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[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1 Engrossed Amendment Senate (EAS)]

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                  In the Senate of the United States,

                                                         June 14, 2001.
    Resolved, That the bill from the House of Representatives (H.R. 1) 
entitled ``An Act to close the achievement gap with accountability, 
flexibility, and choice, so that no child is left behind.'', do pass 
with the following

                               AMENDMENT:

            Strike out all after the enacting clause and insert:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

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

Sec. 1. Short title; table of contents.
Sec. 2. References.
Sec. 3. Elementary and Secondary Education Act of 1965: Short title; 
                            purpose; definitions; uniform provisions.

           TITLE I--BETTER RESULTS FOR DISADVANTAGED CHILDREN

Sec. 101. Policy and purpose.
Sec. 102. Authorization of appropriations.
Sec. 103. Reservation and allocation for school improvement.

           Part A--Better Results for Disadvantaged Children

Sec. 111. State plans.
Sec. 112. Local educational agency plans.
Sec. 113. Eligible school attendance areas.
Sec. 114. Schoolwide programs.
Sec. 115. Targeted assistance schools.
Sec. 116. Pupil safety and family school choice.
Sec. 117. Assessment and local educational agency and school 
                            improvement.
Sec. 118. Assistance for school support and improvement.
Sec. 118A. Grants for enhanced assessment instruments.
Sec. 119. Parental involvement.
Sec. 120. Professional development.
Sec. 120A. Participation of children enrolled in private schools.
Sec. 120B. Early childhood education.
Sec. 120C. Limitations on funds.
Sec. 120D. Allocations.
Sec. 120E. School year extension activities.
Sec. 120F. Adequacy of funding of targeted grants to local educational 
                            agencies in fiscal years after fiscal year 
                            2001.

               Part B--Literacy for Children and Families

Sec. 121. Reading first.
Sec. 122. Early reading initiative.

                Part C--Education of Migratory Children

Sec. 131. Program purpose.
Sec. 132. State application.
Sec. 133. Comprehensive plan.
Sec. 134. Coordination.

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

Sec. 141. Initiatives for neglected, delinquent, or at risk youth.

                 Part E--NATIONAL ASSESSMENT OF TITLE I

Sec. 151. National assessment of title I.

  Part F--21st Century Learning Centers; Comprehensive School Reform; 
                       School Dropout Prevention

Sec. 161. 21st century learning centers; comprehensive school reform.

           Part G--Education for Homeless Children and Youth

Sec. 171. Statement of policy.
Sec. 172. Grants for State and local activities.
Sec. 173. Local educational agency grants.
Sec. 174. Secretarial responsibilities.
Sec. 175. Definitions.
Sec. 176. Authorization of appropriations.
Sec. 177. Conforming amendments.
Sec. 178. Local educational agency spending audits.

                           TITLE II--TEACHERS

Sec. 201. Teacher quality.
Sec. 202. Teacher mobility.
Sec. 203. Modification of troops-to-teachers program.
Sec. 204. Professional development.
Sec. 205. Close Up Fellowship Program and National Student/Parent Mock 
                            Election.
Sec. 206. Rural technology education academies and early childhood 
                            educator professional development.
Sec. 207. Teachers and principals.

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

Sec. 301. Bilingual education.

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

Sec. 401. Amendment to the Elementary and Secondary Education Act of 
                            1965.
Sec. 402. Gun-free requirements.
Sec. 403. School safety and violence prevention.
Sec. 404. School safety enhancement.
Sec. 405. Amendments to the National Child Protection Act of 1993.
Sec. 406. Environmental tobacco smoke.
Sec. 407. Grants to reduce alcohol abuse.
Sec. 408. Mentoring programs.
Sec. 409. Study concerning the health and learning impacts of 
                            dilapidated or environmentally unhealthy 
                            public school buildings on America's 
                            children and the healthy and high 
                            performance schools program.
Sec. 410. Amendment to the Individuals with Disabilities Education Act.

             TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

Sec. 501. Public school choice and flexibility.
Sec. 502. Empowering parents.

           TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

Sec. 601. Parental involvement and accountability.
Sec. 602. Guidelines for student privacy.

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

Sec. 701. Programs.
Sec. 702. Conforming amendments.

                         TITLE VIII--IMPACT AID

Sec. 801. Eligibility under section 8003 for certain heavily impacted 
                            local educational agencies.

                           TITLE IX--REPEALS

Sec. 901. Repeals.

                   TITLE X--MISCELLANEOUS PROVISIONS

Sec. 1001. Independent evaluation.
Sec. 1002. Helping children succeed by fully funding the Individuals 
                            with Disabilities Education Act (IDEA).
Sec. 1003. Sense of the Senate; authorization of appropriations for 
                            title II of the Elementary and Secondary 
                            Education Act of 1965.
Sec. 1004. Sense of the Senate regarding education opportunity tax 
                            relief.
Sec. 1005. Sense of the Senate regarding tax relief for elementary and 
                            secondary educators.
Sec. 1006. Sense of the Senate; authorization of appropriations for 
                            title III of the Elementary and Secondary 
                            Education Act of 1965.
Sec. 1007. Grants for the teaching of traditional American history as a 
                            separate subject.
Sec. 1008. Study and information.
Sec. 1009. Sense of the Senate regarding transmittal of S. 27 to House 
                            of Representatives.
Sec. 1010. Sense of the Senate; authorization of appropriations for 
                            title I of the Elementary and Secondary 
                            Education Act of 1965.
Sec. 1011. Excellence in economic education.
Sec. 1012. Loan forgiveness for Head Start teachers.
Sec. 1013. Sense of the Senate regarding the benefits of music and arts 
                            education.
Sec. 1014. Sense of the Senate concerning postal rates for educational 
                            materials.
Sec. 1015. The study of the Declaration of Independence, United States 
                            Constitution, and the Federalist Papers.
Sec. 1016. Study and recommendation with respect to sexual abuse in 
                            schools.
Sec. 1017. Sense of Senate on the percentage of Federal education 
                            funding that is spent in the classroom.
Sec. 1018. Sense of the Senate regarding Bible teaching in public 
                            schools.
Sec. 1019. Senior opportunities.
Sec. 1020. Impact aid payments relating to Federal acquisition of real 
                            property.
Sec. 1021. Impact aid technical amendments.
Sec. 1022. Sense of the Senate regarding science education.
Sec. 1023. School facility modernization grants.
Sec. 1024. Department of Education campaign to promote access of Armed 
                            Forces recruiters to student directory 
                            information.
Sec. 1025. Military recruiting on campus.
Sec. 1026. Maintaining funding for the Individuals with Disabilities 
                            Education Act.
Sec. 1027. School resource officer projects.
Sec. 1028. Boys and Girls Clubs of America.
Sec. 1029. Federal income tax incentive study.
Sec. 1030. Carl D. Perkins Vocational and Technical Education Act of 
                            1998.
Sec. 1031. Sense of Congress on enhancing awareness of the 
                            contributions of veterans to the Nation.
Sec. 1032. Technical amendment to the Kids 2000 Act.
Sec. 1033. Pest management in schools.

                      TITLE XI--TEACHER PROTECTION

Sec. 1101. Teacher protection.

            TITLE XII--NATIVE AMERICAN EDUCATION IMPROVEMENT

Sec. 1201. Short title.

       Subtitle A--Amendments to the Education Amendments of 1978

Sec. 1211. Amendments to the Education Amendments of 1978.

          Subtitle B--Tribally Controlled Schools Act of 1988

Sec. 1221. Tribally controlled schools.
Sec. 1222. Lease payments by the Ojibwa Indian School.
Sec. 1223. Enrollment and general assistance payments.

          TITLE XIII--EQUAL ACCESS TO PUBLIC SCHOOL FACILITIES

Sec. 1301. Short title.
Sec. 1302. Equal access.
Sec. 1303. Effective date.

                TITLE XIV--INDIVIDUALS WITH DISABILITIES

Sec. 1401. Discipline.
Sec. 1402. Procedural safeguards.
Sec. 1403. Alternative education for children with disabilities.

           TITLE XV--EQUAL ACCESS TO PUBLIC SCHOOL FACILITIES

Sec. 1501. Short title.
Sec. 1502. Equal access.

         TITLE XVI--EDUCATION PROGRAMS OF NATIONAL SIGNIFICANCE

Sec. 1601. Amendment to the Elementary and Secondary Education Act of 
                            1965.

         TITLE XVII--JOHN H. CHAFEE ENVIRONMENTAL EDUCATION ACT

Sec. 1701. Short title.
Sec. 1702. Office of Environmental Education.
Sec. 1703. Environmental education grants.
Sec. 1704. John H. Chafee Memorial Fellowship Program.
Sec. 1705. National environmental education awards.
Sec. 1706. Environmental Education Advisory Council and Task Force.
Sec. 1707. National Environmental Learning Foundation.
Sec. 1708. Theodore Roosevelt Environmental Stewardship Grant Program.
Sec. 1709. Information standards.
Sec. 1710. Authorization of appropriations.

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. ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965: SHORT TITLE; 
              PURPOSE; DEFINITIONS; UNIFORM PROVISIONS.

    The Act (20 U.S.C. 6301 et seq.) is amended--
            (1) in the heading for section 1, by striking ``table of 
        contents'' and inserting ``short title''; and
            (2) by adding after section 1 the following:

``SEC. 2. PURPOSE.

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

``SEC. 3. DEFINITIONS.

    ``Except as otherwise provided, in this Act:
            ``(1) Average daily attendance.--
                    ``(A) In general.--Except as provided otherwise by 
                State law or this paragraph, the term `average daily 
                attendance' means--
                            ``(i) the aggregate number of days of 
                        attendance of all students during a school 
                        year; divided by
                            ``(ii) the number of days school is in 
                        session during such school year.
                    ``(B) Conversion.--The Secretary shall permit the 
                conversion of average daily membership (or other 
                similar data) to average daily attendance for local 
                educational agencies in States that provide State aid 
                to local educational agencies on the basis of average 
                daily membership or such other data.
                    ``(C) Special rule.--If the local educational 
                agency in which a child resides makes a tuition or 
                other payment for the free public education of the 
                child in a school located in another school district, 
                the Secretary shall, for purposes of this Act--
                            ``(i) consider the child to be in 
                        attendance at a school of the agency making 
                        such payment; and
                            ``(ii) not consider the child to be in 
                        attendance at a school of the agency receiving 
                        such payment.
                    ``(D) Children with disabilities.--If a local 
                educational agency makes a tuition payment to a private 
                school or to a public school of another local 
                educational agency for a child with a disability, as 
                defined in section 602 of the Individuals with 
                Disabilities Education Act, the Secretary shall, for 
                the purposes of this Act, consider such child to be in 
                attendance at a school of the agency making such 
                payment.
            ``(2) Average per-pupil expenditure.--The term `average 
        per-pupil expenditure' means, in the case of a State or of the 
        United States--
                    ``(A) without regard to the source of funds--
                            ``(i) the aggregate current expenditures, 
                        during the third fiscal year preceding the 
                        fiscal year for which the determination is made 
                        (or, if satisfactory data for that year are not 
                        available, during the most recent preceding 
                        fiscal year for which satisfactory data are 
                        available) of all local educational agencies in 
                        the State or, in the case of the United States 
                        for all States (which, for the purpose of this 
                        paragraph, means the 50 States and the District 
                        of Columbia); plus
                            ``(ii) any direct current expenditures by 
                        the State for the operation of such agencies; 
                        divided by
                    ``(B) the aggregate number of children in average 
                daily attendance to whom such agencies provided free 
                public education during such preceding year.
            ``(3) Child.--The term `child' means any person within the 
        age limits for which the State provides free public education.
            ``(4) Community-based organization.--The term `community-
        based organization' means a public or private nonprofit 
        organization of demonstrated effectiveness that--
                    ``(A) is representative of a community or 
                significant segments of a community; and
                    ``(B) provides educational or related services to 
                individuals in the community.
            ``(5) Consolidated local application.--The term 
        `consolidated local application' means an application submitted 
        by a local educational agency pursuant to section 5505.
            ``(6) Consolidated local plan.--The term `consolidated 
        local plan' means a plan submitted by a local educational 
        agency pursuant to section 5505.
            ``(7) Consolidated state application.--The term 
        `consolidated State application' means an application submitted 
        by a State educational agency after consultation with the 
        Governor pursuant to section 5502.
            ``(8) Consolidated state plan.--The term `consolidated 
        State plan' means a plan submitted by a State educational 
        agency after consultation with the Governor pursuant to section 
        5502.
            ``(9) County.--The term `county' means one of the divisions 
        of a State used by the Secretary of Commerce in compiling and 
        reporting data regarding counties.
            ``(10) Covered program.--The term `covered program' means 
        each of the programs authorized by--
                    ``(A) part A of title I;
                    ``(B) part C of title I;
                    ``(C) part C of title II;
                    ``(D) part A of title IV (other than section 4114); 
                and
                    ``(E) subpart 4 of part B of title V.
            ``(11) Current expenditures.--The term `current 
        expenditures' means expenditures for free public education--
                    ``(A) including expenditures for administration, 
                instruction, attendance and health services, pupil 
                transportation services, operation and maintenance of 
                plant, fixed charges, and net expenditures to cover 
                deficits for food services and student body activities; 
                but
                    ``(B) not including expenditures for community 
                services, capital outlay, and debt service, or any 
                expenditures made from funds received under subpart 4 
                of part B of title V.
            ``(12) Department.--The term `Department' means the 
        Department of Education.
            ``(13) Educational service agency.--The term `educational 
        service agency' means a regional public multiservice agency 
        authorized by State statute to develop, manage, and provide 
        services or programs to local educational agencies.
            ``(14) Elementary school.--The term `elementary school' 
        means a nonprofit institutional day or residential school, 
        including a public elementary charter school, that provides 
        elementary education, as determined under State law.
            ``(15) Free public education.--The term `free public 
        education' means education that is provided--
                    ``(A) at public expense, under public supervision 
                and direction, and without tuition charge; and
                    ``(B) as elementary school or secondary school 
                education as determined under applicable State law, 
                except that such term does not include any education 
                provided beyond grade 12.
            ``(16) Gifted and talented.--The term `gifted and 
        talented', when used with respect to students, children or 
        youth, means students, children or youth who give evidence of 
        high performance capability in areas such as intellectual, 
        creative, artistic, or leadership capacity, or in specific 
        academic fields, and who require services or activities not 
        ordinarily provided by the school in order to fully develop 
        such capabilities.
            ``(17) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101 of the Higher Education Act of 1965.
            ``(18) Local educational agency.--
                    ``(A) In general.--The term `local educational 
                agency' means a public board of education or other 
                public authority legally constituted within a State for 
                either administrative control or direction of, or to 
                perform a service function for, public elementary 
                schools or secondary schools in a city, county, 
                township, school district, or other political 
                subdivision of a State, or for such combination of 
                school districts or counties as are recognized in a 
                State as an administrative agency for the State's 
                public elementary or secondary schools.
                    ``(B) Administrative control and direction.--The 
                term includes any other public institution or agency 
                having administrative control and direction of a public 
                elementary school or secondary school.
                    ``(C) BIA schools.--The term includes an elementary 
                school or secondary school funded by the Bureau of 
                Indian Affairs but only to the extent that such 
                inclusion makes such school eligible for programs for 
                which specific eligibility is not provided to such 
                school in another provision of law and such school does 
                not have a student population that is smaller than the 
                student population of the local educational agency 
                receiving assistance under this Act with the smallest 
                student population, except that such school shall not 
                be subject to the jurisdiction of any State educational 
                agency other than the Bureau of Indian Affairs.
            ``(19) Mentoring.--The term `mentoring', when used with 
        respect to mentoring other than teacher mentoring, means a 
        program in which an adult works with a child or youth on a 1-
        to-1 basis, establishing a supportive relationship, providing 
        academic assistance, and introducing the child or youth to new 
        experiences that enhance the child or youth's ability to excel 
        in school and become a responsible citizen.
            ``(20) Other staff.--The term `other staff' means pupil 
        services personnel, librarians, career guidance and counseling 
        personnel, education aides, and other instructional and 
        administrative personnel.
            ``(21) Outlying area.--The term `outlying area' means the 
        United States Virgin Islands, Guam, American Samoa, the 
        Commonwealth of the Northern Mariana Islands, and for the 
        purpose of section 1121 and any other discretionary grant 
        program under this Act, the Republic of the Marshall Islands, 
        the Federated States of Micronesia, and the Republic of Palau.
            ``(22) Parent.--The term `parent' includes a legal guardian 
        or other person standing in loco parentis.
            ``(23) Parental involvement.--The term `parental 
        involvement' means the participation of parents in regular, 
        two-way, and meaningful communication, including ensuring--
                    ``(A) that parenting skills are promoted and 
                supported;
                    ``(B) that parents play an integral role in 
                assisting student learning;
                    ``(C) that parents are welcome in the schools;
                    ``(D) that parents are included in decision-making 
                and advisory committees; and
                    ``(E) the carrying out of other activities 
                described in section 1118.
            ``(24) Public telecommunications entity.--The term `public 
        telecommunication entity' has the same meaning given to such 
        term in section 397 of the Communications Act of 1934.
            ``(25) Pupil services personnel; pupil services.--
                    ``(A) Pupil services personnel.--The term `pupil 
                services personnel' means school counselors, school 
                social workers, school psychologists, and other 
                qualified professional personnel involved in providing 
                assessment, diagnosis, counseling, educational, 
                therapeutic, and other necessary services (including 
                related services as such term is defined in section 602 
                of the Individuals with Disabilities Education Act) as 
                part of a comprehensive program to meet student needs.
                    ``(B) Pupil services.--The term `pupil services' 
                means the services provided by pupil services 
                personnel.
            ``(26) Scientifically based research.--The term 
        `scientifically based research' used with respect to an 
        activity or a program, means an activity based on specific 
        strategies and implementation of such strategies that, based on 
        theory, research and evaluation, are effective in improving 
        student achievement and performance and other program 
        objectives.
            ``(27) Secondary school.--The term `secondary school' means 
        a nonprofit institutional day or residential school, including 
        a public secondary charter school, that provides secondary 
        education, as determined under State law, except that such term 
        does not include any education beyond grade 12.
            ``(28) Secretary.--The term `Secretary' means the Secretary 
        of Education.
            ``(29) State.--The term `State' means each of the 50 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, and each of the outlying areas.
            ``(30) State educational agency.--The term `State 
        educational agency' means the agency primarily responsible for 
        the State supervision of public elementary schools and 
        secondary schools.
            ``(31) Teacher mentoring.--The term `teacher mentoring' 
        means activities that--
                    ``(A) consist of structured guidance and regular 
                and ongoing support for beginning teachers, that--
                            ``(i) are designed to help the teachers 
                        continue to improve their practice of teaching 
                        and to develop their instructional skills; and
                            ``(ii) as part of a multiyear, 
                        developmental induction process--
                                    ``(I) involve the assistance of a 
                                mentor teacher and other appropriate 
                                individuals from a school, local 
                                educational agency, or institution of 
                                higher education; and
                                    ``(II) may include coaching, 
                                classroom observation, team teaching, 
                                and reduced teaching loads; and
                    ``(B) may include the establishment of a 
                partnership by a local educational agency with an 
                institution of higher education, another local 
                educational agency, a teacher organization, or another 
                organization.
            ``(32) Technology.--The term `technology' means state-of-
        the-art technology products and services, such as closed 
        circuit television systems, educational television and radio 
        programs and services, cable television, satellite, copper and 
        fiber optic transmission, computer hardware and software, 
        servers and storage devices, video and audio laser and CD-ROM 
        discs, video and audio tapes, web-based and other digital 
        learning resources, including online classes, interactive 
        tutorials, and interactive tools and virtual learning 
        environments, hand-held devices, wireless technology, voice 
        recognition systems, and high-quality digital video, distance 
        learning networks, visualization, modeling, and simulation 
        software, and learning focused digital libraries and 
        information retrieval systems.

``SEC. 4. MAINTENANCE OF EFFORT.

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

``SEC. 5. PROHIBITION REGARDING STATE AID.

    ``A State shall not take into consideration payments under this Act 
(other than under title VIII) in determining the eligibility of any 
local educational agency in such State for State aid, or the amount of 
State aid, with respect to free public education of children.

``SEC. 6. PARTICIPATION BY PRIVATE SCHOOL CHILDREN AND TEACHERS.

    ``(a) Private School Participation.--
            ``(1) In general.--Except as otherwise provided in this 
        Act, to the extent consistent with the number of eligible 
        children in a State educational agency, local educational 
        agency, or educational service agency or consortium of such 
        agencies receiving financial assistance under a program 
        specified in subsection (b), who are enrolled in private 
        elementary and secondary schools in such agency or consortium, 
        such agency or consortium shall, after timely and meaningful 
        consultation with appropriate private school officials provide, 
        on an equitable basis, such children special educational 
        services or other benefits under such program, and provide 
        their teachers and other education personnel serving such 
        children training and professional development services under 
        such program.
            ``(2) Secular, neutral, and nonideological services or 
        benefits.--Educational services or other benefits, including 
        materials and equipment, provided under this section, shall be 
        secular, neutral, and nonideological.
            ``(3) Special rule.--Educational services and other 
        benefits provided under this section for such private school 
        children, teachers, and other educational personnel shall be 
        equitable in comparison to services and other benefits for 
        public school children, teachers, and other educational 
        personnel participating in such program.
            ``(4) Expenditures.--Expenditures for educational services 
        and other benefits provided under this section to eligible 
        private school children, their teachers, and other educational 
        personnel serving such children shall be equal, taking into 
        account the number and educational needs of the children to be 
        served, to the expenditures for participating public school 
        children.
            ``(5) Provision of services.--Such agency or consortium 
        described in subsection (a)(1) may provide such services 
        directly or through contracts with public and private agencies, 
        organizations, and institutions.
    ``(b) Applicability.--
            ``(1) In general.--This section applies to programs under--
                    ``(A) subpart 2 of part B of title I;
                    ``(B) part C of title I (migrant education);
                    ``(C) parts A, (B) and C of title II;
                    ``(D) title III; and
                    ``(E) part A of title IV (other than section 4114).
            ``(2) Definition.--For the purposes of this section, the 
        term ``eligible children'' means children eligible for services 
        under a program described in paragraph (1).
    ``(c) Consultation.--
            ``(1) In general.--To ensure timely and meaningful 
        consultation, a State educational agency, local educational 
        agency, educational service agency or consortium of such 
        agencies shall consult with appropriate private school 
        officials during the design and development of the programs 
        under this Act, on issues such as--
                    ``(A) how the children's needs will be identified;
                    ``(B) what services will be offered;
                    ``(C) how and where the services will be provided; 
                and
                    ``(D) how the services will be assessed.
            ``(2) Timing.--Such consultation shall occur before the 
        agency or consortium makes any decision that affects the 
        opportunities of eligible private school children, teachers, 
        and other educational personnel to participate in programs 
        under this Act.
            ``(3) Discussion required.--Such consultation shall include 
        a discussion of service delivery mechanisms that the agency or 
        consortium could use to provide equitable services to eligible 
        private school children, teachers, administrators, and other 
        staff.
    ``(d) Public Control of Funds.--
            ``(1) In general.--The control of funds used to provide 
        services under this section, and title to materials, equipment, 
        and property purchased with such funds, shall be in a public 
        agency for the uses and purposes provided in this Act, and a 
        public agency shall administer such funds and property.
            ``(2) Provision of services.--(A) The provision of services 
        under this section shall be provided--
                    ``(i) by employees of a public agency; or
                    ``(ii) through contract by such public agency with 
                an individual, association, agency, or organization.
            ``(B) In the provision of such services, such employee, 
        person, association, agency, or organization shall be 
        independent of such private school and of any religious 
        organization, and such employment or contract shall be under 
        the control and supervision of such public agency.
            ``(C) Funds used to provide services under this section 
        shall not be commingled with non-Federal funds.

``SEC. 7. STANDARDS FOR BY-PASS.

    ``If, by reason of any provision of law, a State educational 
agency, local educational agency, educational service agency or 
consortium of such agencies is prohibited from providing for the 
participation in programs of children enrolled in, or teachers or other 
educational personnel from, private elementary and secondary schools, 
on an equitable basis, or if the Secretary determines that such agency 
or consortium has substantially failed or is unwilling to provide for 
such participation, as required by section 6, the Secretary shall--
            ``(1) waive the requirements of that section for such 
        agency or consortium; and
            ``(2) arrange for the provision of equitable services to 
        such children, teachers, or other educational personnel through 
        arrangements that shall be subject to the requirements of this 
        section and of sections 6, 8, and 9.

``SEC. 8. COMPLAINT PROCESS FOR PARTICIPATION OF PRIVATE SCHOOL 
              CHILDREN.

    ``(a) Procedures for Complaints.--The Secretary shall develop and 
implement written procedures for receiving, investigating, and 
resolving complaints from parents, teachers, or other individuals and 
organizations concerning violations of section 6 by a State educational 
agency, local educational agency, educational service agency, or 
consortium of such agencies. Such individual or organization shall 
submit such complaint to the State educational agency for a written 
resolution by the State educational agency within a reasonable period 
of time.
    ``(b) Appeals to the Secretary.--Such resolution may be appealed by 
an interested party to the Secretary not later than 30 days after the 
State educational agency resolves the complaint or fails to resolve the 
complaint within a reasonable period of time. Such appeal shall be 
accompanied by a copy of the State educational agency's resolution, and 
a complete statement of the reasons supporting the appeal. The 
Secretary shall investigate and resolve each such appeal not later than 
120 days after receipt of the appeal.

``SEC. 9. BY-PASS DETERMINATION PROCESS.

    ``(a) Review.--
            ``(1) In general.--(A) The Secretary shall not take any 
        final action under section 7 until the State educational 
        agency, local educational agency, educational service agency, 
        or consortium of such agencies affected by such action has had 
        an opportunity, for not less than 45 days after receiving 
        written notice thereof, to submit written objections and to 
        appear before the Secretary to show cause why that action 
        should not be taken.
            ``(B) Pending final resolution of any investigation or 
        complaint that could result in a determination under this 
        section, the Secretary may withhold from the allocation of the 
        affected State or local educational agency the amount estimated 
        by the Secretary to be necessary to pay the cost of those 
        services.
            ``(2) Petition for review.--(A) If such affected agency or 
        consortium is dissatisfied with the Secretary's final action 
        after a proceeding under paragraph (1), such agency or 
        consortium may, within 60 days after notice of such action, 
        file with the United States court of appeals for the circuit in 
        which such State is located a petition for review of that 
        action.
            ``(B) A copy of the petition shall be forthwith transmitted 
        by the clerk of the court to the Secretary.
            ``(C) The Secretary upon receipt of the copy of the 
        petition shall file in the court the record of the proceedings 
        on which the Secretary based this action, as provided in 
        section 2112 of title 28, United States Code.
            ``(3) Findings of fact.--(A) The findings of fact by the 
        Secretary, if supported by substantial evidence, shall be 
        conclusive, but the court, for good cause shown, may remand the 
        case to the Secretary to take further evidence and the 
        Secretary may then make new or modified findings of fact and 
        may modify the Secretary's previous action, and shall file in 
        the court the record of the further proceedings.
            ``(B) Such new or modified findings of fact shall likewise 
        be conclusive if supported by substantial evidence.
            ``(4) Jurisdiction.--(A) Upon the filing of such petition, 
        the court shall have jurisdiction to affirm the action of the 
        Secretary or to set such action aside, in whole or in part.
            ``(B) The judgment of the court shall be subject to review 
        by the Supreme Court of the United States upon certiorari or 
        certification as provided in section 1254 of title 28, United 
        States Code.
    ``(b) Determination.--Any determination by the Secretary under this 
section shall continue in effect until the Secretary determines, in 
consultation with such agency or consortium and representatives of the 
affected private school children, teachers, or other educational 
personnel that there will no longer be any failure or inability on the 
part of such agency or consortium to meet the applicable requirements 
of section 6 or any other provision of this Act.
    ``(c) Payment From State Allotment.--When the Secretary arranges 
for services pursuant to this section, the Secretary shall, after 
consultation with the appropriate public and private school officials, 
pay the cost of such services, including the administrative costs of 
arranging for those services, from the appropriate allocation or 
allocations under this Act.
    ``(d) Prior Determination.--Any by-pass determination by the 
Secretary under this Act as in effect on the day preceding the date of 
enactment of the Improving America's Schools Act of 1994 shall remain 
in effect to the extent the Secretary determines that such 
determination is consistent with the purpose of this section.

``SEC. 10. PROHIBITION AGAINST FUNDS FOR RELIGIOUS WORSHIP OR 
              INSTRUCTION.

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

``SEC. 11. APPLICABILITY TO HOME SCHOOLS.

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

``SEC. 12. GENERAL PROVISION REGARDING NONRECIPIENT NONPUBLIC SCHOOLS.

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

``SEC. 13. SCHOOL PRAYER.

    ``Any State or local educational agency that is adjudged by a 
Federal court of competent jurisdiction to have willfully violated a 
Federal court order mandating that such local educational agency remedy 
a violation of the constitutional right of any student with respect to 
prayer in public schools, in addition to any other judicial remedies, 
shall be ineligible to receive Federal funds under this Act until such 
time as the local educational agency complies with such order. Funds 
that are withheld under this section shall not be reimbursed for the 
period during which the local educational agency was in willful 
noncompliance.

``SEC. 14. GENERAL PROHIBITIONS.

    ``(a) Prohibition.--None of the funds authorized under this Act 
shall be used--
            ``(1) to develop or distribute materials, or operate 
        programs or courses of instruction directed at youth that are 
        designed to promote or encourage, sexual activity, whether 
        homosexual or heterosexual;
            ``(2) to distribute or to aid in the distribution by any 
        organization of legally obscene materials to minors on school 
        grounds;
            ``(3) to provide sex education or HIV prevention education 
        in schools unless such instruction is age appropriate and 
        includes the health benefits of abstinence; or
            ``(4) to operate a program of condom distribution in 
        schools.
    ``(b) Local Control.--Nothing in this section shall be construed 
to--
            ``(1) authorize an officer or employee of the Federal 
        Government to mandate, direct, review, or control a State, 
        local educational agency, or schools' instructional content, 
        curriculum, and related activities;
            ``(2) limit the application of the General Education 
        Provisions Act;
            ``(3) require the distribution of scientifically or 
        medically false or inaccurate materials or to prohibit the 
        distribution of scientifically or medically true or accurate 
        materials; or
            ``(4) create any legally enforceable right.

``SEC. 15. PROHIBITION ON FEDERAL MANDATES, DIRECTION, AND CONTROL.

    ``Nothing in this Act shall be construed to authorize an officer or 
employee of the Federal Government to mandate, direct, or control a 
State, local educational agency, or school's curriculum, program of 
instruction, or allocation of State or local resources, or mandate a 
State or any subdivision thereof to spend any funds or incur any costs 
not paid for under this Act.

``SEC. 16. ADDITIONAL LIMITATIONS ON NATIONAL TESTING.

    ``(a) National Testing.--
            ``(1) In general.--Notwithstanding any other provision of 
        this Act or any other provision of law, and except as provided 
        in paragraph (2), no funds available to the Department or 
        otherwise available under this Act may be used for any purpose 
        relating to a nationwide test in reading, mathematics, or any 
        other subject, including test development, pilot testing, field 
        testing, test implementation, test administration, test 
        distribution, or any other purpose.
            ``(2) Exception.--Paragraph (1) shall not apply to the 
        following:
                    ``(A) The National Assessment of Educational 
                Progress carried out under sections 411 through 413 of 
                the Improving America's Schools Act of 1994 (20 U.S.C. 
                9010-9012).
                    ``(B) The Third International Math and Science 
                Study (TIMSS).
    ``(b) Mandatory National Testing or Certification of Teachers.--
Notwithstanding any other provision of this Act or any other provision 
of law, no funds available to the Department or otherwise available 
under this Act may be used for any purpose relating to a mandatory 
nationwide test or certification of teachers or education 
paraprofessionals, including any planning, development, implementation, 
or administration of such test or certification.
    ``(c) Development of Database of Personally Identifiable 
Information.--Nothing in this Act (other than section 1308(b)) shall be 
construed to authorize the development of a nationwide database of 
personally identifiable information on individuals involved in studies 
or other collections of data under this Act.

``SEC. 17. ADDITIONAL LIMITATIONS AND PROTECTIONS REGARDING PRIVATE, 
              RELIGIOUS, AND HOME SCHOOLS.

    ``(a) Applicability to Home Schools.--(1) Nothing in this Act shall 
be construed to affect home schools, whether or not a home school is 
treated as a home school or a private school under State law or to 
require any home schooled student to participate in any assessment 
referenced in this Act.
    ``(2) Construction of superseded provision.--Section 11 shall have 
no force or effect.
    ``(b) Appilicability to Private Schools.--Nothing in this Act shall 
be construed to affect any private school that does not receive funds 
or services under this Act, or to require any student who attends a 
private school that does not receive funds or services under this Act 
to participate in any assessment referenced in this Act.
    ``(c) Applicability to Private, Religions, and Home Schools of 
General Provision Regarding Recipient Nonpublic Schools.--
            ``(1) In general.--Nothing in this Act or any other Act 
        administered by the Secretary shall be construed to permit, 
        allow, encourage, or authorize any Federal control over any 
        aspect of any private, religious, or home school, whether or 
        not a home school is treated as a private school or home school 
        under State law. This section shall not be construed to bar 
        private, religious, and home schools from participation in 
        programs and services under this Act.
            ``(2) Construction of superseded provision.--Section 12 
        shall have no force or effect.
    ``(d) Applicability of Gun-Free School Provisions to Home 
Schools.--Notwithstanding any provision of part B of title IV, for 
purposes of that part, the term `school' shall not include a home 
school, regardless of whether or not a home school is treated as a 
private school or home school under State law.
    ``(e) State and Local Educational Agency Mandates Regarding Private 
and Home School Curricula.--Nothing in this Act shall be construed to 
require any State or local educational agency that receives funds under 
this Act from mandating, directing, or controlling the curriculum of a 
private or home school, regardless of whether or not a home school is 
treated as a private school or home school under State law, nor shall 
any funds under this Act be used for this purpose.

``SEC. 18. PROHIBITION ON DISCRIMINATION.

    ``Nothing in this Act shall be construed to require, authorize, or 
permit, the Secretary, or a State, local educational agency, or school 
to grant to a student, or deny or impose upon a student, any financial 
or educational benefit or burden, in violation of the fifth or 14th 
amendments to the Constitution or other law relating to discrimination 
in the provision of federally funded programs or activities.''.

           TITLE I--BETTER RESULTS FOR DISADVANTAGED CHILDREN

SEC. 101. POLICY AND PURPOSE.

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

``SEC. 1001. STATEMENT OF PURPOSE.

    ``The purpose of this title is to enable schools to provide 
opportunities for children served under this title to acquire the 
knowledge and skills contained in the challenging State content 
standards and to meet the challenging State student performance 
standards developed for all children. This purpose should be 
accomplished by--
            ``(1) ensuring high standards for all children and aligning 
        the efforts of States, local educational agencies, and schools 
        to help children served under this title to reach such 
        standards;
            ``(2) providing children an enriched and accelerated 
        educational program, including the use of schoolwide programs 
        or additional services that increase the amount and quality of 
        instructional time so that children served under this title 
        receive at least the classroom instruction that other children 
        receive;
            ``(3) promoting schoolwide reform and ensuring access of 
        children (from the earliest grades, including prekindergarten) 
        to effective instructional strategies and challenging academic 
        content that includes intensive complex thinking and problem-
        solving experiences;
            ``(4) significantly elevating the quality of instruction by 
        providing staff in participating schools with substantial 
        opportunities for professional development;
            ``(5) coordinating services under all parts of this title 
        with each other, with other educational services, and to the 
        extent feasible, with other agencies providing services to 
        youth, children, and families that are funded from other 
        sources;
            ``(6) affording parents substantial and meaningful 
        opportunities to participate in the education of their children 
        at home and at school;
            ``(7) distributing resources in amounts sufficient to make 
        a difference to local educational agencies and schools where 
        needs are greatest;
            ``(8) improving and strengthening accountability, teaching, 
        and learning by using State assessment systems designed to 
        measure how well children served under this title are achieving 
        challenging State student performance standards expected of all 
        children; and
            ``(9) providing greater decisionmaking authority and 
        flexibility to schools and teachers in exchange for greater 
        responsibility for student performance.''.

SEC. 102. 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.--
            ``(1) Short title.--This subsection may be cited as the 
        `Equal Educational Opportunity Act'.
            ``(2) Authorization.--For the purpose of carrying out part 
        A, other than section 1120(e), there are authorized to be 
        appropriated--
                    ``(A) $15,000,000,000 for fiscal year 2002;
                    ``(B) $18,240,000,000 for fiscal year 2003;
                    ``(C) $21,480,000,000 for fiscal year 2004;
                    ``(D) $24,720,000,000 for fiscal year 2005;
                    ``(E) $27,960,000,000 for fiscal year 2006;
                    ``(F) $31,200,000,000 for fiscal year 2007;
                    ``(G) $34,440,000,000 for fiscal year 2008;
                    ``(H) $37,680,000,000 for fiscal year 2009;
                    ``(I) $40,920,000,000 for fiscal year 2010; and
                    ``(J) $44,164,000,000 for fiscal year 2011.
    ``(b) Reading First.--
            ``(1) Even start.--For the purpose of carrying out subpart 
        1 of part B, there are authorized to be appropriated 
        $250,000,000 for fiscal year 2002 and such sums as may be 
        necessary for each of the 6 succeeding fiscal years.
            ``(2) Reading first.--For the purpose of carrying out 
        subpart 2 of part B, there are authorized to be appropriated 
        $900,000,000 for fiscal year 2002 and such sums as may be 
        necessary for each of the 6 succeeding fiscal years.
            ``(3) Early reading first.--For the purpose of carrying out 
        subpart 3 of part B, there are authorized to be appropriated 
        $75,000,000 for fiscal year 2002 and such sums as may be 
        necessary for each of the 6 succeeding fiscal years.
    ``(c) Education of Migratory Children.--For the purpose of carrying 
out part C, there are authorized to be appropriated $400,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.
    ``(d) Prevention and Intervention Programs for Youth Who Are 
Neglected, Delinquent, or at Risk of Dropping Out.--For the purpose of 
carrying out part D, there are authorized to be appropriated 
$50,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 6 succeeding fiscal years.
    ``(e) Capital Expenses.--For the purpose of carrying out section 
1120(e), there are authorized to be appropriated $15,000,000 for fiscal 
year 2002, $15,000,000 for fiscal year 2003, and $5,000,000 for fiscal 
year 2004.
    ``(f) Federal Activities.--
            ``(1) Section 1501.--For the purpose of carrying out 
        section 1501, there are authorized to be appropriated 
        $10,000,000 for fiscal year 2002 and such sums as may be 
        necessary for each of the 6 succeeding fiscal years.
            ``(2) Section 1502.--For the purpose of carrying out 
        section 1502, there are authorized to be appropriated 
        $25,000,000 for fiscal year 2002 and such sums as may be 
        necessary for each of the 6 succeeding fiscal years.
    ``(g) 21st Century Learning Centers.--For the purpose of carrying 
out part F, there are authorized to be appropriated $1,500,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.
    ``(h) Comprehensive School Reform.--For the purpose of carrying out 
part G, there are authorized to be appropriated $250,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years.
    ``(i) School Dropout Prevention.--For the purpose of carrying out 
part H, there are authorized to be appropriated $500,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of the 6 
succeeding fiscal years, of which--
            ``(1) 10 percent shall be available to carry out subpart 1 
        of part H for each fiscal year; and
            ``(2) 90 percent shall be available to carry out subpart 2 
        of part H for each fiscal year.''.

SEC. 103. RESERVATION AND ALLOCATION FOR SCHOOL IMPROVEMENT.

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

``SEC. 1003. RESERVATION FOR SCHOOL IMPROVEMENT.

    ``(a) State Reservation.--Each State educational agency shall 
reserve 3.5 percent of the amount the State educational agency receives 
under subpart 2 of part A for each of the fiscal years 2002 and 2003, 
and 5 percent of that amount for each of the fiscal years 2004 through 
2008, to carry out subsection (b) and to carry out the State 
educational agency's responsibilities under sections 1116 and 1117, 
including carrying out the State educational agency's statewide system 
of technical assistance and support for local educational agencies.
    ``(b) Uses.--Of the amount reserved under subsection (a) for any 
fiscal year, the State educational agency shall make available not less 
than 50 percent of that amount directly to local educational agencies 
for schools identified for school improvement, corrective action, or 
reconstitution under section 1116(c).
    ``(c) State Plan.--Each State educational agency, in consultation 
with the Governor, shall prepare a plan to carry out the 
responsibilities of the State under sections 1116 and 1117, including 
carrying out the State educational agency's statewide system of 
technical assistance and support for local educational agencies.''.

           PART A--BETTER RESULTS FOR DISADVANTAGED CHILDREN

SEC. 111. 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 desiring to receive a grant 
        under this part shall submit to the Secretary, by March 1, 
        2002, a plan prepared by the chief State school official, in 
        consultation with the Governor, that satisfies the requirements 
        of this section and that is coordinated with other programs 
        under this Act, the Individuals with Disabilities Education 
        Act, the Carl D. Perkins Vocational and Technical Education Act 
        of 1998, the Adult Education and Family Literacy Act, and the 
        Head Start Act.
            ``(2) Consolidation plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a consolidation plan 
        under section 5506.
    ``(b) Standards, Assessments, and Accountability.--
            ``(1) Challenging standards.--(A) Each State plan shall 
        demonstrate that the State has adopted challenging content 
        standards and challenging student performance standards that 
        will be used by the State, its local educational agencies, and 
        its schools to carry out this part, except that a State shall 
        not be required to submit such standards to the Secretary.
            ``(B) The standards required by subparagraph (A) shall be 
        the same standards that the State applies to all schools and 
        children in the State.
            ``(C) The State shall have the standards described in 
        subparagraph (A) for all public elementary school and secondary 
        school children in subjects determined by the State, but 
        including at least mathematics, reading or language arts, 
        history, and science, except that--
                    ``(i) any State which does not have standards in 
                mathematics or reading or language arts, for public 
                elementary school and secondary school children who are 
                not served under this part, on the date of enactment of 
                the Better Education for Students and Teachers Act 
                shall apply the standards described in subparagraph (A) 
                to such students not later than the beginning of the 
                school year 2002-2003; and
                    ``(ii) no State shall be required to meet the 
                requirements under this part relating to history or 
                science standards until the beginning of the 2005-2006 
                school year.
            ``(D) Standards under this paragraph shall include--
                    ``(i) challenging content standards in academic 
                subjects that--
                            ``(I) specify what children are expected to 
                        know and be able to do;
                            ``(II) contain coherent and rigorous 
                        content; and
                            ``(III) encourage the teaching of advanced 
                        skills; and
                    ``(ii) challenging student performance standards 
                that--
                            ``(I) are aligned with the State's content 
                        standards; and
                            ``(II) describe 2 levels of high 
                        performance, proficient and advanced, that 
                        determine how well children are mastering the 
                        material in the State content standards.
            ``(E) For the subjects in which students served under this 
        part will be taught, but for which a State is not required by 
        subparagraphs (A), (B), and (C) to develop standards, and has 
        not otherwise developed standards, the State plan shall 
        describe a strategy for ensuring that such students are taught 
        the same knowledge and skills and held to the same expectations 
        as are all children.
            ``(2) Accountability.--(A) Each State plan shall 
        demonstrate that the State has developed and is implementing a 
        single, statewide State accountability system that has been or 
        will be effective in ensuring that all local educational 
        agencies, elementary schools, and secondary schools make 
        adequate yearly progress as defined under subparagraphs (B) and 
        (D). Each State accountability system shall--
                    ``(i) be based on the standards and assessments 
                adopted under paragraphs (1) and (3) and take into 
                account the performance of all students;
                    ``(ii) be used for all schools or all local 
                educational agencies in the State, except that schools 
                and local educational agencies not participating under 
                this part are not subject to the requirements of 
                section 1116(c);
                    ``(iii) include performance indicators for local 
                educational agencies and schools to measure student 
                performance consistent with subparagraph (B); and
                    ``(iv) include sanctions and rewards, such as 
                bonuses or recognition, the State will use to hold 
                local educational agencies and schools accountable for 
                student achievement and performance and for ensuring 
                that the agencies and schools make adequate yearly 
                progress in accordance with the State's definition 
                under subparagraph (B).
            ``(B) Adequate yearly progress shall be defined in 
        accordance with subparagraph (D) and in a manner that--
                    ``(i) applies the same high standards of academic 
                performance to all students in the State;
                    ``(ii) is statistically valid and reliable;
                    ``(iii) results in continuous and substantial 
                academic improvement for all students;
                    ``(iv) measures the progress of schools and local 
                educational agencies based primarily on the assessments 
                described in paragraph (3);
                    ``(v) includes annual measurable objectives for 
                continuing and significant improvement in--
                            ``(I) the achievement of all students; and
                            ``(II) the achievement of economically 
                        disadvantaged students, students with 
                        disabilities, students with limited English 
                        proficiency, migrant students, students by 
                        racial and ethnic group, and students by 
                        gender, except that such disaggregation shall 
                        not be required in any case in which the number 
                        of students in a category is insufficient to 
                        yield statistically reliable information or the 
                        results would reveal individually identifiable 
                        information about an individual student;
                    ``(vi) includes a timeline for meeting the goal 
                that each group of students described in clause (v) 
                will meet or exceed the State's proficient level of 
                performance on the State assessment used for the 
                purposes of this section and section 1116 not later 
                than 10 years after the date of enactment of the Better 
                Education for Students and Teachers Act; and
                    ``(vii) includes school completion or graduation 
                rates for secondary school students and at least 1 
                other academic indicator, as determined by the State, 
                for elementary school students, except that inclusion 
                of such indicators shall not decrease the number of 
                schools or local educational agencies that would 
                otherwise be subject to identification for improvement 
                or corrective action if the indicators were not 
                included.
            ``(C)(i) Each State plan shall include a detailed 
        description of an objective system or formula that incorporates 
        and gives appropriate weight to each of the elements described 
        in subparagraph (B), including the progress of each of the 
        groups of students described in subparagraph (B)(v)(II), in 
        meeting the State's annual measurable objectives for continuing 
        and significant improvement under subparagraph (B)(v) and in 
        making progress toward the 10-year goal described in 
        subparagraph (B)(vi), and that is primarily based on academic 
        progress as demonstrated by the assessments described in 
        paragraph (3) in subjects for which assessments are required 
        under this section, except that the State shall give greater 
        weight to the groups--
                    ``(I) performing at a level furthest from the 
                proficient level; and
                    ``(II) that make the greatest improvement.
            ``(ii) The system or formula shall be subject to peer 
        review and approval by the Secretary under subsection (e). The 
        Secretary shall not approve the system or formula unless the 
        Secretary determines that the system or formula is sufficiently 
        rigorous and reliable to ensure continuous and significant 
        progress toward the goal of having all students proficient 
        within 10 years.
            ``(D) A State shall define adequate yearly progress for the 
        purpose of making determinations under this Act so that--
                    ``(i) a school, local educational agency, or State, 
                respectively, has failed to make adequate yearly 
                progress if the school, local educational agency, or 
                State, respectively, has not--
                            ``(I) made adequate progress as determined 
                        by the system or formula described in 
                        subparagraph (C); or
                            ``(II) for each group of students described 
                        in subparagraph (B)(v)(II) (other than those 
                        groups formed by gender and migrant status), 
                        achieved an increase of not less than 1 
                        percent, in the percentage of students served 
                        by the school, local educational agency, or 
                        State, respectively, meeting the State's 
                        proficient level of performance in reading or 
                        language arts and mathematics, for a school 
                        year compared to the preceding school year; and
                    ``(ii) for the purpose of making determinations 
                under clause (i) (I) or (II), the State may establish a 
                uniform procedure for averaging data from the school 
                year for which the determination is made and 1 or 2 
                school years preceding such school year.
            ``(E) Each State shall ensure that in developing its plan, 
        the State diligently seeks public comment from a range of 
        institutions and individuals in the State with an interest in 
        improved student achievement and performance, including 
        parents, teachers, local educational agencies, pupil services 
        personnel, administrators (including those described in other 
        parts of this title), and other staff, and that the State will 
        continue to make a substantial effort to ensure that 
        information under this part is widely known and understood by 
        the public, parents, teachers, and school administrators 
        throughout the State. Such efforts shall include, at a minimum, 
        publication of such information and explanatory text, broadly 
        to the public through such means as the Internet, the media, 
        and public agencies.
            ``(F) If a State educational agency provides evidence, 
        which is satisfactory to the Secretary, that neither the State 
        educational agency nor any other State government official, 
        agency, or entity has sufficient authority, under State law, to 
        adopt content and student performance standards, and 
        assessments aligned with such standards, which will be 
        applicable to all students enrolled in the State's public 
        schools, the State educational agency may meet the requirements 
        of this subsection by--
                    ``(i) adopting standards and assessments that meet 
                the requirements of this subsection, on a statewide 
                basis, and limiting the applicability of the standards 
                and assessments to students served under this part; or
                    ``(ii) adopting and implementing policies that 
                ensure that each local educational agency in the State 
                which receives a grant under this part will adopt 
                content and student performance standards, and 
                assessments aligned with such standards, which meet all 
                of the criteria of this subsection.
            ``(G) Each State plan shall provide that in order for a 
        school to make adequate yearly progress under subparagraph (B), 
        not less than 95 percent of each group of students described in 
        subparagraph (B)(v)(II), who are enrolled in the school at the 
        time of the administration of the assessments, shall take the 
        assessments (in accordance with paragraphs (3)(H)(ii) and 
        (3)(I), and with accommodations, guidelines and alternate 
        assessments provided in the same manner as they are provided 
        under section 612(a)(17)(A) of the Individuals with 
        Disabilities Education Act) on which adequate yearly progress 
        is based, except that nothing in this subparagraph shall be 
        construed to limit the requirement under paragraph (3)(H)(i) to 
        assess all students.
            ``(H) Each State plan shall provide an assurance that the 
        State's accountability requirements for charter schools (as 
        defined in section 5120), such as requirements established 
        under the State's charter school law and overseen by the 
        State's authorized chartering agencies for such schools, are at 
        least as rigorous as the accountability requirements 
        established under this Act, such as the requirements regarding 
        standards, assessments, adequate yearly progress, school 
        identification, receipt of technical assistance, and corrective 
        action, that are applicable to other schools in the State under 
        this Act.
            ``(3) Assessments.--Each State plan shall demonstrate that 
        the State, in consultation with local educational agencies, has 
        a system of high-quality, yearly student assessments in 
        subjects that include, at a minimum, mathematics, reading or 
        language arts, and science that will be used as the primary 
        means of determining the yearly performance of each local 
        educational agency and school in enabling all children to meet 
        the State's student performance standards, except that no State 
        shall be required to meet the requirements of this part 
        relating to science assessments until the beginning of the 
        2007-2008 school year. Such assessments shall--
                    ``(A) be the same assessments used to measure the 
                performance of all children;
                    ``(B) be aligned with the State's challenging 
                content and student performance standards and provide 
                coherent information about student attainment of such 
                standards;
                    ``(C) be used for purposes for which such 
                assessments are valid and reliable, and be consistent 
                with relevant, nationally recognized professional and 
                technical standards for such assessments developed and 
                used by national experts on educational testing;
                    ``(D) be used only if the State provides to the 
                Secretary evidence from the test publisher or other 
                relevant sources that the assessment used is of 
                adequate technical quality for each purpose required 
                under this Act, and such evidence is made public by the 
                Secretary upon request;
                    ``(E) involve multiple up-to-date measures of 
                student performance, including measures that assess 
                higher order thinking skills and understanding;
                    ``(F)(i) beginning not later than school year 2001-
                2002, measure the proficiency of students served under 
                this part in mathematics and reading or language arts 
                and be administered not less than one time during--
                            ``(I) grades 3 through 5;
                            ``(II) grades 6 through 9; and
                            ``(III) grades 10 through 12;
                    ``(ii) beginning not later than school year 2002-
                2003, measure the proficiency of all students in 
                mathematics and reading or language arts and be 
                administered not less than one time during--
                            ``(I) grades 3 through 5;
                            ``(II) grades 6 through 9; and
                            ``(III) grades 10 through 12;
                    ``(iii) beginning not later than school year 2007-
                2008, measure the proficiency of all students in 
                science and be administered not less than one time 
                during--
                            ``(I) grades 3 through 5;
                            ``(II) grades 6 through 9; and
                            ``(III) grades 10 through 12;
                    ``(G) beginning not later than school year 2005-
                2006, measure the performance of students against the 
                challenging State content and student performance 
                standards annually in grades 3 through 8, and at least 
                once in grades 10 through 12, in at least mathematics 
                and reading or language arts, if the tests are aligned 
                with State standards, except that--
                            ``(i) a State may defer the commencement, 
                        or suspend the administration, of the 
                        assessments described in this paragraph, that 
                        were not required prior to the date of 
                        enactment of the Better Education for Students 
                        and Teachers Act, for 1 year, for each year for 
                        which the amount appropriated for grants under 
                        section 6204(c) is less than--
                                    ``(I) $370,000,000 for fiscal year 
                                2002;
                                    ``(II) $380,000,000 for fiscal year 
                                2003;
                                    ``(III) $390,000,000 for fiscal 
                                year 2004;
                                    ``(IV) $400,000,000 for fiscal year 
                                2005;
                                    ``(V) $410,000,000 for fiscal year 
                                2006;
                                    ``(VI) $420,000,000 for fiscal year 
                                2007; and
                                    ``(VII) $430,000,000 for fiscal 
                                year 2008; and
                            ``(ii) the Secretary may permit a State to 
                        commence the assessments, that were required by 
                        amendments made to this paragraph by the Better 
                        Education for Students and Teachers Act, in 
                        school year 2006-2007, if the State 
                        demonstrates to the Secretary that exceptional 
                        or uncontrollable circumstances, such as a 
                        natural disaster or a precipitous or unforeseen 
                        decline in the financial resources of the local 
                        educational agency or school, prevent full 
                        implementation of the assessments in school 
                        year 2005-2006 and that the State will 
                        administer such assessments during school year 
                        2006-2007;
                    ``(H) at the discretion of the State, measure the 
                proficiency of students in academic subjects not 
                described in subparagraphs (E), (F), and (G) in which 
                the State has adopted challenging content and student 
                performance standards;
                    ``(I) provide for--
                            ``(i) the participation in such assessments 
                        of all students;
                            ``(ii) the reasonable adaptations and 
                        accommodations for students with disabilities 
                        defined under section 602(3) of the Individuals 
                        with Disabilities Education Act necessary to 
                        measure the achievement of such students 
                        relative to State content and State student 
                        performance standards;
                            ``(iii) the inclusion of limited English 
                        proficient students who shall be assessed, to 
                        the extent practicable, in the language and 
                        form most likely to yield accurate and reliable 
                        information on what such students know and can 
                        do in content areas; and
                            ``(iv) notwithstanding clause (iii), the 
                        assessment (using tests written in English) of 
                        reading or language arts of any student who has 
                        attended school in the United States (excluding 
                        the Commonwealth of Puerto Rico) for 3 or more 
                        consecutive years, except that if a local 
                        educational agency demonstrates to the State 
                        educational agency that assessments in another 
                        language and form is likely to yield more 
                        accurate and reliable information on what such 
                        a student knows and can do, then the State 
                        educational agency, on a case-by-case basis, 
                        may waive the requirement to use tests written 
                        in English for those students and permit those 
                        students to be assessed in the appropriate 
                        language for one or more additional years, but 
                        only if the total number of students so 
                        assessed does not exceed one-third of the 
                        number of students in the State who were not 
                        required to be assessed using tests written in 
                        English in the previous year because the 
                        students were in the third year of the 3-year 
                        period described in this clause;
                    ``(J) beginning not later than school year 2002-
                2003, provide for the annual assessment of the 
                development of English proficiency (appropriate to 
                students' oral language, reading, and writing skills in 
                English) of students with limited English proficiency 
                who are served under this part or under title III and 
                who do not participate in the assessment described in 
                clause (iv) of subparagraph (I);
                    ``(K) 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;
                    ``(L) produce individual student interpretive and 
                descriptive reports to be provided to parents of all 
                students, which shall include performance on 
                assessments aligned with State standards, and other 
                information on the attainment of student performance 
                standards, such as measures of student course work over 
                time, student attendance rates, student dropout rates, 
                and student participation in advanced level courses;
                    ``(M) enable results to be disaggregated within 
                each State, local educational agency, and school by 
                gender, by racial and ethnic group, by English 
                proficiency status, by migrant status, by students with 
                disabilities as compared to nondisabled students, and 
                by economically disadvantaged students as compared to 
                students who are not economically disadvantaged, except 
                that in the case of a local educational agency or a 
                school such disaggregation shall not be required in a 
                case in which the number of students in a category is 
                insufficient to yield statistically reliable 
                information or the results would reveal individually 
                identifiable information about an individual student; 
                and
                    ``(N) enable itemized score analyses to be reported 
                to schools and local educational agencies in a way that 
                parents, teachers, schools, and local educational 
                agencies can interpret and address the specific 
                academic needs of individual students as indicated by 
                the students' performance on assessment items.
            ``(4) Special rules.--(A) Additional measures that do not 
        meet the requirements of paragraph (3)(C) may be included in 
        the assessments if a State includes in the State plan 
        information regarding the State's efforts to validate such 
        measures, but such measures shall not be the primary or sole 
        indicator of student progress toward meeting State standards.
            ``(B) Consistent with section 1112(b)(1)(D) States may 
        measure the proficiency of students in the academic subjects in 
        which a State has adopted challenging content and student 
        performance standards 1 or more times during grades 
        kindergarten through 2.
            ``(5) Language assessments.--Each State plan shall identify 
        the languages other than English that are present in the 
        participating student population and indicate the languages for 
        which yearly student assessments are not available and are 
        needed. The State shall make every effort to develop such 
        assessments and may request assistance from the Secretary if 
        linguistically accessible assessment measures are needed. Upon 
        request, the Secretary shall assist with the identification of 
        appropriate assessment measures in the needed languages but 
        shall not mandate a specific assessment or mode of instruction.
            ``(6) Requirement.--Each State plan shall describe--
                    ``(A) how the State educational agency will help 
                each local educational agency and school affected by 
                the State plan to develop the capacity to comply with 
                each of the requirements of sections 1112(c)(4), 
                1114(b), and 1115(c) that is applicable to such agency 
                or school;
                    ``(B) the specific steps the State educational 
                agency will take to ensure that both schoolwide 
                programs and targeted assistance schools provide 
                instruction by highly qualified instructional staff as 
                required by sections 1114(b)(1)(C) and 1115(c)(1)(F), 
                including steps that the State educational agency will 
                take to ensure that poor and minority children are not 
                taught at higher rates than other children by 
                inexperienced, unqualified, or out of field teachers, 
                and the measures that the State educational agency will 
                use to evaluate and publicly report the progress of the 
                State educational agency with respect to such steps;
                    ``(C) how the State educational agency will develop 
                or identify high quality effective curriculum models 
                aligned with State standards and how the State 
                educational agency will disseminate such models to each 
                local educational agency and school within the State; 
                and
                    ``(D) such other factors the State deems 
                appropriate to provide students an opportunity to 
                achieve the knowledge and skills described in the 
                challenging content standards adopted by the State.
            ``(7) Ed-flex.--A State shall not be eligible for 
        designation under the Ed-Flex Partnership Act of 1999 until the 
        State develops assessments aligned with the State's content 
        standards in at least mathematics and reading or language arts.
            ``(8) Factors impacting student achievement.--Each State 
        plan shall include a description of the process that will be 
        used with respect to any school within the State that is 
        identified for school improvement or corrective action under 
        section 1116 to identify the academic and other factors that 
        have significantly impacted student achievement at the school.
    ``(c) Other Provisions To Support Teaching and Learning.--Each 
State plan shall contain assurances that--
            ``(1) the State will meet the requirements of subsection 
        (j)(1) and, beginning with the 2002-2003 school year, will 
        produce the annual State report cards described in such 
        subsection;
            ``(2) the State will, beginning in school year 2002-2003, 
        participate in annual State assessments of 4th and 8th grade 
        reading and mathematics under the National Assessment of 
        Educational Progress carried out under section 411(b)(2) of the 
        National Education Statistics Act of 1994 if the Secretary pays 
        the costs of administering such assessments, except that a 
        State in which less than 0.25 percent of the total number of 
        poor, school-aged children in the United States is located 
        shall be required to comply with the requirement of this 
        paragraph on a biennial basis;
            ``(3) the State educational agency will work with other 
        agencies, including educational service agencies or other local 
        consortia, and institutions to provide technical assistance to 
        local educational agencies and schools to carry out the State 
        educational agency's responsibilities under this part, 
        including technical assistance in providing professional 
        development under section 1119, technical assistance under 
        section 1117, and parental involvement under section 1118;
            ``(4)(A) where educational service agencies exist, the 
        State educational agency will consider providing professional 
        development and technical assistance through such agencies; and
            ``(B) where educational service agencies do not exist, the 
        State educational agency will consider providing professional 
        development and technical assistance through other cooperative 
        agreements such as through a consortium of local educational 
        agencies;
            ``(5) the State educational agency will notify local 
        educational agencies and the public of the content and student 
        performance standards and assessments developed under this 
        section, and of the authority to operate schoolwide programs, 
        and will fulfill the State educational agency's 
        responsibilities regarding local educational agency improvement 
        and school improvement under section 1116, including such 
        corrective actions as are necessary;
            ``(6) the State educational agency will provide the least 
        restrictive and burdensome regulations for local educational 
        agencies and individual schools participating in a program 
        assisted under this part;
            ``(7) the State educational agency will inform the 
        Secretary and the public of how Federal laws, if at all, hinder 
        the ability of States to hold local educational agencies and 
        schools accountable for student academic performance;
            ``(8) the State educational agency will encourage schools 
        to consolidate funds from other Federal, State, and local 
        sources for schoolwide reform in schoolwide programs under 
        section 1114;
            ``(9) the State educational agency will modify or eliminate 
        State fiscal and accounting barriers so that schools can easily 
        consolidate funds from other Federal, State, and local sources 
        for schoolwide programs under section 1114;
            ``(10) the State educational agency has involved the 
        committee of practitioners established under section 1903(b) in 
        developing the plan and monitoring its implementation;
            ``(11) the State educational agency will inform local 
        educational agencies of the local educational agency's 
        authority to obtain waivers under subpart 3 of part B of title 
        V and, if the State is an Ed-Flex Partnership State, waivers 
        under the Education Flexibility Partnership Act of 1999; and
            ``(12) the State will coordinate activities funded under 
        this part with other Federal activities as appropriate.
    ``(d) Parental Involvement.--Each State plan shall describe how the 
State will support the collection and dissemination to local 
educational agencies and schools of effective parental involvement 
practices. Such practices shall--
            ``(1) be based on the most current research on effective 
        parental involvement that fosters achievement to high standards 
        for all children; and
            ``(2) be geared toward lowering barriers to greater 
        participation in school planning, review, and improvement 
        experienced by parents.
    ``(e) Peer Review and Secretarial Approval.--
            ``(1) Secretarial duties.--The Secretary shall--
                    ``(A) establish a peer review process to assist in 
                the review of State plans;
                    ``(B) appoint individuals to the peer review 
                process who are representative of parents, teachers, 
                State educational agencies, local educational agencies, 
                and who are familiar with educational standards, 
                assessments, accountability, and other diverse 
                educational needs of students;
                    ``(C) approve a State plan within 120 days of its 
                submission unless the Secretary determines that the 
                plan does not meet the requirements of this section;
                    ``(D) if the Secretary determines that the State 
                plan does not meet the requirements of subsection (a), 
                (b), or (c), immediately notify the State of such 
                determination and the reasons for such determination;
                    ``(E) not decline to approve a State's plan 
                before--
                            ``(i) offering the State an opportunity to 
                        revise its plan;
                            ``(ii) providing technical assistance in 
                        order to assist the State to meet the 
                        requirements under subsections (a), (b), and 
                        (c); and
                            ``(iii) providing a hearing; and
                    ``(F) have the authority to disapprove a State plan 
                for not meeting the requirements of this part, but 
                shall not have the authority to require a State, as a 
                condition of approval of the State plan, to include in, 
                or delete from, such plan 1 or more specific elements 
                of the State's content standards or to use specific 
                assessment instruments or items.
            ``(2) State revisions.--States shall revise their plans if 
        necessary to satisfy the requirements of this section.
    ``(f) Provision of Testing Results to Parents and Teachers.--Each 
State plan shall demonstrate how the State educational agency will 
assist local educational agencies in assuring that results from the 
assessments required under this section will be provided to parents and 
teachers as soon as is practicably possible after the test is taken, in 
a manner and form that is understandable and easily accessible to 
parents and teachers.
    ``(g) Duration of the Plan.--
            ``(1) In general.--Each State plan shall--
                    ``(A) remain in effect for the duration of the 
                State's participation under this part; and
                    ``(B) be periodically reviewed and revised by the 
                State, as necessary, to reflect changes in the State's 
                strategies and programs under this part.
            ``(2) Additional information.--If the State makes 
        significant changes in its plan, such as the adoption of new 
        State content standards and State student performance 
        standards, new assessments, or a new definition of adequate 
        progress, the State shall submit such information to the 
        Secretary.
    ``(h) Limitation on Conditions.--Nothing in this part shall be 
construed to authorize an officer or employee of the Federal Government 
to mandate, direct, or control a State, local educational agency, or 
school's specific instructional content or student performance 
standards and assessments, curriculum, or program of instruction, as a 
condition of eligibility to receive funds under this part.
    ``(i) Penalty.--If a State fails to meet the statutory deadlines 
for demonstrating that it has in place challenging content standards 
and student performance standards, a set of high quality annual student 
assessments aligned to the standards, and a system for measuring and 
monitoring adequate yearly progress, the Secretary shall withhold funds 
for State administration and activities under section 1117 and take 
such other steps as are needed to assist the State in coming into 
compliance with this section until the Secretary determines that the 
State plan meets the requirements of this section.
    ``(j) Reports.--
            ``(1) Annual state report card.--
                    ``(A) In general.--Not later than the beginning of 
                the 2002-2003 school year, a State that receives 
                assistance under this Act shall prepare and disseminate 
                an annual State report card.
                    ``(B) Implementation.--The State report card shall 
                be--
                            ``(i) concise; and
                            ``(ii) presented in a format and manner 
                        that parents can understand, and which, to the 
                        extent practicable, shall be in a language the 
                        parents can understand.
                    ``(C) Public dissemination.--The State shall widely 
                disseminate the information described in subparagraph 
                (D) to all schools and local educational agencies in 
                the State and make the information broadly available 
                through public means, such as posting on the Internet, 
                distribution to the media, and distribution through 
                public agencies.
                    ``(D) Required information.--The State shall 
                include in its annual State report card--
                            ``(i) information, in the aggregate, on 
                        student achievement and performance at each 
                        proficiency level on the State assessments 
                        described in subsection (b)(3)(G) 
                        (disaggregated by race, ethnicity, gender, 
                        disability status, migrant status, English 
                        proficiency, and socioeconomic status);
                            ``(ii) the percentage of students not 
                        tested (disaggregated by the same categories 
                        described in clause (i));
                            ``(iii) the most recent 2-year trend in 
                        student performance in each subject area, and 
                        for each grade level, for which assessments 
                        under section 1111 are required;
                            ``(iv) aggregate information included in 
                        all other indicators used by the State to 
                        determine the adequate yearly progress of 
                        students in achieving State content and student 
                        performance standards;
                            ``(v) average 4-year graduation rates and 
                        annual school dropout rates disaggregated by 
                        race, ethnicity, gender, disability status, 
                        migrant status, English proficiency, and 
                        socioeconomic status, 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;
                            ``(vi) the percentage of teachers teaching 
                        with emergency or provisional credentials 
                        (disaggregated by high poverty and low poverty 
                        schools which for purposes of this clause means 
                        schools in which 50 percent or more, or less 
                        than 50 percent, respectively, of the students 
                        are from low-income families), and the 
                        percentage of classes not taught by highly 
                        qualified teachers in such high poverty 
                        schools;
                            ``(vii) the number and names of each school 
                        identified for school improvement, including 
                        schools identified under section 1116(c); and
                            ``(viii) information on the performance of 
                        local educational agencies in the State 
                        regarding making adequate yearly progress, 
                        including the number and percentage of schools 
                        in the State that did not make adequate yearly 
                        progress.
                    ``(E) Permissive information.--The State may 
                include in its annual State report card such other 
                information as the State believes will best provide 
                parents, students, and other members of the public with 
                information regarding the progress of each of the 
                State's public elementary schools and secondary 
                schools. Such information may include information 
                regarding--
                            ``(i) school attendance rates;
                            ``(ii) average class size in each grade;
                            ``(iii) academic achievement and gains in 
                        English proficiency of limited English 
                        proficient students;
                            ``(iv) the incidence of school violence, 
                        drug abuse, alcohol abuse, student suspensions, 
                        and student expulsions;
                            ``(v) the extent of parental participation 
                        in the schools;
                            ``(vi) parental involvement activities;
                            ``(vii) extended learning time programs 
                        such as after-school and summer programs;
                            ``(viii) the percentage of students 
                        completing advanced placement courses;
                            ``(ix) the percentage of students 
                        completing college preparatory curricula; and
                            ``(x) student access to technology in 
                        school.
                    ``(F) Protection of pupil rights.--In meeting the 
                requirements of this section, States, local educational 
                agencies, and schools shall comply with the provisions 
                of section 445 of the General Education Provisions Act.
            ``(2) Annual local educational agency report cards.--
                    ``(A) In general.--Not later than the beginning of 
                the 2002-2003 school year, a local educational agency 
                that receives assistance under this Act shall prepare 
                and disseminate an annual local educational agency 
                report card.
                    ``(B) Minimum requirements.--The State shall ensure 
                that each local educational agency collects appropriate 
                data and includes in the local educational agency's 
                annual report the information described in paragraph 
                (1)(D) as applied to the local educational agency and 
                each school served by the local educational agency, 
                and--
                            ``(i) in the case of a local educational 
                        agency--
                                    ``(I) the number and percentage of 
                                schools identified for school 
                                improvement and how long they have been 
                                so identified, including schools 
                                identified under section 1116(c); and
                                    ``(II) information that shows how 
                                students served by the local 
                                educational agency perform on the 
                                statewide assessment compared to 
                                students in the State as a whole; and
                            ``(ii) in the case of a school--
                                    ``(I) whether the school has been 
                                identified for school improvement; and
                                    ``(II) information that shows how 
                                the school's students performed on the 
                                statewide assessment compared to 
                                students in the local educational 
                                agency and the State as a whole.
                    ``(C) Other information.--A local educational 
                agency may include in its annual reports any other 
                appropriate information whether or not such information 
                is included in the annual State report.
                    ``(D) Data.--A local educational agency or school 
                shall only include in its annual local educational 
                agency report card data that is sufficient to yield 
                statistically reliable information, as determined by 
                the State, and does not reveal individually 
                identifiable information about an individual student.
                    ``(E) Public dissemination.--The local educational 
                agency shall, not later than the beginning of the 2002-
                2003 school year, publicly disseminate the information 
                described in this paragraph to all schools in the 
                school district and to all parents of students 
                attending those schools, and make the information 
                broadly available through public means, such as posting 
                on the Internet, distribution to the media, and 
                distribution through public agencies, except that if a 
                local educational agency issues a report card for all 
                students, the local educational agency may include the 
                information under this section as part of such report.
            ``(3) Preexisting report cards.--A State or local 
        educational agency that was providing public report cards on 
        the performance of students, schools, local educational 
        agencies, or the State, may continue to use those reports for 
        the purpose of this subsection, if such report is modified, as 
        may be necessary, to contain the information required by this 
        subsection.
            ``(4) Annual state report to the secretary.--Each State 
        receiving assistance under this Act shall report annually to 
        the Secretary, and make widely available within the State--
                    ``(A) beginning with school year 2001-2002, 
                information on the State's progress in developing and 
                implementing the assessments described in subsection 
                (b)(3);
                    ``(B) beginning not later than school year 2004-
                2005, information on the achievement of students on the 
                assessments required by that section, including the 
                disaggregated results for the categories of students 
                identified in subsection (b)(2)(B)(v)(II);
                    ``(C) the number and names of each school 
                identified for school improvement, including schools 
                identified under section 1116(c), the reason why each 
                school was so identified, and the measures taken to 
                address the performance problems of such schools; and
                    ``(D) in any year before the State begins to 
                provide the information described in subparagraph (B), 
                information on the results of student assessments 
                (including disaggregated results) required under this 
                section.
            ``(5) Parents right-to-know.--
                    ``(A) Qualifications.--A local educational agency 
                that receives funds under this part shall provide and 
                notify the parents of each student attending any school 
                receiving funds under this part that the parents may 
                request, and will be provided on request, information 
                regarding the professional qualifications of the 
                student's classroom teachers, including, at a minimum, 
                the following:
                            ``(i) Whether the teacher has met State 
                        qualification and licensing criteria for the 
                        grade levels and subject areas in which the 
                        teacher provides instruction.
                            ``(ii) Whether the teacher is teaching 
                        under emergency or other provisional status 
                        through which State qualification or licensing 
                        criteria have been waived.
                            ``(iii) The baccalaureate degree major of 
                        the teacher and any other graduate 
                        certification or degree held by the teacher, 
                        and the field of discipline of the 
                        certification or degree.
                            ``(iv) Whether the child is provided 
                        services by a paraprofessional and the 
                        qualifications of such paraprofessional.
                    ``(B) Additional information.--A school that 
                receives funds under this part shall provide to parents 
                information on the level of performance, of the 
                individual student for whom they are the parent, in 
                each of the State assessments as required under this 
                part.
                    ``(C) Format.--The notice and information provided 
                to parents shall be in an understandable and uniform 
                format.
            ``(6) Report to congress.--The Secretary shall report 
        annually to Congress--
                    ``(A) beginning with school year 2001-2002, 
                information on the State's progress in developing and 
                implementing the assessments described in subsection 
                (b)(3);
                    ``(B) beginning not later than school year 2004-
                2005, information on the achievement of students on the 
                assessments described in subsection (b)(3), including 
                the disaggregated results for the categories of 
                students described in subsection (b)(2)(B)(v)(II);
                    ``(C) in any year before the States begin to 
                provide the information described in paragraph (B) to 
                the Secretary, information on the results of student 
                assessments (including disaggregated results) required 
                under this section.
    ``(k) Privacy.--Information collected under this section shall be 
collected and disseminated in a manner that protects the privacy of 
individuals.
    ``(l) Technical Assistance.--The Secretary shall provide a State 
educational agency, at the State educational agency's request, 
technical assistance in meeting the requirements of this section, 
including the provision of advice by experts in the development of 
high-quality assessments, the setting of State performance standards, 
the development of measures of adequate yearly progress that are valid 
and reliable, and other relevant areas.
    ``(m) Voluntary Partnerships.--A State may enter into a voluntary 
partnership with another State to develop and implement the assessments 
and standards required under this section.''.

SEC. 112. LOCAL EDUCATIONAL AGENCY PLANS.

    Section 1112 (20 U.S.C. 6312) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``the Goals'' and 
                all that follows through ``section 14306'' 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''; and
                    (B) in paragraph (2), by striking ``14304'' and 
                inserting ``5504'';
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B), by striking 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (C), by inserting 
                        ``and'' after the semicolon; and
                            (iii) by adding at the end the following:
                    ``(D) determine the literacy levels of first 
                graders and their needs for interventions, including a 
                description of how the agency will ensure that any such 
                assessments--
                            ``(i) are developmentally appropriate;
                            ``(ii) use multiple measures to provide 
                        information about the variety of skills that 
                        research has identified as leading to early 
                        reading; and
                            ``(iii) are administered to students in the 
                        language most likely to yield valid results;'';
                    (B) in paragraph (3), by inserting ``, which 
                strategy shall be coordinated with activities under 
                title II if the local educational agency receives funds 
                under title II'' before the semicolon;
                    (C) in paragraph (4)--
                            (i) in subparagraph (A)--
                                    (I) by striking ``programs, 
                                vocational'' and inserting ``programs 
                                and vocational''; and
                                    (II) by striking ``, and school-to-
                                work transition programs''; and
                            (ii) in subparagraph (B)--
                                    (I) by striking ``served under part 
                                C'' and all that follows through 
                                ``1994''; and
                                    (II) by striking ``served under 
                                part D''; and
                    (D) by striking paragraph (9) and inserting the 
                following:
            ``(9) where appropriate, a description of how the local 
        educational agency will use funds under this part to support 
        early childhood education programs under section 1120B;
            ``(10) a description of the strategy the local educational 
        agency will use to implement effective parental involvement 
        under section 1118;
            ``(11) a description of the process that will be used with 
        respect to any school identified for school improvement or 
        corrective action that is served by the local educational 
        agency to determine the academic and other factors that have 
        significantly impacted student achievement at the school; and
            ``(12) where appropriate, a description of how the local 
        educational agency will use funds under this part to support 
        school year extension programs under section 1120C for low-
        performing schools.'';
            (3) by amending subsection (c) to read as follows:
    ``(c) Assurances.--Each local educational agency plan shall provide 
assurances that the local educational agency will--
            ``(1) inform eligible schools and parents of schoolwide 
        project authority;
            ``(2) provide technical assistance and support to 
        schoolwide programs;
            ``(3) work in consultation with schools as the schools 
        develop the schools' plans pursuant to section 1114 and assist 
        schools as the schools implement such plans or undertake 
        activities pursuant to section 1115 so that each school can 
        make adequate yearly progress toward meeting the State content 
        standards and State student performance standards;
            ``(4) fulfill such agency's school improvement 
        responsibilities under section 1116, including taking 
        corrective actions under section 1116(c)(5);
            ``(5) work in consultation with schools as the schools 
        develop and implement their plans or activities under sections 
        1118 and 1119;
            ``(6) coordinate and collaborate, to the extent feasible 
        and necessary as determined by the local educational agency, 
        with other agencies providing services to children, youth, and 
        families, including health and social services;
            ``(7) provide services to eligible children attending 
        private elementary and secondary schools in accordance with 
        section 1120, and timely and meaningful consultation with 
        private school officials regarding such services;
            ``(8) take into account the experience of model programs 
        for the educationally disadvantaged, and the findings of 
        relevant research indicating that services may be most 
        effective if focused on students in the earliest grades at 
        schools that receive funds under this part;
            ``(9) comply with the requirements of section 1119 
        regarding professional development;
            ``(10) inform eligible schools of the local educational 
        agency's authority to obtain waivers on the school's behalf 
        under subpart 3 of part B of title V, and if the State is an 
        Ed-Flex Partnership State, waivers under the Education 
        Flexibility Partnership Act of 1999;
            ``(11) ensure, through incentives for voluntary transfers, 
        the provision of professional development, recruitment 
        programs, or other effective strategies, that low-income 
        students and minority students are not taught at higher rates 
        than other students by unqualified, out-of-field, or 
        inexperienced teachers;
            ``(12) use the results of the student assessments required 
        under section 1111(b)(3), and other measures or indicators 
        available to the agency, to review annually the progress of 
        each school served by the agency and receiving funds under this 
        title to determine whether or not all of the schools are making 
        the annual progress necessary to ensure that all students will 
        meet the State's proficient level of performance on the State 
        assessments described in section 1111(b)(3) within 10 years of 
        the date of enactment of the Better Education for Students and 
        Teachers Act;
            ``(13) ensure that the results from the assessments 
        required under section 1111 will be provided to parents and 
        teachers as soon as is practicably possible after the test is 
        taken, in a manner and form that is understandable and easily 
        accessible to parents and teachers; and
            ``(14) make available to each school served by the agency 
        and assisted under this part models of high quality, effective 
        curriculum that are aligned with the State's standards and 
        developed or identified by the State.''; and
            (4) in subsection (e)--
                    (A) in paragraph (1), by striking ``, except that'' 
                and all that follows through ``finally approved by the 
                State educational agency''; and
                    (B) in paragraph (3)--
                            (i) by striking ``professional 
                        development''; and
                            (ii) by striking ``section 1119'' and 
                        inserting ``sections 1118 and 1119''.

SEC. 113. ELIGIBLE SCHOOL ATTENDANCE AREAS.

    Section 1113(b)(1) (20 U.S.C. 6313(b)(2)) is amended--
            (1) in subparagraph (B), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (C)(iii), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(D) designate and serve a school attendance area 
                or school that is not an eligible school attendance 
                area under subsection (a)(2), but that was an eligible 
                school attendance area and was served in the fiscal 
                year preceding the fiscal year for which the 
                determination is made, but only for 1 additional fiscal 
                year.''.

SEC. 114. SCHOOLWIDE PROGRAMS.

    Section 1114 (20 U.S.C. 6314) is amended--
            (1) in subsection (a)--
                    (A) by striking paragraph (1) and inserting the 
                following:
            ``(1) In general.--A local educational agency may use funds 
        under this part, together with other Federal, State, and local 
        funds, to upgrade the entire educational program of a school 
        that serves an eligible school attendance area in which not 
        less than 40 percent of the children are from low-income 
        families, or not less than 40 percent of the children enrolled 
        in the school are from such families, for the initial year of 
        the schoolwide program.''; and
                    (B) in paragraph (4)--
                            (i) by amending the heading to read as 
                        follows: ``Exemption from statutory and 
                        regulatory requirements.--''; and
                            (ii) by adding at the end the following:
            ``(C) A school that chooses to use funds from such other 
        programs under this section shall not be required to maintain 
        separate fiscal accounting records, by program, that identify 
        the specific activities supported by those particular funds as 
        long as the school maintains records that demonstrate that the 
        schoolwide program, considered as a whole, addresses the intent 
        and purposes of each of the programs that were consolidated to 
        support the schoolwide program.''; and
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B)(vii), by striking 
                        ``, if any, approved under title III of the 
                        Goals 2000: Educate America Act'';
                            (ii) in subparagraph (E), by striking ``, 
                        such as family literacy services'' and 
                        inserting ``(including activities described in 
                        section 1118), such as family literacy 
                        services, in-school volunteer opportunities, or 
                        parent membership on school-based leadership or 
                        management teams.''; and
                            (iii) by adding at the end the following:
                    ``(I) Coordination and integration of Federal, 
                State, and local services and programs, including 
                programs supported under this Act, violence prevention 
                programs, nutrition programs, housing programs, Head 
                Start, adult education, and job training.''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) in the matter preceding clause 
                                (i), by striking ``Improving America's 
                                Schools Act of 1994'' and inserting 
                                ``Better Education for Students and 
                                Teachers Act'';
                                    (II) in clause (iv), by inserting 
                                ``in a language the family can 
                                understand'' after ``assessment 
                                results'';
                                    (III) in clause (vi), by striking 
                                ``and'' after the semicolon;
                                    (IV) in clause (vii), by striking 
                                the period and inserting ``; and''; and
                                    (V) by adding at the end the 
                                following:
                            ``(viii) describes how the school will 
                        coordinate and collaborate with other agencies 
                        providing services to children and families, 
                        including programs supported under this Act, 
                        violence prevention programs, nutrition 
                        programs, housing programs, Head Start, adult 
                        education, and job training.''; and
                            (ii) in subparagraph (C)--
                                    (I) in clause (i)(II), by striking 
                                ``Improving America's Schools Act of 
                                1994'' and inserting ''Better Education 
                                for Students and Teachers Act''; and
                                    (II) in clause (v), by striking 
                                ``the School-to-Work Opportunities Act 
                                of 1994''.

SEC. 115. TARGETED ASSISTANCE SCHOOLS.

    Section 1115 (20 U.S.C. 6315) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1)(A)(ii), by striking ``, yet'' 
                and all that follows through ``setting''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (B), insert ``or in 
                        early childhood education services under this 
                        title,'' after ``program,''; and
                            (ii) in subparagraph (C)(i), by striking 
                        ``under part D (or its predecessor 
                        authority)''; and
            (2) in subsection (c)(1)--
                    (A) by amending subparagraph (G) to read as 
                follows:
                    ``(G) provide opportunities for professional 
                development with resources provided under this part, 
                and to the extent practicable, from other sources, for 
                teachers, principals, administrators, 
                paraprofessionals, pupil services personnel, and 
                parents, who work with participating children in 
                programs under this section or in the regular education 
                program;'';
                    (B) in subparagraph (H), by striking ``, such as 
                family literacy services'' and inserting ``(including 
                activities described in section 1118), such as family 
                literacy services, in-school volunteer opportunities, 
                or parent membership on school-based leadership or 
                management teams; and''; and
                    (C) by adding at the end the following:
                    ``(I) coordinate and integrate Federal, State, and 
                local services and programs, including programs 
                supported under this Act, violence prevention programs, 
                nutrition programs, housing programs, Head Start, adult 
                education, and job training.''.

SEC. 116. PUPIL SAFETY AND FAMILY SCHOOL CHOICE.

    Subpart 1 of part A of title I (20 U.S.C. 6311 et seq.) is amended 
by inserting after section 1115A (20 U.S.C. 6316) the following:

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

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

SEC. 117. ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL 
              IMPROVEMENT.

    Section 1116 (20 U.S.C. 6317) is amended to read as follows:

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

    ``(a) Local Review.--Each local educational agency receiving funds 
under this part shall--
            ``(1) use the State assessments described in the State 
        plan;
            ``(2) use any additional measures or indicators described 
        in the local educational agency's plan to review annually the 
        progress of each school served under this part to determine 
        whether the school is meeting, or making adequate progress as 
        defined in sections 1111(b)(2) (B) and (D) toward enabling its 
        students to meet the State's student performance standards 
        described in the State plan;
            ``(3) provide the results of the local annual review to 
        schools so that the schools, principals, teachers, and other 
        staff in an instructionally useful manner can continually 
        refine the program of instruction to help all children served 
        under this part in those schools meet the State's student 
        performance standards; and
            ``(4) annually review the effectiveness of the actions and 
        activities the schools are carrying out under this part with 
        respect to parental involvement activities under section 1118, 
        professional development activities under section 1119, and 
        other activities assisted under this Act.
    ``(b) Designation of Distinguished Schools.--Each State educational 
agency and local educational agency receiving funds under this part 
shall designate distinguished schools in accordance with section 1117.
    ``(c) School Improvement.--
            ``(1) School improvement.--(A) Subject to subparagraph (B), 
        a local educational agency shall identify for school 
        improvement any elementary school or secondary school served 
        under this part that fails, for any year, to make adequate 
        yearly progress as defined in the State's plan under sections 
        1111(b)(2) (B) and (D).
            ``(B) Subparagraph (A) shall not apply to a school if 
        almost every student in such school is meeting the State's 
        proficient level of performance.
            ``(C) To determine if an elementary school or a secondary 
        school that is conducting a targeted assistance program under 
        section 1115 should be identified for school improvement under 
        this subsection, a local educational agency may choose to 
        review the progress of only the students in the school who are 
        served, or are eligible for services, under this part.
            ``(2) Opportunity to review and present evidence; time 
        limit.--(A) Before identifying an elementary school or a 
        secondary school for school improvement under paragraph (1), 
        for corrective action under paragraph (7), or for 
        reconstitution under paragraph (8), the local educational 
        agency shall provide the school with an opportunity to review 
        the school-level data, including assessment data, on which such 
        identification is based.
            ``(B) If the principal of a school proposed for 
        identification under paragraph (1), (7), or (8) believes that 
        the proposed identification is in error for statistical or 
        other substantive reasons, the principal may provide supporting 
        evidence to the local educational agency, which shall consider 
        that evidence before making a final determination.
            ``(C) Not later than 30 days after a local educational 
        agency makes an initial determination concerning identifying a 
        school under paragraph (1), (7), or (8), the local educational 
        agency shall make public a final determination on the status of 
        the school.
            ``(3) School plan.--(A) Each school identified under 
        paragraph (1) for school improvement shall, not later than 3 
        months after being so identified, develop or revise a school 
        plan, in consultation with parents, school staff, the local 
        educational agency serving the school, the local school board, 
        and other outside experts, for approval by such local 
        educational agency. The school plan shall cover a 2-year period 
        and--
                    ``(i) incorporate scientifically based research 
                strategies that strengthen the core academic subjects 
                in the school and address the specific academic issues 
                that caused the school to be identified for school 
                improvement and may include a strategy for the 
                implementation of a comprehensive school reform model 
                that meets each of the components described in section 
                1706(a);
                    ``(ii) adopt policies and practices concerning the 
                school's core academic subjects that have the greatest 
                likelihood of ensuring that all groups of students 
                specified in section 1111(b)(2)(B)(v)(II) and enrolled 
                in the school will meet the State's proficient level of 
                performance on the State assessment described in 
                section 1111(b)(3) within 10 years after the date of 
                enactment of the Better Education for Students and 
                Teachers Act;
                    ``(iii) provide an assurance that the school will 
                reserve not less than 10 percent of the funds made 
                available to the school under this part for each fiscal 
                year that the school is in school improvement status, 
                for the purpose of providing to the school's teachers 
                and principal high-quality professional development 
                that--
                            ``(I) directly addresses the academic 
                        performance problem that caused the school to 
                        be identified for school improvement; and
                            ``(II) meets the requirements for 
                        professional development activities under 
                        section 1119;
                    ``(iv) specify how the funds described in clause 
                (iii) will be used to remove the school from school 
                improvement status;
                    ``(v) establish specific annual, objective goals 
                for continuous and significant progress by each group 
                of students specified in section 1111 (b)(2)(B)(v)(II) 
                and enrolled in the school that will ensure that all 
                such groups of students will make continuous and 
                significant progress towards meeting the goal of all 
                students reaching the State's proficient level of 
                performance on the State assessment described in 
                section 1111(b)(3) within 10 years after the date of 
                enactment of the Better Education for Students and 
                Teachers Act;
                    ``(vi) identify how the school will provide written 
                notification about the identification to the parents of 
                each student enrolled in such school, in a format and, 
                to the extent practicable, in a language the parents 
                can understand;
                    ``(vii) specify the responsibilities of the school, 
                the local educational agency, and the State educational 
                agency serving the school under the plan, including the 
                technical assistance to be provided by the local 
                educational agency under paragraph (4); and
                    ``(viii) include strategies to promote effective 
                parental involvement in the school.
            ``(B) The local educational agency may condition approval 
        of a school plan on inclusion of 1 or more of the corrective 
        actions specified in paragraph (7)(D)(ii).
            ``(C) A school shall implement the school plan (including a 
        revised plan) expeditiously, but not later than the beginning 
        of the school year following the school year in which the 
        school was identified for school improvement.
            ``(D) The local educational agency, within 45 days after 
        receiving a school plan, shall--
                    ``(i) establish a peer-review process to assist 
                with review of a school plan prepared by a school 
                served by the local educational agency; and
                    ``(ii) promptly review the school plan, work with 
                the school as necessary, and approve the school plan if 
                the plan meets the requirements of this paragraph.
            ``(4) Technical assistance.--(A) For each school identified 
        for school improvement under paragraph (1), the local 
        educational agency serving the school shall provide technical 
        assistance as the school develops and implements the school 
        plan.
            ``(B) Such technical assistance--
                    ``(i) shall include assistance in analyzing data 
                from the assessments required under section 1111(b)(3), 
                and other samples of student work, to identify and 
                address instructional problems including problems, if 
                any, in implementing the parental involvement 
                requirements described in section 1118, the 
                professional development requirements described in 
                section 1119, and the responsibilities of the school 
                and local educational agency under the school plan and 
                solutions;
                    ``(ii) shall include assistance in identifying and 
                implementing instructional strategies and methods that 
                are tied to scientifically based research and that have 
                proven effective in addressing the specific 
                instructional issues that caused the school to be 
                identified for school improvement;
                    ``(iii) shall include assistance in analyzing and 
                revising the school's budget so that the school 
                resources are more effectively allocated for the 
                activities most likely to increase student performance 
                and to remove the school from school improvement 
                status; and
                    ``(iv) may be provided--
                            ``(I) by the local educational agency, 
                        through mechanisms authorized under section 
                        1117; or
                            ``(II) by the State educational agency, an 
                        institution of higher education (in full 
                        compliance with all the reporting provisions of 
                        title II of the Higher Education Act of 1965), 
                        a private not-for-profit organization or for-
                        profit organization, an educational service 
                        agency, or another entity with experience in 
                        helping schools improve performance.
            ``(C) Technical assistance provided under this section by a 
        local educational agency or an entity approved by that agency 
        shall be based on scientifically based research.
            ``(5) Failure to make adequate yearly progress after 
        identification.--In the case of any school served under this 
        part that fails to make adequate yearly progress, as defined by 
        the State under sections 1111(b)(2) (B) and (D), at the end of 
        the first year after the school year for which the school was 
        identified under paragraph (1), the local educational agency 
        serving such school--
                    ``(A) shall provide all students enrolled in the 
                school with the option to transfer to another public 
                school within the local educational agency, including a 
                public charter school, that has not been identified for 
                school improvement under paragraph (1), unless--
                            ``(i) such an option is prohibited by State 
                        law or local law, which includes school board 
                        approved local educational agency policy; or
                            ``(ii) the local educational agency 
                        demonstrates to the satisfaction of the State 
                        educational agency that the local educational 
                        agency lacks the capacity to provide that 
                        option to all students in the school who 
                        request the option, in which case the local 
                        educational agency shall permit as many 
                        students as possible (selected by the agency on 
                        an equitable basis and giving priority to the 
                        lowest achieving students) to make such a 
                        transfer, after giving notice to the parents of 
                        affected children that it is not possible, 
                        consistent with State and local law, to 
                        accommodate the transfer request of every 
                        student;
                    ``(B) may identify the school for, and take, 
                corrective action under paragraph (7); and
                    ``(C) shall continue to provide technical 
                assistance while instituting any corrective action.
            ``(6) Notification to parents.--A local educational agency 
        shall promptly provide (in a format and, to the extent 
        practicable, in a language the parents can understand) the 
        parents of each student in an elementary school or a secondary 
        school identified for school improvement under paragraph (1), 
        for corrective action under paragraph (7), or for 
        reconstitution under paragraph (8)--
                    ``(A) an explanation of what the identification 
                means, and how the school compares in terms of academic 
                performance to other elementary schools or secondary 
                schools served by the State educational agency and the 
                local educational agency involved;
                    ``(B) the reasons for the identification;
                    ``(C) an explanation of what the school is doing to 
                address the problem of low performance;
                    ``(D) an explanation of what the State educational 
                agency or local educational agency is doing to help the 
                school address the performance problem;
                    ``(E) an explanation of how parents described in 
                this paragraph can become involved in addressing the 
                academic issues that caused the school to be 
                identified; and
                    ``(F) when the school is identified for corrective 
                action under paragraph (7) or for reconstitution under 
                paragraph (8), an explanation of the parents' option to 
                transfer their child to another public school (with 
                transportation provided by the agency when required by 
                paragraph (9)) or to obtain supplemental services for 
                the child, in accordance with those paragraphs.
            ``(7) Corrective action.--(A) In this subsection, the term 
        `corrective action' means action, consistent with State and 
        local law, that--
                    ``(i) substantially and directly responds to--
                            ``(I) the consistent academic failure of a 
                        school that caused the local educational agency 
                        to take such action; and
                            ``(II) any underlying staffing, curriculum, 
                        or other problem in the school; and
                    ``(ii) is designed to increase substantially the 
                likelihood that students enrolled in the school 
                identified for corrective action will perform at the 
                State's proficient and advanced levels of performance 
                on the State assessment described in section 
                1111(b)(3).
            ``(B) In order to help students served under this part meet 
        challenging State standards, each local educational agency 
        shall implement a system of corrective action in accordance 
        with subparagraphs (C) through (F) and paragraph (8).
            ``(C) In the case of any school served by the local 
        educational agency under this part that fails to make adequate 
        yearly progress, as defined by the State under sections 
        1111(b)(2) (B) and (D), at the end of the second year after the 
        school year for which the school was identified under paragraph 
        (1), the local educational agency shall--
                    ``(i)(I) provide all students enrolled in the 
                school with the option to transfer to another public 
                school within the local educational agency, including a 
                public charter school, that has not been identified for 
                school improvement under paragraph (1); and
                    ``(II) if all public schools in the local 
                educational agency to which children may transfer are 
                identified under paragraph (1) or this paragraph, the 
                agency shall, to the extent practicable, establish a 
                cooperative agreement with other local educational 
                agencies in the area for the transfer of as many of 
                those children as possible, selected by the agency on 
                an equitable basis;
                    ``(ii) make supplemental educational services 
                available, in accordance with subsection (f), to 
                children who remain in the school;
                    ``(iii) identify the school for corrective action 
                and take at least one of the following corrective 
                actions:
                            ``(I) Make alternative governance 
                        arrangements, such as reopening the school as a 
                        public charter school.
                            ``(II) Replace the relevant school staff.
                            ``(III) Institute and fully implement a new 
                        curriculum, including providing appropriate 
                        professional development for all relevant 
                        staff, that is tied to scientifically based 
                        research and offers substantial promise of 
                        improving educational performance for low-
                        performing students; and
                    ``(iv) continue to provide technical assistance to 
                the school.
            ``(D) A local educational agency may delay, for a period 
        not to exceed one year, implementation of corrective action 
        only if the school's failure to make adequate yearly progress 
        was justified due to exceptional or uncontrollable 
        circumstances, such as a natural disaster or a precipitous and 
        unforeseen decline in the financial resources of the local 
        educational agency or school.
            ``(E) The local educational agency shall publish and 
        disseminate information regarding any corrective action the 
        local educational agency takes under this paragraph at a school 
        to the public through such means as the Internet, the media, 
        and public agencies.
            ``(8) Reconstitution.--(A) If, after one year of corrective 
        action under paragraph (7), a school subject to such corrective 
        action continues to fail to make adequate yearly progress then 
        the local educational agency shall--
                    ``(i) provide all students enrolled in the school 
                with the option to transfer to another public school in 
                accordance with paragraph (7)(C)(i);
                    ``(ii) make supplemental educational services 
                available, in accordance with subsection (f), to 
                children who remain in the school; and
                    ``(iii) prepare a plan and make necessary 
                arrangements to carry out subparagraph (B).
            ``(B)(i) Not later than the beginning of the school year 
        following the year in which the local educational agency 
        implements subparagraph (A), the local educational agency shall 
        implement at least one of the following alternative governance 
        arrangements for the school, consistent with State law:
                    ``(I) Reopening the school as a public charter 
                school.
                    ``(II) Replacing all or most of the school staff.
                    ``(III) Turning the operation of the school over to 
                another entity, such as a private contractor, with a 
                demonstrated record of success.
                    ``(IV) Turning the operation of the school over to 
                the State, if agreed to by the State.
                    ``(V) Any other major restructuring of the school's 
                governance arrangement.
            ``(ii) A rural local agency, as described in section 
        5231(b), may apply to the Secretary for a waiver of the 
        requirements of this subparagraph if the agency submits to the 
        Secretary an alternative plan for making significant changes to 
        improve student performance in the school, such as providing an 
        academically focused after school program for all students, 
        changing school administration, or implementing a research 
        based, proven effective, whole school reform program. The 
        Secretary shall approve or reject an application for a waiver 
        under this subparagraph not later than 30 days after the 
        submission of information required by the Secretary to apply 
        for the waiver. If the Secretary fails to make a determination 
        with respect to the waiver application within such 30 days, the 
        application shall be considered approved by the Secretary.
            ``(C) The local educational agency shall provide prompt 
        notice to teachers and parents whenever subparagraph (A) or (B) 
        applies, shall provide the teachers and parents an adequate 
        opportunity to comment before taking any action under those 
        subparagraphs and to participate in developing any plan under 
        subparagraph (A)(iii).
            ``(9) Transportation.--In any case described in paragraph 
        (7)(C), the local educational agency--
                    ``(A) shall provide, or shall pay for the provision 
                of, transportation for the student to the school the 
                child attends, notwithstanding subsection 
                (f)(1)(C)(ii); and
                    ``(B) may use not more than a total of 15 percent 
                of the local educational agency's allocation under this 
                part for a fiscal year for that transportation or for 
                supplemental services under subsection (f).
            ``(10) Duration of reconstitution.--If any school 
        identified for reconstitution under paragraph (8) makes 
        adequate yearly progress for two consecutive years, the local 
        educational agency need no longer subject the school to 
        corrective action or identify the school as in need of 
        improvement for the succeeding school year.
            ``(11) Special rules.--A local educational agency shall 
        permit a child who transferred to another school under this 
        subsection to remain in that school, and shall continue to 
        provide or provide for transportation for the child to attend 
        that school to the extent required by paragraph (9)(B) until 
        the child leaves that school.
            ``(12) Schools previously identified for school improvement 
        or corrective action.--
                    ``(A) School improvement.--(i) Except as provided 
                in clauses (ii) and (iii), any school that was in 
                school improvement status under this subsection on the 
                day preceding the date of enactment of the Better 
                Education for Students and Teachers Act shall be 
                treated by the local educational agency, at the 
                beginning of the next school year following such day, 
                as a school that is in the first year of school 
                improvement under paragraph (1).
                    ``(ii) Any school that was in school improvement 
                status under this subsection for the two school years 
                preceding the date of enactment of the Better Education 
                for Students and Teachers Act shall be treated by the 
                local educational agency, at the beginning of the next 
                school year following such day, as a school described 
                in paragraph (5).
                    ``(iii) Any school described in clause (ii) that 
                fails to make adequate yearly progress for the first 
                full school year following the date of enactment of the 
                Better Education for Students and Teachers Act shall be 
                subject to paragraph (7)(C) at the beginning of the 
                next school year.
                    ``(iv) Any school described in clause (iii) that 
                fails to make adequate yearly progress for the second 
                full school year following the date of enactment of the 
                Better Education for Students and Teachers Act shall be 
                subject to paragraph (8) at the beginning of the next 
                school year.
                    ``(B) Corrective action.--(i) Any school that was 
                in corrective action status under this subsection on 
                the day preceding the date of enactment of the Better 
                Education for Students and Teachers Act, and that fails 
                to make adequate yearly progress for the school year 
                following such date, shall be subject to paragraph 
                (7)(C) at the beginning of the next school year.
                    ``(ii) Any school described in clause (i) that 
                fails to make adequate yearly progress for the second 
                school year following such date shall be subject to 
                paragraph (8) at the beginning of the next school year.
            ``(13) State educational agency responsibilities.--The 
        State educational agency shall--
                    ``(A) make technical assistance under section 1117 
                available to all schools identified for school 
                improvement and corrective action under this 
                subsection, to the extent possible with funds reserved 
                under section 1003;
                    ``(B) if the State educational agency determines 
                that a local educational agency failed to carry out its 
                responsibilities under this subsection, take such 
                corrective actions as the State educational agency 
                determines appropriate and in compliance with State 
                law;
                    ``(C) for each school in the State that is 
                identified for school improvement or corrective action, 
                notify the Secretary of academic and other factors that 
                were determined by the State educational agency under 
                section 1111(b)(8) as significantly impacting student 
                achievement; and
                    ``(D) if a school in the State is identified for 
                school improvement or corrective action, encourage 
                appropriate State and local agencies and community 
                groups to develop a consensus plan to address any 
                factors that significantly impacted student 
                achievement.
    ``(d) State Review and Local Educational Agency Improvement.--
            ``(1) In general.--A State educational agency shall review 
        annually--
                    ``(A) the progress of each local educational agency 
                receiving funds under this part to determine whether 
                schools receiving assistance under this part are making 
                adequate progress as defined in sections 1111(b)(2) (B) 
                and (D) toward meeting the State's student performance 
                standards and to determine whether each local 
                educational agency is carrying out its responsibilities 
                under section 1116 and section 1117; and
                    ``(B) the effectiveness of the activities carried 
                out under this part by each local educational agency 
                that receives funds under this part and is served by 
                the State educational agency with respect to parental 
                involvement, professional development, and other 
                activities assisted under this part.
            ``(2) Rewards.--In the case of a local educational agency 
        that for 3 consecutive years has met or exceeded the State's 
        definition of adequate progress as defined in sections 
        1111(b)(2) (B) and (D), the State may make institutional and 
        individual rewards of the kinds described for individual 
        schools in paragraph (2) of section 1117(c).
            ``(3) Identification.--(A) A State educational agency shall 
        identify for improvement any local educational agency that for 
        2 consecutive years, is not making adequate progress as defined 
        in sections 1111(b)(2) (B) and (D) in schools served under this 
        part toward meeting the State's student performance standards, 
        except that schools served by the local educational agency that 
        are operating targeted assistance programs may be reviewed on 
        the basis of the progress of only those students served under 
        this part.
            ``(B) Before identifying a local educational agency for 
        improvement under this paragraph, the State educational agency 
        shall provide the local educational agency with an opportunity 
        to review the school-level data, including assessment data, on 
        which such identification is based. If the local educational 
        agency believes that such identification for improvement is in 
        error due to statistical or other substantive reasons, such 
        local educational agency may provide evidence to the State 
        educational agency to support such belief.
            ``(C) Not later than 30 days after a State educational 
        agency makes an initial determination under subparagraph (A), 
        the State educational agency shall make public a final 
        determination regarding the improvement status of the local 
        educational agency.
            ``(4) Local educational agency revisions.--(A) Each local 
        educational agency identified under paragraph (3) shall, not 
        later than 3 months after being so identified, revise and 
        implement a local educational agency plan as described under 
        section 1112. The plan shall--
                    ``(i) include specific State-determined yearly 
                progress requirements in subjects and grades to ensure 
                that all students will make continuous and significant 
                progress towards meeting the goal of all students 
                reaching the proficient level of performance within 10 
                years;
                    ``(ii) address the fundamental teaching and 
                learning needs in the schools of that agency, and the 
                specific academic problems of low-performing students 
                including a determination of why the local educational 
                agency's prior plan failed to bring about increased 
                student achievement and performance;
                    ``(iii) incorporate scientifically based research 
                strategies that strengthen the core academic program in 
                the local educational agency;
                    ``(iv) address the professional development needs 
                of the instructional staff by committing to spend not 
                less than 10 percent of the funds received by the local 
                educational agency under this part during 1 fiscal year 
                for professional development (including funds reserved 
                for professional development under subsection 
                (c)(3)(A)(iii)), which funds shall supplement and not 
                supplant professional development that instructional 
                staff would otherwise receive, and which professional 
                development shall increase the content knowledge of 
                teachers and build the capacity of the teachers to 
                align classroom instruction with challenging content 
                standards and to bring all students to proficient or 
                advanced levels of performance as determined by the 
                State;
                    ``(v) identify specific goals and objectives the 
                local educational agency will undertake for making 
                adequate yearly progress, which goals and objectives 
                shall be consistent with State standards;
                    ``(vi) identify how the local educational agency 
                will provide written notification regarding the 
                identification to parents of students enrolled in 
                elementary schools and secondary schools served by the 
                local educational agency in a format, and to the extent 
                practicable, in a language that the parents can 
                understand;
                    ``(vii) specify the responsibilities of the State 
                educational agency and the local educational agency 
                under the plan, including technical assistance to be 
                provided by the State educational agency under 
                paragraph (5); and
                    ``(viii) include strategies to promote effective 
                parental involvement in the school.
            ``(5) State educational agency responsibility.--(A) For 
        each local educational agency identified under paragraph (3), 
        the State educational agency shall provide technical or other 
        assistance, as authorized under section 1117, to better enable 
        the local educational agency to--
                    ``(i) develop and implement the local educational 
                agency's revised plan; and
                    ``(ii) work with schools needing improvement.
            ``(B) Technical assistance provided under this section by 
        the State educational agency or an entity authorized by such 
        agency shall be supported by effective methods and 
        instructional strategies tied to scientifically based research. 
        Such technical assistance shall address problems, if any, in 
        implementing the parental involvement activities described in 
        section 1118 and the professional development activities 
        described in section 1119.'';
            ``(6) Corrective action.--(A)(i) Except as provided in 
        subparagraph (E), after providing technical assistance pursuant 
        to paragraph (5) and taking other remediation measures, the 
        State educational agency may take corrective action at any time 
        with respect to a local educational agency that has been 
        identified under paragraph (3), but shall take such action, 
        consistent with State and local law, with respect to any local 
        educational agency that continues to fail to make adequate 
        progress at the end of the second year following identification 
        under paragraph (3).
            ``(ii) The State educational agency shall continue to 
        provide technical assistance while implementing any corrective 
        action.
            ``(B) Consistent with State and local law, in the case of a 
        local educational agency subject to corrective action under 
        this paragraph, the State educational agency shall not take 
        less than 1 of the following corrective actions:
                    ``(i) Instituting and fully implementing a new 
                curriculum that is based on State and local standards, 
                including appropriate professional development tied to 
                scientifically based research for all relevant staff 
                that offers substantial promise of improving 
                educational achievement for low-performing students.
                    ``(ii) Restructuring or abolishing the local 
                educational agency.
                    ``(iii) Reconstituting school district personnel.
                    ``(iv) Removal of particular schools from the 
                jurisdiction of the local educational agency and 
                establishment of alternative arrangements for public 
                governance and supervision of such schools.
                    ``(v) Appointment by the State educational agency 
                of a receiver or trustee to administer the affairs of 
                the local educational agency in place of the 
                superintendent and school board.
                    ``(vi) Deferring, reducing, or withholding funds.
            ``(C) Hearing.--Prior to implementing any corrective action 
        under this paragraph, the State educational agency shall 
        provide notice and a hearing to the affected local educational 
        agency, if State law provides for such notice and hearing. The 
        hearing shall take place not later than 45 days following the 
        decision to implement corrective action.
            ``(D) Notification to parents.--The State educational 
        agency shall publish, and disseminate to parents and the 
        public, any corrective action the State educational agency 
        takes under this paragraph through a widely read or distributed 
        medium.
            ``(E) Delay.--A State educational agency may delay, for a 
        period not to exceed one year, implementation of corrective 
        action under this paragraph only 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.
            ``(F) Waivers.--The State educational agency shall review 
        any waivers approved prior to the date of enactment of the 
        Better Education for Students and Teachers Act for a local 
        educational agency designated for improvement or corrective 
        action and shall terminate any waiver approved by the State 
        under the Educational Flexibility Partnership Act of 1999 if 
        the State determines, after notice and an opportunity for a 
        hearing, that the waiver is not helping the local educational 
        agency make yearly progress to meet the objectives and specific 
        goals described in the local educational agency's improvement 
        plan.
            ``(7) Special rules.--If a local educational agency makes 
        adequate progress toward meeting the State's standards for two 
        consecutive years following identification under paragraph (6), 
        the State educational agency need no longer subject the local 
        educational agency to corrective action for the succeeding 
        school year.
    ``(e) Construction.--Nothing in this section shall be construed to 
alter or otherwise affect the rights, remedies, and procedures afforded 
school or school district employees under Federal, State, or local laws 
(including applicable regulations or court orders) or under the terms 
of collective bargaining agreements, memoranda of understanding, or 
other agreements between such employees and their employers.
    ``(f) Supplemental Services.--
            ``(1) In general.--
                    ``(A) Requirement.--In the case of any school 
                described in subsection (c)(7)(C) or (c)(8)(A), the 
                local educational agency serving such school shall, 
                subject to subparagraphs (B) through (E), arrange for 
                the provision of supplemental educational services to 
                children in the school whose parents request those 
                services, from providers approved for that purpose by 
                the State educational agency and selected by the 
                parents.
                    ``(B) Maximum allocation.--The amount that a local 
                educational agency shall make available for 
                supplemental educational services for each child 
                receiving those services under this subsection is equal 
                to the lesser of--
                            ``(i) the amount of the agency's allocation 
                        under subpart 2 of this part, divided by the 
                        number of children from low-income families 
                        enrolled in the agency's schools; or
                            ``(ii) the actual costs of the supplemental 
                        educational services received by the child.
                    ``(C) Financial obligation of lea.--The local 
                educational agency shall enter into agreements with 
                such approved providers to provide services under this 
                subsection to all children whose parents request the 
                services, except that--
                            ``(i) the local educational agency may use 
                        not more than a total of 15 percent of its 
                        allocation under this part for any fiscal year 
                        to pay for services under this subsection or to 
                        provide or provide for transportation under 
                        subsection (c)(9); and
                            ``(ii) the total amount described in clause 
                        (i) is the maximum amount the local educational 
                        agency is required to spend under this part on 
                        those services.
                    ``(D) Insufficient funds.--If the amount of funds 
                described in subparagraph (C) available to provide 
                services under this subsection is insufficient to 
                provide those services to each child whose parents 
                request the services, then the local educational agency 
                shall give priority to providing the services to the 
                lowest-achieving children.
                    ``(E) Prohibition.--A local educational agency 
                shall not, as a result of the application of this 
                paragraph, reduce by more than 15 percent the total 
                amount made available under this part to a school 
                described in subsection (c)(7)(C) or (c)(8)(A).
            ``(2) Additional local educational agency 
        responsibilities.--Each local educational agency subject to 
        this subsection shall--
                    ``(A) provide annual notice to parents (in a format 
                and, to the extent practicable, in a language the 
                parents can understand) of--
                            ``(i) the availability of services under 
                        this subsection;
                            ``(ii) the eligible providers of those 
                        services that are within the school district 
                        served by the agency or whose services are 
                        reasonably available in neighboring school 
                        districts; and
                            ``(iii) a brief description of the 
                        services, qualifications, and demonstrated 
                        effectiveness of each such provider;
                    ``(B) provide annual notice to potential providers 
                of supplemental services in the school district of the 
                agency of the opportunity to provide services under 
                this subsection and of the applicable procedures for 
                obtaining approval from the State educational agency to 
                be a provider of those services;
                    ``(C) if requested, assist parents to choose a 
                provider from the list of approved providers maintained 
                by the State;
                    ``(D) apply fair and equitable procedures for 
                serving students if spaces at eligible providers are 
                not sufficient to serve all students;
                    ``(E) enter into an agreement with each selected 
                provider that includes a statement for each child, 
                developed with the parents of the child and the 
                provider, of specific performance goals for the 
                student, how the student's progress will be measured, 
                and how the parents and the child's teachers will be 
                regularly informed of the child's progress and that, in 
                the case of a child with disabilities, is consistent 
                with the child's individualized education program under 
                section 614(d) of the Individuals with Disabilities 
                Education Act; and
                    ``(F) not disclose to the public the identity of 
                any child eligible for, or receiving, supplemental 
                services under this subsection without the written 
                permission of the parents of the child.
            ``(3) Additional state educational agency 
        responsibilities.--Each State educational agency shall, in 
        consultation with local educational agencies, parents, 
        teachers, and other interested members of the public--
                    ``(A) promote maximum participation under this 
                subsection by service providers to ensure, to the 
                extent practicable, that parents have as many choices 
                of those providers as possible;
                    ``(B) develop and apply objective criteria to 
                potential service providers that are based on 
                demonstrated effectiveness in increasing the academic 
                proficiency of students in subjects relevant to meeting 
                the State content and student performance standards 
                adopted under section 1111(b)(1);
                    ``(C) maintain an updated list of approved service 
                providers in school districts served by local 
                educational agencies subject to this subsection, from 
                which parents may select;
                    ``(D) develop and implement standards and 
                techniques for monitoring, and publicly reporting on, 
                the quality and effectiveness of the services offered 
                by service providers, and for withdrawing approval from 
                providers that fail, for two consecutive years, to 
                contribute to increasing the academic proficiency of 
                students served under this subsection as described in 
                subparagraph (B); and
                    ``(E) ensure that all approved providers meet 
                applicable health and safety codes.
            ``(4) Waiver.--A State educational agency may waive the 
        requirements of this subsection for a local educational agency 
        that demonstrates to the State educational agency's 
        satisfaction that its list of approved service providers does 
        not include any providers whose services are reasonably 
        available geographically to children in that local educational 
        agency.
            ``(5) Special rule.--If State law prohibits a State 
        educational agency from carrying out any of its 
        responsibilities under this subsection, each local educational 
        agency in the State shall carry out those prohibited 
        responsibilities with respect to those who provide, or seek 
        approval to provide, services to students who attend schools 
        served by the local educational agency.
            ``(6) Definition.--In this subsection, the term 
        `supplemental educational services' means tutoring and other 
        supplemental academic enrichment services that--
                    ``(A) are of high quality, research-based, focused 
                on academic content, and directed exclusively at 
                raising student proficiency in meeting the State's 
                challenging content and student performance standards; 
                and
                    ``(B) are provided outside of regular school hours.
    ``(g) Other Agencies.--If a school is identified for school 
improvement, the Secretary may notify other relevant Federal agencies 
regarding the academic and other factors determined by the State 
educational agency under section 1111(b)(8) as significantly impacting 
student performance.''.

SEC. 118. ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

    Section 1117 (20 U.S.C. 6318) is amended--
            (1) in subsection (a), by adding at the end the following:
            ``(3) Priorities.--In carrying out this section, a State 
        educational agency shall--
                    ``(A) first, provide support and assistance to 
                local educational agencies subject to corrective action 
                described in section 1116 and assist schools, in 
                accordance with section 1116, for which a local 
                educational agency has failed to carry out its 
                responsibilities under section 1116;
                    ``(B) second, provide support and assistance to 
                other local educational agencies and schools identified 
                as in need of improvement under section 1116; and
                    ``(C) third, provide support and assistance to 
                other local educational agencies and schools 
                participating under this part that need support and 
                assistance in order to achieve the purpose of this 
                part.'';
            (2) in subsection (b), by striking ``the comprehensive 
        regional technical assistance centers under part A of title 
        XIII and'' and inserting ``comprehensive regional technical 
        assistance centers, and''; and
            (3) in subsection (c)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) Approaches.--
                    ``(A) In general.--In order to achieve the purpose 
                described in subsection (a), each such system shall 
                give priority to using funds made available to carry 
                out this section--
                            ``(i) to establish school support teams for 
                        assignment to and working in schools in the 
                        State that are described in subsection 
                        (a)(3)(A); and
                            ``(ii) to provide such support as the State 
                        educational agency determines to be necessary 
                        and available to assure the effectiveness of 
                        such teams.
                    ``(B) Composition.--Each school support team shall 
                be composed of persons knowledgeable about successful 
                schoolwide projects, school reform, and improving 
                educational opportunities for low-achieving students, 
                including--
                            ``(i) teachers;
                            ``(ii) pupil services personnel;
                            ``(iii) parents;
                            ``(iv) distinguished teachers or 
                        principals;
                            ``(v) representatives of institutions of 
                        higher education;
                            ``(vi) regional educational laboratories or 
                        research centers;
                            ``(vii) outside consultant groups; or
                            ``(viii) other individuals as the State 
                        educational agency, in consultation with the 
                        local educational agency, may determine 
                        appropriate.
                    ``(C) Functions.--Each school support team assigned 
                to a school under this section shall--
                            ``(i) review and analyze all facets of the 
                        school's operation, including the design and 
                        operation of the instructional program, and 
                        assist the school in developing recommendations 
                        for improving student performances in that 
                        school;
                            ``(ii) collaborate, with school staff and 
                        the local educational agency serving the 
                        school, in the design, implementation, and 
                        monitoring of a plan that, if fully 
                        implemented, can reasonably be expected to 
                        improve student performance and help the school 
                        meet its goals for improvement, including 
                        adequate yearly progress under section 
                        1111(b)(2)(B);
                            ``(iii) evaluate, at least semiannually, 
                        the effectiveness of school personnel assigned 
                        to the school, including identifying 
                        outstanding teachers and principals, and make 
                        findings and recommendations (including the 
                        need for additional resources, professional 
                        development, or compensation) to the school, 
                        the local educational agency, and, where 
                        appropriate, the State educational agency; and
                            ``(iv) make additional recommendations as 
                        the school implements the plan described in 
                        clause (ii) to the local educational agency and 
                        the State educational agency concerning 
                        additional assistance and resources that are 
                        needed by the school or the school support 
                        team.
                    ``(D) Continuation of assistance.--After 1 school 
                year, the school support team may recommend that the 
                school support team continue to provide assistance to 
                the school, or that the local educational agency or the 
                State educational agency, as appropriate, take 
                alternative actions with regard to the school.'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking ``part 
                        which'' and all that follows through the period 
                        and inserting ``part.''; and
                            (ii) in subparagraph (C)--
                                    (I) by striking ``and may'' and 
                                inserting ``(and may''; and
                                    (II) by striking ``exemplary 
                                performance'' and inserting ``exemplary 
                                performance)''; and
                    (C) in paragraph (3)--
                            (i) in the paragraph heading, by striking 
                        ``Educators'' and inserting ``Teachers and 
                        Principals'';
                            (ii) by amending subparagraph (A) to read 
                        as follows:
                    ``(A) The State may also recognize and provide 
                financial awards to teachers or principals in a school 
                described in paragraph (2) whose students consistently 
                make significant gains in academic achievement.'';
                            (iii) in subparagraph (B), by striking 
                        ``educators'' and inserting ``teachers or 
                        principals''; and
                            (iv) by striking subparagraph (C).

SEC. 118A. GRANTS FOR ENHANCED ASSESSMENT INSTRUMENTS.

    Part A of title I (20 U.S.C. 6311 et seq.) is amended by inserting 
after section 1117 (20 U.S.C. 6318) the following:

``SEC. 1117A. GRANTS FOR ENHANCED ASSESSMENT INSTRUMENTS.

    ``(a) Purpose.--The purpose of this section is to--
            ``(1) enable States (or consortia or States) and local 
        educational agencies (or consortia of local educational 
        agencies) to collaborate with institutions of higher education, 
        other research institutions, and other organizations to improve 
        the quality and fairness of State assessment systems beyond the 
        basic requirements for assessment systems described in section 
        1111(b)(3);
            ``(2) characterize student achievement in terms of multiple 
        aspects of proficiency;
            ``(3) chart student progress over time;
            ``(4) closely track curriculum and instruction; and
            ``(5) monitor and improve judgments based on informed 
        evaluations of student performance.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $200,000,000 for fiscal year 
2002 and such sums as may be necessary for each of the 6 succeeding 
fiscal years.
    ``(c) Grants Authorized.--The Secretary is authorized to award 
grants to States and local educational agencies to enable the States 
and local educational agencies to carry out the purpose described in 
subsection (a).
    ``(d) Application.--In order to receive a grant under this section 
for any fiscal year, a State or local educational agency shall submit 
an application to the Secretary at such time and containing such 
information as the Secretary may require.
    ``(e) Authorized Use of Funds.--A State or local educational agency 
having an application approved under subsection (d) shall use the grant 
funds received under this section to collaborate with institutions of 
higher education or other research institutions, experts on curriculum, 
teachers, administrators, parents, and assessment developers for the 
purpose of developing enhanced assessments that are aligned with 
standards and curriculum, are valid and reliable for the purposes for 
which the assessments are to be used, are grade-appropriate, include 
multiple measures of student achievement from multiple sources, and 
otherwise meet the requirements of section 1111(b)(3). Such assessments 
shall strive to better measure higher order thinking skills, 
understanding, analytical ability, and learning over time through the 
development of assessment tools that include techniques such as 
performance, curriculum-, and technology-based assessments.
    ``(f) Annual Reports.--Each State or local educational agency 
receiving a grant under this section shall report to the Secretary at 
the end of the fiscal year for which the State or local educational 
agency received the grant on the progress of the State or local 
educational agency in improving the quality and fairness of assessments 
with respect to the purpose described in subsection (a).''.

SEC. 119. PARENTAL INVOLVEMENT.

    (a) In General.--Section 1118 (20 U.S.C. 6319) is amended--
            (1) in subsection (a)(2)(B), by inserting ``activities to 
        improve student achievement and student and school 
        performance'' after ``involvement'';
            (2) in subsection (b)(1)--
                    (A) in the first sentence, by inserting ``(in a 
                language parents can understand)'' after 
                ``distribute''; and
                    (B) in the second sentence, insert ``shall be made 
                available to the local community and'' after ``Such 
                policy'';
            (3) in subsection (e)--
                    (A) in paragraph (1), by striking ``participating 
                parents in such areas as understanding the National 
                Education Goals,'' and inserting ``parents of children 
                served by the school or local educational agency, as 
                appropriate, in understanding'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking 
                        ``and'' after the semicolon;
                            (ii) in subparagraph (B), by inserting 
                        ``and'' after the semicolon; and
                            (iii) by adding at the end the following:
                    ``(C) using technology, as appropriate, to foster 
                parental involvement;'';
                    (C) in paragraph (14), by striking ``and'' after 
                the semicolon;
                    (D) by amending paragraph (15) to read as follows:
            ``(15) may establish a school district wide parent advisory 
        council to advise the school and local educational agency on 
        all matters related to parental involvement in programs 
        supported under this section; and''; and
                    (E) by adding at the end the following:
            ``(16) shall provide such other reasonable support for 
        parental involvement activities under this section as parents 
        may request, which may include emerging technologies.'';
            (4) in subsection (f), by striking ``or with'' and 
        inserting ``, parents of migratory children, or parents with''; 
        and
            (5) by striking subsection (g) and inserting the following:
    ``(g) Information From Parental Information and Resource Centers.--
In a State where a parental information and resource center is 
established to provide training, information, and support to parents 
and individuals who work with local parents, local educational 
agencies, and schools receiving assistance under this part, each school 
or local educational agency that receives assistance under this part 
and is located in the State, shall assist parents and parental 
organizations by informing such parents and organizations of the 
existence and purpose of such centers, providing such parents and 
organizations with a description of the services and programs provided 
by such centers, advising parents on how to use such centers, and 
helping parents to contact such centers.
    ``(h) Review.--The State educational agency shall review the local 
educational agency's parental involvement policies and practices to 
determine if the policies and practices meet the requirements of this 
section.''.
    (b) Grants.--Section 1118(a)(3) (20 U.S.C. 6319(a)(3)) is amended 
by adding at the end the following:
            ``(C)(i)(I) The Secretary is authorized to award grants to 
        local educational agencies to enable the local educational 
        agencies to supplement the implementation of the provisions of 
        this section and to allow for the expansion of other recognized 
        and proven initiatives and policies to improve student 
        achievement through the involvement of parents.
            ``(II) Each local educational agency desiring a grant under 
        this subparagraph shall submit to the Secretary an application 
        at such time, in such manner, and containing such information 
        as the Secretary may require.
            ``(ii) Each application submitted under clause (i)(II) 
        shall describe the activities to be undertaken using funds 
        received under this subparagraph, shall set forth the process 
        by which the local educational agency will annually evaluate 
        the effectiveness of the agency's activities in improving 
        student achievement and increasing parental involvement shall 
        include an assurance that the local educational agency will 
        notify parents of the option to transfer their child to another 
        public school under section 1116(c)(7) or to obtain 
        supplemental services for their child under section 1116(c)(8), 
        in accordance with those sections.
            ``(iii) Each grant under this subparagraph shall be awarded 
        for a 5-year period.
            ``(iv) The Secretary shall conduct a review of the 
        activities carried out by each local educational agency using 
        funds received under this subparagraph to determine whether the 
        local educational agency demonstrates improvement in student 
        achievement and an increase in parental involvement.
            ``(v) The Secretary shall terminate grants to a local 
        educational agency under this subparagraph after the fourth 
        year if the Secretary determines that the evaluations conducted 
        by such agency and the reviews conducted by the Secretary show 
        no improvement in the local educational agency's student 
        achievement and no increase in such agency's parental 
        involvement.
            ``(vi) There are authorized to be appropriated to carry out 
        this subparagraph $100,000,000 for fiscal year 2002, and such 
        sums as may be necessary for each subsequent fiscal year.''.

SEC. 120. PROFESSIONAL DEVELOPMENT.

    Section 1119 (20 U.S.C. 6320) is amended--
            (1) in subsection (b)(1)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) support professional development activities 
                that give teachers, principals, administrators, 
                paraprofessionals, pupil services personnel, and 
                parents the knowledge and skills to provide students 
                with the opportunity to meet challenging State or local 
                content standards and student performance standards;'';
                    (B) by redesignating subparagraphs (B) through (E) 
                as subparagraphs (D) through (G), respectively;
                    (C) by inserting after subparagraph (A) the 
                following:
                    ``(B) advance teacher understanding of effective 
                instructional strategies, based on research for 
                improving student achievement, at a minimum in reading 
                or language arts and mathematics;
                    ``(C) be of sufficient intensity and duration (not 
                to include 1-day or short-term workshops and 
                conferences) to have a positive and lasting impact on 
                the teacher's performance in the classroom, except that 
                this subparagraph shall not apply to an activity if 
                such activity is 1 component of a long-term 
                comprehensive professional development plan established 
                by the teacher and the teacher's supervisor based upon 
                an assessment of the needs of the teacher, the needs of 
                students, and the needs of the local educational 
                agency;'';
                    (D) in subparagraph (E) (as so redesignated), by 
                striking ``title III of the Goals 2000: Educate America 
                Act,'';
                    (E) in subparagraph (F) (as so redesignated), by 
                striking ``and'' after the semicolon;
                    (F) in subparagraph (G) (as so redesignated), by 
                striking the period and inserting a semicolon; and
                    (G) by adding at the end the following:
                    ``(H) to the extent appropriate, provide training 
                for teachers in the use of technology and the 
                applications of technology that are effectively used--
                            ``(i) in the classroom to improve teaching 
                        and learning in the curriculum; and
                            ``(ii) in academic content areas in which 
                        the teachers provide instruction;
                    ``(I) be regularly evaluated for their impact on 
                increased teacher effectiveness and improved student 
                performance and achievement, with the findings of such 
                evaluations used to improve the quality of professional 
                development; and
                    ``(J) provide assistance to teachers for the 
                purpose of meeting certification, licensing, or other 
                requirements needed to become highly qualified as 
                defined in section 2102(4).'';
            (2) in subsection (g), by striking ``title III of the Goals 
        2000: Educate America Act,'' and inserting ``other Acts''; and
            (3) by adding at the end the following:
    ``(j) Requirement.--Each local educational agency that receives 
funds under this part and serves a school in which 50 percent or more 
of the children are from low income families shall use not less than 5 
percent of the funds for each of fiscal years 2002 and fiscal year 
2003, and not less than 10 percent of the funds for each subsequent 
fiscal year, for professional development activities to ensure that 
teachers who are not highly qualified become highly qualified within 4 
years.''.

SEC. 120A. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

    (a) Amendments.--Section 1120 (20 U.S.C. 6321) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by inserting ``that address 
                their needs, and shall ensure that teachers and 
                families of such children participate, on an equitable 
                basis, in services and activities under sections 1118 
                and 1119'' before the period;
                    (B) in paragraph (3), by inserting ``and shall be 
                provided in a timely manner'' before the period; and
                    (C) in paragraph (4), insert ``as determined by the 
                local educational agency each year or every 2 years'' 
                before the period;
            (2) in subsection (b)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (C), by striking ``and 
                        where'' and inserting ``, where, and by whom'';
                            (ii) by amending subparagraph (D) to read 
                        as follows:
                    ``(D) how the services will be assessed and how the 
                results of that assessment will be used to improve 
                those services;'';
                            (iii) in subparagraph (E), by striking the 
                        period and inserting ``; and''; and
                            (iv) by adding at the end the following:
                    ``(F) how and when the local educational agency 
                will make decisions about the delivery of services to 
                eligible private school children, including a thorough 
                consideration and analysis of the views of private 
                school officials regarding the provision of contract 
                services through potential third party providers, and 
                if the local educational agency disagrees with the 
                views of the private school officials on such provision 
                of services, the local educational agency shall provide 
                in writing to such private school officials an analysis 
                of the reasons why the local educational agency has 
                chosen not to so provide such services.''; and
                    (B) by adding at the end the following:
            ``(4) Consultation.--Each local educational agency shall 
        provide to the State educational agency, and maintain in the 
        local educational agency's records, a written affirmation 
        signed by officials of each participating private school that 
        the consultation required by this section has occurred. If a 
        private school declines in writing to have eligible children in 
        the private school participate in services provided under this 
        section, the local educational agency is not required to 
        further consult with the private school officials or to 
        document the local educational agency's consultation with the 
        private school officials until the private school officials 
        request in writing such consultation. The local educational 
        agency shall inform the private school each year of the 
        opportunity for eligible children to participate in services 
        provided under this section.
            ``(5) Compliance.--A private school official shall have the 
        right to appeal to the State educational agency the decision of 
        a local educational agency as to whether consultation provided 
        for in this section was meaningful and timely, and whether due 
        consideration was given to the views of the private school 
        official. If the private school official wishes to appeal the 
        decision, the basis of the claim of noncompliance with this 
        section by the local educational agencies shall be provided to 
        the State educational agency, and the local educational agency 
        shall forward the appropriate documentation to the State 
        educational agency.'';
            (3) by redesignating subsections (c), (d), and (e) as 
        subsections (d), (e), and (f), respectively; and
            (4) by inserting after subsection (b) the following:
    ``(c) Allocation for Equitable Service to Private School 
Students.--
            ``(1) Calculation.--A local educational agency shall have 
        the final authority, consistent with this section, to calculate 
        the number of private school children, ages 5 through 17, who 
        are low-income by--
                    ``(A) using the same measure of low-income used to 
                count public school children;
                    ``(B) using the results of a survey that, to the 
                extent possible, protects the identity of families of 
                private school students, and allowing such survey 
                results to be extrapolated if complete actual data are 
                unavailable; or
                    ``(C) applying the low-income percentage of each 
                participating public school attendance area, determined 
                pursuant to this section, to the number of private 
                school children who reside in that school attendance 
                area.
            ``(2) Complaint process.--Any dispute regarding low-income 
        data for private school students shall be subject to the 
        complaint process authorized in section 8.'';
            (5) in subsection (e) (as so redesignated),
                    (A) in paragraph (2), by striking ``14505 and 
                14506'' and inserting ``8 and 9'';
                    (B) by redesignating paragraphs (1) and (2) (as so 
                amended) as subparagraphs (A) and (B), respectively;
                    (C) by striking ``If a'' and inserting the 
                following:
            ``(1)  In general.--If a''; and
                    (D) by adding at the end the following:
            ``(2) Determination.--In making the determination under 
        paragraph (1), the Secretary shall consider 1 or more factors, 
        including the quality, size, scope, or location of the program, 
        or the opportunity of eligible children to participate in the 
        program.''; and
            (6) by repealing subsection (f) (as so redesignated).
    (b) Effective Date.--The amendment made by subsection (a)(4) shall 
take effect on September 30, 2003.
    (c) Conforming Amendment.--Section 1120A(a) (20 U.S.C. 6322(a)) is 
amended by striking ``14501 of this Act'' and inserting ``4''.

SEC. 120B. EARLY CHILDHOOD EDUCATION.

    Section 1120B (20 U.S.C. 6321) is amended--
            (1) by amending the section heading to read as follows:

``SEC. 1120B. COORDINATION REQUIREMENTS; EARLY CHILDHOOD EDUCATION 
              SERVICES.'';

            (2) in subsection (c), by striking ``Head Start Act 
        Amendments of 1994'' and inserting ``Head Start Amendments of 
        1998''; and
            (3) by adding at the end the following:
    ``(d) Early Childhood Services.--A local educational agency may use 
funds received under this part to provide preschool services--
            ``(1) directly to eligible preschool children in all or 
        part of its school district;
            ``(2) through any school participating in the local 
        educational agency's program under this part; or
            ``(3) through a contract with a local Head Start agency, an 
        eligible entity operating an Even Start program, a State-funded 
        preschool program, or a comparable public early childhood 
        development program.
    ``(e) Early Childhood Education Programs.--Early childhood 
education programs operated with funds provided under this part may be 
operated and funded jointly with Even Start programs under part B of 
this title, Head Start programs, or State-funded preschool programs. 
Early childhood education programs funded under this part shall--
            ``(1) focus on the developmental needs of participating 
        children, including their social, cognitive, and language-
        development needs, and use scientifically based research 
        approaches that build on competencies that lead to school 
        success, particularly in language and literacy development and 
        in reading;
            ``(2) teach children to understand and use language in 
        order to communicate for various purposes;
            ``(3) enable children to develop and demonstrate an 
        appreciation of books; and
            ``(4) in the case of children with limited English 
        proficiency, enable the children to progress toward acquisition 
        of the English language.''.

SEC. 120C. LIMITATIONS ON FUNDS.

    Subpart 1 of part A of title I (20 U.S.C. 6311 et seq.) is amended 
by inserting after section 1120B (20 U.S.C. 6323) the following:

``SEC. 1120C. LIMITATION ON FUNDS.

    ``A local educational agency may not use funds received under this 
subpart for--
            ``(1) purchase or lease of privately owned facilities;
            ``(2) purchase or provision of facilities maintenance, 
        gardening, landscaping, or janitorial services, or the payment 
        of utility costs;
            ``(3) the construction of facilities;
            ``(4) the acquisition of real property;
            ``(5) the payment of travel and attendance costs at 
        conferences or other meetings other than travel and attendance 
        necessary for professional development; or
            ``(6) the purchase or lease of vehicles.''.

SEC. 120D. ALLOCATIONS.

    Subpart 2 of part A of title I (20 U.S.C. 6331 et seq.) is amended 
to read as follows:

                        ``Subpart 2--Allocations

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

    ``(a) Reservation of Funds.--From the amount appropriated for any 
fiscal year under section 1002(a), the Secretary shall reserve a total 
of 1 percent to provide assistance to--
            ``(1) the outlying areas on the basis of their respective 
        need for such assistance according to such criteria as the 
        Secretary determines will best carry out the purpose of this 
        part; and
            ``(2) the Secretary of the Interior in the amount necessary 
        to make payments pursuant to subsection (c).
    ``(b) Assistance to the Outlying Areas.--
            ``(1) In general.--From amounts made available under 
        subsection (a)(1) in each fiscal year the Secretary shall make 
        grants to local educational agencies in the outlying areas.
            ``(2) Competitive grants.--
                    ``(A) In general.--For fiscal year 2002 and each of 
                the 6 succeeding fiscal years, the Secretary shall 
                reserve $5,000,000 from the amounts made available 
                under subsection (a)(1) to award grants, on a 
                competitive basis, to local educational agencies in the 
                Freely Associated States. The Secretary shall award 
                such grants taking into consideration the 
                recommendations of the Pacific Region Educational 
                Laboratory which shall conduct a competition for such 
                grants.
                    ``(B) Uses.--Except as provided in subparagraph 
                (C), grant funds awarded under this paragraph only may 
                be used--
                            ``(i) for programs described in this Act, 
                        including teacher training, curriculum 
                        development, instructional materials, or 
                        general school improvement and reform; and
                            ``(ii) to provide direct educational 
                        services.
                    ``(C) Administrative costs.--The Secretary may 
                provide 5 percent of the amount made available for 
                grants under this paragraph to the Pacific Region 
                Educational Laboratory to pay the administrative costs 
                of the Pacific Region Educational Laboratory regarding 
                activities assisted under this paragraph.
    ``(c) Allotment to the Secretary of the Interior.--
            ``(1) In general.--The amount reserved for payments to the 
        Secretary of the Interior under subsection (a)(2) for any 
        fiscal year shall be, as determined pursuant to criteria 
        established by the Secretary, the amount necessary to meet the 
        special educational needs of--
                    ``(A) Indian children on reservations served by 
                elementary schools and secondary schools for Indian 
                children operated or supported by the Department of the 
                Interior; and
                    ``(B) out-of-State Indian children in elementary 
                schools and secondary schools in local educational 
                agencies under special contracts with the Department of 
                the Interior.
            ``(2) Payments.--From the amount reserved for payments to 
        the Secretary of the Interior under subsection (a)(2), the 
        Secretary of the Interior shall make payments to local 
        educational agencies, upon such terms as the Secretary 
        determines will best carry out the purposes of this part, with 
        respect to out-of-State Indian children described in paragraph 
        (1)(B). The amount of such payment may not exceed, for each 
        such child, the greater of--
                    ``(A) 40 percent of the average per-pupil 
                expenditure in the State in which the agency is 
                located; or
                    ``(B) 48 percent of such expenditure in the United 
                States.

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

    ``(a) In General.--For each of the fiscal years 2002 through 2008--
            ``(1) the amount appropriated to carry out this part that 
        is less than or equal to the amount appropriated to carry out 
        section 1124 for fiscal year 2001, shall be allocated in 
        accordance with section 1124;
            ``(2) the amount appropriated to carry out this part that 
        is not used under paragraph (1) that equals the amount 
        appropriated to carry out section 1124A for fiscal year 2001, 
        shall be allocated in accordance with section 1124A; and
            ``(3) any amount appropriated to carry out this part for 
        the fiscal year for which the determination is made that is not 
        used to carry out paragraphs (1) and (2) shall be allocated in 
        accordance with section 1125.
    ``(b) Adjustments Where Necessitated by Appropriations.--
            ``(1) In general.--If the sums made available under this 
        part for any fiscal year are insufficient to pay the full 
        amounts that all local educational agencies in States are 
        eligible to receive under sections 1124, 1124A, and 1125 for 
        such year, the Secretary shall ratably reduce the allocations 
        to such local educational agencies, subject to subsections (c) 
        and (d).
            ``(2) Additional funds.--If additional funds become 
        available for making payments under sections 1124, 1124A, and 
        1125 for such fiscal year, allocations that were reduced under 
        paragraph (1) shall be increased on the same basis as the 
        allocations were reduced.
    ``(c) Hold-Harmless Amounts.--
            ``(1) In general.--For each fiscal year the amount made 
        available to each local educational agency under each of 
        sections 1124, 1124A, and 1125 shall be not less than:
                    ``(A) In general.--Notwithstanding any other 
                provision of this Act, the amount made available for 
                each local educational agency under sections 1124 and 
                1124A for the fiscal year shall not be less than the 
                greater of--
                            ``(i) 100 percent of the amount the local 
                        educational agency received for fiscal year 
                        2001 under sections 1124 and 1124A, 
                        respectively; or
                            ``(ii) 100 percent of the amount calculated 
                        for the local educational agency for the fiscal 
                        year under sections 1124 and 1124A, 
                        respectively, determined without applying the 
                        hold harmless provisions of this subparagraph.
                    ``(B) Applicability.--Notwithstanding any other 
                provision of law, the Secretary shall not take into 
                consideration the hold harmless provisions of this 
                subsection for any fiscal year for purposes of 
                calculating State or local allocations for the fiscal 
                year under any program administered by the Secretary 
                other than a program authorized under this part.
                    ``(C) Population Updates.--
                            ``(i) In general.--Notwithstanding 
                        paragraph (4), in fiscal year 2001 and each 
                        subsequent year, the Secretary shall use 
                        updated data, for purposes of carrying out 
                        section 1124, on the number of children, aged 5 
                        to 17, inclusive, from families below the 
                        poverty level for counties or local educational 
                        agencies, published by the Department of 
                        Commerce, unless the Secretary and the 
                        Secretary of Commerce determine that use of the 
                        updated population data would be inappropriate 
                        or unreliable.
                            ``(ii) Inappropriate or unreliable data.--
                        If the Secretary and the Secretary of Commerce 
                        determine that some or all of the data referred 
                        to in this subparagraph are inappropriate or 
                        unreliable, the Secretary and the Secretary of 
                        Commerce shall--
                                    ``(I) publicly disclose their 
                                reasons;
                                    ``(II) provide an opportunity for 
                                States to submit updated data on the 
                                number of children described in clause 
                                (i); and
                                    ``(III) review the data and, if the 
                                data are appropriate and reliable, use 
                                the data, for the purposes of section 
                                1124, to determine the number of 
                                children described in clause (i).
                            ``(iii) Criteria of poverty.--In 
                        determining the families that 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, as the criteria have been updated by 
                        increases in the Consumer Price Index for All 
                        Urban Consumers, published by the Bureau of 
                        Labor Statistics.
                            ``(iv) Authorization of appropriations.--
                        There are authorized to be appropriated to the 
                        Department of Commerce for each fiscal year 
                        such sums as may be necessary to update the 
                        data described in clause (i).
            ``(2) Special rules.--If sufficient funds are appropriated, 
        the hold-harmless amounts described in paragraph (1) shall be 
        paid to all local educational agencies that received grants 
        under section 1124, 1124A, or 1125 for the preceding fiscal 
        year, regardless of whether the local educational agency meets 
        the minimum eligibility criteria provided in section 1124(b), 
        1124A(a)(1)(A), or 1125(a), respectively, except that a local 
        educational agency that does not meet such minimum eligibility 
        criteria for 5 consecutive years shall no longer be eligible to 
        receive a hold-harmless amount under this subsection.
            ``(3) County calculation basis.--For any fiscal year for 
        which the Secretary calculates grants on the basis of 
        population data for counties, the Secretary shall apply the 
        hold-homeless percentages in paragraphs (1) and (2) to 
        counties, and if the Secretary's allocation for a county is not 
        sufficient to meet the hold-harmless requirements of this 
        subsection for every local educational agency within that 
        county, then the State educational agency shall reallocate 
        funds proportionately from all other local educational agencies 
        in the State that receive funds for the fiscal year in excess 
        of the hold-harmless amounts specified in this paragraph.
    ``(d) Ratable Reductions.--
            ``(1) In general.--If the sums made available under this 
        part for any fiscal year are insufficient to pay the full 
        amounts that all States are eligible to receive under 
        subsection (c) for such year, the Secretary shall ratably 
        reduce such amounts for such year.
            ``(2) Additional funds.--If additional funds become 
        available for making payments under subsection (c) for such 
        fiscal year, amounts that were reduced under paragraph (1) 
        shall be increased on the same basis as such amounts were 
        reduced.

``SEC. 1123. DEFINITIONS.

    ``In this subpart:
            ``(1) Freely associated states.--The term `Freely 
        Associated States' means the Republic of the Marshall Islands, 
        the Federated States of Micronesia, and the Republic of Palau.
            ``(2) Outlying areas.--The term `outlying areas' means the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
            ``(3) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

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

    ``(a) Amount of Grants.--
            ``(1) Grants for local educational agencies and puerto 
        rico.--Except as provided in paragraph (4) and in section 1126, 
        the grant that a local educational agency is eligible to 
        receive under this section for a fiscal year is the amount 
        determined by multiplying--
                    ``(A) the number of children counted under 
                subsection (c); and
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State, except that the amount 
                determined under this subparagraph shall not be less 
                than 32 percent, and not more than 48 percent, of the 
                average per-pupil expenditure in the United States.
            ``(2) Calculation of grants.--
                    ``(A) Allocations to local educational agencies.--
                The Secretary shall calculate grants under this section 
                on the basis of the number of children counted under 
                subsection (c) for local educational agencies, unless 
                the Secretary and the Secretary of Commerce determine 
                that some or all of those data are unreliable or that 
                their use would be otherwise inappropriate, in which 
                case--
                            ``(i) the Secretary and the Secretary of 
                        Commerce shall publicly disclose the reasons 
                        for their determination in detail; and
                            ``(ii) paragraph (3) shall apply.
                    ``(B) Allocations to large and small local 
                educational agencies.--
                            ``(i) Large local educational agencies.--In 
                        the case of an allocation under this section to 
                        a large local educational agency, the amount of 
                        the grant under this section for the large 
                        local educational agency shall be the amount 
                        determined under paragraph (1).
                            ``(ii) Small local educational agencies.--
                                    ``(I) In general.--In the case of 
                                an allocation under this section to a 
                                small local educational agency the 
                                State educational agency may--
                                            ``(aa) distribute grants 
                                        under this section in amounts 
                                        determined by the Secretary 
                                        under paragraph (1); or
                                            ``(bb) use an alternative 
                                        method approved by the 
                                        Secretary to distribute the 
                                        portion of the State's total 
                                        grants under this section that 
                                        is based on those small local 
                                        educational agencies.
                                    ``(II) Alternative method.--An 
                                alternative method under subclause 
                                (I)(bb) shall be based on population 
                                data that the State educational agency 
                                determines best reflect the current 
                                distribution of children in poor 
                                families among the State's small local 
                                educational agencies that meet the 
                                minimum number of children to qualify 
                                described in subsection (b).
                                    ``(III) Appeal.--If a small local 
                                educational agency is dissatisfied with 
                                the determination of the amount of its 
                                grant by the State educational agency 
                                under subclause (I)(bb), the small 
                                local educational agency may appeal the 
                                determination to the Secretary, who 
                                shall respond within 45 days of 
                                receiving the appeal.
                            ``(iii) Definitions.--In this 
                        subparagraph--
                                    ``(I) the term `large local 
                                educational agency' means a local 
                                educational agency serving a school 
                                district with a total population of 
                                20,000 or more; and
                                    ``(II) the term `small local 
                                educational agency' means a local 
                                educational agency serving a school 
                                district with a total population of 
                                less than 20,000.
            ``(3) Allocations to counties.--
                    ``(A) In general.--For any fiscal year to which 
                this paragraph applies, the Secretary shall calculate 
                grants under this section on the basis of the number of 
                children counted under section 1124(c) for counties, 
                and State educational agencies shall allocate county 
                amounts to local educational agencies, in accordance 
                with regulations promulgated by the Secretary.
                    ``(B) Application.--In any State in which a large 
                number of local educational agencies overlap county 
                boundaries, or for which the State believes the State 
                has data that would better target funds than allocating 
                the funds by county, the State educational agency may 
                apply to the Secretary for authority to make the 
                allocations under this part for a particular fiscal 
                year directly to local educational agencies without 
                regard to counties.
                    ``(C) Allocations to local educational agencies.--
                If the Secretary approves its application under 
                subparagraph (B), the State educational agency shall 
                provide the Secretary an assurance that the allocations 
                will be made--
                            ``(i) using precisely the same factors for 
                        determining a grant as are used under this 
                        section; or
                            ``(ii) using data that the State 
                        educational agency submits to the Secretary for 
                        approval that more accurately target poverty.
                    ``(D) Appeal.--The State educational agency shall 
                provide the Secretary an assurance that a procedure is 
                or will be established through which local educational 
                agencies that are dissatisfied with determinations 
                under subparagraph (B) may appeal directly to the 
                Secretary for a final determination.
            ``(4) Puerto rico.--For each fiscal year, the Secretary 
        shall determine the percentage which the average per-pupil 
        expenditure in the Commonwealth of Puerto Rico is of the lowest 
        average per-pupil expenditure of any of the 50 States. The 
        grant which the Commonwealth of Puerto Rico shall be eligible 
        to receive under this section for a fiscal year shall be the 
        amount arrived at by multiplying the number of children counted 
        under subsection (c) for the Commonwealth of Puerto Rico by the 
        product of--
                    ``(A) the percentage determined under the preceding 
                sentence; and
                    ``(B) 32 percent of the average per-pupil 
                expenditure in the United States.
    ``(b) Minimum Number of Children To Qualify.--A local educational 
agency is eligible for a basic grant under this section for any fiscal 
year only if the number of children counted under subsection (c) for 
that agency is--
            ``(1) 10 or more; and
            ``(2) more than 2 percent of the total school-age 
        population in the school district of the local educational 
        agency.
    ``(c) Children To Be Counted.--
            ``(1) Categories of children.--The number of children to be 
        counted for purposes of this section is the aggregate of--
                    ``(A) the number of children aged 5 to 17, 
                inclusive, in the school district of the local 
                educational agency from families below the poverty 
                level as determined under paragraphs (2) and (3);
                    ``(B) the number of children aged 5 to 17, 
                inclusive, in the school district of such agency from 
                families above the poverty level as determined under 
                paragraph (4); and
                    ``(C) the number of children determined under 
                paragraph (4) for the preceding year (as described in 
                that paragraph, or for the second preceding year, as 
                the Secretary finds appropriate) aged 5 to 17, 
                inclusive, in the school district of such agency in 
                institutions for neglected and delinquent children and 
                youth (other than such institutions operated by the 
                United States), but not counted pursuant to chapter 1 
                of subpart 1 of part D for the purposes of a grant to a 
                State agency, or being supported in foster homes with 
                public funds.
            ``(2) Determination of number of children.--For the 
        purposes of this section, the Secretary shall determine the 
        number of children aged 5 to 17, inclusive, from families below 
        the poverty level on the basis of the most recent satisfactory 
        data, described in paragraph (3), available from the Department 
        of Commerce. The District of Columbia and the Commonwealth of 
        Puerto Rico shall be treated as individual local educational 
        agencies. If a local educational agency contains 2 or more 
        counties in their entirety, then each county shall be treated 
        as if such county were a separate local educational agency for 
        purposes of calculating grants under this part. The total of 
        grants for such counties shall be allocated to such a local 
        educational agency, which local educational agency shall 
        distribute to schools in each county within such agency a share 
        of the local educational agency's total grant that is no less 
        than the county's share of the population counts used to 
        calculate the local educational agency's grant.
            ``(3) Population updates.--In fiscal year 2001 and every 2 
        years thereafter, the Secretary shall use updated data on the 
        number of children, aged 5 to 17, inclusive, from families 
        below the poverty level for counties or local educational 
        agencies, published by the Department of Commerce, unless the 
        Secretary and the Secretary of Commerce determine that use of 
        the updated population data would be inappropriate or 
        unreliable. If the Secretary and the Secretary of Commerce 
        determine that some or all of the data referred to in this 
        paragraph are inappropriate or unreliable, the Secretary and 
        the Secretary of Commerce shall publicly disclose their 
        reasons. In determining the families which are below the 
        poverty level, the Secretary shall utilize the criteria of 
        poverty used by the Bureau of the Census in compiling the most 
        recent decennial census, in such form as those criteria have 
        been updated by increases in the Consumer Price Index for all 
        urban consumers, published by the Bureau of Labor Statistics.
            ``(4) Other children to be counted.--For purposes of this 
        section, the Secretary shall determine the number of children 
        aged 5 to 17, inclusive, from families above the poverty level 
        on the basis of the number of such children from families 
        receiving an annual income, in excess of the current criteria 
        of poverty, from payments under a State program funded under 
        part A of title IV of the Social Security Act. In making such 
        determinations the Secretary shall utilize the criteria of 
        poverty used by the Bureau of the Census in compiling the most 
        recent decennial census for a family of 4 in such form as those 
        criteria have been updated by increases in the Consumer Price 
        Index for all urban consumers, published by the Bureau of Labor 
        Statistics. The Secretary shall determine the number of such 
        children and the number of children aged 5 through 17 living in 
        institutions for neglected or delinquent children, or being 
        supported in foster homes with public funds, on the basis of 
        the caseload data for the month of October of the preceding 
        fiscal year (using, in the case of children described in the 
        preceding sentence, the criteria of poverty and the form of 
        such criteria required by such sentence which were determined 
        for the calendar year preceding such month of October) or, to 
        the extent that such data are not available to the Secretary 
        before January of the calendar year in which the Secretary's 
        determination is made, then on the basis of the most recent 
        reliable data available to the Secretary at the time of such 
        determination. The Secretary of Health and Human Services shall 
        collect and transmit the information required by this 
        subparagraph to the Secretary not later than January 1 of each 
        year. For the purpose of this section, the Secretary shall 
        consider all children who are in correctional institutions to 
        be living in institutions for delinquent children.
            ``(5) Estimate.--When requested by the Secretary, the 
        Secretary of Commerce shall make a special updated estimate of 
        the number of children of such ages who are from families below 
        the poverty level (as determined under paragraph (2)) in each 
        school district, and the Secretary is authorized to pay (either 
        in advance or by way of reimbursement) the Secretary of 
        Commerce the cost of making this special estimate. The 
        Secretary of Commerce shall give consideration to any request 
        of the chief executive of a State for the collection of 
        additional census information.
    ``(d) State Minimum.--Notwithstanding section 1122, the aggregate 
amount allotted for all local educational agencies within a State may 
not be less than the lesser of--
            ``(1) 0.25 percent of the total amount made available to 
        carry out this section for such fiscal year; or
            ``(2) the average of--
                    ``(A) 0.25 percent of the total amount made 
                available to carry out this section for such fiscal 
                year; and
                    ``(B) the number of children in such State counted 
                under subsection (c) in the fiscal year multiplied by 
                150 percent of the national average per-pupil payment 
                made with funds available under this section for that 
                fiscal year.

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

    ``(a) Eligibility for and Amount of Grants.--
            ``(1) Eligibility.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, each local educational agency in a 
                State that is eligible for a grant under section 1124 
                for any fiscal year is eligible for an additional grant 
                under this section for that fiscal year if the number 
                of children counted under section 1124(c) who are 
                served by the agency exceeds--
                            ``(i) 6,500; or
                            ``(ii) 15 percent of the total number of 
                        children aged 5 through 17 served by the 
                        agency.
                    ``(B) Minimum.--Notwithstanding section 1122, no 
                State shall receive under this section an amount that 
                is less than the lesser of--
                            ``(i) 0.25 percent of the total amount made 
                        available to carry out this section for such 
                        fiscal year; or
                            ``(ii) the average of--
                                    ``(I) 0.25 percent of the sums 
                                available to carry out this section for 
                                such fiscal year; and
                                    ``(II) the greater of--
                                            ``(aa) $340,000; or
                                            ``(bb) the number of 
                                        children in such State counted 
                                        for purposes of this section in 
                                        that fiscal year multiplied by 
                                        150 percent of the national 
                                        average per-pupil payment made 
                                        with funds available under this 
                                        section for that fiscal year.
            ``(2) Determination.--For each county or local educational 
        agency eligible to receive an additional grant under this 
        section for any fiscal year the Secretary shall determine the 
        product of--
                    ``(A) the number of children counted under section 
                1124(c) for that fiscal year; and
                    ``(B) the amount in section 1124(a)(1)(B) for all 
                States except the Commonwealth of Puerto Rico, and the 
                amount in section 1124(a)(3) for the Commonwealth of 
                Puerto Rico.
            ``(3) Amount.--The amount of the additional grant for which 
        an eligible local educational agency or county is eligible 
        under this section for any fiscal year shall be an amount that 
        bears the same ratio to the amount available to carry out this 
        section for that fiscal year as the product determined under 
        paragraph (2) for such local educational agency for that fiscal 
        year bears to the sum of such products for all local 
        educational agencies in the United States for that fiscal year.
            ``(4) Local allocations.--
                    ``(A) In general.--Grant amounts under this section 
                shall be calculated in the same manner as grant amounts 
                are calculated under section 1124(a) (2) and (3).
                    ``(B) Special rule.--For any fiscal year for which 
                the Secretary allocates funds under this section on the 
                basis of counties, a State may reserve not more than 2 
                percent of the amount made available to the State under 
                this section for any fiscal year to make grants to 
                local educational agencies that meet the criteria in 
                paragraph (1)(A) (i) or (ii) but that are in ineligible 
                counties.
    ``(b) Ratable Reduction Rule.--If the sums available under 
subsection (a) for any fiscal year for making payments under this 
section are not sufficient to pay in full the total amounts which all 
States are eligible to receive under subsection (a) for such fiscal 
year, the maximum amounts that all States are eligible to receive under 
subsection (a) for such fiscal year shall be ratably reduced. In the 
case that additional funds become available for making such payments 
for any fiscal year during which the preceding sentence is applicable, 
such reduced amounts shall be increased on the same basis as they were 
reduced.
    ``(c) States Receiving 0.25 Percent or Less.--In States that 
receive 0.25 percent or less of the total amount made available to 
carry out this section for a fiscal year, the State educational agency 
shall allocate such funds among the local educational agencies in the 
State--
            ``(1) in accordance with paragraphs (2) and (4) of 
        subsection (a); or
            ``(2) based on their respective concentrations and numbers 
        of children counted under section 1124(c), except that only 
        those local educational agencies with concentrations or numbers 
        of children counted under section 1124(c) that exceed the 
        statewide average percentage of such children or the statewide 
        average number of such children shall receive any funds on the 
        basis of this paragraph.

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

    ``(a) Eligibility of Local Educational Agencies.--
            ``(1) In general.--A local educational agency in a State is 
        eligible to receive a targeted grant under this section for any 
        fiscal year if--
                    ``(A) the number of children in the local 
                educational agency counted under section 1124(c), 
                before application of the weighted child count 
                described in subsection (c), is at least 10; and
                    ``(B) if the number of children counted for grants 
                under section 1124(c), before application of the 
                weighted child count described in subsection (c), is at 
                least 5 percent of the total number of children aged 5 
                to 17 years, inclusive, in the school district of the 
                local educational agency.
            ``(2) Special rule.--For any fiscal year for which the 
        Secretary allocates funds under this section on the basis of 
        counties, funds made available as a result of applying this 
        subsection shall be reallocated by the State educational agency 
        to other eligible local educational agencies in the State in 
        proportion to the distribution of other funds under this 
        section.
    ``(b) Grants for Local Educational Agencies, the District of 
Columbia, and the Commonwealth of Puerto Rico.--
            ``(1) In general.--The amount of the grant that a local 
        educational agency in a State (other than the Commonwealth of 
        Puerto Rico) is eligible to receive under this section for any 
        fiscal year shall be the product of--
                    ``(A) the weighted child count determined under 
                subsection (c); and
                    ``(B) the amount determined under section 
                1124(a)(1)(B).
            ``(2) Puerto rico.--For each fiscal year, the amount of the 
        grant the Commonwealth of Puerto Rico is eligible to receive 
        under this section shall be equal to the number of children 
        counted under subsection (c) for the Commonwealth of Puerto 
        Rico, multiplied by the amount determined in section 1124(a)(4) 
        for the Commonwealth of Puerto Rico.
    ``(c) Weighted Child Count.--
            ``(1) Weights for allocations to counties.--
                    ``(A) In general.--For each fiscal year for which 
                the Secretary uses county population data to calculate 
                grants, the weighted child count used to determine a 
                county's allocation under this section is the larger of 
                the 2 amounts determined under subparagraphs (B) and 
                (C).
                    ``(B) By percentage of children.--The amount 
                referred to in subparagraph (A) is determined by 
                adding--
                            ``(i) the number of children determined 
                        under section 1124(c) for that county who 
                        constitute not more than 15.00 percent, 
                        inclusive, of the county's total population 
                        aged 5 to 17, inclusive, multiplied by 1.0;
                            ``(ii) the number of such children who 
                        constitute more than 15.00 percent, but not 
                        more than 19.00 percent, of such population, 
                        multiplied by 1.75;
                            ``(iii) the number of such children who 
                        constitute more than 19.00 percent, but not 
                        more than 24.20 percent, of such population, 
                        multiplied by 2.5;
                            ``(iv) the number of such children who 
                        constitute more than 24.20 percent, but not 
                        more than 29.20 percent, of such population, 
                        multiplied by 3.25; and
                            ``(v) the number of such children who 
                        constitute more than 29.20 percent of such 
                        population, multiplied by 4.0.
                    ``(C) By number of children.--The amount referred 
                to in subparagraph (A) is determined by adding--
                            ``(i) the number of children determined 
                        under section 1124(c) who constitute not more 
                        than 2,311, inclusive, of the county's total 
                        population aged 5 to 17, inclusive, multiplied 
                        by 1.0;
                            ``(ii) the number of such children between 
                        2,312 and 7,913, inclusive, in such population, 
                        multiplied by 1.5;
                            ``(iii) the number of such children between 
                        7,914 and 23,917, inclusive, in such 
                        population, multiplied by 2.0;
                            ``(iv) the number of such children between 
                        23,918 and 93,810, inclusive, in such 
                        population, multiplied by 2.5; and
                            ``(v) the number of such children in excess 
                        of 93,811 in such population, multiplied by 
                        3.0.
                    ``(D) Puerto rico.--Notwithstanding subparagraph 
                (A), the weighting factor for the Commonwealth of 
                Puerto Rico under this paragraph shall not be greater 
                than the total number of children counted under section 
                1124(c) multiplied by 1.72.
            ``(2) Weights for allocations to local educational 
        agencies.--
                    ``(A) In general.--For each fiscal year for which 
                the Secretary uses local educational agency data, the 
                weighted child count used to determine a local 
                educational agency's grant under this section is the 
                larger of the 2 amounts determined under subparagraphs 
                (B) and (C).
                    ``(B) By percentage of children.--The amount 
                referred to in subparagraph (A) is determined by 
                adding--
                            ``(i) the number of children determined 
                        under section 1124(c) for that local 
                        educational agency who constitute not more than 
                        15.233 percent, inclusive, of the agency's 
                        total population aged 5 to 17, inclusive, 
                        multiplied by 1.0;
                            ``(ii) the number of such children who 
                        constitute more than 15.233 percent, but not 
                        more than 22.706 percent, of such population, 
                        multiplied by 1.75;
                            ``(iii) the number of such children who 
                        constitute more than 22.706 percent, but not 
                        more than 32.213 percent, of such population, 
                        multiplied by 2.5;
                            ``(iv) the number of such children who 
                        constitute more than 32.213 percent, but not 
                        more than 41.452 percent, of such population, 
                        multiplied by 3.25; and
                            ``(v) the number of such children who 
                        constitute more than 41.452 percent of such 
                        population, multiplied by 4.0.
                    ``(C) By number of children.--The amount referred 
                to in subparagraph (A) is determined by adding--
                            ``(i) the number of children determined 
                        under section 1124(c) who constitute not more 
                        than 710, inclusive, of the agency's total 
                        population aged 5 to 17, inclusive, multiplied 
                        by 1.0;
                            ``(ii) the number of such children between 
                        711 and 2,384, inclusive, in such population, 
                        multiplied by 1.5;
                            ``(iii) the number of such children between 
                        2,385 and 9,645, inclusive, in such population, 
                        multiplied by 2.0;
                            ``(iv) the number of such children between 
                        9,646 and 54,600, inclusive, in such 
                        population, multiplied by 2.5; and
                            ``(v) the number of such children in excess 
                        of 54,600 in such population, multiplied by 
                        3.0.
                    ``(D) Puerto rico.--Notwithstanding subparagraph 
                (A), the weighting factor for the Commonwealth of 
                Puerto Rico under this paragraph shall not be greater 
                than the total number of children counted under section 
                1124(c) multiplied by 1.72.
    ``(d) Calculation of Grant Amounts.--Grant amounts under this 
section shall be calculated in the same manner as grant amounts are 
calculated under section 1124(a) (2) and (3).
    ``(e) State Minimum.--Notwithstanding any other provision of this 
section or section 1122, from the total amount available for any fiscal 
year to carry out this section, each State shall be allotted not less 
than 0.5 percent of the total amount made available to carry out this 
section for such fiscal year.

``SEC. 1125A. EDUCATION FINANCE INCENTIVE PROGRAM.

    ``(a) Grants.--From funds appropriated under subsection (e) the 
Secretary is authorized to make grants to States, from allotments under 
subsection (b), to carry out the purposes of this part.
    ``(b) Distribution Based Upon Fiscal Effort and Equity.--
            ``(1) In general.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), funds appropriated pursuant to 
                subsection (e) shall be allotted to each State based 
                upon the number of children counted under section 
                1124(c) in such State multiplied by the product of--
                            ``(i) such State's effort factor described 
                        in paragraph (2); multiplied by
                            ``(ii) 1.30 minus such State's equity 
                        factor described in paragraph (3).
                    ``(B) Minimum.--For each fiscal year no State shall 
                receive under this section less than 0.5 percent of the 
                total amount appropriated under subsection (e) for the 
                fiscal year.
            ``(2) Effort factor.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the effort factor for a State shall 
                be determined in accordance with the succeeding 
                sentence, except that such factor shall not be less 
                than 0.95 nor greater than 1.05. The effort factor 
                determined under this sentence shall be a fraction the 
                numerator of which is the product of the 3-year average 
                per-pupil expenditure in the State multiplied by the 3-
                year average per capita income in the United States and 
                the denominator of which is the product of the 3-year 
                average per capita income in such State multiplied by 
                the 3-year average per-pupil expenditure in the United 
                States.
                    ``(B) Commonwealth of puerto rico.--The effort 
                factor for the Commonwealth of Puerto Rico shall be 
                equal to the lowest effort factor calculated under 
                subparagraph (A) for any State.
            ``(3) Equity factor.--
                    ``(A) Determination.--
                            ``(i) In general.--Except as provided in 
                        subparagraph (B), the Secretary shall determine 
                        the equity factor under this section for each 
                        State in accordance with clause (ii).
                            ``(ii) Computation.--
                                    ``(I) In general.--For each State, 
                                the Secretary shall compute a weighted 
                                coefficient of variation for the per-
                                pupil expenditures of local educational 
                                agencies in accordance with subclauses 
                                (II), (III), and (IV).
                                    ``(II) Variation.--In computing 
                                coefficients of variation, the 
                                Secretary shall weigh the variation 
                                between per-pupil expenditures in each 
                                local educational agency and the 
                                average per-pupil expenditures in the 
                                State according to the number of pupils 
                                served by the local educational agency.
                                    ``(III) Number of pupils.--In 
                                determining the number of pupils under 
                                this paragraph served by each local 
                                educational agency and in each State, 
                                the Secretary shall multiply the number 
                                of children from low-income families by 
                                a factor of 1.4.
                                    ``(IV) Enrollment requirement.--In 
                                computing coefficients of variation, 
                                the Secretary shall include only those 
                                local educational agencies with an 
                                enrollment of more than 200 students.
                    ``(B) Special rule.--The equity factor for a State 
                that meets the disparity standard described in section 
                222.162 of title 34, Code of Federal Regulations (as 
                such section was in effect on the day preceding the 
                date of enactment of the Better Education for Students 
                and Teachers Act) or a State with only 1 local 
                educational agency shall be not greater than 0.10.
                    ``(C) Revisions.--The Secretary may revise each 
                State's equity factor as necessary based on the advice 
                of independent education finance scholars to reflect 
                other need-based costs of local educational agencies in 
                addition to low-income student enrollment, such as 
                differing geographic costs, costs associated with 
                students with disabilities, children with limited 
                English-proficiency or other meaningful educational 
                needs, which deserve additional support. In addition, 
                after obtaining the advice of independent education 
                finance scholars, the Secretary may revise each State's 
                equity factor to incorporate other valid and accepted 
                methods to achieve adequacy of educational opportunity 
                that may not be reflected in a coefficient of variation 
                method.
    ``(c) Use of Funds.--All funds awarded to each State under this 
section shall be allocated to local educational agencies and schools on 
a basis consistent with the distribution of other funds to such 
agencies and schools under sections 1124, 1124A, and 1125 to carry out 
activities under this part.
    ``(d) Maintenance of Effort.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        State is entitled to receive its full allotment of funds under 
        this section for any fiscal year if the Secretary finds that 
        either the combined fiscal effort per student or the aggregate 
        expenditures within the State with respect to the provision of 
        free public education for the fiscal year preceding the fiscal 
        year for which the determination is made was not less than 90 
        percent of such combined fiscal effort or aggregate 
        expenditures for the second fiscal year preceding the fiscal 
        year for which the determination is made.
            ``(2) Reduction of funds.--The Secretary shall reduce the 
        amount of funds awarded to any State under this section in any 
        fiscal year in the exact proportion to which the State fails to 
        meet the requirements of paragraph (1) by falling below 90 
        percent of both the fiscal effort per student and aggregate 
        expenditures (using the measure most favorable to the State), 
        and no such lesser amount shall be used for computing the 
        effort required under paragraph (1) for subsequent years.
            ``(3) Waivers.--The Secretary may waive, for 1 fiscal year 
        only, the requirements of this subsection if the Secretary 
        determines that such a waiver would be equitable due to 
        exceptional or uncontrollable circumstances such as a natural 
        disaster or a precipitous and unforeseen decline in the 
        financial resources of the State.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $200,000,000 for fiscal year 
2002 and such sums as may be necessary for each of the 6 succeeding 
fiscal years.
    ``(f) Study, Evaluation and Report of School Finance 
Equalization.--(1) The Secretary shall conduct a study to evaluate and 
report to the Congress on the degree of disparity in expenditures per 
pupil among local educational agencies within and across each of the 
fifty States and the District of Columbia. The Secretary shall also 
analyze the trends in State school finance legislation and judicial 
action requiring that States equalize resources. The Secretary shall 
evaluate and report to the Congress whether or not it can be determined 
if these actions have resulted in an improvement in student 
performance.
    ``(2) In preparing this report, the Secretary may also consider the 
following: Various measures of determining disparity; the relationship 
between education expenditures and student performance; the effect of 
Federal education assistance programs on the equalization of school 
finance resources; and the effects of school finance equalization on 
local and State tax burdens.
    ``(3) Such reports shall be submitted to the Congress not later 
than one year after the date of enactment of the Better Education for 
Students and Teachers Act.

``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

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

``SEC. 1127. CARRYOVER AND WAIVER.

    ``(a) Limitation on Carryover.--Notwithstanding section 421 of the 
General Education Provisions Act or any other provision of law, not 
more than 15 percent of the funds allocated to a local educational 
agency for any fiscal year under this subpart (but not including funds 
received through any reallocation under this subpart) may remain 
available for obligation by such agency for one additional fiscal year.
    ``(b) Waiver.--A State educational agency may, once every 3 years, 
waive the percentage limitation in subsection (a) if--
            ``(1) the agency determines that the request of a local 
        educational agency is reasonable and necessary; or
            ``(2) supplemental appropriations for this subpart become 
        available.
    ``(c) Exclusion.--The percentage limitation under subsection (a) 
shall not apply to any local educational agency that receives less than 
$50,000 under this subpart for any fiscal year.''.

SEC. 120E. SCHOOL YEAR EXTENSION ACTIVITIES.

    Subpart 1 of part A of title I (20 U.S.C. 6311 et seq.) is amended 
by adding at the end the following:

``SEC. 1120C. SCHOOL YEAR EXTENSION ACTIVITIES.

    ``(a) Use of Funds.--
            ``(1) In general.--A local educational agency may use funds 
        received under this part to--
                    ``(A) to extend the length of the school year to 
                210 days, including necessary increases in compensation 
                to employees;
                    ``(B) conduct outreach to and consult with 
                community members, including parents, students, and 
                other stakeholders, to develop a plan to extend 
                learning time within or beyond the school day or year; 
                and
                    ``(C) research, develop, and implement strategies, 
                including changes in curriculum and instruction.
    ``(b) Application.--A local educational agency desiring to use 
funds under this section shall submit an application to the State 
educational agency at such time, in such manner, and accompanied by 
such information as the agency may require. Each application shall 
describe--
            ``(1) the activities to be carried out under this section;
            ``(2) any study or other information-gathering project for 
        which funds will be used;
            ``(3) the strategies and methods the applicant will use to 
        enrich and extend learning time for all students and to 
        maximize high quality instruction in the core academic areas 
        during the school day, such as block scheduling, team teaching, 
        longer school days or years, and extending learning time 
        through new distance-learning technologies;
            ``(4) the strategies and methods the applicant will use, 
        including changes in curriculum and instruction, to challenge 
        and engage students and to maximize the productiveness of 
        common core learning time, as well as the total time students 
        spend in school and in school-related enrichment activities;
            ``(5) the strategies and methods the applicant intends to 
        employ to provide continuing financial support for the 
        implementation of any extended school day or school year;
            ``(6) with respect to any application to carry out 
        activities described in subsection (b)(1)(A), a description of 
        any feasibility or other studies demonstrating the 
        sustainability of a longer school year;
            ``(7) the extent of involvement of teachers and other 
        school personnel in investigating, designing, implementing and 
        sustaining the activities assisted under this section;
            ``(8) the process to be used for involving parents and 
        other stakeholders in the development and implementation of the 
        activities assistance under this section;
            ``(9) any cooperation or collaboration among public housing 
        authorities, libraries, businesses, museums, community-based 
        organizations, and other community groups and organizations to 
        extend engaging, high-quality, standards-based learning time 
        outside of the school day or year, at the school or at some 
        other site;
            ``(10) the training and professional development activities 
        that will be offered to teachers and others involved in the 
        activities assisted under this section;
            ``(11) the goals and objectives of the activities assisted 
        under this section, including a description of how such 
        activities will assist all students to reach State standards;
            ``(12) the methods by which the applicant will assess 
        progress in meeting such goals and objectives; and
            ``(13) how the applicant will use funds provided under this 
        section in coordination with funds provided under other Federal 
        laws.

SEC. 120F. ADEQUACY OF FUNDING OF TARGETED GRANTS TO LOCAL EDUCATIONAL 
              AGENCIES IN FISCAL YEARS AFTER FISCAL YEAR 2001.

    (a) Findings.--Congress makes the following findings:
            (1) The current Basic Grant Formula for the distribution of 
        funds under part A of title I of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6311 et seq.), often does not 
        provide funds for the economically disadvantaged students for 
        which such funds are targeted.
            (2) Any school district in which at least two percent of 
        the students live below the poverty level qualifies for funding 
        under the Basic Grant Formula. As a result, 9 out of every 10 
        school districts in the country receive some form of aid under 
        the Formula.
            (3) Fifty-eight percent of all schools receive at least 
        some funding under title I of the Elementary and Secondary 
        Education Act of 1965, including many suburban schools with 
        predominantly well-off students.
            (4) One out of every 5 schools with concentrations of poor 
        students between 50 and 75 percent receive no funding at all 
        under title I of the Elementary and Secondary Education Act of 
        1965.
            (5) In passing the Improving America's Schools Act in 1994, 
        Congress declared that grants under title I of the Elementary 
        and Secondary Education Act of 1965 would more sharply target 
        high poverty schools by using the Targeted Grant Formula, but 
        annual appropriation Acts have prevented the use of that 
        Formula.
            (6) The advantage of the Targeted Grant Formula over other 
        funding formulas under title I of the Elementary and Secondary 
        Education Act of 1965 is that the Targeted Grant Formula 
        provides increased grants per poor child as the percentage of 
        economically disadvantaged children in a school district 
        increases.
            (7) Studies have found that the poverty of a child's family 
        is much more likely to be associated with educational 
        disadvantage if the family lives in an area with large 
        concentrations of poor families.
            (8) States with large populations of high poverty students 
        would receive significantly more funding if more funds under 
        title I of the Elementary and Secondary Education Act of 1965 
        were allocated through the Targeted Grant Formula.
            (9) Congress has an obligation to allocate funds under 
        title I of the Elementary and Secondary Education Act of 1965 
        so that such funds will positively affect the largest number of 
        economically disadvantaged students.
    (b) Limitation on Allocation of Title I Funds Contingent on 
Adequate Funding of Targeted Grants.--Notwithstanding any other 
provision of law, the total amount allocated in any fiscal year after 
fiscal year 2001 for programs and activities under part A of title I of 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6311 et 
seq.) may not exceed the amount allocated in fiscal year 2001 for such 
programs and activities unless the amount available for targeted grants 
to local educational agencies under section 1125 of that Act (20 U.S.C. 
6335) in the applicable fiscal year is sufficient to meet the purposes 
of grants under that section.

               PART B--LITERACY FOR CHILDREN AND FAMILIES

SEC. 121. READING FIRST.

    Part B of title I (20 U.S.C. 6361 et seq.) is amended--
            (1) by striking the part heading and inserting the 
        following:

            ``PART B--LITERACY FOR CHILDREN AND FAMILIES'';

            (2) by inserting after the part heading the following:

``Subpart 1--William F. Goodling Even Start Family Literacy Programs'';

            (3) in sections 1201 through 1212, by striking ``this 
        part'' each place such term appears and inserting ``this 
        subpart''; and
            (4) by adding at the end the following:

                      ``Subpart 2--Reading First''

``SEC. 1221. PURPOSES.

    ``The purposes of this subpart are as follows:
            ``(1) To provide assistance to States and local educational 
        agencies in establishing reading programs for students in 
        grades kindergarten through 3 that are grounded in 
        scientifically based reading research, in order to ensure that 
        every student can read at grade level or above by the end of 
        the third grade.
            ``(2) To provide assistance to States and local educational 
        agencies in preparing teachers, through professional 
        development and other support, so the teachers can identify 
        specific reading barriers facing their students and so the 
        teachers have the tools effectively to help their student to 
        learn to read.
            ``(3) To provide assistance to States and local educational 
        agencies in selecting or developing screening instruments, 
        rigorous diagnostic reading assessments, and classroom-based 
        instructional assessments.
            ``(4) To provide assistance to States and local educational 
        agencies in selecting or developing effective instructional 
        materials, programs, and strategies to implement methods that 
        have been proven to prevent or remediate reading failure within 
        a State or States.
            ``(5) To strengthen coordination among schools, early 
        literacy programs, and family literacy programs in order to 
        improve reading achievement for all children.

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

    ``(a) In General.--In the case of each State educational agency 
that in accordance with section 1224 submits to the Secretary an 
application for a 5-year period, the Secretary, subject to the 
application's approval, shall make a grant to the State educational 
agency for the uses specified in subsections (c) and (d). The grant 
shall consist of the allotment determined for the State under 
subsection (b).
    ``(b) Determination of Amount of Allotment.--
            ``(1) In general.--From the total amount made available to 
        carry out this subpart for any fiscal year and not reserved 
        under section 1226, the Secretary shall allot among each of the 
        50 States, the District of Columbia, and the Commonwealth of 
        Puerto Rico, in accordance with paragraph (2)--
                    ``(A) 100 percent of such remaining amount for each 
                of the fiscal years 2002 and 2003; and
                    ``(B) 75 percent of such remaining amount for each 
                of the fiscal years 2004 through 2008.
            ``(2) State allotments.--The Secretary shall allot the 
        amount made available under paragraph (1) for a fiscal year 
        among the States in proportion to the amount all local 
        educational agencies in a State would receive under section 
        1124.
            ``(3) Reallotment.--If any State does not apply for an 
        allotment under this section for any fiscal year, or if the 
        State's application is not approved, the Secretary shall 
        reallot such amount to the remaining States in accordance with 
        paragraph (2).
            ``(4) Reservation from appropriations.--From the amounts 
        appropriated under section 1002(b)(2) to carry out this subpart 
        for a fiscal year, the Secretary shall--
                    ``(A) reserve \1/2\ of 1 percent for allotments for 
                the Virgin Islands, Guam, American Samoa and the 
                Commonwealth of the Northern Mariana Islands, to be 
                distributed among these outlying areas on the basis of 
                their relative need, as determined by the Secretary in 
                accordance with the purposes of this subpart; and
                    ``(B) reserve \1/2\ of 1 percent for allotments for 
                the Secretary of the Interior for programs under this 
                subpart in schools operated or funded by the Bureau of 
                Indian Affairs.
    ``(c) Subgrants to Local Educational Agencies.--
            ``(1) Distribution of subgrants.--The Secretary may make a 
        grant to a State under this section only if the State agrees to 
        expend at least 80 percent of the amount of the funds provided 
        under the grant for the purpose of making, in accordance with 
        this subsection, competitive subgrants to eligible local 
        educational agencies.
            ``(2) Notice.--A State receiving a grant under this section 
        shall provide notice to all eligible local educational agencies 
        in the State of the availability of competitive subgrants under 
        this subsection and of the requirements for applying for the 
        subgrants.
            ``(3) Local application.--To be eligible to receive a 
        subgrant under this subsection, an eligible local educational 
        agency shall submit an application to the State at such time, 
        in such manner, and containing such information as the State 
        may reasonably require.
            ``(4) Definition of eligible local educational agency.--In 
        this subpart the term `eligible local educational agency' means 
        a local educational agency that--
                    ``(A) has a high number or percentage of students 
                in grades kindergarten through 3 reading below grade 
                level; and
                    ``(B) has--
                            ``(i) jurisdiction over a geographic area 
                        that includes an area designated as an 
                        empowerment zone, or an enterprise community, 
                        under part I of subchapter U of chapter 1 of 
                        the Internal Revenue Code of 1986;
                            ``(ii) jurisdiction over at least 1 school 
                        that is identified for school improvement under 
                        section 1116(c); or
                            ``(iii) a high number or percentage of 
                        children who are counted under section 1124(c), 
                        in comparison to other local educational 
                        agencies in the State.
            ``(5) State requirement.--In distributing subgrant funds to 
        local educational agencies, a State shall--
                    ``(A) provide the funds in sufficient amounts to 
                enable the local educational agencies to improve 
                reading; and
                    ``(B) provide the funds in amounts related to the 
                number or percentage of students in kindergarten 
                through grade 3 who are reading below grade level.
            ``(6) Local eligibility.--In distributing subgrant funds 
        under this subsection, a local educational agency shall provide 
        funds only to schools that--
                    ``(A) have a high percentage of students in grades 
                kindergarten through 3 reading below grade level;
                    ``(B) are identified for school improvement under 
                section 1116(c); or
                    ``(C) have a high percentage of children counted 
                under section 1124(c).
            ``(7) Local uses of funds.--Subject to paragraph (8), a 
        local educational agency that receives a subgrant under this 
        subsection shall use the funds provided under the subgrant to 
        carry out the following activities:
                    ``(A) Selecting or developing, and administering, 
                screening instruments, rigorous diagnostic reading 
                assessments, and classroom-based instructional 
                assessments.
                    ``(B) Selecting or developing, and implementing, a 
                program or programs of reading instruction grounded on 
                scientifically based reading research that--
                            ``(i) includes the major components of 
                        reading instruction; and
                            ``(ii) provides such instruction to all 
                        children, including children who--
                                    ``(I) may have reading 
                                difficulties;
                                    ``(II) are at risk of being 
                                referred to special education based on 
                                these difficulties;
                                    ``(III) have been evaluated under 
                                section 614 of the Individuals with 
                                Disabilities Education Act but, in 
                                accordance with section 614(b)(5) of 
                                such Act, and have not been identified 
                                as being a child with a disability (as 
                                defined in section 602 of such Act);
                                    ``(IV) are being served under such 
                                Act primarily due to being identified 
                                as being a child with a specific 
                                learning disability (as defined in 
                                section 602 of such Act) related to 
                                reading; or
                                    ``(V) are identified as having 
                                limited English proficiency (as defined 
                                in section 3501).
                    ``(C) Procuring and implementing instructional 
                materials, including education technology such as 
                software and other digital curricula, grounded on 
                scientifically based reading research.
                    ``(D) Providing professional development for 
                teachers of grades kindergarten through 3 that--
                            ``(i) will prepare these teachers in all of 
                        the major components of reading instruction;
                            ``(ii) shall include--
                                    ``(I) information on instructional 
                                materials, programs, strategies, and 
                                approaches grounded on scientifically 
                                based reading research, including early 
                                intervention and reading remediation 
                                materials, programs, and approaches; 
                                and
                                    ``(II) instruction in the use of 
                                rigorous diagnostic reading assessments 
                                and other procedures that effectively 
                                identify students who may be at risk 
                                for reading failure or who are having 
                                difficulty reading; and
                            ``(iii) shall be provided by eligible 
                        professional development providers.
                    ``(E) Promoting reading and library programs that 
                provide access to engaging reading material.
                    ``(F) Providing training to individuals who 
                volunteer to be reading tutors for students to enable 
                the volunteers to support instructional practices that 
                are based on scientific reading research and being used 
                by the student's teacher.
                    ``(G) Assisting parents, through the use of 
                materials, programs, strategies and approaches 
                (including family literacy services), that are based on 
                scientific reading research, to help support their 
                children's reading development.
                    ``(H) Collecting and summarizing data--
                            ``(i) to document the effectiveness of this 
                        subpart in individual schools and in the local 
                        educational agency as a whole; and
                            ``(ii) to stimulate and accelerate 
                        improvement by identifying the schools that 
                        produce significant gains in reading 
                        achievement.
                    ``(I) Reporting data for all students and 
                categories of students identified under section 
                1111(b)(2)(B)(v).
    ``(9) Local planning and administration.--A local educational 
agency that receives a subgrant under this subsection may use not more 
than 5 percent of the funds provided under the subgrant for planning 
and administration.
    ``(d) Other State Uses of Funds.--
            ``(1) In general.--A State educational agency that receives 
        a grant under this section may expend not more than a total of 
        20 percent of the grant funds to carry out the activities 
        described in paragraphs (3), (4), and (5).
            ``(2) Priority.--A State shall give priority to carrying 
        out the activities described in paragraphs (3), (4), and (5) 
        for schools described in subsection (c)(6).
            ``(3) Professional development.--A State may expend not 
        more than 100 percent of the amount of the funds made available 
        under paragraph (1) to develop and implement a program of 
        professional development for teachers of grades kindergarten 
        through 3 that--
                    ``(A) will prepare these teachers in all of the 
                major components of reading instruction;
                    ``(B) shall include--
                            ``(i) information on instructional 
                        materials, programs, strategies, and approaches 
                        grounded on scientifically based reading 
                        research, including early intervention and 
                        reading remediation materials, programs, and 
                        approaches; and
                            ``(ii) instruction in the use of rigorous 
                        diagnostic reading assessments and other 
                        procedures that effectively identify students 
                        who may be at risk for reading failure or who 
                        are having difficulty reading; and
                    ``(C) shall be provided by eligible professional 
                development providers.
            ``(4) Technical assistance for local educational agencies 
        and schools.--A State may expend not more than 25 percent of 
        the amount of the funds made available under paragraph (1) for 
        one or more of the following authorized State activities:
                    ``(A) Assisting local educational agencies in 
                accomplishing the tasks required to design and 
                implement a program under this subpart, including--
                            ``(i) selecting and implementing a program 
                        or programs of reading instruction grounded on 
                        scientifically based reading research;
                            ``(ii) selecting or developing rigorous 
                        diagnostic reading assessments; and
                            ``(iii) identifying eligible professional 
                        development providers to help prepare reading 
                        teachers to teach students using the programs 
                        and assessments described in subparagraphs (A) 
                        and (B).
                    ``(B) Providing expanded opportunities to students 
                in grades kindergarten through 3 within eligible local 
                educational agencies for receiving reading assistance 
                from alternative providers that includes--
                            ``(i) a rigorous diagnostic reading 
                        assessment; and
                            ``(ii) instruction in the major components 
                        of reading that is based on scientific reading 
                        research.
            ``(5) Planning, administration, and reporting.--
                    ``(A) In general.--A State may expend not more than 
                25 percent of the amount of the funds made available 
                under paragraph (1) for the activities described in 
                this paragraph.
                    ``(B) Planning and administration.--A State that 
                receives a grant under this section may expend funds 
                made available under subparagraph (A) for planning and 
                administration relating to the State uses of funds 
                authorized under this subpart, including the following:
                            ``(i) Administering the distribution of 
                        competitive subgrants to local educational 
                        agencies under sections 1222 and 1223.
                            ``(ii) Collecting and summarizing data--
                                    ``(I) to document the effectiveness 
                                of this subpart in individual local 
                                educational agencies and in the State 
                                as a whole; and
                                    ``(II) to stimulate and accelerate 
                                improvement by identifying the local 
                                educational agencies that produce 
                                significant gains in reading 
                                achievement.
                    ``(C) Annual reporting.--
                            ``(i) In general.--A State that receives a 
                        grant under this section shall expend funds 
                        provided under the grant to provide the 
                        Secretary annually with a report on the 
                        implementation of this subpart. The report 
                        shall include evidence that the State is 
                        fulfilling its obligations under this subpart. 
                        The report shall also include the data required 
                        under subsections (c)(7) (H) and (I) to be 
                        reported to the State by local educational 
                        agencies. The report shall include a specific 
                        identification of those local educational 
                        agencies that report significant gains in 
                        reading achievement overall and such gains 
                        based on disaggregated data, reported in the 
                        same manner as data is reported under 
                        subsection (c)(7)(I).
                            ``(ii) Privacy protection.--Data in the 
                        report shall be reported in a manner that 
                        protects the privacy of individuals.
                            ``(iii) Contract.--To the extent 
                        practicable, a State shall enter into a 
                        contract with an entity that conducts 
                        scientifically based reading research, under 
                        which contract the entity will assist the State 
                        in producing the reports required to be 
                        submitted under this subparagraph.
            ``(6) Prime time family reading time.--A State that 
        receives a grant under this section may expend funds provided 
        under the grant for a humanities-based family literacy program 
        which bonds families around the acts of reading and using 
        public libraries.

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

    ``(a) In General.--For fiscal year 2004 and each succeeding fiscal 
year the Secretary is authorized to award grants, on a competitive 
basis according to the criteria described in subsection (b) (2) or (3), 
to any State educational agency that received a grant under section 
1222, for the use specified in subsection (c).
    ``(b) Amount Available for Grants; Criteria for Grants.--
            ``(1) Amount.--From the total amount made available to 
        carry out this subpart for fiscal year 2004 or any succeeding 
        fiscal year that is not used under section 1222 or reserved 
        under section 1226, the Secretary shall award grants under this 
        section according to the criteria described in paragraph (2) or 
        (3).
            ``(2) Criteria for awarding competitive grants to states.--
        In carrying out this section, the Secretary shall award grants 
        to those State educational agencies that--
                    ``(A) for 2 consecutive years, make or exceed 
                adequate yearly progress in reading for all third 
                graders, in the aggregate, who attend schools served by 
                the local educational agencies receiving funding under 
                this subpart;
                    ``(B) for each of the same such consecutive 2 
                years, demonstrate that an increasing percentage of 
                third graders in each of the groups described in 
                section 1111(b)(2)(B)(v)(II) in the schools served by 
                the local educational agencies receiving funds under 
                this subpart are reaching the proficient level in 
                reading; and
                    ``(C) for each of the same such consecutive 2 
                years, demonstrate that schools receiving funds under 
                this subpart are improving the reading skills of 
                students in the first and second grades based on 
                screening, diagnostic, or classroom-based instructional 
                assessments.
            ``(3) Interim criteria for awarding competitive grants to 
        states.--If a State has not defined adequate yearly progress 
        and implemented an assessment of reading in grade 3 as required 
        under subsection 1111(b), then the Secretary shall award grants 
        to such State educational agency on the basis of evidence 
        supplied by the State that, for 2 consecutive years, increasing 
        percentages of students are reading at grade level or above in 
        grades 1 through 3 in schools receiving funds under this 
        subpart.
            ``(4) Continuation of performance awards.--For any State 
        that receives a competitive grant under this section, the 
        Secretary shall make an award for each of the following, 
        consecutive years that the State demonstrates it is continuing 
        to meet the criteria described in paragraph (2) or (3).
            ``(5) Distribution of performance grants.--
                    ``(A) In general.--The Secretary shall make a grant 
                to each State with an application approved under this 
                section in proportion to the number of poor children 
                determined under section 1124(c)(1)(A) for the State as 
                compared to the number of such poor children in all 
                States with applications approved in that year.
                    ``(B) Application contents.--A State that desires 
                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 require. Each such application shall 
                include the following:
                            ``(i) Evidence that the State has carried 
                        out its obligations under this subpart.
                            ``(ii) Evidence that the State has met the 
                        criteria described in paragraph (2) or (3).
                            ``(iii) The amount of funds being requested 
                        by the State and a description of the criteria 
                        the State intends to use in distributing 
                        subgrants to local educational agencies under 
                        this section to continue or expand activities 
                        under this subpart.
                            ``(iv) Any additional evidence that 
                        demonstrates success in the implementation of 
                        this subpart.
    ``(c) Subgrants to Local Educational Agencies.--
            ``(1) In general.--The Secretary may make a grant to a 
        State under this section only if the State agrees to expend 100 
        percent of the amount of the funds provided under the grant for 
        the purpose of making competitive subgrants in accordance with 
        this subsection to local educational agencies.
            ``(2) Notice.--A State receiving a grant under this section 
        shall provide notice to all eligible local educational agencies 
        in the State of the availability of competitive subgrants under 
        this subsection and of the requirements for applying for the 
        subgrants.
            ``(3) Application.--To apply for a subgrant under this 
        subsection, an eligible local educational agency shall submit 
        an application to the State at such time, in such manner, and 
        containing such information as the State may reasonably 
        require.
            ``(4) Distribution.--A State shall distribute funds under 
        this section, on a competitive basis, based on the following 
        criteria:
                    ``(A) Evidence that a local educational agency has 
                carried out its obligations under this subpart.
                    ``(B) Evidence that a local educational agency has, 
                for 2 consecutive years, made or exceeded adequate 
                yearly progress in reading for all third graders, in 
                the aggregate, who attend schools receiving funds under 
                this subpart.
                    ``(C) Evidence that a local educational agency has, 
                for each of the same such consecutive 2 years, 
                demonstrated that an increasing percentage of the third 
                graders in each of the groups described in section 
                1111(b)(2)(B)(v)(II) in schools receiving funds under 
                this subpart are reaching the proficient level in 
                reading.
                    ``(D) Evidence that a local educational agency has, 
                for each of the same such consecutive 2 years, 
                demonstrated that schools receiving funds under this 
                subpart are improving the reading skills of students in 
                the first and second grades based on screening, 
                diagnostic, or classroom-based instructional 
                assessments.
                    ``(E) The amount of funds being requested by a 
                local educational agency in its application under 
                paragraph (3) and the description in such application 
                of how such funds will be used to support the 
                continuation or expansion of the agency's programs 
                under this subpart.
                    ``(F) Evidence that the local educational agency 
                will work with other eligible local educational 
                agencies in the State who have not received a subgrant 
                under this subsection to assist such nonreceiving 
                agencies in increasing the reading achievement of 
                students.
                    ``(G) Any additional evidence in a local 
                educational agency's application under paragraph (3) 
                that demonstrates success in the implementation of this 
                subpart.
            ``(5) Interim criteria for distributing funds.--If a State 
        has not defined adequate yearly progress or implemented an 
        assessment of reading in grade 3 as required under subsection 
        1111(b), then such State shall award grants, on a competitive 
        basis according to the criteria described in paragraphs (4) 
        (A), (E), (F), and (G), to local educational agencies that for 
        2 consecutive years increased the percentage of students 
        reading at grade level or above in grades 1 through 3 in 
        schools receiving funds under this subpart.
            ``(6) Local uses of funds.--A local educational agency that 
        receives a subgrant under this subsection shall use the funds 
        provided under the subgrant to carry out the activities 
        described in subparagraphs (A) through (G) of section 
        1222(c)(7).

``SEC. 1224. STATE APPLICATIONS.

    ``(a) Applications.--
            ``(1) In general.--A State educational agency that desires 
        to receive a grant under section 1222 shall submit an 
        application to the Secretary at such time and in such form as 
        the Secretary may require. The application shall contain the 
        information described in subsection (b).
            ``(2) Special application provisions.--For those States 
        that have received a grant under part C of title II (as such 
        part was in effect on the day preceding the date of enactment 
        of the Better Education for Students and Teachers Act), the 
        Secretary shall establish a modified set of requirements for an 
        application under this section that takes into account the 
        information already submitted and approved under that program 
        and minimizes the duplication of effort on the part of such 
        States.
    ``(b) Contents.--An application under this section shall contain 
the following:
            ``(1) An assurance that the Governor of the State, in 
        consultation with the State educational agency, has established 
        a reading and literacy partnership described in subsection (d), 
        and a description of how such partnership--
                    ``(A) coordinated the development of the 
                application; and
                    ``(B) will assist in the oversight and evaluation 
                of the State's activities under this subpart.
            ``(2) A description of a strategy to expand, continue, or 
        modify activities commenced under part C of title II of this 
        Act (as such part was in effect on the day before the date of 
        the enactment of the Better Education for Students and Teachers 
        Act).
            ``(3) An assurance that the State will submit to the 
        Secretary, at such time and in such manner as the Secretary may 
        reasonably require, a State plan containing a description of 
        the following:
                    ``(A) How the State will assist local educational 
                agencies in identifying rigorous diagnostic reading 
                assessments.
                    ``(B) How the State will assist local educational 
                agencies in identifying instructional materials, 
                programs, strategies, and approaches, grounded on 
                scientifically based reading research, including early 
                intervention and reading remediation materials, 
                programs and approaches.
                    ``(C) How the State educational agency will ensure 
                that professional development activities related to 
                reading instruction and provided under this subpart 
                are--
                            ``(i) coordinated with other Federal, State 
                        and local level funds and used effectively to 
                        improve instructional practices for reading; 
                        and
                            ``(ii) based on scientifically based 
                        reading research.
                    ``(D) How the activities assisted under this 
                subpart will address the needs of teachers and other 
                instructional staff in schools receiving assistance 
                under this subpart and will effectively teach students 
                to read.
                    ``(E) The extent to which the activities will 
                prepare teachers in all the major components of reading 
                instruction.
                    ``(F) How subgrants made by the State educational 
                agency under this subpart will meet the requirements of 
                this subpart, including how the State educational 
                agency will ensure that local educational agencies 
                receiving subgrants under this subpart will use 
                practices based on scientifically based reading 
                research.
                    ``(G) How the State educational agency will, to the 
                extent practicable, make grants to subgrantees in both 
                rural and urban areas.
                    ``(H) How the State educational agency--
                            ``(i) will build on, and promote 
                        coordination among, literacy programs in the 
                        State (including federally funded programs such 
                        as the Adult Education and Family Literacy Act 
                        and the Individuals with Disabilities Education 
                        Act), in order to increase the effectiveness of 
                        the programs in improving reading for adults 
                        and children and to avoid duplication of the 
                        efforts of the program; and
                            ``(ii) will assess and evaluate, on a 
                        regular basis, local educational agency 
                        activities assisted under this subpart, with 
                        respect to whether they have been effective in 
                        achieving the purposes of this subpart.
    ``(c) Approval of Applications.--
            ``(1) In general.--The Secretary shall approve an 
        application of a State under this section only if such 
        application meets the requirement of this section.
            ``(2) Peer review.--
                    ``(A) In general.--The Secretary, in consultation 
                with the National Institute for Literacy, shall convene 
                a panel to evaluate applications under this section. At 
                a minimum, the panel shall include--
                            ``(i) 3 individuals selected by the 
                        Secretary;
                            ``(ii) 3 individuals selected by the 
                        National Institute for Literacy;
                            ``(iii) 3 individuals selected by the 
                        National Research Council of the National 
                        Academy of Sciences; and
                            ``(iv) 3 individuals selected by the 
                        National Institute of Child Health and Human 
                        Development.
                    ``(B) Experts.--The panel shall include experts who 
                are competent, by virtue of their training, expertise, 
                or experience, to evaluate applications under this 
                section, and experts who provide professional 
                development to teachers of reading to children and 
                adults, and experts who provide professional 
                development to other instructional staff, based on 
                scientifically based reading research.
                    ``(C) Recommendations.--The panel shall recommend 
                grant applications from States under this section to 
                the Secretary for funding or for disapproval.
    ``(d) Reading and Literacy Partnerships.--
            ``(1) Required participants.--In order for a State to 
        receive a grant under this subpart, the Governor of the State, 
        in consultation with the State educational agency, shall 
        establish a reading and literacy partnership consisting of at 
        least the following participants:
                    ``(A) The Governor of the State.
                    ``(B) The chief State school officer.
                    ``(C) The chairman and the ranking member of each 
                committee of the State legislature that is responsible 
                for education policy.
                    ``(D) A representative, selected jointly by the 
                Governor and the chief State school officer, of at 
                least one local educational agency that is eligible to 
                receive a subgrant under section 1222.
                    ``(E) A representative, selected jointly by the 
                Governor and the chief State school officer, of a 
                community-based organization working with children to 
                improve their reading skills, particularly a community-
                based organization using tutors and scientifically 
                based reading research.
                    ``(F) State directors of appropriate Federal or 
                State programs with a strong reading component.
                    ``(G) A parent of a public or private school 
                student or a parent who educates their child or 
                children in their home, selected jointly by the 
                Governor and the chief State school officer.
                    ``(H) A teacher who successfully teaches reading 
                and an instructional staff member, selected jointly by 
                the Governor and the chief State school officer.
                    ``(I) A family literacy service provider selected 
                jointly by the Governor and the chief State school 
                officer.
            ``(2) Optional participants.--A reading and literacy 
        partnership may include additional participants, who shall be 
        selected jointly by the Governor and the chief State school 
        officer, and who may include a representative of--
                    ``(A) an institution of higher education operating 
                a program of teacher preparation based on 
                scientifically based reading research in the State;
                    ``(B) a local educational agency;
                    ``(C) a private nonprofit or for-profit eligible 
                professional development provider providing instruction 
                based on scientifically based reading research;
                    ``(D) an adult education provider;
                    ``(E) a volunteer organization that is involved in 
                reading programs; or
                    ``(F) a school library or a public library that 
                offers reading or literacy programs for children or 
                families.
            ``(3) Preexisting partnership.--If, before the date of the 
        enactment of the Better Education for Students and Teachers 
        Act, a State established a consortium, partnership, or any 
        other similar body that was considered a reading and literacy 
        partnership for purposes of part C of title II of this Act (as 
        such part was in effect on the day before the date of the 
        enactment of the Better Education for Students and Teachers 
        Act), that consortium, partnership, or body may be considered a 
        reading and literacy partnership for purposes of this subpart 
        notwithstanding that it does not satisfy the requirements of 
        paragraph (1).

``SEC. 1225. ACCOUNTABILITY FOR RESULTS.

    ``(a) State Accountability.--
            ``(1) Reductions.--If the Secretary makes the determination 
        described in paragraphs (2) or (3) for 2 consecutive years, 
        then the Secretary shall reduce the size of a State's grant 
        under this subpart for the subsequent fiscal year.
            ``(2) Determination.--The determination referred to in 
        paragraph (1) is the determination, made on the basis of data 
        from the State assessment system described in section 1111, 
        that a State--
                    ``(A) failed to make adequate yearly progress in 
                reading (as defined in the State's plan under section 
                1111) for all third graders, in the aggregate, who 
                attend schools receiving funds under this subpart; and
                    ``(B) failed to increase the percentage of third 
                graders within each of the groups described in section 
                1111(b)(2)(B)(v)(II) who attend schools receiving funds 
                under this subpart in reaching the proficient level in 
                reading as compared to the previous school year.
            ``(3) Interim criteria for determination.--If a State has 
        not defined adequate yearly progress and implemented an 
        assessment of reading in grade 3 as required under subsection 
        1111(b), then the determination referred to in paragraph (1) is 
        the determination that such State failed to increase the 
        percentage of students reading at grade level or above in 
        grades 1 through 3 in schools receiving funds under this 
        subpart.
            ``(4) Continued reductions.--If the Secretary makes the 
        determination described in paragraph (2) or (3) for a third or 
        subsequent consecutive year, then the Secretary shall continue 
        to reduce a States's grant under this subpart in each such 
        consecutive year.
    ``(b) Local Educational Agency Accountability.--
            ``(1) Reductions.--If the State educational agency makes 
        the determination described in paragraph (2) or (3) for a local 
        educational agency receiving funds under this subpart for 2 
        consecutive years, then the State shall make that local 
        educational agency a priority for professional development and 
        technical assistance provided under section 1222(d) (3) and 
        (4).
            ``(2) Determination.--The determination referred to in 
        paragraph (1) is the determination, made on the basis of data 
        from the State assessment system described in section 1111, 
        that a local educational agency--
                    ``(A) failed to make adequate yearly progress in 
                reading (as defined in the State plan under section 
                1111) for all third graders, in the aggregate, who 
                attend schools that are served by the agency and 
                receive funds under this subpart; and
                    ``(B) failed to increase the percentage of third 
                graders, within each of the groups described in section 
                1111(b)(2)(B)(v)(II), who attend schools that are 
                served by the agency and receive funds under this 
                subpart, reaching the proficient level in reading as 
                compared to the previous school year.
            ``(3) Interim criteria for determination.--If a State has 
        not defined adequate yearly progress and implemented an 
        assessment of reading in grade 3 as required under subsection 
        1111(b), then the determination referred to in paragraph (1) is 
        the determination that a local educational agency failed to 
        increase the percentage of students reading at grade level or 
        above in grades 1 through 3 in schools receiving funds under 
        this subpart.
            ``(4) Continued reductions.--If the State makes the 
        determination described in paragraph (2) for a third or 
        subsequent consecutive year, then the State shall continue to 
        provide professional development and technical assistance and 
        may require the local educational agency to institute a new 
        reading curriculum that has demonstrated success in improving 
        the reading skills of students in kindergarten through third 
        grade, replace school district or school staff involved in the 
        planning or implementation of the reading curriculum, or take 
        some other action or actions to address the cause or causes for 
        such failure to demonstrate progress. If the local educational 
        agency refuses to take such action, then the State may reduce 
        or eliminate the grant to that local educational agency.

``SEC. 1226. RESERVATIONS FROM APPROPRIATIONS.

    ``From the amounts appropriated to carry out this subpart for a 
fiscal year, the Secretary--
            ``(1) may reserve not more than 1 percent to carry out 
        section 1227 (relating to national activities); and
            ``(2) shall reserve $5,000,000 to carry out section 1228 
        (relating to information dissemination).

``SEC. 1227. NATIONAL ACTIVITIES.

    ``(a) In General.--From funds reserved under section 1226, the 
Secretary--
            ``(1) shall contract with an independent outside 
        organization for a 5-year, rigorous, scientifically valid, 
        quantitative evaluation of this subpart;
            ``(2) may provide technical assistance in achieving the 
        purposes of this subpart to States, local educational agencies, 
        and schools requesting such assistance; and
            ``(3) shall, at a minimum, evaluate the impact of services 
        provided to children under this subpart with respect to their 
        referral to and eligibility for special education services 
        under the Individuals with Disabilities Education Act (based on 
        their difficulties learning to read).
    ``(b) Process.--Such evaluation shall be conducted by an 
organization outside of the Department that is capable of designing and 
carrying out an independent evaluation that identifies the effects of 
specific activities carried out by States and local educational 
agencies under this subpart on improving reading instruction. Such 
evaluation shall use only data relating to students served under this 
subpart and shall take into account factors influencing student 
performance that are not controlled by teachers or education 
administrators.
    ``(c) Analysis.--Such evaluation shall include the following:
            ``(1) An analysis of the relationship between each of the 
        essential components of reading instruction and overall reading 
        proficiency.
            ``(2) An analysis of whether assessment tools used by 
        States and local educational agencies measure the essential 
        components of reading instruction.
            ``(3) An analysis of how State reading standards correlate 
        with the essential components of reading instruction.
            ``(4) An analysis of whether the receipt of a discretionary 
        grant under this subpart results in an increase in the number 
        of children who read proficiently.
            ``(5) A measurement of the extent to which specific 
        instructional materials improve reading proficiency.
            ``(6) A measurement of the extent to which specific 
        rigorous diagnostic reading and screening assessment tools 
        assist teachers in identifying specific reading deficiencies.
            ``(7) A measurement of the extent to which professional 
        development programs implemented by States using funds received 
        under this subpart improve reading instruction.
            ``(8) A measurement of how well students preparing to enter 
        the teaching profession are prepared to teach the essential 
        components of reading instruction.
            ``(9) An analysis of changes in students' interest in 
        reading and time spent reading outside of school.
            ``(10) Any other analysis or measurement pertinent to this 
        subpart that is determined to be appropriate by the Secretary.
    ``(d) Program Improvement.--The findings of the evaluation 
conducted under this section shall be provided to States and local 
educational agencies on a periodic basis for use in program 
improvement.

``SEC. 1228. INFORMATION DISSEMINATION.

    ``(a) In General.--From funds reserved under section 1226(2), the 
National Institute for Literacy, in collaboration with the Departments 
of Education and Health and Human Services, including the National 
Institute for Child Health and Human Development, shall--
            ``(1) disseminate information on scientifically based 
        reading research pertaining to children, youth, and adults;
            ``(2) identify and disseminate information about schools, 
        local educational agencies, and States that effectively 
        developed and implemented reading programs that meet the 
        requirements of this subpart, including those effective States, 
        local educational agencies, and schools identified through the 
        evaluation and peer review provisions of this subpart; and
            ``(3) support the continued identification of 
        scientifically based reading research that can lead to improved 
        reading outcomes for children, youth, and adults through 
        evidenced-based assessments of the scientific research 
        literature.
    ``(b) Dissemination and Coordination.--At a minimum, the National 
Institute for Literacy shall disseminate such information to recipients 
of Federal financial assistance under titles I and III, the Head Start 
Act, the Individuals With Disabilities Education Act, and the Adult 
Education and Family Literacy Act. In carrying out this section, the 
National Institute for Literacy shall, to the extent practicable, 
utilize existing information and dissemination networks developed and 
maintained through other public and private entities including through 
the Department and the National Center for Family Literacy.
    ``(c) Use of Funds.--The National Institute for Literacy may use 
not more than 5 percent of the funds made available under section 
1226(2) for administrative purposes directly related to carrying out of 
activities authorized by this section.

``SEC. 1229. IMPROVING LITERACY THROUGH SCHOOL LIBRARIES.

    ``(a) In General.--From funds made available under subsection (d) 
for a fiscal year, the Secretary shall allot to each State educational 
agency having an application approved under subsection (c)(1) an amount 
that bears the same relation to the funds as the amount the State 
educational agency received under part A for the preceding fiscal year 
bears to the amount all such State educational agencies received under 
part A for the preceding fiscal year, to increase literacy and reading 
skills by improving school libraries.
    ``(b) Within-State Allocations.--Each State educational agency 
receiving an allotment under subsection (a) for a fiscal year--
            ``(1) may reserve not more than 3 percent to provide 
        technical assistance, disseminate information about school 
        library media programs that are effective and based on 
        scientifically based research, and pay administrative costs, 
        related to activities under this section; and
            ``(2) shall allocate the allotted funds that remain after 
        making the reservation under paragraph (1) to each local 
        educational agency in the State having an application approved 
        under subsection (c)(2) (for activities described in subsection 
        (f)) in an amount that bears the same relation to such 
        remainder as the amount the local educational agency received 
        under part A for the fiscal year bears to the amount received 
        by all such local educational agencies in the State for the 
        fiscal year.
    ``(c) Applications.--
            ``(1) State educational agency.--Each State educational 
        agency desiring assistance under this section shall submit to 
        the Secretary an application at such time, in such manner, and 
        containing such information as the Secretary shall require. The 
        application shall contain a description of--
                    ``(A) how the State educational agency will assist 
                local educational agencies in meeting the requirements 
                of this section and in using scientifically based 
                research to implement effective school library media 
                programs; and
                    ``(B) the standards and techniques the State 
                educational agency will use to evaluate the quality and 
                impact of activities carried out under this section by 
                local educational agencies to determine the need for 
                technical assistance and whether to continue funding 
                the agencies under this section.
            ``(2) Local educational agency.--Each local educational 
        agency desiring assistance under this section shall submit to 
        the State educational agency an application at such time, in 
        such manner, and containing such information as the State 
        educational agency shall require. The application shall contain 
        a description of--
                    ``(A) a needs assessment relating to the need for 
                school library media improvement, based on the age and 
                condition of school library media resources, including 
                book collections, access of school library media 
                centers to advanced technology, and the availability of 
                well-trained, professionally certified school library 
                media specialists, in schools served by the local 
                educational agency;
                    ``(B) how the local educational agency will 
                extensively involve school library media specialists, 
                teachers, administrators, and parents in the activities 
                assisted under this section, and the manner in which 
                the local educational agency will carry out the 
                activities described in subsection (f) using programs 
                and materials that are grounded in scientifically based 
                research;
                    ``(C) the manner in which the local educational 
                agency will effectively coordinate the funds and 
                activities provided under this section with Federal, 
                State, and local funds and activities under this 
                subpart and other literacy, library, technology, and 
                professional development funds and activities; and
                    ``(D) the manner in which the local educational 
                agency will collect and analyze data on the quality and 
                impact of activities carried out under this section by 
                schools served by the local educational agency.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $500,000,000 for fiscal year 
2002 and such sums as may be necessary for each of the 6 succeeding 
fiscal years.
    ``(e) Within-LEA Distribution.--Each local educational agency 
receiving funds under this section shall distribute--
            ``(1) 50 percent of the funds to schools served by the 
        local educational agency that are in the top quartile in terms 
        of percentage of students enrolled from families with incomes 
        below the poverty line; and
            ``(2) 50 percent of the funds to schools that have the 
        greatest need for school library media improvement based on the 
        needs assessment described in subsection (c)(2)(A).
    ``(f) Local Activities.--Funds under this section may be used to--
            ``(1) acquire up-to-date school library media resources, 
        including books;
            ``(2) acquire and utilize advanced technology, incorporated 
        into the curricula of the school, to develop and enhance the 
        information literacy, information retrieval, and critical 
        thinking skills of students;
            ``(3) facilitate Internet links and other resource-sharing 
        networks among schools and school library media centers, and 
        public and academic libraries, where possible;
            ``(4) provide professional development described in 
        1222(c)(7)(D) for school library media specialists, and 
        activities that foster increased collaboration between school 
        library media specialists, teachers, and administrators; and
            ``(5) provide students with access to school libraries 
        during nonschool hours, including the hours before and after 
        school, during weekends, and during summer vacation periods.
    ``(g) Accountability and Continuation of Funds.--Each local 
educational agency that receives funding under this section for a 
fiscal year shall be eligible to continue to receive the funding for a 
third or subsequent fiscal year only if the local educational agency 
demonstrates to the State educational agency that the local educational 
agency has increased--
            ``(1) the availability of, and the access to, up-to-date 
        school library media resources in the elementary schools and 
        secondary schools served by the local educational agency; and
            ``(2) the number of well-trained, professionally certified 
        school library media specialists in those schools.
    ``(h) Applicability.--The provisions of this subpart (other than 
this section) shall not apply to this section.
    ``(i) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant other Federal, 
State, and local funds expended to carry out activities relating to 
library, technology, or professional development activities.
    ``(j) National Activities.--From the total amount made available 
under subsection (d) for each fiscal year, the Secretary shall reserve 
not more than 1 percent for annual, independent, national evaluations 
of the activities assisted under this section. The evaluations shall be 
conducted not later than 3 years after the date of enactment of the 
Better Education for Students and Teachers Act, and each year 
thereafter.

``SEC. 1230. DEFINITIONS.

    ``For purposes of this subpart:
            ``(1) Eligible professional development provider.--The term 
        `eligible professional development provider' means a provider 
        of professional development in reading instruction to teachers 
        that is based on scientifically based reading research.
            ``(2) Instructional staff.--The term `instructional 
        staff'--
                    ``(A) means individuals who have responsibility for 
                teaching children to read; and
                    ``(B) includes principals, teachers, supervisors of 
                instruction, librarians, library school media 
                specialists, teachers of academic subjects other than 
                reading, and other individuals who have responsibility 
                for assisting children to learn to read.
            ``(3) Major components of reading instruction.--The term 
        `major components of reading instruction' means systematic 
        instruction that includes--
                    ``(A) phonemic awareness;
                    ``(B) phonics;
                    ``(C) vocabulary development;
                    ``(D) reading fluency; and
                    ``(E) reading comprehension strategies.
            ``(4) Reading.--The term `reading' means a complex system 
        of deriving meaning from print that requires all of the 
        following:
                    ``(A) The skills and knowledge to understand how 
                phonemes, or speech sounds, are connected to print.
                    ``(B) The ability to decode unfamiliar words.
                    ``(C) The ability to read fluently.
                    ``(D) Sufficient background information and 
                vocabulary to foster reading comprehension.
                    ``(E) The development of appropriate active 
                strategies to construct meaning from print.
                    ``(F) The development and maintenance of a 
                motivation to read.
            ``(5) Rigorous diagnostic reading assessment.--The term 
        `rigorous diagnostic reading assessment' means a diagnostic 
        reading assessment that--
                    ``(A) is valid, reliable, and grounded in 
                scientifically based reading research;
                    ``(B) measures progress in phonemic awareness and 
                phonics, vocabulary development, reading fluency, or 
                reading comprehension; and
                    ``(C) identifies students who may be at risk for 
                reading failure or who are having difficulty reading.
            ``(6) Scientifically based reading research.--The term 
        `scientifically based reading research'--
                    ``(A) means research that applies rigorous, 
                systematic, and objective procedures to obtain valid 
                knowledge relevant to reading development, reading 
                instruction, and reading difficulties; and
                    ``(B) shall include research that--
                            ``(i) employs systematic, empirical methods 
                        that draw on observation or experiment;
                            ``(ii) involves rigorous data analyses that 
                        are adequate to test the stated hypotheses and 
                        justify the general conclusions drawn;
                            ``(iii) relies on measurements or 
                        observational methods that provide valid data 
                        across evaluators and observers and across 
                        multiple measurements and observations; and
                            ``(iv) has been accepted by a peer-reviewed 
                        journal or approved by a panel of independent 
                        experts through a comparably rigorous, 
                        objective, and scientific review.''.

SEC. 122. EARLY READING INITIATIVE.

    Part B of title I (20 U.S.C. 6361 et seq.) is amended further by 
adding at the end the following:

                    ``Subpart 3--Early Reading First

``SEC. 1241. PURPOSES.

    ``The purposes of this subpart are as follows:
            ``(1) To support local efforts to enhance the early 
        language, literacy, and prereading development of preschool age 
        children, particularly those from low-income families, through 
        strategies and professional development that are based on 
        scientifically based research.
            ``(2) To provide preschool age children with cognitive 
        learning opportunities in high-quality language and literature-
        rich environments, so that the children can attain the 
        fundamental knowledge and skills necessary for optimal reading 
        development in kindergarten and beyond.
            ``(3) To demonstrate language and literacy activities based 
        on scientifically based research that support the age-
        appropriate development of--
                    ``(A) spoken language and oral comprehension 
                abilities;
                    ``(B) understanding that spoken language can be 
                analyzed into discrete words, and awareness that words 
                can be broken into sequences of syllables and phonemes;
                    ``(C) automatic recognition of letters of the 
                alphabet and understanding that letters or groups of 
                letters systematically represent the component sounds 
                of the language; and
                    ``(D) knowledge of the purposes and conventions of 
                print.
            ``(4) To integrate these learning opportunities with 
        learning opportunities at preschools, child care agencies, and 
        Head Start agencies, and with family literacy services.

``SEC. 1242. LOCAL EARLY READING FIRST GRANTS.

    ``(a) Program Authorized.--From amounts appropriated under section 
1002(b)(3), the Secretary shall award grants, on a competitive basis, 
for periods of not more than 5 years, to eligible applicants to enable 
the eligible applicants to carry out the authorized activities 
described in subsection (e).
    ``(b) Definition of Eligible Applicant.--In this subpart the term 
`eligible applicant' means--
            ``(1) one or more local educational agencies that are 
        eligible to receive a subgrant under subpart 2;
            ``(2) one or more public or private organizations or 
        agencies, acting on behalf of 1 or more programs that serve 
        preschool age children (such as a program at a Head Start 
        center, a child care program, or a family literacy program), 
        which organizations or agencies shall be located in a community 
        served by a local educational agency described in paragraph 
        (1); or
            ``(3) one or more local educational agencies described in 
        paragraph (1) in collaboration with one or more organizations 
        or agencies described in paragraph (2).
    ``(c) Applications.--An eligible applicant that desires to receive 
a grant under this section shall submit an application to the Secretary 
which shall include a description of--
            ``(1) the programs to be served by the proposed project, 
        including demographic and socioeconomic information on the 
        preschool age children enrolled in the programs;
            ``(2) how the proposed project will prepare and provide 
        ongoing assistance to staff in the programs, through 
        professional development and other support, to provide high-
        quality language, literacy and prereading activities using 
        scientifically based research, for preschool age children;
            ``(3) how the proposed project will provide services and 
        utilize materials that are based on scientifically based 
        research on early language acquisition, prereading activities, 
        and the development of spoken language skills;
            ``(4) how the proposed project will help staff in the 
        programs to meet the diverse needs of preschool age children in 
        the community better, including such children with limited 
        English proficiency, disabilities, or other special needs;
            ``(5) how the proposed project will help preschool age 
        children, particularly such children experiencing difficulty 
        with spoken language, prereading, and literacy skills, to make 
        the transition from preschool to formal classroom instruction 
        in school;
            ``(6) if the eligible applicant has received a subgrant 
        under subpart 2, how the activities conducted under this 
        subpart will be coordinated with the eligible applicant's 
        activities under subpart 2 at the kindergarten through third-
        grade level;
            ``(7) how the proposed project will evaluate the success of 
        the activities supported under this subpart in enhancing the 
        early language, literacy, and prereading development of 
        preschool age children served by the project; and
            ``(8) such other information as the Secretary may require.
    ``(d) Approval of Applications.--The Secretary shall select 
applicants for funding under this subpart on the basis of the quality 
of the applications, in consultation with the National Institute for 
Child Health and Human Development, the National Institute for 
Literacy, and the National Academy of Sciences. The Secretary shall 
select applications for approval under this subpart on the basis of a 
peer review process.
    ``(e) Authorized Activities.-- An eligible applicant that receives 
a grant under this subpart shall use the funds provided under the grant 
to carry out the following activities:
                    ``(A) Providing preschool age children with high-
                quality oral language and literature-rich environments 
                in which to acquire language and prereading skills.
                    ``(B) Providing professional development that is 
                based on scientifically based research knowledge of 
                early language and reading development for the staff of 
                the eligible applicant and that will assist in 
                developing the preschool age children's--
                            ``(i) spoken language (including 
                        vocabulary, the contextual use of speech, and 
                        syntax) and oral comprehension abilities;
                            ``(ii) understanding that spoken language 
                        can be analyzed into discrete words, and 
                        awareness that words can be broken into 
                        sequences of syllables and phonemes;
                            ``(iii) automatic recognition of letters of 
                        the alphabet and understanding that letters or 
                        groups of letters systematically represent the 
                        component sounds of the language; and
                            ``(iv) knowledge of the purposes and 
                        conventions of print.
                    ``(C) Identifying and providing activities and 
                instructional materials that are based on 
                scientifically based research for use in developing the 
                skills and abilities described in subparagraph (B).
                    ``(D) Acquiring, providing training for, and 
                implementing screening tools or other appropriate 
                measures that are based on scientifically based 
                research to determine whether preschool age children 
                are developing the skills described in this subsection.
                    ``(E) Integrating such instructional materials, 
                activities, tools, and measures into the programs 
                offered by the eligible applicant.
    ``(f) Award Amounts.--The Secretary may establish a maximum award 
amount, or ranges of award amounts, for grants under this subpart.

``SEC. 1243. FEDERAL ADMINISTRATION.

    ``The Secretary shall consult with the Secretary of Health and 
Human Services in order to coordinate the activities undertaken under 
this subpart with preschool age programs administered by the Department 
of Health and Human Services.

``SEC. 1244. INFORMATION DISSEMINATION.

    ``From the funds the National Institute for Literacy receives under 
section 1228, the National Institute for Literacy, in consultation with 
the Secretary, shall disseminate information regarding projects 
assisted under this subpart that have proven effective.

``SEC. 1245. REPORTING REQUIREMENTS.

    ``Each eligible applicant receiving a grant under this subpart 
shall report annually to the Secretary regarding the eligible 
applicant's progress in addressing the purposes of this subpart. Such 
report shall include, at a minimum, a description of--
            ``(1) the activities, materials, tools, and measures used 
        by the eligible applicant;
            ``(2) the professional development activities offered to 
        the staff of the eligible applicant who serve preschool age 
        children and the amount of such professional development;
            ``(3) the types of programs and ages of children served; 
        and
            ``(4) the results of the evaluation described in section 
        1242(c)(7).

``SEC. 1246. EVALUATIONS.

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

``SEC. 1247. ADDITIONAL RESEARCH.

    ``From the amount appropriated under section 1002(b)(3) for each of 
the fiscal years 2002 through 2006, the Secretary shall reserve not 
more than $3,000,000 to conduct, in consultation with National 
Institute for Child Health and Human Development, the National 
Institute for Literacy, and the Department of Health and Human 
Services, additional research on language and literacy development for 
preschool age children.''.

                PART C--EDUCATION OF MIGRATORY CHILDREN

SEC. 131. PROGRAM PURPOSE.

    Section 1301 (20 U.S.C. 6391) is amended--
            (1) by redesignating paragraphs (2) through (5) as 
        paragraphs (3) through (7), respectively;
            (2) by inserting after paragraph (1) the following:
            ``(2) ensure that migratory children who move among the 
        States are not penalized in any manner by disparities among the 
        States in curriculum, graduation requirements, and State 
        student performance and content standards;'';
            (3) in paragraph (5) (as so redesignated), by striking 
        ``and'' after the semicolon;
            (4) in paragraph (6) (as so redesignated), by striking the 
        period and inserting ``; and''; and
            (5) by adding at the end the following:
            ``(7) ensure that migratory children receive full and 
        appropriate opportunities to meet the same challenging State 
        content and student performance standards that all children are 
        expected to meet.''.

SEC. 132. STATE APPLICATION.

    Section 1304 (20 U.S.C. 6394) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``a 
                comprehensive'' and all that follows through ``1306;'' 
                and inserting ``the full range of services that are 
                available for migratory children from appropriate 
                local, State, and Federal educational programs;'';
                    (B) by redesignating paragraphs (2) through (6) as 
                paragraphs (3) through (7), respectively; and
                    (C) by inserting after paragraph (1) the following:
            ``(2) a description of joint planning efforts that will be 
        made with respect to programs assisted under this Act, local, 
        State, and Federal programs, and bilingual education programs 
        under subpart 1 of part A of title III;''; and
            (2) in subsection (c), by amending paragraph (3) to read as 
        follows:
            ``(3) in the planning and operation of programs and 
        projects at both the State and local agency operating level 
        there is consultation with parent advisory councils for 
        programs of one school year in duration, and that all such 
        programs and projects are carried out--
                    ``(A) in a manner consistent with section 1118 
                unless extraordinary circumstances make implementation 
                with such section impractical; and
                    ``(B) in a format and language understandable to 
                the parents;''.

SEC. 133. COMPREHENSIVE PLAN.

    (a) Comprehensive Plan.--Section 1306(a)(1) (20 U.S.C. 6396(a)(1)) 
is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``the Goals 2000: Educate America 
                Act,''; and
                    (B) by striking ``14306'' and inserting ``5506''; 
                and
            (2) in subparagraph (B), by striking ``14302;'' and 
        inserting ``5502, if--
                            ``(i) the special needs of migratory 
                        children are specifically addressed in the 
                        comprehensive State plan;
                            ``(ii) the comprehensive State plan is 
                        developed in collaboration with parents of 
                        migratory children; and
                            ``(iii) the comprehensive State planning is 
                        not used to supplant State efforts regarding, 
                        or administrative funding for, this part;''.
    (b) Authorized Activities.--Section 1306(b)(3) (20 U.S.C. 
6396(b)(3)) is amended by inserting ``, and shall meet the special 
educational needs of migrant children before using funds under this 
part for schoolwide programs under section 1114'' before the period.

SEC. 134. COORDINATION.

    Section 1308 (20 U.S.C. 6398) is amended--
            (1) by amending subsection (b) to read as follows:
    ``(b) Access to Information on Migrant Students.--
            ``(1) Information system.--(A) The Secretary shall 
        establish an information system for electronically exchanging, 
        among the States, health and educational information regarding 
        all students served under this part. Such information may 
        include--
                    ``(i) immunization records and other health 
                information;
                    ``(ii) elementary and secondary academic history 
                (including partial credit), credit accrual, and results 
                from State assessments required under this title;
                    ``(iii) other academic information essential to 
                ensuring that migrant children achieve to high 
                standards; and
                    ``(iv) eligibility for services under the 
                Individuals with Disabilities Education Act.
            ``(B) The Secretary shall publish, not later than 120 days 
        after the date of enactment of the Better Education for 
        Students and Teachers Act, a notice in the Federal Register 
        seeking public comment on the proposed data elements that each 
        State receiving funds under this part shall be required to 
        collect for purposes of electronic transfer of migrant student 
        information, the requirements for immediate electronic access 
        to such information, and the educational agencies eligible to 
        access such information.
            ``(C) Such system of electronic access to migrant student 
        information shall be operational not later than 1 year after 
        the date of enactment of the Better Education for Students and 
        Teachers Act.
            ``(D) For the purpose of carrying out this subsection in 
        any fiscal year, the Secretary shall reserve not more than 
        $10,000,000 of the amount appropriated to carry out this part 
        for such year.
            ``(2) Report to congress.--(A) Not later than April 30, 
        2003, the Secretary shall report to the Committee on Health, 
        Education, Labor, and Pensions of the Senate and the Committee 
        on Education and the Workforce of the House of Representatives 
        the Secretary's findings and recommendations regarding services 
        under this part, and shall include in this report, 
        recommendations for the interim measures that may be taken to 
        ensure continuity of services under this part.
            ``(B) The Secretary shall assist States in developing 
        effective methods for the transfer of student records and in 
        determining the number of students or full-time equivalent 
        students in each State if such interim measures are 
        required.''.
            (2) in subsection (c), by striking ``$6,000,000'' and 
        inserting ``$10,000,000'';
            (3) in subsection (d)(1), by striking ``$1,500,000'' and 
        inserting ``$3,000,000''; and
            (4) by adding at the end the following:
    ``(e) Data Collection.--The Secretary shall direct the National 
Center for Education Statistics to collect data on migratory 
children.''.

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

SEC. 141. INITIATIVES FOR NEGLECTED, DELINQUENT, OR AT RISK YOUTH.

    Part D of title I (20 U.S.C. 6421 et seq.) is amended to read as 
follows:

  ``PART D--INITIATIVES FOR NEGLECTED, DELINQUENT, OR AT RISK STUDENTS

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

``SEC. 1401. PURPOSE; PROGRAM AUTHORIZED.

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

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

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

                   ``Chapter 1--State Agency Programs

``SEC. 1411. ELIGIBILITY.

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

``SEC. 1412. ALLOCATION OF FUNDS.

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

``SEC. 1413. STATE REALLOCATION OF FUNDS.

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

``SEC. 1414. STATE PLAN AND STATE AGENCY APPLICATIONS.

    ``(a) State Plan.--
            ``(1) In general.--Each State educational agency that 
        desires to receive a grant under this chapter shall submit, for 
        approval by the Secretary, a plan for meeting the needs of 
        neglected and delinquent children and youth and, where 
        applicable, children and youth at risk of dropping out of 
        school, that is integrated with other programs under this Act, 
        or other Acts, as appropriate, consistent with section 5506.
            ``(2) Contents.--Each such State plan shall--
                    ``(A) describe the program goals, objectives, and 
                performance measures established by the State that will 
                be used to assess the effectiveness of the program in 
                improving academic and vocational skills of children in 
                the program;
                    ``(B) provide that, to the extent feasible, such 
                children will have the same opportunities to learn as 
                such children would have if such children were in the 
                schools of local educational agencies in the State; and
                    ``(C) contain assurances that the State educational 
                agency will--
                            ``(i) ensure that programs assisted under 
                        this subpart will be carried out in accordance 
                        with the State plan described in this 
                        subsection;
                            ``(ii) carry out the evaluation 
                        requirements of section 1431;
                            ``(iii) ensure that the State agencies 
                        receiving subgrants under this chapter comply 
                        with all applicable statutory and regulatory 
                        requirements; and
                            ``(iv) provide such other information as 
                        the Secretary may reasonably require.
            ``(3) Duration of the plan.--Each State plan shall--
                    ``(A) remain in effect for the duration of the 
                State's participation under this subpart; and
                    ``(B) be periodically reviewed and revised by the 
                State, as necessary, to reflect changes in the State's 
                strategies and programs under this subpart.
    ``(b) Secretarial Approval; Peer Review.--
            ``(1) In general.--The Secretary shall approve each State 
        plan that meets the requirements of this part.
            ``(2) Peer review.--The Secretary may review any State plan 
        with the assistance and advice of individuals with relevant 
        expertise.
    ``(c) State Agency Applications.--Any State agency that desires to 
receive funds to carry out a program under this chapter shall submit an 
application to the State educational agency that--
            ``(1) describes the procedures to be used, consistent with 
        the State plan under section 1111, to assess the educational 
        needs of the children to be served;
            ``(2) provides assurances that in making services available 
        to youth in adult correctional institutions, priority will be 
        given to such youth who are likely to complete incarceration 
        within a 2-year period;
            ``(3) describes the program, including a budget for the 
        first year of the program, with annual updates to be provided 
        to the State educational agency;
            ``(4) describes how the program will meet the goals and 
        objectives of the State plan;
            ``(5) describes how the State agency will consult with 
        experts and provide the necessary training for appropriate 
        staff, to ensure that the planning and operation of 
        institution-wide projects under section 1416 are of high 
        quality;
            ``(6) describes how the agency will carry out evaluation 
        activities and how the results of the most recent evaluation 
        are used to plan and improve the program;
            ``(7) includes data showing that the agency has maintained 
        the fiscal effort required of a local educational agency, in 
        accordance with section 4;
            ``(8) describes how the programs will be coordinated with 
        other appropriate State and Federal programs, such as programs 
        under title I of the Workforce Investment Act of 1998, 
        vocational education programs, State and local dropout 
        prevention programs, and special education programs;
            ``(9) describes how appropriate professional development 
        will be provided to teachers and other staff;
            ``(10) designates an individual in each affected 
        institution to be responsible for issues relating to the 
        transition of children and youth from the institution to 
        locally operated programs;
            ``(11) describes how the agency will, endeavor to 
        coordinate with businesses for training and mentoring for 
        participating children and youth;
            ``(12) provides assurances that the agency will assist in 
        locating alternative programs through which students can 
        continue their education if students are not returning to 
        school after leaving the correctional facility;
            ``(13) provides assurances that the agency will work with 
        parents to secure parents' assistance in improving the 
        educational achievement of their children and preventing their 
        children's further involvement in delinquent activities;
            ``(14) provides assurances that the agency works with 
        special education youth in order to meet an existing 
        individualized education program and an assurance that the 
        agency will notify the youth's local school if the youth--
                    ``(A) is identified as in need of special education 
                services while the youth is in the facility; and
                    ``(B) intends to return to the local school;
            ``(15) provides assurances that the agency will work with 
        youth who dropped out of school before entering the facility to 
        encourage the youth to reenter school once the term of the 
        youth has been completed or provide the youth with the skills 
        necessary to gain employment, continue the education of the 
        youth, or achieve a secondary school diploma or its recognized 
        equivalent if the youth does not intend to return to school;
            ``(16) provides assurances that teachers and other 
        qualified staff are also trained to work with children with 
        disabilities and other students with special needs taking into 
        consideration the unique needs of such students;
            ``(17) describes any additional services provided to 
        children and youth, such as career counseling, and assistance 
        in securing student loans and grants; and
            ``(18) provides assurances that the program under this 
        chapter will be coordinated with any programs operated under 
        the Juvenile Justice and Delinquency Prevention Act of 1974 or 
        other comparable programs, if applicable.

``SEC. 1415. USE OF FUNDS.

    ``(a) Uses.--
            ``(1) In general.--A State agency shall use funds received 
        under this chapter only for programs and projects that--
                    ``(A) are consistent with the State plan under 
                section 1414(a); and
                    ``(B) concentrate on providing participants with 
                the knowledge and skills needed to make a successful 
                transition to secondary school completion, further 
                education, or employment.
            ``(2) Programs and projects.--Such programs and projects--
                    ``(A) may include the acquisition of equipment;
                    ``(B) shall be designed to support educational 
                services that--
                            ``(i) except for institution-wide projects 
                        under section 1416, are provided to children 
                        and youth identified by the State agency as 
                        failing, or most at risk of failing, to meet 
                        the State's challenging State content standards 
                        and challenging State student performance 
                        standards;
                            ``(ii) supplement and improve the quality 
                        of the educational services provided to such 
                        children and youth by the State agency; and
                            ``(iii) afford such children and youth an 
                        opportunity to learn to such challenging State 
                        standards;
                    ``(C) shall be carried out in a manner consistent 
                with section 1120A and part H of title I; and
                    ``(D) may include the costs of evaluation 
                activities.
    ``(b) Supplement, Not Supplant.--A program under this chapter that 
supplements the number of hours of instruction students receive from 
State and local sources shall be considered to comply with the 
supplement, not supplant requirement of section 1120A without regard to 
the subject areas in which instruction is given during those hours.

``SEC. 1416. INSTITUTION-WIDE PROJECTS.

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

``SEC. 1417. THREE-YEAR PROGRAMS OR PROJECTS.

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

``SEC. 1418. TRANSITION SERVICES.

    ``(a) Transition Services.--Each State agency shall reserve not 
less than 5 percent and not more than 30 percent of the amount such 
agency receives under this chapter for any fiscal year to support--
            ``(1) projects that facilitate the transition of children 
        and youth from State-operated institutions to local educational 
        agencies; or
            ``(2) the successful reentry of youth offenders, who are 
        age 20 or younger and have received a secondary school diploma 
        or its recognized equivalent, into postsecondary education and 
        vocational training programs through strategies designed to 
        expose the youth to, and prepare the youth for, postsecondary 
        education and vocational training programs, such as--
                    ``(A) preplacement programs that allow adjudicated 
                or incarcerated students to audit or attend courses on 
                college, university, or community college campuses, or 
                through programs provided in institutional settings; 
                    ``(B) worksite schools, in which institutions of 
                higher education and private or public employers 
                partner to create programs to help students make a 
                successful transition to postsecondary education and 
                employment;
                    ``(C) essential support services to ensure the 
                success of the youth, such as--
                            ``(i) personal, vocational, and academic 
                        counseling;
                            ``(ii) placement services designed to place 
                        the youth in a university, college, or junior 
                        college program;
                            ``(iii) health services;
                            ``(iv) information concerning, and 
                        assistance in obtaining, available student 
                        financial aid;
                            ``(v) exposure to cultural events; and
                            ``(vi) job placement services.
    ``(b) Conduct of Projects.--A project supported under this section 
may be conducted directly by the State agency, or through a contract or 
other arrangement with one or more local educational agencies, other 
public agencies, or private nonprofit organizations.
    ``(c) Construction.--Nothing in this section shall be construed to 
prohibit a school that receives funds under subsection (a) from serving 
neglected and delinquent children and youth simultaneously with 
students with similar educational needs, in the same educational 
settings where appropriate.

``SEC. 1419. EVALUATION; TECHNICAL ASSISTANCE; ANNUAL MODEL PROGRAM.

    ``The Secretary shall reserve not more than 5 percent of the amount 
made available to carry out this chapter for a fiscal year--
            ``(1) to develop a uniform model to evaluate the 
        effectiveness of programs assisted under this chapter;
            ``(2) to provide technical assistance to and support the 
        capacity building of State agency programs assisted under this 
        chapter; and
            ``(3) to create an annual model correctional youthful 
        offender program event under which a national award is given to 
        programs assisted under this chapter which demonstrate program 
        excellence in--
                    ``(A) transition services for reentry in and 
                completion of regular or other education programs 
                operated by a local educational agency;
                    ``(B) transition services to job training programs 
                and employment, utilizing existing support programs 
                such as One Stop Career Centers;
                    ``(C) transition services for participation in 
                postsecondary education programs;
                    ``(D) the successful reentry into the community; 
                and
                    ``(E) the impact on recidivism reduction for 
                juvenile and adult programs.

                   ``Chapter 2--Local Agency Programs

``SEC. 1421. PURPOSE.

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

``SEC. 1422. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

    ``(a) Local Subgrants.--With funds made available under section 
1412(b), the State educational agency shall award subgrants to local 
educational agencies with high numbers or percentages of youth residing 
in locally operated (including county operated) correctional facilities 
for youth (including facilities involved in community day programs).
    ``(b) Special Rule.--A local educational agency which includes a 
correctional facility that operates a school is not required to operate 
a dropout prevention program if more than 30 percent of the youth 
attending such facility will reside outside the boundaries of the local 
educational agency upon leaving such facility.
    ``(c) Notification.--A State educational agency shall notify local 
educational agencies within the State of the eligibility of such 
agencies to receive a subgrant under this chapter.

``SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

    ``Eligible local educational agencies desiring assistance under 
this chapter shall submit an application to the State educational 
agency, containing such information as the State educational agency may 
require. Each such application shall include--
            ``(1) a description of the program to be assisted;
            ``(2) a description of formal agreements between--
                    ``(A) the local educational agency; and
                    ``(B) correctional facilities and alternative 
                school programs serving youth involved with the 
                juvenile justice system to operate programs for 
                delinquent youth;
            ``(3) as appropriate, a description of how participating 
        schools will coordinate with facilities working with delinquent 
        youth to ensure that such youth are participating in an 
        education program comparable to one operating in the local 
        school such youth would attend;
            ``(4) as appropriate, a description of the dropout 
        prevention program operated by participating schools and the 
        types of services such schools will provide to at-risk youth in 
        participating schools and youth returning from correctional 
        facilities;
            ``(5) as appropriate, a description of the youth expected 
        to be served by the dropout prevention program and how the 
        school will coordinate existing educational programs to meet 
        unique education needs;
            ``(6) as appropriate, a description of how schools will 
        coordinate with existing social and health services to meet the 
        needs of students at risk of dropping out of school and other 
        participating students, including prenatal health care and 
        nutrition services related to the health of the parent and 
        child, parenting and child development classes, child care, 
        targeted re-entry and outreach programs, referrals to community 
        resources, and scheduling flexibility;
            ``(7) as appropriate, a description of any partnerships 
        with local businesses to develop training and mentoring 
        services for participating students;
            ``(8) as appropriate, a description of how the program will 
        involve parents in efforts to improve the educational 
        achievement of their children, assist in dropout prevention 
        activities, and prevent the involvement of their children in 
        delinquent activities;
            ``(9) a description of how the program under this chapter 
        will be coordinated with other Federal, State, and local 
        programs, such as programs under title I of the Workforce 
        Investment Act of 1998 and vocational education programs 
        serving at-risk youth;
            ``(10) a description of how the program will be coordinated 
        with programs operated under the Juvenile Justice and 
        Delinquency Prevention Act of 1974 and other comparable 
        programs, if applicable;
            ``(11) as appropriate, a description of how schools will 
        work with probation officers to assist in meeting the needs of 
        youth returning from correctional facilities;
            ``(12) a description of efforts participating schools will 
        make to ensure correctional facilities working with youth are 
        aware of a child's existing individualized education program; 
        and
            ``(13) as appropriate, a description of the steps 
        participating schools will take to find alternative placements 
        for youth interested in continuing their education but unable 
        to participate in a regular public school program.

``SEC. 1424. USES OF FUNDS.

    ``Funds provided to local educational agencies under this chapter 
may be used, where appropriate, for--
            ``(1) dropout prevention programs which serve youth at 
        educational risk, including pregnant and parenting teens, youth 
        who have come in contact with the juvenile justice system, 
        youth at least one year behind their expected grade level, 
        migrant youth, immigrant youth, students with limited-English 
        proficiency and gang members;
            ``(2) the coordination of health and social services for 
        such individuals if there is a likelihood that the provision of 
        such services, including day care and drug and alcohol 
        counseling, will improve the likelihood such individuals will 
        complete their education; and
            ``(3) programs to meet the unique education needs of youth 
        at risk of dropping out of school, which may include vocational 
        education, special education, career counseling, and assistance 
        in securing student loans or grants.

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

    ``Each correctional facility having an agreement with a local 
educational agency under section 1423(2) to provide services to youth 
under this chapter shall--
            ``(1) where feasible, ensure educational programs in 
        juvenile facilities are coordinated with the student's home 
        school, particularly with respect to special education students 
        with an individualized education program;
            ``(2) notify the local school of a youth if the youth is 
        identified as in need of special education services while in 
        the facility;
            ``(3) where feasible, provide transition assistance to help 
        the youth stay in school, including coordination of services 
        for the family, counseling, assistance in accessing drug and 
        alcohol abuse prevention programs, tutoring, and family 
        counseling;
            ``(4) provide support programs which encourage youth who 
        have dropped out of school to reenter school once their term 
        has been completed or provide such youth with the skills 
        necessary for such youth to gain employment or seek a secondary 
        school diploma or its recognized equivalent;
            ``(5) work to ensure such facilities are staffed with 
        teachers and other qualified staff who are trained to work with 
        children with disabilities and other students with special 
        needs taking into consideration the unique needs of such 
        children and students;
            ``(6) ensure educational programs in correctional 
        facilities are related to assisting students to meet high 
        educational standards;
            ``(7) use, to the extent possible, technology to assist in 
        coordinating educational programs between the juvenile facility 
        and the community school;
            ``(8) where feasible, involve parents in efforts to improve 
        the educational achievement of their children and prevent the 
        further involvement of such children in delinquent activities;
            ``(9) coordinate funds received under this program with 
        other local, State, and Federal funds available to provide 
        services to participating youth, such as funds made available 
        under title I of the Workforce Investment Act of 1998, and 
        vocational education funds;
            ``(10) coordinate programs operated under this chapter with 
        activities funded under the Juvenile Justice and Delinquency 
        Prevention Act of 1974 and other comparable programs, if 
        applicable; and
            ``(11) if appropriate, work with local businesses to 
        develop training and mentoring programs for participating 
        youth.

``SEC. 1426. ACCOUNTABILITY.

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

                    ``Chapter 3--General Provisions

``SEC. 1431. PROGRAM EVALUATIONS.

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

``SEC. 1432. DEFINITIONS.

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

                 PART E--NATIONAL ASSESSMENT OF TITLE I

SEC. 151. NATIONAL ASSESSMENT OF TITLE I.

    Section 1501 (20 U.S.C. 6491) is deleted and replaced with the 
following:

``SEC. 1501. NATIONAL ASSESSMENT OF TITLE I.

    ``(a) National Assessment.--The Secretary shall conduct a national 
assessment of the impact of the policies enacted into law under title I 
of the Better Education for Students and Teachers Act on States, local 
educational agencies, schools, and students.
            ``(1) Such assessment shall be planned, reviewed, and 
        conducted in consultation with an independent panel of 
        researchers, State practitioners, local practitioners, and 
        other appropriate individuals.
            ``(2) The assessment shall examine, at a minimum, how 
        schools, local educational agencies, and States have--
                    ``(A) made progress towards the goal of all 
                students reaching the proficient level in at least 
                reading and math based on a State's content and 
                performance standards and the State assessments 
                required under section 1111 and on the National 
                Assessment of Educational Progress;
                    ``(B) implemented scientifically-based reading 
                instruction;
                    ``(C) implemented the requirements for the 
                development of assessments for students in grades 3-8 
                and administered such assessments, including the time 
                and cost required for their development and how well 
                they meet the requirements for assessments described in 
                this title;
                    ``(D) defined adequate yearly progress and what has 
                been the impact of applying this standard for adequacy 
                to schools, local educational agencies, and the State 
                in terms of the numbers not meeting the standard and 
                the year to year changes in such identification for 
                individual schools and local educational agencies;
                    ``(E) publicized and disseminated the local 
                educational agencies report cards to teachers, school 
                staff, students, and the community;
                    ``(F) implemented the school improvement 
                requirements described in section 1116, including--
                            ``(i) the number of schools identified for 
                        school improvement and how many years schools 
                        remain in this status;
                            ``(ii) the types of support provided by the 
                        State and local educational agencies to schools 
                        and local educational agencies identified as in 
                        need of improvement and the impact of such 
                        support on student achievement;
                            ``(iii) the number of parents who take 
                        advantage of the public school choice 
                        provisions of this title, the costs associated 
                        with implementing these provisions, and the 
                        impact of attending another school on student 
                        achievement;
                            ``(iv) the number of parents who choose to 
                        take advantage of the supplemental services 
                        option, the criteria used by the States to 
                        determine the quality of providers, the kinds 
                        of services that are available and utilized, 
                        the costs associated with implementing this 
                        option, and the impact of receiving 
                        supplemental services on student achievement; 
                        and
                            ``(v) the kinds of actions that are taken 
                        with regards to schools and local educational 
                        agencies identified for reconstitution.
                    ``(G) used funds under this title to improve 
                student achievement, including how schools have 
                provided either schoolwide improvement or targeted 
                assistance and provided professional development to 
                school personnel;
                    ``(H) used funds made available under this title to 
                provide preschool and family literacy services and the 
                impact of these services on students' school readiness;
                    ``(I) afforded parents meaningful opportunities to 
                be involved in the education of their children at 
                school and at home;
                    ``(J) distributed resources, including the State 
                reservation of funds for school improvement, to target 
                local educational agencies and schools with the 
                greatest need;
                    ``(K) used State and local educational agency funds 
                and resources to support schools and provide technical 
                assistance to turn around failing schools; and,
                    ``(L) used State and local educational agency funds 
                and resources to help schools with 50 percent or more 
                students living in families below the poverty line meet 
                the requirement of having all teachers fully qualified 
                in four years.
    ``(b) Student Achievement.--As part of the national assessment, the 
Secretary shall evaluate the effectiveness of the programs and services 
carried out under this title, especially part A, in improving student 
achievement. Such evaluation shall--
            ``(1) provide information on what types of programs and 
        services are most likely to help students reach the States' 
        performance standards for proficient and advanced;
            ``(2) examine the effectiveness of comprehensive school 
        reform and improvement strategies for raising student 
        achievement;
            ``(3) to the extent possible, have a longitudinal design 
        that tracks a representative sample of students over time; and
            ``(4) to the extent possible, report on the achievement of 
        the groups of students described in section 
        1111(b)(2)(B)(v)(II).
    ``(c) Developmentally Appropriate Measures.--In conducting the 
national assessment, the Secretary shall use developmentally 
appropriate measures to assess student performance.
    ``(d) Studies and Data Collection.--The Secretary may conduct 
studies and evaluations and collect such data as is necessary to carry 
out this section either directly or through grants and contracts to--
            ``(1) assess the implementation and effectiveness of 
        programs under this title;
            ``(2) collect the data necessary to comply with the 
        Government Performance and Results Act of 1993.
    ``(e) Reporting.--The Secretary shall provide to the relevant 
committees of the Senate and House--
            ``(1) by December 30, 2004, an interim report on the 
        progress and any interim results of the national assessment of 
        title I; and
            ``(2) by December 30, 2007, a final report of the results 
        of the assessment.''.

  PART F--21st CENTURY LEARNING CENTERS; COMPREHENSIVE SCHOOL REFORM; 
                       SCHOOL DROPOUT PREVENTION

SEC. 161. 21ST CENTURY LEARNING CENTERS; COMPREHENSIVE SCHOOL REFORM.

    Title I (20 U.S.C. 6301 et seq.) is amended--
            (1) by redesignating part F as part I;
            (2) by redesignating sections 1601 through 1604 as sections 
        1901 through 1904, respectively; and
            (3) by inserting after part E the following:

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

          ``Subpart 1--21st Century Community Learning Centers

``SEC. 1601. SHORT TITLE.

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

``SEC. 1602. PURPOSE.

    ``The purpose of this subpart is to provide opportunities to 
communities to establish or expand activities in community learning 
centers that--
            ``(1) provide opportunities for academic enrichment, 
        including providing tutorial services to help students, 
        particularly students who attend low-performing schools, to 
        meet State and local student performance standards in core 
        academic subjects, such as reading and mathematics;
            ``(2) offer students a broad array of additional services, 
        programs, and activities, such as youth development activities, 
        drug and violence prevention programs, art, music, and 
        recreation programs, technology education programs, and 
        character education programs, that are designed to reinforce 
        and complement the regular academic program of participating 
        students; and
            ``(3) offer families of students enrolled in community 
        learning centers opportunities for lifelong learning and 
        literacy development.

``SEC. 1603. DEFINITIONS.

    ``In this subpart:
            ``(1) Community learning center.--The term `community 
        learning center' is an entity that--
                    ``(A)(i) assists students to meet State content and 
                student performance standards in core academic 
                subjects, such as reading and mathematics, by primarily 
                providing to the students, during non-school hours or 
                periods when school is not in session, tutorial and 
                other academic enrichment services in addition to other 
                activities (such as youth development activities, drug 
                and violence prevention programs, art, music, and 
                recreation programs, technology education programs, and 
                character education programs) that reinforce and 
                complement the regular academic program of the 
                students; and
                    ``(ii) offers families of students enrolled in such 
                center opportunities for lifelong learning and literacy 
                development; and
                    ``(B) is operated by 1 or more local educational 
                agencies, community-based organizations, units of 
                general purpose local government, or other public or 
                private entities.
            ``(2) Covered program.--The term `covered program' means a 
        program for which--
                    ``(A) the Secretary made a grant under part I of 
                title X (as in effect on the day before the date of 
                enactment of the Better Education for Students and 
                Teachers Act); and
                    ``(B) the grant period had not ended on that date 
                of enactment.
            ``(3) Eligible organization.--The term `eligible 
        organization' means--
                    ``(A) a local educational agency, a community-based 
                organization, a unit of general purpose local 
                government, or another public or private entity; or
                    ``(B) a consortium of entities described in 
                subparagraph (A).
            ``(4) State.--The term `State' means the State educational 
        agency of a State (as defined in section 3).
            ``(5) Unit of general purpose local government.--The term 
        `unit of general purpose local government' means any city, 
        town, township, parish, village, or other general purpose 
        political subdivision.

``SEC. 1604. PROGRAM AUTHORIZED.

    ``The Secretary is authorized to award grants to States to make 
awards to eligible organizations to plan, implement, or expand 
community learning centers that serve--
            ``(1) students who primarily attend--
                    ``(A) schools eligible for schoolwide programs 
                under section 1114; or
                    ``(B) schools that serve a high percentage of 
                students from low-income families; and
            ``(2) the families of students described in paragraph (1).

``SEC. 1605. ALLOTMENTS TO STATES.

    ``(a) Reservation.--From the funds appropriated under section 
1002(g) for any fiscal year, the Secretary shall reserve--
            ``(1) such amount as may be necessary to make continuation 
        awards for covered programs to grant recipients under part I of 
        title X (under the terms of those grants), as in effect on the 
        day before the effective date of the Better Education for 
        Students and Teachers Act;
            ``(2) not more than 1 percent for national activities, 
        which the Secretary may carry out directly or through grants 
        and contracts, such as providing technical assistance to 
        organizations carrying out programs under this subpart or 
        conducting a national evaluation; and
            ``(3) not more than 1 percent for payments to the outlying 
        areas and the Bureau of Indian Affairs, to be allotted in 
        accordance with their respective needs for assistance under 
        this subpart, as determined by the Secretary, to enable the 
        areas and the Bureau to carry out the objectives of this 
        subpart.
    ``(b) State Allotments.--
            ``(1) Determination.--
                    ``(A) Basis.--From the funds appropriated under 
                section 1002(g) for any fiscal year and remaining after 
                the Secretary makes reservations under subsection (a), 
                the Secretary shall allot to each State for the fiscal 
                year an amount that bears the same relationship to the 
                remainder as the amount the State received under 
                subpart 2 of part A for the preceding fiscal year bears 
                to the amount all States received under that subpart 
                for the preceding fiscal year, except as provided in 
                subparagraph (B).
                    ``(B) Exception.--No State receiving an allotment 
                under subparagraph (A) may receive less than \1/2\ of 1 
                percent of the total amount allotted under subparagraph 
                (A) for a fiscal year.
    ``(2) Definition.--In this subsection, the term `State' means each 
of the 50 States, the District of Columbia, and the Commonwealth of 
Puerto Rico.

``SEC. 1606. STATE PLANS.

    ``Each State seeking a grant under this subpart shall submit to the 
Secretary a plan, which may be submitted as part of a State's 
consolidated plan under section 5502, at such time, in such manner, and 
containing such information as the Secretary may reasonably require. At 
a minimum, the plan shall--
            ``(1) describe how the State will use funds received under 
        this subpart, including funds reserved for State-level 
        activities;
            ``(2) contain an assurance that the State will make awards 
        under this subpart for eligible organizations only to eligible 
        organizations that propose to serve--
                    ``(A) students who primarily attend--
                            ``(i) schools eligible for schoolwide 
                        programs under section 1114; or
                            ``(ii) schools that serve a high percentage 
                        of students from low-income families; and
                    ``(B) the families of students described in 
                subparagraph (A);
            ``(3) describe the procedures and criteria the State will 
        use for reviewing applications and awarding funds to eligible 
        organizations on a competitive basis, which shall include 
        procedures and criteria that take into consideration the 
        likelihood that a proposed center will help participating 
        students meet local content and performance standards by 
        increasing their academic performance and achievement;
            ``(4) describe how the State will ensure that awards made 
        under this subpart are--
                    ``(A) of sufficient size and scope to support high-
                quality, effective programs that are consistent with 
                the purpose of this subpart; and
                    ``(B) in amounts that are consistent with section 
                1608(b);
            ``(5) contain an assurance that the State--
                    ``(A) will not make awards for programs that exceed 
                4 years;
                    ``(B) will ensure an equitable distribution of 
                awards among urban and rural areas of the State; and
                    ``(C) will require each eligible organization 
                seeking such an award to submit a plan describing how 
                the center to be funded through the award will continue 
                after funding under this subpart ends;
            ``(6) describe the State's performance measures for 
        programs carried out under this subpart, including measures 
        relating to increased academic performance and achievement, and 
        how the State will evaluate the effectiveness of those 
        programs;
            ``(7) contain an assurance that funds appropriated to carry 
        out this subpart will be used to supplement, and not supplant, 
        other Federal, State, and local public funds expended to 
        provide programs and activities authorized under this subpart; 
        and
            ``(8) contain an assurance that the State will require 
        eligible organizations to describe in their applications under 
        section 1609 how the transportation needs of participating 
        students will be addressed.

``SEC. 1607. STATE-LEVEL ACTIVITIES.

    ``(a) In General.--A State that receives an allotment under section 
1605 for a fiscal year shall use not more than 6 percent of the funds 
made available through the allotment for State-level activities 
described in paragraphs (1) and (2) of subsection (b).
    ``(b) Activities.--
            ``(1) Planning, peer review, and supervision.--The State 
        may use not more than 3 percent of the funds made available 
        through the allotment to pay for the costs of--
                    ``(A) establishing and implementing a peer review 
                process for applications described in section 1609 
                (including consultation with the Governor and other 
                State agencies responsible for administering youth 
                development programs and adult learning activities);
                    ``(B) supervising the awarding of funds to eligible 
                organizations (in consultation with the Governor and 
                other State agencies responsible for administering 
                youth development programs and adult learning 
                activities);
                    ``(C) planning and supervising the use of funds 
                made available under this subpart, and processing the 
                funds; and
                    ``(D) monitoring activities.
            ``(2) Evaluation, training, and technical assistance.--The 
        State may use not more than 3 percent of the funds made 
        available through the allotment to pay for the costs of--
                    ``(A) comprehensive evaluation (directly, or 
                through a grant or contract) of the effectiveness of 
                programs and activities provided under this subpart; 
                and
                    ``(B) providing training and technical assistance 
                to eligible organizations who are applicants or 
                recipients of awards under this subpart.

``SEC. 1608. AWARDS TO ELIGIBLE ORGANIZATIONS.

    ``(a) Awards.--A State that receives an allotment under section 
1605 for a fiscal year shall use not less than 94 percent of the funds 
made available through the allotment to make awards on a competitive 
basis to eligible organizations (including organizations and entities 
that carry out projects described in section 1609(d)).
    ``(b) Amounts.--The State shall make the awards in amounts of not 
less than $50,000.

``SEC. 1609. LOCAL APPLICATION.

    ``(a) Application.--To be eligible to receive an award under this 
subpart, an eligible organization shall submit an application to the 
State at such time, in such manner, and including such information as 
the State may reasonably require. Each such application shall include--
            ``(1) an evaluation of the needs, available resources, and 
        goals and objectives for the proposed community learning center 
        and a description of how the program proposed to be carried out 
        in the center will address those needs (including the needs of 
        working families); and
            ``(2) a description of the proposed community learning 
        center, including--
                    ``(A) a description of how the eligible 
                organization will ensure that the program proposed to 
                be carried out at the center will reinforce and 
                complement the instructional programs of the schools 
                that students served by the program attend;
                    ``(B) an identification of Federal, State, and 
                local programs that will be combined or coordinated 
                with the proposed program in order to make the most 
                effective use of public resources;
                    ``(C) an assurance that the proposed program was 
                developed, and will be carried out, in active 
                collaboration with the schools the students attend;
                    ``(D) evidence that the eligible organization has 
                experience, or demonstrates promise of success, in 
                providing educational and related activities that will 
                complement and enhance the students' academic 
                performance and achievement and positive youth 
                development;
                    ``(E) an assurance that the program will take place 
                in a safe and easily accessible school or other 
                facility;
                    ``(F) a description of how students participating 
                in the program carried out by the center will travel 
                safely to and from the center and home;
                    ``(G) a description of how the eligible 
                organization will disseminate information about the 
                program to the community in a manner that is 
                understandable and accessible;
                    ``(H) a description of a preliminary plan for how 
                the center will continue after funding under this 
                subpart ends; and
                    ``(I) an assurance that the eligible organization 
                will, to the maximum extent practicable, carry out the 
                proposed program with community-based organizations 
                that have experience in providing before and after 
                school programs, such as the Young Men's Christian 
                Association (YMCA), the Police Athletic and Activities 
                Leagues, Boys and Girls Clubs, and Big Brothers/Big 
                Sisters of America.
    ``(b) Priority.--In making awards under this subpart, the State 
shall give equal priority to applications--
            ``(1) submitted jointly by schools receiving funding under 
        part A and community-based organizations or other eligible 
        organizations;
            ``(2) submitted by such schools or consortia of such 
        schools; and
            ``(3) submitted by community-based organizations or other 
        eligible organizations serving communities in which such 
        schools are located.
    ``(c) Approval of Certain Applications.--The State may approve an 
application under this subpart for a program to be located in a 
facility other than an elementary school or secondary school, only if 
the program--
            ``(1) will be accessible to the students proposed in the 
        application to be served; and
            ``(2) will be as effective as the program would be if the 
        program were located in such a school.
    ``(d) After School Services.--Grant funds awarded under this 
subpart may be used by organizations or entities to implement programs 
to provide after school services for limited English proficient 
students that emphasize language and life skills.

               ``Subpart 2--Community Technology Centers

``SEC. 1611. PURPOSE; PROGRAM AUTHORITY.

    ``(a) Purpose.--It is the purpose of this subpart to assist 
eligible applicants to--
            ``(1) create or expand community technology centers that 
        will provide disadvantaged residents of economically distressed 
        urban and rural communities with access to information 
        technology and related training; and
            ``(2) provide technical assistance and support to community 
        technology centers.
    ``(b) Program Authority.--
            ``(1) In general.--The Secretary is authorized, through the 
        Office of Educational Technology, to award grants, contracts, 
        or cooperative agreements on a competitive basis to eligible 
        applicants in order to assist such applicants in--
                    ``(A) creating or expanding community technology 
                centers; or
                    ``(B) providing technical assistance and support to 
                community technology centers.
            ``(2) Period of award.--The Secretary may award grants, 
        contracts, or cooperative agreements under this subpart for a 
        period of not more than 3 years.
            ``(3) Service of americorps participants.--The Secretary 
        may collaborate with the Chief Executive Officer of the 
        Corporation for National and Community Service on the use of 
        participants in National Service programs carried out under 
        subtitle C of title I of the National and Community Service Act 
        of 1990 in community technology centers.

``SEC. 1612. ELIGIBILITY AND APPLICATION REQUIREMENTS.

    ``(a) Eligible Applicants.--In order to be eligible to receive an 
award under this subpart, an applicant shall--
            ``(1) have the capacity to expand significantly access to 
        computers and related services for disadvantaged residents of 
        economically distressed urban and rural communities (who would 
        otherwise be denied such access); and
            ``(2) be--
                    ``(A) an entity such as a foundation, museum, 
                library, for-profit business, public or private 
                nonprofit organization, or community-based 
                organization;
                    ``(B) an institution of higher education;
                    ``(C) a State educational agency;
                    ``(D) a local education agency; or
                    ``(E) a consortium of entities described in 
                subparagraphs (A), (B), (C), or (D).
    ``(b) Application Requirements.--In order to receive an award under 
this subpart, an eligible applicant shall submit an application to the 
Secretary at such time, and containing such information, as the 
Secretary may require. Such application shall include--
            ``(1) a description of the proposed project, including a 
        description of the magnitude of the need for the services and 
        how the project would expand access to information technology 
        and related services to disadvantaged residents of an 
        economically distressed urban or rural community;
            ``(2) a demonstration of--
                    ``(A) the commitment, including the financial 
                commitment, of entities such as institutions, 
                organizations, business and other groups in the 
                community that will provide support for the creation, 
                expansion, and continuation of the proposed project; 
                and
                    ``(B) the extent to which the proposed project 
                establishes linkages with other appropriate agencies, 
                efforts, and organizations providing services to 
                disadvantaged residents of an economically distressed 
                urban or rural community;
            ``(3) a description of how the proposed project would be 
        sustained once the Federal funds awarded under this subpart 
        end; and
            ``(4) a plan for the evaluation of the program, which shall 
        include benchmarks to monitor progress toward specific project 
        objectives.
    ``(c) Matching Requirements.--The Federal share of the cost of any 
project funded under this subpart shall not exceed 50 percent. The non-
Federal share of such project may be in cash or in kind, fairly 
evaluated, including services.

``SEC. 1613. USES OF FUNDS.

    ``(a) Required Uses.--A recipient shall use funds under this 
subpart for--
            ``(1) creating or expanding community technology centers 
        that expand access to information technology and related 
        training for disadvantaged residents of distressed urban or 
        rural communities; and
            ``(2) evaluating the effectiveness of the project.
    ``(b) Permissible Uses.--A recipient may use funds under this 
subpart for activities, described in its application, that carry out 
the purposes of this subpart, such as--
            ``(1) supporting a center coordinator, and staff, to 
        supervise instruction and build community partnerships;
            ``(2) acquiring equipment, networking capabilities, and 
        infrastructure to carry out the project; and
            ``(3) developing and providing services and activities for 
        community residents that provide access to computers, 
        information technology, and the use of such technology in 
        support of pre-school preparation, academic achievement, 
        lifelong learning, and workforce development, such as the 
        following:
                    ``(A) After-school activities in which children and 
                youths use software that provides academic enrichment 
                and assistance with homework, develop their technical 
                skills, explore the Internet, and participate in 
                multimedia activities, including web page design and 
                creation.
                    ``(B) Adult education and family literacy 
                activities through technology and the Internet, 
                including--
                            ``(i) General Education Development, 
                        English as a Second Language, and adult basic 
                        education classes or programs;
                            ``(ii) introduction to computers;
                            ``(iii) intergenerational activities; and
                            ``(iv) lifelong learning opportunities.
                    ``(C) Career development and job preparation 
                activities, such as--
                            ``(i) training in basic and advanced 
                        computer skills;
                            ``(ii) resume writing workshops; and
                            ``(iii) access to databases of employment 
                        opportunities, career information, and other 
                        online materials.
                    ``(D) Small business activities, such as--
                            ``(i) computer-based training for basic 
                        entrepreneurial skills and electronic commerce; 
                        and
                            ``(ii) access to information on business 
                        start-up programs that is available online, or 
                        from other sources.
                    ``(E) Activities that provide home access to 
                computers and technology, such as assistance and 
                services to promote the acquisition, installation, and 
                use of information technology in the home through low-
                cost solutions such as networked computers, web-based 
                television devices, and other technology.

``SEC. 1614. AUTHORIZATION OF APPROPRIATIONS.

    ``For purposes of carrying out this subpart, there is authorized to 
be appropriated $100,000,000 for fiscal year 2002 and such sums as may 
be necessary for each of the 6 succeeding fiscal years.

                 ``PART G--COMPREHENSIVE SCHOOL REFORM

``SEC. 1701. PURPOSE.

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

``SEC. 1702. PROGRAM AUTHORIZATION.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to award 
        grants to State educational agencies, from allotments under 
        paragraph (2), to enable the State educational agencies to 
        award subgrants to local educational agencies to carry out the 
        purpose described in section 1701.
            ``(2) Allotments.--
                    ``(A) Reservations.--Of the amount appropriated 
                under section 1002(h) for a fiscal year, the Secretary 
                may reserve--
                            ``(i) not more than 1 percent to provide 
                        assistance to schools supported by the Bureau 
                        of Indian Affairs and in the United States 
                        Virgin Islands, Guam, American Samoa, and the 
                        Commonwealth of the Northern Mariana Islands 
                        according to their respective needs for 
                        assistance under this part;
                            ``(ii) not more than 1 percent to conduct 
                        national evaluation activities described in 
                        section 1707; and
                            ``(iii) 3 percent to promote quality 
                        initiatives described in section 1708.
                    ``(B) In general.--Of the amount appropriated under 
                section 1002(h) that remains after making the 
                reservation under subparagraph (A) for a fiscal year, 
                the Secretary shall allot to each State for the fiscal 
                year an amount that bears the same ratio to the 
                remainder for that fiscal year as the amount made 
                available under section 1124 to the State for the 
                preceding fiscal year bears to the total amount made 
                available under section 1124 to all States for that 
                year.
                    ``(C) Reallotment.--If a State does not apply for 
                funds under this section, the Secretary shall reallot 
                such funds to other States that do not apply in 
                proportion to the amount allotted to such other States 
                under subparagraph (B).

``SEC. 1703. STATE APPLICATIONS.

    ``(a) In General.--Each State educational agency that desires to 
receive a grant under this section shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may reasonably require.
    ``(b) Contents.--Each such application shall describe--
            ``(1) the process and selection criteria by which the State 
        educational agency, using expert review, will select local 
        educational agencies to receive subgrants under this section;
            ``(2) how the State educational agency will ensure that 
        funds under this part are limited to comprehensive school 
        reform programs that--
                    ``(A) include each of the components described in 
                section 1706(a);
                    ``(B) have the capacity to improve the academic 
                achievement of all students in core academic subjects 
                within participating schools; and
                    ``(C) are supported by technical assistance 
                providers that have a successful track record and the 
                capacity to deliver high quality materials, 
                professional development for school personnel and on-
                site support during the full implementation period of 
                the reforms;
            ``(3) how the State educational agency will disseminate 
        information on comprehensive school reforms that are based on 
        promising and effective practices and scientifically based 
        research programs;
            ``(4) how the State educational agency will annually 
        evaluate the implementation of such reforms and measure the 
        extent to which the reforms have resulted in increased student 
        academic performance; and
            ``(5) how the State educational agency will make available 
        technical assistance to a local educational agency or consortia 
        of local educational agencies in evaluating, developing, and 
        implementing comprehensive school reform.

``SEC. 1704. STATE USE OF FUNDS.

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

``SEC. 1705. LOCAL APPLICATIONS.

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

``SEC. 1706. LOCAL USE OF FUNDS.

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

``SEC. 1707. NATIONAL EVALUATION AND REPORTS.

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

``SEC. 1708. QUALITY INITIATIVES.

    ``The Secretary, through grants or contracts, shall promote--
            ``(1) a public-private effort, in which funds are matched 
        by the private sector, to assist States, local educational 
        agencies, and schools, in making informed decisions upon 
        approving or selecting providers of comprehensive school 
        reform, consistent with the requirements described in section 
        1706(a); and
            ``(2) activities to foster the development of comprehensive 
        school reform models and to provide effective capacity building 
        for comprehensive school reform providers to expand their work 
        in more schools, assure quality, and promote financial 
        stability.

                  ``PART H--SCHOOL DROPOUT PREVENTION

``SEC. 1801. SHORT TITLE.

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

``SEC. 1802. PURPOSE.

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

               ``Subpart 1--Coordinated National Strategy

``SEC. 1811. NATIONAL ACTIVITIES.

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

       ``Subpart 2--National School Dropout Prevention Initiative

``SEC. 1821. PROGRAM AUTHORIZED.

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

``SEC. 1822. STRATEGIES AND CAPACITY BUILDING.

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

``SEC. 1823. SELECTION OF SCHOOLS.

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

``SEC. 1824. DISSEMINATION ACTIVITIES.

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

``SEC. 1825. PROGRESS INCENTIVES.

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

``SEC. 1826. SCHOOL DROPOUT RATE CALCULATION.

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

``SEC. 1827. REPORTING AND ACCOUNTABILITY.

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

``SEC. 1828. STATE RESPONSIBILITIES.

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

       ``Subpart 3--Definitions; Authorization of Appropriations

``SEC. 1831. DEFINITIONS.

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

           PART G--EDUCATION FOR HOMELESS CHILDREN AND YOUTH

SEC. 171. STATEMENT OF POLICY.

    Section 721(3) of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11431(3)) is amended by striking ``should not be'' and 
inserting ``is not''.

SEC. 172. GRANTS FOR STATE AND LOCAL ACTIVITIES.

    Section 722 of such Act (42 U.S.C. 11432) is amended--
            (1) in subsection (c)--
                    (A) in paragraph (2)(A)--
                            (i) by inserting ``and'' after ``Samoa,''; 
                        and
                            (ii) by striking ``, and Palau'' and all 
                        that follows through ``Palau)''; and
                    (B) in paragraph (3)--
                            (i) by inserting ``or'' after ``Samoa,''; 
                        and
                            (ii) by striking ``, or Palau'';
            (2) in subsection (e), by adding at the end the following:
            ``(3) Prohibition on segregating homeless students.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) and section 723(a)(2)(B)(ii), in 
                providing a free public education to a homeless child 
                or youth, no State receiving funds under this subtitle 
                shall segregate such child or youth, either in a 
                separate school, or in a separate program within a 
                school, based on such child's or youth's status as 
                homeless.
                    ``(B) Exception.--Notwithstanding subparagraph (A), 
                paragraphs (1)(H) and (3) of subsection (g), section 
                723(a)(2), and any other provision of this subtitle 
                relating to the placement of homeless children or youth 
                in schools, a State that has a separate school for 
                homeless children or youth that was operated in fiscal 
                year 2000 in a covered county shall be eligible to 
                receive funds under this subtitle for programs carried 
                out in such school if--
                            ``(i) the school meets the requirements of 
                        subparagraph (C);
                            ``(ii) any local educational agency serving 
                        a school that the homeless children and youth 
                        enrolled in the separate school are eligible to 
                        attend meets the requirements of subparagraph 
                        (E); and
                            ``(iii) the State is otherwise eligible to 
                        receive funds under this subtitle.
                    ``(C) School requirements.--For the State to be 
                eligible to receive the funds, the school shall--
                            ``(i) provide written notice, at the time 
                        any child or youth seeks enrollment in such 
                        school, and at least twice annually while the 
                        child or youth is enrolled in such school, to 
                        the parent or guardian of the child or youth 
                        (or, in the case of an unaccompanied youth, the 
                        youth) that--
                                    ``(I) shall be signed by the parent 
                                or guardian (or, in the case of an 
                                unaccompanied youth, the youth);
                                    ``(II) reviews the general rights 
                                provided under this subtitle; and
                                    ``(III) specifically states--
                                            ``(aa) the choice of 
                                        schools homeless children and 
                                        youth are eligible to attend, 
                                        as provided in subsection 
                                        (g)(3)(A);
                                            ``(bb) that no homeless 
                                        child or youth is required to 
                                        attend a separate school for 
                                        homeless children or youth;
                                            ``(cc) that homeless 
                                        children and youth shall be 
                                        provided comparable services 
                                        described in subsection (g)(4), 
                                        including transportation 
                                        services, educational services, 
                                        and meals through school meals 
                                        programs;
                                            ``(dd) that homeless 
                                        children and youth should not 
                                        be stigmatized by school 
                                        personnel; and
                                            ``(ee) contact information 
                                        for the local liaison for 
                                        homeless children and youth and 
                                        State Coordinator for Education 
                                        of Homeless Children and Youth;
                            ``(ii)(aa) provide assistance to the parent 
                        or guardian of each homeless child or youth 
                        (or, in the case of an unaccompanied youth, the 
                        youth) to exercise the right to attend the 
                        parent's or guardian's (or youth's) choice of 
                        schools, as provided in subsection (g)(3)(A); 
                        and
                            ``(bb) coordinate with the local 
                        educational agency with jurisdiction for the 
                        school selected by the parent or guardian (or 
                        youth), to provide transportation and other 
                        necessary services;
                            ``(iii) ensure that the parent or guardian 
                        (or youth) shall receive the information 
                        required by this subparagraph in a manner and 
                        form understandable to such parent or guardian 
                        (or youth), including, if necessary and to the 
                        extent feasible, in the native language of such 
                        parent or guardian (or youth); and
                            ``(iv) demonstrate in the school's 
                        application for funds under this subtitle that 
                        such school--
                                    ``(I) is complying with clauses (i) 
                                and (ii); and
                                    ``(II) is meeting (as of the date 
                                of submission of the application) the 
                                same Federal and State standards, 
                                regulations, and mandates as other 
                                public schools in the State (such as 
                                complying with sections 1111 and 1116 
                                of the Elementary and Secondary 
                                Education Act of 1965 and providing a 
                                full range of education and related 
                                services, including services applicable 
                                to students with disabilities).
                    ``(D) School ineligibility.--A separate school 
                described in subparagraph (B) that fails to meet the 
                standards, regulations, and mandates described in 
                subparagraph (C)(iv)(II) shall not be eligible to 
                receive funds under this subtitle for programs carried 
                out in such school after the first date of such 
                failure.
                    ``(E) Local educational agency requirements.--For 
                the State to be eligible to receive the funds described 
                in subparagraph (B), the local educational agency 
                described in subparagraph (B) shall--
                            ``(i) implement a coordinated system for 
                        ensuring that homeless children and youth--
                                    ``(I) are advised of the choice of 
                                schools provided in subsection 
                                (g)(3)(A);
                                    ``(II) are immediately enrolled in 
                                the school selected in accordance with 
                                subsection (g)(3)(C); and
                                    ``(III) are provided necessary 
                                services, including transportation, 
                                promptly to allow homeless children and 
                                youth to exercise their choices of 
                                schools in accordance with subsection 
                                (g)(4);
                            ``(ii) document that written notice has 
                        been provided--
                                    ``(I) in accordance with 
                                subparagraph (C)(i) for each child or 
                                youth enrolled in a separate school 
                                described in subparagraph (B); and
                                    ``(II) in accordance with 
                                subsection (g)(1)(H)(ii);
                            ``(iii) prohibit schools within the 
                        agency's jurisdiction from referring homeless 
                        children or youth to, or requiring homeless 
                        children and youth to enroll in or attend, a 
                        separate school described in subparagraph (B);
                            ``(iv) identify and remove any barriers 
                        that exist in schools within the agency's 
                        jurisdiction that may have contributed to the 
                        creation or existence of separate schools 
                        described in subparagraph (B); and
                            ``(v) not use funds received under this 
                        subtitle to establish--
                                    ``(I) new or additional separate 
                                schools for homeless children or youth, 
                                other than schools described in 
                                subparagraph (B); or
                                    ``(II) new or additional sites for 
                                separate schools for homeless children 
                                or youth, other than the sites occupied 
                                by the schools described in 
                                subparagraph (B) in fiscal year 2000.
                    ``(F) Report.--
                            ``(i) Preparation.--
                                    ``(I) In general.--The Secretary 
                                shall prepare a report on the separate 
                                schools and local educational agencies 
                                described in subparagraph (B) that 
                                receive funds under this subtitle in 
                                accordance with this paragraph.
                                    ``(II) Contents.--The report shall 
                                contain, at a minimum, information on--
                                            ``(aa) compliance with all 
                                        requirements of this paragraph;
                                            ``(bb) barriers to school 
                                        access in the school districts 
                                        served by the local educational 
                                        agencies; and
                                            ``(cc) the progress the 
                                        separate schools are making in 
                                        integrating homeless children 
                                        and youth into the mainstream 
                                        school environment, including 
                                        the average length of student 
                                        enrollment in such schools.
                            ``(ii) Compliance with information 
                        requests.--For purposes of enabling the 
                        Secretary to prepare the report, the separate 
                        schools and local educational agencies shall 
                        cooperate with the Secretary and the State 
                        Coordinators for the Education of Homeless 
                        Children and Youth, and shall comply with any 
                        requests for information by the Secretary and 
                        State Coordinators.
                            ``(iii) Submission.--Not later than 2 years 
                        after the date of enactment of the Better 
                        Education for Students and Teachers Act, the 
                        Secretary shall submit the report described in 
                        clause (i) to--
                                    ``(I) the President;
                                    ``(II) the Committee on Education 
                                and the Workforce of the House of 
                                Representatives; and
                                    ``(III) the Committee on Health, 
                                Education, Labor, and Pensions of the 
                                Senate.
                    ``(G) Definition.--In this paragraph, the term 
                `covered county' means--
                            ``(i) San Joaquin County, CA;
                            ``(ii) Orange County, CA;
                            ``(iii) San Diego County, CA; and
                            ``(iv) Maricopa County, AZ.'';
            (3) by amending subsection (f) to read as follows:
    ``(f) Functions of the Office of Coordinator.--The Coordinator of 
Education of Homeless Children and Youth established in each State 
shall--
            ``(1) gather reliable, valid, and comprehensive information 
        on the nature and extent of the problems homeless children and 
        youth have in gaining access to public preschool programs and 
        to public elementary schools and secondary schools, the 
        difficulties in identifying the special needs of such children 
        and youth, any progress made by the State educational agency 
        and local educational agencies in the State in addressing such 
        problems and difficulties, and the success of the program under 
        this subtitle in allowing homeless children and youth to enroll 
        in, attend, and succeed in, school;
            ``(2) develop and carry out the State plan described in 
        subsection (g);
            ``(3) collect and transmit to the Secretary, at such time 
        and in such manner as the Secretary may require, such 
        information as the Secretary deems necessary to assess the 
        educational needs of homeless children and youth within the 
        State;
            ``(4) facilitate coordination between the State educational 
        agency, the State social services agency, and other agencies 
        providing services to homeless children and youth, including 
        homeless children and youth who are preschool age, and families 
        of such children and youth;
            ``(5) in order to improve the provision of comprehensive 
        education and related services to homeless children and youth 
        and their families, coordinate and collaborate with--
                    ``(A) educators, including child development and 
                preschool program personnel;
                    ``(B) providers of services to homeless and runaway 
                children and youth and homeless families (including 
                domestic violence agencies, shelter operators, 
                transitional housing facilities, runaway and homeless 
                youth centers, and transitional living programs for 
                homeless youth);
                    ``(C) local educational agency liaisons for 
                homeless children and youth; and
                    ``(D) community organizations and groups 
                representing homeless children and youth and their 
                families; and
            ``(6) provide technical assistance to local educational 
        agencies in coordination with local liaisons established under 
        this subtitle, to ensure that local educational agencies comply 
        with the requirements of section 722(e)(3).''; and
            (4) in subsection (g)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (E)--
                                    (I) by striking ``the report'' and 
                                inserting ``the information''; and
                                    (II) by striking ``(f)(4)'' and 
                                inserting ``(f)(3)''; and
                            (ii) by amending subparagraph (H) to read 
                        as follows:
                    ``(H) contain assurances that--
                            ``(i) the State educational agency and 
                        local educational agencies in the State will 
                        adopt policies and practices to ensure that 
                        homeless children and youth are not segregated 
                        on the basis of their status as homeless or 
                        stigmatized; and
                            ``(ii) local educational agencies serving 
                        school districts in which homeless children and 
                        youth reside or attend school will--
                                    ``(I) post public notice of the 
                                educational rights of such children and 
                                youth where such children and youth 
                                receive services under this Act (such 
                                as family shelters and soup kitchens); 
                                and
                                    ``(II) designate an appropriate 
                                staff person, who may also be a 
                                coordinator for other Federal programs, 
                                as a liaison for homeless children and 
                                youth.'';
                    (B) by amending paragraph (3) to read as follows:
            ``(3) Local educational agency requirements.--
                    ``(A) In general.--Each local educational agency 
                serving a homeless child or youth assisted under this 
                subtitle shall, according to the child's or youth's 
                best interest--
                            ``(i) continue the child's or youth's 
                        education in the school of origin--
                                    ``(I) for the duration of their 
                                homelessness;
                                    ``(II) if the child becomes 
                                permanently housed, for the remainder 
                                of the academic year; or
                                    ``(III) in any case in which a 
                                family becomes homeless between 
                                academic years, for the following 
                                academic year; or
                            ``(ii) enroll the child or youth in any 
                        school that nonhomeless students who live in 
                        the attendance area in which the child or youth 
                        is actually living are eligible to attend.
                    ``(B) Best interest.--In determining the best 
                interest of the child or youth under subparagraph (A), 
                the local educational agency shall--
                            ``(i) to the extent feasible, keep a 
                        homeless child or youth in the school of 
                        origin, except when doing so is contrary to the 
                        wishes of the child's or youth's parent or 
                        guardian, or in the case of an unaccompanied 
                        youth, doing so is contrary to the youth's 
                        wish; and
                            ``(ii) provide a written explanation to the 
                        homeless child's or youth's parent or guardian 
                        when the local educational agency sends such 
                        child or youth to a school other than the 
                        school of origin or a school requested by the 
                        parent or guardian.
                    ``(C) Enrollment.--
                            ``(i) Documentation.--The school selected 
                        in accordance with this paragraph shall 
                        immediately enroll the homeless child or youth 
                        even if the child or youth is unable to produce 
                        records normally required for enrollment, such 
                        as previous academic records, medical records, 
                        proof of residency, or other documentation.
                            ``(ii) Special rule.--The enrolling school 
                        immediately shall contact the school last 
                        attended by the child or youth to obtain 
                        relevant academic and other records. If the 
                        child or youth needs to obtain immunizations, 
                        the enrolling school shall promptly refer the 
                        child or youth to the appropriate authorities 
                        for such immunizations.
                            ``(iii) Disputes.--If a dispute arises over 
                        school selection or enrollment in a school, the 
                        child or youth shall be admitted immediately to 
                        the school in which the parent or guardian (or 
                        in the case of an unaccompanied youth, the 
                        youth) seeks enrollment pending resolution of 
                        the dispute.
                    ``(D) Definition of school of origin.--For purposes 
                of this paragraph, the term `school of origin' means 
                the school that the child or youth attended when 
                permanently housed, or the school in which the child or 
                youth was last enrolled.
                    ``(E) Placement choice.--The choice regarding 
                placement shall be made regardless of whether the child 
                or youth lives with the homeless parents or has been 
                temporarily placed elsewhere by the parents.'';
                    (C) by amending paragraph (6) to read as follows:
            ``(6) Coordination.--
                    ``(A) In general.--Each local educational agency 
                serving homeless children and youth that receives 
                assistance under this subtitle shall coordinate the 
                provision of services under this subtitle with local 
                services agencies and other agencies or programs 
                providing services to homeless children and youth and 
                their families, including services and programs funded 
                under the Runaway and Homeless Youth Act (42 U.S.C. 
                5701 et seq.).
                    ``(B) Housing assistance.--If applicable, each 
                State and local educational agency that receives 
                assistance under this subtitle shall coordinate with 
                State and local housing agencies responsible for 
                developing the comprehensive housing affordability 
                strategy described in section 105 of the Cranston-
                Gonzales National Affordable Housing Act (42 U.S.C. 
                12705) to minimize educational disruption for children 
                and youth who become homeless.
                    ``(C) Coordination purpose.--The coordination 
                required under subparagraphs (A) and (B) shall be 
                designed to--
                            ``(i) ensure that homeless children and 
                        youth have access to available education and 
                        related support services; and
                            ``(ii) raise the awareness of school 
                        personnel and service providers of the effects 
                        of short-term stays in shelters and other 
                        challenges associated with homeless children 
                        and youth.'';
                    (D) by amending paragraph (7) to read as follows:
            ``(7) Liaison.--
                    ``(A) In general.--Each local liaison for homeless 
                children and youth designated pursuant to paragraph 
                (1)(H)(ii)(II) shall ensure that--
                            ``(i) homeless children and youth enroll, 
                        and have a full and equal opportunity to 
                        succeed, in the schools of the local 
                        educational agency;
                            ``(ii) homeless families, children, and 
                        youth receive educational services for which 
                        such families, children, and youth are 
                        eligible, including Head Start and Even Start 
                        programs and preschool programs administered by 
                        the local educational agency, and referrals to 
                        health care services, dental services, mental 
                        health services, and other appropriate 
                        services;
                            ``(iii) the parents or guardians of 
                        homeless children and youth are informed of the 
                        education and related opportunities available 
                        to their children and are provided with 
                        meaningful opportunities to participate in the 
                        education of their children; and
                            ``(iv) public notice of the educational 
                        rights of homeless children and youth is posted 
                        where such children and youth receive services 
                        under this Act (such as family shelters and 
                        soup kitchens).
                    ``(B) Information.--State coordinators in States 
                receiving assistance under this subtitle and local 
                educational agencies receiving assistance under this 
                subtitle shall inform school personnel, service 
                providers, and advocates working with homeless families 
                of the duties of the liaisons for homeless children and 
                youth.
                    ``(C) Local and state coordination.--Liaisons for 
                homeless children and youth shall, as a part of their 
                duties, coordinate and collaborate with State 
                coordinators and community and school personnel 
                responsible for the provision of education and related 
                services to homeless children and youth.
                    ``(D) Dispute resolution.--Unless another 
                individual is designated by State law, the local 
                liaison for homeless children and youth shall provide 
                resource information and assist in resolving a dispute 
                under this subtitle if such a dispute arises.''; and
                    (E) by striking paragraph (9).

SEC. 173. LOCAL EDUCATIONAL AGENCY GRANTS.

    Section 723 of such Act (42 U.S.C. 11433) is amended--
            (1) in subsection (a), by amending paragraph (2) to read as 
        follows:
            ``(2) Services.--
                    ``(A) In general.--Services provided under 
                paragraph (1)--
                            ``(i) may be provided through programs on 
                        school grounds or at other facilities;
                            ``(ii) shall, to the maximum extent 
                        practicable, be provided through existing 
                        programs and mechanisms that integrate homeless 
                        individuals with nonhomeless individuals; and
                            ``(iii) shall be designed to expand or 
                        improve services provided as part of a school's 
                        regular academic program, but not replace that 
                        program.
                    ``(B) Services on school grounds.--If services 
                under paragraph (1) are provided on school grounds, 
                schools--
                            ``(i) may use funds under this subtitle to 
                        provide the same services to other children and 
                        youth who are determined by the local 
                        educational agency to be at risk of failing in, 
                        or dropping out of, schools, subject to clause 
                        (ii); and
                            ``(ii) shall not provide services in 
                        settings within a school that segregates 
                        homeless children and youth from other children 
                        and youth, except as is necessary for short 
                        periods of time--
                                    ``(I) for health and safety 
                                emergencies; or
                                    ``(II) to provide temporary, 
                                special, supplementary services to meet 
                                the unique needs of homeless children 
                                and youth.'';
            (2) in subsection (b)--
                    (A) by redesignating paragraphs (1) through (4) as 
                paragraphs (2) through (5), respectively;
                    (B) by inserting before paragraph (2) (as so 
                redesignated) the following:
            ``(1) an assessment of the educational and related needs of 
        homeless children and youth in the school district (which may 
        be undertaken as a part of needs assessments for other 
        disadvantaged groups);''; and
                    (C) in paragraph (4) (as so redesignated), by 
                striking ``(9)'' and inserting ``(8)''; and
            (3) in subsection (c)--
                    (A) by amending paragraph (1) to read as follows:
            ``(1) In general.--The State educational agency, in 
        accordance with the requirements of this subtitle and from 
        amounts made available to the State educational agency under 
        section 726, shall award grants, on a competitive basis, to 
        local educational agencies that submit applications under 
        subsection (b). Such grants shall be awarded on the basis of 
        the need of such agencies for assistance under this subtitle 
        and the quality of the applications submitted.'';
                    (B) by redesignating paragraph (3) as paragraph 
                (4); and
                    (C) by inserting after paragraph (2) the following:
            ``(3) Quality.--In determining the quality of applications 
        under paragraph (1), the State educational agency shall 
        consider--
                    ``(A) the local educational agency's needs 
                assessment under subsection (b)(1) and the likelihood 
                that the program to be assisted will meet the needs;
                    ``(B) the types, intensity, and coordination of 
                services to be assisted under the program;
                    ``(C) the involvement of parents or guardians;
                    ``(D) the extent to which homeless children and 
                youth will be integrated within the regular education 
                program;
                    ``(E) the quality of the local educational agency's 
                evaluation plan for the program;
                    ``(F) the extent to which services provided under 
                this subtitle will be coordinated with other available 
                services;
                    ``(G) the extent to which the local educational 
                agency provides case management or related services to 
                homeless children and youth who are unaccompanied by a 
                parent or guardian; and
                    ``(H) such other measures as the State educational 
                agency determines indicative of a high-quality 
                program.''.

SEC. 174. SECRETARIAL RESPONSIBILITIES.

    Section 724 of such Act (42 U.S.C. 11434) is amended--
            (1) in subsection (a), by striking ``the State 
        educational'' and inserting ``State educational'';
            (2) by striking subsection (f);
            (3) by redesignating subsections (c) through (e) as 
        subsections (d) through (f), respectively;
            (4) by inserting after subsection (b) the following:
    ``(c) Guidelines.--The Secretary shall develop, issue, and publish 
in the Federal Register, not later than 60 days after the date of 
enactment of the Better Education for Students and Teachers Act, school 
enrollment guidelines for States with respect to homeless children and 
youth. The guidelines shall describe--
            ``(1) successful ways in which a State may assist local 
        educational agencies to enroll immediately homeless children 
        and youth in school; and
            ``(2) how a State can review the State's requirements 
        regarding immunization and medical or school records and make 
        revisions to the requirements as are appropriate and necessary 
        in order to enroll homeless children and youth in school more 
        quickly.''; and
            (5) by adding at the end the following:
    ``(g) Information.--
            ``(1) In general.--From funds appropriated under section 
        726, the Secretary, directly or through grants, contracts, or 
        cooperative agreements, shall periodically collect and 
        disseminate data and information regarding--
                    ``(A) the number and location of homeless children 
                and youth;
                    ``(B) the education and related services homeless 
                children and youth receive;
                    ``(C) the extent to which the needs of homeless 
                children and youth are met; and
                    ``(D) such other data and information as the 
                Secretary determines necessary and relevant to carry 
                out this subtitle.
            ``(2) Coordination.--The Secretary shall coordinate such 
        collection and dissemination with other agencies and entities 
        that receive assistance and administer programs under this 
        subtitle.
    ``(h) Report.--Not later than 4 years after the date of enactment 
of the Better Education for Students and Teachers Act, the Secretary 
shall prepare and submit to the President and the appropriate 
committees of the House of Representatives and the Senate a report on 
the status of the education of homeless children and youth, which shall 
include information regarding--
            ``(1) the education of homeless children and youth; and
            ``(2) the actions of the Department of Education and the 
        effectiveness of the programs supported under this subtitle.''.

SEC. 175. DEFINITIONS.

    Section 725 of such Act (42 U.S.C. 11434a) is amended--
            (1) by redesignating paragraphs (1) and (2) as paragraphs 
        (4) and (5), respectively;
            (2) by inserting before paragraph (4) (as so redesignated) 
        the following:
            ``(1) the term `homeless children and youth'--
                    ``(A) means individuals who lack a fixed, regular, 
                and adequate nighttime residence (within the meaning of 
                section 103(a)(1)); and
                    ``(B) includes--
                            ``(i) children and youth who are sharing 
                        the housing of other persons due to loss of 
                        housing, economic hardship, or a similar 
                        reason, are living in motels, hotels, trailer 
                        parks, or camping grounds due to the lack of 
                        alternative adequate accommodations, are living 
                        in emergency or transitional shelters, are 
                        abandoned in hospitals, or are awaiting foster 
                        care placement;
                            ``(ii) children and youth who have a 
                        primary nighttime residence that is a public or 
                        private place not designed for or ordinarily 
                        used as a regular sleeping accommodation for 
                        human beings (within the meaning of section 
                        103(a)(2)(C)); and
                            ``(iii) children and youth who are living 
                        in cars, parks, public spaces, abandoned 
                        buildings, substandard housing, bus or train 
                        stations, or similar settings; and
                    ``(C) migratory children (as such term is defined 
                in section 1309(2) of the Elementary and Secondary 
                Education Act of 1965) who qualify as homeless for the 
                purposes of this subtitle because the children are 
                living in circumstances described in this paragraph;
            ``(2) the terms `enroll' and `enrollment' include attending 
        classes and participating fully in school activities;
            ``(3) the terms `local educational agency' and `State 
        educational agency' have the meanings given the terms in 
        section 3 of the Elementary and Secondary Education Act of 
        1965;'';
            (3) in paragraph (4) (as so redesignated), by striking 
        ``and'' after the semicolon;
            (4) in paragraph (5) (as so redesignated), by striking the 
        period and inserting ``; and''; and
            (5) by adding at the end the following:
            ``(6) the term `unaccompanied youth' includes a youth not 
        in the physical custody of a parent or guardian.''.

SEC. 176. AUTHORIZATION OF APPROPRIATIONS.

    Section 726 of such Act (42 U.S.C. 11435) is amended to read as 
follows:

``SEC. 726. AUTHORIZATION OF APPROPRIATIONS.

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

SEC. 177. CONFORMING AMENDMENTS.

    (a) Grants for State and Local Activities.--Section 722 of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11432) is 
amended--
            (1) in subsection (c)(1), by striking ``section 724(c)'' 
        and inserting ``section 724(d)''; and
            (2) in subsection (g)(2), by striking ``paragraphs (3) 
        through (9)'' and inserting ``paragraphs (3) through (8)''.
    (b) Local Educational Agency Grants.--Section 723(b)(3) of such Act 
(42 U.S.C. 11433(b)(3)) is amended by striking ``paragraphs (3) through 
(9) of section 722(g)'' and inserting ``paragraphs (3) through (8) of 
section 722(g)''.
    (c) Secretarial Responsibilities.--Section 724(f) of such Act (as 
amended by section 174(3)) is amended by striking ``subsection (d)'' 
and inserting ``subsection (e)''.

SEC. 178. LOCAL EDUCATIONAL AGENCY SPENDING AUDITS.

    (a) Audits.--The Office of the Inspector General of the Department 
of Education shall conduct not less than 6 audits of local education 
agencies that receive funds under part A of title I of the Elementary 
and Secondary Education Act of 1965 in each fiscal year to more clearly 
determine specifically how local education agencies are expending such 
funds. Such audits shall be conducted in 6 local educational agencies 
that represent the size, ethnic, economic and geographic diversity of 
local educational agencies and shall examine the extent to which funds 
have been expended for academic instruction in the core curriculum and 
activities unrelated to academic instruction in the core curriculum, 
such as the payment of janitorial, utility and other maintenance 
services, the purchase and lease of vehicles, and the payment for 
travel and attendance costs at conferences.
    (b) Report.--Not later than 3 months after the completion of the 
audits under subsection (a) in each year, the Office of the Inspector 
General of the Department of Education shall submit a report on each 
audit 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.

                           TITLE II--TEACHERS

SEC. 201. TEACHER QUALITY.

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

                          ``TITLE II--TEACHERS

                       ``PART A--TEACHER QUALITY

``SEC. 2101. PURPOSE.

    ``The purpose of this part is to provide grants to State 
educational agencies, local educational agencies, State agencies for 
higher education, and eligible partnerships in order to--
            ``(1) increase student academic achievement and student 
        performance through such strategies as improving teacher 
        quality and increasing the number of highly qualified teachers 
        in the classroom;
            ``(2) hold local educational agencies and schools 
        accountable so that all teachers teaching core academic 
        subjects in public elementary schools and secondary schools, in 
        which not less than 50 percent of the students are from low-
        income families, are highly qualified; and
            ``(3) hold local educational agencies and schools 
        accountable for improvements in student academic achievement 
        and student performance.

``SEC. 2102. DEFINITIONS.

    ``In this part:
            ``(1) All students.--The term `all students' means students 
        from a broad range of backgrounds and circumstances, including 
        economically disadvantaged students, students with diverse 
        racial, ethnic, and cultural backgrounds, students with 
        disabilities, students with limited English proficiency, and 
        academically talented students.
            ``(2) Charter school.--The term `charter school' has the 
        meaning given the term in section 5120.
            ``(3) Core academic subjects.--The term `core academic 
        subjects' means English, mathematics, science, foreign 
        languages, civics and government, economics, arts, history, and 
        geography.
            ``(4) Highly qualified.--The term `highly qualified' 
        means--
                    ``(A) with respect to an elementary school teacher, 
                a teacher--
                            ``(i)(I) with an academic major in the arts 
                        and sciences; or
                            ``(II) who can demonstrate competence 
                        through a high level of performance in core 
                        academic subjects; and
                            ``(ii) who is certified or licensed by the 
                        State involved, except for a teacher in a 
                        charter school in a State that has a charter 
                        school law that exempts such a teacher from 
                        State certification and licensing requirements;
                    ``(B) with respect to a secondary school teacher 
                hired before the date of enactment of the Better 
                Education for Students and Teachers Act, a teacher--
                            ``(i)(I) with an academic major (or courses 
                        totaling an equivalent number of credit hours) 
                        in the academic subject that the teacher 
                        teaches or a related field;
                            ``(II) who can demonstrate a high level of 
                        competence through rigorous academic subject 
                        tests and achievement of a high level of 
                        competence as described in subclause (III); or
                            ``(III) who can demonstrate a high level of 
                        competence through a high level of performance 
                        in the academic subjects that the teacher 
                        teaches, based on a high and objective uniform 
                        standard that is--
                                    ``(aa) set by the State for both 
                                grade appropriate academic subject 
                                knowledge and teaching skills;
                                    ``(bb) the same for all teachers in 
                                the same academic subject and same 
                                grade level throughout the State; and
                                    ``(cc) a written standard that is 
                                developed in consultation with 
                                teachers, parents, principals, and 
                                school administrators and made 
                                available to the public upon request; 
                                and
                            ``(ii) who is certified or licensed by the 
                        State, except for a teacher in a charter school 
                        in a State that has a charter school law that 
                        exempts such a teacher from State certification 
                        and licensing requirements; and
                    ``(C) with respect to a secondary school teacher 
                hired after the date of enactment of the Better 
                Education for Students and Teachers Act, a teacher that 
                meets the requirements of subclause (I) or (II) of 
                subparagraph (B)(i).
            ``(5) High need local educational agency.--The term `high 
        need local educational agency' has the meaning given the term 
        in section 201(b) of the Higher Education Act of 1965.
            ``(6) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 101(a) of the Higher Education Act of 1965.
            ``(7) Out-of-field teacher.--The term `out-of-field 
        teacher' means a secondary school teacher who is teaching an 
        academic subject for which the teacher is not highly qualified.
            ``(8) 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.
            ``(9) Professional development.--The term `professional 
        development' means activities that--
                    ``(A) are an integral part of broad schoolwide and 
                districtwide educational improvement plans;
                    ``(B) enhance the ability of teachers and other 
                staff to--
                            ``(i) help all students meet challenging 
                        State and local content and student performance 
                        standards;
                            ``(ii) improve understanding and use of 
                        student assessments by the teachers and staff;
                            ``(iii) improve classroom management 
                        skills;
                            ``(iv) as appropriate, integrate technology 
                        into the curriculum; and
                            ``(v) encourage and provide instruction on 
                        how to work with and involve parents to foster 
                        student achievement;
                    ``(C) are sustained, intensive, and school-
                embedded;
                    ``(D) are aligned with--
                            ``(i) State content standards, student 
                        performance standards, and assessments; and
                            ``(ii) the curricula and programs tied to 
                        the standards described in clause (i);
                    ``(E) are of high quality and sufficient duration 
                to have a positive and lasting impact on classroom 
                instruction, and are not one-time workshops; and
                    ``(F) are based on the best available research on 
                teaching and learning.
            ``(10) Teacher mentoring.--The term `teacher mentoring' 
        means activities that--
                    ``(A) consist of structured guidance and regular 
                and ongoing support for beginning teachers, that--
                            ``(i) are designed to help the teachers 
                        continue to improve their practice of teaching 
                        and to develop their instructional skills; and
                            ``(ii) as part of a multiyear, 
                        developmental induction process--
                                    ``(I) involve the assistance of a 
                                mentor teacher and other appropriate 
                                individuals from a school, local 
                                educational agency, or institution of 
                                higher education; and
                                    ``(II) may include coaching, 
                                classroom observation, team teaching, 
                                and reduced teaching loads; and
                    ``(B) may include the establishment of a 
                partnership by a local educational agency with an 
                institution of higher education, another local 
                educational agency, a teacher organization, or another 
                organization.

``SEC. 2103. AUTHORIZATION OF APPROPRIATIONS.

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

                     ``Subpart 1--Grants to States

``SEC. 2111. ALLOTMENTS TO STATES.

    ``(a) In General.--The Secretary shall make grants to States with 
applications approved under section 2112 to pay for the Federal share 
of carrying out the activities specified in section 2113. Each grant 
shall consist of the allotment determined for a State under subsection 
(b).
    ``(b) Determination of Allotments.--
            ``(1) Reservation of funds.--
                    ``(A) In general.--From the total amount 
                appropriated under section 2103(a) for a fiscal year, 
                the Secretary shall reserve--
                            ``(i) \1/2\ of 1 percent for payments to 
                        the outlying areas, to be distributed among the 
                        outlying areas on the basis of their relative 
                        need, as determined by the Secretary, for 
                        activities authorized under this part relating 
                        to teacher quality, including professional 
                        development and teacher hiring; and
                            ``(ii) \1/2\ of 1 percent for payments to 
                        the Secretary of the Interior for activities 
                        described in clause (i) in schools operated or 
                        funded by the Bureau of Indian Affairs.
                    ``(B) Limitation.--In reserving an amount for the 
                purposes described in clauses (i) and (ii) of 
                subparagraph (A) for a fiscal year, the Secretary shall 
                not reserve more than the total amount the outlying 
                areas and the schools operated or funded by the Bureau 
                of Indian Affairs received for fiscal year 2001 under--
                            ``(i) section 2202(b) of this Act (as in 
                        effect on the day before the date of enactment 
                        of the Better Education for Students and 
                        Teachers Act); and
                            ``(ii) section 306 of the Department of 
                        Education Appropriations Act, 2001 (as enacted 
                        into law by section 1(a)(1) of Public Law 106-
                        554).
            ``(2) State allotments.--
                    ``(A) Hold harmless.--
                            ``(i) In general.--Subject to subparagraph 
                        (B), from the total amount appropriated under 
                        section 2103(a) for any fiscal year and not 
                        reserved under paragraph (1), the Secretary 
                        shall allot to each of the 50 States, the 
                        District of Columbia, and the Commonwealth of 
                        Puerto Rico an amount equal to the total amount 
                        that such State received for fiscal year 2001 
                        under the authorities described in paragraph 
                        (1)(B).
                            ``(ii) Ratable reduction.--If the total 
                        amount appropriated under section 2103(a) for 
                        any fiscal year and not reserved under 
                        paragraph (1) is insufficient to pay the full 
                        amounts that all States are eligible to receive 
                        under clause (i) for the fiscal year, the 
                        Secretary shall ratably reduce such amounts for 
                        the fiscal year.
                    ``(B) Allotment of additional funds.--
                            ``(i) In general.--Subject to clause (ii), 
                        for any fiscal year for which the total amount 
                        appropriated under section 2103(a) and not 
                        reserved under paragraph (1) exceeds the total 
                        amount made available to the 50 States, the 
                        District of Columbia, and the Commonwealth of 
                        Puerto Rico for fiscal year 2001 under the 
                        authorities described in paragraph (1)(B), the 
                        Secretary shall allot to each of those States 
                        the sum of--
                                    ``(I) an amount that bears the same 
                                relationship to 35 percent of the 
                                excess amount as the number of 
                                individuals age 5 through 17 in the 
                                State, as determined by the Secretary 
                                on the basis of the most recent 
                                satisfactory data, bears to the number 
                                of those individuals in all such 
                                States, as so determined; and
                                    ``(II) an amount that bears the 
                                same relationship to 65 percent of the 
                                excess amount as the number of 
                                individuals age 5 through 17 from 
                                families with incomes below the poverty 
                                line in the State, as determined by the 
                                Secretary on the basis of the most 
                                recent satisfactory data, bears to the 
                                number of those individuals in all such 
                                States, as so determined.
                            ``(ii) Exception.--No State receiving an 
                        allotment under clause (i) may receive less 
                        than \1/2\ of 1 percent of the total excess 
                        amount allotted under clause (i) for a fiscal 
                        year.
            ``(3) Reallotment.--If any State does not apply for an 
        allotment under this subsection for any fiscal year, the 
        Secretary shall reallot the amount of the allotment to the 
        remaining States in accordance with this subsection.

``SEC. 2112. STATE APPLICATIONS.

    ``(a) In General.--For a State to be eligible to receive a grant 
under this part, the State educational agency shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may reasonably require.
    ``(b) Contents.--Each application submitted under this section 
shall include the following:
            ``(1) A description of how the activities to be carried out 
        by the State educational agency under this subpart will be 
        based on a review of relevant research and an explanation of 
        why the activities are expected to improve student performance 
        and outcomes.
            ``(2) A description of how the State educational agency 
        will ensure that activities assisted under this subpart are 
        aligned with State content standards, student performance 
        standards, and assessments.
            ``(3) A description of how the State educational agency 
        will ensure that a local educational agency receiving a 
        subgrant to carry out subpart 2 will comply with the 
        requirements of such subpart.
            ``(4) A description of how the State educational agency 
        will use funds made available under this part to improve the 
        quality of the State's teaching force and the educational 
        opportunities for students.
            ``(5) A description of how the State educational agency 
        will coordinate professional development activities authorized 
        under this part with professional development activities 
        provided under other Federal, State, and local programs, 
        including those authorized under--
                    ``(A) title I, part C of this title, part A of 
                title III, and title IV; and
                    ``(B) where applicable, the Individuals with 
                Disabilities Education Act, the Carl D. Perkins 
                Vocational and Technical Education Act of 1998, and 
                title II of the Higher Education Act of 1965.
            ``(6) A description of how the activities to be carried out 
        by the State educational agency under this subpart will be 
        developed collaboratively based on the input of teachers, 
        principals, paraprofessionals, administrators, other school 
        personnel, and parents.
            ``(7) A description of how the State educational agency 
        will ensure that the professional development (including 
        teacher mentoring) needs of teachers will be met using funds 
        under this subpart and subpart 2.
            ``(8) A description of the State educational agency's 
        annual measurable performance objectives under section 2141.
            ``(9) A plan to ensure that all local educational agencies 
        in the State are meeting the performance objectives established 
        by the State under section 2142(a)(1) so that all teachers in 
        the State who are teaching core academic subjects in public 
        elementary schools and secondary schools, in which not less 
        than 50 percent of the students are from low-income families, 
        are highly qualified not later than the end of the fourth year 
        for which the State receives funds under this part (as amended 
        by the Better Education for Students and Teachers Act).
            ``(10) An assurance that the State educational agency will 
        consistently monitor the progress of each local educational 
        agency and school in the State in achieving the purpose of this 
        part and meeting the performance objectives described in 
        section 2142.
            ``(11) In the case of a State that has a charter school law 
        that exempts teachers from State certification and licensing 
        requirements, a description of the basis for the exemption.
            ``(12) An assurance that the State educational agency will 
        comply with section 6 (regarding participation by private 
        school children and teachers).
    ``(c) Approval.--The Secretary shall approve a State application 
submitted to the Secretary under this section unless the Secretary 
makes a written determination, within 90 days after receiving the 
application, that the application does not meet the requirements of 
this Act.

``SEC. 2113. STATE USE OF FUNDS.

    ``(a) In General.--A State that receives a grant under section 2111 
shall--
            ``(1) reserve 2 percent of the funds made available through 
        the grant for State activities described in subsection (b);
            ``(2) reserve 95 percent of the funds to make subgrants to 
        local educational agencies as described in subpart 2; and
            ``(3) reserve 3 percent of the funds to make subgrants to 
        local partnerships as described in subpart 3.
    ``(b) State Activities.--The State educational agency for a State 
that receives a grant under section 2111 shall use the funds reserved 
under subsection (a)(1) to carry out 1 or more of the following 
activities, including through a grant or contract with a for-profit or 
nonprofit entity:
            ``(1) Reforming teacher certification (including 
        recertification) or licensing requirements to ensure that--
                    ``(A) teachers have the necessary subject matter 
                knowledge and teaching skills in the academic subjects 
                that the teachers teach;
                    ``(B) the requirements are aligned with challenging 
                State content standards; and
                    ``(C) teachers have the subject matter knowledge 
                and teaching skills, including technology literacy, 
                necessary to help students meet challenging State 
                student performance standards.
            ``(2) Carrying out programs that provide support during the 
        initial teaching experience, such as programs that provide 
        teacher mentoring, team teaching, reduced schedules, and 
        intensive professional development.
            ``(3) Carrying out programs that establish, expand, or 
        improve alternative routes for State certification of teachers 
        for highly qualified individuals with a baccalaureate degree, 
        including mid-career professionals from other occupations, 
        paraprofessionals, former military personnel, and recent 
        college or university graduates with records of academic 
        distinction who demonstrate the potential to become highly 
        effective teachers.
            ``(4) Providing assistance to teachers to enable teachers 
        to meet certification, licensing, or other requirements needed 
        to become highly qualified by the end of the fourth year 
        described in section 2112(b)(9).
            ``(5) Developing and implementing effective mechanisms to 
        assist local education agencies and schools in effectively 
        recruiting and retaining highly qualified teachers and 
        principals, and in cases in which a State deems appropriate, 
        pupil services personnel.
            ``(6) Developing and implementing effective mechanisms to 
        assist local educational agencies and schools in effectively 
        recruiting and retaining highly qualified and effective 
        teachers and principals, including teaching specialists in core 
        academic subjects.
            ``(7) Funding projects to promote reciprocity of teacher 
        certification or licensure between or among States.
            ``(8) Testing new teachers for subject matter knowledge, 
        and testing the teachers for State certification or licensing, 
        consistent with title II of the Higher Education Act of 1965.
            ``(9) Supporting activities that ensure that teachers are 
        able to use State content standards, student performance 
        standards, and assessments to improve instructional practices 
        and improve student achievement and student performance.
            ``(10) Establishing teacher compensation systems based on 
        merit and proven performance.
            ``(11) Reforming tenure systems.
            ``(12) Funding projects and carrying out programs to 
        encourage men to become elementary school teachers.
            ``(13) Establishing and operating a center that--
                    ``(A) serves as a statewide clearinghouse for the 
                recruitment and placement of kindergarten, elementary 
                school, and secondary school teachers; and
                    ``(B) establishes and carries out programs to 
                improve teacher recruitment and retention within the 
                State.
            ``(14) Supporting the activities of education councils and 
        professional development schools, involving partnerships 
        described in paragraphs (1) and (3) of subsection (c), 
        respectively, for the purpose of--
                    ``(A) preparing out-of-field teachers to be 
                qualified to teach all of the classes that the teachers 
                are assigned to teach;
                    ``(B) preparing paraprofessionals to become fully 
                qualified teachers in areas served by high need local 
                educational agencies;
                    ``(C) supporting teams of master teachers and 
                student teacher interns as a part of an extended 
                teacher education program; and
                    ``(D) supporting teams of master teachers to serve 
                in low-performing schools.
            ``(15) Providing professional development for teachers and 
        pupil services personnel.
            ``(16) Encouraging and supporting the training of teachers 
        and administrators to effectively integrate technology into 
        curricula and instruction, including the ability to collect, 
        manage, and analyze data to improve teaching, decision making 
        and school improvement efforts and accountability.
            ``(17) Developing or supporting programs that encourage or 
        expand the use of technology to provide professional 
        development, including through Internet-based distance 
        education and peer networks.
            ``(18) Fulfilling the State's responsibilities concerning 
        proper and efficient administration of the program carried out 
        under this part.
    ``(c) Coordination.--A State that receives a grant to carry out 
this subpart and a grant under section 202 of the Higher Education Act 
of 1965 shall coordinate the activities carried out under this subpart 
and the activities carried out under that section 202.

          ``Subpart 2--Subgrants to Local Educational Agencies

``SEC. 2121. ALLOCATIONS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) In General.--A State that receives a grant under section 2111 
shall use the funds reserved under section 2113(a)(2) to make subgrants 
to eligible local educational agencies to carry out the activities 
specified in section 2123. Each subgrant shall consist of the 
allocation determined for a local educational agency under subsection 
(b).
    ``(b) Determination of Allocations.--From the total amount made 
available through the grant, the State shall allocate to each of the 
eligible local educational agencies the sum of--
            ``(1) an amount that bears the same relationship to 20 
        percent of the total amount as the number of individuals age 5 
        through 17 in the geographic area served by the agency, as 
        determined by the Secretary on the basis of the most recent 
        satisfactory data, bears to the number of those individuals in 
        the geographic areas served by all the local educational 
        agencies in the State, as so determined; and
            ``(2) an amount that bears the same relationship to 80 
        percent of the total amount as the number of individuals age 5 
        through 17 from families with incomes below the poverty line, 
        in the geographic area served by the agency, as determined by 
        the Secretary on the basis of the most recent satisfactory 
        data, bears to the number of those individuals in the 
        geographic areas served by all the local educational agencies 
        in the State, as so determined.

``SEC. 2122. LOCAL APPLICATIONS AND NEEDS ASSESSMENT.

    ``(a) In General.--To be eligible to receive a subgrant under this 
subpart, a local educational agency shall submit an application to the 
State educational agency at such time, in such manner, and containing 
such information as the State educational agency may reasonably 
require.
    ``(b) Contents.--Each application submitted under this section 
shall be based on the needs assessment required in subsection (c) and 
shall include the following:
            ``(1)(A) A description of the activities to be carried out 
        by the local educational agency under this subpart and how 
        these activities will be aligned with--
                    ``(i) State content standards, performance 
                standards, and assessments; and
                    ``(ii) the curricula and programs tied to the 
                standards described in clause (i).
            ``(B) A description of how the activities will be based on 
        a review of relevant research and an explanation of why the 
        activities are expected to improve student performance and 
        outcomes.
            ``(2) A description of how the activities will have a 
        substantial, measurable, and positive impact on student 
        academic achievement and student performance and how the 
        activities will be used as part of a broader strategy to 
        eliminate the achievement gap that separates low-income and 
        minority students from other students.
            ``(3) An assurance that the local educational agency will 
        target funds to schools served by the local educational agency 
        that--
                    ``(A) have the lowest proportions of highly 
                qualified teachers;
                    ``(B) are identified for school improvement under 
                section 1116(c); or
                    ``(C) are identified for school improvement in 
                accordance with other measures of school quality as 
                determined and documented by the local educational 
                agency.
            ``(4) A description of how the local educational agency 
        will coordinate professional development activities authorized 
        under this subpart with professional development activities 
        provided under other Federal, State, and local programs, 
        including those authorized under--
                    ``(A) title I, part C of this title, part A of 
                title III, and title IV; and
                    ``(B) where applicable, the Individuals with 
                Disabilities Education Act, the Carl D. Perkins 
                Vocational and Technical Education Act of 1998, and 
                title II of the Higher Education Act of 1965.
            ``(5) A description of how the local educational agency 
        will ensure that the professional development (including 
        teacher mentoring) needs of teachers and principals will be met 
        using funds under this subpart.
            ``(6) A description of the professional development 
        (including teacher mentoring) activities that will be made 
        available to teachers under this subpart.
            ``(7) A description of how the local educational agency, 
        teachers, paraprofessionals, principals, other relevant school 
        personnel, and parents have collaborated in the planning of 
        activities to be carried out under this subpart and in the 
        preparation of the application.
            ``(8) A description of the results of the needs assessment 
        described in subsection (c).
            ``(9) A description of how the local educational agency 
        will address the ongoing professional development (including 
        teacher mentoring) needs of teachers, principals, and 
        administrators.
            ``(10) A description of local performance objectives 
        established under section 2142(a)(2).
            ``(11) A description of how the local educational agency 
        will provide training to enable teachers to--
                    ``(A) address the needs of students with 
                disabilities, students with limited English 
                proficiency, and other students with special needs;
                    ``(B) involve parents in their child's education; 
                and
                    ``(C) understand and use data and assessments to 
                improve classroom practice and student learning.
            ``(12) An assurance that the local educational agency will 
        comply with section 6 (regarding participation by private 
        school children and teachers).
    ``(c) Needs Assessment.--
            ``(1) In general.--To be eligible to receive a subgrant 
        under this subpart, a local educational agency shall conduct an 
        assessment of local needs for professional development and 
        hiring, as identified by the local educational agency and 
        school staff.
            ``(2) Requirements.--Such needs assessment shall be 
        conducted with the involvement of teachers, including teachers 
        receiving assistance under part A of title I, and shall take 
        into account the activities that need to be conducted in order 
        to give teachers and, where appropriate, administrators, the 
        means, including subject matter knowledge and teaching skills, 
        to provide students with the opportunity to meet challenging 
        State and local student performance standards.

``SEC. 2123. LOCAL USE OF FUNDS.

    ``(a) Special Rule.--
            ``(1) In general.--A local educational agency that receives 
        a subgrant under section 2121 may use the amount described in 
        paragraph (2), of the funds made available through the 
        subgrant, to carry out activities described in section 306 of 
        the Department of Education Appropriations Act, 2001 (as 
        enacted into law by section 1(a)(1) of Public Law 106-554).
            ``(2) Amount.--The amount referred to in paragraph (1) is 
        the amount received by the agency under that section 306.
    ``(b) Local Use of Funds.--A local educational agency that receives 
a subgrant under section 2121 shall use the funds made available 
through the subgrant to carry out 1 or more of the following 
activities, including through a grant or contract with a for-profit or 
nonprofit entity:
            ``(1) Providing professional development activities that 
        improve the knowledge of teachers and principals concerning--
                    ``(A) 1 or more of the core academic subjects that 
                the teachers and principals teach;
                    ``(B) effective instructional strategies, methods, 
                and skills for improving student academic achievement 
                and student performance, including strategies to 
                implement a year-round school schedule that will allow 
                the local educational agency to increase pay for 
                veteran teachers;
                    ``(C) effective use of State content standards, 
                student performance standards, and assessments to 
                improve instructional practices and improve student 
                achievement and student performance;
                    ``(D) effective integration of technology into 
                curricula and instruction to enhance the learning 
                environment and improve student academic achievement, 
                performance, and technology literacy;
                    ``(E) ability to collect, manage, and analyze data, 
                including through use of technology, to inform 
                teaching;
                    ``(F) effective instructional practices that 
                involve collaborative groups of teachers and 
                administrators, using such strategies as--
                            ``(i) provision of dedicated time for 
                        collaborative lesson planning and curriculum 
                        development meetings;
                            ``(ii) consultation with exemplary 
                        teachers;
                            ``(iii) team teaching, peer observation, 
                        and coaching;
                            ``(iv) provision of short-term and long-
                        term visits to classrooms and schools;
                            ``(v) establishment and maintenance of 
                        local professional development networks that 
                        provide a forum for interaction among teachers 
                        and administrators about content knowledge and 
                        teaching and leadership skills; and
                            ``(vi) the provision of release time as 
                        needed for the activities; and
                    ``(G) teacher advancement initiatives that promote 
                professional growth and emphasize multiple career paths 
                (such as career teacher, mentor teacher, and master 
                teacher career paths) and pay differentiation.
            ``(2) Teacher mentoring.
            ``(3) Providing teachers, principals, and, in cases in 
        which a local education agency deems appropriate, pupil 
        services personnel with opportunities for professional 
        development through institutions of higher education, other for 
        profit or nonprofit entities, and through distance education.
            ``(4) Providing induction and support for teachers during 
        their first 3 years of teaching.
            ``(5) Recruiting (including recruiting through the use of 
        scholarships, signing bonuses, or other financial incentives, 
        as well as accelerated paraprofessional-to-teacher training 
        programs and programs that attract mid-career professionals 
        from other professions), hiring, and training regular and 
        special education teachers (which may include hiring special 
        education teachers to team-teach in classrooms that contain 
        both children with disabilities and nondisabled children, and 
        may include recruiting and hiring certified or licensed 
        teachers to reduce class size), and teachers of special needs 
        children, who are highly qualified as well as teaching 
        specialists in core academic subjects who will provide 
        increased individualized instruction to students served by the 
        local educational agency participating in the eligible 
        partnership.
            ``(6) Carrying out programs and activities related to--
                    ``(A) reform of teacher tenure systems;
                    ``(B) provision of merit pay for teachers; and
                    ``(C) testing of elementary school and secondary 
                school teachers in the academic subjects that the 
                teachers teach.
            ``(7) Carrying out programs and activities related to 
        master teachers:
                    ``(A) Master teacher.--The term `master teacher' 
                means a teacher who--
                            ``(i) is licensed or credentialed under 
                        State law in the subject or grade in which the 
                        teacher teaches;
                            ``(ii) has been teaching for at least 5 
                        years in a public or private school or 
                        institution of higher education;
                            ``(iii) is selected upon application, is 
                        judged to be an excellent teacher, and is 
                        recommended by administrators and other 
                        teachers who are knowledgeable of the 
                        individual's performance;
                            ``(iv) at the time of submission of such 
                        application, is teaching and based in a public 
                        school;
                            ``(v) assists other teachers in improving 
                        instructional strategies, improves the skills 
                        of other teachers, performs mentoring, develops 
                        curriculum, and offers other professional 
                        development; and
                            ``(vi) enters into a contract with the 
                        local educational agency to continue to teach 
                        and serve as a master teacher for at least 5 
                        additional years.
                A contract described in clause (vi) shall include 
                stipends, employee benefits, a description of duties 
                and work schedule, and other terms of employment.
                    ``(B) Study and report.--
                            ``(i) In general.--Not later than July 1, 
                        2005, the Secretary shall conduct a study and 
                        transmit a report to Congress pertaining to the 
                        utilization of funds under section 2123 for 
                        master teachers.
                            ``(ii) Contents of report.--The report 
                        shall include--
                                    ``(I) an analysis of--
                                            ``(aa) the recruitment and 
                                        retention of experienced 
                                        teachers;
                                            ``(bb) the effect of master 
                                        teachers on teaching by less 
                                        experienced teachers;
                                            ``(cc) the impact of 
                                        mentoring new teachers by 
                                        master teachers;
                                            ``(dd) the impact of master 
                                        teachers on student 
                                        achievement; and
                                            ``(ee) the reduction in the 
                                        rate of attrition of beginning 
                                        teachers; and
                                    ``(II) recommendations regarding 
                                establishing activities to expand the 
                                project to additional local educational 
                                agencies and school districts.
            ``(8) Developing and implementing mechanisms to assist 
        schools in effectively recruiting and retaining highly 
        qualified teachers and principals, and, in cases in which a 
        local education agency deems appropriate, pupil services 
        personnel.

            ``Subpart 3--Subgrants to Eligible Partnerships

``SEC. 2131. SUBGRANTS.

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

``SEC. 2132. APPLICATIONS.

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

``SEC. 2133. USE OF FUNDS.

    ``(a) In General.--An eligible partnership that receives a subgrant 
under section 2131 shall use the funds made available through the 
subgrant for--
            ``(1) professional development activities in core academic 
        subjects to ensure that teachers, paraprofessionals, and, if 
        appropriate, principals have subject matter knowledge in the 
        academic subjects that the teachers teach, including the use of 
        computer related technology to enhance student learning; and
            ``(2) developing and providing assistance to local 
        educational agencies and individuals who are teachers, 
        paraprofessionals, or principals of schools served by such 
        agencies, for sustained, high-quality professional development 
        activities that--
                    ``(A) ensure that the individuals are able to use 
                State content standards, performance standards, and 
                assessments to improve instructional practices and 
                improve student academic achievement and student 
                performance;
                    ``(B) may include intensive programs designed to 
                prepare such individuals who will return to a school to 
                provide instruction related to the professional 
                development described in subparagraph (A) to other such 
                individuals within such school; and
                    ``(C) may include activities carried out jointly 
                with education councils and professional development 
                schools, involving partnerships described in paragraphs 
                (1) and (3) of subsection (c), respectively, for the 
                purpose of improving teaching and learning at low-
                performing schools.
    ``(b) Coordination.--An eligible partnership that receives a 
subgrant to carry out this subpart and a grant under section 203 of the 
Higher Education Act of 1965 shall coordinate the activities carried 
out under this subpart and the activities carried out under that 
section 203.
    ``(c) Definitions.--In this section:
            ``(1) Education council.--The term `education council' 
        means a partnership that--
                    ``(A) is established between--
                            ``(i) 1 or more local educational agencies, 
                        acting on behalf of elementary schools or 
                        secondary schools served by the agencies; and
                            ``(ii) 1 or more institutions of higher 
                        education, including community colleges, that 
                        meet the requirements applicable to the 
                        institutions under title II of the Higher 
                        Education Act of 1965 (20 U.S.C. 1021 et seq.); 
                        and
                    ``(B) provides professional development to teachers 
                to ensure that the teachers are prepared and meet high 
                standards for teaching, particularly by educating and 
                preparing prospective teachers in a classroom setting 
                and enhancing the knowledge of in-service teachers 
                while improving the education of the classroom 
                students.
            ``(2) Low-performing school.--The term `low-performing 
        school' means an elementary school or secondary school that is 
        identified for school improvement under section 1116(c).
            ``(3) Professional development school.--The term 
        `professional development school' means a partnership that--
                    ``(A) is established between--
                            ``(i) 1 or more local educational agencies, 
                        acting on behalf of elementary schools or 
                        secondary schools served by the agencies; and
                            ``(ii) 1 or more institutions of higher 
                        education, including community colleges, that 
                        meet the requirements applicable to the 
                        institutions under title II of the Higher 
                        Education Act of 1965; and
                    ``(B)(i) provides sustained and high quality 
                preservice clinical experience, including the mentoring 
                of prospective teachers by veteran teachers;
                    ``(ii) substantially increases interaction between 
                faculty at institutions of higher education described 
                in subparagraph (A) and new and experienced teachers, 
                principals, and other administrators at elementary 
                schools or secondary schools; and
                    ``(iii) provides support, including preparation 
                time, for such interaction.

``SEC. 2134. DEFINITION.

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

                      ``Subpart 4--Accountability

``SEC. 2141. STATE PERFORMANCE OBJECTIVES AND ACCOUNTABILITY.

    ``(a) Required Activities.--Each State educational agency receiving 
a grant under this part shall establish for the State annual measurable 
performance objectives, with respect to teachers teaching in the State, 
that, at a minimum--
            ``(1) shall include an annual increase in the percentage of 
        highly qualified teachers, to ensure that all teachers teaching 
        core academic subjects in public elementary schools and 
        secondary schools, in which not less than 50 percent of the 
        students are from low-income families, are highly qualified not 
        later than the end of the fourth year for which the State 
        receives funds under this part (as amended by the Better 
        Education for Students and Teachers Act);
            ``(2) shall include an annual increase in the percentage of 
        teachers who are receiving high-quality professional 
        development (including teacher mentoring); and
            ``(3) may include incremental increases in teacher 
        performance.
    ``(b) Rule of Application.--For purposes of determining whether 
teachers in a State meet the criteria specified in the performance 
objectives referred to in subsection (a), the requirements of 
subsection (a) shall not apply to teachers in charter schools in the 
State if the State has a charter school law that exempts such teachers 
from State certification and licensing requirements.
    ``(c) Reports.--
            ``(1) Initial reports.--Not later than the end of the 
        fourth year for which the State receives funds under this part 
        (as amended by the Better Education for Students and Teachers 
        Act), each State educational agency receiving a grant under 
        this part shall prepare and submit to the Secretary an initial 
        report describing the State's progress with respect to the 
        performance objectives described in this section.
            ``(2) Subsequent reports.--
                    ``(A) States subject to sanctions.--The State 
                educational agency for a State that has received 
                sanctions under subsection (d) shall annually prepare 
                and submit to the Secretary a report describing such 
                progress, until the State is no longer subject to the 
                sanctions.
                    ``(B) States not subject to sanctions.--A State 
                educational agency that is not required to submit 
                annual reports under subparagraph (A) shall 
                periodically prepare and submit to the Secretary a 
                report describing such progress, to ensure that the 
                State is in compliance with the requirements of this 
                section.
    ``(d) Accountability.--
            ``(1) Reduction of funds.--
                    ``(A) Fourth year.--If the Secretary determines 
                that the State educational agency has failed to meet 
                the performance objectives established under subsection 
                (a), and has failed to make adequate yearly progress as 
                described under section 1111(b)(2), by the end of the 
                fourth year for which the State receives funds under 
                this part (as amended by the Better Education for 
                Students and Teachers Act), the Secretary shall 
                withhold 15 percent of the amount of funds that the 
                State may reserve for State administration under this 
                part for the fifth year for which the State receives 
                such funds.
                    ``(B) Fifth or sixth year.--If the Secretary 
                determines that the State educational agency has failed 
                to meet the performance objectives established under 
                subsection (a), and has failed to make adequate yearly 
                progress as described under section 1111(b)(2), by the 
                end of the fifth or sixth year for which the State 
                receives funds under this part (as amended by the 
                Better Education for Students and Teachers Act), the 
                Secretary shall withhold 20 percent of the amount of 
                funds that the State may reserve for State 
                administration under this part for the sixth or seventh 
                year, respectively, for which the State receives such 
                funds.
            ``(2) Exemption.--After making a determination for a year 
        under paragraph (1), the Secretary may provide the State 1 
        additional year to meet the performance objectives described in 
        subsection (a) or make such adequate yearly progress, before 
        using a sanction described in paragraph (1), if the State 
        demonstrates that exceptional or uncontrollable circumstances 
        have occurred, such as--
                    ``(A) a natural disaster; or
                    ``(B) a situation in which--
                            ``(i) a significant number of teachers has 
                        resigned, with insufficient notice, from 
                        employment with a local educational agency in 
                        the State that has historically had difficulty 
                        recruiting and hiring teachers; and
                            ``(ii) the remaining local educational 
                        agencies in the State, collectively, have met 
                        the performance objectives described in 
                        subsection (a) and have made such adequate 
                        yearly progress by the end of the year for 
                        which the Secretary makes the determination.

``SEC. 2142. LOCAL PERFORMANCE OBJECTIVES AND ACCOUNTABILITY.

    ``(a) Required Activities.--
            ``(1) Establishment by State educational agencies.--Each 
        State educational agency receiving a grant under this part 
        shall establish for local educational agencies in the State 
        annual measurable performance objectives, with respect to 
        teachers serving the local educational agencies, that, at a 
        minimum--
                    ``(A) shall include the increases described in 
                paragraphs (1) and (2) of section 2141(a); and
                    ``(B) may include the increases described in 
                section 2141(a)(3).
            ``(2) Establishment by local educational agencies.--Each 
        local educational agency receiving a subgrant under this part--
                    ``(A) shall establish for the local educational 
                agency an annual measurable performance objective for 
                increasing teacher retention among teachers in the 
                first 3 years of their teaching careers; and
                    ``(B) may establish other annual measurable 
                performance objectives.
    ``(b) Reports.--Each local educational agency receiving a subgrant 
under this part shall annually prepare and submit to the State 
educational agency a report describing the progress of the local 
educational agency toward achieving the purpose of this part and 
meeting the performance objectives described in subsection (a).
    ``(c) Technical Assistance.--If a State educational agency 
determines that a local educational agency in the State has failed to 
make substantial progress toward achieving the purpose and meeting the 
performance objectives described in subsection (a) and has failed to 
make adequate yearly progress as described under section 1111(b)(2) for 
2 consecutive years for which the local educational agency receives 
funds under this part (as amended by the Better Education for Students 
and Teachers Act), the State educational agency shall provide technical 
assistance--
            ``(1) to the local educational agency; and
            ``(2) if applicable, to schools served by the local 
        educational agency that need assistance to enable the local 
        educational agency to achieve the purpose and meet the 
        performance objectives.
    ``(d) Accountability.--If the State educational agency determines 
that the local educational agency has failed to make substantial 
progress toward achieving the purpose and meeting the performance 
objectives described in subsection (a), and has failed to make adequate 
yearly progress as described under section 1111(b)(2), for 3 
consecutive years for which the local educational agency receives funds 
under this part (as amended by the Better Education for Students and 
Teachers Act), the State educational agency shall--
            ``(1) withhold the allocation described in section 2121(b) 
        from the local educational agency for 2 fiscal years; and
            ``(2) use the funds to carry out programs to assist the 
        local educational agency to achieve the purpose and meet the 
        performance objectives

``SEC. 2143. GENERAL ACCOUNTING OFFICE STUDY.

    ``Not later than January 1, 2005, the Comptroller General of the 
United States shall prepare and submit to Congress a report setting 
forth information regarding--
            ``(1) the progress of the States in achieving compliance 
        concerning increasing the percentage of highly qualified 
        teachers, for fiscal years 2001 through 2003, so that, not 
        later than the end of the fourth year for which the States 
        receive funds under this part (as amended by the Better 
        Education for Students and Teachers Act), all teachers teaching 
        core academic subjects in public elementary schools or 
        secondary schools, in which not less than 50 percent of the 
        students are from low-income families, are highly qualified;
            ``(2) any significant obstacles that States face in 
        achieving that compliance, such as teacher shortages in 
        particular academic subjects, grade levels, or geographic 
        areas, district-to-district pay differentials, and particular 
        provisions of collective bargaining agreements; and
            ``(3) the approximate percentage of Federal, State, and 
        local resources being expended to carry out activities to 
        provide professional development for teachers, and recruit and 
        retain highly qualified teachers, especially in geographic 
        areas and core academic subjects in which a shortage of such 
        teachers exists, so that, not later than the end of the fourth 
        year for which the States receive funds under this part (as 
        amended by the Better Education for Students and Teachers Act), 
        all teachers teaching core academic subjects in public 
        elementary schools or secondary schools, in which not less than 
        50 percent of the students qualify for free or reduced price 
        lunches under the school lunch program established under the 
        Richard B. Russell National School Lunch Act (42 U.S.C. 1751 et 
        seq.), are highly qualified.

                     ``Subpart 5--National Programs

``SEC. 2151. NATIONAL PROGRAMS OF DEMONSTRATED EFFECTIVENESS.

    ``(a) In General.--The Secretary shall use funds made available 
under section 2103(b) to carry out each of the activities described in 
subsections (c) through (d).
    ``(b) School Leadership.--
            ``(1) Definitions.--
                    ``(A) High-need local educational agency.--The term 
                `high-need local educational agency' means a local 
                educational agency for which more than 30 percent of 
                the students served by the local educational agency are 
                students in poverty.
                    ``(B) Poverty line.--The term `poverty line' means 
                the income official 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.
                    ``(C) Student in poverty.--The term `student in 
                poverty' means a student from a family with an income 
                below the poverty line.
            ``(2) Program.--The Secretary shall establish and carry out 
        a national principal recruitment program.
            ``(3) Grants.--
                    ``(A) In general.--In carrying out the program, the 
                Secretary shall make grants, on a competitive basis, to 
                high-need local educational agencies that seek to 
                recruit and train principals (including assistant 
                principals).
                    ``(B) Use of funds.--An agency that receives a 
                grant under subparagraph (A) may use the funds made 
                available through the grant to carry out principal 
                recruitment and training activities that may include--
                            ``(i) providing stipends for master 
                        principals who mentor new principals;
                            ``(ii) using funds innovatively to recruit 
                        new principals, including recruiting the 
                        principals by providing pay incentives or 
                        bonuses;
                            ``(iii) developing career mentorship and 
                        professional development ladders for teachers 
                        who want to become principals; and
                            ``(iv) developing incentives, and 
                        professional development and instructional 
                        leadership training programs, to attract 
                        individuals from other fields, including 
                        business and law, to serve as principals.
                    ``(C) Application and plan.--To be eligible to 
                receive a grant under this subsection, a local 
                educational agency shall submit an application to the 
                Secretary at such time, in such manner, and containing 
                such information as the Secretary may require. The 
                application shall include--
                            ``(i) a needs assessment concerning the 
                        shortage of qualified principals in the school 
                        district involved and an assessment of the 
                        potential for recruiting and retaining 
                        prospective and aspiring leaders, including 
                        teachers who are interested in becoming 
                        principals; and
                            ``(ii) a comprehensive plan for recruitment 
                        and training of principals, including plans for 
                        mentorship programs, ongoing professional 
                        development, and instructional leadership 
                        training, for high-need schools served by the 
                        agency.
                    ``(D) Priority.--In making grants under this 
                subsection, the Secretary shall give priority to local 
                educational agencies that demonstrate that the agencies 
                will carry out the activities described in subparagraph 
                (B) in partnership with nonprofit organizations and 
                institutions of higher education.
                    ``(E) Supplement not supplant.--Funds appropriated 
                to carry out this subsection shall be used to 
                supplement and not supplant other Federal, State, and 
                local public funds expended to provide principal 
                recruitment and retention activities.
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $50,000,000 for 
        fiscal year 2002 and each subsequent fiscal year.
    ``(c) Advanced Certification or Advanced Credentialing.--
            ``(1) In general.--The Secretary shall support activities 
        to encourage and support teachers seeking advanced 
        certification or advanced credentialing through high quality 
        professional teacher enhancement programs designed to improve 
        teaching and learning.
            ``(2) Implementation.--In carrying out paragraph (1), the 
        Secretary shall make grants to the National Board for 
        Professional Teaching Standards, State educational agencies, 
        local educational agencies, or other recognized entities, to 
        promote outreach, teacher recruitment, teacher subsidy, or 
        teacher support programs related to teacher certification by 
        the National Board for Professional Teaching Standards and 
        other nationally recognized certification organizations.
    ``(d) Transition to Teaching.--The Secretary shall provide 
assistance for activities to support the development and implementation 
of national or regional programs to--
            ``(1) recruit, prepare, place, and support mid-career 
        professionals who have knowledge and experience that will help 
        the professionals become highly qualified teachers, through 
        alternative routes to certification, for high need local 
        educational agencies; and
            ``(2) help retain the professionals as classroom teachers 
        serving the local educational agencies for more than 3 years.
    ``(e) Careers to Classrooms.--
            ``(1) Purposes.--The purposes of this subsection are--
                    ``(A) to establish a program to recruit and retain 
                highly qualified mid-career professionals, recent 
                graduates from an institution of higher education, and 
                certain paraprofessionals, as teachers in high need 
                schools, including recruiting teachers through 
                alternative routes to certification; and
                    ``(B) to encourage the development and expansion of 
                alternative routes to certification under State-
                approved programs that enable individuals to be 
                eligible for teacher certification within a reduced 
                period of time, relying on the experience, expertise, 
                and academic qualifications of an individual, or other 
                factors in lieu of traditional course work in the field 
                of education.
            ``(2) Definitions.--In this subsection:
                    ``(A) Eligible participant.--The term `eligible 
                participant' means--
                            ``(i) an individual with substantial, 
                        demonstrable career experience and competence 
                        in a field for which there is a significant 
                        shortage of qualified teachers, such as 
                        mathematics, natural science, technology, 
                        engineering, and special education;
                            ``(ii) an individual who is a graduate of 
                        an institution of higher education who--
                                    ``(I) has graduated not later than 
                                3 years before applying to an agency or 
                                consortium to teach under this 
                                subsection;
                                    ``(II) in the case of an individual 
                                wishing to teach in a secondary school, 
                                has completed an academic major (or 
                                courses totaling an equivalent number 
                                of credit hours) in the academic 
                                subject that the individual will teach;
                                    ``(III) has graduated in the top 50 
                                percent of the individual's 
                                undergraduate or graduate class;
                                    ``(IV) can demonstrate a high level 
                                of competence through a high level of 
                                performance in the academic subject 
                                that the individual will teach; and
                                    ``(V) meets any additional academic 
                                or other standards or qualifications 
                                established by the State; or
                            ``(iii) a paraprofessional who--
                                    ``(I) has been working as a 
                                paraprofessional in an instructional 
                                role in an elementary school or 
                                secondary school for at least 2 years;
                                    ``(II) can demonstrate that the 
                                paraprofessional is capable of 
                                completing a bachelor's degree in not 
                                more than 2 years and is in the top 50 
                                percent of the individual's 
                                undergraduate class;
                                    ``(III) will work toward completion 
                                of an academic major (or courses 
                                totaling an equivalent number of credit 
                                hours) in the academic subject that the 
                                paraprofessional will teach; and
                                    ``(IV) can demonstrate a high level 
                                of competence through a high level of 
                                performance in the academic subject 
                                that the paraprofessional will teach.
                    ``(B) High need local educational agency.--The term 
                `high need local educational agency' means a local 
                educational agency that serves--
                            ``(i) a high need school district; and
                            ``(ii) a high need school.
                    ``(C) High need school.--The term `high need 
                school' means a school that--
                            ``(i)(I) is located in an area in which the 
                        percentage of students from families with 
                        incomes below the poverty line is 30 percent or 
                        more; or
                            ``(II) is located in an area, other than a 
                        metropolitan statistical area, that the State 
                        determines has a high percentage of students 
                        from families with incomes below the poverty 
                        line or that has experienced greater than 
                        normal difficulty in recruiting or retaining 
                        teachers; and
                            ``(ii) is located in an area in which there 
                        is a high percentage of secondary school 
                        teachers not teaching in the content area in 
                        which teachers were trained to teach, is within 
                        the top quartile of schools statewide, as 
                        ranked by the number of unfilled, available 
                        teacher positions at the schools, is located in 
                        an area in which there is a high teacher 
                        turnover rate, or is located in an area in 
                        which there is a high percentage of teachers 
                        who are not certified or licensed.
                    ``(D) High need school district.--The term `high 
                need school district' means a school district in which 
                there is--
                            ``(i)(I) a high need school; and
                            ``(II) a high percentage of individuals 
                        from families with incomes below the poverty 
                        line; and
                            ``(ii)(I) a high percentage of secondary 
                        school teachers not teaching in the content 
                        area in which the teachers were trained to 
                        teach; or
                            ``(II) a high teacher turnover rate.
                    ``(E) Poverty line.--The term `poverty line' means 
                the income official 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.
            ``(3) Grant program.--
                    ``(A) In general.--The Secretary shall establish a 
                program to make grants on a competitive basis to State 
                educational agencies, regional consortia of State 
                educational agencies, high need local educational 
                agencies, and consortia of high need local educational 
                agencies, to develop State and local teacher corps or 
                other programs to establish, expand, or enhance teacher 
                recruitment and retention efforts.
                    ``(B) Priority.--In making such a grant, the 
                Secretary shall give priority to an agency or 
                consortium of agencies that applies for the grant in 
                collaboration with an institution of higher education 
                or a nonprofit organization that has a proven record of 
                effectively recruiting and retaining highly qualified 
                teachers in high need school districts.
            ``(4) Application.--
                    ``(A) In general.--To be eligible to receive a 
                grant under this subsection, an agency or consortium 
                described in paragraph (3) shall submit an application 
                to the Secretary at such time, in such manner, and 
                containing such information as the Secretary may 
                require.
                    ``(B) Contents.--The application shall--
                            ``(i) describe how the agency or consortium 
                        will use funds received under this subsection 
                        to develop a teacher corps or other program to 
                        recruit and retain highly qualified mid-career 
                        professionals, recent graduates from an 
                        institution of higher education, and 
                        paraprofessionals as teachers in high need 
                        schools;
                            ``(ii) explain how the agency or consortium 
                        will determine that teacher candidates seeking 
                        to participate in a program under this section 
                        are eligible participants;
                            ``(iii) explain how the program will meet 
                        the relevant State laws (including regulations) 
                        related to teacher certification and licensing;
                            ``(iv) explain how the agency or consortium 
                        will ensure that no paraprofessional will be 
                        hired through the program as a teacher until 
                        the paraprofessional has obtained a bachelor's 
                        degree and meets the requirements of subclauses 
                        (II) through (V) of paragraph (2)(A)(ii);
                            ``(v) include a determination of the high 
                        need academic subjects in the jurisdiction 
                        served by the agency or consortium and how the 
                        agency or consortium will recruit teachers for 
                        those subjects;
                            ``(vi) describe how the grant will increase 
                        the number of highly qualified teachers in high 
                        need schools in high need school districts that 
                        are urban or rural school districts;
                            ``(vii) describe how the agency or 
                        consortium described in paragraph (3) has met 
                        the requirements of subparagraph (C);
                            ``(viii) describe how the agency or 
                        consortium will coordinate the activities 
                        carried out with the funds with activities 
                        carried out with other Federal, State, and 
                        local funds for teacher recruitment and 
                        retention;
                            ``(ix) describe the plan of the agency or 
                        consortium described in paragraph (3) to 
                        recruit and retain highly qualified teachers in 
                        the high need academic subjects and high need 
                        schools and facilitate the certification or 
                        licensing of such teachers; and
                            ``(x) describe how the agency or consortium 
                        described in paragraph (3) will meet the 
                        requirements of paragraph (7)(A).
                    ``(C) Collaboration.--In developing the 
                application, the agency or consortium shall consult 
                with and seek input from--
                            ``(i) in the case of a partnership 
                        established by a State educational agency or 
                        consortium of such agencies, representatives of 
                        local educational agencies, including teachers, 
                        principals, superintendents, and school board 
                        members (including representatives of their 
                        professional organizations if appropriate);
                            ``(ii) in the case of a partnership 
                        established by a local educational agency or a 
                        consortium of such agencies, representatives of 
                        a State educational agency;
                            ``(iii) elementary school and secondary 
                        school teachers, including representatives of 
                        their professional organizations;
                            ``(iv) institutions of higher education;
                            ``(v) parents; and
                            ``(vi) other interested individuals and 
                        organizations, such as businesses, experts in 
                        curriculum development, and nonprofit 
                        organizations with a proven record of 
                        effectively recruiting and retaining highly 
                        qualified teachers in high need school 
                        districts.
            ``(5) Duration of grants.--The Secretary may make grants 
        under this subsection for periods of 5 years. At the end of the 
        5-year period for such a grant, the grant recipient may apply 
        for an additional grant under this subsection.
            ``(6) Equitable distribution.--The Secretary shall ensure 
        an equitable geographic distribution of grants among the 
        regions of the United States.
            ``(7) Requirements.--
                    ``(A) Targeting.--An agency or consortium that 
                receives a grant under this subsection to carry out a 
                program shall ensure that participants in the program 
                recruited with funds made available under this 
                subsection are placed in high need schools, within high 
                need school districts. In placing the participants in 
                the schools, the agency or consortium shall give 
                priority to the schools that are located in areas with 
                the highest percentage of students from families with 
                incomes below the poverty line.
                    ``(B) Supplement not supplant.--Funds made 
                available under this subsection shall be used to 
                supplement and not supplant State and local public 
                funds expended for teacher recruitment and retention 
                programs, including programs to recruit the teachers 
                through alternative routes to certification.
                    ``(C) Partnerships established by local educational 
                agencies.--In the case of a partnership established by 
                a local educational agency or a consortium of such 
                agencies to carry out a program under this section the 
                local educational agency or consortium shall not be 
                eligible to receive funds through a State program under 
                this section.
            ``(8) Uses of funds.--
                    ``(A) In general.--An agency or consortium that 
                receives a grant under this subsection shall use the 
                funds made available through the grant to develop a 
                teacher corps or other program in order to establish, 
                expand, or enhance a teacher recruitment and retention 
                program for highly qualified mid-career professionals, 
                graduates of institutions of higher education, and 
                paraprofessionals, who are eligible participants, 
                including activities that provide alternative routes to 
                teacher certification.
                    ``(B) Specific activities.--The agency or 
                consortium shall use the funds to carry out a teacher 
                corps or other program that includes 2 or more 
                activities that consist of--
                            ``(i)(I) providing loans, scholarships, 
                        stipends, bonuses, and other financial 
                        incentives, that are linked to participation in 
                        activities that have proven effective in 
                        retaining teachers in higher need school 
                        districts, to all eligible participants (in an 
                        amount of not more than the lesser of $5,000 
                        per eligible participant) who--
                                    ``(aa) are enrolled in a program 
                                under this section located in a State; 
                                and
                                    ``(bb) agree to seek certification 
                                through alternative routes to 
                                certification in that State; and
                            ``(II) giving a preference, in awarding the 
                        loans, scholarships, stipends, bonuses, and 
                        other financial incentives, to individuals who 
                        the State determines have financial need for 
                        such loans, scholarships, stipends, bonuses, 
                        and other financial incentives;
                            ``(ii) making payments (in an amount of not 
                        more than $5,000 per eligible participant) to 
                        schools to pay for costs associated with 
                        accepting teachers recruited under this 
                        subsection from among eligible participants or 
                        to provide financial incentives to prospective 
                        teachers who are eligible participants;
                            ``(iii) providing mentoring;
                            ``(iv) providing internships;
                            ``(v) carrying out co-teaching 
                        arrangements;
                            ``(vi) providing high quality, sustained 
                        in-service professional development 
                        opportunities;
                            ``(vii) offering opportunities for teacher 
                        candidates to participate in preservice, high 
                        quality course work;
                            ``(viii) collaboration with institutions of 
                        higher education in developing and implementing 
                        programs to facilitate teacher recruitment 
                        (including teacher credentialing) and teacher 
                        retention programs;
                            ``(ix) providing accelerated 
                        paraprofessional-to-teacher programs that 
                        provide a paraprofessional with sufficient 
                        training and development to enable the 
                        paraprofessional to complete a bachelor's 
                        degree and fulfill other State certification or 
                        licensing requirements and that provide full 
                        pay and leave from paraprofessional duties for 
                        the period necessary to complete the degree and 
                        become certified or licensed; and
                            ``(x) carrying out other programs, 
                        projects, and activities that--
                                    ``(I) are designed and have proven 
                                to be effective in recruiting and 
                                retaining teachers; and
                                    ``(II) the Secretary determines to 
                                be appropriate.
                    ``(C) Development of long-term recruitment and 
                retention strategies.--In addition to the activities 
                authorized under subparagraph (B), an agency or 
                consortium that receives a grant under this subsection 
                may use the funds made available through the grant 
                for--
                            ``(i) the establishment and operation, or 
                        expansion and improvement, of a statewide or 
                        regionwide clearinghouse for the recruitment 
                        and placement of preschool, elementary school, 
                        secondary school, and vocational and technical 
                        school teachers (which shall not be subject to 
                        the targeting requirements under paragraph 
                        (7)(A));
                            ``(ii) the establishment of administrative 
                        structures necessary for the development and 
                        implementation of programs to provide 
                        alternative routes to certification;
                            ``(iii) the development of reciprocity 
                        agreements between or among States for the 
                        certification or licensure of teachers; and
                            ``(iv) the implementation of other 
                        activities designed to ensure the use of long-
                        term teacher recruitment and retention 
                        strategies.
                    ``(D) Effective activities.--The agency or 
                consortium shall use the funds only for activities that 
                have proven effective in both recruiting and retaining 
                teachers.
            ``(9) Repayment.--The recipient of a loan under this 
        subsection shall immediately repay amounts received under such 
        loan, and the recipient of a scholarship, stipend, bonus, or 
        other financial incentive under this subsection shall repay 
        amounts received under such scholarship, stipend, bonus, or 
        other financial incentive, to the agency or consortium from 
        which the loan, scholarship, stipend, bonus, or other financial 
        incentive was received if--
                    ``(A) the recipient involved fails to complete the 
                applicable program providing alternative routes to 
                certification;
                    ``(B) the recipient rejects a bona fide offer of 
                employment at a high need school served by that agency 
                or consortium during the 1-year period beginning on the 
                date on which the recipient completes such a program; 
                or
                    ``(C) the recipient fails to teach for at least 2 
                years in a high need school served by that agency or 
                consortium during the 5-year period beginning on the 
                date on which the individual completes such a program.
            ``(10) Administrative funds.--No agency or consortium that 
        receives a grant under this subsection shall use more than 5 
        percent of the funds made available through the grant for the 
        administration of a program under this section carried out 
        under the grant.
            ``(11) Evaluation and accountability for recruiting and 
        retaining teachers.--
                    ``(A) Evaluation.--Each agency or consortium that 
                receives a grant under this subsection shall conduct--
                            ``(i) an interim evaluation of the program 
                        funded under the grant at the end of the third 
                        year of the grant period; and
                            ``(ii) a final evaluation of the program at 
                        the end of the fifth year of the grant period.
                    ``(B) Contents.--In conducting the evaluation, the 
                agency or consortium shall describe the extent to which 
                local educational agencies that received funds through 
                the grant have met those goals relating to teacher 
                recruitment and retention described in the application.
                    ``(C) Reports.--The agency or consortium shall 
                prepare and submit to the Secretary and to Congress 
                interim and final reports containing the results of the 
                interim and final evaluations, respectively.
                    ``(D) Revocation.--If the Secretary determines that 
                the recipient of a grant under this subsection has not 
                made substantial progress in meeting the goals and 
                objectives of the grant by the end of the third year of 
                the grant period, the Secretary--
                            ``(i) shall revoke the payment made for the 
                        fourth year of the grant period; and
                            ``(ii) shall not make a payment for the 
                        fifth year of the grant period.
            ``(12) Authorization of appropriations.--There is 
        authorized to be appropriated to carry out this subsection 
        $200,000,000 for fiscal year 2002 and such sums as may be 
        necessary for each of the 6 succeeding fiscal years.
    ``(f) National Teacher Recruitment Campaign.--
            ``(1) Grant.--The Secretary shall award a grant, on a 
        competitive basis, to a single national coalition of teacher 
        and media organizations, including the National Teacher 
        Recruitment Clearinghouse, to enable such organizations to 
        jointly conduct a national public service campaign as described 
        in paragraph (2).
            ``(2) Use of funds.--A coalition that receives a grant 
        under paragraph (1) shall use amounts made available under the 
        grant to conduct a national public service campaign concerning 
        the resources for and routes to entering the field of teaching. 
        In conducting the campaign, the coalition shall focus on 
        providing information both to a national audience and in 
        specific media markets, and shall specifically expand on, 
        promote, and link the coalition's outreach efforts to, the 
        information referral activities and resources of the National 
        Teacher Recruitment Clearinghouse.
            ``(3) Application.--To be eligible to receive a grant under 
        this subsection, a coalition shall prepare and submit to the 
        Secretary an application at such time, in such manner, and 
        containing such information as the Secretary may require.
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $3,000,000 for 
        fiscal year 2002 and each of the 6 succeeding fiscal years.

             ``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS

``SEC. 2201. PURPOSE.

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

``SEC. 2202. DEFINITIONS.

    ``In this part:
            ``(1) Eligible partnership.--The term `eligible 
        partnership' means a partnership that--
                    ``(A) shall include--
                            ``(i) a State educational agency;
                            ``(ii) an engineering, mathematics or 
                        science department of an institution of higher 
                        education; and
                            ``(iii) a local educational agency; and
                    ``(B) may include--
                            ``(i) another engineering, mathematics, 
                        science, or teacher training department of an 
                        institution of higher education;
                            ``(ii) another local educational agency, or 
                        an elementary school or secondary school;
                            ``(iii) a business; or
                            ``(iv) a nonprofit organization of 
                        demonstrated effectiveness, including a museum 
                        or high-impact public coalition composed of 
                        leaders from business, kindergarten through 
                        grade 12 education, institutions of higher 
                        education, and public policy organizations.
            ``(2) High need local educational agency.--The term `high 
        need local educational agency' has the meaning given the term 
        in section 201(b) of the Higher Education Act of 1965.
            ``(3) Summer workshop or institute.-- The term `summer 
        workshop or institute' means a workshop or institute, conducted 
        during the summer, that--
                    ``(A) is conducted during a period of not less than 
                2 weeks;
                    ``(B) provides for a program that provides direct 
                interaction between students and faculty; and
                    ``(C) provides for followup training during the 
                academic year that--
                            ``(i) except as provided in clause (ii) or 
                        (iii), shall be conducted in the classroom for 
                        a period of not less than 3 days, which may or 
                        may not be consecutive;
                            ``(ii) if the program described in 
                        subparagraph (B) is for a period of not more 
                        than 2 weeks, shall be conducted for a period 
                        of more than 3 days; or
                            ``(iii) if the program is for teachers in 
                        rural school districts, may be conducted 
                        through distance education.

                  ``Subpart 1--Grants to Partnerships

``SEC. 2211. GRANTS AUTHORIZED.

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

``SEC. 2212. APPLICATION REQUIREMENTS.

    ``(a) In General.--Each eligible partnership desiring a grant under 
this subpart shall submit an application to the Secretary at such time, 
in such manner, and accompanied by such information as the Secretary 
may require.
    ``(b) Contents.--Each such application shall include--
            ``(1) the results of a comprehensive assessment of the 
        teacher quality and professional development needs of all the 
        schools and agencies participating in the eligible partnership 
        with respect to the teaching and learning of mathematics and 
        science, and such assessment may include, but not be limited 
        to, data that accurately represents--
                    ``(A) the participation of students in advanced 
                courses in mathematics and science,
                    ``(B) the percentages of secondary school classes 
                in mathematics and science taught by teachers with 
                academic majors in mathematics and science, 
                respectively,
                    ``(C) the number and percentage of mathematics and 
                science teachers who participate in content-based 
                professional development activities, and
                    ``(D) the extent to which elementary teachers have 
                the necessary content knowledge to teach mathematics 
                and science;
            ``(2) a description of how the activities to be carried out 
        by the eligible partnership will be aligned with State and 
        local standards and with other educational reform activities 
        that promote student achievement in mathematics and science;
            ``(3) a description of how the activities to be carried out 
        by the eligible partnership will be based on a review of 
        relevant research, and an explanation of why the activities are 
        expected to improve student performance and to strengthen the 
        quality of mathematics and science instruction;
            ``(4) a description of--
                    ``(A) how the eligible partnership will carry out 
                the authorized activities described in section 2213; 
                and
                    ``(B) the eligible partnership's evaluation and 
                accountability plan described in section 2214; and
            ``(5) a description of how the State educational agency and 
        local educational agency in the eligible partnership will 
        comply with section 6 (regarding participation by private 
        school children and teachers).

``SEC. 2213. AUTHORIZED ACTIVITIES.

    ``An eligible partnership shall use the grant funds provided under 
this subpart for 1 or more of the following activities related to 
elementary schools or secondary schools:
            ``(1) Developing or redesigning more rigorous mathematics 
        and science curricula that are aligned with State and local 
        standards and with the standards expected for postsecondary 
        study in mathematics and science, respectively.
            ``(2) Creating opportunities for enhanced and ongoing 
        professional development that improves the subject matter 
        knowledge of mathematics and science teachers.
            ``(3) Recruiting mathematics and science majors to teaching 
        through the use of--
                    ``(A) recruiting individuals with demonstrated 
                professional experience in mathematics or science 
                through the use of signing incentives and performance 
                incentives for mathematics and science teachers as long 
                as those incentives are linked to activities proven 
                effective in retaining teachers;
                    ``(B) stipends to mathematics teachers and science 
                teachers for certification through alternative routes;
                    ``(C) scholarships for teachers to pursue advanced 
                course work in mathematics or science; and
                    ``(D) carrying out any other program that the State 
                believes to be effective in recruiting into and 
                retaining individuals with strong mathematics or 
                science backgrounds in the teaching field.
            ``(4) Promoting strong teaching skills for mathematics and 
        science teachers and teacher educators, including integrating 
        reliable scientifically based research teaching methods and 
        technology-based teaching methods into the curriculum.
            ``(5) Establishing mathematics and science summer workshops 
        or institutes (including followup training) for teachers, using 
        curricula that are experiment-oriented, content-based, and 
        grounded in research that is current as of the date of the 
        workshop or institute involved.
            ``(6) Establishing distance learning programs for 
        mathematics and science teachers using curricula that are 
        innovative, content-based, and grounded in research that is 
        current as of the date of the program involved.
            ``(7) Designing programs to prepare a teacher at a school 
        to provide professional development to other teachers at the 
        school and to assist novice teachers at such school, including 
        (if applicable) a mechanism to integrate experiences from a 
        summer workshop or institute.
            ``(8) Designing programs to bring teachers into contact 
        with working engineers and scientists.
            ``(9) Designing programs to identify and develop 
        mathematics and science master teachers in the kindergarten 
        through grade 8 classrooms.
            ``(10) Performing a statewide systemic needs assessment of 
        mathematics, science, and technology education, analyzing the 
        assessment, developing a strategic plan based on the assessment 
        and its analysis, and engaging in activities to implement the 
        strategic plan consistent with the authorized activities in 
        this section.
            ``(11) Establishing a mastery incentive system for 
        elementary school or secondary school mathematics or science 
        teachers under which--
                    ``(A) experienced mathematics or science teachers 
                who are licensed or certified to teach in the State 
                demonstrate their mathematics or science knowledge and 
                teaching expertise, through objective means such as an 
                advanced examination or professional evaluation of 
                teaching performance and classroom skill including a 
                professional video;
                    ``(B) incentives shall be awarded to teachers 
                making the demonstration described in subparagraph (A);
                    ``(C) priority for such incentives shall be 
                provided to teachers who teach in high need and local 
                educational agencies; and
                    ``(D) the partnership shall devise a plan to ensure 
                that recipients of incentives under this paragraph 
                remain in the teaching profession.
            ``(12) Training teachers and developing programs to 
        encourage girls and young women to pursue postsecondary degrees 
        and careers in mathematics and science, including engineering 
        and technology.

``SEC. 2214. EVALUATION AND ACCOUNTABILITY PLAN.

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

``SEC. 2215. REPORT; REVOCATION OF GRANT.

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

   ``Subpart 2--Eisenhower Clearinghouse for Mathematics and Science 
                               Education

``SEC. 2221. CLEARINGHOUSE.

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

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

``SEC. 2231. PURPOSE; PROGRAM AUTHORITY.

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

``SEC. 2232. ELIGIBILITY.

    ``(a) Eligible Applicants.--In order to receive an award under this 
subpart, an applicant shall be a consortium that includes--
            ``(1) at least 1 institution of higher education that 
        offers a baccalaureate degree and prepares teachers for their 
        initial entry into teaching;
            ``(2) at least 1 State educational agency or local 
        educational agency; and
            ``(3) 1 or more entities consisting of--
                    ``(A) an institution of higher education (other 
                than the institution described in paragraph (1));
                    ``(B) a school or department of education at an 
                institution of higher education;
                    ``(C) a school or college of arts and sciences at 
                an institution of higher education;
                    ``(D) a professional association, foundation, 
                museum, library, for-profit business, public or private 
                nonprofit organization, community-based organization, 
                or other entity, with the capacity to contribute to the 
                technology-related reform of teacher preparation 
                programs.
    ``(b) Application Requirements.--In order to receive an award under 
this subpart, an eligible applicant shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require. Such application shall include--
            ``(1) a description of the proposed project, including how 
        the project would both ensure that individuals participating in 
        the project would be prepared to use advanced technology to 
        create learning environments conducive to preparing all 
        students, including girls and students who have economic and 
        educational disadvantages, to meet challenging State and local 
        content and student performance standards and to improve the 
        ability of at least 1 participating institution of higher 
        education as described in section 2232(a)(1) to ensure such 
        preparation;
            ``(2) a demonstration of--
                    ``(A) the commitment, including the financial 
                commitment, of each of the members of the consortium 
                for the proposed project; and
                    ``(B) the active support of the leadership of each 
                organization that is a member of the consortium for the 
                proposed project;
            ``(3) a description of how each member of the consortium 
        will be included in project activities;
            ``(4) a description of how the proposed project will be 
        continued after Federal funds are no longer awarded under this 
        subpart; and
            ``(5) a plan for the evaluation of the project, which shall 
        include benchmarks to monitor progress toward specific project 
        objectives.
    ``(c) Matching Requirements.--
            ``(1) In general.--The Federal share of the cost of any 
        project funded under this subpart shall not exceed 50 percent. 
        Except as provided in paragraph (2), the non-Federal share of 
        the cost of such project may be provided in cash or in kind, 
        fairly evaluated, including services.
            ``(2) Acquisition of equipment.--Not more than 10 percent 
        of the funds awarded for a project under this subpart may be 
        used to acquire equipment, networking capabilities, or 
        infrastructure, and the non-Federal share of the cost of any 
        such acquisition shall be provided in cash.

``SEC. 2233. USE OF FUNDS.

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

                    ``Subpart 4--General Provisions

``SEC. 2241. CONSULTATION WITH NATIONAL SCIENCE FOUNDATION.

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

``SEC. 2242. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Grants.--There are authorized to be appropriated to carry out 
subpart 1 $900,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of the 6 succeeding fiscal years.
    ``(b) Clearinghouse.--There are authorized to be appropriated to 
carry out subpart 2 $5,000,000 for fiscal year 2002 and such sums as 
may be necessary for each of the 6 succeeding fiscal years.
    ``(c) Technology Preparation.--There are authorized to be 
appropriated to carry out subpart 3 $150,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the 6 succeeding fiscal 
years.

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

``SEC. 2301. PURPOSE; GOAL.

    ``(a) Purpose.--The purpose of this part is to support a 
comprehensive system to effectively use technology in elementary and 
secondary schools to improve student academic achievement and 
performance.
    ``(b) Goal.--A goal of this part shall also be to assist every 
student in crossing the digital divide by ensuring that every child is 
technologically literate by the time the child finishes the 8th grade, 
regardless of the child's race, ethnicity, gender, income, geography, 
or disability. It shall be a further goal of this part to encourage the 
effective integration of technology resources and systems with teacher 
training and curriculum development to establish research-based methods 
that can be widely implemented into best practices by State and local 
educational agencies.

``SEC. 2302. DEFINITIONS.

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

``SEC. 2303. ALLOTMENT AND REALLOTMENT.

    ``(a) Limitation.--
            ``(1) In general.--From funds appropriated under this part, 
        the Secretary shall reserve such sums as may be necessary for 
        grants awarded under section 3136 and teacher training in 
        technology under section 3122 prior to the date of enactment of 
        the Better Education for Students and Teacher Act.
            ``(2) Bureau of Indian Affairs funded schools.--From funds 
        appropriated under this part, the Secretary shall reserve 0.75 
        percent of such funds for Bureau of Indian Affairs funded 
        schools. Not later than 6 months after the date of enactment of 
        the Better Education for Students and Teacher Act, the 
        Secretary of the Interior shall establish rules for 
        distributing such funds in accordance with a formula developed 
        by the Secretary of the Interior, in consultation with school 
        boards of Bureau of Indian Affairs funded schools taking into 
        consideration whether a minimum amount is needed to ensure 
        small schools can utilize funding effectively.
    ``(b) Allotment.--
            ``(1) In general.--Except as provided in paragraph (2), 
        each State educational agency shall be eligible to receive a 
        grant under this part for a fiscal year in an amount which 
        bears the same relationship to the amount made available under 
        section 2312 for such year as the amount such State received 
        under part A of title I for such year bears to the amount 
        received for such year under such part by all States.
            ``(2) Minimum.--No State educational agency shall be 
        eligible to receive a grant under paragraph (1) in any fiscal 
        year in an amount which is less than \1/2\ of 1 percent of the 
        amount made available under section 2312 for such year.
    ``(c) Reallotment of Unused Funds.--
            ``(1) In general.--The amount of any State educational 
        agency's allotment under subsection (b) for any fiscal year 
        which the State determines will not be required for such fiscal 
        year to carry out this part shall be available for reallotment 
        from time to time, on such dates during such year as the 
        Secretary may determine, to other State educational agencies in 
        proportion to the original allotments to such State educational 
        agencies under subsection (b) for such year, but with such 
        proportionate amount for any of such other State educational 
        agencies being reduced to the extent such amount exceeds the 
        sum the State estimates such State needs and will be able to 
        use for such year.
            ``(2) Other reallotments.--The total of reductions under 
        paragraph (1) shall be similarly reallotted among the State 
        educational agencies whose proportionate amounts were not so 
        reduced. Any amounts reallotted to a State educational agency 
        under this subsection during a year shall be deemed a subpart 
        of such agency's allotment under subsection (b) for such year.

``SEC. 2304. TECHNOLOGY GRANTS.

    ``(a) Grants to States.--
            ``(1) In general.--From amounts made available under 
        section 2303, the Secretary, through the Office of Educational 
        Technology, shall award grants to State educational agencies 
        having applications approved under section 2305. The Secretary 
        shall give priority when awarding grants under this paragraph 
        to State educational agencies whose applications submitted 
        under section 2305 outline a strategy to carry out part E.
            ``(2) Use of grants.--
                    ``(A) Award to agencies.--Each State educational 
                agency receiving a grant under paragraph (1) shall use 
                such grant funds to award grants, on a competitive 
                basis, to local educational agencies to enable such 
                local educational agencies to carry out the activities 
                described in section 2306.
                    ``(B) Sufficiency.--In awarding grants under 
                subparagraph (A), each State educational agency shall 
                ensure that each such grant is of sufficient duration, 
                and of sufficient size, scope, and quality, to carry 
                out the purposes of this part effectively.
                    ``(C) Priority.--In awarding the grants, each State 
                educational agency shall give priority to the local 
                educational agencies serving the school districts that 
                have the highest number or percentage of children in 
                poverty and have a substantial demonstrated need for 
                assistance in acquiring and integrating technology.
                    ``(D) Distribution.--In awarding the grants, each 
                State educational agency shall assure an equitable 
                distribution of assistance under this part among urban 
                and rural areas of the State, according to the 
                demonstrated need of the local educational agencies 
                serving the areas.
    ``(b) Technical Assistance.--Each State educational agency 
receiving a grant under subsection (a) shall--
            ``(1) identify the local educational agencies served by the 
        State educational agency that--
                    ``(A) have the highest number or percentage of 
                children in poverty; and
                    ``(B) demonstrate to such State educational agency 
                the greatest need for technical assistance in 
                developing the application under 2307; and
            ``(2) offer such technical assistance to such local 
        educational agencies.

``SEC. 2305. STATE APPLICATION.

    ``To receive a grant under this part, each State educational agency 
shall submit an application to the Secretary at such time, in such 
manner, and accompanied by such information as the Secretary may 
reasonably require, including a systemic statewide educational 
technology plan that--
            ``(1) outlines the long-term strategies for improving 
        student performance, academic achievement, and technology 
        literacy, through the effective use of technology in classrooms 
        throughout the State, including through improving the capacity 
        of teachers to effectively integrate technology into the 
        curricula and instruction;
            ``(2) outlines how the plan incorporates--
                    ``(A) teacher education and professional 
                development;
                    ``(B) curricular development; and
                    ``(C) technology resources and systems for the 
                purpose of establishing best practices that can be 
                widely implemented by State and local educational 
                agencies;
            ``(3) outlines the strategies for increasing parental 
        involvement in schools through the effective use of technology;
            ``(4) outlines long-term strategies for financing 
        technology education in the State to ensure all students, 
        teachers, and classrooms will have access to technology, 
        describes how the State will use funds provided under this part 
        to help ensure such access, 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;
            ``(5) contains an assurance that the State educational 
        agency will comply with section 6 (regarding participation by 
        private school children and teachers);
            ``(6) provides assurance that financial assistance provided 
        under this part shall supplement, not supplant, State and local 
        funds;
            ``(7) meets such other criteria as the Secretary may 
        establish in order to enable such agency to provide assistance 
        to local educational agencies that have the highest numbers or 
        percentages of children in poverty and demonstrate the greatest 
        need for technology, in order to enable such local educational 
        agencies, for the benefit of school sites served by such local 
        educational agencies, to improve student academic achievement 
        and student performance; and
            ``(8) outlines how the plan incorporates--
                    ``(A) teacher education and professional 
                development;
                    ``(B) curricular development; and
                    ``(C) technology resources and systems for the 
                purpose of establishing best practices that can be 
                widely implemented by the State and local educational 
                agencies.

``SEC. 2306. LOCAL USES OF FUNDS.

    ``(a) In General.--Each local educational agency, to the extent 
possible, shall use the funds made available under section 2304(a)(2) 
for--
            ``(1) acquiring, adapting, expanding, implementing and 
        maintaining existing and new applications of technology, to 
        support the school reform effort, improve student academic 
        achievement, performance, and technology literacy;
            ``(2) providing ongoing professional development in the 
        integration of quality educational technologies into school 
        curriculum;
            ``(3) acquiring connectivity linkages, resources, and 
        services, including the acquisition of hardware and software, 
        for use by teachers, students, academic counselors, and school 
        library media personnel in the classroom, in academic and 
        college counseling centers, or in school library media centers, 
        in order to improve student academic achievement and student 
        performance;
            ``(4) acquiring connectivity with wide area networks for 
        purposes of accessing information, educational programming 
        sources and professional development, particularly with 
        institutions of higher education and public libraries;
            ``(5) providing educational services for adults and 
        families;
            ``(6) repairing and maintaining school technology 
        equipment;
            ``(7) acquiring, expanding, and implementing technology to 
        collect, manage, and analyze data, including student 
        achievement data, to inform teaching, decision-making, and 
        school improvement efforts, including the training of teachers 
        and administrators;
            ``(8) using technology to promote parent and family 
        involvement and support communications between parents, 
        teachers, and students; and
            ``(9) acquiring connectivity linkages, resources, and 
        services, including the acquisition of hardware and software, 
        for use by teachers, students, academic counselors, and school 
        library media personnel in the classroom, in academic and 
        college counseling centers, or in school library media centers, 
        in order to improve student academic achievement and student 
        performance.
    ``(b) Allowable Uses of Funds.--Each local educational agency may 
use the funds made available under section 2304(a)(2) for--
            ``(1) utilizing technology to develop or expand efforts to 
        connect schools and teachers with parents to promote meaningful 
        parental involvement and foster increased communication about 
        curriculum, assignments, and assessments; and
            ``(2) providing support to help parents understand the 
        technology being applied in their child's education so that 
        parents are able to reinforce their child's learning.
    ``(c) Special Rule.--A local educational agency receiving a grant 
under this part shall use at least 30 percent of allocated funds for 
professional development.

``SEC. 2307. LOCAL APPLICATION.

    ``(a) Application.--Each local educational agency desiring 
assistance from a State educational agency under section 2304(a)(2) 
shall submit an application, consistent with the objectives of the 
systemic statewide plan, to the State educational agency at such time, 
in such manner, and accompanied by such information as the State 
educational agency may reasonably require. Such application, at a 
minimum, shall include an updated version of a strategic, long-range 
plan (3 to 5 years) that includes--
            ``(1) a description of how the activities to be carried out 
        by the local educational agency under this part will be based 
        on a review of relevant research and an explanation of why the 
        activities are expected to improve student achievement, and 
        technology literacy;
            ``(2) an explanation of how the acquired technologies will 
        be integrated into the curriculum to help the local educational 
        agency improve student academic achievement, student 
        performance, and teaching;
            ``(3) a description of how the local educational agency 
        will ensure the effective use of technology to promote parental 
        involvement and increase communication with parents;
            ``(4) a description of how parents will be informed of the 
        use of technologies so that the parents are able to reinforce 
        at home the instruction their child receives at school;
            ``(5) a description of the type of technologies to be 
        acquired, including services, software, and digital curricula, 
        including specific provisions for interoperability among 
        components of such technologies;
            ``(6) a description of how the local educational agency 
        will ensure ongoing, sustained professional development for 
        teachers, administrators, and school library media personnel 
        served by the local educational agency to further the effective 
        use of technology in the classroom or library media center, 
        including a list of those entities that will partner with the 
        local educational agency in providing ongoing sustained 
        professional development;
            ``(7) the projected cost of technologies to be acquired and 
        related expenses needed to implement the plan;
            ``(8) a description of how the local educational agency 
        will coordinate the technology provided pursuant to this part 
        with other grant funds available for technology from other 
        Federal, State, and local sources;
            ``(9) a description of a process for the ongoing evaluation 
        of how technologies acquired under this part will be integrated 
        into the school curriculum and will affect technology literacy, 
        student academic achievement, and performance, as related to 
        challenging State content standards and State student 
        performance standards in all subjects;
            ``(10) a description of how the local educational agency 
        will comply with section 6 (regarding participation by private 
        school children and teachers); and
            ``(11) a description of the evaluation plan that the local 
        educational agency will carry out pursuant to section 2308(a).
    ``(b) Formation of Consortia.--A local educational agency for any 
fiscal year may apply for financial assistance as part of a consortium 
with other local educational agencies, institutions of higher 
education, intermediate educational units, libraries, or other 
educational entities appropriate to provide local programs. The State 
educational agency may assist in the formation of consortia among local 
educational agencies, providers of educational services for adults and 
families, institutions of higher education, intermediate educational 
units, libraries, or other appropriate educational entities to provide 
services for the teachers and students in a local educational agency at 
the request of such local educational agency.
    ``(c) Coordination of Application Requirements.--If a local 
educational agency submitting an application for assistance under this 
section has developed a comprehensive education improvement plan, the 
State educational agency may approve such plan, or a component of such 
plan if the State educational agency determines that such approval 
would further the purposes of this part.

``SEC. 2308. ACCOUNTABILITY.

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

``SEC. 2309. NATIONAL EVALUATION OF TECHNOLOGY PLANS.

    ``Not later than 36 months after the date of enactment of this 
title, the Secretary, in consultation with other Federal departments or 
agencies, State and local educational practitioners, and policy makers, 
including teachers, principals and superintendents, and experts in 
technology and the application of technology to education, shall report 
to Congress on best practices in implementing technology effectively 
consistent with the provisions of section 2305(2). The report shall 
include recommendations for revisions to the National Education 
Technology Plan for the purpose of establishing best practices that can 
be widely implemented by State and local educational agencies.

``SEC. 2310. NATIONAL EDUCATION TECHNOLOGY PLAN.

    ``(a) In General.--Not later than 12 months after the date of 
enactment of this section, the Secretary shall prepare the national 
long-range plan that supports the overall national technology policy. 
The Secretary shall update such plan periodically when appropriate.
    ``(b) Consultation.--In preparing the plan described in subsection 
(a), the Secretary shall consult with other Federal departments or 
agencies, State and local education practitioners, and policymakers, 
including teachers, principals, and superintendents, experts in 
technology and the applications of technology to education, 
representatives of distance learning consortia, representatives of 
telecommunications partnerships receiving assistance under the Star 
Schools Act or the Technology Challenge Fund program, and providers of 
technology services and products.
    ``(c) Submission; Publication.--Upon completion of the plan 
described in subsection (a), the Secretary shall--
            ``(1) submit such plan to the President and to the 
        appropriate committees of Congress; and
            ``(2) publish such plan in a form that is readily 
        accessible to the public, including on the Internet.
    ``(d) Content of the Plan.--The plan described in subsection (a) 
shall describe the following:
            ``(1) Effective use.--The plan shall describe the manner in 
        which the Secretary will encourage the effective use of 
        technology to provide all students the opportunity to achieve 
        challenging State academic content standards and challenging 
        State student performance standards, especially through 
        programs administered by the Department.
            ``(2) Joint activities.--The plan shall describe joint 
        activities in support of the overall national technology policy 
        to be carried out with other Federal departments or agencies, 
        such as the Office of Science and Technology Policy, the 
        National Endowment for the Humanities, the National Endowment 
        for the Arts, the National Institute for Literacy, the National 
        Aeronautics and Space Administration, the National Science 
        Foundation, the Bureau of Indian Affairs, and the Departments 
        of Commerce, Energy, Health and Human Services, and Labor--
                    ``(A) to promote the use of technology in 
                education, training, and lifelong learning, including 
                plans for the educational uses of a national 
                information infrastructure; and
                    ``(B) to ensure that the policies and programs of 
                such departments or agencies facilitate the use of 
                technology for educational purposes, to the extent 
                feasible.
            ``(3) Collaboration.--The plan shall describe the manner in 
        which the Secretary will work with educators, State and local 
        educational agencies, and appropriate representatives of the 
        private sector, including the Universal Service Administrative 
        Company, to facilitate the effective use of technology in 
        education.
            ``(4) Promoting access.--The plan shall describe the manner 
        in which the Secretary will promote--
                    ``(A) higher academic achievement and performance 
                of all students through the integration of technology 
                into the curriculum;
                    ``(B) increased access to the benefits of 
                technology for teaching and learning for schools with a 
                high number or percentage of children from low-income 
                families;
                    ``(C) the use of technology to assist in the 
                implementation of State systemic reform strategies;
                    ``(D) the application of technological advances to 
                use in improving educational opportunities;
                    ``(E) increased access to high quality adult and 
                family education services through the use of technology 
                for instruction and professional development;
                    ``(F) increased parental involvement in schools 
                through the use of technology; and
                    ``(G) increased opportunities for the professional 
                development of teachers in the use of new technologies.
            ``(5) Exchange.--The plan shall describe the manner in 
        which the Secretary will promote the exchange of information 
        among States, local educational agencies, schools, consortia, 
        and other entities concerning the conditions and practices that 
        support effective use of technology in improving teaching and 
        student educational opportunities, academic achievement, and 
        technology literacy.
            ``(6) Goals.--The plan shall describe the Secretary's long-
        range measurable goals and objectives relating to the purposes 
        of this part.

``SEC. 2311. NATIONAL TECHNOLOGY INITIATIVES.

    ``(a) In General.--The Secretary shall establish a program to 
identify and disseminate the practices under which technology is 
effectively integrated into education to enhance teaching and learning 
and to improve student achievement, performance and technology 
literacy.
    ``(b) Use of Funds.--In carrying out the program established under 
subsection (a), the Secretary shall--
            ``(1) conduct, through the Office of Educational Research 
        and Improvement, in consultation with the Office of Educational 
        Technology, an independent, longitudinal study on--
                    ``(A) the conditions and practices under which 
                educational technology is effective in increasing 
                student academic achievement; and
                    ``(B) the conditions and practices that increase 
                the ability of teachers to effectively integrate 
                technology into the curricula and instruction, enhance 
                the learning environment and opportunities, and 
                increase student performance, technology literacy, and 
                related 21st century skills; and
            ``(2) make widely available, including through 
        dissemination on the Internet and to all State educational 
        agencies and other grantees under this section, the findings 
        identified through the activities of this section regarding the 
        conditions and practices under which education technology is 
        effective.

``SEC. 2312. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this part $1,000,000,000 for fiscal year 2002 and such sums as may 
be necessary for each of the 6 succeeding fiscal years.
    ``(b) Limitation.--Not more than 5 percent of the funds made 
available to a recipient under this part for any fiscal year may be 
used by such recipient for administrative costs or technical 
assistance.
    ``(c) Funding for National Technology Initiatives.--Not more than 
.5 percent of the funds appropriated under subsection (a) may be used 
for the activities of the Secretary under section 2311.''.

SEC. 202. TEACHER MOBILITY.

    (a) Short Title.--This section may be cited as the ``Teacher 
Mobility Act''.
    (b) Mobility of Teachers.--Title II of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6601 et seq.), as amended by section 
201, is further amended by adding at the end the following:

                       ``PART D--TEACHER MOBILITY

``SEC. 2401. NATIONAL PANEL ON TEACHER MOBILITY.

    ``(a) Establishment.--There is established a panel to be known as 
the National Panel on Teacher Mobility (referred to in this section as 
the `panel').
    ``(b) Membership.--The panel shall be composed of 9 members 
appointed by the Secretary. The Secretary shall appoint the members 
from among practitioners and experts with experience relating to 
teacher mobility, such as teachers, members of teacher certification or 
licensing bodies, faculty of institutions of higher education that 
prepare teachers, and State policymakers with such experience.
    ``(c) Period of Appointment; Vacancies.--Members shall be appointed 
for the life of the panel. Any vacancy in the panel shall not affect 
the powers of the panel, but shall be filled in the same manner as the 
original appointment.
    ``(d) Duties.--
            ``(1) Study.--
                    ``(A) In general.--The panel shall study strategies 
                for increasing mobility and employment opportunities 
                for high quality teachers, especially for States with 
                teacher shortages and States with districts or schools 
                that are difficult to staff.
                    ``(B) Data and analysis.--As part of the study, the 
                panel shall evaluate the desirability and feasibility 
                of State initiatives that support teacher mobility by 
                collecting data and conducting effective analysis on--
                            ``(i) teacher supply and demand;
                            ``(ii) the development of recruitment and 
                        hiring strategies that support teachers; and
                            ``(iii) increasing reciprocity of licenses 
                        across States.
            ``(2) Report.--Not later than 1 year after the date on 
        which all members of the panel have been appointed, the panel 
        shall submit to the Secretary and to the appropriate committees 
        of Congress a report containing the results of the study.
    ``(e) Powers.--
            ``(1) Hearings.--The panel may hold such hearings, sit and 
        act at such times and places, take such testimony, and receive 
        such evidence as the panel considers advisable to carry out the 
        objectives of this section.
            ``(2) Information from federal agencies.--The panel may 
        secure directly from any Federal department or agency such 
        information as the panel considers necessary to carry out the 
        provisions of this section. Upon request of a majority of the 
        members of the panel, the head of such department or agency 
        shall furnish such information to the panel.
            ``(3) Postal services.--The panel may use the United States 
        mails in the same manner and under the same conditions as other 
        departments and agencies of the Federal Government.
    ``(f) Personnel.--
            ``(1) Travel expenses.--The members of the panel shall not 
        receive compensation for the performance of services for the 
        panel, but shall be allowed travel expenses, including per diem 
        in lieu of subsistence, at rates authorized for employees of 
        agencies under subchapter I of chapter 57 of title 5, United 
        States Code, while away from their homes or regular places of 
        business in the performance of services for the panel. 
        Notwithstanding section 1342 of title 31, United States Code, 
        the Secretary may accept the voluntary and uncompensated 
        services of members of the panel.
            ``(2) Detail of government employees.--Any Federal 
        Government employee may be detailed to the panel without 
        reimbursement, and such detail shall be without interruption or 
        loss of civil service status or privilege.
    ``(g) Permanent Committee.--Section 14 of the Federal Advisory 
Committee Act (5 U.S.C. App.) shall not apply to the panel.
    ``(h) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section such sums as may be necessary for 
        fiscal year 2002.
            ``(2) Availability.--Any sums appropriated under the 
        authorization contained in this subsection shall remain 
        available, without fiscal year limitation, until expended.''.

SEC. 203. MODIFICATION OF TROOPS-TO-TEACHERS PROGRAM.

    (a) Purpose.--The purpose of this section is to authorize a 
mechanism for the funding and administration of the Troops-to-Teachers 
Program established by the Troops-to-Teachers Program Act of 1999 
(title XVII of the National Defense Authorization Act for Fiscal Year 
2000).
    (b) Definitions.--Section 1701 of the Troops-to-Teachers Program 
Act of 1999 (20 U.S.C. 9301) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by striking ``means'' and all 
                that follows and inserting ``means the Secretary of 
                Education'';
                    (B) by striking paragraph (2);
                    (C) by redesignating paragraphs (3) and (4), as 
                paragraphs (2) and (3), respectively; and
                    (D) in paragraph (2) (as so redesignated), by 
                inserting before the period the following: ``and active 
                and former members of the Coast Guard''; and
            (2) by adding at the end the following:
    ``(c) Administration.--To the extent that funds are made available 
under this title, the administering Secretary shall use such funds to 
enter into a memorandum of agreement with the Defense Activity for Non-
Traditional Education Support (referred to in this subsection as 
`DANTES'), of the Department of Defense. DANTES shall use amounts made 
available under the memorandum of agreement to administer the Troops-
to-Teachers Program, including the selection of participants in the 
Program in accordance with section 1704. The administering Secretary 
may retain a portion of the funds to identify local educational 
agencies with concentrations of children from low-income families or 
with teacher shortages and States with alternative certification or 
licensure requirements, as required by section 1702.''.
    (c) Authorization.--Section 1702 of the Troops-to-Teachers Program 
Act of 1999 (20 U.S.C. 9302) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``after their discharge or 
                        release, or retirement,'' and insert ``who 
                        retire''; and
                            (ii) by striking ``and'' at the end;
                    (B) by redesignating paragraph (2) as paragraph 
                (3); and
                    (C) by inserting after paragraph (1), the 
                following:
            ``(2) to assist members of the active reserve forces to 
        obtain certification or licensure as elementary or secondary 
        school teachers or as vocational or technical teachers; and''; 
        and
            (2) by adding at the end the following:
    ``(e) Funding.--The administering Secretary shall provide 
appropriate funds to the Secretary of Defense to enable the Secretary 
of Defense to manage and operate the Troops-to-Teachers Program.''.
    (d) Eligible Members.--Section 1703 of the Troops-to-Teachers 
Program Act of 1999 (20 U.S.C. 9303) is amended--
            (1) by striking subsection (a) and inserting the following:
    ``(a) Eligible Members.--Subject to subsection (c), any member of 
the Armed Forces who, during the period beginning on October 1, 2000, 
and ending on September 30, 2006, retired from the active duty or who 
is a member of the active reserve and who satisfies such other criteria 
for the selection as the administering Secretary may require, shall be 
eligible for selection to participate in the Troops-to-Teachers 
Program.''; and
            (2) in subsection (d)--
                    (A) by striking ``(1) The administering Secretary'' 
                and inserting ``Secretary of Defense''; and
                    (B) by striking paragraph (2); and
            (3) by adding at the end the following:
    ``(e) Placement Assistance and Referral Services.--The 
administering Secretary may, with the agreement of the Secretary of 
Defense, provide placement assistance and referral services to members 
of the Armed Forces who separated from active duty under honorable 
circumstances. Such members shall meet education qualification 
requirements under subsection (b). Such members shall not be eligible 
for financial assistance under subsections (a) and (b) of section 
1705.''.
    (e) Selection of Participants.--Section 1704 of the Troops-to-
Teachers Program Act of 1999 (20 U.S.C. 9304) is amended--
            (1) in subsection (a), by striking ``on a timely basis'';
            (2) by striking subsection (b);
            (3) in subsection (e)--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``and receives financial assistance'' after 
                ``Program''; and
                    (B) in paragraph (2), by striking ``four school'' 
                and all that follows and inserting ``three school years 
                with a local educational agency, except that the 
                Secretary of Defense may waive the 3 year commitment if 
                the Secretary determines such waiver to be 
                appropriate.'';
            (4) in subsection (f), by striking ``subsection (e)'' and 
        inserting ``subsection (d)''; and
            (5) by redesignating subsections (c) through (f) as 
        subsection (b) through (e), respectively.
    (f) Stipends and Bonuses.--Section 1705 of the Troops-to-Teachers 
Program Act of 1999 (20 U.S.C. 9305) is amended--
            (1) in subsection (a)--
                    (A) by striking ``(1) Subject'' and inserting 
                ``Subject''; and
                    (B) by striking paragraph (2);
            (2) in subsection (b)--
                    (A) by striking paragraph (2);
                    (B) in paragraph (3)--
                            (i) by striking subparagraphs (A) through 
                        (D) and inserting the following:
                    ``(A) The school is in a low-income school district 
                as defined by the administering Secretary.''; and
                            (ii) by redesignating subparagraphs (E) and 
                        (F), as subparagraphs (B) and (C), 
                        respectively; and
                    (C) by redesignating paragraph (3) as paragraph 
                (2); and
            (3) in subsection (d)--
                    (A) by striking ``four years'' each place that such 
                appears and inserting ``three years''; and
                    (B) in paragraph (2), by striking ``1704(e)'' and 
                inserting ``1704(d)''.
    (g) Participation by States.--Section 1706(b) of the Troops-to-
Teachers Program Act of 1999 (20 U.S.C. 9306(b)) is amended--
            (1) by striking ``(1) Subject to paragraph (2), the'' and 
        inserting ``The''; and
            (2) by striking paragraph (2).
    (h) Support of Teacher Certification Programs.--The Troops-to-
Teachers Program Act of 1999 (20 U.S.C. 9301 et seq.) is amended by 
striking 1707 through 1709 and inserting the following:

``SEC. 1707. SUPPORT OF INNOVATIVE, PRE-RETIREMENT TEACHER 
              CERTIFICATION PROGRAMS.

    ``(a) In General.--The administering Secretary may enter into a 
memorandum of agreements with institutions of higher education to 
develop, implement, and demonstrate teacher certification programs for 
pre-retirement military personnel for the purpose of preparing such 
personnel to transition to teaching as a second career. Such program 
shall--
            ``(1) provide for the recognition of military experience 
        and training as related to licensure or certification 
        requirements;
            ``(2) provide courses of instruction that may be provided 
        at military installations;
            ``(3) incorporate alternative approaches to achieve teacher 
        certification such as innovative methods to gaining field based 
        teaching experiences, and assessments of background and 
        experience as related to skills, knowledge and abilities 
        required of elementary or secondary school teachers; and
            ``(4) provide for the delivery of courses through distance 
        education methods.
    ``(b) Applications Procedures.--
            ``(1) In general.--An institution of higher education, or a 
        consortia of such institutions, that desires to enter into an 
        memorandum under subsection (a) shall prepare and submit to the 
        administering Secretary a proposal, at such time, in such 
        manner, and containing such information as the administering 
        Secretary may require, including an assurance that the 
        institution is operating one or more programs that lead to 
        State approved teacher certification.
            ``(2) Preference.--The administering Secretary shall give a 
        preference to institutions (or consortia) submitting proposals 
        that provide for cost sharing with respect to the program 
        involved.
    ``(c) Continuation of Program.--An institution of higher education 
that desires to continue a program that is funded under this section 
after such funding is terminated shall use amounts derived from tuition 
charges to continue such program.

``SEC. 1708. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title, 
$50,000,000 in fiscal year 2002, and such sums as may be necessary in 
each subsequent fiscal year.''.

SEC. 204. PROFESSIONAL DEVELOPMENT.

    Section 3141(b)(2)(A) (20 U.S.C. 6861(b)(2)(A)) is amended--
            (1) in clause (i), by striking ``and'' at the end;
            (2) in clause (ii)(V), by adding ``and'' after the 
        semicolon; and
            (3) by adding at the end the following:
                            ``(iii) the provision of incentives, 
                        including bonus payments, to recognized 
                        educators who achieve an information technology 
                        certification that is directly related to the 
                        curriculum or content area in which the teacher 
                        provides instruction;''.

SEC. 205. CLOSE UP FELLOWSHIP PROGRAM AND NATIONAL STUDENT/PARENT MOCK 
              ELECTION.

    Title II of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6601 et seq.), as amended by section 202, is further amended by 
adding at the end the following:

                 ``PART E--CLOSE UP FELLOWSHIP PROGRAM

``SEC. 2501. FINDINGS.

    ``Congress makes the following findings:
            ``(1) The strength of our democracy rests with the 
        willingness of our citizens to be active participants in their 
        governance. For young people to be such active participants, it 
        is essential that they develop a strong sense of responsibility 
        toward ensuring the common good and general welfare of their 
        local communities, States and the Nation.
            ``(2) For the young people of our country to develop a 
        sense of responsibility for their fellow citizens, communities 
        and country, our educational system must assist them in the 
        development of strong moral character and values.
            ``(3) Civic education about our Federal Government is an 
        integral component in the process of educating young people to 
        be active and productive citizens who contribute to 
        strengthening and promoting our democratic form of government.
            ``(4) There are enormous pressures on teachers to develop 
        creative ways to stimulate the development of strong moral 
        character and appropriate value systems among young people, and 
        to educate young people about their responsibilities and rights 
        as citizens.
            ``(5) Young people who have economically disadvantaged 
        backgrounds, or who are from other under-served constituencies, 
        have a special need for educational programs that develop a 
        strong a sense of community and educate them about their rights 
        and responsibilities as citizens of the United States. Under-
        served constituencies include those such as economically 
        disadvantaged young people in large metropolitan areas, ethnic 
        minorities, who are members of recently immigrated or migrant 
        families, Native Americans or the physically disabled.
            ``(6) The Close Up Foundation has thirty years of 
        experience in providing economically disadvantaged young people 
        and teachers with a unique and highly educational experience 
        with how our federal system of government functions through its 
        programs that bring young people and teachers to Washington, 
        D.C. for a first-hand view of our government in action.
            ``(7) It is a worthwhile goal to ensure that economically 
        disadvantaged young people and teachers have the opportunity to 
        participate in Close Up's highly effective civic education 
        program. Therefore, it is fitting and appropriate to provide 
        fellowships to students of limited economic means and the 
        teachers who work with such students so that the students and 
        teachers may participate in the programs supported by the Close 
        Up Foundation. It is equally fitting and appropriate to support 
        the Close Up Foundation's `Great American Cities' program that 
        focuses on character and leadership development among 
        economically disadvantaged young people who reside in our 
        Nation's large metropolitan areas.

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

``SEC. 2511. ESTABLISHMENT.

    ``(a) General Authority.--The Secretary is authorized to make 
grants in accordance with 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 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 
know as the Close Up Fellowships.

``SEC. 2512. 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) Content 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 shall 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 students with disabilities, 
        students with migrant parents and ethnic minority students; and
            ``(3) the proper disbursement of the funds received under 
        this subpart.

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

``SEC. 2521. ESTABLISHMENT.

    ``(a) General Authority.--The Secretary is authorized to make 
grants in accordance with 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 
to provide financial assistance to teachers who participate in the 
program described in subsection (a). Financial assistance received 
pursuant to this subpart by such students shall be know as the Close Up 
Teacher Fellowships.

``SEC. 2522. 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) Content 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 program described in section 
        2521(a);
            ``(2) that no teacher in each school participating in the 
        programs provided for in section (a) may receive more than one 
        fellowship in any fiscal year; and
            ``(3) the proper disbursement of the funds received under 
        this subpart.

                 ``Subpart 3--Program for New Americans

``SEC. 2531. ESTABLISHMENT.

    ``(a) General Authority.--The Secretary is authorized to make 
grants in accordance with 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 secondary 
school students who are recent immigrants.
    ``(b) Definition.--For purposes of this subpart, the term `recent 
immigrant student' means a student of a family that immigrated to the 
United states within five years of the students participation in the 
program.
    ``(c) Use of Funds.--Grants under this subpart shall be used only 
to provide financial assistance to economically disadvantaged recent 
immigrant students who participate in the program described in 
subsection (a). Financial assistance received pursuant to this subpart 
by such students shall be know as the Close Up Fellowships for New 
Americans.

``SEC. 2532. 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) Content of Application.--Each such application shall contain 
provisions to assure--
            ``(1) that fellowship grants are made to economically 
        disadvantaged secondary school students;
            ``(2) that every effort shall be made to ensure the 
        participation of recent immigrant students from rural and small 
        town areas, as well as from urban areas, and that in awarding 
        fellowships to economically disadvantaged recent immigrant 
        students, special consideration will be given to the 
        participation of those students with special educational needs, 
        including students with disabilities, students with migrant 
        parents and ethnic minority 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. 2541. ADMINISTRATIVE PROVISIONS.

    ``(a) Accountability.--In consultation with the Secretary, the 
Close Up Foundation will devise and implement procedures to measure the 
efficacy of the programs authorized in subparts 1, 2, and 3 in 
attaining objectives that include: providing young people with an 
increased understanding of the Federal Government; heightening a sense 
of civic responsibility among young people; and enhancing the skills of 
educators in teaching young people about civic virtue, citizenship 
competencies and the Federal Government.
    ``(b) General Rule.--Payments under this part may be made in 
installments, in advance, or by way of reimbursement, with necessary 
adjustments on account of underpayments or overpayments.
    ``(c) 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. 2542. 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 $6,000,000 for 
fiscal year 2002 and such sums as may be necessary for 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 
sections 2511, 2521 and 2531.

            ``PART F--NATIONAL STUDENT/PARENT MOCK ELECTION

``SEC. 2601. NATIONAL STUDENT/PARENT MOCK ELECTION.

    ``(a) In General.--The Secretary is authorized to award grants to 
the National Student/Parent Mock Election, a national nonprofit, 
nonpartisan organization that works to promote voter participation in 
American elections to enable it to carry out voter education activities 
for students and their parents. Such activities may--
            ``(1) include simulated national elections at least five 
        days before the actual election that permit participation by 
        students and parents from all 50 States in the United States 
        and its territories, Washington, DC and American schools 
        overseas; and
            ``(2) consist of--
                    ``(A) school forums and local cable call-in shows 
                on the national issues to be voted upon in an `issues 
                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 speech writing 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.--The National Student/Parent Mock Elections 
shall present awards to outstanding student and parent mock election 
projects.

``SEC. 2602. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out the 
provisions of this part $650,000 for fiscal year 2002 and such sums as 
may be necessary for each of the six succeeding fiscal years.''.

SEC. 206. RURAL TECHNOLOGY EDUCATION ACADEMIES AND EARLY CHILDHOOD 
              EDUCATOR PROFESSIONAL DEVELOPMENT.

    Title II (20 U.S.C. 6601 et seq.), as amended by section 202, is 
further amended by adding at the end the following:

             ``PART G--RURAL TECHNOLOGY EDUCATION ACADEMIES

``SEC. 2701. SHORT TITLE.

    This part may be cited as the `Rural Technology Education Academies 
Act'.

``SEC. 2702. FINDINGS AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) Rural areas offer technology programs in existing 
        public schools, such as those in career and technical education 
        programs, but they are limited in numbers and are not 
        adequately funded. Further, rural areas often cannot support 
        specialized schools, such as magnet or charter schools.
            ``(2) Technology can offer rural students educational and 
        employment opportunities that they otherwise would not have.
            ``(3) Schools in rural and small towns receive 
        disproportionately less funding than their urban counterparts, 
        necessitating that such schools receive additional assistance 
        to implement technology curriculum.
            ``(4) In the future, workers without technology skills run 
        the risk of being excluded from the new global, technological 
        economy.
            ``(5) Teaching technology in rural schools is vitally 
        important because it creates an employee pool for employers 
        sorely in need of information technology specialists.
            ``(6) A qualified workforce can attract information 
        technology employers to rural areas and help bridge the digital 
        divide between rural and urban American that is evidenced by 
        the out-migration and economic decline typical of many rural 
        areas.
    ``(b) Purpose.--It is the purpose of this part to give rural 
schools comprehensive assistance to train the technology literate 
workforce needed to bridge the rural-urban digital divide.

``SEC. 2703. GRANTS TO STATES.

    ``(a) In General.--The Secretary shall use amounts made available 
under section 2312(a) to carry out this part to make grants to eligible 
States for the development and implementation of technology curriculum.
    ``(b) State Eligibility.--
            ``(1) In general.--To be eligible for a grant under 
        subsection (a), a State shall--
                    ``(A) have in place a statewide educational 
                technology plan developed in consultation with the 
                State agency responsible for administering programs 
                under the Carl D. Perkins Vocational and Applied 
                Technology Education Act (20 U.S.C. 2301 et seq.); and
                    ``(B) include eligible local educational agencies 
                (as defined in paragraph (2)) under the plan.
            ``(2) Definition.--In this part, the term `eligible local 
        educational agency' means a local educational agency--
                    ``(A) with less than 600 total students in average 
                daily attendance at the schools served by such agency; 
                and
                    ``(B) with respect to which all of the schools 
                served by the agency have a School Locale Code of 7 or 
                8, as determined by the Secretary.
    ``(c) Amount of Grant.--Of the amount made available under section 
2312(a) to carry out this part for a fiscal year and reduced by amounts 
used under section 2704, the Secretary shall provide to each State 
under a grant under subsection (a) an amount the bears that same ratio 
to such appropriated amount as the number of students in average daily 
attendance at the schools served by eligible local educational agencies 
in the State bears to the number of all such students at the schools 
served by eligible local educational agencies in all States in such 
fiscal year.
    ``(d) Use of Amounts.--
            ``(1) In general.--A State that receives a grant under 
        subsection (a) shall use--
                    ``(A) not less than 85 percent of the amounts 
                received under the grant to provide funds to eligible 
                local educational agencies in the State for use as 
                provided for in paragraph (2); and
                    ``(B) not to exceed 15 percent of the amounts 
                received under the grant to carry out activities to 
                develop or enhance and further the implementation of 
                technology curriculum, including--
                            ``(i) the development or enhancement of 
                        technology courses in areas including computer 
                        network technology, computer engineering 
                        technology, computer design and repair, 
                        software engineering, and programming;
                            ``(ii) the development or enhancement of 
                        high quality technology standards;
                            ``(iii) the examination of the utility of 
                        web-based technology courses, including 
                        college-level courses and instruction for both 
                        students and teachers;
                            ``(iv) the development or enhancement of 
                        State advisory councils on technology teacher 
                        training;
                            ``(v) the addition of high-quality 
                        technology courses to teacher certification 
                        programs;
                            ``(vi) the provision of financial resources 
                        and incentives to eligible local educational 
                        agencies to enable such agencies to implement a 
                        technology curriculum;
                            ``(vii) the implementation of a centralized 
                        web-site for educators to exchange computer-
                        related curriculum and lesson plans; and
                            ``(viii) the provision of technical 
                        assistance to local educational agencies.
            ``(2) Local use of funds.--Amounts received by an eligible 
        local educational agency under paragraph (1)(A) shall be used 
        for--
                    ``(A) the implementation of a technology curriculum 
                that is based on standards developed by the State, if 
                applicable;
                    ``(B) professional development in the area of 
                technology, including for the certification of teachers 
                in information technology;
                    ``(C) teacher-to-teacher technology mentoring 
                programs;
                    ``(D) the provision of incentives to teachers 
                teaching in technology-related fields to persuade such 
                teachers to remain in rural areas;
                    ``(E) the purchase of equipment needed to implement 
                a technology curriculum;
                    ``(F) the provision of technology courses through 
                distance learning;
                    ``(G) the development of, or entering into a, 
                consortium with other local educational agencies, 
                institutions of higher education, or for-profit 
                businesses, nonprofit organizations, community-based 
                organizations or other entities with the capacity to 
                contribute to technology training for the purposes of 
                subparagraphs (A) through (F); or
                    ``(H) other activities consistent with the purposes 
                of this part.
            ``(3) Amount of assistance.--In providing assistance to 
        eligible local educational agencies under this section, a State 
        shall ensure that the amount provided to any eligible agency 
        reflects the size and financial need of the agency as evidenced 
        by the number or percentage of children served by the agency 
        who are 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.

``SEC. 2704. TECHNICAL ASSISTANCE.

    ``From amounts made available for a fiscal year under section 
2312(a) to carry out this part, the Secretary may use not to exceed 5 
percent of such amounts to--
            ``(1) establish a position within the Office of Educational 
        Technology of the Department of Education for a specialist in 
        rural schools;
            ``(2) identify and disseminate throughout the United States 
        information on best practices concerning technology curricula; 
        and
            ``(3) conduct seminars in rural areas on technology 
        education.

      ``PART H--EARLY CHILDHOOD EDUCATOR PROFESSIONAL DEVELOPMENT

``SEC. 2801. PURPOSE.

    ``In support of the national effort to attain the first of 
America's Education Goals, the purpose of this part is to enhance the 
school readiness of young children, particularly disadvantaged young 
children, and to prevent them from encountering difficulties once they 
enter school, by improving the knowledge and skills of early childhood 
educators who work in communities that have high concentrations of 
children living in poverty.

``SEC. 2802. PROGRAM AUTHORIZED.

    ``(a) Grants to Partnerships.--The Secretary shall carry out the 
purpose of this part by awarding grants, on a competitive basis, to 
partnerships consisting of--
            ``(1)(A) one or more institutions of higher education that 
        provide professional development for early childhood educators 
        who work with children from low-income families in high-need 
        communities; or
            ``(B) another public or private entity that provides such 
        professional development;
            ``(2) one or more public agencies (including local 
        educational agencies, State educational agencies, State human 
        services agencies, and State and local agencies administering 
        programs under the Child Care and Development Block Grant Act 
        of 1990), Head Start agencies, or private organizations; and
            ``(3) to the extent feasible, an entity with demonstrated 
        experience in providing training to educators in early 
        childhood education programs in identifying and preventing 
        behavior problems or working with children identified or 
        suspected to be victims of abuse.
    ``(b) Duration and Number of Grants.--
            ``(1) Duration.--Each grant under this part shall be 
        awarded for not more than 4 years.
            ``(2) Number.--No partnership may receive more than 1 grant 
        under this part.

``SEC. 2803. APPLICATIONS.

    ``(a) Applications Required.--Any partnership that desires to 
receive a grant under this part shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may require.
    ``(b) Contents.--Each such application shall include--
            ``(1) a description of the high-need community to be served 
        by the project, including such demographic and socioeconomic 
        information as the Secretary may request;
            ``(2) information on the quality of the early childhood 
        educator professional development program currently conducted 
        by the institution of higher education or other provider in the 
        partnership;
            ``(3) the results of the needs assessment that the entities 
        in the partnership have undertaken to determine the most 
        critical professional development needs of the early childhood 
        educators to be served by the partnership and in the broader 
        community, and a description of how the proposed project will 
        address those needs;
            ``(4) a description of how the proposed project will be 
        carried out, including--
                    ``(A) how individuals will be selected to 
                participate;
                    ``(B) the types of research-based professional 
                development activities that will be carried out;
                    ``(C) how research on effective professional 
                development and on adult learning will be used to 
                design and deliver project activities;
                    ``(D) how the project will coordinate with and 
                build on, and will not supplant or duplicate, early 
                childhood education professional development activities 
                that exist in the community;
                    ``(E) how the project will train early childhood 
                educators to provide services that are based on 
                developmentally appropriate practices and the best 
                available research on child social, emotional, physical 
                and cognitive development and on early childhood 
                pedagogy;
                    ``(F) how the program will train early childhood 
                educators to meet the diverse educational needs of 
                children in the community, including children who have 
                limited English proficiency, disabilities, or other 
                special needs; and
                    ``(G) how the project will train early childhood 
                educators in identifying and preventing behavioral 
                problems or working with children identified as or 
                suspected to be victims of abuse;
            ``(5) a description of--
                    ``(A) the specific objectives that the partnership 
                will seek to attain through the project, and how the 
                partnership will measure progress toward attainment of 
                those objectives; and
                    ``(B) how the objectives and the measurement 
                activities align with the performance indicators 
                established by the Secretary under section 2806(a);
            ``(6) a description of the partnership's plan for 
        continuing the activities carried out under the project, so 
        that the activities continue once Federal funding ceases;
            ``(7) an assurance that, where applicable, the project will 
        provide appropriate professional development to volunteers 
        working directly with young children, as well as to paid staff; 
        and
            ``(8) an assurance that, in developing its application and 
        in carrying out its project, the partnership has consulted 
        with, and will consult with, relevant agencies, early childhood 
        educator organizations, and early childhood providers that are 
        not members of the partnership.

``SEC. 2804. SELECTION OF GRANTEES.

    ``(a) Criteria.--The Secretary shall select partnerships to receive 
funding on the basis of the community's need for assistance and the 
quality of the applications.
    ``(b) Geographic Distribution.--In selecting partnerships, the 
Secretary shall seek to ensure that communities in different regions of 
the Nation, as well as both urban and rural communities, are served.

``SEC. 2805. USES OF FUNDS.

    ``(a) In General.--Each partnership receiving a grant under this 
part shall use the grant funds to carry out activities that will 
improve the knowledge and skills of early childhood educators who are 
working in early childhood programs that are located in high-need 
communities and serve concentrations of children from low-income 
families.
    ``(b) Allowable Activities.--Such activities may include--
            ``(1) professional development for individuals working as 
        early childhood educators, particularly to familiarize those 
        individuals with the application of recent research on child, 
        language, and literacy development and on early childhood 
        pedagogy;
            ``(2) professional development for early childhood 
        educators in working with parents, based on the best current 
        research on child social, emotional, physical and cognitive 
        development and parent involvement, so that the educators can 
        prepare their children to succeed in school;
            ``(3) professional development for early childhood 
        educators to work with children who have limited English 
        proficiency, disabilities, and other special needs;
            ``(4) professional development to train early childhood 
        educators in identifying and preventing behavioral problems in 
        children or working with children identified or suspected to be 
        victims of abuse;
            ``(5) activities that assist and support early childhood 
        educators during their first three years in the field;
            ``(6) development and implementation of early childhood 
        educator professional development programs that make use of 
        distance learning and other technologies;
            ``(7) professional development activities related to the 
        selection and use of screening and diagnostic assessments to 
        improve teaching and learning; and
            ``(8) data collection, evaluation, and reporting needed to 
        meet the requirements of this part relating to accountability.

``SEC. 2806. ACCOUNTABILITY.

    ``(a) Performance Indicators.--Simultaneously with the publication 
of any application notice for grants under this part, the Secretary 
shall announce performance indicators for this part, which shall be 
designed to measure--
            ``(1) the quality and accessibility of the professional 
        development provided;
            ``(2) the impact of that professional development on the 
        early childhood education provided by the individuals who are 
        trained; and
            ``(3) such other measures of program impact as the 
        Secretary determines appropriate.
    ``(b) Annual Reports; Termination.--
            ``(1) Annual reports.--Each partnership receiving a grant 
        under this part shall report annually to the Secretary on the 
        partnership's progress against the performance indicators.
            ``(2) Termination.--The Secretary may terminate a grant 
        under this part at any time if the Secretary determines that 
        the partnership is not making satisfactory progress against the 
        indicators.

``SEC. 2807. COST-SHARING.

    ``(a) In General.--Each partnership shall provide, from other 
sources, which may include other Federal sources--
            ``(1) at least 50 percent of the total cost of its project 
        for the grant period; and
            ``(2) at least 20 percent of the project cost in each year.
    ``(b) Acceptable Contributions.--A partnership may meet the 
requirement of subsection (a) through cash or in-kind contributions, 
fairly valued.
    ``(c) Waivers.--The Secretary may waive or modify the requirements 
of subsection (a) in cases of demonstrated financial hardship.

``SEC. 2808. DEFINITIONS.

    ``In this part:
            ``(1) High-need community.--
                    ``(A) In general.--The term `high-need community' 
                means--
                            ``(i) a municipality, or a portion of a 
                        municipality, in which at least 50 percent of 
                        the children are from low-income families; or
                            ``(ii) a municipality that is one of the 10 
                        percent of municipalities within the State 
                        having the greatest numbers of such children.
                    ``(B) Determination.--In determining which 
                communities are described in subparagraph (A), the 
                Secretary shall use such data as the Secretary 
                determines are most accurate and appropriate.
            ``(2) Low-income family.--The term `low-income family' 
        means a family with an income 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.
            ``(3) Early childhood educator.--The term `early childhood 
        educator' means a person providing or employed by a provider of 
        non-residential child care services (including center-based, 
        family-based, and in-home child care services) that is legally 
        operating under State law, and that complies with applicable 
        State and local requirements for the provision of child care 
        services to children at any age from birth through 
        kindergarten.

``SEC. 2809. FEDERAL COORDINATION.

    ``The Secretary and the Secretary of Health and Human Services 
shall coordinate activities under this part and other early childhood 
programs administered by the two Secretaries.

``SEC. 2810. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this part, there are authorized 
to be appropriated $30,000,000 for fiscal year 2002 and such sums as 
may be necessary for each of the 6 succeeding fiscal years.''.

SEC. 207. TEACHERS AND PRINCIPALS.

    Part A of title II (as amended in section 201) is further amended--
            (1) by striking the title heading and all that follows 
        through the part heading for part A and inserting the 
        following:

                  ``TITLE II--TEACHERS AND PRINCIPALS

               ``PART A--TEACHER AND PRINCIPAL QUALITY'';

            (2) in section 2101(1)--
                    (A) by striking ``teacher quality'' and inserting 
                ``teacher and principal quality''; and
                    (B) by inserting before the semicolon ``and highly 
                qualified principals and assistant principals in 
                schools'';
            (3) in section 2102--
                    (A) in paragraph (4)--
                            (i) in subparagraph (B)(ii), by striking 
                        ``and'';
                            (ii) in subparagraph (C), by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding at the end the following:
                    ``(D) with respect to an elementary school or 
                secondary school principal, a principal--
                            ``(i)(I) with at least a master's degree in 
                        educational administration and at least 3 years 
                        of classroom teaching experience; or
                            ``(II) who has completed a rigorous 
                        alternative certification program that includes 
                        instructional leadership courses, an internship 
                        under the guidance of an accomplished 
                        principal, and classroom teaching experience; 
                        and
                            ``(ii) who is certified or licensed as a 
                        principal by the State involved; and
                            ``(iii) who can demonstrate a high level of 
                        competence as an instructional leader with 
                        knowledge of theories of learning, curricula 
                        design, supervision and evaluation of teaching 
                        and learning, assessment design and 
                        application, child and adolescent development, 
                        and public reporting and accountability.''; and
                    (B) in paragraph (9)(B), by striking ``teachers'' 
                each place it appears and inserting ``teachers, 
                principals, and assistant principals,'';
            (4) in section 2112(b)(4), by striking ``teaching force'' 
        and inserting ``teachers, principals, and assistant 
        principals'';
            (5) in section 2113(b)--
                    (A) in paragraph (1)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``teacher'' and inserting 
                        ``teacher and principal'';
                            (ii) in subparagraph (A)--
                                    (I) by inserting ``(i)'' after 
                                ``(A)'';
                                    (II) by adding ``and'' after the 
                                semicolon; and
                                    (III) by adding at the end the 
                                following:
                    ``(ii) principals have the instructional leadership 
                skills to help teachers teach and students learn;''; 
                and
                            (iii) in subparagraph (C), by inserting ``, 
                        and principals have the instructional 
                        leadership skills,'' before ``necessary'';
                    (B) in paragraph (2), by striking ``the initial 
                teaching experience'' and inserting ``an initial 
                experience as a teacher, principal, or an assistant 
                principal'';
                    (C) in paragraph (3)--
                            (i) by striking ``of teachers'' and 
                        inserting ``of teachers and principals'';
                            (ii) by striking ``degree'' and inserting 
                        ``or master's degree''; and
                            (iii) by striking ``teachers.'' and 
                        inserting ``teachers or principals.''; and
                    (D) in paragraph (7), by striking ``teacher'' and 
                inserting ``teacher and principal'';
            (6) in section 2122(c)(2)--
                    (A) by striking ``and, where appropriate, 
                administrators,''; and
                    (B) by inserting ``and to give principals and 
                assistant principals the instructional leadership 
                skills to help teachers,'' after ``skills,'';
            (7) in section 2123(b)--
                    (A) in paragraph (2), by inserting ``and 
                principal'' before ``mentoring'';
                    (B) in paragraph (3), striking the period and 
                inserting ``, nonprofit organizations, local 
                educational agencies, or consortia of appropriate 
                educational entities.''; and
                    (C) in paragraph (4)--
                            (i) by striking ``teachers'' and inserting 
                        ``teachers, principals, and assistant 
                        principals''; and
                            (ii) by striking ``teaching'' and inserting 
                        ``employment as teachers, principals, or 
                        assistant principals, respectively'';
            (8) in section 2133(a)(1)--
                    (A) by striking ``, paraprofessionals, and, if 
                appropriate, principals'' and inserting ``and 
                paraprofessionals''; and
                    (B) by striking the semicolon and inserting the 
                following: ``and that principals and assistant 
                principals have the instructional leadership skills 
                that will help such principals and assistant principals 
                work most effectively with teachers to help students 
                master core academic subjects;'';
            (9) in section 2134--
                    (A) in paragraph (1), by striking ``teachers'' and 
                inserting ``teachers and principals''; and
                    (B) in paragraph (2)--
                            (i) by striking ``teachers'' and inserting 
                        ``teachers and principals''; and
                            (ii) by inserting ``a principal 
                        organization,'' after ``teacher 
                        organization,''; and
            (10) in section 2142(a)(2), by striking subparagraph (A) 
        and inserting the following:
                    ``(A) shall establish for the local educational 
                agency an annual measurable performance objective for 
                increasing retention of teachers, principals, and 
                assistant principals in the first 3 years of their 
                careers as teachers, principals, and assistant 
                principals respectively; and''.

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

SEC. 301. BILINGUAL EDUCATION.

    Title III (20 U.S.C. 6511 et seq.) is amended to read as follows:

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

                     ``PART A--BILINGUAL EDUCATION

``SEC. 3001. SHORT TITLE.

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

``SEC. 3002. PURPOSE.

    ``The purpose of this part is to help ensure that limited English 
proficient students master English and meet the same rigorous standards 
for academic performance as all children and youth are expected to 
meet, including meeting challenging State content standards and 
challenging State student performance standards in academic subjects 
by--
            ``(1) promoting systemic improvement and reform of, and 
        developing accountability systems for, educational programs 
        serving limited English proficient students;
            ``(2) developing bilingual skills and multicultural 
        understanding;
            ``(3) developing the English of limited English proficient 
        children and youth and, to the extent possible, the native 
        language skills of such children and youth;
            ``(4) providing similar assistance to Native Americans with 
        certain modifications relative to the unique status of Native 
        American languages under Federal law;
            ``(5) developing data collection and dissemination, 
        research, materials, and technical assistance that are focused 
        on school improvement for limited English proficient students; 
        and
            ``(6) developing programs that strengthen and improve the 
        professional training of educational personnel who work with 
        limited English proficient students.

``SEC. 3003. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Bilingual Education.--There are authorized to be appropriated 
to carry out this part $700,000,000 for fiscal year 2002 and such sums 
as may be necessary for each of the 6 succeeding fiscal years.
    ``(b) State and Local Grants.--Notwithstanding subsection (a), for 
any fiscal year for which the amount of funds appropriated under 
subsection (a) is not less than $700,000,000, the funds shall be used 
to carry out part D.

``SEC. 3004. NATIVE AMERICAN CHILDREN IN SCHOOL.

    ``(a) Eligible Entities.--
            ``(1) In general.--For the purpose of carrying out programs 
        under this part for individuals served by elementary schools, 
        secondary schools, and postsecondary schools operated 
        predominately for Native American (including Alaska Native) 
        children and youth, an Indian tribe, a tribally sanctioned 
        educational authority, a Native Hawaiian or Native American 
        Pacific Islander native language education organization, or an 
        elementary school or secondary school that is operated or 
        funded by the Bureau of Indian Affairs shall be considered to 
        be a local educational agency.
            ``(2) Definitions.--In this section:
                    ``(A) Indian tribe.--The term `Indian tribe' means 
                any Indian tribe, band, nation, or other organized 
                group or community, including any Native village or 
                Regional Corporation or Village Corporation as defined 
                in or established pursuant to the Alaska Native Claims 
                Settlement Act, that is recognized as eligible for the 
                special programs and services provided by the United 
                States to Indians because of their status as Indians.
                    ``(B) Tribally sanctioned educational authority.--
                The term `tribally sanctioned educational authority' 
                means--
                            ``(i) any department or division of 
                        education operating within the administrative 
                        structure of the duly constituted governing 
                        body of an Indian tribe; and
                            ``(ii) any nonprofit institution or 
                        organization that is--
                                    ``(I) chartered by the governing 
                                body of an Indian tribe to operate any 
                                school operated predominately for 
                                Indian children and youth or otherwise 
                                to oversee the delivery of educational 
                                services to members of that tribe; and
                                    ``(II) approved by the Secretary 
                                for the purpose of this section.
    ``(b) Eligible Entity Application.--Notwithstanding any other 
provision of this part, each eligible entity described in subsection 
(a) shall submit any application for assistance under this part 
directly to the Secretary along with timely comments on the need for 
the program proposed in the application.

``SEC. 3005. RESIDENTS OF THE TERRITORIES AND FREELY ASSOCIATED STATES.

    ``For the purpose of carrying out programs under this part in the 
outlying areas, the term `local educational agency' includes public 
institutions or agencies whose mission is the preservation and 
maintenance of native languages.

   ``Subpart 1--Bilingual Education Capacity and Demonstration Grants

``SEC. 3101. FINANCIAL ASSISTANCE FOR BILINGUAL EDUCATION.

    ``The purpose of this subpart is to assist local educational 
agencies, institutions of higher education, and community-based 
organizations, through the grants authorized under sections 3102 and 
3103, to--
            ``(1) develop and enhance their capacity to provide high-
        quality instruction through bilingual education or special 
        alternative instruction programs to children and youth of 
        limited English proficiency; and
            ``(2) help such children and youth--
                    ``(A) develop proficiency in English, and to the 
                extent possible, their native language; and
                    ``(B) meet the same challenging State content 
                standards and challenging State student performance 
                standards as all children and youth are expected to 
                meet under section 1111(b).

``SEC. 3102. PROGRAM ENHANCEMENT PROJECTS.

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

``SEC. 3103. COMPREHENSIVE SCHOOL AND SYSTEMWIDE IMPROVEMENT GRANTS.

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

``SEC. 3104. APPLICATIONS.

    ``(a) In General.--
            ``(1) Secretary.--To receive a grant under this subpart, an 
        eligible entity shall submit an application to the Secretary at 
        such time, in such form, and containing such information as the 
        Secretary may require.
            ``(2) State educational agency.--An eligible entity, with 
        the exception of schools funded by the Bureau of Indian 
        Affairs, shall submit a copy of the application submitted by 
        the entity under this section to the State educational agency.
    ``(b) State Review and Comments.--
            ``(1) Deadline.--The State educational agency, not later 
        than 45 days after receipt of an application under this 
        section, shall review the application and submit the written 
        comments of the agency regarding the application to the 
        Secretary.
            ``(2) Comments.--
                    ``(A) Submission of comments.--Regarding 
                applications submitted under this subpart, the State 
                educational agency shall--
                            ``(i) submit to the Secretary written 
                        comments regarding all such applications; and
                            ``(ii) submit to each eligible entity the 
                        comments that pertain to such entity.
                    ``(B) Subject.--For purposes of this subpart, such 
                comments shall address--
                            ``(i) how the activities to be carried out 
                        under the grant will further the academic 
                        achievement and English proficiency of limited 
                        English proficient students served under the 
                        grant; and
                            ``(ii) how the grant application is 
                        consistent with the State plan required under 
                        section 1111.
    ``(c) Eligible Entity Comments.--An eligible entity may submit to 
the Secretary comments that address the comments submitted by the State 
educational agency.
    ``(d) Comment Consideration.--In making grants under this subpart, 
the Secretary shall take into consideration comments made by State 
educational agencies.
    ``(e) Waiver.--Notwithstanding subsection (b), the Secretary is 
authorized to waive the review requirement specified in subsection (b) 
if a State educational agency can demonstrate that such review 
requirement may impede such agency's ability to fulfill the 
requirements of participation in the program authorized in section 
3124, particularly such agency's ability to carry out data collection 
efforts and such agency's ability to provide technical assistance to 
local educational agencies not receiving funds under this Act.
    ``(f) Required Documentation.--Such application shall include 
documentation that--
            ``(1) the applicant has the qualified personnel required to 
        develop, administer, and implement the program proposed in the 
        application; and
            ``(2) the leadership personnel of each school participating 
        in the program have been involved in the development and 
        planning of the program in the school.
    ``(g) Contents.--
            ``(1) In general.--An application for a grant under this 
        subpart shall contain the following:
                    ``(A) A description of the need for the proposed 
                program, including--
                            ``(i) data on the number of limited English 
                        proficient students in the school or school 
                        district to be served;
                            ``(ii) information on the characteristics 
                        of such students, including--
                                    ``(I) the native languages of the 
                                students;
                                    ``(II) the proficiency of the 
                                students in English and their native 
                                language;
                                    ``(III) achievement data (current 
                                as of the date of submission of the 
                                application) for the limited English 
                                proficient students in--
                                            ``(aa) reading or language 
                                        arts (in English and in the 
                                        native language, if 
                                        applicable); and
                                            ``(bb) mathematics;
                                    ``(IV) a comparison of that data 
                                for the students with that data for the 
                                English proficient peers of the 
                                students; and
                                    ``(V) the previous schooling 
                                experiences of the students;
                            ``(iii) the professional development needs 
                        of the instructional personnel who will provide 
                        services for the limited English proficient 
                        students under the proposed program; and
                            ``(iv) how the services provided through 
                        the grant will supplement the basic services 
                        provided to limited English proficient 
                        students.
                    ``(B) A description of the program to be 
                implemented and how such program's design--
                            ``(i) relates to the linguistic and 
                        academic needs of the children and youth of 
                        limited English proficiency to be served;
                            ``(ii) will ensure that the services 
                        provided through the program will supplement 
                        the basic services the applicant provides to 
                        limited English proficient students;
                            ``(iii) will ensure that the program is 
                        coordinated with other programs under this Act 
                        and other Acts;
                            ``(iv) involves the parents of the children 
                        and youth of limited English proficiency to be 
                        served;
                            ``(v) ensures accountability in achieving 
                        high academic standards; and
                            ``(vi) promotes coordination of services 
                        for the children and youth of limited English 
                        proficiency to be served and their families.
                    ``(C) A description, if appropriate, of the 
                applicant's collaborative activities with institutions 
                of higher education, community-based organizations, 
                local educational agencies or State educational 
                agencies, private schools, nonprofit organizations, or 
                businesses in carrying out the proposed program.
                    ``(D) An assurance that the applicant will not 
                reduce the level of State and local funds that the 
                applicant expends for bilingual education or special 
                alternative instruction programs if the applicant 
                receives an award under this subpart.
                    ``(E) An assurance that the applicant will employ 
                teachers in the proposed program who, individually or 
                in combination, are proficient in--
                            ``(i) English, with respect to written, as 
                        well as oral, communication skills; and
                            ``(ii) the native language of the majority 
                        of the students that the teachers teach, if 
                        instruction in the program is in the native 
                        language as well as English.
                    ``(F) A budget for the grant funds.
            ``(2) Additional information.--Each application for a grant 
        under section 3103 shall--
                    ``(A) describe--
                            ``(i) current services (as of the date of 
                        submission of the application) the applicant 
                        provides to children and youth of limited 
                        English proficiency;
                            ``(ii) what services children and youth of 
                        limited English proficiency will receive under 
                        the grant that such children or youth will not 
                        otherwise receive;
                            ``(iii) how funds received under this 
                        subpart will be integrated with all other 
                        Federal, State, local, and private resources 
                        that may be used to serve children and youth of 
                        limited English proficiency;
                            ``(iv) specific achievement and school 
                        retention goals for the children and youth to 
                        be served by the proposed program and how 
                        progress toward achieving such goals will be 
                        measured; and
                            ``(v) the current family education programs 
                        (as of the date of submission of the 
                        application) of the eligible entity, if 
                        applicable; and
                    ``(B) provide assurances that--
                            ``(i) the program funded with the grant 
                        will be integrated with the overall educational 
                        program of the students served through the 
                        proposed program; and
                            ``(ii) the application has been developed 
                        in consultation with an advisory council, the 
                        majority of whose members are parents and other 
                        representatives of the children and youth to be 
                        served in such program.
    ``(h) Approval of Applications.--An application for a grant under 
this subpart may be approved only if the Secretary determines that--
            ``(1) the program proposed in the application will use 
        qualified personnel, including personnel who are proficient in 
        the language or languages used for instruction;
            ``(2) in designing the program, the eligible entity has, 
        after consultation with appropriate private school officials--
                    ``(A) taken into account the needs of children in 
                nonprofit private elementary schools and secondary 
                schools; and
                    ``(B) in a manner consistent with the number of 
                such children enrolled in such schools in the area to 
                be served, whose educational needs are of the type and 
                whose language, and grade levels are of a similar type 
                to the needs, language, and grade levels that the 
                program is intended to address, provided for the 
                participation of such children on a basis comparable to 
                the basis on which public school children participate;
            ``(3)(A) student evaluation and assessment procedures in 
        the program are valid, reliable, and fair for limited English 
        proficient students; and
            ``(B) limited English proficient students with disabilities 
        will be identified and served through the program in accordance 
        with the requirements of the Individuals with Disabilities 
        Education Act;
            ``(4) Federal funds made available for the program will be 
        used to supplement the State and local funds that, in the 
        absence of such Federal funds, would be expended for special 
        programs for children of limited English proficient 
        individuals, and in no case to supplant such State and local 
        funds, except that nothing in this paragraph shall be construed 
        to preclude a local educational agency from using funds made 
        available under this subpart--
                    ``(A) for activities carried out under an order of 
                a Federal or State court respecting services to be 
                provided to such children; or
                    ``(B) to carry out a plan approved by the Secretary 
                as adequate under title VI of the Civil Rights Act of 
                1964 with respect to services to be provided to such 
                children;
            ``(5)(A) the assistance provided through the grant will 
        contribute toward building the capacity of the eligible entity 
        to provide a program on a regular basis, similar to the 
        proposed program, that will be of sufficient size, scope, and 
        quality to promise significant improvement in the education of 
        limited English proficient students; and
            ``(B) the eligible entity will have the resources and 
        commitment to continue the program of sufficient size, scope, 
        and quality when assistance under this subpart is reduced or no 
        longer available; and
            ``(6) the eligible entity will use State and national 
        dissemination sources for program design and dissemination of 
        results and products.
    ``(i) Priorities and Special Rules.--
            ``(1) Priority.--In approving applications for grants for 
        programs under this subpart, the Secretary shall give priority 
        to an applicant who--
                    ``(A) experiences a dramatic increase in the number 
                or percentage of limited English proficient students 
                enrolled in the applicant's programs and has limited or 
                no experience in serving limited English proficient 
                students;
                    ``(B) is a local educational agency that serves a 
                school district that has a total district enrollment 
                that is less than 10,000 students;
                    ``(C) demonstrates that the applicant has a proven 
                record of success in helping limited English proficient 
                children and youth learn English and meet high academic 
                standards;
                    ``(D) proposes programs that provide for the 
                development of bilingual proficiency both in English 
                and another language for all participating students; or
                    ``(E) serves a school district with a large number 
                or percentage of limited English proficient students.
            ``(2) Consideration.--In determining whether to approve an 
        application under this subpart, the Secretary shall give 
        consideration to the degree to which the program for which 
        assistance is sought involves the collaborative efforts of 
        institutions of higher education, community-based 
        organizations, the appropriate local educational agency and 
        State educational agency, or businesses.
            ``(3) Due consideration.--In determining whether to approve 
        an application under this subpart, the Secretary shall give due 
        consideration to an application that--
                    ``(A) provides for training for personnel 
                participating in or preparing to participate in the 
                program that will assist such personnel in meeting 
                State and local certification requirements; and
                    ``(B) to the extent possible, describes how credit 
                at an institution of higher education will be awarded 
                for such training.

``SEC. 3105. CAPACITY BUILDING.

    ``Each recipient of a grant under this subpart shall use the grant 
in ways that will build such recipient's capacity to continue to offer 
high-quality bilingual and special alternative education programs and 
services to children and youth of limited English proficiency after 
Federal assistance is reduced or eliminated.

``SEC. 3106. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

    ``Programs authorized under this subpart that serve Native American 
children (including Native American Pacific Islander children), and 
children in the Commonwealth of Puerto Rico, notwithstanding any other 
provision of this subpart, may include programs of instruction, teacher 
training, curriculum development, evaluation, and testing designed for 
Native American children and youth learning and studying Native 
American languages and children and youth of limited Spanish 
proficiency, except that 1 outcome of such programs serving Native 
American children shall be increased English proficiency among such 
children.

``SEC. 3107. EVALUATIONS.

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

``SEC. 3108. CONSTRUCTION.

    ``Nothing in this subpart shall be construed to prohibit a local 
educational agency from serving limited English proficient children and 
youth simultaneously with students with similar educational needs, in 
the same educational settings where appropriate.

          ``Subpart 2--Research, Evaluation, and Dissemination

``SEC. 3121. AUTHORITY.

    ``(a) In General.--The Secretary is authorized to conduct data 
collection, dissemination, research, and ongoing program evaluation 
activities in accordance with the provisions of this subpart for the 
purpose of improving bilingual education and special alternative 
instruction programs for children and youth of limited English 
proficiency.
    ``(b) Competitive Awards.--Research and program evaluation 
activities carried out under this subpart shall be supported through 
competitive grants, contracts and cooperative agreements awarded to 
institutions of higher education, nonprofit organizations, State 
educational agencies, and local educational agencies.
    ``(c) Administration.--The Secretary shall conduct data collection, 
dissemination, and ongoing program evaluation activities authorized by 
this subpart through the Office of Bilingual Education and Minority 
Language Affairs.

``SEC. 3122. RESEARCH.

    ``(a) Administration.--The Secretary shall conduct research 
activities authorized by this subpart through the Office of Educational 
Research and Improvement in coordination and collaboration with the 
Office of Bilingual Education and Minority Language Affairs.
    ``(b) Requirements.--Such research activities--
            ``(1) shall have a practical application to teachers, 
        counselors, paraprofessionals, school administrators, parents, 
        and others involved in improving the education of limited 
        English proficient students and their families;
            ``(2) may include research on effective instructional 
        practices for multilingual classes, and on effective 
        instruction strategies to be used by a teacher or other staff 
        member who does not know the native language of a limited 
        English proficient child or youth in the teacher's or staff 
        member's classroom;
            ``(3) may include establishing (through the National Center 
        for Education Statistics in consultation with experts in 
        bilingual education, second language acquisition, and English-
        as-a-second-language) a common definition of `limited English 
        proficient student' for purposes of national data collection; 
        and
            ``(4) shall be administered by individuals with expertise 
        in bilingual education and the needs of limited English 
        proficient students and their families.
    ``(c) Field-Initiated Research.--
            ``(1) In general.--The Secretary shall reserve not less 
        than 5 percent of the funds made available to carry out this 
        section for field-initiated research conducted by recipients of 
        grants under subpart 1 or this subpart who have received such 
        grants within the previous 5 years. Such research may provide 
        for longitudinal studies of students or teachers into bilingual 
        education, monitoring the education of such students from entry 
        into bilingual education through secondary school completion.
            ``(2) Applications.--An applicant for assistance under this 
        subsection may submit an application for such assistance to the 
        Secretary at the same time as the applicant submits another 
        application under subpart 1 or this subpart. The Secretary 
        shall complete a review of such applications on a timely basis 
        to allow the activities carried out under research and program 
        grants to be coordinated when recipients are awarded 2 or more 
        of such grants.
    ``(d) Consultation.--The Secretary shall consult with agencies and 
organizations that are engaged in bilingual education research and 
practice, or related research, and bilingual education researchers and 
practitioners, to identify areas of study and activities to be funded 
under this section.
    ``(e) Data Collection.--The Secretary shall provide for the 
collection of data on limited English proficient students as part of 
the data systems operated by the Department.

``SEC. 3123. ACADEMIC EXCELLENCE AWARDS.

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

``SEC. 3124. STATE GRANT PROGRAM.

    ``(a) State Grant Program.--The Secretary is authorized to make an 
award to a State educational agency that demonstrates, to the 
satisfaction of the Secretary, that such agency, through such agency's 
programs and other Federal education programs, effectively provides for 
the education of children and youth of limited English proficiency 
within the State.
    ``(b) Payments.--The amount paid to a State educational agency 
under subsection (a) shall not exceed 5 percent of the total amount 
awarded to local educational agencies and entities within the State 
under subpart 1 for the previous fiscal year, except that in no case 
shall the amount paid by the Secretary to any State educational agency 
under this subsection for any fiscal year be less than $200,000.
    ``(c) Use of Funds.--
            ``(1) In general.--A State educational agency shall use 
        funds awarded under this section to--
                    ``(A) assist local educational agencies in the 
                State with activities that--
                            ``(i) consist of program design, capacity 
                        building, assessment of student performance, 
                        program evaluation, and development of data 
                        collection and accountability systems for 
                        limited English proficient students; and
                            ``(ii) are aligned with State reform 
                        efforts; and
                    ``(B) collect data on the State's limited English 
                proficient populations and document the services 
                available to all such populations.
            ``(2) Training.--The State educational agency may also use 
        funds provided under this section for the training of State 
        educational agency personnel in educational issues affecting 
        limited English proficient children and youth.
            ``(3) Special rule.--Recipients of funds under this section 
        shall not restrict the provision of services under this section 
        to federally funded programs.
    ``(d) State Consultation.--A State educational agency receiving 
funds under this section shall consult with recipients of grants under 
this subpart and other individuals or organizations involved in the 
development or operation of programs serving limited English proficient 
children or youth to ensure that such funds are used in a manner 
consistent with the requirements of this subpart.
    ``(e) Applications.--A State educational agency desiring to receive 
funds under this section shall submit an application to the Secretary 
at such time, in such form, and containing such information and 
assurances as the Secretary may require.
    ``(f) Supplement Not Supplant.--Federal funds made available under 
this section for any fiscal year shall be used by the State educational 
agency to supplement and, to the extent practical, to increase the 
State funds that, in the absence of such Federal funds, would be made 
available for the purposes described in this section, and in no case to 
supplant such State funds.
    ``(g) Report to the Secretary.--A State educational agency 
receiving an award under this section shall provide for the annual 
submission of a summary report to the Secretary describing such State's 
use of the funds made available through the award.

``SEC. 3125. NATIONAL CLEARINGHOUSE FOR BILINGUAL EDUCATION.

    ``(a) Establishment.--The Secretary shall establish and support the 
operation of a National Clearinghouse for Bilingual Education, which 
shall collect, analyze, synthesize, and disseminate information about 
bilingual education and related programs.
    ``(b) Functions.--The National Clearinghouse for Bilingual 
Education shall--
            ``(1) be administered as an adjunct clearinghouse of the 
        Educational Resources Information Center Clearinghouses system 
        of clearinghouses supported by the Office of Educational 
        Research and Improvement;
            ``(2) coordinate activities with Federal data and 
        information clearinghouses and entities operating Federal 
        dissemination networks and systems;
            ``(3) develop a database management and monitoring system 
        for improving the operation and effectiveness of federally 
        funded bilingual education programs;
            ``(4) develop, maintain, and disseminate a listing, by 
        geographical area, of education professionals, parents, 
        teachers, administrators, community members, and others, who 
        are native speakers of languages other than English, for use as 
        a resource by local educational agencies and schools in the 
        development and implementation of bilingual education programs; 
        and
            ``(5) publish, on an annual basis, a list of grant 
        recipients under this subpart.

``SEC. 3126. INSTRUCTIONAL MATERIALS DEVELOPMENT.

    ``(a) In General.--The Secretary may make grants for the 
development, publication, and dissemination of high-quality 
instructional materials--
            ``(1) in Native American languages (including Native 
        Hawaiian languages and the language of Native American Pacific 
        Islanders), and the language of natives of the outlying areas, 
        for which instructional materials are not readily available; 
        and
            ``(2) in other low-incidence languages in the United States 
        for which instructional materials are not readily available.
    ``(b) Priority.--In making the grants, the Secretary shall give 
priority to applicants for the grants who propose--
            ``(1) to develop instructional materials in languages 
        indigenous to the United States or the outlying areas; and
            ``(2) to develop and evaluate materials, in collaboration 
        with entities carrying out activities assisted under subpart 1 
        and this subpart, that are consistent with voluntary national 
        content standards and challenging State content standards.

                 ``Subpart 3--Professional Development

``SEC. 3131. PURPOSE.

    ``The purpose of this subpart is to assist in preparing educators 
to improve the educational services for limited English proficient 
children and youth by supporting professional development programs and 
the dissemination of information on appropriate instructional practices 
for such children and youth.

``SEC. 3132. TRAINING FOR ALL TEACHERS PROGRAM.

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

``SEC. 3133. BILINGUAL EDUCATION TEACHERS AND PERSONNEL GRANTS.

    ``(a) Purpose.--The purpose of this section is to provide for--
            ``(1) preservice and inservice professional development for 
        bilingual education teachers, administrators, pupil services 
        personnel, and other educational personnel who are either 
        involved in, or preparing to be involved in, the provision of 
        educational services for children and youth of limited English 
        proficiency; and
            ``(2) national professional development institutes that 
        assist schools or departments of education in institutions of 
        higher education to improve the quality of professional 
        development programs for personnel serving, preparing to serve, 
        or who may serve, children and youth of limited English 
        proficiency.
    ``(b) Program Authorized.--
            ``(1) Grants to institutions of higher education.--The 
        Secretary is authorized to award grants for a period of not 
        more than 5 years to institutions of higher education, in 
        consortia with State educational agencies or local educational 
        agencies, to achieve the purpose of this section.
            ``(2) Grants to state and local educational agencies.--The 
        Secretary is authorized to award grants for a period of not 
        more than 5 years to State educational agencies and local 
        educational agencies, for inservice professional development 
        programs.
    ``(c) Priority.--The Secretary shall give priority in awarding 
grants under this section to institutions of higher education, in 
consortia with State educational agencies or local educational 
agencies, that offer degree programs that prepare new bilingual 
education teachers for teaching in order to increase the availability 
of teachers to provide high-quality education to limited English 
proficient students.

``SEC. 3134. BILINGUAL EDUCATION CAREER LADDER PROGRAM.

    ``(a) Purpose.--The purpose of this section is--
            ``(1) to upgrade the qualifications and skills of 
        noncertified educational personnel, especially educational 
        paraprofessionals, to enable the personnel to meet high 
        professional standards, including standards for certification 
        and licensure as bilingual education teachers or for other 
        types of educational personnel who serve limited English 
        proficient students, through collaborative training programs 
        operated by institutions of higher education and State 
        educational agencies and local educational agencies; and
            ``(2) to help recruit and train secondary school students 
        as bilingual education teachers and other types of educational 
        personnel to serve limited English proficient students.
    ``(b) Authorization.--
            ``(1) In general.--The Secretary is authorized to award 
        grants for bilingual education career ladder programs to 
        institutions of higher education, in consortia with State 
        educational agencies or local educational agencies, which 
        consortia may include community-based organizations or 
        professional education organizations.
            ``(2) Duration.--Each grant awarded under this section 
        shall be awarded for a period of not more than 5 years.
    ``(c) Permissible Activities.--Grants awarded under this section 
may be used--
            ``(1) for the development of bilingual education career 
        ladder program curricula appropriate to the needs of the 
        consortium participants involved;
            ``(2) to provide assistance for stipends and costs related 
        to tuition, fees, and books for enrolling in courses required 
        to complete the degree, and certification or licensing 
        requirements for bilingual education teachers; and
            ``(3) for programs to introduce secondary school students 
        to careers in bilingual education teaching that are coordinated 
        with other activities assisted under this section.
    ``(d) Special Consideration.--In awarding the grants, the Secretary 
shall give special consideration to an applicant proposing a program 
that provides for--
            ``(1) participant completion of teacher education programs 
        for a baccalaureate or master's degree, and certification 
        requirements, which programs may include effective employment 
        placement activities;
            ``(2) development of teacher proficiency in English as a 
        second language, including developing proficiency in the 
        instructional use of English and, as appropriate, a second 
        language in classroom contexts;
            ``(3) coordination with the Federal TRIO programs under 
        chapter 1 of subpart 2 of part A of title IV of the Higher 
        Education Act of 1965, programs under title I of the National 
        and Community Service Act of 1990, and other programs for the 
        recruitment and retention of bilingual students in secondary 
        and postsecondary programs to train the students to become 
        bilingual educators; and
            ``(4) the applicant's contribution of additional student 
        financial aid to participating students.

``SEC. 3135. GRADUATE FELLOWSHIPS IN BILINGUAL EDUCATION PROGRAM.

    ``(a) Authorization.--
            ``(1) In general.--The Secretary may award fellowships for 
        master's, doctoral, and post-doctoral study related to 
        instruction of children and youth of limited English 
        proficiency in such areas as teacher training, program 
        administration, research and evaluation, and curriculum 
        development, and for the support of dissertation research 
        related to such study.
            ``(2) Information.--The Secretary shall include information 
        on the operation of, and the number of fellowships awarded 
        under, the fellowship program in the evaluation required under 
        section 3138.
    ``(b) Fellowship Requirements.--
            ``(1) In general.--Any person receiving a fellowship under 
        this section shall agree to--
                    ``(A) work in an activity related to the program or 
                in an activity such as an activity authorized under 
                this part, including work as a bilingual education 
                teacher, for a period of time equivalent to the period 
                of time during which such person receives assistance 
                under this section; or
                    ``(B) repay such assistance.
            ``(2) Regulations.--The Secretary shall establish in 
        regulations such terms and conditions for such agreement as the 
        Secretary determines to be reasonable and necessary and may 
        waive the requirement of paragraph (1) in extraordinary 
        circumstances.
    ``(c) Priority.--In awarding fellowships under this section the 
Secretary may give priority to institutions of higher education that 
demonstrate experience in assisting fellowship recipients to find 
employment in the field of bilingual education.

``SEC. 3136. APPLICATION.

    ``(a) In General.--
            ``(1) Secretary.--To receive an award under this subpart, 
        an eligible entity shall submit an application to the Secretary 
        at such time, in such form, and containing such information as 
        the Secretary may require.
            ``(2) Consultation and assessment.--Each such application 
        shall contain a description of how the applicant has consulted 
        with, and assessed the needs of, public and private schools 
        serving children and youth of limited English proficiency to 
        determine such schools' need for, and the design of, the 
        program for which funds are sought.
            ``(3) Special rule.--
                    ``(A) Training practicum.--An eligible entity who 
                proposes to conduct a master's- or doctoral-level 
                program with funds received under this subpart shall 
                submit an application under this section that contains 
                an assurance that such program will include, as a part 
                of the program, a training practicum in a local school 
                program serving children and youth of limited English 
                proficiency.
                    ``(B) Waiver.--A recipient of a grant under this 
                subpart for a program may waive the requirement that a 
                participant in the program participate in the training 
                practicum, for a degree candidate with significant 
                experience in a local school program serving children 
                and youth of limited English proficiency.
            ``(4) State educational agency.--An eligible entity that 
        submits an application under this section, with the exception 
        of a school funded by the Bureau of Indian Affairs, shall 
        submit a copy of the application to the appropriate State 
        educational agency.
    ``(b) State Review and Comments.--
            ``(1) Deadline.--The State educational agency, not later 
        than 45 days after receipt of such application, shall review 
        the application and transmit such application to the Secretary.
            ``(2) Comments.--
                    ``(A) Submission of comments.--Regarding 
                applications submitted under this subpart, the State 
                educational agency shall--
                            ``(i) submit to the Secretary written 
                        comments regarding all such applications; and
                            ``(ii) submit to each eligible entity the 
                        comments that pertain to such entity.
                    ``(B) Subject.--For purposes of this subpart, 
                comments shall address--
                            ``(i) how the activities to be carried out 
                        under the award will further the academic 
                        achievement and English proficiency of limited 
                        English proficient students served under the 
                        award; and
                            ``(ii) how the application is consistent 
                        with the State plan required under section 
                        1111.
    ``(c) Eligible Entity Comments.--An eligible entity may submit to 
the Secretary comments that address the comments submitted by the State 
educational agency.
    ``(d) Comment Consideration.--In making awards under this subpart, 
the Secretary shall take into consideration comments made by State 
educational agencies.
    ``(e) Waiver.--Notwithstanding subsection (b), the Secretary is 
authorized to waive the review requirement specified in subsection (b) 
if a State educational agency can demonstrate that such review 
requirement may impede such agency's ability to fulfill the 
requirements of participation in the program authorized in section 
3124, particularly such agency's ability to carry out data collection 
efforts, and such agency's ability to provide technical assistance to 
local educational agencies not receiving funds under this Act.
    ``(f) Special Rule.--
            ``(1) Outreach and technical assistance.--The Secretary 
        shall provide for outreach and technical assistance to 
        institutions of higher education eligible for assistance under 
        title III of the Higher Education Act of 1965 and institutions 
        of higher education that are operated or funded by the Bureau 
        of Indian Affairs to facilitate the participation of such 
        institutions in activities under this subpart.
            ``(2) Distribution rule.--In making awards under this 
        subpart, the Secretary, consistent with subsection (d), shall 
        ensure adequate representation of Hispanic-serving institutions 
        that demonstrate competence and experience concerning the 
        programs and activities authorized under this subpart and are 
        otherwise qualified.

``SEC. 3137. STIPENDS.

    ``The Secretary shall provide, for persons participating in 
training programs under this subpart, for the payment of such stipends 
(including allowances for subsistence and other expenses for such 
persons and their dependents), as the Secretary determines to be 
appropriate.

``SEC. 3138. PROGRAM EVALUATIONS.

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

``SEC. 3139. USE OF FUNDS FOR SECOND LANGUAGE COMPETENCE.

    ``Awards under this subpart may be used to develop a program 
participant's competence in a second language for use in instructional 
programs.

             ``PART B--FOREIGN LANGUAGE ASSISTANCE PROGRAM

``SEC. 3201. SHORT TITLE.

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

``SEC. 3202. PROGRAM AUTHORIZED.

    ``(a) Program Authority.--
            ``(1) In general.--The Secretary shall make grants, on a 
        competitive basis, to State educational agencies or local 
        educational agencies to pay the Federal share of the cost of 
        innovative model programs providing for the establishment, 
        improvement or expansion of foreign language study for 
        elementary school and secondary school students.
            ``(2) Duration.--Each grant under paragraph (1) shall be 
        awarded for a period of 3 years.
    ``(b) Requirements.--
            ``(1) Grants to state educational agencies.--In awarding a 
        grant under subsection (a) to a State educational agency, the 
        Secretary shall support programs that promote systemic 
        approaches to improving foreign language learning in the State.
            ``(2) Grants to local educational agencies.--In awarding a 
        grant under subsection (a) to a local educational agency, the 
        Secretary shall support programs that--
                    ``(A) show the promise of being continued beyond 
                the grant period;
                    ``(B) demonstrate approaches that can be 
                disseminated and duplicated in other local educational 
                agencies; and
                    ``(C) may include a professional development 
                component.
    ``(c) Federal Share.--
            ``(1) In general.--The Federal share for each fiscal year 
        shall be 50 percent.
            ``(2) Waiver.--The Secretary may waive the requirement of 
        paragraph (1) for any local educational agency which the 
        Secretary determines does not have adequate resources to pay 
        the non-Federal share of the cost of the activities assisted 
        under this part.
            ``(3) Special rule.--Not less than \3/4\ of the funds 
        appropriated under section 3205 shall be used for the expansion 
        of foreign language learning in the elementary grades.
            ``(4) Reservation.--The Secretary may reserve not more than 
        5 percent of funds appropriated under section 3205 to evaluate 
        the efficacy of programs under this part.

``SEC. 3203. APPLICATIONS.

    ``(a) In General.--Any State educational agency or local 
educational agency desiring a grant under this part shall submit an 
application to the Secretary at such time, in such form, and containing 
such information and assurances as the Secretary may require.
    ``(b) Special Consideration.--The Secretary shall give special 
consideration to applications describing programs that--
            ``(1) include intensive summer foreign language programs 
        for professional development;
            ``(2) link non-native English speakers in the community 
        with the schools in order to promote two-way language learning;
            ``(3) promote the sequential study of a foreign language 
        for students, beginning in elementary schools;
            ``(4) make effective use of technology, such as computer-
        assisted instruction, language laboratories, or distance 
        learning, to promote foreign language study;
            ``(5) promote innovative activities such as foreign 
        language immersion, partial foreign language immersion, or 
        content-based instruction; and
            ``(6) are carried out through a consortium comprised of the 
        agency receiving the grant and an elementary school or 
        secondary school.

``SEC. 3204. ELEMENTARY SCHOOL FOREIGN LANGUAGE INCENTIVE PROGRAM.

    ``(a) Incentive Payments.--From amounts appropriated under section 
3205 the Secretary shall make an incentive payment for each fiscal year 
to each public elementary school that provides to students attending 
such school a program designed to lead to communicative competency in a 
foreign language.
    ``(b) Amount.--The Secretary shall determine the amount of the 
incentive payment under subsection (a) for each public elementary 
school for each fiscal year on the basis of the number of students 
participating in a program described in such subsection at such school 
for such year compared to the total number of such students at all such 
schools in the United States for such year.
    ``(c) Requirement.--The Secretary shall consider a program to be 
designed to lead to communicative competency in a foreign language if 
such program is comparable to a program that provides not less than 45 
minutes of instruction in a foreign language not less than 4 days per 
week throughout an academic year.

``SEC. 3205. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $35,000,000 for the 
fiscal year 2002, and such sums as may be necessary for each of the 6 
succeeding fiscal years, to carry out this part, of which not more than 
$20,000,000 may be used in each fiscal year to carry out section 3204.

            ``PART C--EMERGENCY IMMIGRANT EDUCATION PROGRAM

``SEC. 3301. PURPOSE.

    ``(a) Findings.--The Congress finds that--
            ``(1) the education of our Nation's children and youth is 1 
        of the most sacred government responsibilities;
            ``(2) local educational agencies have struggled to fund 
        adequately education services;
            ``(3) in the case of Plyler v. Doe, 457 U.S. 202 (1982), 
        the Supreme Court held that States have a responsibility under 
        the Equal Protection Clause of the Constitution to educate all 
        children, regardless of immigration status; and
            ``(4) immigration policy is solely a responsibility of the 
        Federal Government.
    ``(b) Purpose.--The purpose of this part is to assist eligible 
local educational agencies that experience unexpectedly large increases 
in their student population due to immigration to--
            ``(1) provide high-quality instruction to immigrant 
        children and youth; and
            ``(2) help such children and youth--
                    ``(A) with their transition into American society; 
                and
                    ``(B) meet the same challenging State performance 
                standards expected of all children and youth.

``SEC. 3302. STATE ADMINISTRATIVE COSTS.

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

``SEC. 3303. WITHHOLDING.

    ``Whenever the Secretary, after providing reasonable notice and 
opportunity for a hearing to any State educational agency, finds that 
there is a failure to meet the requirement of any provision of this 
part, the Secretary shall notify that agency that further payments will 
not be made to the agency under this part, or in the discretion of the 
Secretary, that the State educational agency shall not make further 
payments under this part to specified local educational agencies whose 
actions cause or are involved in such failure until the Secretary is 
satisfied that there is no longer any such failure to comply. Until the 
Secretary is so satisfied, no further payments shall be made to the 
State educational agency under this part, or payments by the State 
educational agency under this part shall be limited to local 
educational agencies whose actions did not cause or were not involved 
in the failure, as the case may be.

``SEC. 3304. STATE ALLOCATIONS.

    ``(a) Payments.--The Secretary shall, in accordance with the 
provisions of this section, make payments to State educational agencies 
for each of the fiscal years 2002 through 2008 for the purpose set 
forth in section 3301.
    ``(b) Allocations.--
            ``(1) In general.--Except as provided in subsections (c) 
        and (d), of the amount appropriated for each fiscal year for 
        this part, each State participating in the program assisted 
        under this part shall receive an allocation equal to the 
        proportion of such State's number of immigrant children and 
        youth who are enrolled in public elementary schools or 
        secondary schools under the jurisdiction of each local 
        educational agency described in paragraph (2) within such 
        State, and in nonpublic elementary schools or secondary schools 
        within the district served by each such local educational 
        agency, relative to the total number of immigrant children and 
        youth so enrolled in all the States participating in the 
        program assisted under this part.
            ``(2) Eligible local educational agencies.--The local 
        educational agencies referred to in paragraph (1) are those 
        local educational agencies in which the sum of the number of 
        immigrant children and youth who are enrolled in public 
        elementary schools or secondary schools under the jurisdiction 
        of such agencies, and in nonpublic elementary schools or 
        secondary schools within the districts served by such agencies, 
        during the fiscal year for which the payments are to be made 
        under this part, is equal to--
                    ``(A) at least 500; or
                    ``(B) at least 3 percent of the total number of 
                students enrolled in such public or nonpublic schools 
                during such fiscal year,
        whichever is less.
    ``(c) Determinations of Number of Children and Youth.--
            ``(1) In general.--Determinations by the Secretary under 
        this section for any period with respect to the number of 
        immigrant children and youth shall be made on the basis of data 
        or estimates provided to the Secretary by each State 
        educational agency in accordance with criteria established by 
        the Secretary, unless the Secretary determines, after notice 
        and opportunity for a hearing to the affected State educational 
        agency, that such data or estimates are clearly erroneous.
            ``(2) Special rule.--No such determination with respect to 
        the number of immigrant children and youth shall operate 
        because of an underestimate or overestimate to deprive any 
        State educational agency of the allocation under this section 
        that such State would otherwise have received had such 
        determination been made on the basis of accurate data.
    ``(d) Reallocation.--Whenever the Secretary determines that any 
amount of a payment made to a State under this part for a fiscal year 
will not be used by such State for carrying out the purpose for which 
the payment was made, the Secretary shall make such amount available 
for carrying out such purpose to 1 or more other States to the extent 
the Secretary determines that such other States will be able to use 
such additional amount for carrying out such purpose. Any amount made 
available to a State from any appropriation for a fiscal year in 
accordance with the preceding sentence shall, for purposes of this 
part, be regarded as part of such State's payment (as determined under 
subsection (b)) for such year, but shall remain available until the end 
of the succeeding fiscal year.
    ``(e) Reservation of Funds.--
            ``(1) In general.--Notwithstanding any other provision of 
        this part, if the amount appropriated to carry out this part 
        exceeds $50,000,000 for a fiscal year, a State educational 
        agency may reserve not more than 20 percent of such agency's 
        payment under this part for such year to award grants, on a 
        competitive basis, to local educational agencies within the 
        State as follows:
                    ``(A) Agencies with immigrant children and youth.--
                At least \1/2\ of such grants shall be made available 
                to eligible local educational agencies (as described in 
                subsection (b)(2)) within the State with the highest 
                numbers and percentages of immigrant children and 
                youth.
                    ``(B) Agencies with a sudden influx of children and 
                youth.--Funds reserved under this paragraph and not 
                made available under subparagraph (A) may be 
                distributed to local educational agencies within the 
                State experiencing a sudden influx of immigrant 
                children and youth which are otherwise not eligible for 
                assistance under this part.
            ``(2) Use of grant funds.--Each local educational agency 
        receiving a grant under paragraph (1) shall use such grant 
        funds to carry out the activities described in section 3307.
            ``(3) Information.--Local educational agencies with the 
        highest number of immigrant children and youth receiving funds 
        under paragraph (1) may make information available on serving 
        immigrant children and youth to local educational agencies in 
        the State with sparse numbers of such children.

``SEC. 3305. STATE APPLICATIONS.

    ``(a) Submission.--No State educational agency shall receive any 
payment under this part for any fiscal year unless such agency submits 
an application to the Secretary at such time, in such manner, and 
containing or accompanied by such information, as the Secretary may 
reasonably require. Each such application shall--
            ``(1) provide that the educational programs, services, and 
        activities for which payments under this part are made will be 
        administered by or under the supervision of the agency;
            ``(2) provide assurances that payments under this part will 
        be used for purposes set forth in sections 3301 and 3307, 
        including a description of how local educational agencies 
        receiving funds under this part will use such funds to meet 
        such purposes and will coordinate with other programs assisted 
        under this Act, and other Acts as appropriate;
            ``(3) provide an assurance that local educational agencies 
        receiving funds under this part will coordinate the use of such 
        funds with programs assisted under part A or title I;
            ``(4) provide assurances that such payments, with the 
        exception of payments reserved under section 3304(e), will be 
        distributed among local educational agencies within that State 
        on the basis of the number of immigrant children and youth 
        counted with respect to each such local educational agency 
        under section 3304(b)(1);
            ``(5) provide assurances that the State educational agency 
        will not finally disapprove in whole or in part any application 
        for funds received under this part without first affording the 
        local educational agency submitting an application for such 
        funds reasonable notice and opportunity for a hearing;
            ``(6) provide for making such reports as the Secretary may 
        reasonably require to perform the Secretary's functions under 
        this part;
            ``(7) provide assurances--
                    ``(A) that to the extent consistent with the number 
                of immigrant children and youth enrolled in the 
                nonpublic elementary schools or secondary schools 
                within the district served by a local educational 
                agency, such agency, after consultation with 
                appropriate officials of such schools, shall provide 
                for the benefit of such children and youth secular, 
                neutral, and nonideological services, materials, and 
                equipment necessary for the education of such children 
                and youth;
                    ``(B) that the control of funds provided under this 
                part to any materials, equipment, and property 
                repaired, remodeled, or constructed with those funds 
                shall be in a public agency for the uses and purpose 
                provided in this part, and a public agency shall 
                administer such funds and property; and
                    ``(C) that the provision of services pursuant to 
                this paragraph shall be provided by employees of a 
                public agency or through contract by such public agency 
                with a person, association, agency, or corporation who 
                or which, in the provision of such services, is 
                independent of such nonpublic elementary school or 
                secondary school and of any religious organization, and 
                such employment or contract shall be under the control 
                and supervision of such public agency, and the funds 
                provided under this paragraph shall not be commingled 
                with State or local funds;
            ``(8) provide that funds reserved under section 3304(e) be 
        awarded on a competitive basis based on merit and need in 
        accordance with such section; and
            ``(9) provide an assurance that State educational agencies 
        and local educational agencies receiving funds under this part 
        will comply with the requirements of section 1120(b).
    ``(b) Application Review.--
            ``(1) In general.--The Secretary shall review all 
        applications submitted pursuant to this section by State 
        educational agencies.
            ``(2) Approval.--The Secretary shall approve any 
        application submitted by a State educational agency that meets 
        the requirements of this section.
            ``(3) Disapproval.--The Secretary shall disapprove any 
        application submitted by a State educational agency which does 
        not meet the requirements of this section, but shall not 
        finally disapprove an application except after providing 
        reasonable notice, technical assistance, and an opportunity for 
        a hearing to the State.

``SEC. 3306. ADMINISTRATIVE PROVISIONS.

    ``(a) Notification of Amount.--The Secretary, not later than June 1 
of each year, shall notify each State educational agency that has an 
application approved under section 3305 of the amount of such agency's 
allocation under section 3304 for the succeeding year.
    ``(b) Services to Children Enrolled in Nonpublic Schools.--If by 
reason of any provision of law a local educational agency is prohibited 
from providing educational services for children enrolled in nonpublic 
elementary schools and secondary schools, as required by section 
3305(a)(7), or if the Secretary determines that a local educational 
agency has substantially failed or is unwilling to provide for the 
participation on an equitable basis of children enrolled in such 
schools, the Secretary may waive such requirement and shall arrange for 
the provision of services, subject to the requirements of this part, to 
such children. Such waivers shall be subject to consultation, 
withholding, notice, and judicial review requirements in accordance 
with the provisions of title I.

``SEC. 3307. USES OF FUNDS.

    ``(a) Use of Funds.--Funds awarded under this part shall be used to 
pay for enhanced instructional opportunities for immigrant children and 
youth, which may include--
            ``(1) family literacy, parent outreach, and training 
        activities designed to assist parents to become active 
        participants in the education of their children;
            ``(2) salaries of personnel, including teacher aides who 
        have been specifically trained, or are being trained, to 
        provide services to immigrant children and youth;
            ``(3) tutorials, mentoring, and academic or career 
        counseling for immigrant children and youth;
            ``(4) identification and acquisition of curricular 
        materials, educational software, and technologies to be used in 
        the program;
            ``(5) basic instructional services which are directly 
        attributable to the presence in the school district of 
        immigrant children, including the costs of providing additional 
        classroom supplies, overhead costs, costs of construction, 
        acquisition or rental of space, costs of transportation, or 
        such other costs as are directly attributable to such 
        additional basic instructional services; and
            ``(6) such other activities, related to the purpose of this 
        part, as the Secretary may authorize.
    ``(b) Consortia.--A local educational agency that receives a grant 
under this part may collaborate or form a consortium with 1 or more 
local educational agencies, institutions of higher education, and 
nonprofit organizations to carry out the program described in an 
application approved under this part.
    ``(c) Subgrants.--A local educational agency that receives a grant 
under this part may, with the approval of the Secretary, make a 
subgrant to, or enter into a contract with, an institution of higher 
education, a nonprofit organization, or a consortium of such entities 
to carry out a program described in an application approved under this 
part, including a program to serve out-of-school youth.
    ``(d) Construction.--Nothing in this part shall be construed to 
prohibit a local educational agency from serving immigrant children 
simultaneously with students with similar educational needs, in the 
same educational settings where appropriate.

``SEC. 3308. REPORTS.

    ``(a) Biennial Report.--Each State educational agency receiving 
funds under this part shall submit, once every 2 years, a report to the 
Secretary concerning the expenditure of funds by local educational 
agencies under this part. Each local educational agency receiving funds 
under this part shall submit to the State educational agency such 
information as may be necessary for such report.
    ``(b) Report to Congress.--The Secretary shall submit, once every 2 
years, a report to the appropriate committees of the Congress 
concerning programs assisted under this part.

``SEC. 3309. AUTHORIZATION OF APPROPRIATIONS.

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

    ``PART D--STATE AND LOCAL GRANTS FOR LANGUAGE MINORITY STUDENTS

``SEC. 3321. POLICY AND PURPOSE.

    ``(a) Policy.--It is 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 States and, through the States, local 
        educational agencies and schools to build their capacity to 
        establish, implement, and sustain programs of instruction and 
        English language development for limited English proficient 
        students;
            ``(2) hold States and, through the States, local 
        educational agencies and schools accountable for increases in 
        English proficiency and core content knowledge among limited 
        English proficient students; and
            ``(3) promote parental and community participation in 
        programs for limited English proficient students.
    ``(b) Purposes.--The purposes of this part are--
            ``(1) to assist all limited English proficient students, 
        including recent immigrant students, to attain English 
        proficiency as quickly and as effectively as possible;
            ``(2) to assist all limited English proficient students, 
        including recent immigrant students, to achieve at high levels 
        in the core academic subjects so that those students can meet 
        the same challenging State content and student performance 
        standards as all students are expected to meet, as required by 
        section 1111(b)(1); and
            ``(3) to provide the assistance described in paragraphs (1) 
        and (2) by--
                    ``(A) streamlining language instruction educational 
                programs into a program carried out through 
                performance-based grants for State and local 
                educational agencies to help limited English proficient 
                students, including recent immigrant students, develop 
                proficiency in English as quickly and as effectively as 
                possible, while meeting State content and student 
                performance standards as required by section 
                1111(b)(1);
                    ``(B) requiring States and, through the States, 
                local educational agencies and schools to--
                            ``(i) demonstrate improvements in the 
                        English proficiency of limited English 
                        proficient students each fiscal year; and
                            ``(ii) make adequate yearly progress with 
                        limited English proficient students, including 
                        recent immigrant students, as described in 
                        section 1111(b)(2); and
                    ``(C) providing State educational agencies and 
                local educational agencies with the flexibility to 
                implement the instructional programs, tied to 
                scientifically based research, that the agencies 
                believe to be the most effective for teaching English.

``SEC. 3322. DEFINITIONS.

    ``Except as otherwise provided, in this part:
            ``(1) Core academic subjects.--The term `core academic 
        subjects' has the meaning given the term in section 2102.
            ``(2) Immigrant children and youth.--The term `immigrant 
        children and youth' means individuals who--
                    ``(A) are aged 3 through 21;
                    ``(B) were not born in any State; and
                    ``(C) have not been attending 1 or more schools in 
                any 1 or more States for more than 3 full academic 
                years.
            ``(3) Language instruction educational program.--The term 
        `language instruction educational program' means an 
        instructional course--
                    ``(A) in which a limited English proficient student 
                is placed for the purpose of developing proficiency in 
                English as quickly and as effectively as possible, 
                while meeting State content and student performance 
                standards as required by section 1111(b)(1); and
                    ``(B) which may make instructional use of both 
                English and a student's native language to develop 
                English proficiency as quickly and as effectively as 
                possible, and may include the participation of English 
                proficient students if such course is designed to 
                enable all participating students to become proficient 
                in English and a second language. 
            ``(4) Limited english proficient student.--The term 
        `limited English proficient student' means an individual--
                    ``(A) who is aged 3 through 21;
                    ``(B) who is enrolled or preparing to enroll in an 
                elementary school or secondary school;
                    ``(C)(i) who was not born in the United States or 
                whose native language is a language other than English, 
                and who comes from an environment where a language 
                other than English is dominant;
                    ``(ii)(I) who is a Native American or Alaska 
                Native, or a native resident of the outlying areas; and
                    ``(II) who 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) who is migratory, whose native language is 
                a language other than English, and who comes from an 
                environment where a language other than English is 
                dominant; and
                    ``(D) who has sufficient difficulty speaking, 
                reading, writing, or understanding the English 
                language, and whose difficulties may deny the 
                individual--
                            ``(i) the ability to meet the State's 
                        proficient level of performance on State 
                        assessments described in section 1111(b)(3);
                            ``(ii) the opportunity to learn 
                        successfully in classrooms where the language 
                        of instruction is English; or
                            ``(iii) the opportunity to participate 
                        fully in society.
            ``(5) Local educational agency.--The term `local 
        educational agency' includes a consortium of such agencies.
            ``(6) Native language.--The term `native language', used 
        with reference to a limited English proficient student, means 
        the language normally used by the parents of the student.
            ``(7) Scientifically based research.--The term 
        `scientifically based research', used with respect to an 
        activity or program authorized under this part, means an 
        activity or program based on specific strategies and 
        implementation of such strategies that, based on sound 
        educational theory, research, and an evaluation (including a 
        comparison of program characteristics), are effective in 
        improving student achievement and performance and other program 
        objectives.
            ``(8) 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 part for a 
        fiscal year.
            ``(9) State.--The term `State' means each of the 50 States 
        of the United States and the District of Columbia.

``SEC. 3323. 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 3325(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 
        3003(b) 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 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) \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;
                    ``(C) \1/2\ of 1 percent of such amount for 
                payments to the Commonwealth of Puerto Rico, for 
                activities, approved by the Secretary, consistent with 
                this part;
                    ``(D) 6 percent of such amount to carry out 
                national activities under section 3332; and
                    ``(E) such sums as may be necessary to make 
                continuation awards under paragraph (4).
            ``(2) State allotments.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), from the amount appropriated under 
                3003(b) for any fiscal year that remains after making 
                reservations under paragraph (1), the Secretary shall 
                allot to each State having a State plan approved under 
                section 3325(c)--
                            ``(i) an amount that bears the same 
                        relationship to 67 percent of the remainder as 
                        the number of limited English proficient 
                        students in the State bears to the number of 
                        such students in all States; and
                            ``(ii) an amount that bears the same 
                        relationship to 33 percent of the remainder as 
                        the number of immigrant children and youth in 
                        the State bears to the number of such children 
                        and youth in all States.
                    ``(B) Minimum allotments.--No State shall receive 
                an allotment under this paragraph that is less than \1/
                2\ of 1 percent of the amount available for allotments 
                under this paragraph.
            ``(3) Data.--For purposes of paragraph (2), for the purpose 
        of determining the number of limited English proficient 
        students in a State and in all States, and the number of 
        immigrant children and youth 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, which 
        may include--
                    ``(A) data available from the Bureau of the Census; 
                or
                    ``(B) data submitted to the Secretary by the 
                States.
            ``(4) Continuation awards.--
                    ``(A) In general.--Before making allotments to 
                States under paragraph (2) for any fiscal year, the 
                Secretary shall use the sums reserved under paragraph 
                (1)(E) to make continuation awards to recipients who 
                received grants or fellowships for the fiscal year 
                before the first fiscal year described in section 
                3003(b) under--
                            ``(i) subparts 1 and 3 of part A of title 
                        VII (as in effect on the day before the 
                        effective date of the Better Education for 
                        Students and Teachers Act); or
                            ``(ii) subparts 1 and 3 of part A.
                    ``(B) Use of funds.--The Secretary shall make the 
                grants in order to allow such recipients to receive 
                awards for the complete period of their grants or 
                fellowships under the appropriate subparts.
    ``(c) Direct Awards to Specially Qualified Agencies.--
            ``(1) Nonparticipating state.--If a State educational 
        agency chooses not to participate in a program under this part 
        for a fiscal year, or fails to submit an approvable application 
        under section 3325 for a fiscal year, a specially qualified 
        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 
        specially qualified agencies in the State desiring a grant 
        under this part and having an application approved under 
        section 3325(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 a fiscal year for 
        the administrative costs of carrying out this part.
    ``(d) Reallotment.--Whenever the Secretary determines that any 
amount of a payment made to a State or specially qualified agency under 
this part for a fiscal year will not be used by the State or agency for 
the purpose for which the payment was made, the Secretary shall, in 
accordance with such rules as the Secretary determines to be 
appropriate, make such amount available to other States or specially 
qualified agencies for carrying out that purpose.

``SEC. 3324. WITHIN-STATE ALLOCATIONS.

    ``(a) Grant Awards.--Each State educational agency receiving a 
grant under this part for a fiscal year shall use a portion equal to at 
least 95 percent of the agency's allotment under section 3323(b)(2)--
            ``(1) to award grants, from allocations under subsection 
        (b), to local educational agencies in the State to carry out 
        the activities described in section 3327(b); and
            ``(2) to make grants under subsection (c) to local 
        educational agencies in the State that are described in that 
        subsection to carry out the activities described in section 
        3327(c).
    ``(b) Allocation Formula.--
            ``(1) In general.--After making the reservations under 
        subsection (c), each State educational agency receiving a grant 
        under section 3323(b)(2) shall award grants for a fiscal year 
        by allocating to each local educational agency in the State 
        having a plan approved under section 3326 an amount that bears 
        the same relationship to the portion described in subsection 
        (a)(1) and remaining after the reservations as the population 
        of limited English proficient students in schools served by the 
        local educational agency bears to the population of limited 
        English proficient students in schools served by all local 
        educational agencies in the State.
            ``(2) Amount of grants.--A State shall not award a grant 
        from an allocation made under this subsection in an amount of 
        less than $10,000.
    ``(c) Reservations.--
            ``(1) Grants to local educational agencies that experience 
        substantial increases in immigrant children and youth.--
                    ``(A) In general.--A State educational agency 
                receiving a grant under this part for a fiscal year 
                shall reserve a portion equal to not more than 15 
                percent of the agency's allotment under section 
                3323(b)(2) to award grants to local educational 
                agencies in the State that experience a substantial 
                increase in the number of immigrant children and youth 
                enrolled in public elementary schools and secondary 
                schools under the jurisdiction of the agencies.
                    ``(B) Substantial increase.--For the purpose of 
                this paragraph, the term `substantial increase', used 
                with respect to the number of immigrant children and 
                youth enrolled in schools for a fiscal year, means--
                            ``(i) an increase of not less than 20 
                        percent, or of not fewer than 50 individuals, 
                        in the number of such children and youth so 
                        enrolled, relative to the preceding year; or
                            ``(ii) an increase of not less than 20 
                        percent in such number, relative to the 
                        preceding year, in the case of a local 
                        educational agency that has limited or no 
                        experience in serving limited English 
                        proficient students.
            ``(2) State activities.--Each State educational agency 
        receiving a grant under this part may reserve not more than 5 
        percent of the agency's allotment under section 3323(b)(2) to 
        carry out State activities described in the State plan 
        submitted under section 3325.
            ``(3) Administrative expenses.--From the amount reserved 
        under paragraph (2), a State educational agency may use not 
        more than 2 percent for the planning costs and administrative 
        costs of carrying out the State activities described in the 
        State plan and providing grants to local educational agencies.

``SEC. 3325. STATE AND SPECIALLY QUALIFIED AGENCY PLANS.

    ``(a) Plan Required.--Each State educational agency and specially 
qualified agency desiring a grant under this part shall submit a plan 
to the Secretary at such time, in such manner, and containing such 
information as the Secretary may require.
    ``(b) Contents.--Each plan submitted under subsection (a) shall--
            ``(1) describe how the State or specially qualified agency 
        will establish standards and benchmarks for English language 
        proficiency that are derived from the 4 recognized domains of 
        speaking, listening, reading, and writing, and that are aligned 
        with achievement of the State content and student performance 
        standards described in section 1111(b)(1);
            ``(2) contain an assurance that the--
                    ``(A) State educational agency consulted with local 
                educational agencies, education-related community 
                groups and nonprofit organizations, parents, teachers, 
                school administrators, and second language acquisition 
                specialists, in setting the performance objectives; or
                    ``(B) specially qualified agency consulted with 
                education-related community groups and nonprofit 
                organizations, parents, teachers, and second language 
                acquisition specialists, in setting the performance 
                objectives described in section 3329;
            ``(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 all performance objectives 
                        described in section 3329;
                            ``(ii) making adequate yearly progress with 
                        limited English proficient students as 
                        described in section 1111(b)(2); and
                            ``(iii) annually measuring the English 
                        language proficiency of limited English 
                        proficient students, so that such students 
                        served by the programs carried out under this 
                        part develop proficiency in English as quickly 
                        and as effectively as possible, while meeting 
                        State content and student performance standards 
                        as required by section 1111(b)(1); and
                    ``(B) in the case of a specially qualified agency, 
                the agency will hold elementary schools and secondary 
                schools accountable for--
                            ``(i) meeting all performance objectives 
                        described in section 3329;
                            ``(ii) making adequate yearly progress with 
                        limited English proficient students as 
                        described in section 1111(b)(2); and
                            ``(iii) annually measuring the English 
                        language proficiency of limited English 
                        proficient students, so that such students 
                        served by the programs carried out under this 
                        part develop proficiency in English as quickly 
                        and as effectively as possible, while meeting 
                        State content and student performance standards 
                        as required by section 1111(b)(1);
            ``(4) in the case of a specially qualified agency, describe 
        the activities for which assistance is sought, and how the 
        activities will increase the effectiveness with which students 
        develop proficiency in English as quickly and as effectively as 
        possible, while meeting State content and student performance 
        standards as required by section 1111(b)(1);
            ``(5) in the case of a State educational agency, describe 
        how local educational agencies in the State will be given the 
        flexibility to teach limited English proficient students--
                    ``(A) using a language instruction curriculum that 
                is tied to scientifically based research and has been 
                demonstrated to be effective; 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, if requested--
                            ``(i) provide technical assistance to local 
                        educational agencies and elementary schools and 
                        secondary schools for the purposes of 
                        identifying and implementing language 
                        instruction educational programs and curricula 
                        that are tied to scientifically based research;
                            ``(ii) provide technical assistance to 
                        local educational agencies and elementary 
                        schools and secondary schools for the purposes 
                        of helping limited English proficient students 
                        meet the same challenging State content 
                        standards and challenging State student 
                        performance standards as all students are 
                        expected to meet;
                            ``(iii) provide technical assistance to 
                        local educational agencies and elementary 
                        schools and secondary schools to identify or 
                        develop and implement measures of English 
                        language proficiency; and
                            ``(iv) provide technical assistance to 
                        local educational agencies and elementary 
                        schools and secondary schools for the purposes 
                        of promoting parental and community 
                        participation in programs that serve limited 
                        English proficient students; and
                    ``(B) in the case of a specially qualified agency, 
                the specially qualified agency will--
                            ``(i) provide technical assistance to 
                        elementary schools and secondary schools served 
                        by the specially qualified agency for the 
                        purposes of identifying and implementing 
                        programs and curricula that are tied to 
                        scientifically based research; and
                            ``(ii) provide technical assistance to 
                        elementary schools and secondary schools served 
                        by the specially qualified agency for the 
                        purposes described in clauses (ii), (iii), and 
                        (iv) of subparagraph (A).
    ``(c) Approval.--The Secretary, after 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 purposes described in section 3321(b).
    ``(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 educational agency's or specially qualified 
                agency's participation under this part; and
                    ``(B) be periodically reviewed and revised by the 
                State educational agency or specially qualified agency, 
                as necessary, to reflect changes to the State's or 
                specially qualified agency's strategies and programs 
                carried out under this part.
            ``(2) Additional information.--
                    ``(A) Significant changes.--If the State 
                educational agency or specially qualified agency makes 
                significant changes to the plan, such as the adoption 
                of new performance objectives or assessment measures, 
                the State educational agency or specially qualified 
                agency shall submit information regarding the 
                significant changes to the Secretary.
                    ``(B) Approval.--The Secretary shall approve such 
                changes to an approved plan, unless the Secretary 
                determines that the changes will not result in the 
                State or specially qualified agency meeting the 
                requirements, or fulfilling the purposes, of this part.
    ``(e) Consolidated Plan.--A State plan submitted under subsection 
(a) may be submitted as part of a consolidated plan under section 5502.
    ``(f) Secretary Assistance.--The Secretary shall provide technical 
assistance, if requested, in the development of English language 
development standards and English language proficiency assessments.

``SEC. 3326. LOCAL PLANS.

    ``(a) Plan Required.--Each local educational agency desiring a 
grant from the State educational agency under section 3324 shall submit 
a plan to the State educational agency at such time, in such manner, 
and containing such information as the State educational agency may 
require.
    ``(b) Contents.--Each plan submitted under subsection (a) shall--
            ``(1) describe how the local educational agency will use 
        the grant funds to meet all performance objectives described in 
        section 3329;
            ``(2) describe how the local educational agency will hold 
        elementary schools and secondary schools accountable for--
                    ``(A) meeting the performance objectives;
                    ``(B) making adequate yearly progress with limited 
                English proficient students as described in section 
                1111(b)(2); and
                    ``(C) annually measuring the English language 
                proficiency of limited English proficient students, so 
                that such students served by the programs carried out 
                under this part develop proficiency in English as 
                quickly and as effectively as possible, while meeting 
                State content and student performance standards as 
                required by section 1111(b)(1);
            ``(3) describe how the local educational agency will 
        promote parental and community participation in programs for 
        limited English proficient students;
            ``(4) contain an assurance that the local educational 
        agency consulted with teachers (including second language 
        acquisition specialists), school administrators, and parents, 
        and, if appropriate, with education-related community groups 
        and nonprofit organizations, and institutions of higher 
        education, in developing the local educational agency plan;
            ``(5) describe how the local educational agency will use 
        the disaggregated results of the student assessments required 
        under section 1111(b)(3), and other measures or indicators 
        available to the agency, to review annually the progress of 
        each school served by the agency under this part and under 
        title I to determine whether the schools are making the 
        adequate yearly progress necessary to ensure that limited 
        English proficient students attending the schools will meet the 
        State's proficient level of performance on the State assessment 
        described in section 1111(b)(3) within 10 years after the date 
        of enactment of the Better Education for Students and Teachers 
        Act; and
            ``(6) describe how language instruction educational 
        programs will ensure that limited English proficient students 
        being served by the programs develop English language 
        proficiency as quickly and as effectively as possible.

``SEC. 3327. USES OF FUNDS.

    ``(a) Administrative Expenses.--Each local educational agency 
receiving grant funds under section 3324(b) for a fiscal year may use, 
from those grant funds, not more than 1 percent of the grant funds the 
agency receives under section 3324 for the fiscal year for the cost of 
administering this part.
    ``(b) Activities.--Each local educational agency receiving grant 
funds under section 3324(b)--
            ``(1) shall use the grant funds that are not used under 
        subsection (a)--
                    ``(A) to increase limited English proficient 
                students' proficiency in English by providing high-
                quality language instruction educational programs that 
                are--
                            ``(i) tied to scientifically based research 
                        demonstrating the effectiveness of the programs 
                        in increasing English proficiency; and
                            ``(ii) tied to scientifically based 
                        research demonstrating the effectiveness of the 
                        programs in increasing student performance in 
                        the core academic subjects; and
                    ``(B) to provide high-quality professional 
                development activities for teachers of limited English 
                proficient students, including teachers in classroom 
                settings that are not the settings of language 
                instruction educational programs, that are--
                            ``(i) designed to enhance the ability of 
                        the teachers to understand and use curricula, 
                        assessment measures, and instructional 
                        strategies for limited English proficient 
                        students;
                            ``(ii) tied to scientifically based 
                        research demonstrating the effectiveness of 
                        those activities in increasing students' 
                        English proficiency or substantially increasing 
                        the subject matter knowledge, teaching 
                        knowledge, and teaching skills of those 
                        teachers; and
                            ``(iii) of sufficient intensity and 
                        duration (not to include activities such as 1-
                        day or short-term workshops and conferences) to 
                        have a positive and lasting impact on the 
                        teachers' performance in the classroom, except 
                        that this clause 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 based on an assessment of the needs 
                        of the teacher, the supervisor, the students of 
                        the teacher, and the local educational agency; 
                        and
            ``(2) may use the grant funds that are not used under 
        subsection (a) to provide parental and community participation 
        programs that are designed to improve language instruction 
        educational programs for limited English proficient students, 
        and to assist parents to become active participants in the 
        education of their children.
    ``(c) Activities by Agencies Experiencing Substantial Increases in 
Immigrant Children and Youth.--Each local educational agency receiving 
grant funds under section 3324(c)(1) shall use the grant funds to pay 
for activities that provide enhanced instructional opportunities for 
such children and youth, which may include--
            ``(1) family literacy, parent outreach, and training 
        activities designed to assist parents to become active 
        participants in the education of their children;
            ``(2) payment of salaries of personnel, including teacher 
        aides who have been specifically trained, or are being trained, 
        to provide services to immigrant children and youth;
            ``(3) provision of tutorials, mentoring, and academic or 
        career counseling for immigrant children and youth;
            ``(4) identification and acquisition of curricular 
        materials, educational software, and technologies to be used in 
        the program carried out with the grant involved;
            ``(5) basic instructional services that are directly 
        attributable to the presence in the school district involved of 
        immigrant children and youth, including the payment of costs of 
        providing additional classroom supplies, overhead costs, costs 
        of construction, acquisition, or rental of space, costs of 
        transportation, or such other costs as are directly 
        attributable to such additional basic instructional services;
            ``(6) other instructional services that are designed to 
        assist immigrant students to achieve in elementary and 
        secondary schools in the United States, such as literacy 
        programs, programs of introduction to the educational system, 
        and civics education; and
            ``(7) activities, coordinated with community-based 
        organizations, institutions of higher education, private sector 
        entities, or other entities with expertise in working with 
        immigrants, to assist parents of immigrant students by offering 
        comprehensive community social services, such as English as a 
        second language courses, health care, job training, child care, 
        and transportation services.
    ``(d) Supplement Not Supplant.--Funds appropriated to carry out 
this part shall be used to supplement and not supplant other Federal, 
State, and local public funds expended to provide services for eligible 
individuals.

``SEC. 3328. PROGRAM REQUIREMENTS.

    ``(a) Prohibition.--In carrying out this part, the Secretary shall 
neither mandate nor preclude the use of 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 3324 shall certify to the State 
educational agency that all teachers in any language instruction 
educational program for limited English proficient students funded 
under this part are fluent in English and any other language used for 
instruction.

``SEC. 3329. PERFORMANCE OBJECTIVES.

    ``(a) In General.--Each State educational agency or specially 
qualified agency receiving a grant under this part shall develop annual 
measurable performance objectives that are research-based, and age- and 
developmentally appropriate, with respect to helping limited English 
proficient students develop proficiency in English as quickly and as 
effectively as possible, while meeting State content and student 
performance standards as required by section 1111(b)(1). For each 
annual measurable performance objective, the agency shall specify an 
incremental percentage increase for the objective to be attained for 
each of the fiscal years (after the first fiscal year) for which the 
agency receives a grant under this part, relative to the preceding 
fiscal year, including increases in the number of limited English 
proficient students demonstrating an increase in performance on annual 
assessments.
    ``(b) Accountability.--
            ``(1) For states.--Each State educational agency receiving 
        a grant under this part shall be held accountable for meeting 
        the annual measurable performance objectives under this part 
        and the adequate yearly progress levels for limited English 
        proficient students under section 1111(b)(2)(B). Any State 
        educational agency that fails to meet the annual performance 
        objectives shall be subject to sanctions under section 6202.
            ``(2) For specially qualified agencies.--Each specially 
        qualified agency receiving a grant under this part shall be 
        held accountable for meeting annual measurable performance 
        objectives, be held accountable for making yearly progress, and 
        be subject to sanctions, in a manner that the Secretary 
        determines is appropriate and comparable to the manner used for 
        State educational agencies specified in paragraph (1).

``SEC. 3330. REGULATIONS AND NOTIFICATION.

    ``(a) Regulation Rule.--In developing regulations under this part, 
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 
        participating in a language instruction educational program 
        under this part shall notify parents of a student participating 
        in the program of--
                    ``(A) the student's level of English proficiency, 
                how that 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, grade 
                promotion, and graduation;
                    ``(B)(i) the programs that are available to meet 
                the student's educational strengths and needs, and how 
                those programs differ in content and instructional 
                goals from other language instruction educational 
                programs that serve limited English proficient 
                students; and
                    ``(ii) in the case of a student with a disability 
                who participates in the language instruction 
                educational program, how the program meets the 
                objectives of the individualized education program of 
                the student;
                    ``(C)(i) the instructional goals of the language 
                instruction educational program in which the student 
                participates, and how the program will specifically 
                help the limited English proficient student learn 
                English and meet age-appropriate standards for grade 
                promotion and graduation;
                    ``(ii) the characteristics, benefits, and past 
                academic results of the language instruction 
                educational program and of instructional alternatives; 
                and
                    ``(iii) the reasons the student was identified as 
                being in need of a language instruction educational 
                program; and
                    ``(D) how parents can participate and be involved 
                in the language instruction educational program in 
                order to help their children achieve.
            ``(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 the 
                student in a language instruction educational program, 
                and shall be given an opportunity to decline that 
                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 because a parent chooses not to enroll a student 
                in a language instruction educational program.
            ``(3) Receipt of information.--A parent described in 
        paragraph (1) shall receive the information required by this 
        subsection in a manner and form understandable to the parent 
        including, if necessary and to the extent feasible, receiving 
        the information in the language normally used by the parent. 
        The parent shall receive--
                    ``(A) timely information about programs funded 
                under this part; and
                    ``(B) notice of opportunities, if applicable, for 
                regular meetings for the purpose of formulating and 
                responding to recommendations from parents of students 
                assisted under this part.
            ``(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 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, elementary school's, or secondary 
        school's specific challenging English language development 
        standards or assessments, curriculum, or program of 
        instruction, as a condition of eligibility to receive grant 
        funds under this part.

``SEC. 3331. ADMINISTRATION.

    ``(a) State and Local Programs.--This part shall be in effect only 
in a fiscal year described in section 3003(b).
    ``(b) Other law.--In such a fiscal year--
            ``(1) parts A, C, E (other than section 3405), and F shall 
        not be in effect; and
            ``(2) section 3404 shall apply only with respect to grants 
        provided and activities carried out under part B and this part.
    ``(c) References.--In such a fiscal year, references in Federal law 
to part A shall be considered to be references to this part.

``SEC. 3332. NATIONAL LEADERSHIP ACTIVITIES TO ENSURE EDUCATIONAL 
              EXCELLENCE FOR LIMITED ENGLISH PROFICIENT STUDENTS.

    ``(a) In General.--The Secretary shall use funds made available 
under section 3323(b)(1)(D) to carry out each of the activities 
described in subsections (b) and (c).
    ``(b) National Professional Development Project.--The Secretary 
shall award grants on a competitive basis, for a period of not more 
than 5 years, to institutions of higher education (in consortia with 
State educational agencies or local educational agencies) to provide 
for professional development activities that will improve classroom 
instruction for limited English proficient students and assist 
educational personnel working with such students to meet high 
professional standards, including standards for certification and 
licensure as bilingual education teachers. Grants awarded under this 
subsection may be used--
            ``(1) for inservice professional development programs that 
        serve teachers, administrators, pupil services personnel, and 
        other educational personnel who are either involved in, or 
        preparing to be involved in, a language instruction educational 
        program;
            ``(2) for preservice professional development programs that 
        will assist local schools and institutions of higher education 
        to upgrade the qualifications and skills of educational 
        personnel who are not certified or licensed, especially 
        educational paraprofessionals;
            ``(3) for the development of curricula appropriate to the 
        needs of the consortia participants involved; and
            ``(4) for financial assistance and costs related to 
        tuition, fees, and books for enrolling in courses required to 
        complete the degree involved, and meet certification or 
        licensing requirements for bilingual education teachers.
    ``(c) National Clearinghouse.--The Secretary shall establish and 
support the operation of a National Clearinghouse for Bilingual 
Education, which shall collect, analyze, synthesize, and disseminate 
information about second language acquisition programs for limited 
English proficient students, and related programs. The National 
Clearinghouse shall--
            ``(1) be administered as an adjunct clearinghouse of the 
        Educational Resources Information Center Clearinghouses system 
        supported by the Office of Educational Research and 
        Improvement;
            ``(2) coordinate activities with Federal data and 
        information clearinghouses and entities operating Federal 
        dissemination networks and systems;
            ``(3) develop a database management and monitoring system 
        for improving the operation and effectiveness of federally 
        funded language instruction educational programs;
            ``(4) disseminate information on best practices related 
        to--
                    ``(A) the development of accountability systems 
                that monitor the academic progress of limited English 
                proficient students in language instruction educational 
                programs; and
                    ``(B) the development of standards and English 
                language proficiency assessments for language 
                instruction educational programs;
            ``(5) develop, maintain, and disseminate a listing, by 
        geographical area, of education professionals, parents, 
        teachers, administrators, community members, and others, who 
        are native speakers of languages other than English, for use as 
        a resource by local educational agencies and schools in the 
        development and implementation of language instruction 
        educational programs; and
            ``(6) publish, on an annual basis, a list of grant 
        recipients under this section.

                        ``PART E--ADMINISTRATION

``SEC. 3401. RELEASE TIME.

    ``The Secretary shall allow entities carrying out professional 
development programs funded under part A to use funds provided under 
part A for professional release time to enable individuals to 
participate in programs assisted under part A.

``SEC. 3402. EDUCATION TECHNOLOGY.

    ``Funds made available under part A may be used to provide for the 
acquisition or development of education technology or instructional 
materials, including authentic materials in languages other than 
English, access to and participation in electronic networks for 
materials, training and communications, and incorporation of such 
resources in curricula and programs such as those funded under this 
title.

``SEC. 3403. NOTIFICATION.

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

``SEC. 3404. CONTINUED ELIGIBILITY.

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

``SEC. 3405. COORDINATION AND REPORTING REQUIREMENTS.

    ``(a) Coordination With Related Programs.--In order to maximize 
Federal efforts aimed at serving the educational needs of children and 
youth of limited English proficiency, the Secretary shall coordinate 
and ensure close cooperation with other programs serving language-
minority and limited English proficient students that are administered 
by the Department and other agencies. The Secretary shall consult with 
the Secretary of Labor, the Secretary of Health and Human Services, the 
Secretary of Agriculture, the Attorney General and the heads of other 
relevant agencies to identify and eliminate barriers to appropriate 
coordination of programs that affect language-minority and limited 
English proficient students and their families. The Secretary shall 
provide for continuing consultation and collaboration, between the 
Office and relevant programs operated by the Department, including 
programs under this title and other programs under this Act, in 
planning, contracts, providing joint technical assistance, providing 
joint field monitoring activities and in other relevant activities to 
ensure effective program coordination to provide high quality education 
opportunities to all language-minority and limited English proficient 
students.
    ``(b) Data.--The Secretary shall, to the extent feasible, ensure 
that all data collected by the Department shall include the collection 
and reporting of data on limited English proficient students.
    ``(c) Publication of Proposals.--The Secretary shall publish and 
disseminate all requests for proposals for programs funded under part 
A.
    ``(d) Report.--The Director shall prepare and, not later than 
February 1 of every other year, shall submit to the Secretary and to 
the Committee on Health, Education, Labor, and Pensions of the Senate 
and to the Committee on Education and the Workforce of the House of 
Representatives a report on--
            ``(1) the activities carried out under this title and the 
        effectiveness of such activities in improving the education 
        provided to limited English proficient children and youth;
            ``(2) a critical synthesis of data reported by the States 
        pursuant to section 3124;
            ``(3) an estimate of the number of certified bilingual 
        education personnel in the field and an estimate of the number 
        of bilingual education teachers which will be needed for the 
        succeeding 5 fiscal years;
            ``(4) the major findings of research carried out under this 
        title; and
            ``(5) recommendations for further developing the capacity 
        of our Nation's schools to educate effectively limited English 
        proficient students.

                      ``PART F--GENERAL PROVISIONS

``SEC. 3501. DEFINITIONS.

    ``Except as otherwise provided, in this title:
            ``(1) Bilingual education program.--The term `bilingual 
        education program' means an educational program for limited 
        English proficient students that--
                    ``(A) makes instructional use of both English and a 
                student's native language;
                    ``(B) enables limited English proficient students 
                to achieve English proficiency and academic mastery of 
                subject matter content and higher order skills, 
                including critical thinking, so as to meet age-
                appropriate grade-promotion and graduation standards;
                    ``(C) may also develop the native language skills 
                of limited English proficient students, or ancestral 
                language skills of American Indians (within the meaning 
                of part A of title VII), Alaska Natives (as defined in 
                section 7306), Native Hawaiians (as defined in section 
                7207), and native residents of the outlying areas; and
                    ``(D) may include the participation of English 
                proficient students if such program is designed to 
                enable all enrolled students to become proficient in 
                English and a second language.
            ``(2) Children and youth.--The term `children and youth' 
        means individuals aged 3 through 21.
            ``(3) Community-based organization.--The term `community-
        based organization' means a private nonprofit organization of 
        demonstrated effectiveness or Indian tribe or tribally 
        sanctioned educational authority (as such terms are defined in 
        section 3004) that is representative of a community or 
        significant segments of a community and that provides 
        educational or related services to individuals in the 
        community. Such term includes Native Hawaiian organizations 
        including Native Hawaiian Educational Organizations as such 
        term is defined in section 4009 of the Augustus F. Hawkins-
        Robert T. Stafford Elementary and Secondary School Improvement 
        Amendments of 1988, as such section was in effect on the day 
        preceding the date of enactment of the Improving America's 
        Schools Act of 1994.
            ``(4) Community college.--The term `community college' 
        means an institution of higher education as defined in section 
        101 of the Higher Education Act of 1965 that provides not less 
        than a 2-year program that is acceptable for full credit toward 
        a bachelor's degree, including institutions receiving 
        assistance under the Tribally Controlled College or University 
        Assistance Act of 1978.
            ``(5) Director.--The term `Director' means the Director of 
        the Office of Bilingual Education and Minority Languages 
        Affairs established under section 209 of the Department of 
        Education Organization Act.
            ``(6) Family education program.--
                    ``(A) In general.--The term `family education 
                program' means a bilingual education or special 
                alternative instructional program that--
                            ``(i) is designed--
                                    ``(I) to help limited English 
                                proficient adults and out-of-school 
                                youths achieve proficiency in the 
                                English language; and
                                    ``(II) to provide instruction on 
                                how parents and family members can 
                                facilitate the educational achievement 
                                of their children;
                            ``(ii) when feasible, uses instructional 
                        programs such as the models developed under the 
                        Even Start Family Literacy Programs, which 
                        promote adult literacy and train parents to 
                        support the educational growth of their 
                        children, the Parents as Teachers Program, and 
                        the Home Instruction Program for Preschool 
                        Youngsters; and
                            ``(iii) gives preference to participation 
                        by parents and immediate family members of 
                        children attending school.
                    ``(B) Instruction for higher education and 
                employment.--Such term may include programs that 
                provide instruction to facilitate higher education and 
                employment outcomes.
            ``(7) Immigrant children and youth.--The term `immigrant 
        children and youth' means individuals who--
                    ``(A) are aged 3 through 21;
                    ``(B) were not born in any State; and
                    ``(C) have not been attending 1 or more schools in 
                any 1 or more States for more than 3 full academic 
                years.
            ``(8) Limited english proficiency and limited english 
        proficient.--The terms `limited English proficiency' and 
        `limited English proficient', when used with reference to an 
        individual, mean an individual--
                    ``(A)(i) who was not born in the United States, or 
                whose native language is a language other than English, 
                and who comes from an environment where a language 
                other than English is dominant;
                    ``(ii) who is a Native American or Alaska Native, 
                or 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) who is migratory, whose native language is 
                a language 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 society.
            ``(9) Native american and native american language.--The 
        terms `Native American' and `Native American language' shall 
        have the meanings given such terms in section 103 of the Native 
        American Languages Act.
            ``(10) Native hawaiian or native american pacific islander 
        native language educational organization.--The term `Native 
        Hawaiian or Native American Pacific Islander native language 
        educational organization' means a nonprofit organization with a 
        majority of its governing board and employees consisting of 
        fluent speakers of the traditional Native American languages 
        used in the organization's educational programs and with not 
        less than 5 years successful experience in providing 
        educational services in traditional Native American languages.
            ``(11) Native language.--The term `native language', when 
        used with reference to an individual of limited English 
        proficiency, means the language normally used by such 
        individual, or in the case of a child or youth, the language 
        normally used by the parents of the child or youth.
            ``(12) Office.--The term `Office' means the Office of 
        Bilingual Education and Minority Languages Affairs.
            ``(13) Other programs for persons of limited english 
        proficiency.--The term `other programs for persons of limited 
        English proficiency' means any other programs administered by 
        the Secretary that serve persons of limited English 
        proficiency.
            ``(14) Paraprofessional.--The term `paraprofessional' means 
        an individual who is employed in a preschool, elementary 
        school, or secondary school under the supervision of a 
        certified or licensed teacher, including individuals employed 
        in bilingual education, special education and migrant 
        education.
            ``(15) Special alternative instructional program.--The term 
        `special alternative instructional program' means an 
        educational program for limited English proficient students 
        that--
                    ``(A) utilizes specially designed English language 
                curricula and services but does not use the student's 
                native language for instructional purposes;
                    ``(B) enables limited English proficient students 
                to achieve English proficiency and academic mastery of 
                subject matter content and higher order skills, 
                including critical thinking, so as to meet age-
                appropriate grade-promotion and graduation standards; 
                and
                    ``(C) is particularly appropriate for schools where 
                the diversity of the limited English proficient 
                students' native languages and the small number of 
                students speaking each respective language makes 
                bilingual education impractical and where there is a 
                critical shortage of bilingual education teachers.

``SEC. 3502. REGULATIONS AND NOTIFICATION.

    ``(a) Regulation Rule.--In developing regulations under this title, 
the Secretary shall consult with State educational agencies and local 
educational agencies, organizations representing limited English 
proficient individuals, and organizations representing teachers and 
other personnel involved in bilingual education.
    ``(b) Parental Notification.--
            ``(1) In general.--Parents of children and youth 
        participating in programs assisted under part A shall be 
        informed of--
                    ``(A) a student's level of English proficiency, how 
                such level was assessed, the status of a student's 
                academic achievement, and the implications of a 
                student's educational strengths and needs for age and 
                grade appropriate academic attainment, promotion, and 
                graduation;
                    ``(B) what programs are available to meet the 
                student's educational strengths and needs and how the 
                programs differ in content and instructional goals, and 
                in the case of a student with a disability, how the 
                program meets the objectives of a student's 
                individualized education program; and
                    ``(C) the instructional goals of the bilingual 
                education or special alternative instructional program, 
                and how the program will specifically help the limited 
                English proficient student acquire English and meet 
                age-appropriate standards for grade promotion and 
                graduation, including--
                            ``(i) the benefits, nature, and past 
                        academic results of the bilingual educational 
                        program and of the instructional alternatives; 
                        and
                            ``(ii) the reasons for the selection of 
                        their child as being in need of bilingual 
                        education.
            ``(2) Option to decline.--
                    ``(A) In general.--Such parents shall also be 
                informed that such parents have the option of declining 
                enrollment of their children and youth in such programs 
                and shall be given an opportunity to so decline if such 
                parents so choose.
                    ``(B) Civil rights obligations.--A local 
                educational agency shall not be relieved of any of its 
                obligations under title VI of the Civil Rights Act of 
                1964 because parents choose not to enroll their 
                children in programs carried out under part A.
            ``(3) Receipt of information.--Such parents shall receive, 
        in a manner and form understandable to such parents, including, 
        if necessary and to the extent feasible, in the native language 
        of such parents, the information required by this subsection. 
        At a minimum, such parents shall receive--
                    ``(A) timely information about projects funded 
                under part A; and
                    ``(B) if the parents of participating children so 
                desire, notice of opportunities for regular meetings 
                for the purpose of formulating and responding to 
                recommendations from such parents.
            ``(4) Special rule.--Students shall not be admitted to or 
        excluded from any federally assisted education program merely 
        on the basis of a surname or language-minority status.''.

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

SEC. 401. AMENDMENT TO THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 
              1965.

    Title IV (20 U.S.C. 7101 et seq.) is amended to read as follows:

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

                         ``PART A--STATE GRANTS

``SEC. 4001. SHORT TITLE.

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

``SEC. 4002. FINDINGS.

    ``Congress makes the following findings:
            ``(1) Every student should attend a school in a drug- and 
        violence-free learning environment.
            ``(2) The widespread illegal use of alcohol and drugs among 
        the Nation's secondary school students, and increasingly by 
        students in elementary schools as well, constitutes a grave 
        threat to such students' physical and mental well-being, and 
        significantly impedes the learning process. For example, data 
        show that students who drink tend to receive lower grades and 
        are more likely to miss school because of illness than students 
        who do not drink.
            ``(3) Drug and violence prevention programs are essential 
        components of a comprehensive strategy to promote school 
        safety, youth development, positive school outcomes, and to 
        reduce the demand for and illegal use of alcohol, tobacco and 
        drugs throughout the Nation. Schools, local organizations, 
        parents, students, and communities throughout the Nation have a 
        special responsibility to work together to combat the 
        continuing epidemic of violence and illegal drug use and should 
        measure the success of their programs against clearly defined 
        goals and objectives.
            ``(4) Drug and violence prevention programs are most 
        effective when implemented within a scientifically based 
        research, drug and violence prevention framework of proven 
        effectiveness.
            ``(5) Research clearly shows that community contexts 
        contribute to substance abuse and violence.
            ``(6) Substance abuse and violence are intricately related 
        and must be dealt with in a holistic manner.
            ``(7) Research has documented that parental behavior and 
        environment directly influence a child's inclination to use 
        alcohol, tobacco or drugs.

``SEC. 4003. PURPOSE.

    ``The purpose of this part is to support programs that prevent 
violence in and around schools and prevent the illegal use of alcohol, 
tobacco, and drugs, involve parents, and are coordinated with related 
Federal, State, school, and community efforts and resources, through 
the provision of Federal assistance to--
            ``(1) States for grants to local educational agencies and 
        educational service agencies and consortia of such agencies to 
        establish, operate, and improve local programs of school drug 
        and violence prevention, early intervention, high quality 
        alternative education for chronically disruptive, drug-abusing, 
        and violent students that includes drug and violence prevention 
        programs, rehabilitation referral, and education in elementary 
        and secondary schools for the development and implementation of 
        policies that set clear and appropriate standards regarding the 
        illegal use of alcohol, tobacco and drugs, and for violent 
        behavior (including intermediate and junior high schools);
            ``(2) States for grants to, and contracts with, community-
        based organizations and public and private enties for programs 
        of drug and violence prevention including community 
        mobilization, early intervention, rehabilitation referral, and 
        education;
            ``(3) States for development, training, technical 
        assistance, and coordination activities; and
            ``(4) public and private entities to provide technical 
        assistance, conduct training, demonstrations, and evaluation, 
        and to provide supplementary services and community 
        mobilization activities for the prevention of drug use and 
        violence among students and youth.

``SEC. 4004. FUNDING.

    ``There are authorized to be appropriated--
            ``(1) $700,000,000 for fiscal year 2002, and such sums as 
        may be necessary for each of the 6 succeeding fiscal years, for 
        State grants under subpart 1;
            ``(2) $150,000,000 for fiscal year 2002, and such sums as 
        may be necessary for each of the 6 succeeding fiscal years, for 
        national programs under subpart 2;
            ``(3) $75,000,000 for fiscal year 2002, and such sums as 
        may be necessary for each of the 6 succeeding fiscal years, for 
        the National Coordinator Initiative under section 4122;
            ``(4) $5,000,000 for each of fiscal years 2002 through 2004 
        to carry out section 4125; and
            ``(5) $25,000,000 for fiscal year 2002, and such sums as 
        may be necessary for each of the 6 succeeding fiscal years to 
        carry out section 4126.

  ``Subpart 1--STATE GRANTS FOR DRUG AND VIOLENCE PREVENTION PROGRAMS

``SEC. 4111. RESERVATIONS AND ALLOTMENTS.

    ``(a) Reservations.--From the amount made available under section 
4004(1) to carry out this subpart for each fiscal year, the Secretary--
            ``(1) shall reserve 1 percent of such amount for grants 
        under this subpart to Guam, American Samoa, the Virgin Islands, 
        and the Commonwealth of the Northern Mariana Islands, to be 
        allotted in accordance with the Secretary's determination of 
        their respective needs;
            ``(2) shall reserve 1 percent of such amount for the 
        Secretary of the Interior to carry out programs under this part 
        for Indian youth;
            ``(3) may reserve not more than $2,000,000 for the national 
        impact evaluation required by section 4117(a); and
            ``(4) shall reserve 0.2 percent of such amount for programs 
        for Native Hawaiians under section 4118.
    ``(b) State Allotments.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall, for each fiscal year, allocate among the 
        States--
                    ``(A) one-half of the remainder not reserved under 
                subsection (a) according to the ratio between the 
                school-aged population of each State and the school-
                aged population of all the States; and
                    ``(B) one-half of such remainder according to the 
                ratio between the amount each State received under 
                section 1124A for the preceding year and the sum of 
                such amounts received by all the States.
            ``(2) Minimum.--For any fiscal year, no State shall be 
        allotted under this subsection an amount that is less than one-
        half of 1 percent of the total amount allotted to all the 
        States under this subsection.
            ``(3) Reallotment.--The Secretary may reallot any amount of 
        any allotment to a State if the Secretary determines that the 
        State will be unable to use such amount within 2 years of such 
        allotment. Such reallotments shall be made on the same basis as 
        allotments are made under paragraph (1).
            ``(4) Definitions.--In this subsection:
                    ``(A) State.--The term `State' means each of the 50 
                States, the District of Columbia, and the Commonwealth 
                of Puerto Rico.
                    ``(B) Local educational agency.--The term `local 
                educational agency' includes educational service 
                agencies and consortia of such agencies.
    ``(c) Limitation.--Amounts appropriated under section 4004(2) for a 
fiscal year may not be increased above the amounts appropriated under 
such section for the previous fiscal year unless the amounts 
appropriated under section 4004(1) for the fiscal year involved are at 
least 10 percent greater that the amounts appropriated under such 
section 4004(1) for the previous fiscal year.

``SEC. 4112. STATE APPLICATIONS.

    ``(a) In General.--In order to receive an allotment under section 
4111 for any fiscal year, a State shall submit to the Secretary, at 
such time as the Secretary may require, an application that--
            ``(1) contains a comprehensive plan for the use of funds by 
        the State educational agency and the chief executive officer to 
        provide safe, orderly, and drug-free schools and communities;
            ``(2) contains the results of the State's needs assessment 
        for drug and violence prevention programs, which shall be based 
        on the results of on-going State evaluation activities, 
        including data on the incidence and prevalence, age of onset, 
        perception of health risk, and perception of social disapproval 
        of drug use and violence by youth in schools and communities 
        and the prevalence of risk or protective factors, buffers or 
        assets or other scientifically based research variables in the 
        school and community;
            ``(3) contains assurances that the sections of the 
        application concerning the funds provided to the chief 
        executive officer and the State educational agency were 
        developed together, with each such officer or State 
        representative, in consultation and coordination with 
        appropriate State officials and others, including the chief 
        State school officer, the chief executive officer, the head of 
        the State alcohol and drug abuse agency, the heads of the State 
        health and mental health agencies, the head of the State 
        criminal justice planning agency, the head of the State child 
        welfare agency, the head of the State board of education, or 
        their designees, and representatives of parents, students, and 
        community-based organizations;
            ``(4) contains an assurance that the State will cooperate 
        with, and assist, the Secretary in conducting a national impact 
        evaluation of programs required by section 4117(a);
            ``(5) contains assurances that the State education agency 
        and the Governor will develop their respective applications in 
        consultation with an advisory council that includes, to the 
        extent practicable, representatives from school districts, 
        businesses, parents, youth, teachers, administrators, pupil 
        services personnel, private schools, appropriate State 
        agencies, community-based organizations, the medical 
        profession, law enforcement, the faith-based community and 
        other groups with interest and expertise in alcohol, tobacco, 
        drug, and violence prevention;
            ``(6) contains assurances that the State education agency 
        and the Governor involve the representatives described in 
        paragraph (5), on an ongoing basis, to review program 
        evaluations and other relevant material and make 
        recommendations to the State education agency and the Governor 
        on how to improve their respective alcohol, tobacco, drug, and 
        violence prevention programs;
            ``(7) contains a list of the State's results-based 
        performance measures for drug and violence prevention, that 
        shall--
                    ``(A) be focused on student behavior and attitudes 
                and be derived from the needs assessment;
                    ``(B) include targets and due dates for the 
                attainment of such performance measures; and
                    ``(C) include a description of the procedures that 
                the State will use to inform local educational agencies 
                of such performance measures for assessing and publicly 
                reporting progress toward meeting such measures or 
                revising them as needed; and
            ``(8) includes any other information the Secretary may 
        require.
    ``(b) State Educational Agency Funds.--A State's application under 
this section shall also contain a comprehensive plan for the use of 
funds under section 4113(a) by the State educational agency that 
includes--
            ``(1) a plan for monitoring the implementation of, and 
        providing technical assistance regarding, the drug and violence 
        prevention programs conducted by local educational agencies in 
        accordance with section 4116;
            ``(2) a description of how the State educational agency 
        will use funds under section 4113(b), including how the agency 
        will receive input from parents regarding the use of such 
        funds;
            ``(3) a description of how the State educational agency 
        will coordinate such agency's activities under this subpart 
        with the chief executive officer's drug and violence prevention 
        programs under this subpart and with the prevention efforts of 
        other State agencies; and
            ``(4) a description of the procedures the State educational 
        agency will use to review applications from and allocate 
        funding to local educational agencies under section 4115 and 
        how such review will receive input from parents.
    ``(c) Governor's Funds.--A State's application under this section 
shall also contain a comprehensive plan for the use of funds under 
section 4114(a) by the chief executive officer that includes, with 
respect to each activity to be carried out by the State--
            ``(1) a description of how the chief executive officer will 
        coordinate such officer's activities under this part with the 
        State educational agency and other State agencies and 
        organizations involved with drug and violence prevention 
        efforts;
            ``(2) a description of how funds reserved under section 
        4114(a) will be used so as not to duplicate the efforts of the 
        State educational agency and local educational agencies with 
        regard to the provision of school-based prevention efforts and 
        services and how those funds will be used to serve populations 
        not normally served by the State educational agency, such as 
        school dropouts, suspended and expelled students, and youth in 
        detention centers;
            ``(3) a description of how the chief executive officer will 
        award funds under section 4114(a) and a plan for monitoring the 
        performance of, and providing technical assistance to, 
        recipients of such funds;
            ``(4) a description of the special outreach activities that 
        will be carried out to maximize the participation of community-
        based nonprofit organizations of demonstrated effectiveness 
        which provide services in low-income communities, such as 
        mentoring programs;
            ``(5) a description of how funds will be used to support 
        community-wide comprehensive drug and violence prevention 
        planning and community mobilization activities; and
            ``(6) a specific description of how input from parents will 
        be sought regarding the use of funds under section 4114(a).
    ``(d) Peer Review.--The Secretary shall use a peer review process 
in reviewing State applications under this section.
    ``(e) Interim Application.--Notwithstanding any other provisions of 
this section, a State may submit for fiscal year 2002 a 1-year interim 
application and plan for the use of funds under this subpart that are 
consistent with the requirements of this section and contain such 
information as the Secretary may specify in regulations. The purpose of 
such interim application and plan shall be to afford the State the 
opportunity to fully develop and review such State's application and 
comprehensive plan otherwise required by this section. A State may not 
receive a grant under this subpart for a fiscal year subsequent to 
fiscal year 2002 unless the Secretary has approved such State's 
application and comprehensive plan in accordance with this subpart.

``SEC. 4113. STATE AND LOCAL EDUCATIONAL AGENCY PROGRAMS.

    ``(a) Use of Funds.--An amount equal to 80 percent of the total 
amount allocated to a State under section 4111 for each fiscal year 
shall be used by the State educational agency and its local educational 
agencies for drug and violence prevention activities in accordance with 
this section.
    ``(b) State Level Programs.--
            ``(1) In general.--A State educational agency shall use not 
        more than 5 percent of the amount available under subsection 
        (a) for activities such as--
                    ``(A) voluntary training and technical assistance 
                concerning drug and violence prevention for local 
                educational agencies and educational service agencies, 
                including teachers, administrators, coaches and 
                athletic directors, other staff, parents, students, 
                community leaders, health service providers, mentoring 
                providers, local law enforcement officials, and 
                judicial officials;
                    ``(B) the development, identification, 
                dissemination, and evaluation of the most readily 
                available, accurate, and up-to-date drug and violence 
                prevention curriculum materials (including videotapes, 
                software, and other technology-based learning 
                resources), for consideration by local educational 
                agencies;
                    ``(C) making available to local educational 
                agencies cost effective scientifically based research 
                programs for youth violence and drug abuse prevention;
                    ``(D) demonstration projects in drug and violence 
                prevention, including service-learning projects and 
                mentoring programs;
                    ``(E) training, technical assistance, and 
                demonstration projects to address violence associated 
                with prejudice and intolerance;
                    ``(F) training, technical assistance and 
                demonstration projects to address the impact of family 
                violence on school violence and substance abuse;
                    ``(G) financial assistance to enhance resources 
                available for drug and violence prevention in areas 
                serving large numbers of economically disadvantaged 
                children or sparsely populated areas, or to meet other 
                special needs consistent with the purposes of this 
                subpart;
                    ``(H) the evaluation of activities carried out 
                within the State under this part; and
                    ``(I) alternative programs for the education and 
                discipline of chronically violent and disruptive 
                students as it relates to drug and violence prevention.
            ``(2) Special rule.--A State educational agency may carry 
        out activities under this subsection directly, or through 
        grants or contracts.
    ``(c) State Administration.--
            ``(1) In general.--A State educational agency may use not 
        more than 5 percent of the amount reserved under subsection (a) 
        for the administrative costs of carrying out its 
        responsibilities under this part.
            ``(2) Uniform management information and reporting 
        system.--In carrying out its responsibilities under this part, 
        a State shall implement a uniform management information and 
        reporting system that includes information on the types of 
        curricula, programs and services provided by the State, 
        Governor, local education agencies, and other recipients of 
        funds under this title.
    ``(d) Local Educational Agency Programs.--
            ``(1) In general.--A State educational agency shall 
        distribute not less than 91 percent of the amount made 
        available under subsection (a) for each fiscal year to local 
        educational agencies in accordance with this subsection.
            ``(2) Distribution.--A State educational agency shall 
        distribute amounts under paragraph (1) in accordance with any 
        one of the following subparagraphs:
                    ``(A) Enrollment and combination approach.--Of the 
                amount distributed under paragraph (1), a State 
                educational agency shall distribute--
                            ``(i) at least 70 percent of such amount to 
                        local educational agencies, based on the 
                        relative enrollments in public and private 
                        nonprofit elementary and secondary schools 
                        within the boundaries of such agencies; and
                            ``(ii) not to exceed 30 percent of any 
                        amounts remaining after amounts are distributed 
                        under clause (i)--
                                    ``(I) to each local educational 
                                agency in an amount determined 
                                appropriate by the State educational 
                                agency; or
                                    ``(II) to local educational 
                                agencies that the State education 
                                agency determines have the greatest 
                                need for additional funds to carry out 
                                drug and violence prevention programs 
                                authorized by this subpart.
                    ``(B) Competitive and need approach.--Of the amount 
                distributed under paragraph (1), a State educational 
                agency shall distribute--
                            ``(i) not to exceed 70 percent of such 
                        amount to local educational agencies that the 
                        State agency determines, through a competitive 
                        process, have the greatest need for funds to 
                        carry out drug and violence prevention programs 
                        based on criteria established by the State 
                        agency and authorized under this subpart; and
                            ``(ii) at least 30 percent of any amounts 
                        remaining after amounts are distributed under 
                        clause (i) to local educational agencies that 
                        the State agency determines have a need for 
                        additional funds to carry out the program 
                        authorized under this subpart.
            ``(3) Consideration of objective data.--For purposes of 
        paragraph (2), in determining which local educational agencies 
        have the greatest need for funds, the State educational agency 
        shall consider objective data which may include--
                    ``(A) high or increasing rates of alcohol or drug 
                use among youth;
                    ``(B) high or increasing rates of victimization of 
                youth by violence and crime;
                    ``(C) high or increasing rates of arrests and 
                convictions of youth for violent or drug- or alcohol-
                related crime;
                    ``(D) the extent of illegal gang activity;
                    ``(E) high or increasing incidence of violence 
                associated with prejudice and intolerance;
                    ``(F) high or increasing rates of referrals of 
                youths to drug and alcohol abuse treatment and 
                rehabilitation programs;
                    ``(G) high or increasing rates of referrals of 
                youths to juvenile court;
                    ``(H) high or increasing rates of expulsions and 
                suspensions of students from schools;
                    ``(I) high or increasing rates of reported cases of 
                child abuse and domestic violence; and
                    ``(J) high or increasing rates of drug related 
                emergencies or deaths.
    ``(e) Reallocation of Funds.--If a local educational agency chooses 
not to apply to receive the amount allocated to such agency under 
subsection (d), or if such agency's application under section 4115 is 
disapproved by the State educational agency, the State educational 
agency shall reallocate such amount to one or more of its other local 
educational agencies.
    ``(f) Return of Funds to State Educational Agency; Reallocation.--
            ``(1) Return.--Except as provided in paragraph (2), upon 
        the expiration of the 1-year period beginning on the date that 
        a local educational agency or educational service agency under 
        this title receives its allocation under this title--
                    ``(A) such agency shall return to the State 
                educational agency any funds from such allocation that 
                remain unobligated; and
                    ``(B) the State educational agency shall reallocate 
                any such amount to local educational agencies or 
                educational service agencies that have plans for using 
                such amount for programs or activities on a timely 
                basis.
            ``(2) Reallocation.--In any fiscal year, a local 
        educational agency, may retain for obligation in the succeeding 
        fiscal year--
                    ``(A) an amount equal to not more than 25 percent 
                of the allocation it receives under this title for such 
                fiscal year; or
                    ``(B) upon a demonstration of good cause by such 
                agency or consortium, a greater amount approved by the 
                State educational agency.

``SEC. 4114. GOVERNOR'S PROGRAMS.

    ``(a) Use of Funds.--
            ``(1) In general.--An amount equal to 20 percent of the 
        total amount allocated to a State under section 4111(b)(1) for 
        each fiscal year shall be used by the chief executive officer 
        of such State for drug and violence prevention programs and 
        activities in accordance with this section.
            ``(2) Administrative costs.--A chief executive officer may 
        use not more than 5 percent of the 20 percent described in 
        paragraph (1) for the administrative costs incurred in carrying 
        out the duties of such officer under this section. The chief 
        executive officer of a State may use amounts under this 
        paragraph to award grants to State, county, or local law 
        enforcement agencies, including district attorneys, in 
        consultation with local education agencies or community-based 
        agencies, for the purposes of carrying out drug abuse and 
        violence prevention activities.
    ``(b) State plan.--Amounts shall be used under this section in 
accordance with a State plan submitted by the chief executive office of 
the State. Such State plan shall contain--
            ``(1) an objective analysis of the current use (and 
        consequences of such use) of alcohol, tobacco, and controlled, 
        illegal, addictive or harmful substances as well as the 
        violence, safety, and discipline problems among students who 
        attend schools in the State (including private school students 
        who participate in the States's drug and violence prevention 
        programs) that is based on ongoing local assessment or 
        evaluation activities including administrative incident 
        reports, anonymous surveys of students or teachers, and focus 
        groups;
            ``(2) an analysis, based on data reasonably available at 
        the time, of the prevalence of risk factors, including high or 
        increasing rates of reported cases of child abuse and domestic 
        violence, or protective factors, buffers or assets or other 
        scientifically based research variables in schools and 
        communities in the State;
            ``(3) a description of the scientifically based research 
        strategies and programs, which shall be used to prevent or 
        reduce drug use, violence, or disruptive behavior, which shall 
        include--
                    ``(A) a specification of the objectively measurable 
                goals, objectives, and activities for the program;
                    ``(B) a specification for how risk factors, if any, 
                which have been identified will be targeted through 
                scientifically based research programs; and
                    ``(C) a specification for how protective factors, 
                buffers, or assets, if any, will be targeted through 
                scientifically based research programs;
            ``(4) a specification for the method or methods by which 
        measurements of program goals will be achieved; and
            ``(5) a specification for how the evaluation of the 
        effectiveness of the prevention program will be assessed and 
        how the results will be used to refine, improve, and strengthen 
        the program.
    ``(c) Programs Authorized.--
            ``(1) In general.--A chief executive officer shall use 
        funds made available under subsection (a)(1) directly for 
        grants to or contracts with parent groups, schools, community 
        action and job training agencies, community-based 
        organizations, community anti-drug coalitions, law enforcement 
        education partnerships, and public and private entities and 
        consortia thereof. In making such grants and contracts, a chief 
        executive officer shall give priority to programs and 
        activities described in subsection (d) for--
                    ``(A) children and youth who are not normally 
                served by State or local educational agencies; or
                    ``(B) populations that need special services or 
                additional resources (such as preschoolers, youth in 
                juvenile detention facilities, runaway or homeless 
                children and youth, pregnant and parenting teenagers, 
                and school dropouts).
            ``(2) Peer review.--Grants or contracts awarded under this 
        subsection shall be subject to a peer review process.
    ``(d) Authorized Activities.--Grants and contracts under subsection 
(c) shall be used to carry out the comprehensive State plan as required 
under section 4112(a)(1) through programs and activities such as--
            ``(1) disseminating information about drug and violence 
        prevention;
            ``(2) the voluntary training of parents, law enforcement 
        officials, judicial officials, social service providers, health 
        service providers and community leaders about drug and violence 
        prevention, health education (as it relates to drug and 
        violence prevention), domestic violence and child abuse 
        education (as it relates to drug and violence prevention), 
        early intervention, pupil services, or rehabilitation referral;
            ``(3) developing and implementing comprehensive, community-
        based drug and violence prevention programs that link community 
        resources with schools and integrate services involving 
        education, vocational and job skills training and placement, 
        law enforcement, health, mental health, family violence 
        prevention, community service, service-learning, mentoring, and 
        other appropriate services;
            ``(4) planning and implementing drug and violence 
        prevention activities that coordinate the efforts of State 
        agencies with efforts of the State educational agency and its 
        local educational agencies;
            ``(5) activities to protect students traveling to and from 
        school;
            ``(6) before-and-after school recreational, instructional, 
        cultural, and artistic programs that encourage drug- and 
        violence-free lifestyles;
            ``(7) activities that promote the awareness of and 
        sensitivity to alternatives to violence through courses of 
        study that include related issues of intolerance and hatred in 
        history;
            ``(8) developing and implementing activities to prevent and 
        reduce violence associated with prejudice and intolerance;
            ``(9) developing and implementing activities to prevent and 
        reduce dating violence;
            ``(10) developing and implementing strategies to prevent 
        illegal gang activity;
            ``(11) coordinating and conducting school and community-
        wide violence and safety and drug abuse assessments and 
        surveys;
            ``(12) service-learning projects that encourage drug- and 
        violence-free lifestyles;
            ``(13) evaluating programs and activities assisted under 
        this section;
            ``(14) developing and implementing community mobilization 
        activities to undertake environmental change strategies related 
        to substance abuse and violence;
            ``(15) developing, establishing, or improving alternative 
        educational opportunities for chronically disruptive, drug-
        abusing, and violent students that are designed to promote drug 
        and violence prevention, reduce disruptive behavior, to reduce 
        the need for repeat suspensions and expulsions, to enable 
        students to meet challenging State academic standards, and to 
        enable students to return to the regular classroom as soon as 
        possible;
            ``(16) training teachers, pupil services personnel, and 
        other appropriate school staff on effective strategies for 
        dealing with chronically disruptive, drug-abusing, and violent 
        students;
            ``(17) partnerships between local law enforcement agencies, 
        including district attorneys, and local education agencies or 
        community-based agencies; and
            ``(18) alternative programs for the education and 
        discipline of chronically violent and disruptive students as it 
        relates to drug and violence prevention.

``SEC. 4115. LOCAL APPLICATIONS.

    ``(a) Application Required.--
            ``(1) In general.--In order to be eligible to receive a 
        distribution under section 4113(d) for any fiscal year, a local 
        educational agency shall submit, at such time as the State 
        educational agency requires, an application to the State 
        educational agency for approval. Such an application shall be 
        amended, as necessary, to reflect changes in the local 
        educational agency's program.
            ``(2) Development.--
                    ``(A) Consultation.--A local educational agency 
                shall develop its application under subsection (a)(1) 
                in consultation with a local or substate regional 
                advisory council that includes, to the extent possible, 
                representatives of local government, business, parents, 
                students, teachers, pupil services personnel, 
                appropriate State agencies, private schools, the 
                medical profession, law enforcement, community-based 
                organizations, and other groups with interest and 
                expertise in drug and violence prevention.
                    ``(B) Duties of advisory council.--In addition to 
                assisting the local educational agency to develop an 
                application under this section, the advisory council 
                established or designated under subparagraph (A) shall, 
                on an ongoing basis--
                            ``(i) disseminate information about 
                        scientifically based research drug and violence 
                        prevention programs, projects, and activities 
                        conducted within the boundaries of the local 
                        educational agency;
                            ``(ii) advise the local educational agency 
                        regarding how best to coordinate such agency's 
                        activities under this subpart with other 
                        related programs, projects, and activities;
                            ``(iii) ensure that a mechanism is in place 
                        to enable local educational agencies to have 
                        access to up-to-date information concerning the 
                        agencies that administer related programs, 
                        projects, and activities and any changes in the 
                        law that alter the duties of the local 
                        educational agencies with respect to activities 
                        conducted under this subpart; and
                            ``(iv) review program evaluations and other 
                        relevant material and make recommendations on 
                        an active and ongoing basis to the local 
                        educational agency on how to improve such 
                        agency's drug and violence prevention programs.
    ``(b) Contents of Applications.--An application under this section 
shall contain--
            ``(1) an objective analysis of the current use (and 
        consequences of such use) of alcohol, tobacco, and controlled, 
        illegal, addictive or harmful substances as well as the 
        violence, safety, and discipline problems among students who 
        attend the schools of the applicant (including private school 
        students who participate in the applicant's drug and violence 
        prevention program) that is based on ongoing local assessment 
        or evaluation activities;
            ``(2) an analysis, based on data reasonably available at 
        the time, of the prevalence of risk factors, including high or 
        increasing rates of reported cases of child abuse and domestic 
        violence, or protective factors, buffers or assets or other 
        scientifically based research variables in the school and 
        community;
            ``(3) a description of the scientifically based research 
        strategies and programs, which shall be used to prevent or 
        reduce drug use, violence, or disruptive behavior, which shall 
        include--
                    ``(A) a specification of the objectively measurable 
                goals, objectives, and activities for the program, 
                which shall include--
                            ``(i) reductions in the use of alcohol, 
                        tobacco, and illicit drugs and violence by 
                        youth;
                            ``(ii) specific reductions in the 
                        prevalence of identified risk factors;
                            ``(iii) specific increases in the 
                        prevalence of protective factors, buffers, or 
                        assets if any have been identified; or
                            ``(iv) other scientifically based research 
                        goals, objectives, and activities that are 
                        identified as part of the application that are 
                        not otherwise covered under clauses (i) through 
                        (iii);
                    ``(B) a specification for how risk factors, if any, 
                which have been identified will be targeted through 
                scientifically based research programs; and
                    ``(C) a specification for how protective factors, 
                buffers, or assets, if any, will be targeted through 
                scientifically based research programs;
            ``(4) a specification for the method or methods by which 
        measurements of program goals will be achieved;
            ``(5) a specification for how the evaluation of the 
        effectiveness of the prevention program will be assessed and 
        how the results will be used to refine, improve, and strengthen 
        the program;
            ``(6) an assurance that the applicant has, or the schools 
        to be served have, a plan for keeping schools safe and drug-
        free that includes--
                    ``(A) appropriate and effective discipline policies 
                that prohibit disorderly conduct, the possession of 
                firearms and other weapons, and the illegal use, 
                possession, distribution, and sale of tobacco, alcohol, 
                and other drugs by students;
                    ``(B) security procedures at school and while 
                students are on the way to and from school;
                    ``(C) prevention activities that are designed to 
                create and maintain safe, disciplined, and drug-free 
                environments; and
                    ``(D) a crisis management plan for responding to 
                violent or traumatic incidents on school grounds; and
            ``(7) such other information and assurances as the State 
        educational agency may reasonably require.
    ``(c) Review of Application.--
            ``(1) In general.--In reviewing local applications under 
        this section, a State educational agency shall use a peer 
        review process or other methods of assuring the quality of such 
        applications.
            ``(2) Considerations.--
                    ``(A) In general.--In determining whether to 
                approve the application of a local educational agency 
                under this section, a State educational agency shall 
                consider the quality of the local educational agency's 
                comprehensive plan under subsection (b)(6) and the 
                extent to which the proposed plan provides a thorough 
                assessment of the substance abuse and violence problem, 
                uses objective data and the knowledge of a wide range 
                of community members, develops measurable goals and 
                objectives, and implements scientifically based 
                research programs that have been shown to be effective 
                and meet identified needs.
                    ``(B) Disapproval.--A State educational agency may 
                disapprove a local educational agency application under 
                this section in whole or in part and may withhold, 
                limit, or place restrictions on the use of funds 
                allotted to such a local educational agency in a manner 
                the State educational agency determines will best 
                promote the purposes of this part, except that a local 
                educational agency shall be afforded an opportunity to 
                appeal any such disapproval.

``SEC. 4116. LOCAL DRUG AND VIOLENCE PREVENTION PROGRAMS.

    ``(a) Program Requirements.--A local educational agency shall use 
funds received under this subpart to adopt and carry out a 
comprehensive drug and violence prevention program which shall--
            ``(1) be designed, for all students and school employees, 
        to--
                    ``(A) prevent the use, possession, and distribution 
                of tobacco, alcohol, and illegal drugs by students and 
                to prevent the illegal use, possession, and 
                distribution of such substances by school employees;
                    ``(B) prevent violence and promote school safety; 
                and
                    ``(C) create a disciplined environment conducive to 
                learning;
            ``(2) include activities to promote the involvement of 
        parents and coordination with community groups and agencies, 
        including the distribution of information about the local 
        educational agency's needs, goals, and programs under this 
        subpart;
            ``(3) implement activities which shall include--
                    ``(A) a thorough assessment of the substance abuse 
                and violence problems, using objective data and the 
                knowledge of a wide range of community members;
                    ``(B) the development of measurable goals and 
                objectives;
                    ``(C) the implementation of scientifically based 
                research programs that have been shown to be effective 
                and meet identified goals; and
                    ``(D) an evaluation of program activities; and
            ``(4) implement prevention programming activities within 
        the context of a scientifically based research prevention 
        framework.
    ``(b) Use of Funds.--A comprehensive, age-appropriate, 
developmentally-, and scientifically based research drug and violence 
prevention program carried out under this subpart may include--
            ``(1) drug or violence prevention and education programs 
        for all students, from the preschool level through grade 12, 
        that address the legal, social, personal and health 
        consequences of the use of illegal drugs or violence, promote a 
        sense of individual responsibility, and provide information 
        about effective techniques for resisting peer pressure to use 
        illegal drugs;
            ``(2) programs of drug or violence prevention, health 
        education (as it relates to drug and violence prevention), 
        domestic violence and child abuse education (as it relates to 
        drug and violence prevention), early intervention, pupil 
        services, mentoring, or rehabilitation referral, which 
        emphasize students' sense of individual responsibility and 
        which may include--
                    ``(A) the dissemination of information about drug 
                or violence prevention;
                    ``(B) the professional development or voluntary 
                training of school personnel, parents, students, law 
                enforcement officials, judicial officials, health 
                service providers and community leaders in prevention, 
                education, early intervention, pupil services, 
                mentoring 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, and violence such as--
                            ``(i) family counseling; and
                            ``(ii) activities, such as community 
                        service and service-learning projects, that are 
                        designed to increase students' sense of 
                        community;
            ``(3) age-appropriate, developmentally based violence 
        prevention and education programs for all students, from the 
        preschool level through grade 12, that address the legal, 
        health, personal, and social consequences of violent and 
        disruptive behavior, including sexual harassment and abuse, 
        domestic violence and child abuse, and victimization associated 
        with prejudice and intolerance, and that include activities 
        designed to help students develop a sense of individual 
        responsibility and respect for the rights of others, and to 
        resolve conflicts without violence, or otherwise decrease the 
        prevalence of risk factors or increase the prevalence of 
        protective factors, buffers, or assets in the community;
            ``(4) violence prevention programs for school-aged youth, 
        which emphasize students' sense of individual responsibility 
        and may include--
                    ``(A) the dissemination of information about school 
                safety and discipline;
                    ``(B) the professional development or voluntary 
                training of school personnel, parents, students, law 
                enforcement officials, judicial officials, and 
                community leaders in designing and implementing 
                strategies to prevent school violence;
                    ``(C) the implementation of strategies, such as 
                conflict resolution and peer mediation, student 
                outreach efforts against violence, anti-crime youth 
                councils (which work with school and community-based 
                organizations to discuss and develop crime prevention 
                strategies), and the use of mentoring programs, to 
                combat school violence and other forms of disruptive 
                behavior, such as sexual harassment and abuse; and
                    ``(D) the development and implementation of 
                character education programs, as a component of a 
                comprehensive drug or violence prevention program, that 
                are tailored by communities, parents and schools;
                    ``(E) alternative programs for the education and 
                discipline of chronically violent and disruptive 
                students as it relates to drug and violence prevention; 
                and
                    ``(F) comprehensive, community-wide strategies to 
                prevent or reduce illegal gang activities and drug use;
            ``(5) supporting `safe zones of passage' for students 
        between home and school through such measures as Drug- and 
        Weapon-Free School Zones, enhanced law enforcement, and 
        neighborhood patrols;
            ``(6) administrative approaches to promote school safety, 
        including professional development for principals and 
        administrators to promote effectiveness and innovation, 
        implementing a school disciplinary code, and effective 
        communication of the school disciplinary code to both students 
        and parents at the beginning of the school year;
            ``(7) the acquisition or hiring of school security 
        equipment, technologies, personnel, or services such as--
                    ``(A) metal detectors;
                    ``(B) electronic locks;
                    ``(C) surveillance cameras; and
                    ``(D) other drug and violence prevention-related 
                equipment and technologies;
            ``(8) 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;
            ``(9) the promotion of before-and-after school 
        recreational, instructional, cultural, and artistic programs in 
        supervised community settings;
            ``(10) other scientifically based research prevention 
        programming that is--
                    ``(A) effective in reducing the prevalence of 
                alcohol, tobacco or drug use, and violence in youth;
                    ``(B) effective in reducing the prevalence of risk 
                factors predictive of increased alcohol, tobacco or 
                drug use, and violence; or
                    ``(C) effective in increasing the prevalence of 
                protective factors, buffers, and assets predictive of 
                decreased alcohol, tobacco or drug use and violence 
                among youth;
            ``(11) the collection of objective data used to assess 
        program needs, program implementation, or program success in 
        achieving program goals and objectives;
            ``(12) community involvement activities including community 
        mobilization;
            ``(13) voluntary parental involvement and training;
            ``(14) the evaluation of any of the activities authorized 
        under this subsection;
            ``(15) the provision of mental health counseling (by 
        qualified counselors) to students for drug or violence related 
        problems;
            ``(16) the provision of educational supports, services, and 
        programs, including drug and violence prevention and 
        intervention programs, using trained and qualified staff, for 
        students who have been suspended or expelled so such students 
        make continuing progress toward meeting the State's challenging 
        academic standards and to enable students to return to the 
        regular classroom as soon as possible;
            ``(17) training teachers, pupil services personnel, and 
        other appropriate school staff on effective strategies for 
        dealing with disruptive students;
            ``(18) consistent with the fourth amendment to the 
        Constitution of the United States, the testing of a student for 
        illegal drug use or inspecting a student's locker for guns, 
        explosives, other weapons, or illegal drugs, including at the 
        request of or with the consent of a parent or legal guardian of 
        the student, if the local educational agency elects to so test 
        or inspect; and
            ``(19) the conduct of a nationwide background check of each 
        local educational agency employee (regardless of when hired) 
        and prospective employees for the purpose of determining 
        whether the employee or prospective employee has been convicted 
        of a crime that bears upon the employee's or prospective 
        employee's fitness--
                    ``(A) to have responsibility for the safety or 
                well-being of children;
                    ``(B) to serve in the particular capacity in which 
                the employee or prospective employee is or will be 
                employed; or
                    ``(C) to otherwise be employed at all by the local 
                educational agency.
    ``(c) Limitations.--
            ``(1) In general.--Not more than 20 percent of the funds 
        made available to a local educational agency under this subpart 
        may be used to carry out the activities described in paragraphs 
        (5) and (6) of subsection (b).
            ``(2) Special rule.--A local educational agency shall only 
        use funds received under this subpart for activities described 
        in paragraphs (5) and (6) of subsection (b) if funding for such 
        activities is not received from other Federal agencies.
    ``(d) Rule of Construction.--Nothing in this section shall be 
construed to prohibit the use of funds under this part by any local 
educational agency or school for the establishment or implementation of 
a school uniform policy so long as such policy is part of the overall 
comprehensive drug and violence prevention plan of the State involved 
and is supported by the State's needs assessment and other 
scientifically based research information.

``SEC. 4117. EVALUATION AND REPORTING.

    ``(a) Impact Evaluation.--
            ``(1) Biennial evaluation.--The Secretary, in consultation 
        with the National Advisory Committee, shall conduct an 
        independent biennial evaluation of the impact of programs 
        assisted under this subpart and of other recent and new 
        initiatives to combat violence in schools. The evaluation shall 
        report on--
                    ``(A) whether funded community and local education 
                agency programs--
                            ``(i) provided a thorough assessment of the 
                        substance abuse and violence problem;
                            ``(ii) used objective data and the 
                        knowledge of a wide range of community members;
                            ``(iii) developed measurable goals and 
                        objectives;
                            ``(iv) implemented scientifically based 
                        research programs that have been shown to be 
                        effective and meet identified needs; and
                            ``(v) conducted periodic program 
                        evaluations to assess progress made towards 
                        achieving program goals and objectives and 
                        whether they used evaluations to improve 
                        program goals, objectives and activities;
                    ``(B) whether funded community and local education 
                agency programs have been designed and implemented in a 
                manner that specifically targets, if relevant to the 
                program--
                            ``(i) scientifically based research 
                        variables that are predictive of drug use or 
                        violence;
                            ``(ii) risk factors that are predictive of 
                        an increased likelihood that young people will 
                        use drugs, alcohol or tobacco or engage in 
                        violence or drop out of school; or
                            ``(iii) protective factors, buffers, or 
                        assets that are known to protect children and 
                        youth from exposure to risk, either by reducing 
                        the exposure to risk factors or by changing the 
                        way the young person responds to risk, and to 
                        increase the likelihood of positive youth 
                        development;
                    ``(C) whether funded community and local education 
                agency programs have appreciably reduced the level of 
                drug, alcohol and tobacco use and school violence and 
                the presence of firearms at schools; and
                    ``(D) whether funded community and local 
                educational agency programs have conducted effective 
                parent involvement and voluntary training programs.
            ``(2) Data collection.--The National Center for Education 
        Statistics shall collect data, that is subject to independent 
        review, to determine the incidence and prevalence of drug use 
        and violence in elementary and secondary schools in the States. 
        The collected data shall include incident reports by schools 
        officials, anonymous student surveys, and anonymous teacher 
        surveys.
            ``(3) Biennial Report.--Not later than January 1, 2003, and 
        every 2 years thereafter, the Secretary shall submit to the 
        President and Congress a report on the findings of the 
        evaluation conducted under paragraph (1) together with the data 
        collected under paragraph (2) and data available from other 
        sources on the incidence and prevalence, age of onset, 
        perception of health risk, and perception of social disapproval 
        of drug use in elementary and secondary schools in the States. 
        The Secretary shall include data submitted by the States 
        pursuant to subsection (b)(2)(B).
    ``(b) State Report.--
            ``(1) In general.--By December 1, 2002, and every 2 years 
        thereafter, the chief executive officer of the State, in 
        cooperation with the State educational agency, shall submit to 
        the Secretary a report--
                    ``(A) on the implementation and outcomes of State 
                programs under section 4114 and section 4113(b) and 
                local educational agency programs under section 
                4113(d), as well as an assessment of their 
                effectiveness;
                    ``(B) on the State's progress toward attaining its 
                goals for drug and violence prevention under 
                subsections (b)(1) and (c)(1) of section 4112; and
                    ``(C) on the State's efforts to inform parents of, 
                and include parents in, violence and drug prevention 
                efforts.
            ``(2) Special rule.--The report required by this subsection 
        shall be--
                    ``(A) in the form specified by the Secretary;
                    ``(B) based on the State's ongoing evaluation 
                activities, and shall include data on the incidence and 
                prevalence, age of onset, perception of health risk, 
                and perception of social disapproval of drug use and 
                violence by youth in schools and communities; and
                    ``(C) made readily available to the public.
    ``(c) Local Educational Agency Report.--
            ``(1) In general.--Each local educational agency receiving 
        funds under this subpart shall submit to the State educational 
        agency such information that the State requires to complete the 
        State report required by subsection (b), including a 
        description of how parents were informed of, and participated 
        in, violence and drug prevention efforts.
            ``(2) Availability.--Information under paragraph (1) shall 
        be made readily available to the public.
            ``(3) Provision of documentation.--Not later than January 1 
        of each year that a State is required to report under 
        subsection (b), the Secretary shall provide to the State 
        education agency all of the necessary documentation required 
        for compliance with this section.

``SEC. 4118. PROGRAMS FOR NATIVE HAWAIIANS.

    ``(a) General Authority.--From the funds made available pursuant to 
section 4111(a)(4) to carry out this section, the Secretary shall make 
grants to or enter into cooperative agreements or contracts with 
organizations primarily serving and representing Native Hawaiians to 
plan, conduct, and administer programs, or portions thereof, which are 
authorized by and consistent with the provisions of this title for the 
benefit of Native Hawaiians.
    ``(b) Definition of Native Hawaiian.--For the purposes of this 
section, the term `Native Hawaiian' means any individual any of whose 
ancestors were natives, prior to 1778, of the area which now comprises 
the State of Hawaii.

                     ``Subpart 2--National Programs

``SEC. 4121. FEDERAL ACTIVITIES.

    ``(a) Program Authorized.--From funds made available to carry out 
this subpart under section 4004(2), the Secretary, in consultation with 
the Secretary of Health and Human Services, the Director of the Office 
of National Drug Control Policy, and the Attorney General, shall carry 
out programs to prevent the illegal use of drugs and violence among, 
and promote safety and discipline for, students at all educational 
levels from preschool through the post-secondary level. The Secretary 
shall carry out such programs directly, or through grants, contracts, 
or cooperative agreements with public and private entities and 
individuals, or through agreements with other Federal agencies, and 
shall coordinate such programs with other appropriate Federal 
activities. Such programs may include--
            ``(1) the development and demonstration of innovative 
        strategies for the voluntary training of school personnel, 
        parents, and members of the community, including the 
        demonstration of model preservice training programs for 
        prospective school personnel;
            ``(2) demonstrations and rigorous evaluations of innovative 
        approaches to drug and violence prevention;
            ``(3) the provision of information on drug abuse education 
        and prevention to the Secretary of Health and Human Services 
        for dissemination by the clearinghouse for alcohol and drug 
        abuse information established under section 501(d)(16) of the 
        Public Health Service Act;
            ``(4) the provision of information on violence prevention 
        and education and school safety to the Department of Justice, 
        for dissemination by the National Resource Center for Safe 
        Schools as a national clearinghouse on violence and school 
        safety information;
            ``(5) the development of curricula related to child abuse 
        prevention and education and the training of personnel to teach 
        child abuse education and prevention to elementary and 
        secondary schoolchildren;
            ``(6) program evaluations that address issues not addressed 
        under section 4117(a);
            ``(7) direct services to schools and school systems 
        afflicted with especially severe drug and violence problems or 
        to support crisis situations and appropriate response efforts;
            ``(8) activities in communities designated as empowerment 
        zones or enterprise communities that will connect schools to 
        community-wide efforts to reduce drug and violence problems;
            ``(9) developing and disseminating drug and violence 
        prevention materials, including video-based projects and model 
        curricula;
            ``(10) developing and implementing a comprehensive violence 
        prevention strategy for schools and communities, that may 
        include administrative approaches, security services, conflict 
        resolution, peer mediation, mentoring, the teaching of law and 
        legal concepts, and other activities designed to stop violence;
            ``(11) the development of professional development programs 
        necessary for teachers, other educators, and pupil services 
        personnel to implement alternative education supports, 
        services, and programs for chronically disruptive, drug-
        abusing, and violent students;
            ``(12) the development, establishment, or improvement of 
        alternative education models, either established within a 
        school or separate and apart from an existing school, that are 
        designed to promote drug and violence prevention, reduce 
        disruptive behavior, to reduce the need for repeat suspensions 
        and expulsions, to enable students to meet challenging State 
        academic standards, and to enable students to return to the 
        regular classroom as soon as possible;
            ``(13) the implementation of innovative activities, such as 
        community service and service-learning projects, designed to 
        rebuild safe and healthy neighborhoods and increase students' 
        sense of individual responsibility;
            ``(14) 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;
            ``(15) 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
            ``(16) other activities that meet unmet national needs 
        related to the purposes of this title.
    ``(b) Peer Review.--The Secretary shall use a peer review process 
in reviewing applications for funds under this section.

``SEC. 4122. NATIONAL COORDINATOR PROGRAM.

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

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

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

``SEC. 4124. HATE CRIME PREVENTION.

    ``(a) Grant Authorization.--From funds made available to carry out 
this subpart under section 4004(2) the Secretary may make grants to 
local educational agencies and community-based organizations for the 
purpose of providing assistance to localities most directly affected by 
hate crimes.
    ``(b) Use of Funds.--
            ``(1) Program development.--Grants under this section may 
        be used to improve elementary and secondary educational 
        efforts, including--
                    ``(A) development of education and training 
                programs designed to prevent and to reduce the 
                incidence of crimes and conflicts motivated by hate;
                    ``(B) development of curricula for the purpose of 
                improving conflict or dispute resolution skills of 
                students, teachers, and administrators;
                    ``(C) development and acquisition of equipment and 
                instructional materials to meet the needs of, or 
                otherwise be part of, hate crime or conflict programs; 
                and
                    ``(D) professional training and development for 
                teachers and administrators on the causes, effects, and 
                resolutions of hate crimes or hate-based conflicts.
            ``(2) In general.--In order to be eligible to receive a 
        grant under this section for any fiscal year, a local 
        educational agency, or a local educational agency in 
        conjunction with a community-based organization, shall submit 
        an application to the Secretary in such form and containing 
        such information as the Secretary may reasonably require.
            ``(3) Requirements.--Each application under paragraph (2) 
        shall include--
                    ``(A) a request for funds for the purposes 
                described in this section;
                    ``(B) a description of the schools and communities 
                to be served by the grants; and
                    ``(C) assurances that Federal funds received under 
                this section shall be used to supplement, not supplant, 
                non-Federal funds.
            ``(4) Comprehensive plan.--Each application shall include a 
        comprehensive plan that contains--
                    ``(A) a description of the hate crime or conflict 
                problems within the schools or the community targeted 
                for assistance;
                    ``(B) a description of the program to be developed 
                or augmented by such Federal and matching funds;
                    ``(C) assurances that such program or activity 
                shall be administered by or under the supervision of 
                the applicant;
                    ``(D) procedures for the proper and efficient 
                administration of such program; and
                    ``(E) fiscal control and fund accounting procedures 
                as may be necessary to ensure prudent use, proper 
                disbursement, and accurate accounting of funds received 
                under this section.
    ``(c) Award of Grants.--
            ``(1) Selection of recipients.--The Secretary shall 
        consider the incidence of crimes and conflicts motivated by 
        bias in the targeted schools and communities in awarding grants 
        under this section.
            ``(2) Geographic distribution.--The Secretary shall 
        attempt, to the extent practicable, to achieve an equitable 
        geographic distribution of grant awards.
            ``(3) Dissemination of information.--The Secretary shall 
        attempt, to the extent practicable, to make available 
        information regarding successful hate crime prevention 
        programs, including programs established or expanded with 
        grants under this section.
    ``(d) Reports.--The Secretary shall submit to the Congress a report 
every two years which shall contain a detailed statement regarding 
grants and awards, activities of grant recipients, and an evaluation of 
programs established under this section.

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

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

``SEC. 4126. SUICIDE PREVENTION PROGRAMS.

    ``(a) Grants Authorized.--
            ``(1) Authority.--The Secretary is authorized to award 
        grants and contracts to elementary schools and secondary 
        schools for the purpose of--
                    ``(A) developing and implementing suicide 
                prevention programs; and
                    ``(B) to provide training to school administrators, 
                faculty, and staff, with respect to identifying the 
                warning signs of suicide and creating a plan of action 
                for helping those at risk.
            ``(2) Award basis.--The Secretary shall award grants and 
        contracts under this section--
                    ``(A) on a competitive basis;
                    ``(B) in a manner that complies with the 
                requirements under subsection (c) of section 520E of 
                the Public Health Service Act; and
                    ``(C) in a manner that ensures that such grants and 
                contracts are equitably distributed throughout a State 
                among elementary schools and secondary schools located 
                in rural, urban, and suburban areas in the State.
            ``(3) Policy dissemination.--The Secretary shall 
        disseminate to elementary schools and secondary schools any 
        Department of Education policy guidance regarding the 
        prevention of suicide.
    ``(b) Uses of Funds.--Funds provided under this section may be used 
for the following purposes:
            ``(1) To provide training for elementary school and 
        secondary school administrators, faculty, and staff with 
        respect to identifying the warning signs of suicide and 
        creating a plan of action for helping those at risk.
            ``(2) To provide education programs for elementary school 
        and secondary school students that are developmentally 
        appropriate for the students' grade levels and are designed to 
        meet any unique cultural and language needs of the particular 
        student populations.
            ``(3) To conduct evaluations to assess the impact of 
        programs and policies assisted under this section in order to 
        enhance the development of the programs.
    ``(c) Confidentiality.--Policies, programs, training materials, and 
evaluations developed and implemented under subsection (b) shall 
address issues of safety and confidentiality for the victim and the 
victim's family in a manner consistent with applicable Federal and 
State laws.
    ``(d) Application.--
            ``(1) In general.--To be eligible to be awarded a grant or 
        contract under this section for any fiscal year, an elementary 
        school or secondary school shall submit an application to the 
        Secretary at such time and in such manner as the Secretary 
        shall prescribe.
            ``(2) Contents.--Each application submitted under paragraph 
        (1) shall--
                    ``(A) describe the need for funds provided under 
                the grant or contract and the plan for implementation 
                of any of the activities described in subsection (b);
                    ``(B) provide measurable goals for and expected 
                results from the use of the funds provided under the 
                grant or contract; and
                    ``(C) incorporate appropriate remuneration for 
                collaborating partners.
    ``(e) Applicability.--The provisions of this part (other than this 
section) shall not apply to this section.

``SEC. 4127. GRANTS FOR THE INTEGRATION OF SCHOOLS AND MENTAL HEALTH 
              SYSTEMS.

    ``(a) In General.--The Secretary shall award grants, contracts, or 
cooperative agreements to State educational agencies, local educational 
agencies, or Indian tribes, for the purpose of increasing student 
access to quality mental health care by developing innovative programs 
to link local school systems with the local mental health system.
    ``(b) Duration.--With respect to a grant, contract, or cooperative 
agreement awarded under this section, the period during which payments 
under such award are made to the recipient may not exceed 5 years.
    ``(c) Interagency agreements.--
            ``(1) Designation of lead agency.--The recipient of each 
        grant, contract, or cooperative agreement shall designate a 
        lead agency to direct the establishment of an interagency 
        agreement among local educational agencies, juvenile justice 
        authorities, mental health agencies, and other relevant 
        entities in the State, in collaboration with local entities and 
        parents and guardians of students.
            ``(2) Contents.--The interagency agreement shall ensure the 
        provision of the services to a student described in subsection 
        (e) specifying with respect to each agency, authority or 
        entity--
                    ``(A) the financial responsibility for the 
                services;
                    ``(B) the conditions and terms of responsibility 
                for the services, including quality, accountability, 
                and coordination of the services; and
                    ``(C) the conditions and terms of reimbursement 
                among the agencies, authorities or entities that are 
                parties to the interagency agreement, including 
                procedures for dispute resolution.
    ``(d) Application.--
            ``(1) In general.--To be eligible to receive a grant, 
        contract, or cooperative agreement under this section, a State 
        educational agency, local educational agency, or Indian tribe 
        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) Content.--An application submitted under this section 
        shall--
                    ``(A) describe the program to be funded under the 
                grant, contract, or cooperative agreement;
                    ``(B) explain how such program will increase access 
                to quality mental health services for students;
                    ``(C) explain how the applicant will establish a 
                crisis intervention program to provide immediate mental 
                health services to the school community when necessary;
                    ``(D) provide assurances that--
                            ``(i) persons providing services under the 
                        grant, contract or cooperative agreement are 
                        adequately trained to provide such services;
                            ``(ii) the services will be provided in 
                        accordance with subsection (e); and
                            ``(iii) teachers, principal administrators, 
                        and other school personnel are aware of the 
                        program;
                    ``(E) explain how the applicant will support and 
                integrate existing school-based services with the 
                program to provide appropriate mental health services 
                for students; and
                    ``(F) explain how the applicant will establish a 
                program that will support students and the school in 
                maintaining an environment conducive to learning.
    ``(e) Use of Funds.--A State educational agency, local educational 
agency, or Indian tribe, that receives a grant, contract, or 
cooperative agreement under this section shall use amounts made 
available through such grant, contract or cooperative agreement to--
            ``(1) enhance, improve, or develop collaborative efforts 
        between school-based service systems and mental health service 
        systems to provide, enhance, or improve prevention, diagnosis, 
        and treatment services to students;
            ``(2) enhance the availability of crisis intervention 
        services, appropriate referrals for students potentially in 
        need of mental health services and on going mental health 
        services;
            ``(3) provide training for the school personnel and mental 
        health professionals who will participate in the program 
        carried out under this section;
            ``(4) provide technical assistance and consultation to 
        school systems and mental health agencies and families 
        participating in the program carried out under this section;
            ``(5) provide linguistically appropriate and culturally 
        competent services; and
            ``(6) evaluate the effectiveness of the program carried out 
        under this section in increasing student access to quality 
        mental health services, and make recommendations to the 
        Secretary about sustainability of the program.
    ``(f) Distribution of Awards.--The Secretary shall ensure that 
grants, contracts, and cooperative agreements awarded under subsection 
(a) are equitably distributed among the geographical regions of the 
United States and between urban and rural populations.
    ``(g) Other Services.--Any services provided through programs 
established under this section must supplement and not supplant 
existing Mental Health Services, including any services required to be 
provided under the Individuals with Disabilities Education Act (20 
U.S.C. 1400 et seq.).
    ``(h) Evaluation.--The Secretary shall evaluate each program 
carried out by a State educational agency, local educational agency, or 
Indian tribe, under this section and shall disseminate the findings 
with respect to each such evaluation to appropriate public and private 
entities.
    ``(i) Reporting.--Nothing in Federal law shall be construed--
            ``(1) to prohibit an entity involved with the program from 
        reporting a crime that is committed by a student, to 
        appropriate authorities; or
            ``(2) to prevent State law enforcement and judicial 
        authorities from exercising their responsibilities with regard 
        to the application of Federal and State law to crimes committed 
        by a student.
    ``(j) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section, $50,000,000 for fiscal year 
2002, and such sums as may be necessary for fiscal years 2003 through 
2005.

                    ``Subpart 3--General Provisions

``SEC. 4131. DEFINITIONS.

    ``In this part:
            ``(1) Community-based organization.--The term `community-
        based organization' means a private nonprofit organization 
        which is representative of a community or significant segments 
        of a community and which provides educational or related 
        services to individuals in the community.
            ``(2) Drug and violence prevention.--The term `drug and 
        violence prevention' means--
                    ``(A) with respect to drugs, prevention, early 
                intervention, rehabilitation referral, or education 
                related to the illegal use of alcohol and the use of 
                controlled, illegal, addictive, or harmful substances, 
                including inhalants and anabolic steroids;
                    ``(B) prevention, early intervention, smoking 
                cessation activities, or education, related to the use 
                of tobacco by children and youth eligible for services 
                under this title; and
                    ``(C) with respect to violence, the promotion of 
                school safety, such that students and school personnel 
                are free from violent and disruptive acts, including 
                sexual harassment and abuse, and victimization 
                associated with prejudice and intolerance, on school 
                premises, going to and from school, and at school-
                sponsored activities, through the creation and 
                maintenance of a school environment that is free of 
                weapons and fosters individual responsibility and 
                respect for the rights of others.
            ``(3) Hate crime.--The term `hate crime' means a crime as 
        described in section 1(b) of the Hate Crime Statistics Act of 
        1990.
            ``(4) Nonprofit.--The term `nonprofit', as applied to a 
        school, agency, organization, or institution means a school, 
        agency, organization, or institution owned and operated by one 
        or more nonprofit corporations or associations, no part of the 
        net earnings of which inures, or may lawfully inure, to the 
        benefit of any private shareholder or individual.
            ``(5) Objectively measurable goals.--The term `objectively 
        measurable goals' means prevention programming goals defined 
        through use of quantitative epidemiological data measuring the 
        prevalence of alcohol, tobacco, and other drug use, violence, 
        and the prevalence of risk and protective factors predictive of 
        these behaviors, collected through a variety of methods and 
        sources known to provide high quality data.
            ``(6) Protective factor, buffer, or asset.--The terms 
        `protective factor', `buffer', and `asset' mean any one of a 
        number of the community, school, family, or peer-individual 
        domains that are known, through prospective, longitudinal 
        research efforts, or which are grounded in a well-established 
        theoretical model of prevention, and have been shown to prevent 
        alcohol, tobacco, or illicit drug use, as well as violent 
        behavior, by youth in the community, and which promote positive 
        youth development.
            ``(7) Risk factor.--The term `risk factor' means any one of 
        a number of characteristics of the community, school, family, 
        or peer-individual domains that are known, through prospective, 
        longitudinal research efforts, to be predictive of alcohol, 
        tobacco, and illicit drug use, as well as violent behavior, by 
        youth in the school and community.
            ``(8) School-aged population.--The term `school-aged 
        population' means the population aged five through 17, as 
        determined by the Secretary on the basis of the most recent 
        satisfactory data available from the Department of Commerce.
            ``(9) School personnel.--The term `school personnel' 
        includes teachers, administrators, counselors, social workers, 
        psychologists, therapists, nurses, librarians, and other 
        support staff who are employed by a school or who perform 
        services for the school on a contractual basis.

``SEC. 4132. MATERIALS.

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

``SEC. 4133. PROHIBITED USES OF FUNDS.

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

``SEC. 4134. QUALITY RATING.

    ``(a) In General.--The chief executive officer of each State, or in 
the case of a State in which the constitution or law of such State 
designates another individual, entity, or agency in the State to be 
responsible for education activities, such individual, entity, or 
agency, is authorized and encouraged--
            ``(1) to establish a standard of quality for drug, alcohol, 
        and tobacco prevention programs implemented in public 
        elementary schools and 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.

 ``Subpart 4--State Grants To Encourage Community Service by Expelled 
                         and Suspended Students

``SEC. 4141. AUTHORIZATION OF APPROPRIATIONS.

    ``In addition to amounts authorized to be appropriated under 
section 4004, there are authorized to be appropriated $50,000,000 for 
fiscal year 2002 for State grants to encourage States to carry out 
programs under which students expelled or suspended from schools in the 
States are required to perform community service.

``SEC. 4142. ALLOTMENTS.

    ``(a) In General.--From the amount made available under section 
4141, the Secretary shall allocate among the States--
            ``(1) one-half according to the ratio between the school-
        aged population of each State and the school-aged population of 
        all the States; and
            ``(2) one-half according to the ratio between the amount 
        each State received under section 1124A for the preceding year 
        and the sum of such amounts received by all the States.
    ``(b) Minimum.--For any fiscal year, no State shall be allotted 
under this section an amount that is less than one-half of 1 percent of 
the total amount allotted to all the States under this section.
    ``(c) Reallotment.--The Secretary may reallot any amount of any 
allotment to a State if the Secretary determines that the State will be 
unable to use such amount within 2 years of such allotment. Such 
reallotments shall be made on the same basis as allotments are made 
under subsection (a).
    ``(d) Definition.--In this section, the term `State' means each of 
the 50 States, the District of Columbia, and the Commonwealth of Puerto 
Rico.''.

SEC. 402. GUN-FREE REQUIREMENTS.

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

                        ``PART B--GUN POSSESSION

``SEC. 4201. GUN-FREE REQUIREMENTS.

    ``(a) Short Title.--This part may be cited as the ``Gun-Free 
Schools Act of 1994''.
    ``(b) Requirements.--
            ``(1) In general.--Each State receiving Federal funds under 
        this Act shall have in effect a State law requiring local 
        educational agencies to expel from school for a period of not 
        less than one year a student who is determined to have brought 
        a weapon to a school, or to have possessed a weapon at a 
        school, under the jurisdiction of local educational agencies in 
        that State, except that such State law shall allow the chief 
        administering officer of a local educational agency to modify 
        such expulsion requirement for a student on a case-by-case 
        basis if such modification is in writing.
            ``(2) Construction.--Nothing in this part shall be 
        construed to prevent a State from allowing a local educational 
        agency that has expelled a student from such a student's 
        regular school setting from providing educational services to 
        such student in an alternative setting.
            ``(3) Definition.--For the purpose of this section, the 
        term `weapon' means a firearm as such term is defined in 
        section 921(a) of title 18, United States Code.
    ``(c) Special Rule.--The provisions of this section shall be 
construed in a manner consistent with the Individuals with Disabilities 
Education Act.
    ``(d) Report to State.--Each local educational agency requesting 
assistance from the State educational agency that is to be provided 
from funds made available to the State under this Act shall provide to 
the State, in the application requesting such assistance--
            ``(1) an assurance that such local educational agency is in 
        compliance with the State law required by subsection (b); and
            ``(2) a description of the circumstances surrounding any 
        expulsions imposed under the State law required by subsection 
        (b), including--
                    ``(A) the name of the school concerned;
                    ``(B) the number of students expelled from such 
                school; and
                    ``(C) the type of weapons concerned.
    ``(e) Reporting.--Each State shall report the information described 
in subsection (d) to the Secretary on an annual basis.
    ``(f) Definition.--In this section, the term `school' means any 
setting that is under the control and supervision of the local 
educational agency for the purpose of student activities approved and 
authorized by the local educational agency.
    ``(g) Exception.--Nothing in this section shall apply to a weapon 
that is lawfully stored inside a locked vehicle on school property, or 
if it is for activities approved and authorized by the local 
educational agency and the local educational agency adopts appropriate 
safeguards to ensure student safety.

``SEC. 4202. POLICY REGARDING CRIMINAL JUSTICE SYSTEM REFERRAL.

    ``(a) In General.--No funds shall be made available under this Act 
to any local educational agency unless such agency has a policy 
requiring referral to the criminal justice or juvenile delinquency 
system of any student who brings a weapon to a school, or is found to 
have possessed a weapon at a school, served by such agency.
    ``(b) Definitions.--For the purpose of this section:
            ``(1) School.--The term `school' has the meaning given to 
        such term by section 921(a) of title 18, United States Code.
            ``(2) Weapon.--The term `weapon' has the meaning given such 
        term in section 4101(b)(3).''.

SEC. 403. SCHOOL SAFETY AND VIOLENCE PREVENTION.

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

            ``PART C--SCHOOL SAFETY AND VIOLENCE PREVENTION

``SEC. 4301. SCHOOL SAFETY AND VIOLENCE PREVENTION.

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

``SEC. 4302. SCHOOL UNIFORMS.

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

``SEC. 4303. TRANSFER OF SCHOOL DISCIPLINARY RECORDS.

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

``SEC. 4304. CONFIDENTIAL REPORTING OF INDIVIDUALS SUSPECTED OF 
              IMMINENT SCHOOL VIOLENCE.

    ``Subject to the provisions of this title and subpart 4 of part B 
of title V, funds made available under such titles may be used to--
            ``(1) support the independent State development and 
        operation of confidential, toll-free telephone hotlines that 
        will operate 7 days per week, 24 hours per day, in order to 
        provide students, school officials, and other individuals with 
        the opportunity to report specific threats of imminent school 
        violence or to report other suspicious or criminal conduct by 
        juveniles to appropriate State and local law enforcement 
        entities for investigation;
            ``(2) ensure proper State training of personnel to answer 
        and respond to telephone calls to hotlines described in 
        paragraph (1);
            ``(3) assist in the acquisition of technology necessary to 
        enhance the effectiveness of hotlines described in paragraph 
        (1), including the utilization of Internet web-pages or 
        resources;
            ``(4) enhance State efforts to offer appropriate counseling 
        services to individuals who call hotlines described in 
        paragraph (1) threatening to do harm to themselves or others; 
        and
            ``(5) further State effort to publicize services offered by 
        the hotlines described in paragraph (1) and to encourage 
        individuals to utilize those services.

``SEC. 4305. SCHOOL SECURITY TECHNOLOGY AND RESOURCE CENTER.

    ``(a) Center.--The Attorney General, the Secretary of Education, 
and the Secretary of Energy shall enter into an agreement for the 
establishment at the Sandia National Laboratories, in partnership with 
the National Law Enforcement and Corrections Technology Center--
Southeast and the National Center for Rural Law Enforcement in Little 
Rock, Arkansas, of a center to be known as the `School Security 
Technology and Resource Center'.
    ``(b) Administration.--The center established under subsection (a) 
shall be administered by the Attorney General.
    ``(c) Functions.--The center established under subsection (a) shall 
be a resource to local educational agencies for school security 
assessments, security technology development, evaluation and 
implementation, and technical assistance relating to improving school 
security. The center will also conduct and publish school violence 
research, coalesce data from victim communities, and monitor and report 
on schools that implement school security strategies.
    ``(d) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section, $4,750,000 for each of the 
fiscal years 2002, 2003, and 2004, of which $2,000,000 shall be for 
Sandia National Laboratories in each fiscal year, $2,000,000 shall be 
for the National Center for Rural Law Enforcement in each fiscal year, 
and $750,000 shall be for the National Law Enforcement and Corrections 
Technology Center--Southeast in each fiscal year.

``SEC. 4306. LOCAL SCHOOL SECURITY PROGRAMS.

    ``(a) In General.--
            ``(1) Grants authorized.--From amounts appropriated under 
        subsection (c), the Secretary shall award grants on a 
        competitive basis to local educational agencies to enable the 
        agencies to acquire security technology for, or carry out 
        activities related to improving security at, the middle and 
        secondary schools served by the agencies, including obtaining 
        school security assessments, and technical assistance, for the 
        development of a comprehensive school security plan from the 
        School Security Technology and Resource Center.
            ``(2) Application.--To be eligible to receive a grant under 
        this section, a local educational agency shall submit to the 
        Secretary an application in such form and containing such 
        information as the Secretary may require, including information 
        relating to the security needs of the agency.
            ``(3) Priority.--In awarding grants under this section, the 
        Secretary shall give priority to local educational agencies 
        that demonstrate the highest security needs, as reported by the 
        agency in the application submitted under paragraph (2).
    ``(b) Applicability.--The provisions of this part (other than this 
section) shall not apply to this section.
    ``(c) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $10,000,000 for each of fiscal 
years 2002, 2003, and 2004.

``SEC. 4307. SAFE AND SECURE SCHOOL ADVISORY REPORT.

    ``Not later than 1 year after the date of enactment of this Act, 
the Attorney General, in consultation with the Secretary of Education 
and the Secretary of Energy, or their designees, shall--
            ``(1) develop a proposal to further improve school 
        security; and
            ``(2) submit that proposal to Congress.''.
    (b) Background Checks.--Section 5(9) of the National Child 
Protection Act of 1993 (42 U.S.C. 5119c(9)) is amended--
            (1) in subparagraph (A)(i), by inserting ``(including an 
        individual who is employed by a school in any capacity, 
        including as a child care provider, a teacher, or another 
        member of school personnel)'' before the semicolon; and
            (2) in subparagraph (B)(i), by inserting ``(including an 
        individual who seeks to be employed by a school in any 
        capacity, including as a child care provider, a teacher, or 
        another member of school personnel)'' before the semicolon.

SEC. 404. SCHOOL SAFETY ENHANCEMENT.

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

                  ``PART D--SCHOOL SAFETY ENHANCEMENT

``SEC. 4401. SHORT TITLE.

    ``This part may be cited as the `School Safety Enhancement Act of 
2001'.

``SEC. 4402. FINDINGS.

    ``Congress makes the following findings:
            ``(1) While our Nation's schools are still relatively safe, 
        it is imperative that schools be provided with adequate 
        resources to prevent incidents of violence.
            ``(2) Approximately 10 percent of all public schools 
        reported at least 1 serious violent crime to a law enforcement 
        agency over the course of the 1996-1997 school year.
            ``(3) In 1996, approximately 225,000 students between the 
        ages of 12 and 18 were victims of nonfatal violent crime in 
        schools in the United States.
            ``(4) From 1992 through 1994, 76 students and 29 non-
        students were victims of murders or suicides that were 
        committed in schools in the United States.
            ``(5) The school violence incidents in several States 
        across the Nation in 1998 and 1999 caused enormous damage to 
        schools, families, and whole communities.
            ``(6) Because of escalating school violence, the children 
        of the United States are increasingly afraid that they will be 
        attacked or harmed at school.
            ``(7) A report issued by the Department of Education in 
        August, 1998, entitled `Early Warning, Early Response' 
        concluded that the reduction and prevention of school violence 
        is best achieved through safety plans which involve the entire 
        community, policies which emphasize both prevention and 
        intervention, training school personnel, parents, students, and 
        community members to recognize the early warning signs of 
        potential violent behavior and to share their concerns or 
        observations with trained personnel, establishing procedures 
        which allow rapid response and intervention when early warning 
        signs of violent behavior are identified, and providing 
        adequate support and access to services for troubled students.

``SEC. 4403. NATIONAL CENTER FOR SCHOOL AND YOUTH SAFETY.

    ``(a) Establishment.--The Secretary of Education and the Attorney 
General shall jointly establish a National Center for School and Youth 
Safety (in this section referred to as the `Center'). The Secretary of 
Education and the Attorney General may establish the Center at an 
existing facility, if the facility has a history of performing two or 
more of the duties described in subsection (b). The Secretary of 
Education and the Attorney General shall jointly appoint a Director of 
the Center to oversee the operation of the Center.
    ``(b) Duties.--The Center shall carry out emergency response, 
anonymous student hotline, consultation, and information and outreach 
activities with respect to elementary and secondary school safety, 
including the following:
            ``(1) Emergency response.--The staff of the Center, and 
        such temporary contract employees as the Director of the Center 
        shall determine necessary, shall offer emergency assistance to 
        local communities to respond to school safety crises. Such 
        assistance shall include counseling for victims and the 
        community, assistance to law enforcement to address short-term 
        security concerns, and advice on how to enhance school safety, 
        prevent future incidents, and respond to future incidents.
            ``(2) Anonymous student hotline.--The Center shall 
        establish a toll-free telephone number for students to report 
        criminal activity, threats of criminal activity, and other 
        high-risk behaviors such as substance abuse, gang or cult 
        affiliation, depression, or other warning signs of potentially 
        violent behavior. The Center shall relay the reports, without 
        attribution, to local law enforcement or appropriate school 
        hotlines. The Director of the Center shall work with the 
        Attorney General to establish guidelines for Center staff to 
        work with law enforcement around the Nation to relay 
        information reported through the hotline.
            ``(3) Consultation.--The Center shall establish a toll-free 
        number for the public to contact staff of the Center for 
        consultation regarding school safety. The Director of the 
        Center shall hire administrative staff and individuals with 
        expertise in enhancing school safety, including individuals 
        with backgrounds in counseling and psychology, education, law 
        enforcement and criminal justice, and community development to 
        assist in the consultation.
            ``(4) Information and outreach.--The Center shall compile 
        information about the best practices in school violence 
        prevention, intervention, and crisis management, and shall 
        serve as a clearinghouse for model school safety program 
        information. The staff of the Center shall work to ensure local 
        governments, school officials, parents, students, and law 
        enforcement officials and agencies are aware of the resources, 
        grants, and expertise available to enhance school safety and 
        prevent school crime. The staff of the Center shall give 
        special attention to providing outreach to rural and 
        impoverished communities.
    ``(c) Funding.--There is authorized to be appropriated to carry out 
this section, $25,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of fiscal years 2003 through 2005.''.

``SEC. 4404. SAFE COMMUNITIES, SAFE SCHOOLS.

    ``(a) Grants Authorized.--Using funds made available under 
subsection (c), the Secretary of Education, the Secretary of Health and 
Human Services, and the Attorney General shall award grants, on a 
competitive basis, to help communities develop community-wide safety 
programs involving students, parents, educators, guidance counselors, 
psychologists, law enforcement officials or agencies, civic leaders, 
and other organizations serving the community.
    ``(b) Authorized Activities.--Funds provided under this section may 
be used for activities that may include efforts to--
            ``(1) increase early intervention strategies;
            ``(2) expand parental involvement;
            ``(3) increase students' awareness of warning signs of 
        violent behavior;
            ``(4) promote students' responsibility to report the 
        warning signs to appropriate persons;
            ``(5) promote conflict resolution and peer mediation 
        programs;
            ``(6) increase the number of after-school programs;
            ``(7) expand the use of safety-related equipment and 
        technology; and
            ``(8) expand students' access to mental health services.
    ``(c) Funding.--There is authorized to be appropriated to carry out 
this section, $24,000,000 for fiscal year 2002 and such sums as may be 
necessary for each of fiscal years 2003 through 2005.''.

SEC. 405. AMENDMENTS TO THE NATIONAL CHILD PROTECTION ACT OF 1993.

    Section 5(10) of the National Child Protection Act of 1993 (42 
U.S.C. 5119c(10)) is amended to read as follows:
            ``(10) the term `qualified entity' means--
                    ``(A) a business or organization, whether public, 
                private, for-profit, not-for-profit, or voluntary, that 
                provides care or care placement services, including a 
                business or organization that licenses or certifies 
                others to provide care or care placement services; or
                    ``(B) an elementary or secondary school.''.

SEC. 406. ENVIRONMENTAL TOBACCO SMOKE.

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

                 ``PART E--ENVIRONMENTAL TOBACCO SMOKE

``SEC. 4501. SHORT TITLE.

    ``This part may be cited as the `Pro-Children Act of 2001'.

``SEC. 4502. DEFINITIONS.

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

``SEC. 4503. NONSMOKING POLICY FOR CHILDREN'S SERVICES.

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

``SEC. 4504. PREEMPTION.

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

SEC. 407. GRANTS TO REDUCE ALCOHOL ABUSE.

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

                ``PART F--GRANTS TO REDUCE ALCOHOL ABUSE

``SEC. 4601. GRANTS TO REDUCE ALCOHOL ABUSE.

    ``(a) In General.--The Secretary, in consultation with the 
Administrator of the Substance Abuse and Mental Health Services 
Administration, shall award grants, on a competitive basis, to local 
educational agencies to enable such agencies to develop and implement 
innovative and effective programs to reduce alcohol abuse in secondary 
schools.
    ``(b) Eligibility.--To be eligible to receive a grant under 
subsection (a), a local educational agency shall prepare and submit to 
the Secretary an application at such time, in such manner, and 
containing such information as the Secretary may require, including--
            ``(1) a description of the activities to be carried out 
        under the grant;
            ``(2) an assurance that such activities will include 1 or 
        more of the proven strategies for reducing underage alcohol 
        abuse as determined by the Substance Abuse and Mental Health 
        Services Administration;
            ``(3) an explanation of how activities to be carried under 
        the grant that are not described in paragraph (2) will be 
        effective in reducing underage alcohol abuse, including 
        references to the past effectiveness of such activities;
            ``(4) an assurance that the applicant will submit to the 
        Secretary an annual report concerning the effectiveness of the 
        programs and activities funded under the grant; and
            ``(5) such other information as the Secretary determines 
        appropriate.
    ``(c) Streamlining of Process for Low-Income and Rural LEAs.--The 
Secretary, in consultation with the Administrator of the Substance 
Abuse and Mental Health Services Administration, shall develop 
procedures to make the application process for grants under this 
section more user-friendly, particularly for low-income and rural local 
educational agencies.
    ``(d) Authorization of Appropriations.--
            ``(1) In general.--There is authorized to be appropriated 
        to carry out this section, $25,000,000 for fiscal year 2002, 
        and such sums as may be necessary in each of the 6 subsequent 
        fiscal years.
            ``(2) Reservations.--
                    ``(A) Samhsa.--The Secretary shall reserve 20 
                percent of the amount appropriated for each fiscal year 
                under paragraph (1) to enable the Administrator of the 
                Substance Abuse and Mental Health Services 
                Administration to provide alcohol abuse resources and 
                start-up assistance to local educational agencies 
                receiving grants under this section.
                    ``(B) Low-income and rural areas.--The Secretary 
                shall reserve 25 percent of the amount appropriated for 
                each fiscal year under paragraph (1) to award grants 
                under this section to low-income and rural local 
                educational agencies.''.

SEC. 408. MENTORING PROGRAMS.

    (a) In General.--Title IV of Elementary and Secondary Education Act 
of 1965 is further amended by adding at the end the following:

                      ``PART G--MENTORING PROGRAMS

``SEC. 4701. DEFINITIONS.

    ``In this part:
            ``(1) Child with greatest need.--The term `child with 
        greatest need' means a child at risk of educational failure, 
        dropping out of school, or involvement in criminal or 
        delinquent activities, or that has lack of strong positive 
        adult role models.
            ``(2) Mentor.--The term `mentor' means an individual who 
        works with a child to provide a positive role model for the 
        child, to establish a supportive relationship with the child, 
        and to provide the child with academic assistance and exposure 
        to new experiences and examples of opportunity that enhance the 
        ability of the child to become a responsible adult.
            ``(3) State.--The term `State' means each of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.

``SEC. 4702. PURPOSES.

    ``The purposes of this part are to make assistance available to 
promote mentoring programs for children with greatest need--
            ``(1) to assist such children in receiving support and 
        guidance from a caring adult;
            ``(2) to improve the academic performance of such children;
            ``(3) to improve interpersonal relationships between such 
        children and their peers, teachers, other adults, and family 
        members;
            ``(4) to reduce the dropout rate of such children; and
            ``(5) to reduce juvenile delinquency and involvement in 
        gangs by such children.

``SEC. 4703. GRANT PROGRAM.

    ``(a) In General.--In accordance with this section, the Secretary 
may make grants to eligible entities to assist such entities in 
establishing and supporting mentoring programs and activities that--
            ``(1) are designed to link children with greatest need 
        (particularly such children living in rural areas, high crime 
        areas, or troubled home environments, or such children 
        experiencing educational failure) with responsible adults, 
        who--
                    ``(A) have received training and support in 
                mentoring;
                    ``(B) have been screened using appropriate 
                reference checks, child and domestic abuse record 
                checks, and criminal background checks; and
                    ``(C) are interested in working with youth; and
            ``(2) are intended to achieve 1 or more of the following 
        goals:
                    ``(A) Provide general guidance to children with 
                greatest need.
                    ``(B) Promote personal and social responsibility 
                among children with greatest need.
                    ``(C) Increase participation by children with 
                greatest need in, and enhance their ability to benefit 
                from, elementary and secondary education.
                    ``(D) Discourage illegal use of drugs and alcohol, 
                violence, use of dangerous weapons, promiscuous 
                behavior, and other criminal, harmful, or potentially 
                harmful activity by children with greatest need.
                    ``(E) Encourage children with greatest need to 
                participate in community service and community 
                activities.
                    ``(F) Encourage children with greatest need to set 
                goals for themselves or to plan for their futures, 
                including encouraging such children to make graduation 
                from secondary school a goal and to make plans for 
                postsecondary education or training.
                    ``(G) Discourage involvement of children with 
                greatest need in gangs.
    ``(b) Eligible Entities.--Each of the following is an entity 
eligible to receive a grant under subsection (a):
            ``(1) A local educational agency.
            ``(2) A nonprofit, community-based organization.
            ``(3) A partnership between an agency referred to in 
        paragraph (1) and an organization referred to in paragraph (2).
    ``(c) Use of Funds.--
            ``(1) In general.--Each entity receiving a grant under this 
        section shall use the grant funds for activities that establish 
        or implement a mentoring program, including--
                    ``(A) hiring of mentoring coordinators and support 
                staff;
                    ``(B) providing for the professional development of 
                mentoring coordinators and support staff;
                    ``(C) recruitment, screening, and training of adult 
                mentors;
                    ``(D) reimbursement of schools, if appropriate, for 
                the use of school materials or supplies in carrying out 
                the program;
                    ``(E) dissemination of outreach materials;
                    ``(F) evaluation of the program using 
                scientifically based methods; and
                    ``(G) such other activities as the Secretary may 
                reasonably prescribe by rule.
            ``(2) Prohibited uses.--Notwithstanding paragraph (1), an 
        entity receiving a grant under this section may not use the 
        grant funds--
                    ``(A) to directly compensate mentors;
                    ``(B) to obtain educational or other materials or 
                equipment that would otherwise be used in the ordinary 
                course of the entity's operations;
                    ``(C) to support litigation of any kind; or
                    ``(D) for any other purpose reasonably prohibited 
                by the Secretary by rule.
    ``(d) Term of Grant.--Each grant made under this section shall be 
available for expenditure for a period of 3 years.
    ``(e) Application.--Each eligible entity seeking a grant under this 
section shall submit to the Secretary an application that includes--
            ``(1) a description of the mentoring plan the applicant 
        proposes to carry out with such grant;
            ``(2) information on the children expected to be served by 
        the mentoring program for which such grant is sought;
            ``(3) a description of the mechanism that applicant will 
        use to match children with mentors based on the needs of the 
        children;
            ``(4) an assurance that no mentor will be assigned to 
        mentor so many children that the assignment would undermine 
        either the mentor's ability to be an effective mentor or the 
        mentor's ability to establish a close relationship (a one-on-
        one relationship, where practicable) with each mentored child;
            ``(5) an assurance that mentoring programs will provide 
        children with a variety of experiences and support, including--
                    ``(A) emotional support;
                    ``(B) academic assistance; and
                    ``(C) exposure to experiences that children might 
                not otherwise encounter on their own;
            ``(6) an assurance that mentoring programs will be 
        monitored to ensure that each child assigned a mentor benefits 
        from that assignment and that there will be a provision for the 
        assignment of a new mentor if the relationship between the 
        original mentor is not beneficial to the child;
            ``(7) information on the method by which mentors and 
        children will be recruited to the mentor program;
            ``(8) information on the method by which prospective 
        mentors will be screened;
            ``(9) information on the training that will be provided to 
        mentors; and
            ``(10) information on the system that the applicant will 
        use to manage and monitor information relating to the program's 
        reference checks, child and domestic abuse record checks, and 
        criminal background checks and to its procedure for matching 
        children with mentors.
    ``(f) Selection.--
            ``(1) Competitive basis.--In accordance with this 
        subsection, the Secretary shall select grant recipients from 
        among qualified applicants on a competitive basis.
            ``(2) Priority.--In selecting grant recipients under 
        paragraph (1), the Secretary shall give priority to each 
        applicant that--
                    ``(A) serves children with greatest need living in 
                rural areas, high crime areas, or troubled home 
                environments, or who attend schools with violence 
                problems;
                    ``(B) provides background screening of mentors, 
                training of mentors, and technical assistance in 
                carrying out mentoring programs;
                    ``(C) proposes a mentoring program under which each 
                mentor will be assigned to not more children than the 
                mentor can serve effectively; or
                    ``(D) proposes a school-based mentoring program.
            ``(3) Other considerations.--In selecting grant recipients 
        under paragraph (1), the Secretary shall also consider--
                    ``(A) the degree to which the location of the 
                programs proposed by each applicant contributes to a 
                fair distribution of programs with respect to urban and 
                rural locations;
                    ``(B) the quality of the mentoring programs 
                proposed by each applicant, including--
                            ``(i) the resources, if any, the applicant 
                        will dedicate to providing children with 
                        opportunities for job training or postsecondary 
                        education;
                            ``(ii) the degree to which parents, 
                        teachers, community-based organizations, and 
                        the local community have participated, or will 
                        participate, in the design and implementation 
                        of the applicant's mentoring program;
                            ``(iii) the degree to which the applicant 
                        can ensure that mentors will develop 
                        longstanding relationships with the children 
                        they mentor;
                            ``(iv) the degree to which the applicant 
                        will serve children with greatest need in the 
                        4th, 5th, 6th, 7th, and 8th grades; and
                            ``(v) the degree to which the program will 
                        continue to serve children from the 4th grade 
                        through graduation from secondary school; and
                    ``(C) the capability of each applicant to 
                effectively implement its mentoring program.
            ``(4) Grant to each state.--Notwithstanding any other 
        provision of this subsection, in selecting grant recipients 
        under paragraph (1), the Secretary shall select not less than 1 
        grant recipient from each State for which there is a qualified 
        applicant.
    ``(g) Model Screening Guidelines.--
            ``(1) In general.--Based on model screening guidelines 
        developed by the Office of Juvenile Programs of the Department 
        of Justice, the Secretary shall develop and distribute to 
        program participants specific model guidelines for the 
        screening of mentors who seek to participate in programs to be 
        assisted under this part.
            ``(2) Background checks.--The guidelines developed under 
        this subsection shall include, at a minimum, a requirement that 
        potential mentors be subject to reference checks, child and 
        domestic abuse record checks, and criminal background checks.

``SEC. 4704. STUDY BY GENERAL ACCOUNTING OFFICE.

    ``(a) In General.--The Comptroller General of the United States 
shall conduct a study to identify successful school-based mentoring 
programs, and the elements, policies, or procedures of such programs 
that can be replicated.
    ``(b) Report.--Not later than 3 years after the date of the 
enactment of this part, the Comptroller General shall submit a report 
to the Secretary and Congress containing the results of the study 
conducted under this section.
    ``(c) Use of Information.--The Secretary shall use information 
contained in the report referred to in subsection (b)--
            ``(1) to improve the quality of existing mentoring programs 
        assisted under this part and other mentoring programs assisted 
        under this Act; and
            ``(2) to develop models for new programs to be assisted or 
        carried out under this Act.

``SEC. 4705. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out section 4703 
$50,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of fiscal years 2003 through 2006.''.
    (b) Grant for Training and Technical Support.--
            (1) In general.--The Secretary of Education shall make a 
        grant, in such amount as the Secretary considers appropriate, 
        to Big Brothers Big Sisters of America for the purpose of 
        providing training and technical support to grant recipients 
        under part E of title IV of the Elementary and Secondary 
        Education Act of 1965, as added by subsection (a), through the 
        existing system regional mentoring development centers 
        specified in paragraph (2).
            (2) Regional mentoring development centers.--The regional 
        mentoring development centers referred to in this paragraph are 
        regional mentoring development centers located as follows:
                    (A) In Phoenix, Arizona.
                    (B) In Atlanta, Georgia.
                    (C) In Boston, Massachusetts.
                    (D) In St. Louis, Missouri.
                    (E) In Columbus, Ohio.
                    (F) In Philadelphia, Pennsylvania.
                    (G) In Dallas, Texas.
                    (H) In Seattle, Washington.
            (3) Purpose.--The purpose of the training and technical 
        support provided through the grant under this subsection is to 
        enable grant recipients to design, develop, and implement 
        quality mentoring programs with the capacity to be sustained 
        beyond the term of the grant.
            (4) Services.--The training and technical support provided 
        through the grant under this subsection shall include--
                    (A) professional training for staff;
                    (B) program development and management;
                    (C) strategic fund development;
                    (D) mentor development; and
                    (E) marketing and communications.
            (5) Funding.--Amounts the grant under this subsection shall 
        be derived from the amount authorized to be appropriated by 
        section 4705 of the Elementary and Secondary Education Act of 
        1965, as added by subsection (a), for fiscal year 2002.

SEC. 409. STUDY CONCERNING THE HEALTH AND LEARNING IMPACTS OF 
              DILAPIDATED OR ENVIRONMENTALLY UNHEALTHY PUBLIC SCHOOL 
              BUILDINGS ON AMERICA'S CHILDREN AND THE HEALTHY AND HIGH 
              PERFORMANCE SCHOOLS PROGRAM.

    Title IV, as amended by this title, is further amended by adding at 
the end the following:

                   ``PART H--MISCELLANEOUS PROVISIONS

``SEC. 4801. STUDY CONCERNING THE HEALTH AND LEARNING IMPACTS OF 
              DILAPIDATED OR ENVIRONMENTALLY UNHEALTHY PUBLIC SCHOOL 
              BUILDINGS ON AMERICA'S CHILDREN.

    ``(a) Study Authorized.--The Secretary of Education, in conjunction 
with the Director of the Centers for Disease Control and Prevention and 
in consultation with the Administrator of the Environmental Protection 
Agency and the Secretary of Energy, shall conduct a study on the health 
and learning impacts of dilapidated or environmentally unhealthy public 
school buildings on children that have attended or are attending such 
schools.
    ``(b) Study Specifications.--The following information shall be 
included in the study conducted under subsection (a):
            ``(1) The characteristics of public elementary and 
        secondary school buildings that contribute to unhealthy school 
        environments, including the prevalence of such characteristics 
        in public elementary and secondary school buildings. Such 
        characteristics may include school buildings that--
                    ``(A) have been built on contaminated property;
                    ``(B) have poor in-door air quality;
                    ``(C) have high occurrences of mold;
                    ``(D) have ineffective ventilation, heating or 
                cooling systems, inadequate lighting, drinking water 
                that does not meet health-based standards, infestations 
                of rodents, insects, or other animals that may carry or 
                cause disease;
                    ``(E) have dust or debris from crumbling structures 
                or construction efforts; and
                    ``(F) have been subjected to use of pesticides, 
                insecticides, chemicals, or cleaners, lead-based paint, 
                or asbestos or have radon or other hazardous substances 
                prohibited by Federal or State codes.
            ``(2) The health and learning impacts of dilapidated or 
        environmental unhealthy public school buildings on students 
        that are attending or that have attended a school described in 
        subsection (a), including information on the rates of such 
        impacts where available. Such health impacts may include higher 
        than expected incidence of injury, infectious disease, or 
        chronic disease, such as asthma, allergies, elevated blood lead 
        levels, behavioral disorders, or ultimately cancer. Such 
        learning impacts may include lower levels of student 
        achievement, inability of students to concentrate, and other 
        educational indicators.
            ``(3) Recommendations to Congress on how to assist schools 
        that are out of compliance with Federal or State codes or in 
        need of assistance to achieve healthy and safe school 
        environments, how to improve the overall monitoring of public 
        school building health, and a cost estimate of bringing all 
        public schools up to such standards.
            ``(4) The identification of the existing gaps in 
        information regarding the health of public elementary and 
        secondary school buildings and the health and learning impacts 
        on students that attend dilapidated or environmentally 
        unhealthy public schools, including recommendations for 
        obtaining such information.
            ``(5) The capacity (such as the district bonded 
        indebtedness or the indebtedness authorized by the district 
        electorate and payable from the general property taxes levied 
        by the district) of public schools that are dilapidated or 
        environmentally unhealthy to provide additional funds to meet 
        some or all of the school's renovation, repair, or construction 
        needs.
            ``(6) The degree to which funds expended by public schools 
        to implement improvements or to address the conditions examined 
        under this study are, or have been, appropriately managed by 
        the legally responsible entities.
    ``(c) Study Completion.--The study under subsection (a) shall be 
completed by the earlier of--
            ``(1) not later than 18 months after the date of enactment 
        of this Act; or
            ``(2) not later than December 31, 2002.
    ``(d) Public Dissemination.--The Secretary shall make the study 
under this section available for public consumption through the 
Educational Resources Information Center National Clearinghouse for 
Educational Facilities of the Department of Education.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated $2,000,000 for fiscal year 2002 for the conduct of the 
study under subsection (a).

``SEC. 4802. HEALTHY AND HIGH PERFORMANCE SCHOOLS PROGRAM.

    ``(a) Short Title.--This section may be cited as the `Healthy and 
High Performance Schools Act of 2001'.
    ``(b) Purpose.--It is the purpose of this section to assist local 
educational agencies in the production of high performance elementary 
school and secondary school buildings that are energy-efficient, and 
environmentally healthy.
    ``(c) Program Establishment and Administration.--
            ``(1) Program.--There is established in the Department of 
        Education the High Performance Schools Program (in this section 
        referred to as the `Program').
            ``(2) Grants.--The Secretary, in consultation with the 
        Secretary of Energy and the Administrator of the Environmental 
        Protection Agency, may, through the Program, award grants to 
        State educational agencies to permit such State educational 
        agencies to carry out paragraph (3).
            ``(3) State use of funds.--
                    ``(A) Subgrants.--
                            ``(i) In general.--A State educational 
                        agency receiving a grant under this section 
                        shall use the grant funds made available under 
                        subsection (d)(1)(A) to award subgrants to 
                        local educational agencies to permit such local 
                        educational agencies to carry out the 
                        activities described in paragraph (4).
                            ``(ii) Limitation.--A State educational 
                        agency shall award subgrants under clause (i) 
                        to the neediest local educational agencies as 
                        determined by the State and that have made a 
                        commitment to use the subgrant funds to develop 
                        healthy, high performance school buildings in 
                        accordance with the plan developed and approved 
                        pursuant to clause (iii)(I).
                            ``(iii) Implementation.--
                                    ``(I) Plans.--A State educational 
                                agency shall award subgrants under 
                                subparagraph (A) only to local 
                                educational agencies that, in 
                                consultation with the State educational 
                                agency and State offices with 
                                responsibilities relating to energy and 
                                health, have developed plans that the 
                                State educational agency determines to 
                                be feasible and appropriate in order to 
                                achieve the purposes for which such 
                                subgrants are made.
                                    ``(II) Supplementing grant funds.--
                                The State educational agency shall 
                                encourage qualifying local educational 
                                agencies to supplement their subgrant 
                                funds with funds from other sources in 
                                the implementation of their plans.
                    ``(B) Administration.--A State educational agency 
                receiving a grant under this section shall use the 
                grant funds made available under subsection (d)(1)(B)--
                            ``(i) to evaluate compliance by local 
                        educational agencies with the requirements of 
                        this section;
                            ``(ii) to distribute information and 
                        materials on healthy, high performance school 
                        buildings for both new and existing facilities;
                            ``(iii) to organize and conduct programs 
                        for school board members, school district 
                        personnel, and others to disseminate 
                        information on healthy, high performance school 
                        buildings;
                            ``(iv) to obtain technical services and 
                        assistance in planning and designing healthy, 
                        high performance school buildings; and
                            ``(v) to collect and monitor information 
                        pertaining to the healthy, high performance 
                        school building projects funded under this 
                        section.
            ``(4) Local use of funds.--
                    ``(A) In general.--A subgrant received by a local 
                educational agency under paragraph (3)(A) shall be used 
                for renovation projects that--
                            ``(i) achieve energy-efficiency performance 
                        that reduces energy use to at least 30 percent 
                        below that of a school constructed in 
                        compliance with standards prescribed in Chapter 
                        8 of the 2000 International Energy Conservation 
                        Code, or a similar State code intended to 
                        achieve substantially equivalent results; and
                            ``(ii) achieve environmentally healthy 
                        schools in compliance with Federal and State 
                        codes intended to achieve healthy and safe 
                        school environments.
                    ``(B) Existing buildings.--A local educational 
                agency receiving a subgrant under paragraph (3)(A) for 
                renovation of existing school buildings shall use such 
                subgrant funds--
                            ``(i) to achieve energy efficiency 
                        performance that reduces energy use below the 
                        school's baseline consumption, assuming a 3-
                        year, weather-normalized average for 
                        calculating such baseline; and
                            ``(ii) to help bring schools into 
                        compliance with Federal and State health and 
                        safety standards.
    ``(d) Allocation of Funds.--
            ``(1) In general.--A State receiving a grant under this 
        section shall use--
                    ``(A) not less than 70 percent of such grant funds 
                to carry out subsection (c)(3)(A); and
                    ``(B) not less than 15 percent of such grant funds 
                to carry out subsection (c)(3)(B).
            ``(2) Reservation.--The Secretary may reserve up to 1 
        percent per year from amounts appropriated under subsection (f) 
        to assist State educational agencies in coordinating and 
        implementing the Program.
    ``(e) Report to Congress.--
            ``(1) In general.--The Secretary shall conduct a biennial 
        review of State actions implementing this section, and shall 
        report to Congress on the results of such reviews.
            ``(2) Reviews.--In conducting such reviews, the Secretary 
        shall assess the effectiveness of the calculation procedures 
        used by State educational agencies in establishing eligibility 
        of local educational agencies for subgrants under this section, 
        and may assess other aspects of the Program to determine 
        whether the aspects have been effectively implemented.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out this section--
            ``(1) $50,000,000 for fiscal year 2002; and
            ``(2) such sums as may be necessary for each of fiscal 
        years 2003 through 2011.
    ``(g) Definitions.--In this section:
            ``(1) Healthy, high performance school building.--The term 
        `healthy, high performance school building' means a school 
        building which, in its design, construction, operation, and 
        maintenance, maximizes use of renewable energy and energy-
        efficient practices, is cost-effective, uses affordable, 
        environmentally preferable, durable materials, enhances indoor 
        environmental quality, and protects and conserves water.
            ``(2) Renewable energy.--The term `renewable energy' means 
        energy produced by solar, wind, geothermal, hydroelectric, or 
        biomass power.
    ``(h) Limitations.--No funds received under this section may be 
used for--
            ``(1) payment of maintenance of costs in connection with 
        any projects constructed in whole or in part with Federal funds 
        provided under this Act;
            ``(2) the construction of new school facilities;
            ``(3) stadiums or other facilities primarily used for 
        athletic contests or exhibitions or other events for which 
        admission is charged to the general public.

SEC. 410. AMENDMENT TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT.

    Part D of the Individuals with Disabilities Education Act (20 
U.S.C. 1451 et seq.) is amended by adding at the end the following:

      ``Chapter 3--Improving Early Intervention, Educational, and 
   Transitional Services and Results for Children with Disabilities 
               Through the Provision of Certain Services

``SEC. 691. FINDINGS.

    ``Congress makes the following findings:
            ``(1) Approximately 1,000,000 children and youth in the 
        United States have low-incidence disabilities which affects the 
        hearing, vision, movement, emotional, and intellectual 
        capabilities of such children and youth.
            ``(2) There are 15 States that do not offer or maintain 
        teacher training programs for any of the 3 categories of low-
        incidence disabilities. The 3 categories are deafness, 
        blindness, and severe disabilities.
            ``(3) There are 38 States in which teacher training 
        programs are not offered or maintained for 1 or more of the 3 
        categories of low-incidence disabilities.
            ``(4) The University of Northern Colorado is in a unique 
        position to provide expertise, materials, and equipment to 
        other schools and educators across the Nation to train current 
        and future teachers to educate individuals that are challenged 
        by low-incidence disabilities.

``SEC. 692. NATIONAL CENTER FOR LOW-INCIDENCE DISABILITIES.

    ``In order to fill the national need for teachers trained to 
educate children who are challenged with low-incidence disabilities, 
the University of Northern Colorado shall be designated as a National 
Center for Low-Incidence Disabilities.

``SEC. 693. SPECIAL EDUCATION TEACHER TRAINING PROGRAMS.

    ``(a) Grant.--The Secretary shall award a grant to the University 
of Northern Colorado to enable such university to provide to 
institutions of higher education across the Nation such services that 
are offered under the special education teacher training program 
carried out by such university, such as providing educational materials 
or other information necessary in order to aid in such teacher 
training.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, $2,000,000 for fiscal year 
2002, and $1,000,000 for each of the fiscal years 2003 through 2005.''.

             TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

SEC. 501. PUBLIC SCHOOL CHOICE AND FLEXIBILITY.

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

            ``TITLE V--PUBLIC SCHOOL CHOICE AND FLEXIBILITY

                     ``PART A--PUBLIC SCHOOL CHOICE

                      ``Subpart 1--Charter Schools

``SEC. 5111. PURPOSE.

    ``It is the purpose of this subpart to increase national 
understanding of the charter schools model by--
            ``(1) providing financial assistance for the planning, 
        program design and initial implementation of charter schools;
            ``(2) evaluating the effects of such schools, including the 
        effects on students, student achievement, staff, and parents; 
        and
            ``(3) expanding the number of high-quality charter schools 
        available to students across the Nation.

``SEC. 5112. PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary may award grants to State 
educational agencies having applications approved pursuant to section 
5113 to enable such agencies to conduct a charter school grant program 
in accordance with this subpart.
    ``(b) Special Rule.--If a State educational agency elects not to 
participate in the program authorized by this subpart or does not have 
an application approved under section 5113, the Secretary may award a 
grant to an eligible applicant that serves such State and has an 
application approved pursuant to section 5113(c).
    ``(c) Program Periods.--
            ``(1) Grants to states.--Grants awarded to State 
        educational agencies under this subpart shall be awarded for a 
        period of not more than 3 years.
            ``(2) Grants to eligible applicants.--Grants awarded by the 
        Secretary to eligible applicants or subgrants awarded by State 
        educational agencies to eligible applicants under this subpart 
        shall be awarded for a period of not more than 3 years, of 
        which the eligible applicant may use--
                    ``(A) not more than 18 months for planning and 
                program design;
                    ``(B) not more than 2 years for the initial 
                implementation of a charter school; and
                    ``(C) not more than 2 years to carry out 
                dissemination activities described in section 
                5114(f)(6)(B).
    ``(d) Limitation.--A charter school may not receive--
            ``(1) more than one grant for activities described in 
        subparagraphs (A) and (B) of subsection (c)(2); or
            ``(2) more than one grant for activities under subparagraph 
        (C) of subsection (c)(2).
    ``(e) Priority Treatment.--
            ``(1) In general.--In awarding grants under this subpart 
        for fiscal year 2002 or any succeeding fiscal year from any 
        funds appropriated under section 5121, the Secretary shall give 
        priority to States to the extent that the States meet the 
        criteria described in paragraph (2) and one or more of the 
        criteria described in subparagraph (A), (B), or (C) of 
        paragraph (3).
            ``(2) Review and evaluation priority criteria.--The 
        criteria referred to in paragraph (1) is that the State 
        provides for periodic review and evaluation by the authorized 
        public chartering agency of each charter school, at least once 
        every 5 years unless required more frequently by State law, to 
        determine whether the charter school is meeting the terms of 
        the school's charter, and is meeting or exceeding the academic 
        performance requirements and goals for charter schools as set 
        forth under State law or the school's charter.
            ``(3) Priority criteria.--The criteria referred to in 
        paragraph (1) are the following:
                    ``(A) The State has demonstrated progress, in 
                increasing the number of high quality charter schools 
                that are held accountable in the terms of the schools' 
                charters for meeting clear and measurable objectives 
                for the educational progress of the students attending 
                the schools, in the period prior to the period for 
                which a State educational agency or eligible applicant 
                applies for a grant under this subpart.
                    ``(B) The State--
                            ``(i) provides for one authorized public 
                        chartering agency that is not a local 
                        educational agency, such as a State chartering 
                        board, for each individual or entity seeking to 
                        operate a charter school pursuant to such State 
                        law; or
                            ``(ii) in the case of a State in which 
                        local educational agencies are the only 
                        authorized public chartering agencies, allows 
                        for an appeals process for the denial of an 
                        application for a charter school.
                    ``(C) The State ensures that each charter school 
                has a high degree of autonomy over the charter school's 
                budgets and expenditures.
    ``(f) Amount Criteria.--In determining the amount of a grant to be 
awarded under this subpart to a State educational agency, the Secretary 
shall take into consideration the number of charter schools that are 
operating, or are approved to open, in the State.

``SEC. 5113. APPLICATIONS.

    ``(a) Applications From State Agencies.--Each State educational 
agency desiring a grant from the Secretary under this subpart shall 
submit to the Secretary an application at such time, in such manner, 
and containing or accompanied by such information as the Secretary may 
require.
    ``(b) Contents of a State Educational Agency Application.--Each 
application submitted pursuant to subsection (a) shall--
            ``(1) describe the objectives of the State educational 
        agency's charter school grant program and a description of how 
        such objectives will be fulfilled, including steps taken by the 
        State educational agency to inform teachers, parents, and 
        communities of the State educational agency's charter school 
        grant program; and
            ``(2) describe how the State educational agency--
                    ``(A) will inform each charter school in the State 
                regarding--
                            ``(i) Federal funds that the charter school 
                        is eligible to receive; and
                            ``(ii) Federal programs in which the 
                        charter school may participate;
                    ``(B) will ensure that each charter school in the 
                State receives the charter school's commensurate share 
                of Federal education funds that are allocated by 
                formula each year, including during the first year of 
                operation of the charter school; and
                    ``(C) will disseminate best or promising practices 
                of charter schools to each local educational agency in 
                the State; and
            ``(3) contain assurances that the State educational agency 
        will require each eligible applicant desiring to receive a 
        subgrant to submit an application to the State educational 
        agency containing--
                    ``(A) a description of the educational program to 
                be implemented by the proposed charter school, 
                including--
                            ``(i) how the program will enable all 
                        students to meet challenging State student 
                        performance standards;
                            ``(ii) the grade levels or ages of children 
                        to be served; and
                            ``(iii) the curriculum and instructional 
                        practices to be used;
                    ``(B) a description of how the charter school will 
                be managed;
                    ``(C) a description of--
                            ``(i) the objectives of the charter school; 
                        and
                            ``(ii) the methods by which the charter 
                        school will determine its progress toward 
                        achieving those objectives;
                    ``(D) a description of the administrative 
                relationship between the charter school and the 
                authorized public chartering agency;
                    ``(E) a description of how parents and other 
                members of the community will be involved in the 
                planning, program design and implementation of the 
                charter school;
                    ``(F) a description of how the authorized public 
                chartering agency will provide for continued operation 
                of the school once the Federal grant has expired, if 
                such agency determines that the school has met the 
                objectives described in subparagraph (C)(i);
                    ``(G) a request and justification for waivers of 
                any Federal statutory or regulatory provisions that the 
                applicant believes are necessary for the successful 
                operation of the charter school, and a description of 
                any State or local rules, generally applicable to 
                public schools, that will be waived for, or otherwise 
                not apply to, the school;
                    ``(H) a description of how the subgrant funds or 
                grant funds, as appropriate, will be used, including a 
                description of how such funds will be used in 
                conjunction with other Federal programs administered by 
                the Secretary;
                    ``(I) a description of how students in the 
                community will be--
                            ``(i) informed about the charter school; 
                        and
                            ``(ii) given an equal opportunity to attend 
                        the charter school;
                    ``(J) an assurance that the eligible applicant will 
                annually provide the Secretary and the State 
                educational agency such information as may be required 
                to determine if the charter school is making 
                satisfactory progress toward achieving the objectives 
                described in subparagraph (C)(i);
                    ``(K) an assurance that the applicant will 
                cooperate with the Secretary and the State educational 
                agency in evaluating the program assisted under this 
                subpart;
                    ``(L) a description of how a charter school that is 
                considered a local educational agency under State law, 
                or a local educational agency in which a charter school 
                is located, will comply with sections 613(a)(5) and 
                613(e)(1)(B) of the Individuals with Disabilities 
                Education Act;
                    ``(M) if the eligible applicant desires to use 
                subgrant funds for dissemination activities under 
                section 5112(c)(2)(C), a description of those 
                activities and how those activities will involve 
                charter schools and other public schools, local 
                educational agencies, developers, and potential 
                developers; and
                    ``(N) such other information and assurances as the 
                Secretary and the State educational agency may require.
    ``(c) Contents of Eligible Applicant Application.--Each eligible 
applicant desiring a grant pursuant to section 5112(b) shall submit an 
application to the State educational agency or Secretary, respectively, 
at such time, in such manner, and accompanied by such information as 
the State educational agency or Secretary, respectively, may reasonably 
require.
    ``(d) Contents of Application.--Each application submitted pursuant 
to subsection (c) shall contain--
            ``(1) the information and assurances described in 
        subparagraphs (A) through (N) of subsection (b)(3), except that 
        for purposes of this subsection subparagraphs (J), (K), and (N) 
        of such subsection shall be applied by striking `and the State 
        educational agency' each place such term appears; and
            ``(2) assurances that the State educational agency--
                    ``(A) will grant, or will obtain, waivers of State 
                statutory or regulatory requirements; and
                    ``(B) will assist each subgrantee in the State in 
                receiving a waiver under section 5114(e).

``SEC. 5114. ADMINISTRATION.

    ``(a) Selection Criteria for State Educational Agencies.--The 
Secretary shall award grants to State educational agencies under this 
subpart on the basis of the quality of the applications submitted under 
section 5113(b), after taking into consideration such factors as--
            ``(1) the contribution that the charter schools grant 
        program will make to assisting educationally disadvantaged and 
        other students to achieving State content standards and State 
        student performance standards and, in general, a State's 
        education improvement plan;
            ``(2) the degree of flexibility afforded by the State 
        educational agency to charter schools under the State's charter 
        schools law;
            ``(3) the ambitiousness of the objectives for the State 
        charter school grant program;
            ``(4) the quality of the strategy for assessing achievement 
        of those objectives;
            ``(5) the likelihood that the charter school grant program 
        will meet those objectives and improve educational results for 
        students;
            ``(6) the number of high quality charter schools created 
        under this subpart in the State; and
            ``(7) in the case of State educational agencies that 
        propose to use grant funds to support dissemination activities 
        under section 5112(c)(2)(C), the quality of those activities 
        and the likelihood that those activities will improve student 
        achievement.
    ``(b) Selection Criteria for Eligible Applicants.--The Secretary 
shall award grants to eligible applicants under this subpart on the 
basis of the quality of the applications submitted under section 
5113(c), after taking into consideration such factors as--
            ``(1) the quality of the proposed curriculum and 
        instructional practices;
            ``(2) the degree of flexibility afforded by the State 
        educational agency and, if applicable, the local educational 
        agency to the charter school;
            ``(3) the extent of community support for the application;
            ``(4) the ambitiousness of the objectives for the charter 
        school;
            ``(5) the quality of the strategy for assessing achievement 
        of those objectives;
            ``(6) the likelihood that the charter school will meet 
        those objectives and improve educational results for students; 
        and
            ``(7) in the case of an eligible applicant that proposes to 
        use grant funds to support dissemination activities under 
        section 5112(c)(2)(C), the quality of those activities and the 
        likelihood that those activities will improve student 
        achievement.
    ``(c) Peer Review.--The Secretary, and each State educational 
agency receiving a grant under this subpart, shall use a peer review 
process to review applications for assistance under this subpart.
    ``(d) Diversity of Projects.--The Secretary and each State 
educational agency receiving a grant under this subpart, shall award 
subgrants under this subpart in a manner that, to the extent possible, 
ensures that such grants and subgrants--
            ``(1) are distributed throughout different areas of the 
        Nation and each State, including urban and rural areas; and
            ``(2) will assist charter schools representing a variety of 
        educational approaches, such as approaches designed to reduce 
        school size.
    ``(e) Waivers.--The Secretary may waive any statutory or regulatory 
requirement over which the Secretary exercises administrative authority 
except any such requirement relating to the elements of a charter 
school described in section 5120(1), if--
            ``(1) the waiver is requested in an approved application 
        under this subpart; and
            ``(2) the Secretary determines that granting such a waiver 
        will promote the purpose of this subpart.
    ``(f) Use of Funds.--
            ``(1) State educational agencies.--Each State educational 
        agency receiving a grant under this subpart shall use such 
        grant funds to award subgrants to one or more eligible 
        applicants in the State to enable such applicant to plan and 
        implement a charter school in accordance with this subpart, 
        except that the State educational agency may reserve not more 
        than 10 percent of the grant funds to support dissemination 
        activities described in paragraph (6).
            ``(2) Eligible applicants.--Each eligible applicant 
        receiving funds from the Secretary or a State educational 
        agency shall use such funds to plan and implement a charter 
        school, or to disseminate information about the charter school 
        and successful practices in the charter school, in accordance 
        with this subpart.
            ``(3) Allowable activities.--An eligible applicant 
        receiving a grant or subgrant under this subpart may use the 
        grant or subgrant funds only for--
                    (A) post-award planning and design of the 
                educational program, which may include--
                            ``(i) refinement of the desired educational 
                        results and of the methods for measuring 
                        progress toward achieving those results; and
                            ``(ii) professional development of teachers 
                        and other staff who will work in the charter 
                        school; and
                    ``(B) initial implementation of the charter school, 
                which may include--
                            ``(i) informing the community about the 
                        school;
                            ``(ii) acquiring necessary equipment and 
                        educational materials and supplies;
                            ``(iii) acquiring or developing curriculum 
                        materials; and
                            ``(iv) other initial operational costs that 
                        cannot be met from State or local sources.
            ``(4) Administrative expenses.--Each State educational 
        agency receiving a grant pursuant to this subpart may reserve 
        not more than 5 percent of such grant funds for administrative 
        expenses associated with the charter school grant program 
        assisted under this subpart.
            ``(5) Revolving loan funds.--Each State educational agency 
        receiving a grant pursuant to this subpart may reserve not more 
        than 10 percent of the grant amount for the establishment of a 
        revolving loan fund. Such fund may be used to make loans to 
        eligible applicants that have received a subgrant under this 
        subpart, under such terms as may be determined by the State 
        educational agency, for the initial operation of the charter 
        school grant program of such recipient until such time as the 
        recipient begins receiving ongoing operational support from 
        State or local financing sources.
            ``(6) Dissemination.--
                    ``(A) In general.--A charter school may apply for 
                funds under this subpart, whether or not the charter 
                school has applied for or received funds under this 
                subpart for planning, program design, or 
                implementation, to carry out the activities described 
                in subparagraph (B) if the charter school has been in 
                operation for at least 3 consecutive years and has 
                demonstrated overall success, including--
                            ``(i) substantial progress in improving 
                        student achievement;
                            ``(ii) high levels of parent satisfaction; 
                        and
                            ``(iii) the management and leadership 
                        necessary to overcome initial start-up problems 
                        and establish a thriving, financially viable 
                        charter school.
                    ``(B) Activities.--A charter school described in 
                subparagraph (A) may use funds reserved under paragraph 
                (1) to assist other schools in adapting the charter 
                school's program (or certain aspects of the charter 
                school's program), or to disseminate information about 
                the charter school, through such activities as--
                            ``(i) assisting other individuals with the 
                        planning and start-up of one or more new public 
                        schools, including charter schools, that are 
                        independent of the assisting charter school and 
                        the assisting charter school's developers, and 
                        that agree to be held to at least as high a 
                        level of accountability as the assisting 
                        charter school;
                            ``(ii) developing partnerships with other 
                        public schools, including charter schools, 
                        designed to improve student performance in each 
                        of the schools participating in the 
                        partnership;
                            ``(iii) developing curriculum materials, 
                        assessments, and other materials that promote 
                        increased student achievement and are based on 
                        successful practices within the assisting 
                        charter school; and
                            ``(iv) conducting evaluations and 
                        developing materials that document the 
                        successful practices of the assisting charter 
                        school and that are designed to improve student 
                        performance in other schools.
    ``(g) Tribally Controlled Schools.--Each State that receives a 
grant under this subpart and designates a tribally controlled school as 
a charter school shall not consider payments to a school under the 
Tribally Controlled Schools Act of 1988 (25 U.S.C. 2507) in 
determining--
            ``(1) the eligibility of the school to receive any other 
        Federal, State, or local aid; or
            ``(2) the amount of such aid.

``SEC. 5115. NATIONAL ACTIVITIES.

    ``(a) In General.--The Secretary shall reserve for each fiscal year 
the greater of 5 percent or $5,000,000 of the amount appropriated to 
carry out this subpart, except that in no fiscal year shall the total 
amount so reserved exceed $8,000,000, to carry out the following 
activities:
            ``(1) To provide charter schools, either directly or 
        through State educational agencies, with--
                    ``(A) information regarding--
                            ``(i) Federal funds that charter schools 
                        are eligible to receive; and
                            ``(ii) other Federal programs in which 
                        charter schools may participate; and
                    ``(B) assistance in applying for Federal education 
                funds that are allocated by formula, including 
                assistance with filing deadlines and submission of 
                applications.
            ``(2) To provide for the completion of the 4-year national 
        study (which began in 1995) of charter schools.
            ``(3) To provide for other evaluations or studies that 
        include the evaluation of the impact of charter schools on 
        student achievement, including information regarding--
                    ``(A) students attending charter schools reported 
                on the basis of race, age, disability, gender, limited 
                English proficiency, and previous enrollment in public 
                school; and
                    ``(B) the professional qualifications of teachers 
                within a charter school and the turnover of the 
                teaching force.
            ``(4) To provide--
                    ``(A) information to applicants for assistance 
                under this subpart;
                    ``(B) assistance to applicants for assistance under 
                this subpart with the preparation of applications under 
                section 5113;
                    ``(C) assistance in the planning and startup of 
                charter schools;
                    ``(D) training and technical assistance to existing 
                charter schools; and
                    ``(E) for the dissemination to other public schools 
                of best or promising practices in charter schools.
            ``(5) To provide (including through the use of one or more 
        contracts that use a competitive bidding process) for the 
        collection of information regarding the financial resources 
        available to charter schools, including access to private 
        capital, and to widely disseminate to charter schools any such 
        relevant information and model descriptions of successful 
        programs.
    ``(b) Construction.--Nothing in this section shall be construed to 
require charter schools to collect any data described in subsection 
(a).

``SEC. 5116. FEDERAL FORMULA ALLOCATION DURING FIRST YEAR AND FOR 
              SUCCESSIVE ENROLLMENT EXPANSIONS.

    ``(a) In General.--For purposes of the allocation to schools by the 
States or their agencies of funds under part A of title I, and any 
other Federal funds which the Secretary allocates to States on a 
formula basis, the Secretary and each State educational agency shall 
take such measures not later than 6 months after the date of the 
enactment of the Charter School Expansion Act of 1998 as are necessary 
to ensure that every charter school receives the Federal funding for 
which the charter school is eligible not later than 5 months after the 
charter school first opens, notwithstanding the fact that the identity 
and characteristics of the students enrolling in that charter school 
are not fully and completely determined until that charter school 
actually opens. The measures similarly shall ensure that every charter 
school expanding its enrollment in any subsequent year of operation 
receives the Federal funding for which the charter school is eligible 
not later than 5 months after such expansion.
    ``(b) Adjustment and Late Openings.--
            ``(1) In general.--The measures described in subsection (a) 
        shall include provision for appropriate adjustments, through 
        recovery of funds or reduction of payments for the succeeding 
        year, in cases where payments made to a charter school on the 
        basis of estimated or projected enrollment data exceed the 
        amounts that the school is eligible to receive on the basis of 
        actual or final enrollment data.
            ``(2) Rule.--For charter schools that first open after 
        November 1 of any academic year, the State, in accordance with 
        guidance provided by the Secretary and applicable Federal 
        statutes and regulations, shall ensure that such charter 
        schools that are eligible for the funds described in subsection 
        (a) for such academic year have a full and fair opportunity to 
        receive those funds during the charter schools' first year of 
        operation.

``SEC. 5117. SOLICITATION OF INPUT FROM CHARTER SCHOOL OPERATORS.

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

``SEC. 5118. RECORDS TRANSFER.

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

``SEC. 5119. PAPERWORK REDUCTION.

    ``To the extent practicable, the Secretary and each authorized 
public chartering agency shall ensure that implementation of this 
subpart results in a minimum of paperwork for any eligible applicant or 
charter school.

``SEC. 5120. DEFINITIONS.

    ``In this subpart:
            ``(1) Charter school.--The term `charter school' means a 
        public school that--
                    ``(A) in accordance with a specific State statute 
                authorizing the granting of charters to schools, is 
                exempted from significant State or local rules that 
                inhibit the flexible operation and management of public 
                schools, but not from any rules relating to the other 
                requirements of this paragraph;
                    ``(B) is created by a developer as a public school, 
                or is adapted by a developer from an existing public 
                school, and is operated under public supervision and 
                direction;
                    ``(C) operates in pursuit of a specific set of 
                educational objectives determined by the school's 
                developer and agreed to by the authorized public 
                chartering agency;
                    ``(D) provides a program of elementary or secondary 
                education, or both;
                    ``(E) is nonsectarian in its programs, admissions 
                policies, employment practices, and all other 
                operations, and is not affiliated with a sectarian 
                school or religious institution;
                    ``(F) does not charge tuition;
                    ``(G) complies with the Age Discrimination Act of 
                1975, title VI of the Civil Rights Act of 1964, title 
                IX of the Education Amendments of 1972, section 504 of 
                the Rehabilitation Act of 1973, and part B of the 
                Individuals with Disabilities Education Act;
                    ``(H) is a school to which parents choose to send 
                their children, and that admits students on the basis 
                of a lottery, if more students apply for admission than 
                can be accommodated;
                    ``(I) agrees to comply with the same Federal and 
                State audit requirements as do other elementary schools 
                and secondary schools in the State, unless such 
                requirements are specifically waived for the purpose of 
                this program;
                    ``(J) meets all applicable Federal, State, and 
                local health and safety requirements;
                    ``(K) operates in accordance with State law; and
                    ``(L) has a written performance contract with the 
                authorized public chartering agency in the State that 
                includes a description of how student performance will 
                be measured in charter schools pursuant to State 
                assessments that are required of other schools and 
                pursuant to any other assessments mutually agreeable to 
                the authorized public chartering agency and the charter 
                school.
            ``(2) Developer.--The term `developer' means an individual 
        or group of individuals (including a public or private 
        nonprofit organization), which may include teachers, 
        administrators and other school staff, parents, or other 
        members of the local community in which a charter school 
        project will be carried out.
            ``(3) Eligible applicant.--The term `eligible applicant' 
        means an authorized public chartering agency participating in a 
        partnership with a developer to establish a charter school in 
        accordance with this subpart.
            ``(4) Authorized public chartering agency.--The term 
        `authorized public chartering agency' means a State educational 
        agency, local educational agency, or other public entity that 
        has the authority pursuant to State law and approved by the 
        Secretary to authorize or approve a charter school.

``SEC. 5121. AUTHORIZATION OF APPROPRIATIONS.

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

                 ``Subpart 2--Magnet Schools Assistance

``SEC. 5131. FINDINGS AND STATEMENT OF PURPOSE.

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

``SEC. 5132. PROGRAM AUTHORIZED.

    ``The Secretary, in accordance with this subpart, is authorized to 
make grants to eligible local educational agencies, and consortia of 
such agencies where appropriate, to carry out the purpose of this 
subpart for magnet schools that are--
            ``(1) part of an approved desegregation plan; and
            ``(2) designed to bring students from different social, 
        economic, ethnic, and racial backgrounds together.

``SEC. 5133. DEFINITION.

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

``SEC. 5134. ELIGIBILITY.

    ``A local educational agency, or consortium of such agencies where 
appropriate, is eligible to receive assistance under this subpart to 
carry out the purposes of this subpart if such agency or consortium--
            ``(1) is implementing a plan undertaken pursuant to a final 
        order issued by a court of the United States, or a court of any 
        State, or any other State agency or official of competent 
        jurisdiction, that requires the desegregation of minority-
        group-segregated children or faculty in the elementary schools 
        and secondary schools of such agency; or
            ``(2) without having been required to do so, has adopted 
        and is implementing, or will, if assistance is made available 
        to such local educational agency or consortium of such agencies 
        under this subpart, adopt and implement a plan that has been 
        approved by the Secretary as adequate under title VI of the 
        Civil Rights Act of 1964 for the desegregation of minority-
        group-segregated children or faculty in such schools.

``SEC. 5135. APPLICATIONS AND REQUIREMENTS.

    ``(a) Applications.--An eligible local educational agency or 
consortium of such agencies desiring to receive assistance under this 
subpart shall submit an application to the Secretary at such time, in 
such manner, and containing such information and assurances as the 
Secretary may reasonably require.
    ``(b) Information and Assurances.--Each such application shall 
include--
            ``(1) a description of--
                    ``(A) how assistance made available under this 
                subpart will be used to promote desegregation, 
                including how the proposed magnet school project will 
                increase interaction among students of different 
                social, economic, ethnic, and racial backgrounds;
                    ``(B) the manner and extent to which the magnet 
                school project will increase student achievement in the 
                instructional area or areas offered by the school;
                    ``(C) how an applicant will continue the magnet 
                school project after assistance under this subpart is 
                no longer available, including, if applicable, an 
                explanation of why magnet schools established or 
                supported by the applicant with funds under this 
                subpart cannot be continued without the use of funds 
                under this subpart;
                    ``(D) how funds under this subpart will be used to 
                implement services and activities that are consistent 
                with other programs under this Act, and other Acts, as 
                appropriate, in accordance with the provisions of 
                section 5506; and
                    ``(E) the criteria to be used in selecting students 
                to attend the proposed magnet school project; and
            ``(2) assurances that the applicant will--
                    ``(A) use funds under this subpart for the purposes 
                specified in section 5131(b);
                    ``(B) employ State certified or licensed teachers 
                in the courses of instruction assisted under this 
                subpart to teach or supervise others who are teaching 
                the subject matter of the courses of instruction;
                    ``(C) not engage in discrimination based on race, 
                religion, color, national origin, sex, or disability 
                in--
                            ``(i) the hiring, promotion, or assignment 
                        of employees of the agency or other personnel 
                        for whom the agency has any administrative 
                        responsibility;
                            ``(ii) the assignment of students to 
                        schools, or to courses of instruction within 
                        the school, of such agency, except to carry out 
                        the approved plan; and
                            ``(iii) designing or operating 
                        extracurricular activities for students;
                    ``(D) carry out a high-quality education program 
                that will encourage greater parental decisionmaking and 
                involvement; and
                    ``(E) give students residing in the local 
                attendance area of the proposed magnet school project 
                equitable consideration for placement in the project, 
                consistent with desegregation guidelines and the 
                capacity of the project to accommodate these students.
    ``(c) Special Rule.--No application may be approved under this 
section unless the Assistant Secretary of Education for Civil Rights 
determines that the assurances described in subsection (b)(2)(C) will 
be met.

``SEC. 5136. PRIORITY.

    ``In approving applications under this subpart, the Secretary shall 
give priority to applicants that--
            ``(1) demonstrate the greatest need for assistance, based 
        on the expense or difficulty of effectively carrying out an 
        approved desegregation plan and the projects for which 
        assistance is sought;
            ``(2) propose to carry out new magnet school projects, or 
        significantly revise existing magnet school projects;
            ``(3) propose to select students to attend magnet school 
        projects by methods such as lottery, rather than through 
        academic examination;
            ``(4) propose to implement innovative educational 
        approaches that are consistent with the State and local content 
        and student performance standards; and
            ``(5) propose activities, which may include professional 
        development, that will build local capacity to operate the 
        magnet school program once Federal assistance has terminated.

``SEC. 5137. USE OF FUNDS.

    ``(a) In General.--Grant funds made available under this subpart 
may be used by an eligible local educational agency or consortium of 
such agencies--
            ``(1) for planning and promotional activities directly 
        related to the development, expansion, continuation, or 
        enhancement of academic programs and services offered at magnet 
        schools;
            ``(2) for the acquisition of books, materials, and 
        equipment, including computers and the maintenance and 
        operation thereof, necessary for the conduct of programs in 
        magnet schools;
            ``(3) for the payment, or subsidization of the 
        compensation, of elementary school and secondary school 
        teachers who are certified or licensed by the State, and 
        instructional staff where applicable, who are necessary for the 
        conduct of programs in magnet schools;
            ``(4) with respect to a magnet school program offered to 
        less than the entire student population of a school, for 
        instructional activities that--
                    ``(A) are designed to make available the special 
                curriculum that is offered by the magnet school project 
                to students who are enrolled in the school but who are 
                not enrolled in the magnet school program; and
                    ``(B) further the purposes of this subpart;
            ``(5) to include professional development, which 
        professional development shall build the agency's or 
        consortium's capacity to operate the magnet school once Federal 
        assistance has terminated;
            ``(6) to enable the local educational agency or consortium 
        to have more flexibility in the administration of a magnet 
        school program in order to serve students attending a school 
        who are not enrolled in a magnet school program; and
            ``(7) to enable the local educational agency or consortium 
        to have flexibility in designing magnet schools for students at 
        all grades.
    ``(b) Special Rule.--Grant funds under this subpart may be used in 
accordance with paragraphs (2) and (3) of subsection (a) only if the 
activities described in such paragraphs are directly related to 
improving the students' reading skills or knowledge of mathematics, 
science, history, geography, English, foreign languages, art, or music, 
or to improving vocational, technological and career skills.

``SEC. 5138. PROHIBITION.

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

``SEC. 5139. LIMITATIONS.

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

``SEC. 5140. INNOVATIVE PROGRAMS.

    ``(a) In General.--From amounts reserved under subsection (d) for 
each fiscal year, the Secretary shall award grants to local educational 
agencies or consortia of such agencies described in section 5134 to 
enable such agencies or consortia to conduct innovative programs that--
            ``(1) involve innovative strategies other than magnet 
        schools, such as neighborhood or community model schools, to 
        support desegregation of schools and to reduce achievement 
        gaps;
            ``(2) assist in achieving systemic reforms and providing 
        all students the opportunity to meet challenging State and 
        local content standards and challenging State and local student 
        performance standards; and
            ``(3) include innovative educational methods and practices 
        that--
                    ``(A) are organized around a special emphasis, 
                theme, or concept; and
                    ``(B) involve extensive parent and community 
                involvement.
    ``(b) Applicability.--Sections 5131(b), 5132, 5135, 5136, and 5137, 
shall not apply to grants awarded under subsection (a).
    ``(c) Applications.--Each local educational agency or consortia of 
such agencies desiring a grant under this section shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information and assurances as the Secretary may 
reasonably require.
    ``(d) Innovative Programs.--The Secretary shall reserve not more 
than 5 percent of the funds appropriated under section 5142(a) for each 
fiscal year to award grants under this section.

``SEC. 5141. EVALUATIONS.

    ``(a) Reservation.--The Secretary may reserve not more than 2 
percent of the funds appropriated under section 5142(a) for any fiscal 
year to carry out evaluations of projects assisted under this subpart 
and to provide technical assistance for grant recipients under this 
subpart.
    ``(b) Contents.--Each evaluation described in subsection (a), at a 
minimum, shall address--
            ``(1) how and the extent to which magnet school programs 
        lead to educational quality and improvement;
            ``(2) the extent to which magnet school programs enhance 
        student access to quality education;
            ``(3) the extent to which magnet school programs lead to 
        the elimination, reduction, or prevention of minority group 
        isolation in elementary schools and secondary schools with 
        substantial proportions of minority students;
            ``(4) the extent to which magnet school programs differ 
        from other school programs in terms of the organizational 
        characteristics and resource allocations of such magnet school 
        programs; and
            ``(5) the extent to which magnet school programs continue 
        once grant assistance under this subpart is terminated.
    ``(c) Dissemination.--The Secretary shall collect and disseminate 
to the general public information on successful magnet school programs.

``SEC. 5142. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.

    ``(a) Authorization.--For the purpose of carrying out this subpart, 
there are authorized to be appropriated $125,000,000 for fiscal year 
2002 and such sums as may be necessary for each of the 6 succeeding 
fiscal years.
    ``(b) Availability of Funds for Grants to Agencies Not Previously 
Assisted.--In any fiscal year for which the amount appropriated 
pursuant to subsection (a) exceeds $75,000,000, the Secretary shall 
give priority to using such amounts in excess of $75,000,000 to award 
grants to local educational agencies or consortia of such agencies that 
did not receive a grant under this subpart in the preceding fiscal 
year.

                   ``Subpart 3--Public School Choice

``SEC. 5151. PUBLIC SCHOOL CHOICE.

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

                         ``PART B--FLEXIBILITY

            ``Subpart 1--Education Flexibility Partnerships

``SEC. 5201. SHORT TITLE.

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

``SEC. 5202. DEFINITIONS.

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

``SEC. 5203. EDUCATION FLEXIBILITY PARTNERSHIP.

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

                ``Subpart 2--Rural Education Initiative

``SEC. 5221. SHORT TITLE.

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

``SEC. 5222. PURPOSE.

    ``It is the purpose of this subpart to address the unique needs of 
rural school districts that frequently--
            ``(1) lack the personnel and resources needed to compete 
        for Federal competitive grants; and
            ``(2) receive formula allocations in amounts too small to 
        be effective in meeting their intended purposes.

``SEC. 5223. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subpart--
            ``(1) to carry out chapter 1--
                    ``(A) $150,000,000 for fiscal year 2002; and
                    ``(B) such sums as may be necessary for each of the 
                6 succeeding fiscal years; and
            ``(2) to carry out chapter 2--
                    ``(A) $150,000,000 for fiscal year 2002; and
                    ``(B) such sums as may be necessary for each of the 
                6 succeeding fiscal years.

          ``Chapter 1--Small, Rural School Achievement Program

``SEC. 5231. FORMULA GRANT PROGRAM AUTHORIZED.

    ``(a) Alternative Uses.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, an eligible local educational agency may use the 
        applicable funding, that the agency is eligible to receive from 
        the State educational agency for a fiscal year, to carry out 
        activities described in section 1114, 1115, 1116, 2123, 4116, 
        or 5331(b).
            ``(2) Notification.--An eligible local educational agency 
        shall notify the State educational agency of the local 
        educational agency's intention to use the applicable funding in 
        accordance with paragraph (1) not later than a date that is 
        established by the State educational agency for the 
        notification.
    ``(b) Eligibility.--A local educational agency shall be eligible to 
use the applicable funding in accordance with subsection (a) if--
            ``(1)(A) the total number of students in average daily 
        attendance at all of the schools served by the local 
        educational agency is less than 600; or
            ``(B) each county in which a school served by the local 
        educational agency is located has a total population density of 
        less than 10 persons per square mile; and
            ``(2) all of the schools served by the local educational 
        agency are designated with a School Locale Code of 7 or 8, as 
        determined by the Secretary, except that the Secretary may 
        waive the School Locale Code requirement of this paragraph if 
        the Secretary determines, based on certification provided by 
        the local educational agency or the State educational agency on 
        behalf of the local educational agency, that the local 
        educational agency is located in an area defined as rural by a 
        governmental agency of the State.
    ``(c) Applicable Funding.--In this section, the term `applicable 
funding' means funds provided under each of titles II and IV, and 
subpart 4 of this part.
    ``(d) Disbursal.--Each State educational agency that receives 
applicable funding for a fiscal year shall disburse the applicable 
funding to local educational agencies for alternative uses under this 
section for the fiscal year at the same time that the State educational 
agency disburses the applicable funding to local educational agencies 
that do not intend to use the applicable funding for such alternative 
uses for the fiscal year.
    ``(e) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant any other Federal, 
State, or local education funds.
    ``(f) Special Rule.--References in Federal law to funds for the 
provisions of law set forth in subsection (c) may be considered to be 
references to funds for this section.
    ``(g) Construction.--Nothing in this chapter shall be construed to 
prohibit a local educational agency that enters into cooperative 
arrangements with other local educational agencies for the provision of 
special, compensatory, or other education services pursuant to State 
law or a written agreement from entering into similar arrangements for 
the use or the coordination of the use of the funds made available 
under this section.

``SEC. 5232. COMPETITIVE GRANT PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award grants to 
eligible local educational agencies to enable the local educational 
agencies to carry out activities described in section 1114, 1115, 1116, 
2123, 2213, 2306, 4116, or 5331(b).
    ``(b) Eligibility.--A local educational agency shall be eligible to 
receive a grant under this section if--
            ``(1)(A) the total number of students in average daily 
        attendance at all of the schools served by the local 
        educational agency is less than 600; or
            ``(B) each county in which a school served by the local 
        educational agency is located has a total population density of 
        less than 10 persons per square mile; and
            ``(2) all of the schools served by the local educational 
        agency are designated with a School Locale Code of 7 or 8, as 
        determined by the Secretary, except that the Secretary may 
        waive the School Locale Code requirement of this paragraph if 
        the Secretary determines, based on certification provided by 
        the local educational agency or the State educational agency on 
        behalf of the local educational agency, that the local 
        educational agency is located in an area defined as rural by a 
        governmental agency of the State.
    ``(c) Amount.--
            ``(1) In general.--The Secretary shall award a grant to a 
        local educational agency under this section for a fiscal year 
        in an amount equal to the amount determined under paragraph (2) 
        for the fiscal year minus the total amount received under the 
        provisions of law described under section 5231(c) for the 
        fiscal year.
            ``(2) Determination.--The amount referred to in paragraph 
        (1) is equal to $100 multiplied by the total number of students 
        in excess of 50 students that are in average daily attendance 
        at the schools served by the local educational agency, plus 
        $20,000, except that the amount may not exceed $60,000.
            ``(3) Census determination.--
                    ``(A) In general.--Each local educational agency 
                desiring a grant under this section shall conduct a 
                census not later than December 1 of each year to 
                determine the number of kindergarten through grade 12 
                students in average daily attendance at the schools 
                served by the local educational agency.
                    ``(B) Submission.--Each local educational agency 
                shall submit the number described in subparagraph (A) 
                to the Secretary not later than March 1 of each year.
            ``(4) Penalty.--If the Secretary determines that a local 
        educational agency has knowingly submitted false information 
        under paragraph (3) for the purpose of gaining additional funds 
        under this section, then the local educational agency shall be 
        fined an amount equal to twice the difference between the 
        amount the local educational agency received under this 
        section, and the correct amount the local educational agency 
        would have received under this section if the agency had 
        submitted accurate information under paragraph (3).
    ``(d) Disbursal.--The Secretary shall disburse the funds awarded to 
a local educational agency under this section for a fiscal year not 
later than July 1 of that year.
    ``(e) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant any other Federal, 
State, or local education funds.
    ``(f) Construction.--Nothing in this chapter shall be construed to 
prohibit a local educational agency that enters into cooperative 
arrangements with other local educational agencies for the provision of 
special, compensatory, or other education services pursuant to State 
law or a written agreement from entering into similar arrangements for 
the use or the coordination of the use of the funds made available 
under this section.

``SEC. 5233. ACCOUNTABILITY.

    ``(a) Academic Achievement.--
            ``(1) In general.--Each local educational agency that uses 
        or receives funds under section 5231 or 5232 for a fiscal year 
        shall--
                    ``(A) administer an assessment that is used 
                statewide and is consistent with the assessment 
                described in section 1111(b), to assess the academic 
                achievement of students in the schools served by the 
                local educational agency; or
                    ``(B) in the case of a local educational agency for 
                which there is no statewide assessment described in 
                subparagraph (A), administer a test, that is selected 
                by the local educational agency, to assess the academic 
                achievement of students in the schools served by the 
                local educational agency.
            ``(2) Special rule.--Each local educational agency that 
        uses or receives funds under section 5231 or 5232 shall use the 
        same assessment or test described in paragraph (1) for each 
        year of participation in the program carried out under such 
        section.
    ``(b) State Educational Agency Determination Regarding Continuing 
Participation.--Each State educational agency that receives funding 
under the provisions of law described in section 5231(c) shall--
            ``(1) after the 3rd year that a local educational agency in 
        the State participates in a program authorized under section 
        5231 or 5232 and on the basis of the results of the assessments 
        or tests described in subsection (a), determine whether the 
        students served by the local educational agency participating 
        in the program performed better on the assessments or tests 
        after the 3rd year of the participation than the students 
        performed on the assessments or tests after the 1st year of the 
        participation;
            ``(2) permit only the local educational agencies that 
        participated in the program and served students that performed 
        better on the assessments or tests, as described in paragraph 
        (1), to continue to participate in the program for an 
        additional period of 3 years; and
            ``(3) prohibit the local educational agencies that 
        participated in the program and served students that did not 
        perform better on the assessments or tests, as described in 
        paragraph (1), from participating in the program, for a period 
        of 3 years from the date of the determination.

``SEC. 5234. RATABLE REDUCTIONS IN CASE OF INSUFFICIENT APPROPRIATIONS.

    ``(a) In General.--If the amount appropriated for any fiscal year 
and made available for grants under this chapter is insufficient to pay 
the full amount for which all agencies are eligible under this chapter, 
the Secretary shall ratably reduce each such amount.
    ``(b) Additional Amounts.--If additional funds become available for 
making payments under paragraph (1) for such fiscal year, payments that 
were reduced under subsection (a) shall be increased on the same basis 
as such payments were reduced.

            ``Chapter 2--Low-Income and Rural School Program

``SEC. 5241. DEFINITIONS.

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

``SEC. 5242. PROGRAM AUTHORIZED.

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

``SEC. 5243. STATE DISTRIBUTION OF FUNDS.

    ``(a) In General.--A State educational agency that receives a grant 
under this chapter may use the funds made available through the grant 
to award grants to eligible local educational agencies to enable the 
local educational agencies to carry out innovative assistance 
activities described in section 5331(b).
    ``(b) Local Awards.--
            ``(1) Eligibility.--A local educational agency shall be 
        eligible to receive a grant under this chapter if--
                    ``(A) 20 percent or more of the children age 5 
                through 17 that are served by the local educational 
                agency are from families with incomes below the poverty 
                line; and
                    ``(B) all of the schools served by the agency are 
                located in a community with a Locale Code of 6, 7, or 
                8, as determined by the Secretary of Education.
    ``(c) Award Basis.--The State educational agency shall award the 
grants to eligible local educational agencies--
            ``(1) on a competitive basis; or
            ``(2) according to a formula based on the number of 
        students in average daily attendance at schools served by the 
        eligible local educational agencies.

``SEC. 5244. APPLICATIONS.

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

``SEC. 5245. ACCOUNTABILITY.

    ``(a) State Reports.--Each State educational agency that receives a 
grant under this chapter shall prepare and submit to the Secretary an 
annual report. The report shall describe--
            ``(1) the method the State educational agency used to award 
        grants to eligible local educational agencies under this 
        chapter;
            ``(2) how the local educational agencies used the funds 
        provided under this chapter; and
            ``(3) the degree to which the State made progress toward 
        meeting the goals and objectives described in the application 
        submitted under section 5244.
    ``(b) Specially Qualified Agency Report.--Each specially qualified 
agency that receives a grant under this chapter shall prepare and 
submit to the Secretary an annual report. The report shall describe--
            ``(1) how such agency used the funds provided under this 
        chapter; and
            ``(2) the degree to which the agency made progress toward 
        meeting the goals and objectives described in the application 
        submitted under section 5244.
    ``(c) Academic Achievement.--
            ``(1) In general.--Each local educational agency that 
        receives a grant under this chapter for a fiscal year shall--
                    ``(A) administer an assessment that is used 
                statewide and is consistent with the assessment 
                described in section 1111(b), to assess the academic 
                achievement of students in the schools served by the 
                local educational agency; or
                    ``(B) in the case of a local educational agency for 
                which there is no statewide assessment described in 
                subparagraph (A), administer a test, that is selected 
                by the local educational agency, to assess the academic 
                achievement of students in the schools served by the 
                local educational agency.
            ``(2) Special rule.--Each local educational agency that 
        receives a grant under this chapter shall use the same 
        assessment or test described in paragraph (1) for each year of 
        participation in the program carried out under this chapter.
    ``(d) State Educational Agency Determination Regarding Continuing 
Participation.--Each State educational agency that receives a grant 
under this chapter shall--
            ``(1) after the 3rd year that a local educational agency in 
        the State participates in the program authorized under this 
        chapter and on the basis of the results of the assessments or 
        tests described in subsection (c), determine whether the 
        students served by the local educational agency participating 
        in the program performed better on the assessments or tests 
        after the 3rd year of the participation than the students 
        performed on the assessments or tests after the 1st year of the 
        participation;
            ``(2) permit only the local educational agencies that 
        participated in the program and served students that performed 
        better on the assessments or tests, as described in paragraph 
        (1), to continue to participate in the program for an 
        additional period of 3 years; and
            ``(3) prohibit the local educational agencies that 
        participated in the program and served students that did not 
        perform better on the assessments or tests, as described in 
        paragraph (1), from participating in the program for a period 
        of 3 years from the date of the determination.

``SEC. 5246. SUPPLEMENT NOT SUPPLANT.

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

``SEC. 5247. SPECIAL RULE.

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

                          ``Subpart 3--Waivers

``SEC. 5251. WAIVERS OF STATUTORY AND REGULATORY REQUIREMENTS.

    ``(a) In General.--Except as provided in subsection (c), the 
Secretary may waive any statutory or regulatory requirement of this Act 
for a State educational agency, local educational agency, Indian tribe, 
or school through a local educational agency, that--
            ``(1) receives funds under a program authorized by this 
        Act; and
            ``(2) requests a waiver under subsection (b).
    ``(b) Request for Waiver.--
            ``(1) In general.--A State educational agency, local 
        educational agency, or Indian tribe which desires a waiver 
        shall submit a waiver request to the Secretary that--
                    ``(A) identifies the Federal programs affected by 
                such requested waiver;
                    ``(B) describes which Federal requirements are to 
                be waived and how the waiving of such requirements 
                will--
                            ``(i) increase the quality of instruction 
                        for students; or
                            ``(ii) improve the academic performance of 
                        students;
                    ``(C) if applicable, describes which similar State 
                and local requirements will be waived and how the 
                waiving of such requirements will assist the local 
                educational agencies, Indian tribes or schools, as 
                appropriate, to achieve the objectives described in 
                clauses (i) and (ii) of subparagraph (B);
                    ``(D) describes specific, measurable educational 
                improvement goals and expected outcomes for all 
                affected students;
                    ``(E) describes the methods to be used to measure 
                progress in meeting such goals and outcomes; and
                    ``(F) describes how schools will continue to 
                provide assistance to the same populations served by 
                programs for which waivers are requested.
            ``(2) Additional information.--Such requests--
                    ``(A) may provide for waivers of requirements 
                applicable to State educational agencies, local 
                educational agencies, Indian tribes, and schools; and
                    ``(B) shall be developed and submitted--
                            ``(i)(I) by local educational agencies (on 
                        behalf of such agencies and schools) to State 
                        educational agencies; and
                            ``(II) by State educational agencies (on 
                        behalf of, and based upon the requests of, 
                        local educational agencies) to the Secretary; 
                        or
                            ``(ii) by Indian tribes (on behalf of 
                        schools operated by such tribes) to the 
                        Secretary.
            ``(3) General requirements.--
                    ``(A) State educational agencies.--In the case of a 
                waiver request submitted by a State educational agency 
                acting in its own behalf, the State educational agency 
                shall--
                            ``(i) provide all interested local 
                        educational agencies in the State with notice 
                        and a reasonable opportunity to comment on the 
                        request;
                            ``(ii) submit the comments to the 
                        Secretary; and
                            ``(iii) provide notice and information to 
                        the public regarding the waiver request in the 
                        manner that the applying agency customarily 
                        provides similar notices and information to the 
                        public.
                    ``(B) Local educational agencies.--In the case of a 
                waiver request submitted by a local educational agency 
                that receives funds under this Act--
                            ``(i) such request shall be reviewed by the 
                        State educational agency and be accompanied by 
                        the comments, if any, of such State educational 
                        agency; and
                            ``(ii) notice and information regarding the 
                        waiver request shall be provided to the public 
                        by the agency requesting the waiver in the 
                        manner that such agency customarily provides 
                        similar notices and information to the public.
    ``(c) Restrictions.--The Secretary shall not waive under this 
section any statutory or regulatory requirements relating to--
            ``(1) the allocation or distribution of funds to States, 
        local educational agencies, or other recipients of funds under 
        this Act;
            ``(2) maintenance of effort;
            ``(3) comparability of services;
            ``(4) use of Federal funds to supplement, not supplant, 
        non-Federal funds;
            ``(5) equitable participation of private school students 
        and teachers;
            ``(6) parental participation and involvement;
            ``(7) applicable civil rights requirements;
            ``(8) the requirement for a charter school under subpart 1 
        of part A;
            ``(9) the prohibitions regarding--
                    ``(A) State aid in section 5; or
                    ``(B) use of funds for religious worship or 
                instruction in section 10; or
            ``(10) the selection of a school attendance area or school 
        under subsections (a) and (b) of section 1113, except that the 
        Secretary may grant a waiver to allow a school attendance area 
        or school to participate in activities under part A of title I 
        if the percentage of children from low-income families in the 
        school attendance area of such school or who attend such school 
        is not less than 10 percentage points below the lowest 
        percentage of such children for any school attendance area or 
        school of the local educational agency that meets the 
        requirements of such subsections (a) and (b).
    ``(d) Duration and Extension of Waiver.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        duration of a waiver approved by the Secretary under this 
        section may be for a period not to exceed 3 years.
            ``(2) Extension.--The Secretary may extend the period 
        described in paragraph (1) if the Secretary determines that--
                    ``(A) the waiver has been effective in enabling the 
                State or affected recipients to carry out the 
                activities for which the waiver was requested and the 
                waiver has contributed to improved student performance; 
                and
                    ``(B) such extension is in the public interest.
    ``(e) Reports.--
            ``(1) Local waiver.--A local educational agency that 
        receives a waiver under this section shall at the end of the 
        second year for which a waiver is received under this section, 
        and each subsequent year, submit a report to the State 
        educational agency that--
                    ``(A) describes the uses of such waiver by such 
                agency or by schools;
                    ``(B) describes how schools continued to provide 
                assistance to the same populations served by the 
                programs for which waivers are requested; and
                    ``(C) evaluates the progress of such agency and of 
                schools in improving the quality of instruction or the 
                academic performance of students.
            ``(2) State waiver.--A State educational agency that 
        receives reports required under paragraph (1) shall annually 
        submit a report to the Secretary that is based on such reports 
        and contains such information as the Secretary may require.
            ``(3) Indian tribe waiver.--An Indian tribe that receives a 
        waiver under this section shall annually submit a report to the 
        Secretary that--
                    ``(A) describes the uses of such waiver by schools 
                operated by such tribe; and
                    ``(B) evaluates the progress of such schools in 
                improving the quality of instruction or the academic 
                performance of students.
            ``(4) Report to congress.--Beginning in fiscal year 2002 
        and each subsequent year, the Secretary shall submit to the 
        Committee on Education and the Workforce of the House of 
        Representatives and the Committee on Health, Education, Labor, 
        and Pensions of the Senate a report--
                    ``(A) summarizing the uses of waivers by State 
                educational agencies, local educational agencies, 
                Indian tribes, and schools; and
                    ``(B) describing whether such waivers--
                            ``(i) increased the quality of instruction 
                        to students; or
                            ``(ii) improved the academic performance of 
                        students.
    ``(f) Termination of Waivers.--The Secretary shall terminate a 
waiver under this section if the Secretary determines that the 
performance of the State or other recipient affected by the waiver has 
been inadequate to justify a continuation of the waiver or if the 
waiver is no longer necessary to achieve its original purposes.
    ``(g) Publication.--A notice of the Secretary's decision to grant 
each waiver under subsection (a) shall be published in the Federal 
Register and the Secretary shall provide for the dissemination of such 
notice to State educational agencies, interested parties, including 
educators, parents, students, advocacy and civil rights organizations, 
and the public.

          ``Subpart 4--Innovative Education Program Strategies

``SEC. 5301. PURPOSE; STATE AND LOCAL RESPONSIBILITY.

    ``(a) Purpose.--The purpose of this subpart is--
            ``(1) to support local education reform efforts that are 
        consistent with and support statewide education reform efforts;
            ``(2) to provide funding to enable State and local 
        educational agencies to implement promising educational reform 
        strategies;
            ``(3) to provide a continuing source of innovation and 
        educational improvement, including support for library services 
        and instructional and media materials; and
            ``(4) to develop and implement education programs to 
        improve school, student, and teacher performance, including 
        professional development activities and class size reduction 
        programs.
    ``(b) State and Local Responsibility.--The basic responsibility for 
the administration of funds made available under this subpart is within 
the State educational agencies, but it is the intent of Congress that 
the responsibility be carried out with a minimum of paperwork and that 
the responsibility for the design and implementation of programs 
assisted under this subpart will be mainly that of local educational 
agencies, school superintendents and principals, and classroom teachers 
and supporting personnel, because such agencies and individuals have 
the most direct contact with students and are most likely to be able to 
design programs to meet the educational needs of students in their own 
school districts.

``SEC. 5302. AUTHORIZATION OF APPROPRIATIONS; DURATION OF ASSISTANCE.

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

``SEC. 5303. DEFINITION OF EFFECTIVE SCHOOLS PROGRAM.

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

                 ``Chapter 1--State and Local Programs

``SEC. 5311. ALLOTMENT TO STATES.

    ``(a) Reservations.--From the sums appropriated to carry out this 
subpart in any fiscal year, the Secretary shall reserve not more than 1 
percent for payments to outlying areas to be allotted in accordance 
with their respective needs.
    ``(b) Allotment.--From the remainder of such sums, the Secretary 
shall allot to each State an amount which bears the same ratio to the 
amount of such remainder as the school-age population of the State 
bears to the school-age population of all States, except that no State 
shall receive less than an amount equal to \1/2\ of 1 percent of such 
remainder.
    ``(c) Definitions.--In this chapter:
            ``(1) School-age population.--The term `school-age 
        population' means the population aged 5 through 17.
            ``(2) State.--The term `State' includes the 50 States of 
        the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.

``SEC. 5312. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Formula.--From the sums made available each year to carry out 
this subpart, the State educational agency shall distribute not less 
than 85 percent to local educational agencies within such State 
according to the relative enrollments in public and private elementary 
schools and secondary schools within the school districts of such 
agencies, adjusted, in accordance with criteria approved by the 
Secretary, to provide higher per pupil allocations to local educational 
agencies serving the greatest numbers or percentages of children whose 
education imposes a higher than average cost per child, such as--
            ``(1) children living in areas with high concentrations of 
        low-income families;
            ``(2) children from low-income families; and
            ``(3) children living in sparsely populated areas.
    ``(b) Calculation of Enrollments.--
            ``(1) In general.--The calculation of relative enrollments 
        under subsection (a) shall be on the basis of the total of--
                    ``(A) the number of children enrolled in public 
                schools; and
                    ``(B) the number of children enrolled in private 
                nonprofit schools that desire that their children 
                participate in programs or projects assisted under this 
                subpart, for the fiscal year preceding the fiscal year 
                for which the determination is made.
            ``(2) Construction.--Nothing in this subsection shall 
        diminish the responsibility of local educational agencies to 
        contact, on an annual basis, appropriate officials from private 
        nonprofit schools within the areas served by such agencies in 
        order to determine whether such schools desire that their 
        children participate in programs assisted under this subpart.
            ``(3) Adjustments.--
                    ``(A) In general.--Relative enrollments under 
                subsection (a) shall be adjusted, in accordance with 
                criteria approved by the Secretary under subparagraph 
                (B), to provide higher per pupil allocations only to 
                local educational agencies which serve the greatest 
                numbers or percentages of--
                            ``(i) children living in areas with high 
                        concentrations of low-income families;
                            ``(ii) children from low-income families; 
                        or
                            ``(iii) children living in sparsely 
                        populated areas.
                    ``(B) Criteria.--The Secretary shall review 
                criteria submitted by a State educational agency for 
                adjusting allocations under subparagraph (A) and shall 
                approve such criteria only if the Secretary determines 
                that such criteria are reasonably calculated to produce 
                an adjusted allocation that reflects the relative needs 
                within the State's local educational agencies based on 
                the factors set forth in subparagraph (A).
    ``(c) Payment of Allocations.--
            ``(1) Distribution.--From the funds paid to a State 
        educational agency pursuant to section 5311 for a fiscal year, 
        a State educational agency shall distribute to each eligible 
        local educational agency which has submitted an application as 
        required in section 5333 the amount of such local educational 
        agency's allocation as determined under subsection (a).
            ``(2) Additional funds.--
                    ``(A) In general.--Additional funds resulting from 
                higher per pupil allocations provided to a local 
                educational agency on the basis of adjusted enrollments 
                of children described in subsection (a), may, at the 
                discretion of the local educational agency, be 
                allocated for expenditures to provide services for 
                children enrolled in public and private nonprofit 
                schools in direct proportion to the number of children 
                described in subsection (a) and enrolled in such 
                schools within the local educational agency.
                    ``(B) Requirement.--In any fiscal year, any local 
                educational agency that elects to allocate such 
                additional funds in the manner described in 
                subparagraph (A) shall allocate all additional funds to 
                schools within the local educational agency in such 
                manner.
                    ``(C) Construction.--The provisions of 
                subparagraphs (A) and (B) may not be construed to 
                require any school to limit the use of such additional 
                funds to the provision of services to specific students 
                or categories of students.

                      ``Chapter 2--State Programs

``SEC. 5321. STATE USES OF FUNDS.

    ``(a) Authorized Activities.--A State educational agency may use 
funds made available for State use under this subpart only for--
            ``(1) State administration of programs under this subpart, 
        including--
                    ``(A) supervision of the allocation of funds to 
                local educational agencies;
                    ``(B) planning, supervision, and processing of 
                State funds; and
                    ``(C) monitoring and evaluation of programs and 
                activities under this subpart;
            ``(2) support for planning, designing, and initial 
        implementation of charter schools as described in subpart 1 of 
        part A;
            ``(3) support for designing and implementation of high-
        quality yearly student assessments;
            ``(4) support for implementation of State and local 
        standards;
            ``(5) technical assistance and direct grants to local 
        educational agencies, and statewide education reform 
        activities, including effective schools programs which assist 
        local educational agencies to provide targeted assistance; and
            ``(6) support for arrangements that provide for independent 
        analysis to measure and report on school district achievement.
    ``(b) Limitations and Requirements.--Not more than 15 percent of 
funds available for State programs under this subpart in any fiscal 
year may be used for State administration under subsection (a)(1).

``SEC. 5322. STATE APPLICATIONS.

    ``(a) Application Requirements.--Any State which desires to receive 
assistance under this subpart shall submit to the Secretary an 
application which--
            ``(1) designates the State educational agency as the State 
        agency responsible for administration and supervision of 
        programs assisted under this subpart;
            ``(2) provides for a biennial submission of data on the use 
        of funds, the types of services furnished, and the students 
        served under this subpart;
            ``(3) sets forth the allocation of such funds required to 
        implement section 5342;
            ``(4) provides that the State educational agency will keep 
        such records and provide such information to the Secretary as 
        may be required for fiscal audit and program evaluation 
        (consistent with the responsibilities of the Secretary under 
        this section);
            ``(5) provides assurances that, apart from technical and 
        advisory assistance and monitoring compliance with this 
        subpart, the State educational agency has not exercised and 
        will not exercise any influence in the decisionmaking processes 
        of local educational agencies as to the expenditure made 
        pursuant to an application under section 5333;
            ``(6) contains assurances that there is compliance with the 
        specific requirements of this subpart; and
            ``(7) provides for timely public notice and public 
        dissemination of the information provided pursuant to paragraph 
        (2).
    ``(b) Period of Application.--An application filed by the State 
under subsection (a) shall be for a period not to exceed 3 years, and 
may be amended annually as may be necessary to reflect changes without 
filing a new application.
    ``(c) Audit Rule.--A local educational agency that receives less 
than an average of $10,000 under this subpart for 3 fiscal years shall 
not be audited more frequently than once every 5 years.

            ``Chapter 3--Local Innovative Education Programs

``SEC. 5331. TARGETED USE OF FUNDS.

    ``(a) General Rule.--Funds made available to local educational 
agencies under section 5312 shall be used for innovative assistance 
described in subsection (b).
    ``(b) Innovative Assistance.--
            ``(1) In general.--The innovative assistance programs 
        referred to in subsection (a) include--
                    ``(A) programs for the acquisition and use of 
                instructional and educational materials, including 
                library services and materials (including media 
                materials), assessments, and other curricular 
                materials;
                    ``(B) programs to improve teaching and learning, 
                including professional development activities, that are 
                consistent with comprehensive State and local systemic 
                education reform efforts;
                    ``(C) activities that encourage and expand 
                improvements throughout the local educational agency 
                that are designed to advance student performance;
                    ``(D) initiatives to generate, maintain, and 
                strengthen parental and community involvement, 
                including initiatives creating activities for school-
                age children and activities to meet the educational 
                needs of children aged birth through 5;
                    ``(E) programs to recruit, hire, and train 
                certified teachers (including teachers certified 
                through State and local alternative routes) in order to 
                reduce class size;
                    ``(F) programs to improve the academic performance 
                of educationally disadvantaged elementary school and 
                secondary school students, including activities to 
                prevent students from dropping out of school;
                    ``(G) programs and activities that expand learning 
                opportunities through best practice models designed to 
                improve classroom learning and teaching;
                    ``(H) programs to improve the literacy skills of 
                adults, especially the parents of children served by 
                the local educational agency, including adult education 
                and family literacy programs;
                    ``(I) technology activities related to the 
                implementation of school-based reform efforts, 
                including professional development to assist teachers 
                and other school personnel (including school library 
                media personnel) regarding how to effectively use 
                technology in the classrooms and the school library 
                media centers involved;
                    ``(J) school improvement programs or activities 
                under section 1116 or 1117;
                    ``(K) programs to provide for the educational needs 
                of gifted and talented children;
                    ``(L) programs to provide same gender schools and 
                classrooms, consistent with applicable law;
                    ``(M) service learning activities;
                    ``(N) school safety programs;
                    ``(O) activities to promote consumer, economic, and 
                personal finance education, such as disseminating and 
                encouraging the use of the best practices for teaching 
                the basic principles of economics and promoting the 
                concept of achieving financial literacy through the 
                teaching of personal financial management skills 
                (including the basic principles involved in earning, 
                spending, saving, and investing);
                    ``(P) programs that employ research-based cognitive 
                and perceptual development approaches and rely on a 
                diagnostic-prescriptive model to improve students' 
                learning of academic content at the preschool, 
                elementary, and secondary levels; and
                    ``(Q) supplemental educational services as defined 
                in section 1116(f)(6).
            ``(2) Requirements.--The innovative assistance programs 
        referred to in subsection (a) shall be--
                    ``(A) tied to promoting high academic standards;
                    ``(B) used to improve student performance; and
                    ``(C) part of an overall education reform strategy.
    ``(c) Award Criteria and Other Guidelines.--Not later than 120 days 
after the date of enactment of the Better Education for Students and 
Teachers Act, the Secretary shall issue specific award criteria and 
other guidelines for local educational agencies seeking funding for 
activities under subsection (b)(1)(L).

``SEC. 5332. ADMINISTRATIVE AUTHORITY.

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

``SEC. 5333. LOCAL APPLICATIONS.

    ``(a) Contents of Application.--A local educational agency or 
consortium of such agencies may receive an allocation of funds under 
this subpart for any year for which an application is submitted to the 
State educational agency and such application is certified to meet the 
requirements of this section. The State educational agency shall 
certify any such application if such application--
            ``(1)(A) sets forth the planned allocation of funds among 
        innovative assistance programs described in section 5331 and 
        describes the programs, projects, and activities designed to 
        carry out such innovative assistance which the local 
        educational agency intends to support, together with the 
        reasons for the selection of such programs, projects, and 
        activities; and
            ``(B) sets forth the allocation of such funds required to 
        implement section 5342;
            ``(2) describes how assistance under this subpart will 
        contribute to improving student achievement or improving the 
        quality of education for students;
            ``(3) provides assurances of compliance with the provisions 
        of this subpart, including the participation of children 
        enrolled in private, nonprofit schools in accordance with 
        section 5342;
            ``(4) provides an assurance that the local educational 
        agency will keep such records, and provide such information to 
        the State educational agency, as reasonably may be required for 
        fiscal audit and program evaluation, consistent with the 
        responsibilities of the State educational agency under this 
        subpart; and
            ``(5) provides in the allocation of funds for the 
        assistance authorized by this subpart, and in the design, 
        planning, and implementation of such programs, for systematic 
        consultation with parents of children attending elementary 
        schools and secondary schools in the area served by the local 
        educational agency, with teachers and administrative personnel 
        in such schools, and with other groups involved in the 
        implementation of this subpart (such as librarians, school 
        counselors, and other pupil services personnel) as may be 
        considered appropriate by the local educational agency.
    ``(b) Period of Application.--An application filed by a local 
educational agency under subsection (a) shall be for a period not to 
exceed 3 fiscal years, may provide for the allocation of funds to 
programs for a period of 3 years, and may be amended annually as may be 
necessary to reflect changes without filing a new application.
    ``(c) Local Educational Agency Discretion.--Subject to the 
limitations and requirements of this subpart, a local educational 
agency shall have complete discretion in determining how funds under 
this chapter shall be divided among the areas of targeted assistance. 
In exercising such discretion, a local educational agency shall ensure 
that expenditures under this chapter carry out the purposes of this 
subpart and are used to meet the educational needs within the schools 
of such local educational agency.

             ``Chapter 4--General Administrative Provisions

``SEC. 5341. MAINTENANCE OF EFFORT; FEDERAL FUNDS SUPPLEMENTARY.

    ``(a) Maintenance of Effort.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        State is entitled to receive its full allocation of funds under 
        this subpart for any fiscal year if the Secretary finds that 
        either the combined fiscal effort per student or the aggregate 
        expenditures within the State with respect to the provision of 
        free public education for the fiscal year preceding the fiscal 
        year for which the determination is made was not less than 90 
        percent of such combined fiscal effort or aggregate 
        expenditures for the second fiscal year preceding the fiscal 
        year for which the determination is made.
            ``(2) Reduction of funds.--The Secretary shall reduce the 
        amount of the allocation of funds under this subpart in any 
        fiscal year in the exact proportion to which the State fails to 
        meet the requirements of paragraph (1) by falling below 90 
        percent of both the fiscal effort per student and aggregate 
        expenditures (using the measure most favorable to the State), 
        and no such lesser amount shall be used for computing the 
        effort required under paragraph (1) for subsequent years.
            ``(3) Waivers.--The Secretary may waive, for 1 fiscal year 
        only, the requirements of this section if the Secretary 
        determines that such a waiver would be equitable due to 
        exceptional or uncontrollable circumstances such as a natural 
        disaster or a precipitous and unforeseen decline in the 
        financial resources of the State.
    ``(b) Federal Funds Supplementary.--A State or local educational 
agency may use and allocate funds received under this subpart only so 
as to supplement and, to the extent practical, increase the level of 
funds that would, in the absence of Federal funds made available under 
this subpart, be made available from non-Federal sources, and in no 
case may such funds be used so as to supplant funds from non-Federal 
sources.

``SEC. 5342. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

    ``(a) Participation on Equitable Basis.--
            ``(1) In general.--To the extent consistent with the number 
        of children in the school district of a local educational 
        agency which is eligible to receive funds under this subpart or 
        which serves the area in which a program or project assisted 
        under this subpart is located who are enrolled in private 
        nonprofit elementary and secondary schools, or with respect to 
        instructional or personnel training programs funded by the 
        State educational agency from funds made available for State 
        use, such agency, after consultation with appropriate private 
        school officials, shall provide for the benefit of such 
        children in such schools secular, neutral, and nonideological 
        services, materials, and equipment, including the participation 
        of the teachers of such children (and other educational 
        personnel serving such children) in training programs, and the 
        repair, minor remodeling, or construction of public facilities 
        as may be necessary for their provision (consistent with 
        subsection (c) of this section), or, if such services, 
        materials, and equipment are not feasible or necessary in one 
        or more such private schools as determined by the local 
        educational agency after consultation with the appropriate 
        private school officials, shall provide such other arrangements 
        as will assure equitable participation of such children in the 
        purposes and benefits of this subpart.
            ``(2) Other provisions for services.--If no program or 
        project is carried out under paragraph (1) in the school 
        district of a local educational agency, the State educational 
        agency shall make arrangements, such as through contracts with 
        nonprofit agencies or organizations, under which children in 
        private schools in such district are provided with services and 
        materials to the extent that would have occurred if the local 
        educational agency had received funds under this subpart.
            ``(3) Application of requirements.--The requirements of 
        this section relating to the participation of children, 
        teachers, and other personnel serving such children shall apply 
        to programs and projects carried out under this subpart by a 
        State or local educational agency, whether directly or through 
        grants to or contracts with other public or private agencies, 
        institutions, or organizations.
    ``(b) Equal Expenditures.--Expenditures for programs pursuant to 
subsection (a) shall be equal (consistent with the number of children 
to be served) to expenditures for programs under this subpart for 
children enrolled in the public schools of the local educational 
agency, taking into account the needs of the individual children and 
other factors which relate to such expenditures, and when funds 
available to a local educational agency under this subpart are used to 
concentrate programs or projects on a particular group, attendance 
area, or grade or age level, children enrolled in private schools who 
are included within the group, attendance area, or grade or age level 
selected for such concentration shall, after consultation with the 
appropriate private school officials, be assured equitable 
participation in the purposes and benefits of such programs or 
projects.
    ``(c) Funds.--
            ``(1) Administration of funds and property.--The control of 
        funds provided under this subpart, and title to materials, 
        equipment, and property repaired, remodeled, or constructed 
        with such funds, shall be in a public agency for the uses and 
        purposes provided in this subpart, and a public agency shall 
        administer such funds and property.
            ``(2) Provision of services.--The provision of services 
        pursuant to this subpart shall be provided by employees of a 
        public agency or through contract by such public agency with a 
        person, an association, agency, or corporation who or which, in 
        the provision of such services, is independent of such private 
        school and of any religious organizations, and such employment 
        or contract shall be under the control and supervision of such 
        public agency, and the funds provided under this subpart shall 
        not be commingled with State or local funds.
    ``(d) State Prohibition Waiver.--If by reason of any provision of 
law a State or local educational agency is prohibited from providing 
for the participation in programs of children enrolled in private 
elementary schools and secondary schools, as required by this section, 
the Secretary shall waive such requirements and shall arrange for the 
provision of services to such children through arrangements which shall 
be subject to the requirements of this section.
    ``(e) Waiver and Provision of Services.--
            ``(1) Failure to comply.--If the Secretary determines that 
        a State or a local educational agency has substantially failed 
        or is unwilling to provide for the participation on an 
        equitable basis of children enrolled in private elementary 
        schools and secondary schools as required by this section, the 
        Secretary may waive such requirements and shall arrange for the 
        provision of services to such children through arrangements 
        which shall be subject to the requirements of this section.
            ``(2) Withholding of allocation.--Pending final resolution 
        of any investigation or complaint that could result in a 
        determination under this subsection or subsection (d), the 
        Secretary may withhold from the allocation of the affected 
        State or local educational agency the amount estimated by the 
        Secretary to be necessary to pay the cost of those services.
    ``(f) Determination.--Any determination by the Secretary under this 
section shall continue in effect until the Secretary determines that 
there will no longer be any failure or inability on the part of the 
State or local educational agency to meet the requirements of 
subsections (a) and (b).
    ``(g) Payment From State Allotment.--When the Secretary arranges 
for services pursuant to this section, the Secretary shall, after 
consultation with the appropriate public and private school officials, 
pay the cost of such services, including the administrative costs of 
arranging for those services, from the appropriate allotment of the 
State under this subpart.
    ``(h) Review.--
            ``(1) Written objections.--The Secretary shall not take any 
        final action under this section until the State educational 
        agency and the local educational agency affected by such action 
        have had an opportunity, for not less than 45 days after 
        receiving written notice thereof, to submit written objections 
        and to appear before the Secretary or the Secretary's designee 
        to show cause why that action should not be taken.
            ``(2) Court action.--If a State or local educational agency 
        is dissatisfied with the Secretary's final action after a 
        proceeding under paragraph (1), such agency may, not later than 
        60 days after notice of such action, file with the United 
        States court of appeals for the circuit in which such State is 
        located a petition for review of that action. A copy of the 
        petition shall be transmitted by the clerk of the court to the 
        Secretary. The Secretary thereupon shall file in the court the 
        record of the proceedings on which the Secretary based this 
        action, as provided in section 2112 of title 28, United States 
        Code.
            ``(3) Remand to secretary.--The findings of fact by the 
        Secretary, if supported by substantial evidence, shall be 
        conclusive; but the court, for good cause shown, may remand the 
        case to the Secretary to take further evidence and the 
        Secretary may make new or modified findings of fact and may 
        modify the Secretary's previous action, and shall file in the 
        court the record of the further proceedings. Such new or 
        modified findings of fact shall likewise be conclusive if 
        supported by substantial evidence.
            ``(4) Court review.--Upon the filing of such petition, the 
        court shall have jurisdiction to affirm the action of the 
        Secretary or to set such action aside, in whole or in part. The 
        judgment of the court shall be subject to review by the Supreme 
        Court of the United States upon certiorari or certification as 
        provided in section 1254 of title 28, United States Code.
    ``(i) Prior Determination.--Any bypass determination by the 
Secretary under chapter 2 of part I of this Act (as such chapter was in 
effect on the day preceding the date of enactment of the Improving 
America's Schools Act of 1994) shall, to the extent consistent with the 
purposes of this subpart, apply to programs under this subpart.

``SEC. 5343. FEDERAL ADMINISTRATION.

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

                    ``Chapter 5--School Construction

``SEC. 5351. DEFINITIONS.

    ``In this chapter:
            ``(1) Construction.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term `construction' means--
                            ``(i) preparation of drawings and 
                        specifications for school facilities;
                            ``(ii) building new school facilities, or 
                        acquiring, remodeling, demolishing, renovating, 
                        improving, or repairing facilities to establish 
                        new school facilities; and
                            ``(iii) inspection and supervision of the 
                        construction of new school facilities.
                    ``(B) Rule.--An activity described in subparagraph 
                (A) shall be considered to be construction only if the 
                labor standards described in section 439 of the General 
                Education Provisions Act (20 U.S.C. 1232b) are applied 
                with respect to such activity.
            ``(2) School facility.--The term `school facility' means a 
        public structure suitable for use as a classroom, laboratory, 
        library, media center, or related facility the primary purpose 
        of which is the instruction of public elementary school or 
        secondary school students. The term does not include an 
        athletic stadium or any other structure or facility intended 
        primarily for athletic exhibitions, contests, or games for 
        which admission is charged to the general public.

``SEC. 5352. PROGRAM AUTHORIZED.

    ``(a) In General.--Funds made available to local educational 
agencies under section 5312 may, notwithstanding section 5331(a), be 
used to enable the local educational agencies to carry out the 
construction of new public elementary school and secondary school 
facilities.
    ``(b) Nonapplication of Provisions.--The provisions of chapter 4 
shall not apply to this chapter.

``SEC. 5353. CONDITIONS FOR USE OF FUNDS.

    ``In order to use funds for construction under this chapter a local 
educational agency shall meet the following requirements:
            ``(1) Reduce school sizes for public elementary schools and 
        secondary schools served by the local educational agency to--
                    ``(A) not more than 500 students in the case of a 
                school serving kindergarten through grade 5 students;
                    ``(B) not more than 750 students in the case of a 
                school serving grade 6 through grade 8 students; and
                    ``(C) not more than 1,000 students in the case of a 
                school serving grade 9 through grade 12 students.
            ``(2) Provide matching funds, with respect to the cost to 
        be incurred in carrying out the activities for which the grant 
        is awarded, from non-Federal sources in an amount equal to the 
        Federal funds provided under the grant.

``SEC. 5354. APPLICATIONS.

    ``(a) In General.--Each local educational agency desiring to use 
funds under this chapter shall submit an application to the State 
educational agency at such time and in such manner as the State 
educational agency may require.
    ``(b) Contents.--Each application shall contain--
            ``(1) an assurance that the grant funds will be used in 
        accordance with this chapter;
            ``(2) a brief description of the construction to be 
        conducted;
            ``(3) a cost estimate of the activities to be conducted; 
        and
            ``(4) a description of available non-Federal matching 
        funds.

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

``SEC. 5401. CONSOLIDATION OF STATE ADMINISTRATIVE FUNDS FOR ELEMENTARY 
              AND SECONDARY EDUCATION PROGRAMS.

    ``(a) Consolidation of Administrative Funds.--
            ``(1) In general.--A State educational agency may 
        consolidate the amounts specifically made available to such 
        agency for State administration under one or more of the 
        programs specified under paragraph (2) if such State 
        educational agency can demonstrate that the majority of such 
        agency's resources come from non-Federal sources.
            ``(2) Applicability.--This section applies to programs 
        under title I, those covered programs described in 
        subparagraphs (C), (D), (E), and (F) of section 3(10).
    ``(b) Use of Funds.--
            ``(1) In general.--A State educational agency shall use the 
        amount available under this section for the administration of 
        the programs included in the consolidation under subsection 
        (a).
            ``(2) Additional uses.--A State educational agency may also 
        use funds available under this section for administrative 
        activities designed to enhance the effective and coordinated 
        use of funds under the programs included in the consolidation 
        under subsection (a), such as--
                    ``(A) the coordination of such programs with other 
                Federal and non-Federal programs;
                    ``(B) the establishment and operation of peer-
                review mechanisms under this Act;
                    ``(C) the administration of this part, part D, and 
                sections 3 through 17;
                    ``(D) the dissemination of information regarding 
                model programs and practices; and
                    ``(E) technical assistance under programs specified 
                in subsection (a)(2).
    ``(c) Records.--A State educational agency that consolidates 
administrative funds under this section shall not be required to keep 
separate records, by individual program, to account for costs relating 
to the administration of programs included in the consolidation under 
subsection (a).
    ``(d) Review.--To determine the effectiveness of State 
administration under this section, the Secretary may periodically 
review the performance of State educational agencies in using 
consolidated administrative funds under this section and take such 
steps as the Secretary finds appropriate to ensure the effectiveness of 
such administration.
    ``(e) Unused Administrative Funds.--If a State educational agency 
does not use all of the funds available to such agency under this 
section for administration, such agency may use such funds during the 
applicable period of availability as funds available under one or more 
programs included in the consolidation under subsection (a).
    ``(f) Consolidation of Funds for Standards and Assessment 
Development.--In order to develop challenging State standards and 
assessments, a State educational agency may consolidate the amounts 
made available to such agency for such purposes under title I of this 
Act.

``SEC. 5402. SINGLE LOCAL EDUCATIONAL AGENCY STATES.

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

``SEC. 5403. CONSOLIDATION OF FUNDS FOR LOCAL ADMINISTRATION.

    ``(a) General Authority.--In accordance with regulations of the 
Secretary, a local educational agency, with the approval of its State 
educational agency, may consolidate and use for the administration of 
one or more covered programs for any fiscal year not more than the 
percentage, established in each covered program, of the total amount 
available to the local educational agency under such covered programs.
    ``(b) State Procedures.--Within one year from the date of enactment 
of the Improving America's Schools Act of 1994, a State educational 
agency shall, in collaboration with local educational agencies in the 
State, establish procedures for responding to requests from local 
educational agencies to consolidate administrative funds under 
subsection (a) and for establishing limitations on the amount of funds 
under covered programs that may be used for administration on a 
consolidated basis.
    ``(c) Conditions.--A local educational agency that consolidates 
administrative funds under this section for any fiscal year shall not 
use any other funds under the programs included in the consolidation 
for administration for that fiscal year.
    ``(d) Uses of Administrative Funds.--A local educational agency 
that consolidates administrative funds under this section may use such 
consolidated funds for the administration of covered programs and for 
the uses described in section 5401(b)(2).
    ``(e) Records.--A local educational agency that consolidates 
administrative funds under this section shall not be required to keep 
separate records, by individual covered program, to account for costs 
relating to the administration of covered programs included in the 
consolidation.

``SEC. 5404. ADMINISTRATIVE FUNDS STUDIES.

    ``(a) Federal Funds Study.--
            ``(1) In general.--The Secretary shall conduct a study of 
        the use of funds under this Act for the administration, by 
        State and local educational agencies, of all covered programs, 
        including the percentage of grant funds used for such purpose 
        in all covered programs.
            ``(2) State data.--Beginning in fiscal year 1995 and each 
        succeeding fiscal year thereafter, each State educational 
        agency which receives funds under title I shall submit to the 
        Secretary a report on the use of title I funds for the State 
        administration of activities assisted under title I. Such 
        report shall include the proportion of State administrative 
        funds provided under section 1903 that are expended for--
                    ``(A) basic program operation and compliance 
                monitoring;
                    ``(B) statewide program services such as 
                development of standards and assessments, curriculum 
                development, and program evaluation; and
                    ``(C) technical assistance and other direct support 
                to local educational agencies and schools.
            ``(3) Federal funds report.--The Secretary shall complete 
        the study conducted under this section not later than July 1, 
        1997, and shall submit to the President and the appropriate 
        committees of the Congress a report regarding such study within 
        30 days of the completion of such study.
            ``(4) Results.--Based on the results of the study described 
        in subsection (a)(1), which may include collection and analysis 
        of the data under paragraph (2) and section 410(b) of the 
        Improving America's Schools Act of 1994, the Secretary shall--
                    ``(A) develop a definition of what types of 
                activities constitute the administration of programs 
                under this Act by State and local educational agencies; 
                and
                    ``(B) within one year of the completion of such 
                study, promulgate final regulations or guidelines 
                regarding the use of funds for administration under all 
                programs, including the use of such funds on a 
                consolidated basis and limitations on the amount of 
                such funds that may be used for administration where 
                such limitation is not otherwise specified in law.
    ``(b) General Administrative Funds Study and Report.--Upon the date 
of completion of the pilot model data system described in section 
410(b) of the Improving America's Schools Act of 1994, the Secretary 
shall study the information obtained through the use of such data 
system and other relevant information, as well as any other data 
systems which are in use on such date that account for administrative 
expenses at the school, local educational agency, and State educational 
agency level, and shall report to the Congress not later than July 1, 
1997, regarding--
            ``(1) the potential for the reduction of administrative 
        expenses at the school, local educational agency, and State 
        educational agency levels;
            ``(2) the potential usefulness of such data system to 
        reduce such administrative expenses;
            ``(3) any other methods which may be employed by schools, 
        local educational agencies or State educational agencies to 
        reduce administrative expenses and maximize the use of funds 
        for functions directly affecting student learning; and
            ``(4) if appropriate, steps which may be taken to assist 
        schools, local educational agencies and State educational 
        agencies to account for and reduce administrative expenses.

``SEC. 5405. CONSOLIDATED SET-ASIDE FOR DEPARTMENT OF THE INTERIOR 
              FUNDS.

    ``(a) General Authority.--
            ``(1) Transfer.--The Secretary shall transfer to the 
        Department of the Interior, as a consolidated amount for 
        covered programs, the Indian education programs under part A of 
        title VII of this Act, and the education for homeless children 
        and youth program under subtitle B of title VII of the Stewart 
        B. McKinney Homeless Assistance Act, the amounts allotted to 
        the Department of the Interior under those programs.
            ``(2) Agreement.--(A) The Secretary and the Secretary of 
        the Interior shall enter into an agreement, consistent with the 
        requirements of the programs specified in paragraph (1), for 
        the distribution and use of those program funds under terms 
        that the Secretary determines best meet the purposes of those 
        programs.
            ``(B) The agreement shall--
                    ``(i) set forth the plans of the Secretary of the 
                Interior for the use of the amount transferred, and set 
                forth performance measures to assess program 
                effectiveness, including measurable goals and 
                objectives; and
                    ``(ii) be developed in consultation with Indian 
                tribes.
    ``(b) Administration.--The Department of the Interior may use not 
more than 1.5 percent of the funds consolidated under this section for 
such department's costs related to the administration of the funds 
transferred under this section.

``SEC. 5406. AVAILABILITY OF UNNEEDED PROGRAM FUNDS.

    ``With the approval of its State educational agency, a local 
educational agency that determines for any fiscal year that funds under 
a covered program (other than part A of title I) are not needed for the 
purpose of that covered program, may use such funds, not to exceed five 
percent of the total amount of such local educational agency's funds 
under that covered program, for the purpose of another covered program.

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

``SEC. 5501. PURPOSE.

    ``It is the purpose of this part to improve teaching and learning 
by encouraging greater cross-program coordination, planning, and 
service delivery under this Act and enhanced integration of programs 
under this Act with educational activities carried out with State and 
local funds.

``SEC. 5502. OPTIONAL CONSOLIDATED STATE PLANS OR APPLICATIONS.

    ``(a) General Authority.--
            ``(1) Simplification.--In order to simplify application 
        requirements and reduce the burden for State educational 
        agencies under this Act, the Secretary, in accordance with 
        subsection (b), shall establish procedures and criteria under 
        which, after consultation with the Governor, a State 
        educational agency may submit a consolidated State plan or a 
        consolidated State application meeting the requirements of this 
        section for--
                    ``(A) each of the covered programs in which the 
                State participates; and
                    ``(B) the additional programs described in 
                paragraph (2).
            ``(2) Additional programs.--After consultation with the 
        Governor, a State educational agency may also include in its 
        consolidated State plan or consolidated State application--
                    ``(A) the Even Start program under part B of title 
                I;
                    ``(B) the Prevention and Intervention Programs for 
                Youth Who Are Neglected, Delinquent, or At-Risk of 
                Dropping Out under part D of title I; and
                    ``(C) such other programs as the Secretary may 
                designate.
            ``(3) Consolidated applications and plans.--After 
        consultation with the Governor, a State educational agency that 
        submits a consolidated State plan or a consolidated State 
        application under this section shall not be required to submit 
        separate State plans or applications under any of the programs 
        to which the consolidated State plan or consolidated State 
        application under this section applies.
    ``(b) Collaboration.--
            ``(1) In general.--In establishing criteria and procedures 
        under this section, the Secretary shall collaborate with State 
        educational agencies and, as appropriate, with other State 
        agencies, local educational agencies, public and private 
        nonprofit agencies, organizations, and institutions, private 
        schools, and representatives of parents, students, and 
        teachers.
            ``(2) Contents.--Through the collaborative process 
        described in subsection (b)(1), the Secretary shall establish, 
        for each program under the Act to which this section applies, 
        the descriptions, information, assurances, and other material 
        required to be included in a consolidated State plan or 
        consolidated State application.
            ``(3) Necessary materials.--The Secretary shall require 
        only descriptions, information, assurances (including 
        assurances of compliance with applicable provisions regarding 
        participation by private school children and teachers), and 
        other materials that are absolutely necessary for the 
        consideration of the consolidated State plan or consolidated 
        State application.

``SEC. 5503. GENERAL APPLICABILITY OF STATE EDUCATIONAL AGENCY 
              ASSURANCES.

    ``(a) Assurances.--A State educational agency that submits a 
consolidated State plan or consolidated State application under this 
Act, whether separately or under section 5502, shall have on file with 
the Secretary a single set of assurances, applicable to each program 
for which such plan or application is submitted, that provides that--
            ``(1) each such program will be administered in accordance 
        with all applicable statutes, regulations, program plans, and 
        applications;
            ``(2)(A) the control of funds provided under each such 
        program and title to property acquired with program funds will 
        be in a public agency, in a nonprofit private agency, 
        institution, or organization, or in an Indian tribe if the law 
        authorizing the program provides for assistance to such 
        entities; and
            ``(B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will administer 
        such funds and property to the extent required by the 
        authorizing law;
            ``(3) the State will adopt and use proper methods of 
        administering each such program, including--
                    ``(A) the enforcement of any obligations imposed by 
                law on agencies, institutions, organizations, and other 
                recipients responsible for carrying out each program;
                    ``(B) the correction of deficiencies in program 
                operations that are identified through audits, 
                monitoring, or evaluation; and
                    ``(C) the adoption of written procedures for the 
                receipt and resolution of complaints alleging 
                violations of law in the administration of such 
                programs;
            ``(4) the State will cooperate in carrying out any 
        evaluation of each such program conducted by or for the 
        Secretary or other Federal officials;
            ``(5) the State will use such fiscal control and fund 
        accounting procedures as will ensure proper disbursement of, 
        and accounting for, Federal funds paid to the State under each 
        such program;
            ``(6) the State will--
                    ``(A) make reports to the Secretary as may be 
                necessary to enable the Secretary to perform the 
                Secretary's duties under each such program; and
                    ``(B) maintain such records, provide such 
                information to the Secretary, and afford access to the 
                records as the Secretary may find necessary to carry 
                out the Secretary's duties; and
            ``(7) before the plan or application was submitted to the 
        Secretary, the State has afforded a reasonable opportunity for 
        public comment on the plan or application and has considered 
        such comment.
    ``(b) GEPA Provision.--Section 441 of the General Education 
Provisions Act shall not apply to programs under this Act.

``SEC. 5504. ADDITIONAL COORDINATION.

    ``(a) Additional Coordination.--In order to explore ways for State 
educational agencies to reduce administrative burdens and promote the 
coordination of the education services of this Act with other health 
and social service programs administered by such agencies, the 
Secretary is directed to seek agreements with other Federal agencies 
(including the Departments of Health and Human Services, Justice, Labor 
and Agriculture) for the purpose of establishing procedures and 
criteria under which a State educational agency would submit a 
consolidated State plan or consolidated State application that meets 
the requirements of the covered programs.
    ``(b) Report.--The Secretary shall report to the relevant 
committees 6 months after the date of enactment of the Improving 
America's Schools Act of 1994.

``SEC. 5505. CONSOLIDATED LOCAL PLANS OR APPLICATIONS.

    ``(a) General Authority.--A local educational agency receiving 
funds under more than one covered program may submit plans or 
applications to the State educational agency under such programs on a 
consolidated basis.
    ``(b) Required Consolidated Plans or Applications.--A State 
educational agency that has submitted and had approved a consolidated 
State plan or application under section 5502 may require local 
educational agencies in the State receiving funds under more than one 
program included in the consolidated State plan or consolidated State 
application to submit consolidated local plans or applications under 
such programs.
    ``(c) Collaboration.--A State educational agency shall collaborate 
with local educational agencies in the State in establishing procedures 
for the submission of the consolidated State plans or consolidated 
State applications under this section.
    ``(d) Necessary Materials.--The State educational agency shall 
require only descriptions, information, assurances, and other material 
that are absolutely necessary for the consideration of the local 
educational agency plan or application.

``SEC. 5506. OTHER GENERAL ASSURANCES.

    ``(a) Assurances.--Any applicant other than a State educational 
agency that submits a plan or application under this Act, whether 
separately or pursuant to section 5504, shall have on file with the 
State educational agency a single set of assurances, applicable to each 
program for which a plan or application is submitted, that provides 
that--
            ``(1) each such program will be administered in accordance 
        with all applicable statutes, regulations, program plans, and 
        applications;
            ``(2)(A) the control of funds provided under each such 
        program and title to property acquired with program funds will 
        be in a public agency or in a nonprofit private agency, 
        institution, organization, or Indian tribe, if the law 
        authorizing the program provides for assistance to such 
        entities; and
            ``(B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will administer 
        such funds and property to the extent required by the 
        authorizing statutes;
            ``(3) the applicant will adopt and use proper methods of 
        administering each such program, including--
                    ``(A) the enforcement of any obligations imposed by 
                law on agencies, institutions, organizations, and other 
                recipients responsible for carrying out each program; 
                and
                    ``(B) the correction of deficiencies in program 
                operations that are identified through audits, 
                monitoring, or evaluation;
            ``(4) the applicant will cooperate in carrying out any 
        evaluation of each such program conducted by or for the State 
        educational agency, the Secretary or other Federal officials;
            ``(5) the applicant will use such fiscal control and fund 
        accounting procedures as will ensure proper disbursement of, 
        and accounting for, Federal funds paid to such applicant under 
        each such program;
            ``(6) the applicant will--
                    ``(A) make reports to the State educational agency 
                and the Secretary as may be necessary to enable such 
                agency and the Secretary to perform their duties under 
                each such program; and
                    ``(B) maintain such records, provide such 
                information, and afford access to the records as the 
                State educational agency or the Secretary may find 
                necessary to carry out the State educational agency's 
                or the Secretary's duties; and
            ``(7) before the application was submitted, the applicant 
        afforded a reasonable opportunity for public comment on the 
        application and has considered such comment.
    ``(b) GEPA Provision.--Section 442 of the General Education 
Provisions Act does not apply to programs under this Act.

                 ``PART E--ADVANCED PLACEMENT PROGRAMS

``SEC. 5601. SHORT TITLE.

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

``SEC. 5602. FINDINGS AND PURPOSES.

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

``SEC. 5603. FUNDING DISTRIBUTION RULE.

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

``SEC. 5604. ADVANCED PLACEMENT PROGRAM GRANTS.

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

``SEC. 5605. ONLINE ADVANCED PLACEMENT COURSES.

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

``SEC. 5606. ADVANCED PLACEMENT INCENTIVE PROGRAM.

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

``SEC. 5607. DEFINITIONS.

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

``SEC. 5608. AUTHORIZATION OF APPROPRIATIONS.

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

                    ``PART F--PERFORMANCE AGREEMENTS

``SEC. 5701. SHORT TITLE.

    ``This part may be cited as the `Performance Agreements Act'.

``SEC. 5702. PURPOSE.

    ``The purpose of this part is to create options for selected State 
educational agencies and local educational agencies--
            ``(1) to improve the academic achievement of all students 
        served by State educational agencies and local educational 
        agencies, and to focus the resources of the Federal Government 
        on that achievement;
            ``(2) to better empower parents, educators, administrators, 
        and schools to effectively address the needs of their children 
        and students;
            ``(3) to give participating State educational agencies and 
        local educational agencies greater flexibility in determining 
        how to increase their students' academic achievement and 
        implement education reforms in their schools;
            ``(4) to eliminate barriers to implementing effective State 
        and local education reform, while preserving the goals of 
        equality of opportunity for all students and accountability for 
        student progress;
            ``(5) to hold participating State educational agencies and 
        local educational agencies accountable for increasing the 
        academic achievement of all students, especially disadvantaged 
        students; and
            ``(6) to narrow achievement gaps between the lowest and 
        highest performing groups of students, particularly low-income 
        and minority students, so that no child is left behind.

``SEC. 5703. PROGRAM AUTHORITY; SELECTION OF STATE EDUCATIONAL AGENCIES 
              AND LOCAL EDUCATIONAL AGENCIES.

    ``(a) Program Authority.--
            ``(1) In general.--Except as otherwise provided in this 
        part, the Secretary shall enter into performance agreements--
                    ``(A) with State educational agencies and local 
                educational agencies that submit approvable performance 
                agreement proposals and are selected under paragraph 
                (2); and
                    ``(B) under which the agencies may consolidate and 
                use funds as described in section 5705.
            ``(2) Selection of state educational agencies and local 
        educational agencies for participation.--
                    ``(A) In general.--Subject to subparagraphs (C) and 
                (D), the Secretary shall select not more than 7 State 
                educational agencies and 25 local educational agencies 
                to enter into performance agreements under this part. 
                The State educational agencies and local educational 
                agencies shall be selected from among those State 
                educational agencies and local educational agencies 
                that--
                            ``(i) demonstrate, to the satisfaction of 
                        the Secretary, that the proposed performance 
                        agreement of the agency--
                                    ``(I) has substantial promise of 
                                meeting the requirements of this part; 
                                and
                                    ``(II) describes a plan to combine 
                                and use funds (as described in section 
                                5705(a)(1)) under the agreement to 
                                exceed, by a statistically significant 
                                amount, the State's definition of 
                                adequate yearly progress (as described 
                                in subparagraph (B)) while meeting the 
                                requirements of sections 1111 and 1116;
                            ``(ii) have developed, and are 
                        administering, the assessments described in 
                        section 1111(b)(3);
                            ``(iii) provide information in the proposed 
                        performance agreement regarding how the State 
                        educational agency--
                                    ``(I) has notified the local 
                                educational agencies within the State 
                                of the State educational agency's 
                                intent to submit a proposed performance 
                                agreement; and
                                    ``(II) consulted with the Governor 
                                of the State about the terms of the 
                                proposed performance agreement;
                            ``(iv) consulted and involved parents and 
                        educators in the development of the proposal; 
                        and
                            ``(v) provide such other information, at 
                        such time and in such manner, as the Secretary 
                        may reasonably require.
                    ``(B) Definition of adequate yearly progress.--In 
                this part the term `adequate yearly progress' means the 
                adequate yearly progress determined by the State 
                pursuant to section 1111(b)(2)(B).
                    ``(C) Geographic distribution.--If more than 7 
                State educational agencies or 25 local educational 
                agencies submit approvable performance agreements under 
                this part, then the Secretary shall select agencies for 
                performance agreements under this part in a manner that 
                ensures, to the greatest extent possible, an equitable 
                geographic distribution of such agencies selected for 
                performance agreements. In addition, if more than 25 
                local educational agencies submit approvable 
                performance agreements under this part, then the 
                Secretary shall select local educational agencies for 
                performance agreements under this part in a manner that 
                ensures an equitable distribution of such agencies 
                selected for performance agreements among such agencies 
                serving urban and rural areas.
                    ``(D) Local educational agency participation.--
                            ``(i) In general.--If a local educational 
                        agency is located in a State that does not 
                        enter into a performance agreement under 
                        subparagraph (A), then the local educational 
                        agency may be selected to enter into a 
                        performance agreement with the Secretary under 
                        subparagraph (A), but only if the local 
                        educational agency--
                                    ``(I) meets the requirements of 
                                this part that are applicable to the 
                                local educational agency pursuant to 
                                clause (iii), except as provided under 
                                clause (v);
                                    ``(II) notifies the State 
                                educational agency of the local 
                                educational agency's intent to enter 
                                into a performance agreement under this 
                                part; and
                                    ``(III) notifies the Governor of 
                                the State regarding the terms of the 
                                proposed performance agreement.
                            ``(ii) Prohibition.--In the event that a 
                        local educational agency enters into a 
                        performance agreement under this part, the 
                        State educational agency serving the State in 
                        which the local educational agency is located 
                        may not enter into a performance agreement 
                        under this part unless--
                                    ``(I) the State educational agency 
                                has consulted the local educational 
                                agency; and
                                    ``(II) the term of the local 
                                educational agency's original 
                                performance agreement has ended.
                            ``(iii) Applicability.--Except as provided 
                        in clauses (iv) and (v), each requirement and 
                        limitation under this part that is applicable 
                        to a State educational agency with respect to a 
                        performance agreement under this part shall be 
                        applicable to a local educational agency with 
                        respect to a performance agreement under this 
                        section, to the extent the Secretary determines 
                        appropriate.
                            ``(iv) Local educational agency waiver.--
                                    ``(I) Waiver.--If a local 
                                educational agency does not wish to 
                                participate in the State educational 
                                agency's performance agreement, then 
                                the local educational agency shall 
                                apply to the State educational agency 
                                for a waiver within 45 days of 
                                notification from the State educational 
                                agency of the State educational 
                                agency's desire to participate in a 
                                performance agreement.
                                    ``(II) Response.--A State 
                                educational agency that receives a 
                                waiver application under subclause (I) 
                                shall respond to the waiver application 
                                within 45 days of receipt of the 
                                application. In order to obtain the 
                                waiver, the local educational agency 
                                shall reasonably demonstrate to the 
                                State educational agency that the local 
                                educational agency would be better able 
                                to exceed adequate yearly progress by 
                                opting out of the performance agreement 
                                and remaining subject to the 
                                requirements of the affected Federal 
                                programs. If the State educational 
                                agency denies the waiver, the State 
                                educational agency shall explain to the 
                                local educational agency the State 
                                educational agency's reasons for the 
                                denial.
                                    ``(III) Applicability.--If a local 
                                educational agency receives a waiver 
                                under this clause, then the agency 
                                shall receive funds and be subject to 
                                the provisions of Federal law governing 
                                each Federal program included in the 
                                State educational agency's performance 
                                agreement.
                            ``(v) Inapplicability.--The following 
                        provisions shall not apply to a local 
                        educational agency with respect to a 
                        performance agreement under this part:
                                    ``(I) The provisions of section 
                                5703(a)(2)(A)(iii) relating to State 
                                educational agency information.
                                    ``(II) The provisions of section 
                                5704(a)(3)(B) limiting the use of funds 
                                other than those funds provided under 
                                part A of title I.
                                    ``(III) The provisions of section 
                                5705(b), to the extent that those 
                                provisions permit the consolidation of 
                                funds that are awarded by a State on a 
                                competitive basis.
                                    ``(IV) The provisions relating to 
                                distribution of funds under section 
                                5706.
                                    ``(V) The provisions limiting State 
                                use of funds for administrative 
                                purposes under section 5708(a).
                                    ``(VI) The provisions of section 
                                5709(e)(1) regarding State sanctions.
    ``(b) Ed-Flex Prohibition.--Each State or local educational agency 
that enters into a performance agreement under this part shall be 
ineligible to receive a waiver under part B for the term of the 
performance agreement.

``SEC. 5704. PERFORMANCE AGREEMENT.

    ``(a) Terms of Performance Agreement.--
            ``(1) Required provisions.--Each performance agreement 
        entered into by the Secretary and a State educational agency or 
        a local educational agency under this part shall--
                    ``(A) be for a term of 5 years, except as provided 
                in section 5709(a);
                    ``(B) provide that no requirements of any program 
                described in section 5705(b) and included in the scope 
                of the agreement shall apply, except as otherwise 
                provided in this part;
                    ``(C) list which of the programs described in 
                section 5705(b) are included in the scope of the 
                performance agreement;
                    ``(D) contain a 5-year plan describing how the 
                State educational agency will--
                            ``(i) ensure compliance with sections 1003, 
                        1111 (other than subsections (c) (3) and (10)), 
                        1112 (other than subsections (b) (3) and (9), 
                        (c) (5), (7), and (9), and (d)(3)), 1114, 1115, 
                        1116, 1117, and 1118 (c), (d), and (e) (1), 
                        (3), and (7), except that section 1114(a)(1) 
                        shall be applied substituting `35 percent' for 
                        `40 percent';
                            ``(ii) address professional development 
                        under the performance agreement;
                            ``(iii) combine and use the funds from 
                        programs included in the scope of the 
                        performance agreement to exceed, by a 
                        statistically significant amount, the State's 
                        definition of adequate yearly progress;
                            ``(iv) if title II is included in the 
                        performance agreement, ensure compliance with 
                        sections 2141(a) and 2142(a), as applicable; 
                        and
                            ``(v) if title III is included in the 
                        performance agreement, ensure compliance with 
                        section 3329;
                    ``(E) contain an assurance that the State 
                educational agency has provided parents, teachers, 
                schools, and local educational agencies in the State, 
                with notice and an opportunity to comment on the 
                proposed terms of the performance agreement, including 
                the distribution and use of funds to be consolidated, 
                in accordance with State law;
                    ``(F) provide that the State educational agency 
                will use fiscal control and fund-accounting procedures 
                that will ensure proper disbursement of, and accounting 
                for, Federal funds consolidated and used under the 
                performance agreement;
                    ``(G) contain an assurance that the State 
                educational agency will meet the requirements of all 
                applicable Federal civil rights laws in carrying out 
                the performance agreement and in consolidating and 
                using the funds under the performance agreement;
                    ``(H) require that, in consolidating and using 
                funds under the performance agreement, the State 
                educational agency will comply with the equitable 
                participation requirements described in section 
                5705(c);
                    ``(I) provide that the State educational agency 
                will, for the duration of the performance agreement, 
                use funds consolidated and used under section 5705 only 
                to supplement the amount of funds that would, in the 
                absence of those Federal funds, be made available from 
                non-Federal sources for the education of students 
                participating in programs assisted with the 
                consolidated funds and used under section 5705, and not 
                to supplant those funds;
                    ``(J) contain an assurance that the State 
                educational agency will comply with the maintenance of 
                effort requirements of paragraph (2);
                    ``(K) provide that, not later than 1 year after the 
                date on which the Secretary and the State educational 
                agency enter into the performance agreement, and 
                annually thereafter during the term of the agreement, 
                the State educational agency will disseminate widely to 
                parents (in a format and, to the extent practicable, in 
                a language the parents can understand) and the general 
                public, transmit to the Secretary, distribute to print 
                and broadcast media, and post on the Internet, a report 
                that includes--
                            ``(i) the data as described in section 
                        1111(j);
                            ``(ii) a detailed description of how the 
                        State educational agency used the funds 
                        consolidated under the performance agreement to 
                        exceed, by a statistically significant amount, 
                        its definition of adequate yearly progress; and
                            ``(iii) whether the State educational 
                        agency has met the teacher quality goals 
                        established under title II; and
                    ``(L) in the case of an agency that includes 
                subpart 1 of part A of title IV in its performance 
                agreement, contain an assurance that--
                            ``(i) the agency will not diminish its 
                        ability to provide a drug and violence free 
                        learning environment as a result of entering 
                        into the performance agreement, except that 
                        nothing in this clause shall be construed to 
                        limit the ability of the agency to participate 
                        in a program under title IV due to an 
                        unforeseen event involving drugs or violence;
                            ``(ii) the agency will prepare the needs 
                        assessment described in section 4112(a)(2) and 
                        the report described in section 4117 (b) and 
                        (c), as appropriate, for each school year; and
                            ``(iii) the agency will use the information 
                        in the assessment and report described in 
                        clause (ii) to ensure compliance with clause 
                        (i).
            ``(2) Maintenance of state financial support.--
                    ``(A) In general.--Each State entering into a 
                performance agreement under this part shall not reduce 
                the amount of State financial support for education for 
                a fiscal year below the amount of such support for the 
                preceding fiscal year.
                    ``(B) Reduction of funds for failure to maintain 
                effort.--The Secretary shall reduce the allotment of 
                funds to a State pursuant to the terms of the 
                performance agreement for any fiscal year following a 
                fiscal year in which the State fails to comply with 
                subparagraph (A) by the same amount by which the State 
                fails to meet the requirements of subparagraph (A).
                    ``(C) Waivers for exceptional or uncontrollable 
                circumstances.--The Secretary may waive the requirement 
                of subparagraph (A) for a State, for one fiscal year at 
                a time, if the Secretary determines that granting a 
                waiver would be equitable due to exceptional or 
                uncontrollable circumstances such as a natural disaster 
                or a precipitous and unforeseen decline in the 
                financial resources of the State.
                    ``(D) Subsequent years.--If, for any year, a State 
                fails to meet the requirement of subparagraph (A), 
                including any year for which the State is granted a 
                waiver under subparagraph (C), then the financial 
                support required of the State in future years under 
                subparagraph (A) shall be the amount that would have 
                been required in the absence of that failure and not 
                the reduced level of the State's support.
            ``(3) Maintenance of local financial support.--
                    ``(A) In general.--Each local educational agency 
                entering into a performance agreement under this part 
                shall not reduce the amount of local educational agency 
                financial support for education for a fiscal year below 
                90 percent of the amount of that support for the 
                preceding fiscal year.
                    ``(B) Reduction of funds for failure to maintain 
                support.--The Secretary shall reduce the amount made 
                available to a local educational agency under a 
                performance agreement under this part for any fiscal 
                year following the fiscal year in which the local 
                educational agency fails to comply with subparagraph 
                (A) by the same amount by which the local educational 
                agency fails to meet the requirements of subparagraph 
                (A).
                    ``(C) Waivers for exceptional or uncontrollable 
                circumstances.--The Secretary may waive the requirement 
                of subparagraph (A) for a local educational agency if 
                the Secretary determines that granting a waiver would 
                be equitable due to exceptional or uncontrollable 
                circumstances such as a natural disaster or a 
                precipitous and unforeseen decline in the financial 
                resources of the local educational agency, or to permit 
                the local educational agency to adjust for changes in 
                student population within the schools served by the 
                local educational agency.
                    ``(D) Subsequent years.--If, for any year, a local 
                educational agency fails to meet the requirement of 
                subparagraph (A), including any year for which the 
                local educational agency is granted a waiver under 
                subparagraph (C), then the financial support required 
                of the local educational agency in future years under 
                subparagraph (A) shall be the amount that would have 
                been required in the absence of that failure and not 
                the reduced level of the local educational agency's 
                support.
            ``(4) Program-specific provisions.--
                    ``(A) Part a of title i funds.--If part A of title 
                I is included in the scope of the performance 
                agreement, the performance agreement shall provide that 
                sections 1113, and 1124 through 1127, shall apply to 
                the allocation of funds under such part, unless the 
                State educational agency demonstrates, to the 
                satisfaction of the Secretary and prior to approval of 
                the performance agreement, that the State educational 
                agency will use an alternative allocation method that 
                will better target poverty or educational need. Any 
                alternative method shall result in the percentage of 
                such funds allocated to each local educational agency 
                served by the State educational agency that meets the 
                eligibility criteria for a concentration grant 
                according to section 1124A exceeding the percentage of 
                such funds allocated to such local educational agency 
                under part A of title I. Such alternative allocation 
                methods may include implementation of a State's 
                weighted formula, use of a State's most current census 
                data to better target poor children, or a State setting 
                higher thresholds for poverty so that funding is more 
                targeted to schools with higher concentrations of 
                poverty.
                    ``(B) Nontitle i funds.--The performance agreement 
                shall provide that, for funds other than those under 
                part A of title I that are consolidated and used under 
                section 5705(b), the State educational agency will 
                demonstrate, to the satisfaction of the Secretary and 
                prior to approval of the performance agreement, that 
                the State educational agency will allocate the funds in 
                a manner that, each year, allocates funds to serve high 
                concentrations of children from low-income families at 
                a level proportional to or higher than the level that 
                would occur without such consolidation or use.
    ``(b) Approval of Performance Agreement.--
            ``(1) In general.--Subject to section 5703(a), not later 
        than 90 days after the deadline established by the Secretary 
        for receipt of a complete proposed performance agreement, the 
        Secretary shall approve the performance agreement, or provide 
        the State educational agency with a written explanation for not 
        approving the performance agreement.
            ``(2) Peer review.--The Secretary shall--
                    ``(A) establish a peer review process to assist in 
                the review of proposed performance agreements under 
                this part; and
                    ``(B) appoint individuals to the peer review 
                process who are representative of parents, teachers, 
                State educational agencies, and local educational 
                agencies, and who are familiar with educational 
                standards, assessments, accountability, curriculum, 
                instruction and staff development, and other diverse 
                educational needs of students.
    ``(c) Amendment to Performance Agreement.--
            ``(1) In general.--Not later than 1 year after entering 
        into a performance agreement under this part, a State 
        educational agency may amend its agreement to--
                    ``(A) remove from the scope of the agreement any 
                program described in section 5705(b); or
                    ``(B) include in the scope of the agreement any 
                additional program described in section 5705(b), or any 
                additional achievement indicators for which the State 
                educational agency will be held accountable.
            ``(2) Approval of amendment.--
                    ``(A) In general.--Not later than 90 days after the 
                receipt of a complete proposed amendment described in 
                paragraph (1), the Secretary shall approve the 
                amendment unless the Secretary, by that deadline, 
                provides the State educational agency with a written 
                determination that the plan, as amended, would no 
                longer have substantial promise of meeting the 
                requirements of this part and meeting the State 
                educational agency's objective to exceed adequate 
                yearly progress.
                    ``(B) Treatment as approved.--Each amendment for 
                which the Secretary fails to take the action required 
                under subparagraph (A) in the time period described in 
                that subparagraph shall be considered to be approved.
            ``(3) Additional amendments.--In addition to the amendments 
        described in paragraph (1), the State educational agency, at 
        any time, may amend its performance agreement if the State 
        educational agency demonstrates, to the satisfaction of the 
        Secretary, that--
                    ``(A) the plan, as amended, will continue to have 
                substantial promise of meeting the requirements of this 
                part; and
                    ``(B) the amendment sought by the State will not 
                substantially alter the original agreement.
            ``(4) Treatment of program funds withdrawn from 
        agreement.--The addition, or removal, of a program to or from 
        the scope of a performance agreement under paragraph (1) shall 
        take effect with respect to the participating agency's use of 
        funds made available under that program beginning on the first 
        day of the first full academic year following the approval of 
        the amendment.

``SEC. 5705. CONSOLIDATION AND USE OF FUNDS.

    ``(a) In General.--
            ``(1) Authority.--Under a performance agreement entered 
        into under this part, a State educational agency may 
        consolidate, subject to subsection (c), Federal funds made 
        available to the State educational agency under the provisions 
        listed in subsection (b) and use those funds for any purpose or 
        use permitted under any of the eligible programs listed in 
        section 5705(b), subject to paragraph (3).
            ``(2) Program requirements.--Except as otherwise provided 
        in this part, a State educational agency may use funds under 
        paragraph (1) notwithstanding the requirements of the program 
        under which the funds were made available to the State 
        educational agency.
            ``(3) Continuation awards.--A State educational agency 
        shall make continuation awards for the duration of the grants 
        to recipients of multiyear competitive grants under any of the 
        programs described in subsection (b) that were initially 
        awarded prior to entering into the performance agreement, and 
        shall not consolidate any funds under subsection (b) for any 
        year until after those continuation awards are made.
    ``(b) Eligible Programs.--Only funds made available for fiscal year 
2002 or any succeeding fiscal year to State educational agencies under 
programs under any of the following provisions of law may be 
consolidated and used under subsection (a):
            ``(1) Part A (other than section 1003), subpart 1 of part 
        B, part F or G, or subpart 2 of part H (but only if 
        appropriations for such subpart exceed $250,000,000 and the 
        program becomes a State formula grant program), of title I.
            ``(2) Subpart 1 or 2 of part A, or part C, of title II.
            ``(3) Part A or D, as appropriate, of title III (other than 
        grant funds made available under section 3324(c)(1)).
            ``(4) Subpart 1 of part A of title IV.
            ``(5) Subpart 3 of part A, or subpart 4 of part B, of title 
        V.
            ``(6) Any appropriation subsequent to fiscal year 2001 for 
        the purposes described in section 310 of the Department of 
        Education Appropriations Act, 2000.
            ``(7) Any appropriation subsequent to fiscal year 2001 for 
        the purposes described in section 321(b)(2) of the Department 
        of Education Appropriations Act, 2001.
            ``(8) Any other program under this Act that is enacted 
        after the date of enactment of the Better Education for 
        Students and Teachers Act under which the Secretary provides 
        grants to State educational agencies to assist elementary and 
        secondary education on the basis of a formula.
    ``(c) Equitable Participation Requirements.--If a State educational 
agency or local educational agency includes in the scope of its 
performance agreement programs described in subsection (b) that have 
requirements relating to the equitable participation of private 
schools, then--
            ``(1) each local educational agency in the State, or the 
        local educational agency, as appropriate, shall determine the 
        amount of consolidated funds to be used for services and 
        benefits for private school students and teachers by--
                    ``(A) calculating separately the amount of funds 
                for services and benefits for private school students 
                and teachers under each program that is consolidated 
                and to which those requirements apply; and
                    ``(B) totaling the amounts calculated under 
                subparagraph (A);
            ``(2) except as described in paragraph (3), all equitable 
        participation requirements, including any bypass requirements, 
        applicable to the program that is consolidated shall continue 
        to apply to the funds consolidated under the agreement from 
        that program; and
            ``(3) the agency may use the amount of funds determined 
        under paragraph (1) only for those services and benefits for 
        private school students and teachers in accordance with any of 
        the consolidated programs to which the equitable participation 
        requirements apply, but may not provide any additional benefits 
        or services beyond those allowable under the applicable 
        equitable participation requirements under this Act.

``SEC. 5706. STATE RESERVATION FOR STATE-LEVEL ACTIVITIES.

    ``(a) State-level activities.--In order to carry out State-level 
activities under the purposes described in section 5705(a)(1) to 
exceed, by a statistically significant amount, the State's definition 
of adequate yearly progress, a State educational agency that--
            ``(1) includes part A of title I in the scope of its 
        performance agreement, may reserve not more than 5 percent of 
        the funds under that part to carry out such activities; and
            ``(2) includes programs other than part A of title I in the 
        scope of its performance agreement, may reserve not more than 
        10 percent of the funds under those other programs to carry out 
        such activities.
    ``(b) Distribution of Remainder.--A State educational agency shall 
distribute the consolidated funds not used under subsection (a) to 
local educational agencies in the State in a manner determined by the 
State educational agency in accordance with section 5707.

``SEC. 5707. DISTRIBUTION OF FUNDS UNDER AGREEMENT.

    ``The distribution of funds consolidated under a performance 
agreement shall be determined by the State educational agency in 
consultation with the Governor of the State, subject to the 
requirements of this part.

``SEC. 5708. LIMITATIONS ON ADMINISTRATIVE EXPENDITURES.

    ``(a) State Educational Agency.--Subject to section 5709(e)(1), 
each State educational agency that has entered into a performance 
agreement under this part may reserve for administrative purposes not 
more than 1 percent of the total amount of funds made available to the 
State educational agency under the programs included in the scope of 
the performance agreement.
    ``(b) Local Educational Agency.--Subject to section 5709(e)(2), 
each local educational agency that has entered into a performance 
agreement with the Secretary under this part may use for administrative 
purposes not more than 4 percent of the total amount of funds made 
available to the local educational agency under the programs included 
in the scope of the performance agreement.

``SEC. 5709. PERFORMANCE REVIEW AND PENALTIES.

    ``(a) Early Termination of Agreement.--
            ``(1) Performance goal failure.--Beginning with the first 
        full academic year after a State educational agency enters into 
        a performance agreement under this part, and after providing 
        the State educational agency with notice and an opportunity for 
        a hearing (including the opportunity to provide information as 
        provided in paragraph (3)), if the State educational agency 
        fails to meet its definition of adequate yearly progress for 2 
        consecutive years, or fails to exceed, by a statistically 
        significant amount, its definition of adequate yearly progress 
        for 3 consecutive years, then the Secretary shall terminate 
        promptly the performance agreement.
            ``(2) Noncompliance.--The Secretary may, after providing 
        notice and an opportunity for a hearing (including the 
        opportunity to provide information as provided in paragraph 
        (3)), terminate a performance agreement if there is evidence 
        that the State educational agency has failed to comply with the 
        terms of the performance agreement.
            ``(3) Information.--If a State educational agency believes 
        that the Secretary's determination under this subsection is in 
        error for statistical or other substantive reasons, the State 
        educational agency may provide supporting evidence to the 
        Secretary, and the Secretary shall consider that evidence 
        before making a final early termination determination.
    ``(b) No Renewal if Performance Unsatisfactory.--If, at the end of 
the 5-year term of a performance agreement entered into under this 
part, a State educational agency has not substantially met the State's 
definition of adequate yearly progress, then the Secretary shall not 
renew the agreement under section 5710.
    ``(c) Two-Year Wait-Out Period.--A State educational agency whose 
performance agreement was terminated under subsection (a), or was not 
renewed in accordance with subsection (b), may not enter into another 
performance agreement under this part until after the State educational 
agency meets its definition of adequate yearly progress for 2 
consecutive years following the termination or nonrenewal.
    ``(d) Program Requirements in Effect After Termination or 
Nonrenewal of the Agreement.--Beginning on the first day of the first 
full academic year following the end of a performance agreement under 
this part (including through termination under subsection (a)) the 
State educational agency shall comply with each of the program 
requirements in effect on that date for each program included in the 
performance agreement.
    ``(e) Sanctions.--
            ``(1) State sanctions.--If, beginning with the first full 
        academic year after a State educational agency enters into a 
        performance agreement under this part--
                    ``(A) the Secretary determines, on the basis of 
                data from the State assessment system described in 
                section 1111 and data from State assessments under the 
                National Assessment of Educational Progress of 4th and 
                8th grade reading and mathematics skills, for 2 
                consecutive years, that--
                            ``(i) the State educational agency has 
                        failed to exceed, by a statistically 
                        significant amount, the State's definition of 
                        adequate yearly progress; and
                            ``(ii) students who are racial and ethnic 
                        minorities, and economically disadvantaged 
                        students, in the State failed to make 
                        statistically significant progress in the 
                        academic subjects for which the State has 
                        developed State content and student performance 
                        standards,
                then the amount that the State educational agency may 
                use for administrative expenses in accordance with 
                section 5708 shall be reduced by 30 percent;
                    ``(B) the Secretary determines that a State 
                educational agency which included title II in its 
                performance agreement failed to comply with section 
                2141(a), then the Secretary shall withhold funds as 
                described in section 2141(d); and
                    ``(C) the Secretary determines that a State 
                educational agency which included title III in its 
                performance agreement failed to comply with section 
                3329, then the Secretary shall withhold funds as 
                described in section 3329(b).
            ``(2) Local educational agencies.--If, beginning with the 
        first full academic year after a local educational agency 
        enters into a performance agreement under this part, the 
        Secretary determines, on the basis of data from the State 
        assessment system described in section 1111 that a local 
        educational agency failed to exceed, by a statistically 
        significant amount, the State's definition of adequate yearly 
        progress for 2 consecutive years, then the amount that the 
        local educational agency may use for administrative expenses in 
        accordance with section 5708 shall be reduced by 30 percent.

``SEC. 5710. RENEWAL OF PERFORMANCE AGREEMENT.

    ``(a) In General.--Except as provided in section 5709 (a) and (b), 
and in accordance with this section, the Secretary shall renew for 1 
additional 5-year term a performance agreement under this part if the 
Secretary determines, on the basis of the information reported under 
section 5704(a)(1)(K), that the adequate yearly progress described in 
the performance agreement has been exceeded by a statistically 
significant amount.
    ``(b) Notification.--The Secretary shall not renew a performance 
agreement under this part unless the State educational agency seeking 
the renewal notifies the Secretary of the agency's intention to renew 
the performance agreement not less than 6 months prior to the end of 
the original term of the performance agreement.
    ``(c) Effective Date.--A renewal under this section shall be 
effective at the end of the original term of the performance agreement 
or on the date on which the State educational agency provides to the 
Secretary all data and information required under the performance 
agreement, whichever is later, except that in no case may there be a 
renewal under this section unless that data and information is provided 
to the Secretary not later than 60 days after the end of the original 
term of the performance agreement.

``SEC. 5711. EVALUATION.

    ``(a) Study.--The Secretary is authorized to award a grant to the 
Comptroller General to conduct a study examining the effectiveness of 
the demonstration program under this part. The study shall examine--
            ``(1) the performance of the disaggregated groups of 
        students described in section 1111(b)(3)(K) prior to entering 
        into the performance agreement as compared to the performance 
        of such groups after completion of the performance agreement on 
        State assessments and the National Assessment of Educational 
        Progress;
            ``(2) the dropout data (as required by section 1111(j)) 
        prior to entering into the performance agreement as compared to 
        the dropout data after completion of the performance agreement;
            ``(3) the ways in which the State educational agencies and 
        local educational agencies entering into performance agreements 
        distributed and used Federal education resources as compared to 
        the ways in which such agencies distributed and used Federal 
        education resources prior to entering the performance 
        agreement;
            ``(4) a comparison of the data described in paragraphs (1), 
        (2), and (3) between State educational agencies and local 
        educational agencies entering into performance agreements 
        compared to other State educational agencies and local 
        educational agencies to determine the effectiveness of the 
        program; and
            ``(5) any other factors that are relevant to evaluating the 
        effectiveness of the program.
    ``(b) Report.--The Secretary shall make public the results of the 
evaluation carried out under subsection (a) and shall report the 
results of the study to the Committee on Health, Education, Labor, and 
Pensions of the Senate and the Committee on Education and the Workforce 
of the House of Representatives.

``SEC. 5712. TRANSMITTAL OF REPORTS TO CONGRESS.

    ``Not later than 60 days after the Secretary receives an annual 
report described in section 5704(a)(1)(K), the Secretary shall make the 
report available 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.''.

SEC. 502. EMPOWERING PARENTS.

    (a) Short Title.--This section may be cited as the ``Empowering 
Parents Act of 2001''.
    (b) Public School Choice.--
            (1) Short title of subsection.--This subsection may be 
        referred to as the ``Enhancing Public Education Through Choice 
        Act''.
            (2) Purposes.--The purposes of this subsection are--
                    (A) to prevent children from being consigned to, or 
                left trapped in, failing schools;
                    (B) to ensure that parents of children in failing 
                public schools have the choice to send their children 
                to higher performing public schools, including public 
                charter schools;
                    (C) to support and stimulate improved public school 
                performance through increased public school competition 
                and increased Federal financial assistance;
                    (D) to provide parents with more choices among 
                public school options; and
                    (E) to assist local educational agencies with low-
                performing schools to implement districtwide public 
                school choice programs or enter into partnerships with 
                other local educational agencies to offer students 
                interdistrict or statewide public school choice 
                programs.
            (3) Public school choice programs.--Part A of title V, as 
        amended in section 501, is further amended by adding at the end 
        the following:

          ``Subpart 4--Voluntary Public School Choice Programs

``SEC. 5161. DEFINITIONS.

    ``In this subpart:
            ``(1) Charter school.--The term `charter school' has the 
        meaning given such term in section 5120.
            ``(2) Lowest performing school.--The term `lowest 
        performing school' means a public school that has failed to 
        make adequate yearly progress, as described in section 1111, 
        for 2 or more years.
            ``(3) Poverty line.--The term `poverty line' means the 
        income official 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.
            ``(4) Public school.--The term `public school' means a 
        charter school, a public elementary school, and a public 
        secondary school.
            ``(5) Student in poverty.--The term `student in poverty' 
        means a student from a family with an income below the poverty 
        line.

``SEC. 5162. GRANTS.

    ``The Secretary shall make grants, on a competitive basis, to State 
educational agencies and local educational agencies, to enable the 
agencies, including the agencies serving the lowest performing schools, 
to implement programs of universal public school choice.

``SEC. 5163. USE OF FUNDS.

    ``(a) In General.--An agency that receives a grant under this 
subpart shall use the funds made available through the grant to pay for 
the expenses of implementing a public school choice program, 
including--
            ``(1) the expenses of providing transportation services or 
        the cost of transportation to eligible children;
            ``(2) the cost of making tuition transfer payments to 
        public schools to which students transfer under the program;
            ``(3) the cost of capacity-enhancing activities that enable 
        high-demand public schools to accommodate transfer requests 
        under the program;
            ``(4) the cost of carrying out public education campaigns 
        to inform students and parents about the program;
            ``(5) administrative costs; and
            ``(6) other costs reasonably necessary to implement the 
        program.
    ``(b) Supplement, Not Supplant.--Funds made available under this 
subpart shall supplement, and not supplant, State and local public 
funds expended to provide public school choice programs for eligible 
individuals.

``SEC. 5164. REQUIREMENTS.

    ``(a) Inclusion in Program.--In carrying out a public school choice 
program under this subpart, a State educational agency or local 
educational agency shall--
            ``(1) allow all students attending public schools within 
        the State or school district involved to attend the public 
        school of their choice within the State or school district, 
        respectively;
            ``(2) provide all eligible students in all grade levels 
        equal access to the program;
            ``(3) include in the program charter schools and any other 
        public school in the State or school district, respectively; 
        and
            ``(4) develop the program with the involvement of parents 
        and others in the community to be served, and individuals who 
        will carry out the program, including administrators, teachers, 
        principals, and other staff.
    ``(b) Notice.--In carrying out a public school choice program under 
this subpart, a State educational agency or local educational agency 
shall give parents of eligible students prompt notice of the existence 
of the program and the program's availability to such parents, and a 
clear explanation of how the program will operate.
    ``(c) Transportation.--In carrying out a public school choice 
program under this subpart, a State educational agency or local 
educational agency shall provide eligible students with transportation 
services or the cost of transportation to and from the public schools, 
including charter schools, that the students choose to attend under 
this program.
    ``(d) Nondiscrimination.--Notwithstanding subsection (a)(3), no 
public school may discriminate on the basis of race, color, religion, 
sex, national origin, sexual orientation, or disability in providing 
programs and activities under this subpart.
    ``(e) Parallel Accountability.--Each State educational agency or 
local educational agency receiving a grant under this subpart for a 
program through which a charter school receives assistance shall hold 
the school accountable for adequate yearly progress in improving 
student performance as described in title I and as established in the 
school's charter, including the use of the standards and assessments 
established under title I.

``SEC. 5165. APPLICATIONS.

    ``(a) In General.--To be eligible to receive a grant under this 
subpart, a State educational agency or local educational agency shall 
submit an application to the Secretary at such time, in such manner, 
and containing such information as the Secretary may require.
    ``(b) Contents.--Each application for a grant under this subpart 
shall include--
            ``(1) a description of the program for which the agency 
        seeks funds and the goals for such program;
            ``(2) a description of how the program will be coordinated 
        with, and will complement and enhance, other related Federal 
        and non-Federal projects;
            ``(3) if the program is carried out by a partnership, the 
        name of each partner and a description of the partner's 
        responsibilities;
            ``(4) a description of the policies and procedures the 
        agency will use to ensure--
                    ``(A) accountability for results, including 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.

``SEC. 5166. PRIORITIES.

    ``In making grants under this subpart, the Secretary shall give 
priority to--
            ``(1) first, those State educational agencies and local 
        educational agencies serving the lowest performing schools;
            ``(2) second, those State educational agencies and local 
        educational agencies serving the highest percentage of students 
        in poverty; and
            ``(3) third, those State educational agencies or local 
        educational agencies forming a partnership that seeks to 
        implement an interdistrict approach to carrying out a public 
        school choice program.

``SEC. 5167. EVALUATIONS, TECHNICAL ASSISTANCE, AND DISSEMINATION.

    ``(a) In General.--From the amount made available to carry out this 
subpart for any fiscal year, the Secretary may reserve not more than 5 
percent to carry out evaluations, to provide technical assistance, and 
to disseminate information.
    ``(b) Evaluations.--In carrying out evaluations under subsection 
(a), the Secretary may use the amount reserved under subsection (a) to 
carry out 1 or more evaluations of State and local programs assisted 
under this subpart, which shall, at a minimum, address--
            ``(1) how, and the extent to which, the programs promote 
        educational equity and excellence; and
            ``(2) the extent to which public schools carrying out the 
        programs are--
                    ``(A) held accountable to the public;
                    ``(B) effective in improving public education; and
                    ``(C) open and accessible to all students.

``SEC. 5168. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this subpart 
$125,000,000 for fiscal year 2002 and each subsequent fiscal year.''.
    (c) Public Charter School Facilities Financing.--
            (1) Short title of subsection.--This subsection may be 
        cited as the ``Charter Schools Equity Act''.
            (2) Purposes.--The purposes of this subsection are--
                    (A) to help eliminate the barriers that prevent 
                charter school developers from accessing the credit 
                markets, by encouraging lending institutions to lend 
                funds to charter schools on terms more similar to the 
                terms typically extended to traditional public schools; 
                and
                    (B) to encourage the States to provide support to 
                charter schools for facilities financing in an amount 
                more nearly commensurate to the amount the States have 
                typically provided for traditional public schools.
            (3) Charter schools.--
                    (A) Conforming amendment.--Section 5112(e)(1), as 
                amended in section 501, is further amended by inserting 
                ``(other than funds reserved to carry out section 
                5115(b))'' after ``section 5121''.
                    (B) Matching grants to states.--Section 5115, as 
                amended in section 501, is further amended--
                            (i) in subsection (a), by inserting 
                        ``(other than funds reserved to carry out 
                        subsection (b))'' after ``this subpart'';
                            (ii) by redesignating subsection (b) as 
                        subsection (c); and
                            (iii) by inserting after subsection (a) the 
                        following:
    ``(b) Per-Pupil Facilities Aid Programs.--
            ``(1) Grants.--
                    ``(A) In general.--From the amount made available 
                to carry out this subsection under section 5121 for any 
                fiscal year, the Secretary shall make grants, on a 
                competitive basis, to States to pay for the Federal 
                share of the cost of establishing or enhancing, and 
                administering, programs in which the States make 
                payments, on a per-pupil basis, to charter schools to 
                assist the schools in financing school facilities 
                (referred to in this subsection as `per-pupil 
                facilities aid programs').
                    ``(B) Period.--The Secretary shall award grants 
                under this subsection for periods of not more than 5 
                years.
                    ``(C) Federal share.--The Federal share of the cost 
                described in subparagraph (A) for a per-pupil 
                facilities aid program shall be not more than--
                            ``(i) 90 percent of the cost, for the first 
                        fiscal year for which the program receives 
                        assistance under this subsection or its 
                        predecessor authority;
                            ``(ii) 80 percent in the second such year;
                            ``(iii) 60 percent in the third such year;
                            ``(iv) 40 percent in the fourth such year; 
                        and
                            ``(v) 20 percent in the fifth such year.
            ``(2) Use of funds.--
                    ``(A) In general.--A State that receives a grant 
                under this subsection shall use the funds made 
                available through the grant to establish or enhance, 
                and administer, a per-pupil facilities aid program for 
                charter schools in the State.
                    ``(B) Evaluations; technical assistance; 
                dissemination.--From the amount made available to a 
                State through a grant under this subsection for a 
                fiscal year, the State may reserve not more than 5 
                percent of the amount to carry out evaluations, to 
                provide technical assistance, and to disseminate 
                information.
                    ``(C) Supplement, not supplant.--Funds made 
                available under this subsection shall supplement, and 
                not supplant, State and local public funds expended to 
                provide per-pupil facilities aid programs, operations 
                financing programs, or other programs, for charter 
                schools.
            ``(3) Requirements.--
                    ``(A) Voluntary participation.--No State may be 
                required to participate in a program carried out under 
                this subsection.
                    ``(B) State law.--To be eligible to receive a grant 
                under this subsection, a State shall establish or 
                enhance, and administer, a per-pupil facilities aid 
                program for charter schools in the State, that--
                            ``(i) is specified in State law;
                            ``(ii) provides annual financing, on a per-
                        pupil basis, for charter school facilities; and
                            ``(iii) provides financing that is 
                        dedicated solely for funding the facilities.
            ``(4) Applications.--To be eligible to receive a grant 
        under this subsection, a State shall submit an application to 
        the Secretary at such time, in such manner, and containing such 
        information as the Secretary may require.
            ``(5) Priorities.--In making grants under this subsection, 
        the Secretary shall give priority to States that meet the 
        criteria described in paragraph (2), and subparagraphs (A), 
        (B), and (C) of paragraph (3), of section 5112(e).
            ``(6) Evaluations, Technical Assistance, and 
        Dissemination.--
                    ``(A) In general.--From the amount made available 
                to carry out this subsection under section 5121 for any 
                fiscal year, the Secretary may carry out evaluations, 
                provide technical assistance, and disseminate 
                information.
                    ``(B) Evaluations.--In carrying out evaluations 
                under subparagraph (A), the Secretary may carry out 1 
                or more evaluations of State programs assisted under 
                this subsection, which shall, at a minimum, address--
                            ``(i) how, and the extent to which, the 
                        programs promote educational equity and 
                        excellence; and
                            ``(ii) the extent to which charter schools 
                        supported through the programs are--
                                    ``(I) held accountable to the 
                                public;
                                    ``(II) effective in improving 
                                public education; and
                                    ``(III) open and accessible to all 
                                students.''.
                    (C) Authorization of appropriations.--Section 5121, 
                as amended in section 501, is further amended to read 
                as follows:

``SEC. 5121. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this subpart $400,000,000 for fiscal year 2002 and such sums as may 
be necessary for each of the 4 succeeding fiscal years.
    ``(b) Reservation.--For fiscal year 2002, the Secretary shall 
reserve, from the amount appropriated under subsection (a)--
            ``(1) $200,000,000 to carry out this subpart, other than 
        section 5115(b); and
            ``(2) the remainder to carry out section 5115(b).''.
            (4) Credit enhancement initiatives.--Subpart 1 of part A of 
        title V, as amended in section 501, is further amended--
                    (A) by inserting after the subpart heading the 
                following:

                ``CHAPTER I--CHARTER SCHOOL PROGRAMS'';

                    (B) by striking ``this subpart'' each place it 
                appears and inserting ``this chapter''; and
                    (C) by adding at the end the following:

``CHAPTER II--CREDIT ENHANCEMENT INITIATIVES TO PROMOTE CHARTER SCHOOL 
           FACILITY ACQUISITION, CONSTRUCTION, AND RENOVATION

``SEC. 5126. PURPOSE.

    ``The purpose of this chapter is to provide grants to eligible 
entities to permit the entities to establish or improve innovative 
credit enhancement initiatives that assist charter schools to address 
the cost of acquiring, constructing, and renovating facilities.

``SEC. 5126A. GRANTS TO ELIGIBLE ENTITIES.

    ``(a) Grants for Initiatives.--
            ``(1) In general.--The Secretary shall use 100 percent of 
        the amount available to carry out this chapter to eligible 
        entities having applications approved under this chapter to 
        carry out innovative initiatives for assisting charter schools 
        to address the cost of acquiring, constructing, and renovating 
        facilities by enhancing the availability of loans or bond 
        financing.
            ``(2) Number of grants.--The Secretary shall award not 
        fewer than 3 of the grants.
    ``(b) Grantee Selection.--
            ``(1) Determination.--The Secretary shall evaluate each 
        application submitted, and shall determine which applications 
        are of sufficient quality to merit approval and which are not.
            ``(2) Minimum grants.--The Secretary shall award at least--
                    ``(A) 1 grant to an eligible entity described in 
                section 5126I(2)(A);
                    ``(B) 1 grant to an eligible entity described in 
                section 5126I(2)(B); and
                    ``(C) 1 grant to an eligible entity described in 
                section 5126I(2)(C),
        if applications are submitted that permit the Secretary to 
        award the grants without approving an application that is not 
        of sufficient quality to merit approval.
    ``(c) Grant Characteristics.--Grants under this chapter shall be in 
sufficient amounts, and for initiatives of sufficient scope and 
quality, so as to effectively enhance credit for the financing of 
charter school acquisition, construction, or renovation.
    ``(d) Special Rule.--In the event the Secretary determines that the 
funds available to carry out this chapter are insufficient to permit 
the Secretary to award not fewer than 3 grants in accordance with 
subsections (a) through (c)--
            ``(1) subsections (a)(2) and (b)(2) shall not apply; and
            ``(2) the Secretary may determine the appropriate number of 
        grants to be awarded in accordance with subsections (a)(1), 
        (b)(1), and (c).

``SEC. 5126B. APPLICATIONS.

    ``(a) In General.--To receive a grant under this chapter, an 
eligible entity shall submit to the Secretary an application in such 
form as the Secretary may reasonably require.
    ``(b) Contents.--An application submitted under subsection (a) 
shall contain--
            ``(1) a statement identifying the activities proposed to be 
        undertaken with funds received under this chapter, including 
        how the applicant will determine which charter schools will 
        receive assistance, and how much and what types of assistance 
        the charter schools will receive;
            ``(2) a description of the involvement of charter schools 
        in the application's development and the design of the proposed 
        activities;
            ``(3) a description of the applicant's expertise in capital 
        market financing;
            ``(4) a description of how the proposed activities will--
                    ``(A) leverage private sector financing capital, to 
                obtain the maximum amount of private sector financing 
                capital, relative to the amount of government funding 
                used, to assist charter schools; and
                    ``(B) otherwise enhance credit available to charter 
                schools;
            ``(5) a description of how the applicant possesses 
        sufficient expertise in education to evaluate the likelihood of 
        success of a charter school program for which facilities 
        financing is sought;
            ``(6) in the case of an application submitted by a State 
        governmental entity, a description of the actions that the 
        entity has taken, or will take, to ensure that charter schools 
        within the State receive the funding the schools need to have 
        adequate facilities; and
            ``(7) such other information as the Secretary may 
        reasonably require.

``SEC. 5126C. CHARTER SCHOOL OBJECTIVES.

    ``An eligible entity receiving a grant under this chapter shall use 
the funds received through the grant, and deposited in the reserve 
account established under section 5126D(a), to assist 1 or more charter 
schools to access private sector capital to accomplish 1 or more of the 
following objectives:
            ``(1) The acquisition (by purchase, lease, donation, or 
        otherwise) of an interest (including an interest held by a 
        third party for the benefit of a charter school) in improved or 
        unimproved real property that is necessary to commence or 
        continue the operation of a charter school.
            ``(2) The construction of new facilities, or the 
        renovation, repair, or alteration of existing facilities, 
        necessary to commence or continue the operation of a charter 
        school.
            ``(3) The payment of start-up costs, including the costs of 
        training teachers and purchasing materials and equipment, 
        including instructional materials and computers, for a charter 
        school.

``SEC. 5126D. RESERVE ACCOUNT.

    ``(a) In General.--For the purpose of assisting charter schools to 
accomplish the objectives described in section 5126C, an eligible 
entity receiving a grant under this chapter shall deposit the funds 
received through the grant (other than funds used for administrative 
costs in accordance with section 5126E) in a reserve account 
established and maintained by the entity for that purpose. The entity 
shall make the deposit in accordance with State and local law and may 
make the deposit directly or indirectly, and alone or in collaboration 
with others.
    ``(b) Use of Funds.--Amounts deposited in such account shall be 
used by the entity for 1 or more of the following purposes:
            ``(1) Guaranteeing, insuring, and reinsuring bonds, notes, 
        evidences of debt, loans, and interests therein, the proceeds 
        of which are used for an objective described in section 5126C.
            ``(2) Guaranteeing and insuring leases of personal and real 
        property for such an objective.
            ``(3) Facilitating financing for such an objective by 
        identifying potential lending sources, encouraging private 
        lending, and carrying out other similar activities that 
        directly promote lending to, or for the benefit of, charter 
        schools.
            ``(4) Facilitating the issuance of bonds by charter 
        schools, or by other public entities for the benefit of charter 
        schools, for such an objective, by providing technical, 
        administrative, and other appropriate assistance (including the 
        recruitment of bond counsel, underwriters, and potential 
        investors and the consolidation of multiple charter school 
        projects within a single bond issue).
    ``(c) Investment.--Funds received under this chapter and deposited 
in the reserve account shall be invested in obligations issued or 
guaranteed by the United States or a State, or in other similarly low-
risk securities.
    ``(d) Reinvestment of Earnings.--Any earnings on funds received 
under this chapter shall be deposited in the reserve account 
established under subsection (a) and used in accordance with subsection 
(b).

``SEC. 5126E. LIMITATION ON ADMINISTRATIVE COSTS.

    ``An eligible entity that receives a grant under this chapter may 
use not more than 0.25 percent of the funds received through the grant 
for the administrative costs of carrying out the entity's 
responsibilities under this chapter.

``SEC. 5126F. AUDITS AND REPORTS.

    ``(a) Financial Record Maintenance and Audit.--The financial 
records of each eligible entity receiving a grant under this chapter 
shall be maintained in accordance with generally accepted accounting 
principles and shall be subject to an annual audit by an independent 
public accountant.
    ``(b) Reports.--
            ``(1) Grantee annual reports.--Each eligible entity 
        receiving a grant under this chapter annually shall submit to 
        the Secretary a report of the entity's operations and 
        activities under this chapter.
            ``(2) Contents.--Each such annual report shall include--
                    ``(A) a copy of the most recent financial 
                statements, and any accompanying opinion on such 
                statements, prepared by the independent public 
                accountant auditing the financial records of the 
                eligible entity;
                    ``(B) a copy of any report made on an audit of the 
                financial records of the eligible entity that was 
                conducted under subsection (a) during the reporting 
                period;
                    ``(C) an evaluation by the eligible entity of the 
                effectiveness of the entity's use of the Federal funds 
                provided under this chapter in leveraging private 
                funds;
                    ``(D) a listing and description of the charter 
                schools served by the entity with such Federal funds 
                during the reporting period;
                    ``(E) a description of the activities carried out 
                by the eligible entity to assist charter schools in 
                meeting the objectives set forth in section 5126C; and
                    ``(F) a description of the characteristics of 
                lenders and other financial institutions participating 
                in the activities undertaken by the eligible entity 
                under this chapter during the reporting period.
            ``(3) Secretarial report.--The Secretary shall review the 
        reports submitted under paragraph (1) and shall provide a 
        comprehensive annual report to Congress on the activities 
        conducted under this chapter.

``SEC. 5126G. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS.

    ``No financial obligation of an eligible entity entered into 
pursuant to this chapter (such as an obligation under a guarantee, 
bond, note, evidence of debt, or loan) shall be an obligation of, or 
guaranteed in any respect by, the United States. The full faith and 
credit of the United States is not pledged to the payment of funds that 
may be required to be paid under any obligation made by an eligible 
entity pursuant to any provision of this chapter.

``SEC. 5126H. RECOVERY OF FUNDS.

    ``(a) In General.--The Secretary, in accordance with chapter 37 of 
title 31, United States Code, shall collect--
            ``(1) all of the funds in a reserve account established by 
        an eligible entity under section 5126D(a) if the Secretary 
        determines, not earlier than 2 years after the date on which 
        the entity first received funds under this chapter, that the 
        entity has failed to make substantial progress in carrying out 
        the purposes described in section 5126D(b); or
            ``(2) all or a portion of the funds in a reserve account 
        established by an eligible entity under section 5126D(a) if the 
        Secretary determines that the eligible entity has permanently 
        ceased to use all or a portion of the funds in such account to 
        accomplish any purpose described in section 5126D(b).
    ``(b) Exercise of Authority.--The Secretary shall not exercise the 
authority provided in subsection (a) to collect from any eligible 
entity any funds that are being properly used to achieve 1 or more of 
the purposes described in section 5126D(b).
    ``(c) Procedures.--The provisions of sections 451, 452, and 458 of 
the General Education Provisions Act (20 U.S.C. 1234 et seq.) shall 
apply to the recovery of funds under subsection (a).
    ``(d) Construction.--This section shall not be construed to impair 
or affect the authority of the Secretary to recover funds under part D 
of the General Education Provisions Act (20 U.S.C. 1234 et seq.).

``SEC. 5126I. DEFINITIONS.

    ``In this chapter:
            ``(1) Charter school.--The term `charter school' has the 
        meaning given such term in section 5120.
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a public entity, such as a State or local 
                governmental entity;
                    ``(B) a private nonprofit entity; or
                    ``(C) a consortium of entities described in 
                subparagraphs (A) and (B).

``SEC. 5126J. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this chapter 
$200,000,000 for fiscal year 2002 and each subsequent fiscal year.''.

           TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

SEC. 601. PARENTAL INVOLVEMENT AND ACCOUNTABILITY.

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

          ``TITLE VI--PARENTAL INVOLVEMENT AND ACCOUNTABILITY

                     ``PART A--PARENTAL ASSISTANCE

``SEC. 6101. PARENTAL INFORMATION AND RESOURCE CENTERS.

    ``(a) Purpose.--The purpose of this part is--
            ``(1) to provide leadership, technical assistance, and 
        financial support to nonprofit organizations (including 
        statewide nonprofit organizations) and local educational 
        agencies to help the organizations and agencies implement 
        successful and effective parental involvement policies, 
        programs, and activities that lead to improvements in student 
        performance;
            ``(2) to strengthen partnerships among parents (including 
        parents of children from birth through age 5), teachers, 
        principals, administrators, and other school personnel in 
        meeting the educational needs of children;
            ``(3) to develop and strengthen the relationship between 
        parents and the school;
            ``(4) to further the developmental progress primarily of 
        children assisted under this part;
            ``(5) to coordinate activities funded under this part with 
        parental involvement initiatives funded under section 1118 and 
        other provisions of this Act; and
            ``(6) to provide a comprehensive approach to improving 
        student learning through coordination and integration of 
        Federal, State, and local services and programs.
    ``(b) Grants Authorized.--
            ``(1) In general.--The Secretary is authorized to award 
        grants in each fiscal year to nonprofit organizations 
        (including statewide nonprofit organizations), and nonprofit 
        organizations in consortia with local educational agencies, to 
        establish school-linked or school-based parental information 
        and resource centers that provide comprehensive training, 
        information, and support to--
                    ``(A) parents of children enrolled in elementary 
                schools and secondary schools;
                    ``(B) individuals who work with the parents 
                described in subparagraph (A);
                    ``(C) State educational agencies, local educational 
                agencies, schools, organizations that support family-
                school partnerships (such as parent-teacher 
                associations and Parents as Teachers organizations), 
                and other organizations that carry out parent education 
                and family involvement programs; and
                    ``(D) parents of children from birth through age 5.
            ``(2) Award rule.--In awarding grants under this part, the 
        Secretary shall ensure that such grants are distributed in all 
        geographic regions of the United States.
    ``(c) Construction.--Nothing in this section shall be construed to 
prohibit a parental information and resource center from--
            ``(1) having its employees or agents meet with a parent at 
        a site that is not on school grounds; or
            ``(2) working with another agency that serves children.

``SEC. 6102. APPLICATIONS.

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

``SEC. 6103. USES OF FUNDS.

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

``SEC. 6104. TECHNICAL ASSISTANCE.

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

``SEC. 6105. REPORTS.

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

``SEC. 6106. GENERAL PROVISIONS.

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

``SEC. 6106A. LOCAL FAMILY INFORMATION CENTERS.

    ``(a) Centers Authorized.--The Secretary shall award grants to, and 
enter into contracts and cooperative agreements with, local nonprofit 
parent organizations to enable the organizations to support local 
family information centers that help ensure that parents of students in 
schools assisted under this part have the training, information, and 
support the parents need to enable the parents to participate 
effectively in their children's early childhood education, in their 
children's elementary and secondary education and in helping their 
children to meet challenging State standards.
    ``(b) Definition of Local Nonprofit Parent Organization.--In this 
section, the term `local nonprofit parent organization' means a private 
nonprofit organization (other than an institution of higher education) 
that--
            ``(1) has a demonstrated record of working with low-income 
        individuals and parents;
            ``(2)(A) has a board of directors the majority of whom are 
        parents of students in schools that are assisted under this 
        part and located in the geographic area to be served by the 
        center; or
            ``(B) has a special governing committee to direct and 
        implement the center, a majority of the members of whom are 
        parents of students in schools assisted under this part; and
            ``(3) is located in a community with schools that receive 
        funds under this part, and is accessible to the families of 
        students in those schools.

``SEC. 6107. PARENTAL ASSISTANCE AND LOCAL FAMILY INFORMATION CENTERS.

    ``(a) In General.--For the purpose of carrying out this part, there 
are authorized to be appropriated $80,000,000 for fiscal year 2002 and 
such sums as may be necessary for each of the 6 succeeding fiscal 
years.
    ``(b) Reservation.--Of the amount appropriated under subsection (a) 
for a fiscal year--
            ``(1) the Secretary shall reserve $50,000,000 to carry out 
        this part, other than section 6106A; and
            ``(2) in the case of any amounts appropriated in excess of 
        $50,000,000 for such fiscal year, the Secretary shall allocate 
        an amount equal to--
                    ``(A) 50 percent of such excess to carry out 
                section 6106A; and
                    ``(B) 50 percent of such excess to carry out parent 
                information and resource centers under this part.

                ``PART B--IMPROVING ACADEMIC ACHIEVEMENT

``SEC. 6201. EDUCATION AWARDS.

    ``(a) Achievement in Education Awards.--
            ``(1) In general.--The Secretary may make awards, to be 
        known as `Achievement in Education Awards', using a peer review 
        process, to the States that, beginning with the 2002-2003 
        school year, make the most progress in improving educational 
        achievement.
            ``(2) Criteria.--
                    ``(A) In general.--The Secretary shall make the 
                awards on the basis of criteria consisting of--
                            ``(i) the progress of each of the 
                        categories of students described in section 
                        1111(b)(2)(B)(v)(II)--
                                    ``(I) towards the goal of all such 
                                students reaching the proficient level 
                                of performance; and
                                    ``(II) beginning with the 2nd year 
                                for which data are available for all 
                                States, on State assessments under the 
                                National Assessment of Educational 
                                Progress of 4th and 8th grade reading 
                                and mathematics skills;
                            ``(ii) the progress of all students in the 
                        State towards the goal of all students reaching 
                        the proficient level of performance, and 
                        (beginning with the 2nd year for which data are 
                        available for all States) the progress of all 
                        students on the assessments described in clause 
                        (i)(II);
                            ``(iii) the progress of the State in 
                        improving the English proficiency of students 
                        who enter school with limited English 
                        proficiency;
                            ``(iv) the progress of the State in 
                        increasing the percentage of students who 
                        graduate from secondary school; and
                            ``(v) the progress of the State in 
                        increasing the percentage of students who take 
                        advanced coursework, such as advanced placement 
                        and international baccalaureate courses, and 
                        who pass advanced placement and international 
                        baccalaureate tests.
            ``(B) Weight.--In applying the criteria described in 
        subparagraph (A), the Secretary shall give the greatest weight 
        to the criterion described in subparagraph (A)(i).
    ``(b) Assessment Completion Bonuses.--
            ``(1) In general.--At the end of school year 2006-2007, the 
        Secretary shall make 1-time bonus payments to States that 
        develop State assessments by the deadline established under 
        section 1111(b)(3)(F) and as required under section 
        1111(b)(3)(F) that are of particularly high quality in terms of 
        assessing the performance of students in grades 3 through 8. 
        The Secretary shall make the awards to States that develop 
        assessments that most successfully assess the range and depth 
        of student knowledge and proficiency in meeting State 
        performance standards, in each academic subject in which the 
        State is required to conduct the assessments.
            ``(2) Peer review.--In making awards under paragraph (1), 
        the Secretary shall use a peer review process.
    ``(c) No Child Left Behind Awards.--The Secretary may make awards, 
to be known as `No Child Left Behind Awards' to the schools that--
            ``(1) are nominated by the States in which the schools are 
        located or, in the case of a Bureau of Indian Affairs funded 
        school, by the Secretary of the Interior; and
            ``(2) have made the greatest progress in improving the 
        educational achievement of economically disadvantaged students.
    ``(d) Fund To Improve Education Achievement.--The Secretary may 
make awards for activities other than the activities described in 
subsections (a) through (c), such as character education and the 
identification and recognition of exemplary schools and programs such 
as Blue Ribbon Schools, that are designed to promote the improvement of 
elementary and secondary education nationally.
    ``(e) Blue Ribbon Schools Dissemination Demonstration.--
            ``(1) In general.--The Secretary shall conduct 
        demonstration projects to evaluate the effectiveness of using 
        the best practices of Blue Ribbon Schools to improve the 
        educational outcomes of elementary and secondary schools that 
        fail to make adequate yearly progress, as defined in the plan 
        of the State under section 1111(b)(2)(B).
            ``(2) Report to congress.--Not later than 3 years after the 
        date on which the Secretary implements the initial 
        demonstration projects under subsection (a), the Secretary 
        shall submit to Congress a report regarding the effectiveness 
        of the demonstration projects.
            ``(3) Authorization of appropriations.--There is authorized 
        to be appropriated to carry out this subsection $7,500,000 for 
        fiscal year 2002, and such sums as may be necessary in each of 
        the 7 fiscal years thereafter.

``SEC. 6202. LOSS OF ADMINISTRATIVE FUNDS.

    ``(a) 2 Years of Insufficient Progress.--
            ``(1) Reduction.--If the Secretary makes the determinations 
        described in paragraph (2) for 2 consecutive years, the 
        Secretary shall reduce, by not more than 30 percent, the amount 
        of funds that the State may reserve for the subsequent fiscal 
        year for State administration under the programs authorized by 
        this Act that the Secretary determines are formula grant 
        programs.
            ``(2) Determinations.--The determinations referred to in 
        paragraph (1) are determinations, made primarily on the basis 
        of data from the State assessment system described in section 
        1111 and data from State assessments under the National 
        Assessment of Educational Progress of 4th and 8th grade reading 
        and mathematics skills, that--
                    ``(A) the State has failed to make adequate yearly 
                progress as defined under section 1111(b)(2) (B) and 
                (D) for all students and for each of the categories of 
                students described in section 1111(b)(2)(B)(v)(II);
                    ``(B) beginning with the 2nd year for which data 
                are available on State assessments under the National 
                Assessment of Educational Progress of 4th and 8th grade 
                reading and mathematics, the State has failed to 
                demonstrate an increase in the achievement of each of 
                the categories of students described in section 
                1111(b)(2)(B)(v)(II); and
                    ``(C) the State has failed to meet its annual 
                measurable performance objectives, for helping limited 
                English proficient students develop proficiency in 
                English, that are required to be developed under 
                section 3329.
    ``(b) Three or More Years of Insufficient Progress.--If the 
Secretary makes the determinations described in subsection (a)(2) for a 
third or subsequent consecutive year, the Secretary shall reduce, by 
not more than 75 percent, the amount of funds that the State may 
reserve for the subsequent fiscal year for State administration under 
the programs authorized by this Act that the Secretary determines are 
formula grant programs.
    ``(c) Small States.--For the purpose of carrying out subsection 
(a)(2) and section 6201(a)(2)(A)(i)(II), with respect to any year for 
which a small State described in section 1111(c)(2) does not 
participate in the assessments described in section 1111(c)(2), the 
Secretary shall use the most recent data from those assessments for 
that State.

``SEC. 6203. STUDY OF ASSESSMENT COSTS.

    ``(a) Study.--
            ``(1) In general.--The Comptroller General of the United 
        States shall conduct a study of the costs of conducting student 
        assessments under section 1111.
            ``(2) Contents.--In conducting the study, the Comptroller 
        General of the United States shall--
            ``(A) draw on and use the best available data, including 
        cost data from each State that has developed or administered 
        statewide student assessments under section 1111 and cost or 
        pricing data from companies that develop student assessments 
        described in such section;
            ``(B) determine the aggregate cost for all States to 
        develop the student assessments required under section 1111, 
        and the portion of that cost that is expected to be incurred in 
        each of fiscal years 2002 through 2008;
            ``(C) determine the aggregate cost for all States to 
        administer the student assessments required under section 1111 
        and the portion of that cost that is expected to be incurred in 
        each of fiscal years 2002 through 2008; and
            ``(D) determine the costs and portions described in 
        subparagraphs (B) and (C) for each State, and the factors that 
        may explain variations in the costs and portions among States.
    ``(b) Report.--
            ``(1) In general.--The Comptroller General of the United 
        States shall, not later than May 31, 2002, submit a report 
        containing the results of the study described in subsection (a) 
        to--
                    ``(A) the Committee on Appropriations of the House 
                of Representatives and the Subcommittee on Labor, 
                Health and Human Services, and Education of that 
                Committee;
                    ``(B) the Committee on Appropriations of the Senate 
                and the Subcommittee on Labor, Health and Human 
                Services, and Education of that Committee;
                    ``(C) the Committee on Education and the Workforce 
                of the House of Representatives; and
                    ``(D) the Committee on Health, Education, Labor, 
                and Pensions of the Senate.
            ``(2) Contents.--The report shall include--
                    ``(A) a thorough description of the methodology 
                employed in conducting the study; and
                    ``(B) the determinations of costs and portions 
                described in subparagraphs (B) through (D) of 
                subsection (a)(2).
    ``(c) Definition.--In this section, the term `State' means 1 of the 
several States of the United States.

``SEC. 6204. GRANTS FOR STATE ASSESSMENTS AND RELATED ACTIVITIES.

    ``(a) State Grants Authorized.--From amounts appropriated under 
subsection (c) the Secretary shall award grants to States to enable the 
States to pay the costs of--
            ``(1) developing assessments and standards required by 
        amendments made to this Act by the Better Education for 
        Students and Teachers Act;
            ``(2) working in voluntary partnerships with other States 
        to develop such assessments and standards; and
            ``(3) other activities described in this part or related to 
        ensuring accountability for results in the State's public 
        elementary schools or secondary schools, and local educational 
        agencies, such as--
                    ``(A) developing content and performance standards, 
                and aligned assessments, in subjects other than those 
                assessments that were required by amendments made to 
                section 1111 by the Better Education for Students and 
                Teachers Act; and
                    ``(B) administering the assessments required by 
                amendments made to section 1111 by the Better Education 
                for Students and Teachers Act.
    ``(b) Allocations to States.--
            ``(1) In general.--From the amount appropriated to carry 
        out this section for any fiscal year, the Secretary first shall 
        allocate $3,000,000 to each State.
            ``(2) Remainder.--The Secretary shall allocate any 
        remaining funds among the States on the basis of their 
        respective numbers of children enrolled in grades 3 through 8 
        in public elementary schools and secondary schools.
            ``(3) Definition of state.--For the purpose of this 
        subsection, the term `State' means each of the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto Rico.
    ``(c) Authorization of Appropriations.--For the purposes of 
carrying out this section, there are authorized to be appropriated 
$400,000,000 for fiscal year 2002, and such sums as may be necessary 
for each of the succeeding 6 fiscal years.

``SEC. 6205. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Grants for State Assessments and Related Activities.--
            ``(1) State grants authorized.--From amounts appropriated 
        under paragraph (3) the Secretary shall award grants to States 
        to enable the States to pay the costs of--
                    ``(A) developing assessments and standards required 
                by amendments made to this Act by the Better Education 
                for Students and Teachers Act; and
                    ``(B) other activities described in this part or 
                related to ensuring accountability for results in the 
                State's public elementary schools or secondary schools, 
                and local educational agencies, such as--
                            ``(i) developing content and performance 
                        standards, and aligned assessments, in subjects 
                        other than those assessments that were required 
                        by amendments made to section 1111 by the 
                        Better Education for Students and Teachers Act; 
                        and
                            ``(ii) administering the assessments 
                        required by amendments made to section 1111 by 
                        the Better Education for Students and Teachers 
                        Act.
            ``(2) Allocations to states.--
                    ``(A) In general.--From the amount appropriated to 
                carry out this subsection for any fiscal year, the 
                Secretary shall first allocate $3,000,000 to each 
                State.
                    ``(B) Remainder.--The Secretary shall allocate any 
                remaining funds among the States on the basis of their 
                respective numbers of children enrolled in grades 3 
                through 8 in public elementary schools and secondary 
                schools.
                    ``(C) Definition of state.--For the purpose of this 
                subsection, the term `State' means each of the 50 
                States, the District of Columbia, and the Commonwealth 
                of Puerto Rico.
            ``(3) Authorization of appropriations.--For the purposes of 
        carrying out paragraph (1), there are authorized to be 
        appropriated $400,000,000 for fiscal year 2002, and such sums 
        as may be necessary for each of the succeeding 6 fiscal years.
    ``(b) National Assessment of Educational Progress.--For the purpose 
of administering the State assessments under the National Assessment of 
Educational Progress, there are authorized to be appropriated 
$110,000,000 for fiscal year 2002, and such sums as may be necessary 
for each of the 6 succeeding fiscal years.
    ``(c) Education Awards.--For the purpose of carrying out section 
6201, there are authorized to be appropriated $50,000,000 for fiscal 
year 2002, and such sums as may be necessary for each of the 6 
succeeding fiscal years.

                 ``PART C--STUDENT EDUCATION ENRICHMENT

``SEC. 6301. SHORT TITLE.

    ``This part may be cited as the `Student Education Enrichment 
Demonstration Act'.

``SEC. 6302. PURPOSE.

    ``The purpose of this part is to establish a demonstration program 
that provides Federal support to States and local educational agencies 
to provide high quality summer academic enrichment programs, for public 
school students who are struggling academically, that are implemented 
as part of statewide education accountability programs.

``SEC. 6303. DEFINITION.

    ``In this part, the term `student' means an elementary school or 
secondary school student.

``SEC. 6304. GRANTS TO STATES.

    ``(a) In General.--The Secretary shall establish a demonstration 
program through which the Secretary shall make grants to State 
educational agencies, on a competitive basis, to enable the agencies to 
assist local educational agencies in carrying out high quality summer 
academic enrichment programs as part of statewide education 
accountability programs.
    ``(b) Eligibility.--For a State educational agency to be eligible 
to receive a grant under subsection (a), the State served by the State 
educational agency shall--
            ``(1) have in effect all standards and assessments required 
        under section 1111; and
            ``(2) compile and annually distribute to parents a public 
        school report card that, at a minimum, includes information on 
        student and school performance for each of the assessments 
        required under section 1111.
    ``(c) Application.--
            ``(1) In general.--To be eligible to receive a grant under 
        this section, a State educational agency shall submit an 
        application to the Secretary at such time, in such manner, and 
        containing such information as the Secretary may require.
            ``(2) Contents.--Such application shall include--
                    ``(A) information describing specific measurable 
                goals and objectives to be achieved in the State 
                through the summer academic enrichment programs carried 
                out under this part, which may include specific 
                measurable annual educational goals and objectives 
                relating to--
                            ``(i) increased student academic 
                        achievement;
                            ``(ii) decreased student dropout rates; or
                            ``(iii) such other factors as the State 
                        educational agency may choose to measure; and
                    ``(B) information on criteria, established or 
                adopted by the State, that--
                            ``(i) the State will use to select local 
                        educational agencies for participation in the 
                        summer academic enrichment programs carried out 
                        under this part; and
                            ``(ii) at a minimum, will assure that 
                        grants provided under this part are provided 
                        to--
                                    ``(I) the local educational 
                                agencies in the State that--
                                            ``(aa) are serving more 
                                        than 1 school identified for 
                                        school improvement under 
                                        section 1116(c); and
                                            ``(bb) have the highest 
                                        percentages of students not 
                                        achieving a proficient level of 
                                        performance on State 
                                        assessments required under 
                                        section 1111;
                                    ``(II) local educational agencies 
                                that submit grant applications under 
                                section 6305 describing programs that 
                                the State determines would be both 
                                highly successful and replicable; and
                                    ``(III) an assortment of local 
                                educational agencies serving urban, 
                                suburban, and rural areas.

``SEC. 6305. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) In General.--
            ``(1) First year.--
                    ``(A) In general.--For the first year that a State 
                educational agency receives a grant under this part, 
                the State educational agency shall use the funds made 
                available through the grant to make grants to eligible 
                local educational agencies in the State to pay for the 
                Federal share of the cost of carrying out the summer 
                academic enrichment programs, except as provided in 
                subparagraph (B).
                    ``(B) Technical assistance and planning 
                assistance.--The State educational agency may use not 
                more than 5 percent of the funds--
                            ``(i) to provide to the local educational 
                        agencies technical assistance that is aligned 
                        with the curriculum of the agencies for the 
                        programs;
                            ``(ii) to enable the agencies to obtain 
                        such technical assistance from entities other 
                        than the State educational agency that have 
                        demonstrated success in using the curriculum; 
                        and
                            ``(iii) to assist the agencies in planning 
                        activities to be carried out under this part.
            ``(2) Succeeding years.--
                    ``(A) In general.--For the second and third year 
                that a State educational agency receives a grant under 
                this part, the State educational agency shall use the 
                funds made available through the grant to make grants 
                to eligible local educational agencies in the State to 
                pay for the Federal share of the cost of carrying out 
                the summer academic enrichment programs, except as 
                provided in subparagraph (B).
                    ``(B) Technical assistance and planning 
                assistance.--The State educational agency may use not 
                more than 5 percent of the funds--
                            ``(i) to provide to the local educational 
                        agencies technical assistance that is aligned 
                        with the curriculum of the agencies for the 
                        programs;
                            ``(ii) to enable the agencies to obtain 
                        such technical assistance from entities other 
                        than the State educational agency that have 
                        demonstrated success in using the curriculum; 
                        and
                            ``(iii) to assist the agencies in 
                        evaluating activities carried out under this 
                        part.
    ``(b) Application.--
            ``(1) In general.--To be eligible to receive a grant under 
        this section, a local educational agency shall submit an 
        application to the State educational agency at such time, in 
        such manner, and containing by such information as the 
        Secretary or the State may require.
            ``(2) Contents.--The State shall require that such an 
        application shall include, to the greatest extent practicable--
                    ``(A) information that--
                            ``(i) demonstrates that the local 
                        educational agency will carry out a summer 
                        academic enrichment program funded under this 
                        section--
                                    ``(I) that provides intensive high 
                                quality programs that are aligned with 
                                challenging State content and student 
                                performance standards and that are 
                                focused on reinforcing and boosting the 
                                core academic skills and knowledge of 
                                students who are struggling 
                                academically, as determined by the 
                                State;
                                    ``(II) that focuses on accelerated 
                                learning so that students served 
                                through the program will master the 
                                high level skills and knowledge needed 
                                to meet the highest State standards or 
                                to perform at high levels on all State 
                                assessments required under section 
                                1111;
                                    ``(III) that is based on, and 
                                incorporates best practices developed 
                                from, research-based enrichment methods 
                                and practices;
                                    ``(IV) that has a proposed 
                                curriculum that is directly aligned 
                                with State content and student 
                                performance standards;
                                    ``(V) for which only teachers who 
                                are certified and licensed, and are 
                                otherwise fully qualified teachers, 
                                provide academic instruction to 
                                students enrolled in the program;
                                    ``(VI) that offers to staff in the 
                                program professional development and 
                                technical assistance that are aligned 
                                with the approved curriculum for the 
                                program; and
                                    ``(VII) that incorporates a 
                                parental involvement component that 
                                seeks to involve parents in the 
                                program's topics and students' daily 
                                activities;
                            ``(ii) may include--
                                    ``(I) the proposed curriculum for 
                                the summer academic enrichment program;
                                    ``(II) the local educational 
                                agency's plan for recruiting highly 
                                qualified and highly effective teachers 
                                to participate in the program; and
                                    ``(III) a schedule for the program 
                                that indicates that the program is of 
                                sufficient duration and intensity to 
                                achieve the State's goals and 
                                objectives described in section 
                                6304(c)(2)(A); and
                            ``(iii) shall include an explanation of how 
                        the local educational agency will develop and 
                        utilize individualized learning plans that 
                        outline the steps to be taken to help each 
                        student successfully meet that State's academic 
                        standards upon completion of the summer 
                        academic enrichment program;
                    ``(B) an outline indicating how the local 
                educational agency will utilize other applicable 
                Federal, State, local, or other funds, other than funds 
                made available through the grant, to support the 
                program;
                    ``(C) an explanation of how the local educational 
                agency will ensure that only highly qualified personnel 
                who volunteer to work with the type of student targeted 
                for the program will work with the program and that the 
                instruction provided through the program will be 
                provided by qualified teachers;
                    ``(D) an explanation of the types of intensive 
                training or professional development, aligned with the 
                curriculum of the program, that will be provided for 
                staff of the program;
                    ``(E) an explanation of the facilities to be used 
                for the program;
                    ``(F) an explanation regarding the duration of the 
                periods of time that students and teachers in the 
                program will have contact for instructional purposes 
                (such as the hours per day and days per week of that 
                contact, and the total length of the program);
                    ``(G) an explanation of the proposed student/
                teacher ratio for the program, analyzed by grade level;
                    ``(H) an explanation of the grade levels that will 
                be served by the program;
                    ``(I) an explanation of the approximate cost per 
                student for the program;
                    ``(J) an explanation of the salary costs for 
                teachers in the program;
                    ``(K) a description of a method for evaluating the 
                effectiveness of the program at the local level;
                    ``(L) information describing specific measurable 
                goals and objectives, for each academic subject in 
                which the program will provide instruction, that are 
                consistent with, or more rigorous than, the annual 
                measurable objectives for adequate yearly progress 
                established by the State under section 1111;
                    ``(M) a description of how the local educational 
                agency will involve parents and the community in the 
                program in order to raise academic achievement;
                    ``(N) a description of how the local educational 
                agency will acquire any needed technical assistance 
                that is aligned with the curriculum of the agency for 
                the program, from the State educational agency or other 
                entities with demonstrated success in using the 
                curriculum; and
                    ``(O) a description of the supplemental educational 
                and related services that the local educational agency 
                will provide to students not meeting State academic 
                standards and a description of the additional or 
                alternative programs (other than summer academic 
                enrichment programs) that the local educational agency 
                will provide to students who continue to fail to meet 
                State academic standards, after participating in such 
                programs.
    ``(c) Priority.--In making grants under this section, the State 
educational agency shall give priority to applicants who demonstrate a 
high level of need for the summer academic enrichment programs.
    ``(d) Federal Share.--
            ``(1) In general.--The Federal share of the cost described 
        in subsection (a) is 50 percent.
            ``(2) Non-federal share.--The non-Federal share of the cost 
        may be provided in cash or in kind, fairly evaluated, including 
        plant, equipment, or services.

``SEC. 6306. SUPPLEMENT NOT SUPPLANT.

    ``Funds appropriated pursuant to the authority of this part shall 
be used to supplement and not supplant other Federal, State, and local 
public or private funds expended to provide academic enrichment 
programs.

``SEC. 6307. REPORTS.

    ``(a) State Reports.--Each State educational agency that receives a 
grant under this part shall annually prepare and submit to the 
Secretary a report. The report shall describe--
            ``(1) the method the State educational agency used to make 
        grants to eligible local educational agencies and to provide 
        assistance to schools under this part;
            ``(2) the specific measurable goals and objectives 
        described in section 6304(c)(2)(A) for the State as a whole and 
        the extent to which the State met each of the goals and 
        objectives in the year preceding the submission of the report;
            ``(3) the specific measurable goals and objectives 
        described in section 6305(b)(2)(L) for each of the local 
        educational agencies receiving a grant under this part in the 
        State and the extent to which each of the agencies met each of 
        the goals and objectives in that preceding year;
            ``(4) the steps that the State will take to ensure that any 
        such local educational agency who did not meet the goals and 
        objectives in that year will meet the goals and objectives in 
        the year following the submission of the report or the plan 
        that the State has for revoking the grant of such an agency and 
        redistributing the grant funds to existing or new programs;
            ``(5) how eligible local educational agencies and schools 
        used funds provided by the State educational agency under this 
        part; and
            ``(6) the degree to which progress has been made toward 
        meeting the goals and objectives described in section 
        6304(c)(2)(A).
    ``(b) Report to Congress.--The Secretary shall annually prepare and 
submit to Congress a report. The report shall describe--
            ``(1) the methods the State educational agencies used to 
        make grants to eligible local educational agencies and to 
        provide assistance to schools under this part;
            ``(2) how eligible local educational agencies and schools 
        used funds provided under this part; and
            ``(3) the degree to which progress has been made toward 
        meeting the goals and objectives described in sections 
        6304(c)(2)(A) and 6305(b)(2)(L).
    ``(c) Government Accounting Office Report to Congress.--The 
Comptroller General of the United States shall conduct a study 
regarding the demonstration program carried out under this part and the 
impact of the program on student achievement. The Comptroller General 
shall prepare and submit to Congress a report containing the results of 
the study.

``SEC. 6308. ADMINISTRATION.

    ``The Secretary shall develop program guidelines for and oversee 
the demonstration program carried out under this part.

``SEC. 6309. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$25,000,000 for each of fiscal years 2002 through 2004.

``SEC. 6310. TERMINATION.

    ``The authority provided by this part terminates 3 years after the 
date of enactment of the Better Education for Students and Teachers 
Act.

   ``PART D--INCREASING PARENTAL INVOLVEMENT AND PROTECTING STUDENT 
                                PRIVACY

``SEC. 6401. INTENT.

    ``It is the purpose of this part to provide parents with notice of 
and opportunity to make informed decisions regarding the collection of 
information for commercial purposes occurring in their children's 
classrooms.

``SEC. 6402. COMMERCIALIZATION POLICIES AND PRIVACY FOR STUDENTS.

    ``(a) Prohibition.--Except as provided in subsection (b), no State 
educational agency or local educational agency that is a recipient of 
funds under this Act may--
            ``(1) disclose data or information the agency gathered from 
        a student to a person or entity that seeks disclosure of the 
        data or information for the purpose of benefiting the person or 
        entity's commercial interests; or
            ``(2) permit a person or entity to gather from a student, 
        or assist a person or entity in gathering from a student, data 
        or information, if the purpose of gathering the data or 
        information is to benefit the commercial interests of the 
        person or entity.
    ``(b) Parental Consent.--
            ``(1) Disclosure.--A State educational agency or local 
        educational agency that is a recipient of funds under this Act 
        may disclose data or information under subsection (a)(1) if the 
        agency, prior to the disclosure--
                    ``(A) explains to the student's parent, in writing, 
                what data or information will be disclosed, to which 
                person or entity the data or information will be 
                disclosed, the amount of class time, if any, that will 
                be consumed by the disclosure, and how the person or 
                entity will use the data or information; and
                    ``(B) obtains the parent's written permission for 
                the disclosure.
            ``(2) Gathering.--A State educational agency or local 
        educational agency that is a recipient of funds under this Act 
        may permit or assist a person or entity with the gathering of 
        data or information under subsection (a)(2) if the agency, 
        prior to the gathering--
                    ``(A) explains to the student's parent, in writing, 
                what data or information will be gathered including 
                whether any of the information is personally 
                identifiable, which person or entity will gather the 
                data or information, the amount of class time if any, 
                that will be consumed by the gathering, and how the 
                person or entity will use the data or information; and
                    ``(B) obtains the parent's written permission for 
                the gathering.
    ``(c) Definitions.--In this part:
            ``(1) Student.--The term `student' means a student under 
        the age of 18.
            ``(2) Commercial interest.--The term `commercial interest' 
        does not include the interest of a person or entity in 
        developing, evaluating, or providing educational products or 
        services for or to students or educational institutions, such 
        as--
                    ``(A) college and other post-secondary education 
                recruiting;
                    ``(B) book clubs and other programs providing 
                access to low cost books or other related literary 
                products;
                    ``(C) curriculum and instructional materials used 
                by elementary and secondary schools to teach if--
                            ``(i) the information is not used to sell 
                        or advertise another product;
                            ``(ii) the information is not used to 
                        develop another product that is not covered by 
                        the exemption from commercial interest in this 
                        paragraph; and
                            ``(iii) the curriculum and instructional 
                        materials are used in accordance with 
                        applicable Federal, State, and local policies, 
                        if any; and
                    ``(D) the development and administration of tests 
                and assessments used by elementary and secondary 
                schools to provide cognitive, evaluative, diagnostic, 
                clinical, aptitude, or achievement information about 
                students (or to generate other statistically useful 
                data for the purpose of securing such tests and 
                assessments) and the subsequent analysis and public 
                release of aggregate data if--
                            ``(i) the information is not used to sell 
                        or advertise another product;
                            ``(ii) the information is not used to 
                        develop another product that is not covered by 
                        the exemption from commercial interest in this 
                        paragraph; and
                            ``(iii) the tests are conducted in 
                        accordance with applicable Federal, State, and 
                        local policies, if any.
    ``(d) Locally Developed Exceptions.--A local educational agency, in 
consultation with parents, may develop appropriate exceptions to the 
consent requirements contained in this part if--
            ``(1) the information to be collected is not personally 
        identifiable;
            ``(2) the local educational agency provides written notice 
        to all parents of its policy regarding data or information 
        collection activities for commercial purposes; and
            ``(3) with respect to any particular data or information 
        gathering or disclosure, the agency provides written notice to 
        all parents of--
                    ``(A) the data or information to be collected;
                    ``(B) the person or entity to whom the data or 
                information will be disclosed;
                    ``(C) the amount of class time, if any, that will 
                be consumed by the collection activities; and
                    ``(D) the manner in which the person or entity will 
                use the data or information.
    ``(e) Funding.--A State educational agency or local educational 
agency may use funds provided under subpart 4 of part B of title V to 
enhance parental involvement in areas affecting children's in-school 
privacy.
    ``(f) Technical Assistance.--Upon the request of a State 
educational agency or local educational agency, the Secretary shall 
provide technical assistance to such an agency concerning compliance 
with this part.
    ``(g) Enforcement.--The Secretary shall take appropriate actions to 
enforce, and address violations of, this section, in accordance with 
this chapter.
    ``(h) Office, Functions.--The Secretary shall designate an office 
to enforce this section and to provide technical assistance.
    ``(i) Rule of Construction.--Nothing in this section shall be 
construed to supersede the Family Educational Rights and Privacy Act 
(20 U.S.C. 1232g).''.

SEC. 602. GUIDELINES FOR STUDENT PRIVACY.

    (a) Development of Student Privacy Guidelines.--A State or local 
educational agency that receives funds under this Act shall develop and 
adopt guidelines regarding arrangements to protect student privacy that 
are entered into by the agency with public and private entities that 
are not schools.
    (b) Notification of Parents of Privacy Guidelines.--The guidelines 
developed by an educational agency under subsection (a) shall provide 
for a reasonable notice of the adoption of such guidelines to be given, 
by the agency or a school under the agency's supervision, to the 
parents and guardians of students under the jurisdiction of such agency 
or school. Such notice shall be provided at least annually and within a 
reasonable period of time after any change in such guidelines.
    (c) Exceptions.--This section shall not apply to the development, 
evaluation, or provision of educational products or services for or to 
students or educational institutions, such as the following:
            (1) College or other post-secondary education recruitment 
        or military recruitment.
            (2) Book clubs, magazines, and programs providing access to 
        other literary products.
            (3) Curriculum and instructional materials used by 
        elementary and secondary schools to teach.
            (4) The development and administration of tests and 
        assessments used by elementary and secondary schools to provide 
        cognitive, evaluative, diagnostic, clinical, aptitude, or 
        achievement information about students (or to generate other 
        statistically useful data for the purpose of securing such 
        tests and assessments) and the subsequent analysis and public 
        release of aggregate data.
            (5) The sale by students of products or services to raise 
        funds for school- or education-related activities.
            (6) Student recognition programs.
    (d) Information Activities by the Secretary.--Once each year, the 
Secretary shall inform each State educational agency and each local 
educational agency of the educational agency's obligations under 
section 438 of the General Education Provisions Act (added by the 
Family Educational Rights and Privacy Act of 1974; 20 U.S.C. 1232g) and 
the Children's Online Privacy Protection Act of 1998 (15 U.S.C. 6501 et 
seq.).
    (e) Funding.--A State educational agency or local educational 
agency may use funds provided under subpart 4 of part B of title V of 
the Elementary and Secondary Education Act of 1965 to enhance parental 
involvement in areas affecting children's in-school privacy.
    (f) Definitions.--In this section, the terms ``elementary school'', 
``local educational agency'', ``secondary school'', ``Secretary'', and 
``State educational agency'' have the meanings given those terms in 
section 3 of the Elementary and Secondary Education Act of 1965.

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

SEC. 701. PROGRAMS.

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

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

                       ``PART A--INDIAN EDUCATION

``SEC. 7101. FINDINGS.

    ``Congress finds that--
            ``(1) the Federal Government has a special responsibility 
        to ensure that educational programs for all American Indian and 
        Alaska Native children and adults--
                    ``(A) are based on high-quality, internationally 
                competitive content standards and student performance 
                standards, and build on Indian culture and the Indian 
                community;
                    ``(B) assist local educational agencies, Indian 
                tribes, and other entities and individuals in providing 
                Indian students the opportunity to achieve the 
                standards described in subparagraph (A); and
                    ``(C) meet the unique educational and culturally 
                related academic needs of American Indian and Alaska 
                Native students;
            ``(2) since the date of enactment of the Indian Education 
        Act in 1972, the level of involvement of Indian parents in the 
        planning, development, and implementation of educational 
        programs that affect such parents and their children has 
        increased significantly, and schools should continue to foster 
        such involvement;
            ``(3) although the number of Indian teachers, 
        administrators, and university professors has increased since 
        1972, teacher training programs are not recruiting, training, 
        or retraining a sufficient number of Indian individuals as 
        educators to meet the needs of a growing Indian student 
        population in elementary, secondary, vocational, adult, and 
        higher education;
            ``(4) the dropout rate for Indian students is unacceptably 
        high: 9 percent of Indian students who were eighth graders in 
        1988 had already dropped out of school by 1990;
            ``(5) during the period from 1980 to 1990, the percentage 
        of Indian individuals living at or below the poverty level 
        increased from 24 percent to 31 percent, and the readiness of 
        Indian children to learn is hampered by the high incidence of 
        poverty, unemployment, and health problems among Indian 
        children and their families; and
            ``(6) research related specifically to the education of 
        Indian children and adults is very limited, and much of the 
        research is of poor quality or is focused on limited local or 
        regional issues.

``SEC. 7102. PURPOSE.

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

       ``Subpart 1--Formula Grants to Local Educational Agencies

``SEC. 7111. PURPOSE.

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

``SEC. 7112. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) In General.--The Secretary may make grants to local 
educational agencies and Indian tribes in accordance with this section.
    ``(b) Local Educational Agencies.--
            ``(1) Enrollment requirements.--A local educational agency 
        shall be eligible for a grant under this subpart for any fiscal 
        year if the number of Indian children who are eligible under 
        section 7117, and who were enrolled in the schools of the 
        agency, and to whom the agency provided free public education, 
        during the preceding fiscal year--
                    ``(A) was at least 10; or
                    ``(B) constituted not less than 25 percent of the 
                total number of individuals enrolled in the schools of 
                such agency.
            ``(2) Exclusion.--The requirement of paragraph (1) shall 
        not apply in Alaska, California, or Oklahoma, or with respect 
        to any local educational agency located on, or in proximity to, 
        a reservation.
    ``(c) Indian Tribes.--
            ``(1) In general.--If a local educational agency that is 
        otherwise eligible for a grant under this subpart does not 
        establish a parent committee under section 7114(c)(4), an 
        Indian tribe that represents not less than \1/2\ of the 
        eligible Indian children who are served by such local 
        educational agency may apply for such grant by submitting an 
        application in accordance with section 7114.
            ``(2) Special rule.--The Secretary shall treat each Indian 
        tribe applying for a grant pursuant to paragraph (1) as if such 
        Indian tribe were a local educational agency for purposes of 
        this subpart, except that any such tribe shall not be subject 
        to section 7114(c)(4) (relating to a parent committee), section 
        7118(c) (relating to maintenance of effort), or section 7119 
        (relating to State review of applications).

``SEC. 7113. AMOUNT OF GRANTS.

    ``(a) Amount of Grant Awards.--
            ``(1) In general.--Except as provided in subsections (c) 
        and (d), for purposes of making grants under this subpart the 
        Secretary shall allocate to each local educational agency that 
        has an approved application under this subpart an amount equal 
        to the product of--
                    ``(A) the number of Indian children who are 
                eligible under section 7117 and served by such agency; 
                and
                    ``(B) the greater of--
                            ``(i) the average per-pupil expenditure of 
                        the State in which such agency is located; or
                            ``(ii) 80 percent of the average per-pupil 
                        expenditure of all the States.
            ``(2) Reduction.--The Secretary shall reduce the amount of 
        each allocation determined under paragraph (1) or subsection 
        (b) in accordance with subsection (c).
    ``(b) Schools Operated or Supported by the Bureau of Indian 
Affairs.--
            ``(1) In general.--In addition to the grants awarded under 
        subsection (a), and subject to paragraph (2), for purposes of 
        making grants under this subpart the Secretary shall allocate 
        to the Secretary of the Interior an amount equal to the product 
        of--
                    ``(A) the total number of Indian children enrolled 
                in schools that are operated by--
                            ``(i) the Bureau of Indian Affairs; or
                            ``(ii) an Indian tribe, or an organization 
                        controlled or sanctioned by an Indian tribal 
                        government, for the children of such tribe 
                        under a contract with, or grant from, the 
                        Department of the Interior under the Indian 
                        Self-Determination Act or the Tribally 
                        Controlled Schools Act of 1988; and
                    ``(B) the greater of--
                            ``(i) the average per-pupil expenditure of 
                        the State in which the school is located; or
                            ``(ii) 80 percent of the average per-pupil 
                        expenditure of all the States.
            ``(2) Special rule.--Any school described in paragraph (1) 
        may apply for an allocation under this subpart by submitting an 
        application in accordance with section 7114. The Secretary 
        shall treat the school as if the school were a local 
        educational agency for purposes of this subpart, except that 
        any such school shall not be subject to section 7114(c)(4), 
        7118(c), or 7119.
    ``(c) Ratable Reductions.--If the sums appropriated for any fiscal 
year under section 7162(a) are insufficient to pay in full the amounts 
determined for local educational agencies under subsection (a) and for 
the Secretary of the Interior under subsection (b), each of those 
amounts shall be ratably reduced.
    ``(d) Minimum Grant.--
            ``(1) In general.--Notwithstanding subsection (c), a local 
        educational agency (including an Indian tribe as authorized 
        under section 7112(b)) that is eligible for a grant under 
        section 7112, and a school that is operated or supported by the 
        Bureau of Indian Affairs that is eligible for a grant under 
        subsection (b), that submits an application that is approved by 
        the Secretary, shall, subject to appropriations, receive a 
        grant under this subpart in an amount that is not less than 
        $3,000.
            ``(2) Consortia.--Local educational agencies may form a 
        consortium for the purpose of obtaining grants under this 
        subpart.
            ``(3) Increase.--The Secretary may increase the minimum 
        grant under paragraph (1) to not more than $4,000 for all grant 
        recipients if the Secretary determines such increase is 
        necessary to ensure quality programs.
    ``(e) Definition.--In this section, the term `average per-pupil 
expenditure', for a State, means an amount equal to--
            ``(1) the sum of the aggregate current expenditures of all 
        the local educational agencies in the State, plus any direct 
        current expenditures by the State for the operation of such 
        agencies, without regard to the sources of funds from which 
        such local or State expenditures were made, during the second 
        fiscal year preceding the fiscal year for which the computation 
        is made; divided by
            ``(2) the aggregate number of children who were included in 
        average daily attendance and for whom such agencies provided 
        free public education during such preceding fiscal year.

``SEC. 7114. APPLICATIONS.

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

``SEC. 7115. AUTHORIZED SERVICES AND ACTIVITIES.

    ``(a) General Requirements.--Each local educational agency that 
receives a grant under this subpart shall use the grant funds, in a 
manner consistent with the purpose specified in section 7111, for 
services and activities that--
            ``(1) are designed to carry out the comprehensive program 
        of the local educational agency for Indian students, and 
        described in the application of the local educational agency 
        submitted to the Secretary under section 7114;
            ``(2) are designed with special regard for the language and 
        cultural needs of the Indian students; and
            ``(3) supplement and enrich the regular school program of 
        such agency.
    ``(b) Particular Services and Activities.--The services and 
activities referred to in subsection (a) may include--
            ``(1) culturally related activities that support the 
        program described in the application submitted by the local 
        educational agency;
            ``(2) early childhood and family programs that emphasize 
        school readiness;
            ``(3) enrichment programs that focus on problem-solving and 
        cognitive skills development and directly support the 
        attainment of challenging State content standards and State 
        student performance standards;
            ``(4) integrated educational services in combination with 
        other programs that meet the needs of Indian children and their 
        families;
            ``(5) career preparation activities to enable Indian 
        students to participate in programs such as the programs 
        supported by Public Law 103-239 and Public Law 88-210, 
        including programs for tech-prep, mentoring, and apprenticeship 
        activities;
            ``(6) activities to educate individuals concerning 
        substance abuse and to prevent substance abuse;
            ``(7) the acquisition of equipment, but only if the 
        acquisition of the equipment is essential to meet the purpose 
        described in section 7111;
            ``(8) activities that promote the incorporation of 
        culturally responsive teaching and learning strategies into the 
        educational program of the local educational agency;
            ``(9) activities that incorporate American Indian and 
        Alaska Native specific curriculum content, consistent with 
        State standards, into the curriculum used by the local 
        educational agency;
            ``(10) activities to promote coordination and collaboration 
        between tribal, Federal, and State public schools in areas that 
        will improve American Indian and Alaska Native student 
        achievement; and
            ``(11) family literacy services.
    ``(c) Schoolwide Programs.--Notwithstanding any other provision of 
law, a local educational agency may use funds made available to such 
agency under this subpart to support a schoolwide program under section 
1114 if--
            ``(1) the committee composed of parents established 
        pursuant to section 7114(c)(4) approves the use of the funds 
        for the schoolwide program; and
            ``(2) the schoolwide program is consistent with the purpose 
        described in section 7111.
    ``(d) Administrative Costs.--Not more than 5 percent of the funds 
made available to a local educational agency through a grant made under 
this subpart for a fiscal year may be used to pay for administrative 
costs.

``SEC. 7116. INTEGRATION OF SERVICES AUTHORIZED.

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

``SEC. 7117. STUDENT ELIGIBILITY FORMS.

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

``SEC. 7118. PAYMENTS.

    ``(a) In General.--Subject to subsections (b) and (c), the 
Secretary shall pay to each local educational agency that submits an 
application that is approved by the Secretary under this subpart the 
amount computed under section 7113. The Secretary shall notify the 
local educational agency of the amount of the payment not later than 
June 1 of the year for which the Secretary makes the payment.
    ``(b) Payments Taken Into Account by the State.--The Secretary may 
not make a grant under this subpart to a local educational agency for a 
fiscal year if, for such fiscal year, the State in which the local 
educational agency is located takes into consideration payments made 
under this subpart in determining the eligibility of the local 
educational agency for State aid, or the amount of the State aid, with 
respect to the free public education of children during such fiscal 
year or the preceding fiscal year.
    ``(c) Reduction of Payment for Failure To Maintain Fiscal Effort.--
            ``(1) In general.--The Secretary may not pay a local 
        educational agency in a State the full amount of a grant award 
        computed under section 7113 for any fiscal year unless the 
        State educational agency notifies the Secretary, and the 
        Secretary determines, that with respect to the provision of 
        free public education by the local educational agency for the 
        preceding fiscal year, that the combined fiscal effort of the 
        local educational agency and the State, computed on either a 
        per student or aggregate expenditure basis was not less than 90 
        percent of the amount of the combined fiscal effort, computed 
        on the same basis, for the second preceding fiscal year.
            ``(2) Failure.--If, for any fiscal year, the Secretary 
        determines that a local educational agency and State failed to 
        maintain the combined fiscal effort at the level specified in 
        paragraph (1), the Secretary shall--
                    ``(A) reduce the amount of the grant that would 
                otherwise be made to such agency under this subpart in 
                the exact proportion of the failure to maintain the 
                fiscal effort at such level; and
                    ``(B) not use the reduced amount of the combined 
                fiscal effort for the year to determine compliance with 
                paragraph (1) for any succeeding fiscal year, but shall 
                use the amount of expenditures that would have been 
                required to comply with paragraph (1) during the fiscal 
                year for which the determination is made.
            ``(3) Waiver.--
                    ``(A) In general.--The Secretary may waive the 
                requirement of paragraph (1) for a local educational 
                agency, for not more than 1 year at a time, if the 
                Secretary determines that the failure to comply with 
                such requirement is due to exceptional or 
                uncontrollable circumstances, such as a natural 
                disaster or a precipitous and unforeseen decline in the 
                agency's financial resources.
                    ``(B) Future determinations.--The Secretary shall 
                not use the reduced amount of the combined fiscal 
                effort for the year for which the waiver is granted to 
                determine compliance with paragraph (1) for any 
                succeeding fiscal year, but shall use the amount of 
                expenditures that would have been required to comply 
                with paragraph (1) in the absence of the waiver during 
                the fiscal year for which the waiver is granted.
    ``(d) Reallocations.--The Secretary may reallocate, in a manner 
that the Secretary determines will best carry out the purpose of this 
subpart, any amounts that--
            ``(1) based on estimates made by local educational agencies 
        or other information, the Secretary determines will not be 
        needed by such agencies to carry out approved programs under 
        this subpart; or
            ``(2) otherwise become available for reallocation under 
        this subpart.

``SEC. 7119. STATE EDUCATIONAL AGENCY REVIEW.

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

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

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

    ``(a) Purpose.--
            ``(1) In general.--The purpose of this section is to 
        support projects to develop, test, and demonstrate the 
        effectiveness of services and programs to improve educational 
        opportunities and achievement of Indian children.
            ``(2) Coordination.--The Secretary shall take such actions 
        as are necessary to achieve the coordination of activities 
        assisted under this subpart with--
                    ``(A) other programs funded under this Act; and
                    ``(B) other Federal programs operated for the 
                benefit of American Indian and Alaska Native children.
    ``(b) Eligible Entities.--In this section, the term `eligible 
entity' means a State educational agency, local educational agency, 
Indian tribe, Indian organization, federally supported elementary 
school or secondary school for Indian students, Indian institution 
(including an Indian institution of higher education) or a consortium 
of such entities.
    ``(c) Grants Authorized.--
            ``(1) In general.--The Secretary shall award grants to 
        eligible entities to enable such entities to carry out 
        activities that meet the purpose specified in subsection 
        (a)(1), including--
                    ``(A) innovative programs related to the 
                educational needs of educationally disadvantaged 
                children;
                    ``(B) educational services that are not available 
                to such children in sufficient quantity or quality, 
                including remedial instruction, to raise the 
                achievement of Indian children in 1 or more of the core 
                academic subjects of English, mathematics, science, 
                foreign languages, art, history, and geography;
                    ``(C) bilingual and bicultural programs and 
                projects;
                    ``(D) special health and nutrition services, and 
                other related activities, that address the special 
                health, social, and psychological problems of Indian 
                children;
                    ``(E) special compensatory and other programs and 
                projects designed to assist and encourage Indian 
                children to enter, remain in, or reenter school, and to 
                increase the rate of secondary school graduation for 
                Indian children;
                    ``(F) comprehensive guidance, counseling, and 
                testing services;
                    ``(G) early childhood and kindergarten programs, 
                including family-based preschool programs that 
                emphasize school readiness and parental skills, and the 
                provision of services to Indian children with 
                disabilities;
                    ``(H) partnership projects between local 
                educational agencies and institutions of higher 
                education that allow secondary school students to 
                enroll in courses at the postsecondary level to aid 
                such students in the transition from secondary school 
                to postsecondary education;
                    ``(I) partnership projects between schools and 
                local businesses for school-to-work transition programs 
                designed to provide Indian youth with the knowledge and 
                skills the youth need to make an effective transition 
                from school to a first job in a high-skill, high-wage 
                career;
                    ``(J) programs designed to encourage and assist 
                Indian students to work toward, and gain entrance into, 
                an institution of higher education;
                    ``(K) family literacy services; or
                    ``(L) other services that meet the purpose 
                described in subsection (a)(1).
            ``(2) Pre-service or in-service training.--Pre-service or 
        in-service training of professional and paraprofessional 
        personnel may be a part of any program assisted under this 
        section.
    ``(d) Grant Requirements and Applications.--
            ``(1) Grant requirements.--
                    ``(A) In general.--The Secretary may make multiyear 
                grants under subsection (c) for the planning, 
                development, pilot operation, or demonstration of any 
                activity described in subsection (c). The Secretary 
                shall make the grants for periods of not more than 5 
                years.
                    ``(B) Priority.--In making multiyear grants 
                described in this paragraph, the Secretary shall give 
                priority to entities submitting applications that 
                present a plan for combining 2 or more of the 
                activities described in subsection (c) over a period of 
                more than 1 year.
                    ``(C) Progress.--The Secretary shall make a payment 
                for a grant described in this paragraph to an eligible 
                entity after the initial year of the multiyear grant 
                period only if the Secretary determines that the 
                eligible entity has made substantial progress in 
                carrying out the activities assisted under the grant in 
                accordance with the application submitted under 
                paragraph (3) and any subsequent modifications to such 
                application.
            ``(2) Dissemination grants.--
                    ``(A) In general.--In addition to awarding the 
                multiyear grants described in paragraph (1), the 
                Secretary may award grants under subsection (c) to 
                eligible entities for the dissemination of exemplary 
                materials or programs assisted under this section.
                    ``(B) Determination.--The Secretary may award a 
                dissemination grant described in this paragraph if, 
                prior to awarding the grant, the Secretary determines 
                that the material or program to be disseminated--
                            ``(i) has been adequately reviewed;
                            ``(ii) has demonstrated educational merit; 
                        and
                            ``(iii) can be replicated.
            ``(3) Application.--
                    ``(A) In general.--Any eligible entity that desires 
                to receive a grant under this section shall submit an 
                application to the Secretary at such time and in such 
                manner as the Secretary may require.
                    ``(B) Contents.--Each application submitted to the 
                Secretary under subparagraph (A), other than an 
                application for a dissemination grant under paragraph 
                (2), shall contain--
                            ``(i) a description of how parents of 
                        Indian children and representatives of Indian 
                        tribes have been, and will be, involved in 
                        developing and implementing the activities for 
                        which assistance is sought;
                            ``(ii) assurances that the applicant will 
                        participate, at the request of the Secretary, 
                        in any national evaluation of activities 
                        assisted under this section;
                            ``(iii) information demonstrating that the 
                        proposed program for the activities is a 
                        scientifically based research program, which 
                        may include a program that has been modified to 
                        be culturally appropriate for students who will 
                        be served;
                            ``(iv) a description of how the applicant 
                        will incorporate the proposed activities into 
                        the ongoing school program involved once the 
                        grant period is over; and
                            ``(v) such other assurances and information 
                        as the Secretary may reasonably require.
    ``(e) Administrative Costs.--Not more than 5 percent of the funds 
provided to a grant recipient under this subpart for any fiscal year 
may be used to pay for administrative costs.

``SEC. 7122. PROFESSIONAL DEVELOPMENT.

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

``SEC. 7123. FELLOWSHIPS FOR INDIAN STUDENTS.

    ``(a) Fellowships.--
            ``(1) Authority.--The Secretary is authorized to award 
        fellowships to Indian students to enable such students to study 
        in graduate and professional programs at institutions of higher 
        education.
            ``(2) Requirements.--The fellowships described in paragraph 
        (1) shall be awarded to Indian students to enable such students 
        to pursue a course of study--
                    ``(A) of not more than 4 academic years; and
                    ``(B) that leads--
                            ``(i) toward a postbaccalaureate degree in 
                        medicine, clinical psychology, psychology, law, 
                        education, or a related field; or
                            ``(ii) to an undergraduate or graduate 
                        degree in engineering, business administration, 
                        natural resources, or a related field.
    ``(b) Stipends.--The Secretary shall pay to Indian students awarded 
fellowships under subsection (a) such stipends (including allowances 
for subsistence of such students and dependents of such students) as 
the Secretary determines to be consistent with prevailing practices 
under comparable federally supported programs.
    ``(c) Payments to Institutions in Lieu of Tuition.--The Secretary 
shall pay to the institution of higher education at which such a 
fellowship recipient is pursuing a course of study, in lieu of tuition 
charged to such recipient, such amounts as the Secretary may determine 
to be necessary to cover the cost of education provided to such 
recipient.
    ``(d) Special Rules.--
            ``(1) In general.--If a fellowship awarded under subsection 
        (a) is vacated prior to the end of the period for which the 
        fellowship is awarded, the Secretary may award an additional 
        fellowship for the unexpired portion of the period of the first 
        fellowship.
            ``(2) Written notice.--Not later than 45 days before the 
        commencement of an academic term, the Secretary shall provide 
        to each individual who is awarded a fellowship under subsection 
        (a) for such academic term written notice of--
                    ``(A) the amount of the funding for the fellowship; 
                and
                    ``(B) any stipends or other payments that will be 
                made under this section to, or for the benefit of, the 
                individual for the academic term.
            ``(3) Priority.--Not more than 10 percent of the 
        fellowships awarded under subsection (a) shall be awarded, on a 
        priority basis, to persons receiving training in guidance 
        counseling with a specialty in the area of alcohol and 
        substance abuse counseling and education.
    ``(e) Service Obligation.--
            ``(1) In general.--The Secretary shall require, by 
        regulation, that an individual who receives financial 
        assistance under this section--
                    ``(A) perform work--
                            ``(i) related to the training for which the 
                        individual receives the assistance under this 
                        section; and
                            ``(ii) that benefits Indian people; or
                    ``(B) repay all or a prorated portion of such 
                assistance.
            ``(2) Reporting.--The Secretary shall establish, by 
        regulation, a reporting procedure under which a recipient of 
        assistance under this section shall, not later than 12 months 
        after the date of completion of the training, and periodically 
        thereafter, provide information concerning the compliance of 
        such recipient with the work requirement described in paragraph 
        (1).
    ``(f) Administration of Fellowships.--The Secretary may administer 
the fellowships authorized under this section through a grant to, or 
contract or cooperative agreement with, an Indian organization with 
demonstrated qualifications to administer all facets of the program 
assisted under this section.

``SEC. 7124. GIFTED AND TALENTED INDIAN STUDENTS.

    ``(a) Program Authorized.--The Secretary is authorized to--
            ``(1) establish 2 centers for gifted and talented Indian 
        students at tribally controlled community colleges in 
        accordance with this section; and
            ``(2) support demonstration projects described in 
        subsection (c).
    ``(b) Eligible Entities.--The Secretary shall make grants, or enter 
into contracts, for the activities described in subsection (a), to or 
with--
            ``(1) 2 tribally controlled community colleges that--
                    ``(A) are eligible for funding under the Tribally 
                Controlled College or University Assistance Act of 
                1978; and
                    ``(B) are fully accredited; or
            ``(2) if the Secretary does not receive applications that 
        the Secretary determines to be approvable from 2 colleges that 
        meet the requirements of paragraph (1), the American Indian 
        Higher Education Consortium.
    ``(c) Use of Funds.--
            ``(1) In general.--Funds made available through the grants 
        made, or contracts entered into, by the Secretary under 
        subsection (b) shall be used for--
                    ``(A) the establishment of centers described in 
                subsection (a); and
                    ``(B) carrying out demonstration projects designed 
                to--
                            ``(i) address the special needs of Indian 
                        students in elementary schools and secondary 
                        schools who are gifted and talented; and
                            ``(ii) provide such support services to the 
                        families of the students described in clause 
                        (i) as are needed to enable such students to 
                        benefit from the projects.
            ``(2) Subcontracts.--Each recipient of a grant or contract 
        under subsection (b) to carry out a demonstration project under 
        subsection (a) may enter into a contract with any other entity, 
        including the Children's Television Workshop, to carry out the 
        demonstration project.
            ``(3) Demonstration projects.--Demonstration projects 
        assisted under subsection (b) may include--
                    ``(A) the identification of the special needs of 
                gifted and talented Indian students, particularly at 
                the elementary school level, giving attention to--
                            ``(i) identifying the emotional and 
                        psychosocial needs of such students; and
                            ``(ii) providing such support services to 
                        the families of such students as are needed to 
                        enable such students to benefit from the 
                        project;
                    ``(B) the conduct of educational, psychosocial, and 
                developmental activities that the Secretary determines 
                hold a reasonable promise of resulting in substantial 
                progress toward meeting the educational needs of such 
                gifted and talented children, including--
                            ``(i) demonstrating and exploring the use 
                        of Indian languages and exposure to Indian 
                        cultural traditions; and
                            ``(ii) carrying out mentoring and 
                        apprenticeship programs;
                    ``(C) the provision of technical assistance and the 
                coordination of activities at schools that receive 
                grants under subsection (d) with respect to the 
                activities assisted under such grants, the evaluation 
                of programs assisted under such grants, or the 
                dissemination of such evaluations;
                    ``(D) the use of public television in meeting the 
                special educational needs of such gifted and talented 
                children;
                    ``(E) leadership programs designed to replicate 
                programs for such children throughout the United 
                States, including disseminating information derived 
                from the demonstration projects conducted under 
                subsection (a); and
                    ``(F) appropriate research, evaluation, and related 
                activities pertaining to the needs of such children and 
                to the provision of such support services to the 
                families of such children as are needed to enable such 
                children to benefit from the project.
            ``(4) Application.--Each entity desiring a grant or 
        contract under subsection (b) shall submit an application to 
        the Secretary at such time and in such manner as the Secretary 
        may prescribe.
    ``(d) Additional Grants.--
            ``(1) In general.--The Secretary, in consultation with the 
        Secretary of the Interior, shall award 5 grants to schools 
        funded by the Bureau of Indian Affairs (referred to 
        individually in this section as a `Bureau school') for program 
        research and development and the development and dissemination 
        of curriculum and teacher training material, regarding--
                    ``(A) gifted and talented students;
                    ``(B) college preparatory studies (including 
                programs for Indian students with an interest in 
                pursuing teaching careers);
                    ``(C) students with special culturally related 
                academic needs, including students with social, 
                lingual, and cultural needs; or
                    ``(D) mathematics and science education.
            ``(2) Applications.--Each Bureau school desiring a grant to 
        conduct 1 or more of the activities described in paragraph (1) 
        shall submit an application to the Secretary at such time and 
        in such manner as the Secretary may prescribe.
            ``(3) Special rule.--Each application described in 
        paragraph (2) shall be developed, and each grant under this 
        subsection shall be administered, jointly by the supervisor of 
        the Bureau school and the local educational agency serving such 
        school.
            ``(4) Requirements.--In awarding grants under paragraph 
        (1), the Secretary shall achieve a mixture of the programs 
        described in paragraph (1) that ensures that Indian students at 
        all grade levels and in all geographic areas of the United 
        States are able to participate in a program assisted under this 
        subsection.
            ``(5) Grant period.--Subject to the availability of 
        appropriations, a grant awarded under paragraph (1) shall be 
        awarded for a 3-year period and may be renewed by the Secretary 
        for additional 3-year periods if the Secretary determines that 
        the performance of the grant recipient has been satisfactory.
            ``(6) Dissemination.--
                    ``(A) Cooperative efforts.--The dissemination of 
                any materials developed from activities assisted under 
                paragraph (1) shall be carried out in cooperation with 
                entities that receive funds pursuant to subsection (b).
                    ``(B) Report.--The Secretary shall prepare and 
                submit to the Secretary of the Interior and to Congress 
                a report concerning any results from activities 
                described in this subsection.
            ``(7) Evaluation costs.--
                    ``(A) Division.--The costs of evaluating any 
                activities assisted under paragraph (1) shall be 
                divided between the Bureau schools conducting such 
                activities and the recipients of grants or contracts 
                under subsection (b) who conduct demonstration projects 
                under subsection (a).
                    ``(B) Grants and contracts.--If no funds are 
                provided under subsection (b) for--
                            ``(i) the evaluation of activities assisted 
                        under paragraph (1);
                            ``(ii) technical assistance and 
                        coordination with respect to such activities; 
                        or
                            ``(iii) the dissemination of the 
                        evaluations referred to in clause (i),
                the Secretary shall make such grants, or enter into 
                such contracts, as are necessary to provide for the 
                evaluations, technical assistance, and coordination of 
                such activities, and the dissemination of the 
                evaluations.
    ``(e) Information Network.--The Secretary shall encourage each 
recipient of a grant or contract under this section to work 
cooperatively as part of a national network to ensure that the 
information developed by the grant or contract recipient is readily 
available to the entire educational community.

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

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

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

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

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

               ``Subpart 4--National Research Activities

``SEC. 7141. NATIONAL ACTIVITIES.

    ``(a) Authorized Activities.--The Secretary may use funds made 
available under section 7162(b) for each fiscal year to--
            ``(1) conduct research related to effective approaches for 
        the education of Indian children and adults;
            ``(2) evaluate federally assisted education programs from 
        which Indian children and adults may benefit;
            ``(3) collect and analyze data on the educational status 
        and needs of Indians; and
            ``(4) carry out other activities that are consistent with 
        the purpose of this part.
    ``(b) Eligibility.--The Secretary may carry out any of the 
activities described in subsection (a) directly or through grants to, 
or contracts or cooperative agreements with, Indian tribes, Indian 
organizations, State educational agencies, local educational agencies, 
institutions of higher education, including Indian institutions of 
higher education, and other public and private agencies and 
institutions.
    ``(c) Coordination.--Research activities supported under this 
section--
            ``(1) shall be carried out in consultation with the Office 
        of Educational Research and Improvement to assure that such 
        activities are coordinated with and enhance the research and 
        development activities supported by the Office of Educational 
        Research and Improvement; and
            ``(2) may include collaborative research activities that 
        are jointly funded and carried out by the Office of Indian 
        Education and the Office of Educational Research and 
        Improvement.
    ``(d) Administrative Costs.--Not more than 5 percent of the funds 
made available to an entity through a grant, contract, or agreement 
made or entered into under this subpart for a fiscal year may be used 
to pay for administrative costs.

                  ``Subpart 5--Federal Administration

``SEC. 7151. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

    ``(a) Membership.--There is established a National Advisory Council 
on Indian Education (referred to in this section as the `Council'), 
which shall--
            ``(1) consist of 15 Indian members, who shall be appointed 
        by the President from lists of nominees furnished, from time to 
        time, by Indian tribes and Indian organizations; and
            ``(2) represent different geographic areas of the United 
        States.
    ``(b) Duties.--The Council shall--
            ``(1) advise the Secretary concerning the funding and 
        administration (including the development of regulations and 
        administrative policies and practices) of any program, 
        including any program established under this part--
                    ``(A) with respect to which the Secretary has 
                jurisdiction; and
                    ``(B)(i) that includes Indian children or adults as 
                participants; or
                    ``(ii) that may benefit Indian children or adults;
            ``(2) make recommendations to the Secretary for filling the 
        position of Director of Indian Education whenever a vacancy 
        occurs; and
            ``(3) prepare and submit to Congress, not later than June 
        30 of each year, a report on the activities of the Council, 
        including--
                    ``(A) any recommendations that the Council 
                considers to be appropriate for the improvement of 
                Federal education programs that include Indian children 
                or adults as participants, or that may benefit Indian 
                children or adults; and
                    ``(B) recommendations concerning the funding of any 
                program described in subparagraph (A).

``SEC. 7152. PEER REVIEW.

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

``SEC. 7153. PREFERENCE FOR INDIAN APPLICANTS.

    ``In making grants and entering into contracts or cooperative 
agreements under subpart 2, 3, or 4, the Secretary shall give a 
preference to Indian tribes, organizations, and institutions of higher 
education under any program with respect to which Indian tribes, 
organizations, and institutions are eligible to apply for grants, 
contracts, or cooperative agreements.

``SEC. 7154. MINIMUM GRANT CRITERIA.

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

       ``Subpart 6--Definitions; Authorizations of Appropriations

``SEC. 7161. DEFINITIONS.

    ``In this part:
            ``(1) Adult.--The term `adult' means an individual who--
                    ``(A) has attained age 16; or
                    ``(B) has attained an age that is greater than the 
                age of compulsory school attendance under an applicable 
                State law.
            ``(2) Free public education.--The term `free public 
        education' means education that is--
                    ``(A) provided at public expense, under public 
                supervision and direction, and without tuition charge; 
                and
                    ``(B) provided as elementary or secondary education 
                in the applicable State or to preschool children.
            ``(3) Indian.--The term `Indian' means an individual who 
        is--
                    ``(A) a member of an Indian tribe or band, as 
                membership is defined by the tribe or band, including--
                            ``(i) any tribe or band terminated since 
                        1940; and
                            ``(ii) any tribe or band recognized by the 
                        State in which the tribe or band resides;
                    ``(B) a descendant, in the first or second degree, 
                of an individual described in subparagraph (A);
                    ``(C) an individual who is considered by the 
                Secretary of the Interior to be an Indian for any 
                purpose;
                    ``(D) an Eskimo, Aleut, or other Alaska Native (as 
                defined in section 7306); or
                    ``(E) a member of an organized Indian group that 
                received a grant under the Indian Education Act of 1988 
                as in effect the day preceding the date of enactment of 
                the `Improving America's Schools Act of 1994' (108 
                Stat. 3518).

``SEC. 7162. AUTHORIZATIONS OF APPROPRIATIONS.

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

                  ``PART B--NATIVE HAWAIIAN EDUCATION

``SEC. 7201. SHORT TITLE.

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

``SEC. 7202. FINDINGS.

    ``Congress finds the following:
            ``(1) Native Hawaiians are a distinct and unique indigenous 
        people with a historical continuity to the original inhabitants 
        of the Hawaiian archipelago, whose society was organized as a 
        nation and internationally recognized as a nation by the United 
        States, Britain, France, and Japan, as evidenced by treaties 
        governing friendship, commerce, and navigation.
            ``(2) At the time of the arrival of the first non-
        indigenous people in Hawai`i in 1778, the Native Hawaiian 
        people lived in a highly organized, self-sufficient subsistence 
        social system based on a communal land tenure system with a 
        sophisticated language, culture, and religion.
            ``(3) A unified monarchal government of the Hawaiian 
        Islands was established in 1810 under Kamehameha I, the first 
        King of Hawai`i.
            ``(4) From 1826 until 1893, the United States recognized 
        the sovereignty and independence of the Kingdom of Hawai`i, 
        which was established in 1810 under Kamehameha I, extended full 
        and complete diplomatic recognition to the Kingdom of Hawai`i, 
        and entered into treaties and conventions with the Kingdom of 
        Hawai`i to govern friendship, commerce and navigation in 1826, 
        1842, 1849, 1875, and 1887.
            ``(5) In 1893, the sovereign, independent, internationally 
        recognized, and indigenous government of Hawai`i, the Kingdom 
        of Hawai`i, was overthrown by a small group of non-Hawaiians, 
        including United States citizens, who were assisted in their 
        efforts by the United States Minister, a United States naval 
        representative, and armed naval forces of the United States. 
        Because of the participation of United States agents and 
        citizens in the overthrow of the Kingdom of Hawai`i, in 1993 
        the United States apologized to Native Hawaiians for the 
        overthrow and the deprivation of the rights of Native Hawaiians 
        to self-determination through Public Law 103-150 (107 Stat. 
        1510).
            ``(6) In 1898, the joint resolution entitled `Joint 
        Resolution to provide for annexing the Hawaiian Islands to the 
        United States', approved July 7, 1898 (30 Stat. 750), ceded 
        absolute title of all lands held by the Republic of Hawai`i, 
        including the government and crown lands of the former Kingdom 
        of Hawai`i, to the United States, but mandated that revenue 
        generated from the lands be used `solely for the benefit of the 
        inhabitants of the Hawaiian Islands for educational and other 
        public purposes'.
            ``(7) By 1919, the Native Hawaiian population had declined 
        from an estimated 1,000,000 in 1778 to an alarming 22,600, and 
        in recognition of this severe decline, Congress enacted the 
        Hawaiian Homes Commission Act, 1920 (42 Stat. 108), which 
        designated approximately 200,000 acres of ceded public lands 
        for homesteading by Native Hawaiians.
            ``(8) Through the enactment of the Hawaiian Homes 
        Commission Act, 1920, Congress affirmed the special 
        relationship between the United States and the Native 
        Hawaiians, which was described by then Secretary of the 
        Interior Franklin K. Lane, who said: `One thing that impressed 
        me . . . was the fact that the natives of the island who are 
        our wards, I should say, and for whom in a sense we are 
        trustees, are falling off rapidly in numbers and many of them 
        are in poverty.'.
            ``(9) In 1938, Congress again acknowledged the unique 
        status of the Hawaiian people by including in the Act of June 
        20, 1938 (52 Stat. 781, chapter 530; 16 U.S.C. 391b, 391b-1, 
        392b, 392c, 396, 396a), a provision to lease lands within the 
        National Parks extension to Native Hawaiians and to permit 
        fishing in the area `only by native Hawaiian residents of said 
        area or of adjacent villages and by visitors under their 
        guidance.'.
            ``(10) Under the Act entitled `An Act to provide for the 
        admission of the State of Hawai`i into the Union', approved 
        March 18, 1959 (73 Stat. 4), the United States transferred 
        responsibility for the administration of the Hawaiian Home 
        Lands to the State of Hawai`i but reaffirmed the trust 
        relationship between the United States and the Hawaiian people 
        by retaining the exclusive power to enforce the trust, 
        including the power to approve land exchanges and amendments to 
        such Act affecting the rights of beneficiaries under such Act.
            ``(11) In 1959, under the Act entitled `An Act to provide 
        for the admission of the State of Hawai`i into the Union', the 
        United States also ceded to the State of Hawai`i title to the 
        public lands formerly held by the United States, but mandated 
        that such lands be held by the State `in public trust' and 
        reaffirmed the special relationship that existed between the 
        United States and the Hawaiian people by retaining the legal 
        responsibility to enforce the public trust responsibility of 
        the State of Hawai`i for the betterment of the conditions of 
        Native Hawaiians, as defined in section 201(a) of the Hawaiian 
        Homes Commission Act, 1920.
            ``(12) The United States has recognized and reaffirmed 
        that--
                    ``(A) Native Hawaiians have a cultural, historic, 
                and land-based link to the indigenous people who 
                exercised sovereignty over the Hawaiian Islands, and 
                that group has never relinquished its claims to 
                sovereignty or its sovereign lands;
                    ``(B) Congress does not extend services to Native 
                Hawaiians because of their race, but because of their 
                unique status as the indigenous people of a once 
                sovereign nation as to whom the United States has 
                established a trust relationship;
                    ``(C) Congress has also delegated broad authority 
                to administer a portion of the Federal trust 
                responsibility to the State of Hawai`i;
                    ``(D) the political status of Native Hawaiians is 
                comparable to that of American Indians and Alaska 
                Natives; and
                    ``(E) the aboriginal, indigenous people of the 
                United States have--
                            ``(i) a continuing right to autonomy in 
                        their internal affairs; and
                            ``(ii) an ongoing right of self-
                        determination and self-governance that has 
                        never been extinguished.
            ``(13) The political relationship between the United States 
        and the Native Hawaiian people has been recognized and 
        reaffirmed by the United States, as evidenced by the inclusion 
        of Native Hawaiians in--
                    ``(A) the Native American Programs Act of 1974 (42 
                U.S.C. 2991 et seq.);
                    ``(B) the American Indian Religious Freedom Act (42 
                U.S.C. 1996);
                    ``(C) the National Museum of the American Indian 
                Act (20 U.S.C. 80q et seq.);
                    ``(D) the Native American Graves Protection and 
                Repatriation Act (25 U.S.C. 3001 et seq.);
                    ``(E) the National Historic Preservation Act (16 
                U.S.C. 470 et seq.);
                    ``(F) the Native American Languages Act (25 U.S.C. 
                2901 et seq.);
                    ``(G) the American Indian, Alaska Native, and 
                Native Hawaiian Culture and Art Development Act (20 
                U.S.C. 4401 et seq.);
                    ``(H) the Workforce Investment Act of 1998 (29 
                U.S.C. 2801 et seq.); and
                    ``(I) the Older Americans Act of 1965 (42 U.S.C. 
                3001 et seq.).
            ``(14) In 1981, Congress instructed the Office of Education 
        to submit to Congress a comprehensive report on Native Hawaiian 
        education. The report, entitled the `Native Hawaiian 
        Educational Assessment Project', was released in 1983 and 
        documented that Native Hawaiians scored below parity with 
        regard to national norms on standardized achievement tests, 
        were disproportionately represented in many negative social and 
        physical statistics indicative of special educational needs, 
        and had educational needs that were related to their unique 
        cultural situation, such as different learning styles and low 
        self-image.
            ``(15) In recognition of the educational needs of Native 
        Hawaiians, in 1988, Congress enacted title IV of the Augustus 
        F. Hawkins-Robert T. Stafford Elementary and Secondary School 
        Improvement Amendments of 1988 (102 Stat. 130) to authorize and 
        develop supplemental educational programs to address the unique 
        conditions of Native Hawaiians.
            ``(16) In 1993, the Kamehameha Schools Bishop Estate 
        released a 10-year update of findings of the Native Hawaiian 
        Educational Assessment Project, which found that despite the 
        successes of the programs established under title IV of the 
        Augustus F. Hawkins-Robert T. Stafford Elementary and Secondary 
        School Improvement Amendments of 1988, many of the same 
        educational needs still existed for Native Hawaiians. 
        Subsequent reports by the Kamehameha Schools Bishop Estate and 
        other organizations have generally confirmed those findings. 
        For example--
                    ``(A) educational risk factors continue to start 
                even before birth for many Native Hawaiian children, 
                including--
                            ``(i) late or no prenatal care;
                            ``(ii) high rates of births by Native 
                        Hawaiian women who are unmarried; and
                            ``(iii) high rates of births to teenage 
                        parents;
                    ``(B) Native Hawaiian students continue to begin 
                their school experience lagging behind other students 
                in terms of readiness factors such as vocabulary test 
                scores;
                    ``(C) Native Hawaiian students continue to score 
                below national norms on standardized education 
                achievement tests at all grade levels;
                    ``(D) both public and private schools continue to 
                show a pattern of lower percentages of Native Hawaiian 
                students in the uppermost achievement levels and in 
                gifted and talented programs;
                    ``(E) Native Hawaiian students continue to be 
                overrepresented among students qualifying for special 
                education programs provided to students with learning 
                disabilities, mild mental retardation, emotional 
                impairment, and other such disabilities;
                    ``(F) Native Hawaiians continue to be 
                underrepresented in institutions of higher education 
                and among adults who have completed 4 or more years of 
                college;
                    ``(G) Native Hawaiians continue to be 
                disproportionately represented in many negative social 
                and physical statistics indicative of special 
                educational needs, as demonstrated by the fact that--
                            ``(i) Native Hawaiian students are more 
                        likely to be retained in grade level and to be 
                        excessively absent in secondary school;
                            ``(ii) Native Hawaiian students have the 
                        highest rates of drug and alcohol use in the 
                        State of Hawai`i; and
                            ``(iii) Native Hawaiian children continue 
                        to be disproportionately victimized by child 
                        abuse and neglect; and
                    ``(H) Native Hawaiians now comprise over 23 percent 
                of the students served by the State of Hawai`i 
                Department of Education, and there are and will 
                continue to be geographically rural, isolated areas 
                with a high Native Hawaiian population density.
            ``(17) In the 1998 National Assessment of Educational 
        Progress, Hawaiian fourth-graders ranked 39th among groups of 
        students from 39 States in reading. Given that Hawaiian 
        students rank among the lowest groups of students nationally in 
        reading, and that Native Hawaiian students rank the lowest 
        among Hawaiian students in reading, it is imperative that 
        greater focus be placed on beginning reading and early 
        education and literacy in Hawai`i.
            ``(18) The findings described in paragraphs (16) and (17) 
        are inconsistent with the high rates of literacy and 
        integration of traditional culture and Western education 
        historically achieved by Native Hawaiians through a Hawaiian 
        language-based public school system established in 1840 by 
        Kamehameha III.
            ``(19) Following the overthrow of the Kingdom of Hawai`i in 
        1893, Hawaiian medium schools were banned. After annexation, 
        throughout the territorial and statehood period of Hawai`i, and 
        until 1986, use of the Hawaiian language as an instructional 
        medium in education in public schools was declared unlawful. 
        The declaration caused incalculable harm to a culture that 
        placed a very high value on the power of language, as 
        exemplified in the traditional saying: `I ka `olelo no ke ola; 
        I ka `olelo no ka make. In the language rests life; In the 
        language rests death.'.
            ``(20) Despite the consequences of over 100 years of 
        nonindigenous influence, the Native Hawaiian people are 
        determined to preserve, develop, and transmit to future 
        generations their ancestral territory and their cultural 
        identity in accordance with their own spiritual and traditional 
        beliefs, customs, practices, language, and social institutions.
            ``(21) The State of Hawai`i, in the constitution and 
        statutes of the State of Hawai`i--
                    ``(A) reaffirms and protects the unique right of 
                the Native Hawaiian people to practice and perpetuate 
                their culture and religious customs, beliefs, 
                practices, and language;
                    ``(B) recognizes the traditional language of the 
                Native Hawaiian people as an official language of the 
                State of Hawai`i, which may be used as the language of 
                instruction for all subjects and grades in the public 
                school system; and
                    ``(C) promotes the study of the Hawaiian culture, 
                language, and history by providing a Hawaiian education 
                program and using community expertise as a suitable and 
                essential means to further the program.

``SEC. 7203. PURPOSES.

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

``SEC. 7204. NATIVE HAWAIIAN EDUCATION COUNCIL AND ISLAND COUNCILS.

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

``SEC. 7205. PROGRAM AUTHORIZED.

    ``(a) General Authority.--
            ``(1) Grants and contracts.--The Secretary is authorized to 
        make direct grants to, or enter into contracts with--
                    ``(A) Native Hawaiian educational organizations;
                    ``(B) Native Hawaiian community-based 
                organizations;
                    ``(C) public and private nonprofit organizations, 
                agencies, and institutions with experience in 
                developing or operating Native Hawaiian programs or 
                programs of instruction in the Native Hawaiian 
                language; and
                    ``(D) consortia of the organizations, agencies, and 
                institutions described in subparagraphs (A) through 
                (C),
        to carry out programs that meet the purposes of this part.
            ``(2) Priorities.--In awarding grants or contracts to carry 
        out activities described in paragraph (3), the Secretary shall 
        give priority to entities proposing projects that are designed 
        to address--
                    ``(A) beginning reading and literacy among students 
                in kindergarten through third grade;
                    ``(B) the needs of at-risk children and youth;
                    ``(C) needs in fields or disciplines in which 
                Native Hawaiians are underemployed; and
                    ``(D) the use of the Hawaiian language in 
                instruction.
            ``(3) Authorized activities.--Activities provided through 
        programs carried out under this part may include--
                    ``(A) the development and maintenance of a 
                statewide Native Hawaiian early education and care 
                system to provide a continuum of services for Native 
                Hawaiian children from the prenatal period of the 
                children through age 5;
                    ``(B) the operation of family-based education 
                centers that provide such services as--
                            ``(i) programs for Native Hawaiian parents 
                        and their infants from the prenatal period of 
                        the infants through age 3;
                            ``(ii) preschool programs for Native 
                        Hawaiians; and
                            ``(iii) research on, and development and 
                        assessment of, family-based, early childhood, 
                        and preschool programs for Native Hawaiians;
                    ``(C) activities that enhance beginning reading and 
                literacy in either the Hawaiian or the English language 
                among Native Hawaiian students in kindergarten through 
                third grade and assistance in addressing the distinct 
                features of combined English and Hawaiian literacy for 
                Hawaiian speakers in fifth and sixth grade;
                    ``(D) activities to meet the special needs of 
                Native Hawaiian students with disabilities, including--
                            ``(i) the identification of such students 
                        and their needs;
                            ``(ii) the provision of support services to 
                        the families of those students; and
                            ``(iii) other activities consistent with 
                        the requirements of the Individuals with 
                        Disabilities Education Act;
                    ``(E) activities that address the special needs of 
                Native Hawaiian students who are gifted and talented, 
                including--
                            ``(i) educational, psychological, and 
                        developmental activities designed to assist in 
                        the educational progress of those students; and
                            ``(ii) activities that involve the parents 
                        of those students in a manner designed to 
                        assist in the students' educational progress;
                    ``(F) the development of academic and vocational 
                curricula to address the needs of Native Hawaiian 
                children and adults, including curriculum materials in 
                the Hawaiian language and mathematics and science 
                curricula that incorporate Native Hawaiian tradition 
                and culture;
                    ``(G) professional development activities for 
                educators, including--
                            ``(i) the development of programs to 
                        prepare prospective teachers to address the 
                        unique needs of Native Hawaiian students within 
                        the context of Native Hawaiian culture, 
                        language, and traditions;
                            ``(ii) in-service programs to improve the 
                        ability of teachers who teach in schools with 
                        concentrations of Native Hawaiian students to 
                        meet those students' unique needs; and
                            ``(iii) the recruitment and preparation of 
                        Native Hawaiians, and other individuals who 
                        live in communities with a high concentration 
                        of Native Hawaiians, to become teachers;
                    ``(H) the operation of community-based learning 
                centers that address the needs of Native Hawaiian 
                families and communities through the coordination of 
                public and private programs and services, including--
                            ``(i) preschool programs;
                            ``(ii) after-school programs; and
                            ``(iii) vocational and adult education 
                        programs;
                    ``(I) activities to enable Native Hawaiians to 
                enter and complete programs of postsecondary education, 
                including--
                            ``(i) provision of full or partial 
                        scholarships for undergraduate or graduate 
                        study that are awarded to students based on 
                        their academic promise and financial need, with 
                        a priority, at the graduate level, given to 
                        students entering professions in which Native 
                        Hawaiians are underrepresented;
                            ``(ii) family literacy services;
                            ``(iii) counseling and support services for 
                        students receiving scholarship assistance;
                            ``(iv) counseling and guidance for Native 
                        Hawaiian secondary students who have the 
                        potential to receive scholarships; and
                            ``(v) faculty development activities 
                        designed to promote the matriculation of Native 
                        Hawaiian students;
                    ``(J) research and data collection activities to 
                determine the educational status and needs of Native 
                Hawaiian children and adults;
                    ``(K) other research and evaluation activities 
                related to programs carried out under this part;
                    ``(L) construction, renovation, and modernization 
                of any elementary school, secondary school, or 
                structure related to an elementary school or secondary 
                school, run by the Department of Education of the State 
                of Hawaii, that serves a predominantly Native Hawaiian 
                student body; and
                    ``(M) other activities, consistent with the 
                purposes of this part, to meet the educational needs of 
                Native Hawaiian children and adults.
            ``(4) Special rule and conditions.--
                    ``(A) Institutions outside hawaii.--The Secretary 
                shall not establish a policy under this section that 
                prevents a Native Hawaiian student enrolled at a 2- or 
                4-year degree granting institution of higher education 
                outside of the State of Hawai`i from receiving a 
                scholarship pursuant to paragraph (3)(I).
                    ``(B) Scholarship conditions.--The Secretary shall 
                establish conditions for receipt of a scholarship 
                awarded under paragraph (3)(I). The conditions shall 
                require that an individual seeking such a scholarship 
                enter into a contract to provide professional services, 
                either during the scholarship period or upon completion 
                of a program of postsecondary education, to the Native 
                Hawaiian community.
    ``(b) Administrative Costs.--Not more than 5 percent of funds 
provided to a grant recipient under this section for any fiscal year 
may be used for administrative purposes.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $35,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the 6 succeeding fiscal 
years. Funds appropriated under this subsection shall remain available 
until expended.

``SEC. 7206. ADMINISTRATIVE PROVISIONS.

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

``SEC. 7207. DEFINITIONS.

    ``In this part:
            ``(1) Native hawaiian.--The term `Native Hawaiian' means 
        any individual who is--
                    ``(A) a citizen of the United States; and
                    ``(B) a descendant of the aboriginal people who, 
                prior to 1778, occupied and exercised sovereignty in 
                the area that now comprises the State of Hawai`i, as 
                evidenced by--
                            ``(i) genealogical records;
                            ``(ii) Kupuna (elders) or Kama`aina (long-
                        term community residents) verification; or
                            ``(iii) certified birth records.
            ``(2) Native hawaiian community-based organization.--The 
        term `Native Hawaiian community-based organization' means any 
        organization that is composed primarily of Native Hawaiians 
        from a specific community and that assists in the social, 
        cultural, and educational development of Native Hawaiians in 
        that community.
            ``(3) Native hawaiian educational organization.--The term 
        `Native Hawaiian educational organization' means a private 
        nonprofit organization that--
                    ``(A) serves the interests of Native Hawaiians;
                    ``(B) has Native Hawaiians in substantive and 
                policymaking positions within the organization;
                    ``(C) incorporates Native Hawaiian perspective, 
                values, language, culture, and traditions into the core 
                function of the organization;
                    ``(D) has demonstrated expertise in the education 
                of Native Hawaiian youth; and
                    ``(E) has demonstrated expertise in research and 
                program development.
            ``(4) Native hawaiian language.--The term `Native Hawaiian 
        language' means the single Native American language indigenous 
        to the original inhabitants of the State of Hawai`i.
            ``(5) Native hawaiian organization.--The term `Native 
        Hawaiian organization' means a private nonprofit organization 
        that--
                    ``(A) serves the interests of Native Hawaiians;
                    ``(B) has Native Hawaiians in substantive and 
                policymaking positions within the organizations; and
                    ``(C) is recognized by the Governor of Hawai`i for 
                the purpose of planning, conducting, or administering 
                programs (or portions of programs) for the benefit of 
                Native Hawaiians.
            ``(6) Office of hawaiian affairs.--The term `Office of 
        Hawaiian Affairs' means the office of Hawaiian Affairs 
        established by the Constitution of the State of Hawai`i.

                   ``PART C--ALASKA NATIVE EDUCATION

``SEC. 7301. SHORT TITLE.

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

``SEC. 7302. FINDINGS.

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

``SEC. 7303. PURPOSES.

    ``The purposes of this part are to--
            ``(1) recognize the unique educational needs of Alaska 
        Natives;
            ``(2) authorize the development of supplemental educational 
        programs to benefit Alaska Natives;
            ``(3) supplement programs and authorities in the area of 
        education to further the objectives of this part; and
            ``(4) provide direction and guidance to appropriate 
        Federal, State, and local agencies to focus resources, 
        including resources made available under this part, on meeting 
        the educational needs of Alaska Natives.

``SEC. 7304. PROGRAM AUTHORIZED.

    ``(a) General Authority.--
            ``(1) Grants and contracts.--The Secretary is authorized to 
        make grants to, or enter into contracts with, Alaska Native 
        organizations, educational entities with experience in 
        developing or operating Alaska Native programs or programs of 
        instruction conducted in Alaska Native languages, cultural and 
        community-based organizations with experience in developing or 
        operating programs to benefit Alaska Natives, and consortia of 
        organizations and entities described in this paragraph to carry 
        out programs that meet the purposes of this part.
            ``(2) Permissible activities.--Activities provided through 
        programs carried out under this part may include--
                    ``(A) the development and implementation of plans, 
                methods, and strategies to improve the education of 
                Alaska Natives;
                    ``(B) the development of curricula and educational 
                programs that address the educational needs of Alaska 
                Native students, including--
                            ``(i) curriculum materials that reflect the 
                        cultural diversity or the contributions of 
                        Alaska Natives;
                            ``(ii) instructional programs that make use 
                        of Native Alaskan languages; and
                            ``(iii) networks that introduce successful 
                        programs, materials, and techniques to urban 
                        and rural schools;
                    ``(C) professional development activities for 
                educators, including--
                            ``(i) programs to prepare teachers to 
                        address the cultural diversity and unique needs 
                        of Alaska Native students;
                            ``(ii) in-service programs to improve the 
                        ability of teachers to meet the unique needs of 
                        Alaska Native students; and
                            ``(iii) recruitment and preparation of 
                        teachers who are Alaska Native, reside in 
                        communities with high concentrations of Alaska 
                        Native students, or are likely to succeed as 
                        teachers in isolated, rural communities and 
                        engage in cross-cultural instruction in Alaska;
                    ``(D) the development and operation of home 
                instruction programs for Alaska Native preschool 
                children, the purpose of which is to ensure the active 
                involvement of parents in their children's education 
                from the earliest ages;
                    ``(E) family literacy services;
                    ``(F) the development and operation of student 
                enrichment programs in science and mathematics that--
                            ``(i) are designed to prepare Alaska Native 
                        students from rural areas, who are preparing to 
                        enter secondary school, to excel in science and 
                        math; and
                            ``(ii) provide appropriate support services 
                        to the families of such students that are 
                        needed to enable such students to benefit from 
                        the programs;
                    ``(G) research and data collection activities to 
                determine the educational status and needs of Alaska 
                Native children and adults;
                    ``(H) other research and evaluation activities 
                related to programs carried out under this part;
                    ``(I) remedial and enrichment programs to assist 
                Alaska Native students in performing at a high level on 
                standardized tests;
                    ``(J) education and training of Alaska Native 
                students enrolled in a degree program that will lead to 
                certification or licensing as teachers;
                    ``(K) parenting education for parents and 
                caregivers of Alaska Native children to improve 
                parenting and caregiving skills (including skills 
                relating to discipline and cognitive development), 
                including parenting education provided through in-home 
                visitation of new mothers;
                    ``(L) cultural education programs operated by the 
                Alaska Native Heritage Center and designed to share the 
                Alaska Native culture with students;
                    ``(M) a cultural exchange program operated by the 
                Alaska Humanities Forum and designed to share Alaska 
                Native culture with urban students in a rural setting, 
                which shall be known as the Rose Cultural Exchange 
                Program;
                    ``(N) activities carried out through Even Start 
                programs carried out under subpart 1 of part B of title 
                I and Head Start programs carried out under the Head 
                Start Act, including the training of teachers for 
                programs described in this subparagraph;
                    ``(O) other early learning and preschool programs;
                    ``(P) dropout prevention programs such as the Cook 
                Inlet Tribal Council's Partners for Success program;
                    ``(Q) an Alaska Initiative for Community Engagement 
                program;
                    ``(R) career preparation activities to enable 
                Alaska Native children and adults to prepare for 
                meaningful employment, including programs providing 
                tech-prep, mentoring, training, and apprenticeship 
                activities;
                    ``(S) provision of operational support and 
                construction funding, and purchasing of equipment, to 
                develop regional vocational schools in rural areas of 
                Alaska, including boarding schools, for Alaska Native 
                students in grades 9 to 12, and higher levels of 
                education, to provide the students with necessary 
                resources to prepare for skilled employment 
                opportunities; and
                    ``(T) other activities, consistent with the 
                purposes of this part, to meet the educational needs of 
                Alaska Native children and adults.
            ``(3) Home instruction programs.--Home instruction programs 
        for Alaska Native preschool children carried out under 
        paragraph (2)(D) may include--
                    ``(A) programs for parents and their infants, from 
                the prenatal period of the infant through age 3;
                    ``(B) preschool programs; and
                    ``(C) training, education, and support for parents 
                in such areas as reading readiness, observation, story 
                telling, and critical thinking.
    ``(b) Administrative Costs.--Not more than 5 percent of funds 
provided to a grant recipient under this section for any fiscal year 
may be used for administrative purposes.
    ``(c) Priorities.--In awarding grants or contracts to carry out 
activities described in subsection (a)(2), except for activities listed 
in subsection (d)(2), the Secretary shall give priority to applications 
from Alaska Native regional nonprofit organizations, or consortia that 
include at least 1 Alaska Native regional nonprofit organization.
    ``(d) Authorization of Appropriations.--
            ``(1) In general.--For fiscal year 2002 and each of the 6 
        succeeding fiscal years, there is authorized to be appropriated 
        to carry out this section the same amount as is authorized to 
        be appropriated under section 7205 for activities under that 
        section for that fiscal year.
            ``(2) Availability of funds.--Of the funds appropriated and 
        made available under this section for a fiscal year, the 
        Secretary shall make available--
                    ``(A) not less than $1,000,000 to support 
                activities described in subsection (a)(2)(K);
                    ``(B) not less than $1,000,000 to support 
                activities described in subsection (a)(2)(L);
                    ``(C) not less than $1,000,000 to support 
                activities described in subsection (a)(2)(M);
                    ``(D) not less than $2,000,000 to support 
                activities described in subsection (a)(2)(P); and
                    ``(E) not less than $2,000,000 to support 
                activities described in subsection (a)(2)(Q).

``SEC. 7305. ADMINISTRATIVE PROVISIONS.

    ``(a) Application Required.--No grant may be made under this part, 
and no contract may be entered into under this part, unless the entity 
seeking the grant or contract submits an application to the Secretary 
at such time, in such manner, and containing such information as the 
Secretary may determine to be necessary to carry out the provisions of 
this part.
    ``(b) Applications.--A State educational agency or local 
educational agency may apply for a grant or contract under this part 
only as part of a consortium involving an Alaska Native organization. 
The consortium may include other eligible applicants.
    ``(c) Consultation Required.--Each applicant for a grant or 
contract under this part shall provide for ongoing advice from and 
consultation with representatives of the Alaska Native community.
    ``(d) Local Educational Agency Coordination.--Each applicant for a 
grant or contract under this part shall inform each local educational 
agency serving students who will participate in the program to be 
carried out under the grant or contract about the application.
    ``(e) Reporting Requirements.--Each recipient of a grant or 
contract under this part shall, not later than March 15 of each fiscal 
year in which the organization expends funds under the grant or 
contract, prepare and submit to the Committee on Appropriations of the 
House of Representatives and the Committee on Appropriations of the 
Senate, summary reports, of not more than 2 pages in length. Such 
reports shall describe activities undertaken under the grant or 
contract, and progress made toward the overall objectives of the 
activities to be carried out under the grant or contract.

``SEC. 7306. DEFINITIONS.

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

SEC. 702. CONFORMING AMENDMENTS.

    (a) Higher Education Act of 1965.--Section 317(b) of the Higher 
Education Act of 1965 (20 U.S.C. 1059d(b)) is amended--
            (1) in paragraph (1), by striking ``section 9308'' and 
        inserting ``section 7306''; and
            (2) in paragraph (3), by striking ``section 9212'' and 
        inserting ``section 7207''.
    (b) Public Law 88-210.--Section 116 of Public Law 88-210 (as added 
by section 1 of Public Law 105-332 (112 Stat. 3076)) is amended by 
striking ``section 9212 of the Native Hawaiian Education Act (20 U.S.C. 
7912)'' and inserting ``section 7207 of the Native Hawaiian Education 
Act''.
    (c) Carl D. Perkins Vocational and Technical Education Act of 
1998.--Section 116(a)(5) of the Carl D. Perkins Vocational and 
Technical Education Act of 1998 (20 U.S.C. 2326(a)(5)) is amended by 
striking ``section 9212'' and all that follows and inserting ``section 
7207 of the Native Hawaiian Education Act''.
    (d) Museum and Library Services Act.--Section 261 of the Museum and 
Library Services Act (20 U.S.C. 9161) is amended by striking ``section 
9212 of the Native Hawaiian Education Act (20 U.S.C. 7912)'' and 
inserting ``section 7207 of the Native Hawaiian Education Act''.
    (e) Act of April 16, 1934.--Section 5 of the Act of April 16, 1934 
(commonly known as the ``Johnson-O'Malley Act'') (88 Stat. 2213; 25 
U.S.C. 456) is amended by striking ``section 9104(c)(4)'' and inserting 
``section 7114(c)(4)''.
    (f) Native American Languages Act.--Section 103 of the Native 
American Languages Act (25 U.S.C. 2902) is amended--
            (1) in paragraph (2), by striking ``section 9161(4) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7881(4))'' and inserting ``section 7161(3) of the Elementary 
        and Secondary Education Act of 1965''; and
            (2) in paragraph (3), by striking ``section 9212(1) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        7912(1))'' and inserting ``section 7207 of the Elementary and 
        Secondary Education Act of 1965''.
    (g) Workforce Investment Act of 1998.--Section 166(b)(3) of the 
Workforce Investment Act of 1998 (29 U.S.C. 2911(b)(3)) is amended by 
striking ``paragraphs (1) and (3), respectively, of section 9212 of the 
Native Hawaiian Education Act (20 U.S.C. 7912)'' and inserting 
``section 7207 of the Native Hawaiian Education Act''.
    (h) Assets for Independence Act.--Section 404(11) of the Assets for 
Independence Act (42 U.S.C. 604 note) is amended by striking ``section 
9212 of the Native Hawaiian Education Act (20 U.S.C. 7912)'' and 
inserting ``section 7207 of the Native Hawaiian Education Act''.

                         TITLE VIII--IMPACT AID

SEC. 801. ELIGIBILITY UNDER SECTION 8003 FOR CERTAIN HEAVILY IMPACTED 
              LOCAL EDUCATIONAL AGENCIES.

    (a) Eligibility.--Section 8003(b)(2)(C) (20 U.S.C. 7703(b)(2)(C)) 
is amended--
            (1) in clauses (i) and (ii) by inserting after ``Federal 
        military installation'' each place it appears the following: 
        ``(or the agency is a qualified local educational agency as 
        described in clause (iv))''; and
            (2) by adding at the end the following:
                            ``(iv) Qualified local educational 
                        agency.--A qualified local educational agency 
                        described in this clause is an agency that 
                        meets the following requirements:
                                    ``(I) The boundaries are the same 
                                as island property designated by the 
                                Secretary of the Interior to be 
                                property that is held in trust by the 
                                Federal Government.
                                    ``(II) The agency has no taxing 
                                authority.
                                    ``(III) The agency received a 
                                payment under paragraph (1) for fiscal 
                                year 2001.''.
    (b) Effective Date.--The Secretary shall consider an application 
for a payment under section 8003(b)(2) for fiscal year 2002 from a 
qualified local educational agency described in section 
8003(b)(2)(C)(iv), as added by subsection (a), as meeting the 
requirements of section 8003(b)(2)(C)(iii), and shall provide a payment 
under section 8003(b)(2) for fiscal year 2002, if the agency submits to 
the Secretary an application for payment under such section not later 
than 60 days after the date of enactment of this Act.

                           TITLE IX--REPEALS

SEC. 901. REPEALS.

    (a) Elementary and Secondary Education Act of 1965.--Titles IX 
through XIV (20 U.S.C. 7801 et seq., 8801 et seq.) are repealed.
    (b) Goals 2000: Educate America Act.--The Goals 2000: Educate 
America Act (20 U.S.C. 5801 et seq.) is repealed.

                   TITLE X--MISCELLANEOUS PROVISIONS

SEC. 1001. INDEPENDENT EVALUATION.

    The Act (20 U.S.C. 6301 et seq.) (as amended by section 901(a)) is 
amended further by adding at the end the following:

                  ``TITLE IX--MISCELLANEOUS PROVISIONS

                    ``PART A--INDEPENDENT EVALUATION

``SEC. 9101. IN GENERAL.

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

``SEC. 9102. COMPONENTS EVALUATED.

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

``SEC. 9103. REPORTING.

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

``SEC. 9104. DEFINITIONS.

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

``SEC. 9105. AUTHORIZATION OF APPROPRIATIONS.

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

                     ``PART B--TRANSITION PROVISION

``SEC. 9201. CERTAIN MULTIYEAR GRANTS AND CONTRACTS.

    ``(a) In General.--Notwithstanding any other provision of this Act, 
from funds appropriated under subsection (b) the Secretary shall 
continue to fund any multiyear grant or contract awarded under section 
3141 or part A or C of title XIII (as such section or part was in 
effect on the day preceding the date of the enactment of the Better 
Education for Students and Teachers Act) for the duration of the 
multiyear award.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated for each fiscal year such sums as may be necessary to 
carry out subsection (a).
    ``(c) Repeal.--This section is repealed on the date of enactment of 
a law that--
            ``(1) reauthorizes a provision of the Educational Research, 
        Development, Dissemination, and Improvement Act of 1994; and
            ``(2) is enacted after the date of enactment of the Better 
        Education for Students and Teachers Act.''.

SEC. 1002. HELPING CHILDREN SUCCEED BY FULLY FUNDING THE INDIVIDUALS 
              WITH DISABILITIES EDUCATION ACT (IDEA).

    (a) Findings.--Congress makes the following findings:
            (1) All children deserve a quality education.
            (2) In Pennsylvania Association for Retarded Children vs. 
        Commonwealth of Pennsylvania (334 F. Supp. 1247)(E. Dist. Pa. 
        1971), and Mills vs. Board of Education of the District of 
        Columbia (348 F. Supp. 866)(Dist. D.C. 1972), the courts found 
        that children with disabilities are entitled to an equal 
        opportunity to an education under the 14th amendment of the 
        Constitution.
            (3) In 1975, Congress passed what is now known as the 
        Individuals with Disabilities Education Act (referred to in 
        this section as ``IDEA'') (20 U.S.C. 1400 et seq.) to help 
        States provide all children with disabilities a free, 
        appropriate public education in the least restrictive 
        environment. At full funding, Congress contributes 40 percent 
        of the average per pupil expenditure for each child with a 
        disability served.
            (4) Before 1975, only \1/5\ of the children with 
        disabilities received a formal education. At that time, many 
        States had laws that specifically excluded many children with 
        disabilities, including children who were blind, deaf, or 
        emotionally disturbed, from receiving such an education.
            (5) IDEA currently serves an estimated 200,000 infants and 
        toddlers, 600,000 preschoolers, and 5,400,000 children 6 to 21 
        years of age.
            (6) IDEA enables children with disabilities to be educated 
        in their communities, and thus, has assisted in dramatically 
        reducing the number of children with disabilities who must live 
        in State institutions away from their families.
            (7) The number of children with disabilities who complete 
        high school has grown significantly since the enactment of 
        IDEA.
            (8) The number of children with disabilities who enroll in 
        college as freshmen has more than tripled since the enactment 
        of IDEA.
            (9) The overall effectiveness of IDEA depends upon well 
        trained special education and general education teachers, 
        related services personnel, and other school personnel. 
        Congress recognizes concerns about the nationwide shortage of 
        personnel serving students with disabilities and the need for 
        improvement in the qualifications of such personnel.
            (10) IDEA has raised the Nation's awareness about the 
        abilities and capabilities of children with disabilities.
            (11) Improvements to IDEA in the 1997 amendments increased 
        the academic achievement of children with disabilities and 
        helped them to lead productive, independent lives.
            (12) Changes made in 1997 also addressed the needs of those 
        children whose behavior impedes learning by implementing 
        behavioral assessments and intervention strategies to ensure 
        that they receive appropriate supports in order to receive a 
        quality education.
            (13) IDEA requires a full partnership between parents of 
        children with disabilities and education professionals in the 
        design and implementation of the educational services provided 
        to children with disabilities.
            (14) While the Federal Government has more than doubled 
        funding for part B of IDEA since 1995, the Federal Government 
        has never provided more than 15 percent of the maximum State 
        grant allocation for educating children with disabilities.
            (15) By fully funding IDEA, Congress will strengthen the 
        ability of States and localities to implement the requirements 
        of IDEA.
    (b) Local Educational Agency Eligibility.--Clauses (i) and (ii) of 
section 613(a)(2)(C) of the Individuals with Disabilities Education Act 
(20 U.S.C. 1413(a)(2)(C)) is amended to read as follows:
                            ``(i) Notwithstanding clauses (ii) and 
                        (iii) of subparagraph (A), for any fiscal year 
                        for which amounts appropriated to carry out 
                        section 611 exceeds $4,100,000,000, a local 
                        educational agency may treat as local funds, 
                        for the purpose of such clauses, up to 55 
                        percent of the amount of funds it receives 
                        under this part that exceeds the amount it 
                        received under this part for fiscal year 2001, 
                        except where a local educational agency shows 
                        that it is meeting the requirements of this 
                        part, the local educational agency may petition 
                        the State to waive, in whole or in part, the 55 
                        percent cap under this clause.
                            ``(ii) Notwithstanding clause (i), if the 
                        Secretary determines that a local educational 
                        agency is not meeting the requirements of this 
                        part, the Secretary may prohibit the local 
                        educational agency from treating funds received 
                        under this part as local funds under clause (i) 
                        for any fiscal year, and may redirect the use 
                        of those funds to other educational programs 
                        within the local educational agency.''.
    (c) Funding.--Section 611(j) of the Individuals with Disabilities 
Education Act (20 U.S.C. 1411(j)) is amended to read as follows:
    ``(j) Funding.--For the purpose of carrying out this part, other 
than section 619, there are authorized to be appropriated, and there 
are appropriated--
            ``(1) $8,823,685,000 for fiscal year 2002;
            ``(2) $11,323,685,000 for fiscal year 2003;
            ``(3) $13,823,685,000 for fiscal year 2004;
            ``(4) $16,323,685,000 for fiscal year 2005;
            ``(5) $18,823,685,000 for fiscal year 2006;
            ``(6) not more than $21,067,600,000, or the sum of the 
        maximum amount that all States may receive under subsection 
        (a)(2), whichever is lower, for fiscal year 2007;
            ``(7) not more than $21,742,019,000, or the sum of the 
        maximum amount that all States may receive under subsection 
        (a)(2), whichever is lower, for fiscal year 2008;
            ``(8) not more than $22,423,068,000, or the sum of the 
        maximum amount that all States may receive under subsection 
        (a)(2), whichever is lower, for fiscal year 2009;
            ``(9) not more than $23,095,622,000, or the sum of the 
        maximum amount that all States may receive under subsection 
        (a)(2), whichever is lower, for fiscal year 2010; and
            ``(10) not more than $23,751,456,000, or the sum of the 
        maximum amount that all States may receive under subsection 
        (a)(2), whichever is lower, for fiscal year 2011.''.

SEC. 1003. SENSE OF THE SENATE; AUTHORIZATION OF APPROPRIATIONS FOR 
              TITLE II OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 
              1965.

    (a) Sense of the Senate.--It is the sense of the Senate that 
Congress should appropriate $3,000,000,000 for fiscal year 2002 to 
carry out part A of title II of the Elementary and Secondary Education 
Act of 1965 and thereby--
            (1) provide that schools, local educational agencies, and 
        States have the resources they need to put a highly qualified 
        teacher in every classroom in each school in which 50 percent 
        or more of the children are from low income families, over the 
        next 4 years;
            (2) provide 125,000 new teachers with mentors and year-long 
        supervised internships; and
            (3) provide high quality pedagogical training for every 
        teacher in every school.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out part A of title II of the Elementary and 
Secondary Education Act of 1965--
            (1) $3,500,000,000 for fiscal year 2003;
            (2) $4,000,000,000 for fiscal year 2004;
            (3) $4,500,000,000 for fiscal year 2005;
            (4) $5,000,000,000 for fiscal year 2006;
            (5) $5,500,000,000 for fiscal year 2007; and
            (6) $6,000,000,000 for fiscal year 2008.

SEC. 1004. SENSE OF THE SENATE REGARDING EDUCATION OPPORTUNITY TAX 
              RELIEF.

    (a) Findings.--The Senate finds the following:
            (1) Improving the education of our children is an essential 
        and important responsibility facing this country.
            (2) Strong parental involvement is a cornerstone for 
        academic success; it is parents who know and understand the 
        special, individual needs of their own children.
            (3) Advanced technology has fueled unprecedented economic 
        growth and positively transformed the way Americans conduct 
        business and communicate with each other.
            (4) Families will need ready access to the technical tools 
        and skills necessary for their school age children to succeed 
        in the classroom and the increasingly competitive international 
        marketplace.
            (5) Studies have shown that the presence of a computer in 
        the home has a positive impact on a student's level of academic 
        achievement and performance in school.
            (6) Tax relief, enabling the purchase of technology and 
        tutorial services for K-12 education purposes, would 
        significantly help defray the cost of education expenses by: 
        Empowering families financially and increasing education 
        spending; allowing families to provide their children access to 
        a far greater range of educational opportunities suited to 
        their individual needs; and bridging the digital divide.
    (b) Sense of the Senate.--It is the sense of the Senate that 
Congress and the President should--
            (1) act expeditiously to pass legislation in the First 
        Session of the One Hundred Seventh Congress that provides tax 
        relief to parents of K-12 students for the cost of their 
        children's education-related expenses, specifically, computers, 
        peripherals and computer-related technology, educational 
        software, Internet access and tutoring services; and
            (2) that such tax relief would not apply toward the cost of 
        private school tuition.

SEC. 1005. SENSE OF THE SENATE REGARDING TAX RELIEF FOR ELEMENTARY AND 
              SECONDARY EDUCATORS.

    (a) Findings.--The Senate finds the following:
            (1) The average salary for an elementary and secondary 
        school teacher in the United States with a Master's degree and 
        16 years of experience is approximately $40,582.
            (2) The average starting salary for teachers in the United 
        States is $26,000.
            (3) Our educators make many personal and financial 
        sacrifices to educate our youth.
            (4) Teachers spend on average $408 a year, out of their own 
        money, to bring educational supplies into their classrooms.
            (5) Educators spend significant money out of their own 
        pocket every year on professional development expenses so they 
        can better educate our youth.
            (6) Many educators accrue significant higher education 
        student loans that must be repaid and whereas these loans are 
        accrued by educators in order for them to obtain degrees 
        necessary to become qualified to serve in our Nation's schools.
            (7) As a result of these numerous out of pocket expenses 
        that our teachers spend every year, and other factors, 6 
        percent of the Nation's teaching force leaves the profession 
        every year, and 20 percent of all new hires leave the teaching 
        profession within three years.
            (8) This country is in the midst of a teacher shortage, 
        with estimates that 2.4 million new teachers will be needed by 
        2009 because of teacher attrition, teacher retirement, and 
        increased student enrollment.
            (9) The Federal Government can and should play a role to 
        help alleviate the Nation's teaching shortage.
            (10) The current tax code provides little recognition of 
        the fact that our educators spend significant money out of 
        their own pocket to better the education of our children.
            (11) President Bush has recognized the importance of 
        providing teachers with additional tax relief, in recognition 
        of the many financial sacrifices our teachers make.
    (b) Sense of the Senate.--It is the sense of the Senate that 
Congress should pass legislation providing elementary and secondary 
level educators with additional tax relief in recognition of the many 
out of pocket, unreimbursed expenses educators incur to improve the 
education of our Nation's students.

SEC. 1006. SENSE OF THE SENATE; AUTHORIZATION OF APPROPRIATIONS FOR 
              TITLE III OF THE ELEMENTARY AND SECONDARY EDUCATION ACT 
              OF 1965.

    (a) Sense of the Senate.--It is the sense of the Senate that 
Congress should appropriate $750,000,000 for fiscal year 2002 to carry 
out part A and part D of title III of the Elementary and Secondary 
Education Act of 1965 and thereby--
            (1) provide that schools, local educational agencies, and 
        States have the resources they need to assist all limited 
        English proficient students in attaining proficiency in the 
        English language, and meeting the same challenging State 
        content and student performance standards that all students are 
        expected to meet in core academic subjects;
            (2) provide for the development and implementation of 
        bilingual education programs and language instruction 
        educational programs that are tied to scientifically based 
        research, and that effectively serve limited English proficient 
        students; and
            (3) provide for the development of programs that strengthen 
        and improve the professional training of educational personnel 
        who work with limited English proficient students.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out part A and part D of title III of the 
Elementary and Secondary Education Act of 1965--
            (1) $1,100,000,000 for fiscal year 2003;
            (2) $1,400,000,000 for fiscal year 2004;
            (3) $1,700,000,000 for fiscal year 2005;
            (4) $2,100,000,000 for fiscal year 2006;
            (5) $2,400,000,000 for fiscal year 2007; and
            (6) $2,800,000,000 for fiscal year 2008.

SEC. 1007. GRANTS FOR THE TEACHING OF TRADITIONAL AMERICAN HISTORY AS A 
              SEPARATE SUBJECT.

    Title IX (as added by section 1001) is amended by adding at the end 
the following:

           ``PART C--TEACHING OF TRADITIONAL AMERICAN HISTORY

``SEC. 9301. GRANTS FOR THE TEACHING OF TRADITIONAL AMERICAN HISTORY AS 
              A SEPARATE SUBJECT.

    ``(a) In General.--There are authorized to be appropriated 
$100,000,000 to enable the Secretary to establish and implement a 
program to be known as the `Teaching American History Grant Program' 
under which the Secretary shall award grants on a competitive basis to 
local educational agencies--
            ``(1) to carry out activities to promote the teaching of 
        traditional American history in schools as a separate subject; 
        and
            ``(2) for the development, implementation, and 
        strengthening of programs to teach American history as a 
        separate subject (not as a component of social studies) within 
        the school curricula, including the implementation of 
        activities to improve the quality of instruction and to provide 
        professional development and teacher education activities with 
        respect to American history.
    ``(b) Required Partnership.--A local educational agency that 
receives a grant under subsection (a) shall carry out activities under 
the grant in partnership with 1 or more of the following:
            ``(1) An institution of higher education.
            ``(2) A non-profit history or humanities organization.
            ``(3) A library or museum.''.

SEC. 1008. STUDY AND INFORMATION.

    (a) Study.--
            (1) In general.--The Director of the National Institutes of 
        Health and the Secretary of Education jointly shall--
                    (A) conduct a study regarding how exposure to 
                violent entertainment (such as movies, music, 
                television, Internet content, video games, and arcade 
                games) affects children's cognitive development and 
                educational achievement; and
                    (B) submit a final report to Congress regarding the 
                study.
            (2) Plan.--The Director and the Secretary jointly shall 
        submit to Congress, not later than 6 months after the date of 
        enactment of this Act, a plan for the conduct of the study.
            (3) Interim reports.--The Director and the Secretary 
        jointly shall submit to Congress annual interim reports 
        regarding the study until the final report is submitted under 
        paragraph (1)(B).
    (b) Information.--Section 411(b)(3) of the National Education 
Statistics Act of 1994 (20 U.S.C. 9010(b)(3) et seq.) is amended by 
adding at the end the following: ``Notwithstanding the preceding 
sentence, in carrying out the National Assessment the Commissioner 
shall gather data regarding how much time children spend on various 
forms of entertainment, such as movies, music, television, Internet 
content, video games, and arcade games.''.

SEC. 1009. SENSE OF THE SENATE REGARDING TRANSMITTAL OF S. 27 TO HOUSE 
              OF REPRESENTATIVES.

    (a) Findings.--The Senate finds that--
            (1) on April 2, 2001, the Senate of the United States 
        passed S. 27, the Bipartisan Campaign Reform Act of 2001, by a 
        vote of 59 to 41;
            (2) it has been over 30 days since the Senate moved to 
        third reading and final passage of S. 27;
            (3) it was then in order for the bill to be engrossed and 
        officially delivered to the House of Representatives of the 
        United States;
            (4) the precedents and traditions of the Senate dictate 
        that bills passed by the Senate are routinely sent in a timely 
        manner to the House of Representatives;
            (5) the will of the majority of the Senate, having voted in 
        favor of campaign finance reform is being unduly thwarted;
            (6) the American people are taught that when a bill passes 
        one body of Congress, it is routinely sent to the other body 
        for consideration; and
            (7) the delay in sending S. 27 to the House of 
        Representatives appears to be an arbitrary action taken to 
        deliberately thwart the will of the majority of the Senate.
    (b) Sense of the Senate.--It is the sense of the Senate that the 
Secretary of the Senate should properly engross and deliver S. 27 to 
the House of Representatives without any intervening delay.

SEC. 1010. SENSE OF THE SENATE; AUTHORIZATION OF APPROPRIATIONS FOR 
              TITLE I OF THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 
              1965.

    (a) Sense of the Senate.--Congress finds that--
            (1) Congress should continue toward the goal of providing 
        the necessary funding for afterschool programs by appropriating 
        the authorized level of $1,500,000,000 for fiscal year 2002 to 
        carry out part F of title I of the Elementary and Secondary 
        Education Act of 1965;
            (2) this funding should be the benchmark for future years 
        in order to reach the goal of providing academically enriched 
        activities during after school hours for the 7,000,000 children 
        in need.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out part F of title I of the Elementary and 
Secondary Education Act of 1965--
            (1) $2,000,000,000 for fiscal year 2003;
            (2) $2,500,000,000 for fiscal year 2004;
            (3) $3,000,000,000 for fiscal year 2005;
            (4) $3,500,000,000 for fiscal year 2006;
            (5) $4,000,000,000 for fiscal year 2007; and
            (6) $4,500,000,000 for fiscal year 2008.

SEC. 1011. EXCELLENCE IN ECONOMIC EDUCATION.

    Title IX, as amended by section 1001, is further amended by adding 
at the end the following:

               ``PART D--EXCELLENCE IN ECONOMIC EDUCATION

``SEC. 9401. SHORT TITLE; FINDINGS.

    ``(a) Short Title.--This part may be cited as the ``Excellence in 
Economic Education Act of 2001''.
    ``(b) Findings.--Congress makes the following findings:
            ``(1) The need for economic literacy in the United States 
        has grown exponentially in the 1990's as a result of rapid 
        technological advancements and increasing globalization, giving 
        individuals in the United States more numerous and complex 
        economic and financial choices than ever before as members of 
        the workforce, managers of their families' resources, and 
        voting citizens.
            ``(2) Studies show that many individuals in the United 
        States lack essential knowledge in personal finance and 
        economic literacy.
            ``(3) A 1998-1999 test conducted by the National Council on 
        Economic Education pointed out that many individuals in the 
        United States believe that there is a need for our Nation's 
        youth to possess an understanding of personal finance and 
        economic principles, with 96 percent of adults tested believing 
        that basic economics should be taught in secondary school.

``SEC. 9402. EXCELLENCE IN ECONOMIC EDUCATION.

    ``(a) Purpose.--The purpose of this part is to promote economic and 
financial literacy among all United States students in kindergarten 
through grade 12 by awarding a competitive grant to a national 
nonprofit educational organization that has as its primary purpose the 
improvement of the quality of student understanding of personal finance 
and economics.
    ``(b) Goals.--The goals of this part are--
            ``(1) to increase students' knowledge of and achievement in 
        economics to enable the students to become more productive and 
        informed citizens;
            ``(2) to strengthen teachers' understanding of and 
        competency in economics to enable the teachers to increase 
        student mastery of economic principles and their practical 
        application;
            ``(3) to encourage economic education research and 
        development, to disseminate effective instructional materials, 
        and to promote replication of best practices and exemplary 
        programs that foster economic literacy;
            ``(4) to assist States in measuring the impact of education 
        in economics, which is 1 of 9 national core content areas 
        described in section 306(c) of the Goals 2000: Educate America 
        Act (20 U.S.C. 5886(c)); and
            ``(5) to leverage and expand private and public support for 
        economic education partnerships at national, State, and local 
        levels.

``SEC. 9403. GRANT PROGRAM AUTHORIZED.

    ``(a) Competitive Grant Program for Excellence in Economic 
Education.--
            ``(1) In general.--The Secretary is authorized to award a 
        competitive grant to a national nonprofit educational 
        organization that has as its primary purpose the improvement of 
        the quality of student understanding of personal finance and 
        economics through effective teaching of economics in the 
        Nation's classrooms (referred to in this section as the 
        `grantee').
            ``(2) Use of grant funds.--
                    ``(A) One-quarter.--The grantee shall use \1/4\ of 
                the funds made available through the grant and not 
                reserved under subsection (f) for a fiscal year--
                            ``(i) to strengthen and expand the 
                        grantee's relationships with State and local 
                        personal finance, entrepreneurial, and economic 
                        education organizations;
                            ``(ii) to support and promote training, of 
                        teachers who teach a grade from kindergarten 
                        through grade 12, regarding economics, 
                        including the dissemination of information on 
                        effective practices and research findings 
                        regarding the teaching of economics;
                            ``(iii) to support research on effective 
                        teaching practices and the development of 
                        assessment instruments to document student 
                        performance; and
                            ``(iv) to develop and disseminate 
                        appropriate materials to foster economic 
                        literacy.
                    ``(B) Three-quarters.--The grantee shall use \3/4\ 
                of the funds made available through the grant for a 
                fiscal year to award grants to State or local school 
                boards, and State or local economic, personal finance, 
                or entrepreneurial education organizations (which shall 
                be referred to in this section as a `recipient'). The 
                grantee shall award such a grant to pay for the Federal 
                share of the cost of enabling the recipient to work in 
                partnership with 1 or more of the entities described in 
                paragraph (3) for 1 or more of the following purposes:
                            ``(i) Collaboratively establishing and 
                        conducting teacher training programs that use 
                        effective and innovative approaches to the 
                        teaching of economics, personal finance, and 
                        entrepreneurship.
                            ``(ii) Providing resources to school 
                        districts that want to incorporate economics 
                        and personal finance into the curricula of the 
                        schools in the districts.
                            ``(iii) Conducting evaluations of the 
                        impact of economic and financial literacy 
                        education on students.
                            ``(iv) Conducting economic and financial 
                        literacy education research.
                            ``(v) Creating and conducting school-based 
                        student activities to promote consumer, 
                        economic, and personal finance education, such 
                        as saving, investing, and entrepreneurial 
                        education, and to encourage awareness and 
                        student achievement in economics.
                            ``(vi) Encouraging replication of best 
                        practices to encourage economic and financial 
                        literacy.
                    ``(C) Additional requirements and technical 
                assistance.--The grantee shall--
                            ``(i) meet such other requirements as the 
                        Secretary determines to be necessary to assure 
                        compliance with this section; and
                            ``(ii) provide such technical assistance as 
                        may be necessary to carry out this section.
            ``(3) Partnership entities.--The entities referred to in 
        paragraph (2)(B) are the following:
                    ``(A) A private sector entity.
                    ``(B) A State educational agency.
                    ``(C) A local educational agency.
                    ``(D) An institution of higher education.
                    ``(E) Another organization promoting economic 
                development.
                    ``(F) Another organization promoting educational 
                excellence.
                    ``(G) Another organization promoting personal 
                finance or entrepreneurial education.
            ``(4) Administrative costs.--The grantee and each recipient 
        receiving a grant under this section for a fiscal year may use 
        not more than 25 percent of the funds made available through 
        the grant for administrative costs.
    ``(b) Teacher Training Programs.--In carrying out the teacher 
training programs described in subsection (a)(2)(B) a recipient shall--
            ``(1) train teachers who teach a grade from kindergarten 
        through grade 12; and
            ``(2) encourage teachers from disciplines other than 
        economics and financial literacy to participate in such teacher 
training programs, if the training will promote the economic and 
financial literacy of their students.
    ``(c) Involvement of Business Community.--In carrying out the 
activities assisted under this part the grantee and recipients are 
strongly encouraged to--
            ``(1) include interactions with the local business 
        community to the fullest extent possible, to reinforce the 
        connection between economic and financial literacy and economic 
        development; and
            ``(2) work with private businesses to obtain matching 
        contributions for Federal funds and assist recipients in 
        working toward self-sufficiency.
    ``(d) Federal Share.--
            ``(1) In general.--The Federal share of the cost described 
        in subsection (a)(2)(B) shall be 50 percent.
            ``(2) Non-federal share.--The non-Federal share may be paid 
        in cash or in kind, fairly evaluated, including plant, 
        equipment, or services.
    ``(e) Applications.--
            ``(1) Grantee.--To be eligible to receive a grant under 
        this section, the grantee shall submit to the Secretary an 
        application at such time, in such manner, and accompanied by 
        such information as the Secretary may require.
            ``(2) Recipients.--
                    ``(A) In general.--To be eligible to receive a 
                grant under this section, a recipient shall submit an 
                application to the grantee at such time, in such 
                manner, and accompanied by such information as the 
                grantee may require.
                    ``(B) Review.--The grantee shall invite the 
                individuals described in subparagraph (C) to review all 
                applications from recipients for a grant under this 
                section and to make recommendations to the grantee 
                regarding the funding of the applications.
                    ``(C) Individuals.--The individuals referred to in 
                subparagraph (B) are the following:
                            ``(i) Leaders in the fields of economics 
                        and education.
                            ``(ii) Such other individuals as the 
                        grantee determines to be necessary, especially 
                        members of the State and local business, 
                        banking, and finance community.
    ``(f) Supplement and Not Supplant.--Funds appropriated under this 
section shall be used to supplement and not supplant other Federal, 
State, and local funds expended for the purpose described in section 
9302(a).
    ``(g) Report.--The Secretary shall prepare and submit to the 
appropriate committees of Congress a report regarding activities 
assisted under this section not later than 2 years after the date funds 
are first appropriated under subsection (h) and every 2 years 
thereafter.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this part $10,000,000 for fiscal year 2002, 
and such sums as may be necessary for each of the 4 succeeding fiscal 
years.''.

SEC. 1012. LOAN FORGIVENESS FOR HEAD START TEACHERS.

    (a) Short Title.--This section may be cited as the ``Loan 
Forgiveness for Head Start Teachers Act of 2001''.
    (b) Head Start Teachers.--Section 428J of the Higher Education Act 
of 1965 (20 U.S.C 1078-10) is amended--
            (1) in subsection (b), by amending paragraph (1) to read as 
        follows:
            ``(1)(A) has been employed--
                    ``(i) as a full-time teacher for 5 consecutive 
                complete school years in a school that qualifies under 
                section 465(a)(2)(A) for loan cancellation for Perkins 
                loan recipients who teach in such a school; or
                    ``(ii) as a Head Start teacher for 5 consecutive 
                complete program years under the Head Start Act; and
            ``(B)(i) if employed as a secondary school teacher, is 
        teaching a subject area that is relevant to the borrower's 
        academic major as certified by the chief administrative officer 
        of the public or nonprofit private secondary school in which 
        the borrower is employed;
            ``(ii) if employed as an elementary school teacher, has 
        demonstrated, as certified by the chief administrative officer 
        of the public or nonprofit private elementary school in which 
        the borrower is employed, knowledge and teaching skills in 
        reading, writing, mathematics, and other areas of the 
        elementary school curriculum; and
            ``(iii) if employed as a Head Start teacher, has 
        demonstrated knowledge and teaching skills in reading, writing, 
        early childhood development, and other areas of a preschool 
        curriculum, with a focus on cognitive learning; and'';
            (2) in subsection (g), by adding at the end the following:
            ``(3) Head start.--An individual shall be eligible for loan 
        forgiveness under this section for service described in clause 
        (ii) of subsection (b)(1)(A) only if such individual received a 
        baccalaureate or graduate degree on or after the date of 
        enactment of the Loan Forgiveness for Head Start Teachers Act 
        of 2001.''; and
            (3) by adding at the end the following:
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for fiscal year 2007 and 
succeeding fiscal years to carry out loan repayment under this section 
for service described in clause (ii) of subsection (b)(1)(A).''.
    (c) Conforming Amendments.--Section 428J of such Act (20 U.S.C. 
1078-10) is amended--
            (1) in subsection (c)(1), by inserting ``or fifth complete 
        program year'' after ``fifth complete school year of 
        teaching'';
            (2) in subsection (f), by striking ``subsection (b)'' and 
        inserting ``subsection (b)(1)(A)(i)'';
            (3) in subsection (g)(1)(A), by striking ``subsection 
        (b)(1)(A)'' and inserting ``subsection (b)(1)(A)(i)''; and
            (4) in subsection (h), by inserting ``except as part of the 
        term `program year','' before ``where''.
    (d) Direct Student Loan Forgiveness.--
            (1) In general.--Section 460 of the Higher Education Act of 
        1965 (20 U.S.C 1087j) is amended--
                    (A) in subsection (b)(1), by amending subparagraph 
                (A) to read as follows:
                    ``(A)(i) has been employed--
                            ``(I) as a full-time teacher for 5 
                        consecutive complete school years in a school 
                        that qualifies under section 465(a)(2)(A) for 
                        loan cancellation for Perkins loan recipients 
                        who teach in such a school; or
                            ``(II) as a Head Start teacher for 5 
                        consecutive complete program years under the 
                        Head Start Act; and
                    ``(ii)(I) if employed as a secondary school 
                teacher, is teaching a subject area that is relevant to 
                the borrower's academic major as certified by the chief 
                administrative officer of the public or nonprofit 
                private secondary school in which the borrower is 
                employed;
                    ``(II) if employed as an elementary school teacher, 
                has demonstrated, as certified by the chief 
                administrative officer of the public or nonprofit 
                private elementary school in which the borrower is 
                employed, knowledge and teaching skills in reading, 
                writing, mathematics, and other areas of the elementary 
                school curriculum; and
                    ``(III) if employed as a Head Start teacher, has 
                demonstrated knowledge and teaching skills in reading, 
                writing, early childhood development, and other areas 
                of a preschool curriculum, with a focus on cognitive 
                learning; and'';
                    (B) in subsection (g), by adding at the end the 
                following:
            ``(3) Head start.--An individual shall be eligible for loan 
        forgiveness under this section for service described in 
        subclause (II) of subsection (b)(1)(A)(i) only if such 
        individual received a baccalaureate or graduate degree on or 
        after the date of enactment of the Loan Forgiveness for Head 
        Start Teachers Act of 2001.''; and
                    (C) by adding at the end the following:
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary for fiscal year 2007 and 
succeeding fiscal years to carry out loan repayment under this section 
for service described in subclause (II) of subsection (b)(1)(A)(i).''.
            (2) Conforming amendments.--Section 460 of such Act (20 
        U.S.C. 1087j) is amended--
                    (A) in subsection (c)(1), by inserting ``or fifth 
                complete program year'' after ``fifth complete school 
                year of teaching'';
                    (B) in subsection (f), by striking ``subsection 
                (b)'' and inserting ``subsection (b)(1)(A)(i)(I)'';
                    (C) in subsection (g)(1)(A), by striking 
                ``subsection (b)(1)(A)'' and inserting ``subsection 
                (b)(1)(A)(i)(I)''; and
                    (D) in subsection (h), by inserting ``except as 
                part of the term `program year','' before ``where''.

SEC. 1013. SENSE OF THE SENATE REGARDING THE BENEFITS OF MUSIC AND ARTS 
              EDUCATION.

    (a) Findings.--The Senate finds that--
            (1) there is a growing body of scientific research 
        demonstrating that children who receive music instruction 
        perform better on spatial-temporal reasoning tests and 
        proportional math problems;
            (2) music education grounded in rigorous academic 
        instruction is an important component of a well-rounded 
        academic program;
            (3) opportunities in music and the arts have enabled 
        children with disabilities to participate more fully in school 
        and community activities;
            (4) music and the arts can motive at-risk students to stay 
        in school and become active participants in the educational 
        process;
            (5) according to the College Board, college-bound high 
        school seniors in 1998 who received music or arts instruction 
        scored 57 points higher on the verbal portion of the Scholastic 
        Aptitude test and 43 points higher on the math portion of the 
        test than college-bound seniors without any music or arts 
        instruction;
            (6) a 1999 report by the Texas Commission on Drug and 
        Alcohol Abuse states that individuals who participated in band, 
        choir, or orchestra reported the lowest levels of current and 
        lifelong use of alcohol, tobacco, and illicit drugs; and
            (7) comprehensive sequential music education instruction 
        enhances early brain development and improves cognitive and 
        communicative skills, self-discipline, and creativity.
    (b) Sense of the Senate.--It is the sense of the Senate that--
            (1) music and arts education enhances intellectual 
        development and enriches the academic environment for children 
        of all ages; and
            (2) music and arts educators greatly contribute to the 
        artistic, intellectual, and social development of the children 
        of our Nation, and play a key role in helping children to 
        succeed in school.

SEC. 1014. SENSE OF THE SENATE CONCERNING POSTAL RATES FOR EDUCATIONAL 
              MATERIALS.

    (a) Findings.--The Senate finds that--
            (1) the President and Congress both agree that education is 
        of the highest domestic priority;
            (2) access to education is a basic right for all Americans 
        regardless of age, race, economic status or geographic 
        boundary;
            (3) reading is the foundation of all educational pursuits;
            (4) the objective of schools, libraries, literacy programs, 
        and early childhood development programs is to promote reading 
        skills and prepare individuals for a productive role in our 
        society;
            (5) individuals involved in the activities described in 
        paragraph (4) are less likely to be drawn into negative social 
        behavior such as alcohol and drug abuse and criminal activity;
            (6) a highly educated workforce in America is directly tied 
        to a strong economy and our national security;
            (7) the increase in postal rates by the United States 
        Postal Service in the year 2000 for such reading materials sent 
        for these purposes was substantially more than the increase for 
        any other class of mail and threatens the affordability and 
        future distribution of such materials;
            (8) failure to provide affordable access to reading 
        materials would seriously limit the fair and universal 
        distribution of books and classroom publications to schools, 
        libraries, literacy programs and early childhood development 
        programs; and
            (9) the Postal Service has the discretionary authority to 
        set postal rates.
    (b) Sense of the Senate.--It is the sense of the Senate that, since 
educational materials sent to schools, libraries, literacy programs, 
and early childhood development programs received the highest postal 
rate increase in the year 2000 rate case, the United States Postal 
Service should freeze the rates for those materials.

SEC. 1015. THE STUDY OF THE DECLARATION OF INDEPENDENCE, UNITED STATES 
              CONSTITUTION, AND THE FEDERALIST PAPERS.

    It is the sense of Congress that--
            (1) State and local governments and local educational 
        agencies are encouraged to dedicate at least 1 day of learning 
        to the study and understanding of the significance of the 
        Declaration of Independence, the United States Constitution, 
        and the Federalist Papers; and
            (2) State and local governments and local educational 
        agencies are encouraged to include a requirement that, before 
        receiving a certificate or diploma of graduation from secondary 
        school, students be tested on the competency in understanding 
        the Declaration of Independence, the United States 
        Constitution, and the Federalist Papers.

SEC. 1016. STUDY AND RECOMMENDATION WITH RESPECT TO SEXUAL ABUSE IN 
              SCHOOLS.

    (a) Findings.--Congress finds that--
            (1) sexual abuse in schools between a student and a member 
        of the school staff or a student and another student is a cause 
        for concern in the United States;
            (2) relatively few studies have been conducted on sexual 
        abuse in schools and the extent of this problem is unknown;
            (3) according to the Child Abuse and Neglect Reporting Act, 
        a school administrator is required to report any allegation of 
        sexual abuse to the appropriate authorities;
            (4) an individual who is falsely accused of sexual 
        misconduct with a student deserves appropriate legal and 
        professional protections;
            (5) it is estimated that many cases of sexual abuse in 
        schools are not reported; and
            (6) many of the accused staff quietly resign at their 
        present school district and are then rehired at a new district 
        which has no knowledge of their alleged abuse.
    (b) Study and Recommendations.--The Secretary of Education in 
conjunction with the Attorney General shall provide for the conduct of 
a comprehensive study of the prevalence of sexual abuse in schools. Not 
later than May 1, 2002, the Secretary and the Attorney General shall 
prepare and submit to the appropriate committees of Congress and to 
State and local governments, a report concerning the study conducted 
under this subsection, including recommendations and legislative 
remedies for the problem of sexual abuse in schools.

SEC. 1017. SENSE OF SENATE ON THE PERCENTAGE OF FEDERAL EDUCATION 
              FUNDING THAT IS SPENT IN THE CLASSROOM.

    (a) Findings.--The Senate makes the following findings:
            (1) Effective and meaningful teaching begins by helping 
        children master basic academics, holding children to high 
        academic standards, using sound research based methods of 
        instruction in the classroom, engaging and involving parents, 
        establishing and maintaining safe and orderly classrooms, and 
        getting funds to the classroom.
            (2) America's children deserve an educational system that 
        provides them with numerous opportunities to excel.
            (3) States and localities spend a significant amount of 
        education tax dollars on bureaucratic red tape by applying for 
        and administering Federal education dollars.
            (4) Several States have reported that although they receive 
        less than 10 percent of their education funding from the 
        Federal Government, more than 50 percent of their education 
        paperwork and administration efforts are associated with those 
        Federal funds.
            (5) According to the Department of Education, in 1998, 84 
        percent of the funds allocated by the Department for elementary 
        and secondary education were allocated to local educational 
        agencies and used for instruction and instructional support.
            (6) The remainder of the funds allocated by the Department 
        of Education for elementary and secondary education in 1998 was 
        allocated to States, universities, national programs, and other 
        service providers.
            (7) The total spent by the Department of Education for 
        elementary and secondary education does not take into account 
        what States spend to receive Federal funds and comply with 
        Federal requirements for elementary and secondary education, 
        nor does it reflect the percentage of Federal funds allocated 
        to school districts that is spent on students in the classroom.
            (8) American students are not performing up to their full 
        academic potential, despite significant Federal education 
        initiatives and funding from a variety of Federal agencies.
            (9) According to the Digest of Education Statistics, only 
        54 percent of $278,965,657,000 spent on elementary and 
        secondary education during the 1995-96 school year was spent on 
        ``instruction''.
            (10) According to the National Center for Education 
        Statistics, only 52 percent of staff employed in public 
        elementary and secondary school systems in 1996 were teachers, 
        and, according to the General Accounting Office, Federal 
        education dollars funded 13,397 full-time equivalent positions 
        in State educational agencies in fiscal year 1993.
            (11) In fiscal year 1998, the paperwork and data reporting 
        requirements of the Department of Education amounted to 
        40,000,000 so-called ``burden hours'', which is equivalent to 
        nearly 20,000 people working 40 hours a week for one full year, 
        time and energy which would be better spent teaching children 
        in the classroom.
            (12) Too large a percentage of Federal education funds is 
        spent on bureaucracy, special interests, and ineffective 
        programs, and too little is effectively and efficiently spent 
        on our America's youth.
            (13) Requiring an allocation of 95 percent of all Federal 
        elementary and secondary education funds to classrooms would 
        provide substantial additional funding per classroom across the 
        United States.
            (14) More education funding should be put in the hands of 
        someone in a classroom who knows the children personally and 
        frequently interacts with the children.
            (15) Burdensome regulations, requirements, and mandates 
        should be refined, consolidated or removed so that school 
        districts can devote more resources to educating children in 
        classrooms.
    (b) Sense of the Senate.--It is the sense of the Senate to urge the 
Department of Education, the States, and local educational agencies to 
work together to ensure that not less than 95 percent of all funds 
appropriated for carrying out elementary and secondary education 
programs administered by the Department be spent to improve the 
academic achievement of our children in their classrooms.

SEC. 1018. SENSE OF THE SENATE REGARDING BIBLE TEACHING IN PUBLIC 
              SCHOOLS.

    (a) Findings.--The Senate finds that--
            (1) the Bible is the best selling, most widely read, and 
        most influential book in history;
            (2) familiarity with the nature of religious beliefs is 
        necessary to understanding history and contemporary events;
            (3) the Bible is worthy of study for its literary and 
        historic qualities;
            (4) many public schools throughout America are currently 
        teaching the Bible as literature and/or history.
    (b) Sense of Senate.--It is the sense of the Senate that nothing in 
this Act or any provision of law shall discourage the teaching of the 
Bible in any public school.

SEC. 1019. SENIOR OPPORTUNITIES.

    (a) Twenty-First Century Community Learning Centers.--Section 
1609(a)(2) (as amended in section 161) is further amended--
            (1) in subparagraph (G), by striking ``and'' after the 
        semicolon;
            (2) in subparagraph (H), by striking the period and 
        inserting ``; and''; and
            (3) by adding at the end the following:
                    ``(I) if the organization plans to use seniors as 
                volunteers in activities carried out through the 
                center, a description of how the organization will 
                encourage and use appropriately qualified seniors to 
                serve as the volunteers.''.
    (b) Safe and Drug-Free Schools and Communities; Governor's 
Programs.--Section 4114(d) (as amended in section 401) is further 
amended--
            (1) in paragraph (14), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (15), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(16) drug and violence prevention activities that use the 
        services of appropriately qualified seniors.''.
    (c) Safe and Drug-Free Schools and Communities; Local Drug and 
Violence Prevention Programs.--Section 4116(b) (as amended in section 
401) is further amended--
            (1) in paragraph (2)--
                    (A) in the matter preceding subparagraph (A), by 
                inserting ``(including mentoring by appropriately 
                qualified seniors)'' after ``mentoring''; and
                    (B) in subparagraph (C)--
                            (i) in clause (i), by striking ``and'' 
                        after the semicolon;
                            (ii) in clause (ii), by inserting ``and'' 
                        after the semicolon; and
                            (iii) by adding at the end the following:
                            ``(iii) drug and violence prevention 
                        activities that use the services of 
                        appropriately qualified seniors;'';
            (2) in paragraph (4)(C), by inserting ``(including 
        mentoring by appropriately qualified seniors)'' after 
        ``mentoring programs''; and
            (3) in paragraph (8), by inserting ``, which may involve 
        appropriately qualified seniors working with students'' after 
        ``settings''.
    (d) Safe and Drug-Free Schools and Communities; Federal 
Activities.--Section 4121(a) (as amended in section 401) is further 
amended--
            (1) in paragraph (10), by inserting ``, including projects 
        and activities that promote the interaction of youth and 
        appropriately qualified seniors'' after ``responsibility''; and
            (2) in paragraph (13), by inserting ``, including 
        activities that integrate appropriately qualified seniors in 
        activities'' after ``title''.
    (e) Indian, Native Hawaiian, and Alaska Native Education; Formula 
Grants.--Section 7115(b) (as amended in section 701) is further 
amended--
            (1) in paragraph (10), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (11), by striking the period and inserting 
        ``; and''; and
            (3) by adding at the end the following:
            ``(12) activities that recognize and support the unique 
        cultural and educational needs of Indian children, and 
        incorporate appropriately qualified tribal elders and 
        seniors.''.
    (f) Indian, Native Hawaiian, and Alaska Native Education; Special 
Programs and Projects.--Section 7121(c)(1) (as amended in section 701) 
is further amended--
            (1) in subparagraph (K), by striking ``or'' after the 
        semicolon;
            (2) in subparagraph (L), by striking ``(L)'' and inserting 
        ``(M)''; and
            (3) by inserting after subparagraph (K) the following:
                    ``(L) activities that recognize and support the 
                unique cultural and educational needs of Indian 
                children, and incorporate appropriately qualified 
                tribal elders and seniors; or''.
    (g) Indian, Native Hawaiian, and Alaska Native Education; 
Professional Development.--The second sentence of section 7122(d)(1) 
(as amended in section 701) is further amended by striking the period 
and inserting ``, and may include programs designed to train tribal 
elders and seniors.''.
    (h) Indian, Native Hawaiian, and Alaska Native Education; Native 
Hawaiian Programs.--Section 7205(a)(3)(H) (as amended in section 701) 
is further amended--
            (1) in clause (ii), by striking ``and'' after the 
        semicolon;
            (2) in clause (iii), by inserting ``and'' at the end; and
            (3) by adding at the end the following:
                            ``(iv) programs that recognize and support 
                        the unique cultural and educational needs of 
                        Native Hawaiian children, and incorporate 
                        appropriately qualified Native Hawaiian elders 
                        and seniors;''.
    (i) Indian, Native Hawaiian, and Alaska Native Education; Alaska 
Native Programs.--Section 7304(a)(2)(F) (as amended in section 701) is 
further amended--
            (1) in clause (i), by striking ``and'' after the semicolon;
            (2) in clause (ii), by inserting ``and'' after the 
        semicolon; and
            (3) by adding at the end the following:
                            ``(iii) may include activities that 
                        recognize and support the unique cultural and 
                        educational needs of Alaskan Native children, 
                        and incorporate appropriately qualified Alaskan 
                        Native elders and seniors;''.

SEC. 1020. IMPACT AID PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL 
              PROPERTY.

    Section 8002 (20 U.S.C. 7702), as amended by section 1803 of the 
Floyd D. Spence National Defense Authorization Act for Fiscal Year 2001 
(as enacted into law by Public Law 106-398), is amended--
            (1) in subsection (h)(4), by striking subparagraph (B) and 
        inserting the following:
                    ``(B) the Secretary shall make a payment to each 
                local educational agency that is eligible to receive a 
                payment under this section for the fiscal year involved 
                in an amount that bears the same relation to 75 percent 
                of the remainder as a percentage share determined for 
                the local educational agency (as determined by dividing 
                the maximum amount that such agency is eligible to 
                receive under subsection (b) by the total maximum 
                amounts that all such local educational agencies are 
                eligible to receive under such subsection) bears to the 
                percentage share determined (in the same manner) for 
                all local educational agencies eligible to receive a 
                payment under this section for the fiscal year 
                involved, except that for purposes of calculating a 
                local educational agency's maximum payment under 
                subsection (b), data from the most current fiscal year 
                shall be used.''; and
            (2) by adding at the end the following:
    ``(n) Loss of Eligibility.--
            ``(1) In general.--Notwithstanding any other provision of 
        this section, the Secretary shall make a minimum payment to a 
        local educational agency described in paragraph (2), for the 
        first fiscal year that the agency loses eligibility for 
        assistance under this section as a result of property located 
        within the school district served by the agency failing to meet 
        the definition of Federal property under section 
        8013(5)(C)(iii), in an amount equal to 90 percent of the amount 
        received by the agency under this section in the preceding 
        year.
            ``(2) Eligible local educational agencies.--A local 
        educational agency described in this paragraph is an agency 
        that--
                    ``(A) was eligible for, and received, a payment 
                under this section for fiscal year 2002; and
                    ``(B) beginning in fiscal year 2003 or a subsequent 
                fiscal year, is no longer eligible for payments under 
                this section as provided for in subsection (a)(1)(C) as 
                a result of the transfer of the Federal property 
                involved to a non-Federal entity.''.

SEC. 1021. IMPACT AID TECHNICAL AMENDMENTS.

    (a) Federal Property Payments.--Section 8002(h) (20 U.S.C. 7702(h)) 
(as amended by section 1803(c) of the Impact Aid Reauthorization Act of 
2000 (as enacted into law by section 1 of Public Law 106-398)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (A), by striking ``and was 
                eligible to receive a payment under section 2 of the 
                Act of September 30, 1950'' and inserting ``and that 
                filed, or has been determined pursuant to law to have 
                filed, a timely application and met, or has been 
                determined pursuant to law to meet, the eligibility 
                requirements of section 2(a)(1)(C) of the Act of 
                September 30, 1950''; and
                    (B) in subparagraph (B), by striking ``(or if the 
                local educational agency was not eligible to receive a 
                payment under such section 2 for fiscal year 1994,'' 
                and inserting ``(or if the local educational agency did 
                not meet, or has not been determined pursuant to law to 
                meet, the eligibility requirements under section 
                2(a)(1)(C) of the Act Of September 20, 1950, for fiscal 
                year 1994,''.
            (2) in paragraph (2)--
                    (A) in subparagraph (A), by inserting before the 
                period the following: ``, or whose application for 
                fiscal year 1995 was deemed by law to be timely filed 
                for the purpose of payments for later years''; and
                    (B) in subparagraph (B)(ii), by striking ``for each 
                local educational agency that received a payment under 
                this section for fiscal year 1995'' and inserting ``for 
                each local educational agency described in subparagraph 
                (A)''; and
            (3) in paragraph (4)(B)--
                    (A) by striking ``(in the same manner as percentage 
                shares are determined for local educational agencies 
                under paragraph (2)(B)(ii)'' and inserting ``(by 
                dividing the maximum amount that the agency is eligible 
                to receive under subsection (b) by the total of the 
                maximum amounts for all such agencies''; and
                    (B) by striking ``, except that for the purpose of 
                calculating a local educational agency's assessed value 
                of the Federal property,'' and inserting ``, except 
                that, for the purpose of calculating a local 
                educational agency's maximum amount under subsection 
                (b),''.
    (b) Calculation of Payment Under Section 8003 for Small Local 
Educational Agencies.--Section 8003(b)(3)(B)(iv) (20 U.S.C. 
7703(b)(3)(B)(iv)) (as amended by section 1806(b)(2)(C) of the Impact 
Aid Reauthorization Act of 2000 (as enacted into law by section 1 of 
Public Law 106-398)) is amended by inserting after ``of the State in 
which the agency is located'' the following: ``or less than the average 
per pupil expenditure of all the States''.
    (c) State Consideration of Payments in Providing State Aid.--
Section 8009(b)(1) (20 U.S.C. 7709 (b)(1)) (as amended by section 
1812(b)(1) of the Impact Aid Reauthorization Act of 2000 (as enacted 
into law by section 1 of Public Law 106-398)) is amended by inserting 
after ``section 8003(a)(2)(B))'' the following: ``and, with respect to 
a local educational agency that receives a payment under section 
8003(b)(2), the amount in excess of the amount that the agency would 
receive if the agency were deemed to be an agency eligible to receive a 
payment under paragraph (1) of section 8003(b)''.
    (d) Extension of Authorization of Appropriations.--Section 8014 (20 
U.S.C. 7714) (as amended by section 1817(b)(1) of the Impact Aid 
Reauthorization Act of 2000 (as enacted into law by section 1 of Public 
Law 106-398)) is amended--
            (1) in subsection (a), by striking ``three succeeding'' and 
        inserting ``six succeeding''';
            (2) in subsection (b), by striking ``three succeeding'' and 
        inserting ``"six succeeding'';
            (3) in subsection (c), by striking ``three succeeding'' and 
        inserting ``six succeeding'';
            (4) in subsection (e), by striking ``three succeeding'' and 
        inserting ``six succeeding'';
            (5) in subsection (f), by striking ``three succeeding'' and 
        inserting ``six succeeding''; and
            (6) in subsection (g), by striking ``three succeeding'' and 
        inserting ``six succeeding''.

SEC. 1022. SENSE OF THE SENATE REGARDING SCIENCE EDUCATION.

    It is the sense of the Senate that--
            (1) good science education should prepare students to 
        distinguish the data or testable theories of science from 
        philosophical or religious claims that are made in the name of 
        science; and
            (2) where biological evolution is taught, the curriculum 
        should help students to understand why this subject generates 
        so much continuing controversy, and should prepare the students 
        to be informed participants in public discussions regarding the 
        subject.

SEC. 1023. SCHOOL FACILITY MODERNIZATION GRANTS.

    Subsection (b) of section 8007 (20 U.S.C. 7707(b)) (as amended by 
section 1811 of the Impact Aid Reauthorization Act of 2000 (as enacted 
into law by section 1 of Public Law 106-398)) is amended to read as 
follows:
    ``(b) School Facility Modernization Grants Authorized.--
            ``(1) Funding and allocation.--
                    ``(A) Funding.--From 60 percent of the amount 
                appropriated for each fiscal year under section 
                8014(e), the Secretary shall award grants in accordance 
                with this subsection to eligible local educational 
                agencies to enable the local educational agencies to 
                carry out modernization of school facilities.
                    ``(B) Allocation.--From amounts made available for 
                a fiscal year under subparagraph (A), the Secretary 
                shall allocate--
                            ``(i) 10 percent of such amount for grants 
                        to local educational agencies described in 
                        paragraph (2)(A);
                            ``(ii) 45 percent of such amount for grants 
                        to local educational agencies described in 
                        paragraph (2)(B), of which, 10 percent shall be 
                        available for emergency grants that shall not 
                        be subject to the requirements of subparagraphs 
                        (A) and (B) of paragraph (4); and
                            ``(iii) 45 percent of such amount for 
                        grants to local educational agencies described 
                        in paragraph (2)(C), of which, 10 percent shall 
                        be available for emergency grants that shall 
                        not be subject to the requirements of 
                        subparagraphs (A) and (B) of paragraph (4).
                    ``(C) Special rule.--A local educational agency 
                described in clauses (ii) and (iii) of subparagraph (B) 
                may use grant funds made available under this 
                subsection for a school facility located on or near 
                Federal property only if the school facility is located 
                at a school where not less than 25 percent of the 
                children in average daily attendance in the school for 
                the preceding school year are children for which a 
                determination is made under section 8003(a)(1).
            ``(2) Eligibility requirements.--A local educational agency 
        is eligible to receive funds under this subsection only if--
                    ``(A) such agency received assistance under section 
                8002(a) for the fiscal year and has an assessed value 
                of taxable property per student in the school district 
                that is less than the average of the assessed value of 
                taxable property per student in the State in which the 
                local educational agency is located;
                    ``(B) such agency had an enrollment of children 
                determined under section 8003(a)(1)(C) which 
                constituted at least 25 percent of the number of 
                children who were in average daily attendance in the 
                schools of such agency during the school year preceding 
                the school year for which the determination is made; or
                    ``(C) such agency had an enrollment of children 
                determined under subparagraphs (A), (B), and (D) of 
                section 8003(a)(1) which constituted at least 25 
                percent of the number of children who were in average 
                daily attendance in the schools of such agency during 
                the school year preceding the school year for which the 
                determination is made.
            ``(3) Award criteria.--In awarding grants under this 
        subsection, the Secretary shall review applications submitted 
        with respect to each type of agency represented by local 
        educational agencies that qualify under each of subparagraphs 
        (A), (B), and (C) of paragraph (2). In evaluating an 
        application, the Secretary shall consider the following 
        criteria:
                    ``(A) The extent to which the local educational 
                agency lacks the fiscal capacity to undertake the 
                modernization project without Federal assistance.
                    ``(B) The extent to which property in the local 
                educational agency is nontaxable due to the presence of 
                the Federal Government.
                    ``(C) The extent to which the local educational 
                agency serves high numbers or percentages of children 
                described in subparagraphs (A), (B), (C), and (D) of 
                section 8003(a)(1).
                    ``(D) The need for modernization to meet--
                            ``(i) the threat that the condition of the 
                        school facility poses to the health, safety, 
                        and well-being of students;
                            ``(ii) overcrowding conditions as evidenced 
                        by the use of trailers and portable buildings 
                        and the potential for future overcrowding 
                        because of increased enrollment; and
                            ``(iii) facility needs resulting from 
                        actions of the Federal Government.
                    ``(E) The age of the school facility to be 
                modernized.
            ``(4) Other award provisions.--
                    ``(A) Amount.--In determining the amount of a grant 
                awarded under this subsection; the Secretary shall 
                consider the cost of the modernization and the ability 
                of the local educational agency to produce sufficient 
                funds to carry out the activities for which assistance 
                is sought.
                    ``(B) Federal share.--The Federal funds provided 
                under this subsection to a local educational agency 
                shall not exceed 50 percent of the total cost of the 
                project to be assisted under this subsection. A local 
                educational agency may use in-kind contributions, 
                excluding land contributions, to meet the matching 
                requirement of the preceding sentence.
                    ``(C) Maximum grant.--A local educational agency 
                described in this subsection may not receive a grant 
                under this subsection in an amount that exceeds 
                $5,000,000 during any 2-year period.
            ``(5) Applications.--A local educational agency that 
        desires to receive a grant under this subsection shall submit 
        an application to the Secretary, at such time, in such manner, 
        and accompanied by such information as the Secretary may 
        require. Each application shall contain--
                    ``(A) a listing of the school facilities to be 
                modernized, including the number and percentage of 
                children determined under section 8003(a)(1) in average 
                daily attendance in each school facility;
                    ``(B) a description of the ownership of the 
                property on which the current school facility is 
                located or on which the planned school facility will be 
                located;
                    ``(C) a description of how the local educational 
                agency meets the award criteria under paragraph (3);
                    ``(D) a description of the modernization to be 
                supported with funds provided under this subsection;
                    ``(E) a cost estimate of the proposed 
                modernization; and
                    ``(F) such other information and assurances as the 
                Secretary may reasonably require.
            ``(6) Emergency grants.--
                    ``(A) Applications.--Each local educational agency 
                applying for a grant under paragraph (1)(B)(ii) or 
                (1)(b)(iii) that desires a grant under this subsection 
                shall include in the application submitted under 
                paragraph (5) a signed statement from an appropriate 
                local official certifying that a health or safety 
                emergency exists.
                    ``(B) Special rules.--The Secretary shall make 
                every effort to meet fully the school facility needs of 
                local educational agencies applying for a grant under 
                paragraph (1)(B)(ii) or (1)(B)(iii).
                    ``(C) Priority.--If the Secretary receives more 
                than one application from local educational agencies 
                described in paragraph (1)(B)(ii) or (1)(B)(iii) for 
                grants under this subsection for any fiscal year, the 
                Secretary shall give priority to local educational 
                agencies based on the severity of the emergency, as 
                determined by the peer review group and the Secretary, 
                and when the application was received.
                    ``(D) Consideration for following year.--A local 
                educational agency described in paragraph (2) that 
                applies for a grant under this subsection for any 
                fiscal year and does not receive the grant shall have 
                the application for the grant considered for the 
                following fiscal year, subject to the priority 
                described in subparagraph (C).
            ``(7) General limitations.--
                    ``(A) Real property.--No grant funds awarded under 
                this subsection shall be used for the acquisition of 
                any interest in real property.
                    ``(B) Maintenance.--Nothing in this subsection 
                shall be construed to authorize the payment of 
                maintenance costs in connection with any school 
                facility modernized in whole or in part with Federal 
                funds provided under this subsection.
                    ``(C) Environmental safeguards.--All projects 
                carried out with Federal funds provided under this 
                subsection shall comply with all relevant Federal, 
                State, and local environmental laws and regulations.
                    ``(D) Athletic and similar school facilities.--No 
                Federal funds received under this subsection shall be 
                used for outdoor stadiums or other school facilities 
                that are primarily used for athletic contests or 
                exhibitions, or other events, for which admission is 
                charged to the general public.
            ``(8) Supplement not supplant.--An eligible local 
        educational agency shall use funds received under this 
        subsection only to supplement the amount of funds that would, 
        in the absence of such Federal funds, be made available from 
        non-Federal sources for the modernization of school facilities 
        used for educational purposes, and not to supplant such 
        funds.''.

SEC. 1024. DEPARTMENT OF EDUCATION CAMPAIGN TO PROMOTE ACCESS OF ARMED 
              FORCES RECRUITERS TO STUDENT DIRECTORY INFORMATION.

    (a) Findings.--The Senate makes the following findings:
            (1) Service in the Armed Forces of the United States is 
        voluntary.
            (2) Recruiting quality persons in the numbers necessary to 
        maintain the strengths of the Armed Forces authorized by 
        Congress is vital to the United States national defense.
            (3) Recruiting quality servicemembers is very challenging, 
        and as a result, Armed Forces recruiters must devote 
        extraordinary time and effort to their work in order to fill 
        monthly requirements for immediate accessions.
            (4) In meeting goals for recruiting high quality men and 
        women, each of the Armed Forces faces intense competition from 
        the other Armed Forces, from the private sector, and from 
        institutions offering postsecondary education.
            (5) Despite a variety of innovative approaches taken by 
        recruiters, and the extensive benefits that are available to 
        those who join the Armed Forces, it is becoming increasingly 
        difficult for the Armed Forces to meet recruiting goals.
            (6) A number of high schools across the country have denied 
        recruiters access to students or to student directory 
        information.
            (7) In 1999, the Army was denied access to students or 
        student directories on 4,515 occasions, the Navy was denied 
        access to students or student directories on 4,364 occasions, 
        the Marine Corps was denied access to students or student 
        directories on 4,884 occasions, and the Air Force was denied 
        access to students or student directories on 5,465 occasions.
            (8) As of the beginning of 2000, nearly 25 percent of all 
        high schools in the United States did not release student 
        directory information requested by Armed Forces recruiters.
            (9) In testimony presented to the Committee on Armed 
        Services of the Senate, recruiters stated that the single 
        biggest obstacle to carrying out the recruiting mission was 
        denial of access to student directory information, as the 
        student directory is the basic tool of the recruiter.
            (10) Denying recruiters direct access to students and to 
        student directory information unfairly hurts the youth of the 
        United States, as it prevents students from receiving important 
        information on the education and training benefits offered by 
        the Armed Forces and impairs students' decisionmaking on 
        careers by limiting the information on the options available to 
        them.
            (11) Denying recruiters direct access to students and to 
        student directory information undermines United States national 
        defense, and makes it more difficult to recruit high quality 
        young Americans in numbers sufficient to maintain the readiness 
        of the Armed Forces and to provide for the national security.
            (12) Section 503 of title 10, United States Code, requires 
        local educational agencies, as of July 1, 2002, to provide 
        recruiters access to secondary schools on the same basis that 
        those agencies provide access to representatives of colleges, 
        universities, and private sector employers.
    (b) Campaign to Promote Access.--
            (1) Report.--Not later than 30 days after the date of 
        enactment of this Act, each State shall transmit to the 
        Secretary of Education a list of each school, if any, in that 
        State that--
                    (A) during the 12 months preceding the date of 
                enactment of this Act, has denied access to students or 
                to student directory information to a military 
                recruiter; or
                    (B) has in effect a policy to deny access to 
                students or to student directory information to 
                military recruiters.
            (2) Education program.--
                    (A) In general.--The Secretary of Education, in 
                consultation with the Secretary of Defense, shall, not 
                later than 90 days after the date of enactment of this 
                Act, make awards to States and schools using no more 
                than $3,000,000 of funds available under section 
                6205(c) of the Elementary and Secondary Education Act 
                to educate principals, school administrators, and other 
                educators regarding career opportunities in the Armed 
                Forces, and the access standard required under section 
                503 of title 10, United States Code.
                    (B) Targeted schools.--In selecting schools for 
                awards required under subparagraph (A), the Secretary 
                shall give priority to selecting schools that are 
                included on the lists transmitted to Congress under 
                paragraph (1).

SEC. 1025. MILITARY RECRUITING ON CAMPUS.

    (a) Denial of funds.--
            (1) Prohibition.--No funds available to the Department of 
        Defense may be provided by grant or contract to any institution 
        of higher education (including any school of law, whether or 
        not accredited by the American Bar Association) that has a 
        policy of denying, or which effectively prevents, the Secretary 
        of Defense from obtaining for military recruiting purposes--
                    (A) entry to campuses or access to students on 
                campuses; or
                    (B) access to directory information pertaining to 
                students.
            (2) Exemption.--Institutions in paragraph (1) shall be 
        exempt if they have a long-standing policy of pacifism based on 
        historical religious affiliation.
            (3) Covered students.--Students referred to in paragraph 
        (1) are individuals who are 17 years of age or older.
    (b) Procedures for Determination.--The Secretary of Defense, in 
consultation with the Secretary of Education, shall prescribe 
regulations that contain procedures for determining if and when an 
educational institution has denied or prevented access to students or 
information described in subsection (a).
    (c) Definition.--For purposes of this section, the term ``directory 
information'' means, with respect to a student, the student's name, 
address, telephone listing, date and place of birth, level of 
education, degrees received, and the most recent previous educational 
institution enrolled in by the student.

SEC. 1026. MAINTAINING FUNDING FOR THE INDIVIDUALS WITH DISABILITIES 
              EDUCATION ACT.

    Section 611 of the Individuals with Disabilities Education Act is 
amended to add the following new subsection:
    ``(k) Continuation of Authorization.--For fiscal year 2012 and each 
fiscal year thereafter, there are authorized to be appropriated such 
sums as may be necessary for the purpose of carrying out this part, 
other than section 619.''.

SEC. 1027. SCHOOL RESOURCE OFFICER PROJECTS.

    (a) COPS Program.--Section 1701(d) of title I of the Omnibus Crime 
Control and Safe Streets Act of 1968 (42 U.S.C. 3796dd(d)) is amended--
            (1) in paragraph (7) by inserting ``school officials,'' 
        after ``enforcement officers''; and
            (2) by striking paragraph (8) and inserting the following:
        ``(8) establish school-based partnerships between local law 
        enforcement agencies and local school systems, by using school 
        resource officers who operate in and around elementary and 
        secondary schools to serve as a law enforcement liaison with 
        other Federal, State, and local law enforcement and regulatory 
        agencies, combat school-related crime and disorder problems, 
        gang membership and criminal activity, firearms and explosives-
        related incidents, illegal use and possession of alcohol, and 
        the illegal possession, use, and distribution of drugs;''.
    (b) School Resource Officer.--Section 1709(4) of title I of the 
Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 3796dd-8) 
is amended--
            (1) by striking subparagraph (A) and inserting the 
        following:
                ``(A) to serve as a law enforcement liaison with other 
                Federal, State, and local law enforcement and 
                regulatory agencies, to address and document crime and 
                disorder problems including gangs and drug activities, 
                firearms and explosives-related incidents, and the 
                illegal use and possession of alcohol affecting or 
                occurring in or around an elementary or secondary 
                school;
            (2) by striking subparagraph (E) and inserting the 
        following:
                ``(E) to train students in conflict resolution, 
                restorative justice, and crime awareness, and to 
                provide assistance to and coordinate with other 
                officers, mental health professionals, and youth 
                counselors who are responsible for the implementation 
                of prevention/intervention programs within the 
                schools;''; and
            (3) by adding at the end the following:
                    ``(H) to work with school administrators, members 
                of the local parent teacher associations, community 
                organizers, law enforcement, fire departments, and 
                emergency medical personnel in the creation, review, 
                and implementation of a school violence prevention 
                plan;
                    ``(I) to assist in documenting the full description 
                of all firearms found or taken into custody on school 
                property and to initiate a firearms trace and 
                ballistics examination for each firearm with the local 
                office of the Bureau of Alcohol, Tobacco, and Firearms;
                    ``(J) to document the full description of all 
                explosives or explosive devices found or taken into 
                custody on school property and report to the local 
                office of the Bureau of Alcohol, Tobacco, and Firearms; 
                and
                    ``(K) to assist school administrators with the 
                preparation of the Department of Education, Annual 
                Report on State Implementation of the Gun-Free Schools 
                Act which tracks the number of students expelled per 
                year for bringing a weapon, firearm, or explosive to 
                school.''.
    (c) Authorization of Appropriations.--Section 1001(a)(11) of title 
I of the Omnibus Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
3793(a)(11)) is amended by adding at the end the following:
    ``(C) There are authorized to be appropriated to carry out school 
resource officer activities under sections 1701(d)(8) and 1709(4), to 
remain available until expended $180,000,000 for each of fiscal year 
2002 through 2007.''.

SEC. 1028. BOYS AND GIRLS CLUBS OF AMERICA.

    Section 401 of the Economic Espionage Act of 1966 (42 U.S.C. 13751 
note) is amended--
            (1) in subsection (a)(2)--
                    (A) by striking ``1,000'' and inserting ``1,200'';
                    (B) by striking ``2,500'' and inserting ``4,000''; 
                and
                    (C) by striking ``December 31, 1999'' and inserting 
                ``December 31, 2006, serving not less than 6,000,000 
                young people'';
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``1997, 1998, 
                1999, 2000, and 2001'' and inserting ``2002, 2003, 
                2004, 2005, and 2006''; and
                    (B) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by striking ``90 days'' and inserting ``30 
                        days'';
                            (ii) in subparagraph (A), by striking 
                        ``1,000'' and inserting ``1,200''; and
                            (iii) in subparagraph (B), by striking 
                        ``2,500 Boys and Girls Clubs of America 
                        facilities in operation before January 1, 
                        2000'' and inserting ``4,000 Boys and Girls 
                        Clubs of America facilities in operation before 
                        January 1, 2007''; and
            (3) in subsection (e), by striking paragraph (1) and 
        inserting the following:
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section--
                    ``(A) $60,000,000 for fiscal year 2002;
                    ``(B) $60,000,000 for fiscal year 2003;
                    ``(C) $60,000,000 for fiscal year 2004;
                    ``(D) $60,000,000 for fiscal year 2005; and
                    ``(E) $60,000,000 for fiscal year 2006.''.

SEC. 1029. FEDERAL INCOME TAX INCENTIVE STUDY.

    (a) In General.--The Secretary of Education shall provide for the 
conduct of a study to examine whether Federal income tax incentives 
that provide education assistance affect higher education tuition 
rates.
    (b) Date.--The study described in subsection (a) shall be conducted 
not later than 6 months after the date of enactment of this Act and 
every 4 years thereafter.
    (c) Report.--The Secretary shall report to Congress the results of 
each study conducted under this section.

SEC. 1030. CARL D. PERKINS VOCATIONAL AND TECHNICAL EDUCATION ACT OF 
              1998.

    (a) In General.--Section 117 of the Carl D. Perkins Vocational and 
Technical Education Act of 1998 (20 U.S.C. 2327) is amended--
            (1) in subsection (a), by inserting ``that are not 
        receiving Federal support under the Tribally Controlled College 
        or University Assistance Act of 1978 (25 U.S.C. 1801 et seq.) 
        or the Navajo Community College Act (25 U.S.C. 640a et seq.)'' 
        after ``institutions'';
            (2) in subsection (b), by adding ``institutional support 
        of'' after ``for'';
            (3) in subsection (d), by inserting ``that is not receiving 
        Federal support under the Tribally Controlled College or 
        University Assistance Act of 1978 (25 U.S.C. 1801 et seq.) or 
        the Navajo Community College Act (25 U.S.C. 640a et seq.)'' 
        after ``institution''; and
            (4) in subsection (e)(1)--
                    (A) by striking ``and'' at the end of subparagraph 
                (B);
                    (B) by striking the period at the end of 
                subparagraph (C) and inserting ``; and''; and
                    (C) by adding at the end the following:
                    ``(D) institutional support of vocational and 
                technical education.''. 
    (b) Effective Date.--
            (1) In general.--The amendments made by subsection (a) 
        shall take effect on the date of enactment of this Act.
            (2) Application.--The amendments made by subsection (a) 
        shall apply to grants made for fiscal year 2001 only if this 
        Act is enacted before September 30, 2001.

SEC. 1031. SENSE OF CONGRESS ON ENHANCING AWARENESS OF THE 
              CONTRIBUTIONS OF VETERANS TO THE NATION.

    (a) Findings.--Congress makes the following findings
            (1) Tens of millions of Americans have served in the Armed 
        Forces of the United States during the past century.
            (2) Hundreds of thousands of Americans have given their 
        lives while serving in the Armed Forces during the past 
        century.
            (3) The contributions and sacrifices of the men and women 
        who served in the Armed Forces have been vital in maintaining 
        our freedoms and way of life.
            (4) The advent of the all-volunteer Armed Forces has 
        resulted in a sharp decline in the number of individuals and 
        families who have had any personal connection with the Armed 
        Forces.
            (5) This reduction in familiarity with the Armed Forces has 
        resulted in a marked decrease in the awareness by young people 
        of the nature and importance of the accomplishments of those 
        who have served in our Armed Forces, despite the current 
        educational efforts of the Department of Veterans Affairs and 
        the veterans service organizations.
            (6) Our system of civilian control of the Armed Forces 
        makes it essential that the Nation's future leaders understand 
        the history of military action and the contributions and 
        sacrifices of those who conduct such actions.
            (7) Senate Resolution 304 of the 106th Congress, adopted on 
        September 25, 2000, designated the week that includes Veterans 
        Day as ``National Veterans Awareness Week'' to focus attention 
        on educating elementary and secondary school students about the 
        contributions of veterans to the Nation.
    (b) Sense of Congress.--It is the sense of the Congress that the 
Secretary of Education should work with the Secretary of Veterans 
Affairs, the Veterans Day National Committee, and the veterans service 
organizations to encourage, prepare, and disseminate educational 
materials and activities for elementary and secondary school students 
aimed at increasing awareness of the contributions of veterans to the 
prosperity and freedoms enjoyed by United States citizens.

SEC. 1032. TECHNICAL AMENDMENT TO THE KIDS 2000 ACT.

    Amounts appropriated pursuant to section 112(f)(1) of the Kids 2000 
Act (42 U.S.C. 13751 note) and the initiative to be carried out under 
such Act shall be administered by the Secretary of Education.

SEC. 1033. PEST MANAGEMENT IN SCHOOLS.

    (a) Short Title.--This section may be cited as the ``School 
Environment Protection Act of 2001''.
    (b) Pest Management.--The Federal Insecticide, Fungicide, and 
Rodenticide Act is amended--
            (1) by redesignating sections 33 and 34 (7 U.S.C. 136x, 
        136y) as sections 34 and 35, respectively; and
            (2) by inserting after section 32 (7 U.S.C. 136w-7) the 
        following:

``SEC. 33. PEST MANAGEMENT IN SCHOOLS.

    ``(a) Definitions.--In this section:
            ``(1) Bait.--The term `bait' means a pesticide that 
        contains an ingredient that serves as a feeding stimulant, 
        odor, pheromone, or other attractant for a target pest.
            ``(2) Contact person.--The term `contact person' means an 
        individual who is--
                    ``(A) knowledgeable about school pest management 
                plans; and
                    ``(B) designated by a local educational agency to 
                carry out implementation of the school pest management 
                plan of a school.
            ``(3) Emergency.--The term `emergency' means an urgent need 
        to mitigate or eliminate a pest that threatens the health or 
        safety of a student or staff member.
            ``(4) Local educational agency.--The term `local 
        educational agency' has the meaning given the term in section 3 
        of the Elementary and Secondary Education Act of 1965.
            ``(5) School.--
                    ``(A) In general.--The term `school' means a 
                public--
                            ``(i) elementary school (as defined in 
                        section 3 of the Elementary and Secondary 
                        Education Act of 1965);
                            ``(ii) secondary school (as defined in 
                        section 3 of the Act);
                            ``(iii) kindergarten or nursery school that 
                        is part of an elementary school or secondary 
                        school; or
                            ``(iv) tribally-funded school.
                    ``(B) Inclusions.--The term `school' includes any 
                school building, and any area outside of a school 
                building (including a lawn, playground, sports field, 
                and any other property or facility), that is 
                controlled, managed, or owned by the school or school 
                district.
            ``(6) School pest management plan.--The term `school pest 
        management plan' means a pest management plan developed under 
        subsection (b).
            ``(7) Staff member.--
                    ``(A) In general.--The term `staff member' means a 
                person employed at a school or local educational 
                agency.
                    ``(B) Exclusions.--The term `staff member' does not 
                include--
                            ``(i) a person hired by a school, local 
                        educational agency, or State to apply a 
                        pesticide; or
                            ``(ii) a person assisting in the 
                        application of a pesticide.
            ``(8) State agency.--The term `State agency' means the an 
        agency of a State, or an agency of an Indian tribe or tribal 
        organization (as those terms are defined in section 4 of the 
        Indian Self-Determination and Education Assistance Act (25 
        U.S.C. 450b)), that exercises primary jurisdiction over matters 
        relating to pesticide regulation.
            ``(9) Universal notification.--The term `universal 
        notification' means notice provided by a local educational 
        agency or school to--
                    ``(A) parents, legal guardians, or other persons 
                with legal standing as parents of each child attending 
                the school; and
                    ``(B) staff members of the school.
    ``(b) School Pest Management Plans.--
            ``(1) State plans.--
                    ``(A) Guidance.--As soon as practicable (but not 
                later than 180 days) after the date of enactment of the 
                School Environment Protection Act of 2001, the 
                Administrator shall develop, in accordance with this 
                section--
                            ``(i) guidance for a school pest management 
                        plan; and
                            ``(ii) a sample school pest management 
                        plan.
                    ``(B) Plan.--As soon as practicable (but not later 
                than 1 year) after the date of enactment of the School 
                Environment Protection Act of 2001, each State agency 
                shall develop and submit to the Administrator for 
                approval, as part of the State cooperative agreement 
                under section 23, a school pest management plan for 
                local educational agencies in the State.
                    ``(C) Components.--A school pest management plan 
                developed under subparagraph (B) shall, at a minimum--
                            ``(i) implement a system that--
                                    ``(I) eliminates or mitigates 
                                health risks, or economic or aesthetic 
                                damage, caused by pests;
                                    ``(II) employs--
                                            ``(aa) integrated methods;
                                            ``(bb) site or pest 
                                        inspection;
                                            ``(cc) pest population 
                                        monitoring; and
                                            ``(dd) an evaluation of the 
                                        need for pest management; and
                                    ``(III) is developed taking into 
                                consideration pest management 
                                alternatives (including sanitation, 
                                structural repair, and mechanical, 
                                biological, cultural, and pesticide 
                                strategies) that minimize health and 
                                environmental risks;
                            ``(ii) require, for pesticide applications 
                        at the school, universal notification to be 
                        provided--
                                    ``(I) at the beginning of the 
                                school year;
                                    ``(II) at the midpoint of the 
                                school year; and
                                    ``(III) at the beginning of any 
                                summer session, as determined by the 
                                school;
                            ``(iii) establish a registry of staff 
                        members of a school, and of parents, legal 
                        guardians, or other persons with legal standing 
                        as parents of each child attending the school, 
                        that have requested to be notified in advance 
                        of any pesticide application at the school;
                            ``(iv) establish guidelines that are 
                        consistent with the definition of a school pest 
                        management plan under subsection (a);
                            ``(v) require that each local educational 
                        agency use a certified applicator or a person 
                        authorized by the State agency to implement the 
                        school pest management plans;
                            ``(vi) be consistent with the State 
                        cooperative agreement under section 23; and
                            ``(vii) require the posting of signs in 
                        accordance with paragraph (4)(G).
                    ``(D) Approval by administrator.--Not later than 90 
                days after receiving a school pest management plan 
                submitted by a State agency under subparagraph (B), the 
                Administrator shall--
                            ``(i) determine whether the school pest 
                        management plan, at a minimum, meets the 
                        requirements of subparagraph (C); and
                            ``(ii)(I) if the Administrator determines 
                        that the school pest management plan meets the 
                        requirements, approve the school pest 
                        management plan as part of the State 
                        cooperative agreement; or
                            ``(II) if the Administrator determines that 
                        the school pest management plan does not meet 
                        the requirements--
                                    ``(aa) disapprove the school pest 
                                management plan;
                                    ``(bb) provide the State agency 
                                with recommendations for and assistance 
                                in revising the school pest management 
                                plan to meet the requirements; and
                                    ``(cc) provide a 90-day deadline by 
                                which the State agency shall resubmit 
                                the revised school pest management plan 
                                to obtain approval of the plan, in 
                                accordance with the State cooperative 
                                agreement.
                    ``(E) Distribution of state plan to schools.--On 
                approval of the school pest management plan of a State 
                agency, the State agency shall make the school pest 
                management plan available to each local educational 
                agency in the State.
                    ``(F) Exception for existing state plans.--If, on 
                the date of enactment of the School Environment 
                Protection Act of 2001, a State has implemented a 
                school pest management plan that, at a minimum, meets 
                the requirements under subparagraph (C) (as determined 
                by the Administrator), the State agency may maintain 
                the school pest management plan and shall not be 
                required to develop a new school pest management plan 
                under subparagraph (B).
            ``(2) Implementation by local educational agencies.--
                    ``(A) In general.--Not later than 1 year after the 
                date on which a local educational agency receives a 
                copy of a school pest management plan of a State agency 
                under paragraph (1)(E), the local educational agency 
                shall develop and implement in each of the schools 
                under the jurisdiction of the local educational agency 
                a school pest management plan that meets the standards 
                and requirements under the school pest management plan 
                of the State agency, as determined by the 
                Administrator.
                    ``(B) Exception for existing plans.--If, on the 
                date of enactment of the School Environment Protection 
                Act of 2001, a State maintains a school pest management 
                plan that, at a minimum, meets the standards and 
                criteria established under this section (as determined 
                by the Administrator), and a local educational agency 
                in the State has implemented the State school pest 
                management plan, the local educational agency may 
                maintain the school pest management plan and shall not 
                be required to develop and implement a new school pest 
                management plan under subparagraph (A).
                    ``(C) Application of pesticides at schools.--A 
                school pest management plan shall prohibit--
                            ``(i) the application of a pesticide to any 
                        area or room at a school while the area or room 
                        is occupied or in use by students or staff 
                        members (except students and staff 
                        participating in regular or vocational 
                        agricultural instruction involving the use of 
                        pesticides); and
                            ``(ii) the use by students or staff members 
                        of an area or room treated with a pesticide by 
                        broadcast spraying, baseboard spraying, 
                        tenting, or fogging during--
                                    ``(I) the period specified on the 
                                label of the pesticide during which a 
                                treated area or room should remain 
                                unoccupied; or
                                    ``(II) if there is no period 
                                specified on the label, the 24-hour 
                                period beginning at the end of the 
                                treatment.
            ``(3) Contact person.--
                    ``(A) In general.--Each local educational agency 
                shall designate a contact person to carry out a school 
                pest management plan in schools under the jurisdiction 
                of the local educational agency.
                    ``(B) Duties.--The contact person of a local 
                educational agency shall--
                            ``(i) maintain information about the 
                        scheduling of pesticide applications in each 
                        school under the jurisdiction of the local 
                        educational agency;
                            ``(ii) act as a contact for inquiries, and 
                        disseminate information requested by parents or 
                        guardians, about the school pest management 
                        plan;
                            ``(iii) maintain and make available to 
                        parents, legal guardians, or other persons with 
                        legal standing as parents of each child 
                        attending the school, before and during the 
                        notice period and after application--
                                    ``(I) copies of material safety 
                                data sheet for pesticides applied at 
                                the school, or copies of material 
                                safety data sheets for end-use 
                                dilutions of pesticides applied at the 
                                school, if data sheets are available;
                                    ``(II) labels and fact sheets 
                                approved by the Administrator for all 
                                pesticides that may be used by the 
                                local educational agency; and
                                    ``(III) any final official 
                                information related to the pesticide, 
                                as provided to the local educational 
                                agency by the State agency; and
                            ``(iv) for each school, maintain all 
                        pesticide use data for each pesticide used at 
                        the school (other than antimicrobial pesticides 
                        (as defined in clauses (i) and (ii) of section 
                        2(mm)(1)(A))) for at least 3 years after the 
                        date on which the pesticide is applied; and
                            ``(v) make that data available for 
                        inspection on request by any person.
            ``(4) Notification.--
                    ``(A) Universal notification.--At the beginning of 
                each school year, at the midpoint of each school year, 
                and at the beginning of any summer session (as 
                determined by the school), a local educational agency 
                or school shall provide to staff members of a school, 
                and to parents, legal guardians, and other persons with 
                legal standing as parents of students enrolled at the 
                school, a notice describing the school pest management 
                plan that includes--
                            ``(i) a summary of the requirements and 
                        procedures under the school pest management 
                        plan;
                            ``(ii) a description of any potential pest 
                        problems that the school may experience 
                        (including a description of the procedures that 
                        may be used to address those problems);
                            ``(iii) the address, telephone number, and 
                        website address of the Office of Pesticide 
                        Programs of the Environmental Protection 
                        Agency; and
                            ``(iv) the following statement (including 
                        information to be supplied by the school as 
                        indicated in brackets):
`As part of a school pest management plan, __________ (insert school 
name) may use pesticides to control pests. The Environmental Protection 
Agency (EPA) and __________ (insert name of State agency exercising 
jurisdiction over pesticide registration and use) registers pesticides 
for that use. EPA continues to examine registered pesticides to 
determine that use of the pesticides in accordance with instructions 
printed on the label does not pose unreasonable risks to human health 
and the environment. Nevertheless, EPA cannot guarantee that registered 
pesticides do not pose risks, and unnecessary exposure to pesticides 
should be avoided. Based in part on recommendations of a 1993 study by 
the National Academy of Sciences that reviewed registered pesticides 
and their potential to cause unreasonable adverse effects on human 
health, particularly on the health of pregnant women, infants, and 
children, Congress enacted the Food Quality Protection Act of 1996. 
That law requires EPA to reevaluate all registered pesticides and new 
pesticides to measure their safety, taking into account the unique 
exposures and sensitivity that pregnant women, infants, and children 
may have to pesticides. EPA review under that law is ongoing. You may 
request to be notified at least 24 hours in advance of pesticide 
applications to be made and receive information about the applications 
by registering with the school. Certain pesticides used by the school 
(including baits, pastes, and gels) are exempt from notification 
requirements. If you would like more information concerning any 
pesticide application or any product used at the school, contact 
__________ (insert name and phone number of contact person)'.
                    ``(B) Notification to persons on registry.--
                            ``(i) In general.--Except as provided in 
                        clause (ii) and paragraph (5)--
                                    ``(I) notice of an upcoming 
                                pesticide application at a school shall 
                                be provided to each person on the 
                                registry of the school not later than 
                                24 hours before the end of the last 
                                business day during which the school is 
                                in session that precedes the day on 
                                which the application is to be made; 
                                and
                                    ``(II) the application of a 
                                pesticide for which a notice is given 
                                under subclause (I) shall not commence 
                                before the end of the business day.
                            ``(ii) Notification concerning pesticides 
                        used in curricula.--If pesticides are used as 
                        part of a regular vocational agricultural 
                        curriculum of the school, a notice containing 
                        the information described in subclauses (I), 
                        (IV), (VI), and (VII) of clause (iii) for all 
                        pesticides that may be used as a part of that 
                        curriculum shall be provided to persons on the 
                        registry only once at the beginning of each 
                        academic term of the school.
                            ``(iii) Contents of notice.--A notice under 
                        clause (i) shall contain--
                                    ``(I) the trade name, common name 
                                (if applicable), and Environmental 
                                Protection Agency registration number 
                                of each pesticide to be applied;
                                    ``(II) a description of each 
                                location at the school at which a 
                                pesticide is to be applied;
                                    ``(III) a description of the date 
                                and time of application, except that, 
                                in the case of an outdoor pesticide 
                                application, a notice shall include at 
                                least 3 dates, in chronological order, 
                                on which the outdoor pesticide 
                                application may take place if the 
                                preceding date is canceled;
                                    ``(IV) all information supplied to 
                                the local educational agency by the 
                                State agency, including a description 
                                of potentially acute and chronic 
                                effects that may result from exposure 
                                to each pesticide to be applied based 
                                on--
                                            ``(aa) a description of 
                                        potentially acute and chronic 
                                        effects that may result from 
                                        exposure to each pesticide to 
                                        be applied, as stated on the 
                                        label of the pesticide approved 
                                        by the Administrator;
                                            ``(bb) information derived 
                                        from the material safety data 
                                        sheet for the end-use dilution 
                                        of the pesticide to be applied 
                                        (if available) or the material 
                                        safety data sheets; and
                                            ``(cc) final, official 
                                        information related to the 
                                        pesticide prepared by the 
                                        Administrator and provided to 
                                        the local educational agency by 
                                        the State agency;
                                    ``(V) a description of the purpose 
                                of the application of the pesticide;
                                    ``(VI) the address, telephone 
                                number, and website address of the 
                                Office of Pesticide Programs of the 
                                Environmental Protection Agency; and
                                    ``(VII) the statement described in 
                                subparagraph (A)(iv) (other than the 
                                ninth sentence of that statement).
                    ``(C) Notification and posting exemption.--A notice 
                or posting of a sign under subparagraph (A), (B), or 
                (G) shall not be required for the application at a 
                school of--
                            ``(i) an antimicrobial pesticide;
                            ``(ii) a bait, gel, or paste that is 
                        placed--
                                    ``(I) out of reach of children or 
                                in an area that is not accessible to 
                                children; or
                                    ``(II) in a tamper-resistant or 
                                child-resistant container or station; 
                                and
                            ``(iii) any pesticide that, as of the date 
                        of enactment of the School Environment 
                        Protection Act of 2001, is exempt from the 
                        requirements of this Act under section 25(b) 
                        (including regulations promulgated at section 
                        152 of title 40, Code of Federal Regulations 
                        (or any successor regulation)).
                    ``(D) New staff members and students.--After the 
                beginning of each school year, a local educational 
                agency or school within a local educational agency 
                shall provide each notice required under subparagraph 
                (A) to--
                            ``(i) each new staff member who is employed 
                        during the school year; and
                            ``(ii) the parent or guardian of each new 
                        student enrolled during the school year.
                    ``(E) Method of notification.--A local educational 
                agency or school may provide a notice under this 
                subsection, using information described in paragraph 
                (4), in the form of--
                            ``(i) a written notice sent home with the 
                        students and provided to staff members;
                            ``(ii) a telephone call;
                            ``(iii) direct contact;
                            ``(iv) a written notice mailed at least 1 
                        week before the application; or
                            ``(v) a notice delivered electronically 
                        (such as through electronic mail or facsimile).
                    ``(F) Reissuance.--If the date of the application 
                of the pesticide needs to be extended beyond the period 
                required for notice under this paragraph, the school 
                shall issue a notice containing only the new date and 
                location of application.
                    ``(G) Posting of signs.--
                            ``(i) In general.--Except as provided in 
                        paragraph (5)--
                                    ``(I) a school shall post a sign 
                                not later than the last business day 
                                during which school is in session 
                                preceding the date of application of a 
                                pesticide at the school; and
                                    ``(II) the application for which a 
                                sign is posted under subclause (I) 
                                shall not commence before the time that 
                                is 24 hours after the end of the 
                                business day on which the sign is 
                                posted.
                            ``(ii) Location.--A sign shall be posted 
                        under clause (i)--
                                    ``(I) at a central location 
                                noticeable to individuals entering the 
                                building; and
                                    ``(II) at the proposed site of 
                                application.
                            ``(iii) Administration.--A sign required to 
                        be posted under clause (i) shall--
                                    ``(I) remain posted for at least 24 
                                hours after the end of the application;
                                    ``(II) be--
                                            ``(aa) at least 8\1/2\ 
                                        inches by 11 inches for signs 
                                        posted inside the school; and
                                            ``(bb) at least 4 inches by 
                                        5 inches for signs posted 
                                        outside the school; and
                                    ``(III) contain--
                                            ``(aa) information about 
                                        the pest problem for which the 
                                        application is necessary;
                                            ``(bb) the name of each 
                                        pesticide to be used;
                                            ``(cc) the date of 
                                        application;
                                            ``(dd) the name and 
                                        telephone number of the 
                                        designated contact person; and
                                            ``(ee) the statement 
                                        contained in subparagraph 
                                        (A)(iv).
                            ``(iv) Outdoor pesticide applications.--
                                    ``(I) In general.--In the case of 
                                an outdoor pesticide application at a 
                                school, each sign shall include at 
                                least 3 dates, in chronological order, 
                                on which the outdoor pesticide 
                                application may take place if the 
                                preceding date is canceled.
                                    ``(II) Duration of posting.--A sign 
                                described in subclause (I) shall be 
                                posted after an outdoor pesticide 
                                application in accordance with clauses 
                                (ii) and (iii).
            ``(5) Emergencies.--
                    ``(A) In general.--A school may apply a pesticide 
                at the school without complying with this part in an 
                emergency, subject to subparagraph (B).
                    ``(B) Subsequent notification of parents, 
                guardians, and staff members.--Not later than the 
                earlier of the time that is 24 hours after a school 
                applies a pesticide under this paragraph or on the 
                morning of the next business day, the school shall 
                provide to each parent or guardian of a student listed 
                on the registry, a staff member listed on the registry, 
                and the designated contact person, notice of the 
                application of the pesticide in an emergency that 
                includes--
                            ``(i) the information required for a notice 
                        under paragraph (4)(G); and
                            ``(ii) a description of the problem and the 
                        factors that required the application of the 
                        pesticide to avoid a threat to the health or 
                        safety of a student or staff member.
                    ``(C) Method of notification.--The school may 
                provide the notice required by paragraph (B) by any 
                method of notification described in paragraph (4)(E).
                    ``(D) Posting of signs.--Immediately after the 
                application of a pesticide under this paragraph, a 
                school shall post a sign warning of the pesticide 
                application in accordance with clauses (ii) through 
                (iv) of paragraph (4)(B).
    ``(c) Relationship to State and Local Requirements.--Nothing in 
this section (including regulations promulgated under this section)--
            ``(1) precludes a State or political subdivision of a State 
        from imposing on local educational agencies and schools any 
        requirement under State or local law (including regulations) 
        that is more stringent than the requirements imposed under this 
        section; or
            ``(2) establishes any exception under, or affects in any 
        other way, section 24(b).
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out this section.''.
    (c) Conforming Amendment.--The table of contents in section 1(b) of 
the Federal Insecticide, Fungicide, and Rodenticide Act (7 U.S.C. prec. 
121) is amended by striking the items relating to sections 30 through 
32 and inserting the following:

``Sec. 30. Minimum requirements for training of maintenance applicators 
                            and service technicians.
``Sec. 31. Environmental Protection Agency minor use program.
``Sec. 32. Department of Agriculture minor use program.
        ``(a) In general.
        ``(b)(1) Minor use pesticide data.
        ``(2) Minor Use Pesticide Data Revolving Fund.
``Sec. 33. Pest management in schools.
        ``(a) Definitions.
            ``(1) Bait.
            ``(2) Contact person.
            ``(3) Emergency.
            ``(4) Local educational agency.
            ``(5) School.
            ``(6) Staff member.
            ``(7) State agency.
            ``(8) Universal notification.
        ``(b) School pest management plans.
            ``(1) State plans.
            ``(2) Implementation by local educational agencies.
            ``(3) Contact person.
            ``(4) Notification.
            ``(5) Emergencies.
        ``(c) Relationship to State and local requirements.
        ``(d) Authorization of appropriations.
``Sec. 34. Severability.
``Sec. 35. Authorization of appropriations.''.
    (d) Effective Date.--This section and the amendments made by this 
section take effect on October 1, 2001.

                      TITLE XI--TEACHER PROTECTION

SEC. 1101. TEACHER PROTECTION.

    The Act (20 U.S.C. 6301 et seq.) is amended by adding at the end 
the following:

                     ``TITLE X--TEACHER PROTECTION

``SEC. 10001. SHORT TITLE.

    ``This title may be cited as the `Paul D. Coverdell Teacher 
Protection Act of 2001'.

``SEC. 10002. FINDINGS AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) The ability of teachers, principals and other school 
        professionals to teach, inspire and shape the intellect of our 
        Nation's elementary and secondary school students is deterred 
        and hindered by frivolous lawsuits and litigation.
            ``(2) Each year more and more teachers, principals and 
        other school professionals face lawsuits for actions undertaken 
        as part of their duties to provide millions of school children 
        quality educational opportunities.
            ``(3) Too many teachers, principals and other school 
        professionals face increasingly severe and random acts of 
        violence in the classroom and in schools.
            ``(4) Providing teachers, principals and other school 
        professionals a safe and secure environment is an important 
        part of the effort to improve and expand educational 
        opportunities, which are critical for the continued economic 
        development of the United States.
            ``(5) Frivolous lawsuits against teachers maintaining order 
        in the classroom impose significant financial burdens on local 
        educational agencies, and deprive the agencies of funds that 
        would best be used for educating students.
            ``(6) Clarifying and limiting the liability of teachers, 
        principals and other school professionals who undertake 
        reasonable actions to maintain order, discipline and an 
        appropriate educational environment is an appropriate subject 
        of Federal legislation because--
                    ``(A) the scope of the problems created by the 
                legitimate fears of teachers, principals and other 
                school professionals about frivolous, arbitrary or 
                capricious lawsuits against teachers is of national 
                importance; and
                    ``(B) millions of children and their families 
                across the Nation depend on teachers, principals and 
                other school professionals for the intellectual 
                development of children.
    ``(b) Purpose.--The purpose of this title is to provide teachers, 
principals and other school professionals the tools they need to 
undertake reasonable actions to maintain order, discipline, and an 
appropriate educational environment.

``SEC. 10003. PREEMPTION AND ELECTION OF STATE NONAPPLICABILITY.

    ``(a) Preemption.--This title preempts the laws of any State to the 
extent that such laws are inconsistent with this title, except that 
this title shall not preempt any State law that provides additional 
protection from liability relating to teachers.
    ``(b) Election of State Regarding Nonapplicability.--This title 
shall not apply to any civil action in a State court against a teacher 
with respect to claims arising within that State if such State enacts a 
statute in accordance with State requirements for enacting 
legislation--
            ``(1) citing the authority of this subsection;
            ``(2) declaring the election of such State that this title 
        shall not apply, as of a date certain, to such civil action in 
        the State; and
            ``(3) containing no other provisions.

``SEC. 10004. LIMITATION ON LIABILITY FOR TEACHERS.

    ``(a) Liability Protection for Teachers.--Except as provided in 
subsections (b) through (d), no teacher in a school shall be liable for 
harm caused by an act or omission of the teacher on behalf of the 
school if--
            ``(1) the teacher was acting within the scope of the 
        teacher's employment or responsibilities related to providing 
        educational services;
            ``(2) the actions of the teacher were carried out in 
        conformity with local, State, and Federal laws (including rules 
        and regulations) in furtherance of efforts to control, 
        discipline, expel, or suspend a student or maintain order or 
        control in the classroom or school;
            ``(3) if appropriate or required, the teacher was properly 
        licensed, certified, or authorized by the appropriate 
        authorities for the activities or practice in the State in 
        which the harm occurred, where the activities were or practice 
        was undertaken within the scope of the teacher's 
        responsibilities;
            ``(4) the harm was not caused by willful or criminal 
        misconduct, gross negligence, reckless misconduct, or a 
        conscious, flagrant indifference to the rights or safety of the 
        individual harmed by the teacher; and
            ``(5) the harm was not caused by the teacher operating a 
        motor vehicle, vessel, aircraft, or other vehicle for which the 
        State requires the operator or the owner of the vehicle, craft, 
        or vessel to--
                    ``(A) possess an operator's license; or
                    ``(B) maintain insurance.
    ``(b) Concerning Responsibility of Teachers to Schools and 
Governmental Entities.--Nothing in this section shall be construed to 
affect any civil action brought by any school or any governmental 
entity against any teacher of such school.
    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to affect any State or local law (including a rule or 
regulation) or policy pertaining to the use of corporal punishment.
    ``(d) Exceptions to Teacher Liability Protection.--If the laws of a 
State limit teacher liability subject to 1 or more of the following 
conditions, such conditions shall not be construed as inconsistent with 
this section:
            ``(1) A State law that requires a school or governmental 
        entity to adhere to risk management procedures, including 
        mandatory training of teachers.
            ``(2) A State law that makes the school or governmental 
        entity liable for the acts or omissions of its teachers to the 
        same extent as an employer is liable for the acts or omissions 
        of its employees.
            ``(3) A State law that makes a limitation of liability 
        inapplicable if the civil action was brought by an officer of a 
        State or local government pursuant to State or local law.
    ``(e) Limitation on Punitive Damages Based on the Actions of 
Teachers.--
            ``(1) General rule.--Punitive damages may not be awarded 
        against a teacher in an action brought for harm based on the 
        action or omission of a teacher acting within the scope of the 
        teacher's responsibilities to a school or governmental entity 
        unless the claimant establishes by clear and convincing 
        evidence that the harm was proximately caused by an action or 
        omission of such teacher which constitutes willful or criminal 
        misconduct, or a conscious, flagrant indifference to the rights 
        or safety of the individual harmed.
            ``(2) Construction.--Paragraph (1) does not create a cause 
        of action for punitive damages and does not preempt or 
        supersede any Federal or State law to the extent that such law 
        would further limit the award of punitive damages.
    ``(f) Exceptions to Limitations on Liability.--
            ``(1) In general.--The limitations on the liability of a 
        teacher under this title shall not apply to any misconduct 
        that--
                    ``(A) constitutes a crime of violence (as that term 
                is defined in section 16 of title 18, United States 
                Code) or act of international terrorism (as that term 
                is defined in section 2331 of title 18, United States 
                Code) for which the defendant has been convicted in any 
                court;
                    ``(B) involves a sexual offense, as defined by 
                applicable State law, for which the defendant has been 
                convicted in any court;
                    ``(C) involves misconduct for which the defendant 
                has been found to have violated a Federal or State 
                civil rights law; or
                    ``(D) where the defendant was under the influence 
                (as determined pursuant to applicable State law) of 
                intoxicating alcohol or any drug at the time of the 
                misconduct.
            ``(2) Hiring.--The limitations on the liability of a 
        teacher under this title shall not apply to misconduct during 
        background investigations, or during other actions, involved in 
        the hiring of a teacher.

``SEC. 10005. LIABILITY FOR NONECONOMIC LOSS.

    ``(a) General Rule.--In any civil action against a teacher, based 
on an action or omission of a teacher acting within the scope of the 
teacher's responsibilities to a school or governmental entity, the 
liability of the teacher for noneconomic loss shall be determined in 
accordance with subsection (b).
    ``(b) Amount of Liability.--
            ``(1) In general.--Each defendant who is a teacher, shall 
        be liable only for the amount of noneconomic loss allocated to 
        that defendant in direct proportion to the percentage of 
        responsibility of that defendant (determined in accordance with 
        paragraph (2)) for the harm to the claimant with respect to 
        which that defendant is liable. The court shall render a 
        separate judgment against each defendant in an amount 
        determined pursuant to the preceding sentence.
            ``(2) Percentage of responsibility.--For purposes of 
        determining the amount of noneconomic loss allocated to a 
        defendant who is a teacher under this section, the trier of 
        fact shall determine the percentage of responsibility of each 
        person responsible for the claimant's harm, whether or not such 
        person is a party to the action.
    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to preempt or supersede any Federal or State law that further 
limits the application of joint liability in a civil action described 
in subsection (a), beyond the limitations established in this section.

``SEC. 10006. DEFINITIONS.

    ``For purposes of this title:
            ``(1) Economic loss.--The term `economic loss' means any 
        pecuniary loss resulting from harm (including the loss of 
        earnings or other benefits related to employment, medical 
        expense loss, replacement services loss, loss due to death, 
        burial costs, and loss of business or employment opportunities) 
        to the extent recovery for such loss is allowed under 
        applicable State law.
            ``(2) Harm.--The term `harm' includes physical, 
        nonphysical, economic, and noneconomic losses.
            ``(3) Noneconomic losses.--The term `noneconomic losses' 
        means losses for physical and emotional pain, suffering, 
        inconvenience, physical impairment, mental anguish, 
        disfigurement, loss of enjoyment of life, loss of society and 
        companionship, loss of consortium (other than loss of domestic 
        service), hedonic damages, injury to reputation and all other 
        nonpecuniary losses of any kind or nature.
            ``(4) School.--The term `school' means a public or private 
        kindergarten, a public or private elementary school or 
        secondary school (as defined in section 14101, or a home 
        school.
            ``(5) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        Guam, American Samoa, the Commonwealth of the Northern Mariana 
        Islands, any other territory or possession of the United 
        States, or any political subdivision of any such State, 
        territory, or possession.
            ``(6) Teacher.--The term `teacher' means a teacher, 
        instructor, principal, administrator, other educational 
        professional that works in a school, or an individual member of 
        a school board (as distinct from the board itself).

``SEC. 10007. EFFECTIVE DATE.

    ``(a) In General.--This title shall take effect 90 days after the 
date of the enactment of the Paul D. Coverdell Teacher Protection Act 
of 2001.
    ``(b) Application.--This title applies to any claim for harm caused 
by an act or omission of a teacher if that claim is filed on or after 
the effective date of the Paul D. Coverdell Teacher Protection Act of 
2001, without regard to whether the harm that is the subject of the 
claim or the conduct that caused the harm occurred before such 
effective date.''.

            TITLE XII--NATIVE AMERICAN EDUCATION IMPROVEMENT

SEC. 1201. SHORT TITLE.

    This title may be cited as the ``Native American Education 
Improvement Act of 2001''.

       Subtitle A--Amendments to the Education Amendments of 1978

SEC. 1211. AMENDMENTS TO THE EDUCATION AMENDMENTS OF 1978.

    Part B of title XI of the Education Amendments of 1978 (25 U.S.C. 
2001 et seq.) is amended to read as follows:

              ``PART B--BUREAU OF INDIAN AFFAIRS PROGRAMS

``SEC. 1120. FINDING AND POLICY.

    ``(a) Finding.--Congress finds and recognizes that--
            ``(1) the Federal Government's unique and continuing trust 
        relationship with and responsibility to the Indian people 
        includes the education of Indian children; and
            ``(2) the Federal Government has the responsibility for the 
        operation and financial support of the Bureau of Indian Affairs 
        funded school system that the Federal Government has 
        established on or near reservations and Indian trust lands 
        throughout the Nation for Indian children.
    ``(b) Policy.--It is the policy of the United States to work in 
full cooperation with tribes toward the goal of assuring that the 
programs of the Bureau of Indian Affairs funded school system are of 
the highest quality and provide for the basic elementary and secondary 
educational needs of Indian children, including meeting the unique 
educational and cultural needs of these children.

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

    ``(a) Purpose; Declarations of Purpose.--
            ``(1) Purpose.--The purpose of the accreditation required 
        under this section shall be to ensure that Indian students 
        being served by a school funded by the Bureau of Indian Affairs 
        are provided with educational opportunities that equal or 
        exceed those for all other students in the United States.
            ``(2) Declarations of purpose.--
                    ``(A) In general.--Local school boards for schools 
                operated by the Bureau of Indian Affairs, in 
                cooperation and consultation with the appropriate 
                tribal governing bodies and their communities, are 
                encouraged to adopt declarations of purpose for 
                education for their communities, taking into account 
                the implications of such declarations on education in 
                their communities and for their schools. In adopting 
                such declarations of purpose, the school boards shall 
                consider the effect the declarations may have on the 
                motivation of students and faculties.
                    ``(B) Contents.--A declaration of purpose for a 
                community shall--
                            ``(i) represent the aspirations of the 
                        community for the kinds of people the community 
                        would like the community's children to become; 
                        and
                            ``(ii) contain an expression of the 
                        community's desires that all students in the 
                        community shall--
                                    ``(I) become accomplished in things 
                                and ways important to the students and 
                                respected by their parents and 
                                community;
                                    ``(II) shape worthwhile and 
                                satisfying lives for themselves;
                                    ``(III) exemplify the best values 
                                of the community and humankind; and
                                    ``(IV) become increasingly 
                                effective in shaping the character and 
                                quality of the world all students 
                                share.
    ``(b) Accreditation.--
            ``(1) Deadline.--
                    ``(A) In general.--Not later than 12 months after 
                the date of enactment of the Native American Education 
                Improvement Act of 2001, each Bureau funded school 
                shall, to the extent that necessary funds are provided, 
                be a candidate for accreditation or be accredited--
                            ``(i) by a tribal department of education 
                        if such accreditation is accepted by a 
                        generally recognized State certification or 
                        regional accrediting agency;
                            ``(ii) by a regional accreditation agency;
                            ``(iii) in accordance with State 
                        accreditation standards for the State in which 
                        the school is located; or
                            ``(iv) in the case of a school that is 
                        located on a reservation that is located in 
                        more than 1 State, in accordance with the State 
                        accreditation standards of 1 State as selected 
                        by the tribal government.
                    ``(B) Feasibility study.--Not later than 12 months 
                after the date of enactment of the Native American 
                Education Improvement Act of 2001, the Secretary of the 
                Interior and the Secretary of Education shall, in 
                conjunction with Indian tribes, Indian education 
                organizations, and accrediting agencies, develop and 
                submit to the appropriate Committees of Congress a 
                report on the desirability and feasibility of 
                establishing a National Tribal Accreditation Agency 
                that would serve as an accrediting body for Bureau 
                funded schools.
            ``(2) Determination of accreditation to be applied.--The 
        accreditation type applied for each school shall be determined 
        by the tribal governing body, or the school board, if 
        authorized by the tribal governing body.
            ``(3) Assistance to school boards.--The Secretary, through 
        contracts and grants, shall provide technical and financial 
        assistance to Bureau funded schools, to the extent that 
        necessary amounts are made available, to enable such schools to 
        obtain the accreditation required under this subsection, if the 
        school boards request that such assistance, in part or in 
        whole, be provided. The Secretary may provide such assistance 
        directly or through the Department of Education, an institution 
        of higher education, a private not-for profit organization or 
        for-profit organization, an educational service agency, or 
        another entity with demonstrated experience in assisting 
        schools in obtaining accreditation.
            ``(4) Application of current standards during 
        accreditation.--A Bureau funded school that is seeking 
        accreditation shall remain subject to the standards issued 
        under section 1121 of the Education Amendments of 1978 and in 
        effect on the date of enactment of the Native American 
        Education Improvement Act of 2001 until such time as the school 
        is accredited, except that if any of such standards are in 
        conflict with the standards of the accrediting agency, the 
        standards of such agency shall apply in such case.
            ``(5) Annual report on unaccredited schools.--Not later 
        than 90 days after the end of each school year, the Secretary 
        shall prepare and submit to the Committees on Appropriations 
        and the Committee on Resources of the House of Representatives 
        and the Committees on Appropriations and the Committee on 
        Indian Affairs of the Senate, a report concerning unaccredited 
        Bureau funded schools that--
                    ``(A) identifies those Bureau funded schools that 
                fail to be accredited or to be candidates for 
                accreditation within the period provided for in 
                paragraph (1);
                    ``(B) with respect to each Bureau funded school 
                identified under subparagraph (A), identifies the 
                reasons that each such school is not accredited or a 
                candidate for accreditation, as determined by the 
                appropriate accreditation agency, and a description of 
                any possible way in which to remedy such 
                nonaccreditation; and
                    ``(C) with respect to each Bureau funded school for 
                which the reported reasons for the lack of 
                accreditation under subparagraph (B) are a result of 
                the school's inadequate basic resources, contains 
                information and funding requests for the full funding 
                needed to provide such schools with accreditation, such 
                funds if provided shall be applied to such unaccredited 
                school under this paragraph.
            ``(6) Opportunity to review and present evidence.--
                    ``(A) In general.--Prior to including a Bureau 
                funded school in an annual report required under 
                paragraph (5), the Secretary shall--
                            ``(i) ensure that the school has exhausted 
                        all administrative remedies provided by the 
                        accreditation agency; and
                            ``(ii) provide the school with an 
                        opportunity to review the data on which such 
                        inclusion is based.
                    ``(B) Provision of additional information.--If the 
                school board of a school that the Secretary has 
                proposed for inclusion in an annual report under 
                paragraph (5) believes that such inclusion is in error, 
                the school board may provide to the Secretary such 
                information as the board believes is in conflict with 
                the information and conclusions of the Secretary with 
                respect to the determination to include the school in 
                such annual report. The Secretary shall consider such 
                information provided by the school board before making 
                a final determination concerning the inclusion of the 
                school in any such report.
                    ``(C) Publication of accreditation status.--Not 
                later than 30 days after making an initial 
                determination to include a school in an annual report 
                under paragraph (5), the Secretary shall make public 
                the final determination on the accreditation status of 
                the school.
            ``(7) School plan.--
                    ``(A) In general.--Not later than 120 days after 
                the date on which a school is included in an annual 
                report under paragraph (5), the school shall develop a 
                school plan, in consultation with interested parties 
                including parents, school staff, the school board, and 
                other outside experts (if appropriate), that shall be 
                submitted to the Secretary for approval. The school 
                plan shall cover a 3-year period and shall--
                            ``(i) incorporate strategies that address 
                        the specific issues that caused the school to 
                        fail to be accredited or fail to be a candidate 
                        for accreditation;
                            ``(ii) incorporate policies and practices 
                        concerning the school that have the greatest 
                        likelihood of ensuring that the school will 
                        obtain accreditation during the 3 year-period 
                        beginning on the date on which the plan is 
                        implemented;
                            ``(iii) contain an assurance that the 
                        school will reserve the necessary funds, from 
                        the funds described in paragraph (3), for each 
                        fiscal year for the purpose of obtaining 
                        accreditation;
                            ``(iv) specify how the funds described in 
                        clause (iii) will be used to obtain 
                        accreditation;
                            ``(v) establish specific annual, objective 
                        goals for measuring continuous and significant 
                        progress made by the school in a manner that 
                        will ensure the accreditation of the school 
                        within the 3-year period described in clause 
                        (ii);
                            ``(vi) identify how the school will provide 
                        written notification about the lack of 
                        accreditation to the parents of each student 
                        enrolled in such school, in a format and, to 
                        the extent practicable, in a language the 
                        parents can understand; and
                            ``(vii) specify the responsibilities of the 
                        school board and any assistance to be provided 
                        by the Secretary under paragraph (3).
                    ``(B) Implementation.--A school shall implement the 
                school plan under subparagraph (A) expeditiously, but 
                in no event later than the beginning of the school year 
                following the school year in which the school was 
                included in the annual report under paragraph (5) so 
                long as the necessary resources have been provided to 
                the school.
                    ``(C) Review of plan.--Not later than 45 days after 
                receiving a school plan, the Secretary shall--
                            ``(i) establish a peer-review process to 
                        assist with the review of the plan; and
                            ``(ii) promptly review the school plan, 
                        work with the school as necessary, and approve 
                        the school plan if the plan meets the 
                        requirements of this paragraph.
            ``(8) Corrective action.--
                    ``(A) Definition.--In this subsection, the term 
                `corrective action' means action that--
                            ``(i) substantially and directly responds 
                        to--
                                    ``(I) the failure of a school to 
                                achieve accreditation; and
                                    ``(II) any underlying staffing, 
                                curriculum, or other programmatic 
                                problem in the school that contributed 
                                to the lack of accreditation; and
                            ``(ii) is designed to increase 
                        substantially the likelihood that the school 
                        will be accredited.
                    ``(B) Corrective action inapplicable.--The 
                Secretary shall grant a waiver to any school that fails 
                to be accredited for reasons that are beyond the 
                control of the school board, as determined by the 
                Secretary, including a significant decline in financial 
                resources, the poor condition of facilities, vehicles 
                or other property, or a natural disaster. Such a waiver 
                shall exempt such school from any or all of the 
                requirements of this paragraph and paragraph (7), but 
                such school shall be required to comply with the 
                standards contained in part 36 of title 25, Code of 
                Federal Register, as in effect on the date of enactment 
                of the Native American Education Improvement Act of 
                2001.
                    ``(C) Duties of secretary.--After providing 
                assistance to a school under paragraph (3), the 
                Secretary shall--
                            ``(i) annually review the progress of the 
                        school under the applicable school plan, to 
                        determine whether the school is meeting, or 
                        making adequate progress towards, achieving the 
                        goals described in paragraph (7)(A)(v) with 
                        respect to reaccreditation or becoming a 
                        candidate for accreditation;
                            ``(ii) except as provided in subparagraph 
                        (B), continue to provide assistance while 
                        implementing the school's plan, and, if 
                        determined appropriate by the Secretary, take 
                        corrective action with respect to the school if 
                        it fails to be accredited at the end of the 
                        third year of the school's plan;
                            ``(iii) promptly notify the parents of 
                        children enrolled in the school of the option 
                        to transfer their child to another school;
                            ``(iv) provide all students enrolled in the 
                        school with the option to transfer to another 
                        school, including a public or charter school, 
                        that is accredited; and
                            ``(v) provide, or pay for the provision of, 
                        transportation for each student described in 
                        clause (iv) to the school to which the student 
                        elects to be transferred.
                    ``(D) Failure of school plan.--With respect to a 
                Bureau operated school that fails to be accredited at 
                the end of the 3-year period during which the school's 
                plan is in effect under paragraph (7), the Secretary 
                may take 1 or more of the following corrective actions:
                            ``(i) Institute and fully implement actions 
                        suggested by the accrediting agency.
                            ``(ii) Consult with the tribe involved to 
                        determine the causes for the lack of 
                        accreditation including potential staffing and 
                        administrative changes that are or may be 
                        necessary.
                            ``(iii) Set aside a certain amount of funds 
                        that may only be used by the school to obtain 
                        accreditation.
                            ``(iv)(I) Provide the tribe with a 60-day 
                        period in which to determine whether the tribe 
                        desires to operate the school as a contract or 
                        grant school, before meeting the accreditation 
                        requirements in section 5207 of the Tribally 
                        Controlled Schools Act, at the beginning of the 
                        next school year following the determination to 
                        take corrective action. If the tribe agrees to 
                        operate the school as a contract or grant 
                        school, the tribe shall prepare a plan, 
                        pursuant to paragraph (7), for approval by the 
                        Secretary in accordance with paragraph (7), to 
                        achieve accreditation.
                            ``(II) If the tribe declines to assume 
                        control of the school, the Secretary, in 
                        consultation with the tribe, may contract with 
                        an outside entity, consistent with applicable 
                        law, or appoint a receiver or trustee to 
                        operate and administer the affairs of the 
                        school until the school is accredited. The 
                        outside entity, receiver or trustee shall 
                        prepare a plan, pursuant to paragraph (7), for 
                        approval by the Secretary in accordance with 
                        paragraph (7).
                            ``(III) Upon accreditation of the school, 
                        the Secretary shall allow the tribe to continue 
                        to operate the school as a grant or contract 
                        school, or if being controlled by an outside 
                        entity, provide the tribe with the option to 
                        assume operation of the school as a contract 
                        school, in accordance with the Indian Self 
                        Determination Act, or as a grant school in 
                        accordance with the Tribally Controlled Schools 
                        Act, at the beginning of the school year 
                        following the school year in which the school 
                        obtains accreditation. If the tribe declines, 
                        the Secretary may allow the outside entity, 
                        receiver or trustee to continue the operation 
                        of the school or reassume control of the 
                        school.
                            ``(v)(I) With respect to--
                                    ``(aa) a school that is a grant 
                                school, comply with section 5207 of the 
                                Tribally Controlled Schools Act;
                                    ``(bb) a school that is a contract 
                                school, comply with the Indian Self 
                                Determination Act;
                                    ``(cc) a school described in item 
                                (aa) or (bb), take any corrective 
                                actions described in clauses (i) 
                                through (iii); or
                                    ``(dd) a school described in item 
                                (aa) or (bb), the Secretary, after 
                                complying with the notice and hearing 
                                requirements of the reassumption 
                                provisions of the Indian Self 
                                Determination Act, may assume the 
                                operation and administration of the 
                                school at the beginning of the school 
                                year following the revocation of the 
                                school's determination of eligibility 
                                and shall adopt a plan in accordance 
                                with paragraph (7).
                            ``(II) With respect to a school described 
                        in subclause (I), if, at the end of the 3-year 
                        period during which the school's plan is in 
                        effect under paragraph (7), the school is still 
                        not accredited, the Secretary in consultation 
                        with the tribe may contract with an outside 
                        entity or appoint a receiver or trustee, which 
                        shall adopt a plan in accordance with paragraph 
                        (7), to operate and administer the affairs of 
                        the school until the school is accredited.
                            ``(III) Upon accreditation of the school, 
                        the tribe shall have the option to assume the 
                        operation and administration of the school as a 
                        contract school after complying with the Indian 
                        Self Determination Act, or as a grant school, 
                        after complying with the Tribally Controlled 
                        Schools Act, at the beginning of the school 
                        year following the year in which the school 
                        obtains accreditation.
                            ``(IV) The provisions of this clause shall 
                        be construed consistent with the provisions of 
                        the Tribally Controlled Schools Act and the 
                        Indian Self Determination Act as in effect on 
                        the date of enactment of the Native American 
                        Education Improvement Act of 2001, and shall 
                        not be construed as expanding the authority of 
                        the Secretary under any other law.
                    ``(E) Hearing.--With respect to a school that is 
                operated pursuant to a grant, or a school that is 
                operated under a contract under the Indian Self 
                Determination Act, prior to implementing any corrective 
                action under this paragraph, the Secretary shall 
                provide notice and an opportunity for a hearing to the 
                affected school pursuant to section 5207 of the 
                Tribally Controlled Schools Act.
            ``(9) Statutory construction.--Nothing in this section 
        shall be construed to alter or otherwise affect the rights, 
        remedies, and procedures afforded to school employees under 
        applicable law (including applicable regulations or court 
        orders) or under the terms of any collective bargaining 
        agreement, memorandum of understanding, or other agreement 
        between such employees and their employers.
    ``(c) Annual Plan.--
            ``(1) In general.--Except as provided in subsection (b), 
        the Secretary shall implement the Bureau standards in effect on 
        the date of enactment of the Native American Education 
        Improvement Act of 2001.
            ``(2) Plan.--On an annual basis, the Secretary shall submit 
        to the appropriate committees of Congress, all Bureau funded 
        schools, and the tribal governing bodies of such schools a 
        detailed plan to ensure that all Bureau funded schools are 
        accredited, or if such school are in the process of obtaining 
        accreditation that such school meet the Bureau standards in 
        effect on the date of enactment of the Native American 
        Education Improvement Act of 2001 to the extent that such 
        standards do not conflict with the standards of the accrediting 
        agency. Such plan shall include detailed information on the 
        status of each school's educational program in relation to the 
        applicable standards, specific cost estimates for meeting such 
        standards at each school, and specific timelines for bringing 
        each school up to the level required by such standards.
    ``(d) Closure or Consolidation of Schools.--
            ``(1) In general.--Except as specifically required by law, 
        no Bureau funded school or dormitory operated on or after 
        January 1, 1992, may be closed, consolidated, or transferred to 
        another authority and no program of such a school may be 
        substantially curtailed except in accordance with the 
        requirements of this subsection.
            ``(2) Exceptions.--This subsection (other than this 
        paragraph) shall not apply--
                    ``(A) in those cases in which the tribal governing 
                body for a school, or the local school board concerned 
                (if designated by the tribal governing body to act 
                under this paragraph), requests the closure, 
                consolidation, or substantial curtailment; or
                    ``(B) if a temporary closure, consolidation, or 
                substantial curtailment is required by facility 
                conditions that constitute an immediate hazard to 
                health and safety.
            ``(3) Regulations.--The Secretary shall, by regulation, 
        promulgate standards and procedures for the closure, transfer 
        to another authority, consolidation, or substantial curtailment 
        of school programs of Bureau schools, in accordance with the 
        requirements of this subsection.
            ``(4) Notification.--
                    ``(A) Consideration.--Whenever closure, transfer to 
                another authority, consolidation, or substantial 
                curtailment of a school program of a Bureau school is 
                under active consideration or review by any division of 
                the Bureau or the Department of the Interior, the head 
                of the division or the Secretary shall ensure that the 
                affected tribe, tribal governing body, and local school 
                board, are notified (in writing) immediately, kept 
                fully and currently informed, and afforded an 
                opportunity to comment with respect to such 
                consideration or review.
                    ``(B) Formal decision.--When the head of any 
                division of the Bureau or the Secretary makes a formal 
                decision to close, transfer to another authority, 
                consolidate, or substantially curtail a school program 
                of a Bureau school, the head of the division or the 
                Secretary shall notify (in writing) the affected 
                tribes, tribal governing body, and local school board 
                at least 6 months prior to the end of the academic year 
                preceding the date of the proposed action.
                    ``(C) Copies of notifications and information.--The 
                Secretary shall transmit copies of the notifications 
                described in this paragraph promptly to the appropriate 
                committees of Congress and publish such notifications 
                copies in the Federal Register.
            ``(5) Report.--
                    ``(A) In general.--The Secretary shall submit a 
                report to the appropriate committees of Congress, the 
                affected tribal governing body and the designated local 
                school board, describing the process of the active 
                consideration or review referred to in paragraph (4).
                    ``(B) Contents.--The report shall include the 
                results of a study of the impact of the action under 
                consideration or review on the student population of 
                the school involved, identify those students at the 
                school with particular educational and social needs, 
                and ensure that alternative services are available to 
                such students. Such report shall include a description 
                of consultation conducted between the potential service 
                provider and current service provider of such services, 
                parents, tribal representatives, the tribe involved, 
                and the Director regarding such students.
            ``(6) Limitation on certain actions.--No irreversible 
        action may be taken to further any proposed school closure, 
        transfer to another authority, consolidation, or substantial 
        curtailment described in this subsection concerning a school 
        (including any action that would prejudice the personnel or 
        programs of such school) prior to the end of the first full 
        academic year after the report described in paragraph (5) is 
        submitted.
            ``(7) Tribal governing body approval required for certain 
        actions.--The Secretary may terminate, contract, transfer to 
        any other authority, consolidate, or substantially curtail the 
        operation or facilities of--
                    ``(A) any Bureau funded school that is operated on 
                or after January 1, 1999;
                    ``(B) any program of such a school that is operated 
                on or after January 1, 1999; or
                    ``(C) any school board of a school operated under a 
                grant under the Tribally Controlled Schools Act of 
                1988,
        only if the tribal governing body for the school involved 
        approves such action.
    ``(e) Application for Contracts or Grants for Non-Bureau Funded 
Schools or Expansion of Bureau Funded Schools.--
            ``(1) In general.--
                    ``(A) Applications.--
                            ``(i) Tribes; school boards.--The Secretary 
                        shall only consider the factors described in 
                        subparagraph (B) in reviewing--
                                    ``(I) applications from any tribe 
                                for the awarding of a contract or grant 
                                for a school that is not a Bureau 
                                funded school; and
                                    ``(II) applications from any tribe 
                                or school board associated with any 
                                Bureau funded school for the awarding 
                                of a contract or grant for the 
                                expansion of a Bureau funded school 
                                that would increase the amount of funds 
                                received by the tribe or school board 
                                under section 1126.
                            ``(ii) Limitation.--With respect to 
                        applications described in this subparagraph, 
                        the Secretary shall give consideration to all 
                        the factors described in subparagraph (B), but 
                        no such application shall be denied based 
                        primarily upon the geographic proximity of 
                        comparable public education.
                    ``(B) Factors.--With respect to applications 
                described in subparagraph (A) the Secretary shall 
                consider the following factors relating to the program 
                and services that are the subject of the application:
                            ``(i) The adequacy of existing facilities 
                        to support the proposed program and services or 
                        the applicant's ability to obtain or provide 
                        adequate facilities.
                            ``(ii) Geographic and demographic factors 
                        in the affected areas.
                            ``(iii) The adequacy of the applicant's 
                        program plans or, in the case of a Bureau 
                        funded school, of a projected needs analysis 
                        conducted either by the tribe or the Bureau.
                            ``(iv) Geographic proximity of comparable 
                        public education.
                            ``(v) The stated needs of all affected 
                        parties, including students, families, tribal 
                        governing bodies at both the central and local 
                        levels, and school organizations.
                            ``(vi) Adequacy and comparability of 
                        programs and services already available.
                            ``(vii) Consistency of the proposed program 
                        and services with tribal educational codes or 
                        tribal legislation on education.
                            ``(viii) The history and success of these 
                        services for the proposed population to be 
                        served, as determined from all factors, 
                        including standardized examination performance.
            ``(2) Determination on application.--
                    ``(A) Period.--The Secretary shall make a 
                determination concerning whether to approve any 
                application described in paragraph (1)(A) not later 
                than 180 days after the date such application is 
                submitted to the Secretary.
                    ``(B) Failure to make determination.--If the 
                Secretary fails to make the determination with respect 
                to an application by the date described in subparagraph 
                (A), the application shall be treated as having been 
                approved by the Secretary.
            ``(3) Requirements for applications.--
                    ``(A) Approval.--Notwithstanding paragraph (2)(B), 
                an application described in paragraph (1)(A) may be 
                approved by the Secretary only if--
                            ``(i) the application has been approved by 
                        the tribal governing body of the students 
                        served by (or to be served by) the school or 
                        program that is the subject of the application; 
                        and
                            ``(ii) the tribe or designated school board 
                        involved submits written evidence of such 
                        approval with the application.
                    ``(B) Information.--Each application described in 
                paragraph (1)(A) shall contain information discussing 
                each of the factors described in paragraph (1)(B).
            ``(4) Denial of applications.--If the Secretary denies an 
        application described in paragraph (1)(A), the Secretary 
        shall--
                    ``(A) state the objections to the application in 
                writing to the applicant not later than 180 days after 
                the date the application is submitted to the Secretary;
                    ``(B) provide assistance to the applicant to 
                overcome the stated objections;
                    ``(C) provide to the applicant a hearing on the 
                record regarding the denial, under the same rules and 
                regulations as apply under the Indian Self-
                Determination and Education Assistance Act; and
                    ``(D) provide to the applicant a notice of the 
                applicant's appeals rights and an opportunity to appeal 
                the decision resulting from the hearing under 
                subparagraph (D).
            ``(5) Effective date of a subject application.--
                    ``(A) In general.--Except as otherwise provided in 
                this paragraph, the action that is the subject of any 
                application described in paragraph (1)(A) that is 
                approved by the Secretary shall become effective--
                            ``(i) on the first day of the academic year 
                        following the fiscal year in which the 
                        application is approved; or
                            ``(ii) on an earlier date determined by the 
                        Secretary.
                    ``(B) Application treated as approved.--If an 
                application is treated as having been approved by the 
                Secretary under paragraph (2)(B), the action that is 
                the subject of the application shall become effective--
                            ``(i) on the date that is 18 months after 
                        the date on which the application is submitted 
                        to the Secretary; or
                            ``(ii) on an earlier date determined by the 
                        Secretary.
            ``(6) Statutory construction.--Nothing in this section, or 
        any other provision of law, shall be construed to preclude the 
        expansion of grades and related facilities at a Bureau funded 
        school, if such expansion is paid for with non-Bureau funds.
    ``(f) Joint Administration.--Administrative, transportation, and 
program cost funds received by Bureau funded schools, and any program 
from the Department of Education or any other Federal agency for the 
purpose of providing education or related services, and other funds 
received for such education and related services from non-Federally 
funded programs, shall be apportioned and the funds shall be retained 
at the school.
    ``(g) General Use of Funds.--Funds received by Bureau funded 
schools from the Bureau of Indian Affairs and under any program from 
the Department of Education or any other Federal agency for the purpose 
of providing education or related services may be used for schoolwide 
projects to improve the educational program of the schools for all 
Indian students.
    ``(h) Study on Adequacy of Funds and Formulas.--
            ``(1) Study.--The Comptroller General of the United States 
        shall conduct a study to include an analysis of the information 
        contained in the General Accounting Office study evaluating and 
        comparing school systems of the Department of Defense and the 
        Bureau of Indian Affairs, in consultation with tribes and local 
        school boards, to determine the adequacy of funding, and 
        formulas used by the Bureau to determine funding, for programs 
        operated by Bureau funded schools, taking into account unique 
        circumstances applicable to Bureau funded schools.
            ``(2) Findings.--On completion of the study under paragraph 
        (1), the Secretary shall take such action as may be necessary 
        to ensure distribution of the findings of the study to the 
        appropriate authorizing and appropriating committees of 
        Congress, all affected tribes, local school boards, and 
        associations of local school boards.

``SEC. 1122. NATIONAL STANDARDS FOR HOME LIVING SITUATIONS.

    ``(a) In General.--The Secretary, in accordance with section 1136, 
shall revise the national standards for home-living (dormitory) 
situations to include such factors as heating, lighting, cooling, 
adult-child ratios, need for counselors (including special needs 
related to off-reservation home-living (dormitory) situations), 
therapeutic programs, space, and privacy. Such standards shall be 
implemented in Bureau schools. Any subsequent revisions shall also be 
in accordance with such section 1136.
    ``(b) Implementation.--The Secretary shall implement the revised 
standards established under this section immediately upon their 
issuance.
    ``(c) Plan.--
            ``(1) In general.--Upon the submission of each annual 
        budget request for Bureau educational services (as contained in 
        the President's annual budget request under section 1105 of 
        title 31, United States Code), the Secretary shall submit to 
        the appropriate committees of Congress, the tribes, and the 
        affected schools, and publish in the Federal Register, a 
        detailed plan to bring all Bureau funded schools that have 
        dormitories or provide home-living (dormitory) situations into 
        compliance with the standards established under this section.
            ``(2) Contents.--Each plan under paragraph (1) shall 
        include--
                    ``(A) a statement of the relative needs of each of 
                the home-living schools and projected future needs of 
                each of the home-living schools;
                    ``(B) detailed information on the status of each of 
                the schools in relation to the standards established 
                under this section;
                    ``(C) specific cost estimates for meeting each 
                standard for each such school;
                    ``(D) aggregate cost estimates for bringing all 
                such schools into compliance with the standards 
                established under this section; and
                    ``(E) specific timelines for bringing each school 
                into compliance with such standards.
    ``(d) Waiver.--
            ``(1) In general.--A tribal governing body or local school 
        board may, in accordance with this subsection, waive the 
        standards established under this section for a school described 
        in subsection (a).
            ``(2) Inappropriate standards.--
                    ``(A) In general.--A tribal governing body, or the 
                local school board so designated by the tribal 
                governing body, may waive, in whole or in part, the 
                standards established under this section if such 
                standards are determined by such body or board to be 
                inappropriate for the needs of students from that 
                tribe.
                    ``(B) Alternative standards.--The tribal governing 
                body or school board involved shall, not later than 60 
                days after providing a waiver under subparagraph (A) 
                for a school, submit to the Director a proposal for 
                alternative standards that take into account the 
                specific needs of the tribe's children. Such 
                alternative standards shall be established by the 
                Director for the school involved unless specifically 
                rejected by the Director for good cause and in writing 
                provided to the affected tribes or local school board.
    ``(e) Closure for Failure To Meet Standards Prohibited.--No school 
in operation on or before July 1, 1999 (regardless of compliance or 
noncompliance with the standards established under this section), may 
be closed, transferred to another authority, or consolidated, and no 
program of such a school may be substantially curtailed, because the 
school failed to meet such standards.

``SEC. 1123. SCHOOL BOUNDARIES.

    ``(a) Establishment by Secretary.--Except as described in 
subsection (b), the Secretary shall establish, by regulation, separate 
geographical attendance areas for each Bureau funded school.
    ``(b) Establishment by Tribal Body.--In any case in which there is 
more than 1 Bureau funded school located on a reservation of a tribe, 
at the direction of the tribal governing body, the relevant school 
boards of the Bureau funded schools on the reservation may, by mutual 
consent, establish the boundaries of the relevant geographical 
attendance areas for such schools, subject to the approval of the 
tribal governing body. Any such boundaries so established shall be 
accepted by the Secretary.
    ``(c) Boundary Revisions.--
            ``(1) In general.--Effective on July 1, 1999, the Secretary 
        may not establish or revise boundaries of a geographical 
        attendance area with respect to any Bureau funded school unless 
        the tribal governing body concerned and the school board 
        concerned has been afforded--
                    ``(A) at least 6 months notice of the intention of 
                the Secretary to establish or revise such boundaries; 
                and
                    ``(B) the opportunity to propose alternative 
                boundaries.
            ``(2) Petitions.--Any tribe may submit a petition to the 
        Secretary requesting a revision of the geographical attendance 
        area boundaries referred to in paragraph (1).
            ``(3) Boundaries.--The Secretary shall accept proposed 
        alternative boundaries described in paragraph (1)(B) or revised 
        boundaries described in a petition submitted under paragraph 
        (2) unless the Secretary finds, after consultation with the 
        affected tribe, that such alternative or revised boundaries do 
        not reflect the needs of the Indian students to be served or do 
        not provide adequate stability to all of the affected programs. 
        On accepting the boundaries, the Secretary shall publish 
        information describing the boundaries in the Federal Register.
            ``(4) Tribal resolution determination.--Nothing in this 
        section shall be interpreted as denying a tribal governing body 
        the authority, on a continuing basis, to adopt a tribal 
        resolution allowing parents a choice of the Bureau funded 
        school their child may attend, regardless of the geographical 
        attendance area boundaries established under this section.
    ``(d) Funding Restrictions.--The Secretary shall not deny funding 
to a Bureau funded school for any eligible Indian student attending the 
school solely because that student's home or domicile is outside of the 
boundaries of the geographical attendance area established for that 
school under this section. No funding shall be made available for 
transportation without tribal authorization to enable the school to 
provide transportation for any student to or from the school and a 
location outside the approved attendance area of the school.
    ``(e) Reservation as Boundary.--In any case in which there is only 
1 Bureau funded school located on a reservation, the boundaries of the 
geographical attendance area for the school shall be the boundaries (as 
established by treaty, agreement, legislation, court decision, or 
executive decision and as accepted by the tribe involved) of the 
reservation served, and those students residing near the reservation 
shall also receive services from such school.
    ``(f) Off-Reservation Home-Living Schools.--Notwithstanding the 
boundaries of the geographical attendance areas established under this 
section, each Bureau funded school that is an off-reservation home-
living school shall implement special emphasis programs and permit the 
attendance of students requiring the programs. The programs provided 
for such students shall be coordinated among education line officers, 
the families of the students, the schools, and the entities operating 
programs that referred the students to the schools.

``SEC. 1124. FACILITIES CONSTRUCTION.

    ``(a) National Survey of Facilities Conditions.--
            ``(1) In general.--Not later than 12 months after the date 
        of enactment of the Native American Education Improvement Act 
        of 2001, the General Accounting Office shall compile, collect, 
        and secure the data that is needed to prepare a national survey 
        of the physical conditions of all Bureau funded school 
        facilities.
            ``(2) Data and methodologies.--In preparing the national 
        survey required under paragraph (1), the General Accounting 
        Office shall use the following data and methodologies:
                    ``(A) The existing Department of Defense formula 
                for determining the condition and adequacy of 
                Department of Defense facilities.
                    ``(B) Data related to conditions of Bureau funded 
                schools that has previously been compiled, collected, 
                or secured from whatever source derived so long as the 
                data is relevant, timely, and necessary to the survey.
                    ``(C) The methodologies of the American Institute 
                of Architects, or other accredited and reputable 
                architecture or engineering associations.
            ``(3) Consultations.--
                    ``(A) In general.--In carrying out the survey 
                required under paragraph (1), the General Accounting 
                Office shall, to the maximum extent practicable, 
                consult (and if necessary contract) with national, 
                regional, and tribal Indian education organizations to 
                ensure that a complete and accurate national survey is 
                achieved.
                    ``(B) Requests for information.--All Bureau funded 
                schools shall comply with reasonable requests for 
                information by the General Accounting Office and shall 
                respond to such requests in a timely fashion.
            ``(4) Submission to congress.--Not later than 24 months 
        after the date of enactment of the Native American Education 
        Improvement Act of 2001, the General Accounting Office shall 
        submit the results of the national survey conducted under 
        paragraph (1) to the Committee on Indian Affairs and Committee 
        on Appropriations of the Senate, and the Committee on 
        Resources, Committee on Education and the Workforce, and 
        Committee on Appropriations of the House and to the Secretary, 
        who, in turn shall submit the results of the national survey to 
        school boards of Bureau-funded schools and their respective 
        Tribes.
            ``(5) Negotiated rulemaking committee.--
                    ``(A) In general.--Not later than 6 months after 
                the date on which the submission is made under 
                paragraph (4), the Secretary shall establish a 
                negotiated rule making committee pursuant to section 
                1136(c). The negotiated rulemaking committee shall 
                prepare and submit to the Secretary the following:
                            ``(i) A catalogue of the condition of 
                        school facilities at all Bureau funded schools 
                        that--
                                    ``(I) incorporates the findings 
                                from the General Accounting Office 
                                study evaluating and comparing school 
                                systems of the Department of Defense 
                                and the Bureau of Indian Affairs;
                                    ``(II) rates such facilities with 
                                respect to the rate of deterioration 
                                and useful life of structures and major 
                                systems;
                                    ``(III) establishes a routine 
                                maintenance schedule for each facility;
                                    ``(IV) identifies the complementary 
                                educational facilities that do not 
                                exist but that are needed; and
                                    ``(V) makes projections on the 
                                amount of funds needed to keep each 
                                school viable, consistent with the 
                                accreditation standards required 
                                pursuant to this Act.
                            ``(ii) A school replacement and new 
                        construction report that determines replacement 
                        and new construction need, and a formula for 
                        the equitable distribution of funds to address 
                        such need, for Bureau funded schools. Such 
                        formula shall utilize necessary factors in 
                        determining an equitable distribution of funds, 
                        including--
                                    ``(I) the size of school;
                                    ``(II) school enrollment;
                                    ``(III) the age of the school;
                                    ``(IV) the condition of the school;
                                    ``(V) environmental factors at the 
                                school; and
                                    ``(VI) school isolation.
                            ``(iii) A renovation repairs report that 
                        determines renovation need (major and minor), 
                        and a formula for the equitable distribution of 
                        funds to address such need, for Bureau funded 
                        schools. Such report shall identify needed 
                        repairs or renovations with respect to a 
                        facility, or a part of a facility, or the 
                        grounds of the facility, to remedy a need based 
                        on disabilities access or health and safety 
                        changes to a facility. The formula developed 
                        shall utilize necessary factors in determining 
                        an equitable distribution of funds, including 
                        the factors described in subparagraph (B).
                    ``(B) Submission of reports.--Not later than 24 
                months after the negotiated rulemaking committee is 
                established under subparagraph (A), the reports 
                described in clauses (ii) and (iii) of subparagraph (A) 
                shall be submitted to the committees of Congress 
                referred to in paragraph (4), the national and regional 
                Indian education organizations, and to all school 
                boards of Bureau-funded schools and their respective 
                Tribes.
            ``(6) Facilities information systems support database.--The 
        Secretary shall develop a Facilities Information Systems 
        Support Database to maintain and update the information 
        contained in the reports under clauses (ii) and (iii) of 
        paragraph (5)(A) and the information contained in the survey 
        conducted under paragraph (1). The system shall be updated 
        every 3 years by the Bureau of Indian Affairs and monitored by 
        General Accounting Office, and shall be made available to 
        school boards of Bureau-funded schools and their respective 
        Tribes, and Congress.
    ``(b) Compliance With Health and Safety Standards.--The Secretary 
shall immediately begin to bring all schools, dormitories, and other 
Indian education-related facilities operated by the Bureau or under 
contract or grant with the Bureau into compliance with all applicable 
tribal, Federal, or State health and safety standards, whichever 
provides greater protection (except that the tribal standards to be 
applied shall be no greater than any otherwise applicable Federal or 
State standards), with section 504 of the Rehabilitation Act of 1973, 
and with the Americans with Disabilities Act of 1990. Nothing in this 
section shall require termination of the operations of any facility 
which does not comply with such provisions and which is in use on the 
date of the enactment of the Native American Education Improvement Act 
of 2001.
    ``(c) Compliance Plan.--At the time that the annual budget request 
for Bureau educational services is presented, the Secretary shall 
submit to the appropriate committees of Congress a detailed plan to 
bring all facilities covered under subsection (b) of this section into 
compliance with the standards referred to in subsection (b). Such plan 
shall include detailed information on the status of each facility's 
compliance with such standards, specific cost estimates for meeting 
such standards at each school, and specific timelines for bringing each 
school into compliance with such standards.
    ``(d) Construction Priorities.--
            ``(1) System to establish priorities.--The Secretary shall 
        annually prepare and submit to the appropriate committees of 
        Congress, and publish in the Federal Register, information 
        describing the system used by the Secretary to establish 
        priorities for replacement and construction projects for Bureau 
        funded schools and home-living schools, including boarding 
        schools, and dormitories. On making each budget request 
        described in subsection (c), the Secretary shall publish in the 
        Federal Register and submit with the budget request a list of 
        all of the Bureau funded school construction priorities, as 
        described in paragraph (2).
            ``(2) Long-term construction and replacement list.--In 
        addition to submitting the plan described in subsection (c), 
        the Secretary shall--
                    ``(A) not later than 18 months after the date of 
                enactment of the Native American Education Improvement 
                Act of 2001, establish a long-term construction and 
                replacement priority list for all Bureau funded 
                schools;
                    ``(B) using the list prepared under subparagraph 
                (A), propose a list for the orderly replacement of all 
                Bureau funded education-related facilities over a 
                period of 40 years to facilitate planning and 
                scheduling of budget requests;
                    ``(C) publish the list prepared under subparagraph 
                (B) in the Federal Register and allow a period of not 
                less than 120 days for public comment;
                    ``(D) make such revisions to the list prepared 
                under subparagraph (B) as are appropriate based on the 
                comments received; and
                    ``(E) publish a final list in the Federal Register.
            ``(3) Effect on other list.--Nothing in this section shall 
        be construed as interfering with or changing in any way the 
        construction and replacement priority list established by the 
        Secretary, as the list exists on the date of enactment of the 
        Native American Education Improvement Act of 2001.
    ``(e) Hazardous Condition at Bureau Funded School.--
            ``(1) Closure, consolidation, or curtailment.--
                    ``(A) In general.--A Bureau funded school may be 
                closed or consolidated, and the programs of a Bureau 
                funded school may be substantially curtailed by reason 
                of facility conditions that constitute an immediate 
                hazard to health and safety only if a health and safety 
                officer of the Bureau and an individual designated by 
                the tribe involved under subparagraph (B), determine 
                that such conditions exist at a facility of the Bureau 
                funded school.
                    ``(B) Designation of individual by tribe.--To be 
                designated by a tribe for purposes of subparagraph (A), 
                an individual shall--
                            ``(i) be a licensed or certified facilities 
                        safety inspector;
                            ``(ii) have demonstrated experience in the 
                        inspection of facilities for health and safety 
                        purposes with respect to occupancy; or
                            ``(iii) have a significant educational 
                        background in the health and safety of 
                        facilities with respect to occupancy.
                    ``(C) Inspection.--In making a determination 
                described in subparagraph (A), the Bureau health and 
                safety officer and the individual designated by the 
                tribe shall conduct an inspection of the conditions of 
                such facility in order to determine whether conditions 
                at such facility constitute an immediate hazard to 
                health and safety.
                    ``(D) Failure to concur.--If the Bureau health and 
                safety officer, and the individual designated by the 
                tribe, conducting the inspection of a facility required 
                under subparagraph (A) do not concur that conditions at 
                the facility constitute an immediate hazard to health 
                and safety, such officer and individual shall 
                immediately notify the tribal governing body and 
                provide written information related to their 
                determinations.
                    ``(E) Consideration by tribal governing body.--Not 
                later than 10 days after a tribal governing body 
                received notice under subparagraph (D), the tribal 
                governing body shall consider all information related 
                to the determinations of the Bureau health and safety 
                officer and the individual designated by the tribe and 
                make a determination regarding the closure, 
                consolidation, or curtailment involved.
                    ``(F) Agreement to close, consolidate, or 
                curtail.--If the Bureau health and safety officer, and 
                the individual designated by the tribe, conducting the 
                inspection of a facility required under subparagraph 
                (A), concur that conditions at the facility constitute 
                an immediate hazard to health and safety, or if the 
                tribal governing body makes such a determination under 
                subparagraph (E) the facility involved shall be closed 
                immediately.
                    ``(G) General closure report.--If a Bureau funded 
                school is temporarily closed or consolidated or the 
                programs of a Bureau funded school are temporarily 
                substantially curtailed under this subsection and the 
                Secretary determines that the closure, consolidation, 
                or curtailment will exceed 1 year, the Secretary shall 
                submit to the appropriate committees of Congress, the 
                affected tribe, and the local school board, not later 
                than 3 months after the date on which the closure, 
                consolidation, or curtailment was initiated, a report 
                that specifies--
                            ``(i) the reasons for such temporary 
                        action;
                            ``(ii) the actions the Secretary is taking 
                        to eliminate the conditions that constitute the 
                        hazard;
                            ``(iii) an estimated date by which the 
                        actions described in clause (ii) will be 
                        concluded; and
                            ``(iv) a plan for providing alternate 
                        education services for students enrolled at the 
                        school that is to be closed.
            ``(2) Nonapplication of certain standards for temporary 
        facility use.--
                    ``(A) Classroom activities.--The Secretary shall 
                permit the local school board to temporarily utilize 
                facilities adjacent to the school, or satellite 
                facilities, if such facilities are suitable for 
                conducting classroom activities. In permitting the use 
                of facilities under the preceding sentence, the 
                Secretary may waive applicable minor standards under 
                section 1121 relating to such facilities (such as the 
                required number of exit lights or configuration of 
                restrooms) so long as such waivers do not result in the 
                creation of an environment that constitutes an 
                immediate and substantial threat to the health, safety, 
                and life of students and staff.
                    ``(B) Administrative activities.--The provisions of 
                subparagraph (A) shall apply with respect to 
                administrative personnel if the facilities involved are 
                suitable for activities performed by such personnel.
                    ``(C) Temporary.--In this paragraph, the term 
                `temporary' means--
                            ``(i) with respect to a school that is to 
                        be closed for not more than 1 year, 3 months or 
                        less; and
                            ``(ii) with respect to a school that is to 
                        be closed for not less than 1 year, a time 
                        period determined appropriate by the Bureau.
            ``(3) Treatment of closure.--Any closure of a Bureau funded 
        school under this subsection for a period that exceeds 1 month 
        but is less than 1 year, shall be treated by the Bureau as an 
        emergency facility improvement and repair project.
            ``(4) Use of funds.--With respect to a Bureau funded school 
        that is closed under this subsection, the tribal governing 
        body, or the designated local school board of each Bureau 
        funded school, involved may authorize the use of funds 
        allocated pursuant to section 1126, to abate the hazardous 
        conditions without further action by Congress.
    ``(f) Funding Requirement.--
            ``(1) Distribution of funds.--Beginning with the first 
        fiscal year following the date of enactment of the Native 
        American Education Improvement Act of 2001, all funds 
        appropriated to the budget accounts for the operations and 
        maintenance of Bureau funded schools shall be distributed by 
        formula to the schools. No funds from these accounts may be 
        retained or segregated by the Bureau to pay for administrative 
        or other costs of any facilities branch or office, at any level 
        of the Bureau.
            ``(2) Requirements for certain uses.--
                    ``(A) Agreement.--The Secretary shall not withhold 
                funds that would be distributed under paragraph (1) to 
                any grant or contract school, in order to use the funds 
                for maintenance or any other facilities or road-related 
                purposes, unless such school--
                            ``(i) has consented to the withholding of 
                        such funds, including the amount of the funds, 
                        the purpose for which the funds will be used, 
                        and the timeline for the services to be 
                        provided with the funds; and
                            ``(ii) has provided the consent by entering 
                        into an agreement that is--
                                    ``(I) a modification to the 
                                contract; and
                                    ``(II) in writing (in the case of a 
                                school that receives a grant).
                    ``(B) Cancellation.--The school may, at the end of 
                any fiscal year, cancel an agreement entered into under 
                this paragraph, on giving the Bureau 30 days notice of 
                the intent of the school to cancel the agreement.
    ``(g) No Reduction in Federal Funding.--Nothing in this section 
shall be construed to reduce any Federal funding for a school because 
the school received funding for facilities improvement or construction 
from a State or any other source.

``SEC. 1125. BUREAU OF INDIAN AFFAIRS EDUCATION FUNCTIONS.

    ``(a) Formulation and Establishment of Policy and Procedure; 
Supervision of Programs and Expenditures.--The Secretary shall vest in 
the Assistant Secretary for Indian Affairs all functions with respect 
to formulation and establishment of policy and procedure, and 
supervision of programs and expenditures of Federal funds for the 
purpose of Indian education administered by the Bureau. The Assistant 
Secretary shall carry out such functions through the Director of the 
Office of Indian Education Programs.
    ``(b) Direction and Supervision of Personnel Operations.--
            ``(1) In general.--Not later than 6 months after the date 
        of the enactment of the Native American Education Improvement 
        Act of 2001, the Director of the Office shall direct and 
        supervise the operations of all personnel directly and 
        substantially involved in the provision of education program 
        services by the Bureau, including school or institution 
        custodial or maintenance personnel, and personnel responsible 
        for contracting, a procurement, and finance functions connected 
        with school operation programs.
            ``(2) Transfers.--The Assistant Secretary for Indian 
        Affairs shall, not later than 6 months after the date of 
        enactment of the Native American Education Improvement Act of 
        2001, coordinate the transfer of functions relating to 
        procurements for, contracts of, operation of, and maintenance 
        of schools and other support functions to the Director.
    ``(c) Inherent Federal Function.--For purposes of this Act, all 
functions relating to education that are located at the Area or Agency 
level and performed by an education line officer shall be subject to 
contract under the Indian Self-Determination and Education Assistance 
Act, unless determined by the Secretary to be inherently Federal 
functions as defined in section 1139(9).
    ``(d) Evaluation of Programs; Services and Support Functions; 
Technical and Coordination Assistance.--Education personnel who are 
under the direction and supervision of the Director of the Office in 
accordance with subsection (b)(1) shall--
            ``(1) monitor and evaluate Bureau education programs;
            ``(2) provide all services and support functions for 
        education programs with respect to personnel matters involving 
        staffing actions and functions; and
            ``(3) provide technical and coordination assistance in 
        areas such as procurement, contracting, budgeting, personnel, 
        curricula, and operation and maintenance of school facilities.
    ``(e) Construction, Improvement, Operation, and Maintenance of 
Facilities.--
            ``(1) Plan for construction.--The Assistant Secretary for 
        Indian Affairs shall submit as part of the annual budget 
        request for educational services (as contained in the 
        President's annual budget request under section 1105 of title 
        31, United States Code) a plan--
                    ``(A) for the construction of school facilities in 
                accordance with section 1124(d);
                    ``(B) for the improvement and repair of education 
                facilities and for establishing priorities among the 
                improvement and repair projects involved, which 
                together shall form the basis for the distribution of 
                appropriated funds; and
                    ``(C) for capital improvements to education 
                facilities to be made over the 5 years succeeding the 
                year covered by the plan.
            ``(2) Program for operation and maintenance.--
                    ``(A) In general.--
                            ``(i) Program.--The Assistant Secretary 
                        shall establish a program, including a program 
                        for the distribution of funds appropriated 
                        under this part, for the operation and 
                        maintenance of education facilities. Such 
                        program shall include--
                                    ``(I) a method of computing the 
                                amount necessary for the operation and 
                                maintenance of each education facility;
                                    ``(II) a requirement of similar 
                                treatment of all Bureau funded schools;
                                    ``(III) a notice of an allocation 
                                of the appropriated funds from the 
                                Director of the Office directly to the 
                                appropriate education line officers and 
                                school officials;
                                    ``(IV) a method for determining the 
                                need for, and priority of, facilities 
                                improvement and repair projects, both 
                                major and minor; and
                                    ``(V) a system for conducting 
                                routine preventive maintenance.
                            ``(ii) Meetings.--In making the 
                        determination referred to in clause (i)(IV), 
                        the Assistant Secretary shall cause a series of 
                        meetings to be conducted at the area and agency 
                        level with representatives of the Bureau funded 
                        schools in the corresponding areas and served 
                        by corresponding agencies, to receive comment 
                        on the projects described in clause (i)(IV) and 
                        prioritization of such projects.
                    ``(B) Maintenance.--The appropriate education line 
                officers shall make arrangements for the maintenance of 
                the education facilities with the local supervisors of 
                the Bureau maintenance personnel. The local supervisors 
                of Bureau maintenance personnel shall take appropriate 
                action to implement the decisions made by the 
                appropriate education line officers. No funds made 
                available under this part may be authorized for 
                expenditure for maintenance of such an education 
                facility unless the appropriate education line officer 
                is assured that the necessary maintenance has been, or 
                will be, provided in a reasonable manner.
            ``(3) Implementation.--The requirements of this subsection 
        shall be implemented as soon as practicable after the date of 
        enactment of the Native American Education Improvement Act of 
        2001.
    ``(f) Acceptance of Gifts and Bequests.--
            ``(1) Guidelines.--Notwithstanding any other provision of 
        law, the Director of the Office shall promulgate guidelines for 
        the establishment and administration of mechanisms for the 
        acceptance of gifts and bequests for the use and benefit of 
        particular schools or designated Bureau operated education 
        programs, including, in appropriate cases, the establishment 
        and administration of trust funds.
            ``(2) Monitoring and reports.--Except as provided in 
        paragraph (3), in a case in which a Bureau operated education 
        program is the beneficiary of such a gift or bequest, the 
        Director shall--
                    ``(A) make provisions for monitoring use of the 
                gift or bequest; and
                    ``(B) submit a report to the appropriate committees 
                of Congress that describes the amount and terms of such 
                gift or bequest, the manner in which such gift or 
                bequest shall be used, and any results achieved by such 
                use.
            ``(3) Exception.--The requirements of paragraph (2) shall 
        not apply in the case of a gift or bequest that is valued at 
        $5,000 or less.
    ``(g) Functions Clarified.--In this section, the term `functions' 
includes powers and duties.

``SEC. 1126. ALLOTMENT FORMULA.

    ``(a) Factors Considered; Revision To Reflect Standards.--
            ``(1) Formula.--The Secretary shall establish, by 
        regulation adopted in accordance with section 1136, a formula 
        for determining the minimum annual amount of funds necessary to 
        operate each Bureau funded school. In establishing such 
        formula, the Secretary shall consider--
                    ``(A) the number of eligible Indian students served 
                by the school and the total student population of the 
                school;
                    ``(B) special cost factors, such as--
                            ``(i) the isolation of the school;
                            ``(ii) the need for special staffing, 
                        transportation, or educational programs;
                            ``(iii) food and housing costs;
                            ``(iv) maintenance and repair costs 
                        associated with the physical condition of the 
                        educational facilities;
                            ``(v) special transportation and other 
                        costs of an isolated or small school;
                            ``(vi) the costs of home-living (dormitory) 
                        arrangements, where determined necessary by a 
                        tribal governing body or designated school 
                        board;
                            ``(vii) costs associated with greater 
                        lengths of service by education personnel;
                            ``(viii) the costs of therapeutic programs 
                        for students requiring such programs; and
                            ``(ix) special costs for gifted and 
                        talented students;
                    ``(C) the costs of providing academic services that 
                are at least equivalent to the services provided by 
                public schools in the State in which the school is 
                located;
                    ``(D) whether the available funding will enable the 
                school involved to comply with the accreditation 
                standards applicable to the school under section 1121; 
                and
                    ``(E) such other relevant factors as the Secretary 
                determines are appropriate including the information 
                contained in the General Accounting Office study 
                evaluating and comparing school systems of the 
                Department of Defense and the Bureau of Indian Affairs.
            ``(2) Revision of formula.--On the establishment of the 
        standards required in section 1122, the Secretary shall--
                    ``(A) revise the formula established under 
                paragraph (1) to reflect the cost of compliance with 
                such standards; and
                    ``(B)(i) after the formula has been established 
                under paragraph (1), take such action as may be 
                necessary to increase the availability of counseling 
                and therapeutic programs for students in off-
                reservation home-living schools and other Bureau 
                operated residential facilities; and
                    ``(ii) concurrently with any actions taken under 
                clause (i), review the standards established under 
                section 1122 to ensure that such standards adequately 
                provide for parental notification regarding, and 
                consent for, such counseling and therapeutic programs.
    ``(b) Pro Rata Allotment.--Notwithstanding any other provision of 
law, Federal funds appropriated for the general local operation of 
Bureau funded schools shall be allotted on a pro rata basis in 
accordance with the formula established under subsection (a).
    ``(c) Annual Adjustment; Reservation of Amount for School Board 
Activities.--
            ``(1) Annual adjustment.--
                    ``(A) In general.--For fiscal year 2002, and for 
                each subsequent fiscal year, the Secretary shall adjust 
                the formula established under subsection (a) to--
                            ``(i) use a weighted factor of 1.2 for each 
                        eligible Indian student enrolled in the seventh 
                        and eighth grades of the school in considering 
                        the number of eligible Indian students served 
                        by the school;
                            ``(ii) consider a school with an enrollment 
                        of fewer than 50 eligible Indian students as 
                        having an average daily attendance of 50 
                        eligible Indian students for purposes of 
                        implementing the adjustment factor for small 
                        schools;
                            ``(iii) take into account the provision of 
                        residential services on less than a 9-month 
                        basis at a school in a case in which the school 
                        board and supervisor of the school determine 
                        that the school will provide the services for 
                        fewer than 9 months for the academic year 
                        involved;
                            ``(iv) use a weighted factor of 2.0 for 
                        each eligible Indian student that--
                                    ``(I) is gifted and talented; and
                                    ``(II) is enrolled in the school on 
                                a full-time basis,
                        in considering the number of eligible Indian 
                        students served by the school; and
                            ``(v) use a weighted factor of 0.25 for 
                        each eligible Indian student who is enrolled in 
                        a year long credit course in an Indian or 
                        Native language as part of the regular 
                        curriculum of a school, in considering the 
                        number of eligible Indian students served by 
                        such school.
                    ``(B) Timing.--The Secretary shall make the 
                adjustment required under subparagraph (A)(v) for such 
                school after--
                            ``(i) the school board of such school 
                        provides a certification of the Indian or 
                        Native language curriculum of the school to the 
                        Secretary, together with an estimate of the 
                        number of full-time students expected to be 
                        enrolled in the curriculum in the second 
                        academic year after the academic year for which 
                        the certification is made; and
                            ``(ii) the funds appropriated for 
                        allotments under this section are designated, 
                        in the appropriations Act appropriating such 
                        funds, as the funds necessary to implement such 
                        adjustment at such school without reducing an 
                        allotment made under this section to any school 
                        by virtue of such adjustment.
            ``(2) Reservation of amount.--
                    ``(A) In general.--From the funds allotted in 
                accordance with the formula established under 
                subsection (a) for each Bureau school, the local school 
                board of such school may reserve an amount which does 
                not exceed the greater of--
                            ``(i) $8,000; or
                            ``(ii) the lesser of--
                                    ``(I) $15,000; or
                                    ``(II) 1 percent of such allotted 
                                funds,
                for school board activities for such school, including 
                (notwithstanding any other provision of law) meeting 
                expenses and the cost of membership in, and support of, 
                organizations engaged in activities on behalf of Indian 
                education.
                    ``(B) Training.--Each local school board, and any 
                agency school board that serves as a local school board 
                for any grant or contract school, shall ensure that 
                each individual who is a new member of the school board 
                receives, within 12 months after the individual becomes 
                a member of the school board, 40 hours of training 
                relevant to that individual's service on the board. 
                Such training may include training concerning legal 
                issues pertaining to Bureau funded schools, legal 
                issues pertaining to school boards, ethics, and other 
                topics determined to be appropriate by the school 
                board. The training described in this subparagraph 
                shall not be required but is recommended for a tribal 
                governing body that serves in the capacity of a school 
                board.
    ``(d) Reservation of Amount for Emergencies.--
            ``(1) In general.--The Secretary shall reserve from the 
        funds available for allotment for each fiscal year under this 
        section an amount that, in the aggregate, equals 1 percent of 
        the funds available for allotment for that fiscal year.
            ``(2) Use of funds.--Amounts reserved under paragraph (1) 
        shall be used, at the discretion of the Director of the Office, 
        to meet emergencies and unforeseen contingencies affecting the 
        education programs funded under this section. Funds reserved 
        under this subsection may only be expended for education 
        services or programs, including emergency repairs of education 
        facilities, at a school site (as defined in section 5204(c)(2) 
        of the Tribally Controlled Schools Act of 1988).
            ``(3) Funds remaining available.--Funds reserved under this 
        subsection shall remain available without fiscal year 
        limitation until expended. The aggregate amount of such funds, 
        from all fiscal years, that is available for expenditure in a 
        fiscal year may not exceed an amount equal to 1 percent of the 
        funds available for allotment under this section for that 
        fiscal year.
            ``(4) Reports.--If the Secretary makes funds available 
        under this subsection, the Secretary shall submit a report 
        describing such action to the appropriate committees of 
        Congress as part of the President's next annual budget request 
        under section 1105 of title 31, United States Code.
    ``(e) Supplemental Appropriations.--Any funds provided in a 
supplemental appropriations Act to meet increased pay costs 
attributable to school level personnel of Bureau funded schools shall 
be allotted under this section.
    ``(f) Eligible Indian Student Defined.--In this section, the term 
`eligible Indian student' means a student who--
            ``(1) is a member of, or is at least \1/4\ degree Indian 
        blood descendant of a member of, a tribe that is eligible for 
        the special programs and services provided by the United States 
        through the Bureau to Indians because of their status as 
        Indians;
            ``(2) resides on or near a reservation or meets the 
        criteria for attendance at a Bureau off-reservation home-living 
        school; and
            ``(3) is enrolled in a Bureau funded school.
    ``(g) Tuition.--
            ``(1) In general.--A Bureau school or contract or grant 
        school may not charge an eligible Indian student tuition for 
        attendance at the school. A Bureau school may not charge a 
        student attending the school under the circumstances described 
        in paragraph (2)(B) tuition for attendance at the school.
            ``(2) Attendance of non-indian students at bureau 
        schools.--The Secretary may permit the attendance at a Bureau 
        school of a student who is not an eligible Indian student if--
                    ``(A)(i) the Secretary determines that the 
                student's attendance will not adversely affect the 
                school's program for eligible Indian students because 
                of cost, overcrowding, or violation of standards or 
                accreditation requirements; and
                    ``(ii) the local school board consents; and
                    ``(B)(i) the student is a dependent of a Bureau, 
                Indian Health Service, or tribal government employee 
                who lives on or near the school site; or
                    ``(ii) tuition is paid for the student in an amount 
                that is not more than the amount of tuition charged by 
                the nearest public school district for out-of-district 
                students, and is paid in addition to the school's 
                allotment under this section.
            ``(3) Attendance of non-indian students at contract and 
        grant schools.--The school board of a contract or grant school 
        may permit students who are not eligible Indian students to 
        attend the contract or grant school. Any tuition collected for 
        those students shall be in addition to the amount the school 
        received under this section.
    ``(h) Funds Available Without Fiscal Year Limitation.--
Notwithstanding any other provision of law, at the election of the 
local school board of a Bureau school made at any time during a fiscal 
year, a portion equal to not more than 15 percent of the funds allotted 
for the school under this section for the fiscal year shall remain 
available to the school for expenditure without fiscal year limitation. 
The Assistant Secretary for Indian Affairs shall take such steps as may 
be necessary to implement this subsection.
    ``(i) Students at Richfield Dormitory, Richfield, Utah.--Tuition 
for the instruction of each out-of-State Indian student in a home-
living situation at the Richfield dormitory in Richfield, Utah, who 
attends Sevier County high schools in Richfield, Utah, for an academic 
year, shall be paid from Indian school equalization program funds 
authorized in this section and section 1129, at a rate not to exceed 
the weighted amount provided for under subsection (b) for a student for 
that year. No additional administrative cost funds shall be provided 
under this part to pay for administrative costs relating to the 
instruction of the students.

``SEC. 1127. ADMINISTRATIVE COST GRANTS.

    ``(a) Definitions.--In this section:
            ``(1) Administrative cost.--
                    ``(A) In general.--The term `administrative cost' 
                means the cost of necessary administrative functions 
                which--
                    ``(i) the tribe or tribal organization incurs as a 
                result of operating a tribal elementary or secondary 
                educational program;
                    ``(ii) are not customarily paid by comparable 
                Bureau operated programs out of direct program funds; 
                and
                    ``(iii) are either--
                            ``(I) normally provided for comparable 
                        Bureau programs by Federal officials using 
                        resources other than Bureau direct program 
                        funds; or
                            ``(II) are otherwise required of tribal 
                        self-determination program operators by law or 
                        prudent management practice.
                    ``(B) Inclusions.--The term `administrative cost' 
                may include--
                    ``(i) contract or grant (or other agreement) 
                administration;
                    ``(ii) executive, policy, and corporate leadership 
                and decisionmaking;
                    ``(iii) program planning, development, and 
                management;
                    ``(iv) fiscal, personnel, property, and procurement 
                management;
                    ``(v) related office services and record keeping; 
                and
                    ``(vi) costs of necessary insurance, auditing, 
                legal, safety and security services.
            ``(2) Bureau elementary and secondary functions.--The term 
        `Bureau elementary and secondary functions' means--
                    ``(A) all functions funded at Bureau schools by the 
                Office;
                    ``(B) all programs--
                            ``(i) funds for which are appropriated to 
                        other agencies of the Federal Government; and
                            ``(ii) which are administered for the 
                        benefit of Indians through Bureau schools; and
                    ``(C) all operation, maintenance, and repair funds 
                for facilities and government quarters used in the 
                operation or support of elementary and secondary 
                education functions for the benefit of Indians, from 
                whatever source derived.
            ``(3) Direct cost base.--
                    ``(A) In general.--Except as otherwise provided in 
                subparagraph (B), the direct cost base of a tribe or 
                tribal organization for the fiscal year is the 
                aggregate direct cost program funding for all tribal 
                elementary or secondary educational programs operated 
                by the tribe or tribal organization during--
                    ``(i) the second fiscal year preceding such fiscal 
                year; or
                    ``(ii) if such programs have not been operated by 
                the tribe or tribal organization during the two 
                preceding fiscal years, the first fiscal year preceding 
                such fiscal year.
                    ``(B) Functions not previously operated.--In the 
                case of Bureau elementary or secondary education 
                functions which have not previously been operated by a 
                tribe or tribal organization under contract, grant, or 
                agreement with the Bureau, the direct cost base for the 
                initial year shall be the projected aggregate direct 
                cost program funding for all Bureau elementary and 
                secondary functions to be operated by the tribe or 
                tribal organization during that fiscal year.
            ``(4) Maximum base rate.--The term `maximum base rate' 
        means 50 percent.
            ``(5) Minimum base rate.--The term `minimum base rate' 
        means 11 percent.
            ``(6) Standard direct cost base.--The term `standard direct 
        cost base' means $600,000.
            ``(7) Tribal elementary or secondary educational 
        programs.--The term `tribal elementary or secondary educational 
        programs' means all Bureau elementary and secondary functions, 
        together with any other Bureau programs or portions of programs 
        (excluding funds for social services that are appropriated to 
        agencies other than the Bureau and are expended through the 
        Bureau, funds for major subcontracts, construction, and other 
        major capital expenditures, and unexpended funds carried over 
        from prior years) which share common administrative cost 
        functions, that are operated directly by a tribe or tribal 
        organization under a contract, grant, or agreement with the 
        Bureau.
    ``(b) Grants; Effect Upon Appropriated Amounts.--
            ``(1) Grants.--
                    ``(A) In general.--The Secretary shall provide a 
                grant to each tribe or tribal organization operating a 
                contract or grant school, in an amount determined under 
                this section, for the purpose of paying the 
                administrative and indirect costs incurred in operating 
                the contract or grant school, in order to--
                            ``(i) enable the tribe or tribal 
                        organization operating the school, without 
                        reducing direct program services to the 
                        beneficiaries of the program, to provide all 
                        related administrative overhead services and 
                        operations necessary to meet the requirements 
                        of law and prudent management practice; and
                            ``(ii) carry out other necessary support 
                        functions that would otherwise be provided by 
                        the Secretary or other Federal officers or 
                        employees, from resources other than direct 
                        program funds, in support of comparable Bureau 
                        operated programs.
                    ``(B) Amount.--No school operated as a stand-alone 
                institution shall receive less than $200,000 per year 
                under this paragraph.
            ``(2) Effect upon appropriated amounts.--Amounts 
        appropriated to fund the grants provided for under this section 
        shall be in addition to, and shall not reduce, the amounts 
        appropriated for the program being administered by the contract 
        or grant school.
    ``(c) Determination of Grant Amount.--
            ``(1) In general.--The amount of the grant provided to each 
        tribe or tribal organization under this section for each fiscal 
        year shall be determined by applying the administrative cost 
        percentage rate determined under subsection (d) of the tribe or 
        tribal organization to the aggregate cost of the Bureau 
        elementary and secondary functions operated by the tribe or 
        tribal organization for which funds are received from or 
        through the Bureau. The administrative cost percentage rate 
        does not apply to programs not relating to such functions that 
        are operated by the tribe or tribal organization.
            ``(2) Direct cost base funds.--The Secretary shall--
                    ``(A) reduce the amount of the grant determined 
                under paragraph (1) to the extent that payments for 
                administrative costs are actually received by a tribe 
                or tribal organization under any Federal education 
                program that is included in the direct cost base of the 
                tribe or tribal organization; and
                    ``(B) take such actions as may be necessary to be 
                reimbursed by any other department or agency of the 
                Federal Government (other than the Department of the 
                Interior) for the portion of grants made under this 
                section for the costs of administering any program for 
                Indians that is funded by appropriations made to such 
                other department or agency.
            ``(3) Reductions.--If the total amount of funds necessary 
        to provide grants to tribes and tribal organizations in the 
        amounts determined under paragraph (1) and (2) for a fiscal 
        year exceeds the amount of funds appropriated to carry out this 
        section for such fiscal year, the Secretary shall reduce the 
        amount of each grant determined under this subsection for such 
        fiscal year by an amount that bears the same relationship to 
        such excess as the amount of such grants determined under this 
        subsection bears to the total of all grants determined under 
        this subsection for all tribes and tribal organizations for 
        such fiscal year.
    ``(d) Administrative Cost Percentage Rate.--
            ``(1) In general.--For purposes of this section, the 
        administrative cost percentage rate for a contract or grant 
        school for a fiscal year is equal to the percentage determined 
        by dividing--
                    ``(A) the sum of--
                            ``(i) the amount equal to--
                                    ``(I) the direct cost base of the 
                                tribe or tribal organization for the 
                                fiscal year; multiplied by
                                    ``(II) the minimum base rate; plus
                            ``(ii) the amount equal to--
                                    ``(I) the standard direct cost 
                                base; multiplied by
                                    ``(II) the maximum base rate; by
                    ``(B) the sum of--
                            ``(i) the direct cost base of the tribe or 
                        tribal organization for the fiscal year; and
                            ``(ii) the standard direct cost base.
            ``(2) Rounding.--The administrative cost percentage rate 
        shall be determined to \1/100\ of a percent.
    ``(e) Combining Funds.--
            ``(1) In general.--Funds received by a tribe, tribal 
        organization, or contract or grant school through grants made 
        under this section for tribal elementary or secondary 
        educational programs may be combined by the tribe, tribal 
        organization, or contract or grant school and placed into a 
        single administrative cost account without the necessity of 
        maintaining separate funding source accounting.
            ``(2) Indirect cost funds.--Indirect cost funds for 
        programs at the school that share common administrative 
        services with the tribal elementary or secondary educational 
        programs may be included in the administrative cost account 
        described in paragraph (1).
    ``(f) Availability of Funds.--Funds received through a grant made 
under this section with respect to tribal elementary or secondary 
educational programs at a contract or grant school shall remain 
available to the contract or grant school--
            ``(1) without fiscal year limitation; and
            ``(2) without reducing the amount of any grants otherwise 
        payable to the school under this section for any fiscal year 
        after the fiscal year for which the grant is provided.
    ``(g) Treatment of Funds.--Funds received through a grant made 
under this section for Bureau funded programs operated by a tribe or 
tribal organization under a contract or grant shall not be taken into 
consideration for purposes of indirect cost underrecovery and 
overrecovery determinations by any Federal agency for any other funds, 
from whatever source derived.
    ``(h) Treatment of Entity Operating Other Programs.--In applying 
this section and section 106 of the Indian Self-Determination and 
Education Assistance Act with respect to an Indian tribe or tribal 
organization that--
            ``(1) receives funds under this section for administrative 
        costs incurred in operating a contract or grant school or a 
        school operated under the Tribally Controlled Schools Act of 
        1988; and
            ``(2) operates one or more other programs under a contract 
        or grant provided under the Indian Self-Determination and 
        Education Assistance Act,
the Secretary shall ensure that the Indian tribe or tribal organization 
is provided with the full amount of the administrative costs that are 
associated with operating the contract or grant school, and of the 
indirect costs, that are associated with all of such other programs, 
except that funds appropriated for implementation of this section shall 
be used only to supply the amount of the grant required to be provided 
by this section.
    ``(i) Applicability to Schools Operating Under Tribally Controlled 
Schools Act of 1988.--The provisions of this section that apply to 
contract or grant schools shall also apply to those schools receiving 
assistance under the Tribally Controlled Schools Act of 1988.
    ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section.
    ``(k) Administrative Cost Grant Budget Requests.--
            ``(1) In general.--Beginning with President's annual budget 
        request under section 1105 of title 31, United States Code for 
        fiscal year 2002, and with respect to each succeeding budget 
        request, the Secretary shall submit to the appropriate 
        committees of Congress information and funding requests for the 
        full funding of administrative costs grants required to be paid 
        under this section.
            ``(2) Requirements.--
                    ``(A) Funding for new conversions to contract or 
                grant school operations.--With respect to a budget 
                request under paragraph (1), the amount required to 
                provide full funding for an administrative cost grant 
                for each tribe or tribal organization expected to begin 
                operation of a Bureau-funded school as contract or 
                grant school in the academic year funded by such annual 
                budget request, the amount so required shall not be 
                less than 10 percent of the amount required for 
                subparagraph (B).
                    ``(B) Funding for continuing contract and grant 
                school operations.--With respect to a budget request 
                under paragraph (1), the amount required to provide 
                full funding for an administrative cost grant for each 
                tribe or tribal organization operating a contract or 
                grant school at the time the annual budget request is 
                submitted, which amount shall include the amount of 
                funds required to provide full funding for an 
                administrative cost grant for each tribe or tribal 
                organization which began operation of a contract or 
                grant school with administrative cost grant funds 
                supplied from the amount described in subparagraph (A).

``SEC. 1128. DIVISION OF BUDGET ANALYSIS.

    ``(a) Establishment.--Not later than 12 months after the date of 
enactment of the Native American Education Improvement Act of 2001, the 
Secretary shall establish within the Office of Indian Education 
Programs a Division of Budget Analysis (referred to in this section as 
the `Division'). Such Division shall be under the direct supervision 
and control of the Director of the Office.
    ``(b) Functions.--In consultation with the tribal governing bodies 
and local school boards the Director of the Office, through the head of 
the Division, shall conduct studies, surveys, or other activities to 
gather demographic information on Bureau funded schools and project the 
amounts necessary to provide to Indian students in such schools the 
educational program set forth in this part.
    ``(c) Annual Reports.--Not later than the date that the Assistant 
Secretary for Indian Affairs submits the annual budget request as part 
of the President's annual budget request under section 1105 of title 
31, United States Code for each fiscal year after the date of enactment 
of the Native American Education Improvement Act of 2001, the Director 
of the Office shall submit to the appropriate committees of Congress 
(including the Committee on Appropriations of the House of 
Representatives and the Committee on Appropriations of the Senate), all 
Bureau funded schools, and the tribal governing bodies relating to such 
schools, a report that shall contain--
            ``(1) projections, based on the information gathered 
        pursuant to subsection (b) and any other relevant information, 
        of amounts necessary to provide to Indian students in Bureau 
        funded schools the educational program set forth in this part;
            ``(2) a description of the methods and formulas used to 
        calculate the amounts projected pursuant to paragraph (1); and
            ``(3) such other information as the Director of the Office 
        considers to be appropriate.
    ``(d) Use of Reports.--The Director of the Office and the Assistant 
Secretary for Indian Affairs shall use the information contained in the 
annual report required by subsection (c) in preparing their annual 
budget requests.

``SEC. 1129. UNIFORM DIRECT FUNDING AND SUPPORT.

    ``(a) Establishment of System and Forward Funding.--
            ``(1) In general.--The Secretary shall establish, by 
        regulation adopted in accordance with section 1136, a system 
        for the direct funding and support of all Bureau funded 
        schools. Such system shall allot funds in accordance with 
        section 1126. All amounts appropriated for distribution in 
        accordance with this section shall be made available in 
        accordance with paragraph (2).
            ``(2) Timing for use of funds.--
                    ``(A) Availability.--For the purposes of affording 
                adequate notice of funding available pursuant to the 
                allotments made under section 1126 and the allotments 
                of funds for operation and maintenance of facilities, 
                amounts appropriated in an appropriations Act for any 
                fiscal year for such allotments shall become available 
                for obligation by the affected schools on July 1 of the 
                fiscal year for which such allotments are appropriated 
                without further action by the Secretary, and shall 
                remain available for obligation through the succeeding 
                fiscal year.
                    ``(B) Publications.--The Secretary shall, on the 
                basis of the amounts appropriated as described in this 
                paragraph--
                            ``(i) publish, not later than July 1 of the 
                        fiscal year for which the amounts are 
                        appropriated, information indicating the amount 
                        of the allotments to be made to each affected 
                        school under section 1126, of 80 percent of 
                        such appropriated amounts; and
                            ``(ii) publish, not later than September 30 
                        of such fiscal year, information indicating the 
                        amount of the allotments to be made under 
                        section 1126, from the remaining 20 percent of 
                        such appropriated amounts, adjusted to reflect 
                        the actual student attendance.
                Any overpayments made to tribal schools shall be 
                returned to the Secretary not later than 30 days after 
                the final determination that the school was overpaid 
                pursuant to this section.
            ``(3) Limitation.--
                    ``(A) Expenditures.--Notwithstanding any other 
                provision of law (including a regulation), the 
                supervisor of a Bureau school may expend an aggregate 
                of not more than $50,000 of the amount allotted to the 
                school under section 1126 to acquire materials, 
                supplies, equipment, operation services, maintenance 
                services, and other services for the school, and 
                amounts received as operations and maintenance funds, 
                funds received from the Department of Education, or 
                funds received from other Federal sources, without 
                competitive bidding if--
                            ``(i) the cost for any single item acquired 
                        does not exceed $15,000;
                            ``(ii) the school board approves the 
                        acquisition;
                            ``(iii) the supervisor certifies that the 
                        cost is fair and reasonable;
                            ``(iv) the documents relating to the 
                        acquisition executed by the supervisor of the 
                        school or other school staff cite this 
                        paragraph as authority for the acquisition; and
                            ``(v) the acquisition transaction is 
                        documented in a journal maintained at the 
                        school that clearly identifies when the 
                        transaction occurred, the item that was 
                        acquired and from whom, the price paid, the 
                        quantities acquired, and any other information 
                        the supervisor or the school board considers to 
                        be relevant.
                    ``(B) Notice.--Not later than 6 months after the 
                date of enactment of the Native American Education 
                Improvement Act of 2001, the Secretary shall send 
                notice of the provisions of this paragraph to each 
                supervisor of a Bureau school and associated school 
                board chairperson, the education line officer of each 
                agency and area, and the Bureau division in charge of 
                procurement, at both the local and national levels.
                    ``(C) Application and guidelines.--The Director of 
                the Office shall be responsible for--
                            ``(i) determining the application of this 
                        paragraph, including the authorization of 
                        specific individuals to carry out this 
                        paragraph;
                            ``(ii) ensuring that there is at least 1 
                        such individual at each Bureau facility; and
                            ``(iii) the provision of guidelines on the 
                        use of this paragraph and adequate training on 
                        such guidelines.
    ``(b) Local Financial Plans for Expenditure of Funds.--
            ``(1) Plan required.--
                    ``(A) In general.--Each Bureau school that receives 
                an allotment under section 1126 shall prepare a local 
                financial plan that specifies the manner in which the 
                school will expend the funds made available under the 
                allotment and ensures that the school will meet the 
                accreditation requirements or standards for the school 
                pursuant to section 1121.
                    ``(B) Requirement.--A local financial plan under 
                subparagraph (A) shall comply with all applicable 
                Federal and tribal laws.
                    ``(C) Preparation and revision.--The financial plan 
                for a school under subparagraph (A) shall be prepared 
                by the supervisor of the school in active consultation 
                with the local school board for the school. The local 
                school board for each school shall have the authority 
                to ratify, reject, or amend such financial plan and, at 
                the initiative of the local school board or in response 
                to the supervisor of the school, to revise such 
                financial plan to meet needs not foreseen at the time 
                of preparation of the financial plan.
                    ``(D) Role of supervisor.--The supervisor of the 
                school--
                            ``(i) shall put into effect the decisions 
                        of the school board relating to the financial 
                        plan under subparagraph (A); and
                            ``(ii) shall provide the appropriate local 
                        union representative of the education employees 
                        of the school with copies of proposed financial 
                        plans relating to the school and all 
                        modifications and proposed modifications to the 
                        plans, and at the same time submit such copies 
                        to the local school board.
                            ``(iii) may appeal any such action of the 
                        local school board to the appropriate education 
                        line officer of the Bureau agency by filing a 
                        written statement describing the action and the 
                        reasons the supervisor believes such action 
                        should be overturned.
                A copy of the statement under clause (iii) shall be 
                submitted to the local school board and such board 
                shall be afforded an opportunity to respond, in 
                writing, to such appeal. After reviewing such written 
                appeal and response, the appropriate education line 
                officer may, for good cause, overturn the action of the 
                local school board. The appropriate education line 
                officer shall transmit the determination of such appeal 
                in the form of a written opinion to such board and to 
                such supervisor identifying the reasons for overturning 
                such action.
            ``(2) Requirement.--A Bureau school shall expend amounts 
        received under an allotment under section 1126 in accordance 
        with the local financial plan prepared under paragraph (1).
    ``(c) Tribal Division of Education, Self-Determination Grant and 
Contract Funds.--The Secretary may approve applications for funding 
tribal divisions of education and developing tribal codes of education, 
from funds made available pursuant to section 103(a) of the Indian 
Self-Determination and Education Assistance Act.
    ``(d) Technical Assistance and Training.--A local school board may, 
in the exercise of the authority of the school board under this 
section, request technical assistance and training from the Secretary. 
The Secretary shall, to the greatest extent possible, provide such 
assistance and training, and make appropriate provision in the budget 
of the Office for such assistance and training.
    ``(e) Summer Program of Academic and Support Services.--
            ``(1) In general.--A financial plan prepared under 
        subsection (b) for a school may include, at the discretion of 
        the supervisor and the local school board of such school, a 
        provision for funding a summer program of academic and support 
        services for students of the school. Any such program may 
        include activities related to the prevention of alcohol and 
        substance abuse. The Assistant Secretary for Indian Affairs 
        shall provide for the utilization of facilities of the school 
        for such program during any summer in which such utilization is 
        requested.
            ``(2) Use of other funds.--Notwithstanding any other 
        provision of law, funds authorized under the Act of April 16, 
        1934 (commonly known as the `Johnson-O'Malley Act'; 48 Stat. 
        596, chapter 147) and this Act may be used to augment the 
        services provided in each summer program referred to in 
        paragraph (1) at the option of the tribe or school receiving 
        such funds. The augmented services shall be under the control 
        of the tribe or school.
            ``(3) Technical assistance and program coordination.--The 
        Assistant Secretary for Indian Affairs, acting through the 
        Director of the Office, shall provide technical assistance and 
        coordination of activities for any program described in 
        paragraph (1) and shall, to the extent possible, encourage the 
        coordination of such programs with any other summer programs 
        that might benefit Indian youth, regardless of the funding 
        source or administrative entity of such programs.
    ``(f) Cooperative Agreements.--
            ``(1) In general.--From funds allotted to a Bureau school 
        under section 1126, the Secretary shall, if specifically 
        requested by the appropriate tribal governing body, implement a 
        cooperative agreement that is entered into between the tribe, 
        the Bureau, the local school board, and a local public school 
        district that meets the requirements of paragraph (2) and 
        involves the school. The tribe, the Bureau, the school board, 
        and the local public school district shall determine the terms 
        of the agreement.
            ``(2) Coordination provisions.--An agreement under 
        paragraph (1) may, with respect to the Bureau school and 
        schools in the school district involved, encompass coordination 
        of all or any part of the following:
                    ``(A) The academic program and curriculum, unless 
                the Bureau school is accredited by a State or regional 
                accrediting entity and would not continue to be so 
                accredited if the agreement encompassed the program and 
                curriculum.
                    ``(B) Support services, including procurement and 
                facilities maintenance.
                    ``(C) Transportation.
            ``(3) Equal benefit and burden.--
                    ``(A) In general.--Each agreement entered into 
                pursuant to the authority provided in paragraph (1) 
                shall confer a benefit upon the Bureau school 
                commensurate with the burden assumed by the school.
                    ``(B) Limitation.--Subparagraph (A) shall not be 
                construed to require equal expenditures, or an exchange 
                of similar services, by the Bureau school and schools 
                in the school district.
    ``(g) Product or Result of Student Projects.--Notwithstanding any 
other provision of law, where there is agreement on action between the 
superintendent and the school board of a Bureau funded school, the 
product or result of a project conducted in whole or in major part by a 
student may be given to that student upon the completion of such 
project.
    ``(h) Matching Fund Requirements.--
            ``(1) Not considered federal funds.--Notwithstanding any 
        other provision of law, funds received by a Bureau funded 
        school under this title for education-related activities (not 
        including funds for construction, maintenance, and facilities 
        improvement or repair) shall not be considered Federal funds 
        for the purposes of a matching funds requirement for any 
        Federal program.
            ``(2) Nonapplication of requirements.--
                    ``(A) In general.--Notwithstanding any other 
                provision of law, no requirement relating to the 
                provision of matching funds or the provision of 
                services or in-kind activity as a condition of 
                participation in a program or project or receipt of a 
                grant, shall apply to a Bureau funded school unless the 
                provision of law authorizing such requirement specifies 
                that such requirement applies to such a school.
                    ``(B) Limitation.--In considering an application 
                from a Bureau funded school for participation in a 
                program or project that has a requirement described in 
                subparagraph (A), the entity administering such program 
                or project or awarding such grant shall not give 
                positive or negative weight to such application based 
                solely on the provisions of this paragraph. Such an 
                application shall be considered as if it fully met any 
                matching requirement.

``SEC. 1130. POLICY FOR INDIAN CONTROL OF INDIAN EDUCATION.

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

``SEC. 1131. INDIAN EDUCATION PERSONNEL.

    ``(a) Definitions.--In this section:
            ``(1) Education position.--The term `education position' 
        means a position in the Bureau the duties and responsibilities 
        of which--
                    ``(A) are performed on a school-year basis 
                principally in a Bureau school and involve--
                            ``(i) classroom or other instruction or the 
                        supervision or direction of classroom or other 
                        instruction;
                            ``(ii) any activity (other than teaching) 
                        that requires academic credits in educational 
                        theory and practice equal to the academic 
                        credits in educational theory and practice 
                        required for a bachelor's degree in education 
                        from an accredited institution of higher 
                        education;
                            ``(iii) any activity in or related to the 
                        field of education, whether or not academic 
                        credits in educational theory and practice are 
                        a formal requirement for the conduct of such 
                        activity; or
                            ``(iv) provision of support services at, or 
                        associated with, the site of the school; or
                    ``(B) are performed at the agency level of the 
                Bureau and involve the implementation of education-
                related programs, other than the position of agency 
                superintendent for education.
            ``(2) Educator.--The term `educator' means an individual 
        whose services are required, or who is employed, in an 
        education position.
    ``(b) Civil Service Authorities Inapplicable.--Chapter 51, 
subchapter III of chapter 53, and chapter 63 of title 5, United States 
Code, relating to classification, pay, and leave, respectively, and the 
sections of such title relating to the appointment, promotion, hours of 
work, and removal of civil service employees, shall not apply to 
educators or to education positions.
    ``(c) Regulations.--Not later than 60 days after the date of 
enactment of the Native American Education Improvement Act of 2001, the 
Secretary shall prescribe regulations to carry out this section. Such 
regulations shall include provisions relating to--
            ``(1) the establishment of education positions;
            ``(2) the establishment of qualifications for educators and 
        education personnel;
            ``(3) the fixing of basic compensation for educators and 
        education positions;
            ``(4) the appointment of educators;
            ``(5) the discharge of educators;
            ``(6) the entitlement of educators to compensation;
            ``(7) the payment of compensation to educators;
            ``(8) the conditions of employment of educators;
            ``(9) the leave system for educators;
            ``(10) the length of the school year applicable to 
        education positions described in subsection (a)(1)(A); and
            ``(11) such matters as may be appropriate.
    ``(d) Qualifications of Educators.--
            ``(1) Requirements.--In prescribing regulations to govern 
        the qualifications of educators, the Secretary shall require--
                    ``(A) that lists of qualified and interviewed 
                applicants for education positions be maintained in the 
                appropriate agency or area office of the Bureau or, in 
                the case of individuals applying at the national level, 
                the Office;
                    ``(B)(i) that a local school board have the 
                authority to waive, on a case-by-case basis, any formal 
                education or degree qualification established by 
                regulation, in order for a tribal member to be hired in 
                an education position to teach courses on tribal 
                culture and language; and
                    ``(ii) that a determination by a local school board 
                that such a tribal member be hired shall be instituted 
                by the supervisor of the school involved; and
                    ``(C) that it shall not be a prerequisite to the 
                employment of an individual in an education position at 
                the local level--
                            ``(i) that such individual's name appear on 
                        a list maintained pursuant to subparagraph (A); 
                        or
                            ``(ii) that such individual have applied at 
                        the national level for an education position.
            ``(2) Exception for certain temporary employment.--The 
        Secretary may authorize the temporary employment in an 
        education position of an individual who has not met the 
        certification standards established pursuant to regulations, if 
        the Secretary determines that failure to authorize the 
        employment would result in that position remaining vacant.
    ``(e) Hiring of Educators.--
            ``(1) Requirements.--In prescribing regulations to govern 
        the appointment of educators, the Secretary shall require--
                    ``(A)(i)(I) that educators employed in a Bureau 
                school (other than the supervisor of the school) shall 
                be hired by the supervisor of the school; and
                    ``(II) that, in a case in which there are no 
                qualified applicants available to fill a vacancy at a 
                Bureau school, the supervisor may consult a list 
                maintained pursuant to subsection (d)(1)(A);
                    ``(ii) each supervisor of a Bureau school shall be 
                hired by the education line officer of the agency 
                office of the Bureau for the jurisdiction in which the 
                school is located;
                    ``(iii) each educator employed in an agency office 
                of the Bureau shall be hired by the superintendent for 
                education of the agency office; and
                    ``(iv) each education line officer and educator 
                employed in the office of the Director of the Office 
                shall be hired by the Director;
                    ``(B)(i) that, before an individual is employed in 
                an education position in a Bureau school by the 
                supervisor of the school (or, with respect to the 
                position of supervisor, by the appropriate agency 
                education line officer), the local school board for the 
                school shall be consulted; and
                    ``(ii) that a determination by such school board, 
                as evidenced by school board records, that such 
                individual should or should not be so employed shall be 
                instituted by the supervisor (or with respect to the 
                position of supervisor, by the superintendent for 
                education of the agency office);
                    ``(C)(i) that, before an individual is employed in 
                an education position in an agency or area office of 
                the Bureau, the appropriate agency school board shall 
                be consulted; and
                    ``(ii) that a determination by such school board, 
                as evidenced by school board records, that such 
                individual should or should not be employed shall be 
                instituted by the superintendent for education of the 
                agency office; and
                    ``(D) that all employment decisions or actions be 
                in compliance with all applicable Federal, State and 
                tribal laws.
            ``(2) Information regarding application at national 
        level.--
                    ``(A) In general.--Any individual who applies at 
                the local level for an education position shall state 
                on such individual's application whether or not such 
                individual has applied at the national level for an 
                education position.
                    ``(B) Effect of inaccurate statement.--If an 
                individual described in subparagraph (A) is employed at 
                the local level, such individual's name shall be 
                immediately forwarded to the Secretary by the local 
                employer. The Secretary shall, as soon as practicable 
                but in no event later than 30 days after the receipt of 
                the name, ascertain the accuracy of the statement made 
                by such individual pursuant to subparagraph (A). 
                Notwithstanding subsection (g), if the Secretary finds 
                that the individual's statement was false, such 
                individual, at the Secretary's discretion, may be 
                disciplined or discharged.
                    ``(C) Effect of application at national level.--If 
                an individual described in subparagraph (A) has applied 
                at the national level for an education position, the 
                appointment of such individual at the local level shall 
                be conditional for a period of 90 days. During that 
                period, the Secretary may appoint a more qualified 
                individual (as determined by the Secretary) from a list 
                maintained pursuant to subsection (e)(1)(A) to the 
                position to which such individual was appointed.
            ``(3) Statutory construction.--Except as expressly 
        provided, nothing in this section shall be construed as 
        conferring upon local school boards authority over, or control 
        of, educators at Bureau funded schools or the authority to 
        issue management decisions.
            ``(4) Appeals.--
                    ``(A) By supervisor.--The supervisor of a school 
                may appeal to the appropriate agency education line 
                officer any determination by the local school board for 
                the school that an individual be employed, or not be 
                employed, in an education position in the school (other 
                than that of supervisor) by filing a written statement 
                describing the determination and the reasons the 
                supervisor believes such determination should be 
                overturned. A copy of such statement shall be submitted 
                to the local school board and such board shall be 
                afforded an opportunity to respond, in writing, to such 
                appeal. After reviewing such written appeal and 
                response, the education line officer may, for good 
                cause, overturn the determination of the local school 
                board. The education line officer shall transmit the 
                determination of such appeal in the form of a written 
                opinion to such board and to such supervisor 
                identifying the reasons for overturning such 
                determination.
                    ``(B) By education line officer.--The education 
                line officer of an agency office of the Bureau may 
                appeal to the Director of the Office any determination 
                by the local school board for the school that an 
                individual be employed, or not be employed, as the 
                supervisor of a school by filing a written statement 
                describing the determination and the reasons the 
                supervisor believes such determination should be 
                overturned. A copy of such statement shall be submitted 
                to the local school board and such board shall be 
                afforded. an opportunity to respond, in writing, to 
                such appeal. After reviewing such written appeal and 
                response, the Director may, for good cause, overturn 
                the determination of the local school board. The 
                Director shall transmit the determination of such 
                appeal in the form of a written opinion to such board 
                and to such education line officer identifying the 
                reasons for overturning such determination.
            ``(5) Other appeals.--The education line officer of an 
        agency office of the Bureau may appeal to the Director of the 
        Office any determination by the agency school board that an 
        individual be employed, or not be employed, in an education 
        position in such agency office by filing a written statement 
        describing the determination and the reasons the supervisor 
        believes such determination should be overturned. A copy of 
        such statement shall be submitted to the agency school board 
        and such board shall be afforded an opportunity to respond, in 
        writing, to such appeal. After reviewing such written appeal 
        and response, the Director may, for good cause, overturn the 
        determination of the agency school board. The Director shall 
        transmit the determination of such appeal in the form of a 
        written opinion to such board and to such education line 
        officer identifying the reasons for overturning such 
        determination.
    ``(f) Discharge and Conditions of Employment of Educators.--
            ``(1) Regulations.--In prescribing regulations to govern 
        the discharge and conditions of employment of educators, the 
        Secretary shall require--
                    ``(A) that procedures shall be established for the 
                rapid and equitable resolution of grievances of 
                educators;
                    ``(B) that no educator may be discharged without 
                notice of the reasons for the discharge and an 
                opportunity for a hearing under procedures that comport 
                with the requirements of due process; and
                    ``(C) that each educator employed in a Bureau 
                school shall be notified 30 days prior to the end of an 
                academic year whether the employment contract of the 
                individual will be renewed for the following year.
            ``(2) Procedures for discharge.--
                    ``(A) Determinations.--The supervisor of a Bureau 
                school may discharge (subject to procedures established 
                under paragraph (1)(B)) for cause (as determined under 
                regulations prescribed by the Secretary) any educator 
                employed in such school. On giving notice to an 
                educator of the supervisor's intention to discharge the 
                educator, the supervisor shall immediately notify the 
                local school board of the proposed discharge. A 
                determination by the local school board that such 
                educator shall not be discharged shall be followed by 
                the supervisor.
                    ``(B) Appeals.--The supervisor shall have the right 
                to appeal a determination by a local school board under 
                subparagraph (A), as evidenced by school board records, 
                not to discharge an educator to the education line 
                officer of the appropriate agency office of the Bureau. 
                Upon hearing such an appeal, the agency education line 
                officer may, for good cause, issue a decision 
                overturning the determination of the local school board 
                with respect to the employment of such individual. The 
                education line officer shall make the decision in 
                writing and submit the decision to the local school 
                board.
            ``(3) Recommendations of school boards for discharge.--Each 
        local school board for a Bureau school shall have the right--
                    ``(A) to recommend to the supervisor that an 
                educator employed in the school be discharged; and
                    ``(B) to recommend to the education line officer of 
                the appropriate agency office of the Bureau and to the 
                Director of the Office, that the supervisor of the 
                school be discharged.
    ``(g) Applicability of Indian Preference Laws.--
            ``(1) In general.--Notwithstanding any provision of the 
        Indian preference laws, such laws shall not apply in the case 
        of any personnel action carried out under this section with 
        respect to an applicant or employee not entitled to an Indian 
        preference if each tribal organization concerned grants a 
        written waiver of the application of such laws with respect to 
        such personnel action and states that such waiver is necessary. 
        This paragraph shall not be construed to relieve the Bureau's 
        responsibility to issue timely and adequate announcements and 
        advertisements concerning any such personnel action if such 
        action is intended to fill a vacancy (no matter how such 
        vacancy is created).
            ``(2) Definitions.--In this subsection:
                    ``(A) Indian preference laws.--The term `Indian 
                preference laws' means section 12 of the Act of June 
                18, 1934 (48 Stat. 986, chapter 576) or any other 
                provision of law granting a preference to Indians in 
                promotions and other personnel actions. Such term shall 
                not include section 7(b) of the Indian Self-
                Determination and Education Assistance Act.
                    ``(B) Tribal organization.--The term `tribal 
                organization' means--
                            ``(i) the recognized governing body of any 
                        Indian tribe, band, nation, pueblo, or other 
                        organized community, including a Native village 
                        (as defined in section 3(c) of the Alaska 
                        Native Claims Settlement Act); or
                            ``(ii) in connection with any personnel 
                        action referred to in this subsection, any 
                        local school board to which the governing body 
                        has delegated the authority to grant a waiver 
                        under this subsection with respect to a 
                        personnel action.
    ``(h) Compensation or Annual Salary.--
            ``(1) In general.--
                    ``(A) Compensation for educators and education 
                positions.--Except as otherwise provided in this 
                section, the Secretary shall establish the compensation 
                or annual salary rate for educators and education 
                positions--
                            ``(i) at rates in effect under the General 
                        Schedule for individuals with comparable 
                        qualifications, and holding comparable 
                        positions, to whom chapter 51 of title 5, 
                        United States Code, is applicable; or
                            ``(ii) on the basis of the Federal Wage 
                        System schedule in effect for the locality 
                        involved, and for the comparable positions, at 
                        the rates of compensation in effect for the 
                        senior executive service.
                    ``(B) Compensation or salary for teachers and 
                counselors.--The Secretary shall establish the rate of 
                compensation, or annual salary rate, for the positions 
                of teachers and counselors (including dormitory 
                counselors and home-living counselors) at the rate of 
                compensation applicable (on the date of enactment of 
                the Native American Education Improvement Act of 2001 
                and thereafter) for comparable positions in the 
                overseas schools under the Defense Department Overseas 
                Teachers Pay and Personnel Practices Act. The Secretary 
                shall allow the local school boards involved authority 
                to implement only the aspects of the Defense Department 
                Overseas Teachers Pay and Personnel Practices Act pay 
                provisions that are considered essential for 
                recruitment and retention of teachers and counselors. 
                Implementation of such provisions shall not be 
                construed to require the implementation of that entire 
                Act.
                    ``(C) Rates for new hires.--
                            ``(i) In general.--Beginning with the first 
                        fiscal year following the date of enactment of 
                        the Native American Education Improvement Act 
                        of 2001, each local school board of a Bureau 
                        school may establish a rate of compensation or 
                        annual salary rate described in clause (ii) for 
                        teachers and counselors (including academic 
                        counselors) who are new hires at the school and 
                        who had not worked at the school, as of the 
                        first day of such fiscal year.
                            ``(ii) Consistent rates.--The rates 
                        established under clause (i) shall be 
                        consistent with the rates paid for individuals 
                        in the same positions, with the same tenure and 
                        training, as the teachers and counselors, in 
                        any other school within whose boundaries the 
                        Bureau school is located.
                            ``(iii) Decreases.--In an instance in which 
                        the establishment of rates under clause (i) 
                        causes a reduction in compensation at a school 
                        from the rate of compensation that was in 
                        effect for the first fiscal year following the 
                        date of enactment of the Native American 
                        Education Improvement Act of 2001, the new 
                        rates of compensation may be applied to the 
                        compensation of employees of the school who 
                        worked at the school as of such date of 
                        enactment by applying those rates at each 
                        contract renewal for the employees so that the 
                        reduction takes effect in 3 equal installments.
                            ``(iv) Increases.--In an instance in which 
                        the establishment of such rates at a school 
                        causes an increase in compensation from the 
                        rate of compensation that was in effect for the 
                        first fiscal year following the date of 
                        enactment of the Native American Education 
                        Improvement Act of 2001, the school board may 
                        apply the new rates at the next contract 
                        renewal so that either--
                                    ``(I) the entire increase occurs on 
                                1 date; or
                                    ``(II) the increase takes effect in 
                                3 equal installments.
                    ``(D) Established regulations, procedures, and 
                arrangements.--
                            ``(i) Promotions and advancements.--The 
                        establishment of rates of compensation and 
                        annual salary rates under subparagraphs (B) and 
                        (C) shall not preclude the use of regulations 
                        and procedures used by the Bureau prior to 
                        April 28, 1988, in making determinations 
                        regarding promotions and advancements through 
                        levels of pay that are based on the merit, 
                        education, experience, or tenure of an 
                        educator.
                            ``(ii) Continued employment or 
                        compensation.--The establishment of rates of 
                        compensation and annual salary rates under 
                        subparagraphs (B) and (C) shall not affect the 
                        continued employment or compensation of an 
                        educator who was employed in an education 
                        position on October 31, 1979, and who did not 
                        make an election under subsection (o), as in 
                        effect on January 1, 1990.
            ``(2) Post differential rates.--
                    ``(A) In general.--The Secretary may pay a post 
                differential rate not to exceed 25 percent of the rate 
                of compensation, for educators or education positions, 
                on the basis of conditions of environment or work that 
                warrant additional pay, as a recruitment and retention 
                incentive.
                    ``(B) Supervisor's authority.--
                            ``(i) In general.--Except as provided in 
                        clause (ii) on the request of the supervisor 
                        and the local school board of a Bureau school, 
                        the Secretary shall grant the supervisor of the 
                        school authorization to provide 1 or more post 
                        differential rates under subparagraph (A).
                            ``(ii) Exception.--The Secretary shall 
                        disapprove, or approve with a modification, a 
                        request for authorization to provide a post 
                        differential rate if the Secretary determines 
                        for clear and convincing reasons (and advises 
                        the board in writing of those reasons) that the 
                        rate should be disapproved or decreased because 
                        the disparity of compensation between the 
                        appropriate educators or positions in the 
                        Bureau school, and the comparable educators or 
                        positions at the nearest public school, is--
                                    ``(I)(aa) at least 5 percent; or
                                    ``(bb) less than 5 percent; and
                                    ``(II) does not affect the 
                                recruitment or retention of employees 
                                at the school.
                            ``(iii) Approval of requests.--A request 
                        made under clause (i) shall be considered to be 
                        approved at the end of the 60th day after the 
                        request is received in the Central Office of 
                        the Bureau unless before that time the request 
                        is approved, approved with a modification, or 
                        disapproved by the Secretary.
                            ``(iv) Discontinuation of or decrease in 
                        rates.--The Secretary or the supervisor of a 
                        Bureau school may discontinue or decrease a 
                        post differential rate provided for under this 
                        paragraph at the beginning of an academic year 
                        if--
                                    ``(I) the local school board 
                                requests that such differential be 
                                discontinued or decreased; or
                                    ``(II) the Secretary or the 
                                supervisor, respectively, determines 
                                for clear and convincing reasons (and 
                                advises the board in writing of those 
                                reasons) that there is no disparity of 
                                compensation that would affect the 
                                recruitment or retention of employees 
                                at the school after the differential is 
                                discontinued or decreased.
                            ``(v) Reports.--On or before February 1 of 
                        each year, the Secretary shall submit to 
                        Congress a report describing the requests and 
                        approvals of authorization made under this 
                        paragraph during the previous year and listing 
                        the positions receiving post differential rates 
                        under contracts entered into under those 
                        authorizations.
    ``(i) Liquidation of Remaining Leave Upon Termination.--Upon 
termination of employment with the Bureau, any annual leave remaining 
to the credit of an individual within the purview of this section shall 
be liquidated in accordance with sections 5551(a) and 6306 of title 5, 
United States Code, except that leave earned or accrued under 
regulations prescribed pursuant to subsection (c)(9) shall not be so 
liquidated.
    ``(j) Transfer of Remaining Leave Upon Transfer, Promotion, or 
Reemployment.--In the case of any educator who--
            ``(1) is transferred, promoted, or reappointed, without a 
        break in service, to a position in the Federal Government under 
        a different leave system than the system for leave described in 
        subsection (c)(9); and
            ``(2) earned or was credited with leave under the 
        regulations prescribed under subsection (c)(9) and has such 
        leave remaining to the credit of such educator;
such leave shall be transferred to such educator's credit in the 
employing agency for the position on an adjusted basis in accordance 
with regulations that shall be prescribed by the Director of the Office 
of Personnel Management.
    ``(k) Ineligibility for Employment of Voluntarily Terminated 
Educators.--An educator who voluntarily terminates employment under an 
employment contract with the Bureau before the expiration of the 
employment contract shall not be eligible to be employed in another 
education position in the Bureau during the remainder of the term of 
such contract.
    ``(l) Dual Compensation.--In the case of any educator employed in 
an education position described in subsection (a)(1)(A) who--
            ``(1) is employed at the end of an academic year;
            ``(2) agrees in writing to serve in such position for the 
        next academic year; and
            ``(3) is employed in another position during the recess 
        period immediately preceding such next academic year, or during 
        such recess period receives additional compensation referred to 
        in section 5533 of title 5, United States Code, relating to 
        dual compensation;
such section 5533 shall not apply to such educator by reason of any 
such employment during the recess period with respect to any receipt of 
additional compensation.
    ``(m) Voluntary Services.--Notwithstanding section 1342 of title 
31, United States Code, the Secretary may, subject to the approval of 
the local school boards concerned, accept voluntary services on behalf 
of Bureau schools. Nothing in this part shall be construed to require 
Federal employees to work without compensation or to allow the use of 
volunteer services to displace or replace Federal employees. An 
individual providing volunteer services under this section shall be 
considered to be a Federal employee only for purposes of chapter 81 of 
title 5, United States Code, and chapter 171 of title 28, United States 
Code.
    ``(n) Proration of Pay.--
            ``(1) Election of employee.--Notwithstanding any other 
        provision of law, including laws relating to dual compensation, 
        the Secretary, at the election of an educator, shall prorate 
        the salary of the educator for an academic year over a 12-month 
        period. Each educator employed for the academic year shall 
        annually elect to be paid on a 12-month basis or for those 
        months while school is in session. No educator shall suffer a 
        loss of pay or benefits, including benefits under unemployment 
        or other Federal or federally assisted programs, because of 
        such election.
            ``(2) Change of election.--During the course of such 
        academic year, the employee may change the election made under 
        paragraph (1) once.
            ``(3) Lump-sum payment.--That portion of the employee's pay 
        that would be paid between academic years may be paid in a lump 
        sum at the election of the employee.
            ``(4) Application.--This subsection applies to educators, 
        whether employed under this section or title 5, United States 
        Code.
    ``(o) Extracurricular Activities.--
            ``(1) Stipend.--Notwithstanding any other provision of law, 
        the Secretary may provide, for Bureau employees in each Bureau 
        area, a stipend in lieu of overtime premium pay or compensatory 
        time off for overtime work. Any employee of the Bureau who 
        performs overtime work that consists of additional activities 
        to provide services to students or otherwise support the 
        school's academic and social programs may elect to be 
        compensated for all such work on the basis of the stipend. Such 
        stipend shall be paid as a supplement to the employee's base 
        pay.
            ``(2) Election not to receive stipend.--If an employee 
        elects not to be compensated through the stipend established by 
        this subsection, the appropriate provisions of title 5, United 
        States Code, shall apply with respect to the work involved.
            ``(3) Application.--This subsection applies to Bureau 
        employees, whether employed under this section or title 5, 
        United States Code.
    ``(p) Covered Individuals; Election.--This section shall apply with 
respect to any educator hired after November 1, 1979 (and to any 
educator who elected to be covered under this section or a 
corresponding provision after November 1, 1979) and to the position in 
which such educator is employed. The enactment of this section shall 
not affect the continued employment of an individual employed on 
October 31, 1979 in an education position, or such person's right to 
receive the compensation attached to such position.
    ``(q) Furlough Without Consent.--
            ``(1) In general.--An educator who was employed in an 
        education position on October 31, 1979, who was eligible to 
        make an election under subsection (p) at that time, and who did 
        not make the election under such subsection, may not be placed 
        on furlough (within the meaning of section 7511(a)(5) of title 
        5, United States Code, without the consent of such educator for 
        an aggregate of more than 4 weeks within the same calendar 
        year, unless--
                    ``(A) the supervisor, with the approval of the 
                local school board (or of the education line officer 
                upon appeal under paragraph (2)), of the Bureau school 
                at which such educator provides services determines 
                that a longer period of furlough is necessary due to an 
                insufficient amount of funds available for personnel 
                compensation at such school, as determined under the 
                financial plan process as determined under section 
                1129(b); and
                    ``(B) all educators (other than principals and 
                clerical employees) providing services at such Bureau 
                school are placed on furloughs of equal length, except 
                that the supervisor, with the approval of the local 
                school board (or of the agency education line officer 
                upon appeal under paragraph (2)), may continue 1 or 
                more educators in pay status if--
                            ``(i) such educators are needed to operate 
                        summer programs, attend summer training 
                        sessions, or participate in special activities 
                        including curriculum development committees; 
                        and
                            ``(ii) such educators are selected based 
                        upon such educator's qualifications after 
                        public notice of the minimum qualifications 
                        reasonably necessary and without discrimination 
                        as to supervisory, nonsupervisory, or other 
                        status of the educators who apply.
            ``(2) Appeals.--The supervisor of a Bureau school may 
        appeal to the appropriate agency education line officer any 
        refusal by the local school board to approve any determination 
        of the supervisor that is described in paragraph (1)(A) by 
        filing a written statement describing the determination and the 
        reasons the supervisor believes such determination should be 
        approved. A copy of such statement shall be submitted to the 
        local school board and such board shall be afforded an 
        opportunity to respond, in writing, to such appeal. After 
        reviewing such written appeal and response, the education line 
        officer may, for good cause, approve the determination of the 
        supervisor. The educational line officer shall transmit the 
        determination of such appeal in the form of a written opinion 
        to such local school board and to the supervisor identifying 
        the reasons for approving such determination.
    ``(r) Stipends.--The Secretary is authorized to provide annual 
stipends to teachers who become certified by the National Board of 
Professional Teaching Standards.

``SEC. 1132. COMPUTERIZED MANAGEMENT INFORMATION SYSTEM.

    ``(a) In General.--Not later than 12 months after the date of 
enactment of the Native American Education Improvement Act of 2001, the 
Secretary shall update the computerized management information system 
within the Office. The information to be updated shall include 
information regarding--
            ``(1) student enrollment;
            ``(2) curricula;
            ``(3) staffing;
            ``(4) facilities;
            ``(5) community demographics;
            ``(6) student assessment information;
            ``(7) information on the administrative and program costs 
        attributable to each Bureau program, divided into discrete 
        elements;
            ``(8) relevant reports;
            ``(9) personnel records;
            ``(10) finance and payroll; and
            ``(11) such other items as the Secretary determines to be 
        appropriate.
    ``(b) Implementation of System.--Not later than July 1 2003, the 
Secretary shall complete the implementation of the updated computerized 
management information system at each Bureau field office and Bureau 
funded school.

``SEC. 1133. RECRUITMENT OF INDIAN EDUCATORS.

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

``SEC. 1134. ANNUAL REPORT; AUDITS.

    ``(a) Annual Reports.--The Secretary shall submit to each 
appropriate committee of Congress, all Bureau funded schools, and the 
tribal governing bodies of such schools, a detailed annual report on 
the state of education within the Bureau and any problems encountered 
in Indian education during the period covered by the report. Such 
report shall contain suggestions for the improvement of the Bureau 
educational system and for increasing tribal or local Indian control of 
such system. Such report shall also include information on the status 
of tribally controlled community colleges.
    ``(b) Budget Request.--The annual budget request for the Bureau's 
education programs, as submitted as part of the President's next annual 
budget request under section 1105 of title 31, United States Code shall 
include the plans required by sections 1121(c), 1122(c), and 1124(c).
    ``(c) Financial and Compliance Audits.--The Inspector General of 
the Department of the Interior shall establish a system to ensure that 
financial and compliance audits are conducted for each Bureau school at 
least once in every 3 years. Such an audit of a Bureau school shall 
examine the extent to which such school has complied with the local 
financial plan prepared by the school under section 1129(b).
    ``(d) Administrative Evaluation of Schools.--The Director shall, at 
least once every 3 to 5 years, conduct a comprehensive evaluation of 
Bureau operated schools. Such evaluation shall be in addition to any 
other program review or evaluation that may be required under Federal 
law.

``SEC. 1135. RIGHTS OF INDIAN STUDENTS.

    ``The Secretary shall prescribe such rules and regulations as may 
be necessary to ensure the protection of the constitutional and civil 
rights of Indian students attending Bureau funded schools, including 
such students' right to privacy under the laws of the United States, 
such students' right to freedom of religion and expression, and such 
students' right to due process in connection with disciplinary actions, 
suspensions, and expulsions.

``SEC. 1136. REGULATIONS.

    ``(a) In General.--The Secretary may issue only such regulations as 
may be necessary to ensure compliance with the specific provisions of 
this part and only such regulations as the Secretary is authorized to 
issue pursuant to section 5211 of the Tribally Controlled Schools Act 
of 1988 (25 U.S.C. 2510). In issuing the regulations, the Secretary 
shall publish proposed regulations in the Federal Register, and shall 
provide a period of not less than 120 days for public comment and 
consultation on the regulations. The regulations shall contain, 
immediately following each regulatory section, a citation to any 
statutory provision providing authority to issue such regulatory 
section.
    ``(b) Regional Meetings.--Prior to publishing any proposed 
regulations under subsection (a) and prior to establishing the 
negotiated rulemaking committee under subsection (c), the Secretary 
shall convene regional meetings to consult with personnel of the Office 
of Indian Education Programs, educators at Bureau schools, and tribal 
officials, parents, teachers, administrators, and school board members 
of tribes served by Bureau funded schools to provide guidance to the 
Secretary on the content of regulations authorized to be issued under 
this part and the Tribally Controlled Schools Act of 1988.
    ``(c) Negotiated Rulemaking.--
            ``(1) In general.--Notwithstanding sections 563(a) and 
        565(a) of title 5, United States Code, the Secretary shall 
        promulgate regulations authorized under subsection (a) and 
        under the Tribally Controlled Schools Act of 1988, in 
        accordance with the negotiated rulemaking procedures provided 
        for under subchapter III of chapter 5 of title 5, United States 
        Code, and shall publish final regulations in the Federal 
        Register.
            ``(2) Expiration of authority.--The authority of the 
        Secretary to promulgate regulations under this part and under 
        the Tribally Controlled Schools Act of 1988, shall expire on 
        the date that is 18 months after the date of enactment of this 
        part. If the Secretary determines that an extension of the 
        deadline under this paragraph is appropriate, the Secretary may 
        submit proposed legislation to Congress for an extension of 
        such deadline.
            ``(3) Rulemaking committee.--The Secretary shall establish 
        a negotiated rulemaking committee to carry out this subsection. 
        In establishing such committee, the Secretary shall--
                    ``(A) apply the procedures provided for under 
                subchapter III of chapter 5 of title 5, United States 
                Code, in a manner that reflects the unique government-
                to-government relationship between Indian tribes and 
                the United States;
                    ``(B) ensure that the membership of the committee 
                includes only representatives of the Federal Government 
                and of tribes served by Bureau-funded schools;
                    ``(C) select the tribal representatives of the 
                committee from among individuals nominated by the 
                representatives of the tribal and tribally-operated 
                schools;
                    ``(D) ensure, to the maximum extent possible, that 
                the tribal representative membership on the committee 
                reflects the proportionate share of students from 
                tribes served by the Bureau funded school system; and
                    ``(E) comply with the Federal Advisory Committee 
                Act (5 U.S.C. App. 2).
            ``(4) Authorization of appropriations.--There is authorized 
        to be appropriated such sums as necessary to carry out the 
        negotiated rulemaking provided for under this section. In the 
        absence of a specific appropriation to carry out this 
        subsection, the Secretary shall pay the costs of the negotiated 
        rulemaking proceedings from the general administrative funds of 
        the Department of the Interior.
    ``(d) Application of Section.--
            ``(1) Supremacy of provisions.--The provisions of this 
        section shall supersede any conflicting provisions of law 
        (including any conflicting regulations) in effect on the day 
        before the date of enactment of this part, and the Secretary 
        may repeal any regulation that is inconsistent with the 
        provisions of this part.
            ``(2) Modifications.--The Secretary may modify regulations 
        promulgated under this section or the Tribally Controlled 
        Schools Act of 1988, only in accordance with this section.

``SEC. 1137. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

    ``(a) Grants.--The Secretary shall make grants to tribes, tribal 
organizations, and consortia of tribes and tribal organizations to fund 
early childhood development programs that are operated by such tribes, 
organizations, or consortia.
    ``(b) Amount of Grants.--
            ``(1) In general.--The amount of the grant made under 
        subsection (a) to each eligible tribe, tribal organization, or 
        consortium of tribes or tribal organizations for each fiscal 
        year shall be equal to the amount that bears the same 
        relationship to the total amount appropriated under subsection 
        (g) for such fiscal year (other than amounts reserved under 
        subsection (f)) as--
                    ``(A) the total number of children under age 6 who 
                are members of--
                            ``(i) such tribe;
                            ``(ii) the tribe that authorized such 
                        tribal organization; or
                            ``(iii) any tribe that--
                                    ``(I) is a member of such 
                                consortium; or
                                    ``(II) so authorizes any tribal 
                                organization that is a member of such 
                                consortium; bears to
                    ``(B) the total number of all children under age 6 
                who are members of any tribe that--
                            ``(i) is eligible to receive funds under 
                        subsection (a);
                            ``(ii) is a member of a consortium that is 
                        eligible to receive such funds; or
                            ``(iii) is authorized by any tribal 
                        organization that is eligible to receive such 
                        funds.
            ``(2) Limitation.--No grant may be made under subsection 
        (a)--
                    ``(A) to any tribe that has fewer than 500 members;
                    ``(B) to any tribal organization that is authorized 
                to act--
                            ``(i) on behalf of only 1 tribe that has 
                        fewer than 500 members; or
                            ``(ii) on behalf of 1 or more tribes that 
                        have a combined total membership of fewer than 
                        500 members; or
                    ``(C) to any consortium composed of tribes, or 
                tribal organizations authorized by tribes to act on 
                behalf of the tribes, that have a combined total tribal 
                membership of fewer than 500 members.
    ``(c) Applications.--
            ``(1) In general.--To be eligible to receive a grant under 
        subsection (a), a tribe, tribal organization, or consortium 
        shall submit to the Secretary an application for the grant at 
        such time, in such manner, and containing such information as 
        the Secretary shall prescribe.
            ``(2) Contents.--An application submitted under paragraph 
        (1) shall describe the early childhood development program that 
        the applicant desires to operate.
    ``(d) Requirement of Programs Funded.--In operating an early 
childhood development program that is funded through a grant made under 
subsection (a), a tribe, tribal organization, or consortium--
            ``(1) shall coordinate the program with other childhood 
        development programs and may provide services that meet 
        identified needs of parents, and children under age 6, that are 
        not being met by the programs, including needs for--
                    ``(A) prenatal care;
                    ``(B) nutrition education;
                    ``(C) health education and screening;
                    ``(D) family literacy services;
                    ``(E) educational testing; and
                    ``(F) other educational services;
            ``(2) may include, in the early childhood development 
        program funded through the grant, instruction in the language, 
        art, and culture of the tribe served by the program; and
            ``(3) shall provide for periodic assessments of the 
        program.
    ``(e) Coordination of Family Literacy Programs.--An entity that 
operates a family literacy program under this section or another 
similar program funded by the Bureau shall coordinate the program 
involved with family literacy programs for Indian children carried out 
under part B of title I of the Elementary and Secondary Education Act 
of 1965 in order to avoid duplication and to encourage the 
dissemination of information on quality family literacy programs 
serving Indians.
    ``(f) Administrative Costs.--The Secretary shall reserve funds 
appropriated under subsection (g) to include in each grant made under 
subsection (a) an amount for administrative costs incurred by the 
tribe, tribal organization, or consortium involved in establishing and 
maintaining the early childhood development program.
    ``(g) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated such sums as 
may be necessary for each of fiscal years 2002, 2003, 2004, 2005, and 
2006.

``SEC. 1138. TRIBAL DEPARTMENTS OR DIVISIONS OF EDUCATION.

    ``(a) In General.--Subject to the availability of appropriations, 
the Secretary shall make grants and provide technical assistance to 
tribes for the development and operation of tribal departments or 
divisions of education for the purpose of planning and coordinating all 
educational programs of the tribe.
    ``(b) Applications.--For a tribe to be eligible to receive a grant 
under this section, the governing body of the tribe shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require.
    ``(c) Diversity.--The Secretary shall award grants under this 
section in a manner that fosters geographic and population diversity.
    ``(d) Use.--Tribes that receive grants under this section shall use 
the funds made available through the grants--
            ``(1) to facilitate tribal control in all matters relating 
        to the education of Indian children on reservations (and on 
        former Indian reservations in Oklahoma);
            ``(2) to provide for the development of coordinated 
        educational programs (including all preschool, elementary, 
        secondary, and higher or vocational educational programs funded 
        by tribal, Federal, or other sources) on reservations (and on 
        former Indian reservations in Oklahoma) by encouraging tribal 
        administrative support of all Bureau funded educational 
        programs as well as encouraging tribal cooperation and 
        coordination with entities carrying out all educational 
        programs receiving financial support from other Federal 
        agencies, State agencies, or private entities; and
            ``(3) to provide for the development and enforcement of 
        tribal educational codes, including tribal educational policies 
        and tribal standards applicable to curriculum, personnel, 
        students, facilities, and support programs.
    ``(e) Priorities.--In making grants under this section, the 
Secretary shall give priority to any application that--
            ``(1) includes--
                    ``(A) assurances that the applicant serves 3 or 
                more separate Bureau funded schools; and
                    ``(B) assurances from the applicant that the tribal 
                department of education to be funded under this section 
                will provide coordinating services and technical 
                assistance to all of such schools; and
            ``(2) includes assurances that all education programs for 
        which funds are provided by such a contract or grant will be 
        monitored and audited, by or through the tribal department of 
        education, to ensure that the programs meet the requirements of 
        law; and
            ``(3) provides a plan and schedule that--
                    ``(A) provides for--
                            ``(i) the assumption, by the tribal 
                        department of education, of all assets and 
                        functions of the Bureau agency office 
                        associated with the tribe, to the extent the 
                        assets and functions relate to education; and
                            ``(ii) the termination by the Bureau of 
                        such functions and office at the time of such 
                        assumption; and
                    ``(B) provides that the assumption shall occur over 
                the term of the grant made under this section, except 
                that, when mutually agreeable to the tribal governing 
                body and the Assistant Secretary, the period in which 
                such assumption is to occur may be modified, reduced, 
                or extended after the initial year of the grant.
    ``(e) Time Period of Grant.--Subject to the availability of 
appropriated funds, a grant provided under this section shall be 
provided for a period of 3 years. If the performance of the grant 
recipient is satisfactory to the Secretary, the grant may be renewed 
for additional 3-year terms.
    ``(f) Terms, Conditions, or Requirements.--A tribe that receives a 
grant under this section shall comply with regulations relating to 
grants made under section 103(a) of the Indian Self-Determination and 
Education Assistance Act that are in effect on the date that the tribal 
governing body submits the application for the grant under subsection 
(c). The Secretary shall not impose any terms, conditions, or 
requirements on the provision of grants under this section that are not 
specified in this section.
    ``(g) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated $2,000,000 
for fiscal year 2002 and such sums as may be necessary for each of 
fiscal years 2003, 2004, 2005, and 2006.

``SEC. 1139. DEFINITIONS.

    ``In this part, unless otherwise specified:
            ``(1) Agency school board.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `agency school board' means 
                a body, for which--
                            ``(i) the members are appointed by all of 
                        the school boards of the schools located within 
                        an agency, including schools operated under 
                        contracts or grants; and
                            ``(ii) the number of such members shall be 
                        determined by the Secretary in consultation 
                        with the affected tribes.
                    ``(B) Exceptions.--In the case of an agency serving 
                a single school, the school board of such school shall 
                be considered to be the agency school board. In the 
                case of an agency serving a school or schools operated 
                under a contract or grant, at least 1 member of the 
                body described in subparagraph (A) shall be from such a 
                school.
            ``(2) Bureau.--The term `Bureau' means the Bureau of Indian 
        Affairs of the Department of the Interior.
            ``(3) Bureau funded school.--The term `Bureau funded 
        school' means--
                    ``(A) a Bureau school;
                    ``(B) a contract or grant school; or
                    ``(C) a school for which assistance is provided 
                under the Tribally Controlled Schools Act of 1988.
            ``(4) Bureau school.--The term `Bureau school' means--
                    ``(A) a Bureau operated elementary school or 
                secondary school that is a day or boarding school; or
                    ``(B) a Bureau operated dormitory for students 
                attending a school other than a Bureau school.
            ``(5) Complementary educational facilities.--The term 
        `complementary educational facilities' means educational 
        program functional spaces including a library, gymnasium, and 
        cafeteria.
            ``(6) Contract or grant school.--The term `contract or 
        grant school' means an elementary school, secondary school, or 
        dormitory that receives financial assistance for its operation 
        under a contract, grant, or agreement with the Bureau under 
        section 102, 103(a), or 208 of the Indian Self-Determination 
        and Education Assistance Act, or under the Tribally Controlled 
        Schools Act of 1988.
            ``(7) Director.--The term `Director' means the Director of 
        the Office of Indian Education Programs.
            ``(8) Education line officer.--The term `education line 
        officer' means a member of the education personnel under the 
        supervision of the Director of the Office, whether located in a 
        central, area, or agency office.
            ``(9) Financial plan.--The term `financial plan' means a 
        plan of services provided by each Bureau school.
            ``(10) Indian organization.--The term `Indian organization' 
        means any group, association, partnership, corporation, or 
        other legal entity owned or controlled by a federally 
        recognized Indian tribe or tribes, or a majority of whose 
        members are members of federally recognized tribes.
            ``(11) Inherently federal functions.--The term `inherently 
        Federal functions' means functions and responsibilities which, 
        under section 1125(c), are non-contractible, including--
                    ``(A) the allocation and obligation of Federal 
                funds and determinations as to the amounts of 
                expenditures;
                    ``(B) the administration of Federal personnel laws 
                for Federal employees;
                    ``(C) the administration of Federal contracting and 
                grant laws, including the monitoring and auditing of 
                contracts and grants in order to maintain the 
                continuing trust, programmatic, and fiscal 
                responsibilities of the Secretary;
                    ``(D) the conducting of administrative hearings and 
                deciding of administrative appeals;
                    ``(E) the determination of the Secretary's views 
                and recommendations concerning administrative appeals 
                or litigation and the representation of the Secretary 
                in administrative appeals and litigation;
                    ``(F) the issuance of Federal regulations and 
                policies as well as any documents published in the 
                Federal Register;
                    ``(G) reporting to Congress and the President;
                    ``(H) the formulation of the Secretary's and the 
                President's policies and their budgetary and 
                legislative recommendations and views; and
                    ``(I) the non-delegable statutory duties of the 
                Secretary relating to trust resources.
            ``(12) Local educational agency.--The term `local 
        educational agency' means a board of education or other legally 
        constituted local school authority having administrative 
        control and direction of free public education in a county, 
        township, or independent or other school district located 
        within a State, and includes any State agency that directly 
        operates and maintains facilities for providing free public 
        education.
            ``(13) Local school board.--The term `local school board', 
        when used with respect to a Bureau school, means a body chosen 
        in accordance with the laws of the tribe to be served or, in 
        the absence of such laws, elected by the parents of the Indian 
        children attending the school, except that, for a school 
        serving a substantial number of students from different 
        tribes--
                    ``(A) the members of the body shall be appointed by 
                the tribal governing bodies of the tribes affected; and
                    ``(B) the number of such members shall be 
                determined by the Secretary in consultation with the 
                affected tribes.
            ``(14) Office.--The term `Office' means the Office of 
        Indian Education Programs within the Bureau.
            ``(15) Regulation.--The term ``regulation'' means any part 
        of a statement of general or particular applicability of the 
        Secretary designed to carry out, interpret, or prescribe law or 
        policy in carrying out this Act.
            ``(16) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
            ``(17) Supervisor.--The term `supervisor' means the 
        individual in the position of ultimate authority at a Bureau 
        school.
            ``(18) Tribal governing body.--The term `tribal governing 
        body' means, with respect to any school, the tribal governing 
        body, or tribal governing bodies, that represent at least 90 
        percent of the students served by such school.
            ``(19) Tribe.--The term `tribe' means any Indian tribe, 
        band, nation, or other organized group or community, including 
        an Alaska Native Regional Corporation or Village Corporation 
        (as defined in or established pursuant to the Alaska Native 
        Claims Settlement Act), which is recognized as eligible for the 
        special programs and services provided by the United States to 
        Indians because of their status as Indians.''.

          Subtitle B--Tribally Controlled Schools Act of 1988

SEC. 1221. TRIBALLY CONTROLLED SCHOOLS.

    Sections 5202 through 5213 of the Tribally Controlled Schools Act 
of 1988 (25 U.S.C. 2501 et seq.) are amended to read as follows:

``SEC. 5202. FINDINGS.

    ``Congress, after careful review of the Federal Government's 
historical and special legal relationship with, and resulting 
responsibilities to, Indians, finds that--
            ``(1) the Indian Self-Determination and Education 
        Assistance Act, which was a product of the legitimate 
        aspirations and a recognition of the inherent authority of 
        Indian nations, was and is a crucial positive step towards 
        tribal and community control;
            ``(2) because of the Bureau of Indian Affairs' 
        administration and domination of the contracting process under 
        such Act, Indians have not been provided with the full 
        opportunity to develop leadership skills crucial to the 
        realization of self-government and have been denied an 
        effective voice in the planning and implementation of programs 
        for the benefit of Indians that are responsive to the true 
        needs of Indian communities;
            ``(3) Indians will never surrender their desire to control 
        their relationships both among themselves and with non-Indian 
        governments, organizations, and persons;
            ``(4) true self-determination in any society of people is 
        dependent upon an educational process that will ensure the 
        development of qualified people to fulfill meaningful 
        leadership roles;
            ``(5) the Federal administration of education for Indian 
        children have not effected the desired level of educational 
        achievement or created the diverse opportunities and personal 
        satisfaction that education can and should provide;
            ``(6) true local control requires the least possible 
        Federal interference; and
            ``(7) the time has come to enhance the concepts made 
        manifest in the Indian Self-Determination and Education 
        Assistance Act.

``SEC. 5203. DECLARATION OF POLICY.

    ``(a) Recognition.--Congress recognizes the obligation of the 
United States to respond to the strong expression of the Indian people 
for self-determination by assuring maximum Indian participation in the 
direction of educational services so as to render the persons 
administering such services and the services themselves more responsive 
to the needs and desires of Indian communities.
    ``(b) Commitment.--Congress declares its commitment to the 
maintenance of the Federal Government's unique and continuing trust 
relationship with and responsibility to the Indian people through the 
establishment of a meaningful Indian self-determination policy for 
education that will deter further perpetuation of Federal bureaucratic 
domination of programs.
    ``(c) National Goal.--Congress declares that a major national goal 
of the United States is to provide the resources, processes, and 
structure that will enable tribes and local communities to obtain the 
quantity and quality of educational services and opportunities that 
will permit Indian children--
            ``(1) to compete and excel in the life areas of their 
        choice; and
            ``(2) to achieve the measure of self-determination 
        essential to their social and economic well-being.
    ``(d) Educational Needs.--Congress affirms--
            ``(1) the reality of the special and unique educational 
        needs of Indian people, including the need for programs to meet 
        the linguistic and cultural aspirations of Indian tribes and 
        communities; and
            ``(2) that the needs may best be met through a grant 
        process.
    ``(e) Federal Relations.--Congress declares a commitment to the 
policies described in this section and support, to the full extent of 
congressional responsibility, for Federal relations with the Indian 
nations.
    ``(f) Termination.--Congress repudiates and rejects House 
Concurrent Resolution 108 of the 83d Congress and any policy of 
unilateral termination of Federal relations with any Indian Nation.

``SEC. 5204. GRANTS AUTHORIZED.

    ``(a) In General.--
            ``(1) Eligibility.--The Secretary shall provide grants to 
        Indian tribes and tribal organizations that--
                    ``(A) operate contract schools under title XI of 
                the Education Amendments of 1978 and notify the 
                Secretary of their election to operate the schools with 
                assistance under this part rather than continuing to 
                operate such schools as contract schools under such 
                title;
                    ``(B) operate other tribally controlled schools 
                eligible for assistance under this part and submit 
                applications (which are approved by their tribal 
                governing bodies) to the Secretary for such grants; or
                    ``(C) elect to assume operation of Bureau funded 
                schools with the assistance provided under this part 
                and submit applications (which are approved by their 
                tribal governing bodies) to the Secretary for such 
                grants.
            ``(2) Deposit of funds.--Funds made available through a 
        grant provided under this part shall be deposited into the 
        general operating fund of the tribally controlled school with 
        respect to which the grant is made.
            ``(3) Use of funds.--
                    ``(A) Education related activities.--Except as 
                otherwise provided in this paragraph, funds made 
                available through a grant provided under this part 
                shall be used to defray, at the discretion of the 
                school board of the tribally controlled school with 
                respect to which the grant is provided, any 
                expenditures for education related activities for which 
                the grant may be used under the laws described in 
                section 5205(a), or any similar activities, including 
                expenditures for--
                            ``(i) school operations, and academic, 
                        educational, residential, guidance and 
                        counseling, and administrative purposes; and
                            ``(ii) support services for the school, 
                        including transportation.
                    ``(B) Operations and maintenance expenditures.--
                Funds made available through a grant provided under 
                this part may, at the discretion of the school board of 
                the tribally controlled school with respect to which 
                such grant is provided, be used to defray operations 
                and maintenance expenditures for the school if any 
                funds for the operation and maintenance of the school 
                are allocated to the school under the provisions of any 
                of the laws described in section 5205(a).
            ``(4) Waiver of federal tort claims act.--Notwithstanding 
        section 314 of the Department of Interior and Related Agencies 
        Appropriations Act, 1991 (Public Law 101-512), the Federal Tort 
        Claims Act shall not apply to a program operated by a tribally 
        controlled school if the program is not funded by the Federal 
        agency. Nothing in the preceding sentence shall be construed to 
        apply to--
                    ``(A) the employees of the school involved; and
                    ``(B) any entity that enters into a contract with a 
                grantee under this section.
    ``(b) Limitations.--
            ``(1) 1 grant per tribe or organization per fiscal year.--
        Not more than 1 grant may be provided under this part with 
        respect to any Indian tribe or tribal organization for any 
        fiscal year.
            ``(2) Nonsectarian use.--Funds made available through any 
        grant provided under this part may not be used in connection 
        with religious worship or sectarian instruction.
            ``(3) Administrative costs limitation.--Funds made 
        available through any grant provided under this part may not be 
        expended for administrative cost (as defined in section 1127(a) 
        of the Education Amendments of 1978) in excess of the amount 
        generated for such cost under the formula established in 
        section 1127 of such Act.
    ``(c) Limitation on Transfer of Funds Among School Sites.--
            ``(1) In general.--In the case of a recipient of a grant 
        under this part that operates schools at more than 1 school 
        site, the grant recipient may expend not more than the lesser 
        of--
                    ``(A) 10 percent of the funds allocated for such 
                school site, under section 1126 of the Education 
                Amendments of 1978; or
                    ``(B) $400,000 of such funds;
        at any other school site.
            ``(2) Definition of school site.--In this subsection, the 
        term `school site' means the physical location and the 
        facilities of an elementary or secondary educational or 
        residential program operated by, or under contract or grant 
        with, the Bureau for which a discrete student count is 
        identified under the funding formula established under section 
        1126 of the Education Amendments of 1978.
    ``(d) No Requirement To Accept Grants.--Nothing in this part may be 
construed--
            ``(1) to require a tribe or tribal organization to apply 
        for or accept; or
            ``(2) to allow any person to coerce any tribe or tribal 
        organization to apply for, or accept,
a grant under this part to plan, conduct, and administer all of, or any 
portion of, any Bureau program. The submission of such applications and 
the timing of such applications shall be strictly voluntary. Nothing in 
this part may be construed as allowing or requiring the grant recipient 
to make any grant under this part to any other entity.
    ``(e) No Effect on Federal Responsibility.--Grants provided under 
this part shall not terminate, modify, suspend, or reduce the 
responsibility of the Federal Government to provide an educational 
program.
    ``(f) Retrocession.--
            ``(1) In general.--Whenever a tribal governing body 
        requests retrocession of any program for which assistance is 
        provided under this part, such retrocession shall become 
        effective on a date specified by the Secretary that is not 
        later than 120 days after the date on which the tribal 
        governing body requests the retrocession. A later date may be 
        specified if mutually agreed upon by the Secretary and the 
        tribal governing body. If such a program is retroceded, the 
        Secretary shall provide to any Indian tribe served by such 
        program at least the same quantity and quality of services that 
        would have been provided under such program at the level of 
        funding provided under this part prior to the retrocession.
            ``(2) Status after retrocession.--The tribe requesting 
        retrocession shall specify whether the retrocession relates to 
        status as a Bureau operated school or as a school operated 
        under a contract under the Indian Self-Determination Act.
    ``(g) Transfer of Equipment and Materials.--Except as otherwise 
determined by the Secretary, the tribe or tribal organization operating 
the program to be retroceded shall transfer to the Secretary (or to the 
tribe or tribal organization that will operate the program as a 
contract school) the existing property and equipment that were 
acquired--
            ``(1) with assistance under this part; or
            ``(2) upon assumption of operation of the program under 
        this part if the school was a Bureau funded school before 
        receiving assistance under this part.
    ``(h) Prohibition of Termination for Administrative Convenience.--
Grants provided under this part may not be terminated, modified, 
suspended, or reduced solely for the convenience of the administering 
agency.

``SEC. 5205. COMPOSITION OF GRANTS.

    ``(a) In General.--The funds made available through a grant 
provided under this part to an Indian tribe or tribal organization for 
any fiscal year shall consist of--
            ``(1) the total amount of funds allocated for such fiscal 
        year under sections 1126 and 1127 of the Education Amendments 
        of 1978 with respect to the tribally controlled school eligible 
        for assistance under this part that is operated by such Indian 
        tribe or tribal organization, including funds provided under 
        such sections, or under any other provision of law, for 
        transportation costs for such school;
            ``(2) to the extent requested by such Indian tribe or 
        tribal organization, the total amount of funds provided from 
        operations and maintenance accounts and, notwithstanding 
        section 105 of the Indian Self-Determination and Education 
        Assistance Act or any other provision of law, other facilities 
        accounts for such school for such fiscal year (including 
        accounts for facilities referred to in section 1125(e) of the 
        Education Amendments of 1978 or any other law); and
            ``(3) the total amount of funds that are allocated to such 
        school for such fiscal year under--
                    ``(A) title I of the Elementary and Secondary 
                Education Act of 1965;
                    ``(B) the Individuals with Disabilities Education 
                Act; and
                    ``(C) any other Federal education law.
    ``(b) Special Rules.--
            ``(1) In general.--
                    ``(A) Applicable provisions.--Funds allocated to a 
                tribally controlled school by reason of paragraph (1) 
                or (2) of subsection (a) shall be subject to the 
                provisions of this part and shall not be subject to any 
                additional restriction, priority, or limitation that is 
                imposed by the Bureau with respect to funds provided 
                under--
                            ``(i) title I of the Elementary and 
                        Secondary Education Act of 1965;
                            ``(ii) the Individuals with Disabilities 
                        Education Act; or
                            ``(iii) any Federal education law other 
                        than title XI of the Education Amendments of 
                        1978.
                    ``(B) Other bureau requirements.--Indian tribes and 
                tribal organizations to which grants are provided under 
                this part, and tribally controlled schools for which 
                such grants are provided, shall not be subject to any 
                requirements, obligations, restrictions, or limitations 
                imposed by the Bureau that would otherwise apply solely 
                by reason of the receipt of funds provided under any 
                law referred to in clause (i), (ii) or (iii) of 
                subparagraph (A).
            ``(2) Schools considered contract schools.--Tribally 
        controlled schools for which grants are provided under this 
        part shall be treated as contract schools for the purposes of 
        allocation of funds under sections 1125(e), 1126, and 1127 of 
        the Education Amendments of 1978.
            ``(3) Schools considered bureau schools.--Tribally 
        controlled schools for which grants are provided under this 
        part shall be treated as Bureau schools for the purposes of 
        allocation of funds provided under--
                    ``(A) title I of the Elementary and Secondary 
                Education Act of 1965;
                    ``(B) the Individuals with Disabilities Education 
                Act; and
                    ``(C) any other Federal education law, that are 
                distributed through the Bureau.
            ``(4) Accounts; use of certain funds.--
                    ``(A) Separate account.--Notwithstanding section 
                5204(a)(2), with respect to funds from facilities 
                improvement and repair, alteration and renovation 
                (major or minor), health and safety, or new 
                construction accounts included in the grant provided 
                under section 5204(a), the grant recipient shall 
                maintain a separate account for such funds. At the end 
                of the period designated for the work covered by the 
                funds received, the grant recipient shall submit to the 
                Secretary a separate accounting of the work done and 
                the funds expended. Funds received from those accounts 
                may only be used for the purpose for which the funds 
                were appropriated and for the work encompassed by the 
                application or submission for which the funds were 
                received.
                    ``(B) Requirements for projects.--
                            ``(i) Regulatory requirements.--With 
                        respect to a grant to a tribally controlled 
                        school under this part for new construction or 
                        facilities improvements and repair in excess of 
                        $100,000, such grant shall be subject to the 
                        Administrative and Audit Requirements and Cost 
                        Principles for Assistance Programs contained in 
                        part 12 of title 43, Code of Federal 
                        Regulations.
                            ``(ii) Exception.--Notwithstanding clause 
                        (i), grants described in such clause shall not 
                        be subject to section 12.61 of title 43, Code 
                        of Federal Regulations. The Secretary and the 
                        grantee shall negotiate and determine a 
                        schedule of payments for the work to be 
                        performed.
                            ``(iii) Applications.--In considering 
                        applications for a grant described in clause 
                        (i), the Secretary shall consider whether the 
                        Indian tribe or tribal organization involved 
                        would be deficient in assuring that the 
                        construction projects under the proposed grant 
                        conform to applicable building standards and 
                        codes and Federal, tribal, or State health and 
                        safety standards as required under section 1124 
                        of the Education Amendments of 1978 (25 U.S.C. 
                        2005(a)) with respect to organizational and 
                        financial management capabilities.
                            ``(iv) Disputes.--Any disputes between the 
                        Secretary and any grantee concerning a grant 
                        described in clause (i) shall be subject to the 
                        dispute provisions contained in section 
                        5209(e).
                    ``(C) New construction.--Notwithstanding 
                subparagraph (A), a school receiving a grant under this 
                part for facilities improvement and repair may use such 
                grant funds for new construction if the tribal 
                governing body or tribal organization that submits the 
                application for the grant provides funding for the new 
                construction equal to at least 25 percent of the total 
                cost of such new construction.
                    ``(D) Period.--Where the appropriations measure 
                under which the funds described in subparagraph (A) are 
                made available or the application submitted for the 
                funds does not stipulate a period for the work covered 
                by the funds, the Secretary and the grant recipient 
                shall consult and determine such a period prior to the 
                transfer of the funds. A period so determined may be 
                extended upon mutual agreement of the Secretary and the 
                grant recipient.
            ``(5) Enforcement of request to include funds.--
                    ``(A) In general.--If the Secretary fails to carry 
                out a request filed by an Indian tribe or tribal 
                organization to include in such tribe or organization's 
                grant under this part the funds described in subsection 
                (a)(2) within 180 days after the filing of the request, 
                the Secretary shall--
                            ``(i) be deemed to have approved such 
                        request; and
                            ``(ii) immediately upon the expiration of 
                        such 180-day period amend the grant 
                        accordingly.
                    ``(B) Rights.--A tribe or organization described in 
                subparagraph (A) may enforce its rights under 
                subsection (a)(2) and this paragraph, including rights 
                relating to any denial or failure to act on such 
                tribe's or organization's request, pursuant to the 
                dispute authority described in section 5209(e).

``SEC. 5206. ELIGIBILITY FOR GRANTS.

    ``(a) Rules.--
            ``(1) In general.--A tribally controlled school is eligible 
        for assistance under this part if the school--
                    ``(A) on April 28, 1988, was a contract school 
                under title XI of the Education Amendments of 1978 and 
                the tribe or tribal organization operating the school 
                submits to the Secretary a written notice of election 
                to receive a grant under this part;
                    ``(B) was a Bureau operated school under title XI 
                of the Education Amendments of 1978 and has met the 
                requirements of subsection (b);
                    ``(C) is not a Bureau funded school, but has met 
                the requirements of subsection (c); or
                    ``(D) is a school with respect to which an election 
                has been made under paragraph (2) and that has met the 
                requirements of subsection (b).
            ``(2) New schools.--Notwithstanding paragraph (1), for 
        purposes of determining eligibility for assistance under this 
        part, any application that has been submitted under the Indian 
        Self-Determination and Education Assistance Act by an Indian 
        tribe or tribal organization for a school that is not in 
        operation on the date of enactment of the Native American 
        Education Improvement Act of 2001 shall be reviewed under the 
        guidelines and regulations for applications submitted under the 
        Indian Self-Determination and Education Assistance Act that 
        were in effect at the time the application was submitted, 
        unless the Indian tribe or tribal organization elects to have 
        the application reviewed under the provisions of subsection 
        (b).
    ``(b) Additional Requirements for Bureau Funded Schools and Certain 
Electing Schools.--
            ``(1) Bureau funded schools.--A school that was a Bureau 
        funded school under title XI of the Education Amendments of 
        1978 on the date of enactment of the Native American Education 
        Improvement Act of 2001, and any school with respect to which 
        an election is made under subsection (a)(2), meets the 
        requirements of this subsection if--
                    ``(A) the Indian tribe or tribal organization that 
                operates, or desires to operate, the school submits to 
                the Secretary an application requesting that the 
                Secretary--
                            ``(i) transfer operation of the school to 
                        the Indian tribe or tribal organization, if the 
                        Indian tribe or tribal organization is not 
                        already operating the school; and
                            ``(ii) make a determination as to whether 
                        the school is eligible for assistance under 
                        this part; and
                    ``(B) the Secretary makes a determination that the 
                school is eligible for assistance under this part.
            ``(2) Certain electing schools.--
                    ``(A) Determination.--By not later than 120 days 
                after the date on which an application is submitted to 
                the Secretary under paragraph (1)(A), the Secretary 
                shall determine--
                            ``(i) in the case of a school that is not 
                        being operated by the Indian tribe or tribal 
                        organization, whether to transfer operation of 
                        the school to the Indian tribe or tribal 
                        organization; and
                            ``(ii) whether the school is eligible for 
                        assistance under this part.
                    ``(B) Consideration; transfers and eligibility.--In 
                considering applications submitted under paragraph 
                (1)(A), the Secretary--
                            ``(i) shall transfer operation of the 
                        school to the Indian tribe or tribal 
                        organization, if the tribe or tribal 
                        organization is not already operating the 
                        school; and
                            ``(ii) shall determine that the school is 
                        eligible for assistance under this part, unless 
                        the Secretary finds by clear and convincing 
                        evidence that the services to be provided by 
                        the Indian tribe or tribal organization will be 
                        deleterious to the welfare of the Indians 
                        served by the school and will not carry out the 
                        purposes of this Act.
                    ``(C) Consideration; possible deficiencies.--In 
                considering applications submitted under paragraph 
                (1)(A), the Secretary shall only consider whether the 
                Indian tribe or tribal organization would be deficient 
                in operating the school with respect to--
                            ``(i) equipment;
                            ``(ii) bookkeeping and accounting 
                        procedures;
                            ``(iii) ability to adequately manage a 
                        school; or
                            ``(iv) adequately trained personnel.
    ``(c) Additional Requirements for a School That Is Not a Bureau 
Funded School.--
            ``(1) In general.--A school that is not a Bureau funded 
        school under title XI of the Education Amendments of 1978 meets 
        the requirements of this subsection if--
                    ``(A) the Indian tribe or tribal organization that 
                operates, or desires to operate, the school submits to 
                the Secretary an application requesting a determination 
                by the Secretary as to whether the school is eligible 
                for assistance under this part; and
                    ``(B) the Secretary makes a determination that the 
                school is eligible for assistance under this part.
            ``(2) Deadline for determination by secretary.--
                    ``(A) Determination.--By not later than 180 days 
                after the date on which an application is submitted to 
                the Secretary under paragraph (1)(A), the Secretary 
                shall determine whether the school is eligible for 
                assistance under this part.
                    ``(B) Factors.--In making the determination under 
                subparagraph (A), the Secretary shall give equal 
                consideration to each of the following factors:
                            ``(i) With respect to the applicant's 
                        proposal--
                                    ``(I) the adequacy of facilities or 
                                the potential to obtain or provide 
                                adequate facilities;
                                    ``(II) geographic and demographic 
                                factors in the affected areas;
                                    ``(III) adequacy of the applicant's 
                                program plans;
                                    ``(IV) geographic proximity of 
                                comparable public education; and
                                    ``(V) the needs to be met by the 
                                school, as expressed by all affected 
                                parties, including but not limited to 
                                students, families, tribal governments 
                                at both the central and local levels, 
                                and school organizations.
                            ``(ii) With respect to all education 
                        services already available--
                                    ``(I) geographic and demographic 
                                factors in the affected areas;
                                    ``(II) adequacy and comparability 
                                of programs already available;
                                    ``(III) consistency of available 
                                programs with tribal education codes or 
                                tribal legislation on education; and
                                    ``(IV) the history and success of 
                                those services for the proposed 
                                population to be served, as determined 
                                from all factors including, if 
                                relevant, standardized examination 
                                performance.
                    ``(C) Exception regarding proximity.--The Secretary 
                may not make a determination under this paragraph that 
                is primarily based upon the geographic proximity of 
                comparable public education.
                    ``(D) Information on factors.--An application 
                submitted under paragraph (1)(A) shall include 
                information on the factors described in subparagraph 
                (B)(i), but the applicant may also provide the 
                Secretary such information relative to the factors 
                described in subparagraph (B)(ii) as the applicant 
                considers to be appropriate.
                    ``(E) Treatment of lack of determination.--If the 
                Secretary fails to make a determination under 
                subparagraph (A) with respect to an application within 
                180 days after the date on which the Secretary received 
                the application--
                            ``(i) the Secretary shall be deemed to have 
                        made a determination that the tribally 
                        controlled school is eligible for assistance 
                        under this part; and
                            ``(ii) the grant shall become effective 18 
                        months after the date on which the Secretary 
                        received the application, or on an earlier 
                        date, at the Secretary's discretion.
    ``(d) Filing of Applications and Reports.--
            ``(1) In general.--Each application or report submitted to 
        the Secretary under this part, and any amendment to such 
        application or report, shall be filed with the education line 
        officer designated by the Director of the Office of Indian 
        Education Programs of the Bureau of Indian Affairs. The date on 
        which the filing occurs shall, for purposes of this part, be 
        treated as the date on which the application, report, or 
        amendment was submitted to the Secretary.
            ``(2) Supporting documentation.--
                    ``(A) In general.--Any application that is 
                submitted under this part shall be accompanied by a 
                document indicating the action taken by the appropriate 
                tribal governing body concerning authorizing such 
                application.
                    ``(B) Authorization action.--The Secretary shall 
                administer the requirement of subparagraph (A) in a 
                manner so as to ensure that the tribe involved, through 
                the official action of the tribal governing body, has 
                approved of the application for the grant.
                    ``(C) Rule of construction.--Nothing in this 
                paragraph shall be construed as making a tribal 
                governing body (or tribe) that takes an action 
                described in subparagraph (A) a party to the grant 
                (unless the tribal governing body or the tribe is the 
                grantee) or as making the tribal governing body or 
                tribe financially or programmatically responsible for 
                the actions of the grantee.
            ``(3) Rules of construction.--Nothing in this subsection 
        shall be construed as making a tribe act as a surety for the 
        performance of a grantee under a grant under this part.
            ``(4) Clarification.--The provisions of paragraphs (2) and 
        (3) shall be construed as a clarification of policy in 
        existence on the date of enactment of the Native American 
        Education Improvement Act of 2001 with respect to grants under 
        this part and shall not be construed as altering such policy or 
        as a new policy.
    ``(e) Effective Date for Approved Applications.--Except as provided 
in subsection (c)(2)(E), a grant provided under this part shall be 
made, and any transfer of the operation of a Bureau school made under 
subsection (b) shall become effective, beginning on the first day of 
the academic year succeeding the fiscal year in which the application 
for the grant or transfer is made, or on an earlier date determined by 
the Secretary.
    ``(f) Denial of Applications.--
            ``(1) In general.--If the Secretary disapproves a grant 
        under this part, disapproves the transfer of operations of a 
        Bureau school under subsection (b), or determines that a school 
        is not eligible for assistance under this part, the Secretary 
        shall--
                    ``(A) state the objections in writing to the tribe 
                or tribal organization involved within the allotted 
                time;
                    ``(B) provide assistance to the tribe or tribal 
                organization to cure all stated objections;
                    ``(C) at the request of the tribe or tribal 
                organization, provide to the tribe or tribal 
                organization a hearing on the record regarding the 
                refusal or determination involved, under the same rules 
                and regulations as apply under the Indian Self-
                Determination and Education Assistance Act; and
                    ``(D) provide to the tribe or tribal organization 
                an opportunity to appeal the decision resulting from 
                the hearing.
            ``(2) Timeline for reconsideration of amended 
        applications.--The Secretary shall reconsider any amended 
        application submitted under this part within 60 days after the 
        amended application is submitted to the Secretary and shall 
        submit the determinations of the Secretary with respect to such 
        reconsideration to the tribe or the tribal organization.
    ``(g) Report.--The Bureau shall prepare and submit to Congress an 
annual report on all applications received, and actions taken 
(including the costs associated with such actions), under this section 
on the same date as the date on which the President is required to 
submit to Congress a budget of the United States Government under 
section 1105 of title 31, United States Code.

``SEC. 5207. DURATION OF ELIGIBILITY DETERMINATION.

    ``(a) In General.--If the Secretary determines that a tribally 
controlled school is eligible for assistance under this part, the 
eligibility determination shall remain in effect until the 
determination is revoked by the Secretary, and the requirements of 
subsection (b) or (c) of section 5206, if applicable, shall be 
considered to have been met with respect to such school until the 
eligibility determination is revoked by the Secretary.
    ``(b) Annual Reports.--
            ``(1) In general.--Each recipient of a grant provided under 
        this part for a school shall prepare an annual report 
        concerning the school involved, the contents of which shall be 
        limited to--
                    ``(A) an annual financial statement reporting 
                revenue and expenditures as defined by the cost 
                accounting standards established by the grant 
                recipient;
                    ``(B) an annual financial audit conducted pursuant 
                to the standards of chapter 71 of title 31, United 
                States Code;
                    ``(C) a biennial compliance audit of the 
                procurement of personal property during the period for 
                which the report is being prepared that shall be in 
                compliance with written procurement standards that are 
                developed by the local school board;
                    ``(D) an annual submission to the Secretary 
                containing information on the number of students served 
                and a brief description of programs offered through the 
                grant; and
                    ``(E) a program evaluation conducted by an 
                impartial evaluation review team, to be based on the 
                standards established for purposes of subsection 
                (c)(1)(A)(ii).
            ``(2) Evaluation review teams.--In appropriate cases, 
        representatives of other tribally controlled schools and 
        representatives of tribally controlled community colleges shall 
        be members of the evaluation review teams.
            ``(3) Evaluations.--In the case of a school that is 
        accredited, the evaluations required under this subsection 
        shall be conducted at intervals under the terms of the 
        accreditation.
            ``(4) Submission of report.--
                    ``(A) To tribal governing body.--Upon completion of 
                the annual report required under paragraph (1), the 
                recipient of the grant shall send (via first class 
                mail, return receipt requested) a copy of such annual 
                report to the tribal governing body.
                    ``(B) To secretary.--Not later than 30 days after 
                receiving written confirmation that the tribal 
                governing body has received the report sent pursuant to 
                subparagraph (A), the recipient of the grant shall send 
                a copy of the report to the Secretary.
    ``(c) Revocation of Eligibility.--
            ``(1) In general.--The Secretary may not revoke a 
        determination that a school is eligible for assistance under 
        this part if--
                    ``(A) the Indian tribe or tribal organization 
                submits the reports required under subsection (b) with 
                respect to the school; and
                    ``(B) at least 1 of the following conditions 
                applies with respect to the school:
                            ``(i) The school is certified or accredited 
                        by a State certification or regional 
                        accrediting association or is a candidate in 
                        good standing for such certification or 
                        accreditation under the rules of the State 
                        certification or regional accrediting 
                        association, showing that credits achieved by 
                        the students within the education programs of 
                        the school are, or will be, accepted at grade 
                        level by a State certified or regionally 
                        accredited institution.
                            ``(ii) The Secretary determines that there 
                        is a reasonable expectation that the 
                        certification or accreditation described in 
                        clause (i), or candidacy in good standing for 
                        such certification or accreditation, will be 
                        achieved by the school within 3 years. The 
                        school seeking accreditation shall remain under 
                        the standards of the Bureau in effect on the 
                        date of enactment of the Native American 
                        Education Improvement Act of 2001 until such 
                        time as the school is accredited, except that 
                        if the Bureau standards are in conflict with 
                        the standards of the accrediting agency, the 
                        standards of such agency shall apply in such 
                        case.
                            ``(iii) The school is accredited by a 
                        tribal department of education if such 
                        accreditation is accepted by a generally 
                        recognized State certification or regional 
                        accrediting agency.
                            ``(iv)(I) With respect to a school that 
                        lacks accreditation, or that is not a candidate 
                        for accreditation, based on circumstances that 
                        are not beyond the control of the school board, 
                        every 3 years an impartial evaluator agreed 
                        upon by the Secretary and the grant recipient 
                        conducts evaluations of the school, and the 
                        school receives a positive assessment under 
                        such evaluations. The evaluations are conducted 
                        under standards adopted by a contractor under a 
                        contract for the school entered into under the 
                        Indian Self-Determination and Education 
                        Assistance Act (or revisions of such standards 
                        agreed to by the Secretary and the grant 
                        recipient) prior to the date of enactment of 
                        the Native American Education Improvement Act 
                        of 2001.
                            ``(II) If the Secretary and a grant 
                        recipient other than a tribal governing body 
                        fail to agree on such an evaluator, the tribal 
                        governing body shall choose the evaluator or 
                        perform the evaluation. If the Secretary and a 
                        grant recipient that is a tribal governing body 
                        fail to agree on such an evaluator, subclause 
                        (I) shall not apply.
                            ``(III) A positive assessment by an 
                        impartial evaluator under this clause shall not 
                        affect the revocation of a determination of 
                        eligibility by the Secretary where such 
                        revocation is based on circumstances that were 
                        within the control of the school board.
            ``(2) Notice requirements for revocation.--The Secretary 
        may not revoke a determination that a school is eligible for 
        assistance under this part, or reassume control of a school 
        that was a Bureau school prior to approval of an application 
        submitted under section 5206(b)(1)(A), until the Secretary--
                    ``(A) provides notice, to the tribally controlled 
                school involved and the appropriate tribal governing 
                body (within the meaning of section 1139 of the 
                Education Amendments of 1978) for the tribally 
                controlled school, which notice identifies--
                            ``(i) the specific deficiencies that led to 
                        the revocation or reassumption determination; 
                        and
                            ``(ii) the specific actions that are needed 
                        to remedy such deficiencies; and
                    ``(B) affords such school and governing body an 
                opportunity to implement the remedial actions.
            ``(3) Technical assistance.--The Secretary shall provide 
        such technical assistance to enable the school and governing 
        body to carry out such remedial actions.
            ``(4) Hearing and appeal.--In addition to notice and 
        technical assistance under this subsection, the Secretary shall 
        provide to the school and governing body--
                    ``(A) at the request of the school or governing 
                body, a hearing on the record regarding the revocation 
                or reassumption determination, to be conducted under 
                the rules and regulations described in section 
                5206(f)(1)(C); and
                    ``(B) an opportunity to appeal the decision 
                resulting from the hearing.
    ``(d) Applicability of Section Pursuant to Election Under Section 
5209(b).--With respect to a tribally controlled school that receives 
assistance under this part pursuant to an election made under section 
5209(b)--
            ``(1) subsection (b) shall apply; and
            ``(2) the Secretary may not revoke eligibility for 
        assistance under this part except in conformance with 
        subsection (c).

``SEC. 5208. PAYMENT OF GRANTS; INVESTMENT OF FUNDS; STATE PAYMENTS TO 
              SCHOOLS.

    ``(a) Payments.--
            ``(1) Manner of payments.--
                    ``(A) In general.--Except as otherwise provided in 
                this subsection, the Secretary shall make payments to 
                grant recipients under this part in 2 payments, of 
                which--
                            ``(i) the first payment shall be made not 
                        later than July 1 of each year in an amount 
                        equal to 80 percent of the amount that the 
                        grant recipient was entitled to receive during 
                        the preceding academic year; and
                            ``(ii) the second payment, consisting of 
                        the remainder to which the grant recipient was 
                        entitled for the academic year, shall be made 
                        not later than December 1 of each year.
                    ``(B) Excess funding.--In a case in which the 
                amount provided to a grant recipient under subparagraph 
                (A)(i) is in excess of the amount that the recipient is 
                entitled to receive for the academic year involved, the 
                recipient shall return to the Secretary such excess 
                amount not later than 30 days after the final 
                determination that the school was overpaid pursuant to 
                this section. The amount returned to the Secretary 
                under this subparagraph shall be distributed equally to 
                all schools in the system.
            ``(2) Newly funded schools.--For any school for which no 
        payment under this part was made from Bureau funds in the 
        academic year preceding the year for which the payments are 
        being made, full payment of the amount computed for the school 
        for the first academic year of eligibility under this part 
        shall be made not later than December 1 of the academic year.
            ``(3) Late funding.--With regard to funds for grant 
        recipients under this part that become available for obligation 
        on October 1 of the fiscal year for which such funds are 
        appropriated, the Secretary shall make payments to the grant 
        recipients not later than December 1 of the fiscal year.
            ``(4) Applicability of certain title 31 provisions.--The 
        provisions of chapter 39 of title 31, United States Code, shall 
        apply to the payments required to be made under paragraphs (1), 
        (2), and (3).
            ``(5) Restrictions.--Payments made under paragraphs (1), 
        (2), and (3) shall be subject to any restriction on amounts of 
        payments under this part that is imposed by a continuing 
        resolution or other Act appropriating the funds involved.
    ``(b) Investment of Funds.--
            ``(1) Treatment of interest and investment income.--
        Notwithstanding any other provision of law, any interest or 
        investment income that accrues on or is derived from any funds 
        provided under this part for a school after such funds are paid 
        to an Indian tribe or tribal organization and before such funds 
        are expended for the purpose for which such funds were provided 
        under this part shall be the property of the Indian tribe or 
        tribal organization. The interest or income shall not be taken 
        into account by any officer or employee of the Federal 
        Government in determining whether to provide assistance, or the 
        amount of assistance to be provided, under any provision of 
        Federal law.
            ``(2) Permissible investments.--Funds provided under this 
        part may be invested by an Indian tribe or tribal organization, 
        as approved by the grantee, before such funds are expended for 
        the objectives of this part if such funds are--
                    ``(A) invested by the Indian tribe or tribal 
                organization only--
                            ``(i) in obligations of the United States;
                            ``(ii) in obligations or securities that 
                        are guaranteed or insured by the United States; 
                        or
                            ``(iii) in mutual (or other) funds that are 
                        registered with the Securities and Exchange 
                        Commission and that only invest in obligations 
                        of the United States, or securities that are 
                        guaranteed or insured by the United States; or
                    ``(B) deposited only into accounts that are insured 
                by an agency or instrumentality of the United States, 
                or are fully supported by collateral to ensure 
                protection of the funds, even in the event of a bank 
                failure.
    ``(c) Recoveries.--Funds received under this part shall not be 
taken into consideration by any Federal agency for the purposes of 
making underrecovery and overrecovery determinations for any other 
funds, from whatever source derived.
    ``(d) Payments by States.--
            ``(1) In general.--With respect to a school that receives 
        assistance under this part, a State shall not--
                    ``(A) take into account the amount of such 
                assistance in determining the amount of funds that such 
                school is eligible to receive under applicable State 
                law; or
                    ``(B) reduce any State payments that such school is 
                eligible to receive under applicable State law because 
                of the assistance received by the school under this 
                part.
            ``(2) Violations.--
                    ``(A) In general.--Upon receipt of any information 
                from any source that a State is in violation of 
                paragraph (1), the Secretary shall immediately, but in 
                no case later than 90 days after the receipt of such 
                information, conduct an investigation and make a 
                determination of whether such violation has occurred.
                    ``(B) Determination.--If the Secretary makes a 
                determination under subparagraph (A) that a State has 
                violated paragraph (1), the Secretary shall inform the 
                Secretary of Education of such determination and the 
                basis for the determination. The Secretary of Education 
                shall, in an expedient manner, pursue penalties under 
                paragraph (3) with respect to the State.
            ``(3) Penalties.--A State determined to have violated 
        paragraph (1) shall be subject to penalties similar to the 
        penalties described in section 8809(e) of the Elementary and 
        Secondary Education Act of 1965 for a violation of title VIII 
        of such Act.

``SEC. 5209. APPLICATION WITH RESPECT TO INDIAN SELF-DETERMINATION AND 
              EDUCATION ASSISTANCE ACT.

    ``(a) Certain Provisions To Apply to Grants.--The following 
provisions of the Indian Self-Determination and Education Assistance 
Act (and any subsequent revisions thereto or renumbering thereof), 
shall apply to grants provided under this part and the schools funded 
under such grants:
            ``(1) Section 5(f) (relating to single agency audits).
            ``(2) Section 6 (relating to criminal activities; 
        penalties).
            ``(3) Section 7 (relating to wage and labor standards).
            ``(4) Section 104 (relating to retention of Federal 
        employee coverage).
            ``(5) Section 105(f) (relating to Federal property).
            ``(6) Section 105(k) (relating to access to Federal sources 
        of supply).
            ``(7) Section 105(l) (relating to lease of facility used 
        for administration and delivery of services).
            ``(8) Section 106(f) (relating to limitation on remedies 
        relating to cost disallowances).
            ``(9) Section 106(j) (relating to use of funds for matching 
        or cost participation requirements).
            ``(10) Section 106(k) (relating to allowable uses of 
        funds).
            ``(11) The portions of section 108(c) that consist of model 
        agreements provisions 1(b)(5) (relating to limitations of 
        costs), 1(b)(7) (relating to records and monitoring), 1(b)(8) 
        (relating to property), and 1(b)(9) (relating to availability 
        of funds).
            ``(12) Section 109 (relating to reassumption).
            ``(13) Section 111 (relating to sovereign immunity and 
        trusteeship rights unaffected).
    ``(b) Election for Grant in Lieu of Contract.--
            ``(1) In general.--A contractor that carries out an 
        activity to which this part applies and who has entered into a 
        contract under the Indian Self-Determination and Education 
        Assistance Act that is in effect on the date of enactment of 
        the Native American Education Improvement Act of 2001 may, by 
        giving notice to the Secretary, elect to receive a grant under 
        this part in lieu of such contract and to have the provisions 
        of this part apply to such activity.
            ``(2) Effective date of election.--Any election made under 
        paragraph (1) shall take effect on the first day of July 
        immediately following the date of such election.
            ``(3) Exception.--In any case in which the first day of 
        July immediately following the date of an election under 
        paragraph (1) is less than 60 days after such election, such 
        election shall not take effect until the first day of July of 
        year following the year in which the election is made.
    ``(c) No Duplication.--No funds may be provided under any contract 
entered into under the Indian Self-Determination and Education 
Assistance Act to pay any expenses incurred in providing any program or 
services if a grant has been made under this part to pay such expenses.
    ``(d) Transfers and Carryovers.--
            ``(1) Buildings, equipment, supplies, materials.--A tribe 
        or tribal organization assuming the operation of--
                    ``(A) a Bureau school with assistance under this 
                part shall be entitled to the transfer or use of 
                buildings, equipment, supplies, and materials to the 
                same extent as if the tribe or tribal organization were 
                contracting under the Indian Self-Determination and 
                Education Assistance Act; or
                    ``(B) a contract school with assistance under this 
                part shall be entitled to the transfer or use of 
                buildings, equipment, supplies, and materials that were 
                used in the operation of the contract school to the 
                same extent as if the tribe or tribal organization were 
                contracting under such Act.
            ``(2) Funds.--Any tribe or tribal organization that assumes 
        operation of a Bureau school with assistance under this part 
        and any tribe or tribal organization that elects to operate a 
        school with assistance under this part rather than to continue 
        to operate the school as a contract school shall be entitled to 
        any funds that would remain available from the previous fiscal 
        year if such school remained a Bureau school or was operated as 
        a contract school, respectively.
            ``(3) Funding for school improvement.--Any tribe or tribal 
        organization that assumes operation of a Bureau school or a 
        contract school with assistance under this part shall be 
        eligible for funding for the improvement, alteration, 
        replacement, and repair of facilities to the same extent as a 
        Bureau school.
    ``(e) Exceptions, Problems, and Disputes.--
            ``(1) In general.--Any exception or problem cited in an 
        audit conducted pursuant to section 5207(b)(1)(B), any dispute 
        regarding a grant authorized to be made pursuant to this part 
        or any modification of such grant, and any dispute involving an 
        administrative cost grant under section 1127 of the Education 
        Amendments of 1978, shall be administered under the provisions 
        governing such exceptions, problems, or disputes described in 
        this paragraph in the case of contracts under the Indian Self-
        Determination and Education Assistance Act.
            ``(2) Administrative appeals.--The Equal Access to Justice 
        Act (as amended) and the amendments made by such Act, including 
        section 504 of title 5, and section 2412 of title 28, United 
        States Code, shall apply to an administrative appeal filed 
        after September 8, 1988, by a grant recipient regarding a grant 
        provided under this part, including an administrative cost 
        grant.

``SEC. 5210. ROLE OF THE DIRECTOR.

    ``Applications for grants under this part, and all modifications to 
the applications, shall be reviewed and approved by personnel under the 
direction and control of the Director of the Office of Indian Education 
Programs. Reports required under this part shall be submitted to 
education personnel under the direction and control of the Director of 
such Office.

``SEC. 5211. REGULATIONS.

    ``The Secretary is authorized to issue regulations relating to the 
discharge of duties specifically assigned to the Secretary in this 
part. For all other matters relating to the details of planning, 
developing, implementing, and evaluating grants under this part, the 
Secretary shall not issue regulations.

``SEC. 5212. THE TRIBALLY CONTROLLED GRANT SCHOOL ENDOWMENT PROGRAM.

    ``(a) In General.--
            ``(1) Establishment.--Each school receiving a grant under 
        this part may establish, at a federally insured financial 
        institution, a trust fund for the purposes of this section.
            ``(2) Deposits and use.--The school may provide--
                    ``(A) for deposit into the trust fund, only funds 
                from non-Federal sources, except that the interest on 
                funds received from grants provided under this part may 
                be used for that purpose;
                    ``(B) for deposit into the trust fund, any earnings 
                on funds deposited in the fund; and
                    ``(C) for the sole use of the school any noncash, 
                in-kind contributions of real or personal property, 
                which may at any time be used, sold, or otherwise 
                disposed of.
    ``(b) Interest.--Interest from the fund established under 
subsection (a) may periodically be withdrawn and used, at the 
discretion of the school, to defray any expenses associated with the 
operation of the school consistent with the purposes of this Act.

``SEC. 5213. DEFINITIONS.

    ``In this part:
            ``(1) Bureau.--The term `Bureau' means the Bureau of Indian 
        Affairs of the Department of the Interior.
            ``(2) Eligible indian student.--The term `eligible Indian 
        student' has the meaning given such term in section 1126(f) of 
        the Education Amendments of 1978.
            ``(3) Indian.--The term `Indian' means a member of an 
        Indian tribe, and includes individuals who are eligible for 
        membership in a tribe, and the child or grandchild of such an 
        individual.
            ``(4) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, nation, or other organized group or 
        community, including an Alaska Native Village Corporation or 
        Regional Corporation (as defined in or established pursuant to 
        the Alaskan Native Claims Settlement Act), which is recognized 
        as eligible for the special programs and services provided by 
        the United States to Indians because of their status as 
        Indians.
            ``(5) Local educational agency.--The term `local 
        educational agency' means a public board of education or other 
        public authority legally constituted within a State for either 
        administrative control or direction of, or to perform a service 
        function for, public elementary schools or secondary schools in 
        a city, county, township, school district, or other political 
        subdivision of a State or such combination of school districts 
        or counties as are recognized in a State as an administrative 
        agency for the State's public elementary schools or secondary 
        schools. Such term includes any other public institution or 
        agency having administrative control and direction of a public 
        elementary school or secondary school.
            ``(6) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
            ``(7) Tribal governing body.--The term `tribal governing 
        body' means, with respect to any school that receives 
        assistance under this Act, the recognized governing body of the 
        Indian tribe involved.
            ``(8) Tribal organization.--
                    ``(A) In general.--The term `tribal organization' 
                means--
                            ``(i) the recognized governing body of any 
                        Indian tribe; or
                            ``(ii) any legally established organization 
                        of Indians that--
                                    ``(I) is controlled, sanctioned, or 
                                chartered by such governing body or is 
                                democratically elected by the adult 
                                members of the Indian community to be 
                                served by such organization; and
                                    ``(II) includes the maximum 
                                participation of Indians in all phases 
                                of the organization's activities.
                    ``(B) Authorization.--In any case in which a grant 
                is provided under this part to an organization to 
                provide services through a tribally controlled school 
                benefiting more than 1 Indian tribe, the approval of 
                the governing bodies of Indian tribes representing 80 
                percent of the students attending the tribally 
                controlled school shall be considered a sufficient 
                tribal authorization for such grant.
            ``(9) Tribally controlled school.--The term `tribally 
        controlled school' means a school that--
                    ``(A) is operated by an Indian tribe or a tribal 
                organization, enrolling students in kindergarten 
                through grade 12, including a preschool;
                    ``(B) is not a local educational agency; and
                    ``(C) is not directly administered by the Bureau of 
                Indian Affairs.''.

SEC. 1222. LEASE PAYMENTS BY THE OJIBWA INDIAN SCHOOL.

    (a) In General.--Notwithstanding the Tribally Controlled Schools 
Act of 1988 (25 U.S.C. 2501 et seq.), or the regulations promulgated 
under such Act, the Ojibwa Indian School located in Belcourt, North 
Dakota, may use amounts received under such Act to enter into, and make 
payments under, a lease described in subsection (b).
    (b) Lease.--A lease described in this subsection is a lease that--
            (1) is entered into by the Ojibwa Indian School for the use 
        of facilities owned by St. Ann's Catholic Church located in 
        Belcourt, North Dakota;
            (2) is entered into in the 2001-2002 school year, or any 
        other school year in which the Ojibwa Indian School will use 
        such facilities for school purposes;
            (3) requires lease payments in an amount determined 
        appropriate by an independent lease appraiser that is selected 
        by the parties to the lease, except that such amount may not 
        exceed the maximum amount per square foot that is being paid by 
        the Bureau of Indian Affairs for other similarly situated 
        Indian schools under the Indian Self-Determination and 
        Education Assistance Act (Public Law 93-638); and
            (4) contains a waiver of the right of St. Ann's Catholic 
        Church to bring an action against the Ojibwa Indian School, the 
        Turtle Mountain Band of Chippewa, or the Federal Government for 
        the recovery of any amounts remaining unpaid under leases 
        entered into prior to the date of enactment of this Act.
    (c) Method of Funding.--Amounts shall be made available by the 
Bureau of Indian Affairs to make lease payments under this section in 
the same manner as amounts are made available to make payments under 
leases entered into by Indian schools under the Indian Self-
Determination and Education Assistance Act (Public Law 93-638).
    (d) Operation and Maintenance Funding.--The Bureau of Indian 
Affairs shall provide funding for the operation and maintenance of the 
facilities and property used by the Ojibwa Indian School under the 
lease entered into under subsection (a) so long as such facilities and 
property are being used by the School for educational purposes.

SEC. 1223. ENROLLMENT AND GENERAL ASSISTANCE PAYMENTS.

    Section 5404(a) of the Augustus F. Hawkins-Robert T. Stafford 
Elementary and Secondary School Improvement Amendments Act of 1988 (25 
U.S.C. 13d-2(a)) is amended--
            (1) by striking the matter preceding paragraph (1) and 
        inserting the following:
    ``(a) In General.--The Secretary of the Interior shall not 
disqualify from continued receipt of general assistance payments from 
the Bureau of Indian Affairs an otherwise eligible Indian for whom the 
Bureau is making or may make general assistance payments (or exclude 
such an individual from continued consideration in determining the 
amount of general assistance payments for a household) because the 
individual is enrolled (and is making satisfactory progress toward 
completion of a program or training that can reasonably be expected to 
lead to gainful employment) for at least half-time study or training 
in--''; and
            (2) by striking paragraph (4), and inserting the following:
            ``(4) other programs or training approved by the Secretary 
        or by tribal education, employment or training programs.''.

          TITLE XIII--EQUAL ACCESS TO PUBLIC SCHOOL FACILITIES

SEC. 1301. SHORT TITLE.

    This title may be cited as the ``Boy Scouts of America Equal Access 
Act''.

SEC. 1302. EQUAL ACCESS.

    (a) In General.--Notwithstanding any other provision of law, no 
funds made available through the Department of Education shall be 
provided to any public elementary school, public secondary school, 
local educational agency, or State educational agency, if the school or 
a school served by the agency--
            (1) has a designated open forum; and
            (2) denies equal access or a fair opportunity to meet to, 
        or discriminates against, any group affiliated with the Boy 
        Scouts of America or any other youth group listed in title 36 
        of the United States Code as a patriotic society, that wishes 
        to conduct a meeting within that designated open forum, on the 
        basis of the membership or leadership criteria of the Boy 
        Scouts of America or of the youth group that prohibit the 
        acceptance of homosexuals, or individuals who reject the Boy 
        Scouts' or the youth group's oath of allegiance to God and 
        country, as members or leaders.
    (b) Termination of Assistance and Other Action.--
            (1) Departmental action.--The Secretary is authorized and 
        directed to effectuate subsection (a) by issuing, and securing 
        compliance with, rules or orders with respect to a public 
        school or agency that receives funds made available through the 
        Department of Education and that denies equal access, or a fair 
        opportunity to meet, or discriminates, as described in 
        subsection (a).
            (2) Procedure.--The Secretary shall issue and secure 
        compliance with the rules or orders, under paragraph (1), in a 
        manner consistent with the procedure used by a Federal 
        department or agency under section 602 of the Civil Rights Act 
        of 1964 (42 U.S.C. 2000d-1).
            (3) Judicial review.--Any action taken by the Secretary 
        under paragraph (1) shall be subject to the judicial review 
        described in section 603 of that Act (42 U.S.C. 2000d-2). Any 
        person aggrieved by the action may obtain that judicial review 
        in the manner, and to the extent, provided in section 603 of 
        that Act.
    (c) Definitions and Rule.--
            (1) Definitions.--In this section:
                    (A) Elementary school; local educational agency; 
                secondary school; state educational agency.--The terms 
                ``elementary school'', ``local educational agency'', 
                ``secondary school'', and ``State educational agency'' 
                have the meanings given the terms in section 3 of the 
                Elementary and Secondary Education Act of 1965.
                    (B) Secretary.--The term ``Secretary'' means the 
                Secretary of Education, acting through the Assistant 
                Secretary for Civil Rights of the Department of 
                Education.
                    (C) Youth group.--The term ``youth group'' means 
                any group or organization intended to serve young 
                people under the age of 21 and which is listed in title 
                36 of the United States Code as a patriotic society.
            (2) Rule.--For purposes of this section, an elementary 
        school or secondary school has a designated open forum whenever 
        the school involved grants an offering to or opportunity for 1 
        or more youth or community groups to meet on school premises or 
        in school facilities before or after the hours during which 
        attendance at the school is compulsory.

SEC. 1303. EFFECTIVE DATE.

    This title takes effect 1 day after the date of enactment of this 
Act.

                TITLE XIV--INDIVIDUALS WITH DISABILITIES

SEC. 1401. DISCIPLINE.

    Section 615 of the Individuals with Disabilities Education Act (20 
U.S.C. 1415) is amended by adding at the end the following:
    ``(n) Uniform Policies.--
            ``(1) In general.--Subject to paragraph (2), and 
        notwithstanding any other provision of this Act, a State 
        educational agency or local educational agency may establish 
        and implement uniform policies regarding discipline and order 
        applicable to all children under the jurisdiction of the agency 
        to ensure the safety of such children and an appropriate 
        educational atmosphere in the schools under the jurisdiction of 
        the agency.
            ``(2) Limitation.--
                    ``(A) In general.--A child with a disability who is 
                removed from the child's regular educational placement 
                under paragraph (1) shall receive a free appropriate 
                public education which may be provided in an 
                alternative educational setting if the behavior that 
                led to the child's removal is a manifestation of the 
                child's disability, as determined under subparagraphs 
                (B) and (C) of subsection (k)(4).
                    ``(B) Manifestation determination.--The 
                manifestation determination shall be made immediately, 
                if possible, but in no case later than 10 school days 
                after school personnel decide to remove the child with 
                a disability from the child's regular educational 
                placement.
                    ``(C) Determination that behavior was not 
                manifestation of disability.--If the result of the 
                manifestation review is a determination that the 
                behavior of the child with a disability was not a 
                manifestation of the child's disability, appropriate 
                school personnel may apply to the child the same 
                relevant disciplinary procedures as would apply to 
                children without a disability.'' .

SEC. 1402. PROCEDURAL SAFEGUARDS.

    Section 615 of the Individuals with Disabilities Education Act (20 
U.S.C. 1415) (as amended by section 1401) is amended by adding at the 
end the following:
    ``(o) Discipline Determinations by Local Authority.--
            ``(1) Individual determinations.--In carrying out any 
        disciplinary policy described in subsection (n)(1), school 
        personnel shall have discretion to consider all germane factors 
        in each individual case and modify any disciplinary action on a 
        case-by-case basis.
            ``(2) Defense.--Nothing in subsection (n) precludes a child 
        with a disability who is disciplined under such subsection from 
        asserting a defense that the alleged act was unintentional or 
        innocent.
            ``(3) Limitation.--
                    ``(A) Review of manifestation determination.--If 
                the parents or the local educational agency disagree 
                with a manifestation determination under subsection 
                (n)(2), the parents or the agency may request a review 
                of that determination through the procedures described 
                in subsections (f) through (i).
                    ``(B) Placement during review.--During the course 
                of any review proceedings under subparagraph (A), the 
                child shall receive a free appropriate public education 
                which may be provided in an alternative educational 
                placement.''.

SEC. 1403. ALTERNATIVE EDUCATION FOR CHILDREN WITH DISABILITIES.

    (a) In General.--At the written request of a parent (as defined in 
section 602(19)(A) of the Individuals with Disabilities Education Act) 
of a child with a disability (as defined in section 602(3) of such 
Act), a local educational agency in which the child resides, or a State 
educational agency that is responsible for educating the child, may 
transfer the child to any accredited school that--
            (1) is specifically designed to serve children with 
        disabilities;
            (2) is selected by the child's parents;
            (3) agrees to accept the child; and
            (4) carries out a program that the local educational 
        agency, or State educational agency, if appropriate, determines 
        will benefit the child.
    (b) Payment to School; Limitation on Further Responsibility.--
            (1) In general.--For each year for which a child with a 
        disability attends a school pursuant to subsection (a), the 
        local educational agency or State educational agency shall pay 
        the school, from amounts available to the agency under part B 
        of the Individuals with Disabilities Education Act, an amount 
        equal to the per-pupil expenditure for all children in its 
        public elementary and secondary schools, or, in the case of a 
        State educational agency, the average per-pupil expenditure for 
        the State, as defined in section 3(2) of the Elementary and 
        Secondary Education Act of 1965.
            (2) Transfer.--Notwithstanding any other provision of law, 
        a local educational agency or State educational agency that 
        transfers a child with a disability to a school under 
        subsection (a) shall have no other responsibility for the 
        education of the child while the child attends that school.
    (c) Use of Funds; Additional Charges to Parents.--A school 
receiving funds under subsection (b)(1)--
            (1) shall use the funds only to meet the costs of the 
        child's attendance at the school; and
            (2) may, notwithstanding any other provision of law, charge 
        the child's parents for the costs of the child's attendance at 
        the school that exceed the amount of those funds.

           TITLE XV--EQUAL ACCESS TO PUBLIC SCHOOL FACILITIES

SEC. 1501. SHORT TITLE.

     This title may be cited as the ``Equal Access to Public School 
Facilities Act''.

SEC. 1502. EQUAL ACCESS.

     No public elementary school, public secondary school, local 
educational agency, or State educational agency may deny equal access 
or a fair opportunity to meet after school in a designated open forum 
to any youth group listed in title 36 of the United States Code as a 
patriotic society, including the Boy Scouts of America, based on that 
group's favorable or unfavorable position concerning sexual 
orientation.

         TITLE XVI--EDUCATION PROGRAMS OF NATIONAL SIGNIFICANCE

SEC. 1601. AMENDMENT TO THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 
              1965.

    The Act (20 U.S.C. 6301 et seq.) is amended by adding at the end 
the following:

        ``TITLE XI--EDUCATION PROGRAMS OF NATIONAL SIGNIFICANCE

``PART A--READING IS FUNDAMENTAL--INEXPENSIVE BOOK DISTRIBUTION PROGRAM

``SEC. 11101. INEXPENSIVE BOOK DISTRIBUTION PROGRAM FOR READING 
              MOTIVATION.

    ``(a) Purpose.--The purpose of this section is to establish and 
implement a model partnership between a governmental entity and a 
private entity, to help prepare young children for reading and motivate 
older children to read, through the distribution of inexpensive books. 
Local reading motivation programs assisted under this section shall use 
such assistance to provide books, training for volunteers, motivational 
activities, and other essential literacy resources, and shall assign 
the highest priority to serving the youngest and neediest children in 
the United States.
    ``(b) 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 young and school age 
children, that motivate children to read.
    ``(c) Requirements of Contract.--Any contract entered into under 
subsection (b) 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 
        training and 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.
    ``(d) 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.
    ``(e) Special Rules for Certain Subcontractors.--
            ``(1) Funds from other federal sources.--Subcontractors 
        operating programs under this section in low-income communities 
        with a substantial number or percentage of children with 
        special needs, as described in subsection (c)(3), may use funds 
        from other Federal sources to pay the non-Federal share of the 
        cost of the program, if those funds do not comprise more than 
        50 percent of the non-Federal share of the funds used for the 
        cost of acquiring and distributing books.
            ``(2) Waiver authority.--Notwithstanding subsection (c), 
        the contractor may waive, in whole or in part, the requirement 
        in subsection (c)(1) for a subcontractor, if the subcontractor 
        demonstrates that it would otherwise not be able to participate 
        in the program, and enters into an agreement with the 
        contractor with respect to the amount of the non-Federal share 
        to which the waiver will apply. In a case in which such a 
        waiver is granted, the requirement in subsection (c)(2) shall 
        not apply.
    ``(f) Multi-Year Contracts.--The contractor may enter into a multi-
year subcontract under this section, if--
            ``(1) the contractor believes that such subcontract will 
        provide the subcontractor with additional leverage in seeking 
        local commitments; and
            ``(2) the subcontract does not undermine the finances of 
        the national program.
    ``(g) 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.
    ``(h) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated $25,000,000 
for fiscal year 2002 and such sums as may be necessary for each of the 
6 succeeding fiscal years.

                   ``PART B--NATIONAL WRITING PROJECT

``SEC. 11151. FINDINGS AND PURPOSES.

    ``(a) Findings.--Congress finds that--
            ``(1) the United States faces a continuing crisis in 
        writing in schools and in the workplace;
            ``(2) the writing problem has been magnified by the rapidly 
        changing student population, the growing number of at-risk 
        students due to limited English proficiency, the shortage of 
        adequately trained teachers, and the specialized knowledge 
        required of teachers to teach students with special needs who 
        are now part of mainstream classrooms;
            ``(3) nationwide reports from universities and colleges 
        show that entering students are unable to meet the demands of 
        college level writing, almost all 2-year institutions of higher 
        education offer remedial writing courses, and three-quarters of 
        public 4-year institutions of higher education and half of all 
        private 4-year institutions of higher education must provide 
        remedial courses in writing;
            ``(4) American businesses and corporations are concerned 
        about the limited writing skills of both entry-level workers 
        and executives whose promotions are denied due to inadequate 
        writing abilities;
            ``(5) writing is fundamental to learning, including 
        learning to read, yet writing has been neglected historically 
        in schools and in teacher training institutions;
            ``(6) writing is a central feature in State and school 
        district education standards in all disciplines;
            ``(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, the goals of which are to improve student achievement 
        in writing and student learning through improving the teaching 
        and uses of writing at all grade levels and in all disciplines;
            ``(8) the National Writing Project is a nationally 
        recognized and honored nonprofit organization that improves the 
        quality of teaching and teachers through developing teacher-
        leaders who teach other teachers in summer and school year 
        programs;
            ``(9) evaluations of the National Writing Project document 
        the positive impact the project has had on improving the 
        teaching of writing, student performance in writing, and 
        student learning;
            ``(10) the National Writing Project has become a model for 
        programs to improve teaching in such other fields as 
        mathematics, science, history, reading and literature, 
        performing arts, and foreign languages;
            ``(11) each year, over 150,000 participants benefit from 
        National Writing Project programs in 1 of 156 United States 
        sites located in 46 States and the Commonwealth of Puerto Rico; 
        and
            ``(12) the National Writing Project is a cost-effective 
        program and leverages over 6 dollars for every 1 Federal 
        dollar.
    ``(b) Purpose.--It is the purpose of this part--
            ``(1) to support and promote the expansion of the National 
        Writing Project network of sites so that teachers in every 
        region of the United States will have access to a National 
        Writing Project program;
            ``(2) to ensure the consistent high quality of the sites 
        through ongoing review, evaluation and technical assistance;
            ``(3) to support and promote the establishment of programs 
        to disseminate effective practices and research findings about 
        the teaching of writing; and
            ``(4) to coordinate activities assisted under this part 
        with activities assisted under this Act.

``SEC. 11152. NATIONAL WRITING PROJECT.

    ``(a) Authorization.--The Secretary is authorized to award a grant 
to the National Writing Project, a nonprofit educational organization 
that has as its primary purpose the improvement of the quality of 
student writing and learning (hereafter in this section referred to as 
the `grantee') to improve the teaching of writing and the use of 
writing as a part of the learning process in our Nation's classrooms.
    ``(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 (e) 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 $100,000 for any one contractor, or $200,000 for a 
        statewide program administered by any one contractor in at 
        least 5 sites throughout the State.
    ``(e) 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 determines 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.
    ``(f) Evaluation.--
            ``(1) In general.--The Secretary shall conduct an 
        independent evaluation by grant or contract of the teacher 
        training programs administered pursuant to this part. 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 Congress.
            ``(2) Funding limitation.--The Secretary shall reserve not 
        more than $150,000 from the total amount appropriated pursuant 
        to the authority of subsection (h) for fiscal year 2002 and the 
        6 succeeding fiscal years to conduct the evaluation described 
        in paragraph (1).
    ``(g) 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.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated for the grant to the National Writing Project, $15,000,000 
for fiscal year 2002, and such sums as may be necessary for each of the 
6 succeeding fiscal years, to carry out the provisions of this section.

                ``PART C--READY TO LEARN; READY TO TEACH

                      ``Subpart 1--Ready to Learn

``SEC. 11201. SHORT TITLE; FINDINGS.

    ``(a) Short Title.--This part may be cited as the `Ready to Learn, 
Ready to Teach Act of 2001'.
    ``(b) Findings.--Congress makes the following findings:
            ``(1) In 1994, Congress and the Department collaborated to 
        make a long-term, meaningful and public investment in the 
        principle that high quality preschool television programming 
        will help children be ready to learn by the time the children 
        entered first grade.
            ``(2) The Ready to Learn Television Program through the 
        Public Broadcasting Service (PBS) and local public television 
        stations has proven to be an extremely cost-effective national 
        response to improving early childhood cognitive development and 
        helping parents, caregivers, and professional child care 
        providers learn how to use television as a means to help 
        children learn and develop social skills and values.
            ``(3) Independent research shows that parents who 
        participate in Ready to Learn workshops are more selective of 
        the programs that they choose for their children, limit the 
        number of hours of television viewing of their children, and 
        use the television programs as a catalyst for learning.
            ``(4) The Ready to Learn (RTL) Television Program is 
        supporting and creating commercial-free broadcast programs for 
        young children that are of the highest possible educational 
        quality.
            ``(5) Through the Nation's 350 local public television 
        stations, these programs and other programming elements reach 
        tens of millions of children, their parents, and caregivers 
        without regard to their economic circumstances, location, or 
        access to cable. Public television is a partner with Federal 
        policy to make television an instrument of preschool children's 
        education and early development.
            ``(6) The Ready to Learn Television Program supports 
        thousands of local workshops organized and run by local public 
        television stations, child care service providers, Head Start 
        Centers, Even Start family literacy centers and schools. These 
        workshops have trained 630,587 parents and professionals who, 
        in turn, serve and support over 6,312,000 children across the 
        Nation.
            ``(7) The Ready to Learn Television Program has published 
        and distributed a periodic magazine entitled `PBS Families' 
        that contains developmentally appropriate material to 
        strengthen reading skills and enhance family literacy.
            ``(8) Ready to Learn Television stations also have 
        distributed millions of age-appropriate books in their 
        communities. Each station receives a minimum of 300 books each 
        month for free local distribution. Some stations are now 
        distributing more than 1,000 books per month. Nationwide, more 
        than 653,494 books have been distributed in low-income and 
        disadvantaged neighborhoods free of charge.
            ``(9) Demand for Ready To Learn Television Program outreach 
        and training has increased from 10 Public Broadcasting Service 
        stations to 133 stations in 5 years. This growth has put a 
        strain on available resources resulting in an inability to meet 
        the demand for the service and to reach all the children who 
        would benefit from the service.
            ``(10) Federal policy played a crucial role in the 
        evolution of analog television by funding the television 
        program entitled `Sesame Street' in the 1960's. Federal policy 
        should continue to play an equally crucial role for children in 
        the digital television age.

``SEC. 11202. READY TO LEARN.

    ``(a) In General.--The Secretary is authorized to award grants to 
eligible entities described in section 11203(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, the Secretary shall 
ensure that eligible entities 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. 11203. EDUCATIONAL PROGRAMMING.

    ``(a) Awards.--The Secretary shall award grants under section 11202 
to eligible entities to--
            ``(1) facilitate the development directly, or through 
        contracts with producers of children and family educational 
        television programming, of--
                    ``(A) educational programming for preschool and 
                elementary school children; and
                    ``(B) accompanying support materials and services 
                that promote the effective use of such programming;
            ``(2) facilitate the development of programming and digital 
        content especially designed for nationwide distribution over 
        public television stations' digital broadcasting channels and 
        the Internet, containing Ready to Learn-based children's 
        programming and resources for parents and caregivers; and
            ``(3) enable eligible entities to contract with entities 
        (such as public telecommunications entities) so that programs 
        developed under this section are disseminated and distributed--
                    (A) to the widest possible audience appropriate to 
                be served by the programming; and
                    (B) by the most appropriate distribution 
                technologies.
    ``(b) Eligible Entities.--To be eligible to receive a grant under 
subsection (a), an entity shall be--
            ``(1) a public telecommunications entity that is able to 
        demonstrate a capacity for the development and national 
        distribution of educational and instructional television 
        programming of high quality for preschool and elementary school 
        children;
            ``(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; and
            ``(3) able to demonstrate a capacity to localize 
        programming and materials to meet specific State and local 
        needs and provide educational outreach at the local level.
    ``(c) Cultural Experiences.--Programming developed under this 
section shall reflect the recognition of rural and urban cultural and 
ethnic diversity of the Nation's children and the needs of both boys 
and girls in preparing young children for success in school.

``SEC. 11204. DUTIES OF SECRETARY.

    ``The Secretary is authorized--
            ``(1) to award grants to eligible entities described in 
        section 11203(b), local public television stations, or such 
        public television stations that are part of a consortium with 1 
        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 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;
                    ``(D) developing and disseminating education and 
                training materials, including--
                            ``(i) 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;
                            ``(ii) teacher training and professional 
                        development to ensure qualified caregivers; and
                            ``(iii) support materials to promote the 
                        effective use of materials developed under 
                        subparagraph (B) among parents, Head Start 
                        providers, in-home and center-based daycare 
                        providers, early childhood development 
                        personnel, elementary school teachers, public 
                        libraries, and after-school program personnel 
                        caring for preschool and elementary school 
                        children; and
                    ``(E) distributing books to low-income individuals 
                to leverage high-quality television programming;
            ``(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 
        subpart to parents, child care providers, and other appropriate 
        individuals or entities to assist such individuals and entities 
        in accessing programs and projects under this subpart; and
            ``(3) to coordinate activities assisted under this subpart 
        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 
                programs under the Head Start Act and 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 (1)(D) to enhance parent and child care 
                provider skills in early childhood development and 
                education.

``SEC. 11205. APPLICATIONS.

    ``Each entity desiring a grant under section 11202 or 11204 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. 11206. REPORTS AND EVALUATION.

    ``(a) Annual Report to Secretary.--An eligible entity receiving 
funds under section 11202 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 section 11202, including--
            ``(1) the programming that has been developed directly or 
        indirectly by the eligible 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 eligible entity to 
        develop public-private partnerships to secure non-Federal 
        support for the development, 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 activities assisted under section 
        11203(a); and
            ``(2) a description of the training materials made 
        available under section 11204(1)(D), 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. 11207. ADMINISTRATIVE COSTS.

    ``With respect to the implementation of section 11203, eligible 
entities receiving a grant 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.

``SEC. 11208. DEFINITION.

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

``SEC. 11209. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this subpart, $50,000,000 for fiscal year 2002, and such sums as 
may be necessary for each of the 6 succeeding fiscal years.
    ``(b) Funding Rule.--Not less than 60 percent of the amounts 
appropriated under subsection (a) for each fiscal year shall be used to 
carry out section 11203.

                      ``Subpart 2--Ready to Teach

``SEC. 11251. FINDINGS.

    ``Congress makes the following findings:
            ``(1) Since 1995, the Telecommunications Demonstration 
        Project for Mathematics (as established under this part 
        pursuant to the Improving America's Schools Act of 1994) has 
        allowed the Public Broadcasting Service to pioneer and refine a 
        new model of teacher professional development for kindergarten 
        through grade 12 teachers. Video modeling of standards-based 
        lessons, combined with professionally facilitated online 
        learning communities of teachers has been proven to help 
        mathematics teachers adopt and implement standards-based 
        practices. This integrated, self-paced approach breaks down the 
        isolation of classroom teaching while making standards-based 
        best practices available to all participants.
            ``(2) More than 5,800 teachers have participated over the 
        last 3 years in the demonstration. These teachers have taught 
        more than 1,500,000 students cumulatively.
            ``(3) Independent evaluations indicate that teaching 
        improves and students benefit as a result of the program.
            ``(4) The demonstration program should be expanded to reach 
        more teachers in more subject areas under the title of 
        Teacherline. The Teacherline Program will link the digitized 
        public broadcasting infrastructure with education networks by 
        working with the program's digital membership, and Federal and 
        State agencies, to expand and build upon the successful model 
        and take advantage of greatly expanded access to the Internet 
        and technology in schools, including digital television. The 
        Teacherline Program will leverage the Public Broadcasting 
        Service's historic relationships with higher education to 
        improve preservice teacher training.
            ``(5) Over the past several years tremendous progress has 
        been made in wiring classrooms, equipping the classrooms with 
        multimedia computers, and connecting the classrooms to the 
        Internet.
            ``(6) There is a great need for high quality, curriculum-
        based digital content for teachers and students to easily 
        access and use in order to meet State and local standards for 
        student performance.
            ``(7) The congressionally appointed Web-based Education 
        Commission called for the development of high quality public-
        private online educational content that meets the highest 
        standards of educational excellence.
            ``(8) Most local public television stations and State 
        networks provide high-quality video programs, and teacher 
        professional development, as a part of their mission to serve 
        local schools. Programs distributed by public broadcast 
        stations are used by more classroom teachers than any other 
        because of their high quality and relevance to the curriculum.
            ``(9) Digital broadcasting can dramatically increase and 
        improve the types of services public broadcasting stations can 
        offer kindergarten through grade 12 schools.

``SEC. 11252. PROJECT AUTHORIZED.

    ``(a) Grants 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 program to improve teaching in core curriculum 
areas. The program shall be designed to assist elementary school and 
secondary school teachers in preparing all students for achieving State 
and local content standards in core curriculum areas.
    ``(b) Programming.--The Secretary is also authorized to award 
grants to eligible entities described in section 11254(b) to develop, 
produce, and distribute innovative educational and instructional video 
programming that is designed for use by kindergarten through grade 12 
schools and based on State and local standards. In making the grants, 
the Secretary shall ensure that eligible entities enter into multiyear 
content development collaborative arrangements with State educational 
agencies, local educational agencies, institutions of higher education, 
businesses, or other agencies and organizations.

``SEC. 11253. APPLICATION REQUIRED.

    ``(a) In General.--Each nonprofit telecommunications entity, or 
partnership of such entities, desiring a grant under section 11252(a) 
shall submit an application to the Secretary. Each such application 
shall--
            ``(1) demonstrate that the applicant will use the public 
        broadcasting infrastructure and school digital networks, where 
        available, to deliver video and data in an integrated service 
        to train teachers in the use of standards-based curricula 
        materials and learning technologies;
            ``(2) ensure that the project for which assistance is 
        sought will be conducted in cooperation with appropriate State 
        educational agencies, local educational agencies, national, 
        State or local nonprofit public telecommunications entities, 
        and national education professional associations that have 
        developed content standards in the subject areas;
            ``(3) ensure that a significant portion of the benefits 
        available for elementary schools 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) Sites.--In approving applications under section 11252(a), the 
Secretary shall ensure that the program authorized by section 11252(a) 
is conducted at elementary school and secondary school sites across the 
Nation.
    ``(c) Application.--Each eligible entity desiring a grant under 
section 11252(b) 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. 11254. REPORTS AND EVALUATION.

    ``An eligible entity receiving funds under section 11252(a) 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 described the program activities undertaken with funds received 
under section 11252(a), including--
            ``(1) the core curriculum areas for which program 
        activities have been undertaken and the number of teachers 
        using the program in each core curriculum area; and
            ``(2) the States in which teachers using the program are 
        located.

``SEC. 11255. EDUCATIONAL PROGRAMMING.

    ``(a) Awards.--The Secretary shall award grants under section 
11252(b) to eligible entities to facilitate the development of 
educational programming that shall--
            ``(1) include student assessment tools to give feedback on 
        student performance;
            ``(2) include built-in teacher utilization and support 
        components to ensure that teachers understand and can easily 
        use the content of the programming with group instruction or 
        for individual student use;
            ``(3) be created for, or adaptable to, State and local 
        content standards; and
            ``(4) be capable of distribution through digital 
        broadcasting and school digital networks.
    ``(b) Eligible Entities.--To be eligible to receive a grant under 
section 11252(b), an entity shall be a local public telecommunications 
entity as defined by section 397(12) of the Communications Act of 1934 
that is able to demonstrate a capacity for the development and 
distribution of educational and instructional television programming of 
high quality.
    ``(c) Competitive Basis.--Grants under section 11252(b) shall be 
awarded on a competitive basis as determined by the Secretary.
    ``(d) Duration.--Each grant under section 11252(b) shall be awarded 
for a period of 3 years in order to allow time for the creation of a 
substantial body of significant content.

``SEC. 11256. MATCHING REQUIREMENT.

    ``Each eligible entity desiring a grant under section 11252(b) 
shall contribute to the activities assisted under section 11252(b) non-
Federal matching funds equal to not less than 100 percent of the amount 
of the grant. Matching funds may include funds provided for the 
transition to digital broadcasting, as well as in-kind contributions.

``SEC. 11257. ADMINISTRATIVE COSTS.

    ``With respect to the implementation of section 11252(b), entities 
receiving a grant from the Secretary may use not more than 5 percent of 
the amounts received under the grant for the normal and customary 
expenses of administering the grant.

``SEC. 11258. AUTHORIZATION OF APPROPRIATIONS; FUNDING RULES.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this subpart, $45,000,000 for the fiscal year 2002, and such sums 
as may be necessary for each of the 6 succeeding fiscal years.
    ``(b) Funding Rule.--For any fiscal year in which appropriations 
for section 11252 exceed the amount appropriated for such section for 
the preceding fiscal year, the Secretary shall only award the amount of 
such excess minus at least $500,000 to applicants under section 
11252(b).

                   ``PART D--EDUCATION FOR DEMOCRACY

``SEC. 11301. SHORT TITLE.

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

``SEC. 11302. FINDINGS.

    ``Congress finds that--
            ``(1) college freshmen surveyed in 1999 by the Higher 
        Education Research Institute at the University of California at 
        Los Angeles demonstrated higher levels of disengagement, both 
        academically and politically, than any previous entering class 
        of students;
            ``(2) college freshmen in 1999 demonstrated the lowest 
        levels of political interest in the 20-year history of surveys 
        conducted by the Higher Education Research Institute at the 
        University of California at Los Angeles;
            ``(3) United States secondary school students expressed 
        relatively low levels of interest in politics and economics in 
        a 1999 Harris survey;
            ``(4) the 32d Annual Phi Delta Kappa/Gallup Poll of 2000 
        indicated that preparing students to become responsible 
        citizens was the most important purpose of public schools;
            ``(5) Americans surveyed by the Organization of Economic 
        Cooperation and Development indicated that only 59 percent had 
        confidence that schools have a major effect on the development 
        of good citizenship;
            ``(6) teachers too often do not have sufficient expertise 
        in the subjects that they teach, and half of all secondary 
        school history students in America are being taught by teachers 
        with neither a major nor a minor in history;
            ``(7) secondary school students correctly answered less 
        than half of the questions on a national test of economic 
        knowledge in a 1999 Harris survey;
            ``(8) the 1998 National Assessment of Educational Progress 
        indicated that students have only superficial knowledge of, and 
        lacked a depth of understanding regarding, civics;
            ``(9) civic and economic education are important not only 
        to developing citizenship competencies in the United States but 
        also are critical to supporting political stability and 
        economic health in other democracies, particularly emerging 
        democratic market economies;
            ``(10) more than three quarters of Americans surveyed by 
        the National Constitution Center in 1997 admitted that they 
        knew only some or very little about the Constitution of the 
        United States; and
            ``(11) the Constitution of the United States is too often 
        viewed within the context of history and not as a living 
        document that shapes current events.

``SEC. 11303. PURPOSE.

    ``It is the purpose of this part--
            ``(1) to improve the quality of civics and government 
        education by educating students about the history and 
        principles of the Constitution of the United States, including 
        the Bill of Rights;
            ``(2) to foster civic competence and responsibility; and
            ``(3) to improve the quality of civic education and 
        economic education through cooperative civic education and 
        economic education exchange programs with emerging democracies.

``SEC. 11304. GENERAL AUTHORITY.

    ``(a) Grants and Contracts.--
            ``(1) In general.--The Secretary is authorized to award 
        grants to or enter into contracts with--
                    ``(A) the Center for Civic Education to carry out 
                civic education activities under sections 11305 and 
                11306; and
                    ``(B) the National Council on Economic Education to 
                carry out economic education activities under section 
                11306.
            ``(2) Consultation.--The Secretary shall award the grants 
        and contracts under this part in consultation with the 
        Secretary of State.
    ``(b) Distribution.--The Secretary shall use not more than 50 
percent of the amount appropriated under section 11307(b) for each 
fiscal year to carry out economic education activities under section 
11306.

``SEC. 11305. WE THE PEOPLE PROGRAM.

    ``(a) The Citizen and the Constitution.--
            ``(1) In general.--The Center for Civic Education shall use 
        funds awarded under section 11304(a)(1)(A) to carry out The 
        Citizen and the Constitution program in accordance with this 
        subsection.
            ``(2) Educational activities.--The Citizen and the 
        Constitution program--
                    ``(A) shall continue and expand the educational 
                activities of the `We the People . . . The Citizen and 
                the Constitution' program administered by the Center 
                for Civic Education;
                    ``(B) shall enhance student attainment of 
                challenging content standards in civics and government;
                    ``(C) shall provide a course of instruction on the 
                basic principles of our Nation's constitutional 
                democracy and the history of the Constitution of the 
                United States and the Bill of Rights;
                    ``(D) shall provide, at the request of a 
                participating school, school and community simulated 
                congressional hearings following the course of study;
                    ``(E) shall provide an annual national competition 
                of simulated congressional hearings for secondary 
                school students who wish to participate in such a 
                program; and
                    ``(F) shall provide--
                            ``(i) advanced sustained and ongoing 
                        training of teachers about the Constitution of 
                        the United States and the political system the 
                        United States created;
                            ``(ii) materials and methods of 
                        instruction, including teacher training, that 
                        utilize the latest advancements in educational 
                        technology; and
                            ``(iii) civic education materials and 
                        services to address specific problems such as 
                        the prevention of school violence and the abuse 
                        of drugs and alcohol.
            ``(3) Availability of program.--The education program 
        authorized under this subsection shall be made available to 
        public and private elementary schools and secondary schools, 
        including Bureau funded schools, in the 435 congressional 
        districts, and in the District of Columbia, the Commonwealth of 
        Puerto Rico, the United States Virgin Islands, Guam, American 
        Samoa, and the Commonwealth of the Northern Mariana Islands.
    ``(b) Project Citizen.--
            ``(1) In general.--The Center for Civic Education shall use 
        funds awarded under section 11304(a)(1)(A) to carry out The 
        Project Citizen program in accordance with this subsection.
            ``(2) Educational activities.--The Project Citizen 
        program--
                    ``(A) shall continue and expand the educational 
                activities of the `We the People . . . Project Citizen' 
                program administered by the Center for Civic Education;
                    ``(B) shall enhance student attainment of 
                challenging content standards in civics and government;
                    ``(C) shall provide 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 of the United States;
                    ``(D) shall provide an annual national showcase or 
                competition; and
                    ``(E) shall provide--
                            ``(i) optional school and community 
                        simulated State legislative hearings;
                            ``(ii) advanced sustained and ongoing 
                        training of teachers on the roles of State and 
                        local governments in the Federal system 
                        established by the Constitution of the United 
                        States;
                            ``(iii) materials and methods of 
                        instruction, including teacher training, that 
                        utilize the latest advancements in educational 
                        technology; and
                            ``(iv) civic education materials and 
                        services to address specific problems such as 
                        the prevention of school violence and the abuse 
                        of drugs and alcohol.
            ``(3) Availability of program.--The education program 
        authorized under this subsection shall be made available to 
        public and private middle schools, including Bureau funded 
        schools, in the 50 States of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the United States 
        Virgin Islands, Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands.
    ``(c) Definition of Bureau Funded School.--In this section, the 
term `Bureau funded school' has the meaning given the term in section 
1146 of the Education Amendments of 1978.

``SEC. 11306. COOPERATIVE CIVIC EDUCATION AND ECONOMIC EDUCATION 
              EXCHANGE PROGRAMS.

    ``(a) Cooperative Education Exchange Programs.--The Center for 
Civic Education and the National Council on Economic Education shall 
use funds awarded under section 11304(a)(1) to carry out Cooperative 
Education Exchange programs in accordance with this section.
    ``(b) Purpose.--The purpose of the Cooperative Education Exchange 
programs provided under this section shall be to--
            ``(1) make available to educators from eligible countries 
        exemplary curriculum and teacher training programs in civics 
        and government education, and economics education, developed in 
        the United States;
            ``(2) assist eligible countries in the adaptation, 
        implementation, and institutionalization of such programs;
            ``(3) create and implement civics and government education, 
        and economic education, programs for students that draw upon 
        the experiences of the participating eligible countries;
            ``(4) provide a means for the exchange of ideas and 
        experiences in civics and government education, and economic 
        education, among political, educational, governmental, and 
        private sector leaders of participating eligible countries; and
            ``(5) provide support for--
                    ``(A) independent research and evaluation to 
                determine the effects of educational programs on 
                students' development of the knowledge, skills, and 
                traits of character essential for the preservation and 
                improvement of constitutional democracy; and
                    ``(B) effective participation in and the 
                preservation and improvement of an efficient market 
                economy.
    ``(c) Avoidance of Duplication.--The Secretary shall consult with 
the Secretary of State to ensure that--
            ``(1) activities under this section are not duplicative of 
        other efforts in the eligible countries; and
            ``(2) partner institutions in the eligible countries are 
        creditable.
    ``(d) Activities.--The Cooperative Education Exchange programs 
shall--
            ``(1) provide eligible countries with--
                    ``(A) seminars on the basic principles of United 
                States constitutional democracy and economics, 
                including seminars on the major governmental and 
                economic institutions and systems in the United States, 
                and visits to such institutions;
                    ``(B) visits to school systems, institutions of 
                higher education, and nonprofit organizations 
                conducting exemplary programs in civics and government 
                education, and economic education, in the United 
                States;
                    ``(C) translations and adaptations regarding United 
                States civic and government education, and economic 
                education, curricular programs for students and 
                teachers, and in the case of training programs for 
                teachers translations and adaptations into forms useful 
                in schools in eligible countries, and joint research 
                projects in such areas; and
                    ``(D) independent research and evaluation 
                assistance to determine--
                            ``(i) the effects of the Cooperative 
                        Education Exchange programs on students' 
                        development of the knowledge, skills, and 
                        traits of character essential for the 
                        preservation and improvement of constitutional 
                        democracy; and
                            ``(ii) effective participation in and the 
                        preservation and improvement of an efficient 
                        market economy;
            ``(2) provide United States participants with--
                    ``(A) seminars on the histories, economies, and 
                systems of government of eligible countries;
                    ``(B) visits to school systems, institutions of 
                higher education, and organizations conducting 
                exemplary programs in civics and government education, 
                and economic education, located in eligible countries;
                    ``(C) assistance from educators and scholars in 
                eligible countries in the development of curricular 
                materials on the history, government, and economy of 
                such countries that are useful in United States 
                classrooms;
                    ``(D) opportunities to provide onsite 
                demonstrations of United States curricula and pedagogy 
                for educational leaders in eligible countries; and
                    ``(E) independent research and evaluation 
                assistance to determine--
                            ``(i) the effects of the Cooperative 
                        Education Exchange programs on students' 
                        development of the knowledge, skills, and 
                        traits of character essential for the 
                        preservation and improvement of constitutional 
                        democracy; and
                            ``(ii) effective participation in and 
                        improvement of an efficient market economy; and
            ``(3) assist participants from eligible countries and the 
        United States to participate in conferences on civics and 
        government education, and economic education, for educational 
        leaders, teacher trainers, scholars in related disciplines, and 
        educational policymakers.
    ``(e) Participants.--The primary participants in the Cooperative 
Education Exchange programs assisted under this section shall be 
educational leaders in the areas of civics and government education, 
and economic education, including teachers, curriculum and teacher 
training specialists, scholars in relevant disciplines, and educational 
policymakers, and government and private sector leaders from the United 
States and eligible countries.
    ``(f) Definition of Eligible Country.--For the purpose of this 
section, the term `eligible country' means a Central European country, 
an Eastern European country, Lithuania, Latvia, Estonia, the 
independent states of the former Soviet Union as defined in section 3 
of the FREEDOM Support Act (22 U.S.C. 5801), and may include the 
Republic of Ireland, the province of Northern Ireland in the United 
Kingdom, and any developing country, as defined in section 209(d) of 
the Education for the Deaf Act, that has a democratic form of 
government as determined by the Secretary in consultation with the 
Secretary of State.

``SEC. 11307. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Section 11304.--There are authorized to be appropriated to 
carry out section 11304, $15,000,000 for fiscal year 2002 and such sums 
as may be necessary for each of the fiscal years 2003 through 2008.
    ``(b) Section 11305.--There are authorized to be appropriated to 
carry out section 11305, $12,000,000 for fiscal year 2002, and such 
sums as may be necessary for each of the fiscal years 2003 through 
2008.

                 ``PART E--GIFTED AND TALENTED CHILDREN

``SEC. 11401. SHORT TITLE.

    ``This part may be cited as the `Jacob K. Javits Gifted and 
Talented Students Education Act of 2001'.

``SEC. 11402. FINDINGS.

    ``Congress finds the following:
            ``(1) While the families or communities of some gifted 
        students can provide private programs with appropriately 
        trained staff to supplement public educational offerings, most 
        high-ability students, especially those from inner cities, 
        rural communities, or low-income families, must rely on the 
        services and personnel provided by public schools. Therefore, 
        gifted education programs, provided by qualified professionals 
        in the public schools, are needed to provide equal educational 
        opportunities.
            ``(2) Due to the wide dispersal of students who are gifted 
        and talented and the national interest in a well-educated 
        populace, the Federal Government can most effectively and 
        appropriately conduct research and development to provide an 
        infrastructure for, and to ensure that there is, a national 
        capacity to educate students who are gifted and talented to 
        meet the needs of the 21st century.
            ``(3) State and local educational agencies often lack the 
        specialized resources and trained personnel to consistently 
        plan and implement effective programs for the identification of 
        gifted and talented students and for the provision of 
        educational services and programs appropriate for their needs.
            ``(4) Because gifted and talented students generally are 
        more advanced academically, are able to learn more quickly, and 
        study in more depth and complexity than others their age, their 
        educational needs require opportunities and experiences that 
        are different from those generally available in regular 
        education programs.
            ``(5) Typical elementary school students who are 
        academically gifted and talented already have mastered 35 to 50 
        percent of the school year's content in several subject areas 
        before the year begins. Without an advanced and challenging 
        curriculum, they often lose their motivation and develop poor 
        study habits that are difficult to break.
            ``(6) Elementary school and secondary school teachers have 
        students in their classrooms with a wide variety of traits, 
        characteristics, and needs. Most teachers receive some training 
        to meet the needs of these students, such as students with 
        limited English proficiency, students with disabilities, and 
        students from diverse cultural and racial backgrounds. However, 
        most teachers do not receive training on meeting the needs of 
        students who are gifted and talented.

``SEC. 11403. CONDITIONS ON EFFECTIVENESS OF SUBPART 2.

    ``(a) In General.--Subpart 2 shall be in effect only for--
            ``(1) the first fiscal year for which the amount 
        appropriated to carry out this part equals or exceeds 
        $50,000,000; and
            ``(2) all succeeding fiscal years.

                 ``Subpart 1--National Research Program

``SEC. 11411. PURPOSE.

    ``The purpose of this subpart is to initiate a coordinated program 
of research, demonstration projects, innovative strategies, and similar 
activities designed to build a nationwide capability in elementary 
schools and secondary schools to meet the special educational needs of 
gifted and talented students.

``SEC. 11412. GRANTS TO MEET EDUCATIONAL NEEDS OF GIFTED AND TALENTED 
              STUDENTS.

    ``(a) Establishment of Program.--
            ``(1) In general.--Subject to section 11403, from the sums 
        available to carry out this subpart in any fiscal year, the 
        Secretary shall make grants to, or enter into contracts with, 
        State educational agencies, local educational agencies, 
        institutions of higher education, other public agencies, and 
        other private agencies and organizations (including Indian 
        tribes and Indian organizations (as such terms are defined in 
        section 4 of the Indian Self-Determination and Education 
        Assistance Act) and Native Hawaiian organizations) to assist 
        such agencies, institutions, and organizations in carrying out 
        programs or projects authorized by this subpart 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 subpart 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 
subpart may include the following:
            ``(1) 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 purpose of this subpart.
            ``(2) Professional development (including fellowships) for 
        personnel (including leadership personnel) involved in the 
        education of gifted and talented students.
            ``(3) 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, including summer programs, mentoring 
        programs, service learning programs, and cooperative programs 
        involving business, industry, and education.
            ``(4) Implementing innovative strategies, such as 
        cooperative learning, peer tutoring, and service learning.
            ``(5) Programs of technical assistance and information 
        dissemination, including assistance and information with 
        respect to how gifted and talented programs and methods, where 
        appropriate, may be adapted for use by all students.

``SEC. 11413. PROGRAM PRIORITIES.

    ``(a) General Priority.--In the administration of this subpart, the 
Secretary shall give highest priority to programs and projects designed 
to develop new information that--
            ``(1) improves the capability of schools to plan, conduct, 
        and improve programs to identify and serve gifted and talented 
        students; and
            ``(2) assists schools in the identification of, and 
        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).
    ``(b) Service Priority.--In approving applications for assistance 
under section 11412(a)(2), the Secretary shall ensure that in each 
fiscal year at least \1/2\ of the applications approved under such 
section address the priority described in subsection (a)(2).

``SEC. 11414. CENTER FOR RESEARCH AND DEVELOPMENT.

    ``(a) In General.--The Secretary (after consultation with experts 
in the field of the education of gifted and talented students) shall 
establish a National Research Center in the Education of Gifted and 
Talented Children and Youth through grants to or contracts with 1 or 
more institutions of higher education or State educational agencies, or 
a combination or consortium of such institutions and agencies and other 
public or private agencies and organizations, for the purpose of 
carrying out activities described in section 11412.
    ``(b) 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 
institutions of higher education, State or local educational agencies, 
or other public or private agencies and organizations.
    ``(c) Funding.--The Secretary may use not more than 30 percent of 
the funds made available under this subpart for any fiscal year to 
carry out this section.

``SEC. 11415. GENERAL PROVISIONS FOR SUBPART.

    ``(a) Review, Dissemination, and Evaluation.--The Secretary--
            ``(1) shall use a peer review process in reviewing 
        applications under sections 11415(d) and 11412;
            ``(2) shall ensure that information on the activities and 
        results of programs and projects funded under this subpart is 
        disseminated to appropriate State and local educational 
        agencies and other appropriate organizations, including 
        nonprofit private organizations; and
            ``(3) shall evaluate the effectiveness of programs under 
        this subpart, 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 2 years after the date of 
        enactment of the Better Education for Students and Teachers 
        Act.
    ``(b) Program Operations.--The Secretary shall ensure that the 
programs under this subpart 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--
            ``(1) shall 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;
            ``(2) shall 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; and
            ``(3) shall disseminate and consult on the information 
        developed under this subpart with other offices within the 
        Department.
    ``(c) Coordination.--Research activities supported under this 
subpart--
            ``(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.
    ``(d) Grants to State Educational Agencies for Authorized 
Activities.--
            ``(1) In general.--For fiscal year 2002 and succeeding 
        fiscal years, the Secretary shall use the excess amount of 
        funds under subpart 1 to award grants, on a competitive basis, 
        to State educational agencies to begin implementing activities 
        described in section 11422(b).
            ``(2) Excess amount.--For purposes of paragraph (1), the 
        excess amount described in this subsection is the amount (if 
        any) by which the funds appropriated to carry out this subpart 
        for the fiscal year exceed such funds appropriated for fiscal 
        year 2001.
            ``(3) Application.--Each State educational agency desiring 
        a grant under this section shall submit an application to the 
        Secretary that contains the assurances described in section 
        11424(b), with respect to the implementing activities.

                   ``Subpart 2--Formula Grant Program

``SEC. 11421. PURPOSE.

    ``The purpose of this subpart is to provide grants to States to 
support programs, teacher preparation, and other services designed to 
meet the needs of the Nation's gifted and talented students in 
elementary schools and secondary schools.

``SEC. 11422. ESTABLISHMENT OF PROGRAM; USE OF FUNDS.

    ``(a) In General.--In the case of each State that in accordance 
with section 11424 submits to the Secretary an application for a fiscal 
year, subject to section 11403, the Secretary shall make a grant for 
the fiscal year to the State for the uses specified in subsection (b). 
The grant shall consist of the allotment determined for the State under 
section 11423.
    ``(b) Authorized Activities.--Each State receiving a grant under 
this subpart shall use the funds provided under the grant to assist 
local educational agencies in the State to develop or expand gifted and 
talented education programs through 1 or more of the following 
activities:
            ``(1) Development and implementation of programs to address 
        State and local needs for in-service training programs for 
        general educators, specialists in gifted and talented 
        education, administrators, or other personnel at the elementary 
        school and secondary school levels.
            ``(2) Making materials and services available through State 
        regional educational service centers, institutions of higher 
        education, or other entities.
            ``(3) Supporting innovative approaches and curricula used 
        by local educational agencies (or consortia of such agencies) 
        or schools (or consortia of schools).
            ``(4) Providing funds for challenging, high-level course 
        work, disseminated through new and emerging technologies 
        (including distance learning), for individual students or 
        groups of students in schools and local educational agencies 
        that do not have the resources otherwise to provide such course 
        work.
    ``(c) Competitive Process.--Funds provided under this subpart shall 
be distributed to local educational agencies through a competitive 
process that results in an equitable distribution by geographic area 
within the State.
    ``(d) Limitations on Use of Funds.--
            ``(1) Course work provided through emerging technologies.--
        Activities under subsection (b)(4) may include development of 
        curriculum packages, compensation of distance-learning 
        educators, or other relevant activities, but funds provided 
        under this subpart may not be used for the purchase or 
        upgrading of technological hardware.
            ``(2) State use of funds.--
                    ``(A) In general.--A State educational agency 
                receiving a grant under this subpart may not use more 
                than 10 percent of the grant funds for--
                            ``(i) dissemination of general program 
                        information;
                            ``(ii) providing technical assistance under 
                        this subpart;
                            ``(iii) monitoring and evaluation of 
                        programs and activities assisted under this 
                        subpart;
                            ``(iv) providing support for parental 
                        education; and
                            ``(v) creating a State gifted education 
                        advisory board.
                    ``(B) Administrative costs.--A State educational 
                agency may use not more than 50 percent of the funds 
                made available to the State educational agency under 
                subparagraph (A) for administrative costs.
                    ``(C) Education, information, and support.--A State 
                educational agency receiving a grant under this subpart 
                may use not more than 2 percent of the grant funds to 
                provide information, education, and support to parents 
                and caregivers of gifted and talented children to 
                enhance their ability to participate in decisions 
                regarding their children's educational programs. Such 
                education, information, and support shall be developed 
                and carried out by parents and caregivers or by parents 
                and caregivers in partnership with the State.

``SEC. 11423. ALLOTMENTS TO STATES.

    ``(a) Reservation of Funds.--From the amount made available to 
carry out this subpart for any fiscal year, the Secretary shall reserve 
\1/2\ of 1 percent for the Secretary of the Interior for programs under 
this subpart for teachers, other staff, and administrators in schools 
operated or funded by the Bureau of Indian Affairs.
    ``(b) State Allotments.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall allot the total amount made available to carry 
        out this subpart for any fiscal year and not reserved under 
        subsection (a) to the 50 States, the District of Columbia, and 
        the Commonwealth of Puerto Rico on the basis of their relative 
        populations of individuals aged 5 through 17, as determined by 
        the Secretary on the basis of the most recent satisfactory 
        data.
            ``(2) Minimum grant amount.--No State receiving an 
        allotment under paragraph (1) may receive less than \1/2\ of 1 
        percent of the total amount allotted under such paragraph.
    ``(c) Reallotment.--If any State does not apply for an allotment 
under this section for any fiscal year, the Secretary shall reallot 
such amount to the remaining States in accordance with this section.

``SEC. 11424. STATE APPLICATION.

    ``(a) In General.--To be eligible to receive a grant under this 
subpart, a State educational agency shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may reasonably require.
    ``(b) Contents.--Each application under this section shall include 
assurances that--
            ``(1) funds received under this subpart will be used to 
        support gifted and talented students in public schools and 
        public charter schools, including students from all economic, 
        ethnic, and racial backgrounds, students of limited English 
        proficiency, students with disabilities, and highly gifted 
        students;
            ``(2) the funds not retained by the State educational 
        agency shall be used for the purpose of making, in accordance 
        with this subpart and on a competitive basis, grants to local 
        educational agencies;
            ``(3) funds received under this subpart shall be used only 
        to supplement, but not supplant, the amount of State and local 
        funds expended for specialized education and related services 
        provided for the education of gifted and talented students;
            ``(4) the State educational agency will provide matching 
        funds for the activities to be assisted under this subpart in 
        an amount equal to not less than 20 percent of the grant funds 
        to be received; and
            ``(5) the State educational agency shall develop and 
        implement program assessment models to ensure program 
        accountability and to evaluate educational effectiveness.
    ``(c) Approval.--To the extent funds are made available for this 
subpart, the Secretary shall approve an application of a State if such 
application meets the requirements of this section.

``SEC. 11425. DISTRIBUTION TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Grant Competition.--A State educational agency shall use not 
less than 88 percent of the funds made available to the State 
educational agency under this subpart to award grants, on a competitive 
basis, to local educational agencies (including consortia of local 
educational agencies) to support programs, classes, and other services 
designed to meet the needs of gifted and talented students.
    ``(b) Size of Grant.--A State educational agency shall award a 
grant under subsection (a) for any fiscal year in an amount sufficient 
to meet the needs of the students to be served under the grant.

``SEC. 11426. LOCAL APPLICATIONS.

    ``(a) Application.--To be eligible to receive a grant under this 
subpart, a local educational agency (including a consortium of local 
educational agencies) shall submit an application to the State 
educational agency.
    ``(b) Contents.--Each such application shall include--
            ``(1) an assurance that the funds received under this 
        subpart will be used to identify and support gifted and 
        talented students, including gifted and talented students from 
        all economic, ethnic, and racial backgrounds, such students of 
        limited English proficiency, and such students with 
        disabilities;
            ``(2) a description of how the local educational agency 
        will meet the educational needs of gifted and talented 
        students, including the training of personnel in the education 
        of gifted and talented students; and
            ``(3) an assurance that funds received under this subpart 
        will be used to supplement, not supplant, the amount of funds 
        the local educational agency expends for the education of, and 
        related services for, gifted and talented students.

``SEC. 11427. ANNUAL REPORTING.

    ``Beginning 1 year after the date of enactment of the Better 
Education for Students and Teachers Act and for each subsequent year 
thereafter, the State educational agency shall submit an annual report 
to the Secretary that describes the number of students served and the 
activities supported with funds provided under this subpart. The report 
shall include a description of the measures taken to comply with 
paragraphs (1) and (4) of section 11424(b).

                    ``Subpart 3--General Provisions

``SEC. 11431. CONSTRUCTION.

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

``SEC. 11432. PARTICIPATION OF PRIVATE SCHOOL CHILDREN AND TEACHERS.

    ``In making grants and entering into contracts under this subpart, 
the Secretary shall ensure, where appropriate, that provision is made 
for the equitable participation of students and teachers in private 
nonprofit elementary schools and secondary schools, including the 
participation of teachers and other personnel in professional 
development programs serving such children.

``SEC. 11433. DEFINITIONS.

    ``For purposes of this subpart:
            ``(1) Gifted and talented.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the term `gifted and talented' when 
                used with respect to a person or program--
                            ``(i) has the meaning given the term under 
                        applicable State law; or
                            ``(ii) in the case of a State that does not 
                        have a State law defining the term, has the 
                        meaning given such term by definition of the 
                        State educational agency or local educational 
                        agency involved.
                    ``(B) Special rule.--In the case of a State that 
                does not have a State law that defines the term, and 
                the State educational agency or local educational 
                agency has not defined the term, the term has the 
                meaning given the term in section 3.
            ``(2) State.--The term `State' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 11434. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this subpart 
$170,000,000 for each of fiscal years 2002 through 2008.

         ``PART F--LOCAL INNOVATIONS FOR EDUCATION (LIFE) FUND

           ``Subpart 1--Fund for the Improvement of Education

``SEC. 11501. FUND FOR THE IMPROVEMENT OF EDUCATION.

    ``(a) Funds Authorized.--From funds appropriated under subpart 9, 
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 carry out activities to raise 
standards and expectations for academic achievement among all students, 
especially disadvantaged students traditionally underserved in schools. 
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.--Funds under this section may be used for--
            ``(1) joint efforts with other agencies and community 
        organizations, 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 educational, 
        recreational, cultural, health and social services programs 
        within a local community;
            ``(2) activities to promote and evaluate counseling and 
        mentoring for students, including intergenerational mentoring;
            ``(3) activities to promote and evaluate coordinated 
        student support services;
            ``(4) activities to promote comprehensive health education;
            ``(5) activities to promote environmental education;
            ``(6) activities to promote consumer, economic, and 
        personal finance education, such as saving, investing, and 
        entrepreneurial education;
            ``(7) studies and evaluation of various education reform 
        strategies and innovations being pursued by the Federal 
        Government, States, and local educational agencies;
            ``(8) the identification and recognition of exemplary 
        schools and programs, such as Blue Ribbon Schools;
            ``(9) 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;
            ``(10) programs designed to encourage parents to 
        participate in school activities;
            ``(11) experiential-based learning, such as service-
        learning;
            ``(12) developing, adapting, or expanding existing and new 
        applications of technology to support the school reform effort;
            ``(13) 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 to ensure that students in 
        schools will have meaningful access on a regular basis to such 
        linkages, resources and services;
            ``(14) providing ongoing professional development in the 
        integration of quality educational technologies into school 
        curriculum and long-term planning for implementing educational 
        technologies;
            ``(15) acquiring connectivity with wide area networks for 
        purposes of accessing information and educational programming 
        sources, particularly with institutions of higher education and 
        public libraries;
            ``(16) providing educational services for adults and 
        families;
            ``(17) 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; and
            ``(18) other programs and projects that meet the purposes 
        of this section.
    ``(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 section 11801 for 
        the cost of such peer review.

``SEC. 11502. PROMOTING SCHOLAR-ATHLETE COMPETITIONS.

    ``(a) In General.--The Secretary is authorized to award a grant to 
a nonprofit organization to reimburse such organization 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; and
            ``(5) has the organizational structure and expertise to 
        replicate the scholar-athlete program in various venues 
        throughout the United States internationally.

                   ``Subpart 2--Star Schools Program

``SEC. 11551. SHORT TITLE.

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

``SEC. 11552. FINDINGS.

    ``Congress finds that--
            ``(1) the Star Schools program has helped to encourage the 
        use of distance learning strategies to serve multistate 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. 11553. PURPOSE.

    ``It is the purpose of this subpart 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. 11554. GRANTS AUTHORIZED.

    ``(a) Authority.--The Secretary, through the Office of Educational 
Technology, is authorized to make grants, in accordance with the 
provisions of this subpart, 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 1 additional 3-year period.
    ``(c) Availability of Funds.--Funds made available to carry out 
this subpart shall remain available until expended.
    ``(d) Limitations.--
            ``(1) In general.--A grant under this section shall not 
        exceed--
                    (A) 5 years in duration; or
                    (B) $10,000,000 in any 1 fiscal year.
            ``(2) Instructional programming.--Not less than 25 percent 
        of the funds available to the Secretary in any fiscal year 
        under this subpart 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 subpart shall be used 
        for the cost of facilities, equipment, teacher training or 
        retraining, technical assistance, or programming, for local 
        educational agencies which are eligible to receive assistance 
        under part A of title I.
    ``(e) Federal Share.--
            ``(1) In general.--The Federal share of the cost of 
        projects funded under this section shall not exceed--
                    ``(A) 75 percent for the first and second years for 
                which an eligible telecommunications partnership 
                receives a grant under this subpart;
                    ``(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 subpart 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 subpart 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. 11555. ELIGIBLE ENTITIES.

    ``(a) Eligible Entities.--
            ``(1) Required participation.--The Secretary may make a 
        grant under section 11554 to any eligible entity, if at least 1 
        local educational agency is participating in the proposed 
        project.
            ``(2) Eligible entity.--For the purpose of this subpart, 
        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 schools 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 
                        schools and secondary schools that are eligible 
                        for assistance under part A of title I, or 
                        elementary schools and secondary schools 
                        operated or funded for Indian children by the 
                        Department of the Interior eligible under 
                        section 1121(c)(1)(A);
                            ``(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 preservice 
                                and inservice 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 
                        school or secondary school.
    ``(b) Special Rule.--An eligible entity receiving assistance under 
this subpart shall be organized on a statewide or multistate basis.

``SEC. 11556. APPLICATIONS.

    ``(a) Applications Required.--Each eligible entity which desires to 
receive a grant under section 11554 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 Application.--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 subpart;
            ``(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 schools 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 subpart to supplement and not 
        supplant funds otherwise available for the purposes of this 
        subpart;
            ``(11) describe how funds received under this subpart will 
        be coordinated with funds received for educational technology 
        in the classroom;
            ``(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 
        schools 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 subpart; and
            ``(16) include such additional assurances as the Secretary 
        may reasonably require.
    ``(c) Priorities.--The Secretary, in approving applications for 
grants authorized under section 11554, shall give priority to 
applications describing projects that--
            ``(1) propose high-quality plans to assist in achieving 1 
        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 11554, the Secretary shall, to the 
extent feasible, ensure an equitable geographic distribution of 
services provided under this subpart.

``SEC. 11557. LEADERSHIP AND EVALUATION.

    ``(a) Reservation.--From the amount made available to carry out 
this subpart 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 subpart; 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 subpart and 
        of distance learning in general, including--
                    ``(A) analyses of distance learning efforts, 
                including such efforts that are assisted under this 
                subpart and such efforts that are not assisted under 
                this subpart; 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 subpart; 
                and
                    ``(B) activities assisted under this subpart.

``SEC. 11558. DEFINITIONS.

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

``SEC. 11559. ADMINISTRATIVE PROVISIONS.

    ``(a) Continuing Eligibility.--
            ``(1) In general.--In order to be eligible to receive a 
        grant under section 11554 for a second 3-year grant period an 
        eligible entity shall demonstrate in the application submitted 
        pursuant to section 11556 that such partnership shall--
                    ``(A) continue to provide services in the subject 
                areas and geographic areas assisted with funds received 
                under this subpart for the previous 5-year grant 
                period; and
                    ``(B) use all grant funds received under this 
                subpart 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 subpart in 
        the previous fiscal year.
    ``(b) Federal Activities.--The Secretary may assist grant 
recipients under section 11554 in acquiring satellite time, where 
appropriate, as economically as possible.

``SEC. 11560. 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 schools 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) 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 develop 
        and operate 1 or more programs which provide online 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.
            ``(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.

                     ``Subpart 3--Arts in Education

``SEC. 11571. FINDINGS AND PURPOSE.

    ``(a) Findings.--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) a growing body of research indicates that arts 
        education provides significant cognitive benefits and can 
        bolster academic achievement for all students;
            ``(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 school and secondary school curriculum.
    ``(b) Purposes.--The purposes of this section are to--
            ``(1) support systemic education reform by strengthening 
        arts education as an integral part of the elementary school 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.
    ``(c) Eligible Recipients.--In order to carry out the purposes of 
this section, 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 section 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, VSA 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 VSA 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 school and secondary 
        school curriculum; and
            ``(10) other activities that further the purposes of this 
        section.
    ``(e) Coordination.--
            ``(1) In general.--A recipient of funds under this section 
        shall, to the extent possible, coordinate projects assisted 
        under this section 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 section, 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, VSA Arts, and the 
        National Gallery of Art.
    ``(f) Special Rule.--If the amount made available to the Secretary 
to carry out this subpart for any fiscal year is $15,000,000 or less, 
then such amount shall only be available to carry out the activities 
described in paragraphs (7) and (8) of subsection (d).

                     ``Subpart 4--School Counseling

``SEC. 11601. ELEMENTARY SCHOOL AND SECONDARY SCHOOL COUNSELING 
              DEMONSTRATION.

    ``(a) Counseling Demonstration.--
            ``(1) In general.--The Secretary may award grants under 
        this section to local educational agencies to enable the local 
        educational agencies to establish or expand elementary school 
        and secondary 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 schools served by the applicant;
                    ``(B) propose the most promising and innovative 
                approaches for initiating or expanding 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 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 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 subpart 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.--From amounts made available to carry out 
        this section, the Secretary shall award grants to local 
        education agencies to be used to initiate or expand elementary 
        or secondary school counseling programs that comply with the 
        requirements of 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 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, or 
                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 subpart at the end of each grant period.
            ``(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 5 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) School counselor.--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) School psychologist.--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) School social worker.--The term `school social 
        worker' means an individual who--
                    ``(A)(i) holds a master's degree in social work 
                from a program accredited by the Council on Social Work 
                Education; and
                    ``(ii) is licensed or certified by the State in 
                which services are provided; or
                    ``(B) in the absence of such licensure or 
                certification, possesses a national certification or 
                credential as a school social work specialist that has 
                been awarded by an independent professional 
                organization.
            ``(4) Supervisor.--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. 11602. SPECIAL RULE.

    ``For any fiscal year in which the amount made available to carry 
out this subpart is at least $60,000,000, then at least $60,000,000 
shall be made available in such fiscal year to establish or expand 
elementary school counseling programs.

            ``Subpart 5--Partnerships in Character Education

``SEC. 11651. SHORT TITLE.

    ``This subpart may be cited as the `Strong Character for Strong 
Schools Act'.

``SEC. 11652. PARTNERSHIPS IN CHARACTER EDUCATION PROGRAM.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to award 
        grants to eligible entities for the design and implementation 
        of character education programs that may incorporate the 
        elements of character described in subsection (d).
            ``(2) Eligible entity.--The term `eligible entity' means--
                    ``(A) a State educational agency in partnership 
                with 1 or more local educational agencies;
                    ``(B) a State educational agency in partnership 
                with--
                            ``(i) one or more local educational 
                        agencies; and
                            ``(ii) one or more nonprofit organizations 
                        or entities, including institutions of higher 
                        education;
                    ``(C) a local educational agency or consortium of 
                local educational agencies; or
                    ``(D) a local educational agency in partnership 
                with another nonprofit organization or entity, 
                including institutions of higher education.
            ``(3) Duration.--Each grant under this section shall be 
        awarded for a period not to exceed 3 years, of which the 
        eligible entity shall not use more than 1 year for planning and 
        program design.
            ``(4) Amount of grants for state educational agencies.--
        Subject to the availability of appropriations, the amount of 
        grant made by the Secretary to a State educational agency in a 
        partnership described in subparagraph (A) or (B) of paragraph 
        (2), that submits an application under subsection (b) and that 
        meets such requirements as the Secretary may establish under 
        this section, shall not be less than $500,000.
    ``(b) Applications.--
            ``(1) Requirement.--Each eligible entity 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) Contents of application.--Each application submitted 
        under this section shall include--
                    ``(A) a description of any partnerships or 
                collaborative efforts among the organizations and 
                entities of the eligible entity;
                    ``(B) a description of the goals and objectives of 
                the program proposed by the eligible entity;
                    ``(C) a description of activities that will be 
                pursued and how those activities will contribute to 
                meeting the goals and objectives described in 
                subparagraph (B), including--
                            ``(i) how parents, students (including 
                        students with physical and mental 
                        disabilities), and other members of the 
                        community, including members of private and 
                        nonprofit organizations, will be involved in 
                        the design and implementation of the program 
                        and how the eligible entity will work with the 
                        larger community to increase the reach and 
                        promise of the program;
                            ``(ii) curriculum and instructional 
                        practices that will be used or developed;
                            ``(iii) methods of teacher training and 
                        parent education that will be used or 
                        developed; and
                            ``(iv) how the program will be linked to 
                        other efforts in the schools to improve student 
                        performance;
                    ``(D) in the case of an eligible entity that is a 
                State educational agency--
                            ``(i) 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; and
                            ``(ii) 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 character education programs;
                    ``(E) a description of how the eligible entity will 
                evaluate the success of its program--
                            ``(i) based on the goals and objectives 
                        described in subparagraph (B); and
                            ``(ii) in cooperation with the national 
                        evaluation conducted pursuant to subsection 
                        (c)(2)(B)(iii);
                    ``(F) an assurance that the eligible entity 
                annually will provide to the Secretary such information 
                as may be required to determine the effectiveness of 
                the program; and
                    ``(G) any other information that the Secretary may 
                require.
    ``(c) Evaluation and Program Development.--
            ``(1) Evaluation and reporting.--
                    ``(A) State and local reporting and evaluation.--
                Each eligible entity receiving a grant under this 
                section shall submit to the Secretary a comprehensive 
                evaluation of the program assisted under this section, 
                including the impact on students (including students 
                with physical and mental disabilities), teachers, 
                administrators, parents, and others--
                            ``(i) by the second year of the program; 
                        and
                            ``(ii) not later than 1 year after 
                        completion of the grant period.
                    ``(B) Contracts for evaluation.--Each eligible 
                entity 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 its program 
                and measuring the success of the program toward 
                fostering character in students.
            ``(2)  National research, dissemination, and evaluation.--
                    ``(A) In general.--The Secretary is authorized to 
                make grants to, or enter into contracts or cooperative 
                agreements with, State or local educational agencies, 
                institutions of higher education, tribal organizations, 
                or other public or private agencies or organizations to 
                carry out research, development, dissemination, 
                technical assistance, and evaluation activities that 
                support or inform State and local character education 
                programs. The Secretary shall reserve not more than 5 
                percent of the funds made available under this section 
                to carry out this paragraph.
                    ``(B) Uses.--Funds made available under 
                subparagraph (A) may be used--
                            ``(i) to conduct research and development 
                        activities that focus on matters such as--
                                    ``(I) the effectiveness of 
                                instructional models for all students, 
                                including students with physical and 
                                mental disabilities;
                                    ``(II) materials and curricula that 
                                can be used by programs in character 
                                education;
                                    ``(III) models of professional 
                                development in character education; and
                                    ``(IV) the development of measures 
                                of effectiveness for character 
                                education programs which may include 
                                the factors described in paragraph (3);
                            ``(ii) to provide technical assistance to 
                        State and local programs, particularly on 
                        matters of program evaluation;
                            ``(iii) to conduct a national evaluation of 
                        State and local programs receiving funding 
                        under this section; and
                            ``(iv) to compile and disseminate, through 
                        various approaches (such as a national 
                        clearinghouse)--
                                    ``(I) information on model 
                                character education programs;
                                    ``(II) character education 
                                materials and curricula;
                                    ``(III) research findings in the 
                                area of character education and 
                                character development; and
                                    ``(IV) any other information that 
                                will be useful to character education 
                                program participants, educators, 
                                parents, administrators, and others 
                                nationwide.
                    ``(C) Priority.--In carrying out national 
                activities under this paragraph related to development, 
                dissemination, and technical assistance, the Secretary 
                shall seek to enter into partnerships with national, 
                nonprofit character education organizations with 
                expertise and successful experience in implementing 
                local character education programs that have had an 
                effective impact on schools, students (including 
                students with disabilities), and teachers.
            ``(3) Factors.--Factors which may be considered in 
        evaluating the success of programs funded under this section 
        may include--
                    ``(A) discipline issues;
                    ``(B) student performance;
                    ``(C) participation in extracurricular activities;
                    ``(D) parental and community involvement;
                    ``(E) faculty and administration involvement;
                    ``(F) student and staff morale; and
                    ``(G) overall improvements in school climate for 
                all students, including students with physical and 
                mental disabilities.
    ``(d) Elements of Character.--Each eligible entity desiring funding 
under this section shall develop character education programs that may 
incorporate elements of character such as--
            ``(1) caring;
            ``(2) civic virtue and citizenship;
            ``(3) justice and fairness;
            ``(4) respect;
            ``(5) responsibility;
            ``(6) trustworthiness; and
            ``(7) any other elements deemed appropriate by the members 
        of the eligible entity.
    ``(e) Use of Funds by State Educational Agency Recipients.--Of the 
total funds received in any fiscal year under this section by an 
eligible entity that is a State educational agency--
            ``(1) not more than 10 percent of such funds may be used 
        for administrative purposes; and
            ``(2) the remainder of such funds may be used for--
                    ``(A) collaborative initiatives with and between 
                local educational agencies and schools;
                    ``(B) the preparation or purchase of materials, and 
                teacher training;
                    ``(C) grants to local educational agencies, 
                schools, or institutions of higher education; and
                    ``(D) technical assistance and evaluation.
    ``(f) Selection of Grantees.--
            ``(1) Criteria.--The Secretary shall select, through peer 
        review, eligible entities 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 to be 
                conducted;
                    ``(B) the extent to which the program fosters 
                character in students and the potential for improved 
                student performance;
                    ``(C) the extent and ongoing nature of parental, 
                student, and community involvement;
                    ``(D) the quality of the plan for measuring and 
                assessing success; and
                    ``(E) 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, 
                disadvantaged students, and students with disabilities.
    ``(g) Participation by Private School Children and Teachers.--
Grantees under this section shall provide, to the extent feasible and 
appropriate, for the participation of students and teachers in private 
elementary and secondary schools in programs and activities under this 
section.

              ``Subpart 6--Women's Educational Equity Act

``SEC. 11701. SHORT TITLE; FINDINGS.

    ``(a) Short Title.--This subpart may be cited as the `Women's 
Educational Equity Act of 2001'.
    ``(b) Findings.--Congress finds that--
            ``(1) since the enactment of title IX of the Education 
        Amendments of 1972, women and girls have made strides in 
        educational achievement and in their ability to avail 
        themselves of educational opportunities;
            ``(2) because of funding provided under the Women's 
        Educational Equity Act, more curricula, training, and other 
        educational materials concerning educational equity for women 
        and girls are available for national dissemination;
            ``(3) teaching and learning practices in the United States 
        are frequently inequitable as such practices relate to women 
        and girls, for example--
                    ``(A) sexual harassment, particularly that 
                experienced by girls, undermines the ability of schools 
                to provide a safe and equitable learning or workplace 
                environment;
                    ``(B) classroom textbooks and other educational 
                materials do not sufficiently reflect the experiences, 
                achievements, or concerns of women and, in most cases, 
                are not written by women or persons of color;
                    ``(C) girls do not take as many mathematics and 
                science courses as boys, girls lose confidence in their 
                mathematics and science ability as girls move through 
                adolescence, and there are few women role models in the 
                sciences; and
                    ``(D) pregnant and parenting teenagers are at high 
                risk for dropping out of school and existing dropout 
                prevention programs do not adequately address the needs 
                of such teenagers;
            ``(4) efforts to improve the quality of public education 
        also must include efforts to ensure equal access to quality 
        education programs for all women and girls;
            ``(5) Federal support should address not only research and 
        development of innovative model curricula and teaching and 
        learning strategies to promote gender equity, but should also 
        assist schools and local communities implement gender equitable 
        practices;
            ``(6) Federal assistance for gender equity must be tied to 
        systemic reform, involve collaborative efforts to implement 
        effective gender practices at the local level, and encourage 
        parental participation; and
            ``(7) excellence in education, high educational 
        achievements and standards, and the full participation of women 
        and girls in American society, cannot be achieved without 
        educational equity for women and girls.

``SEC. 11702. STATEMENT OF PURPOSES.

    ``It is the purpose of this subpart--
            ``(1) to promote gender equity in education in the United 
        States;
            ``(2) to provide financial assistance to enable educational 
        agencies and institutions to meet the requirements of title IX 
        of the Educational Amendments of 1972; and
            ``(3) to promote equity in education for women and girls 
        who suffer from multiple forms of discrimination based on sex, 
        race, ethnic origin, limited English proficiency, disability, 
        or age.

``SEC. 11703. PROGRAMS AUTHORIZED.

    ``(a) In General.--The Secretary is authorized--
            ``(1) to promote, coordinate, and evaluate gender equity 
        policies, programs, activities, and initiatives in all Federal 
        education programs and offices;
            ``(2) to develop, maintain, and disseminate materials, 
        resources, analyses, and research relating to education equity 
        for women and girls;
            ``(3) to provide information and technical assistance to 
        assure the effective implementation of gender equity programs;
            ``(4) to coordinate gender equity programs and activities 
        with other Federal agencies with jurisdiction over education 
        and related programs;
            ``(5) to assist the Assistant Secretary of the Office of 
        Educational Research and Improvement in identifying research 
        priorities related to education equity for women and girls; and
            ``(6) to perform any other activities consistent with 
        achieving the purposes of this subpart.
    ``(b) Grants Authorized.--
            ``(1) In general.--The Secretary is authorized to make 
        grants to, and enter into contracts and cooperative agreements 
        with, public agencies, private nonprofit agencies, 
        organizations, institutions, student groups, community groups, 
        and individuals, for a period not to exceed 4 years, to--
                    ``(A) provide grants to develop model equity 
                programs; and
                    ``(B) provide funds for the implementation of 
                equity programs in schools throughout the Nation.
            ``(2) Support and technical assistance.--To achieve the 
        purposes of this subpart, the Secretary is authorized to 
        provide support and technical assistance--
                    ``(A) to implement effective gender-equity policies 
                and programs at all educational levels, including--
                            ``(i) assisting educational agencies and 
                        institutions to implement policies and 
                        practices to comply with title IX of the 
                        Education Amendments of 1972;
                            ``(ii) training for teachers, counselors, 
                        administrators, and other school personnel, 
                        especially preschool and elementary school 
                        personnel, in gender equitable teaching and 
                        learning practices;
                            ``(iii) leadership training for women and 
                        girls to develop professional and marketable 
                        skills to compete in the global marketplace, 
                        improve self-esteem, and benefit from exposure 
                        to positive role models;
                            ``(iv) school-to-work transition programs, 
                        guidance and counseling activities, and other 
                        programs to increase opportunities for women 
                        and girls to enter a technologically demanding 
                        workplace and, in particular, to enter highly 
                        skilled, high paying careers in which women and 
                        girls have been underrepresented;
                            ``(v) enhancing educational and career 
                        opportunities for those women and girls who 
                        suffer multiple forms of discrimination, based 
                        on sex, and on race, ethnic origin, limited 
                        English proficiency, disability, socioeconomic 
                        status, or age;
                            ``(vi) assisting pregnant students and 
                        students rearing children to remain in or to 
                        return to secondary school, graduate, and 
                        prepare their preschool children to start 
                        school;
                            ``(vii) evaluating exemplary model programs 
                        to assess the ability of such programs to 
                        advance educational equity for women and girls;
                            ``(viii) introduction into the classroom of 
                        textbooks, curricula, and other materials 
                        designed to achieve equity for women and girls;
                            ``(ix) programs and policies to address 
                        sexual harassment and violence against women 
                        and girls and to ensure that educational 
                        institutions are free from threats to the 
                        safety of students and personnel;
                            ``(x) nondiscriminatory tests of aptitude 
                        and achievement and of alternative assessments 
                        that eliminate biased assessment instruments 
                        from use;
                            ``(xi) programs to increase educational 
                        opportunities, including higher education, 
                        vocational training, and other educational 
                        programs for low-income women, including 
                        underemployed and unemployed women, and women 
                        receiving assistance under a State program 
                        funded under part A of title IV of the Social 
                        Security Act;
                            ``(xii) programs to improve representation 
                        of women in educational administration at all 
                        levels; and
                            ``(xiii) planning, development, and initial 
                        implementation of--
                                    ``(I) comprehensive institutionwide 
                                or districtwide evaluation to assess 
                                the presence or absence of gender 
                                equity in educational settings;
                                    ``(II) comprehensive plans for 
                                implementation of equity programs in 
                                State and local educational agencies 
                                and institutions of higher education, 
                                including community colleges; and
                                    ``(III) innovative approaches to 
                                school-community partnerships for 
                                educational equity;
                    ``(B) for research and development, which shall be 
                coordinated with each of the research institutes of the 
                Office of Educational Research and Improvement to avoid 
                duplication of research efforts, designed to advance 
                gender equity nationwide and to help make policies and 
                practices in educational agencies and institutions, and 
                local communities, gender equitable, including--
                            ``(i) research and development of 
                        innovative strategies and model training 
                        programs for teachers and other education 
                        personnel;
                            ``(ii) the development of high-quality and 
                        challenging assessment instruments that are 
                        nondiscriminatory;
                            ``(iii) the development and evaluation of 
                        model curricula, textbooks, software, and other 
                        educational materials to ensure the absence of 
                        gender stereotyping and bias;
                            ``(iv) the development of instruments and 
                        procedures that employ new and innovative 
                        strategies to assess whether diverse 
                        educational settings are gender equitable;
                            ``(v) the development of instruments and 
                        strategies for evaluation, dissemination, and 
                        replication of promising or exemplary programs 
                        designed to assist local educational agencies 
                        in integrating gender equity in their 
                        educational policies and practices;
                            ``(vi) updating high-quality educational 
                        materials previously developed through awards 
                        made under this subpart;
                            ``(vii) the development of policies and 
                        programs to address and prevent sexual 
                        harassment and violence to ensure that 
                        educational institutions are free from threats 
                        to safety of students and personnel;
                            ``(viii) the development and improvement of 
                        programs and activities to increase opportunity 
                        for women, including continuing educational 
                        activities, vocational education, and programs 
                        for low-income women, including underemployed 
                        and unemployed women, and women receiving 
                        assistance under the State program funded under 
                        part A of title IV of the Social Security Act; 
                        and
                            ``(ix) the development of guidance and 
                        counseling activities, including career 
                        education programs, designed to ensure gender 
                        equity.

``SEC. 11704. APPLICATIONS.

    ``An application under this subpart shall--
            ``(1) set forth policies and procedures that will ensure a 
        comprehensive evaluation of the activities assisted under this 
        subpart, including an evaluation of the practices, policies, 
        and materials used by the applicant and an evaluation or 
        estimate of the continued significance of the work of the 
        project following completion of the award period;
            ``(2) demonstrate how the applicant will address 
        perceptions of gender roles based on cultural differences or 
        stereotypes;
            ``(3) for applications for assistance under section 
        11703(b)(1), demonstrate how the applicant will foster 
        partnerships and, where applicable, share resources with State 
        educational agencies, local educational agencies, institutions 
        of higher education, community-based organizations (including 
        organizations serving women), parent, teacher, and student 
        groups, businesses, or other recipients of Federal educational 
        funding which may include State literacy resource centers;
            ``(4) for applications for assistance under section 
        11703(b)(1), demonstrate how parental involvement in the 
        project will be encouraged; and
            ``(5) for applications for assistance under section 
        11703(b)(1), describe plans for continuation of the activities 
        assisted under this subpart with local support following 
        completion of the grant period and termination of Federal 
        support under this subpart.

``SEC. 11705. CRITERIA AND PRIORITIES.

    ``(a) Criteria and Priorities.--
            ``(1) In general.--The Secretary shall establish separate 
        criteria and priorities for awards under paragraphs (1) and (2) 
        of section 11703(b) to ensure that funds under this subpart are 
        used for programs that most effectively will achieve the 
        purposes of this part.
            ``(2) Criteria.--The criteria described in subsection (a) 
        may include the extent to which the activities assisted under 
        this part--
                    ``(A) address the needs of women and girls of color 
                and women and girls with disabilities;
                    ``(B) meet locally defined and documented 
                educational equity needs and priorities, including 
                compliance with title IX of the Education Amendments of 
                1972;
                    ``(C) are a significant component of a 
                comprehensive plan for educational equity and 
                compliance with title IX of the Education Amendments of 
                1972 in the particular school district, institution of 
                higher education, vocational-technical institution, or 
                other educational agency or institution; and
                    ``(D) implement an institutional change strategy 
                with long-term impact that will continue as a central 
                activity of the applicant after the grant under this 
                subpart has terminated.
    ``(b) Priorities.--In approving applications under this subpart, 
the Secretary may give special consideration to applications--
            ``(1) submitted by applicants that have not received 
        assistance under this subpart or this subpart's predecessor 
        authorities;
            ``(2) for projects that will contribute significantly to 
        directly improving teaching and learning practices in the local 
        community; and
            ``(3) for projects that will--
                    ``(A) provide for a comprehensive approach to 
                enhancing gender equity in educational institutions and 
                agencies;
                    ``(B) draw on a variety of resources, including the 
                resources of local educational agencies, community-
                based organizations, institutions of higher education, 
                and private organizations;
                    ``(C) implement a strategy with long-term impact 
                that will continue as a central activity of the 
                applicant after the grant under this subpart has 
                terminated;
                    ``(D) address issues of national significance that 
                can be duplicated; and
                    ``(E) address the educational needs of women and 
                girls who suffer multiple or compound discrimination 
                based on sex and on race, ethnic origin, disability, or 
                age.
    ``(c) Special Rule.--To the extent feasible, the Secretary shall 
ensure that grants awarded under this subpart for each fiscal year 
address--
            ``(1) all levels of education, including preschool, 
        elementary and secondary education, higher education, 
        vocational education, and adult education;
            ``(2) all regions of the United States; and
            ``(3) urban, rural, and suburban educational institutions.
    ``(d) Coordination.--Research activities supported under this 
subpart--
            ``(1) shall be carried out in consultation with the Office 
        of Educational Research and Improvement to ensure that such 
        activities are coordinated with and enhance the research and 
        development activities supported by the Office; and
            ``(2) may include collaborative research activities which 
        are jointly funded and carried out with the Office of 
        Educational Research and Improvement.
    ``(e) Limitation.--Nothing in this subpart shall be construed as 
prohibiting men and boys from participating in any programs or 
activities assisted with funds under this subpart.

``SEC. 11706. REPORT.

    ``The Secretary, not later than January 1, 2007, shall submit to 
the President and Congress a report on the status of educational equity 
for girls and women in the Nation.

``SEC. 11707. ADMINISTRATION.

    ``(a) Evaluation and Dissemination.--The Secretary shall evaluate 
and disseminate materials and programs developed under this subpart and 
shall report to Congress regarding such evaluation materials and 
programs not later than January 1, 2006.
    ``(b) Program Operations.--The Secretary shall ensure that the 
activities assisted under this subpart are administered within the 
Department by a person who has recognized professional qualifications 
and experience in the field of gender equity education.

``SEC. 11708. AMOUNT.

    ``From amounts made available to carry out this subpart for a 
fiscal year, not less than \2/3\ of such amount shall be used to carry 
out the activities described in section 11703(b)(1).

              ``Subpart 7--Physical Education for Progress

``SEC. 11751. SHORT TITLE.

    ``This subpart may be cited as the `Physical Education for Progress 
Act'.

``SEC. 11752. PURPOSE.

    ``The purpose of this subpart is to award grants and contracts to 
initiate, expand and improve physical education programs for all 
kindergarten through 12th grade students.

``SEC. 11753. FINDINGS.

    ``Congress makes the following findings:
            ``(1) Physical education is essential to the development of 
        growing children.
            ``(2) Physical education helps improve the overall health 
        of children by improving their cardiovascular endurance, 
        muscular strength and power, and flexibility, and by enhancing 
        weight regulation, bone development, posture, skillful moving, 
        active lifestyle habits, and constructive use of leisure time.
            ``(3) Physical education helps improve the self esteem, 
        interpersonal relationships, responsible behavior, and 
        independence of children.
            ``(4) Children who participate in high quality daily 
        physical education programs tend to be more healthy and 
        physically fit.
            ``(5) The percentage of young people who are overweight has 
        more than doubled in the 30 years preceding 1999.
            ``(6) Low levels of activity contribute to the high 
        prevalence of obesity among children in the United States.
            ``(7) Obesity related diseases cost the United States 
        economy more than $100,000,000,000 every year.
            ``(8) Inactivity and poor diet cause at least 300,000 
        deaths a year in the United States.
            ``(9) Physically fit adults have significantly reduced risk 
        factors for heart attacks and stroke.
            ``(10) Children are not as active as they should be and 
        fewer than one in four children get 20 minutes of vigorous 
        activity every day of the week.
            ``(11) The Surgeon General's 1996 Report on Physical 
        Activity and Health, and the Centers for Disease Control and 
        Prevention, recommend daily physical education for all students 
        in kindergarten through grade 12.
            ``(12) Twelve years after Congress passed House Concurrent 
        Resolution 97, 100th Congress, agreed to December 11, 1987, 
        encouraging State and local governments and local educational 
        agencies to provide high quality daily physical education 
        programs for all children in kindergarten through grade 12, 
        little progress has been made.
            ``(13) Every student in our Nation's schools, from 
        kindergarten through grade 12, should have the opportunity to 
        participate in quality physical education. It is the unique 
        role of quality physical education programs to develop the 
        health-related fitness, physical competence, and cognitive 
        understanding about physical activity for all students so that 
        the students can adopt healthy and physically active 
        lifestyles.

``SEC. 11754. PROGRAM AUTHORIZED.

    ``The Secretary is authorized to award grants to, and enter into 
contracts with, local educational agencies and community based 
organizations such as Boys and Girls Clubs, Boy Scouts and Girl Scouts, 
and YMCA and YWCA, to pay the Federal share of the costs of initiating, 
expanding, and improving physical education programs, including after 
school programs for kindergarten through grade 12 students by--
            ``(1) providing equipment and support to enable students to 
        actively participate in physical education activities; and
            ``(2) providing funds for staff and teacher training and 
        education.

``SEC. 11755. APPLICATIONS; PROGRAM ELEMENTS.

    ``(a) Applications.--Each local educational agency and community 
based organization desiring a grant or contract under this subpart 
shall submit to the Secretary an application that contains a plan to 
initiate, expand, or improve physical education programs in order to 
make progress toward meeting State standards for physical education.
    ``(b) Program Elements.--A physical education program described in 
any application submitted under subsection (a) may provide--
            ``(1) fitness education and assessment to help children 
        understand, improve, or maintain their physical well-being;
            ``(2) instruction in a variety of motor skills and physical 
        activities designed to enhance the physical, mental, and social 
        or emotional development of every child;
            ``(3) development of cognitive concepts about motor skill 
        and physical fitness that support a lifelong healthy lifestyle;
            ``(4) opportunities to develop positive social and 
        cooperative skills through physical activity participation;
            ``(5) instruction in healthy eating habits and good 
        nutrition; and
            ``(6) teachers of physical education the opportunity for 
        professional development to stay abreast of the latest 
        research, issues, and trends in the field of physical 
        education.
    ``(c) Special Rule.--For the purpose of this subpart, 
extracurricular activities such as team sports and Reserve Officers' 
Training Corps (ROTC) program activities shall not be considered as 
part of the curriculum of a physical education program assisted under 
this subpart.

``SEC. 11756. PROPORTIONALITY.

    ``The Secretary shall ensure that grants awarded and contracts 
entered into under this subpart shall be equitably distributed between 
local educational agencies and community based organizations serving 
urban and rural areas, and between local educational agencies and 
community based organizations serving large and small numbers of 
students.

``SEC. 11757. PRIVATE SCHOOL STUDENTS AND HOME-SCHOOLED STUDENTS.

    ``An application for funds under this subpart may provide for the 
participation, in the activities funded under this subpart, of--
            ``(1) home-schooled children, and their parents and 
        teachers; or
            ``(2) children enrolled in private nonprofit elementary 
        schools or secondary schools, and their parents and teachers.

``SEC. 11758. REPORT REQUIRED FOR CONTINUED FUNDING.

    ``As a condition to continue to receive grant or contract funding 
after the first year of a multiyear grant or contract under this 
subpart, the administrator of the grant or contract for the local 
educational agency or community based organization shall submit to the 
Secretary an annual report that describes the activities conducted 
during the preceding year and demonstrates that progress has been made 
toward meeting State standards for physical education.

``SEC. 11759. REPORT TO CONGRESS.

    ``The Secretary shall submit a report to Congress not later than 
June 1, 2003, that describes the programs assisted under this subpart, 
documents the success of such programs in improving physical fitness, 
and makes such recommendations as the Secretary determines appropriate 
for the continuation and improvement of the programs assisted under 
this subpart.

``SEC. 11760. ADMINISTRATIVE COSTS.

    ``Not more than 5 percent of the grant or contract funds made 
available to a local educational agency or community based organization 
under this subpart for any fiscal year may be used for administrative 
costs.

``SEC. 11761. FEDERAL SHARE; SUPPLEMENT NOT SUPPLANT.

    ``(a) Federal Share.--The Federal share under this subpart may not 
exceed--
            ``(1) 90 percent of the total cost of a project for the 
        first year for which the project receives assistance under this 
        subpart; and
            ``(2) 75 percent of such cost for the second and each 
        subsequent such year.
    ``(b) Supplement Not Supplant.--Funds made available under this 
subpart shall be used to supplement and not supplant other Federal, 
State and local funds available for physical education activities.

``SEC. 11762. AVAILABILITY OF AMOUNTS.

    ``Amounts made available to the Secretary to carry out this subpart 
shall remain available until expended.

               ``Subpart 8--Smaller Learning Communities

``SEC. 11801. 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.

              ``Subpart 9--Authorization of Appropriations

``SEC. 11901. AUTHORIZATION OF APPROPRIATIONS.

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

         TITLE XVII--JOHN H. CHAFEE ENVIRONMENTAL EDUCATION ACT

SEC. 1701. SHORT TITLE.

    (a) This Title.--This title may be cited as the ``John H. Chafee 
Environmental Education Act of 2001''.
    (b) National Environmental Education Act.--Section 1(a) of the 
National Environmental Education Act (20 U.S.C. 5501 note) is amended 
by striking ``National Environmental Education Act'' and inserting 
``John H. Chafee Environmental Education Act''.

SEC. 1702. OFFICE OF ENVIRONMENTAL EDUCATION.

    Section 4 of the John H. Chafee Environmental Education Act (20 
U.S.C. 5503) is amended--
            (1) in subsection (b)--
                    (A) in paragraph (1), by inserting ``objective and 
                scientifically sound'' after ``support'';
                    (B) by striking paragraph (6);
                    (C) by redesignating paragraphs (7) through (13) as 
                paragraphs (6) through (12), respectively; and
                    (D) in paragraph (12) (as so redesignated), by 
                inserting before the period at the end the following: 
                ``through the headquarters and the regional offices of 
                the Agency''; and
            (2) by striking subsection (c) and inserting the following:
    ``(c) Staff.--The Office of Environmental Education shall--
            ``(1) include a headquarters staff of not more than 10 
        full-time equivalent employees; and
            ``(2) be supported by 1 full-time equivalent employee in 
        each regional office of the Agency.
    ``(d) Activities.--The Administrator may carry out the activities 
described in subsection (b) directly or through awards of grants, 
cooperative agreements, or contracts.''.

SEC. 1703. ENVIRONMENTAL EDUCATION GRANTS.

    Section 6 of the John H. Chafee Environmental Education Act (20 
U.S.C. 5505) is amended--
            (1) in the second sentence of subsection (i), by striking 
        ``25 percent'' and inserting ``15 percent''; and
            (2) by adding at the end the following:
    ``(j) Lobbying Activities.--A grant under this section may not be 
used to support a lobbying activity (as described in the documents 
issued by the Office of Management and Budget and designated as OMB 
Circulars No. A-21 and No. A-122).
    ``(k) Guidance Review.--Before the Administrator issues any 
guidance to grant applicants, the guidance shall be reviewed and 
approved by the Science Advisory Board of the Agency established by 
section 8 of the Environmental Research, Development, and Demonstration 
Authorization Act of 1978 (42 U.S.C. 4365).''.

SEC. 1704. JOHN H. CHAFEE MEMORIAL FELLOWSHIP PROGRAM.

    (a) In General.--Section 7 of the John H. Chafee Environmental 
Education Act (20 U.S.C. 5506) is amended to read as follows:

``SEC. 7. JOHN H. CHAFEE MEMORIAL FELLOWSHIP PROGRAM.

    ``(a) Establishment.--There is established the John H. Chafee 
Memorial Fellowship Program for the award and administration of 5 
annual 1-year higher education fellowships in environmental sciences 
and public policy, to be known as `John H. Chafee Fellowships'.
    ``(b) Purpose.--The purpose of the John H. Chafee Memorial 
Fellowship Program is to stimulate innovative graduate level study and 
the development of expertise in complex, relevant, and important 
environmental issues and effective approaches to addressing those 
issues through organized programs of guided independent study and 
environmental research.
    ``(c) Award.--Each John H. Chafee Fellowship shall--
            ``(1) be made available to individual candidates through a 
        sponsoring institution and in accordance with an annual 
        competitive selection process established under subsection 
        (f)(3); and
            ``(2) be in the amount of $25,000.
    ``(d) Focus.--Each John H. Chafee Fellowship shall focus on an 
environmental, natural resource, or public health protection issue that 
a sponsoring institution determines to be appropriate.
    ``(e) Sponsoring Institutions.--The John H. Chafee Fellowships may 
be applied for through any sponsoring institution.
    ``(f) Panel.--
            ``(1) In general.--The National Environmental Education 
        Advisory Council established by section 9(a) shall administer 
        the John H. Chafee Fellowship Panel.
            ``(2) Membership.--The Panel shall consist of 5 members, 
        appointed by a majority vote of members of the National 
        Environmental Education Advisory Council, of whom--
                    ``(A) 2 members shall be professional educators in 
                higher education;
                    ``(B) 2 members shall be environmental scientists; 
                and
                    ``(C) 1 member shall be a public environmental 
                policy analyst.
            ``(3) Duties.--The Panel shall--
                    ``(A) establish criteria for a competitive 
                selection process for recipients of John H. Chafee 
                Fellowships;
                    ``(B) receive applications for John H. Chafee 
                Fellowships; and
                    ``(C) annually review applications and select 
                recipients of John H. Chafee Fellowships.
    ``(g) Distribution of Funds.--The amount of each John H. Chafee 
Fellowship shall be provided directly to each recipient selected by the 
Panel upon receipt of a certification from the recipient that the 
recipient will adhere to a specific and detailed plan of study and 
research.
    ``(h) Funding.--From amounts made available under section 
13(b)(1)(C) for each fiscal year, the Office of Environmental Education 
shall make available--
            ``(1) $125,000 for John H. Chafee Memorial Fellowships; and
            ``(2) $12,500 to pay administrative expenses incurred in 
        carrying out the John H. Chafee Memorial Fellowship Program.''.
    (b) Definitions.--Section 3 of the John H. Chafee Environmental 
Education Act (20 U.S.C. 5502) is amended--
            (1) in paragraph (12), by striking ``and'' at the end;
            (2) in paragraph (13), by striking the period at the end 
        and inserting a semicolon; and
            (3) by adding at the end the following:
            ``(14) `Panel' means the John H. Chafee Fellowship Panel 
        established under section 7(f);
            ``(15) `sponsoring institution' means an institution of 
        higher education;''.
    (c) Conforming Amendment.--The table of contents in section 1(b) of 
the John H. Chafee Environmental Education Act (20 U.S.C. prec. 5501) 
is amended by striking the item relating to section 7 and inserting the 
following:

``Sec. 7. John H. Chafee Memorial Fellowship Program.''.

SEC. 1705. NATIONAL ENVIRONMENTAL EDUCATION AWARDS.

    (a) In General.--Section 8 of the John H. Chafee Environmental 
Education Act (20 U.S.C. 5507) is amended to read as follows:

``SEC. 8. NATIONAL ENVIRONMENTAL EDUCATION AWARDS.

    ``(a) President's Environmental Youth Awards.--The Administrator 
may establish a program for the granting and administration of awards, 
to be known as `President's Environmental Youth Awards', to young 
people in grades kindergarten through 12 to recognize outstanding 
projects to promote local environmental awareness.
    ``(b) Teachers' Awards.--
            ``(1) In general.--The Chairman of the Council on 
        Environmental Quality, on behalf of the President, may 
        establish a program for the granting and administration of 
        awards to recognize--
                    ``(A) teachers in elementary schools and secondary 
                schools who demonstrate excellence in advancing 
                objective and scientifically sound environmental 
                education through innovative approaches; and
                    ``(B) the local educational agencies of the 
                recognized teachers.
            ``(2) Eligibility.--One teacher, and the local education 
        agency employing the teacher, from each State, the District of 
        Columbia, and the Commonwealth of Puerto Rico, shall be 
        eligible to be selected for an award under this subsection.
            ``(3) Authorization.--The Chairman is authorized to provide 
        a cash award of up to $2,500 to each teacher selected to 
        receive an award pursuant to this section, which shall be used 
        to further the recipient's professional development in 
        environmental education. The Chairman is also authorized to 
        provide a cash award of up to $2,500 to the local educational 
        agency employing any teacher selected to receive an award 
        pursuant to this section, which shall be used to fund 
        environmental educational activities and programs. Such awards 
        may not be used for construction costs, general expenses, 
        salaries, bonuses, or other administrative expenses.
            ``(4) Administration.--The Chairman of the Council on 
        Environmental Quality may administer this awards program 
        through a cooperative agreement with the National Environmental 
        Learning Foundation.''.
    (b) Definitions.--Section 3 of the John H. Chafee Environmental 
Education Act (20 U.S.C. 5502) (as amended by section 1704(b)) is 
amended by adding at the end the following:
            ``(16) `elementary school' has the meaning given the term 
        in section 14101 of the Elementary and Secondary Education Act 
        of 1965 (20 U.S.C. 8801);
            ``(17) `secondary school' has the meaning given the term in 
        section 14101 of the Elementary and Secondary Education Act of 
        1965 (20 U.S.C. 8801);''.
    (c) Conforming Amendment.--The table of contents in section 1(b) of 
the John H. Chafee Environmental Education Act (20 U.S.C. prec. 5501) 
is amended by striking the item relating to section 8 and inserting the 
following:

``Sec. 8. National environmental education awards.''.

SEC. 1706. ENVIRONMENTAL EDUCATION ADVISORY COUNCIL AND TASK FORCE.

    Section 9 of the John H. Chafee Environmental Education Act (20 
U.S.C. 5508) is amended--
            (1) in subsection (b)(2)--
                    (A) by striking ``(2) The'' and all that follows 
                through the end of the second sentence and inserting 
                the following:
            ``(2) Membership.--
                    ``(A) In general.--The Advisory Council shall 
                consist of not more than 11 members appointed by the 
                Administrator after consultation with the Secretary.
                    ``(B) Representatives of sectors.--To the maximum 
                extent practicable, the Administrator shall appoint to 
                the Advisory Council at least 2 members to represent 
                each of--
                            ``(i) elementary schools and secondary 
                        schools;
                            ``(ii) colleges and universities;
                            ``(iii) not-for-profit organizations 
                        involved in environmental education;
                            ``(iv) State departments of education and 
                        natural resources; and
                            ``(v) business and industry.'';
                    (B) in the third sentence, by striking ``A 
                representative'' and inserting the following:
                    ``(C) Representative of the secretary.--A 
                representative''; and
                    (C) in the last sentence, by striking ``The 
                conflict'' and inserting the following:
                    ``(D) Conflicts of interest.--The conflict'';
            (2) in subsection (c), by striking paragraph (2) and 
        inserting the following:
            ``(2) Membership.--Membership on the Task Force shall be 
        open to representatives of any Federal agency actively engaged 
        in environmental education.''; and
            (3) in subsection (d), by striking ``(d)(1)'' and all that 
        follows through ``(2) The'' and inserting the following:
    ``(d) Meetings and Reports.--
            ``(1) In general.--The Advisory Council shall--
                    ``(A) hold biennial meetings on timely issues 
                regarding environmental education; and
                    ``(B) issue a report describing the proceedings of 
                each meeting and recommendations resulting from the 
                meeting.
            ``(2) Review and comment on draft reports.--The''.

SEC. 1707. NATIONAL ENVIRONMENTAL LEARNING FOUNDATION.

    (a) Change in Name.--
            (1) In general.--Section 10 of the John H. Chafee 
        Environmental Education Act (20 U.S.C. 5509) is amended--
                    (A) by striking the section heading and inserting 
                the following:

``SEC. 10. NATIONAL ENVIRONMENTAL LEARNING FOUNDATION.'';

                and
                    (B) in the first sentence of subsection (a)(1)(A), 
                by striking ``National Environmental Education and 
                Training Foundation'' and inserting ``National 
                Environmental Learning Foundation''.
            (2) Conforming amendments.--
                    (A) The table of contents in section 1(b) of the 
                John H. Chafee Environmental Education Act (20 U.S.C. 
                prec. 5501) is amended by striking the item relating to 
                section 10 and inserting the following:

``Sec. 10. National Environmental Learning Foundation.''.
                    (B) Section 3 of the John H. Chafee Environmental 
                Education Act (20 U.S.C. 5502) (as amended by section 
                1704(b)) is amended--
                            (i) by striking paragraph (12) and 
                        inserting the following:
            ``(12) `Foundation' means the National Environmental 
        Learning Foundation established by section 10;''; and
                            (ii) in paragraph (13), by striking 
                        ``National Environmental Education and Training 
                        Foundation'' and inserting ``Foundation''.
    (b) Number of Directors.--Section 10(b)(1)(A) of the John H. Chafee 
Environmental Education Act (20 U.S.C. 5509(b)(1)(A)) is amended in the 
first sentence by striking ``13'' and inserting ``19''.
    (c) Acknowledgment of Donors.--Section 10(d) of the John H. Chafee 
Environmental Education Act (20 U.S.C. 5509(d)) is amended by striking 
paragraph (3) and inserting the following:
            ``(3) Acknowledgment of donors.--The Foundation may 
        acknowledge receipt of donations by means of a listing of the 
        names of donors in materials distributed by the Foundation, 
        except that any such acknowledgment--
                    ``(A) shall not appear in educational material 
                presented to students; and
                    ``(B) shall not identify a donor by means of a 
                logo, letterhead, or other corporate commercial symbol, 
                slogan, or product.''.
    (d) Administrative Services and Support.--Section 10(e) of the John 
H. Chafee Environmental Education Act (20 U.S.C. 5509(e)) is amended in 
the first sentence by striking ``for a period of up to 4 years from the 
date of enactment of this Act,''.

SEC. 1708. THEODORE ROOSEVELT ENVIRONMENTAL STEWARDSHIP GRANT PROGRAM.

    (a) In General.--The John H. Chafee Environmental Education Act is 
amended--
            (1) by redesignating section 11 (20 U.S.C. 5510) as section 
        13; and
            (2) by inserting after section 10 the following:

``SEC. 11. THEODORE ROOSEVELT ENVIRONMENTAL STEWARDSHIP GRANT PROGRAM.

    ``(a) Establishment.--
            ``(1) In general.--There is established a grant program to 
        be known as the `Theodore Roosevelt Environmental Stewardship 
        Grant Program' (referred to in this section as the `Program') 
        for the award and administration of grants to consortia of 
        institutions of higher education to pay the Federal share of 
        the cost of carrying out collaborative student, campus, and 
        community-based environmental stewardship activities.
            ``(2) Federal share.--The Federal share shall be 75 
        percent.
    ``(b) Purpose.--The purpose of the Program is to build awareness 
of, encourage commitment to, and promote participation in environmental 
stewardship--
            ``(1) among students at institutions of higher education; 
        and
            ``(2) in the relationship between--
                    ``(A) such students and campuses; and
                    ``(B) the communities in which the students and 
                campuses are located.
    ``(c) Award.--Grants under the Program shall be made available to 
consortia of institutions of higher education in accordance with an 
annual competitive selection process established under subsection 
(d)(2)(A).
    ``(d) Administration.--
            ``(1) In general.--The Office of Environmental Education 
        established under section 4 shall administer the Program.
            ``(2) Duties.--The Office of Environmental Education 
        shall--
                    ``(A) establish criteria for a competitive 
                selection process for recipients of grants under the 
                Program;
                    ``(B) receive applications for grants under the 
                Program; and
                    ``(C) annually review applications and select 
                recipients of grants under the Program.
            ``(3) Criteria.--In establishing criteria for a competitive 
        selection process for recipients of grants under the Program, 
        the Office of Environmental Education shall include, at a 
        minimum, as criteria, the extent to which a grant will--
                    ``(A) directly facilitate environmental stewardship 
                activities, including environmental protection, 
                preservation, or improvement activities; and
                    ``(B) stimulate the availability of other funds for 
                those activities.
    ``(e) Conditions on Use of Funds.--With respect to the funds made 
available to carry out this section under section 13(a)(1)--
            ``(1) not fewer than 6 grants each year shall be awarded 
        using those funds; and
            ``(2) no grant made using those funds shall be in an amount 
        that exceeds $500,000.''.
    (b) Definitions.--Section 3 of the John H. Chafee Environmental 
Education Act (20 U.S.C. 5502) (as amended by section 1705(b)) is 
amended by adding at the end the following:
            ``(18) `consortium of institutions of higher education' 
        means a cooperative arrangement among 2 or more institutions of 
        higher education; and
            ``(19) `institution of higher education' has the meaning 
        given the term in section 101 of the Higher Education Act of 
        1965 (20 U.S.C. 1001).''.

SEC. 1709. INFORMATION STANDARDS.

    (a) In General.--The John H. Chafee Environmental Education Act is 
amended by inserting after section 11 (as added by section 1708(a)(2)) 
the following:

``SEC. 12. INFORMATION STANDARDS.

    ``In disseminating information under this Act, the Office of 
Environmental Education shall comply with the guidelines issued by the 
Administrator under section 515 of the Treasury and General Government 
Appropriations Act, 2001 (44 U.S.C. 3516 note; 114 Stat. 2763A-153).''.
    (b) Conforming Amendment.--The table of contents in section 1(b) of 
the John H. Chafee Environmental Education Act (20 U.S.C. prec. 5501) 
is amended by striking the item relating to section 11 and inserting 
the following:

``Sec. 11. Theodore Roosevelt Environmental Stewardship Grant Program.
``Sec. 12. Information standards.
``Sec. 13. Authorization of appropriations.''.

SEC. 1710. AUTHORIZATION OF APPROPRIATIONS.

    Section 13 of the John H. Chafee Environmental Education Act (20 
U.S.C. 5510) (as redesignated by section 1708(a)(1)) is amended--
            (1) by redesignating subsection (c) as subsection (d);
            (2) by striking the section heading and subsections (a) and 
        (b) and inserting the following:

``SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There is authorized to be appropriated to the 
Environmental Protection Agency to carry out this Act $13,000,000 for 
each of fiscal years 2002 through 2007, of which--
            ``(1) $3,000,000 for each fiscal year shall be used to 
        carry out section 11; and
            ``(2) $10,000,000 for each fiscal year shall be allocated 
        in accordance with subsection (b).
    ``(b) Limitations.--
            ``(1) In general.--Subject to paragraph (2), of the amounts 
        made available under subsection (a)(2) for each fiscal year--
                    ``(A) not more than 25 percent may be used for the 
                activities of the Office of Environmental Education 
                established under section 4;
                    ``(B) not more than 25 percent may be used for the 
                operation of the environmental education and training 
                program under section 5;
                    ``(C) not less than 38 percent shall be used for 
                environmental education grants under section 6 and for 
                the John H. Chafee Memorial Fellowship Program under 
                section 7; and
                    ``(D) 10 percent shall be used for the activities 
                of the Foundation under section 10; and
                    ``(E) not less than 2 percent shall be available to 
                support Teachers' Awards under section 8(b).
            ``(2) Administrative expenses.--Of the amounts made 
        available under paragraph (1)(A) for each fiscal year, not more 
        than 10 percent may be used for administrative expenses of the 
        Office of Environmental Education.
    ``(c) Expense Report.--As soon as practicable after the end of each 
fiscal year, the Administrator shall submit to Congress a report 
describing in detail the activities for which funds appropriated for 
the fiscal year were expended.''; and
            (3) in subsection (d) (as redesignated by paragraph (1))--
                    (A) by striking ``National Environmental Education 
                and Training Foundation'' and inserting ``Foundation''; 
                and
                    (B) in paragraph (2), by striking ``section 10(d) 
                of this Act'' and inserting ``section 10(e)''.

            Attest:

                                                             Secretary.
107th CONGRESS

  1st Session

                                H. R. 1

_______________________________________________________________________

                               AMENDMENT

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