and violence prevention activities in accordance with 
        this section.
            ``(2) Exception.--(A) If a State has, on or before January 
        1, 2002, established an independent State agency for the 
        purpose of administering all of the funds described in section 
        5121 of this Act (as such section was in effect on the day 
        preceding the date of the enactment of the Improving America's 
        Schools Act of 1994), then--
                    ``(i) an amount equal to 80 percent of the total 
                amount allocated to such State under section 11111 for 
                each fiscal year shall be used by the State educational 
                agency and its local educational agencies for drug and 
                violence prevention activities in accordance with this 
                section; and
                    ``(ii) an amount equal to 20 percent of such total 
                amount shall be used by such independent State agency 
                for drug and violence prevention activities in 
                accordance with this section.
            ``(B) Not more than 5 percent of the amount reserved under 
        subparagraph (A)(ii) may be used for administrative costs of 
        the independent State agency incurred in carrying out the 
        activities described in such subparagraph.
            ``(C) For purposes of this paragraph, the term `independent 
        State agency' means an independent agency with a board of 
        directors or a cabinet level agency whose chief executive 
        officer is appointed by the chief executive officer of the 
        State and confirmed with the advice and consent of the senate 
        of such State.
    ``(b) State Level Programs.--
            ``(1) In general.--A State educational agency shall use not 
        more than 5 percent of the amount available under subsection 
        (a) for activities such as--
                    ``(A) training and technical assistance concerning 
                drug and violence prevention for local educational 
                agencies and educational service agencies, including 
                teachers, administrators, coaches and athletic 
                directors, other staff, parents, students, community 
                leaders, health service providers, local law 
                enforcement officials, and judicial officials;
                    ``(B) the development, identification, 
                dissemination, and evaluation of the most readily 
                available, accurate, and up-to-date curriculum 
                materials (including videotapes, software, and other 
                technology-based learning resources), for consideration 
                by local educational agencies;
                    ``(C) making available to local educational 
                agencies cost effective programs for youth violence and 
                drug abuse prevention;
                    ``(D) demonstration projects in drug and violence 
                prevention;
                    ``(E) training, technical assistance, and 
                demonstration projects to address violence associated 
                with prejudice and intolerance;
                    ``(F) financial assistance to enhance resources 
                available for drug and violence prevention in areas 
                serving large numbers of economically disadvantaged 
                children or sparsely populated areas, or to meet other 
                special needs consistent with the purposes of this 
                subpart; and
                    ``(G) the evaluation of activities carried out 
                within the State under this part.
            ``(2) Special rule.--A State educational agency may carry 
        out activities under this subsection directly, or through 
        grants or contracts.
    ``(c) State Administration.--A State educational agency may use not 
more than 4 percent of the amount reserved under subsection (a) for the 
administrative costs of carrying out its responsibilities under this 
part.
    ``(d) Local Educational Agency Programs.--
            ``(1) In general.--A State educational agency shall 
        distribute not less than 91 percent of the amount made 
        available under subsection (a) for each fiscal year to local 
        educational agencies in accordance with this subsection.
            ``(2) Distribution.--(A) Of the amount distributed under 
        paragraph (1), a State educational agency shall distribute--
                    ``(i) 70 percent of such amount to local 
                educational agencies, based on the relative enrollments 
                in public and private nonprofit elementary and 
                secondary schools within the boundaries of such 
                agencies; and
                    ``(ii) 30 percent of such amount to local 
                educational agencies that the State educational agency 
                determines have the greatest need for additional funds 
                to carry out drug and violence prevention programs 
                authorized by this subpart.
            ``(B) Where appropriate and to the extent consistent with 
        the needs assessment conducted by the State, not less than 25 
        percent of the amount distributed under subparagraph (A)(ii) 
        for a fiscal year shall be distributed to local educational 
        agencies located in rural and urban areas.
            ``(C)(i) A State educational agency shall distribute funds 
        under subparagraph (A)(ii) to not more than 10 percent of the 
        local educational agencies in the State, or five such agencies, 
        whichever is greater.
            ``(ii) In determining which local educational agencies have 
        the greatest need for additional funds, the State educational 
        agency shall consider objective data such as--
                    ``(I) high rates of alcohol or drug use among 
                youth;
                    ``(II) high rates of victimization of youth by 
                violence and crime;
                    ``(III) high rates of arrests and convictions of 
                youth for violent or drug- or alcohol-related crime;
                    ``(IV) the extent of illegal gang activity;
                    ``(V) high incidence of violence associated with 
                prejudice and intolerance;
                    ``(VI) high rates of referrals of youths to drug 
                and alcohol abuse treatment and rehabilitation 
                programs;
                    ``(VII) high rates of referrals of youths to 
                juvenile court;
                    ``(VIII) high rates of expulsions and suspensions 
                of students from schools; and
                    ``(IX) high rates of reported cases of child abuse 
                and domestic violence.
    ``(e) Reallocation of Funds.--If a local educational agency chooses 
not to apply to receive the amount allocated to such agency under 
subsection (d), or if such agency's application under section 11115 is 
disapproved by the State educational agency, the State educational 
agency shall reallocate such amount to one or more of the local 
educational agencies determined by the State educational agency under 
subsection (d)(2)(C)(ii) to have the greatest need for additional 
funds.
    ``(f) Return of Funds to State Educational Agency; Reallocation.--
            ``(1) Return.--Except as provided in paragraph (2), upon 
        the expiration of the 1-year period beginning on the date that 
        a local educational agency or educational service agency under 
        this title receives its allocation under this title--
                    ``(A) such agency shall return to the State 
                educational agency any funds from such allocation that 
                remain unobligated; and
                    ``(B) the State educational agency shall reallocate 
                any such amount to local educational agencies or 
                educational service agencies that have plans for using 
                such amount for programs or activities on a timely 
                basis.
            ``(2) Reallocation.--In any fiscal year, a local 
        educational agency, may retain for obligation in the succeeding 
        fiscal year--
                    ``(A) an amount equal to not more than 25 percent 
                of the allocation it receives under this title for such 
                fiscal year; or
                    ``(B) upon a demonstration of good cause by such 
                agency or consortium, a greater amount approved by the 
                State educational agency.

``SEC. 11114. GOVERNOR'S PROGRAMS.

    ``(a) Use of Funds.--
            ``(1) In general.--An amount equal to 20 percent of the 
        total amount allocated to a State under section 11111(1) for 
        each fiscal year shall be used by the chief executive officer 
        of such State for drug and violence prevention programs and 
        activities in accordance with this section.
            ``(2) Law enforcement education partnerships.--A chief 
        executive officer shall use not less than 10 percent of the 20 
        percent of the total amount described in paragraph (1) for each 
        fiscal year for law enforcement education partnerships in 
        accordance with subsection (d).
            ``(3) Administrative costs.--A chief executive officer may 
        use not more than 5 percent of the 20 percent of the total 
        amount described in paragraph (1) for the administrative costs 
        incurred in carrying out the duties of such officer under this 
section.
    ``(b) Programs Authorized.--
            ``(1) In general.--A chief executive officer shall use 
        funds made available under subsection (a)(1) for grants to or 
        contracts with parent groups, community action and job training 
        agencies, community-based organizations, and other public 
        entities and private nonprofit organizations and consortia 
        thereof. In making such grants and contracts, a chief executive 
        officer shall give priority to programs and activities 
        described in subsection (c) for--
                    ``(A) children and youth who are not normally 
                served by State or local educational agencies; or
                    ``(B) populations that need special services or 
                additional resources (such as preschoolers, youth in 
                juvenile detention facilities, runaway or homeless 
                children and youth, pregnant and parenting teenagers, 
                and school dropouts).
            ``(2) Peer review.--Grants or contracts awarded under this 
        subsection shall be subject to a peer review process.
    ``(c) Authorized Activities.--Grants and contracts under subsection 
(b) shall be used for programs and activities such as--
            ``(1) disseminating information about drug and violence 
        prevention;
            ``(2) training parents, law enforcement officials, judicial 
        officials, social service providers, health service providers 
        and community leaders about drug and violence prevention, 
        comprehensive health education, early intervention, pupil 
        services, or rehabilitation referral;
            ``(3) developing and implementing comprehensive, community-
        based drug and violence prevention programs that link community 
        resources with schools and integrate services involving 
        education, vocational and job skills training and placement, 
        law enforcement, health, mental health, community service, 
        mentoring, and other appropriate services;
            ``(4) planning and implementing drug and violence 
        prevention activities that coordinate the efforts of State 
        agencies with efforts of the State educational agency and its 
        local educational agencies;
            ``(5) activities to protect students traveling to and from 
        school;
            ``(6) before-and-after school recreational, instructional, 
        cultural, and artistic programs that encourage drug- and 
        violence-free lifestyles;
            ``(7) activities that promote the awareness of and 
        sensitivity to alternatives to violence through courses of 
        study that include related issues of intolerance and hatred in 
        history;
            ``(8) developing and implementing activities to prevent and 
        reduce violence associated with prejudice and intolerance;
            ``(9) developing and implementing strategies to prevent 
        illegal gang activity;
            ``(10) coordinating and conducting community-wide violence 
        and safety assessments and surveys;
            ``(11) service-learning projects that encourage drug- and 
        violence-free lifestyles; and
            ``(12) evaluating programs and activities assisted under 
        this section.
    ``(d) Law Enforcement Education Partnerships.--A chief executive 
officer shall use funds under subsection (a)(2) to award grants to 
State, county or local law enforcement agencies (including district 
attorneys) in consortium with local educational agencies or community-
based agencies for the purposes of carrying out drug abuse and violence 
prevention activities, such as--
            ``(1) Project Drug Abuse Resistance Education and other 
        programs which provide classroom instruction by uniformed law 
        enforcement officials that is designed to teach students to 
        recognize and resist pressures to experiment that influence 
        such children to use controlled substances or alcohol;
            ``(2) Project Legal Lives and other programs in which 
        district attorneys provide classroom instruction in the law and 
        legal system which emphasizes interactive learning techniques, 
        such as mock trial competitions;
            ``(3) partnerships between law enforcement and child 
        guidance professionals; and
            ``(4) before- and after-school activities.

``SEC. 11115. LOCAL APPLICATIONS.

    ``(a) Application Required.--
            ``(1) In general.--In order to be eligible to receive a 
        distribution under section 11113(d) for any fiscal year, a 
        local educational agency shall submit, at such time as the 
        State educational agency requires, an application to the State 
        educational agency for approval. Such an application shall be 
        amended, as necessary, to reflect changes in the local 
        educational agency's program.
            ``(2) Development.--(A) A local educational agency shall 
        develop its application under subsection (a)(1) in consultation 
        with a local or substate regional advisory council that 
        includes, to the extent possible, representatives of local 
        government, business, parents, students, teachers, pupil 
        services personnel, appropriate State agencies, private 
        schools, the medical profession, law enforcement, community-
        based organizations, and other groups with interest and 
        expertise in drug and violence prevention.
            ``(B) In addition to assisting the local educational agency 
        to develop an application under this section, the advisory 
        council established or designated under subparagraph (A) shall, 
        on an ongoing basis--
                    ``(i) disseminate information about drug and 
                violence prevention programs, projects, and activities 
                conducted within the boundaries of the local 
                educational agency;
                    ``(ii) advise the local educational agency 
                regarding--
                            ``(I) how best to coordinate such agency's 
                        activities under this subpart with other 
                        related programs, projects, and activities; and
                            ``(II) the agencies that administer such 
                        programs, projects, and activities; and
                    ``(iii) review program evaluations and other 
                relevant material and make recommendations to the local 
                educational agency on how to improve such agency's drug 
                and violence prevention programs.
    ``(b) Contents of Applications.--An application under this section 
shall contain--
            ``(1) an objective analysis of the current use (and 
        consequences of such use) of alcohol, tobacco, and controlled, 
        illegal, addictive or harmful substances as well as the 
        violence, safety, and discipline problems among students who 
        attend the schools of the applicant (including private school 
        students who participate in the applicant's drug and violence 
        prevention program) that is based on ongoing local assessment 
        or evaluation activities;
            ``(2) a detailed explanation of the local educational 
        agency's comprehensive plan for drug and violence prevention, 
        which shall include a description of--
                    ``(A) how the plan will be coordinated with 
                programs under this Act, the Goals 2000: Educate 
                America Act, and other Acts, as appropriate, in 
                accordance with the provisions of section 14306;
                    ``(B) the local educational agency's measurable 
                goals for drug and violence prevention, and a 
                description of how such agency will assess and publicly 
                report progress toward attaining these goals;
                    ``(C) how the local educational agency will use its 
                distribution under this subpart;
                    ``(D) how the local educational agency will 
                coordinate such agency's programs and projects with 
                community-wide efforts to achieve such agency's goals 
                for drug and violence prevention; and
                    ``(E) how the local educational agency will 
                coordinate such agency's programs and projects with 
                other Federal, State, and local programs for drug-abuse 
                prevention, including health programs; and
            ``(3) such other information and assurances as the State 
        educational agency may reasonably require.
    ``(c) Review of Application.--
            ``(1) In general.--In reviewing local applications under 
        this section, a State educational agency shall use a peer 
        review process or other methods of assuring the quality of such 
        applications.
            ``(2) Considerations.--(A) In determining whether to 
        approve the application of a local educational agency under 
        this section, a State educational agency shall consider the 
        quality of the local educational agency's comprehensive plan 
        under subsection (b)(2) and the extent to which such plan is 
        coordinated with programs under this Act, the Goals 2000: 
        Educate America Act, in accordance with the provisions of 
        section 14306.
            ``(B) A State educational agency may disapprove a local 
        educational agency application under this section in whole or 
        in part and may withhold, limit, or place restrictions on the 
        use of funds allotted to such a local educational agency in a 
        manner the State educational agency determines will best 
        promote the purposes of this part, except that a local 
        educational agency shall be afforded an opportunity to appeal 
        any such disapproval.

``SEC. 11116. LOCAL DRUG AND VIOLENCE PREVENTION PROGRAMS.

    ``(a) Program Requirements.--A local educational agency shall use 
funds received under this subpart to adopt and carry out a 
comprehensive drug and violence prevention program which shall--
            ``(1) be designed, for all students and employees, to--
                    ``(A) prevent the use, possession, and distribution 
                of tobacco, alcohol, and illegal drugs by students and 
                to prevent the illegal use, possession, and 
                distribution of such substances by employees;
                    ``(B) prevent violence and promote school safety; 
                and
                    ``(C) create a disciplined environment conducive to 
                learning; and
            ``(2) include activities to promote the involvement of 
        parents and coordination with community groups and agencies, 
        including the distribution of information about the local 
        educational agency's needs, goals, and programs under this 
        subpart.
    ``(b) Authorized Activities.--A comprehensive drug and violence 
prevention program carried out under this subpart may include--
            ``(1) age-appropriate, developmentally based drug 
        prevention and education programs for all students, from the 
        preschool level through grade 12, that address the legal, 
        social, personal and health consequences of the use of illegal 
        drugs, promote a sense of individual responsibility, and 
        provide information about effective techniques for resisting 
        peer pressure to use illegal drugs;
            ``(2) programs of drug prevention, comprehensive health 
        education, early intervention, pupil services, mentoring, or 
        rehabilitation referral, which emphasize students' sense of 
        individual responsibility and which may include--
                    ``(A) the dissemination of information about drug 
                prevention;
                    ``(B) the professional development of school 
                personnel, parents, students, law enforcement 
                officials, judicial officials, health service providers 
                and community leaders in prevention, education, early 
                intervention, pupil services or rehabilitation 
                referral; and
                    ``(C) the implementation of strategies, including 
                strategies to integrate the delivery of services from a 
                variety of providers, to combat illegal alcohol, 
                tobacco and drug use, such as--
                            ``(i) family counseling;
                            ``(ii) early intervention activities that 
                        prevent family dysfunction, enhance school 
                        performance, and boost attachment to school and 
                        family; and
                            ``(iii) activities, such as community 
                        service and service-learning projects, that are 
                        designed to increase students' sense of 
                        community;
            ``(3) age-appropriate, developmentally based violence 
        prevention and education programs for all students, from the 
        preschool level through grade 12, that address the legal, 
        health, personal, and social consequences of violent and 
        disruptive behavior, including sexual harassment and abuse, and 
        victimization associated with prejudice and intolerance, and 
        that include activities designed to help students develop a 
        sense of individual responsibility and respect for the rights 
        of others, and to resolve conflicts without violence;
            ``(4) violence prevention programs for school-aged youth, 
        which emphasize students' sense of individual responsibility 
        and may include--
                    ``(A) the dissemination of information about school 
                safety and discipline;
                    ``(B) the professional development of school 
                personnel, parents, students, law enforcement 
                officials, judicial officials, and community leaders in 
                designing and implementing strategies to prevent school 
                violence;
                    ``(C) the implementation of strategies, such as 
                conflict resolution and peer mediation, student 
                outreach efforts against violence, anti-crime youth 
                councils (which work with school and community-based 
                organizations to discuss and develop crime prevention 
                strategies), and the use of mentoring programs, to 
                combat school violence and other forms of disruptive 
                behavior, such as sexual harassment and abuse; and
                    ``(D) the development and implementation of 
                character education programs, as a component of a 
                comprehensive drug or violence prevention program, that 
                are tailored by communities, parents and schools; and
                    ``(E) comprehensive, community-wide strategies to 
                prevent or reduce illegal gang activities;
            ``(5) supporting ``safe zones of passage'' for students 
        between home and school through such measures as Drug- and 
        Weapon-Free School Zones, enhanced law enforcement, and 
        neighborhood patrols;
            ``(6) acquiring and installing metal detectors and hiring 
        security personnel;
            ``(7) professional development for teachers and other staff 
        and curricula that promote the awareness of and sensitivity to 
        alternatives to violence through courses of study that include 
        related issues of intolerance and hatred in history;
            ``(8) the promotion of before-and-after school 
        recreational, instructional, cultural, and artistic programs in 
        supervised community settings;
            ``(9) drug abuse resistance education programs, designed to 
        teach students to recognize and resist pressures to use alcohol 
        or other drugs, which may include activities such as classroom 
        instruction by uniformed law enforcement officers, resistance 
        techniques, resistance to peer pressure and gang pressure, and 
        provision for parental involvement; and
            ``(10) the evaluation of any of the activities authorized 
        under this subsection.
    ``(c) Limitations.--
            ``(1) In general.--Not more than 20 percent of the funds 
        made available to a local educational  agency under this 
subpart may be used to carry out the activities described in paragraphs 
(5) and (6) of subsection (b).
            ``(2) Special rule.--A local educational agency shall only 
        be able to use funds received under this subpart for activities 
        described in paragraphs (5) and (6) of subsection (b) if 
        funding for such activities is not received from other Federal 
        agencies.

``SEC. 11117. EVALUATION AND REPORTING.

    ``(a) National Impact Evaluation.--
            ``(1) Biennial evaluation.--The Secretary, in consultation 
        with the Secretary of Health and Human Services, the Director 
        of the Office of National Drug Control Policy, and the Attorney 
        General, shall conduct an independent biennial evaluation of 
        the national impact of programs assisted under this subpart and 
        of other recent and new initiatives to combat violence in 
        schools and submit a report of the findings of such evaluation 
        to the President and the Congress.
            ``(2) Data collection.--(A) The National Center for 
        Education Statistics shall collect data to determine the 
        frequency, seriousness, and incidence of violence in elementary 
        and secondary schools in the States. The Secretary shall 
        collect the data using, wherever appropriate, data submitted by 
        the States pursuant to subsection (b)(2)(B).
            ``(B) Not later than January 1, 2004, the Secretary shall 
        submit to the Congress a report on the data collected under 
        this subsection, together with such recommendations as the 
        Secretary determines appropriate, including estimated costs for 
        implementing any recommendation.
    ``(b) State Report.--
            ``(1) In general.--By October 1, 2003, and every third year 
        thereafter, the chief executive officer of the State, in 
        cooperation with the State educational agency, shall submit to 
        the Secretary a report--
                    ``(A) on the implementation and outcomes of State 
                programs under section 11114 and section 11113(b) and 
                local educational agency programs under section 
                11113(d), as well as an assessment of their 
                effectiveness; and
                    ``(B) on the State's progress toward attaining its 
                goals for drug and violence prevention under 
                subsections (b)(1) and (c)(1) of section 11112.
            ``(2) Special rule.--The report required by this subsection 
        shall be--
                    ``(A) in the form specified by the Secretary;
                    ``(B) based on the State's ongoing evaluation 
                activities, and shall include data on the prevalence of 
                drug use and violence by youth in schools and 
                communities; and
                    ``(C) made readily available to the public.
    ``(c) Local Educational Agency Report.--Each local educational 
agency receiving funds under this subpart shall submit to the State 
educational agency such information, and at such intervals, that the 
State requires to complete the State report required by subsection (b), 
including information on the prevalence of drug use and violence by 
youth in the schools and the community. Such information shall be made 
readily available to the public.

``SEC. 11118. PROGRAMS FOR NATIVE HAWAIIANS.

    ``(a) General Authority.--From the funds made available pursuant to 
section 11111(a)(4) to carry out this section, the Secretary shall make 
grants to or enter into cooperative agreements or contracts with 
organizations primarily serving and representing Native Hawaiians which 
are recognized by the Governor of the State of Hawaii to plan, conduct, 
and administer programs, or portions thereof, which are authorized by 
and consistent with the provisions of this title for the benefit of 
Native Hawaiians.
    ``(b) Definition of Native Hawaiian.--For the purposes of this 
section, the term `Native Hawaiian' means any individual any of whose 
ancestors were natives, prior to 1778, of the area which now comprises 
the State of Hawaii.

                     ``Subpart 2--National Programs

``SEC. 11121. FEDERAL ACTIVITIES.

    ``(a) Program Authorized.--From funds made available to carry out 
this subpart under section 11004(2), the Secretary, in consultation 
with the Secretary of Health and Human Services, the Director of the 
Office of National Drug Control Policy, the Chair of the Ounce of 
Prevention Council, and the Attorney General, shall carry out programs 
to prevent the illegal use of drugs and violence among, and promote 
safety and discipline for, students at all educational levels from 
preschool through the postsecondary level. The Secretary shall carry 
out such programs directly, or through grants, contracts, or 
cooperative agreements with public and private nonprofit organizations 
and individuals, or through agreements with other Federal agencies, and 
shall coordinate such programs with other appropriate Federal 
activities. Such programs may include--
            ``(1) the development and demonstration of innovative 
        strategies for training school personnel, parents, and members 
        of the community, including the demonstration of model 
        preservice training programs for prospective school personnel;
            ``(2) demonstrations and rigorous evaluations of innovative 
        approaches to drug and violence prevention;
            ``(3) the provision of information on drug abuse education 
        and prevention to the Secretary of Health and Human Services 
        for dissemination by the clearinghouse for alcohol and drug 
        abuse information established under section 501(d)(16) of the 
        Public Health Service Act;
            ``(4) the development of curricula related to child abuse 
        prevention and education and the training of personnel to teach 
        child abuse education and prevention to elementary and 
        secondary schoolchildren;
            ``(5) program evaluations in accordance with section 14701 
        that address issues not addressed under section 11117(a);
            ``(6) direct services to schools and school systems 
        afflicted with especially severe drug and violence problems;
            ``(7) activities in communities designated as empowerment 
        zones or enterprise communities that will connect schools to 
        community-wide efforts to reduce drug and violence problems;
            ``(8) developing and disseminating drug and violence 
        prevention materials, including video-based projects and model 
        curricula;
            ``(9) developing and implementing a comprehensive violence 
        prevention strategy for schools and communities, that may 
        include conflict resolution, peer mediation, the teaching of 
        law and legal concepts, and other activities designed to stop 
        violence;
            ``(10) the implementation of innovative activities, such as 
        community service projects, designed to rebuild safe and 
        healthy neighborhoods and increase students' sense of 
        individual responsibility;
            ``(11) grants to noncommercial telecommunications entities 
        for the production and distribution of national video-based 
        projects that provide young people with models for conflict 
        resolution and responsible decisionmaking;
            ``(12) the development of education and training programs, 
        curricula, instructional materials, and professional training 
        and development for preventing and reducing the incidence of 
        crimes and conflicts  motivated by hate in localities most 
directly affected by hate crimes; and
            ``(13) other activities that meet unmet national needs 
        related to the purposes of this title.
    ``(b) Peer Review.--The Secretary shall use a peer review process 
in reviewing applications for funds under this section.

``SEC. 11123. HATE CRIME PREVENTION.

    ``(a) Grant Authorization.--From funds made available to carry out 
this subpart under section 11004(1) the Secretary may make grants to 
local educational agencies and community-based organizations for the 
purpose of providing assistance to localities most directly affected by 
hate crimes.
    ``(b) Use of Funds.--
            ``(1) Program development.--Grants under this section may 
        be used to improve elementary and secondary educational 
        efforts, including--
                    ``(A) development of education and training 
                programs designed to prevent and to reduce the 
                incidence of crimes and conflicts motivated by hate;
                    ``(B) development of curricula for the purpose of 
                improving conflict or dispute resolution skills of 
                students, teachers, and administrators;
                    ``(C) development and acquisition of equipment and 
                instructional materials to meet the needs of, or 
                otherwise be part of, hate crime or conflict programs; 
                and
                    ``(D) professional training and development for 
                teachers and administrators on the causes, effects, and 
                resolutions of hate crimes or hate-based conflicts.
            ``(2) In general.--In order to be eligible to receive a 
        grant under this section for any fiscal year, a local 
        educational agency, or a local educational agency in 
        conjunction with a community-based organization, shall submit 
        an application to the Secretary in such form and containing 
        such information as the office may reasonably require.
            ``(3) Requirements.--Each application under paragraph (2) 
        shall include--
                    ``(A) a request for funds for the purposes 
                described in this section;
                    ``(B) a description of the schools and communities 
                to be served by the grants; and
                    ``(C) assurances that Federal funds received under 
                this section shall be used to supplement, not supplant, 
                non-Federal funds.
            ``(4) Comprehensive plan.--Each application shall include a 
        comprehensive plan that contains--
                    ``(A) a description of the hate crime or conflict 
                problems within the schools or the community targeted 
                for assistance;
                    ``(B) a description of the program to be developed 
                or augmented by such Federal and matching funds;
                    ``(C) assurances that such program or activity 
                shall be administered by or under the supervision of 
                the applicant;
                    ``(D) proper and efficient administration of such 
                program; and
                    ``(E) fiscal control and fund accounting procedures 
                as may be necessary to ensure prudent use, proper 
                disbursement, and accurate accounting of funds received 
                under this section.
    ``(c) Award of Grants.--
            ``(1) Selection of recipients.--The Secretary shall 
        consider the incidence of crimes and conflicts motivated by 
        bias in the targeted schools and communities in awarding grants 
        under this section.
            ``(2) Geographic distribution.--The Secretary shall 
        attempt, to the extent practicable, to achieve an equitable 
        geographic distribution of grant awards.
            ``(3) Dissemination of information.--The Secretary shall 
        attempt, to the extent practicable, to make available 
        information regarding successful hate crime prevention 
        programs, including programs established or expanded with 
        grants under this section.
    ``(d) Reports.--The Secretary shall submit to the Congress a report 
every two years which shall contain a detailed statement regarding 
grants and awards, activities of grant recipients, and an evaluation of 
programs established under this section.

                    ``Subpart 3--General Provisions

``SEC. 11131. DEFINITIONS.

    ``For the purposes of this part:
            ``(1) Community-based organization.--The term `community-
        based organization' means a private nonprofit organization 
        which is representative of a community or significant segments 
        of a community and which provides educational or related 
        services to individuals in the community.
            ``(2) Drug and violence prevention.--The term `drug and 
        violence prevention' means--
                    ``(A) with respect to drugs, prevention, early 
                intervention, rehabilitation referral, or education 
                related to the illegal use of alcohol and the use of 
                controlled, illegal, addictive, or harmful substances, 
                including inhalants and anabolic steroids;
                    ``(B) prevention, early intervention, smoking 
                cessation activities, or education, related to the use 
                of tobacco by children and youth eligible for services 
                under this title; and
                    ``(C) with respect to violence, the promotion of 
                school safety, such that students and school personnel 
                are free from violent and disruptive acts, including 
                sexual harassment and abuse, and victimization 
                associated with prejudice and intolerance, on school 
                premises, going to and from school, and at school-
                sponsored activities, through the creation and 
                maintenance of a school environment that is free of 
                weapons and fosters individual responsibility and 
                respect for the rights of others.
            ``(3) Hate crime.--The term `hate crime' means a crime as 
        described in section 1(b) of the Hate Crime Statistics Act of 
        1990.
            ``(4) Nonprofit.--The term `nonprofit', as applied to a 
        school, agency, organization, or institution means a school, 
        agency, organization, or institution owned and operated by one 
or more nonprofit corporations or associations, no part of the net 
earnings of which inures, or may lawfully inure, to the benefit of any 
private shareholder or individual.
            ``(5) School-aged population.--The term `school-aged 
        population' means the population aged five through 17, as 
        determined by the Secretary on the basis of the most recent 
        satisfactory data available from the Department of Commerce.
            ``(6) School personnel.--The term `school personnel' 
        includes teachers, administrators, guidance counselors, social 
        workers, psychologists, nurses, librarians, and other support 
        staff who are employed by a school or who perform services for 
        the school on a contractual basis.

``SEC. 11132. MATERIALS.

    ``(a) `Wrong and Harmful' Message.--Drug prevention programs 
supported under this part shall convey a clear and consistent message 
that the illegal use of alcohol and other drugs is wrong and harmful.
    ``(b) Curriculum.--The Secretary shall not prescribe the use of 
specific curricula for programs supported under this part, but may 
evaluate the effectiveness of such curricula and other strategies in 
drug and violence prevention.

``SEC. 11133. PROHIBITED USES OF FUNDS.

    ``No funds under this part may be used for--
            ``(1) construction (except for minor remodeling needed to 
        accomplish the purposes of this part); and
            ``(2) medical services, drug treatment or rehabilitation, 
        except for pupil services or referral to treatment for students 
        who are victims of or witnesses to crime or who use alcohol, 
        tobacco, or drugs.

``SEC. 11134. QUALITY RATING.

    ``(a) In General.--The chief executive officer of each State, or in 
the case of a State in which the constitution or law of such State 
designates another individual, entity, or agency in the State to be 
responsible for education activities, such individual, entity, or 
agency, is authorized and encouraged--
            ``(1) to establish a standard of quality for drug, alcohol, 
        and tobacco prevention programs implemented in public 
        elementary schools and secondary schools in the State in 
        accordance with subsection (b); and
            ``(2) to identify and designate, upon application by a 
        public elementary school or secondary school, any such school 
        that achieves such standard as a quality program school.
    ``(b) Criteria.--The standard referred to in subsection (a) shall 
address, at a minimum--
            ``(1) a comparison of the rate of illegal use of drugs, 
        alcohol, and tobacco by students enrolled in the school for a 
        period of time to be determined by the chief executive officer 
        of the State;
            ``(2) the rate of suspensions or expulsions of students 
        enrolled in the school for drug, alcohol, or tobacco-related 
        offenses;
            ``(3) the effectiveness of the drug, alcohol, or tobacco 
        prevention program as proven by research;
            ``(4) the involvement of parents and community members in 
        the design of the drug, alcohol, and tobacco prevention 
        program; and
            ``(5) the extent of review of existing community drug, 
        alcohol, and tobacco prevention programs before implementation 
        of the public school program.
    ``(c) Request for Quality Program School Designation.--A school 
that wishes to receive a quality program school designation shall 
submit a request and documentation of compliance with this section to 
the chief executive officer of the State or the individual, entity, or 
agency described in subsection (a), as the case may be.
    ``(d) Public Notification.--Not less than once a year, the chief 
executive officer of each State or the individual, entity, or agency 
described in subsection (a), as the case may be, shall make available 
to the public a list of the names of each public school in the State 
that has received a quality program school designation in accordance 
with this section.''.

              TITLE XI--PROGRAMS OF NATIONAL SIGNIFICANCE

SEC. 1101. PROGRAMS OF NATIONAL SIGNIFICANCE.

    Title XII (20 U.S.C. 8501 et seq.) is amended to read as follows:

             ``TITLE XII--PROGRAMS OF NATIONAL SIGNIFICANCE

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

``SEC. 12101. FUND FOR THE IMPROVEMENT OF EDUCATION.

    ``(a) Fund Authorized.--From funds appropriated under subsection 
(d), the Secretary is authorized to support nationally significant 
programs and projects to improve the quality of education, assist all 
students to meet challenging State content standards and challenging 
State student performance standards, and contribute to achievement of 
the National Education Goals. The Secretary is authorized to carry out 
such programs and projects directly or through grants to, or contracts 
with, State and local educational agencies, institutions of higher 
education, and other public and private agencies, organizations, and 
institutions.
    ``(b) Uses of Funds.--
            ``(1) In general.--Funds under this section may be used 
        for--
                    ``(A) activities that will promote systemic 
                education reform at the State and local levels, such 
                as--
                            ``(i) research and development related to 
                        challenging State content and challenging State 
                        student performance standards;
                            ``(ii) the development and evaluation of 
                        model strategies for--
                                    ``(I) assessment of student 
                                learning;
                                    ``(II) professional development for 
                                teachers and administrators;
                                    ``(III) parent and community 
                                involvement; and
                                    ``(IV) other aspects of systemic 
                                reform;
                            ``(iii) developing and evaluating 
                        strategies for eliminating ability-grouping 
                        practices, and developing policies and programs 
                        that place all students on a college-
                        preparatory path of study, particularly in 
                        academic fields such as mathematics, science, 
                        English, and social studies, including 
                        comprehensive inservice programs for teachers 
                        and pupil services personnel and academic 
                        enrichment programs that supplement regular 
                        courses for students;
                            ``(iv) developing and evaluating programs 
                        that directly involve parents and family 
                        members in the academic progress of their 
                        children;
                            ``(v) developing and evaluating strategies 
                        for integrating instruction and assessment such 
                        that teachers and administrators can focus on 
                        what students should know and be able to do at 
                        particular grade levels, which instruction 
                        shall promote the synthesis of knowledge, 
                        encourage the development of problem-solving 
                        skills drawing on a vast range of disciplines, 
                        and promote the development of higher order 
                        thinking by all students; and
                            ``(vi) developing and evaluating strategies 
                        for supporting professional development for 
                        teachers across all disciplines and for pupil 
                        services personnel, guidance counselors, and 
                        administrators, including inservice training 
                        that improves the skills of pupil services 
                        personnel, counselors and administrators for 
                        working with students from diverse populations;
                    ``(B) demonstrations at the State and local levels 
                that are designed to yield nationally significant 
                results, including approaches to public school choice 
                and school-based decisionmaking;
                    ``(C) joint activities with other agencies to 
                assist the effort to achieve the National Education 
                Goals, including activities related to improving the 
                transition from preschool to school and from school to 
                work, as well as activities related to the integration 
                of education and health and social services;
                    ``(D) activities to promote and evaluate counseling 
                and mentoring for students, including intergenerational 
                mentoring;
                    ``(E) activities to promote and evaluate 
                coordinated pupil services programs;
                    ``(F) activities to promote comprehensive health 
                education;
                    ``(G) activities to promote environmental 
                education;
                    ``(H) activities to promote consumer, economic, and 
                personal finance education, such as saving, investing, 
                and entrepreneurial education;
                    ``(I) activities to promote programs to assist 
                students to demonstrate competence in foreign 
                languages;
                    ``(J) studies and evaluation of various education 
                reform strategies and innovations being pursued by the 
                Federal Government, States, and local educational 
                agencies;
                    ``(K) activities to promote metric education;
                    ``(L) the identification and recognition of 
                exemplary schools and programs, such as Blue Ribbon 
                Schools;
                    ``(M) programs designed to promote gender equity in 
                education by evaluating and eliminating gender bias in 
                instruction and educational materials, identifying, and 
                analyzing gender inequities in educational practices, 
                and implementing and evaluating educational policies 
                and practices designed to achieve gender equity;
                    ``(N) programs designed to reduce excessive student 
                mobility, retain students who move within a school 
                district at the same school, educate parents about the 
                effect of mobility on a child's education and encourage 
                parents to participate in school activities;
                    ``(O) experiential-based learning, such as service-
                learning;
                    ``(P) the development and expansion of public-
                private partnership programs which extend the learning 
                experience, via computers, beyond the classroom 
                environment into student homes through such programs as 
                the Buddy System Computer Project;
                    ``(Q) other programs and projects that meet the 
                purposes of this section;
                    ``(R) activities to promote child abuse education 
                and prevention programs;
                    ``(S) activities to raise standards and 
                expectations for academic achievement among all 
                students, especially disadvantaged students 
                traditionally underserved in schools;
                    ``(T) activities to provide the academic support, 
                enrichment and motivation to enable all students to 
                reach such standards;
                    ``(U) demonstrations relating to the planning and 
                evaluations of the effectiveness of projects under 
                which local educational agencies or schools contract 
                with private management organizations to reform a 
                school or schools;
                    ``(V) demonstrations that are designed to test 
                whether prenatal and counseling provided to pregnant 
                students may have a positive effect on pregnancy 
                outcomes, with such education and counseling 
                emphasizing the importance of prenatal care, the value 
                of sound diet and nutrition habits, and the harmful 
                effects of smoking, alcohol, and substance abuse on 
                fetal development;
                    ``(W) programs under section 12102;
                    ``(X) programs under section 12103;
                    ``(Y) programs under section 12104; and
                    ``(Z) programs under section 12105;
            ``(2) Additional uses.--The Secretary may also use funds 
        under this section to complete the project periods for direct 
        grants or contracts awarded under the provisions of this Act, 
        the Fund for the Improvement and Reform of Schools and Teaching 
        Act, or title III of the Education for Economic Security Act, 
        as such Acts were in effect on the day preceding the date of 
        the enactment of the Improving America's Schools Act of 1994.
            ``(3) Special rule.--The Secretary shall not make available 
        more than $1,000,000 to carry out paragraph (1)(R), nor more 
        than $1,000,000 to carry out paragraph (1)(V) during the period 
        beginning on October 1, 2002, through September 30, 2007.
    ``(c) Awards.--
            ``(1) In general.--The Secretary may--
                    ``(A) make awards under this section on the basis 
                of competitions announced by the Secretary; and
                    ``(B) support meritorious unsolicited proposals.
            ``(2) Special rule.--The Secretary shall ensure that 
        programs, projects, and activities supported under this section 
        are designed so that the effectiveness of such programs, 
        projects, and activities is readily ascertainable.
            ``(3) Peer review.--The Secretary shall use a peer review 
        process in reviewing applications for assistance under this 
        section and may use funds appropriated under subsection (d) for 
        the cost of such peer review.
    ``(d) Authorization.--For the purpose of carrying out this section, 
there are authorized to be appropriated $250,000,000 for fiscal year 
2002 and such sums as may be necessary for each of the four succeeding 
fiscal years.

``SEC. 12102. ELEMENTARY SCHOOL COUNSELING DEMONSTRATION.

    ``(a) Counseling Demonstration.--
            ``(1) In general.--The Secretary may award grants under 
        this section to establish or expand elementary school 
        counseling programs.
            ``(2) Priority.--In awarding grants under this section, the 
        Secretary shall give special consideration to applications 
        describing programs that--
                    ``(A) demonstrate the greatest need for new or 
                additional counseling services among the children in 
                the elementary schools served by the applicant;
                    ``(B) propose the most promising and innovative 
                approaches for initiating or expanding elementary 
                school counseling; and
                    ``(C) show the greatest potential for replication 
                and dissemination.
            ``(3) Equitable distribution.--In awarding grants under 
        this section, the Secretary shall ensure an equitable 
        geographic distribution among the regions of the United States 
        and among urban, suburban, and rural areas.
            ``(4) Duration.--A grant under this section shall be 
        awarded for a period not to exceed three years.
            ``(5) Maximum grant.--A grant under this section shall not 
        exceed $400,000 for any fiscal year.
    ``(b) Applications.--
            ``(1) In general.--Each local educational agency desiring a 
        grant under this section shall submit an application to the 
        Secretary at such time, in such manner, and accompanied by such 
        information as the Secretary may reasonably require.
            ``(2) Contents.--Each application for a grant under this 
        section shall--
                    ``(A) describe the elementary school population to 
                be targeted by the program, the particular personal, 
                social, emotional, educational, and career development 
                needs of such population, and the current school 
                counseling resources available for meeting such needs;
                    ``(B) describe the activities, services, and 
                training to be provided by the program and the specific 
                approaches to be used to meet the needs described in 
                subparagraph (A);
                    ``(C) describe the methods to be used to evaluate 
                the outcomes and effectiveness of the program;
                    ``(D) describe the collaborative efforts to be 
                undertaken with institutions of higher education, 
                businesses, labor organizations, community groups, 
                social service agencies, and other public or private 
                entities to enhance the program and promote school-
                linked services integration;
                    ``(E) describe collaborative efforts with 
                institutions of higher education which specifically 
                seek to enhance or improve graduate programs 
                specializing in the preparation of elementary school 
                counselors, school psychologists, and school social 
                workers;
                    ``(F) document that the applicant has the personnel 
                qualified to develop, implement, and administer the 
                program;
                    ``(G) describe how any diverse cultural 
                populations, if applicable, would be served through the 
                program;
                    ``(H) assure that the funds made available under 
                this part for any fiscal year will be used to 
                supplement and, to the extent practicable, increase the 
                level of funds that would otherwise be available from 
                non-Federal sources for the program described in the 
                application, and in no case supplant such funds from 
                non-Federal sources; and
                    ``(I) assure that the applicant will appoint an 
                advisory board composed of parents, school counselors, 
                school psychologists, school social workers, other 
                pupil services personnel, teachers, school 
                administrators, and community leaders to advise the 
                local educational agency on the design and 
                implementation of the program.
    ``(c) Use of Funds.--
            ``(1) In general.--Grant funds under this section shall be 
        used to initiate or expand elementary school counseling 
        programs that comply with the requirements in paragraph (2).
            ``(2) Program requirements.--Each program assisted under 
        this section shall--
                    ``(A) be comprehensive in addressing the personal, 
                social, emotional, and educational needs of all 
                students;
                    ``(B) use a developmental, preventive approach to 
                counseling;
                    ``(C) increase the range, availability, quantity, 
                and quality of counseling services in the elementary 
                schools of the local educational agency;
                    ``(D) expand counseling services only through 
                qualified school counselors, school psychologists, and 
                school social workers;
                    ``(E) use innovative approaches to increase 
                children's understanding of peer and family 
                relationships, work and self, decisionmaking, academic 
                and career planning, or to improve social functioning;
                    ``(F) provide counseling services that are well-
                balanced among classroom group and small group 
                counseling, individual counseling, and consultation 
                with parents, teachers, administrators, and other pupil 
                services personnel;
                    ``(G) include inservice training for school 
                counselors, school social workers, school 
                psychologists, other pupil services personnel, 
                teachers, and instructional staff;
                    ``(H) involve parents of participating students in 
                the design, implementation, and evaluation of a 
                counseling program;
                    ``(I) involve collaborative efforts with 
                institutions of higher education, businesses, labor 
                organizations, community groups, social service 
                agencies, or other public or private entities to 
                enhance the program and promote school-linked services 
                integration; and
                    ``(J) evaluate annually the effectiveness and 
                outcomes of the counseling services and activities 
                assisted under this section.
            ``(3) Report.--The Secretary shall issue a report 
        evaluating the programs assisted pursuant to each grant under 
        this subsection at the end of each grant period in accordance 
        with section 14701, but in no case later than January 30, 2005.
            ``(4) Dissemination.--The Secretary shall make the programs 
        assisted under this section available for dissemination, either 
        through the National Diffusion Network or other appropriate 
        means.
            ``(5) Limit on administration.--Not more than five percent 
        of the amounts made available under this section in any fiscal 
year shall be used for administrative costs to carry out this section.
    ``(d) Definitions.--For purposes of this section--
            ``(1) the term `school counselor' means an individual who 
        has documented competence in counseling children and 
        adolescents in a school setting and who--
                    ``(A) possesses State licensure or certification 
                granted by an independent professional regulatory 
                authority;
                    ``(B) in the absence of such State licensure or 
                certification, possesses national certification in 
                school counseling or a specialty of counseling granted 
                by an independent professional organization; or
                    ``(C) holds a minimum of a master's degree in 
                school counseling from a program accredited by the 
                Council for Accreditation of Counseling and Related 
                Educational Programs or the equivalent;
            ``(2) the term `school psychologist' means an individual 
        who--
                    ``(A) possesses a minimum of 60 graduate semester 
                hours in school psychology from an institution of 
                higher education and has completed  1,200 clock hours 
in a supervised school psychology internship, of which 600 hours shall 
be in the school setting;
                    ``(B) possesses State licensure or certification in 
                the State in which the individual works; or
                    ``(C) in the absence of such State licensure or 
                certification, possesses national certification by the 
                National School Psychology Certification Board;
            ``(3) the term `school social worker' means an individual 
        who holds a master's degree in social work and is licensed or 
        certified by the State in which services are provided or holds 
        a school social work specialist credential; and
            ``(4) the term `supervisor' means an individual who has the 
        equivalent number of years of professional experience in such 
        individual's respective discipline as is required of teaching 
        experience for the supervisor or administrative credential in 
        the State of such individual.

``SEC. 12103. PARTNERSHIPS IN CHARACTER EDUCATION PILOT PROJECT.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to make up 
        to a total of ten grants annually to partnerships of State 
        educational agencies and local educational agencies for the 
        design and implementation of character education programs that 
        incorporate the elements of character listed in subsection (d), 
        as well as other character elements identified by applicants.
            ``(2) Maximum amount of grant.--No State educational agency 
        shall receive more than a total of $1,000,000 in grants under 
        this part.
            ``(3) Duration.--Each grant under this section shall be 
        awarded for a period not to exceed five years, of which the 
        State educational agency shall not use more than one year for 
        planning and program design.
    ``(b) State Educational Agency Applications.--
            ``(1) Requirement.--Each State educational agency desiring 
        a grant under this section shall submit an application to the 
        Secretary at such time and in such manner as the Secretary may 
        require.
            ``(2) Partnerships.--Each State educational agency desiring 
        a grant under this section shall form a partnership with at 
        least one local educational agency to be eligible for funding. 
        The partnership shall pursue State and local initiatives to 
        meet the objectives of this section.
            ``(3) Application.--Each application under this section 
        shall include--
                    ``(A) a list of the local educational agencies 
                entering into the partnership with the State 
                educational agency;
                    ``(B) a description of the goals of the 
                partnership;
                    ``(C) a description of activities that will be 
                pursued by the participating local educational 
                agencies, including--
                            ``(i) how parents, students, and other 
                        members of the community, including members of 
                        private and nonprofit organizations, will be 
                        involved in the design and implementation of 
                        the program;
                            ``(ii) curriculum and instructional 
                        practices;
                            ``(iii) methods of teacher training and 
                        parent education that will be used or 
                        developed; and
                            ``(iv) examples of activities that will be 
                        carried out under this part;
                    ``(D) a description of how the State educational 
                agency will provide technical and professional 
                assistance to its local educational agency partners in 
                the development and implementation of character 
                education programs;
                    ``(E) a description of how the State educational 
                agency will evaluate the success of local programs and 
                how local educational agencies will evaluate the 
                progress of their own programs;
                    ``(F) a description of how the State educational 
                agency will assist other interested local educational 
                agencies that are not members of the original 
                partnership in designing and establishing programs;
                    ``(G) a description of how the State educational 
                agency will establish a clearinghouse for information 
                on model programs, materials, and other information the 
                State and local educational agencies determine to be 
                appropriate;
                    ``(H) an assurance that the State educational 
                agency will annually provide to the Secretary such 
                information as may be required to determine the 
                effectiveness of the program; and
                    ``(I) any other information that the Secretary may 
                require.
            ``(4) Non-partner local educational agencies.--Any local 
        educational agency that was not a partner with the State when 
        the application was submitted may become a partner by 
        submitting an application for partnership to the State 
        educational agency, containing such information that the State 
        educational agency may require.
    ``(c) Evaluation and Program Development.--
            ``(1) Requirement.--Each State educational agency receiving 
        a grant under this section shall submit to the Secretary a 
        comprehensive evaluation of the program assisted under this 
        part, including the impact on students, teachers, 
        administrators, parents, and others--
                    ``(A) by the mid-term of the program; and
                    ``(B) not later than one year after completion of 
                such program.
            ``(2) Contracts for evaluation.--Each State educational 
        agency receiving a grant under this section may contract with 
        outside sources, including institutions of higher education, 
        and private and nonprofit organizations, for purposes of 
        evaluating their program and measuring the success of the 
        program toward fostering in students the elements of character 
        listed in subsection (b).
            ``(3) Factors.--Factors which may be considered in 
        evaluating the success of the program may include--
                    ``(A) discipline problems;
                    ``(B) students' grades;
                    ``(C) participation in extracurricular activities;
                    ``(D) parental and community involvement;
                    ``(E) faculty and administration involvement; and
                    ``(F) student and staff morale.
            ``(4) Materials and program development.--Local educational 
        agencies, after consulting with the State educational agency, 
        may contract with outside sources, including institutions of 
        higher education, and private and nonprofit organizations, for 
        assistance in developing curriculum, materials, teacher 
        training, and other activities related to character education.
    ``(d) Elements of Character.--
            ``(1) In general.--Applicants desiring funding under this 
        part shall develop character education  programs that 
incorporate the following elements of character:
                    ``(A) Caring.
                    ``(B) Civic virtue and citizenship.
                    ``(C) Justice and fairness.
                    ``(D) Respect.
                    ``(E) Responsibility.
                    ``(F) Trustworthiness.
                    ``(G) Any other elements deemed appropriate by the 
                members of the partnership.
            ``(2) Additional elements of character.--A local 
        educational agency participating under this section may, after 
        consultation with schools and communities of such agency, 
        define additional elements of character that the agency 
        determines to be important to the schools and communities of 
        such agency.
    ``(e) Use of Funds.--Of the total funds received by a State 
educational agency in any fiscal year under this section--
            ``(1) not more than 30 percent of such funds may be 
        retained by the State educational agency, of which--
                    ``(A) not more than 10 percent of such funds may be 
                used for administrative purposes; and
                    ``(B) the remainder of such funds may be used for--
                            ``(i) collaborative initiatives with local 
                        educational agencies;
                            ``(ii) the establishment of the 
                        clearinghouse, preparation of materials, 
                        teacher training; and
                            ``(iii) other appropriate activities; and
            ``(2) the remaining of such funds shall be used to award 
        subgrants to local educational agencies, of which--
                    ``(A) not more than 10 percent of such funds may be 
                retained for administrative purposes; and
                    ``(B) the remainder of such funds may be used to--
                            ``(i) award subgrants to schools within the 
                        local educational agency; and
                            ``(ii) pursue collaborative efforts with 
                        the State educational agency.
    ``(f) Selection of Grantees.--
            ``(1) Criteria.--The Secretary shall select, through peer 
        review, partnerships to receive grants under this section on 
        the basis of the quality of the applications submitted under 
        subsection (b), taking into consideration such factors as--
                    ``(A) the quality of the activities proposed by 
                local educational agencies;
                    ``(B) the extent to which the program fosters in 
                students the elements of character;
                    ``(C) the extent of parental, student, and 
                community involvement;
                    ``(D) the number of local educational agencies 
                involved in the effort;
                    ``(E) the quality of the plan for measuring and 
                assessing success; and
                    ``(F) the likelihood that the goals of the program 
                will be realistically achieved.
            ``(2) Diversity of projects.--The Secretary shall approve 
        applications under this section in a manner that ensures, to 
        the extent practicable, that programs assisted under this 
        section--
                    ``(A) serve different areas of the Nation, 
                including urban, suburban, and rural areas; and
                    ``(B) serve schools that serve minorities, Native 
                Americans, students of limited-English proficiency, and 
                disadvantaged students.

``SEC. 12104. PROMOTING SCHOLAR-ATHLETE COMPETITIONS.

    ``(a) In General.--The Secretary is authorized to award a grant to 
a nonprofit organization to reimburse such organizations for the costs 
of conducting scholar-athlete games.
    ``(b) Priority.--In awarding the grant under subsection (a), the 
Secretary shall give priority to a nonprofit organization that--
            ``(1) is described in section 501(c)(3) of, and exempt from 
        taxation under section 501(a) of, the Internal Revenue Code of 
        1986, and is affiliated with a university capable of hosting a 
        large educational, cultural, and athletic event that will serve 
        as a national model;
            ``(2) has the capability and experience in administering 
        federally funded scholar-athlete games;
            ``(3) has the ability to provide matching funds, on a 
        dollar-for-dollar basis, from foundations and the private 
        sector for the purpose of conducting a scholar-athlete program;
            ``(4) has the organizational structure and capability to 
        administer a model scholar-athlete program;
            ``(5) has the organizational structure and expertise to 
        replicate the scholar-athlete program in various venues 
        throughout the United States internationally; and
            ``(6) has plans for conducting scholar-athlete games 
        without Federal assistance.

``SEC. 12105. SMALLER LEARNING COMMUNITIES.

    ``(a) In General.--Each local educational agency desiring a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may require. Each such application shall describe--
            ``(1) strategies and methods the applicant will use to 
        create the smaller learning community or communities;
            ``(2) curriculum and instructional practices, including any 
        particular themes or emphases, to be used in the learning 
        environment;
            ``(3) the extent of involvement of teachers and other 
        school personnel in investigating, designing, implementing and 
        sustaining the smaller learning community or communities;
            ``(4) the process to be used for involving students, 
        parents and other stakeholders in the development and 
        implementation of the smaller learning community or 
        communities;
            ``(5) any cooperation or collaboration among community 
        agencies, organizations, businesses, and others to develop or 
        implement a plan to create the smaller learning community or 
        communities;
            ``(6) the training and professional development activities 
        that will be offered to teachers and others involved in the 
        activities assisted under this part;
            ``(7) the goals and objectives of the activities assisted 
        under this part, including a description of how such activities 
        will better enable all students to reach challenging State 
        content standards and State student performance standards;
            ``(8) the methods by which the applicant will assess 
        progress in meeting such goals and objectives;
            ``(9) if the smaller learning community or communities 
        exist as a school-within-a-school, the relationship, including 
        governance and administration, of the smaller learning 
        community to the rest of the school;
            ``(10) a description of the administrative and managerial 
        relationship between the local educational agency and the 
        smaller learning community or communities, including how such 
        agency will demonstrate a commitment to the continuity of the 
        smaller learning community or communities, including the 
        continuity of student and teacher assignment to a particular 
        learning community;
            ``(11) how the applicant will coordinate or use funds 
        provided under this part with other funds provided under this 
        Act or other Federal laws;
            ``(12) grade levels or ages of students who will 
        participate in the smaller learning community or communities; 
        and
            ``(13) the method of placing students in the smaller 
        learning community or communities, such that students are not 
        placed according to ability, performance or any other measure, 
        so that students are placed at random or by their own choice, 
        not pursuant to testing or other judgments.
    ``(b) Authorized Activities.--Funds under this section may be 
used--
            ``(1) to study the feasibility of creating the smaller 
        learning community or communities as well as effective and 
        innovative organizational and instructional strategies that 
        will be used in the smaller learning community or communities;
            ``(2) to research, develop and implement strategies for 
        creating the smaller learning community or communities, as well 
        as effective and innovative changes in curriculum and 
        instruction, geared to high State content standards and State 
        student performance standards;
            ``(3) to provide professional development for school staff 
        in innovative teaching methods that challenge and engage 
        students to be used in the smaller learning community or 
        communities; and
            ``(4) to develop and implement strategies to include 
        parents, business representatives, local institutions of higher 
        education, community-based organizations, and other community 
        members in the smaller learning communities, as facilitators of 
        activities that enable teachers to participate in professional 
        development activities, as well as to provide links between 
        students and their community.

``SEC. 12106. NATIONAL STUDENT AND PARENT MOCK ELECTION.

    ``(a) In General.--The Secretary is authorized to award grants to 
national nonprofit, nonpartisan organizations that work to promote 
voter participation in American elections to enable such organizations 
to carry out voter education activities for students and their parents. 
Such activities shall--
            ``(1) be limited to simulated national elections that 
        permit participation by students and parents from all 50 States 
        in the United States; and
            ``(2) consist of--
                    ``(A) school forums and local cable call-in shows 
                on the national issues to be voted upon in an `issue 
                forum';
                    ``(B) speeches and debates before students and 
                parents by local candidates or stand-ins for such 
                candidates;
                    ``(C) quiz team competitions, mock press 
                conferences and speechwriting competitions;
                    ``(D) weekly meetings to follow the course of the 
                campaign; or
                    ``(E) school and neighborhood campaigns to increase 
                voter turnout, including newsletters, posters, 
                telephone chains, and transportation.
    ``(b) Requirement.--Each organization receiving a grant under this 
section shall present awards to outstanding student and parent mock 
election projects.

``SEC. 12107. MODEL PROJECTS.

    ``(a) Program Authorized.--The Secretary is authorized to award 
grants to cultural institutions to enable such institutions to develop 
and expand model projects of outreach activities for at-risk children 
in the communities served by such institutions, including activities 
which integrate such institution's cultural programming with other 
disciplines, including environmental, mathematics, and science 
programs.
    ``(b) Priority.--In awarding grants under this section the 
Secretary shall give priority to activities that are part of an overall 
State, local, and private commitment, seek to improve learning for at-
risk youth, and are substantially funded by State, local, or private 
funds.

                 ``PART B--GIFTED AND TALENTED CHILDREN

``SEC. 12201. SHORT TITLE.

    ``This part may be cited as the `Jacob K. Javits Gifted and 
Talented Students Education Act of 2000'.

``SEC. 12202. FINDINGS AND PURPOSES.

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

``SEC. 12203. CONSTRUCTION.

    ``Nothing in this part shall be construed to prohibit a recipient 
of funds under this part from serving gifted and talented students 
simultaneously with students with similar educational needs, in the 
same educational settings where appropriate.

``SEC. 12204. AUTHORIZED PROGRAMS.

    ``(a) Establishment of Program.--
            ``(1) In general.--From the sums appropriated under section 
        12207 in any fiscal year the Secretary (after consultation with 
        experts in the field of the education of gifted and talented 
        students) shall make grants to or enter into contracts with 
        State educational agencies, local educational agencies, 
institutions of higher education, or other public agencies and private 
agencies and organizations (including Indian tribes and Indian 
organizations (as such terms are defined by the Indian Self-
Determination and Education Assistance Act) and Native Hawaiian 
organizations) to assist such agencies, institutions, and organizations 
which submit applications in carrying out programs or projects 
authorized by this part that are designed to meet the educational needs 
of gifted and talented students, including the training of personnel in 
the education of gifted and talented students and in the use, where 
appropriate, of gifted and talented services, materials, and methods 
for all students.
            ``(2) Application.--Each entity desiring assistance under 
        this part shall submit an application to the Secretary at such 
        time, in such manner, and containing such information as the 
        Secretary may reasonably require. Each such application shall 
        describe how--
                    ``(A) the proposed gifted and talented services, 
                materials, and methods can be adapted, if appropriate, 
                for use by all students; and
                    ``(B) the proposed programs can be evaluated.
    ``(b) Uses of Funds.--Programs and projects assisted under this 
section may include--
            ``(1) professional development (including fellowships) for 
        personnel (including leadership personnel) involved in the 
        education of gifted and talented students;
            ``(2) establishment and operation of model projects and 
        exemplary programs for serving gifted and talented students, 
        including innovative methods for identifying and educating 
        students who may not be served by traditional gifted and 
        talented programs, summer programs, mentoring programs, service 
        learning programs, and cooperative programs involving business, 
        industry, and education;
            ``(3) training of personnel and parents involved in gifted 
        and talented programs with respect to the impact of gender role 
        socialization on the educational needs of gifted and talented 
        children and in gender equitable education methods, techniques 
        and practices;
            ``(4) implementing innovative strategies, such as 
        cooperative learning, peer tutoring and service learning;
            ``(5) strengthening the capability of State educational 
        agencies and institutions of higher education to provide 
        leadership and assistance to local educational agencies and 
        nonprofit private schools in the planning, operation, and 
        improvement of programs for the identification and education of 
        gifted and talented students and the appropriate use of gifted 
        and talented programs and methods to serve all students;
            ``(6) programs of technical assistance and information 
        dissemination, including how gifted and talented programs and 
        methods, where appropriate, may be adapted for use by all 
        students; and
            ``(7) carrying out--
                    ``(A) research on methods and techniques for 
                identifying and teaching gifted and talented students, 
                and for using gifted and talented programs and methods 
                to serve all students; and
                    ``(B) program evaluations, surveys, and the 
                collection, analysis, and development of information 
                needed to accomplish the purposes of this part.
    ``(c) Establishment of National Center.--
            ``(1) In general.--The Secretary (after consultation with 
        experts in the field of the education of gifted and talented 
        students) shall establish a National Center for Research and 
        Development in the  Education of Gifted and Talented Children 
and Youth through grants to or contracts with one or more institutions 
of higher education or State educational agency, or a combination or 
consortium of such institutions and agencies, for the purpose of 
carrying out activities described in paragraph (7) of subsection (b).
            ``(2) Director.--Such National Center shall have a 
        Director. The Secretary may authorize the Director to carry out 
        such functions of the National Center as may be agreed upon 
        through arrangements with other institutions of higher 
        education, State or local educational agencies, or other public 
        or private agencies and organizations.
    ``(d) Limitation.--Not more than 30 percent of the funds available 
in any fiscal year to carry out the programs and projects authorized by 
this section may be used to conduct activities pursuant to subsection 
(b)(7) or (c).
    ``(e) Coordination.--Research activities supported under this 
section--
            ``(1) shall be carried out in consultation with the Office 
        of Educational Research and Improvement to ensure that such 
        activities are coordinated with and enhance the research and 
        development activities supported by such Office; and
            ``(2) may include collaborative research activities which 
        are jointly funded and carried out with such Office.

``SEC. 12205. PROGRAM PRIORITIES.

    ``(a) General Priority.--In the administration of this part the 
Secretary shall give highest priority--
            ``(1) to the identification of and the provision of 
        services to gifted and talented students who may not be 
        identified and served through traditional assessment methods 
        (including economically disadvantaged individuals, individuals 
        of limited-English proficiency, and individuals with 
        disabilities); and
            ``(2) to programs and projects designed to develop or 
        improve the capability of schools in an entire State or region 
        of the Nation through cooperative efforts and participation of 
        State and local educational agencies, institutions of higher 
        education, and other public and private agencies and 
        organizations (including business, industry, and labor), to 
        plan, conduct, and improve programs for the identification of 
        and service to gifted and talented students, such as mentoring 
        and apprenticeship programs.
    ``(b) Service Priority.--In approving applications for assistance 
under section 12204(a)(2), the Secretary shall assure that in each 
fiscal year at least one-half of the applications approved under such 
section address the priority described in subsection (a)(1).

``SEC. 12206. GENERAL PROVISIONS.

    ``(a) Participation of Private School Children and Teachers.--In 
making grants and entering into contracts under this part, the 
Secretary shall ensure, where appropriate, that provision is made for 
the equitable participation of students and teachers in private 
nonprofit elementary and secondary schools, including the participation 
of teachers and other personnel in professional development programs 
serving such children.
    ``(b) Review, Dissemination, and Evaluation.--The Secretary shall--
            ``(1) use a peer review process in reviewing applications 
        under this part;
            ``(2) ensure that information on the activities and results 
        of programs and projects funded under this part is disseminated 
        to appropriate State and local agencies and other appropriate 
        organizations, including nonprofit private organizations; and
            ``(3) evaluate the effectiveness of programs under this 
        part in accordance with section 14701, both in terms of the 
        impact on students traditionally served in separate gifted and 
        talented programs and on other students, and submit the results 
        of such evaluation to Congress not later than January 1, 2005.
    ``(c) Program Operations.--The Secretary shall ensure that the 
programs under this part are administered within the Department by a 
person who has recognized professional qualifications and experience in 
the field of the education of gifted and talented students and who 
shall--
            ``(1) administer the programs authorized by this part;
            ``(2) coordinate all programs for gifted and talented 
        students administered by the Department;
            ``(3) serve as a focal point of national leadership and 
        information on the educational needs of gifted and talented 
        students and the availability of educational services and 
        programs designed to meet such needs; and
            ``(4) assist the Assistant Secretary of the Office of 
        Educational Research and Improvement in identifying research 
        priorities which reflect the needs of gifted and talented 
        students.

``SEC. 12207. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $7,500,000 for fiscal 
year 2002 and such sums as may be necessary for each of the four 
succeeding fiscal years to carry out the provisions of this part.

                      ``PART D--ARTS IN EDUCATION

                      ``Subpart 1--Arts Education

``SEC. 12401. SUPPORT FOR ARTS EDUCATION.

    ``(a) Findings.--The Congress finds that--
            ``(1) the arts are forms of understanding and ways of 
        knowing that are fundamentally important to education;
            ``(2) the arts are important to excellent education and to 
        effective school reform;
            ``(3) the most significant contribution of the arts to 
        education reform is the transformation of teaching and 
        learning;
            ``(4) such transformation is best realized in the context 
        of comprehensive, systemic education reform;
            ``(5) demonstrated competency in the arts for American 
        students is among the National Education Goals;
            ``(6) participation in performing arts activities has 
        proven to be an effective strategy for promoting the inclusion 
        of persons with disabilities in mainstream settings;
            ``(7) opportunities in the arts have enabled persons of all 
        ages with disabilities to participate more fully in school and 
        community activities;
            ``(8) the arts can motivate at-risk students to stay in 
        school and become active participants in the educational 
        process; and
            ``(9) arts education should be an integral part of the 
        elementary and secondary school curriculum.
    ``(b) Purposes.--The purposes of this subpart are to--
            ``(1) support systemic education reform by strengthening 
        arts education as an integral part of the elementary and 
        secondary school curriculum;
            ``(2) help ensure that all students have the opportunity to 
        learn to challenging State content standards and challenging 
        State student performance standards in the arts; and
            ``(3) support the national effort to enable all students to 
        demonstrate competence in the arts in accordance with the 
        National Education Goals.
    ``(c) Eligible Recipients.--In order to carry out the purposes of 
this subpart, the Secretary is authorized to award grants to, or enter 
into contracts or cooperative agreements with--
            ``(1) State educational agencies;
            ``(2) local educational agencies;
            ``(3) institutions of higher education;
            ``(4) museums and other cultural institutions; and
            ``(5) other public and private agencies, institutions, and 
        organizations.
    ``(d) Authorized Activities.--Funds under this subpart may be used 
for--
            ``(1) research on arts education;
            ``(2) the development of, and dissemination of information 
        about, model arts education programs;
            ``(3) the development of model arts education assessments 
        based on high standards;
            ``(4) the development and implementation of curriculum 
        frameworks for arts education;
            ``(5) the development of model preservice and inservice 
        professional development programs for arts educators and other 
        instructional staff;
            ``(6) supporting collaborative activities with other 
        Federal agencies or institutions involved in arts education, 
        such as the National Endowment for the Arts, the Institute of 
        Museum and Library Services, the John F. Kennedy Center for the 
        Performing Arts, Very Special Arts, and the National Gallery of 
        Art;
            ``(7) supporting model projects and programs in the 
        performing arts for children and youth through arrangements 
        made with the John F. Kennedy Center for the Performing Arts;
            ``(8) supporting model projects and programs by Very 
        Special Arts which assure the participation in mainstream 
        settings in arts and education programs of individuals with 
        disabilities;
            ``(9) supporting model projects and programs to integrate 
        arts education into the regular elementary and secondary school 
        curriculum; and
            ``(10) other activities that further the purposes of this 
        subpart.
    ``(e) Coordination.--
            ``(1) In general.--A recipient of funds under this subpart 
        shall, to the extent possible, coordinate projects assisted 
        under this subpart with appropriate activities of public and 
        private cultural agencies, institutions, and organizations, 
        including museums, arts education associations, libraries, and 
        theaters.
            ``(2) Special rule.--In carrying out this subpart, the 
        Secretary shall coordinate with the National Endowment for the 
        Arts, the Institute of Museum and Library Services, the John F. 
        Kennedy Center for the Performing Arts, Very Special Arts, and 
        the National Gallery of Art.
    ``(f) Authorization.--
            ``(1) In general.--For the purpose of carrying out this 
        subpart, there are authorized to be appropriated $28,000,000 
        for fiscal year 2002 and such sums as may be necessary for each 
        of the four succeeding fiscal years.
            ``(2) Special rule.--If the amount appropriated under 
        paragraph (1) for any fiscal year is $9,000,000 or less, then 
        such amount shall only be available to carry out the activities 
        described in paragraphs (7) and (8) of subsection (d).

   ``Subpart 2--Cultural Partnerships for At-Risk Children and Youth

``SEC. 12411. FINDINGS AND PURPOSE.

    ``(a) Findings.--The Congress finds:
            ``(1) With local school budget cuts there are inadequate 
        arts and cultural programs available for children and youth in 
        schools, especially at the elementary school level.
            ``(2) The arts promote progress in academic subjects as 
        shown by research conducted by the National Endowment for the 
        Arts.
            ``(3) Children and youth who receive instruction in the 
        arts and humanities, or who are involved in cultural 
        activities, remain in school longer and are more successful 
        than children who do not receive such instruction.
            ``(4) Learning in the arts and humanities promotes progress 
        in other academic subjects, and generates positive self-esteem 
        and a greater sense of accomplishment in young people.
            ``(5) School-university and school-cultural institution 
        partnerships that upgrade teacher training in the arts and 
        humanities have significantly contributed to improved 
        instruction and achievement levels of school-aged children.
            ``(6) Museum outreach, cultural activities and informal 
        education for at-risk children and youth have contributed 
        significantly to the educational achievement and enhanced 
        interest in learning of at-risk children and youth.
            ``(7) The Goals 2000: Educate America Act, other 
        legislation and local, State and national resources support the 
        integration of the arts and humanities into the regular 
        curriculum and school day for all children.
            ``(8) While all children benefit from instruction in the 
        arts and the humanities, at-risk children and youth have a 
        special, additional need for arts and cultural programs both in 
        school and after school.
    ``(b) Purpose.--The purpose of this subpart is to make 
demonstration grants to eligible entities to improve the educational 
performance and future potential of at-risk children and youth by 
providing comprehensive and coordinated educational and cultural 
services.

``SEC. 12412. PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award grants to 
eligible entities to pay the Federal share of the costs of the 
activities described in section 12413.
    ``(b) Special Requirements.--
            ``(1) In general.--The Secretary shall award grants under 
        this subpart only to programs designed to--
                    ``(A) promote and enhance educational and cultural 
                activities;
                    ``(B) provide multi-year services to at-risk 
                children and youth and to integrate community cultural 
                resources into in-school and after-school educational 
                programs;
                    ``(C) provide integration of community cultural 
                resources into the regular curriculum and school day;
                    ``(D) focus school and cultural resources in the 
                community on coordinated cultural services to address 
                the needs of at-risk children and youth;
                    ``(E) provide effective cultural programs to 
                facilitate the transition from preschool programs to 
                elementary school programs, including programs under 
                the Head Start Act and part H of the Individuals with 
                Disabilities Education Act;
                    ``(F) facilitate school-to-work transition from 
                secondary schools and alternative schools to job 
                training, higher education and employment through 
                educational programs and activities that utilize school 
                resources;
                    ``(G) increase parental and community involvement 
                in the educational, social, and cultural development of 
                at-risk children and youth; or
                    ``(H)(i) develop programs and strategies that 
                provide high-quality coordinated educational and 
                cultural services; and
                    ``(ii) provide a model to replicate such services 
                in other schools and communities.
            ``(2) Partnership.--An interagency partnership comprised of 
        the Secretary of Education, the Chairman of the National 
        Endowment for the Humanities, the Chairman of the National 
        Endowment for the Arts, and the Director of the Institute of 
        Museum and Library Services, or their designees, shall 
        establish criteria and procedures for awarding grants, 
        including the establishment of panels to review the 
        applications, and shall administer the grants program 
        authorized by this section. The Secretary shall publish such 
        criteria and procedures in the Federal Register.
            ``(3) Coordination.--Grants may only be awarded under this 
        subpart to eligible entities that agree to coordinate 
        activities carried out under other Federal, State, and local 
        grants, received by the members of the partnership for purposes 
        and target populations described in this subpart, into an 
        integrated service delivery system located at a school, 
        cultural, or other community-based site accessible to and 
        utilized by at-risk youth.
            ``(4) Eligible entities.--For purposes of this subpart, the 
        term `eligible entity' means a partnership between--
                    ``(A) a local educational agency or an individual 
                school that is eligible to participate in a schoolwide 
                program under section 1114; and
                    ``(B) at least one institution of higher education, 
                museum, local arts agency, or cultural entity that is 
                accessible to individuals within the school district of 
                such local educational agency or school, and that has a 
                history of providing quality services to the community, 
                which may include--
                            ``(i) nonprofit institutions of higher 
                        education, museums, libraries, performing, 
                        presenting and exhibiting arts organizations, 
                        literary arts organizations, State and local 
                        arts organizations, cultural institutions, and 
                        zoological and botanical organizations; or
                            ``(ii) private for-profit entities with a 
                        history of training children and youth in the 
                        arts.
            ``(5) Geographic distribution.--In awarding grants under 
        this subpart the Secretary, to the extent feasible, shall 
        ensure an equitable geographic distribution of such grants.
            ``(6) Duration.--Grants made under this subpart may be 
        renewable for a maximum of five years if the Secretary 
        determines that the eligible recipient has made satisfactory 
        progress toward the achievement of the program objectives 
        described in the application.
            ``(7) Models.--The Secretary, in consultation with the 
        Chairman of the National Endowment for the Humanities, the 
        Chairman of the National Endowment for the Arts and the 
        director of the Institute of Museum and Library Services, or 
        their designees, shall submit successful models under this 
        title to the National Diffusion Network for review.
    ``(c) Target Population.--To be eligible for a grant under this 
subpart, an eligible entity shall serve--
            ``(1) students enrolled in schools participating in a 
        schoolwide program under section 1114 and the families of such 
        students to the extent practicable;
            ``(2) out-of-school children and youth at risk of 
        disadvantages resulting from teenage parenting, substance 
        abuse, recent migration, disability, limited-English 
        proficiency, illiteracy, being the child of a teenage parent, 
        living in a single parent household, or dropping out of school; 
        or
            ``(3) any combination of in-school and out-of-school at-
        risk children and youth.

``SEC. 12413. AUTHORIZED ACTIVITIES.

    ``(a) In General.--Grants awarded under this subpart may be used--
            ``(1) to plan, develop, acquire, expand, and improve 
        school-based or community-based coordinated educational and 
        cultural programs to strengthen the educational performance and 
        future potential of in-school or out-of-school at-risk children 
        and youth through grants, cooperative agreements, contracts for 
        services, or administrative coordination;
            ``(2) to provide at-risk students with integrated cultural 
        activities designed to develop a love of learning that fosters 
        the smooth transition of preschool children to elementary 
        school;
            ``(3) to design collaborative cultural activities for 
        students in secondary or alternative schools that ensure the 
        smooth transition to job training, higher education, or full 
        employment;
            ``(4) to provide child care for children of at-risk 
        students who would not otherwise be able to participate in the 
        program;
            ``(5) to provide transportation necessary for participation 
        in the program;
            ``(6) to work with existing school personnel to develop 
        curriculum materials and programs in the arts;
            ``(7) to work with existing school personnel on staff 
        development activities that encourage the integration of the 
        arts into the curriculum;
            ``(8) for stipends that allow local artists to work with 
        at-risk children and youth in schools;
            ``(9) for training individuals who are not trained to work 
        with children and youth;
            ``(10) for cultural programs that encourage the active 
        participation of parents in the education of their children;
            ``(11) for programs that use the arts and culture to reform 
        current school practices, including lengthening the school day 
        or academic year;
            ``(12) for equipment or supplies that the Secretary 
        determines appropriate; and
            ``(13) for evaluation, administration, and supervision.
    ``(b) Planning Grants.--
            ``(1) Application.--An eligible entity may submit an 
        application to the Secretary for a planning grant for an amount 
        not to exceed $50,000. Such grants shall be for periods of not 
        more than one year.
            ``(2) Limit on planning grants.--Not more than 10 percent 
        of the amounts appropriated in each fiscal year under this 
        subpart shall be used for grants under this subsection, and an 
        eligible entity may receive not more than one such planning 
        grant.
    ``(c) General Provisions.--
            ``(1) In general.--Each eligible entity desiring a grant 
        under this subpart shall submit an application to the Secretary 
        at such time, in such manner, and accompanied by such 
        information as the Secretary may reasonably require.
            ``(2) Contents.--Each application submitted pursuant to 
        paragraph (1) shall--
                    ``(A) describe the cultural entity or entities that 
                will participate in the partnership;
                    ``(B) describe the target population to be served;
                    ``(C) describe the services to be provided;
                    ``(D) describe a plan for evaluating the success of 
                the program;
                    ``(E) in the case of each local educational agency 
                or school participating in the eligible recipient 
                partnership, describe how the activities assisted under 
                this subpart will be perpetuated beyond the duration of 
                the grant;
                    ``(F) describe the manner in which the eligible 
                entity will improve the educational achievement or 
                future potential of at-risk youth through more 
                effective coordination of cultural services in the 
                community;
                    ``(G) describe the overall and operational goals of 
                the program;
                    ``(H) describe the nature and location of all 
                planned sites where services will be delivered and a 
                description of services which will be provided at each 
                site; and
                    ``(I) describe training that will be provided to 
                individuals who are not trained to work with children 
                and youth, and how teachers will be involved.

``SEC. 12414. PAYMENTS; AMOUNTS OF AWARD; COST SHARE; LIMITATIONS.

    ``(a) Payments.--
            ``(1) In general.--The Secretary shall pay to each eligible 
        recipient having an application approved under section 12413(c) 
        the Federal share of the cost of the activities described in 
        the application.
            ``(2) Special rule.--(A) Grants awarded under this subpart 
        shall be of sufficient size, scope, and quality to be 
        effective.
            ``(B) The Secretary shall award grants under this subpart 
        so as to ensure nonduplication of services provided by grant 
        recipients and services provided by--
                    ``(i) the National Endowment for the Humanities;
                    ``(ii) the National Endowment for the Arts; and
                    ``(iii) the Institute of Museum and Library 
                Services.
    ``(b) Cost Share.--
            ``(1) Federal share.--The Federal share of a grant under 
        this subpart shall be 80 percent of the cost of carrying out 
        the activities described in the application.
            ``(2) Non-federal share.--The non-Federal share of a grant 
        under this subpart shall be 20 percent of the cost of carrying 
        out the activities described in the application and may be in 
        cash or in kind, fairly evaluated, including the provision of 
        equipment, services, or facilities.
    ``(c) Limitations.--
            ``(1) Noninstructional services.--Not more than 25 percent 
        of the grant funds provided in any fiscal year under this 
        subpart may be used for noninstructional activities such as the 
        activities described in paragraphs (4), (5), and (12) of 
        section 12413(a).
            ``(2) Supplement and not supplant.--Grant funds awarded 
        under this part shall be used to supplement not supplant the 
        amount of funds made available from non-Federal sources, for 
        the activities assisted under this subpart, in amounts that 
        exceed the amounts expended for such activities in the year 
        preceding the year for which the grant is awarded.
            ``(3) Administrative costs.--(A) The Secretary may reserve 
        not more than five percent of the grant funds received under 
        this subpart in each fiscal year for the costs of 
        administration.
            ``(B) Each eligible recipient may reserve not more than 5 
        percent of any grant funds received under this subpart in each 
        fiscal year for the costs of administration.

``SEC. 12415. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subpart, $45,000,000 for fiscal year 2002, and such sums as may be 
necessary for each of the four succeeding fiscal years.

            ``PART E--INEXPENSIVE BOOK DISTRIBUTION PROGRAM

``SEC. 12501. INEXPENSIVE BOOK DISTRIBUTION PROGRAM FOR READING 
              MOTIVATION.

    ``(a) Authorization.--The Secretary is authorized to enter into a 
contract with Reading is Fundamental (RIF) (hereafter in this section 
referred to as ``the contractor'') to support and promote programs, 
which include the distribution of inexpensive books to students, that 
motivate children to read.
    ``(b) Requirements of Contract.--Any contract entered into under 
subsection (a) shall--
            ``(1) provide that the contractor will enter into 
        subcontracts with local private nonprofit groups or 
        organizations, or with public agencies, under which each 
        subcontractor will agree to establish, operate, and provide the 
        non-Federal share of the cost of reading motivation programs 
        that include the distribution of books, by gift, to the extent 
        feasible, or loan, to children from birth through secondary 
        school age, including those in family literacy programs;
            ``(2) provide that funds made available to subcontractors 
        will be used only to pay the Federal share of the cost of such 
        programs;
            ``(3) provide that in selecting subcontractors for initial 
        funding, the contractor will give priority to programs that 
        will serve a substantial number or percentage of children with 
        special needs, such as--
                    ``(A) low-income children, particularly in high-
                poverty areas;
                    ``(B) children at risk of school failure;
                    ``(C) children with disabilities;
                    ``(D) foster children;
                    ``(E) homeless children;
                    ``(F) migrant children;
                    ``(G) children without access to libraries;
                    ``(H) institutionalized or incarcerated children; 
                and
                    ``(I) children whose parents are institutionalized 
                or incarcerated;
            ``(4) provide that the contractor will provide such 
        technical assistance to subcontractors as may be necessary to 
        carry out the purpose of this section;
            ``(5) provide that the contractor will annually report to 
        the Secretary the number of, and describe, programs funded 
        under paragraph (3); and
            ``(6) include such other terms and conditions as the 
        Secretary determines to be appropriate to ensure the 
        effectiveness of such programs.
    ``(c) Restriction on Payments.--The Secretary shall make no payment 
of the Federal share of the cost of acquiring and distributing books 
under any contract under this section unless the Secretary determines 
that the contractor or subcontractor, as the case may be, has made 
arrangements with book publishers or distributors to obtain books at 
discounts at least as favorable as discounts that are customarily given 
by such publisher or distributor for book purchases made under similar 
circumstances in the absence of Federal assistance.
    ``(d) Definition of `Federal Share'.--For the purpose of this 
section, the term `Federal share' means, with respect to the cost to a 
subcontractor of purchasing books to be paid under this section, 75 
percent of such costs to the subcontractor, except that the Federal 
share for programs serving children of migrant or seasonal farmworkers 
shall be 100 percent of such costs to the subcontractor.
    ``(e) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated $10,300,000 
for fiscal year 2002 and such sums as may be necessary for each of the 
four succeeding fiscal years.

                       ``PART F--CIVIC EDUCATION

``SEC. 12601. INSTRUCTION ON THE HISTORY AND PRINCIPLES OF DEMOCRACY IN 
              THE UNITED STATES.

    ``(a) General Authority.--
            ``(1) Program established.--(A) The Secretary is authorized 
        to carry out a program to enhance the attainment of the third 
        and sixth National Education Goals by educating students about 
        the history and principles of the Constitution of the United 
        States, including the Bill of Rights, and to foster civic 
        competence and responsibility.
            ``(B) Such program shall be known as `We the People . . . 
        The Citizen and the Constitution'.
            ``(2) Educational activities.--The program required by 
        paragraph (1) shall--
                    ``(A) continue and expand the educational 
                activities of the `We the People . . . The Citizen and 
                the Constitution' program administered by the Center 
                for Civic Education; and
                    ``(B) enhance student attainment of challenging 
                content standards in civics and government.
            ``(3) Contract or grant authorized.--The Secretary is 
        authorized to award a grant or enter into a contract with the 
        Center for Civic Education to carry out the program described 
        in paragraph (1).
    ``(b) Program Content.--The education program authorized by this 
section shall provide--
            ``(1) a course of instruction on the basic principles of 
        our Nation's constitutional democracy and the history of the 
        Constitution and the Bill of Rights;
            ``(2) at the request of a participating school, school and 
        community simulated congressional hearings following the course 
        of study; and
            ``(3) an annual national competition of simulated 
        congressional hearings for secondary students who wish to 
        participate in such program.
    ``(c) Availability of Program.--The education program authorized by 
this section shall be made available to public and private elementary 
and secondary schools in the 435 congressional districts, the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, 
and the District of Columbia.
    ``(d) Special Rule.--After the provisions of subsection (b) have 
been implemented, funds provided under this section may be used for--
            ``(1) advanced training of teachers about the United States 
        Constitution and the political system the United States 
        created; or
            ``(2) a course of instruction at the middle school level on 
        the roles of State and local governments in the Federal system 
        established by the Constitution, which course shall provide 
        for--
                    ``(A) optional school and community simulated State 
                legislative hearings;
                    ``(B) an annual competition of simulated 
                legislative hearings at the State legislative district, 
                State, and national levels for middle school students 
                who wish to participate in the program; and
                    ``(C) participation by public and private middle 
                schools in the 50 States, the District of Columbia, the 
                Commonwealth of Puerto Rico, Guam, American Samoa, the 
                Virgin Islands, and the Commonwealth of the Northern 
                Mariana Islands.

``SEC. 12602. INSTRUCTION IN CIVICS, GOVERNMENT, AND THE LAW.

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

``SEC. 12603. REPORT; AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Report.--The Secretary shall report, on a biennial basis to 
the Committee on Education and Labor of the House of Representatives 
and to the Committee on Labor and Human Resources of the Senate 
regarding the distribution and use of funds authorized under this part.
    ``(b) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this part $15,000,000 for fiscal year 2001 and 
        such sums as may be necessary for each of the four succeeding 
        fiscal years.
            ``(2) Allocation.--Except as provided in paragraph (3), 
        from the amount appropriated under subsection (a), the 
        Secretary shall allocate--
                    ``(A) 40 percent of such amount to carry out 
                section 12601; and
                    ``(B) 60 percent of such amount to carry out 
                section 12602.
            ``(3) Special rule.--From funds appropriated under 
        paragraph (1), the Secretary shall make available for fiscal 
        year 2001 and each succeeding fiscal year thereafter for the 
        programs under sections 12101 and 12102 not less than the 
        amount made available for fiscal year 1994 to carry out such 
        programs under sections 4609 and 1562, respectively, of this 
Act (as such sections were in effect on the day preceding the date of 
enactment of the Improving America's Schools Act of 1994).

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

``SEC. 12701. FINDINGS.

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

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

``SEC. 12711. ESTABLISHMENT.

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

``SEC. 12712. APPLICATIONS.

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

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

``SEC. 12721. ESTABLISHMENT.

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

``SEC. 12722. APPLICATIONS.

    ``(a) Application Required.--No grant under this subpart may be 
made except upon an application at such time, in such manner, and 
accompanied by such information as the Secretary may reasonably 
require.
    ``(b) Contents of Application.--Each such application shall contain 
provisions to assure--
            ``(1) that fellowship grants are made only to teachers who 
        have worked with at least one student from such teacher's 
        school who participates in the programs described in section 
        12711(a);
            ``(2) that not more than one teacher in each school 
        participating in the programs provided for in section 12711(a) 
        may receive a fellowship in any fiscal year; and
            ``(3) the proper disbursement of the funds received under 
        this subpart.

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

``SEC. 12731. ESTABLISHMENT.

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

``SEC. 12732. APPLICATIONS.

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

                    ``Subpart 4--General Provisions

``SEC. 12741. ADMINISTRATIVE PROVISIONS.

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

``SEC. 12742. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out the provisions of subparts 1, 2, and 3 of this part $4,400,000 for 
fiscal year 2002 and such sums as may be necessary of each of the four 
succeeding fiscal years.
    ``(b) Special Rule.--Of the funds appropriated pursuant to 
subsection (a), not more than 30 percent may be used for teachers 
associated with students participating in the programs described in 
section 12711(a).

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

``SEC. 12801. SHORT TITLE.

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

``SEC. 12802. FINDINGS.

    ``The Congress finds that--
            ``(1) a local public school often serves as a center for 
        the delivery of education and human resources for all members 
        of a community;
            ``(2) public schools, primarily in rural and inner city 
        communities, should collaborate with other public and nonprofit 
        agencies and organizations, local businesses, educational 
        entities (such as vocational and adult education programs, 
        school-to-work programs, community colleges, and universities), 
        recreational, cultural, and other community and human service 
        entities, for the purpose of meeting the needs of, and 
        expanding the opportunities available to, the residents of the 
        communities served by such schools;
            ``(3) by using school facilities, equipment, and resources, 
        communities can promote a more efficient use of public 
        education facilities, especially in rural and inner city areas 
        where limited financial resources have enhanced the necessity 
        for local public schools to become social service centers;
            ``(4) the high technology, global economy of the 21st 
        century will require lifelong learning to keep America's 
        workforce competitive and successful, and local public schools 
        should provide centers for lifelong learning and educational 
        opportunities for individuals of all ages; and
            ``(5) 21st Century Community Learning Centers enable the 
        entire community to develop an education strategy that 
        addresses the educational needs of all members of local 
        communities.

``SEC. 12803. PROGRAM AUTHORIZATION.

    ``(a) Grants by the Secretary.--The Secretary is authorized, in 
accordance with the provisions of this part, to award grants to rural 
and inner-city public elementary or secondary schools, or consortia of 
such schools, to enable such schools or consortia to plan, implement, 
or to expand projects that benefit the educational, health, social 
service, cultural, and recreational needs of a rural or inner-city 
community.
    ``(b) Equitable Distribution.--In awarding grants under this part, 
the Secretary shall assure an equitable distribution of assistance 
among the States, among urban and rural areas of the United States, and 
among urban and rural areas of a State.
    ``(c) Grant Period.--The Secretary shall award grants under this 
part for a period not to exceed 3 years.
    ``(d) Amount.--The Secretary shall not award a grant under this 
part in any fiscal year in an amount less than $35,000.

``SEC. 12804. APPLICATION REQUIRED.

    ``(a) Application.--To be eligible to receive a grant under this 
part, an elementary or secondary school or consortium shall submit an 
application to the Secretary at such time, in such manner, and 
accompanied by such information as the Secretary may reasonably 
prescribe. Each such application shall include--
            ``(1) a comprehensive local plan that enables the school or 
        consortium to serve as a center for the delivery of education 
        and human resources for members of a community;
            ``(2) an evaluation of the needs, available resources, and 
        goals and objectives for the proposed project in order to 
        determine which activities will be undertaken to address such 
        needs; and
            ``(3) a description of the proposed project, including--
                    ``(A) a description of the mechanism that will be 
                used to disseminate information in a manner that is 
understandable and accessible to the community;
                    ``(B) identification of Federal, State, and local 
                programs to be merged or coordinated so that public 
                resources may be maximized;
                    ``(C) a description of the collaborative efforts to 
                be undertaken by community-based organizations, related 
                public agencies, businesses, or other appropriate 
                organizations;
                    ``(D) a description of how the school or consortium 
                will serve as a delivery center for existing and new 
                services, especially for interactive telecommunication 
                used for education and professional training; and
                    ``(E) an assurance that the school or consortium 
                will establish a facility utilization policy that 
                specifically states--
                            ``(i) the rules and regulations applicable 
                        to building and equipment use; and
                            ``(ii) supervision guidelines.
    ``(b) Priority.--The Secretary shall give priority to applications 
describing projects that offer a broad selection of services which 
address the needs of the community.

``SEC. 12805. USES OF FUNDS.

    ``Grants awarded under this part may be used to plan, implement, or 
expand community learning centers which include not less than four of 
the following activities:
            ``(1) Literacy education programs.
            ``(2) Senior citizen programs.
            ``(3) Children's day care services.
            ``(4) Integrated education, health, social service, 
        recreational, or cultural programs.
            ``(5) Summer and weekend school programs in conjunction 
        with recreation programs.
            ``(6) Nutrition and health programs.
            ``(7) Expanded library service hours to serve community 
        needs.
            ``(8) Telecommunications and technology education programs 
        for individuals of all ages.
            ``(9) Parenting skills education programs.
            ``(10) Support and training for child day care providers.
            ``(11) Employment counseling, training, and placement.
            ``(12) Services for individuals who leave school before 
        graduating from secondary school, regardless of the age of such 
        individual.
            ``(13) Services for individuals with disabilities.

``SEC. 12806. DEFINITION.

    ``For the purpose of this part, the term `community learning 
center' means an entity within a public elementary or secondary school 
building that--
            ``(1) provides educational, recreational, health, and 
        social service programs for residents of all ages within a 
        local community; and
            ``(2) is operated by a local educational agency in 
        conjunction with local governmental agencies, businesses, 
        vocational education programs, institutions of higher 
        education, community colleges, and cultural, recreational, and 
        other community and human service entities.

``SEC. 12807. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $850,000,000 for fiscal 
year 2002, and such sums as may be necessary for each of the four 
succeeding fiscal years, to carry out this part.

             ``PART I--URBAN AND RURAL EDUCATION ASSISTANCE

``SEC. 12851. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Demonstration Grants.--
            ``(1) In general.--There are authorized to be appropriated 
        $125,000,000 for fiscal year 2002, and such sums as may be 
        necessary for each of the four succeeding fiscal years, to 
        carry out subparts 1 and 2 (other than section 12875).
            ``(2) Reservation for subpart 1.--The Secretary shall 
        reserve 50 percent of the amount appropriated under paragraph 
        (1) to carry out subpart 1.
            ``(3) Reservation for subpart 2.--The Secretary shall 
        reserve 50 percent of the amount appropriated under paragraph 
        (1) to carry out subpart 2 (other than section 12875).
    ``(b) Higher Education Grants.--There are authorized to be 
appropriated $25,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the four succeeding fiscal years to carry out 
section 12875.
    ``(c) Federal Funds To Supplement Not Supplant Non-Federal Funds.--
An eligible local educational agency may use funds received under this 
part only to supplement and, to the extent practicable, increase the 
level of funds that would, in the absence of such Federal funds, be 
made available from non-Federal sources for the education of students 
participating in activities assisted under this part, and in no such 
case may such funds be used to supplant funds from non-Federal sources.

``SEC. 12852. DEFINITIONS.

    ``Except as otherwise provided, for the purposes of this part:
            ``(1) Central city.--The term `central city' has the same 
        meaning used by the Bureau of the Census.
            ``(2) Metropolitan statistical area.--The term 
        `metropolitan statistical area' has the same meaning used by 
        the Bureau of the Census.
            ``(3) Poverty level.--The term `poverty level' means the 
        criteria of poverty used by the Bureau of the Census in 
        compiling the most recent decennial census.
            ``(4) Rural eligible local educational agency.--The term 
        `rural eligible local educational agency' means a local 
        educational agency--
                    ``(A)(i) in which at least 15 percent of the 
                children enrolled in the schools served by such agency 
                are eligible to be counted under part A of title I; and
                    ``(ii) which is not in a metropolitan statistical 
                area; or
                    ``(B) in which the total enrollment in the schools 
                served by such agency is less than 2,500 students and 
                that does not serve schools located in a metropolitan 
                statistical area.
            ``(5) Urban eligible local educational agency.--The term 
        `urban eligible local educational agency' means a local 
        educational agency that--
                    ``(A) serves the largest central city in a State;
                    ``(B) enrolls more than 30,000 students and serves 
                a central city with a population of at least 200,000 in 
                a metropolitan statistical area; or
                    ``(C) enrolls between 25,000 and 30,000 students 
                and serves a central city with a population of at least 
                140,000 in a metropolitan statistical area.

           ``Subpart 1--Urban Education Demonstration Grants

``SEC. 12861. FINDINGS.

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

``SEC. 12862. PURPOSE.

    ``It is the purpose of this subpart to provide financial assistance 
to--
            ``(1) assist urban public schools in meeting the National 
        Education Goals;
            ``(2) improve the educational and social well-being of 
        urban public school children;
            ``(3) close the achievement gap between urban and nonurban 
        public school children, while improving the achievement level 
        of all children nationally;
            ``(4) conduct coordinated research on urban public 
        education problems, solutions, and promising practices;
            ``(5) improve the Nation's global economic and educational 
        competitiveness by improving the Nation's urban schools; and
            ``(6) encourage community, parental, and business 
        collaboration in the improvement of urban schools.

``SEC. 12863. URBAN SCHOOL GRANTS.

    ``(a) Authority.--The Secretary is authorized to make grants to 
eligible local educational agencies serving an urban area or State 
educational agencies in the case where the State educational agency is 
the local educational agency for activities designed to assist in local 
school improvement efforts and school reform, and to assist the schools 
of such agencies in meeting the National Education Goals.
    ``(b) Authorized Activities.--Funds under this section may be used 
to--
            ``(1) increase the academic achievement of urban public 
        school children to at least the national average, such as--
                    ``(A) effective public schools programs;
                    ``(B) tutoring, mentoring, and other activities to 
                improve academic achievement directly;
                    ``(C) activities designed to increase the 
                participation of minority and female students in entry 
level and advanced courses in mathematics and science;
                    ``(D) supplementary academic instruction;
                    ``(E) efforts to improve problem-solving and 
                higher-order thinking skills;
                    ``(F) programs to increase student motivation for 
                learning; and
                    ``(G) efforts to lengthen the school day or school 
                year, or to reduce class sizes;
            ``(2) ensure the readiness of all urban public school 
        children for school, such as--
                    ``(A) full workday, full calendar-year 
                comprehensive early childhood development programs;
                    ``(B) parenting classes and parent involvement 
                activities;
                    ``(C) activities designed to coordinate 
                prekindergarten and child care programs;
                    ``(D) efforts to integrate developmentally 
                appropriate prekindergarten services into the overall 
                public school program;
                    ``(E) upgrading the qualifications of early 
                childhood education staff and standards for programs;
                    ``(F) collaborative efforts with health and social 
                service agencies to provide comprehensive services and 
                to facilitate the transition from home to school;
                    ``(G) establishment of comprehensive child care 
                centers in public secondary schools for students who 
                are parents and their children; and
                    ``(H) augmenting early childhood development 
                programs to meet the special educational and cultural 
                needs of limited-English-proficient preschool children;
            ``(3) increase the graduation rates of urban public school 
        students to at least the national average, such as--
                    ``(A) dropout prevention activities and support 
                services for public school students at-risk of dropping 
                out of school;
                    ``(B) reentry, outreach, and support activities to 
                recruit students who have dropped out of school to 
                return to school;
                    ``(C) development of systemwide policies and 
                practices that encourage students to stay in school;
                    ``(D) efforts to provide individualized student 
                support, such as mentoring programs;
                    ``(E) collaborative activities between schools, 
                parents, community groups, agencies, and institutions 
                of higher education aimed at preventing individuals 
                from dropping out of school;
                    ``(F) programs to increase student attendance; and
                    ``(G) alternative programs for students, especially 
                bilingual and special education students, who have 
                dropped out of school or are at risk of dropping out of 
                school;
            ``(4) prepare urban public school students to enter higher 
        education, pursue careers, and exercise their responsibilities 
        as citizens, such as--
                    ``(A) activities designed to increase the number 
                and percentages of students, particularly minority 
                students, enrolling in postsecondary educational 
                institutions after graduation from public secondary 
                schools;
                    ``(B) in-school youth employment, vocational 
                education, and career education programs that improve 
                the transition from school to work;
                    ``(C) activities designed in collaboration with 
                colleges and universities to assist urban public school 
                graduates in completing higher education;
                    ``(D) efforts to increase voter registration among 
                eligible public secondary school students;
                    ``(E) activities designed to promote community 
                service and volunteerism among students, parents, 
                teachers, and the community; and
                    ``(F) civic education and other programs designed 
                to enhance responsible citizenship and understanding of 
                the political process;
            ``(5) recruit and retain qualified teachers, such as--
                    ``(A) school-based management projects and 
                activities;
                    ``(B) programs designed to test efforts to increase 
                the professionalization of teachers or to bring 
                teachers up to national voluntary standards;
                    ``(C) alternative routes to certification for 
                qualified individuals from business, the military, and 
                other fields;
                    ``(D) efforts to recruit and retain teachers, 
                particularly minority teachers, specializing in 
                critical shortage areas, including early childhood 
                teachers, mathematics and science teachers, and special 
                education and bilingual teachers;
                    ``(E) upgrading the skills of teacher aides and 
                paraprofessionals to permit such individuals to become 
                certified teachers;
                    ``(F) activities specifically designed to increase 
                the number of minority teachers in urban schools;
                    ``(G) incentives for teachers to work in inner-city 
                public schools; and
                    ``(H) collaborative activities with urban 
                universities to revise and upgrade teacher training 
                programs;
            ``(6) provide for ongoing staff development to increase the 
        professional capacities of the teaching staff and the skills of 
        teacher aides and paraprofessionals;
            ``(7) decrease the use of drugs and alcohol among urban 
        public school students and enhance the physical and emotional 
        health of such students, such as--
                    ``(A) activities designed to improve the self-
                esteem and self-worth of urban public school students;
                    ``(B) the provision of health care services and 
                other social services and the coordination of such 
                services with other health care providers;
                    ``(C) programs designed to improve safety and 
                discipline and reduce in-school violence, vandalism, 
                and gang activity;
                    ``(D) activities that begin in the early grades and 
                are designed to prevent drug and alcohol abuse and 
                smoking among students and teachers;
                    ``(E) collaborative activities with other agencies, 
                businesses, and community groups to discourage the 
                advertisement and glorification of drugs and alcohol;
                    ``(F) efforts to enhance health education and 
                nutrition education; and
                    ``(G) alternative public schools, and schools-
                within-schools programs, including bilingual and 
                special education programs for public school students 
                with special needs; or
            ``(8) plan, develop, operate, or expand programs and 
        activities that are designed to assist urban public schools in 
        meeting the National Education Goals, including--
                    ``(A) training of teachers and other educational 
                personnel in subject areas, or in instructional 
                technology and methods that will improve the delivery 
                of services in urban settings and assist in the 
                achievement of the National Education Goals, including 
                staff development efforts that emphasize multicultural 
                and gender and disability bias-free curricula;
                    ``(B) coordination and collaboration with other 
                municipal agencies, child care organizations, 
                universities, or the private sector;
                    ``(C) parental involvement and outreach efforts and 
                other activities designed to enhance parental 
                encouragement of student learning;
                    ``(D) pupil services and other support services 
                that contribute to progress in achieving National 
                Education Goals;
                    ``(E) efforts to acquire and improve access to 
                educational technology;
                    ``(F) assist the schools most in need of services 
                by replicating successful efforts of other urban local 
                educational agencies and expanding successful programs 
                within the eligible agency; or
                    ``(G) efforts to improve and strengthen the 
                curriculum and coordinate services across grade levels.
    ``(c) Applications.--
            ``(1) In general.--An eligible local educational agency 
        desiring to receive a grant under this section shall submit an 
        application to the Secretary at such time, in such manner, and 
        accompanied by such information as the Secretary may reasonably 
        require, consistent with this section.
            ``(2) Duration.--An application submitted pursuant to 
        paragraph (1) may be for a period of not more than five years.
    ``(d) Payments.--The Secretary shall make an award only to urban 
eligible local educational agencies that--
            ``(1) comply with the provisions of section 12866; and
            ``(2) demonstrate to the satisfaction of the Secretary that 
        the data submitted pursuant to section 12861 shows progress 
        toward meeting National Education Goals.
    ``(e) Administrative Costs.--Not more than five percent of any 
award made under this subpart may be used for administrative costs.

``SEC. 12864. SPECIAL RULES.

    ``(a) Special Consideration.--In making awards under this subpart, 
the Secretary shall give special consideration to urban eligible local 
educational agencies in which there is--
            ``(1) low achievement;
            ``(2) high poverty; and
            ``(3) racial isolation.
    ``(b) Flexibility.--Each urban eligible local educational agency 
shall have the flexibility to serve homeless children, children in 
schools undergoing desegregation, immigrants, migrants, or other highly 
mobile populations within the program assisted under this subpart.

           ``Subpart 2--Rural Education Demonstration Grants

``SEC. 12871. FINDINGS.

    ``The Congress finds that--
            ``(1) the ability of America's rural public school systems 
        to meet the National Education Goals will contribute to the 
        economic competitiveness and academic standing of the Nation in 
        the world community;
            ``(2) approximately 60 percent of the Nation's public 
        school districts are rural with a population of less than 
        2,500;
            ``(3) about 1 out of every 4 of America's rural school 
        children are living below the poverty line;
            ``(4) the quality of public education in the rural areas of 
        the Nation has a direct effect on the economic development of 
        the rural communities of the Nation;
            ``(5) the success of rural public schools in boosting the 
        achievement of minority youth attending such schools will 
        determine the ability of the Nation to close the gap between 
        the haves and the have-nots in society;
            ``(6) the academic performance of students in the average 
        rural school system is below that of students in most other 
        suburban school systems;
            ``(7) the average age of rural public school buildings is 
        more than 45 years old and such buildings are often in serious 
        disrepair, creating poor and demoralizing working and learning 
        conditions;
            ``(8) shortages of teachers for rural public school systems 
        is greater than in other kinds of school systems;
            ``(9) solving the challenges facing the Nation's rural 
        public schools will require the concerted and collaborative 
        efforts of all levels of government and all sectors of the 
        community;
            ``(10) additional Federal funding would contribute 
        significantly to addressing the comprehensive needs of rural 
        schools;
            ``(11) rural public schools enroll a disproportionately 
        large share of the Nation's poor and at-risk youth;
            ``(12) a declining number of rural public secondary school 
        graduates are pursuing postsecondary education opportunities;
            ``(13) rural preschoolers have less access to early 
        childhood development programs than other children; and
            ``(14) Federal and State funding of rural public schools 
        has not adequately reflected need.

``SEC. 12872. PURPOSE.

    ``It is the purpose of this subpart to provide financial assistance 
to rural public schools most in need, to encourage the comprehensive 
restructuring of America's rural schools, the appropriate use of 
telecommunications technologies for learning, and to support innovative 
programs which improve performance through programs and projects 
designed to--
            ``(1) assist rural public schools in meeting National 
        Education Goals;
            ``(2) encourage rural public schools to engage in school 
        reform;
            ``(3) develop pilot projects that experiment with 
        innovative ways to teach rural public school children more 
        effectively;
            ``(4) improve the educational and social well-being of 
        rural public school children;
            ``(5) close the achievement gap between children attending 
        rural public schools and other children, while improving the 
        achievement level of all children nationally;
            ``(6) conduct coordinated research on rural education 
        problems, solutions, promising practices, and distance learning 
        technologies;
            ``(7) improve the Nation's global economic and educational 
        competitiveness by improving the Nation's rural public schools;
            ``(8) encourage community, parental, and business 
        collaboration in the improvement of rural public schools;
            ``(9) encourage rural school consortia for the purpose of 
        increasing efficiency and course offerings;
            ``(10) encourage a positive role for rural public schools 
        in local rural entrepreneurship and the identification of rural 
        community economic development opportunities;
            ``(11) encourage community-as-school concepts, which 
        include the role public schools can play to assist with rural 
        community economic revitalization; and
            ``(12) provide for the recruitment and meaningful inservice 
        opportunities for rural public school teachers.

``SEC. 12873. RURAL SCHOOL GRANTS.

    ``(a) Authority.--The Secretary is authorized to make grants to 
rural eligible local educational agencies, or State educational 
agencies in the case where the State educational agency is the local 
educational agency, for activities designed to assist in local school 
improvement efforts.
    ``(b) Award Rules.--
            ``(1) Less than $50,000,000.--If the amount made available 
        to carry out this subpart for any fiscal year is less than 
        $50,000,000, the Secretary shall award grants under this 
        section on a competitive basis.
            ``(2) Equal to or greater than $50,000,000.--If the amount 
        made available to carry out this subpart for any fiscal year is 
        equal to or greater than $50,000,000, the Secretary shall award 
        grants under this section so that a rural eligible local 
        educational agency in each State receives such a grant.
    ``(c) Administrative Costs.--Not more than five percent of a grant 
awarded under section 12573 shall be used for administrative costs.
    ``(d) Duration.--Each grant under this section shall be awarded for 
a period of not more than five years.

``SEC. 12874. USES OF FUNDS.

    ``(a) In General.--Grant funds made available under section 12873 
may be used by rural eligible local educational agencies to meet the 
National Education Goals through programs designed to--
            ``(1) increase the academic achievement of rural public 
        school children to at least the national average of such 
        achievement, including education reform initiatives, such as--
                    ``(A) effective public schools programs;
                    ``(B) tutoring, mentoring, and other activities to 
                improve academic achievement directly;
                    ``(C) supplementary academic instruction;
                    ``(D) efforts to improve problem-solving and 
                higher-order critical thinking skills; and
                    ``(E) efforts to lengthen the school day, school 
                year, or reduce class sizes;
            ``(2) develop pilot projects that experiment with 
        innovative ways to teach rural public school children more 
        effectively;
            ``(3) encourage the formation of rural school consortia for 
        the purpose of increasing efficiency and course offerings;
            ``(4) provide meaningful inservice training opportunities 
        for rural public school teachers;
            ``(5) assist rural schools in acquiring and improving 
        access to educational technology, including distance learning 
        technologies;
            ``(6) ensure the readiness of all rural children for 
        school, such as--
                    ``(A) full workday, full calendar-year 
                comprehensive early childhood development programs;
                    ``(B) parenting classes, including parenting 
                classes for teenage parents, and parent involvement 
                activities;
                    ``(C) activities designed to coordinate 
                prekindergarten and child care programs;
                    ``(D) efforts to integrate developmentally 
                appropriate prekindergarten services into the overall 
                public school program;
                    ``(E) improving the skills of early childhood 
                education staff and standards for programs;
                    ``(F) collaborative efforts with health and social 
                service agencies to provide comprehensive services and 
                to facilitate the transition from home to school;
                    ``(G) establishment of comprehensive child care 
                centers in public secondary schools for student parents 
                and their children; and
                    ``(H) augmenting early childhood development 
                programs to meet the special educational and cultural 
                needs of limited-English proficient children, children 
                with disabilities, and migrant preschool children;
            ``(7) increase the graduation rates of rural public school 
        students to at least the national average of such rate, when 
        funds are used to serve secondary schools, such as--
                    ``(A) dropout prevention activities and support 
                services for students at-risk of dropping out of 
                school;
                    ``(B) reentry, outreach and support activities to 
                recruit students who have dropped out of school to 
                return to school;
                    ``(C) development of systemwide policies and 
                practices that encourage students to stay in school;
                    ``(D) efforts to provide individualized student 
                support;
                    ``(E) collaborative activities between schools, 
                parents, community groups, agencies, and institutions 
                of higher education aimed at preventing individuals 
                from dropping out of school;
                    ``(F) programs to increase student attendance; and
                    ``(G) alternative programs for students, especially 
                bilingual, special education, and migrant students, who 
                have dropped out of school or are at risk of dropping 
                out of school;
            ``(8) prepare rural public school students to enter higher 
        education, pursue careers, and exercise their responsibilities 
        as citizens, such as--
                    ``(A) activities designed to increase the number 
                and percentages of students, enrolling in postsecondary 
                educational institutions after graduation from 
                secondary schools;
                    ``(B) in-school youth employment, vocational 
                education, and career education programs that improve 
                the transition from school to work;
                    ``(C) activities designed in collaboration with 
                colleges and universities to assist rural public school 
                graduates in completing higher education;
                    ``(D) activities designed in conjunction with 
                community colleges to provide a kindergarten through 
                grade 14 experience for rural public school secondary 
                school students;
                    ``(E) efforts to increase voter registration among 
                eligible public secondary school students attending 
                schools served by rural eligible local educational 
                agencies;
                    ``(F) activities designed to promote community 
                service and volunteerism among students, parents, 
                teachers, and the community;
                    ``(G) civic education, law-related education, and 
                other programs designed to enhance responsible 
                citizenship and understanding of the political process; 
                and
                    ``(H) encouraging a positive role for rural public 
                schools in local rural entrepreneurship  and the 
identification of rural community economic development opportunities;
            ``(9) recruit and retain qualified teachers, such as--
                    ``(A) school-based management projects and 
                activities;
                    ``(B) programs designed to increase the status of 
                the teaching profession;
                    ``(C) alternative routes to certification for 
                qualified individuals from business, the military, and 
                other fields;
                    ``(D) efforts to recruit and retain teachers in 
                critical shortage areas, including early childhood 
                teachers, mathematics and science teachers, foreign 
                language teachers, and special education and bilingual 
                teachers;
                    ``(E) upgrading the skills of existing classroom 
                teachers through the use of year-round, systematic, 
                comprehensive inservice training programs;
                    ``(F) upgrading the skills of teacher aides and 
                paraprofessionals to assist such individuals in 
                becoming certified teachers;
                    ``(G) efforts specifically designed to increase the 
                number of minority teachers in rural public schools;
                    ``(H) programs designed to encourage parents and 
                students to enter the teaching profession;
                    ``(I) incentives for teachers to work in rural 
                public schools;
                    ``(J) collaborative activities with colleges and 
                universities to revise and upgrade teacher training 
                programs to meet the needs of rural public school 
                students; and
                    ``(K) training activities for the purpose of 
                incorporating distance learning technologies; or
            ``(10) decrease the use of drugs and alcohol among rural 
        public school students, and to enhance the physical and 
        emotional health of such students, such as--
                    ``(A) activities designed to improve the self-
                esteem and self-worth of rural students;
                    ``(B) the provision of health care services and 
                other social services and the coordination of such 
                services with other health care providers;
                    ``(C) programs designed to improve safety and 
                discipline and reduce in-school violence and vandalism;
                    ``(D) activities that begin in the early grades and 
                are designed to prevent drug and alcohol abuse and 
                smoking among students;
                    ``(E) collaborative activities with other agencies, 
                businesses, and community groups;
                    ``(F) efforts to enhance health education and 
                nutrition education; and
                    ``(G) alternative public schools, and schools-
                within-schools programs, including bilingual, migrant, 
                and special education programs for students with 
                special needs.
    ``(b) Applications.--Each eligible entity desiring a grant under 
section 12873 shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may reasonably require. Each grant awarded under section 
12873 shall be of sufficient size and scope to achieve significant 
rural school improvement.

``SEC. 12875. HIGHER EDUCATION GRANTS.

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

                  ``Subpart 3--White House Conferences

``SEC. 12881. WHITE HOUSE CONFERENCE ON URBAN EDUCATION.

    ``(a) Authorization To Call Conference.--
            ``(1) In general.--The President is authorized to call and 
        conduct a White House Conference on Urban Education (referred 
        to in this section as the `Conference') which shall be held not 
        earlier than November 1, 2002, and not later than October 30, 
        2004.
            ``(2) Purpose.--The purpose of the Conference shall be to--
                    ``(A) develop recommendations and strategies for 
                the improvement of urban education;
                    ``(B) marshal the forces of the private sector, 
                governmental agencies at all levels, parents, teachers, 
                communities, and education officials to assist urban 
                public schools in achieving National Education Goals; 
                and
                    ``(C) conduct the initial planning for a permanent 
                national advisory commission on urban education.
    ``(b) Composition of Conference.--
            ``(1) In general.--The Conference shall be comprised of 12 
        individuals, including--
                    ``(A) representatives of urban public school 
                systems, including members of the governing body of 
                local educational agencies, and school superintendents;
                    ``(B) representatives of the Congress, the 
                Department of Education, and other Federal agencies;
                    ``(C) State elected officials and representatives 
                from State educational agencies; and
                    ``(D) individuals with special knowledge of and 
                expertise in urban education.
            ``(2) Selection.--The President shall select one-third of 
        the participants of the Conference, the majority leader of the 
        Senate, in consultation with the minority leader of the Senate, 
        shall select one-third of such participants, and the Speaker of 
        the House of Representatives, in consultation with the minority 
        leader of the House, shall select the remaining one-third of 
        such participants.
            ``(3) Representation.--In selecting the participants of the 
        Conference, the President, the majority leader of the Senate, 
        and the Speaker of the House of Representatives shall ensure 
        that the participants are as representative of the ethnic, 
        racial, and linguistic diversity of cities as is practicable.
    ``(c) Report.--
            ``(1) In general.--Not later than 120 days following the 
        termination of the Conference, a final report of the 
        Conference, containing such findings and recommendations as may 
        be made by the Conference, shall be submitted to the President. 
        The final report shall be made public and, not later than 90 
        days after receipt by the President, transmitted to the 
        Congress together with a statement of the President containing 
        recommendations for implementing the report.
            ``(2) Publication and distribution.--The Conference is 
        authorized to publish and distribute the report described in 
        this section. Copies of the report shall be provided to the 
        Federal depository libraries and made available to local urban 
        public school leaders.

``SEC. 12882. WHITE HOUSE CONFERENCE ON RURAL EDUCATION.

    ``(a) Authorization To Call Conference.--
            ``(1) In general.--The President is authorized to call and 
        conduct a White House Conference on Rural Education (hereafter 
        in this section referred to as the `Conference').
            ``(2) Date.--The Conference shall be held not earlier than 
        November 1, 2001, and not later than October 30, 2002.
            ``(3) Purpose.--The purposes of the Conference shall be 
        to--
                    ``(A) develop recommendations and strategies for 
                the improvement of rural public education;
                    ``(B) marshal the forces of the private sector, 
                governmental agencies at all levels, parents, teachers, 
                communities, and education officials to assist rural 
                public schools in achieving National Education Goals, 
                and make recommendations on the roles rural public 
                schools can play to assist with local rural community 
                economic revitalization; and
                    ``(C) conduct the initial planning for a permanent 
                national commission on rural public education.
    ``(b) Composition of Conference.--
            ``(1) In general.--The Conference shall be comprised of--
                    ``(A) representatives of eligible public school 
                systems, including members of the governing body of 
                local educational agencies, school superintendents, and 
                classroom teachers;
                    ``(B) representatives of the Congress, the 
                Department, and other Federal agencies;
                    ``(C) State elected officials and representatives 
                from State educational agencies;
                    ``(D) individuals with special knowledge of, and 
                expertise in, rural education, including individuals 
                involved with rural postsecondary education; and
                    ``(E) individuals with special knowledge of, and 
                expertise in, rural business.
            ``(2) Selection.--The President shall select one-third of 
        the participants of the Conference, the majority leader of the 
        Senate, in consultation with the minority leader of the Senate, 
        shall select one-third of such participants, and the Speaker of 
        the House of Representatives, in consultation with the minority 
        leader of the House, shall select the remaining one-third of 
        such participants.
            ``(3) Representation.--In selecting the participants of the 
        Conference, the President, the majority leader of the Senate, 
        and the Speaker of the House of Representatives shall ensure 
        that the participants are as representative of the ethnic, 
        racial, and language diversity of rural areas as is 
        practicable.
    ``(c) Report.--
            ``(1) In general.--Not later than 120 days following the 
        termination of the Conference, a final report of the 
        Conference, containing such findings and recommendations as may 
        be made by the Conference, shall be submitted to the President. 
        The final report shall be made public and, not later than 90 
        days after receipt by the President, transmitted to the 
        Congress together with a statement of the President containing 
        recommendations for implementing the report.
            ``(2) Publication and distribution.--The Conference is 
        authorized to publish and distribute the report described in 
        this section. Copies of the report shall be provided to the 
        Federal depository libraries and made available to local rural 
        school leaders and teachers.

                   ``PART J--NATIONAL WRITING PROJECT

``SEC. 12891. FINDINGS.

    ``The Congress finds that--
            ``(1) the United States faces a crisis in writing in 
        schools and in the workplace;
            ``(2) the writing problem has been magnified by the rapidly 
        changing student populations and the growing number of at-risk 
        students due to limited English proficiency;
            ``(3) over the past two decades, universities and colleges 
        across the country have reported increasing numbers of entering 
        freshmen who are unable to write at a level equal to the 
        demands of college work;
            ``(4) American businesses and corporations are concerned 
        about the limited writing skills of entry-level workers, and a 
        growing number of executives are reporting that advancement was 
        denied to them due to inadequate writing abilities;
            ``(5) the writing problem has been magnified by the rapidly 
        changing student populations in the Nation's schools and the 
        growing number of students who are at risk because of limited 
        English proficiency;
            ``(6) writing and reading are both fundamental to learning, 
        yet writing has been historically neglected in the schools and 
        colleges, and most teachers in the United States elementary 
        schools, secondary schools, and colleges have not been trained 
        to teach writing;
            ``(7) since 1973, the only national program to address the 
        writing problem in the Nation's schools has been the National 
        Writing Project, a network of collaborative university-school 
        programs whose goal is to improve the quality of student 
        writing and the teaching of writing at all grade levels and to 
        extend the uses of writing as a learning process through all 
        disciplines;
            ``(8) the National Writing Project offers summer and school 
        year inservice teacher training programs and a dissemination 
        network to inform and teach teachers of developments in the 
        field of writing;
            ``(9) the National Writing Project is a nationally 
        recognized and honored nonprofit organization that recognizes 
        that there are teachers in every region of the country who have 
        developed successful methods for teaching writing and that such 
        teachers can be trained and encouraged to train other teachers;
            ``(10) the National Writing Project has become a model for 
        programs to improve teaching in such other fields as 
        mathematics, science, history, literature, performing arts, and 
        foreign languages;
            ``(11) the National Writing Project teacher-teaching-
        teachers program identifies and promotes what is working in the 
        classrooms of the Nation's best teachers;
            ``(12) the National Writing Project teacher-teaching-
        teachers project is a positive program that celebrates good 
        teaching practices and good teachers and through its work with 
        schools increases the Nation's corps of successful classroom 
        teachers;
            ``(13) evaluations of the National Writing Project document 
        the positive impact the project has had on improving the 
        teaching of writing, student performance, and student thinking 
        and learning ability;
            ``(14) the National Writing Project programs offer career-
        long education to teachers, and teachers participating in the 
        National Writing Project receive graduate academic credit;
            ``(15) each year over 100,000 teachers voluntarily seek 
        training in National Writing Project intensive summer 
        institutes and workshops and school year in-service programs 
        through one of the 154 regional sites located in 45 States, the 
        Commonwealth of Puerto Rico, and in 4 sites that serve United 
        States teachers in United States dependent and independent 
        schools;
            ``(16) 250 National Writing Project sites are needed to 
        establish regional sites to serve all teachers;
            ``(17) private foundation resources, although generous in 
        the past, are inadequate to fund all of the National Writing 
        Project sites needed and the future of the program is in 
        jeopardy without secure financial support;
            ``(18) independent evaluation studies have found the 
        National Writing Project to be highly cost effective compared 
        to other professional development programs for teachers; and
            ``(19) during 1991, the first year of Federal support for 
        the National Writing Project, the National Writing Project 
        matched the $1,951,975 in Federal support with $9,485,504 in 
        matching funds from State, local, and other sources.

``SEC. 12892. NATIONAL WRITING PROJECT.

    ``(a) Authorization.--The Secretary is authorized to make a grant 
to the National Writing Project (hereafter in this section referred to 
as the `grantee'), a nonprofit educational organization which has as 
its primary purpose the improvement of the quality of student writing 
and learning, and the teaching of writing as a learning process in the 
Nation's classrooms--
            ``(1) to support and promote the establishment of teacher 
        training programs, including the dissemination of effective 
        practices and research findings regarding the teaching of 
        writing and administrative activities;
            ``(2) to support classroom research on effective teaching 
        practice and to document student performance;
            ``(3) to coordinate activities assisted under this section 
        with activities assisted under title II; and
            ``(4) to pay the Federal share of the cost of such 
        programs.
    ``(b) Requirements of Grant.--The grant shall provide that--
            ``(1) the grantee will enter into contracts with 
        institutions of higher education or other nonprofit educational 
        providers (hereafter in this section referred to as 
        `contractors') under which the contractors will agree to 
        establish, operate, and provide the non-Federal share of the 
        cost of teacher training programs in effective approaches and 
        processes for the teaching of writing;
            ``(2) funds made available by the Secretary to the grantee 
        pursuant to any contract entered into under this section will 
        be used to pay the Federal share of the cost of establishing 
        and operating teacher training programs as provided in 
        paragraph (1); and
            ``(3) the grantee will meet such other conditions and 
        standards as the Secretary determines to be necessary to assure 
        compliance with the provisions of this section and will provide 
        such technical assistance as may be necessary to carry out the 
        provisions of this section.
    ``(c) Teacher Training Programs.--The teacher training programs 
authorized in subsection (a) shall--
            ``(1) be conducted during the school year and during the 
        summer months;
            ``(2) train teachers who teach grades kindergarten through 
        college;
            ``(3) select teachers to become members of a National 
        Writing Project teacher network whose members will conduct 
        writing workshops for other teachers in the area served by each 
        National Writing Project site; and
            ``(4) encourage teachers from all disciplines to 
        participate in such teacher training programs.
    ``(d) Federal Share.--
            ``(1) In general.--Except as provided in paragraph (2) or 
        (3) and for purposes of subsection (a), the term `Federal 
        share' means, with respect to the costs of teacher training 
        programs authorized in subsection (a), 50 percent of such costs 
        to the contractor.
            ``(2) Waiver.--The Secretary may waive the provisions of 
        paragraph (1) on a case-by-case basis if the National Advisory 
        Board described in subsection (f) determines, on the basis of 
        financial need, that such waiver is necessary.
            ``(3) Maximum.--The Federal share of the costs of teacher 
        training programs conducted pursuant to subsection (a) may not 
        exceed $40,000 for any one contractor, or $200,000 for a 
        statewide program administered by any one contractor in at 
        least five sites throughout the State.
    ``(e) Classroom Teacher Grants.--
            ``(1) In general.--The National Writing Project may reserve 
        an amount not to exceed 5 percent of the amount appropriated 
        pursuant to the authority of this section to make grants, on a 
        competitive basis, to elementary and secondary school teachers 
        to pay the Federal share of the cost of enabling such teachers 
        to--
                    ``(A) conduct classroom research;
                    ``(B) publish models of student writing;
                    ``(C) conduct research regarding effective 
                practices to improve the teaching of writing; and
                    ``(D) conduct other activities to improve the 
                teaching and uses of writing.
            ``(2) Supplement and not supplant.--Grants awarded pursuant 
        to paragraph (1) shall be used to supplement and not supplant 
        State and local funds available for the purposes set forth in 
        paragraph (1).
            ``(3) Maximum grant amount.--Each grant awarded pursuant to 
        this subsection shall not exceed $2,000.
            ``(4) Federal share.--For the purpose of this subsection 
        the term `Federal share' means, with respect to the costs of 
        activities assisted under this subsection, 50 percent of such 
        costs to the elementary or secondary school teacher.
    ``(f) National Advisory Board.--
            ``(1) Establishment.--The National Writing Project shall 
        establish and operate a National Advisory Board.
            ``(2) Composition.--The National Advisory Board established 
        pursuant to paragraph (1) shall consist of--
                    ``(A) national educational leaders;
                    ``(B) leaders in the field of writing; and
                    ``(C) such other individuals as the National 
                Writing Project deems necessary.
            ``(3) Duties.--The National Advisory Board established 
        pursuant to paragraph (1) shall--
                    ``(A) advise the National Writing Project on 
                national issues related to student writing and the 
                teaching of writing;
                    ``(B) review the activities and programs of the 
                National Writing Project; and
                    ``(C) support the continued development of the 
                National Writing Project.
    ``(g) Evaluation.--
            ``(1) In general.--The Secretary shall conduct an 
        independent evaluation by grant or contract of the teacher 
        training programs administered pursuant to this Act in 
        accordance with section 14701. Such evaluation shall specify 
        the amount of funds expended by the National Writing Project 
        and each contractor receiving assistance under this section for 
        administrative costs. The results of such evaluation shall be 
        made available to the appropriate committees of the Congress.
            ``(2) Funding limitation.--The Secretary shall reserve not 
        more than $150,000 from the total amount appropriated pursuant 
        to the authority of subsection (i) for fiscal year 2001 and the 
        four succeeding fiscal years to conduct the evaluation 
        described in paragraph (1).
    ``(h) Application Review.--
            ``(1) Review board.--The National Writing Project shall 
        establish and operate a National Review Board that shall 
        consist of--
                    ``(A) leaders in the field of research in writing; 
                and
                    ``(B) such other individuals as the National 
                Writing Project deems necessary.
            ``(2) Duties.--The National Review Board shall--
                    ``(A) review all applications for assistance under 
                this subsection; and
                    ``(B) recommend applications for assistance under 
                this subsection for funding by the National Writing 
                Project.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated for the grant to the National Writing Project, $4,000,000 
for fiscal year 2002, and such sums as may be necessary for each of the 
four succeeding fiscal years, to carry out the provisions of this 
section.''.
                                 <all>
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