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[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1 Enrolled Bill (ENR)]

        H.R.1

                      One Hundred Seventh Congress

                                 of the

                        United States of America

                          AT THE FIRST SESSION

         Begun and held at the City of Washington on Wednesday,
             the third day of January, two thousand and one

                                 An Act

 
   To close the achievement gap with accountability, flexibility, and 
                choice, so that no child is left behind.

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

SECTION 1. SHORT TITLE.

    This title may be cited as the ``No Child Left Behind Act of 
2001''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. References.
Sec. 4. Transition.
Sec. 5. Effective date.
Sec. 6. Table of contents of Elementary and Secondary Education Act of 
          1965.

    TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

Sec. 101. Improving the academic achievement of the disadvantaged.

TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS AND 
                               PRINCIPALS

Sec. 201. Teacher and principal training and recruiting fund.
Sec. 202. Continuation of awards.

   TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS

Sec. 301. Language instruction for limited English proficient children 
          and immigrant children and youth.

                     TITLE IV--21ST CENTURY SCHOOLS

Sec. 401. 21st Century schools.

   TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

Sec. 501. Innovative programs and parental choice provisions.
Sec. 502. Continuation of awards.

                TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

Sec. 601. Flexibility and accountability.
Sec. 602. Amendment to the National Education Statistics Act of 1994.

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

Sec. 701. Indians, Native Hawaiians, and Alaska Natives.
Sec. 702. Conforming amendments.
Sec. 703. Savings provisions.

                     TITLE VIII--IMPACT AID PROGRAM

Sec. 801. Payments relating to Federal acquisition of real property.
Sec. 802. Payments for eligible federally connected children.
Sec. 803. Construction.
Sec. 804. State consideration of payments in providing State aid.
Sec. 805. Authorization of appropriations.

                      TITLE IX--GENERAL PROVISIONS

Sec. 901. General provisions.

   TITLE X--REPEALS, REDESIGNATIONS, AND AMENDMENTS TO OTHER STATUTES

                             Part A--Repeals

Sec. 1011. Repeals.
Sec. 1012. Conforming clerical and technical amendments.

                         Part B--Redesignations

Sec. 1021. Comprehensive Regional Assistance Centers.
Sec. 1022. National Diffusion Network.
Sec. 1023. Eisenhower Regional Mathematics and Science Education 
          Consortia.
Sec. 1024. Technology-based technical assistance.
Sec. 1025. Conforming amendments.

                       Part C--Homeless Education

Sec. 1031. Short title.
Sec. 1032. Education for homeless children and youths.
Sec. 1033. Conforming amendment.
Sec. 1034. Technical amendment.

              Part D--Native American Education Improvement

Sec. 1041. Short title.
Sec. 1042. Amendments to the Education Amendments of 1978.
Sec. 1043. Tribally Controlled Schools Act of 1988.
Sec. 1044. Lease payments by the Ojibwa Indian School.
Sec. 1045. Enrollment and general assistance payments.

                  Part E--Higher Education Act of 1965

Sec. 1051. Preparing tomorrow's teachers to use technology.
Sec. 1052. Continuation of awards.

                Part F--General Education Provisions Act

Sec. 1061. Student privacy, parental access to information, and 
          administration of certain physical examinations to minors.
Sec. 1062. Technical corrections.

                  Part G--Miscellaneous Other Statutes

Sec. 1071. Title 5 of the United States Code.
Sec. 1072. Department of Education Organization Act.
Sec. 1073. Education Flexibility Partnership Act of 1999.
Sec. 1074. Educational Research, Development, Dissemination, and 
          Improvement Act of 1994.
Sec. 1075. National Child Protection Act of 1993.
Sec. 1076. Technical and conforming amendments.

SEC. 3. 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. 4. TRANSITION.

    (a) Multi-Year Awards.--Except as otherwise provided in this Act, 
the recipient of a multi-year award under the Elementary and Secondary 
Education Act of 1965, as that Act was in effect prior to the date of 
enactment of this Act, shall continue to receive funds in accordance 
with the terms of that award, except that no additional funds may be 
awarded after September 30, 2002.
    (b) Planning and Transition.--Notwithstanding any other provision 
of law, a recipient of funds under the Elementary and Secondary 
Education Act of 1965, as that Act was in effect prior to the date of 
enactment of this Act, may use funds available to the recipient under 
that predecessor authority to carry out necessary and reasonable 
planning and transition activities in order to ensure an orderly 
implementation of programs authorized by this Act, and the amendments 
made by this Act.
    (c) Orderly Transition.--The Secretary shall take such steps as are 
necessary to provide for the orderly transition to, and implementation 
of, programs authorized by this Act, and by the amendments made by this 
Act, from programs authorized by the Elementary and Secondary Education 
Act of 1965, as that Act was in effect prior to the date of enactment 
of this Act.

SEC. 5. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided in this Act, this 
Act, and the amendments made by this Act, shall be effective upon the 
date of enactment of this Act.
    (b) Noncompetitive Programs.--With respect to noncompetitive 
programs under which any funds are allotted by the Secretary of 
Education to recipients on the basis of a formula, this Act, and the 
amendments made by this Act, shall take effect on July 1, 2002.
    (c) Competitive Programs.--With respect to programs that are 
conducted by the Secretary on a competitive basis, this Act, and the 
amendments made by this Act, shall take effect with respect to 
appropriations for use under those programs for fiscal year 2002.
    (d) Impact Aid.--With respect to title VIII (Impact Aid), this Act, 
and the amendments made by this Act, shall take effect with respect to 
appropriations for use under that title for fiscal year 2002.

SEC. 6. TABLE OF CONTENTS OF ELEMENTARY AND SECONDARY EDUCATION ACT OF 
              1965.

    The Act is amended--
        (1) in the heading of section 1, by striking ``table of 
    contents'' and inserting ``short title''; and
        (2) by adding after section 1 the following new section:

``SEC. 2. TABLE OF CONTENTS.

    ``The table of contents for this Act is as follows:

``Sec. 1. Short title.
``Sec. 2. Table of contents.

   ``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

``Sec. 1001. Statement of purpose.
``Sec. 1002. Authorization of appropriations.
``Sec. 1003. School improvement.
``Sec. 1004. State administration.

    ``Part A--Improving Basic Programs Operated by Local Educational 
                                Agencies

                 ``Subpart 1--Basic Program Requirements

``Sec. 1111. State plans.
``Sec. 1112. Local educational agency plans.
``Sec. 1113. Eligible school attendance areas.
``Sec. 1114. Schoolwide programs.
``Sec. 1115. Targeted assistance schools.
``Sec. 1116. Academic assessment and local educational agency and school 
          improvement.
``Sec. 1117. School support and recognition.
``Sec. 1118. Parental involvement.
``Sec. 1119. Qualifications for teachers and paraprofessionals.
``Sec. 1120. Participation of children enrolled in private schools.
``Sec. 1120A. Fiscal requirements.
``Sec. 1120B. Coordination requirements.

                        ``Subpart 2--Allocations

``Sec. 1121. Grants for the outlying areas and the Secretary of the 
          Interior.
``Sec. 1122. Allocations to States.
``Sec. 1124. Basic grants to local educational agencies.
``Sec. 1124A. Concentration grants to local educational agencies.
``Sec. 1125. Targeted grants to local educational agencies.
``Sec. 1125AA. Adequacy of funding of targeted grants to local 
          educational agencies in fiscal years after fiscal year 2001.
``Sec. 1125A. Education finance incentive grant program.
``Sec. 1126. Special allocation procedures.
``Sec. 1127. Carryover and waiver.

           ``Part B--Student Reading Skills Improvement Grants

                       ``Subpart 1--Reading First

``Sec. 1201. Purposes.
``Sec. 1202. Formula grants to State educational agencies.
``Sec. 1203. State formula grant applications.
``Sec. 1204. Targeted assistance grants.
``Sec. 1205. External evaluation.
``Sec. 1206. National activities.
``Sec. 1207. Information dissemination.
``Sec. 1208. Definitions.

                    ``Subpart 2--Early Reading First

``Sec. 1221. Purposes; definitions.
``Sec. 1222. Local Early Reading First grants.
``Sec. 1223. Federal administration.
``Sec. 1224. Information dissemination.
``Sec. 1225. Reporting requirements.
``Sec. 1226. Evaluation.

  ``Subpart 3--William F. Goodling Even Start Family Literacy Programs

``Sec. 1231. Statement of purpose.
``Sec. 1232. Program authorized.
``Sec. 1233. State educational agency programs.
``Sec. 1234. Uses of funds.
``Sec. 1235. Program elements.
``Sec. 1236. Eligible participants.
``Sec. 1237. Applications.
``Sec. 1238. Award of subgrants.
``Sec. 1239. Evaluation.
``Sec. 1240. Indicators of program quality.
``Sec. 1241. Research.
``Sec. 1242. Construction.

        ``Subpart 4--Improving Literacy Through School Libraries

``Sec. 1251. Improving literacy through school libraries.

                ``Part C--Education of Migratory Children

``Sec. 1301. Program purpose.
``Sec. 1302. Program authorized.
``Sec. 1303. State allocations.
``Sec. 1304. State applications; services.
``Sec. 1305. Secretarial approval; peer review.
``Sec. 1306. Comprehensive needs assessment and service-delivery plan; 
          authorized activities.
``Sec. 1307. Bypass.
``Sec. 1308. Coordination of migrant education activities.
``Sec. 1309. Definitions.

 ``Part D--Prevention and Intervention Programs for Children and Youth 
                who are Neglected, Delinquent, or At-risk

``Sec. 1401. Purpose and program authorization.
``Sec. 1402. Payments for programs under this part.

                   ``Subpart 1--State Agency Programs

``Sec. 1411. Eligibility.
``Sec. 1412. Allocation of funds.
``Sec. 1413. State reallocation of funds.
``Sec. 1414. State plan and State agency applications.
``Sec. 1415. Use of funds.
``Sec. 1416. Institution-wide projects.
``Sec. 1417. Three-year programs or projects.
``Sec. 1418. Transition services.
``Sec. 1419. Evaluation; technical assistance; annual model program.

                   ``Subpart 2--Local Agency Programs

``Sec. 1421. Purpose.
``Sec. 1422. Programs operated by local educational agencies.
``Sec. 1423. Local educational agency applications.
``Sec. 1424. Uses of funds.
``Sec. 1425. Program requirements for correctional facilities receiving 
          funds under this section.
``Sec. 1426. Accountability.

                     ``Subpart 3--General Provisions

``Sec. 1431. Program evaluations.
``Sec. 1432. Definitions.

                ``Part E--National Assessment of Title I

``Sec. 1501. Evaluations.
``Sec. 1502. Demonstrations of innovative practices.
``Sec. 1503. Assessment evaluation.
``Sec. 1504. Close Up fellowship program.

                  ``Part F--Comprehensive School Reform

``Sec. 1601. Purpose.
``Sec. 1602. Program authorization.
``Sec. 1603. State applications.
``Sec. 1604. State use of funds.
``Sec. 1605. Local applications.
``Sec. 1606. Local use of funds.
``Sec. 1607. Evaluation and reports.
``Sec. 1608. Quality initiatives.

                  ``Part G--Advanced Placement Programs

``Sec. 1701. Short title.
``Sec. 1702. Purposes.
``Sec. 1703. Funding distribution rule.
``Sec. 1704. Advanced placement test fee program.
``Sec. 1705. Advanced placement incentive program grants.
``Sec. 1706. Supplement, not supplant.
``Sec. 1707. Definitions.

                   ``Part H--School Dropout Prevention

``Sec. 1801. Short title.
``Sec. 1802. Purpose.
``Sec. 1803. Authorization of appropriations.

               ``Subpart 1--Coordinated National Strategy

``Sec. 1811. National activities.

            ``Subpart 2--School Dropout Prevention Initiative

``Sec. 1821. Definitions.
``Sec. 1822. Program authorized.
``Sec. 1823. Applications.
``Sec. 1824. State reservation.
``Sec. 1825. Strategies and capacity building.
``Sec. 1826. Selection of local educational agencies for subgrants.
``Sec. 1827. Community based organizations.
``Sec. 1828. Technical assistance.
``Sec. 1829. School dropout rate calculation.
``Sec. 1830. Reporting and accountability.

                      ``Part I--General Provisions

``Sec. 1901. Federal regulations.
``Sec. 1902. Agreements and records.
``Sec. 1903. State administration.
``Sec. 1904. Local educational agency spending audits.
``Sec. 1905. Prohibition against Federal mandates, direction, or 
          control.
``Sec. 1906. Rule of construction on equalized spending.
``Sec. 1907. State report on dropout data.
``Sec. 1908. Regulations for sections 1111 and 1116.

 ``TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS 
                             AND PRINCIPALS

      ``Part A--Teacher and Principal Training and Recruiting Fund

``Sec. 2101. Purpose.
``Sec. 2102. Definitions.
``Sec. 2103. Authorizations of appropriations.

                      ``Subpart 1--Grants to States

``Sec. 2111. Allotments to States.
``Sec. 2112. State applications.
``Sec. 2113. State use of funds.

          ``Subpart 2--Subgrants to Local Educational Agencies

``Sec. 2121. Allocations to local educational agencies.
``Sec. 2122. Local applications and needs assessment.
``Sec. 2123. Local use of funds.

             ``Subpart 3--Subgrants to Eligible Partnerships

``Sec. 2131. Definitions.
``Sec. 2132. Subgrants.
``Sec. 2133. Applications.
``Sec. 2134. Use of funds.

                       ``Subpart 4--Accountability

``Sec. 2141. Technical assistance and accountability.

                    ``Subpart 5--National Activities

``Sec. 2151. National activities of demonstrated effectiveness.

             ``Part B--Mathematics and Science Partnerships

``Sec. 2201. Purpose; definitions.
``Sec. 2202. Grants for mathematics and science partnerships.
``Sec. 2203. Authorization of appropriations.

                ``Part C--Innovation for Teacher Quality

                  ``Subpart 1--Transitions to Teaching

                 ``CHAPTER A--TROOPS-TO-TEACHERS PROGRAM

``Sec. 2301. Definitions.
``Sec. 2302. Authorization of Troops-to-Teachers Program.
``Sec. 2303. Recruitment and selection of program participants.
``Sec. 2304. Participation agreement and financial assistance.
``Sec. 2305. Participation by States.
``Sec. 2306. Support of innovative preretirement teacher certification 
          programs.
``Sec. 2307. Reporting requirements.

               ``CHAPTER B--TRANSITION TO TEACHING PROGRAM

``Sec. 2311. Purposes.
``Sec. 2312. Definitions.
``Sec. 2313. Grant program.
``Sec. 2314. Evaluation and accountability for recruiting and retaining 
          teachers.

                     ``CHAPTER C--GENERAL PROVISIONS

``Sec. 2321. Authorization of appropriations.

                  ``Subpart 2--National Writing Project

``Sec. 2331. Purposes.
``Sec. 2332. National Writing Project.

                      ``Subpart 3--Civic Education

``Sec. 2341. Short title.
``Sec. 2342. Purpose.
``Sec. 2343. General authority.
``Sec. 2344. We the People program.
``Sec. 2345. Cooperative civic education and economic education exchange 
          programs.
``Sec. 2346. Authorization of appropriations.

          ``Subpart 4--Teaching of Traditional American History

``Sec. 2351. Establishment of program.
``Sec. 2352. Authorization of appropriations.

                ``Subpart 5--Teacher Liability Protection

``Sec. 2361. Short title.
``Sec. 2362. Purpose.
``Sec. 2363. Definitions.
``Sec. 2364. Applicability.
``Sec. 2365. Preemption and election of State nonapplicability.
``Sec. 2366. Limitation on liability for teachers.
``Sec. 2367. Allocation of responsibility for noneconomic loss.
``Sec. 2368. Effective date.

            ``Part D--Enhancing Education Through Technology

``Sec. 2401. Short title.
``Sec. 2402. Purposes and goals.
``Sec. 2403. Definitions.
``Sec. 2404. Authorization of appropriations.

             ``Subpart 1--State and Local Technology Grants

``Sec. 2411. Allotment and reallotment.
``Sec. 2412. Use of allotment by State.
``Sec. 2413. State applications.
``Sec. 2414. Local applications.
``Sec. 2415. State activities.
``Sec. 2416. Local activities.

               ``Subpart 2--National Technology Activities

``Sec. 2421. National activities.
``Sec. 2422. National education technology plan.

                 ``Subpart 3--Ready-to-Learn Television

``Sec. 2431. Ready-to-Learn Television.

  ``Subpart 4--Limitation on Availability of Certain Funds for Schools

``Sec. 2441. Internet safety.

  ``TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS

``Sec. 3001. Authorizations of appropriations; condition on 
          effectiveness of parts.

   ``Part A--English Language Acquisition, Language Enhancement, and 
                        Academic Achievement Act

``Sec. 3101. Short title.
``Sec. 3102. Purposes.

 ``Subpart 1--Grants and Subgrants for English Language Acquisition and 
                          Language Enhancement

``Sec. 3111. Formula grants to States.
``Sec. 3112. Native American and Alaska Native children in school.
``Sec. 3113. State and specially qualified agency plans.
``Sec. 3114. Within-State allocations.
``Sec. 3115. Subgrants to eligible entities.
``Sec. 3116. Local plans.

             ``Subpart 2--Accountability and Administration

``Sec. 3121. Evaluations.
``Sec. 3122. Achievement objectives and accountability.
``Sec. 3123. Reporting requirements.
``Sec. 3124. Coordination with related programs.
``Sec. 3125. Rules of construction.
``Sec. 3126. Legal authority under State law.
``Sec. 3127. Civil rights.
``Sec. 3128. Programs for Native Americans and Puerto Rico.
``Sec. 3129. Prohibition.

                    ``Subpart 3--National Activities

``Sec. 3131. National professional development project.

                        ``Subpart 4--Definitions

``Sec. 3141. Eligible entity.

      ``Part B--Improving Language Instruction Educational Programs

``Sec. 3201. Short title.
``Sec. 3202. Purpose.
``Sec. 3203. Native American children in school.
``Sec. 3204. Residents of the territories and freely associated states.

            ``Subpart 1--Program Development and Enhancement

``Sec. 3211. Financial assistance for language instruction educational 
          programs.
``Sec. 3212. Program enhancement activities.
``Sec. 3213. Comprehensive school and systemwide improvement activities.
``Sec. 3214. Applications.
``Sec. 3215. Capacity building.
``Sec. 3216. Programs for Native Americans and Puerto Rico.
``Sec. 3217. Evaluations.
``Sec. 3218. Construction.

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

``Sec. 3221. Authority.
``Sec. 3222. Research.
``Sec. 3223. Academic excellence awards.
``Sec. 3224. State grant program.
``Sec. 3225. Instruction materials development.

                  ``Subpart 3--Professional Development

``Sec. 3231. Professional development grants.

           ``Subpart 4--Emergency Immigrant Education Program

``Sec. 3241. Purpose.
``Sec. 3242. State administrative costs.
``Sec. 3243. Withholding.
``Sec. 3244. State allotments.
``Sec. 3245. State applications.
``Sec. 3246. Administrative provisions.
``Sec. 3247. Uses of funds.
``Sec. 3248. Reports.

                       ``Subpart 5--Administration

``Sec. 3251. Release time.
``Sec. 3252. Notification.
``Sec. 3253. Coordination and reporting requirements.

                      ``Part C--General Provisions

``Sec. 3301. Definitions.
``Sec. 3302. Parental notification.
``Sec. 3303. National Clearinghouse.
``Sec. 3304. Regulations.

                    ``TITLE IV--21ST CENTURY SCHOOLS

          ``Part A--Safe and Drug-Free Schools and Communities

``Sec. 4001. Short title.
``Sec. 4002. Purpose.
``Sec. 4003. Authorization of appropriations.

                        ``Subpart 1--State Grants

``Sec. 4111. Reservations and allotments.
``Sec. 4112. Reservation of State funds for safe and drug-free schools.
``Sec. 4113. State application.
``Sec. 4114. Local educational agency program.
``Sec. 4115. Authorized activities.
``Sec. 4116. Reporting.
``Sec. 4117. Programs for Native Hawaiians.

                     ``Subpart 2--National Programs

``Sec. 4121. Federal activities.
``Sec. 4122. Impact evaluation.
``Sec. 4123. Hate crime prevention.
``Sec. 4124. Safe and Drug-Free Schools and Communities Advisory 
          Committee.
``Sec. 4125. National coordinator program.
``Sec. 4126. Community service grant program.
``Sec. 4127. School Security Technology and Resource Center.
``Sec. 4128. National Center for School and Youth Safety.
``Sec. 4129. Grants to reduce alcohol abuse.
``Sec. 4130. Mentoring programs.

                       ``Subpart 3--Gun Possession

``Sec. 4141. Gun-free requirements.

                     ``Subpart 4--General Provisions

``Sec. 4151. Definitions.
``Sec. 4152. Message and materials.
``Sec. 4153. Parental consent.
``Sec. 4154. Prohibited uses of funds.
``Sec. 4155. Transfer of school disciplinary records.

            ``Part B--21st Century Community Learning Centers

``Sec. 4201. Purpose; definitions.
``Sec. 4202. Allotments to States.
``Sec. 4203. State application.
``Sec. 4204. Local competitive grant program.
``Sec. 4205. Local activities.
``Sec. 4206. Authorization of appropriations.

                  ``Part C--Environmental Tobacco Smoke

``Sec. 4301. Short title.
``Sec. 4302. Definitions.
``Sec. 4303. Nonsmoking policy for children's services.
``Sec. 4304. Preemption.

  ``TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

                      ``Part A--Innovative Programs

``Sec. 5101. Purposes, State and local responsibility.

                  ``Subpart 1--State and Local Programs

``Sec. 5111. Allotment to States.
``Sec. 5112. Allocation to local educational agencies.

                       ``Subpart 2--State Programs

``Sec. 5121. State uses of funds.
``Sec. 5122. State applications.

            ``Subpart 3--Local Innovative Education Programs

``Sec. 5131. Local uses of funds.
``Sec. 5132. Administrative authority.
``Sec. 5133. Local applications.

                     ``Subpart 4--General Provisions

``Sec. 5141. Maintenance of effort.
``Sec. 5142. Participation of children enrolled in private schools.
``Sec. 5143. Federal administration.
``Sec. 5144. Supplement, not supplant.
``Sec. 5145. Definitions.
``Sec. 5146. Authorization of appropriations.

                    ``Part B--Public Charter Schools

                  ``Subpart 1--Charter School Programs

``Sec. 5201. Purpose.
``Sec. 5202. Program authorized.
``Sec. 5203. Applications.
``Sec. 5204. Administration.
``Sec. 5205. National activities.
``Sec. 5206. Federal formula allocation during first year and for 
          successive enrollment expansions.
``Sec. 5207. Solicitation of input from charter school operators.
``Sec. 5208. Records transfer.
``Sec. 5209. Paperwork reduction.
``Sec. 5210. Definitions.
``Sec. 5211. Authorization of appropriations.

  ``Subpart 2--Credit Enhancement Initiatives To Assist Charter School 
           Facility Acquisition, Construction, and Renovation

``Sec. 5221. Purpose.
``Sec. 5222. Grants to eligible entities.
``Sec. 5223. Applications.
``Sec. 5224. Charter school objectives.
``Sec. 5225. Reserve account.
``Sec. 5226. Limitation on administrative costs.
``Sec. 5227. Audits and reports.
``Sec. 5228. No full faith and credit for grantee obligations.
``Sec. 5229. Recovery of funds.
``Sec. 5230. Definitions.
``Sec. 5231. Authorization of appropriations.

          ``Subpart 3--Voluntary Public School Choice Programs

``Sec. 5241. Grants.
``Sec. 5242. Uses of funds.
``Sec. 5243. Applications.
``Sec. 5244. Priorities.
``Sec. 5245. Requirements and voluntary participation.
``Sec. 5246. Evaluations.
``Sec. 5247. Definitions.
``Sec. 5248. Authorization of appropriations.

                   ``Part C--Magnet Schools Assistance

``Sec. 5301. Findings and purpose.
``Sec. 5302. Definition.
``Sec. 5303. Program authorized.
``Sec. 5304. Eligibility.
``Sec. 5305. Applications and requirements.
``Sec. 5306. Priority.
``Sec. 5307. Use of funds.
``Sec. 5308. Prohibition.
``Sec. 5309. Limitations.
``Sec. 5310. Evaluations.
``Sec. 5311. Authorization of appropriations; reservation.

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

``Sec. 5401. Authorization of appropriations.

           ``Subpart 1--Fund for the Improvement of Education

``Sec. 5411. Programs authorized.
``Sec. 5412. Applications.
``Sec. 5413. Program requirements.
``Sec. 5414. Studies of national significance.

    ``Subpart 2--Elementary and Secondary School Counseling Programs

``Sec. 5421. Elementary and secondary school counseling programs.

            ``Subpart 3--Partnerships in Character Education

``Sec. 5431. Partnerships in Character Education program.

                ``Subpart 4--Smaller Learning Communities

``Sec. 5441. Smaller learning communities.

   ``Subpart 5--Reading Is Fundamental--Inexpensive Book Distribution 
                                 Program

``Sec. 5451. Inexpensive book distribution program for reading 
          motivation.

                ``Subpart 6--Gifted and Talented Students

``Sec. 5461. Short title.
``Sec. 5462. Purpose.
``Sec. 5463. Rule of construction.
``Sec. 5464. Authorized programs.
``Sec. 5465. Program priorities.
``Sec. 5466. General provisions.

                    ``Subpart 7--Star Schools Program

``Sec. 5471. Short title.
``Sec. 5472. Purposes.
``Sec. 5473. Grant program authorized.
``Sec. 5474. Applications.
``Sec. 5475. Other grant assistance.
``Sec. 5476. Administrative provisions.
``Sec. 5477. Definitions.

                       ``Subpart 8--Ready to Teach

``Sec. 5481. Grants.
``Sec. 5482. Application required.
``Sec. 5483. Reports and evaluation.
``Sec. 5484. Digital educational programming grants.
``Sec. 5485. Administrative costs.

            ``Subpart 9--Foreign Language Assistance Program

``Sec. 5491. Short title.
``Sec. 5492. Program authorized.
``Sec. 5493. Applications.
``Sec. 5494. Elementary school foreign language incentive program.

                    ``Subpart 10--Physical Education

``Sec. 5501. Short title.
``Sec. 5502. Purpose.
``Sec. 5503. Program authorized.
``Sec. 5504. Applications.
``Sec. 5505. Requirements.
``Sec. 5506. Administrative provisions.
``Sec. 5507. Supplement, not supplant.

               ``Subpart 11--Community Technology Centers

``Sec. 5511. Purpose and program authorization.
``Sec. 5512. Eligibility and application requirements.
``Sec. 5513. Uses of funds.

   ``Subpart 12--Educational, Cultural, Apprenticeship, and Exchange 
  Programs for Alaska Natives, Native Hawaiians, and Their Historical 
              Whaling and Trading Partners in Massachusetts

``Sec. 5521. Short title.
``Sec. 5522. Findings and purposes.
``Sec. 5523. Program authorization.
``Sec. 5524. Administrative provisions.
``Sec. 5525. Availability of funds.
``Sec. 5526. Definitions.

             ``Subpart 13--Excellence in Economic Education

``Sec. 5531. Short title.
``Sec. 5532. Purpose and goals.
``Sec. 5533. Grant program authorized.
``Sec. 5534. Applications.
``Sec. 5535. Requirements.
``Sec. 5536. Administrative provisions.
``Sec. 5537. Supplement, not supplant.

      ``Subpart 14--Grants to Improve the Mental Health of Children

``Sec. 5541. Grants for the integration of schools and mental health 
          systems.
``Sec. 5542. Promotion of school readiness through early childhood 
          emotional and social development.

                     ``Subpart 15--Arts in Education

``Sec. 5551. Assistance for arts education.

 ``Subpart 16--Parental Assistance and Local Family Information Centers

``Sec. 5561. Purposes.
``Sec. 5562. Grants authorized.
``Sec. 5563. Applications.
``Sec. 5564. Uses of funds.
``Sec. 5565. Administrative provisions.
``Sec. 5566. Local family information centers.

               ``Subpart 17--Combatting Domestic Violence

``Sec. 5571. Grants to combat the impact of experiencing or witnessing 
          domestic violence on elementary and secondary school children.

             ``Subpart 18--Healthy, High-Performance Schools

``Sec. 5581. Grant program authorized.
``Sec. 5582. State uses of funds.
``Sec. 5583. Local uses of funds.
``Sec. 5584. Report to Congress.
``Sec. 5585. Limitations.
``Sec. 5586. Healthy, high-performance school building defined.

    ``Subpart 19--Grants for Capital Expenses of Providing Equitable 
                  Services for Private School Students

``Sec. 5591. Grant program authorized.
``Sec. 5592. Uses of funds.
``Sec. 5593. Allotments to States.
``Sec. 5594. Subgrants to local educational agencies.
``Sec. 5595. Capital expenses defined.
``Sec. 5596. Termination.

   ``Subpart 20--Additional Assistance for Certain Local Educational 
            Agencies Impacted by Federal Property Acquisition

``Sec. 5601. Reservation.
``Sec. 5602. Eligibility.
``Sec. 5603. Maximum amount.

              ``Subpart 21--Women's Educational Equity Act

``Sec. 5611. Short title and findings.
``Sec. 5612. Statement of purpose.
``Sec. 5613. Programs authorized.
``Sec. 5614. Applications.
``Sec. 5615. Criteria and priorities.
``Sec. 5616. Report.
``Sec. 5617. Administration.
``Sec. 5618. Amount.

               ``TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

                ``Part A--Improving Academic Achievement

                       ``Subpart 1--Accountability

``Sec. 6111. Grants for State assessments and related activities.
``Sec. 6112. Grants for enhanced assessment instruments.
``Sec. 6113. Funding.

  ``Subpart 2--Funding Transferability for State and Local Educational 
                                Agencies

``Sec. 6121. Short title.
``Sec. 6122. Purpose.
``Sec. 6123. Transferability of funds.

         ``Subpart 3--State and Local Flexibility Demonstration

``Sec. 6131. Short title.
``Sec. 6132. Purpose.
``Sec. 6133. General provision.

                ``CHAPTER A--STATE FLEXIBILITY AUTHORITY

``Sec. 6141. State flexibility.
``Sec. 6142. Consolidation and use of funds.
``Sec. 6143. Performance review and penalties.
``Sec. 6144. Renewal of grant of flexibility authority.

              ``CHAPTER B--LOCAL FLEXIBILITY DEMONSTRATION

``Sec. 6151. Local flexibility demonstration agreements.
``Sec. 6152. Consolidation and use of funds.
``Sec. 6153. Limitations on administrative expenditures.
``Sec. 6154. Performance review and penalties.
``Sec. 6155. Renewal of local flexibility demonstration agreement.
``Sec. 6156. Reports.

     ``Subpart 4--State Accountability for Adequate Yearly Progress

``Sec. 6161. Accountability for adequate yearly progress.
``Sec. 6162. Peer review.
``Sec. 6163. Technical assistance.
``Sec. 6164. Report to Congress.

                  ``Part B--Rural Education Initiative

``Sec. 6201. Short title.
``Sec. 6202. Purpose.

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

``Sec. 6211. Use of applicable funding.
``Sec. 6212. Grant program authorized.
``Sec. 6213. Accountability.

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

``Sec. 6221. Program authorized.
``Sec. 6222. Uses of funds.
``Sec. 6223. Applications.
``Sec. 6224. Accountability.

                     ``Subpart 3--General Provisions

``Sec. 6231. Annual average daily attendance determination.
``Sec. 6232. Supplement, not supplant.
``Sec. 6233. Rule of construction.
``Sec. 6234. orization of appropriations.

                      ``Part C--General Provisions

``Sec. 6301. Prohibition against Federal mandates, direction, or 
          control.
``Sec. 6302. Rule of construction on equalized spending.

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

                       ``Part A--Indian Education

``Sec. 7101. Statement of policy.
``Sec. 7102. Purpose.

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

``Sec. 7111. Purpose.
``Sec. 7112. Grants to local educational agencies and tribes.
``Sec. 7113. Amount of grants.
``Sec. 7114. Applications.
``Sec. 7115. Authorized services and activities.
``Sec. 7116. Integration of services authorized.
``Sec. 7117. Student eligibility forms.
``Sec. 7118. Payments.
``Sec. 7119. State educational agency review.

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

``Sec. 7121. Improvement of educational opportunities for Indian 
          children.
``Sec. 7122. Professional development for teachers and education 
          professionals.

                    ``Subpart 3--National Activities

``Sec. 7131. National research activities.
``Sec. 7132. In-service training for teachers of Indian children.
``Sec. 7133. Fellowships for Indian students.
``Sec. 7134. Gifted and talented Indian students.
``Sec. 7135. Grants to tribes for education administrative planning and 
          development.
``Sec. 7136. Improvement of educational opportunities for adult Indians.

                   ``Subpart 4--Federal Administration

``Sec. 7141. National Advisory Council on Indian Education.
``Sec. 7142. Peer review.
``Sec. 7143. Preference for Indian applicants.
``Sec. 7144. Minimum grant criteria.

       ``Subpart 5--Definitions; Authorizations of Appropriations

``Sec. 7151. Definitions.
``Sec. 7152. Authorizations of appropriations.

                   ``Part B--Native Hawaiian Education

``Sec. 7201. Short title.
``Sec. 7202. Findings.
``Sec. 7203. Purposes.
``Sec. 7204. Native Hawaiian Education Council and island councils.
``Sec. 7205. Program authorized.
``Sec. 7206. Administrative provisions.
``Sec. 7207. Definitions.

                   ``Part C--Aalaska Native Education

``Sec. 7301. Short title.
``Sec. 7302. Findings.
``Sec. 7303. Purposes.
``Sec. 7304. Program authorized.
``Sec. 7305. Administrative provisions.
``Sec. 7306. Definitions.

                        ``TITLE VIII--IMPACT AID

``Sec. 8001. Purpose.
``Sec. 8002. Payments relating to Federal acquisition of real property.
``Sec. 8003. Payments for eligible federally connected children.
`Sec. 8004. Policies and procedures relating to children residing on 
          Indian lands.
``Sec. 8005. Application for payments under sections 8002 and 8003.
``Sec. 8007. Construction.
``Sec. 8008. Facilities.
``Sec. 8009. State consideration of payments in providing State aid.
``Sec. 8010. Federal administration.
``Sec. 8011. Administrative hearings and judicial review.
``Sec. 8012. Forgiveness of overpayments.
``Sec. 8013. Definitions.
``Sec. 8014. Authorization of appropriations.

                     ``TITLE IX--GENERAL PROVISIONS

                          ``Part A--Definitions

``Sec. 9101. Definitions.
``Sec. 9102. Applicability of title.
``Sec. 9103. Applicability to Bureau of Indian Affairs operated schools.

   ``Part B--Flexibility in the use of Administrative and Other Funds

``Sec. 9201. Consolidation of State administrative funds for elementary 
          and secondary education programs.
``Sec. 9202. Single local educational agency States.
``Sec. 9203. Consolidation of funds for local administration.
``Sec. 9204. Consolidated set-aside for Department of the Interior 
          funds.

 ``Part C--Coordination of Programs; Consolidated State and Local Plans 
                            and Applications

``Sec. 9301. Purpose.
``Sec. 9302. Optional consolidated State plans or applications.
``Sec. 9303. Consolidated reporting.
``Sec. 9304. General applicability of State educational agency 
          assurances.
``Sec. 9305. Consolidated local plans or applications.
``Sec. 9306. Other general assurances.

                            ``Part D--Waivers

``Sec. 9401. Waivers of statutory and regulatory requirements.

                      ``Part E--Uniform Provisions

                      ``Subpart 1--Private Schools

``Sec. 9501. Participation by private school children and teachers.
``Sec. 9502. Standards for by-pass.
``Sec. 9503. Complaint process for participation of private school 
          children.
``Sec. 9504. By-pass determination process.
``Sec. 9505. Prohibition against funds for religious worship or 
          instruction.
``Sec. 9506. Private, religious, and home schools.

                      ``Subpart 2--Other Provisions

``Sec. 9521. Maintenance of effort.
``Sec. 9522. Prohibition regarding State aid.
``Sec. 9523. Privacy of assessment results.
``Sec. 9524. School prayer.
``Sec. 9525. Equal access to public school facilities.
``Sec. 9526. General prohibitions.
``Sec. 9527. Prohibitions on Federal Government and use of Federal 
          funds.
``Sec. 9528. Armed Forces recruiter access to students and student 
          recruiting information.
``Sec. 9529. Prohibition on federally sponsored testing.
``Sec. 9530. Limitations on national testing or certification for 
          teachers.
``Sec. 9531. Prohibition on nationwide database.
``Sec. 9532. Unsafe school choice option.
``Sec. 9533. Prohibition on discrimination.
``Sec. 9534. Civil rights.
``Sec. 9535. Rulemaking.
``Sec. 9536. Severability.

                          ``Part F--Evaluations

``Sec. 9601. Evaluations.''.

    TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

SEC. 101. IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED.

    Title I of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6301 et seq.) is amended to read as follows:

   ``TITLE I--IMPROVING THE ACADEMIC ACHIEVEMENT OF THE DISADVANTAGED

``SEC. 1001. STATEMENT OF PURPOSE.

    ``The purpose of this title is to ensure that all children have a 
fair, equal, and significant opportunity to obtain a high-quality 
education and reach, at a minimum, proficiency on challenging State 
academic achievement standards and state academic assessments. This 
purpose can be accomplished by--
        ``(1) ensuring that high-quality academic assessments, 
    accountability systems, teacher preparation and training, 
    curriculum, and instructional materials are aligned with 
    challenging State academic standards so that students, teachers, 
    parents, and administrators can measure progress against common 
    expectations for student academic achievement;
        ``(2) meeting the educational needs of low-achieving children 
    in our Nation's highest-poverty schools, limited English proficient 
    children, migratory children, children with disabilities, Indian 
    children, neglected or delinquent children, and young children in 
    need of reading assistance;
        ``(3) closing the achievement gap between high- and low-
    performing children, especially the achievement gaps between 
    minority and nonminority students, and between disadvantaged 
    children and their more advantaged peers;
        ``(4) holding schools, local educational agencies, and States 
    accountable for improving the academic achievement of all students, 
    and identifying and turning around low-performing schools that have 
    failed to provide a high-quality education to their students, while 
    providing alternatives to students in such schools to enable the 
    students to receive a high-quality education;
        ``(5) distributing and targeting resources sufficiently to make 
    a difference to local educational agencies and schools where needs 
    are greatest;
        ``(6) improving and strengthening accountability, teaching, and 
    learning by using State assessment systems designed to ensure that 
    students are meeting challenging State academic achievement and 
    content standards and increasing achievement overall, but 
    especially for the disadvantaged;
        ``(7) providing greater decisionmaking authority and 
    flexibility to schools and teachers in exchange for greater 
    responsibility for student performance;
        ``(8) 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;
        ``(9) promoting schoolwide reform and ensuring the access of 
    children to effective, scientifically based instructional 
    strategies and challenging academic content;
        ``(10) significantly elevating the quality of instruction by 
    providing staff in participating schools with substantial 
    opportunities for professional development;
        ``(11) 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; and
        ``(12) affording parents substantial and meaningful 
    opportunities to participate in the education of their children.

``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Local Educational Agency Grants.--For the purpose of carrying 
out part A, there are authorized to be appropriated--
        ``(1) $13,500,000,000 for fiscal year 2002;
        ``(2) $16,000,000,000 for fiscal year 2003;
        ``(3) $18,500,000,000 for fiscal year 2004;
        ``(4) $20,500,000,000 for fiscal year 2005;
        ``(5) $22,750,000,000 for fiscal year 2006; and
        ``(6) $25,000,000,000 for fiscal year 2007.
    ``(b) Reading First.--
        ``(1) Reading first.--For the purpose of carrying out subpart 1 
    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 
    5 succeeding fiscal years.
        ``(2) Early reading first.--For the purpose of carrying out 
    subpart 2 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 5 succeeding fiscal years.
        ``(3) Even start.--For the purpose of carrying out subpart 3 of 
    part B, there are authorized to be appropriated $260,000,000 for 
    fiscal year 2002 and such sums as may be necessary for each of the 
    5 succeeding fiscal years.
        ``(4) Improving literacy through school libraries.--For the 
    purpose of carrying out subpart 4 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 5 succeeding fiscal years.
    ``(c) Education of Migratory Children.--For the purpose of carrying 
out part C, there are authorized to be appropriated $410,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of the 5 
succeeding fiscal years.
    ``(d) Prevention and Intervention Programs for Youth Who Are 
Neglected, Delinquent, or at Risk.--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 5 
succeeding fiscal years.
    ``(e) Federal Activities.--
        ``(1) Sections 1501 and 1502.--For the purpose of carrying out 
    sections 1501 and 1502, there are authorized to be appropriated 
    such sums as may be necessary for fiscal year 2002 and each of the 
    5 succeeding fiscal years.
        ``(2) Section 1504.--
            ``(A) In general.--For the purpose of carrying out section 
        1504, there are authorized to be appropriated such sums as may 
        be necessary for fiscal year 2002 and for each of the 5 
        succeeding fiscal years.
            ``(B) Special rule.--Of the funds appropriated pursuant to 
        subparagraph (A), not more than 30 percent may be used for 
        teachers associated with students participating in the programs 
        described in subsections (a)(1), (b)(1), and (c)(1).
    ``(f) Comprehensive School Reform.--For the purpose of carrying out 
part F, there are authorized to be appropriated such sums as may be 
necessary for fiscal year 2002 and each of the 5 succeeding fiscal 
years.
    ``(g) Advanced Placement.--For the purposes of carrying out part G, 
there are authorized to be appropriated such sums for fiscal year 2002 
and each 5 succeeding fiscal year.
    ``(h) School Dropout Prevention.--For the purpose of carrying out 
part H, there are authorized to be appropriated $125,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of the 5 
succeeding fiscal years, of which--
        ``(1) up to 10 percent shall be available to carry out subpart 
    1 of part H for each fiscal year; and
        ``(2) the remainder shall be available to carry out subpart 2 
    of part H for each fiscal year.
    ``(i) School Improvement.--For the purpose of carrying out section 
1003(g), there are authorized to be appropriated $500,000,000 for 
fiscal year 2002 and such sums as may be necessary for each of the 5 
succeeding fiscal years.

``SEC. 1003. SCHOOL IMPROVEMENT.

    ``(a) State Reservations.--Each State shall reserve 2 percent of 
the amount the State receives under subpart 2 of part A for fiscal 
years 2002 and 2003, and 4 percent of the amount received under such 
subpart for fiscal years 2004 through 2007, to carry out subsection (b) 
and to carry out the State'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--
        ``(1) shall allocate not less than 95 percent of that amount 
    directly to local educational agencies for schools identified for 
    school improvement, corrective action, and restructuring, for 
    activities under section 1116(b); or
        ``(2) may, with the approval of the local educational agency, 
    directly provide for these activities or arrange for their 
    provision through other entities such as school support teams or 
    educational service agencies.
    ``(c) Priority.--The State educational agency, in allocating funds 
to local educational agencies under this section, shall give priority 
to local educational agencies that--
        ``(1) serve the lowest-achieving schools;
        ``(2) demonstrate the greatest need for such funds; and
        ``(3) demonstrate the strongest commitment to ensuring that 
    such funds are used to enable the lowest-achieving schools to meet 
    the progress goals in school improvement plans under section 1116 
    (b)(3)(A)(v).
    ``(d) Unused Funds.--If, after consultation with local educational 
agencies in the State, the State educational agency determines that the 
amount of funds reserved to carry out subsection (b) is greater than 
the amount needed to provide the assistance described in that 
subsection, the State educational agency shall allocate the excess 
amount to local educational agencies in accordance with--
        ``(1) the relative allocations the State educational agency 
    made to those agencies for that fiscal year under subpart 2 of part 
    A; or
        ``(2) section 1126(c).
    ``(e) Special Rule.--Notwithstanding any other provision of this 
section, the amount of funds reserved by the State educational agency 
under subsection (a) in any fiscal year shall not decrease the amount 
of funds each local educational agency receives under subpart 2 below 
the amount received by such local educational agency under such subpart 
for the preceding fiscal year.
    ``(f) Reporting.--The State educational agency shall make publicly 
available a list of those schools that have received funds or services 
pursuant to subsection (b) and the percentage of students from each 
school from families with incomes below the poverty line.
    ``(g) Assistance for Local School Improvement.--
        ``(1) Program authorized.--The Secretary shall award grants to 
    States to enable the States to provide subgrants to local 
    educational agencies for the purpose of providing assistance for 
    school improvement consistent with section 1116.
        ``(2) State allotments.--Such grants shall be allotted among 
    States, the Bureau of Indian Affairs, and the outlying areas, in 
    proportion to the funds received by the States, the Bureau of 
    Indian Affairs, and the outlying areas, respectively, for the 
    fiscal year under parts A, C, and D of this title. The Secretary 
    shall expeditiously allot a portion of such funds to States for the 
    purpose of assisting local educational agencies and schools that 
    were in school improvement status on the date preceding the date of 
    enactment of the No Child Left Behind Act of 2001.
        ``(3) Reallocations.--If a State does not receive funds under 
    this subsection, the Secretary shall reallocate such funds to other 
    States in the same proportion funds are allocated under paragraph 
    (2).
        ``(4) State applications.--Each State educational agency that 
    desires to receive funds under this subsection shall submit an 
    application to the Secretary at such time, and containing such 
    information, as the Secretary shall reasonably require, except that 
    such requirement shall be waived if a State educational agency 
    submitted such information as part of its State plan under this 
    part. Each State application shall describe how the State 
    educational agency will allocate such funds in order to assist the 
    State educational agency and local educational agencies in 
    complying with school improvement, corrective action, and 
    restructuring requirements of section 1116.
        ``(5) Local educational agency grants.--A grant to a local 
    educational agency under this subsection shall be--
            ``(A) of sufficient size and scope to support the 
        activities required under sections 1116 and 1117, but not less 
        than $50,000 and not more than $500,000 for each participating 
        school;
            ``(B) integrated with other funds awarded by the State 
        under this Act; and
            ``(C) renewable for two additional 1-year periods if 
        schools are meeting the goals in their school improvement plans 
        developed under section 1116.
        ``(6) Priority.--The State, in awarding such grants, shall give 
    priority to local educational agencies with the lowest-achieving 
    schools that demonstrate--
            ``(A) the greatest need for such funds; and
            ``(B) the strongest commitment to ensuring that such funds 
        are used to provide adequate resources to enable the lowest-
        achieving schools to meet the goals under school and local 
        educational agency improvement, corrective action, and 
        restructuring plans under section 1116.
        ``(7) Allocation.--A State educational agency that receives a 
    grant under this subsection shall allocate at least 95 percent of 
    the grant funds directly to local educational agencies for schools 
    identified for school improvement, corrective action, or 
    restructuring to carry out activities under section 1116(b), or 
    may, with the approval of the local educational agency, directly 
    provide for these activities or arrange for their provision through 
    other entities such as school support teams or educational service 
    agencies.
        ``(8) Administrative costs.--A State educational agency that 
    receives a grant award under this subsection may reserve not more 
    than 5 percent of such grant funds for administration, evaluation, 
    and technical assistance expenses.
        ``(9) Local awards.--Each local educational agency that applies 
    for assistance under this subsection shall describe how it will 
    provide the lowest-achieving schools the resources necessary to 
    meet goals under school and local educational agency improvement, 
    corrective action, and restructuring plans under section 1116.

``SEC. 1004. STATE ADMINISTRATION.

    ``(a) In General.--Except as provided in subsection (b), to carry 
out administrative duties assigned under parts A, C, and D of this 
title, each State may reserve the greater of--
        ``(1) 1 percent of the amounts received under such parts; or
        ``(2) $400,000 ($50,000 in the case of each outlying area).
    ``(b) Exception.--If the sum of the amounts appropriated for parts 
A, C, and D of this title is equal to or greater than $14,000,000,000, 
then the reservation described in subsection (a)(1) shall not exceed 1 
percent of the amount the State would receive, if $14,000,000,000 were 
allocated among the States for parts A, C, and D of this title.

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

                ``Subpart 1--Basic Program Requirements

``SEC. 1111. STATE PLANS.

    ``(a) Plans Required.--
        ``(1) In general.--For any State desiring to receive a grant 
    under this part, the State educational agency shall submit to the 
    Secretary a plan, developed by the State educational agency, in 
    consultation with local educational agencies, teachers, principals, 
    pupil services personnel, administrators (including administrators 
    of programs described in other parts of this title), other staff, 
    and parents, that satisfies the requirements of this section and 
    that is coordinated with other programs under this Act, the 
    Individuals with Disabilities Education Act, the Carl D. Perkins 
    Vocational and Technical Education Act of 1998, the Head Start Act, 
    the Adult Education and Family Literacy Act, and the McKinney-Vento 
    Homeless Assistance Act.
        ``(2) Consolidated plan.--A State plan submitted under 
    paragraph (1) may be submitted as part of a consolidated plan under 
    section 9302.
    ``(b) Academic Standards, Academic Assessments, and 
Accountability.--
        ``(1) Challenging academic standards.--
            ``(A) In general.--Each State plan shall demonstrate that 
        the State has adopted challenging academic content standards 
        and challenging student academic achievement 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) Same standards.--The academic standards required by 
        subparagraph (A) shall be the same academic standards that the 
        State applies to all schools and children in the State.
            ``(C) Subjects.--The State shall have such academic 
        standards for all public elementary school and secondary school 
        children, including children served under this part, in 
        subjects determined by the State, but including at least 
        mathematics, reading or language arts, and (beginning in the 
        2005-2006 school year) science, which shall include the same 
        knowledge, skills, and levels of achievement expected of all 
        children.
            ``(D) Challenging academic standards.--Standards under this 
        paragraph shall include--
                ``(i) challenging academic 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 academic achievement 
            standards that--

                    ``(I) are aligned with the State's academic content 
                standards;
                    ``(II) describe two levels of high achievement 
                (proficient and advanced) that determine how well 
                children are mastering the material in the State 
                academic content standards; and
                    ``(III) describe a third level of achievement 
                (basic) to provide complete information about the 
                progress of the lower-achieving children toward 
                mastering the proficient and advanced levels of 
                achievement.

            ``(E) Information.--For the subjects in which students will 
        be served under this part, but for which a State is not 
        required by subparagraphs (A), (B), and (C) to develop, and has 
        not otherwise developed, such academic standards, the State 
        plan shall describe a strategy for ensuring that students are 
        taught the same knowledge and skills in such subjects and held 
        to the same expectations as are all children.
            ``(F) Existing standards.--Nothing in this part shall 
        prohibit a State from revising, consistent with this section, 
        any standard adopted under this part before or after the date 
        of enactment of the No Child Left Behind Act of 2001.
        ``(2) Accountability.--
            ``(A) In general.--Each State plan shall demonstrate that 
        the State has developed and is implementing a single, statewide 
        State accountability system that will be effective in ensuring 
        that all local educational agencies, public elementary schools, 
        and public secondary schools make adequate yearly progress as 
        defined under this paragraph. Each State accountability system 
        shall--
                ``(i) be based on the academic standards and academic 
            assessments adopted under paragraphs (1) and (3), and other 
            academic indicators consistent with subparagraph (C)(vi) 
            and (vii), and shall take into account the achievement of 
            all public elementary school and secondary school students;
                ``(ii) be the same accountability system the State uses 
            for all public elementary schools and secondary schools or 
            all local educational agencies in the State, except that 
            public elementary schools, secondary schools, and local 
            educational agencies not participating under this part are 
            not subject to the requirements of section 1116; and
                ``(iii) include sanctions and rewards, such as bonuses 
            and recognition, the State will use to hold local 
            educational agencies and public elementary schools and 
            secondary schools accountable for student achievement and 
            for ensuring that they make adequate yearly progress in 
            accordance with the State's definition under subparagraphs 
            (B) and (C).
            ``(B) Adequate yearly progress.--Each State plan shall 
        demonstrate, based on academic assessments described in 
        paragraph (3), and in accordance with this paragraph, what 
        constitutes adequate yearly progress of the State, and of all 
        public elementary schools, secondary schools, and local 
        educational agencies in the State, toward enabling all public 
        elementary school and secondary school students to meet the 
        State's student academic achievement standards, while working 
        toward the goal of narrowing the achievement gaps in the State, 
        local educational agencies, and schools.
            ``(C) Definition.--`Adequate yearly progress' shall be 
        defined by the State in a manner that--
                ``(i) applies the same high standards of academic 
            achievement to all public elementary school and secondary 
            school 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 public elementary 
            schools, secondary schools and local educational agencies 
            and the State based primarily on the academic assessments 
            described in paragraph (3);
                ``(v) includes separate measurable annual objectives 
            for continuous and substantial improvement for each of the 
            following:

                    ``(I) The achievement of all public elementary 
                school and secondary school students.
                    ``(II) The achievement of--

                        ``(aa) economically disadvantaged students;
                        ``(bb) students from major racial and ethnic 
                    groups;
                        ``(cc) students with disabilities; and
                        ``(dd) students with limited English 
                    proficiency;

                except that disaggregation of data under subclause (II) 
                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 personally identifiable information about an 
                individual student;

                ``(vi) in accordance with subparagraph (D), includes 
            graduation rates for public secondary school students 
            (defined as the percentage of students who graduate from 
            secondary school with a regular diploma in the standard 
            number of years) and at least one other academic indicator, 
            as determined by the State for all public elementary school 
            students; and
                ``(vii) in accordance with subparagraph (D), at the 
            State's discretion, may also include other academic 
            indicators, as determined by the State for all public 
            school students, measured separately for each group 
            described in clause (v), such as achievement on additional 
            State or locally administered assessments, decreases in 
            grade-to-grade retention rates, attendance rates, and 
            changes in the percentages of students completing gifted 
            and talented, advanced placement, and college preparatory 
            courses.
            ``(D) Requirements for other indicators.--In carrying out 
        subparagraph (C)(vi) and (vii), the State--
                ``(i) shall ensure that the indicators described in 
            those provisions are valid and reliable, and are consistent 
            with relevant, nationally recognized professional and 
            technical standards, if any; and
                ``(ii) except as provided in subparagraph (I)(i), may 
            not use those indicators to reduce the number of, or 
            change, the schools that would otherwise be subject to 
            school improvement, corrective action, or restructuring 
            under section 1116 if those additional indicators were not 
            used, but may use them to identify additional schools for 
            school improvement or in need of corrective action or 
            restructuring.
            ``(E) Starting point.--Each State, using data for the 2001-
        2002 school year, shall establish the starting point for 
        measuring, under subparagraphs (G) and (H), the percentage of 
        students meeting or exceeding the State's proficient level of 
        academic achievement on the State assessments under paragraph 
        (3) and pursuant to the timeline described in subparagraph (F). 
        The starting point shall be, at a minimum, based on the higher 
        of the percentage of students at the proficient level who are 
        in--
                ``(i) the State's lowest achieving group of students 
            described in subparagraph (C)(v)(II); or
                ``(ii) the school at the 20th percentile in the State, 
            based on enrollment, among all schools ranked by the 
            percentage of students at the proficient level.
            ``(F) Timeline.--Each State shall establish a timeline for 
        adequate yearly progress. The timeline shall ensure that not 
        later than 12 years after the end of the 2001-2002 school year, 
        all students in each group described in subparagraph (C)(v) 
        will meet or exceed the State's proficient level of academic 
        achievement on the State assessments under paragraph (3).
            ``(G) Measurable objectives.--Each State shall establish 
        statewide annual measurable objectives, pursuant to 
        subparagraph (C)(v), for meeting the requirements of this 
        paragraph, and which--
                ``(i) shall be set separately for the assessments of 
            mathematics and reading or language arts under subsection 
            (a)(3);
                ``(ii) shall be the same for all schools and local 
            educational agencies in the State;
                ``(iii) shall identify a single minimum percentage of 
            students who are required to meet or exceed the proficient 
            level on the academic assessments that applies separately 
            to each group of students described in subparagraph (C)(v);
                ``(iv) shall ensure that all students will meet or 
            exceed the State's proficient level of academic achievement 
            on the State assessments within the State's timeline under 
            subparagraph (F); and
                ``(v) may be the same for more than 1 year, subject to 
            the requirements of subparagraph (H).
            ``(H) Intermediate goals for annual yearly progress.--Each 
        State shall establish intermediate goals for meeting the 
        requirements, including the measurable objectives in 
        subparagraph (G), of this paragraph and that shall--
                ``(i) increase in equal increments over the period 
            covered by the State's timeline under subparagraph (F);
                ``(ii) provide for the first increase to occur in not 
            more than 2 years; and
                ``(iii) provide for each following increase to occur in 
            not more than 3 years.
            ``(I) Annual improvement for schools.--Each year, for a 
        school to make adequate yearly progress under this paragraph--
                ``(i) each group of students described in subparagraph 
            (C)(v) must meet or exceed the objectives set by the State 
            under subparagraph (G), except that if any group described 
            in subparagraph (C)(v) does not meet those objectives in 
            any particular year, the school shall be considered to have 
            made adequate yearly progress if the percentage of students 
            in that group who did not meet or exceed the proficient 
            level of academic achievement on the State assessments 
            under paragraph (3) for that year decreased by 10 percent 
            of that percentage from the preceding school year and that 
            group made progress on one or more of the academic 
            indicators described in subparagraph (C)(vi) or (vii); and
                ``(ii) not less than 95 percent of each group of 
            students described in subparagraph (C)(v) who are enrolled 
            in the school are required to take the assessments, 
            consistent with paragraph (3)(C)(xi) and with 
            accommodations, guidelines, and alternative assessments 
            provided in the same manner as those provided under section 
            612(a)(17)(A) of the Individuals with Disabilities 
            Education Act and paragraph (3), on which adequate yearly 
            progress is based (except that the 95 percent requirement 
            described in this clause shall not apply in a case in which 
            the number of students in a category is insufficient to 
            yield statistically reliable information or the results 
            would reveal personally identifiable information about an 
            individual student).
            ``(J) Uniform averaging procedure.--For the purpose of 
        determining whether schools are making adequate yearly 
        progress, the State may establish a uniform procedure for 
        averaging data which includes one or more of the following:
                ``(i) The State may average data from the school year 
            for which the determination is made with data from one or 
            two school years immediately preceding that school year.
                ``(ii) Until the assessments described in paragraph (3) 
            are administered in such manner and time to allow for the 
            implementation of the uniform procedure for averaging data 
            described in clause (i), the State may use the academic 
            assessments that were required under paragraph (3) as that 
            paragraph was in effect on the day preceding the date of 
            enactment of the No Child Left Behind Act of 2001, provided 
            that nothing in this clause shall be construed to undermine 
            or delay the determination of adequate yearly progress, the 
            requirements of section 1116, or the implementation of 
            assessments under this section.
                ``(iii) The State may use data across grades in a 
            school.
            ``(K) Accountability for charter schools.--The 
        accountability provisions under this Act shall be overseen for 
        charter schools in accordance with State charter school law.
        ``(3) Academic assessments.--
            ``(A) In general.--Each State plan shall demonstrate that 
        the State educational agency, in consultation with local 
        educational agencies, has implemented a set of high-quality, 
        yearly student academic assessments that include, at a minimum, 
        academic assessments in mathematics, reading or language arts, 
        and science that will be used as the primary means of 
        determining the yearly performance of the State and of each 
        local educational agency and school in the State in enabling 
        all children to meet the State's challenging student academic 
        achievement 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.
            ``(B) Use of assessments.--Each State educational agency 
        may incorporate the data from the assessments under this 
        paragraph into a State-developed longitudinal data system that 
        links student test scores, length of enrollment, and graduation 
        records over time.
            ``(C) Requirements.--Such assessments shall--
                ``(i) be the same academic assessments used to measure 
            the achievement of all children;
                ``(ii) be aligned with the State's challenging academic 
            content and student academic achievement standards, and 
            provide coherent information about student attainment of 
            such standards;
                ``(iii) be used for purposes for which such assessments 
            are valid and reliable, and be consistent with relevant, 
            nationally recognized professional and technical standards;
                ``(iv) be used only if the State educational agency 
            provides to the Secretary evidence from the test publisher 
            or other relevant sources that the assessments used are of 
            adequate technical quality for each purpose required under 
            this Act and are consistent with the requirements of this 
            section, and such evidence is made public by the Secretary 
            upon request;
                ``(v)(I) except as otherwise provided for grades 3 
            through 8 under clause vii, measure the proficiency of 
            students in, at a minimum, mathematics and reading or 
            language arts, and be administered not less than once 
            during--

                    ``(aa) grades 3 through 5;
                    ``(bb) grades 6 through 9; and
                    ``(cc) grades 10 through 12;

                ``(II) 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--

                    ``(aa) grades 3 through 5;
                    ``(bb) grades 6 through 9; and
                    ``(cc) grades 10 through 12;

                ``(vi) involve multiple up-to-date measures of student 
            academic achievement, including measures that assess 
            higher-order thinking skills and understanding;
                ``(vii) beginning not later than school year 2005-2006, 
            measure the achievement of students against the challenging 
            State academic content and student academic achievement 
            standards in each of grades 3 through 8 in, at a minimum, 
            mathematics, and reading or language arts, except that the 
            Secretary may provide the State 1 additional year if the 
            State demonstrates that exceptional or uncontrollable 
            circumstances, such as a natural disaster or a precipitous 
            and unforeseen decline in the financial resources of the 
            State, prevented full implementation of the academic 
            assessments by that deadline and that the State will 
            complete implementation within the additional 1-year 
            period;
                ``(viii) at the discretion of the State, measure the 
            proficiency of students in academic subjects not described 
            in clauses (v), (vi), (vii) in which the State has adopted 
            challenging academic content and academic achievement 
            standards;
                ``(ix) provide for--

                    ``(I) the participation in such assessments of all 
                students;
                    ``(II) the reasonable adaptations and 
                accommodations for students with disabilities (as 
                defined under section 602(3) of the Individuals with 
                Disabilities Education Act) necessary to measure the 
                academic achievement of such students relative to State 
                academic content and State student academic achievement 
                standards; and
                    ``(III) the inclusion of limited English proficient 
                students, who shall be assessed in a valid and reliable 
                manner and provided reasonable accommodations on 
                assessments administered to such students under this 
                paragraph, including, to the extent practicable, 
                assessments in the language and form most likely to 
                yield accurate data on what such students know and can 
                do in academic content areas, until such students have 
                achieved English language proficiency as determined 
                under paragraph (7);

                ``(x) notwithstanding subclause (III), the academic 
            assessment (using tests written in English) of reading or 
            language arts of any student who has attended school in the 
            United States (not including Puerto Rico) for three or more 
            consecutive school years, except that if the local 
            educational agency determines, on a case-by-case individual 
            basis, that academic assessments in another language or 
            form would likely yield more accurate and reliable 
            information on what such student knows and can do, the 
            local educational agency may make a determination to assess 
            such student in the appropriate language other than English 
            for a period that does not exceed two additional 
            consecutive years, provided that such student has not yet 
            reached a level of English language proficiency sufficient 
            to yield valid and reliable information on what such 
            student knows and can do on tests (written in English) of 
            reading or language arts;
                ``(xi) 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;
                ``(xii) produce individual student interpretive, 
            descriptive, and diagnostic reports, consistent with clause 
            (iii) that allow parents, teachers, and principals to 
            understand and address the specific academic needs of 
            students, and include information regarding achievement on 
            academic assessments aligned with State academic 
            achievement standards, and that are provided to parents, 
            teachers, and principals, as soon as is practicably 
            possible after the assessment is given, in an 
            understandable and uniform format, and to the extent 
            practicable, in a language that parents can understand;
                ``(xiii) enable results to be disaggregated within each 
            State, local educational agency, and school by gender, by 
            each major racial and ethnic group, by English proficiency 
            status, 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 personally identifiable information about an 
            individual student;
                ``(xiv) be consistent with widely accepted professional 
            testing standards, objectively measure academic 
            achievement, knowledge, and skills, and be tests that do 
            not evaluate or assess personal or family beliefs and 
            attitudes, or publicly disclose personally identifiable 
            information; and
                ``(xv) enable itemized score analyses to be produced 
            and reported, consistent with clause (iii), to local 
            educational agencies and schools, so that parents, 
            teachers, principals, and administrators can interpret and 
            address the specific academic needs of students as 
            indicated by the students' achievement on assessment items.
            ``(D) Deferral.--A State may defer the commencement, or 
        suspend the administration, but not cease the development, of 
        the assessments described in this paragraph, that were not 
        required prior to the date of enactment of the No Child Left 
        Behind Act of 2001, for 1 year for each year for which the 
        amount appropriated for grants under section 6113(a)(2) 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; and
                ``(iv) $400,000,000 for fiscal years 2005 through 2007.
        ``(4) Special rule.--Academic assessment measures in addition 
    to those in paragraph (3) that do not meet the requirements of such 
    paragraph may be included in the assessment under paragraph (3) as 
    additional measures, but may not be used in lieu of the academic 
    assessments required under paragraph (3). Such additional 
    assessment measures may not be used to reduce the number of or 
    change, the schools that would otherwise be subject to school 
    improvement, corrective action, or restructuring under section 1116 
    if such additional indicators were not used, but may be used to 
    identify additional schools for school improvement or in need of 
    corrective action or restructuring except as provided in paragraph 
    (2)(I)(i).
        ``(5) State authority.--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 curriculum content and student academic achievement 
    standards, and academic assessments aligned with such academic 
    standards, which will be applicable to all students enrolled in the 
    State's public elementary schools and secondary schools, then the 
    State educational agency may meet the requirements of this 
    subsection by--
            ``(A) adopting academic standards and academic assessments 
        that meet the requirements of this subsection, on a statewide 
        basis, and limiting their applicability to students served 
        under this part; or
            ``(B) adopting and implementing policies that ensure that 
        each local educational agency in the State that receives grants 
        under this part will adopt curriculum content and student 
        academic achievement standards, and academic assessments 
        aligned with such standards, which--
                ``(i) meet all of the criteria in this subsection and 
            any regulations regarding such standards and assessments 
            that the Secretary may publish; and
                ``(ii) are applicable to all students served by each 
            such local educational agency.
        ``(6) 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 academic 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 
    academic assessment measures are needed. Upon request, the 
    Secretary shall assist with the identification of appropriate 
    academic assessment measures in the needed languages, but shall not 
    mandate a specific academic assessment or mode of instruction.
        ``(7) Academic assessments of english language proficiency.--
    Each State plan shall demonstrate that local educational agencies 
    in the State will, beginning not later than school year 2002-2003, 
    provide for an annual assessment of English proficiency (measuring 
    students' oral language, reading, and writing skills in English) of 
    all students with limited English proficiency in the schools served 
    by the State educational agency, except that the Secretary may 
    provide the State 1 additional year if the State demonstrates that 
    exceptional or uncontrollable circumstances, such as a natural 
    disaster or a precipitous and unforeseen decline in the financial 
    resources of the State, prevented full implementation of this 
    paragraph by that deadline and that the State will complete 
    implementation within the additional 1-year period.
        ``(8) Requirement.--Each State plan shall describe--
            ``(A) how the State educational agency will assist each 
        local educational agency and school affected by the State plan 
        to develop the capacity to comply with each of the requirements 
        of sections 1112(c)(1)(D), 1114(b), and 1115(c) that is 
        applicable to such agency or school;
            ``(B) how the State educational agency will assist each 
        local educational agency and school affected by the State plan 
        to provide additional educational assistance to individual 
        students assessed as needing help to achieve the State's 
        challenging academic achievement standards;
            ``(C) 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)(E), 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;
            ``(D) an assurance that the State educational agency will 
        assist local educational agencies in developing or identifying 
        high-quality effective curricula aligned with State academic 
        achievement standards and how the State educational agency will 
        disseminate such curricula to each local educational agency and 
        school within the State; and
            ``(E) such other factors the State educational agency 
        determines appropriate to provide students an opportunity to 
        achieve the knowledge and skills described in the challenging 
        academic content standards adopted by the State.
        ``(9) Factors affecting student achievement.--Each State plan 
    shall include an assurance that the State educational agency will 
    coordinate and collaborate, to the extent feasible and necessary as 
    determined by the State educational agency, with agencies providing 
    services to children, youth, and families, with respect to local 
    educational agencies within the State that are identified under 
    section 1116 and that request assistance with addressing major 
    factors that have significantly affected the academic achievement 
    of students in the local educational agency or schools served by 
    such agency.
        ``(10) Use of academic assessment results to improve student 
    academic achievement.--Each State plan shall describe how the State 
    educational agency will ensure that the results of the State 
    assessments described in paragraph (3)--
            ``(A) will be promptly provided to local educational 
        agencies, schools, and teachers in a manner that is clear and 
        easy to understand, but not later than before the beginning of 
        the next school year; and
            ``(B) be used by those local educational agencies, schools, 
        and teachers to improve the educational achievement of 
        individual students.
    ``(c) Other Provisions To Support Teaching and Learning.--Each 
State plan shall contain assurances that--
        ``(1) the State educational agency will meet the requirements 
    of subsection (h)(1) and, beginning with the 2002-2003 school year, 
    will produce the annual State report cards described in such 
    subsection, except that the Secretary may provide the State 
    educational agency 1 additional year if the State educational 
    agency demonstrates that exceptional or uncontrollable 
    circumstances, such as a natural disaster or a precipitous and 
    unforeseen decline in the financial resources of the State, 
    prevented full implementation of this paragraph by that deadline 
    and that the State will complete implementation within the 
    additional 1-year period;
        ``(2) the State will, beginning in school year 2002-2003, 
    participate in biennial State academic 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;
        ``(3) the State educational agency, in consultation with the 
    Governor, will include, as a component of the State plan, 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;
        ``(4) 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, including technical 
    assistance in providing professional development under section 
    1119, technical assistance under section 1117, and technical 
    assistance relating to parental involvement under section 1118;
        ``(5)(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;
        ``(6) the State educational agency will notify local 
    educational agencies and the public of the content and student 
    academic achievement standards and academic 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;
        ``(7) 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;
        ``(8) 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 achievement;
        ``(9) 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;
        ``(10) 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;
        ``(11) the State educational agency has involved the committee 
    of practitioners established under section 1903(b) in developing 
    the plan and monitoring its implementation;
        ``(12) the State educational agency will inform local 
    educational agencies in the State of the local educational agency's 
    authority to transfer funds under title VI, to obtain waivers under 
    part D of title IX, and, if the State is an Ed-Flex Partnership 
    State, to obtain waivers under the Education Flexibility 
    Partnership Act of 1999;
        ``(13) the State educational agency will coordinate activities 
    funded under this part with other Federal activities as 
    appropriate; and
        ``(14) the State educational agency will encourage local 
    educational agencies and individual schools participating in a 
    program assisted under this part to offer family literacy services 
    (using funds under this part), if the agency or school determines 
    that a substantial number of students served under this part by the 
    agency or school have parents who do not have a secondary school 
    diploma or its recognized equivalent or who have low levels of 
    literacy.
    ``(d) Parental Involvement.--Each State plan shall describe how the 
State educational agency 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 that meets the 
    highest professional and technical standards, on effective parental 
    involvement that fosters achievement to high standards for all 
    children; and
        ``(2) be geared toward lowering barriers to greater 
    participation by parents in school planning, review, and 
    improvement experienced.
    ``(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, and local educational agencies, and who are familiar 
        with educational standards, assessments, accountability, the 
        needs of low-performing schools, and other 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 of 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 one or 
        more specific elements of the State's academic content 
        standards or to use specific academic assessment instruments or 
        items.
        ``(2) State revisions.--A State plan shall be revised by the 
    State educational agency if it is necessary to satisfy the 
    requirements of this section.
    ``(f) 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 as necessary by 
        the State educational agency to reflect changes in the State's 
        strategies and programs under this part.
        ``(2) Additional information.--If significant changes are made 
    to a State's plan, such as the adoption of new State academic 
    content standards and State student achievement standards, new 
    academic assessments, or a new definition of adequate yearly 
    progress, such information shall be submitted to the Secretary.
    ``(g) Penalties.--
        ``(1) Failure to meet deadlines enacted in 1994.--
            ``(A) In general.--If a State fails to meet the deadlines 
        established by the Improving America's Schools Act of 1994 (or 
        under any waiver granted by the Secretary or under any 
        compliance agreement with the Secretary) for demonstrating that 
        the State has in place challenging academic content standards 
        and student achievement standards, and a system for measuring 
        and monitoring adequate yearly progress, the Secretary shall 
        withhold 25 percent of the funds that would otherwise be 
        available to the State for State administration and activities 
        under this part in each year until the Secretary determines 
        that the State meets those requirements.
            ``(B) No extension.--Notwithstanding any other provision of 
        law, 90 days after the date of enactment of the No Child Left 
        Behind Act of 2001 the Secretary shall not grant any additional 
        waivers of, or enter into any additional compliance agreements 
        to extend, the deadlines described in subparagraph (A) for any 
        State.
        ``(2) Failure to meet requirements enacted in 2001.--If a State 
    fails to meet any of the requirements of this section, other than 
    the requirements described in paragraph (1), then the Secretary may 
    withhold funds for State administration under this part until the 
    Secretary determines that the State has fulfilled those 
    requirements.
    ``(h) Reports.--
        ``(1) Annual state report card.--
            ``(A) In general.--Not later than the beginning of the 
        2002-2003 school year, unless the State has received a 1-year 
        extension pursuant to subsection (c)(1), a State that receives 
        assistance under this part shall prepare and disseminate an 
        annual State report card.
            ``(B) Implementation.--The State report card shall be--
                ``(i) concise; and
                ``(ii) presented in an understandable and uniform 
            format and, to the extent practicable, provided in a 
            language that the parents can understand.
            ``(C) Required information.--The State shall include in its 
        annual State report card--
                ``(i) information, in the aggregate, on student 
            achievement at each proficiency level on the State academic 
            assessments described in subsection (b)(3) (disaggregated 
            by race, ethnicity, gender, disability status, migrant 
            status, English proficiency, and status as economically 
            disadvantaged, except that such disaggregation shall not be 
            required in a case in which the number of students in a 
            category is insufficient to yield statistically reliable 
            information or the results would reveal personally 
            identifiable information about an individual student);
                ``(ii) information that provides a comparison between 
            the actual achievement levels of each group of students 
            described in subsection (b)(2)(C)(v) and the State's annual 
            measurable objectives for each such group of students on 
            each of the academic assessments required under this part;
                ``(iii) the percentage of students not tested 
            (disaggregated by the same categories and subject to the 
            same exception described in clause (i));
                ``(iv) the most recent 2-year trend in student 
            achievement in each subject area, and for each grade level, 
            for which assessments under this section are required;
                ``(v) aggregate information on any other indicators 
            used by the State to determine the adequate yearly progress 
            of students in achieving State academic achievement 
            standards;
                ``(vi) graduation rates for secondary school students 
            consistent with subsection (b)(2)(C)(vi);
                ``(vii) information on the performance of local 
            educational agencies in the State regarding making adequate 
            yearly progress, including the number and names of each 
            school identified for school improvement under section 
            1116; and
                ``(viii) the professional qualifications of teachers in 
            the State, the percentage of such teachers teaching with 
            emergency or provisional credentials, and the percentage of 
            classes in the State not taught by highly qualified 
            teachers, in the aggregate and disaggregated by high-
            poverty compared to low-poverty schools which, for the 
            purpose of this clause, means schools in the top quartile 
            of poverty and the bottom quartile of poverty in the State.
            ``(D) Optional 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 public 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 and type of parental involvement in 
            the schools;
                ``(vi) the percentage of students completing advanced 
            placement courses, and the rate of passing of advanced 
            placement tests; and
                ``(vii) a clear and concise description of the State's 
            accountability system, including a description of the 
            criteria by which the State evaluates school performance, 
            and the criteria that the State has established, consistent 
            with subsection (b)(2), to determine the status of schools 
            regarding school improvement, corrective action, and 
            restructuring.
        ``(2) Annual local educational agency report cards.--
            ``(A) Report cards.--
                ``(i) In general.--Not later than the beginning of the 
            2002-2003 school year, a local educational agency that 
            receives assistance under this part shall prepare and 
            disseminate an annual local educational agency report card, 
            except that the State educational agency may provide the 
            local educational agency 1 additional year if the local 
            educational agency demonstrates that exceptional or 
            uncontrollable circumstances, such as a natural disaster or 
            a precipitous and unforeseen decline in the financial 
            resources of the local educational agency, prevented full 
            implementation of this paragraph by that deadline and that 
            the local educational agency will complete implementation 
            within the additional 1-year period.
                ``(ii) Special rule.--If a State educational agency has 
            received an extension pursuant to subsection (c)(1), then a 
            local educational agency within that State shall not be 
            required to include the information required under 
            paragraph (1)(C) in such report card during such extension.
            ``(B) Minimum requirements.--The State educational agency 
        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)(C) 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 under section 1116(c) 
                and how long the schools have been so identified; and
                    ``(II) information that shows how students served 
                by the local educational agency achieved on the 
                statewide academic 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 achievement on the statewide academic 
                assessments and other indicators of adequate yearly 
                progress 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 local educational agency report card any 
        other appropriate information, whether or not such information 
        is included in the annual State report card.
            ``(D) Data.--A local educational agency or school shall 
        only include in its annual local educational agency report card 
        data that are sufficient to yield statistically reliable 
        information, as determined by the State, and that do not reveal 
        personally 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, unless the local educational agency has received a 1-year 
        extension pursuant to subparagraph (A), publicly disseminate 
        the information described in this paragraph to all schools in 
        the school district served by the local educational agency and 
        to all parents of students attending those schools in an 
        understandable and uniform format and, to the extent 
        practicable, provided in a language that the parents can 
        understand, and make the information widely 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 educational agency or 
    local educational agency that was providing public report cards on 
    the performance of students, schools, local educational agencies, 
    or the State prior to the enactment of the No Child Left Behind Act 
    of 2001 may use those report cards for the purpose of this 
    subsection, so long as any such report card is modified, as may be 
    needed, to contain the information required by this subsection.
        ``(4) Annual state report to the secretary.--Each State 
    educational agency receiving assistance under this part shall 
    report annually to the Secretary, and make widely available within 
    the State--
            ``(A) beginning with school year 2002-2003, information on 
        the State's progress in developing and implementing the 
        academic assessments described in subsection (b)(3);
            ``(B) beginning not later than school year 2002-2003, 
        information on the achievement of students on the academic 
        assessments required by subsection (b)(3), including the 
        disaggregated results for the categories of students identified 
        in subsection (b)(2)(C)(v);
            ``(C) in any year before the State begins to provide the 
        information described in subparagraph (B), information on the 
        results of student academic assessments (including 
        disaggregated results) required under this section;
            ``(D) beginning not later than school year 2002-2003, 
        unless the State has received an extension pursuant to 
        subsection (c)(1), information on the acquisition of English 
        proficiency by children with limited English proficiency;
            ``(E) the number and names of each school identified for 
        school improvement under section 1116(c), the reason why each 
        school was so identified, and the measures taken to address the 
        achievement problems of such schools;
            ``(F) the number of students and schools that participated 
        in public school choice and supplemental service programs and 
        activities under this title; and
            ``(G) beginning not later than the 2002-2003 school year, 
        information on the quality of teachers and the percentage of 
        classes being taught by highly qualified teachers in the State, 
        local educational agency, and school.
        ``(5) Report to congress.--The Secretary shall transmit 
    annually 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 that provides national 
    and State-level data on the information collected under paragraph 
    (4).
        ``(6) Parents right-to-know.--
            ``(A) Qualifications.--At the beginning of each school 
        year, a local educational agency that receives funds under this 
        part shall notify the parents of each student attending any 
        school receiving funds under this part that the parents may 
        request, and the agency will provide the parents on request 
        (and in a timely manner), 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 
            paraprofessionals and, if so, their qualifications.
            ``(B) Additional information.--In addition to the 
        information that parents may request under subparagraph (A), a 
        school that receives funds under this part shall provide to 
        each individual parent--
                ``(i) information on the level of achievement of the 
            parent's child in each of the State academic assessments as 
            required under this part; and
                ``(ii) timely notice that the parent's child has been 
            assigned, or has been taught for four or more consecutive 
            weeks by, a teacher who is not highly qualified.
            ``(C) Format.--The notice and information provided to 
        parents under this paragraph shall be in an understandable and 
        uniform format and, to the extent practicable, provided in a 
        language that the parents can understand.
    ``(i) Privacy.--Information collected under this section shall be 
collected and disseminated in a manner that protects the privacy of 
individuals.
    ``(j) 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 academic assessments, the setting of State standards, the 
development of measures of adequate yearly progress that are valid and 
reliable, and other relevant areas.
    ``(k) Voluntary Partnerships.--A State may enter into a voluntary 
partnership with another State to develop and implement the academic 
assessments and standards required under this section.
    ``(l) Construction.--Nothing in this part shall be construed to 
prescribe the use of the academic assessments described in this part 
for student promotion or graduation purposes.
    ``(m) Special Rule With Respect to Bureau-Funded Schools.--In 
determining the assessments to be used by each operated or funded by 
BIA school receiving funds under this part, the following shall apply:
        ``(1) Each such school that is accredited by the State in which 
    it is operating shall use the assessments the State has developed 
    and implemented to meet the requirements of this section, or such 
    other appropriate assessment as approved by the Secretary of the 
    Interior.
        ``(2) Each such school that is accredited by a regional 
    accrediting organization shall adopt an appropriate assessment, in 
    consultation with and with the approval of, the Secretary of the 
    Interior and consistent with assessments adopted by other schools 
    in the same State or region, that meets the requirements of this 
    section.
        ``(3) Each such school that is accredited by a tribal 
    accrediting agency or tribal division of education shall use an 
    assessment developed by such agency or division, except that the 
    Secretary of the Interior shall ensure that such assessment meets 
    the requirements of this section.

``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.

    ``(a) Plans Required.--
        ``(1) Subgrants.--A local educational agency may receive a 
    subgrant under this part for any fiscal year only if such agency 
    has on file with the State educational agency a plan, approved by 
    the State educational agency, 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 McKinney-Vento Homeless Assistance Act, 
    and other Acts, as appropriate.
        ``(2) Consolidated application.--The plan may be submitted as 
    part of a consolidated application under section 9305.
    ``(b) Plan Provisions.--
        ``(1) In general.--In order to help low-achieving children meet 
    challenging achievement academic standards, each local educational 
    agency plan shall include--
            ``(A) a description of high-quality student academic 
        assessments, if any, that are in addition to the academic 
        assessments described in the State plan under section 
        1111(b)(3), that the local educational agency and schools 
        served under this part will use--
                ``(i) to determine the success of children served under 
            this part in meeting the State student academic achievement 
            standards, and to provide information to teachers, parents, 
            and students on the progress being made toward meeting the 
            State student academic achievement standards described in 
            section 1111(b)(1)(D)(ii);
                ``(ii) to assist in diagnosis, teaching, and learning 
            in the classroom in ways that best enable low-achieving 
            children served under this part to meet State student 
            achievement academic standards and do well in the local 
            curriculum;
                ``(iii) to determine what revisions are needed to 
            projects under this part so that such children meet the 
            State student academic achievement standards; and
                ``(iv) to identify effectively students who may be at 
            risk for reading failure or who are having difficulty 
            reading, through the use of screening, diagnostic, and 
            classroom-based instructional reading assessments, as 
            defined under section 1208;
            ``(B) at the local educational agency's discretion, a 
        description of any other indicators that will be used in 
        addition to the academic indicators described in section 1111 
        for the uses described in such section;
            ``(C) a description of how the local educational agency 
        will provide additional educational assistance to individual 
        students assessed as needing help in meeting the State's 
        challenging student academic achievement standards;
            ``(D) a description of the strategy the local educational 
        agency will use to coordinate programs under this part with 
        programs under title II to provide professional development for 
        teachers and principals, and, if appropriate, pupil services 
        personnel, administrators, parents and other staff, including 
        local educational agency level staff in accordance with 
        sections 1118 and 1119;
            ``(E) a description of how the local educational agency 
        will coordinate and integrate services provided under this part 
        with other educational services at the local educational agency 
        or individual school level, such as--
                ``(i) Even Start, Head Start, Reading First, Early 
            Reading First, and other preschool programs, including 
            plans for the transition of participants in such programs 
            to local elementary school programs; and
                ``(ii) services for children with limited English 
            proficiency, children with disabilities, migratory 
            children, neglected or delinquent youth, Indian children 
            served under part A of title VII, homeless children, and 
            immigrant children in order to increase program 
            effectiveness, eliminate duplication, and reduce 
            fragmentation of the instructional program;
            ``(F) an assurance that the local educational agency will 
        participate, if selected, in the State National Assessment of 
        Educational Progress in 4th and 8th grade reading and 
        mathematics carried out under section 411(b)(2) of the National 
        Education Statistics Act of 1994;
            ``(G) a description of the poverty criteria that will be 
        used to select school attendance areas under section 1113;
            ``(H) a description of how teachers, in consultation with 
        parents, administrators, and pupil services personnel, in 
        targeted assistance schools under section 1115, will identify 
        the eligible children most in need of services under this part;
            ``(I) a general description of the nature of the programs 
        to be conducted by such agency's schools under sections 1114 
        and 1115 and, where appropriate, educational services outside 
        such schools for children living in local institutions for 
        neglected or delinquent children, and for neglected and 
        delinquent children in community day school programs;
            ``(J) a description of how the local educational agency 
        will ensure that migratory children and formerly migratory 
        children who are eligible to receive services under this part 
        are selected to receive such services on the same basis as 
        other children who are selected to receive services under this 
        part;
            ``(K) if appropriate, a description of how the local 
        educational agency will use funds under this part to support 
        preschool programs for children, particularly children 
        participating in Early Reading First, or in a Head Start or 
        Even Start program, which services may be provided directly by 
        the local educational agency or through a subcontract with the 
        local Head Start agency designated by the Secretary of Health 
        and Human Services under section 641 of the Head Start Act, or 
        an agency operating an Even Start program, an Early Reading 
        First program, or another comparable public early childhood 
        development program;
            ``(L) a description of the actions the local educational 
        agency will take to assist its low-achieving schools identified 
        under section 1116 as in need of improvement;
            ``(M) a description of the actions the local educational 
        agency will take to implement public school choice and 
        supplemental services, consistent with the requirements of 
        section 1116;
            ``(N) a description of how the local educational agency 
        will meet the requirements of section 1119;
            ``(O) a description of the services the local educational 
        agency will provide homeless children, including services 
        provided with funds reserved under section 1113(c)(3)(A);
            ``(P) a description of the strategy the local educational 
        agency will use to implement effective parental involvement 
        under section 1118; and
            ``(Q) where appropriate, a description of how the local 
        educational agency will use funds under this part to support 
        after school (including before school and summer school) and 
        school-year extension programs.
        ``(2) Exception.--The academic assessments and indicators 
    described in subparagraphs (A) and (B) of paragraph (1) shall not 
    be used--
            ``(A) in lieu of the academic assessments required under 
        section 1111(b)(3) and other State academic indicators under 
        section 1111(b)(2); or
            ``(B) to reduce the number of, or change which, schools 
        would otherwise be subject to school improvement, corrective 
        action, or restructuring under section 1116, if such additional 
        assessments or indicators described in such subparagraphs were 
        not used, but such assessments and indicators may be used to 
        identify additional schools for school improvement or in need 
        of corrective action or restructuring.
    ``(c) Assurances.--
        ``(1) In general.--Each local educational agency plan shall 
    provide assurances that the local educational agency will--
            ``(A) inform eligible schools and parents of schoolwide 
        program authority and the ability of such schools to 
        consolidate funds from Federal, State, and local sources;
            ``(B) provide technical assistance and support to 
        schoolwide programs;
            ``(C) 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 student 
        academic achievement standards;
            ``(D) fulfill such agency's school improvement 
        responsibilities under section 1116, including taking actions 
        under paragraphs (7) and (8) of section 1116(b);
            ``(E) provide services to eligible children attending 
        private elementary schools and secondary schools in accordance 
        with section 1120, and timely and meaningful consultation with 
        private school officials regarding such services;
            ``(F) take into account the experience of model programs 
        for the educationally disadvantaged, and the findings of 
        relevant scientifically based research indicating that services 
        may be most effective if focused on students in the earliest 
        grades at schools that receive funds under this part;
            ``(G) in the case of a local educational agency that 
        chooses to use funds under this part to provide early childhood 
        development services to low-income children below the age of 
        compulsory school attendance, ensure that such services comply 
        with the performance standards established under section 
        641A(a) of the Head Start Act;
            ``(H) work in consultation with schools as the schools 
        develop and implement their plans or activities under sections 
        1118 and 1119;
            ``(I) comply with the requirements of section 1119 
        regarding the qualifications of teachers and paraprofessionals 
        and professional development;
            ``(J) inform eligible schools of the local educational 
        agency's authority to obtain waivers on the school's behalf 
        under title IX and, if the State is an Ed-Flex Partnership 
        State, to obtain waivers under the Education Flexibility 
        Partnership Act of 1999;
            ``(K) coordinate and collaborate, to the extent feasible 
        and necessary as determined by the local educational agency, 
        with the State educational agency and other agencies providing 
        services to children, youth, and families with respect to a 
        school in school improvement, corrective action, or 
        restructuring under section 1116 if such a school requests 
        assistance from the local educational agency in addressing 
        major factors that have significantly affected student 
        achievement at the school;
            ``(L) 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;
            ``(M) use the results of the student academic 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 part to determine whether all of the schools 
        are making the progress necessary to ensure that all students 
        will meet the State's proficient level of achievement on the 
        State academic assessments described in section 1111(b)(3) 
        within 12 years from the end of the 2001-2002 school year;
            ``(N) ensure that the results from the academic assessments 
        required under section 1111(b)(3) will be provided to parents 
        and teachers as soon as is practicably possible after the test 
        is taken, in an understandable and uniform format and, to the 
        extent practicable, provided in a language that the parents can 
        understand; and
            ``(O) assist each school served by the agency and assisted 
        under this part in developing or identifying examples of high-
        quality, effective curricula consistent with section 
        1111(b)(8)(D).
        ``(2) Special rule.--In carrying out subparagraph (G) of 
    paragraph (1), the Secretary--
            ``(A) shall consult with the Secretary of Health and Human 
        Services and shall establish procedures (taking into 
        consideration existing State and local laws, and local teacher 
        contracts) to assist local educational agencies to comply with 
        such subparagraph; and
            ``(B) shall disseminate to local educational agencies the 
        Head Start performance standards as in effect under section 
        641A(a) of the Head Start Act, and such agencies affected by 
        such subparagraph shall plan for the implementation of such 
        subparagraph (taking into consideration existing State and 
        local laws, and local teacher contracts), including pursuing 
        the availability of other Federal, State, and local funding 
        sources to assist in compliance with such subparagraph.
        ``(3) Inapplicability.--Paragraph (1)(G) of this subsection 
    shall not apply to preschool programs using the Even Start model or 
    to Even Start programs that are expanded through the use of funds 
    under this part.
    ``(d) Plan Development and Duration.--
        ``(1) Consultation.--Each local educational agency plan shall 
    be developed in consultation with teachers, principals, 
    administrators (including administrators of programs described in 
    other parts of this title), and other appropriate school personnel, 
    and with parents of children in schools served under this part.
        ``(2) Duration.--Each such plan shall be submitted for the 
    first year for which this part is in effect following the date of 
    enactment of the No Child Left Behind Act of 2001 and shall remain 
    in effect for the duration of the agency's participation under this 
    part.
        ``(3) Review.--Each local educational agency shall periodically 
    review and, as necessary, revise its plan.
    ``(e) State Approval.--
        ``(1) In general.--Each local educational agency plan shall be 
    filed according to a schedule established by the State educational 
    agency.
        ``(2) Approval.--The State educational agency shall approve a 
    local educational agency's plan only if the State educational 
    agency determines that the local educational agency's plan--
            ``(A) enables schools served under this part to 
        substantially help children served under this part meet the 
        academic standards expected of all children described in 
        section 1111(b)(1); and
            ``(B) meets the requirements of this section.
        ``(3) Review.--The State educational agency shall review the 
    local educational agency's plan to determine if such agencies 
    activities are in accordance with sections 1118 and 1119.
    ``(f) Program Responsibility.--The local educational agency plan 
shall reflect the shared responsibility of schools, teachers, and the 
local educational agency in making decisions regarding activities under 
sections 1114 and 1115.
    ``(g) Parental Notification.--
        ``(1) In general.--
            ``(A) Notice.--Each local educational agency using funds 
        under this part to provide a language instruction educational 
        program as determined in part C of title III shall, not later 
        than 30 days after the beginning of the school year, inform a 
        parent or parents of a limited English proficient child 
        identified for participation or participating in, such a 
        program of--
                ``(i) the reasons for the identification of their child 
            as limited English proficient and in need of placement in a 
            language instruction educational program;
                ``(ii) the child's level of English proficiency, how 
            such level was assessed, and the status of the child's 
            academic achievement;
                ``(iii) the methods of instruction used in the program 
            in which their child is, or will be participating, and the 
            methods of instruction used in other available programs, 
            including how such programs differ in content, 
            instructional goals, and the use of English and a native 
            language in instruction;
                ``(iv) how the program in which their child is, or will 
            be participating, will meet the educational strengths and 
            needs of their child;
                ``(v) how such program will specifically help their 
            child learn English, and meet age-appropriate academic 
            achievement standards for grade promotion and graduation;
                ``(vi) the specific exit requirements for the program, 
            including the expected rate of transition from such program 
            into classrooms that are not tailored for limited English 
            proficient children, and the expected rate of graduation 
            from secondary school for such program if funds under this 
            part are used for children in secondary schools;
                ``(vii) in the case of a child with a disability, how 
            such program meets the objectives of the individualized 
            education program of the child;
                ``(viii) information pertaining to parental rights that 
            includes written guidance--

                    ``(I) detailing--

                        ``(aa) the right that parents have to have 
                    their child immediately removed from such program 
                    upon their request; and
                        ``(bb) the options that parents have to decline 
                    to enroll their child in such program or to choose 
                    another program or method of instruction, if 
                    available; and

                    ``(II) assisting parents in selecting among various 
                programs and methods of instruction, if more than one 
                program or method is offered by the eligible entity.

            ``(B) Separate notification.--In addition to providing the 
        information required to be provided under paragraph (1), each 
        eligible entity that is using funds provided under this part to 
        provide a language instruction educational program, and that 
        has failed to make progress on the annual measurable 
        achievement objectives described in section 3122 for any fiscal 
        year for which part A is in effect, shall separately inform a 
        parent or the parents of a child identified for participation 
        in such program, or participating in such program, of such 
        failure not later than 30 days after such failure occurs.
        ``(2) Notice.--The notice and information provided in paragraph 
    (1) to a parent or parents of a child identified for participation 
    in a language instruction educational program for limited English 
    proficient children shall be in an understandable and uniform 
    format and, to the extent practicable, provided in a language that 
    the parents can understand.
        ``(3) Special rule applicable during the school year.--For 
    those children who have not been identified as limited English 
    proficient prior to the beginning of the school year the local 
    educational agency shall notify parents within the first 2 weeks of 
    the child being placed in a language instruction educational 
    program consistent with paragraphs (1) and (2).
        ``(4) Parental participation.--Each local educational agency 
    receiving funds under this part shall implement an effective means 
    of outreach to parents of limited English proficient students to 
    inform the parents regarding how the parents can be involved in the 
    education of their children, and be active participants in 
    assisting their children to attain English proficiency, achieve at 
    high levels in core academic subjects, and meet challenging State 
    academic achievement standards and State academic content standards 
    expected of all students, including holding, and sending notice of 
    opportunities for, regular meetings for the purpose of formulating 
    and responding to recommendations from parents of students assisted 
    under this part.
        ``(5) Basis for admission or exclusion.--A student shall not be 
    admitted to, or excluded from, any federally assisted education 
    program on the basis of a surname or language-minority status.

``SEC. 1113. ELIGIBLE SCHOOL ATTENDANCE AREAS.

    ``(a) Determination.--
        ``(1) In general.--A local educational agency shall use funds 
    received under this part only in eligible school attendance areas.
        ``(2) Eligible school attendance areas.--For the purposes of 
    this part--
            ``(A) the term `school attendance area' means, in relation 
        to a particular school, the geographical area in which the 
        children who are normally served by that school reside; and
            ``(B) the term `eligible school attendance area' means a 
        school attendance area in which the percentage of children from 
        low-income families is at least as high as the percentage of 
        children from low-income families served by the local 
        educational agency as a whole.
        ``(3) Ranking order.--If funds allocated in accordance with 
    subsection (c) are insufficient to serve all eligible school 
    attendance areas, a local educational agency shall--
            ``(A) annually rank, without regard to grade spans, such 
        agency's eligible school attendance areas in which the 
        concentration of children from low-income families exceeds 75 
        percent from highest to lowest according to the percentage of 
        children from low-income families; and
            ``(B) serve such eligible school attendance areas in rank 
        order.
        ``(4) Remaining funds.--If funds remain after serving all 
    eligible school attendance areas under paragraph (3), a local 
    educational agency shall--
            ``(A) annually rank such agency's remaining eligible school 
        attendance areas from highest to lowest either by grade span or 
        for the entire local educational agency according to the 
        percentage of children from low-income families; and
            ``(B) serve such eligible school attendance areas in rank 
        order either within each grade-span grouping or within the 
        local educational agency as a whole.
        ``(5) Measures.--The local educational agency shall use the 
    same measure of poverty, which measure shall be the number of 
    children ages 5 through 17 in poverty counted in the most recent 
    census data approved by the Secretary, the number of children 
    eligible for free and reduced priced lunches under the Richard B. 
    Russell National School Lunch Act, the number of children in 
    families receiving assistance under the State program funded under 
    part A of title IV of the Social Security Act, or the number of 
    children eligible to receive medical assistance under the Medicaid 
    program, or a composite of such indicators, with respect to all 
    school attendance areas in the local educational agency--
            ``(A) to identify eligible school attendance areas;
            ``(B) to determine the ranking of each area; and
            ``(C) to determine allocations under subsection (c).
        ``(6) Exception.--This subsection shall not apply to a local 
    educational agency with a total enrollment of less than 1,000 
    children.
        ``(7) Waiver for desegregation plans.--The Secretary may 
    approve a local educational agency's written request for a waiver 
    of the requirements of subsections (a) and (c), and permit such 
    agency to treat as eligible, and serve, any school that children 
    attend with a State-ordered, court-ordered school desegregation 
    plan or a plan that continues to be implemented in accordance with 
    a State-ordered or court-ordered desegregation plan, if--
            ``(A) the number of economically disadvantaged children 
        enrolled in the school is at least 25 percent of the school's 
        total enrollment; and
            ``(B) the Secretary determines on the basis of a written 
        request from such agency and in accordance with such criteria 
        as the Secretary establishes, that approval of that request 
        would further the purposes of this part.
    ``(b) Local Educational Agency Discretion.--
        ``(1) In general.--Notwithstanding subsection (a)(2), a local 
    educational agency may--
            ``(A) designate as eligible any school attendance area or 
        school in which at least 35 percent of the children are from 
        low-income families;
            ``(B) use funds received under this part in a school that 
        is not in an eligible school attendance area, if the percentage 
        of children from low-income families enrolled in the school is 
        equal to or greater than the percentage of such children in a 
        participating school attendance area of such agency;
            ``(C) designate and serve a school attendance area or 
        school that is not eligible under this section, but that was 
        eligible and that was served in the preceding fiscal year, but 
        only for 1 additional fiscal year; and
            ``(D) elect not to serve an eligible school attendance area 
        or eligible school that has a higher percentage of children 
        from low-income families if--
                ``(i) the school meets the comparability requirements 
            of section 1120A(c);
                ``(ii) the school is receiving supplemental funds from 
            other State or local sources that are spent according to 
            the requirements of section 1114 or 1115; and
                ``(iii) the funds expended from such other sources 
            equal or exceed the amount that would be provided under 
            this part.
        ``(2) Special rule.--Notwithstanding paragraph (1)(D), the 
    number of children attending private elementary schools and 
    secondary schools who are to receive services, and the assistance 
    such children are to receive under this part, shall be determined 
    without regard to whether the public school attendance area in 
    which such children reside is assisted under subparagraph (A).
    ``(c) Allocations.--
        ``(1) In general.--A local educational agency shall allocate 
    funds received under this part to eligible school attendance areas 
    or eligible schools, identified under subsections (a) and (b), in 
    rank order, on the basis of the total number of children from low-
    income families in each area or school.
        ``(2) Special rule.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        the per-pupil amount of funds allocated to each school 
        attendance area or school under paragraph (1) shall be at least 
        125 percent of the per-pupil amount of funds a local 
        educational agency received for that year under the poverty 
        criteria described by the local educational agency in the plan 
        submitted under section 1112, except that this paragraph shall 
        not apply to a local educational agency that only serves 
        schools in which the percentage of such children is 35 percent 
        or greater.
            ``(B) Exception.--A local educational agency may reduce the 
        amount of funds allocated under subparagraph (A) for a school 
        attendance area or school by the amount of any supplemental 
        State and local funds expended in that school attendance area 
        or school for programs that meet the requirements of section 
        1114 or 1115.
        ``(3) Reservation.--A local educational agency shall reserve 
    such funds as are necessary under this part to provide services 
    comparable to those provided to children in schools funded under 
    this part to serve--
            ``(A) homeless children who do not attend participating 
        schools, including providing educationally related support 
        services to children in shelters and other locations where 
        children may live;
            ``(B) children in local institutions for neglected 
        children; and
            ``(C) if appropriate, children in local institutions for 
        delinquent children, and neglected or delinquent children in 
        community day school programs.
        ``(4) Financial incentives and rewards reservation.--A local 
    educational agency may reserve such funds as are necessary from 
    those funds received by the local educational agency under title 
    II, and not more than 5 percent of those funds received by the 
    local educational agency under subpart 2, to provide financial 
    incentives and rewards to teachers who serve in schools eligible 
    under this section and identified for school improvement, 
    corrective action, and restructuring under section 1116(b) for the 
    purpose of attracting and retaining qualified and effective 
    teachers.

``SEC. 1114. SCHOOLWIDE PROGRAMS.

    ``(a) Use of Funds for Schoolwide Programs.--
        ``(1) In general.--A local educational agency may consolidate 
    and use funds under this part, together with other Federal, State, 
    and local funds, in order 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.
        ``(2) Identification of students not required.--
            ``(A) In general.--No school participating in a schoolwide 
        program shall be required--
                ``(i) to identify particular children under this part 
            as eligible to participate in a schoolwide program; or
                ``(ii) to provide services to such children that are 
            supplementary, as otherwise required by section 1120A(b).
            ``(B) Supplemental funds.--A school participating in a 
        schoolwide program shall use funds available to carry out this 
        section only to supplement the amount of funds that would, in 
        the absence of funds under this part, be made available from 
        non-Federal sources for the school, including funds needed to 
        provide services that are required by law for children with 
        disabilities and children with limited English proficiency.
        ``(3) Exemption from statutory and regulatory requirements.--
            ``(A) Exemption.--Except as provided in subsection (b), the 
        Secretary may, through publication of a notice in the Federal 
        Register, exempt schoolwide programs under this section from 
        statutory or regulatory provisions of any other noncompetitive 
        formula grant program administered by the Secretary (other than 
        formula or discretionary grant programs under the Individuals 
        with Disabilities Education Act, except as provided in section 
        613(a)(2)(D) of such Act), or any discretionary grant program 
        administered by the Secretary, to support schoolwide programs 
        if the intent and purposes of such other programs are met.
            ``(B) Requirements.--A school that chooses to use funds 
        from such other programs shall not be relieved of the 
        requirements relating to health, safety, civil rights, student 
        and parental participation and involvement, services to private 
        school children, maintenance of effort, comparability of 
        services, uses of Federal funds to supplement, not supplant 
        non-Federal funds, or the distribution of funds to State 
        educational agencies or local educational agencies that apply 
        to the receipt of funds from such programs.
            ``(C) Records.--A school that consolidates and uses funds 
        from different Federal 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 Federal 
        programs that were consolidated to support the schoolwide 
        program.
        ``(4) Professional development.--Each school receiving funds 
    under this part for any fiscal year shall devote sufficient 
    resources to effectively carry out the activities described in 
    subsection (b)(1)(D) in accordance with section 1119 for such 
    fiscal year, except that a school may enter into a consortium with 
    another school to carry out such activities.
    ``(b) Components of a Schoolwide Program.--
        ``(1) In general.--A schoolwide program shall include the 
    following components:
            ``(A) A comprehensive needs assessment of the entire school 
        (including taking into account the needs of migratory children 
        as defined in section 1309(2)) that is based on information 
        which includes the achievement of children in relation to the 
        State academic content standards and the State student academic 
        achievement standards described in section 1111(b)(1).
            ``(B) Schoolwide reform strategies that--
                ``(i) provide opportunities for all children to meet 
            the State's proficient and advanced levels of student 
            academic achievement described in section 1111(b)(1)(D);
                ``(ii) use effective methods and instructional 
            strategies that are based on scientifically based research 
            that--

                    ``(I) strengthen the core academic program in the 
                school;
                    ``(II) increase the amount and quality of learning 
                time, such as providing an extended school year and 
                before- and after-school and summer programs and 
                opportunities, and help provide an enriched and 
                accelerated curriculum; and
                    ``(III) include strategies for meeting the 
                educational needs of historically underserved 
                populations;

                ``(iii)(I) include strategies to address the needs of 
            all children in the school, but particularly the needs of 
            low-achieving children and those at risk of not meeting the 
            State student academic achievement standards who are 
            members of the target population of any program that is 
            included in the schoolwide program, which may include--

                    ``(aa) counseling, pupil services, and mentoring 
                services;
                    ``(bb) college and career awareness and 
                preparation, such as college and career guidance, 
                personal finance education, and innovative teaching 
                methods, which may include applied learning and team-
                teaching strategies; and
                    ``(cc) the integration of vocational and technical 
                education programs; and

                ``(II) address how the school will determine if such 
            needs have been met; and
                ``(iv) are consistent with, and are designed to 
            implement, the State and local improvement plans, if any.
            ``(C) Instruction by highly qualified teachers.
            ``(D) In accordance with section 1119 and subsection 
        (a)(4), high-quality and ongoing professional development for 
        teachers, principals, and paraprofessionals and, if 
        appropriate, pupil services personnel, parents, and other staff 
        to enable all children in the school to meet the State's 
        student academic achievement standards.
            ``(E) Strategies to attract high-quality highly qualified 
        teachers to high-need schools.
            ``(F) Strategies to increase parental involvement in 
        accordance with section 1118, such as family literary services.
            ``(G) Plans for assisting preschool children in the 
        transition from early childhood programs, such as Head Start, 
        Even Start, Early Reading First, or a State-run preschool 
        program, to local elementary school programs.
            ``(H) Measures to include teachers in the decisions 
        regarding the use of academic assessments described in section 
        1111(b)(3) in order to provide information on, and to improve, 
        the achievement of individual students and the overall 
        instructional program.
            ``(I) Activities to ensure that students who experience 
        difficulty mastering the proficient or advanced levels of 
        academic achievement standards required by section 1111(b)(1) 
        shall be provided with effective, timely additional assistance 
        which shall include measures to ensure that students' 
        difficulties are identified on a timely basis and to provide 
        sufficient information on which to base effective assistance.
            ``(J) 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, vocational and 
        technical education, and job training.
        ``(2) Plan.--
            ``(A) In general.--Any eligible school that desires to 
        operate a schoolwide program shall first develop (or amend a 
        plan for such a program that was in existence on the day before 
        the date of enactment of the No Child Left Behind Act of 2001), 
        in consultation with the local educational agency and its 
        school support team or other technical assistance provider 
        under section 1117, a comprehensive plan for reforming the 
        total instructional program in the school that--
                ``(i) describes how the school will implement the 
            components described in paragraph (1);
                ``(ii) describes how the school will use resources 
            under this part and from other sources to implement those 
            components;
                ``(iii) includes a list of State educational agency and 
            local educational agency programs and other Federal 
            programs under subsection (a)(3) that will be consolidated 
            in the schoolwide program; and
                ``(iv) describes how the school will provide individual 
            student academic assessment results in a language the 
            parents can understand, including an interpretation of 
            those results, to the parents of a child who participates 
            in the academic assessments required by section 1111(b)(3).
            ``(B) Plan development.--The comprehensive plan shall be--
                ``(i) developed during a one-year period, unless--

                    ``(I) the local educational agency, after 
                considering the recommendation of the technical 
                assistance providers under section 1117, determines 
                that less time is needed to develop and implement the 
                schoolwide program; or
                    ``(II) the school is operating a schoolwide program 
                on the day preceding the date of enactment of the No 
                Child Left Behind Act of 2001, in which case such 
                school may continue to operate such program, but shall 
                develop amendments to its existing plan during the 
                first year of assistance after that date to reflect the 
                provisions of this section;

                ``(ii) developed with the involvement of parents and 
            other members of the community to be served and individuals 
            who will carry out such plan, including teachers, 
            principals, and administrators (including administrators of 
            programs described in other parts of this title), and, if 
            appropriate, pupil services personnel, technical assistance 
            providers, school staff, and, if the plan relates to a 
            secondary school, students from such school;
                ``(iii) in effect for the duration of the school's 
            participation under this part and reviewed and revised, as 
            necessary, by the school;
                ``(iv) available to the local educational agency, 
            parents, and the public, and the information contained in 
            such plan shall be in an understandable and uniform format 
            and, to the extent practicable, provided in a language that 
            the parents can understand; and
                ``(v) if appropriate, developed in coordination with 
            programs under Reading First, Early Reading First, Even 
            Start, Carl D. Perkins Vocational and Technical Education 
            Act of 1998, and the Head Start Act.
    ``(c) Prekindergarten Program.--A school that is eligible for a 
schoolwide program under this section may use funds made available 
under this part to establish or enhance prekindergarten programs for 
children below the age of 6, such as Even Start programs or Early 
Reading First programs.

``SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

    ``(a) In General.--In all schools selected to receive funds under 
section 1113(c) that are ineligible for a schoolwide program under 
section 1114, or that choose not to operate such a schoolwide program, 
a local educational agency serving such school may use funds received 
under this part only for programs that provide services to eligible 
children under subsection (b) identified as having the greatest need 
for special assistance.
    ``(b) Eligible Children.--
        ``(1) Eligible population.--
            ``(A) In general.--The eligible population for services 
        under this section is--
                ``(i) children not older than age 21 who are entitled 
            to a free public education through grade 12; and
                ``(ii) children who are not yet at a grade level at 
            which the local educational agency provides a free public 
            education.
            ``(B) Eligible children from eligible population.--From the 
        population described in subparagraph (A), eligible children are 
        children identified by the school as failing, or most at risk 
        of failing, to meet the State's challenging student academic 
        achievement standards on the basis of multiple, educationally 
        related, objective criteria established by the local 
        educational agency and supplemented by the school, except that 
        children from preschool through grade 2 shall be selected 
        solely on the basis of such criteria as teacher judgment, 
        interviews with parents, and developmentally appropriate 
        measures.
        ``(2) Children included.--
            ``(A) In general.--Children who are economically 
        disadvantaged, children with disabilities, migrant children or 
        limited English proficient children, are eligible for services 
        under this part on the same basis as other children selected to 
        receive services under this part.
            ``(B) Head start, even start, or early reading first 
        children.--A child who, at any time in the 2 years preceding 
        the year for which the determination is made, participated in a 
        Head Start, Even Start, or Early Reading First program, or in 
        preschool services under this title, is eligible for services 
        under this part.
            ``(C) Part c children.--A child who, at any time in the 2 
        years preceding the year for which the determination is made, 
        received services under part C is eligible for services under 
        this part.
            ``(D) Neglected or delinquent children.--A child in a local 
        institution for neglected or delinquent children and youth or 
        attending a community day program for such children is eligible 
        for services under this part.
            ``(E) Homeless children.--A child who is homeless and 
        attending any school served by the local educational agency is 
        eligible for services under this part.
        ``(3) Special rule.--Funds received under this part may not be 
    used to provide services that are otherwise required by law to be 
    made available to children described in paragraph (2) but may be 
    used to coordinate or supplement such services.
    ``(c) Components of a Targeted Assistance School Program.--
        ``(1) In general.--To assist targeted assistance schools and 
    local educational agencies to meet their responsibility to provide 
    for all their students served under this part the opportunity to 
    meet the State's challenging student academic achievement standards 
    in subjects as determined by the State, each targeted assistance 
    program under this section shall--
            ``(A) use such program's resources under this part to help 
        participating children meet such State's challenging student 
        academic achievement standards expected for all children;
            ``(B) ensure that planning for students served under this 
        part is incorporated into existing school planning;
            ``(C) use effective methods and instructional strategies 
        that are based on scientifically based research that 
        strengthens the core academic program of the school and that--
                ``(i) give primary consideration to providing extended 
            learning time, such as an extended school year, before- and 
            after-school, and summer programs and opportunities;
                ``(ii) help provide an accelerated, high-quality 
            curriculum, including applied learning; and
                ``(iii) minimize removing children from the regular 
            classroom during regular school hours for instruction 
            provided under this part;
            ``(D) coordinate with and support the regular education 
        program, which may include services to assist preschool 
        children in the transition from early childhood programs such 
        as Head Start, Even Start, Early Reading First or State-run 
        preschool programs to elementary school programs;
            ``(E) provide instruction by highly qualified teachers;
            ``(F) in accordance with subsection (e)(3) and section 
        1119, provide opportunities for professional development with 
        resources provided under this part, and, to the extent 
        practicable, from other sources, for teachers, principals, and 
        paraprofessionals, including, if appropriate, pupil services 
        personnel, parents, and other staff, who work with 
        participating children in programs under this section or in the 
        regular education program;
            ``(G) provide strategies to increase parental involvement 
        in accordance with section 1118, such as family literacy 
        services; and
            ``(H) 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, vocational and technical 
        education, and job training.
        ``(2) Requirements.--Each school conducting a program under 
    this section shall assist participating children selected in 
    accordance with subsection (b) to meet the State's proficient and 
    advanced levels of achievement by--
            ``(A) the coordinating of resources provided under this 
        part with other resources; and
            ``(B) reviewing, on an ongoing basis, the progress of 
        participating children and revising the targeted assistance 
        program, if necessary, to provide additional assistance to 
        enable such children to meet the State's challenging student 
        academic achievement standards, such as an extended school 
        year, before- and after-school, and summer programs and 
        opportunities, training for teachers regarding how to identify 
        students who need additional assistance, and training for 
        teachers regarding how to implement student academic 
        achievement standards in the classroom.
    ``(d) Integration of Professional Development.--To promote the 
integration of staff supported with funds under this part into the 
regular school program and overall school planning and improvement 
efforts, public school personnel who are paid with funds received under 
this part may--
        ``(1) participate in general professional development and 
    school planning activities; and
        ``(2) assume limited duties that are assigned to similar 
    personnel who are not so paid, including duties beyond classroom 
    instruction or that do not benefit participating children, so long 
    as the amount of time spent on such duties is the same proportion 
    of total work time as prevails with respect to similar personnel at 
    the same school.
    ``(e) Special Rules.--
        ``(1) Simultaneous service.--Nothing in this section shall be 
    construed to prohibit a school from serving students under this 
    section simultaneously with students with similar educational 
    needs, in the same educational settings where appropriate.
        ``(2) Comprehensive services.--If--
            ``(A) health, nutrition, and other social services are not 
        otherwise available to eligible children in a targeted 
        assistance school and such school, if appropriate, has engaged 
        in a comprehensive needs assessment and established a 
        collaborative partnership with local service providers; and
            ``(B) funds are not reasonably available from other public 
        or private sources to provide such services, then a portion of 
        the funds provided under this part may be used as a last resort 
        to provide such services, including--
                ``(i) the provision of basic medical equipment, such as 
            eyeglasses and hearing aids;
                ``(ii) compensation of a coordinator; and
                ``(iii) professional development necessary to assist 
            teachers, pupil services personnel, other staff, and 
            parents in identifying and meeting the comprehensive needs 
            of eligible children.
        ``(3) Professional development.--Each school receiving funds 
    under this part for any fiscal year shall devote sufficient 
    resources to carry out effectively the professional development 
    activities described in subparagraph (F) of subsection (c)(1) in 
    accordance with section 1119 for such fiscal year, and a school may 
    enter into a consortium with another school to carry out such 
    activities.

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

    ``(a) Local Review.--
        ``(1) In general.--Each local educational agency receiving 
    funds under this part shall--
            ``(A) use the State academic assessments and other 
        indicators described in the State plan to review annually the 
        progress of each school served under this part to determine 
        whether the school is making adequate yearly progress as 
        defined in section 1111(b)(2);
            ``(B) at the local educational agency's discretion, use any 
        academic assessments or any other academic indicators described 
        in the local educational agency's plan under section 
        1112(b)(1)(A) and (B) to review annually the progress of each 
        school served under this part to determine whether the school 
        is making adequate yearly progress as defined in section 
        1111(b)(2), except that the local educational agency may not 
        use such indicators (other than as provided for in section 
        1111(b)(2)(I)) if the indicators reduce the number or change 
        the schools that would otherwise be subject to school 
        improvement, corrective action, or restructuring under section 
        1116 if such additional indicators were not used, but may 
        identify additional schools for school improvement or in need 
        of corrective action or restructuring;
            ``(C) publicize and disseminate the results of the local 
        annual review described in paragraph (1) to parents, teachers, 
        principals, schools, and the community so that the teachers, 
        principals, other staff, and schools can continually refine, in 
        an instructionally useful manner, the program of instruction to 
        help all children served under this part meet the challenging 
        State student academic achievement standards established under 
        section 1111(b)(1); and
            ``(D) review the effectiveness of the actions and 
        activities the schools are carrying out under this part with 
        respect to parental involvement, professional development, and 
        other activities assisted under this part.
        ``(2) Available results.--The State educational agency shall 
    ensure that the results of State academic assessments administered 
    in that school year are available to the local educational agency 
    before the beginning of the next school year.
    ``(b) School Improvement.--
        ``(1) General requirements.--
            ``(A) Identification.--Subject to subparagraph (C), a local 
        educational agency shall identify for school improvement any 
        elementary school or secondary school served under this part 
        that fails, for 2 consecutive years, to make adequate yearly 
        progress as defined in the State's plan under section 
        1111(b)(2).
            ``(B) Deadline.--The identification described in 
        subparagraph (A) shall take place before the beginning of the 
        school year following such failure to make adequate yearly 
        progress.
            ``(C) Application.--Subparagraph (A) shall not apply to a 
        school if almost every student in each group specified in 
        section 1111(b)(2)(C)(v) enrolled in such school is meeting or 
        exceeding the State's proficient level of academic achievement.
            ``(D) Targeted assistance schools.--To determine if an 
        elementary school or a secondary school that is conducting a 
        targeted assistance program under section 1115 should be 
        identified for school improvement, corrective action, or 
        restructuring under this section, 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.
            ``(E) Public school choice.--
                ``(i) In general.--In the case of a school identified 
            for school improvement under this paragraph, the local 
            educational agency shall, not later than the first day of 
            the school year following such identification, provide all 
            students enrolled in the school with the option to transfer 
            to another public school served by the local educational 
            agency, which may include a public charter school, that has 
            not been identified for school improvement under this 
            paragraph, unless such an option is prohibited by State 
            law.
                ``(ii) Rule.--In providing students the option to 
            transfer to another public school, the local educational 
            agency shall give priority to the lowest achieving children 
            from low-income families, as determined by the local 
            educational agency for purposes of allocating funds to 
            schools under section 1113(c)(1).
            ``(F) Transfer.--Students who use the option to transfer 
        under subparagraph (E) and paragraph (5)(A), (7)(C)(i), or 
        (8)(A)(i) or subsection (c)(10)(C)(vii) shall be enrolled in 
        classes and other activities in the public school to which the 
        students transfer in the same manner as all other children at 
        the public school.
        ``(2) Opportunity to review and present evidence; time limit.--
            ``(A) Identification.--Before identifying an elementary 
        school or a secondary school for school improvement under 
        paragraphs (1) or (5)(A), for corrective action under paragraph 
        (7), or for restructuring under paragraph (8), the local 
        educational agency shall provide the school with an opportunity 
        to review the school-level data, including academic assessment 
        data, on which the proposed identification is based.
            ``(B) Evidence.--If the principal of a school proposed for 
        identification under paragraph (1), (5)(A), (7), or (8) 
        believes, or a majority of the parents of the students enrolled 
        in such school believe, 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) Final determination.--Not later than 30 days after a 
        local educational agency provides the school with the 
        opportunity to review such school-level data, the local 
        educational agency shall make public a final determination on 
        the status of the school with respect to the identification.
        ``(3) School plan.--
            ``(A) Revised plan.--After the resolution of a review under 
        paragraph (2), 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, and outside experts, for approval by such 
        local educational agency. The school plan shall cover a 2-year 
        period and--
                ``(i) incorporate strategies based on scientifically 
            based research that will 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 
            includes each of the components described in part F;
                ``(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)(C)(v) and enrolled in the 
            school will meet the State's proficient level of 
            achievement on the State academic assessment described in 
            section 1111(b)(3) not later than 12 years after the end of 
            the 2001-2002 school year;
                ``(iii) provide an assurance that the school will spend 
            not less than 10 percent of the funds made available to the 
            school under section 1113 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 achievement 
                problem that caused the school to be identified for 
                school improvement;
                    ``(II) meets the requirements for professional 
                development activities under section 1119; and
                    ``(III) is provided in a manner that affords 
                increased opportunity for participating in that 
                professional development;

                ``(iv) specify how the funds described in clause (iii) 
            will be used to remove the school from school improvement 
            status;
                ``(v) establish specific annual, measurable objectives 
            for continuous and substantial progress by each group of 
            students specified in section 1111(b)(2)(C)(v) and enrolled 
            in the school that will ensure that all such groups of 
            students will, in accordance with adequate yearly progress 
            as defined in section 1111(b)(2), meet the State's 
            proficient level of achievement on the State academic 
            assessment described in section 1111(b)(3) not later than 
            12 years after the end of the 2001-2002 school year;
                ``(vi) describe how the school will provide written 
            notice about the identification to parents of each student 
            enrolled in such school, in a format and, to the extent 
            practicable, in a language that 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 the local educational agency's 
            responsibilities under section 1120A;
                ``(viii) include strategies to promote effective 
            parental involvement in the school;
                ``(ix) incorporate, as appropriate, activities before 
            school, after school, during the summer, and during any 
            extension of the school year; and
                ``(x) incorporate a teacher mentoring program.
            ``(B) Conditional approval.--The local educational agency 
        may condition approval of a school plan under this paragraph 
        on--
                ``(i) inclusion of one or more of the corrective 
            actions specified in paragraph (7)(C)(iv); or
                ``(ii) feedback on the school improvement plan from 
            parents and community leaders.
            ``(C) Plan implementation.--Except as provided in 
        subparagraph (D), a school shall implement the school plan 
        (including a revised plan) expeditiously, but not later than 
        the beginning of the next full school year following the 
        identification under paragraph (1).
            ``(D) Plan approved during school year.--Notwithstanding 
        subparagraph (C), if a plan is not approved prior to the 
        beginning of a school year, such plan shall be implemented 
        immediately upon approval.
            ``(E) Local educational agency approval.--The local 
        educational agency, within 45 days of receiving a school plan, 
        shall--
                ``(i) establish a peer review process to assist with 
            review of the school 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.
        ``(4) Technical assistance.--
            ``(A) In general.--For each school identified for school 
        improvement under paragraph (1), the local educational agency 
        serving the school shall ensure the provision of technical 
        assistance as the school develops and implements the school 
        plan under paragraph (3) throughout the plan's duration.
            ``(B) Specific assistance.--Such technical assistance--
                ``(i) shall include assistance in analyzing data from 
            the assessments required under section 1111(b)(3), and 
            other examples of student work, to identify and address 
            problems in instruction, and 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 to identify and address 
            solutions to such problems;
                ``(ii) shall include assistance in identifying and 
            implementing professional development, instructional 
            strategies, and methods of instruction that are based on 
            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's resources 
            are more effectively allocated to the activities most 
            likely to increase student academic achievement 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 (that is 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 academic 
                achievement.

            ``(C) Scientifically based research.--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 set out in the 
    State's plan under section 1111(b)(2), by the end of the first full 
    school year after identification under paragraph (1), the local 
    educational agency serving such school--
            ``(A) shall continue to provide all students enrolled in 
        the school with the option to transfer to another public school 
        served by the local educational agency in accordance with 
        subparagraphs (E) and (F);
            ``(B) shall make supplemental educational services 
        available consistent with subsection (e)(1); and
            ``(C) shall continue to provide technical assistance.
        ``(6) Notice to parents.--A local educational agency shall 
    promptly provide to a parent or parents (in an understandable and 
    uniform format and, to the extent practicable, in a language the 
    parents can understand) of each student enrolled in an elementary 
    school or a secondary school identified for school improvement 
    under paragraph (1), for corrective action under paragraph (7), or 
    for restructuring under paragraph (8)--
            ``(A) an explanation of what the identification means, and 
        how the school compares in terms of academic achievement to 
        other elementary schools or secondary schools served by the 
        local educational agency and the State educational agency 
        involved;
            ``(B) the reasons for the identification;
            ``(C) an explanation of what the school identified for 
        school improvement is doing to address the problem of low 
        achievement;
            ``(D) an explanation of what the local educational agency 
        or State educational agency is doing to help the school address 
        the achievement problem;
            ``(E) an explanation of how the parents can become involved 
        in addressing the academic issues that caused the school to be 
        identified for school improvement; and
            ``(F) an explanation of the parents' option to transfer 
        their child to another public school under paragraphs (1)(E), 
        (5)(A), (7)(C)(i), (8)(A)(i), and subsection (c)(10)(C)(vii) 
        (with transportation provided by the agency when required by 
        paragraph (9)) or to obtain supplemental educational services 
        for the child, in accordance with subsection (e).
        ``(7) Corrective action.--
            ``(A) In general.--In this subsection, the term `corrective 
        action' means action, consistent with State 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 problems in the school; and

                ``(ii) is designed to increase substantially the 
            likelihood that each group of students described in 
            1111(b)(2)(C) enrolled in the school identified for 
            corrective action will meet or exceed the State's 
            proficient levels of achievement on the State academic 
            assessments described in section 1111(b)(3).
            ``(B) System.--In order to help students served under this 
        part meet challenging State student academic achievement 
        standards, each local educational agency shall implement a 
        system of corrective action in accordance with subparagraphs 
        (C) through (E).
            ``(C) Role of local educational agency.--In the case of any 
        school served by a local educational agency under this part 
        that fails to make adequate yearly progress, as defined by the 
        State under section 1111(b)(2), by the end of the second full 
        school year after the identification under paragraph (1), the 
        local educational agency shall--
                ``(i) continue to provide all students enrolled in the 
            school with the option to transfer to another public school 
            served by the local educational agency, in accordance with 
            paragraph (1)(E) and (F);
                ``(ii) continue to provide technical assistance 
            consistent with paragraph (4) while instituting any 
            corrective action under clause (iv);
                ``(iii) continue to make supplemental educational 
            services available, in accordance with subsection (e), to 
            children who remain in the school; and
                ``(iv) identify the school for corrective action and 
            take at least one of the following corrective actions:

                    ``(I) Replace the school staff who are relevant to 
                the failure to make adequate yearly progress.
                    ``(II) Institute and fully implement a new 
                curriculum, including providing appropriate 
                professional development for all relevant staff, that 
                is based on scientifically based research and offers 
                substantial promise of improving educational 
                achievement for low-achieving students and enabling the 
                school to make adequate yearly progress.
                    ``(III) Significantly decrease management authority 
                at the school level.
                    ``(IV) Appoint an outside expert to advise the 
                school on its progress toward making adequate yearly 
                progress, based on its school plan under paragraph (3).
                    ``(V) Extend the school year or school day for the 
                school.
                    ``(VI) Restructure the internal organizational 
                structure of the school.

            ``(D) Delay.--Notwithstanding any other provision of this 
        paragraph, the local educational agency may delay, for a period 
        not to exceed 1 year, implementation of the requirements under 
        paragraph (5), corrective action under this paragraph, or 
        restructuring under paragraph (8) if the school makes adequate 
        yearly progress for 1 year or if its failure to make adequate 
        yearly progress is 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. No such period shall be taken 
        into account in determining the number of consecutive years of 
        failure to make adequate yearly progress.
            ``(E) Publication and dissemination.--The local educational 
        agency shall publish and disseminate information regarding any 
        corrective action the local educational agency takes under this 
        paragraph at a school--
                ``(i) to the public and to the parents of each student 
            enrolled in the school subject to corrective action;
                ``(ii) in an understandable and uniform format and, to 
            the extent practicable, provided in a language that the 
            parents can understand; and
                ``(iii) through such means as the Internet, the media, 
            and public agencies.
        ``(8) Restructuring.--
            ``(A) Failure to make adequate yearly progress.--If, after 
        1 full school 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) continue to provide all students enrolled in the 
            school with the option to transfer to another public school 
            served by the local educational agency, in accordance with 
            paragraph (1)(E) and (F);
                ``(ii) continue to make supplemental educational 
            services available, in accordance with subsection (e), to 
            children who remain in the school; and
                ``(iii) prepare a plan and make necessary arrangements 
            to carry out subparagraph (B).
            ``(B) Alternative governance.--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 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 (which 
            may include the principal) who are relevant to the failure 
            to make adequate yearly progress.
                ``(iii) Entering into a contract with an entity, such 
            as a private management company, with a demonstrated record 
            of effectiveness, to operate the public school.
                ``(iv) Turning the operation of the school over to the 
            State educational agency, if permitted under State law and 
            agreed to by the State.
                ``(v) Any other major restructuring of the school's 
            governance arrangement that makes fundamental reforms, such 
            as significant changes in the school's staffing and 
            governance, to improve student academic achievement in the 
            school and that has substantial promise of enabling the 
            school to make adequate yearly progress as defined in the 
            State plan under section 1111(b)(2). In the case of a rural 
            local educational agency with a total of less than 600 
            students in average daily attendance at the schools that 
            are served by the agency and all of whose schools have a 
            School Locale Code of 7 or 8, as determined by the 
            Secretary, the Secretary shall, at such agency's request, 
            provide technical assistance to such agency for the purpose 
            of implementing this clause.
            ``(C) Prompt notice.--The local educational agency shall--
                ``(i) provide prompt notice to teachers and parents 
            whenever subparagraph (A) or (B) applies; and
                ``(ii) provide the teachers and parents with an 
            adequate opportunity to--

                    ``(I) comment before taking any action under those 
                subparagraphs; and
                    ``(II) participate in developing any plan under 
                subparagraph (A)(iii).

        ``(9) Transportation.--In any case described in paragraph 
    (1)(E) for schools described in paragraphs (1)(A), (5), (7)(C)(i), 
    and (8)(A), and subsection (c)(10)(C)(vii), the local educational 
    agency shall provide, or shall pay for the provision of, 
    transportation for the student to the public school the student 
    attends.
        ``(10) Funds for transportation and supplemental educational 
    services.--
            ``(A) In general.--Unless a lesser amount is needed to 
        comply with paragraph (9) and to satisfy all requests for 
        supplemental educational services under subsection (e), a local 
        educational agency shall spend an amount equal to 20 percent of 
        its allocation under subpart 2, from which the agency shall 
        spend--
                ``(i) an amount equal to 5 percent of its allocation 
            under subpart 2 to provide, or pay for, transportation 
            under paragraph (9);
                ``(ii) an amount equal to 5 percent of its allocation 
            under subpart 2 to provide supplemental educational 
            services under subsection (e); and
                ``(iii) an amount equal to the remaining 10 percent of 
            its allocation under subpart 2 for transportation under 
            paragraph (9), supplemental educational services under 
            subsection (e), or both, as the agency determines.
            ``(B) Total amount.--The total amount described in 
        subparagraph (A)(ii) is the maximum amount the local 
        educational agency shall be required to spend under this part 
        on supplemental educational services described in subsection 
        (e).
            ``(C) Insufficient funds.--If the amount of funds described 
        in subparagraph (A)(ii) or (iii) and available to provide 
        services under this subsection is insufficient to provide 
        supplemental educational services to each child whose parents 
        request the services, the local educational agency shall give 
        priority to providing the services to the lowest-achieving 
        children.
            ``(D) 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 
        section 1113(c) to a school described in paragraph (7)(C) or 
        (8)(A) of subsection (b).
        ``(11) Cooperative agreement.--In any case described in 
    paragraph (1)(E), (5)(A), (7)(C)(i), or (8)(A)(i), or subsection 
    (c)(10)(C)(vii) if all public schools served by the local 
    educational agency to which a child may transfer are identified for 
    school improvement, corrective action or restructuring, the agency 
    shall, to the extent practicable, establish a cooperative agreement 
    with other local educational agencies in the area for a transfer.
        ``(12) Duration.--If any school identified for school 
    improvement, corrective action, or restructuring makes adequate 
    yearly progress for two consecutive school years, the local 
    educational agency shall no longer subject the school to the 
    requirements of school improvement, corrective action, or 
    restructuring or identify the school for school improvement for the 
    succeeding school year.
        ``(13) Special rule.--A local educational agency shall permit a 
    child who transferred to another school under this subsection to 
    remain in that school until the child has completed the highest 
    grade in that school. The obligation of the local educational 
    agency to provide, or to provide for, transportation for the child 
    ends at the end of a school year if the local educational agency 
    determines that the school from which the child transferred is no 
    longer identified for school improvement or subject to corrective 
    action or restructuring.
        ``(14) State educational agency responsibilities.--The State 
    educational agency shall--
            ``(A) make technical assistance under section 1117 
        available to schools identified for school improvement, 
        corrective action, or restructuring under this subsection 
        consistent with section 1117(a)(2);
            ``(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 to be 
        appropriate and in compliance with State law;
            ``(C) ensure that academic assessment results under this 
        part are provided to schools before any identification of a 
        school may take place under this subsection; and
            ``(D) for local educational agencies or schools identified 
        for improvement under this subsection, notify the Secretary of 
        major factors that were brought to the attention of the State 
        educational agency under section 1111(b)(9) that have 
        significantly affected student academic achievement.
    ``(c) State Review and Local Educational Agency Improvement.--
        ``(1) In general.--A State shall--
            ``(A) annually review the progress of each local 
        educational agency receiving funds under this part to determine 
        whether schools receiving assistance under this part are making 
        adequate yearly progress as defined in section 1111(b)(2) 
        toward meeting the State's student academic achievement 
        standards and to determine if each local educational agency is 
        carrying out its responsibilities under this section and 
        sections 1117, 1118, and 1119; and
            ``(B) publicize and disseminate to local educational 
        agencies, teachers and other staff, parents, students, and the 
        community the results of the State review, including 
        statistically sound disaggregated results, as required by 
        section 1111(b)(2).
        ``(2) Rewards.--In the case of a local educational agency that, 
    for 2 consecutive years, has exceeded adequate yearly progress as 
    defined in the State plan under section 1111(b)(2), the State may 
    make rewards of the kinds described under section 1117 to the 
    agency.
        ``(3) Identification of local educational agency for 
    improvement.--A State shall identify for improvement any local 
    educational agency that, for 2 consecutive years, including the 
    period immediately prior to the date of enactment of the No Child 
    Left Behind Act of 2001, failed to make adequate yearly progress as 
    defined in the State's plan under section 1111(b)(2).
        ``(4) Targeted assistance schools.--When reviewing targeted 
    assistance schools served by a local educational agency, a State 
    educational agency may choose to review the progress of only the 
    students in such schools who are served, or are eligible for 
    services, under this part.
        ``(5) Opportunity to review and present evidence.--
            ``(A) Review.--Before identifying a local educational 
        agency for improvement under paragraph (3) or corrective action 
        under paragraph (10), a State educational agency shall provide 
        the local educational agency with an opportunity to review the 
        data, including academic assessment data, on which the proposed 
        identification is based.
            ``(B) Evidence.--If the local educational agency believes 
        that the proposed identification is in error for statistical or 
        other substantive reasons, the agency may provide supporting 
        evidence to the State educational agency, which shall consider 
        the evidence before making a final determination not later than 
        30 days after the State educational agency provides the local 
        educational agency with the opportunity to review such data 
        under subparagraph (A).
        ``(6) Notification to parents.--The State educational agency 
    shall promptly provide to the parents (in a format and, to the 
    extent practicable, in a language the parents can understand) of 
    each student enrolled in a school served by a local educational 
    agency identified for improvement, the results of the review under 
    paragraph (1) and, if the agency is identified for improvement, the 
    reasons for that identification and how parents can participate in 
    upgrading the quality of the local educational agency.
        ``(7) Local educational agency revisions.--
            ``(A) Plan.--Each local educational agency identified under 
        paragraph (3) shall, not later than 3 months after being so 
        identified, develop or revise a local educational agency plan, 
        in consultation with parents, school staff, and others. Such 
        plan shall--
                ``(i) incorporate scientifically based research 
            strategies that strengthen the core academic program in 
            schools served by the local educational agency;
                ``(ii) identify actions that have the greatest 
            likelihood of improving the achievement of participating 
            children in meeting the State's student academic 
            achievement standards;
                ``(iii) address the professional development needs of 
            the instructional staff serving the agency by committing to 
            spend not less than 10 percent of the funds received by the 
            local educational agency under subpart 2 for each fiscal 
            year in which the agency is identified for improvement for 
            professional development (including funds reserved for 
            professional development under subsection (b)(3)(A)(iii)), 
            but excluding funds reserved for professional development 
            under section 1119;
                ``(iv) include specific measurable achievement goals 
            and targets for each of the groups of students identified 
            in the disaggregated data pursuant to section 
            1111(b)(2)(C)(v), consistent with adequate yearly progress 
            as defined under section 1111(b)(2);
                ``(v) address the fundamental teaching and learning 
            needs in the schools of that agency, and the specific 
            academic problems of low-achieving students, including a 
            determination of why the local educational agency's prior 
            plan failed to bring about increased student academic 
            achievement;
                ``(vi) incorporate, as appropriate, activities before 
            school, after school, during the summer, and during an 
            extension of the school year;
                ``(vii) specify the responsibilities of the State 
            educational agency and the local educational agency under 
            the plan, including specifying the technical assistance to 
            be provided by the State educational agency under paragraph 
            (9) and the local educational agency's responsibilities 
            under section 1120A; and
                ``(viii) include strategies to promote effective 
            parental involvement in the school.
            ``(B) Implementation.--The local educational agency shall 
        implement the plan (including a revised plan) expeditiously, 
        but not later than the beginning of the next school year after 
        the school year in which the agency was identified for 
        improvement.
        ``(9) State educational agency responsibility.--
            ``(A) Technical or other assistance.--For each local 
        educational agency identified under paragraph (3), the State 
        educational agency shall provide technical or other assistance 
        if requested, as authorized under section 1117, to better 
        enable the local educational agency to--
                ``(i) develop and implement the local educational 
            agency's plan; and
                ``(ii) work with schools needing improvement.
            ``(B) Methods and strategies.--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 based on 
        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.
        ``(10) Corrective action.--In order to help students served 
    under this part meet challenging State student academic achievement 
    standards, each State shall implement a system of corrective action 
    in accordance with the following:
            ``(A) Definition.--As used in this paragraph, the term 
        `corrective action' means action, consistent with State law, 
        that--
                ``(i) substantially and directly responds to the 
            consistent academic failure that caused the State to take 
            such action and to any underlying staffing, curricular, or 
            other problems in the agency; and
                ``(ii) is designed to meet the goal of having all 
            students served under this part achieve at the proficient 
            and advanced student academic achievement levels.
            ``(B) General requirements.--After providing technical 
        assistance under paragraph (9) and subject to subparagraph (E), 
        the State--
                ``(i) may take corrective action at any time with 
            respect to a local educational agency that has been 
            identified under paragraph (3);
                ``(ii) shall take corrective action with respect to any 
            local educational agency that fails to make adequate yearly 
            progress, as defined by the State, by the end of the second 
            full school year after the identification of the agency 
            under paragraph (3); and
                ``(iii) shall continue to provide technical assistance 
            while instituting any corrective action under clause (i) or 
            (ii).
            ``(C) Certain corrective actions required.--In the case of 
        a local educational agency identified for corrective action, 
        the State educational agency shall take at least one of the 
        following corrective actions:
                ``(i) Deferring programmatic funds or reducing 
            administrative funds.
                ``(ii) Instituting and fully implementing a new 
            curriculum that is based on State and local academic 
            content and achievement standards, including providing 
            appropriate professional development based on 
            scientifically based research for all relevant staff, that 
            offers substantial promise of improving educational 
            achievement for low-achieving students.
                ``(iii) Replacing the local educational agency 
            personnel who are relevant to the failure to make adequate 
            yearly progress.
                ``(iv) Removing particular schools from the 
            jurisdiction of the local educational agency and 
            establishing alternative arrangements for public governance 
            and supervision of such schools.
                ``(v) Appointing, through the State educational agency, 
            a receiver or trustee to administer the affairs of the 
            local educational agency in place of the superintendent and 
            school board.
                ``(vi) Abolishing or restructuring the local 
            educational agency.
                ``(vii) Authorizing students to transfer from a school 
            operated by the local educational agency to a higher-
            performing public school operated by another local 
            educational agency in accordance with subsections (b)(1)(E) 
            and (F), and providing to such students transportation (or 
            the costs of transportation) to such schools consistent 
            with subsection (b)(9), in conjunction with carrying out 
            not less than one additional action described under this 
            subparagraph.
            ``(D) 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.
            ``(E) Notice to parents.--The State educational agency 
        shall publish, and disseminate to parents and the public, 
        information on any corrective action the State educational 
        agency takes under this paragraph through such means as the 
        Internet, the media, and public agencies.
            ``(F) Delay.--Notwithstanding subparagraph (B)(ii), a State 
        educational agency may delay, for a period not to exceed 1 
        year, implementation of corrective action under this paragraph 
        if the local educational agency makes adequate yearly progress 
        for 1 year or its failure to make adequate yearly progress is 
        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. No such 
        period shall be taken into account in determining the number of 
        consecutive years of failure to make adequate yearly progress.
        ``(11) Special rule.--If a local educational agency makes 
    adequate yearly progress for two consecutive school years beginning 
    after the date of identification of the agency under paragraph (3), 
    the State educational agency need no longer identify the local 
    educational agency for improvement or subject the local educational 
    agency to corrective action for the succeeding school year.
    ``(d) 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.
    ``(e) Supplemental Educational Services.--
        ``(1) Supplemental educational services.--In the case of any 
    school described in paragraph (5), (7), or (8) of subsection (b), 
    the local educational agency serving such school shall, subject to 
    this subsection, arrange for the provision of supplemental 
    educational services to eligible children in the school from a 
    provider with a demonstrated record of effectiveness, that is 
    selected by the parents and approved for that purpose by the State 
    educational agency in accordance with reasonable criteria, 
    consistent with paragraph (5), that the State educational agency 
    shall adopt.
        ``(2) Local educational agency responsibilities.--Each local 
    educational agency subject to this subsection shall--
            ``(A) provide, at a minimum, annual notice to parents (in 
        an understandable and uniform format and, to the extent 
        practicable, in a language the parents can understand) of--
                ``(i) the availability of services under this 
            subsection;
                ``(ii) the identity of approved providers of those 
            services that are within the local educational agency or 
            whose services are reasonably available in neighboring 
            local educational agencies; and
                ``(iii) a brief description of the services, 
            qualifications, and demonstrated effectiveness of each such 
            provider;
            ``(B) if requested, assist parents in choosing a provider 
        from the list of approved providers maintained by the State;
            ``(C) apply fair and equitable procedures for serving 
        students if the number of spaces at approved providers is not 
        sufficient to serve all students; and
            ``(D) not disclose to the public the identity of any 
        student who is eligible for, or receiving, supplemental 
        educational services under this subsection without the written 
        permission of the parents of the student.
        ``(3) Agreement.--In the case of the selection of an approved 
    provider by a parent, the local educational agency shall enter into 
    an agreement with such provider. Such agreement shall--
            ``(A) require the local educational agency to develop, in 
        consultation with parents (and the provider chosen by the 
        parents), a statement of specific achievement goals for the 
        student, how the student's progress will be measured, and a 
        timetable for improving achievement that, in the case of a 
        student with disabilities, is consistent with the student's 
        individualized education program under section 614(d) of the 
        Individuals with Disabilities Education Act;
            ``(B) describe how the student's parents and the student's 
        teacher or teachers will be regularly informed of the student's 
        progress;
            ``(C) provide for the termination of such agreement if the 
        provider is unable to meet such goals and timetables;
            ``(D) contain provisions with respect to the making of 
        payments to the provider by the local educational agency; and
            ``(E) prohibit the provider from disclosing to the public 
        the identity of any student eligible for, or receiving, 
        supplemental educational services under this subsection without 
        the written permission of the parents of such student.
        ``(4) State educational agency responsibilities.--A State 
    educational agency shall--
            ``(A) in consultation with local educational agencies, 
        parents, teachers, and other interested members of the public, 
        promote maximum participation by providers to ensure, to the 
        extent practicable, that parents have as many choices as 
        possible;
            ``(B) develop and apply objective criteria, consistent with 
        paragraph (5), to potential providers that are based on a 
        demonstrated record of effectiveness in increasing the academic 
        proficiency of students in subjects relevant to meeting the 
        State academic content and student achievement standards 
        adopted under section 1111(b)(1);
            ``(C) maintain an updated list of approved providers across 
        the State, by school district, from which parents may select;
            ``(D) develop, implement, and publicly report on standards 
        and techniques for monitoring the quality and effectiveness of 
        the services offered by approved providers under this 
        subsection, and for withdrawing approval from providers that 
        fail, for 2 consecutive years, to contribute to increasing the 
        academic proficiency of students served under this subsection 
        as described in subparagraph (B); and
            ``(E) provide annual notice to potential providers of 
        supplemental educational services of the opportunity to provide 
        services under this subsection and of the applicable procedures 
        for obtaining approval from the State educational agency to be 
        an approved provider of those services.
        ``(5) Criteria for providers.--In order for a provider to be 
    included on the State list under paragraph (4)(C), a provider shall 
    agree to carry out the following:
            ``(A) Provide parents of children receiving supplemental 
        educational services under this subsection and the appropriate 
        local educational agency with information on the progress of 
        the children in increasing achievement, in a format and, to the 
        extent practicable, a language that such parents can 
        understand.
            ``(B) Ensure that instruction provided and content used by 
        the provider are consistent with the instruction provided and 
        content used by the local educational agency and State, and are 
        aligned with State student academic achievement standards.
            ``(C) Meet all applicable Federal, State, and local health, 
        safety, and civil rights laws.
            ``(D) Ensure that all instruction and content under this 
        subsection are secular, neutral, and nonideological.
        ``(6) Amounts for supplemental educational services.--The 
    amount that a local educational agency shall make available for 
    supplemental educational services for each child receiving those 
    services under this subsection shall be the lesser of--
            ``(A) the amount of the agency's allocation under subpart 
        2, divided by the number of children from families below the 
        poverty level counted under section 1124(c)(1)(A); or
            ``(B) the actual costs of the supplemental educational 
        services received by the child.
        ``(7) Funds provided by state educational agency.--Each State 
    educational agency may use funds that the agency reserves under 
    this part, and part A of title V, to assist local educational 
    agencies that do not have sufficient funds to provide services 
    under this subsection for all eligible students requesting such 
    services.
        ``(8) Duration.--The local educational agency shall continue to 
    provide supplemental educational services to a child receiving such 
    services under this subsection until the end of the school year in 
    which such services were first received.
        ``(9) Prohibition.--Nothing contained in this subsection shall 
    permit the making of any payment for religious worship or 
    instruction.
        ``(10) Waiver.--
            ``(A) Requirement.--At the request of a local educational 
        agency, a State educational agency may waive, in whole or in 
        part, the requirement of this subsection to provide 
        supplemental educational services if the State educational 
        agency determines that--
                ``(i) none of the providers of those services on the 
            list approved by the State educational agency under 
            paragraph (4)(C) makes those services available in the area 
            served by the local educational agency or within a 
            reasonable distance of that area; and
                ``(ii) the local educational agency provides evidence 
            that it is not able to provide those services.
            ``(B) Notification.--The State educational agency shall 
        notify the local educational agency, within 30 days of 
        receiving the local educational agency's request for a waiver 
        under subparagraph (A), whether the request is approved or 
        disapproved and, if disapproved, the reasons for the 
        disapproval, in writing.
        ``(11) Special rule.--If State law prohibits a State 
    educational agency from carrying out one or more of its 
    responsibilities under paragraph (4) with respect to those who 
    provide, or seek approval to provide, supplemental educational 
    services, each local educational agency in the State shall carry 
    out those responsibilities with respect to its students who are 
    eligible for those services.
        ``(12) Definitions.--In this subsection--
            ``(A) the term `eligible child' means a child from a low-
        income family, as determined by the local educational agency 
        for purposes of allocating funds to schools under section 
        1113(c)(1);
            ``(B) the term `provider' means a non-profit entity, a for-
        profit entity, or a local educational agency that--
                ``(i) has a demonstrated record of effectiveness in 
            increasing student academic achievement;
                ``(ii) is capable of providing supplemental educational 
            services that are consistent with the instructional program 
            of the local educational agency and the academic standards 
            described under section 1111; and
                ``(iii) is financially sound; and
            ``(C) the term `supplemental educational services' means 
        tutoring and other supplemental academic enrichment services 
        that are--
                ``(i) in addition to instruction provided during the 
            school day; and
                ``(ii) are of high quality, research-based, and 
            specifically designed to increase the academic achievement 
            of eligible children on the academic assessments required 
            under section 1111 and attain proficiency in meeting the 
            State's academic achievement standards.
    ``(f) Schools and LEAs Previously Identified for Improvement or 
Corrective Action.--
        ``(1) Schools.--
            ``(A) School improvement.--
                ``(i) Schools in school-improvement status before date 
            of enactment.--Any school that was in the first year of 
            school improvement status under this section on the day 
            preceding the date of enactment of the No Child Left Behind 
            Act of 2001 (as this section was in effect on such day) 
            shall be treated by the local educational agency as a 
            school that is in the first year of school improvement 
            status under paragraph (1).
                ``(ii) Schools in school-improvement status for 2 or 
            more years before date of enactment.--Any school that was 
            in school improvement status under this section for two or 
            more consecutive school years preceding the date of 
            enactment of the No Child Left Behind Act of 2001 (as this 
            section was in effect on such day) shall be treated by the 
            local educational agency as a school described in 
            subsection (b)(5).
            ``(B) Corrective action.--Any school that was in corrective 
        action status under this section on the day preceding the date 
        of enactment of the No Child Left Behind Act of 2001 (as this 
        section was in effect on such day) shall be treated by the 
        local educational agency as a school described in paragraph 
        (7).
        ``(2) LEAs.--
            ``(A) LEA improvement.--A State shall identify for 
        improvement under subsection (c)(3) any local educational 
        agency that was in improvement status under this section as 
        this section was in effect on the day preceding the date of 
        enactment of the No Child Left Behind Act of 2001.
            ``(B) Corrective action.--A State shall identify for 
        corrective action under subsection (c)(10) any local 
        educational agency that was in corrective action status under 
        this section as this section was in effect on the day preceding 
        the date of enactment of the No Child Left Behind Act of 2001.
            ``(C) Special rule.--For the schools and other local 
        educational agencies described under paragraphs (1) and (2), as 
        required, the State shall ensure that public school choice in 
        accordance with subparagraphs (b)(1)(E) and (F) and 
        supplemental education services in accordance with subsection 
        (e) are provided not later than the first day of the 2002-2003 
        school year.
            ``(D) Transition.--With respect to a determination that a 
        local educational agency has for 2 consecutive years failed to 
        make adequate yearly progress as defined in the State plan 
        under section 1111(b)(2), such determination shall include in 
        such 2-year period any continuous period of time immediately 
        preceding the date of enactment of the No Child Left Behind Act 
        of 2001 during which the agency has failed to make such 
        progress.
    ``(g) Schools Funded by the Bureau of Indian Affairs.--
        ``(1) Adequate yearly progress for bureau funded schools.--
            ``(A) Development of definition.--
                ``(i) Definition.--The Secretary of the Interior, in 
            consultation with the Secretary if the Secretary of 
            Interior requests the consultation, using the process set 
            out in section 1138(b) of the Education Amendments of 1978, 
            shall define adequate yearly progress, consistent with 
            section 1111(b), for the schools funded by the Bureau of 
            Indian Affairs on a regional or tribal basis, as 
            appropriate, taking into account the unique circumstances 
            and needs of such schools and the students served by such 
            schools.
                ``(ii) Use of definition.--The Secretary of the 
            Interior, consistent with clause (i), may use the 
            definition of adequate yearly progress that the State in 
            which the school that is funded by the Bureau is located 
            uses consistent with section 1111(b), or in the case of 
            schools that are located in more than one State, the 
            Secretary of the Interior may use whichever State 
            definition of adequate yearly progress that best meets the 
            unique circumstances and needs of such school or schools 
            and the students the schools serve.
            ``(B) Waiver.--The tribal governing body or school board of 
        a school funded by the Bureau of Indian Affairs may waive, in 
        part or in whole, the definition of adequate yearly progress 
        established pursuant to paragraph (A) where such definition is 
        determined by such body or school board to be inappropriate. If 
        such definition is waived, the tribal governing body or school 
        board shall, within 60 days thereafter, submit to the Secretary 
        of Interior a proposal for an alternative definition of 
        adequate yearly progress, consistent with section 1111(b), that 
        takes into account the unique circumstances and needs of such 
        school or schools and the students served. The Secretary of the 
        Interior, in consultation with the Secretary if the Secretary 
        of Interior requests the consultation, shall approve such 
        alternative definition unless the Secretary determines that the 
        definition does not meet the requirements of section 1111(b), 
        taking into account the unique circumstances and needs of such 
        school or schools and the students served.
            ``(C) Technical assistance.--The Secretary of Interior 
        shall, in consultation with the Secretary if the Secretary of 
        Interior requests the consultation, either directly or through 
        a contract, provide technical assistance, upon request, to a 
        tribal governing body or school board of a school funded by the 
        Bureau of Indian Affairs that seeks to develop an alternative 
        definition of adequate yearly progress.
        ``(2) Accountability for bia schools.--For the purposes of this 
    section, schools funded by the Bureau of Indian Affairs shall be 
    considered schools subject to subsection (b), as specifically 
    provided for in this subsection, except that such schools shall not 
    be subject to subsection (c), or the requirements to provide public 
    school choice and supplemental educational services under 
    subsections (b) and (e).
        ``(3) School improvement for bureau schools.--
            ``(A) Contract and grant schools.--For a school funded by 
        the Bureau of Indian Affairs which is operated under a contract 
        issued by the Secretary of the Interior pursuant to the Indian 
        Self-Determination Act (25 U.S.C. 450 et seq.) or under a grant 
        issued by the Secretary of the Interior pursuant to the 
        Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501 et 
        seq.), the school board of such school shall be responsible for 
        meeting the requirements of subsection (b) relating to 
        development and implementation of any school improvement plan 
        as described in subsections (b)(1) through (b)(3), and 
        subsection (b)(5), other than subsection (b)(1)(E). The Bureau 
        of Indian Affairs shall be responsible for meeting the 
        requirements of subsection (b)(4) relating to technical 
        assistance.
            ``(B) Bureau operated schools.--For schools operated by the 
        Bureau of Indian Affairs, the Bureau shall be responsible for 
        meeting the requirements of subsection (b) relating to 
        development and implementation of any school improvement plan 
        as described in subsections (b)(1) through (b)(5), other than 
        subsection (b)(1)(E).
        ``(4) Corrective action and restructuring for bureau-funded 
    schools.--
            ``(A) Contract and grant schools.--For a school funded by 
        the Bureau of Indian Affairs which is operated under a contract 
        issued by the Secretary of the Interior pursuant to the Indian 
        Self-Determination Act (25 U.S.C. 450 et seq.) or under a grant 
        issued by the Secretary of the Interior pursuant to the 
        Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501 et 
        seq.), the school board of such school shall be responsible for 
        meeting the requirements of subsection (b) relating to 
        corrective action and restructuring as described in subsection 
        (b)(7) and (b)(8). Any action taken by such school board under 
        subsection (b)(7) or (b)(8) shall take into account the unique 
        circumstances and structure of the Bureau of Indian Affairs-
        funded school system and the laws governing that system.
            ``(B) Bureau operated schools.--For schools operated by the 
        Bureau of Indian Affairs, the Bureau shall be responsible for 
        meeting the requirements of subsection (b) relating to 
        corrective action and restructuring as described in subsection 
        (b)(7) and (b)(8). Any action taken by the Bureau under 
        subsection (b)(7) or (b)(8) shall take into account the unique 
        circumstances and structure of the Bureau of Indian Affairs-
        funded school system and the laws governing that system.
        ``(5) Annual report.--On an annual basis, the Secretary of the 
    Interior shall report to the Secretary of Education and to the 
    appropriate committees of Congress regarding any schools funded by 
    the Bureau of Indian Affairs which have been identified for school 
    improvement. Such report shall include--
            ``(A) the identity of each school;
            ``(B) a statement from each affected school board regarding 
        the factors that lead to such identification; and
            ``(C) an analysis by the Secretary of the Interior, in 
        consultation with the Secretary if the Secretary of Interior 
        requests the consultation, as to whether sufficient resources 
        were available to enable such school to achieve adequate yearly 
        progress.
    ``(h) Other Agencies.--After receiving the notice described in 
subsection (b)(14)(D), the Secretary may notify, to the extent feasible 
and necessary as determined by the Secretary, other relevant Federal 
agencies regarding the major factors that were determined by the State 
educational agency to have significantly affected student academic 
achievement.

``SEC. 1117. SCHOOL SUPPORT AND RECOGNITION.

    ``(a) System for Support.--
        ``(1) In general.--Each State shall establish a statewide 
    system of intensive and sustained support and improvement for local 
    educational agencies and schools receiving funds under this part, 
    in order to increase the opportunity for all students served by 
    those agencies and schools to meet the State's academic content 
    standards and student academic achievement standards.
        ``(2) Priorities.--In carrying out this subsection, a State 
    shall--
            ``(A) first, provide support and assistance to local 
        educational agencies with schools subject to corrective action 
        under section 1116 and assist those schools, in accordance with 
        section 1116(b)(11), for which a local educational agency has 
        failed to carry out its responsibilities under paragraphs (7) 
        and (8) of section 1116(b);
            ``(B) second, provide support and assistance to other local 
        educational agencies with schools identified as in need of 
        improvement under section 1116(b); and
            ``(C) third, provide support and assistance to other local 
        educational agencies and schools participating under this part 
        that need that support and assistance in order to achieve the 
        purpose of this part.
        ``(3) Regional centers.--Such a statewide system shall, to the 
    extent practicable, work with and receive support and assistance 
    from the comprehensive regional technical assistance centers and 
    the regional educational laboratories under section 941(h) of the 
    Educational Research, Development, Dissemination, and Improvement 
    Act of 1994, or other providers of technical assistance.
        ``(4) Statewide system.--
            ``(A) In order to achieve the purpose described in 
        paragraph (1), the statewide system shall include, at a 
        minimum, the following approaches:
                ``(i) Establishing school support teams in accordance 
            with subparagraph (C) for assignment to, and working in, 
            schools in the State that are described in paragraph (2).
                ``(ii) Providing such support as the State educational 
            agency determines necessary and available in order to 
            ensure the effectiveness of such teams.
                ``(iii) Designating and using distinguished teachers 
            and principals who are chosen from schools served under 
            this part that have been especially successful in improving 
            academic achievement.
                ``(iv) Devising additional approaches to providing the 
            assistance described in paragraph (1), such as providing 
            assistance through institutions of higher education and 
            educational service agencies or other local consortia, and 
            private providers of scientifically based technical 
            assistance.
            ``(B) Priority.--The State educational agency shall give 
        priority to the approach described in clause (i) of 
        subparagraph (A).
        ``(5) School support teams.--
            ``(A) Composition.--Each school support team established 
        under this section shall be composed of persons knowledgeable 
        about scientifically based research and practice on teaching 
        and learning and about successful schoolwide projects, school 
        reform, and improving educational opportunities for low-
        achieving students, including--
                ``(i) highly qualified or distinguished teachers and 
            principals;
                ``(ii) pupil services personnel;
                ``(iii) parents;
                ``(iv) representatives of institutions of higher 
            education;
                ``(v) representatives of regional educational 
            laboratories or comprehensive regional technical assistance 
            centers;
                ``(vi) representatives of outside consultant groups; or
                ``(vii) other individuals as the State educational 
            agency, in consultation with the local educational agency, 
            may determine appropriate.
            ``(B) 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 performance in that 
            school;
                ``(ii) collaborate with parents and 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 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 that is needed by the 
            school or the school support team.
            ``(C) Continuation of assistance.--After one school year, 
        from the beginning of the activities, such school support team, 
        in consultation with the local educational agency, 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) State Recognition.--
        ``(1) Academic achievement awards program.--
            ``(A) In general.--Each State receiving a grant under this 
        part--
                ``(i) shall establish a program for making academic 
            achievement awards to recognize schools that meet the 
            criteria described in subparagraph (B); and
                ``(ii) as appropriate and as funds are available under 
            subsection (c)(2)(A), may financially reward schools served 
            under this part that meet the criteria described in clause 
            (ii).
            ``(B) Criteria.--The criteria referred to in subparagraph 
        (A) are that a school--
                ``(i) significantly closed the achievement gap between 
            the groups of students described in section 1111(b)(2); or
                ``(ii) exceeded their adequate yearly progress, 
            consistent with section 1111(b)(2), for 2 or more 
            consecutive years.
        ``(2) Distinguished schools.--Of those schools meeting the 
    criteria described in paragraph (2), each State shall designate as 
    distinguished schools those schools that have made the greatest 
    gains in closing the achievement gap as described in subparagraph 
    (B)(i) or exceeding adequate yearly progress as described in 
    subparagraph (B)(ii). Such distinguished schools may serve as 
    models for and provide support to other schools, especially schools 
    identified for improvement under section 1116, to assist such 
    schools in meeting the State's academic content standards and 
    student academic achievement standards.
        ``(3) Awards to teachers.--A State program under paragraph (1) 
    may also recognize and provide financial awards to teachers 
    teaching in a school described in such paragraph that consistently 
    makes significant gains in academic achievement in the areas in 
    which the teacher provides instruction, or to teachers or 
    principals designated as distinguished under subsection 
    (a)(4)(A)(iii).
    ``(c) Funding.--
        ``(1) In general.--Each State--
            ``(A) shall use funds reserved under section 1003(a) and 
        may use funds made available under section 1003(g) for the 
        approaches described under subsection (a)(4)(A); and
            ``(B) shall use State administrative funds authorized under 
        section 1004(a) to establish the statewide system of support 
        described under subsection (a).
        ``(2) Reservations of funds by state.--
            ``(A) Awards program.--For the purpose of carrying out 
        subsection (b)(1), each State receiving a grant under this part 
        may reserve, from the amount (if any) by which the funds 
        received by the State under subpart 2 for a fiscal year exceed 
        the amount received by the State under that subpart for the 
        preceding fiscal year, not more than 5 percent of such excess 
        amount.
            ``(B) Teacher awards.--For the purpose of carrying out 
        subsection (b)(3), a State educational agency may reserve such 
        funds as necessary from funds made available under section 
        2113.
        ``(3) Use within 3 years.--Notwithstanding any other provision 
    of law, the amount reserved under subparagraph (A) by a State for 
    each fiscal year shall remain available to the State until expended 
    for a period not exceeding 3 years receipt of funds.
        ``(4) Special allocation rule for schools in high-poverty 
    areas.--
            ``(A) In general.--Each State shall distribute not less 
        than 75 percent of any amount reserved under paragraph (2)(A) 
        for each fiscal year to schools described in subparagraph (B), 
        or to teachers in those schools consistent with subsection 
        (b)(3).
            ``(B) School described.--A school described in subparagraph 
        (A) is a school whose student population is in the highest 
        quartile of schools statewide in terms of the percentage of 
        children from low income families.

``SEC. 1118. PARENTAL INVOLVEMENT.

    ``(a) Local Educational Agency Policy.--
        ``(1) In general.--A local educational agency may receive funds 
    under this part only if such agency implements programs, 
    activities, and procedures for the involvement of parents in 
    programs assisted under this part consistent with this section. 
    Such programs, activities, and procedures shall be planned and 
    implemented with meaningful consultation with parents of 
    participating children.
        ``(2) Written policy.--Each local educational agency that 
    receives funds under this part shall develop jointly with, agree on 
    with, and distribute to, parents of participating children a 
    written parent involvement policy. The policy shall be incorporated 
    into the local educational agency's plan developed under section 
    1112, establish the agency's expectations for parent involvement, 
    and describe how the agency will--
            ``(A) involve parents in the joint development of the plan 
        under section 1112, and the process of school review and 
        improvement under section 1116;
            ``(B) provide the coordination, technical assistance, and 
        other support necessary to assist participating schools in 
        planning and implementing effective parent involvement 
        activities to improve student academic achievement and school 
        performance;
            ``(C) build the schools' and parents' capacity for strong 
        parental involvement as described in subsection (e);
            ``(D) coordinate and integrate parental involvement 
        strategies under this part with parental involvement strategies 
        under other programs, such as the Head Start program, Reading 
        First program, Early Reading First program, Even Start program, 
        Parents as Teachers program, and Home Instruction Program for 
        Preschool Youngsters, and State-run preschool programs;
            ``(E) conduct, with the involvement of parents, an annual 
        evaluation of the content and effectiveness of the parental 
        involvement policy in improving the academic quality of the 
        schools served under this part, including identifying barriers 
        to greater participation by parents in activities authorized by 
        this section (with particular attention to parents who are 
        economically disadvantaged, are disabled, have limited English 
        proficiency, have limited literacy, or are of any racial or 
        ethnic minority background), and use the findings of such 
        evaluation to design strategies for more effective parental 
        involvement, and to revise, if necessary, the parental 
        involvement policies described in this section; and
            ``(F) involve parents in the activities of the schools 
        served under this part.
        ``(3) Reservation.--
            ``(A) In general.--Each local educational agency shall 
        reserve not less than 1 percent of such agency's allocation 
        under subpart 2 of this part to carry out this section, 
        including promoting family literacy and parenting skills, 
        except that this paragraph shall not apply if 1 percent of such 
        agency's allocation under subpart 2 of this part for the fiscal 
        year for which the determination is made is $5,000 or less.
            ``(B) Parental input.--Parents of children receiving 
        services under this part shall be involved in the decisions 
        regarding how funds reserved under subparagraph (A) are 
        allotted for parental involvement activities.
            ``(C) Distribution of funds.--Not less than 95 percent of 
        the funds reserved under subparagraph (A) shall be distributed 
        to schools served under this part.
    ``(b) School Parental Involvement Policy.--
        ``(1) In general.--Each school served under this part shall 
    jointly develop with, and distribute to, parents of participating 
    children a written parental involvement policy, agreed on by such 
    parents, that shall describe the means for carrying out the 
    requirements of subsections (c) through (f). Parents shall be 
    notified of the policy in an understandable and uniform format and, 
    to the extent practicable, provided in a language the parents can 
    understand. Such policy shall be made available to the local 
    community and updated periodically to meet the changing needs of 
    parents and the school.
        ``(2) Special rule.--If the school has a parental involvement 
    policy that applies to all parents, such school may amend that 
    policy, if necessary, to meet the requirements of this subsection.
        ``(3) Amendment.--If the local educational agency involved has 
    a school district-level parental involvement policy that applies to 
    all parents, such agency may amend that policy, if necessary, to 
    meet the requirements of this subsection.
        ``(4) Parental comments.--If the plan under section 1112 is not 
    satisfactory to the parents of participating children, the local 
    educational agency shall submit any parent comments with such plan 
    when such local educational agency submits the plan to the State.
    ``(c) Policy Involvement.--Each school served under this part 
shall--
        ``(1) convene an annual meeting, at a convenient time, to which 
    all parents of participating children shall be invited and 
    encouraged to attend, to inform parents of their school's 
    participation under this part and to explain the requirements of 
    this part, and the right of the parents to be involved;
        ``(2) offer a flexible number of meetings, such as meetings in 
    the morning or evening, and may provide, with funds provided under 
    this part, transportation, child care, or home visits, as such 
    services relate to parental involvement;
        ``(3) involve parents, in an organized, ongoing, and timely 
    way, in the planning, review, and improvement of programs under 
    this part, including the planning, review, and improvement of the 
    school parental involvement policy and the joint development of the 
    schoolwide program plan under section 1114(b)(2), except that if a 
    school has in place a process for involving parents in the joint 
    planning and design of the school's programs, the school may use 
    that process, if such process includes an adequate representation 
    of parents of participating children;
        ``(4) provide parents of participating children--
            ``(A) timely information about programs under this part;
            ``(B) a description and explanation of the curriculum in 
        use at the school, the forms of academic assessment used to 
        measure student progress, and the proficiency levels students 
        are expected to meet; and
            ``(C) if requested by parents, opportunities for regular 
        meetings to formulate suggestions and to participate, as 
        appropriate, in decisions relating to the education of their 
        children, and respond to any such suggestions as soon as 
        practicably possible; and
        ``(5) if the schoolwide program plan under section 1114(b)(2) 
    is not satisfactory to the parents of participating children, 
    submit any parent comments on the plan when the school makes the 
    plan available to the local educational agency.
    ``(d) Shared Responsibilities for High Student Academic 
Achievement.--As a component of the school-level parental involvement 
policy developed under subsection (b), each school served under this 
part shall jointly develop with parents for all children served under 
this part a school-parent compact that outlines how parents, the entire 
school staff, and students will share the responsibility for improved 
student academic achievement and the means by which the school and 
parents will build and develop a partnership to help children achieve 
the State's high standards. Such compact shall--
        ``(1) describe the school's responsibility to provide high-
    quality curriculum and instruction in a supportive and effective 
    learning environment that enables the children served under this 
    part to meet the State's student academic achievement standards, 
    and the ways in which each parent will be responsible for 
    supporting their children's learning, such as monitoring 
    attendance, homework completion, and television watching; 
    volunteering in their child's classroom; and participating, as 
    appropriate, in decisions relating to the education of their 
    children and positive use of extracurricular time; and
        ``(2) address the importance of communication between teachers 
    and parents on an ongoing basis through, at a minimum--
            ``(A) parent-teacher conferences in elementary schools, at 
        least annually, during which the compact shall be discussed as 
        the compact relates to the individual child's achievement;
            ``(B) frequent reports to parents on their children's 
        progress; and
            ``(C) reasonable access to staff, opportunities to 
        volunteer and participate in their child's class, and 
        observation of classroom activities.
    ``(e) Building Capacity for Involvement.--To ensure effective 
involvement of parents and to support a partnership among the school 
involved, parents, and the community to improve student academic 
achievement, each school and local educational agency assisted under 
this part--
        ``(1) shall provide assistance to parents of children served by 
    the school or local educational agency, as appropriate, in 
    understanding such topics as the State's academic content standards 
    and State student academic achievement standards, State and local 
    academic assessments, the requirements of this part, and how to 
    monitor a child's progress and work with educators to improve the 
    achievement of their children;
        ``(2) shall provide materials and training to help parents to 
    work with their children to improve their children's achievement, 
    such as literacy training and using technology, as appropriate, to 
    foster parental involvement;
        ``(3) shall educate teachers, pupil services personnel, 
    principals, and other staff, with the assistance of parents, in the 
    value and utility of contributions of parents, and in how to reach 
    out to, communicate with, and work with parents as equal partners, 
    implement and coordinate parent programs, and build ties between 
    parents and the school;
        ``(4) shall, to the extent feasible and appropriate, coordinate 
    and integrate parent involvement programs and activities with Head 
    Start, Reading First, Early Reading First, Even Start, the Home 
    Instruction Programs for Preschool Youngsters, the Parents as 
    Teachers Program, and public preschool and other programs, and 
    conduct other activities, such as parent resource centers, that 
    encourage and support parents in more fully participating in the 
    education of their children;
        ``(5) shall ensure that information related to school and 
    parent programs, meetings, and other activities is sent to the 
    parents of participating children in a format and, to the extent 
    practicable, in a language the parents can understand;
        ``(6) may involve parents in the development of training for 
    teachers, principals, and other educators to improve the 
    effectiveness of such training;
        ``(7) may provide necessary literacy training from funds 
    received under this part if the local educational agency has 
    exhausted all other reasonably available sources of funding for 
    such training;
        ``(8) may pay reasonable and necessary expenses associated with 
    local parental involvement activities, including transportation and 
    child care costs, to enable parents to participate in school-
    related meetings and training sessions;
        ``(9) may train parents to enhance the involvement of other 
    parents;
        ``(10) may arrange school meetings at a variety of times, or 
    conduct in-home conferences between teachers or other educators, 
    who work directly with participating children, with parents who are 
    unable to attend such conferences at school, in order to maximize 
    parental involvement and participation;
        ``(11) may adopt and implement model approaches to improving 
    parental involvement;
        ``(12) may establish a districtwide parent advisory council to 
    provide advice on all matters related to parental involvement in 
    programs supported under this section;
        ``(13) may develop appropriate roles for community-based 
    organizations and businesses in parent involvement activities; and
        ``(14) shall provide such other reasonable support for parental 
    involvement activities under this section as parents may request.
    ``(f) Accessibility.--In carrying out the parental involvement 
requirements of this part, local educational agencies and schools, to 
the extent practicable, shall provide full opportunities for the 
participation of parents with limited English proficiency, parents with 
disabilities, and parents of migratory children, including providing 
information and school reports required under section 1111 in a format 
and, to the extent practicable, in a language such parents understand.
    ``(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 local 
educational agency or school 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.
    ``(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.

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

    ``(a) Teacher Qualifications and Measurable Objectives.--
        ``(1) In general.--Beginning with the first day of the first 
    school year after the date of enactment of the No Child Left Behind 
    Act of 2001, each local educational agency receiving assistance 
    under this part shall ensure that all teachers hired after such day 
    and teaching in a program supported with funds under this part are 
    highly qualified.
        ``(2) State plan.--As part of the plan described in section 
    1111, each State educational agency receiving assistance under this 
    part shall develop a plan to ensure that all teachers teaching in 
    core academic subjects within the State are highly qualified not 
    later than the end of the 2005-2006 school year. Such plan shall 
    establish annual measurable objectives for each local educational 
    agency and school that, at a minimum--
            ``(A) shall include an annual increase in the percentage of 
        highly qualified teachers at each local educational agency and 
        school, to ensure that all teachers teaching in core academic 
        subjects in each public elementary school and secondary school 
        are highly qualified not later than the end of the 2005-2006 
        school year;
            ``(B) shall include an annual increase in the percentage of 
        teachers who are receiving high-quality professional 
        development to enable such teachers to become highly qualified 
        and successful classroom teachers; and
            ``(C) may include such other measures as the State 
        educational agency determines to be appropriate to increase 
        teacher qualifications.
        ``(3) Local plan.--As part of the plan described in section 
    1112, each local educational agency receiving assistance under this 
    part shall develop a plan to ensure that all teachers teaching 
    within the school district served by the local educational agency 
    are highly qualified not later than the end of the 2005-2006 school 
    year.
    ``(b) Reports.--
        ``(1) Annual state and local reports.--
            ``(A) Local reports.--Each State educational agency 
        described in subsection (a)(2) shall require each local 
        educational agency receiving funds under this part to publicly 
        report, each year, beginning with the 2002-2003 school year, 
        the annual progress of the local educational agency as a whole 
        and of each of the schools served by the agency, in meeting the 
        measurable objectives described in subsection (a)(2).
            ``(B) State reports.--Each State educational agency 
        receiving assistance under this part shall prepare and submit 
        each year, beginning with the 2002-2003 school year, a report 
        to the Secretary, describing the State educational agency's 
        progress in meeting the measurable objectives described in 
        subsection (a)(2).
            ``(C) Information from other reports.--A State educational 
        agency or local educational agency may submit information from 
        the reports described in section 1111(h) for the purposes of 
        this subsection, if such report is modified, as may be 
        necessary, to contain the information required by this 
        subsection, and may submit such information as a part of the 
        reports required under section 1111(h).
        ``(2) Annual reports by the secretary.--Each year, beginning 
    with the 2002-2003 school year, the Secretary shall publicly report 
    the annual progress of State educational agencies, local 
    educational agencies, and schools, in meeting the measurable 
    objectives described in subsection (a)(2).
    ``(c) New Paraprofessionals.--
        ``(1) In general.--Each local educational agency receiving 
    assistance under this part shall ensure that all paraprofessionals 
    hired after the date of enactment of the No Child Left Behind Act 
    of 2001 and working in a program supported with funds under this 
    part shall have--
            ``(A) completed at least 2 years of study at an institution 
        of higher education;
            ``(B) obtained an associate's (or higher) degree; or
            ``(C) met a rigorous standard of quality and can 
        demonstrate, through a formal State or local academic 
        assessment--
                ``(i) knowledge of, and the ability to assist in 
            instructing, reading, writing, and mathematics; or
                ``(ii) knowledge of, and the ability to assist in 
            instructing, reading readiness, writing readiness, and 
            mathematics readiness, as appropriate.
        ``(2) Clarification.--The receipt of a secondary school diploma 
    (or its recognized equivalent) shall be necessary but not 
    sufficient to satisfy the requirements of paragraph (1)(C).
    ``(d) Existing Paraprofessionals.--Each local educational agency 
receiving assistance under this part shall ensure that all 
paraprofessionals hired before the date of enactment of the No Child 
Left Behind Act of 2001, and working in a program supported with funds 
under this part shall, not later than 4 years after the date of 
enactment satisfy the requirements of subsection (c).
    ``(e) Exceptions for Translation and Parental Involvement 
Activities.--Subsections (c) and (d) shall not apply to a 
paraprofessional--
        ``(1) who is proficient in English and a language other than 
    English and who provides services primarily to enhance the 
    participation of children in programs under this part by acting as 
    a translator; or
        ``(2) whose duties consist solely of conducting parental 
    involvement activities consistent with section 1118.
    ``(f) General Requirement for All Paraprofessionals.--Each local 
educational agency receiving assistance under this part shall ensure 
that all paraprofessionals working in a program supported with funds 
under this part, regardless of the paraprofessionals' hiring date, have 
earned a secondary school diploma or its recognized equivalent.
    ``(g) Duties of Paraprofessionals.--
        ``(1) In general.--Each local educational agency receiving 
    assistance under this part shall ensure that a paraprofessional 
    working in a program supported with funds under this part is not 
    assigned a duty inconsistent with this subsection.
        ``(2) Responsibilities paraprofessionals may be assigned.--A 
    paraprofessional described in paragraph (1) may be assigned--
            ``(A) to provide one-on-one tutoring for eligible students, 
        if the tutoring is scheduled at a time when a student would not 
        otherwise receive instruction from a teacher;
            ``(B) to assist with classroom management, such as 
        organizing instructional and other materials;
            ``(C) to provide assistance in a computer laboratory;
            ``(D) to conduct parental involvement activities;
            ``(E) to provide support in a library or media center;
            ``(F) to act as a translator; or
            ``(G) to provide instructional services to students in 
        accordance with paragraph (3).
        ``(3) Additional limitations.--A paraprofessional described in 
    paragraph (1)--
            ``(A) may not provide any instructional service to a 
        student unless the paraprofessional is working under the direct 
        supervision of a teacher consistent with section 1119; and
            ``(B) may assume limited duties that are assigned to 
        similar personnel who are not working in a program supported 
        with funds under this part, including duties beyond classroom 
        instruction or that do not benefit participating children, so 
        long as the amount of time spent on such duties is the same 
        proportion of total work time as prevails with respect to 
        similar personnel at the same school.
    ``(h) Use of Funds.--A local educational agency receiving funds 
under this part may use such funds to support ongoing training and 
professional development to assist teachers and paraprofessionals in 
satisfying the requirements of this section.
    ``(i) Verification of Compliance.--
        ``(1) In general.--In verifying compliance with this section, 
    each local educational agency, at a minimum, shall require that the 
    principal of each school operating a program under section 1114 or 
    1115 attest annually in writing as to whether such school is in 
    compliance with the requirements of this section.
        ``(2) Availability of information.--Copies of attestations 
    under paragraph (1)--
            ``(A) shall be maintained at each school operating a 
        program under section 1114 or 1115 and at the main office of 
        the local educational agency; and
            ``(B) shall be available to any member of the general 
        public on request.
    ``(j) Combinations of Funds.--Funds provided under this part that 
are used for professional development purposes may be combined with 
funds provided under title II of this Act, other Acts, and other 
sources.
    ``(k) Special Rule.--Except as provided in subsection (l), no State 
educational agency shall require a school or a local educational agency 
to expend a specific amount of funds for professional development 
activities under this part, except that this paragraph shall not apply 
with respect to requirements under section 1116(c)(3).
    ``(l) Minimum Expenditures.--Each local educational agency that 
receives funds under this part shall use not less than 5 percent, or 
more than 10 percent, of such funds for each of fiscal years 2002 and 
2003, and not less than 5 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 not later 
than the end of the 2005-2006 school year.

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

    ``(a) General Requirement.--
        ``(1) In general.--To the extent consistent with the number of 
    eligible children identified under section 1115(b) in the school 
    district served by a local educational agency who are enrolled in 
    private elementary schools and secondary schools, a local 
    educational agency shall, after timely and meaningful consultation 
    with appropriate private school officials, provide such children, 
    on an equitable basis, special educational services or other 
    benefits under this part (such as dual enrollment, educational 
    radio and television, computer equipment and materials, other 
    technology, and mobile educational services and equipment) that 
    address their needs, and shall ensure that teachers and families of 
    the children participate, on an equitable basis, in services and 
    activities developed pursuant to sections 1118 and 1119.
        ``(2) Secular, neutral, nonideological.--Such educational 
    services or other benefits, including materials and equipment, 
    shall be secular, neutral, and nonideological.
        ``(3) Equity.--Educational services and other benefits for such 
    private school children shall be equitable in comparison to 
    services and other benefits for public school children 
    participating under this part, and shall be provided in a timely 
    manner.
        ``(4) Expenditures.--Expenditures for educational services and 
    other benefits to eligible private school children shall be equal 
    to the proportion of funds allocated to participating school 
    attendance areas based on the number of children from low-income 
    families who attend private schools, which the local educational 
    agency may determine each year or every 2 years.
        ``(5) Provision of services.--The local educational agency may 
    provide services under this section directly or through contracts 
    with public and private agencies, organizations, and institutions.
    ``(b) Consultation.--
        ``(1) In general.--To ensure timely and meaningful 
    consultation, a local educational agency shall consult with 
    appropriate private school officials during the design and 
    development of such agency's programs under this part, on issues 
    such as--
            ``(A) how the children's needs will be identified;
            ``(B) what services will be offered;
            ``(C) how, where, and by whom the services will be 
        provided;
            ``(D) how the services will be academically assessed and 
        how the results of that assessment will be used to improve 
        those services;
            ``(E) the size and scope of the equitable services to be 
        provided to the eligible private school children, and the 
        proportion of funds that is allocated under subsection (a)(4) 
        for such services;
            ``(F) the method or sources of data that are used under 
        subsection (c) and section 1113(c)(1) to determine the number 
        of children from low-income families in participating school 
        attendance areas who attend private schools;
            ``(G) how and when the agency will make decisions about the 
        delivery of services to such children, including a thorough 
        consideration and analysis of the views of the private school 
        officials on the provision of services through a contract with 
        potential third-party providers; and
            ``(H) how, if the agency disagrees with the views of the 
        private school officials on the provision of services through a 
        contract, the local educational agency will provide in writing 
        to such private school officials an analysis of the reasons why 
        the local educational agency has chosen not to use a 
        contractor.
        ``(2) Timing.--Such consultation shall include meetings of 
    agency and private school officials and shall occur before the 
    local educational agency makes any decision that affects the 
    opportunities of eligible private school children to participate in 
    programs under this part. Such meetings shall continue throughout 
    implementation and assessment of services provided under this 
    section.
        ``(3) Discussion.--Such consultation shall include a discussion 
    of service delivery mechanisms a local educational agency can use 
    to provide equitable services to eligible private school children.
        ``(4) Documentation.--Each local educational agency shall 
    maintain in the agency's records and provide to the State 
    educational agency involved a written affirmation signed by 
    officials of each participating private school that the 
    consultation required by this section has occurred. If such 
    officials do not provide such affirmation within a reasonable 
    period of time, the local educational agency shall forward the 
    documentation that such consultation has taken place to the State 
    educational agency.
        ``(5) Compliance.--
            ``(A) In general.--A private school official shall have the 
        right to complain to the State educational agency that the 
        local educational agency did not engage in consultation that 
        was meaningful and timely, or did not give due consideration to 
        the views of the private school official.
            ``(B) Procedure.--If the private school official wishes to 
        complain, the official shall provide the basis of the 
        noncompliance with this section by the local educational agency 
        to the State educational agency, and the local educational 
        agency shall forward the appropriate documentation to the State 
        educational agency.
    ``(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 children, ages 5 through 17, who are from low-income 
    families and attend private schools 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;
            ``(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; or
            ``(D) using an equated measure of low income correlated 
        with the measure of low income used to count public school 
        children.
        ``(2) Complaint process.--Any dispute regarding low-income data 
    for private school students shall be subject to the complaint 
    process authorized in section 9505.
    ``(d) Public Control of Funds.--
        ``(1) In general.--The control of funds provided under this 
    part, and title to materials, equipment, and property purchased 
    with such funds, shall be in a public agency, and a public agency 
    shall administer such funds, materials, equipment, and property.
        ``(2) Provision of services.--
            ``(A) Provider.--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) Requirement.--In the provision of such services, such 
        employee, individual, 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.
    ``(e) Standards for a Bypass.--If a local educational agency is 
prohibited by law from providing for the participation in programs on 
an equitable basis of eligible children enrolled in private elementary 
schools and secondary schools, or if the Secretary determines that a 
local educational agency has substantially failed or is unwilling, to 
provide for such participation, as required by this section, the 
Secretary shall--
        ``(1) waive the requirements of this section for such local 
    educational agency;
        ``(2) arrange for the provision of services to such children 
    through arrangements that shall be subject to the requirements of 
    this section and sections 9503 and 9504; and
        ``(3) in making the determination under this subsection, 
    consider one or more factors, including the quality, size, scope, 
    and location of the program and the opportunity of eligible 
    children to participate.

``SEC. 1120A. FISCAL REQUIREMENTS.

    ``(a) Maintenance of Effort.--A local educational agency may 
receive funds under this part for any fiscal year only if the State 
educational agency involved finds that the local educational agency has 
maintained the agency's fiscal effort in accordance with section 9521.
    ``(b) Federal Funds To Supplement, Not Supplant, Non-Federal 
Funds.--
        ``(1) In general.--A State educational agency or local 
    educational agency shall use Federal funds received under this part 
    only to supplement the funds that would, in the absence of such 
    Federal funds, be made available from non-Federal sources for the 
    education of pupils participating in programs assisted under this 
    part, and not to supplant such funds.
        ``(2) Special rule.--No local educational agency shall be 
    required to provide services under this part through a particular 
    instructional method or in a particular instructional setting in 
    order to demonstrate such agency's compliance with paragraph (1).
    ``(c) Comparability of Services.--
        ``(1) In general.--
            ``(A) Comparable services.--Except as provided in 
        paragraphs (4) and (5), a local educational agency may receive 
        funds under this part only if State and local funds will be 
        used in schools served under this part to provide services 
        that, taken as a whole, are at least comparable to services in 
        schools that are not receiving funds under this part.
            ``(B) Substantially comparable services.--If the local 
        educational agency is serving all of such agency's schools 
        under this part, such agency may receive funds under this part 
        only if such agency will use State and local funds to provide 
        services that, taken as a whole, are substantially comparable 
        in each school.
            ``(C) Basis.--A local educational agency may meet the 
        requirements of subparagraphs (A) and (B) on a grade-span by 
        grade-span basis or a school-by-school basis.
        ``(2) Written assurance.--
            ``(A) Equivalence.--A local educational agency shall be 
        considered to have met the requirements of paragraph (1) if 
        such agency has filed with the State educational agency a 
        written assurance that such agency has established and 
        implemented--
                ``(i) a local educational agency-wide salary schedule;
                ``(ii) a policy to ensure equivalence among schools in 
            teachers, administrators, and other staff; and
                ``(iii) a policy to ensure equivalence among schools in 
            the provision of curriculum materials and instructional 
            supplies.
            ``(B) Determinations.--For the purpose of this subsection, 
        in the determination of expenditures per pupil from State and 
        local funds, or instructional salaries per pupil from State and 
        local funds, staff salary differentials for years of employment 
        shall not be included in such determinations.
            ``(C) Exclusions.--A local educational agency need not 
        include unpredictable changes in student enrollment or 
        personnel assignments that occur after the beginning of a 
        school year in determining comparability of services under this 
        subsection.
        ``(3) Procedures and records.--Each local educational agency 
    assisted under this part shall--
            ``(A) develop procedures for compliance with this 
        subsection; and
            ``(B) maintain records that are updated biennially 
        documenting such agency's compliance with this subsection.
        ``(4) Inapplicability.--This subsection shall not apply to a 
    local educational agency that does not have more than one building 
    for each grade span.
        ``(5) Compliance.--For the purpose of determining compliance 
    with paragraph (1), a local educational agency may exclude State 
    and local funds expended for--
            ``(A) language instruction educational programs; and
            ``(B) the excess costs of providing services to children 
        with disabilities as determined by the local educational 
        agency.
    ``(d) Exclusion of Funds.--For the purpose of complying with 
subsections (b) and (c), a State educational agency or local 
educational agency may exclude supplemental State or local funds 
expended in any school attendance area or school for programs that meet 
the intent and purposes of this part.

``SEC. 1120B. COORDINATION REQUIREMENTS.

    ``(a) In General.--Each local educational agency receiving 
assistance under this part shall carry out the activities described in 
subsection (b) with Head Start agencies and, if feasible, other 
entities carrying out early childhood development programs such as the 
Early Reading First program.
    ``(b) Activities.--The activities referred to in subsection (a) are 
activities that increase coordination between the local educational 
agency and a Head Start agency and, if feasible, other entities 
carrying out early childhood development programs, such as the Early 
Reading First program, serving children who will attend the schools of 
the local educational agency, including--
        ``(1) developing and implementing a systematic procedure for 
    receiving records regarding such children, transferred with 
    parental consent from a Head Start program or, where applicable, 
    another early childhood development program such as the Early 
    Reading First program;
        ``(2) establishing channels of communication between school 
    staff and their counterparts (including teachers, social workers, 
    and health staff) in such Head Start agencies or other entities 
    carrying out early childhood development programs such as the Early 
    Reading First program, as appropriate, to facilitate coordination 
    of programs;
        ``(3) conducting meetings involving parents, kindergarten or 
    elementary school teachers, and Head Start teachers or, if 
    appropriate, teachers from other early childhood development 
    programs such as the Early Reading First program, to discuss the 
    developmental and other needs of individual children;
        ``(4) organizing and participating in joint transition-related 
    training of school staff, Head Start program staff, Early Reading 
    First program staff, and, where appropriate, other early childhood 
    development program staff; and
        ``(5) linking the educational services provided by such local 
    educational agency with the services provided by local Head Start 
    agencies and entities carrying out Early Reading First programs.
    ``(c) Coordination of Regulations.--The Secretary shall work with 
the Secretary of Health and Human Services to coordinate regulations 
promulgated under this part with regulations promulgated under the Head 
Start Act.

                        ``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 
payments to States for any fiscal year under section 1002(a) and 
1125A(f), the Secretary shall reserve a total of 1 percent to provide 
assistance to--
        ``(1) the outlying areas in the amount determined in accordance 
    with subsection (b); and
        ``(2) the Secretary of the Interior in the amount necessary to 
    make payments pursuant to subsection (d).
    ``(b) Assistance to Outlying Areas.--
        ``(1) Funds reserved.--From the amount made available for any 
    fiscal year under subsection (a), the Secretary shall award grants 
    to local educational agencies in the outlying areas.
        ``(2) Competitive grants.--Until each appropriate outlying area 
    enters into an agreement for extension of United States educational 
    assistance under the Compact of Free Association after the date of 
    enactment of the No Child Left Behind Act of 2001, the Secretary 
    shall carry out the competition described in paragraph (3), except 
    that the amount reserved to carry out such competition shall not 
    exceed $5,000,000.
        ``(3) Limitation for competitive grants.--
            ``(A) Competitive grants.--The Secretary shall use funds 
        described in paragraph (2) to award grants to the outlying 
        areas and freely associated States to carry out the purposes of 
        this part.
            ``(B) Award basis.--The Secretary shall award grants under 
        subparagraph (A) on a competitive basis, taking into 
        consideration the recommendations of the Pacific Region 
        Educational Laboratory in Honolulu, Hawaii.
            ``(C) Uses.--Except as provided in subparagraph (D), grant 
        funds awarded under this paragraph may be used only--
                ``(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 that 
            assist all students with meeting challenging State academic 
            content standards.
            ``(D) Administrative costs.--The Secretary may provide not 
        more than 5 percent of the amount reserved for grants under 
        this paragraph to pay the administrative costs of the Pacific 
        Region Educational Laboratory under subparagraph (B).
        ``(4) Special rule.--The provisions of Public Law 95-134, 
    permitting the consolidation of grants by the outlying areas, shall 
    not apply to funds provided to the freely associated States under 
    this section.
    ``(c) Definitions.--For the purpose of subsections (a) and (b)--
        ``(1) the term `freely associated states' means the Republic of 
    the Marshall Islands, the Federated States of Micronesia, and the 
    Republic of Palau; and
        ``(2) the term `outlying area' means the United States Virgin 
    Islands, Guam, American Samoa, and the Commonwealth of the Northern 
    Mariana Islands.
    ``(d) Allotment to the Secretary of the Interior.--
        ``(1) In general.--The amount allotted for payments to the 
    Secretary of the Interior under subsection (a)(2) for any fiscal 
    year shall be, as determined pursuant to criteria established by 
    the Secretary, the amount necessary to meet the special educational 
    needs of--
            ``(A) Indian children on reservations served by elementary 
        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 allotted for payments to the 
    Secretary of the Interior under subsection (a)(2), the Secretary of 
    the Interior shall make payments to local educational agencies, on 
    such terms as the Secretary determines will best carry out the 
    purposes of this part, with respect to out-of-State Indian children 
    described in paragraph (1). The amount of such payment may not 
    exceed, for each such child, the greater of--
            ``(A) 40 percent of the average per-pupil expenditure in 
        the State in which the agency is located; or
            ``(B) 48 percent of such expenditure in the United States.

``SEC. 1122. ALLOCATIONS TO STATES.

    ``(a) Allocation Formula.--Of the amount appropriated under section 
1002(a) to carry out this part for each of fiscal years 2002-2007 
(referred to in this subsection as the current fiscal year)--
        ``(1) an amount equal to the amount made available to carry out 
    section 1124 for fiscal year 2001 shall be allocated in accordance 
    with section 1124;
        ``(2) an amount equal to the amount made available to carry out 
    section 1124A for fiscal year 2001 shall be allocated in accordance 
    with section 1124A; and
        ``(3) an amount equal to 100 percent of the amount, if any, by 
    which the amount made available to carry out sections 1124, 1124A, 
    and 1125 for the current fiscal year for which the determination is 
    made exceeds the amount available to carry out sections 1124 and 
    1124A for fiscal year 2001 shall be allocated in accordance with 
    section 1125.
    ``(b) Adjustments Where Necessitated by Appropriations.--
        ``(1) In general.--If the sums available under this subpart for 
    any fiscal year are insufficient to pay the full amounts that all 
    local educational agencies in States are eligible to receive under 
    sections 1124, 1124A, and 1125 for such year, the Secretary shall 
    ratably reduce the allocations to such local educational agencies, 
    subject to subsections (c) and (d) of this section.
        ``(2) Additional funds.--If additional funds become available 
    for making payments under sections 1124, 1124A, and 1125 for such 
    fiscal year, allocations that were reduced under paragraph (1) 
    shall be increased on the same basis as they were reduced.
    ``(c) Hold-Harmless Amounts.--
        ``(1) Amounts for sections 1124, 1124a, and 1125.--For each 
    fiscal year, the amount made available to each local educational 
    agency under each of sections 1124, 1124A, and 1125 shall be--
            ``(A) not less than 95 percent of the amount made available 
        for the preceding fiscal year if the number of children counted 
        for grants under section 1124 is not less than 30 percent of 
        the total number of children aged 5 to 17 years, inclusive, in 
        the local educational agency;
            ``(B) not less than 90 percent of the amount made available 
        for the preceding fiscal year if the percentage described in 
        subparagraph (A) is between 15 percent and 30 percent; and
            ``(C) not less than 85 percent of the amount made available 
        for the preceding fiscal year if the percentage described in 
        subparagraph (A) is below 15 percent.
        ``(2) Payments.--If sufficient funds are appropriated, the 
    amounts described in paragraph (1) shall be paid to all local 
    educational agencies that received grants under section 1124A for 
    the preceding fiscal year, regardless of whether the local 
    educational agency meets the minimum eligibility criteria for that 
    fiscal year described in section 1124A(a)(1)(A) except that a local 
    educational agency that does not meet such minimum eligibility 
    criteria for 4 consecutive years shall no longer be eligible to 
    receive a hold harmless amount referred to in paragraph (1).
        ``(3) 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.
        ``(4) Population data.--For any fiscal year for which the 
    Secretary calculates grants on the basis of population data for 
    counties, the Secretary shall apply the hold-harmless 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, the State educational agency shall reallocate 
    funds proportionately from all other local educational agencies in 
    the State that are receiving funds in excess of the hold-harmless 
    amounts specified in this subsection.
    ``(d) Ratable Reductions.--
        ``(1) In general.--If the sums made available under this 
    subpart for any fiscal year are insufficient to pay the full 
    amounts that local educational agencies in all States are eligible 
    to receive under subsection (c) for such year, the Secretary shall 
    ratably reduce such amounts for such year.
        ``(2) Additional funds.--If additional funds become available 
    for making payments under subsection (c) for such fiscal year, 
    amounts that were reduced under paragraph (1) shall be increased on 
    the same basis as such amounts were reduced.
    ``(e) Definition.--For the purpose of this section and sections 
1124, 1124A, 1125, and 1125A, the term `State' means each of the 50 
States, the District of Columbia, and the Commonwealth of Puerto Rico.

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

    ``(a) Amount of Grants.--
        ``(1) Grants for local educational agencies and puerto rico.--
    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, or more than 48 
        percent, of the average per-pupil expenditure in the United 
        States.
        ``(2) Calculation of grants.--
            ``(A) Allocations to local educational agencies.--The 
        Secretary shall calculate 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 two Secretaries 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) For any fiscal year to which this paragraph 
            applies, the Secretary shall calculate grants under this 
            section for each local educational agency.
                ``(ii) The amount of a grant under this section for 
            each large local educational agency shall be the amount 
            determined under clause (i).
                ``(iii) For small local educational agencies, the State 
            educational agency may either--

                    ``(I) distribute grants under this section in 
                amounts determined by the Secretary under clause (i); 
                or
                    ``(II) use an alternative method approved by the 
                Secretary to distribute the portion of the State's 
                total grants under this section that is based on those 
                small agencies.

                ``(iv) An alternative method under clause (iii)(II) 
            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 eligibility 
            criteria of subsection (b).
                ``(v) If a small local educational agency is 
            dissatisfied with the determination of its grant by the 
            State educational agency under clause (iii)(II), it may 
            appeal that determination to the Secretary, who shall 
            respond not later than 45 days after receipt of such 
            appeal.
                ``(vi) As used in this subparagraph--

                    ``(I) the term `large local educational agency' 
                means a local educational agency serving an area with a 
                total population of 20,000 or more; and
                    ``(II) the term `small local educational agency' 
                means a local educational agency serving an area with a 
                total population of less than 20,000.

        ``(3) Allocations to counties.--
            ``(A) Calculation.--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 subsection (c) for counties, and State educational 
        agencies shall suballocate county amounts to local educational 
        agencies, in accordance with regulations issued by the 
        Secretary.
            ``(B) Direct allocations.--In any State in which a large 
        number of local educational agencies overlap county boundaries, 
        or for which the State believes it has data that would better 
        target funds than allocating them by county, the State 
        educational agency may apply to the Secretary for authority to 
        make the allocations under this subpart for a particular fiscal 
        year directly to local educational agencies without regard to 
        counties.
            ``(C) Allocations to local educational agencies.--If the 
        Secretary approves the State educational agency's application 
        under subparagraph (B), the State educational agency shall 
        provide the Secretary an assurance that such allocations shall 
        be made--
                ``(i) using precisely the same factors for determining 
            a grant as are used under this subpart; 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 it will establish a procedure 
        through which a local educational agency that is dissatisfied 
        with its determinations under subparagraph (B) may appeal 
        directly to the Secretary for a final determination.
        ``(4) Puerto rico.--
            ``(A) In general.--For each fiscal year, the grant that the 
        Commonwealth of Puerto Rico shall be eligible to receive under 
        this section shall be the amount determined by multiplying the 
        number of children counted under subsection (c) for the 
        Commonwealth of Puerto Rico by the product of--
                ``(i) subject to subparagraph (B), 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
                ``(ii) 32 percent of the average per-pupil expenditure 
            in the United States.
            ``(B) Minimum percentage.--The percentage in subparagraph 
        (A)(i) shall not be less than--
                ``(i) for fiscal year 2002, 77.5 percent;
                ``(ii) for fiscal year 2003, 80.0 percent;
                ``(iii) for fiscal year 2004, 82.5 percent;
                ``(iv) for fiscal year 2005, 85.0 percent;
                ``(v) for fiscal year 2006, 92.5 percent; and
                ``(vi) for fiscal year 2007 and succeeding fiscal 
            years, 100.0 percent.
            ``(C) Limitation.--If the application of subparagraph (B) 
        would result in any of the 50 States or the District of 
        Columbia receiving less under this subpart than it received 
        under this subpart for the preceding fiscal year, the 
        percentage in subparagraph (A) shall be the greater of--
                ``(i) the percentage in subparagraph (A)(i);
                ``(ii) the percentage specified in subparagraph (B) for 
            the preceding fiscal year; or
                ``(iii) the percentage used for the preceding fiscal 
            year.
    ``(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 both--
        ``(1) 10 or more; and
        ``(2) more than 2 percent of the total school-age population in 
    the agency's jurisdiction.
    ``(c) Children To Be Counted.--
        ``(1) Categories of children.--The number of children to be 
    counted for purposes of this section is the aggregate of--
            ``(A) the number of children aged 5 to 17, inclusive, in 
        the school district of the local educational agency from 
        families below the poverty level as determined under paragraph 
        (2);
            ``(B) the number of children (determined under paragraph 
        (4) for either the preceding year as described in that 
        paragraph, or for the second preceding year, as the Secretary 
        finds appropriate) aged 5 to 17, inclusive, in the school 
        district of such agency in institutions for neglected and 
        delinquent children (other than such institutions operated by 
        the United States), but not counted pursuant to subpart 1 of 
        part D for the purposes of a grant to a State agency, or being 
        supported in foster homes with public funds; and
            ``(C) 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).
        ``(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 two or more counties in their entirety, 
    then each county will be treated as if such county were a separate 
    local educational agency for purposes of calculating grants under 
    this part. The total of grants for such counties shall be allocated 
    to such 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.--
            ``(A) In general.--In fiscal year 2002 and each subsequent 
        fiscal year, 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 the use of the 
        updated population data would be inappropriate or unreliable. 
        If appropriate and reliable data are not available annually, 
        the Secretary shall use data which are updated every 2 years.
            ``(B) Inappropriate or unreliable data.--If the Secretary 
        and the Secretary of Commerce determine that some or all of the 
        data referred to in subparagraph (A) are inappropriate or 
        unreliable, the Secretary and the Secretary of Commerce shall 
        publicly disclose their reasons.
            ``(C) Criteria of poverty.--In determining the families 
        that are below the poverty level, the Secretary shall use 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.
        ``(4) Other children to be counted.--
            ``(A) For the purpose 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; and in making such determinations, the Secretary 
        shall use the criteria of poverty used by the Bureau of the 
        Census in compiling the most recent decennial census for a 
        family of four in such form as those criteria have been updated 
        by increases in the Consumer Price Index for All Urban 
        Consumers, published by the Bureau of Labor Statistics.
            ``(B) 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.
            ``(C) Except for the data on children living in 
        institutions for neglected or delinquent children, 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.
            ``(D) 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 (1)(A)) 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 allocated to States 
    under this section for fiscal year 2001, plus 0.35 percent of the 
    total amount allocated to States under this section in excess of 
    the amount allocated for fiscal year 2001; or
        ``(2) the average of--
            ``(A) the amount calculated in paragraph (1), above; and
            ``(B) the number of children in such State counted under 
        subsection (c) in the fiscal year multiplied by 150 percent of 
        the national average per-pupil payment made with funds 
        available under this section for that year.

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

    ``(a) Eligibility for and Amount of Grants.--
        ``(1) In general.--(A) Except as otherwise provided in this 
    paragraph, each local educational agency which 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) in the agency 
    exceeds either--
            ``(i) 6,500; or
            ``(ii) 15 percent of the total number of children aged 5 
        through 17 in the agency.
        ``(B) Notwithstanding section 1122, no State shall receive less 
    than the lesser of--
            ``(i) 0.25 percent of the total amount allocated to States 
        under this section for fiscal year 2001, plus 0.35 percent of 
        the total amount allocated to States under this section in 
        excess of the amount allocated for fiscal year 2001; or
            ``(ii) the average of--
                ``(I) the amount calculated under clause (i); and
                ``(II) the greater of--

                    ``(aa) $340,000; or
                    ``(bb) the number of children in such State counted 
                for purposes of this section in that fiscal year 
                multiplied by 150 percent of the national average per-
                pupil payment made with funds available under this 
                section for that year.

        ``(2) 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 each State 
        except the Commonwealth of Puerto Rico, and the amount in 
        section 1124(a)(4) 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 which 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) Grant amounts under this section 
    shall be determined in accordance with section 1124(a)(2), (3), and 
    (4).
        ``(B) 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 its allocation under this 
    section to make grants to local educational agencies that meet the 
    criteria of paragraph (1)(A)(i) or (ii) and are in ineligible 
    counties that do not meet these criteria.
    ``(b) Small States.--In any State for which on the date of 
enactment of the No Child Left Behind Act of 2001 the number of 
children counted under section 1124(c) is less than 0.25 percent of the 
number of those children counted for all States, the State educational 
agency shall allocate funds under this section among the local 
educational agencies in the State either--
        ``(1) in accordance with paragraphs (2) and (4) of subsection 
    (a); or
        ``(2) based on their respective concentrations and numbers of 
    children counted under section 1124(c), except that only those 
    local educational agencies with concentrations or numbers of 
    children counted under section 1124(c) that exceed the statewide 
    average percentage of such children or the statewide average number 
    of such children shall receive any funds on the basis of this 
    paragraph.

``SEC. 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 two 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 1.82.
        ``(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 two 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 15.58 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 15.58 percent, but not more than 22.11 percent, of 
            such population, multiplied by 1.75;
                ``(iii) the number of such children who constitute more 
            than 22.11 percent, but not more than 30.16 percent, of 
            such population, multiplied by 2.5;
                ``(iv) the number of such children who constitute more 
            than 30.16 percent, but not more than 38.24 percent, of 
            such population, multiplied by 3.25; and
                ``(v) the number of such children who constitute more 
            than 38.24 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 691, inclusive, of the 
            agency's total population aged 5 to 17, inclusive, 
            multiplied by 1.0;
                ``(ii) the number of such children between 692 and 
            2,262, inclusive, in such population, multiplied by 1.5;
                ``(iii) the number of such children between 2,263 and 
            7,851, inclusive, in such population, multiplied by 2.0;
                ``(iv) the number of such children between 7,852 and 
            35,514, inclusive, in such population, multiplied by 2.5; 
            and
                ``(v) the number of such children in excess of 35,514 
            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 1.82.
    ``(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 at least 
the lesser of--
        ``(1) 0.35 percent of the total amount available to carry out 
    this section; or
        ``(2) the average of--
            ``(A) 0.35 percent of the total amount available to carry 
        out this section; and
            ``(B) 150 percent of the national average grant under this 
        section per child described in section 1124(c), without 
        application of a weighting factor, multiplied by the State's 
        total number of children described in section 1124(c), without 
        application of a weighting factor.

``SEC. 1125AA. 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 this part often does not provide funds for the 
    economically disadvantaged students for which such funds are 
    targeted.
        ``(2) Any school district in which more than 2 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 this part, 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 
    this part.
        ``(5) In passing the Improving America's Schools Act in 1994, 
    Congress declared that grants under this part 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 this part 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 this 
    part were allocated through the Targeted Grant Formula.
        ``(9) Congress has an obligation to allocate funds under this 
    part 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.--Pursuant to section 1122, the 
total amount allocated in any fiscal year after fiscal year 2001 for 
programs and activities under this part shall 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 in the applicable fiscal year meets the requirements 
of section 1122(a).

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

    ``(a) Grants.--From funds appropriated under subsection (f) the 
Secretary is authorized to make grants to States, from allotments under 
subsection (b), to carry out the programs and activities 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 (f) 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) the amount in section 1124(a)(1)(B) for all 
            States other than the Commonwealth of Puerto Rico, except 
            that the amount determined under that subparagraph shall 
            not be less that 34 percent or more than 46 percent of the 
            average per pupil expenditure in the United States, and the 
            amount in section 1124(a)(4) for the Commonwealth of Puerto 
            Rico, except that the amount in section 1124(a)(4)(A)(ii) 
            shall be 34 percent of the average per pupil expenditure in 
            the United States; multiplied by
                ``(ii) such State's effort factor described in 
            paragraph (2); multiplied by
                ``(iii) 1.30 minus such State's equity factor described 
            in paragraph (3).
            ``(B) 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 at least the lesser of--
                ``(i) 0.35 percent of total appropriations; or
                ``(ii) the average of--

                    ``(I) 0.35 percent of the total amount available to 
                carry out this section; and
                    ``(II) 150 percent of the national average grant 
                under this section per child described in section 
                1124(c), without application of a weighting factor, 
                multiplied by the State's total number of children 
                described in section 1124(c), without application of a 
                weighting factor.

        ``(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 counted 
                under section 1124(c) 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 No 
        Child Left Behind Act of 2001) or a State with only one local 
        educational agency shall be not greater than 0.10.
    ``(c) Use of Funds; Eligibility of Local Educational Agencies.--All 
funds awarded to each State under this section shall be allocated to 
local educational agencies under the following provisions. Within local 
educational agencies, funds allocated under this section shall be 
distributed to schools on a basis consistent with section 1113, and may 
only be used to carry out activities under this part. 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 paragraph (3), 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 paragraph (3), 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.
    ``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.
    ``(d) Allocation of Funds to Eligible Local Educational Agencies.--
Funds received by States under this section shall be allocated within 
States to eligible local educational agencies on the basis of weighted 
child counts calculated in accordance with paragraph (1), (2), or (3), 
as appropriate for each State.
        ``(1) States with an equity factor less than .10.--In States 
    with an equity factor less than .10, the weighted child counts 
    referred to in subsection (d) shall be calculated as follows:
            ``(A) Weights for allocations to counties.--
                ``(i) 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 two 
            amounts determined under clauses (ii) and (iii).
                ``(ii) By percentage of children.--The amount referred 
            to in clause ``(i) 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.

                ``(iii) By number of children.--The amount referred to 
            in clause (i) 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.

            ``(B) Weights for allocations to local educational 
        agencies.--
                ``(i) 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 two amounts 
            determined under clauses (ii) and (iii).
                ``(ii) By percentage of children.--The amount referred 
            to in clause (i) is determined by adding--

                    ``(I) the number of children determined under 
                section 1124(c) for that local educational agency who 
                constitute not more than 15.58 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 15.58 percent, but not more than 22.11 
                percent, of such population, multiplied by 1.75;
                    ``(III) the number of such children who constitute 
                more than 22.11 percent, but not more than 30.16 
                percent, of such population, multiplied by 2.5;
                    ``(IV) the number of such children who constitute 
                more than 30.16 percent, but not more than 38.24 
                percent, of such population, multiplied by 3.25; and
                    ``(V) the number of such children who constitute 
                more than 38.24 percent of such population, multiplied 
                by 4.0.

                ``(iii) By number of children.--The amount referred to 
            in clause (i) is determined by adding--

                    ``(I) the number of children determined under 
                section 1124(c) who constitute not more than 691, 
                inclusive, of the agency's total population aged 5 to 
                17, inclusive, multiplied by 1.0;
                    ``(II) the number of such children between 692 and 
                2,262, inclusive, in such population, multiplied by 
                1.5;
                    ``(III) the number of such children between 2,263 
                and 7,851, inclusive, in such population, multiplied by 
                2.0;
                    ``(IV) the number of such children between 7,852 
                and 35,514, inclusive, in such population, multiplied 
                by 2.5; and
                    ``(V) the number of such children in excess of 
                35,514 in such population, multiplied by 3.0.

        ``(2) States with an equity factor greater than or equal to .10 
    and less than .20.--In States with an equity factor greater than or 
    equal to .10 and less than .20, the weighted child counts referred 
    to in subsection (d) shall be calculated as follows:
            ``(A) Weights for allocations to counties.--
                ``(i) 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 two 
            amounts determined under clauses (ii) and (iii).
                ``(ii) By percentage of children.--The amount referred 
            to in clause (i) 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 1.5;
                    ``(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 3.0;
                    ``(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 4.5; and
                    ``(V) the number of such children who constitute 
                more than 29.20 percent of such population, multiplied 
                by 6.0.

                ``(iii) By number of children.--The amount referred to 
            in clause (i) 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 2.25;
                    ``(IV) the number of such children between 23,918 
                and 93,810, inclusive, in such population, multiplied 
                by 3.375; and
                    ``(V) the number of such children in excess of 
                93,811 in such population, multiplied by 4.5.

            ``(B) Weights for allocations to local educational 
        agencies.--
                ``(i) 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 two amounts 
            determined under clauses (ii) and (iii).
                ``(ii) By percentage of children.--The amount referred 
            to in clause (i) is determined by adding--

                    ``(I) the number of children determined under 
                section 1124(c) for that local educational agency who 
                constitute not more than 15.58 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 15.58 percent, but not more than 22.11 
                percent, of such population, multiplied by 1.5;
                    ``(III) the number of such children who constitute 
                more than 22.11 percent, but not more than 30.16 
                percent, of such population, multiplied by 3.0;
                    ``(IV) the number of such children who constitute 
                more than 30.16 percent, but not more than 38.24 
                percent, of such population, multiplied by 4.5; and
                    ``(V) the number of such children who constitute 
                more than 38.24 percent of such population, multiplied 
                by 6.0.

                ``(iii) By number of children.--The amount referred to 
            in clause (i) is determined by adding--

                    ``(I) the number of children determined under 
                section 1124(c) who constitute not more than 691, 
                inclusive, of the agency's total population aged 5 to 
                17, inclusive, multiplied by 1.0;
                    ``(II) the number of such children between 692 and 
                2,262, inclusive, in such population, multiplied by 
                1.5;
                    ``(III) the number of such children between 2,263 
                and 7,851, inclusive, in such population, multiplied by 
                2.25;
                    ``(IV) the number of such children between 7,852 
                and 35,514, inclusive, in such population, multiplied 
                by 3.375; and
                    ``(V) the number of such children in excess of 
                35,514 in such population, multiplied by 4.5.

        ``(3) States with an equity factor greater than or equal to 
    .20.--In States with an equity factor greater than or equal to .20, 
    the weighted child counts referred to in subsection (d) shall be 
    calculated as follows:
            ``(A) Weights for allocations to counties.--
                ``(i) 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 two 
            amounts determined under clauses (ii) and (iii).
                ``(ii) By percentage of children.--The amount referred 
            to in clause (i) 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 2.0;
                    ``(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 4.0;
                    ``(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 6.0; and
                    ``(V) the number of such children who constitute 
                more than 29.20 percent of such population, multiplied 
                by 8.0.

                ``(iii) By number of children.--The amount referred to 
            in clause (i) 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 
                2.0;
                    ``(III) the number of such children between 7,914 
                and 23,917, inclusive, in such population, multiplied 
                by 3.0;
                    ``(IV) the number of such children between 23,918 
                and 93,810, inclusive, in such population, multiplied 
                by 4.5; and
                    ``(V) the number of such children in excess of 
                93,811 in such population, multiplied by 6.0.

            ``(B) Weights for allocations to local educational 
        agencies.--
                ``(i) 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 two amounts 
            determined under clauses (ii) and (iii).
                ``(ii) By percentage of children.--The amount referred 
            to in clause (i) is determined by adding--

                    ``(I) the number of children determined under 
                section 1124(c) for that local educational agency who 
                constitute not more than 15.58 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 15.58 percent, but not more than 22.11 
                percent, of such population, multiplied by 2.0;
                    ``(III) the number of such children who constitute 
                more than 22.11 percent, but not more than 30.16 
                percent, of such population, multiplied by 4.0;
                    ``(IV) the number of such children who constitute 
                more than 30.16 percent, but not more than 38.24 
                percent, of such population, multiplied by 6.0; and
                    ``(V) the number of such children who constitute 
                more than 38.24 percent of such population, multiplied 
                by 8.0.

                ``(iii) By number of children.--The amount referred to 
            in clause (i) is determined by adding--

                    ``(I) the number of children determined under 
                section 1124(c) who constitute not more than 691, 
                inclusive, of the agency's total population aged 5 to 
                17, inclusive, multiplied by 1.0;
                    ``(II) the number of such children between 692 and 
                2,262, inclusive, in such population, multiplied by 
                2.0;
                    ``(III) the number of such children between 2,263 
                and 7,851, inclusive, in such population, multiplied by 
                3.0;
                    ``(IV) the number of such children between 7,852 
                and 35,514, inclusive, in such population, multiplied 
                by 4.5; and
                    ``(V) the number of such children in excess of 
                35,514 in such population, multiplied by 6.0.

    ``(e) 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.
    ``(f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for fiscal year 2002 and for each of the 5 succeeding fiscal years.
    ``(g) Adjustments Where Necessitated by Appropriations.--
        ``(1) In general.--If the sums available under this section for 
    any fiscal year are insufficient to pay the full amounts that all 
    local educational agencies in States are eligible to receive under 
    this section for such year, the Secretary shall ratably reduce the 
    allocations to such local educational agencies, subject to 
    paragraphs (2) and (3).
        ``(2) Additional funds.--If additional funds become available 
    for making payments under this section for such fiscal year, 
    allocations that were reduced under paragraph (1) shall be 
    increased on the same basis as they were reduced.
        ``(3) Hold-harmless amounts.--For each fiscal year, if 
    sufficient funds are available, the amount made available to each 
    local educational agency under this section shall be
            ``(A) not less than 95 percent of the amount made available 
        for the preceding fiscal year if the number of children counted 
        for grants under section 1124 is not less than 30 percent of 
        the total number of children aged 5 to 17 years, inclusive, in 
        the local educational agency;
            ``(B) not less than 90 percent of the amount made available 
        for the preceding fiscal year if the percentage described in 
        subparagraph (A) is between 15 percent and 30 percent; and
            ``(C) not less than 85 percent of the amount made available 
        for the preceding fiscal year if the percentage described in 
        subparagraph (A) is below 15 percent.
        ``(4) 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.

``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

    ``(a) Allocations for Neglected Children.--
        ``(1) In general.--If a State educational agency determines 
    that a local educational agency in the State is unable or unwilling 
    to provide for the special educational needs of children who are 
    living in institutions for neglected children as described in 
    section 1124(c)(1)(B), 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, 1125, and 1125A 
    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, 1125, and 1125A among the affected local educational 
agencies--
        ``(1) if two 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 one 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, 1125, and 1125A 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(b) 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.

          ``PART B--STUDENT READING SKILLS IMPROVEMENT GRANTS

                       ``Subpart 1--Reading First

``SEC. 1201. PURPOSES.

    ``The purposes of this subpart are as follows:
        ``(1) To provide assistance to State educational agencies and 
    local educational agencies in establishing reading programs for 
    students in kindergarten through grade 3 that are based on 
    scientifically based reading research, to ensure that every student 
    can read at grade level or above not later than the end of grade 3.
        ``(2) To provide assistance to State educational agencies and 
    local educational agencies in preparing teachers, including special 
    education 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 to 
    effectively help their students learn to read.
        ``(3) To provide assistance to State educational agencies and 
    local educational agencies in selecting or administering screening, 
    diagnostic, and classroom-based instructional reading assessments.
        ``(4) To provide assistance to State educational agencies and 
    local educational agencies in selecting or developing effective 
    instructional materials (including classroom-based materials to 
    assist teachers in implementing the essential components of reading 
    instruction), programs, learning systems, and strategies to 
    implement methods that have been proven to prevent or remediate 
    reading failure within a State.
        ``(5) To strengthen coordination among schools, early literacy 
    programs, and family literacy programs to improve reading 
    achievement for all children.

``SEC. 1202. FORMULA GRANTS TO STATE EDUCATIONAL AGENCIES.

    ``(a) In General.--
        ``(1) Authorization to make grants.--In the case of each State 
    educational agency that in accordance with section 1203 submits to 
    the Secretary an application for a 6-year period, the Secretary, 
    from amounts appropriated under section 1002(b)(1) and subject to 
    the application's approval, shall make a grant to the State 
    educational agency for the uses specified in subsections (c) and 
    (d). For each fiscal year, the funds provided under the grant shall 
    equal the allotment determined for the State educational agency 
    under subsection (b).
        ``(2) Duration of grants.--Subject to subsection (e)(3), a 
    grant under this section shall be awarded for a period of not more 
    than 6 years.
    ``(b) Determination of Amount of Allotments.--
        ``(1) Reservations from appropriations.--From the total amount 
    made available to carry out this subpart for a fiscal year, the 
    Secretary--
            ``(A) shall reserve one-half of 1 percent for allotments 
        for the United States 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;
            ``(B) shall reserve one-half of 1 percent for the Secretary 
        of the Interior for programs under this subpart in schools 
        operated or funded by the Bureau of Indian Affairs;
            ``(C) may reserve not more than 2\1/2\ percent or 
        $25,000,000, whichever is less, to carry out section 1205 
        (relating to external evaluation) and section 1206 (relating to 
        national activities);
            ``(D) shall reserve $5,000,000 to carry out sections 1207 
        and 1224 (relating to information dissemination); and
            ``(E) for any fiscal year, beginning with fiscal year 2004, 
        for which the amount appropriated to carry out this subpart 
        exceeds the amount appropriated for fiscal year 2003, shall 
        reserve, to carry out section 1204, the lesser of--
                ``(i) $90,000,000; or
                ``(ii) 10 percent of such excess amount.
        ``(2) State allotments.--In accordance with paragraph (3), the 
    Secretary shall allot among each of the States the total amount 
    made available to carry out this subpart for any fiscal year and 
    not reserved under paragraph (1).
        ``(3) Determination of state allotment amounts.--
            ``(A) In general.--Subject to subparagraph (B), the 
        Secretary shall allot the amount made available under paragraph 
        (2) for a fiscal year among the States in proportion to the 
        number of children, aged 5 to 17, who reside within the State 
        and are from families with incomes below the poverty line for 
        the most recent fiscal year for which satisfactory data are 
        available, compared to the number of such individuals who 
        reside in all such States for that fiscal year.
            ``(B) Exceptions.--
                ``(i) Minimum grant amount.--Subject to clause (ii), no 
            State receiving an allotment under subparagraph (A) may 
            receive less than one-fourth of 1 percent of the total 
            amount allotted under such subparagraph.
                ``(ii) Puerto rico.--The percentage of the amount 
            allotted under subparagraph (A) that is allotted to the 
            Commonwealth of Puerto Rico for a fiscal year may not 
            exceed the percentage that was received by the Commonwealth 
            of Puerto Rico of the funds allocated to all States under 
            subpart 2 of part A for the preceding fiscal year.
        ``(4) Distribution of subgrants.--The Secretary may make a 
    grant to a State educational agency only if the State educational 
    agency 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 subsection (c), competitive subgrants to eligible 
    local educational agencies.
        ``(5) Reallotment.--If a State educational agency described in 
    paragraph (2) does not apply for an allotment under this section 
    for any fiscal year, or if the State educational agency's 
    application is not approved, the Secretary shall reallot such 
    amount to the remaining State educational agencies in accordance 
    with paragraph (3).
        ``(6) Definition of state.--For purposes of this subsection, 
    the term `State' means each of the 50 States, the District of 
    Columbia, and the Commonwealth of Puerto Rico.
    ``(c) Subgrants to Local Educational Agencies.--
        ``(1) Authorization to make subgrants.--In accordance with 
    paragraph (2), a State educational agency that receives a grant 
    under this section shall make competitive subgrants to eligible 
    local educational agencies.
        ``(2) Allocation.--
            ``(A) Minimum subgrant amount.--In making subgrants under 
        paragraph (1), a State educational agency shall allocate to 
        each eligible local educational agency that receives such a 
        subgrant, at a minimum, an amount that bears the same relation 
        to the funds made available under subsection (b)(4) as the 
        amount the eligible local educational agency received under 
        part A for the preceding fiscal year bears to the amount all 
        the local educational agencies in the State received under part 
        A for the preceding fiscal year.
            ``(B) Priority.--In making subgrants under paragraph (1), a 
        State educational agency shall give priority to eligible local 
        educational agencies in which at least--
                ``(i) 15 percent of the children served by the eligible 
            local educational agency are from families with incomes 
            below the poverty line; or
                ``(ii) 6,500 children served by the eligible local 
            educational agency are from families with incomes below the 
            poverty line.
        ``(3) Notice.--A State educational agency 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.
        ``(4) Local application.--To be eligible to receive a subgrant 
    under this subsection, an eligible 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.
        ``(5) State requirement.--In distributing subgrant funds to 
    eligible local educational agencies under this subsection, a State 
    educational agency shall--
            ``(A) provide funds in sufficient size and scope to enable 
        the eligible local educational agencies to improve reading 
        instruction; 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) Limitation to certain schools.--In distributing subgrant 
    funds under this subsection, an eligible local educational agency 
    shall provide funds only to schools that both--
            ``(A) are among the schools served by that eligible local 
        educational agency with the highest percentages or numbers of 
        students in kindergarten through grade 3 reading below grade 
        level, based on the most currently available data; and
            ``(B)(i) are identified for school improvement under 
        section 1116(b); or
            ``(ii) have the highest percentages or numbers of children 
        counted under section 1124(c).
        ``(7) Local uses of funds.--
            ``(A) Required uses.--Subject to paragraph (8), an eligible 
        local educational agency that receives a subgrant under this 
        subsection shall use the funds provided under the subgrant to 
        carry out the following activities:
                ``(i) Selecting and administering screening, 
            diagnostic, and classroom-based instructional reading 
            assessments.
                ``(ii) Selecting and implementing a learning system or 
            program of reading instruction based on scientifically 
            based reading research that--

                    ``(I) includes the essential components of reading 
                instruction; and
                    ``(II) provides such instruction to the children in 
                kindergarten through grade 3 in the schools served by 
                the eligible local educational agency, including 
                children who--

                        ``(aa) may have reading difficulties;
                        ``(bb) are at risk of being referred to special 
                    education based on these difficulties;
                        ``(cc) have been evaluated under section 614 of 
                    the Individuals with Disabilities Education Act 
                    but, in accordance with section 614(b)(5) of that 
                    Act, have not been identified as being a child with 
                    a disability (as defined in section 602 of that 
                    Act);
                        ``(dd) 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 that Act) related to reading;
                        ``(ee) are deficient in the essential 
                    components of reading skills, as listed in 
                    subparagraphs (A) through (E) of section 1208(3); 
                    or
                        ``(ff) are identified as having limited English 
                    proficiency.
                ``(iii) Procuring and implementing instructional 
            materials, including education technology such as software 
            and other digital curricula, that are based on 
            scientifically based reading research.
                ``(iv) Providing professional development for teachers 
            of kindergarten through grade 3, and special education 
            teachers of kindergarten through grade 12, that--

                    ``(I) will prepare these teachers in all of the 
                essential components of reading instruction;
                    ``(II) shall include--

                        ``(aa) information on instructional materials, 
                    programs, strategies, and approaches based on 
                    scientifically based reading research, including 
                    early intervention, classroom reading materials, 
                    and remedial programs and approaches; and
                        ``(bb) instruction in the use of screening, 
                    diagnostic, and classroom-based instructional 
                    reading assessments and other procedures that 
                    effectively identify students who may be at risk 
                    for reading failure or who are having difficulty 
                    reading;

                    ``(III) shall be provided by eligible professional 
                development providers; and
                    ``(IV) will assist teachers in becoming highly 
                qualified in reading instruction in accordance with the 
                requirements of section 1119.

                ``(v) Collecting and summarizing data--

                    ``(I) to document the effectiveness of activities 
                carried out under 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.

                ``(vi) Reporting data for all students and categories 
            of students described in section 1111(b)(2)(C)(v)(II).
                ``(vii) Promoting reading and library programs that 
            provide access to engaging reading material, including 
            coordination with programs funded through grants received 
            under subpart 4, where applicable.
            ``(B) Additional uses.--Subject to paragraph (8), an 
        eligible local educational agency that receives a subgrant 
        under this subsection may use the funds provided under the 
        subgrant to carry out the following activities:
                ``(i) Humanities-based family literacy programs (which 
            may be referred to as `Prime Time Family Reading Time') 
            that bond families around the acts of reading and using 
            public libraries.
                ``(ii) Providing training in the essential components 
            of reading instruction to a parent or other individual who 
            volunteers to be a student's reading tutor, to enable such 
            parent or individual to support instructional practices 
            that are based on scientifically based reading research and 
            are being used by the student's teacher.
                ``(iii) Assisting parents, through the use of materials 
            and reading programs, strategies, and approaches (including 
            family literacy services) that are based on scientifically 
            based reading research, to encourage reading and support 
            their child's reading development.
        ``(8) Local planning and administration.--An eligible local 
    educational agency that receives a subgrant under this subsection 
    may use not more than 3.5 percent of the funds provided under the 
    subgrant for planning and administration.
    ``(d) 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 educational agency shall give priority 
    to carrying out the activities described in paragraphs (3), (4), 
    and (5) for schools described in subsection (c)(6).
        ``(3) Professional inservice and preservice development and 
    review.--A State educational agency may expend not more than 65 
    percent of the amount of the funds made available under paragraph 
    (1)--
            ``(A) to develop and implement a program of professional 
        development for teachers, including special education teachers, 
        of kindergarten through grade 3 that--
                ``(i) will prepare these teachers in all the essential 
            components of reading instruction;
                ``(ii) shall include--

                    ``(I) information on instructional materials, 
                programs, strategies, and approaches based on 
                scientifically based reading research, including early 
                intervention and reading remediation materials, 
                programs, and approaches; and
                    ``(II) instruction in the use of screening, 
                diagnostic, and classroom-based instructional reading 
                assessments and other scientifically based 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;
            ``(B) to strengthen and enhance preservice courses for 
        students preparing, at all public institutions of higher 
        education in the State, to teach kindergarten through grade 3 
        by--
                ``(i) reviewing such courses to determine whether the 
            courses' content is consistent with the findings of the 
            most current scientifically based reading research, 
            including findings on the essential components of reading 
            instruction;
                ``(ii) following up such reviews with recommendations 
            to ensure that such institutions offer courses that meet 
            the highest standards; and
                ``(iii) preparing a report on the results of such 
            reviews, submitting the report to the reading and literacy 
            partnership for the State established under section 
            1203(d), and making the report available for public review 
            by means of the Internet; and
            ``(C) to make recommendations on how the State licensure 
        and certification standards in the area of reading might be 
        improved.
        ``(4) Technical assistance for local educational agencies and 
    schools.--A State educational agency 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:
            ``(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 based on scientifically based 
            reading research;
                ``(ii) selecting screening, diagnostic, and classroom-
            based instructional reading assessments; and
                ``(iii) identifying eligible professional development 
            providers to help prepare reading teachers to teach 
            students using the programs and assessments described in 
            clauses (i) and (ii).
            ``(B) Providing expanded opportunities to students in 
        kindergarten through grade 3 who are served by eligible local 
        educational agencies for receiving reading assistance from 
        alternative providers that includes--
                ``(i) screening, diagnostic, and classroom-based 
            instructional reading assessments; and
                ``(ii) as need is indicated by the assessments under 
            clause (i), instruction based on scientifically based 
            reading research that includes the essential components of 
            reading instruction.
        ``(5) Planning, administration, and reporting.--
            ``(A) Expenditure of funds.--A State educational agency may 
        expend not more than 10 percent of the amount of funds made 
        available under paragraph (1) for the activities described in 
        this paragraph.
            ``(B) Planning and administration.--A State educational 
        agency 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 eligible local educational agencies under 
            subsection (c) and section 1204(d).
                ``(ii) Assessing and evaluating, on a regular basis, 
            eligible local educational agency activities assisted under 
            this subpart, with respect to whether they have been 
            effective in increasing the number of children in grades 1, 
            2, and 3 served under this subpart who can read at or above 
            grade level.
            ``(C) Annual reporting.--
                ``(i) In general.--A State educational agency that 
            receives a grant under this section shall expend funds made 
            available under subparagraph (A) to provide the Secretary 
            annually with a report on the implementation of this 
            subpart.
                ``(ii) Information included.--Each report under this 
            subparagraph shall include information on the following:

                    ``(I) Evidence that the State educational agency is 
                fulfilling its obligations under this subpart.
                    ``(II) Specific identification of those schools and 
                local educational agencies that report the largest 
                gains in reading achievement.
                    ``(III) The progress the State educational agency 
                and local educational agencies within the State are 
                making in reducing the number of students served under 
                this subpart in grades 1, 2, and 3 who are reading 
                below grade level, as demonstrated by such information 
                as teacher reports and school evaluations of mastery of 
                the essential components of reading instruction.
                    ``(IV) Evidence on whether the State educational 
                agency and local educational agencies within the State 
                have significantly increased the number of students 
                reading at grade level or above, significantly 
                increased the percentages of students described in 
                section 1111(b)(2)(C)(v)(II) who are reading at grade 
                level or above, and successfully implemented this 
                subpart.

                ``(iii) Privacy protection.--Data in the report shall 
            be reported in a manner that protects the privacy of 
            individuals.
                ``(iv) Contract.--To the extent practicable, a State 
            educational agency shall enter into a contract with an 
            entity that conducts scientifically based reading research, 
            under which contract the entity will assist the State 
            educational agency in producing the reports required to be 
            submitted under this subparagraph.
    ``(e) Review.--
        ``(1) Progress report.--
            ``(A) Submission.--Not later than 60 days after the 
        termination of the third year of the grant period, each State 
        educational agency receiving a grant under this section shall 
        submit a progress report to the Secretary.
            ``(B) Information included.--The progress report shall 
        include information on the progress the State educational 
        agency and local educational agencies within the State are 
        making in reducing the number of students served under this 
        subpart in grades 1, 2, and 3 who are reading below grade level 
        (as demonstrated by such information as teacher reports and 
        school evaluations of mastery of the essential components of 
        reading instruction). The report shall also include evidence 
        from the State educational agency and local educational 
        agencies within the State that the State educational agency and 
        the local educational agencies have significantly increased the 
        number of students reading at grade level or above, 
        significantly increased the percentages of students described 
        in section 1111(b)(2)(C)(v)(II) who are reading at grade level 
        or above, and successfully implemented this subpart.
        ``(2) Peer review.--The progress report described in paragraph 
    (1) shall be reviewed by the peer review panel convened under 
    section 1203(c)(2).
        ``(3) Consequences of insufficient progress.--After submission 
    of the progress report described in paragraph (1), if the Secretary 
    determines that the State educational agency is not making 
    significant progress in meeting the purposes of this subpart, the 
    Secretary may withhold from the State educational agency, in whole 
    or in part, further payments under this section in accordance with 
    section 455 of the General Education Provisions Act or take such 
    other action authorized by law as the Secretary determines 
    necessary, including providing technical assistance upon request of 
    the State educational agency.
    ``(f) Funds not Used for State Level Activities.--Any portion of 
funds described in subsection (d)(1) that a State educational agency 
does not expend in accordance with subsection (d)(1) shall be expended 
for the purpose of making subgrants in accordance with subsection (c).

``SEC. 1203. STATE FORMULA GRANT APPLICATIONS.

    ``(a) Applications.--
        ``(1) In general.--A State educational agency that desires to 
    receive a grant under section 1202 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 State 
    educational agencies that have received a grant under part C of 
    title II (as such part was in effect on the day before the date of 
    enactment of the No Child Left Behind Act of 2001), 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 State educational 
    agencies.
    ``(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 educational agency's activities under this subpart.
        ``(2) A description, if applicable, of the State's strategy to 
    expand, continue, or modify activities authorized under part C of 
    title II (as such part was in effect on the day before the date of 
    enactment of the No Child Left Behind Act of 2001).
        ``(3) An assurance that the State educational agency, and any 
    local educational agencies receiving a subgrant from that State 
    educational agency under section 1202, will, if requested, 
    participate in the external evaluation under section 1205.
        ``(4) A State educational agency plan containing a description 
    of the following:
            ``(A) How the State educational agency will assist local 
        educational agencies in identifying screening, diagnostic, and 
        classroom-based instructional reading assessments.
            ``(B) How the State educational agency will assist local 
        educational agencies in identifying instructional materials, 
        programs, strategies, and approaches, based 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 section 1202 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 section 1202 will 
        address the needs of teachers and other instructional staff in 
        implementing the essential components of reading instruction.
            ``(E) How subgrants made by the State educational agency 
        under section 1202 will meet the requirements of section 1202, 
        including how the State educational agency will ensure that 
        eligible local educational agencies receiving subgrants under 
        section 1202 will use practices based on scientifically based 
        reading research.
            ``(F) How the State educational agency will, to the extent 
        practicable, make grants to eligible local educational agencies 
        in both rural and urban areas.
            ``(G) How the State educational agency will build on, and 
        promote coordination among literacy programs in the State 
        (including federally funded programs such as programs under the 
        Adult Education and Family Literacy Act, the Individuals with 
        Disabilities Education Act, and subpart 2), to increase the 
        effectiveness of the programs in improving reading for adults 
        and children and to avoid duplication of the efforts of the 
        program.
            ``(H) How the State educational agency will assess and 
        evaluate, on a regular basis, eligible local educational agency 
        activities assisted under section 1202, with respect to whether 
        the activities have been effective in achieving the purposes of 
        section 1202.
            ``(I) Any other information that the Secretary may 
        reasonably require.
    ``(c) Approval of Applications.--
        ``(1) In general.--The Secretary shall approve an application 
    of a State educational agency under this section only if such 
    application meets the requirements 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) three individuals selected by the Secretary;
                ``(ii) three individuals selected by the National 
            Institute for Literacy;
                ``(iii) three individuals selected by the National 
            Research Council of the National Academy of Sciences; and
                ``(iv) three individuals selected by the National 
            Institute of Child Health and Human Development.
            ``(B) Experts.--The panel shall include--
                ``(i) experts who are competent, by virtue of their 
            training, expertise, or experience, to evaluate 
            applications under this section;
                ``(ii) experts who provide professional development to 
            individuals who teach reading to children and adults based 
            on scientifically based reading research;
                ``(iii) experts who provide professional development to 
            other instructional staff based on scientifically based 
            reading research; and
                ``(iv) an individual who has expertise in screening, 
            diagnostic, and classroom-based instructional reading 
            assessments.
            ``(C) Recommendations.--The panel shall recommend grant 
        applications from State educational agencies under this section 
        to the Secretary for funding or for disapproval.
    ``(d) Reading and Literacy Partnerships.--
        ``(1) In general.--For a State educational agency to receive a 
    grant under section 1202, the Governor of the State, in 
    consultation with the State educational agency, shall establish a 
    reading and literacy partnership.
        ``(2) Required participants.--The reading and literacy 
    partnership shall include 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 eligible 
        local educational agency.
            ``(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, selected jointly by 
        the Governor and the chief State school officer.
            ``(G) A parent of a public or private school student or a 
        parent who educates the parent's child in the parent's home, 
        selected jointly by the Governor and the chief State school 
        officer.
            ``(H) A teacher, who may be a special education teacher, 
        who successfully teaches reading, and another 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.
        ``(3) Optional participants.--The 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 in the State that is based on 
        scientifically based reading research;
            ``(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.
        ``(4) Preexisting partnership.--If, before the date of 
    enactment of the No Child Left Behind Act of 2001, a State 
    educational agency 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 enactment of No 
    Child Left Behind Act of 2001), that consortium, partnership, or 
    body may be considered a reading and literacy partnership for 
    purposes of this subsection consistent with the provisions of this 
    subpart.

``SEC. 1204. TARGETED ASSISTANCE GRANTS.

    ``(a) Eligibility Criteria for Awarding Targeted Assistance Grants 
to States.--Beginning with fiscal year 2004, from funds appropriated 
under section 1202(b)(1)(E), the Secretary shall make grants, on a 
competitive basis, to those State educational agencies that--
        ``(1) for each of 2 consecutive years, demonstrate that an 
    increasing percentage of third graders in each of the groups 
    described in section 1111(b)(2)(C)(v)(II) in the schools served by 
    the local educational agencies receiving funds under section 1202 
    are reaching the proficient level in reading; and
        ``(2) for each of the same such consecutive 2 years, 
    demonstrate that schools receiving funds under section 1202 are 
    improving the reading skills of students in grades 1, 2, and 3 
    based on screening, diagnostic, and classroom-based instructional 
    reading assessments.
    ``(b) Continuation of Performance Awards.--For any State 
educational agency that receives a competitive grant under this 
section, the Secretary shall make an award for each of the succeeding 
years that the State educational agency demonstrates it is continuing 
to meet the criteria described in subsection (a).
    ``(c) Distribution of Targeted Assistance Grants.--
        ``(1) In general.--The Secretary shall make a grant to each 
    State educational agency with an application approved under this 
    section in an amount that bears the same relation to the amount 
    made available to carry out this section for a fiscal year as the 
    number of children counted under section 1124(c) for the State 
    bears to the number of such children so counted for all States with 
    applications approved for that year.
        ``(2) Peer review.--The peer review panel convened under 
    section 1203(c)(2) shall review the applications submitted under 
    this subsection. The panel shall recommend such applications to the 
    Secretary for funding or for disapproval.
        ``(3) Application contents.--A 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 
    accompanied by such information as the Secretary may require. Each 
    such application shall include the following:
            ``(A) Evidence that the State educational agency has 
        carried out its obligations under section 1203.
            ``(B) Evidence that the State educational agency has met 
        the criteria described in subsection (a).
            ``(C) The amount of funds requested by the State 
        educational agency and a description of the criteria the State 
        educational agency intends to use in distributing subgrants to 
        eligible local educational agencies under this section to 
        continue or expand activities under subsection (d)(5).
            ``(D) Evidence that the State educational agency has 
        increased significantly the percentage of students reading at 
        grade level or above.
            ``(E) Any additional evidence that demonstrates success in 
        the implementation of this section.
    ``(d) Subgrants to Eligible Local Educational Agencies.--
        ``(1) In general.--The Secretary may make a grant to a State 
    educational agency under this section only if the State educational 
    agency 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 eligible local 
    educational agencies.
        ``(2) Notice.--A State educational agency receiving a grant 
    under this section shall provide notice to all 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 be eligible to receive a subgrant under 
    this subsection, an eligible 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.
        ``(4) Distribution.--
            ``(A) In general.--A State educational agency shall 
        distribute subgrants under this section through a competitive 
        process based on relative need of eligible local educational 
        agencies and the evidence described in this paragraph.
            ``(B) Evidence used in all years.--For all fiscal years, a 
        State educational agency shall distribute subgrants under this 
        section based on evidence that an eligible local educational 
        agency--
                ``(i) satisfies the requirements of section 1202(c)(4);
                ``(ii) will carry out its obligations under this 
            subpart;
                ``(iii) will work with other local educational agencies 
            in the State that have not received a subgrant under this 
            subsection to assist such nonreceiving agencies in 
            increasing the reading achievement of students; and
                ``(iv) is meeting the criteria described in subsection 
            (a).
        ``(5) Local uses of funds.--An eligible local educational 
    agency that receives a subgrant under this subsection--
            ``(A) shall use the funds provided under the subgrant to 
        carry out the activities described in section 1202(c)(7)(A); 
        and
            ``(B) may use such funds to carry out the activities 
        described in section 1202(c)(7)(B).

``SEC. 1205. EXTERNAL EVALUATION.

    ``(a) In General.--From funds reserved under section 1202(b)(1)(C), 
the Secretary shall contract with an independent organization outside 
of the Department for a 5-year, rigorous, scientifically valid, 
quantitative evaluation of this subpart.
    ``(b) Process.--The evaluation under subsection (a) shall be 
conducted by an organization that is capable of designing and carrying 
out an independent evaluation that identifies the effects of specific 
activities carried out by State educational agencies and local 
educational agencies under this subpart on improving reading 
instruction. Such evaluation shall take into account factors 
influencing student performance that are not controlled by teachers or 
education administrators.
    ``(c) Analysis.--The evaluation under subsection (a) 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 State 
    educational agencies and local educational agencies measure the 
    essential components of reading.
        ``(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 targeted 
    assistance grant under section 1204 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 screening, 
    diagnostic, and classroom-based instructional reading assessments 
    assist teachers in identifying specific reading deficiencies.
        ``(7) A measurement of the extent to which professional 
    development programs implemented by State educational agencies 
    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 State educational 
agencies and local educational agencies on a periodic basis for use in 
program improvement.

``SEC. 1206. NATIONAL ACTIVITIES.

    ``From funds reserved under section 1202(b)(1)(C), the Secretary--
        ``(1) may provide technical assistance in achieving the 
    purposes of this subpart to State educational agencies, local 
    educational agencies, and schools requesting such assistance;
        ``(2) 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); and
        ``(3) shall carry out the external evaluation as described in 
    section 1205.

``SEC. 1207. INFORMATION DISSEMINATION.

    ``(a) In General.--From funds reserved under section 1202(b)(1)(D), 
the National Institute for Literacy, in collaboration with the 
Secretary of Education, the Secretary of Health and Human Services, and 
the Director of 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 State educational agencies that have 
    effectively developed and implemented classroom reading programs 
    that meet the requirements of this subpart, including those State 
    educational agencies, local educational agencies, and schools that 
    have been identified as effective through the evaluation and peer 
    review provisions of this subpart; and
        ``(3) support the continued identification and dissemination of 
    information on reading programs that contain the essential 
    components of reading instruction as supported by scientifically 
    based reading research, that can lead to improved reading outcomes 
    for children, youth, and adults.
    ``(b) Dissemination and Coordination.--At a minimum, the National 
Institute for Literacy shall disseminate the information described in 
subsection (a) to--
        ``(1) recipients of Federal financial assistance under this 
    title, title III, the Head Start Act, the Individuals with 
    Disabilities Education Act, and the Adult Education and Family 
    Literacy Act; and
        ``(2) each Bureau funded school (as defined in section 1141 of 
    the Education Amendments of 1978).
    ``(c) Use of Existing Networks.--In carrying out this section, the 
National Institute for Literacy shall, to the extent practicable, use 
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.
    ``(d) National Institute for Literacy.--For purposes of funds 
reserved under section 1202(b)(1)(D) to carry out this section, the 
National Institute for Literacy shall administer such funds in 
accordance with section 242(b) of Public Law 105-220 (relating to the 
establishment and administration of the National Institute for 
Literacy).

``SEC. 1208. DEFINITIONS.

    ``In this subpart:
        ``(1) Eligible local educational agency.--The term `eligible 
    local educational agency' means a local educational agency that--
            ``(A) is among the local educational agencies in the State 
        with the highest numbers or percentages of students in 
        kindergarten through grade 3 reading below grade level, based 
        on the most currently available data; 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 a significant number or 
            percentage of schools that are identified for school 
            improvement under section 1116(b); or
                ``(iii) the highest numbers or percentages of children 
            who are counted under section 1124(c), in comparison to 
            other local educational agencies in the State.
        ``(2) Eligible professional development provider.--The term 
    `eligible professional development provider' means a provider of 
    professional development in reading instruction to teachers, 
    including special education teachers, that is based on 
    scientifically based reading research.
        ``(3) Essential components of reading instruction.--The term 
    `essential components of reading instruction' means explicit and 
    systematic instruction in--
            ``(A) phonemic awareness;
            ``(B) phonics;
            ``(C) vocabulary development;
            ``(D) reading fluency, including oral reading skills; and
            ``(E) reading comprehension strategies.
        ``(4) 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.
        ``(5) 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.
        ``(6) Scientifically based reading research.--The term 
    `scientifically based reading research' means research that--
            ``(A) applies rigorous, systematic, and objective 
        procedures to obtain valid knowledge relevant to reading 
        development, reading instruction, and reading difficulties; and
            ``(B) includes 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.
        ``(7) Screening, diagnostic, and classroom-based instructional 
    reading assessments.--
            ``(A) In general.--The term `screening, diagnostic, and 
        classroom-based instructional reading assessments' means--
                ``(i) screening reading assessments;
                ``(ii) diagnostic reading assessments; and
                ``(iii) classroom-based instructional reading 
            assessments.
            ``(B) Screening reading assessment.--The term `screening 
        reading assessment' means an assessment that is--
                ``(i) valid, reliable, and based on scientifically 
            based reading research; and
                ``(ii) a brief procedure designed as a first step in 
            identifying children who may be at high risk for delayed 
            development or academic failure and in need of further 
            diagnosis of their need for special services or additional 
            reading instruction.
            ``(C) Diagnostic reading assessment.--The term `diagnostic 
        reading assessment' means an assessment that is--
                ``(i) valid, reliable, and based on scientifically 
            based reading research; and
                ``(ii) used for the purpose of--

                    ``(I) identifying a child's specific areas of 
                strengths and weaknesses so that the child has learned 
                to read by the end of grade 3;
                    ``(II) determining any difficulties that a child 
                may have in learning to read and the potential cause of 
                such difficulties; and
                    ``(III) helping to determine possible reading 
                intervention strategies and related special needs.

            ``(D) Classroom-based instructional reading assessment.--
        The term `classroom-based instructional reading assessment' 
        means an assessment that--
                ``(i) evaluates children's learning based on systematic 
            observations by teachers of children performing academic 
            tasks that are part of their daily classroom experience; 
            and
                ``(ii) is used to improve instruction in reading, 
            including classroom instruction.

                    ``Subpart 2--Early Reading First

``SEC. 1221. PURPOSES; DEFINITIONS.

    ``(a) 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 
    reading 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 reading research that supports the age-
    appropriate development of--
            ``(A) recognition, leading to automatic recognition, of 
        letters of the alphabet;
            ``(B) knowledge of letter sounds, the blending of sounds, 
        and the use of increasingly complex vocabulary;
            ``(C) an understanding that written language is composed of 
        phonemes and letters each representing one or more speech 
        sounds that in combination make up syllables, words, and 
        sentences;
            ``(D) spoken language, including vocabulary and oral 
        comprehension abilities; and
            ``(E) knowledge of the purposes and conventions of print.
        ``(4) To use screening assessments to effectively identify 
    preschool age children who may be at risk for reading failure.
        ``(5) To integrate such scientific reading research-based 
    instructional materials and literacy activities with existing 
    programs of preschools, child care agencies and programs, Head 
    Start centers, and family literacy services.
    ``(b) Definitions.--For purposes of this subpart:
        ``(1) Eligible applicant.--The term `eligible applicant' 
    means--
            ``(A) one or more local educational agencies that are 
        eligible to receive a subgrant under subpart 1;
            ``(B) one or more public or private organizations or 
        agencies, acting on behalf of one 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 subparagraph 
        (A); or
            ``(C) one or more local educational agencies described in 
        subparagraph (A) in collaboration with one or more 
        organizations or agencies described in subparagraph (B).
        ``(2) Scientifically based reading research.--The term 
    `scientifically based reading research' has the same meaning given 
    to that term in section 1208.
        ``(3) Screening reading assessment.--The term `screening 
    reading assessment' has the same meaning given to that term in 
    section 1208.

``SEC. 1222. LOCAL EARLY READING FIRST GRANTS.

    ``(a) Program Authorized.--From amounts appropriated under section 
1002(b)(2), the Secretary shall award grants, on a competitive basis, 
for periods of not more than 6 years, to eligible applicants to enable 
the eligible applicants to carry out the authorized activities 
described in subsection (d).
    ``(b) 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 enhance the school 
    readiness of preschool age children in high-quality oral language 
    and literature-rich environments;
        ``(3) 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 
    reading research, for preschool age children;
        ``(4) how the proposed project will provide services and use 
    instructional materials that are based on scientifically based 
    reading research on early language acquisition, prereading 
    activities, and the development of spoken vocabulary skills;
        ``(5) how the proposed project will help staff in the programs 
    to meet more effectively the diverse needs of preschool age 
    children in the community, including such children with limited 
    English proficiency, disabilities, or other special needs;
        ``(6) how the proposed project will integrate such 
    instructional materials and literacy activities with existing 
    preschool programs and family literacy services;
        ``(7) how the proposed project will help children, particularly 
    children experiencing difficulty with spoken language, prereading, 
    and early reading skills, to make the transition from preschool to 
    formal classroom instruction in school;
        ``(8) if the eligible applicant has received a subgrant under 
    subpart 1, how the activities conducted under this subpart will be 
    coordinated with the eligible applicant's activities under subpart 
    1 at the kindergarten through grade 3 level;
        ``(9) 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
        ``(10) such other information as the Secretary may require.
    ``(c) Approval of Local Applications.--The Secretary shall select 
applicants for funding under this subpart based on the quality of the 
applications and the recommendations of a peer review panel convened 
under section 1203(c)(2), that includes, at a minimum, three 
individuals, selected from the entities described in clauses (ii), 
(iii), and (iv) of section 1203(c)(2)(A), who are experts in early 
reading development and early childhood development.
    ``(d) 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:
        ``(1) Providing preschool age children with high-quality oral 
    language and literature-rich environments in which to acquire 
    language and prereading skills.
        ``(2) Providing professional development that is based on 
    scientifically based reading 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--
            ``(A) recognition, leading to automatic recognition, of 
        letters of the alphabet, knowledge of letters, sounds, blending 
        of letter sounds, and increasingly complex vocabulary;
            ``(B) understanding that written language is composed of 
        phonemes and letters each representing one or more speech 
        sounds that in combination make up syllables, words, and 
        sentences;
            ``(C) spoken language, including vocabulary and oral 
        comprehension abilities; and
            ``(D) knowledge of the purposes and conventions of print.
        ``(3) Identifying and providing activities and instructional 
    materials that are based on scientifically based reading research 
    for use in developing the skills and abilities described in 
    paragraph (2).
        ``(4) Acquiring, providing training for, and implementing 
    screening reading assessments or other appropriate measures that 
    are based on scientifically based reading research to determine 
    whether preschool age children are developing the skills described 
    in this subsection.
        ``(5) Integrating such instructional materials, activities, 
    tools, and measures into the programs offered by the eligible 
    applicant.
    ``(e) Award Amounts.--The Secretary may establish a maximum award 
amount, or ranges of award amounts, for grants under this subpart.

``SEC. 1223. FEDERAL ADMINISTRATION.

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

``SEC. 1224. INFORMATION DISSEMINATION.

    ``From the funds the National Institute for Literacy receives under 
section 1202(b)(1)(D), the National Institute for Literacy, in 
consultation with the Secretary, shall disseminate information 
regarding projects assisted under this subpart that have proven 
effective.

``SEC. 1225. 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 research-based instruction, materials, and activities 
    being used in the programs funded under the grant;
        ``(2) the types of programs funded under the grant and the ages 
    of children served by such programs;
        ``(3) the qualifications of the program staff who provide early 
    literacy instruction under such programs and the type of ongoing 
    professional development provided to such staff; and
        ``(4) the results of the evaluation described in section 
    1222(b)(9).

``SEC. 1226. EVALUATION.

    ``(a) In General.--From the total amount made available under 
section 1002(b)(2) for the period beginning October 1, 2002, and ending 
September 30, 2006, the Secretary shall reserve not more than 
$3,000,000 to conduct an independent evaluation of the effectiveness of 
this subpart.
    ``(b) Reports.--
        ``(1) Interim report.--Not later than October 1, 2004, the 
    Secretary shall submit an interim report 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.
        ``(2) Final report.--Not later than September 30, 2006, the 
    Secretary shall submit a final report to the committees described 
    in paragraph (1).
    ``(c) Contents.--The reports submitted under subsection (b) shall 
include information on the following:
        ``(1) How the grant recipients under this subpart are improving 
    the prereading skills of preschool children.
        ``(2) The effectiveness of the professional development program 
    assisted under this subpart.
        ``(3) How early childhood teachers are being prepared with 
    scientifically based reading research on early reading development.
        ``(4) What activities and instructional practices are most 
    effective.
        ``(5) How prereading instructional materials and literacy 
    activities based on scientifically based reading research are being 
    integrated into preschools, child care agencies and programs, 
    programs carried out under the Head Start Act, and family literacy 
    programs.
        ``(6) Any recommendations on strengthening or modifying this 
    subpart.

  ``Subpart 3--William F. Goodling Even Start Family Literacy Programs

``SEC. 1231. STATEMENT OF PURPOSE.

    ``It is the purpose of this subpart to help break the cycle of 
poverty and illiteracy by--
        ``(1) improving the educational opportunities of the Nation's 
    low-income families by integrating early childhood education, adult 
    literacy or adult basic education, and parenting education into a 
    unified family literacy program, to be referred to as `Even Start'; 
    and
        ``(2) establishing a program that shall--
            ``(A) be implemented through cooperative projects that 
        build on high-quality existing community resources to create a 
        new range of services;
            ``(B) promote the academic achievement of children and 
        adults;
            ``(C) assist children and adults from low-income families 
        to achieve to challenging State content standards and 
        challenging State student achievement standards; and
            ``(D) use instructional programs based on scientifically 
        based reading research and addressing the prevention of reading 
        difficulties for children and adults, to the extent such 
        research is available.

``SEC. 1232. PROGRAM AUTHORIZED.

    ``(a) Reservation for Migrant Programs, Outlying Areas, and Indian 
Tribes.--
        ``(1) In general.--For each fiscal year, the Secretary shall 
    reserve 5 percent of the amount appropriated under section 
    1002(b)(3) (or, if such appropriated amount exceeds $200,000,000, 6 
    percent of such amount) for programs, under such terms and 
    conditions as the Secretary shall establish, that are consistent 
    with the purpose of this subpart, and according to their relative 
    needs, for--
            ``(A) children of migratory workers;
            ``(B) the outlying areas; and
            ``(C) Indian tribes and tribal organizations.
        ``(2) Special rule.--After December 21, 2000, the Secretary 
    shall award a grant, on a competitive basis, of sufficient size and 
    for a period of sufficient duration to demonstrate the 
    effectiveness of a family literacy program in a prison that houses 
    women and their preschool age children and that has the capability 
    of developing a program of high quality.
        ``(3) Coordination of programs for american indians.--The 
    Secretary shall ensure that programs under paragraph (1)(C) are 
    coordinated with family literacy programs operated by the Bureau of 
    Indian Affairs in order to avoid duplication and to encourage the 
    dissemination of information on high-quality family literacy 
    programs serving American Indians.
    ``(b) Reservation for Federal Activities.--
        ``(1) Evaluation, technical assistance, program improvement, 
    and replication activities.--Subject to paragraph (2), from amounts 
    appropriated under section 1002(b)(3), the Secretary may reserve 
    not more than 3 percent of such amounts for purposes of--
            ``(A) carrying out the evaluation required by section 1239; 
        and
            ``(B) providing, through grants or contracts with eligible 
        organizations, technical assistance, program improvement, and 
        replication activities.
        ``(2) Research.--In any fiscal year, if the amount appropriated 
    under section 1002(b)(3) for such year--
            ``(A) is equal to or less than the amount appropriated for 
        the preceding fiscal year, the Secretary may reserve from such 
        amount only the amount necessary to continue multi-year 
        activities carried out pursuant to section 1241(b) that began 
        during or prior to the fiscal year preceding the fiscal year 
        for which the determination is made; or
            ``(B) exceeds the amount appropriated for the preceding 
        fiscal year, then the Secretary shall reserve from such excess 
        amount $2,000,000 or 50 percent, whichever is less, to carry 
        out section 1241(b).
    ``(c) Reservation for Grants.--
        ``(1) Grants authorized.--
            ``(A) In general.--For any fiscal year for which at least 
        one State educational agency applies and submits an application 
        that meets the requirements and goals of this subsection and 
        for which the amount appropriated under section 1002(b)(3) 
        exceeds the amount appropriated under that section for the 
        preceding fiscal year, the Secretary shall reserve, from the 
        amount of the excess remaining after the application of 
        subsection (b)(2), the amount of the remainder or $1,000,000, 
        whichever is less, to award grants, on a competitive basis, to 
        State educational agencies to enable them to plan and implement 
        statewide family literacy initiatives to coordinate and, where 
        appropriate, integrate existing Federal, State, and local 
        literacy resources consistent with the purposes of this 
        subpart.
            ``(B) Coordination and integration.--The coordination and 
        integration described in subparagraph (A) shall include 
        coordination and integration of funds available under the Adult 
        Education and Family Literacy Act, the Head Start Act, this 
        subpart, part A of this title, and part A of title IV of the 
        Social Security Act.
            ``(C) Restriction.--No State educational agency may receive 
        more than one grant under this subsection.
        ``(2) Consortia.--
            ``(A) Establishment.--To receive a grant under this 
        subsection, a State educational agency shall establish a 
        consortium of State-level programs under the following 
        provisions of laws:
                ``(i) This title (other than part D).
                ``(ii) The Head Start Act.
                ``(iii) The Adult Education and Family Literacy Act.
                ``(iv) All other State-funded preschool programs and 
            programs providing literacy services to adults.
            ``(B) Plan.--To receive a grant under this subsection, the 
        consortium established by a State educational agency shall 
        create a plan to use a portion of the State educational 
        agency's resources, derived from the programs referred to in 
        subparagraph (A), to strengthen and expand family literacy 
        services in the State.
            ``(C) Coordination with subpart 1.--The consortium shall 
        coordinate its activities under this paragraph with the 
        activities of the reading and literacy partnership for the 
        State educational agency established under section 1203(d), if 
        the State educational agency receives a grant under section 
        1202.
        ``(3) Reading instruction.--Statewide family literacy 
    initiatives implemented under this subsection shall base reading 
    instruction on scientifically based reading research.
        ``(4) Technical assistance.--The Secretary shall provide, 
    directly or through a grant or contract with an organization with 
    experience in the development and operation of successful family 
    literacy services, technical assistance to State educational 
    agencies receiving a grant under this subsection.
        ``(5) Matching requirement.--The Secretary shall not make a 
    grant to a State educational agency under this subsection unless 
    the State educational agency agrees that, with respect to the costs 
    to be incurred by the eligible consortium in carrying out the 
    activities for which the grant was awarded, the State educational 
    agency will make available non-Federal contributions in an amount 
    equal to not less than the Federal funds provided under the grant.
    ``(d) State Educational Agency Allocation.--
        ``(1) In general.--From amounts appropriated under section 
    1002(b)(3) and not reserved under subsection (a), (b), or (c), the 
    Secretary shall make grants to State educational agencies from 
    allocations under paragraph (2).
        ``(2) Allocations.--Except as provided in paragraph (3), from 
    the total amount available under paragraph (1) for allocation to 
    State educational agencies in any fiscal year, each State 
    educational agency shall be eligible to receive a grant under 
    paragraph (1) in an amount that bears the same ratio to the total 
    amount as the amount allocated under part A to that State 
    educational agency bears to the total amount allocated under that 
    part to all State educational agencies.
        ``(3) Minimum.--No State educational agency shall receive a 
    grant under paragraph (1) in any fiscal year in an amount that is 
    less than $250,000, or one-half of 1 percent of the amount 
    appropriated under section 1002(b)(3) and not reserved under 
    subsections (a), (b), and (c) for such year, whichever is greater.
    ``(e) Definitions.--For the purpose of this subpart--
        ``(1) the term `eligible entity' means a partnership composed 
    of--
            ``(A) a local educational agency; and
            ``(B) a nonprofit community-based organization, a public 
        agency other than a local educational agency, an institution of 
        higher education, or a public or private nonprofit organization 
        other than a local educational agency, of demonstrated quality;
        ``(2) the term `eligible organization' means any public or 
    private nonprofit organization with a record of providing effective 
    services to family literacy providers, such as the National Center 
    for Family Literacy, Parents as Teachers, Inc., the Home 
    Instruction Program for Preschool Youngsters, and the Home and 
    School Institute, Inc.;
        ``(3) the terms `Indian tribe' and `tribal organization' have 
    the meanings given those terms in section 4 of the Indian Self-
    Determination and Education Assistance Act;
        ``(4) the term `scientifically based reading research' has the 
    meaning given that term in section 1208; and
        ``(5) the term `State' means each of the 50 States, the 
    District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 1233. STATE EDUCATIONAL AGENCY PROGRAMS.

    ``(a) State Educational Agency Level Activities.--Each State 
educational agency that receives a grant under section 1232(d)(1) may 
use not more than a total of 6 percent of the grant funds for the costs 
of--
        ``(1) administration, which amount shall not exceed half of the 
    total;
        ``(2) providing, through one or more subgrants or contracts, 
    technical assistance for program improvement and replication, to 
    eligible entities that receive subgrants under subsection (b); and
        ``(3) carrying out sections 1240 and 1234(c).
    ``(b) Subgrants for Local Programs.--
        ``(1) In general.--Each State educational agency shall use the 
    grant funds received under section 1232(d)(1) and not reserved 
    under subsection (a) to award subgrants to eligible entities to 
    carry out Even Start programs.
        ``(2) Minimum subgrant amounts.--
            ``(A) In general.--Except as provided in subparagraphs (B) 
        and (C), no State educational agency shall award a subgrant 
        under paragraph (1) in an amount less than $75,000.
            ``(B) Subgrantees in ninth and succeeding years.--No State 
        educational agency shall award a subgrant under paragraph (1) 
        in an amount less than $52,500 to an eligible entity for a 
        fiscal year to carry out an Even Start program that is 
        receiving assistance under this subpart or its predecessor 
        authority for the ninth (or any subsequent) fiscal year.
            ``(C) Exception for single subgrant.--A State educational 
        agency may award one subgrant in each fiscal year of sufficient 
        size, scope, and quality to be effective in an amount less than 
        $75,000 if, after awarding subgrants under paragraph (1) for 
        that fiscal year in accordance with subparagraphs (A) and (B), 
        less than $75,000 is available to the State educational agency 
        to award those subgrants.

``SEC. 1234. USES OF FUNDS.

    ``(a) In General.--In carrying out an Even Start program under this 
subpart, a recipient of funds under this subpart shall use those funds 
to pay the Federal share of the cost of providing intensive family 
literacy services that involve parents and children, from birth through 
age 7, in a cooperative effort to help parents become full partners in 
the education of their children and to assist children in reaching 
their full potential as learners.
    ``(b) Federal Share Limitation.--
        ``(1) In general.--
            ``(A) Federal share.--Except as provided in paragraph (2), 
        the Federal share under this subpart may not exceed--
                ``(i) 90 percent of the total cost of the program in 
            the first year that the program receives assistance under 
            this subpart or its predecessor authority;
                ``(ii) 80 percent in the second year;
                ``(iii) 70 percent in the third year;
                ``(iv) 60 percent in the fourth year;
                ``(v) 50 percent in the fifth, sixth, seventh, and 
            eighth such years; and
                ``(vi) 35 percent in any subsequent year.
            ``(B) Remaining cost.--The remaining cost of a program 
        assisted under this subpart may be provided in cash or in kind, 
        fairly evaluated, and may be obtained from any source, 
        including other Federal funds under this Act.
        ``(2) Waiver.--The State educational agency may waive, in whole 
    or in part, the Federal share described in paragraph (1) for an 
    eligible entity if the entity--
            ``(A) demonstrates that it otherwise would not be able to 
        participate in the program assisted under this subpart; and
            ``(B) negotiates an agreement with the State educational 
        agency with respect to the amount of the remaining cost to 
        which the waiver will be applicable.
        ``(3) Prohibition.--Federal funds provided under this subpart 
    may not be used for the indirect costs of a program assisted under 
    this subpart, except that the Secretary may waive this paragraph if 
    an eligible recipient of funds reserved under section 1232(a)(1)(C) 
    demonstrates to the Secretary's satisfaction that the recipient 
    otherwise would not be able to participate in the program assisted 
    under this subpart.
    ``(c) Use of Funds for Family Literacy Services.--
        ``(1) In general.--A State educational agency may use a portion 
    of funds reserved under section 1233(a), to assist eligible 
    entities receiving a subgrant under section 1233(b) in improving 
    the quality of family literacy services provided under Even Start 
    programs under this subpart, except that in no case may a State 
    educational agency's use of funds for this purpose for a fiscal 
    year result in a decrease from the level of activities and services 
    provided to program participants in the preceding year.
        ``(2) Priority.--In carrying out paragraph (1), a State 
    educational agency shall give priority to programs that were of low 
    quality, as evaluated based on the indicators of program quality 
    developed by the State educational agency under section 1240.
        ``(3) Technical assistance to help local programs raise 
    additional funds.--In carrying out paragraph (1), a State 
    educational agency may use the funds referred to in that paragraph 
    to provide technical assistance to help local programs of 
    demonstrated effectiveness to access and leverage additional funds 
    for the purpose of expanding services and reducing waiting lists, 
    including requesting and applying for non-Federal resources.
        ``(4) Technical assistance and training.--Assistance under 
    paragraph (1) shall be in the form of technical assistance and 
    training, provided by a State educational agency through a grant, 
    contract, or cooperative agreement with an entity that has 
    experience in offering high-quality training and technical 
    assistance to family literacy providers.

``SEC. 1235. PROGRAM ELEMENTS.

    ``Each program assisted under this subpart shall--
        ``(1) include the identification and recruitment of families 
    most in need of services provided under this subpart, as indicated 
    by a low level of income, a low level of adult literacy or English 
    language proficiency of the eligible parent or parents, and other 
    need-related indicators;
        ``(2) include screening and preparation of parents, including 
    teenage parents, and children to enable those parents and children 
    to participate fully in the activities and services provided under 
    this subpart, including testing, referral to necessary counselling, 
    other developmental and support services, and related services;
        ``(3) be designed to accommodate the participants' work 
    schedule and other responsibilities, including the provision of 
    support services, when those services are unavailable from other 
    sources, necessary for participation in the activities assisted 
    under this subpart, such as--
            ``(A) scheduling and locating of services to allow joint 
        participation by parents and children;
            ``(B) child care for the period that parents are involved 
        in the program provided under this subpart; and
            ``(C) transportation for the purpose of enabling parents 
        and their children to participate in programs authorized by 
        this subpart;
        ``(4) include high-quality, intensive instructional programs 
    that promote adult literacy and empower parents to support the 
    educational growth of their children, developmentally appropriate 
    early childhood educational services, and preparation of children 
    for success in regular school programs;
        ``(5) with respect to the qualifications of staff the cost of 
    whose salaries are paid, in whole or in part, with Federal funds 
    provided under this subpart, ensure that--
            ``(A) not later than December 21, 2004--
                ``(i) a majority of the individuals providing academic 
            instruction--

                    ``(I) shall have obtained an associate's, 
                bachelor's, or graduate degree in a field related to 
                early childhood education, elementary school or 
                secondary school education, or adult education; and
                    ``(II) if applicable, shall meet qualifications 
                established by the State for early childhood education, 
                elementary school or secondary school education, or 
                adult education provided as part of an Even Start 
                program or another family literacy program;

                ``(ii) the individual responsible for administration of 
            family literacy services under this subpart has received 
            training in the operation of a family literacy program; and
                ``(iii) paraprofessionals who provide support for 
            academic instruction have a secondary school diploma or its 
            recognized equivalent; and
            ``(B) all new personnel hired to provide academic 
        instruction--
                ``(i) have obtained an associate's, bachelor's, or 
            graduate degree in a field related to early childhood 
            education, elementary school or secondary school education, 
            or adult education; and
                ``(ii) if applicable, meet qualifications established 
            by the State for early childhood education, elementary 
            school or secondary school education, or adult education 
            provided as part of an Even Start program or another family 
            literacy program;
        ``(6) include special training of staff, including child-care 
    staff, to develop the skills necessary to work with parents and 
    young children in the full range of instructional services offered 
    through this subpart;
        ``(7) provide and monitor integrated instructional services to 
    participating parents and children through home-based programs;
        ``(8) operate on a year-round basis, including the provision of 
    some program services, including instructional and enrichment 
    services, during the summer months;
        ``(9) be coordinated with--
            ``(A) other programs assisted under this Act;
            ``(B) any relevant programs under the Adult Education and 
        Family Literacy Act, the Individuals with Disabilities 
        Education Act, and title I of the Workforce Investment Act of 
        1998; and
            ``(C) the Head Start program, volunteer literacy programs, 
        and other relevant programs;
        ``(10) use instructional programs based on scientifically based 
    reading research for children and adults, to the extent that 
    research is available;
        ``(11) encourage participating families to attend regularly and 
    to remain in the program a sufficient time to meet their program 
    goals;
        ``(12) include reading-readiness activities for preschool 
    children based on scientifically based reading research, to the 
    extent available, to ensure that children enter school ready to 
    learn to read;
        ``(13) if applicable, promote the continuity of family literacy 
    to ensure that individuals retain and improve their educational 
    outcomes;
        ``(14) ensure that the programs will serve those families most 
    in need of the activities and services provided by this subpart; 
    and
        ``(15) provide for an independent evaluation of the program, to 
    be used for program improvement.

``SEC. 1236. ELIGIBLE PARTICIPANTS.

    ``(a) In General.--Except as provided in subsection (b), eligible 
participants in an Even Start program are--
        ``(1) a parent or parents--
            ``(A) who are eligible for participation in adult education 
        and literacy activities under the Adult Education and Family 
        Literacy Act; or
            ``(B) who are within the State's compulsory school 
        attendance age range, so long as a local educational agency 
        provides (or ensures the availability of) the basic education 
        component required under this subpart, or who are attending 
        secondary school; and
        ``(2) the child or children, from birth through age 7, of any 
    individual described in paragraph (1).
    ``(b) Eligibility for Certain Other Participants.--
        ``(1) In general.--Family members of eligible participants 
    described in subsection (a) may participate in activities and 
    services provided under this subpart, when appropriate to serve the 
    purpose of this subpart.
        ``(2) Special rule.--Any family participating in a program 
    assisted under this subpart that becomes ineligible to participate 
    as a result of one or more members of the family becoming 
    ineligible to participate may continue to participate in the 
    program until all members of the family become ineligible to 
    participate, which--
            ``(A) in the case of a family in which ineligibility was 
        due to the child or children of the family attaining the age of 
        8, shall be in 2 years or when the parent or parents become 
        ineligible due to educational advancement, whichever occurs 
        first; and
            ``(B) in the case of a family in which ineligibility was 
        due to the educational advancement of the parent or parents of 
        the family, shall be when all children in the family attain the 
        age of 8.
        ``(3) Children 8 years of age or older.--If an Even Start 
    program assisted under this subpart collaborates with a program 
    under part A, and funds received under the part A program 
    contribute to paying the cost of providing programs under this 
    subpart to children 8 years of age or older, the Even Start program 
    may, notwithstanding subsection (a)(2), permit the participation of 
    children 8 years of age or older if the focus of the program 
    continues to remain on families with young children.

``SEC. 1237. APPLICATIONS.

    ``(a) Submission.--To be eligible to receive a subgrant under this 
subpart, an eligible entity shall submit an application to the State 
educational agency in such form and containing or accompanied by such 
information as the State educational agency shall require.
    ``(b) Required Documentation.--Each application shall include 
documentation, satisfactory to the State educational agency, that the 
eligible entity has the qualified personnel needed--
        ``(1) to develop, administer, and implement an Even Start 
    program under this subpart; and
        ``(2) to provide access to the special training necessary to 
    prepare staff for the program, which may be offered by an eligible 
    organization.
    ``(c) Plan.--
        ``(1) In general.--The application shall also include a plan of 
    operation and continuous improvement for the program, that 
    includes--
            ``(A) a description of the program objectives, strategies 
        to meet those objectives, and how those strategies and 
        objectives are consistent with the program indicators 
        established by the State;
            ``(B) a description of the activities and services that 
        will be provided under the program, including a description of 
        how the program will incorporate the program elements required 
        by section 1235;
            ``(C) a description of the population to be served and an 
        estimate of the number of participants to be served;
            ``(D) as appropriate, a description of the applicant's 
        collaborative efforts with institutions of higher education, 
        community-based organizations, the State educational agency, 
        private elementary schools, or other eligible organizations in 
        carrying out the program for which assistance is sought;
            ``(E) a statement of the methods that will be used--
                ``(i) to ensure that the programs will serve families 
            most in need of the activities and services provided by 
            this subpart;
                ``(ii) to provide services under this subpart to 
            individuals with special needs, such as individuals with 
            limited English proficiency and individuals with 
            disabilities; and
                ``(iii) to encourage participants to remain in the 
            program for a time sufficient to meet the program's 
            purpose;
            ``(F) a description of how the plan is integrated with 
        other programs under this Act or other Acts, as appropriate; 
        and
            ``(G) a description of how the plan provides for rigorous 
        and objective evaluation of progress toward the program 
        objectives described in subparagraph (A) and for continuing use 
        of evaluation data for program improvement.
        ``(2) Duration of the plan.--Each plan submitted under 
    paragraph (1) shall--
            ``(A) remain in effect for the duration of the eligible 
        entity's participation under this subpart; and
            ``(B) be periodically reviewed and revised by the eligible 
        entity as necessary.
    ``(d) Consolidated Application.--The plan described in subsection 
(c)(1) may be submitted as part of a consolidated application under 
section 9305.

``SEC. 1238. AWARD OF SUBGRANTS.

    ``(a) Selection Process.--
        ``(1) In general.--The State educational agency shall establish 
    a review panel in accordance with paragraph (3) that will approve 
    applications that--
            ``(A) are most likely to be successful in--
                ``(i) meeting the purpose of this subpart; and
                ``(ii) effectively implementing the program elements 
            required under section 1235;
            ``(B) demonstrate that the area to be served by the program 
        has a high percentage or a large number of children and 
        families who are in need of those services as indicated by high 
        levels of poverty, illiteracy, unemployment, limited English 
        proficiency, or other need-related indicators, such as a high 
        percentage of children to be served by the program who reside 
        in a school attendance area served by a local educational 
        agency eligible for participation in programs under part A, a 
        high number or percentage of parents who have been victims of 
        domestic violence, or a high number or percentage of parents 
        who are receiving assistance under a State program funded under 
        part A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.);
            ``(C) provide services for at least a 3-year age range, 
        which may begin at birth;
            ``(D) demonstrate the greatest possible cooperation and 
        coordination between a variety of relevant service providers in 
        all phases of the program;
            ``(E) include cost-effective budgets, given the scope of 
        the application;
            ``(F) demonstrate the applicant's ability to provide the 
        non-Federal share required by section 1234(b);
            ``(G) are representative of urban and rural regions of the 
        State; and
            ``(H) show the greatest promise for providing models that 
        may be adopted by other family literacy projects and other 
        local educational agencies.
        ``(2) Priority for subgrants.--The State educational agency 
    shall give priority for subgrants under this subsection to 
    applications that--
            ``(A) target services primarily to families described in 
        paragraph (1)(B); or
            ``(B) are located in areas designated as empowerment zones 
        or enterprise communities.
        ``(3) Review panel.--A review panel shall consist of at least 
    three members, including one early childhood professional, one 
    adult education professional, and one individual with expertise in 
    family literacy programs, and may include other individuals, such 
    as one or more of the following:
            ``(A) A representative of a parent-child education 
        organization.
            ``(B) A representative of a community-based literacy 
        organization.
            ``(C) A member of a local board of education.
            ``(D) A representative of business and industry with a 
        commitment to education.
            ``(E) An individual who has been involved in the 
        implementation of programs under this title in the State.
    ``(b) Duration.--
        ``(1) In general.--Subgrants under this subpart may be awarded 
    for a period not to exceed 4 years.
        ``(2) Startup period.--The State educational agency may provide 
    subgrant funds to an eligible recipient, at the recipient's 
    request, for a 3- to 6-month start-up period during the first year 
    of the 4-year grant period, which may include staff recruitment and 
    training, and the coordination of services, before requiring full 
    implementation of the program.
        ``(3) Continuing eligibility.--In awarding subgrant funds to 
    continue a program under this subpart after the first year, the 
    State educational agency shall review the progress of each eligible 
    entity in meeting the objectives of the program referred to in 
    section 1237(c)(1)(A) and shall evaluate the program based on the 
    indicators of program quality developed by the State under section 
    1240.
        ``(4) Insufficient progress.--The State educational agency may 
    refuse to award subgrant funds to an eligible entity if the agency 
    finds that the eligible entity has not sufficiently improved the 
    performance of the program, as evaluated based on the indicators of 
    program quality developed by the State under section 1240, after--
            ``(A) providing technical assistance to the eligible 
        entity; and
            ``(B) affording the eligible entity notice and an 
        opportunity for a hearing.
        ``(5) Grant renewal.--(A) An eligible entity that has 
    previously received a subgrant under this subpart may reapply under 
    this subpart for additional subgrants.
        ``(B) The Federal share of any subgrant renewed under 
    subparagraph (A) shall be limited in accordance with section 
    1234(b).

``SEC. 1239. EVALUATION.

    ``From funds reserved under section 1232(b)(1), the Secretary shall 
provide for an independent evaluation of programs assisted under this 
subpart--
        ``(1) to determine the performance and effectiveness of 
    programs assisted under this subpart;
        ``(2) to identify effective Even Start programs assisted under 
    this subpart that can be duplicated and used in providing technical 
    assistance to Federal, State, and local programs; and
        ``(3) to provide State educational agencies and eligible 
    entities receiving a subgrant under this subpart, directly or 
    through a grant or contract with an organization with experience in 
    the development and operation of successful family literacy 
    services, technical assistance to ensure that local evaluations 
    undertaken under section 1235(15) provide accurate information on 
    the effectiveness of programs assisted under this subpart.

``SEC. 1240. INDICATORS OF PROGRAM QUALITY.

    ``Each State educational agency receiving funds under this subpart 
shall develop, based on the best available research and evaluation 
data, indicators of program quality for programs assisted under this 
subpart. The indicators shall be used to monitor, evaluate, and improve 
those programs within the State. The indicators shall include the 
following:
        ``(1) With respect to eligible participants in a program who 
    are adults--
            ``(A) achievement in the areas of reading, writing, 
        English-language acquisition, problem solving, and numeracy;
            ``(B) receipt of a secondary school diploma or a general 
        equivalency diploma (GED);
            ``(C) entry into a postsecondary school, job retraining 
        program, or employment or career advancement, including the 
        military; and
            ``(D) such other indicators as the State may develop.
        ``(2) With respect to eligible participants in a program who 
    are children--
            ``(A) improvement in ability to read on grade level or 
        reading readiness;
            ``(B) school attendance;
            ``(C) grade retention and promotion; and
            ``(D) such other indicators as the State may develop.

``SEC. 1241. RESEARCH.

    ``(a) In General.--The Secretary shall carry out, through grant or 
contract, research into the components of successful family literacy 
services, in order to--
        ``(1) improve the quality of existing programs assisted under 
    this subpart or other family literacy programs carried out under 
    this Act or the Adult Education and Family Literacy Act; and
        ``(2) develop models for new programs to be carried out under 
    this Act or the Adult Education and Family Literacy Act.
    ``(b) Scientifically Based Research on Family Literacy.--
        ``(1) In general.--From amounts reserved under section 
    1232(b)(2), the National Institute for Literacy, in consultation 
    with the Secretary, shall carry out research that--
            ``(A) is scientifically based reading research; and
            ``(B) determines--
                ``(i) the most effective ways of improving the literacy 
            skills of adults with reading difficulties; and
                ``(ii) how family literacy services can best provide 
            parents with the knowledge and skills the parents need to 
            support their children's literacy development.
        ``(2) Use of expert entity.--The National Institute for 
    Literacy, in consultation with the Secretary, shall carry out the 
    research under paragraph (1) through an entity, including a Federal 
    agency, that has expertise in carrying out longitudinal studies of 
    the development of literacy skills in children and has developed 
    effective interventions to help children with reading difficulties.
    ``(c) Dissemination.--The National Institute for Literacy shall 
disseminate, pursuant to section 1207, the results of the research 
described in subsections (a) and (b) to State educational agencies and 
recipients of subgrants under this subpart.

``SEC. 1242. CONSTRUCTION.

    ``Nothing in this subpart shall be construed to prohibit a 
recipient of funds under this subpart from serving students 
participating in Even Start simultaneously with students with similar 
educational needs, in the same educational settings where appropriate.

        ``Subpart 4--Improving Literacy Through School Libraries

``SEC. 1251. IMPROVING LITERACY THROUGH SCHOOL LIBRARIES.

    ``(a) Purposes.--The purpose of this subpart is to improve literacy 
skills and academic achievement of students by providing students with 
increased access to up-to-date school library materials, a well-
equipped, technologically advanced school library media center, and 
well-trained, professionally certified school library media 
specialists.
    ``(b) Reservation.--From the funds appropriated under section 
1002(b)(4) for a fiscal year, the Secretary shall reserve--
        ``(1) one-half of 1 percent to award assistance under this 
    section to the Bureau of Indian Affairs to carry out activities 
    consistent with the purpose of this subpart; and
        ``(2) one-half of 1 percent to award assistance under this 
    section to the outlying areas according to their respective needs 
    for assistance under this subpart.
    ``(c) Grants.--
        ``(1) Competitive grants to eligible local educational 
    agencies.--If the amount of funds appropriated under section 
    1002(b)(4) for a fiscal year is less than $100,000,000, then the 
    Secretary shall award grants, on a competitive basis, to eligible 
    local educational agencies under subsection (e).
        ``(2) Formula grants to states.--If the amount of funds 
    appropriated under section 1002(b)(4) for a fiscal year equals or 
    exceeds $100,000,000, then the Secretary shall award grants to 
    State educational agencies from allotments under subsection (d).
        ``(3) Definition of eligible local educational agency.--In this 
    section the term `eligible local educational agency' means--
            ``(A) in the case of a local educational agency receiving 
        assistance made available under paragraph (1), a local 
        educational agency in which 20 percent of the students served 
        by the local educational agency are from families with incomes 
        below the poverty line; and
            ``(B) in the case of a local educational agency receiving 
        assistance from State allocations made available under 
        paragraph (2), a local educational agency in which--
                ``(i) 15 percent of the students who are served by the 
            local educational agency are from such families; or
                ``(ii) the percentage of students from such families 
            who are served by the local educational agency is greater 
            than the statewide percentage of children from such 
            families.
    ``(d) State Grants.--
        ``(1) Allotments.--From funds made available under subsection 
    (c)(2) and not reserved under subsections (b) and (j) for a fiscal 
    year, the Secretary shall allot to each State educational agency 
    having an application approved under subsection (f)(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.
        ``(2) Competitive grants to eligible local educational 
    agencies.--Each State educational agency receiving an allotment 
    under paragraph (1) for a fiscal year--
            ``(A) may reserve not more than 3 percent of the allotted 
        funds 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
            ``(B) shall use the allotted funds that remain after making 
        the reservation under subparagraph (A) to award grants, for a 
        period of 1 year, on a competitive basis, to eligible local 
        educational agencies in the State that have an application 
        approved under subsection (f)(2) for activities described in 
        subsection (g).
        ``(3) Reallotment.--If a State educational agency does not 
    apply for an allotment under this section for any fiscal year, or 
    if the State educational agency's application is not approved, the 
    Secretary shall reallot the amount of the State educational 
    agency's allotment to the remaining State educational agencies in 
    accordance with paragraph (1).
    ``(e) Direct Competitive Grants to Eligible Local Educational 
Agencies.--
        ``(1) In general.--From amounts made available under subsection 
    (c)(1) and not reserved under subsections (b) and (j) for a fiscal 
    year, the Secretary shall award grants, on a competitive basis, to 
    eligible local educational agencies that have applications approved 
    under subsection (f)(2) for activities described in subsection (g).
        ``(2) Duration.--The Secretary shall award grants under this 
    subsection for a period of 1 year.
        ``(3) Distribution.--The Secretary shall ensure that grants 
    under this subsection are equitably distributed among the different 
    geographic regions of the United States, and among local 
    educational agencies serving urban and rural areas.
    ``(f) 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 eligible 
        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 eligible local 
        educational agencies to determine the need for technical 
        assistance and whether to continue to provide additional 
        funding to the agencies under this section.
        ``(2) Eligible local educational agency.--Each eligible local 
    educational agency desiring assistance under this section shall 
    submit to the Secretary or State educational agency, as 
    appropriate, an application at such time, in such manner, and 
    containing such information as the Secretary or State educational 
    agency, respectively, 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 
        eligible local educational agency;
            ``(B) the manner in which the eligible local educational 
        agency will use the funds made available through the grant to 
        carry out the activities described in subsection (g);
            ``(C) how the eligible 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 eligible local 
        educational agency will carry out the activities described in 
        subsection (g) using programs and materials that are grounded 
        in scientifically based research;
            ``(D) the manner in which the eligible 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
            ``(E) the manner in which the eligible 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 eligible local educational agency.
    ``(g) Local Activities.--Funds under this section may be used to--
        ``(1) acquire up-to-date school library media resources, 
    including books;
        ``(2) acquire and use 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 section 
    1222(d)(2) 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.
    ``(h) Accountability and Reporting.--
        ``(1) Local reports.--Each eligible local educational agency 
    that receives funds under this section for a fiscal year shall 
    report to the Secretary or State educational agency, as 
    appropriate, on how the funding was used and the extent to which 
    the availability of, the access to, and the use of, up-to-date 
    school library media resources in the elementary schools and 
    secondary schools served by the eligible local educational agency 
    was increased.
        ``(2) State report.--Each State educational agency that 
    receives funds under this section shall compile the reports 
    received under paragraph (1) and submit the compiled reports to the 
    Secretary.
    ``(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.--
        ``(1) Evaluations.--From the funds appropriated under section 
    1002(b)(4) 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 and their impact on 
    improving the reading skills of students. The evaluations shall be 
    conducted not later than 3 years after the date of enactment of the 
    No Child Left Behind Act of 2001, and biennially thereafter.
        ``(2) Report to congress.--The Secretary shall transmit the 
    State reports received under subsection (h)(2) and the evaluations 
    conducted under paragraph (1) 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.

               ``PART C--EDUCATION OF MIGRATORY CHILDREN

``SEC. 1301. PROGRAM PURPOSE.

    ``It is the purpose of this part to assist States to--
        ``(1) support high-quality and comprehensive educational 
    programs for migratory children to help reduce the educational 
    disruptions and other problems that result from repeated moves;
        ``(2) ensure that migratory children who move among the States 
    are not penalized in any manner by disparities among the States in 
    curriculum, graduation requirements, and State academic content and 
    student academic achievement standards;
        ``(3) ensure that migratory children are provided with 
    appropriate educational services (including supportive services) 
    that address their special needs in a coordinated and efficient 
    manner;
        ``(4) ensure that migratory children receive full and 
    appropriate opportunities to meet the same challenging State 
    academic content and student academic achievement standards that 
    all children are expected to meet;
        ``(5) design programs to help migratory children overcome 
    educational disruption, cultural and language barriers, social 
    isolation, various health-related problems, and other factors that 
    inhibit the ability of such children to do well in school, and to 
    prepare such children to make a successful transition to 
    postsecondary education or employment; and
        ``(6) ensure that migratory children benefit from State and 
    local systemic reforms.

``SEC. 1302. PROGRAM AUTHORIZED.

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

``SEC. 1303. STATE ALLOCATIONS.

    ``(a) State Allocations.--
        ``(1) Fiscal year 2002.--For fiscal year 2002, each State 
    (other than the Commonwealth of Puerto Rico) is entitled to receive 
    under this part an amount equal to--
            ``(A) the sum of the estimated number of migratory children 
        aged 3 through 21 who reside in the State full time and the 
        full-time equivalent of the estimated number of migratory 
        children aged 3 through 21 who reside in the State part time, 
        as determined in accordance with subsection (e); multiplied by
            ``(B) 40 percent of the average per-pupil expenditure in 
        the State, except that the amount determined under this 
        paragraph shall not be less than 32 percent, nor more than 48 
        percent, of the average per-pupil expenditure in the United 
        States.
        ``(2) Subsequent years.--
            ``(A) Base amount.--
                ``(i) In general.--Except as provided in subsection (b) 
            and clause (ii), each State (other than the Commonwealth of 
            Puerto Rico) is entitled to receive under this part, for 
            fiscal year 2003 and succeeding fiscal years, an amount 
            equal to--

                    ``(I) the amount that such State received under 
                this part for fiscal year 2002; plus
                    ``(II) the amount allocated to the State under 
                subparagraph (B).

                ``(ii) Nonparticipating states.--In the case of a State 
            (other than the Commonwealth of Puerto Rico) that did not 
            receive any funds for fiscal year 2002 under this part, the 
            State shall receive, for fiscal year 2003 and succeeding 
            fiscal years, an amount equal to--

                    ``(I) the amount that such State would have 
                received under this part for fiscal year 2002 if its 
                application under section 1304 for the year had been 
                approved; plus
                    ``(II) the amount allocated to the State under 
                subparagraph (B).

            ``(B) Allocation of additional amount.--For fiscal year 
        2003 and succeeding fiscal years, the amount (if any) by which 
        the funds appropriated to carry out this part for the year 
        exceed such funds for fiscal year 2002 shall be allocated to a 
        State (other than the Commonwealth of Puerto Rico) so that the 
        State receives an amount equal to--
                ``(i) the sum of--

                    ``(I) the number of identified eligible migratory 
                children, aged 3 through 21, residing in the State 
                during the previous year; and
                    ``(II) the number of identified eligible migratory 
                children, aged 3 through 21, who received services 
                under this part in summer or intersession programs 
                provided by the State during such year; multiplied by

                ``(ii) 40 percent of the average per-pupil expenditure 
            in the State, except that the amount determined under this 
            clause may not be less than 32 percent, or more than 48 
            percent, of the average per-pupil expenditure in the United 
            States.
    ``(b) Allocation to Puerto Rico.--
        ``(1) In general.--For each fiscal year, the grant which the 
    Commonwealth of Puerto Rico shall be eligible to receive under this 
    part shall be the amount determined by multiplying the number of 
    children who would be counted under subsection (a)(1)(A) if such 
    subsection applied to the Commonwealth of Puerto Rico by the 
    product of--
            ``(A) the percentage which the average per-pupil 
        expenditure in the Commonwealth of Puerto Rico is of the lowest 
        average per-pupil expenditure of any of the 50 States; and
            ``(B) 32 percent of the average per-pupil expenditure in 
        the United States.
        ``(2) Minimum percentage.--The percentage in paragraph (1)(A) 
    shall not be less than--
            ``(A) for fiscal year 2002, 77.5 percent;
            ``(B) for fiscal year 2003, 80.0 percent;
            ``(C) for fiscal year 2004, 82.5 percent; and
            ``(D) for fiscal year 2005 and succeeding fiscal years, 
        85.0 percent.
        ``(3) Limitation.--If the application of paragraph (2) for any 
    fiscal year would result in any of the 50 States or the District of 
    Columbia receiving less under this part than it received under this 
    part for the preceding fiscal year, then the percentage described 
    in paragraph (1)(A) that is used for the Commonwealth of Puerto 
    Rico for the fiscal year for which the determination is made shall 
    be the greater of the percentage in paragraph (1)(A) for such 
    fiscal year or the percentage used for the preceding fiscal year.
    ``(c) Ratable Reductions; Reallocations.--
        ``(1) In general.--(A) If, after the Secretary reserves funds 
    under section 1308(c), the amount appropriated to carry out this 
    part for any fiscal year is insufficient to pay in full the amounts 
    for which all States are eligible, the Secretary shall ratably 
    reduce each such amount.
        ``(B) If additional funds become available for making such 
    payments for any fiscal year, the Secretary shall allocate such 
    funds to States in amounts that the Secretary determines will best 
    carry out the purpose of this part.
        ``(2) Special rule.--(A) The Secretary shall further reduce the 
    amount of any grant to a State under this part for any fiscal year 
    if the Secretary determines, based on available information on the 
    numbers and needs of migratory children in the State and the 
    program proposed by the State to address such needs, that such 
    amount exceeds the amount required under section 1304.
        ``(B) The Secretary shall reallocate such excess funds to other 
    States whose grants under this part would otherwise be insufficient 
    to provide an appropriate level of services to migratory children, 
    in such amounts as the Secretary determines are appropriate.
    ``(d) Consortium Arrangements.--
        ``(1) In general.--In the case of a State that receives a grant 
    of $1,000,000 or less under this section, the Secretary shall 
    consult with the State educational agency to determine whether 
    consortium arrangements with another State or other appropriate 
    entity would result in delivery of services in a more effective and 
    efficient manner.
        ``(2) Proposals.--Any State, regardless of the amount of such 
    State's allocation, may submit a consortium arrangement to the 
    Secretary for approval.
        ``(3) Approval.--The Secretary shall approve a consortium 
    arrangement under paragraph (1) or (2) if the proposal demonstrates 
    that the arrangement will--
            ``(A) reduce administrative costs or program function costs 
        for State programs; and
            ``(B) make more funds available for direct services to add 
        substantially to the welfare or educational attainment of 
        children to be served under this part.
    ``(e) Determining Numbers of Eligible Children.--In order to 
determine the estimated number of migratory children residing in each 
State for purposes of this section, the Secretary shall--
        ``(1) use such information as the Secretary finds most 
    accurately reflects the actual number of migratory children;
        ``(2) develop and implement a procedure for more accurately 
    reflecting cost factors for different types of summer and 
    intersession program designs;
        ``(3) adjust the full-time equivalent number of migratory 
    children who reside in each State to take into account--
            ``(A) the special needs of those children participating in 
        special programs provided under this part that operate during 
        the summer and intersession periods; and
            ``(B) the additional costs of operating such programs; and
        ``(4) conduct an analysis of the options for adjusting the 
    formula so as to better direct services to the child whose 
    education has been interrupted.

``SEC. 1304. STATE APPLICATIONS; SERVICES.

    ``(a) Application Required.--Any State desiring to receive a grant 
under this part for any fiscal year shall submit an application to the 
Secretary at such time and in such manner as the Secretary may require.
    ``(b) Program Information.--Each such application shall include--
        ``(1) a description of how, in planning, implementing, and 
    evaluating programs and projects assisted under this part, the 
    State and its local operating agencies will ensure that the special 
    educational needs of migratory children, including preschool 
    migratory children, are identified and addressed through--
            ``(A) the full range of services that are available for 
        migratory children from appropriate local, State, and Federal 
        educational programs;
            ``(B) joint planning among local, State, and Federal 
        educational programs serving migrant children, including 
        language instruction educational programs under part A or B of 
        title III;
            ``(C) the integration of services available under this part 
        with services provided by those other programs; and
            ``(D) measurable program goals and outcomes;
        ``(2) a description of the steps the State is taking to provide 
    all migratory students with the opportunity to meet the same 
    challenging State academic content standards and challenging State 
    student academic achievement standards that all children are 
    expected to meet;
        ``(3) a description of how the State will use funds received 
    under this part to promote interstate and intrastate coordination 
    of services for migratory children, including how, consistent with 
    procedures the Secretary may require, the State will provide for 
    educational continuity through the timely transfer of pertinent 
    school records, including information on health, when children move 
    from one school to another, whether or not such move occurs during 
    the regular school year;
        ``(4) a description of the State's priorities for the use of 
    funds received under this part, and how such priorities relate to 
    the State's assessment of needs for services in the State;
        ``(5) a description of how the State will determine the amount 
    of any subgrants the State will award to local operating agencies, 
    taking into account the numbers and needs of migratory children, 
    the requirements of subsection (d), and the availability of funds 
    from other Federal, State, and local programs;
        ``(6) such budgetary and other information as the Secretary may 
    require; and
        ``(7) a description of how the State will encourage programs 
    and projects assisted under this part to offer family literacy 
    services if the program or project serves a substantial number of 
    migratory children who have parents who do not have a high school 
    diploma or its recognized equivalent or who have low levels of 
    literacy.
    ``(c) Assurances.--Each such application shall also include 
assurances, satisfactory to the Secretary, that--
        ``(1) funds received under this part will be used only--
            ``(A) for programs and projects, including the acquisition 
        of equipment, in accordance with section 1306; and
            ``(B) to coordinate such programs and projects with similar 
        programs and projects within the State and in other States, as 
        well as with other Federal programs that can benefit migratory 
        children and their families;
        ``(2) such programs and projects will be carried out in a 
    manner consistent with the objectives of section 1114, subsections 
    (b) and (d) of section 1115, subsections (b) and (c) of section 
    1120A, and part I;
        ``(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 1 school 
    year in duration, and that all such programs and projects are 
    carried out--
            ``(A) in a manner that provides for the same parental 
        involvement as is required for programs and projects under 
        section 1118, unless extraordinary circumstances make such 
        provision impractical; and
            ``(B) in a format and language understandable to the 
        parents;
        ``(4) in planning and carrying out such programs and projects, 
    there has been, and will be, adequate provision for addressing the 
    unmet education needs of preschool migratory children;
        ``(5) the effectiveness of such programs and projects will be 
    determined, where feasible, using the same approaches and standards 
    that will be used to assess the performance of students, schools, 
    and local educational agencies under part A;
        ``(6) to the extent feasible, such programs and projects will 
    provide for--
            ``(A) advocacy and outreach activities for migratory 
        children and their families, including informing such children 
        and families of, or helping such children and families gain 
        access to, other education, health, nutrition, and social 
        services;
            ``(B) professional development programs, including 
        mentoring, for teachers and other program personnel;
            ``(C) family literacy programs, including such programs 
        that use models developed under Even Start;
            ``(D) the integration of information technology into 
        educational and related programs; and
            ``(E) programs to facilitate the transition of secondary 
        school students to postsecondary education or employment; and
        ``(7) the State will assist the Secretary in determining the 
    number of migratory children under paragraphs (1)(A) and (2)(B)(i) 
    of section 1303(a), through such procedures as the Secretary may 
    require.
    ``(d) Priority for Services.--In providing services with funds 
received under this part, each recipient of such funds shall give 
priority to migratory children who are failing, or most at risk of 
failing, to meet the State's challenging State academic content 
standards and challenging State student academic achievement standards, 
and whose education has been interrupted during the regular school 
year.
    ``(e) Continuation of Services.--Notwithstanding any other 
provision of this part--
        ``(1) a child who ceases to be a migratory child during a 
    school term shall be eligible for services until the end of such 
    term;
        ``(2) a child who is no longer a migratory child may continue 
    to receive services for 1 additional school year, but only if 
    comparable services are not available through other programs; and
        ``(3) secondary school students who were eligible for services 
    in secondary school may continue to be served through credit 
    accrual programs until graduation.

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

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

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

    ``(a) Comprehensive Plan.--
        ``(1) In general.--Each State that receives assistance under 
    this part shall ensure that the State and its local operating 
    agencies identify and address the special educational needs of 
    migratory children in accordance with a comprehensive State plan 
    that--
            ``(A) is integrated with other programs under this Act or 
        other Acts, as appropriate;
            ``(B) may be submitted as a part of a consolidated 
        application under section 9302, 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 plan is not used to 
            supplant State efforts regarding, or administrative funding 
            for, this part;
            ``(C) provides that migratory children will have an 
        opportunity to meet the same challenging State academic content 
        standards and challenging State student academic achievement 
        standards that all children are expected to meet;
            ``(D) specifies measurable program goals and outcomes;
            ``(E) encompasses the full range of services that are 
        available for migratory children from appropriate local, State, 
        and Federal educational programs;
            ``(F) is the product of joint planning among such local, 
        State, and Federal programs, including programs under part A, 
        early childhood programs, and language instruction educational 
        programs under part A or B of title III; and
            ``(G) provides for the integration of services available 
        under this part with services provided by such other programs.
        ``(2) Duration of the plan.--Each such comprehensive 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.
    ``(b) Authorized Activities.--
        ``(1) Flexibility.--In implementing the comprehensive plan 
    described in subsection (a), each State educational agency, where 
    applicable through its local educational agencies, shall have the 
    flexibility to determine the activities to be provided with funds 
    made available under this part, except that such funds first shall 
    be used to meet the identified needs of migratory children that 
    result from their migratory lifestyle, and to permit these children 
    to participate effectively in school.
        ``(2) Unaddressed needs.--Funds provided under this part shall 
    be used to address the needs of migratory children that are not 
    addressed by services available from other Federal or non-Federal 
    programs, except that migratory children who are eligible to 
    receive services under part A may receive those services through 
    funds provided under that part, or through funds under this part 
    that remain after the agency addresses the needs described in 
    paragraph (1).
        ``(3) Construction.--Nothing in this part shall be construed to 
    prohibit a local educational agency from serving migratory children 
    simultaneously with students with similar educational needs in the 
    same educational settings, where appropriate.
        ``(4) Special rule.--Notwithstanding section 1114, a school 
    that receives funds under this part shall continue to address the 
    identified needs described in paragraph (1), and shall meet the 
    special educational needs of migratory children before using funds 
    under this part for schoolwide programs under section 1114.

``SEC. 1307. BYPASS.

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

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

    ``(a) Improvement of Coordination.--
        ``(1) In general.--The Secretary, in consultation with the 
    States, may make grants to, or enter into contracts with, State 
    educational agencies, local educational agencies, institutions of 
    higher education, and other public and private nonprofit entities 
    to improve the interstate and intrastate coordination among such 
    agencies' educational programs, including the establishment or 
    improvement of programs for credit accrual and exchange, available 
    to migratory students.
        ``(2) Duration.--Grants under this subsection may be awarded 
    for not more than 5 years.
    ``(b) Student Records.--
        ``(1) Assistance.--The Secretary shall assist States in 
    developing effective methods for the electronic transfer of student 
    records and in determining the number of migratory children in each 
    State.
        ``(2) Information system.--
            ``(A) In general.--The Secretary, in consultation with the 
        States, shall ensure the linkage of migrant student record 
        systems for the purpose of electronically exchanging, among the 
        States, health and educational information regarding all 
        migratory students. The Secretary shall ensure such linkage 
        occurs in a cost-effective manner, utilizing systems used by 
        the States prior to, or developed after, the date of enactment 
        of the No Child Left Behind Act of 2001, and shall determine 
        the minimum data elements that each State receiving funds under 
        this part shall collect and maintain. Such elements 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 section 1111(b);
                ``(iii) other academic information essential to 
            ensuring that migratory children achieve to high standards; 
            and
                ``(iv) eligibility for services under the Individuals 
            with Disabilities Education Act.
            ``(B) Notice and comment.--After consulting with the States 
        under subparagraph (A), the Secretary shall publish 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 migratory student information and the requirements 
        that States shall meet for immediate electronic access to such 
        information. Such publication shall occur not later than 120 
        days after the date of enactment of the No Child Left Behind 
        Act of 2001.
        ``(3) No cost for certain transfers.--A State educational 
    agency or local educational agency receiving assistance under this 
    part shall make student records available to another State 
    educational agency or local educational agency that requests the 
    records at no cost to the requesting agency, if the request is made 
    in order to meet the needs of a migratory child.
        ``(4) Report to congress.--
            ``(A) In general.--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 the 
        maintenance and transfer of health and educational information 
        for migratory students by the States.
            ``(B) Required contents.--The Secretary shall include in 
        such report--
                ``(i) a review of the progress of States in developing 
            and linking electronic records transfer systems;
                ``(ii) recommendations for the development and linkage 
            of such systems; and
                ``(iii) recommendations for measures that may be taken 
            to ensure the continuity of services provided for migratory 
            students.
    ``(c) Availability of Funds.--For the purpose of carrying out this 
section 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.
    ``(d) Incentive Grants.--From the amounts made available to carry 
out this section for any fiscal year, the Secretary may reserve not 
more than $3,000,000 to award grants of not more than $250,000 on a 
competitive basis to State educational agencies that propose a 
consortium arrangement with another State or other appropriate entity 
that the Secretary determines, pursuant to criteria that the Secretary 
shall establish, will improve the delivery of services to migratory 
children whose education is interrupted.
    ``(e) Data Collection.--The Secretary shall direct the National 
Center for Education Statistics to collect data on migratory children.

``SEC. 1309. DEFINITIONS.

    ``As used in this part:
        ``(1) Local operating agency.--The term `local operating 
    agency' means--
            ``(A) a local educational agency to which a State 
        educational agency makes a subgrant under this part;
            ``(B) a public or nonprofit private agency with which a 
        State educational agency or the Secretary makes an arrangement 
        to carry out a project under this part; or
            ``(C) a State educational agency, if the State educational 
        agency operates the State's migrant education program or 
        projects directly.
        ``(2) Migratory child.--The term `migratory child' means a 
    child who is, or whose parent or spouse is, a migratory 
    agricultural worker, including a migratory dairy worker, or a 
    migratory fisher, and who, in the preceding 36 months, in order to 
    obtain, or accompany such parent or spouse, in order to obtain, 
    temporary or seasonal employment in agricultural or fishing work--
            ``(A) has moved from one school district to another;
            ``(B) in a State that is comprised of a single school 
        district, has moved from one administrative area to another 
        within such district; or
            ``(C) resides in a school district of more than 15,000 
        square miles, and migrates a distance of 20 miles or more to a 
        temporary residence to engage in a fishing activity.

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

``SEC. 1401. PURPOSE AND PROGRAM AUTHORIZATION.

    ``(a) Purpose.--It is the purpose of this part--
        ``(1) to improve educational services for children and youth 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 academic content standards and 
    challenging State student academic achievement 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 children and youth returning from 
    correctional facilities or institutions for neglected or delinquent 
    children and youth, with a support system to ensure their continued 
    education.
    ``(b) Program Authorized.--In order to carry out the purpose of 
this part and from amounts appropriated under section 1002(d), 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, delinquent, or at-risk children and youth.

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

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

                   ``Subpart 1--State Agency Programs

``SEC. 1411. ELIGIBILITY.

    ``A State agency is eligible for assistance under this subpart if 
such State agency is responsible for providing free public education 
for children and youth--
        ``(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 subpart, for each fiscal 
    year, in 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.--
        ``(1) In general.--For each fiscal year, the amount of the 
    subgrant which a State agency in the Commonwealth of Puerto Rico 
    shall be eligible to receive under this subpart shall be the amount 
    determined by multiplying the number of children counted under 
    subsection (a)(1)(A) for the Commonwealth of Puerto Rico by the 
    product of--
            ``(A) the percentage which the average per-pupil 
        expenditure in the Commonwealth of Puerto Rico is of the lowest 
        average per-pupil expenditure of any of the 50 States; and
            ``(B) 32 percent of the average per-pupil expenditure in 
        the United States.
        ``(2) Minimum percentage.--The percentage in paragraph (1)(A) 
    shall not be less than--
            ``(A) for fiscal year 2002, 77.5 percent;
            ``(B) for fiscal year 2003, 80.0 percent;
            ``(C) for fiscal year 2004, 82.5 percent; and
            ``(D) for fiscal year 2005 and succeeding fiscal years, 
        85.0 percent.
        ``(3) Limitation.--If the application of paragraph (2) would 
    result in any of the 50 States or the District of Columbia 
    receiving less under this subpart than it received under this 
    subpart for the preceding fiscal year, then the percentage 
    described in paragraph (1)(A) that is used for the Commonwealth of 
    Puerto Rico for the fiscal year for which the determination is made 
    shall be the greater of--
            ``(A) the percentage in paragraph (1)(A) for such fiscal 
        year; or
            ``(B) the percentage used for the preceding fiscal year.
    ``(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 subpart 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 part, 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 subpart shall submit, for approval by 
    the Secretary, a plan--
            ``(A) for meeting the educational needs of neglected, 
        delinquent, and at-risk children and youth;
            ``(B) for assisting in the transition of children and youth 
        from correctional facilities to locally operated programs; and
            ``(C) that is integrated with other programs under this Act 
        or other Acts, as appropriate.
        ``(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 the 
        academic, vocational, and technical skills of children in the 
        program;
            ``(B) provide that, to the extent feasible, such children 
        will have the same opportunities to achieve as such children 
        would have if such children were in the schools of local 
        educational agencies in the State; and
            ``(C) contain an assurance 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 subpart 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 such 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.
    ``(b) Secretarial Approval and Peer Review.--
        ``(1) Secretarial approval.--The Secretary shall approve each 
    State plan that meets the requirements of this subpart.
        ``(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 subpart 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 under this subpart;
        ``(2) provide an assurance that in making services available to 
    children and youth in adult correctional institutions, priority 
    will be given to such children and 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 State agency will carry out the 
    evaluation requirements of section 9601 and how the results of the 
    most recent evaluation will be used to plan and improve the 
    program;
        ``(7) includes data showing that the State agency has 
    maintained the fiscal effort required of a local educational 
    agency, in accordance with section 9521;
        ``(8) describes how the programs will be coordinated with other 
    appropriate State and Federal programs, such as programs under 
    title I of Public Law 105-220, vocational and technical education 
    programs, State and local dropout prevention programs, and special 
    education programs;
        ``(9) describes how the State agency will encourage 
    correctional facilities receiving funds under this subpart to 
    coordinate with local educational agencies or alternative education 
    programs attended by incarcerated children and youth prior to their 
    incarceration to ensure that student assessments and appropriate 
    academic records are shared jointly between the correctional 
    facility and the local educational agency or alternative education 
    program;
        ``(10) describes how appropriate professional development will 
    be provided to teachers and other staff;
        ``(11) designates an individual in each affected correctional 
    facility or institution for neglected or delinquent children and 
    youth to be responsible for issues relating to the transition of 
    children and youth from such facility or institution to locally 
    operated programs;
        ``(12) describes how the State agency will endeavor to 
    coordinate with businesses for training and mentoring for 
    participating children and youth;
        ``(13) provides an assurance that the State agency will assist 
    in locating alternative programs through which students can 
    continue their education if the students are not returning to 
    school after leaving the correctional facility or institution for 
    neglected or delinquent children and youth;
        ``(14) provides assurances that the State agency will work with 
    parents to secure parents' assistance in improving the educational 
    achievement of their children and youth, and preventing their 
    children's and youth's further involvement in delinquent 
    activities;
        ``(15) provides an assurance that the State agency will work 
    with children and youth with disabilities in order to meet an 
    existing individualized education program and an assurance that the 
    agency will notify the child's or youth's local school if the child 
    or youth--
            ``(A) is identified as in need of special education 
        services while the child or youth is in the correctional 
        facility or institution for neglected or delinquent children 
        and youth; and
            ``(B) intends to return to the local school;
        ``(16) provides an assurance that the State agency will work 
    with children and youth who dropped out of school before entering 
    the correctional facility or institution for neglected or 
    delinquent children and youth to encourage the children and youth 
    to reenter school once the term of the incarceration is completed 
    or provide the child or youth with the skills necessary to gain 
    employment, continue the education of the child or youth, or 
    achieve a secondary school diploma or its recognized equivalent if 
    the child or youth does not intend to return to school;
        ``(17) provides an assurance that teachers and other qualified 
    staff are trained to work with children and youth with disabilities 
    and other students with special needs taking into consideration the 
    unique needs of such students;
        ``(18) describes any additional services to be provided to 
    children and youth, such as career counseling, distance learning, 
    and assistance in securing student loans and grants; and
        ``(19) provides an assurance that the program under this 
    subpart will be coordinated with any programs operated under the 
    Juvenile Justice and Delinquency Prevention Act of 1974 (42 U.S.C. 
    5601 et seq.) 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 subpart 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, vocational or technical training, 
        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 academic content standards 
            and student academic achievement 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 meet challenging State academic achievement standards;
            ``(C) shall be carried out in a manner consistent with 
        section 1120A and part I (as applied to programs and projects 
        under this part); and
            ``(D) may include the costs of meeting the evaluation 
        requirements of section 9601.
    ``(b) Supplement, Not Supplant.--A program under this subpart 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 (as applied to 
this part) 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 and youth may use funds 
received under this subpart 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 children and youth in the institution or 
    program serving juveniles;
        ``(2) provides for a comprehensive assessment of the 
    educational needs of youth aged 20 and younger in adult facilities 
    who are expected to complete incarceration within a 2-year period;
        ``(3) describes the steps the State agency has taken, or will 
    take, to provide all children and youth under age 21 with the 
    opportunity to meet challenging State academic content standards 
    and student academic achievement standards in order to improve the 
    likelihood that the children and youth 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 the children and youth described in paragraph (1);
        ``(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 youth, and with 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 
subpart in which individual children or youth 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 subpart for a 
period of not more than 3 years.

``SEC. 1418. TRANSITION SERVICES.

    ``(a) Transition Services.--Each State agency shall reserve not 
less than 15 percent and not more than 30 percent of the amount such 
agency receives under this subpart for any fiscal year to support--
        ``(1) projects that facilitate the transition of children and 
    youth from State-operated institutions to schools served by 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, or vocational 
    and technical training programs, through strategies designed to 
    expose the youth to, and prepare the youth for, postsecondary 
    education, or vocational and technical training programs, such as--
            ``(A) preplacement programs that allow adjudicated or 
        incarcerated youth 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; and
            ``(C) essential support services to ensure the success of 
        the youth, such as--
                ``(i) personal, vocational and technical, and academic, 
            counseling;
                ``(ii) placement services designed to place the youth 
            in a university, college, or junior college program;
                ``(iii) information concerning, and assistance in 
            obtaining, available student financial aid;
                ``(iv) counseling services; and
                ``(v) 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) Rule of 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 may reserve not more than 2.5 percent of the amount 
made available to carry out this subpart for a fiscal year--
        ``(1) to develop a uniform model to evaluate the effectiveness 
    of programs assisted under this subpart; and
        ``(2) to provide technical assistance to and support the 
    capacity building of State agency programs assisted under this 
    subpart.

                   ``Subpart 2--Local Agency Programs

``SEC. 1421. PURPOSE.

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

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

    ``(a) Local Subgrants.--With funds made available under section 
1402(b), the State educational agency shall award subgrants to local 
educational agencies with high numbers or percentages of children and 
youth residing in locally operated (including county operated) 
correctional facilities for children and youth (including facilities 
involved in community day programs).
    ``(b) Special Rule.--A local educational agency that serves a 
school operated by a correctional facility is not required to operate a 
program of support for children and youth returning from such school to 
a school that is not operated by a correctional agency but served by 
such local educational agency, if more than 30 percent of the children 
and youth attending the school operated by the correctional facility 
will reside outside the boundaries served by the local educational 
agency after 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 subpart.
    ``(d) Transitional and Academic Services.--Transitional and 
supportive programs operated in local educational agencies under this 
subpart shall be designed primarily to meet the transitional and 
academic needs of students returning to local educational agencies or 
alternative education programs from correctional facilities. Services 
to students at-risk of dropping out of school shall not have a negative 
impact on meeting the transitional and academic needs of the students 
returning from correctional facilities.

``SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

    ``Each local educational agency desiring assistance under this 
subpart shall submit an application to the State educational agency 
that contains 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, regarding the program 
    to be assisted, between--
            ``(A) the local educational agency; and
            ``(B) correctional facilities and alternative school 
        programs serving children and youth involved with the juvenile 
        justice system;
        ``(3) as appropriate, a description of how participating 
    schools will coordinate with facilities working with delinquent 
    children and youth to ensure that such children and youth are 
    participating in an education program comparable to one operating 
    in the local school such youth would attend;
        ``(4) a description of the program operated by participating 
    schools for children and youth returning from correctional 
    facilities and, as appropriate, the types of services that such 
    schools will provide such children and youth and other at-risk 
    children and youth;
        ``(5) a description of the characteristics (including learning 
    difficulties, substance abuse problems, and other special needs) of 
    the children and youth who will be returning from correctional 
    facilities and, as appropriate, other at-risk children and youth 
    expected to be served by the program, and a description of how the 
    school will coordinate existing educational programs to meet the 
    unique educational needs of such children and youth;
        ``(6) as appropriate, a description of how schools will 
    coordinate with existing social, health, and other services to meet 
    the needs of students returning from correctional facilities, at-
    risk children or youth, and other participating children or youth, 
    including prenatal health care and nutrition services related to 
    the health of the parent and the child or youth, parenting and 
    child development classes, child care, targeted reentry and 
    outreach programs, referrals to community resources, and scheduling 
    flexibility;
        ``(7) as appropriate, a description of any partnerships with 
    local businesses to develop training, curriculum-based youth 
    entrepreneurship education, 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 subpart will 
    be coordinated with other Federal, State, and local programs, such 
    as programs under title I of Public Law 105-220 and vocational and 
    technical education programs serving at-risk children and 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 children 
    and youth returning from correctional facilities;
        ``(12) a description of the efforts participating schools will 
    make to ensure correctional facilities working with children and 
    youth are aware of a child's or youth's existing individualized 
    education program; and
        ``(13) as appropriate, a description of the steps participating 
    schools will take to find alternative placements for children and 
    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 subpart 
may be used, as appropriate, for--
        ``(1) programs that serve children and youth returning to local 
    schools from correctional facilities, to assist in the transition 
    of such children and youth to the school environment and help them 
    remain in school in order to complete their education;
        ``(2) dropout prevention programs which serve at-risk children 
    and youth, including pregnant and parenting teens, children and 
    youth who have come in contact with the juvenile justice system, 
    children and youth at least 1 year behind their expected grade 
    level, migrant youth, immigrant youth, students with limited 
    English proficiency, and gang members;
        ``(3) the coordination of health and social services for such 
    individuals if there is a likelihood that the provision of such 
    services, including day care, drug and alcohol counseling, and 
    mental health services, will improve the likelihood such 
    individuals will complete their education;
        ``(4) special programs to meet the unique academic needs of 
    participating children and youth, including vocational and 
    technical education, special education, career counseling, 
    curriculum-based youth entrepreneurship education, and assistance 
    in securing student loans or grants for postsecondary education; 
    and
        ``(5) programs providing mentoring and peer mediation.

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

    ``Each correctional facility entering into an agreement with a 
local educational agency under section 1423(2) to provide services to 
children and youth under this subpart shall--
        ``(1) where feasible, ensure that educational programs in the 
    correctional facility are coordinated with the student's home 
    school, particularly with respect to a student with an 
    individualized education program under part B of the Individuals 
    with Disabilities Education Act;
        ``(2) if the child or youth is identified as in need of special 
    education services while in the correctional facility, notify the 
    local school of the child or youth of such need;
        ``(3) where feasible, provide transition assistance to help the 
    child or 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 that encourage children and 
    youth who have dropped out of school to reenter school once their 
    term at the correctional facility has been completed, or provide 
    such children and youth with the skills necessary to gain 
    employment or seek a secondary school diploma or its recognized 
    equivalent;
        ``(5) work to ensure that the correctional facility is staffed 
    with teachers and other qualified staff who are trained to work 
    with children and youth with disabilities taking into consideration 
    the unique needs of such children and youth;
        ``(6) ensure that educational programs in the correctional 
    facility are related to assisting students to meet high academic 
    achievement standards;
        ``(7) to the extent possible, use technology to assist in 
    coordinating educational programs between the correctional 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 subpart with other 
    local, State, and Federal funds available to provide services to 
    participating children and youth, such as funds made available 
    under title I of Public Law 105-220, and vocational and technical 
    education funds;
        ``(10) coordinate programs operated under this subpart 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, curriculum-based youth entrepreneurship education, and 
    mentoring programs for children and youth.

``SEC. 1426. ACCOUNTABILITY.

    ``The State educational agency may--
        ``(1) reduce or terminate funding for projects under this 
    subpart 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 correctional facilities or institutions for 
    neglected or delinquent children and youth to demonstrate, after 
    receiving assistance under this subpart for 3 years, that there has 
    been an increase in the number of children and youth returning to 
    school, obtaining a secondary school diploma or its recognized 
    equivalent, or obtaining employment after such children and youth 
    are released.

                    ``Subpart 3--General Provisions

``SEC. 1431. PROGRAM EVALUATIONS.

    ``(a) Scope of Evaluation.--Each State agency or local educational 
agency that conducts a program under subpart 1 or 2 shall evaluate the 
program, disaggregating data on participation by gender, race, 
ethnicity, and age, not less than once every 3 years, to determine the 
program's impact on the ability of participants--
        ``(1) to maintain and improve educational achievement;
        ``(2) to accrue school credits that meet State requirements for 
    grade promotion and secondary school graduation;
        ``(3) to make the transition to a regular program or other 
    education program operated by a local educational agency;
        ``(4) to complete secondary school (or secondary school 
    equivalency requirements) and obtain employment after leaving the 
    correctional facility or institution for neglected or delinquent 
    children and youth; and
        ``(5) as appropriate, to participate in postsecondary education 
    and job training programs.
    ``(b) Exception.--The disaggregation required under subsection (a) 
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 personally identifiable information about an 
individual student.
    ``(c) 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.
    ``(d) 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 part:
        ``(1) Adult correctional institution.--The term `adult 
    correctional institution' means a facility in which persons 
    (including persons under 21 years of age) are confined as a result 
    of a conviction for a criminal offense.
        ``(2) At-risk.--The term `at-risk', when used with respect to a 
    child, youth, or student, means a school aged individual who is at-
    risk of academic failure, has a drug or alcohol problem, is 
    pregnant or is a parent, has come into contact with the juvenile 
    justice system in the past, is at least 1 year behind the expected 
    grade level for the age of the individual, has limited English 
    proficiency, is a gang member, has dropped out of school in the 
    past, or has a high absenteeism rate 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. 1501. EVALUATIONS.

    ``(a) National Assessment of Title I.--
        ``(1) In general.--The Secretary shall conduct a national 
    assessment of the programs assisted under this title and the impact 
    of this title on States, local educational agencies, schools, and 
    students.
        ``(2) Issues to be examined.--In conducting the assessment 
    under this subsection, the Secretary shall examine, at a minimum, 
    the following:
            ``(A) The implementation of programs assisted under this 
        title and the impact of such implementation on increasing 
        student academic achievement (particularly in schools with high 
        concentrations of children living in poverty), relative to the 
        goal of all students reaching the proficient level of 
        achievement based on State academic assessments, challenging 
        State academic content standards, and challenging State student 
        academic achievement standards under section 1111.
            ``(B) The types of programs and services that have 
        demonstrated the greatest likelihood of helping students reach 
        the proficient and advanced levels of achievement based on 
        State student academic achievement standards and State academic 
        content standards.
            ``(C) The implementation of State academic standards, 
        assessments, and accountability systems developed under this 
        title, including--
                ``(i) the time and cost required for the development of 
            academic assessments for students in grades 3 through 8;
                ``(ii) how well such State assessments meet the 
            requirements for assessments described in this title; and
                ``(iii) the impact of such standards, assessments, and 
            accountability systems on educational programs and 
            instruction at the local level.
            ``(D) Each State's definition of adequate yearly progress, 
        including--
                ``(i) the impact of applying this definition to 
            schools, local educational agencies, and the State;
                ``(ii) the number of schools and local educational 
            agencies not meeting this definition; and
                ``(iii) the changes in the identification of schools in 
            need of improvement as a result of such definition.
            ``(E) How schools, local educational agencies, and States 
        have--
                ``(i) publicized and disseminated the local educational 
            agency report cards required under section 1111(h)(2) to 
            teachers, school staff, students, parents, and the 
            community;
                ``(ii) used funds made available under this title to 
            provide preschool and family literacy services and the 
            impact of these services on students' school readiness;
                ``(iii) implemented the provisions of section 1118 and 
            afforded parents meaningful opportunities to be involved in 
            the education of their children;
                ``(iv) used Federal, State, and local educational 
            agency funds and resources to support schools and provide 
            technical assistance to improve the achievement of students 
            in low-performing schools, including the impact of the 
            technical assistance on such achievement; and
                ``(v) used State educational agency and local 
            educational agency funds and resources to help schools in 
            which 50 percent or more of the students are from families 
            with incomes below the poverty line meet the requirement 
            described in section 1119 of having all teachers highly 
            qualified not later than the end of the 2005-2006 school 
            year.
            ``(F) The implementation of schoolwide programs and 
        targeted assistance programs under this title and the impact of 
        such programs on improving student academic achievement, 
        including the extent to which schools meet the requirements of 
        such programs.
            ``(G) The extent to which varying models of comprehensive 
        school reform are funded and implemented under this title, and 
        the effect of the implementation of such models on improving 
        achievement of disadvantaged students.
            ``(H) The costs as compared to the benefits of the 
        activities assisted under this title.
            ``(I) The extent to which actions authorized under section 
        1116 are implemented by State educational agencies and local 
        educational agencies to improve the academic achievement of 
        students in low-performing schools, and the effectiveness of 
        the implementation of such actions, including the following:
                ``(i) The number of schools identified for school 
            improvement and how many years the schools remain in this 
            status.
                ``(ii) The types of support provided by the State 
            educational agencies and local educational agencies to 
            schools and local educational agencies respectively 
            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 
            (including transportation costs) associated with 
            implementing these provisions, the implementation of these 
            provisions, and the impact of these provisions (including 
            the impact of attending another school) on student 
            achievement.
                ``(iv) The number of parents who choose to take 
            advantage of the supplemental educational 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 
            educational services on student achievement.
                ``(v) The implementation and impact of actions that are 
            taken with regard to schools and local educational agencies 
            identified for corrective action and restructuring.
            ``(J) The extent to which State and local fiscal accounting 
        requirements under this title affect the flexibility of 
        schoolwide programs.
            ``(K) The implementation and impact of the professional 
        development activities assisted under this title and title II 
        on instruction, student academic achievement, and teacher 
        qualifications.
            ``(L) The extent to which the assistance made available 
        under this title, including funds under section 1002, is 
        targeted to disadvantaged students, schools, and local 
        educational agencies with the greatest need.
            ``(M) The effectiveness of Federal administration 
        assistance made available under this title, including 
        monitoring and technical assistance.
            ``(N) The academic achievement of the groups of students 
        described in section 1111(b)(2)(C)(v)(II).
            ``(O) Such other issues as the Secretary considers 
        appropriate.
        ``(3) Sources of information.--In conducting the assessment 
    under this subsection, the Secretary shall use information from a 
    variety of sources, including the National Assessment of 
    Educational Progress (carried out under section 411 of the National 
    Education Statistics Act of 1994), State evaluations, and other 
    research studies.
        ``(4) Coordination.--In carrying out this subsection, the 
    Secretary shall--
            ``(A) coordinate the national assessment under this 
        subsection with the longitudinal study described in subsection 
        (c); and
            ``(B) ensure that the independent review panel described in 
        subsection (d) participates in conducting the national 
        assessment under this subsection, including planning for and 
        reviewing the assessment.
        ``(5) Developmentally appropriate measures.--In conducting the 
    national assessment under this subsection, the Secretary shall use 
    developmentally appropriate measures to assess student academic 
    achievement.
        ``(6) Reports.--
            ``(A) Interim report.--Not later than 3 years after the 
        date of enactment of the No Child Left Behind Act of 2001, the 
        Secretary shall transmit to the President, the Committee on 
        Education and the Workforce of the House of Representatives, 
        and the Committee on Health, Education, Labor, and Pensions of 
        the Senate an interim report on the national assessment 
        conducted under this subsection.
            ``(B) Final report.--Not later than 5 years after the date 
        of enactment of the No Child Left Behind Act of 2001, the 
        Secretary shall transmit to the President, 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 final report on the national assessment conducted 
        under this subsection.
    ``(b) Studies and Data Collection.--
        ``(1) In general.--In addition to other activities described in 
    this section, the Secretary may, directly or through awarding 
    grants to or entering into contracts with appropriate entities--
            ``(A) assess the implementation and effectiveness of 
        programs under this title;
            ``(B) collect the data necessary to comply with the 
        Government Performance and Results Act of 1993; and
            ``(C) provide guidance and technical assistance to State 
        educational agencies and local educational agencies in 
        developing and maintaining management information systems 
        through which such agencies may develop program performance 
        indicators to improve services and performance.
        ``(2) Minimum information.--In carrying out this subsection, 
    the Secretary shall collect, at a minimum, trend information on the 
    effect of each program authorized under this title, which shall 
    complement the data collected and reported under subsections (a) 
    and (c).
    ``(c) National Longitudinal Study.--
        ``(1) In general.--The Secretary shall conduct a longitudinal 
    study of schools receiving assistance under part A.
        ``(2) Issues to be examined.--In carrying out this subsection, 
    the Secretary shall ensure that the study referred to in paragraph 
    (1) provides Congress and educators with each of the following:
            ``(A) An accurate description and analysis of the short- 
        and long-term effect of the assistance made available under 
        this title on academic achievement.
            ``(B) Information that can be used to improve the 
        effectiveness of the assistance made available under this title 
        in enabling students to meet challenging academic achievement 
        standards.
            ``(C) An analysis of educational practices or model 
        programs that are effective in improving the achievement of 
        disadvantaged children.
            ``(D) An analysis of the costs as compared to the benefits 
        of the assistance made available under this title in improving 
        the achievement of disadvantaged children.
            ``(E) An analysis of the effects of the availability of 
        school choice options under section 1116 on the academic 
        achievement of disadvantaged students, on schools in school 
        improvement, and on schools from which students have 
        transferred under such options.
            ``(F) Such other information as the Secretary considers 
        appropriate.
        ``(3) Scope.--In conducting the study referred to in paragraph 
    (1), the Secretary shall ensure that the study--
            ``(A) bases its analysis on a nationally representative 
        sample of schools participating in programs under this title;
            ``(B) to the extent practicable, includes in its analysis 
        students who transfer to different schools during the course of 
        the study; and
            ``(C) analyzes varying models or strategies for delivering 
        school services, including--
                ``(i) schoolwide and targeted services; and
                ``(ii) comprehensive school reform models.
    ``(d) Independent Review Panel.--
        ``(1) In general.--The Secretary shall establish an independent 
    review panel (in this subsection referred to as the `Review Panel') 
    to advise the Secretary on methodological and other issues that 
    arise in carrying out subsections (a) and (c).
        ``(2) Appointment of members.--
            ``(A) In general.--Subject to subparagraph (B), the 
        Secretary shall appoint members of the Review Panel from among 
        qualified individuals who are--
                ``(i) specialists in statistics, evaluation, research, 
            and assessment;
                ``(ii) education practitioners, including teachers, 
            principals, and local and State superintendents;
                ``(iii) parents and members of local school boards or 
            other organizations involved with the implementation and 
            operation of programs under this title; and
                ``(iv) other individuals with technical expertise who 
            will contribute to the overall rigor and quality of the 
            program evaluation.
            ``(B) Limitations.--In appointing members of the Review 
        Panel, the Secretary shall ensure that--
                ``(i) in order to ensure diversity, the Review Panel 
            includes individuals appointed under subparagraph (A)(i) 
            who represent disciplines or programs outside the field of 
            education; and
                ``(ii) the total number of the individuals appointed 
            under subparagraph (A)(ii) or (A)(iv) does not exceed one-
            fourth of the total number of the individuals appointed 
            under this paragraph.
        ``(3) Functions.--The Review Panel shall consult with and 
    advise the Secretary--
            ``(A) to ensure that the assessment conducted under 
        subsection (a) and the study conducted under subsection (c)--
                ``(i) adhere to the highest possible standards of 
            quality with respect to research design, statistical 
            analysis, and the dissemination of findings; and
                ``(ii) use valid and reliable measures to document 
            program implementation and impacts; and
            ``(B) to ensure--
                ``(i) that the final report described in subsection 
            (a)(6)(B) is reviewed not later than 120 days after its 
            completion by not less than two independent experts in 
            program evaluation (who may be from among the members of 
            the Review Panel appointed under paragraph (2));
                ``(ii) that such experts evaluate and comment on the 
            degree to which the report complies with subsection (a); 
            and
                ``(iii) that the comments of such experts are 
            transmitted with the report under subsection (a)(6)(B).

``SEC. 1502. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

    ``(a) In General.--From the funds appropriated for any fiscal year 
under section 1002(e)(1), the Secretary may award grants to State 
educational agencies, local educational agencies, other public 
agencies, nonprofit organizations, public or private partnerships 
involving business and industry organizations, and consortia of such 
entities to carry out demonstration projects that show the most promise 
of enabling children served under this title to meet challenging State 
academic content standards and challenging State student academic 
achievement standards.
    ``(b) Evaluation.--The Secretary shall evaluate the demonstration 
projects supported under this title, using rigorous methodological 
designs and techniques, including control groups and random assignment, 
to the extent feasible, to produce reliable evidence of effectiveness.
    ``(c) Partnerships.--From funds appropriated under section 
1002(e)(1) for any fiscal year, the Secretary may, directly or through 
grants or contracts, work in partnership with State educational 
agencies, local educational agencies, other public agencies, and 
nonprofit organizations to disseminate and use the highest quality 
research and knowledge about effective practices to improve the quality 
of teaching and learning in schools assisted under this title.

``SEC. 1503. ASSESSMENT EVALUATION.

    ``(a) In General.--The Secretary shall conduct an independent study 
of assessments used for State accountability purposes and for making 
decisions about the promotion and graduation of students. Such research 
shall be conducted over a period not to exceed 5 years and shall 
address the components described in subsection (d).
    ``(b) Contract Authorized.--The Secretary is authorized to award a 
contract, through a peer review process, to an organization or entity 
capable of conducting rigorous, independent research. The Assistant 
Secretary of Educational Research and Improvement shall appoint peer 
reviewers to evaluate the applications for this contract.
    ``(c) Study.--The study shall--
        ``(1) synthesize and analyze existing research that meets 
    standards of quality and scientific rigor; and
        ``(2) evaluate academic assessment and accountability systems 
    in State educational agencies, local educational agencies, and 
    schools; and
        ``(3) make recommendations to the Department and to the 
    Committee on Education and the Workforce of the United States House 
    of Representatives and the Committee on Health, Education, Labor, 
    and Pensions of the United States Senate, based on the findings of 
    the study.
    ``(d) Components of the Research Program.--The study described in 
subsection (a) shall examine--
        ``(1) the effect of the assessment and accountability systems 
    described in section (c) on students, teachers, parents, families, 
    schools, school districts, and States, including correlations 
    between such systems and--
            ``(A) student academic achievement, progress to the State-
        defined level of proficiency, and progress toward closing 
        achievement gaps, based on independent measures;
            ``(B) changes in course offerings, teaching practices, 
        course content, and instructional material;
            ``(C) changes in turnover rates among teachers, principals, 
        and pupil-services personnel;
            ``(D) changes in dropout, grade-retention, and graduation 
        rates for students; and
            ``(E) such other effects as may be appropriate;
        ``(2) the effect of the academic assessments on students with 
    disabilities;
        ``(3) the effect of the academic assessments on low, middle, 
    and high socioeconomic status students, limited and nonlimited 
    English proficient students, racial and ethnic minority students, 
    and nonracial or nonethnic minority students;
        ``(4) guidelines for assessing the validity, reliability, and 
    consistency of those systems using nationally recognized 
    professional and technical standards;
        ``(5) the relationship between accountability systems and the 
    inclusion or exclusion of students from the assessment system; and
        ``(6) such other factors as the Secretary finds appropriate.
    ``(e) Reporting.--Not later than 3 years after the contract 
described in subsection (b) is awarded, the organization or entity 
conducting the study shall submit an interim report to the Committee on 
Education and the Workforce of the United States House of 
Representatives and the Committee on Health, Education, Labor and 
Pensions of the United States Senate, and to the President and the 
States, and shall make the report widely available to the public. The 
organization or entity shall submit a final report to the same 
recipients as soon as possible after the completion of the study. 
Additional reports may be periodically prepared and released as 
necessary.
    ``(f) Reservation of Funds.--The Secretary may reserve up to 15 
percent of the funds authorized to be appropriated for this part to 
carry out the study, except such reservation of funds shall not exceed 
$1,500,000.

``SEC. 1504. CLOSE UP FELLOWSHIP PROGRAM.

    ``(a) Program for Middle School and Secondary School Students.--
        ``(1) Establishment.--
            ``(A) General authority.--In accordance with this 
        subsection, the Secretary may make grants 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 civic 
        responsibility and understanding of the Federal Government 
        among middle school and secondary school students.
            ``(B) Use of funds.--Grants under this subsection shall be 
        used only to provide financial assistance to economically 
        disadvantaged students who participate in the programs 
        described in subparagraph (A).
            ``(C) Name of fellowships.--Financial assistance received 
        by students pursuant to this subsection shall be known as Close 
        Up fellowships.
        ``(2) Applications.--
            ``(A) Application required.--No grant under this subsection 
        may be made except upon an application at such time, in such 
        manner, and accompanied by such information as the Secretary 
        may reasonably require.
            ``(B) Contents of application.--Each application submitted 
        under this paragraph shall contain assurances that--
                ``(i) Close Up fellowships provided under this 
            subsection shall be made to economically disadvantaged 
            middle school and secondary school students;
                ``(ii) every effort shall be made to ensure the 
            participation of students from rural, small town, and urban 
            areas;
                ``(iii) in awarding the fellowships to economically 
            disadvantaged students, special consideration shall be 
            given to the participation of those students with special 
            educational needs, including students with disabilities, 
            ethnic minority students, and students with migrant 
            parents; and
                ``(iv) the funds received under this subsection shall 
            be properly disbursed.
    ``(b) Program for Middle School and Secondary School Teachers.--
        ``(1) Establishment.--
            ``(A) General authority.--In accordance with this 
        subsection, the Secretary may make grants 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 professional 
        development for middle school and secondary school teachers and 
        its programs to increase civic responsibility and understanding 
        of the Federal Government among the teachers' students.
            ``(B) Use of funds.--Grants under this subsection shall be 
        used only to provide financial assistance to teachers who 
        participate in the programs described in subparagraph (A).
            ``(C) Name of fellowships.--Financial assistance received 
        by teachers pursuant to this subsection shall be known as Close 
        Up fellowships.
        ``(2) Applications.--
            ``(A) Application required.--No grant under this subsection 
        may be made except upon an application at such time, in such 
        manner, and accompanied by such information as the Secretary 
        may reasonably require.
            ``(B) Contents of application.--Each application submitted 
        under this paragraph shall contain assurances that--
                ``(i) Close Up fellowships provided under this 
            subsection shall be made only to a teacher who has worked 
            with at least one student from such teacher's school who 
            participates in a program described in subsection 
            (a)(1)(A);
                ``(ii) no teacher shall receive more than one such 
            fellowship in any fiscal year; and
                ``(iii) the funds received under this subsection shall 
            be properly disbursed.
    ``(c) Programs for New Americans.--
        ``(1) Establishment.--
            ``(A) General authority.--In accordance with this 
        subsection, the Secretary may make grants 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 civic 
        responsibility and understanding of the Federal Government 
        among economically disadvantaged middle school and secondary 
        school recent immigrant students.
            ``(B) Definition.--In this subsection, the term `recent 
        immigrant student' means a student who is a member of a family 
        that immigrated to the United States within 5 years of the 
        student's participation in such a program.
            ``(C) Use of funds.--Grants under this subsection shall be 
        used only to provide financial assistance to economically 
        disadvantaged recent immigrant students and their teachers who 
        participate in the programs described in subparagraph (A).
            ``(D) Name of fellowships.--Financial assistance received 
        by students and teachers pursuant to this subsection shall be 
        known as Close Up Fellowships for New Americans.
        ``(2) Applications.--
            ``(A) Application required.--No grant under this subsection 
        may be made except upon an application at such time, in such 
        manner, and accompanied by such information as the Secretary 
        may reasonably require.
            ``(B) Contents of application.--Each application submitted 
        under this paragraph shall contain assurances that--
                ``(i) Close Up Fellowships for New Americans shall be 
            made to economically disadvantaged middle school and 
            secondary school recent immigrant students;
                ``(ii) every effort shall be made to ensure the 
            participation of recent immigrant students from rural, 
            small town, and urban areas;
                ``(iii) in awarding the fellowships to economically 
            disadvantaged recent immigrant students, special 
            consideration shall be given to the participation of those 
            students with special educational needs, including students 
            with disabilities, students with migrant parents, and 
            ethnic minority students;
                ``(iv) fully describe the activities to be carried out 
            with the proceeds of the grant made under paragraph (1); 
            and
                ``(v) the funds received under this subsection shall be 
            properly disbursed.
    ``(d) General Provisions.--
        ``(1) Administrative provisions.--
            ``(A) Accountability.--In consultation with the Secretary, 
        the Close Up Foundation shall devise and implement procedures 
        to measure the efficacy of the programs authorized in 
        subsections (a), (b), and (c) in attaining objectives that 
        include the following:
                ``(i) Providing young people with an increased 
            understanding of the Federal Government.
                ``(ii) Heightening a sense of civic responsibility 
            among young people.
                ``(iii) Enhancing the skills of educators in teaching 
            young people about civic responsibility, the Federal 
            Government, and attaining citizenship competencies.
            ``(B) General rule.--Payments under this section 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 section.
         ``(2) Continuation of awards.--Notwithstanding any other 
    provision of this Act, any person or entity that was awarded a 
    grant under part G of title X before the date of enactment of the 
    No Child Left Behind Act of 2001 shall continue to receive funds in 
    accordance with the terms of such award until the date on which the 
    award period terminates under such terms.

                 ``PART F--COMPREHENSIVE SCHOOL REFORM

``SEC. 1601. PURPOSE.

    ``The purpose of this part is to provide financial incentives for 
schools to develop comprehensive school reforms, based upon 
scientifically based research and effective practices that include an 
emphasis on basic academics and parental involvement so that all 
children can meet challenging State academic content and academic 
achievement standards.

``SEC. 1602. 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 1601.
        ``(2) Allotments.--
            ``(A) Reservations.--Of the amount appropriated under 
        section 1002(f), the Secretary may reserve--
                ``(i) not more than 1 percent for each fiscal year 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 for each fiscal year to 
            conduct national evaluation activities described in section 
            1607; and
                ``(iii) not more than 3 percent of the amount 
            appropriated in fiscal year 2002 to carry out this part, 
            for quality initiatives described in section 1608.
            ``(B) In general.--Of the amount appropriated under section 
        1002(f) 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 apply in proportion to the amount allotted 
        to such other States under subparagraph (B).

``SEC. 1603. STATE APPLICATIONS.

    ``(a) In General.--Each State educational agency that desires to 
receive a grant under this part shall submit an application to the 
Secretary at such time, in such manner, and containing such information 
as the Secretary may reasonably require.
    ``(b) 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 part;
        ``(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 
        1606(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, financial stability, 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 
    materials and information on comprehensive school reforms that are 
    based on scientifically based research and effective practices;
        ``(4) how the State educational agency will evaluate annually 
    the implementation of such reforms and measure the extent to which 
    the reforms have resulted in increased student academic 
    achievement; and
        ``(5) how the State educational agency will provide technical 
    assistance to the local educational agency or consortia of local 
    educational agencies, and to participating schools, in evaluating, 
    developing, and implementing comprehensive school reform.

``SEC. 1604. 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--
            ``(A) for each participating school; or
            ``(B) for each participating consortium of small schools 
        (which for purposes of this subparagraph means a consortium of 
        small schools serving a total of not more than 500 students); 
        and
        ``(3) renewable for two additional 1-year subgrant periods 
    after the initial 1-year subgrant is made if the school is or the 
    schools are 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 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 annual evaluation of the 
implementation of comprehensive school reforms supported under this 
part and the student achievement results.

``SEC. 1605. LOCAL APPLICATIONS.

    ``(a) In General.--Each local educational agency or consortium of 
local educational agencies desiring a subgrant under this part 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 and 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 comprehensive school reforms based on 
    scientifically based research and effective practices selected by 
    such schools; and
        ``(4) describe how the local educational agency or consortium 
    will evaluate the implementation of such comprehensive school 
    reforms and measure the results achieved in improving student 
    academic achievement.

``SEC. 1606. LOCAL USE OF FUNDS.

    ``(a) Uses of Funds.--A local educational agency or consortium that 
receives a subgrant under this part 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 that--
        ``(1) employs proven strategies and proven methods for student 
    learning, teaching, and school management that are based on 
    scientifically based research and effective practices and have been 
    replicated successfully in schools;
        ``(2) integrates a comprehensive design for effective school 
    functioning, including instruction, assessment, classroom 
    management, professional development, parental involvement, and 
    school management, that aligns the school's curriculum, technology, 
    and professional development into a comprehensive school reform 
    plan for schoolwide change designed to enable all students to meet 
    challenging State content and student academic achievement 
    standards and addresses needs identified through a school needs 
    assessment;
        ``(3) provides high quality and continuous teacher and staff 
    professional development;
        ``(4) includes measurable goals for student academic 
    achievement and benchmarks for meeting such goals;
        ``(5) is supported by teachers, principals, administrators, 
    school personnel staff, and other professional staff;
        ``(6) provides support for teachers, principals, 
    administrators, and other school staff;
        ``(7) provides for the meaningful involvement of parents and 
    the local community in planning, implementing, and evaluating 
    school improvement activities consistent with section 1118;
        ``(8) uses 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;
        ``(9) includes a plan for the annual evaluation of the 
    implementation of school reforms and the student results achieved;
        ``(10) identifies 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; and
        ``(11)(A) has been found, through scientifically based research 
    to significantly improve the academic achievement of students 
    participating in such program as compared to students in schools 
    who have not participated in such program; or
        ``(B) has been found to have strong evidence that such program 
    will significantly improve the academic achievement of 
    participating children.
    ``(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. 1607. 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.--The Secretary shall submit a report describing the 
results of the evaluation under subsection (b) for the Comprehensive 
School Reform Program 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. 1608. QUALITY INITIATIVES.

    ``The Secretary, through grants or contracts, shall provide funds 
for--
        ``(1) a public-private effort, in which funds are matched by 
    private organizations, to assist States, local educational 
    agencies, and schools, in making informed decisions regarding 
    approving or selecting providers of comprehensive school reform, 
    consistent with the requirements described in section 1606(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 G--ADVANCED PLACEMENT PROGRAMS

``SEC. 1701. SHORT TITLE.

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

``SEC. 1702. PURPOSES.

    The purposes of this part are--
        ``(1) 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;
        ``(2) to encourage more of the 600,000 students who take 
    advanced placement courses each year but do not take advanced 
    placement exams each year, to demonstrate their achievements 
    through taking the exams;
        ``(3) 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 
    Test (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;
        ``(4) to increase the availability and broaden the range of 
    schools, including middle schools, that have advanced placement and 
    pre-advanced placement programs;
        ``(5) to 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 and pre-
    advanced placement courses and highly trained teachers for low-
    income and other disadvantaged students;
        ``(7) to provide access to advanced placement courses for 
    secondary school students at schools that do not offer advanced 
    placement programs, increase the rate at which secondary school 
    students participate in advanced placement courses, and increase 
    the numbers of students who receive advanced placement test scores 
    for which college academic credit is awarded;
        ``(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; and
        ``(9) to increase the number of individuals that achieve a 
    baccalaureate or advanced degree, and to decrease the amount of 
    time such individuals require to attain such degrees.

``SEC. 1703. FUNDING DISTRIBUTION RULE.

    ``From amounts appropriated under section 1002(g) for a fiscal 
year, the Secretary shall give priority to funding activities under 
section 1704 and shall distribute any remaining funds under section 
1705.

``SEC. 1704. ADVANCED PLACEMENT TEST FEE PROGRAM.

    ``(a) Grants Authorized.--From amounts made available under section 
1703 for a fiscal year, the Secretary shall award grants to State 
educational agencies having applications approved under this section 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 course; and
        ``(2) plan to take an advanced placement test.
    ``(b) Award Basis.--In determining the amount of the grant awarded 
to a 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 
awarded a grant under this section 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 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. 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 awarded under this section;
        ``(2) provide an assurance that any grant funds awarded under 
    this section 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 educational agency will ensure that a 
    student is eligible for payments authorized 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) Regulations.--The Secretary shall prescribe such regulations 
as are necessary to carry out this section.
    ``(f) Report.--
        ``(1) In general.--Each State educational agency awarded a 
    grant under this section shall, with respect to each advanced 
    placement subject, annually report to the Secretary on--
            ``(A) the number of students in the State who are taking an 
        advanced placement course in that subject;
            ``(B) the number of advanced placement tests taken by 
        students in the State who have taken an advanced placement 
        course in that subject;
            ``(C) the number of students in the State scoring at 
        different levels on advanced placement tests in that subject; 
        and
            ``(D) demographic information regarding individuals in the 
        State taking advanced placement courses and tests in that 
        subject disaggregated by race, ethnicity, sex, English 
        proficiency status, and socioeconomic status.
        ``(2) Report to congress.--The Secretary shall annually compile 
    the information received from each State educational agency under 
    paragraph (1) and report to the appropriate committees of Congress 
    regarding the information.
    ``(g) BIA as SEA.--For purposes of this section the Bureau of 
Indian Affairs shall be treated as a State educational agency.

``SEC. 1705. ADVANCED PLACEMENT INCENTIVE PROGRAM GRANTS.

    ``(a) Grants Authorized.--
        ``(1) In general.--From amounts made available under section 
    1703 for a fiscal year, the Secretary shall award grants, on a 
    competitive basis, to eligible entities to enable those entities to 
    carry out the authorized activities described in subsection (d).
        ``(2) Duration and payments.--
            ``(A) Duration.--The Secretary shall award a grant under 
        this section for a period of not more than 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, local 
    educational agency, or national nonprofit educational entity with 
    expertise in advanced placement services.
    ``(b) 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.
    ``(c) Priority.--In awarding grants under this section, the 
Secretary shall give priority to an eligible entity that submits an 
application under subsection (b) that--
        ``(1) demonstrates a pervasive need for access to advanced 
    placement incentive programs;
        ``(2) provides for the involvement of business and community 
    organizations in the activities to be assisted;
        ``(3) assures the availability of matching funds from State, 
    local, or other sources to pay for the cost of activities to be 
    assisted;
        ``(4) demonstrates a focus on developing or expanding advanced 
    placement programs and participation in the core academic areas of 
    English, mathematics, and science;
        ``(5) demonstrates an intent to carry out activities that 
    target--
            ``(A) local educational agencies serving schools with a 
        high concentration of low-income students; or
            ``(B) schools with a high concentration of low-income 
        students; and
        ``(6) in the case of a local educational agency, assures that 
    the local educational agency serves schools with a high 
    concentration of low-income students; or
        ``(7) demonstrates an intent to carry out activities to 
    increase the availability of, and participation in, on-line 
    advanced placement courses.
    ``(d) Authorized Activities.--
        ``(1) In general.--Subject to paragraph (2), an eligible entity 
    shall use grant funds made available under this section to expand 
    access for low-income individuals to advanced placement incentive 
    programs that involve--
            ``(A) teacher training;
            ``(B) pre-advanced placement course development;
            ``(C) coordination and articulation between grade levels to 
        prepare students for academic achievement in advanced placement 
        courses;
            ``(D) books and supplies; or
            ``(E) activities to increase the availability of, and 
        participation in, on-line advanced placement courses; or
            ``(F) any other activity directly related to expanding 
        access to and participation in advanced placement incentive 
        programs, particularly for low-income individuals.
        ``(2) State educational agency.--In the case of an eligible 
    entity that is a State educational agency, the entity may use grant 
    funds made available under this section to award subgrants to local 
    educational agencies to enable the local educational agencies to 
    carry out the activities under paragraph (1).
    ``(e) Contracts.--An eligible entity awarded a grant to provide 
online advanced placement courses under this part 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.
    ``(f) Data Collection and Reporting.--
        ``(1) Data collection.--Each eligible entity awarded a grant 
    under this section shall, with respect to each advanced placement 
    subject, annually report to the Secretary on--
            ``(A) the number of students served by the eligible entity 
        who are taking an advanced placement course in that subject;
            ``(B) the number of advanced placement tests taken by 
        students served by the eligible entity in that subject;
            ``(C) the number of students served by the eligible entity 
        scoring at different levels on advanced placement tests in that 
        subject; and
            ``(D) demographic information regarding individuals served 
        by such agency who taking advanced placement courses and tests 
        in that subject 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 the appropriate committees of Congress regarding the 
    information.

``SEC. 1706. SUPPLEMENT, NOT SUPPLANT.

    Grant funds provided under this part shall supplement, and not 
supplant, other non-Federal funds that are available to assist low-
income individuals to pay for the cost of advanced placement test fees 
or to expand access to advanced placement and pre-advanced placement 
courses.

``SEC. 1707. DEFINITIONS.

    ``In this part:
        ``(1) Advanced placement test.--The term `advanced placement 
    test' means an advanced placement test administered by the College 
    Board or approved by the Secretary.
        ``(2) High concentration of low-income students.--The term 
    `high concentration of low-income students', used with respect to a 
    school, means a school that serves a student population 40 percent 
    or more of whom are low-income individuals.
        ``(3) Low-income individual.--The term `low-income individual' 
    means an individual who is determined by a State educational agency 
    or local educational agency to be a child, ages 5 through 17, from 
    a low-income family, on the basis of data used by the Secretary to 
    determine allocations under section 1124 of this Act, data on 
    children eligible for free or reduced-price lunches under the 
    National School Lunch Act, data on children in families receiving 
    assistance under part A of title IV of the Social Security Act, or 
    data on children eligible to receive medical assistance under the 
    medicaid program under title XIX of the Social Security Act, or 
    through an alternate method that combines or extrapolates from 
    those data.

                  ``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 that--
        ``(1) challenge all children to attain their highest academic 
    potential; and
        ``(2) ensure that all students have substantial and ongoing 
    opportunities to attain their highest academic potential through 
    schoolwide programs proven effective in school dropout prevention 
    and reentry.

``SEC. 1803. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this part, there are authorized 
to be appropriated $125,000,000 for fiscal year 2002 and such sums as 
may be necessary for each of the 5 succeeding fiscal years, of which--
        ``(1) 10 percent shall be available to carry out subpart 1 for 
    each fiscal year; and
        ``(2) 90 percent shall be available to carry out subpart 2 for 
    each fiscal year.

               ``Subpart 1--Coordinated National Strategy

``SEC. 1811. NATIONAL ACTIVITIES.

    ``(a) In General.--The Secretary is authorized--
        ``(1) to collect systematic data on the effectiveness of the 
    programs assisted under this part in reducing school dropout rates 
    and increasing school reentry and secondary school graduation 
    rates;
        ``(2) to establish a national clearinghouse of information on 
    effective school dropout prevention and reentry programs that shall 
    disseminate to State educational agencies, local educational 
    agencies, and schools--
            ``(A) the results of research on school dropout prevention 
        and reentry; and
            ``(B) information on effective programs, best practices, 
        and Federal resources to--
                ``(i) reduce annual school dropout rates;
                ``(ii) increase school reentry; and
                ``(iii) increase secondary school graduation rates;
        ``(3) to provide technical assistance to State educational 
    agencies, local educational agencies, and schools in designing and 
    implementing programs and securing resources to implement effective 
    school dropout prevention and reentry programs;
        ``(4) to establish and 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 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 and 
        reentry;
            ``(B) describe the ways in which State educational agencies 
        and local educational agencies can implement effective school 
        dropout prevention and reentry programs using funds from a 
        variety of Federal programs, including the programs under this 
        part; and
            ``(C) examine Federal programs that may have a positive 
        impact on secondary school graduation or school reentry;
        ``(5) to carry out a national recognition program in accordance 
    with subsection (b) that recognizes schools that have made 
    extraordinary progress in lowering school dropout rates; and
        ``(6) to use funds made available for this subpart to carry out 
    the evaluation required under section 1830(c).
    ``(b) Recognition Program.--
        ``(1) Establishment.--The Secretary shall--
            ``(A) establish a national recognition program; and
            ``(B) develop uniform national guidelines for the 
        recognition program that shall be used to recognize eligible 
        schools from nominations submitted by State educational 
        agencies.
        ``(2) Recognition.--The Secretary shall recognize, under the 
    recognition program established under paragraph (1), eligible 
    schools.
        ``(3) Support.--The Secretary may make monetary awards to an 
    eligible school recognized under this subsection in amounts 
    determined appropriate by the Secretary that shall be used for 
    dissemination activities within the eligible school district or 
    nationally.
        ``(4) Definition of eligible school.--In this subsection, the 
    term `eligible school' means a public middle school or secondary 
    school, including a charter school, that has implemented 
    comprehensive reforms that have been effective in lowering school 
    dropout rates for all students--
            ``(A) in that secondary school or charter school; or
            ``(B) in the case of a middle school, in the secondary 
        school that the middle school feeds students into.
    ``(c) Capacity Building.--
        ``(1) In general.--The Secretary, through a contract with one 
    or more non-Federal entities, may conduct a capacity building and 
    design initiative in order to increase the types of proven 
    strategies for school 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 five 
        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 part.
        ``(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 related to school dropout prevention or reentry to 
        100 or more elementary schools or secondary schools; and
            ``(B) developed and published a specific educational 
        program or design related to school dropout prevention or 
        reentry for use by the schools.

           ``Subpart 2--School Dropout Prevention Initiative

``SEC. 1821. DEFINITIONS.

    ``In this subpart:
        ``(1) Low-income student.--The term `low-income student' means 
    a student who is determined by a local educational agency to be 
    from a low-income family using the measures described in section 
    1113(c).
        ``(2) 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, and the 
    Bureau of Indian Affairs for purposes of serving schools funded by 
    the Bureau.

``SEC. 1822. PROGRAM AUTHORIZED.

    ``(a) Grants to State Educational Agencies and Local Educational 
Agencies.--
        ``(1) Amount less than $75,000,000.--
            ``(A) In general.--If the amount appropriated under section 
        1803 for a fiscal year equals or is less than $75,000,000, then 
        the Secretary shall use such amount to award grants, on a 
        competitive basis, to--
                ``(i) State educational agencies to support 
            activities--

                    ``(I) in schools that--

                        ``(aa) serve students in grades 6 through 12; 
                    and
                        ``(bb) have annual school dropout rates that 
                    are above the State average annual school dropout 
                    rate; or

                    ``(II) in the middle schools that feed students 
                into the schools described in subclause (I); or

                ``(ii) local educational agencies that operate--

                    ``(I) schools that--

                        ``(aa) serve students in grades 6 through 12; 
                    and
                        ``(bb) have annual school dropout rates that 
                    are above the State average annual school dropout 
                    rate; or

                    ``(II) middle schools that feed students into the 
                schools described in subclause (I).

            ``(B) Use of grant funds.--Grant funds awarded under this 
        paragraph shall be used to fund effective, sustainable, and 
        coordinated school dropout prevention and reentry programs that 
        may include the activities described in subsection (b)(2), in--
                ``(i) schools serving students in grades 6 through 12 
            that have annual school dropout rates that are above the 
            State average annual school dropout rate; or
                ``(ii) the middle schools that feed students into the 
            schools described in clause (i).
        ``(2) Amount less than $250,000,000 but more than 
    $75,000,000.--If the amount appropriated under section 1803 for a 
    fiscal year is less than $250,000,000 but more than $75,000,000, 
    then the Secretary shall use such amount to award grants, on a 
    competitive basis, to State educational agencies to enable the 
    State educational agencies to award subgrants under subsection (b).
        ``(3) Amount equal to or exceeds $250,000,000.--If the amount 
    appropriated under section 1803 for a fiscal year equals or exceeds 
    $250,000,000, then the Secretary shall use such amount to award a 
    grant to each State educational agency in an amount that bears the 
    same relation to such appropriated amount as the amount the State 
    educational agency received under part A for the preceding fiscal 
    year bears to the amount received by all State educational agencies 
    under such part for the preceding fiscal year, to enable the State 
    educational agency to award subgrants under subsection (b).
    ``(b) Subgrants to Local Educational Agencies.--
        ``(1) In general.--From amounts made available to a State 
    educational agency under paragraph (2) or (3) of subsection (a), 
    the State educational agency shall award subgrants, on a 
    competitive basis, to local educational agencies that operate 
    public schools that serve students in grades 6 through 12 and that 
    have annual school dropout rates that are above the State average 
    annual school dropout rate, to enable those schools, or the middle 
    schools that feed students into those schools, to implement 
    effective, sustainable, and coordinated school dropout prevention 
    and reentry programs that involve activities such as--
            ``(A) professional development;
            ``(B) obtaining curricular materials;
            ``(C) release time for professional staff to obtain 
        professional development;
            ``(D) planning and research;
            ``(E) remedial education;
            ``(F) reduction in pupil-to-teacher ratios;
            ``(G) efforts to meet State student academic achievement 
        standards;
            ``(H) counseling and mentoring for at-risk students;
            ``(I) implementing comprehensive school reform models, such 
        as creating smaller learning communities; and
            ``(J) school reentry activities.
        ``(2) Amount.--Subject to paragraph (3), a subgrant under this 
    subpart shall be awarded--
            ``(A) in the first year that a local educational agency 
        receives a subgrant payment under this subpart, in an amount 
        that is based on factors such as--
                ``(i) the size of schools operated by the local 
            educational agency;
                ``(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 year, in an amount that is not less 
        than 75 percent of the amount the local educational agency 
        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 local educational agency 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 local educational agency 
        received under this subpart in the first year.
        ``(3) Duration.--A subgrant 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 1830(a), that 
    significant progress has been made in lowering the annual school 
    dropout rate for secondary schools participating in the program 
    assisted under this subpart.

``SEC. 1823. APPLICATIONS.

    ``(a) In General.--To receive--
        ``(1) a grant under this subpart, a State educational agency or 
    local educational agency shall submit an application and plan to 
    the Secretary at such time, in such manner, and accompanied by such 
    information as the Secretary may reasonably require; and
        ``(2) a subgrant under this subpart, a local educational agency 
    shall submit an application and 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.
    ``(b) Contents.--
        ``(1) State educational agency and local educational agency.--
    Each application and plan submitted under subsection (a) shall--
            ``(A) include an outline--
                ``(i) of the State educational agency's or local 
            educational agency's strategy for reducing the State 
            educational agency or local educational agency's annual 
            school dropout rate;
                ``(ii) for targeting secondary schools, and the middle 
            schools that feed students into those secondary schools, 
            that have the highest annual school dropout rates; and
                ``(iii) for assessing the effectiveness of the efforts 
            described in the plan;
            ``(B) contain an identification of the schools in the State 
        or operated by the local educational agency that have annual 
        school dropout rates that are greater than the average annual 
        school dropout rate for the State;
            ``(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 State and 
        local funds available for school dropout prevention and reentry 
        programs; and
            ``(G) describe how the activities to be assisted conform 
        with research knowledge about school dropout prevention and 
        reentry.
        ``(2) Local educational agency.--Each application and plan 
    submitted under subsection (a) by a local educational agency shall 
    contain, in addition to the requirements of paragraph (1)--
            ``(A) an assurance that the local educational agency is 
        committed to providing ongoing operational support for such 
        schools to address the problem of school dropouts for a period 
        of 5 years; and
            ``(B) an assurance that the local educational agency will 
        support the plan, including--
                ``(i) provision of release time for teacher training;
                ``(ii) efforts to coordinate activities for secondary 
            schools and the middle schools that feed students into 
            those secondary schools; and
                ``(iii) encouraging other schools served by the local 
            educational agency to participate in the plan.

``SEC. 1824. STATE RESERVATION.

    ``A State educational agency that receives a grant under paragraph 
(2) or (3) of section 1822(a) may reserve not more than 5 percent of 
the grant funds for administrative costs and State activities related 
to school dropout prevention and reentry activities, of which not more 
than 2 percent of the grant funds may be used for administrative costs.

``SEC. 1825. STRATEGIES AND CAPACITY BUILDING.

    ``Each local educational agency receiving a grant or subgrant under 
this subpart and each State educational agency receiving a grant under 
this subpart shall implement scientifically based, sustainable, and 
widely replicated strategies for school dropout prevention and reentry. 
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 serving at-risk 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, and developing 
    clear linkages to career skills and employment.

``SEC. 1826. SELECTION OF LOCAL EDUCATIONAL AGENCIES FOR SUBGRANTS.

    ``(a) State Educational Agency Review and Award.--The State 
educational agency shall review applications submitted under section 
1823(a)(2) and award subgrants to local educational agencies with the 
assistance and advice of a panel of experts on school dropout 
prevention and reentry.
    ``(b) Eligibility.--A local educational agency is eligible to 
receive a subgrant under this subpart if the local educational agency 
operates a public school (including a public alternative school)--
        ``(1) that is eligible to receive assistance under part A; and
        ``(2)(A) that serves students 50 percent or more of whom are 
    low-income students; or
        ``(B) in which a majority of the students come from feeder 
    schools that serve students 50 percent or more of whom are low-
    income students.

``SEC. 1827. COMMUNITY BASED ORGANIZATIONS.

    ``A local educational agency that receives a grant or subgrant 
under this subpart and a State educational agency that receives a grant 
under this subpart may use the funds to secure necessary services from 
a community-based organization or other government agency if the funds 
are used to provide school dropout prevention and reentry activities 
related to schoolwide efforts.

``SEC. 1828. TECHNICAL ASSISTANCE.

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

``SEC. 1829. SCHOOL DROPOUT RATE CALCULATION.

    ``For purposes of calculating an annual school dropout rate under 
this subpart, a school shall use 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.

``SEC. 1830. REPORTING AND ACCOUNTABILITY.

    ``(a) Local Educational Agency Reports.--
        ``(1) In general.--To receive funds under this subpart for a 
    fiscal year after the first fiscal year that a local educational 
    agency receives funds under this subpart, the local educational 
    agency shall provide, on an annual basis, a report regarding the 
    status of the implementation of activities funded under this 
    subpart, and the dropout data for students at schools assisted 
    under this subpart, disaggregated by race and ethnicity, to the--
            ``(A) Secretary, if the local educational agency receives a 
        grant under section 1822(a)(1); or
            ``(B) State educational agency, if the local educational 
        agency receives a subgrant under paragraph (2) or (3) of 
        section 1822(a).
        ``(2) Dropout data.--The dropout data under paragraph (1) shall 
    include annual school dropout rates for each fiscal year, starting 
    with the 2 fiscal years before the local educational agency 
    received funds under this subpart.
    ``(b) State Report on Program Activities.--Each State educational 
agency receiving funds under this subpart shall provide to the 
Secretary, at such time and in such format as the Secretary may 
require, information on the status of the implementation of activities 
funded under this subpart and outcome data for students in schools 
assisted under this subpart.
    ``(c) Accountability.--The Secretary shall evaluate the effect of 
the activities assisted under this subpart on school dropout prevention 
compared, if feasible, to a control group using control procedures. The 
Secretary may use funds appropriated for subpart 1 to carry out this 
evaluation.

                      ``PART I--GENERAL PROVISIONS

``SEC. 1901. FEDERAL REGULATIONS.

    ``(a) In General.--The Secretary may issue such regulations as are 
necessary to reasonably ensure that there is compliance with this 
title.
    ``(b) Negotiated Rulemaking Process.--
        ``(1) In general.--Before publishing in the Federal Register 
    proposed regulations to carry out this title, the Secretary shall 
    obtain the advice and recommendations of representatives of 
    Federal, State, and local administrators, parents, teachers, 
    paraprofessionals, and members of local school boards and other 
    organizations involved with the implementation and operation of 
    programs under this title.
        ``(2) Meetings and electronic exchange.--Such advice and 
    recommendations may be obtained through such mechanisms as regional 
    meetings and electronic exchanges of information.
        ``(3) Proposed regulations.--After obtaining such advice and 
    recommendations, and before publishing proposed regulations, the 
    Secretary shall--
            ``(A) establish a negotiated rulemaking process on, at a 
        minimum, standards and assessments;
            ``(B) select individuals to participate in such process 
        from among individuals or groups that provided advice and 
        recommendations, including representation from all geographic 
        regions of the United States, in such numbers as will provide 
        an equitable balance between representatives of parents and 
        students and representatives of educators and education 
        officials; and
            ``(C) prepare a draft of proposed policy options that shall 
        be provided to the individuals selected by the Secretary under 
        subparagraph (B) not less than 15 days before the first meeting 
        under such process.
        ``(4) Process.--Such process--
            ``(A) shall be conducted in a timely manner to ensure that 
        final regulations are issued by the Secretary not later than 1 
        year after the date of enactment of the No Child Left Behind 
        Act of 2001; and
            ``(B) shall not be subject to the Federal Advisory 
        Committee Act, but shall otherwise follow the provisions of the 
        Negotiated Rulemaking Act of 1990 (5 U.S.C. 561 et seq.).
        ``(5) Emergency situation.--In an emergency situation in which 
    regulations to carry out this title must be issued within a very 
    limited time to assist State educational agencies and local 
    educational agencies with the operation of a program under this 
    title, the Secretary may issue proposed regulations without 
    following such process but shall, immediately thereafter and before 
    issuing final regulations, conduct regional meetings to review such 
    proposed regulations.
    ``(c) Limitation.--Regulations to carry out this part may not 
require local programs to follow a particular instructional model, such 
as the provision of services outside the regular classroom or school 
program.

``SEC. 1902. AGREEMENTS AND RECORDS.

    ``(a) Agreements.--All published proposed regulations shall conform 
to agreements that result from negotiated rulemaking described in 
section 1901 unless the Secretary reopens the negotiated rulemaking 
process or provides a written explanation to the participants involved 
in the process explaining why the Secretary decided to depart from, and 
not adhere to, such agreements.
    ``(b) Records.--The Secretary shall ensure that an accurate and 
reliable record of agreements reached during the negotiations process 
is maintained.

``SEC. 1903. STATE ADMINISTRATION.

    ``(a) Rulemaking.--
        ``(1) In general.--Each State that receives funds under this 
    title shall--
            ``(A) ensure that any State rules, regulations, and 
        policies relating to this title conform to the purposes of this 
        title and provide any such proposed rules, regulations, and 
        policies to the committee of practitioners created under 
        subsection (b) for review and comment;
            ``(B) minimize such rules, regulations, and policies to 
        which the State's local educational agencies and schools are 
        subject;
            ``(C) eliminate or modify State and local fiscal accounting 
        requirements in order to facilitate the ability of schools to 
        consolidate funds under schoolwide programs; and
            ``(D) identify any such rule, regulation, or policy as a 
        State-imposed requirement.
        ``(2) Support and facilitation.--State rules, regulations, and 
    policies under this title shall support and facilitate local 
    educational agency and school-level systemic reform designed to 
    enable all children to meet the challenging State student academic 
    achievement standards.
    ``(b) Committee of Practitioners.--
        ``(1) In general.--Each State educational agency that receives 
    funds under this title shall create a State committee of 
    practitioners to advise the State in carrying out its 
    responsibilities under this title.
        ``(2) Membership.--Each such committee shall include--
            ``(A) as a majority of its members, representatives from 
        local educational agencies;
            ``(B) administrators, including the administrators of 
        programs described in other parts of this title;
            ``(C) teachers, including vocational educators;
            ``(D) parents;
            ``(E) members of local school boards;
            ``(F) representatives of private school children; and
            ``(G) pupil services personnel.
        ``(3) Duties.--The duties of such committee shall include a 
    review, before publication, of any proposed or final State rule or 
    regulation pursuant to this title. In an emergency situation where 
    such rule or regulation must be issued within a very limited time 
    to assist local educational agencies with the operation of the 
    program under this title, the State educational agency may issue a 
    regulation without prior consultation, but shall immediately 
    thereafter convene the State committee of practitioners to review 
    the emergency regulation before issuance in final form.

``SEC. 1904. LOCAL EDUCATIONAL AGENCY SPENDING AUDITS.

    ``(a) Audits.--The Comptroller General of the United States shall 
conduct audits of not less than 6 local educational agencies that 
receive funds under part A in each fiscal year to determine more 
clearly and specifically how local educational agencies are expending 
such funds. Such audits--
        ``(1) shall be conducted in 6 local educational agencies that 
    represent the size, ethnic, economic, and geographic diversity of 
    local educational agencies; and
        ``(2) 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) each year, the Comptroller General of the 
United States 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.

``SEC. 1905. PROHIBITION AGAINST FEDERAL MANDATES, DIRECTION, OR 
              CONTROL.

    ``Nothing in this title shall be construed to authorize an officer 
or employee of the Federal Government to mandate, direct, or control a 
State, local educational agency, or school's specific instructional 
content, academic achievement standards and assessments, curriculum, or 
program of instruction.

``SEC. 1906. RULE OF CONSTRUCTION ON EQUALIZED SPENDING.

    ``Nothing in this title shall be construed to mandate equalized 
spending per pupil for a State, local educational agency, or school.

``SEC. 1907. STATE REPORT ON DROPOUT DATA.

    ``Not later than 1 year after a State educational agency receives 
funds under this title, the agency shall report to the Secretary and 
statewide, all school district data regarding annual school dropout 
rates in the State disaggregated by race and ethnicity according to 
procedures that conform with the National Center for Education 
Statistics' Common Core of Data.

``SEC. 1908. REGULATIONS FOR SECTIONS 1111 AND 1116.

    ``The Secretary shall issue regulations for sections 1111 and 1116 
not later than 6 months after the date of enactment of the No Child 
Left Behind Act of 2001.''.

TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS AND 
                               PRINCIPALS

SEC. 201. TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND.

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

 ``TITLE II--PREPARING, TRAINING, AND RECRUITING HIGH QUALITY TEACHERS 
                             AND PRINCIPALS

      ``PART A--TEACHER AND PRINCIPAL TRAINING AND RECRUITING FUND

``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 through strategies 
    such as improving teacher and principal quality and increasing the 
    number of highly qualified teachers in the classroom and highly 
    qualified principals and assistant principals in schools; and
        ``(2) hold local educational agencies and schools accountable 
    for improvements in student academic achievement.

``SEC. 2102. DEFINITIONS.

    ``In this part:
        ``(1) Arts and sciences.--The term `arts and sciences' means--
            ``(A) when referring to an organizational unit of an 
        institution of higher education, any academic unit that offers 
        one or more academic majors in disciplines or content areas 
        corresponding to the academic subjects in which teachers teach; 
        and
            ``(B) when referring to a specific academic subject, the 
        disciplines or content areas in which an academic major is 
        offered by an organizational unit described in subparagraph 
        (A).
        ``(2) Charter school.--The term `charter school' has the 
    meaning given the term in section 5210.
        ``(3) High-need local educational agency.--The term `high-need 
    local educational agency' means a local educational agency--
            ``(A)(i) that serves not fewer than 10,000 children from 
        families with incomes below the poverty line; or
            ``(ii) for which not less than 20 percent of the children 
        served by the agency are from families with incomes below the 
        poverty line; and
            ``(B)(i) for which there is a high percentage of teachers 
        not teaching in the academic subjects or grade levels that the 
        teachers were trained to teach; or
            ``(ii) for which there is a high percentage of teachers 
        with emergency, provisional, or temporary certification or 
        licensing.
        ``(4) Highly qualified paraprofessional.--The term `highly 
    qualified paraprofessional' means a paraprofessional who has not 
    less than 2 years of--
            ``(A) experience in a classroom; and
            ``(B) postsecondary education or demonstrated competence in 
        a field or academic subject for which there is a significant 
        shortage of qualified teachers.
        ``(5) Out-of-field teacher.--The term `out-of-field teacher' 
    means a teacher who is teaching an academic subject or a grade 
    level for which the teacher is not highly qualified.
        ``(6) Principal.--The term `principal' includes an assistant 
    principal.

``SEC. 2103. AUTHORIZATIONS 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) $3,175,000,000 for fiscal year 2002 
and such sums as may be necessary for each of the 5 succeeding fiscal 
years.
    ``(b) National Programs.--There are authorized to be appropriated 
to carry out subpart 5 such sums as may be necessary for fiscal year 
2002 and each of the 5 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 the cost 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) one-half of 1 percent for allotments for the 
            United States Virgin Islands, Guam, American Samoa, and the 
            Commonwealth of the Northern Mariana Islands, to be 
            distributed among those outlying areas on the basis of 
            their relative need, as determined by the Secretary, in 
            accordance with the purpose of this part; and
                ``(ii) one-half of 1 percent for the Secretary of the 
            Interior for programs under this part in schools operated 
            or funded by the Bureau of Indian Affairs.
        ``(2) State allotments.--
            ``(A) Hold harmless.--
                ``(i) In general.--Subject to subparagraph (B), from 
            the funds 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--

                    ``(I) section 2202(b) of this Act (as in effect on 
                the day before the date of enactment of the No Child 
                Left Behind Act of 2001); 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).

                ``(ii) Ratable reduction.--If the funds described in 
            clause (i) are insufficient to pay the full amounts that 
            all States are eligible to receive under clause (i) for any 
            fiscal year, the Secretary shall ratably reduce those 
            amounts for the fiscal year.
            ``(B) Allotment of additional funds.--
                ``(i) In general.--Subject to clause (ii), for any 
            fiscal year for which the funds appropriated under section 
            2103(a) and not reserved under paragraph (1) exceed the 
            total amount required to make allotments under subparagraph 
            (A), the Secretary shall allot to each of the States 
            described in subparagraph (A) 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 one-half of 1 
            percent of the total excess amount allotted under such 
            clause 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 scientifically based research and an explanation of why 
    the activities are expected to improve student academic 
    achievement.
        ``(2) 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.
        ``(3) A description of how the State educational agency will 
    ensure that activities assisted under this subpart are aligned with 
    challenging State academic content and student academic achievement 
    standards, State assessments, and State and local curricula.
        ``(4) A description of how the State educational agency will 
    use funds under this part to improve the quality of the State's 
    teachers and principals.
        ``(5)(A) 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.
        ``(B) A description of the comprehensive strategy that the 
    State educational agency will use, as part of such coordination 
    effort, to ensure that teachers are trained in the use of 
    technology so that technology and applications of technology are 
    effectively used in the classroom to improve teaching and learning 
    in all curricula and academic subjects, as appropriate.
        ``(6) A description of how the State educational agency will 
    encourage the development of proven, innovative strategies to 
    deliver intensive professional development programs that are both 
    cost-effective and easily accessible, such as strategies that 
    involve delivery through the use of technology, peer networks, and 
    distance learning.
        ``(7)(A) A description of how the State educational agency will 
    ensure compliance with the requirements for professional 
    development activities described in section 9101 and how the 
    activities to be carried out under the grant will be developed 
    collaboratively and based on the input of teachers, principals, 
    parents, administrators, paraprofessionals, and other school 
    personnel.
        ``(B) In the case of a State in which the State educational 
    agency is not the entity responsible for teacher professional 
    standards, certification, and licensing, an assurance that the 
    State activities carried out under this subpart are carried out in 
    conjunction with the entity responsible for such standards, 
    certification, and licensing under State law.
        ``(8) 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.
        ``(9) A description of the State educational agency's annual 
    measurable objectives under section 1119(a)(2).
        ``(10) A description of how the State educational agency will 
    use funds under this part to meet the teacher and paraprofessional 
    requirements of section 1119 and how the State educational agency 
    will hold local educational agencies accountable for meeting the 
    annual measurable objectives described in section 1119(a)(2).
        ``(11) In the case of a State that has a charter school law 
    that exempts teachers from State certification and licensing 
    requirements, the specific portion of the State law that provides 
    for the exemption.
        ``(12) An assurance that the State educational agency will 
    comply with section 9501 (regarding participation by private school 
    children and teachers).
    ``(c) Deemed Approval.--An application submitted by a State 
educational agency pursuant to subsection (a) shall be deemed to be 
approved by the Secretary unless the Secretary makes a written 
determination, prior to the expiration of the 120-day period beginning 
on the date on which the Secretary received the application, that the 
application is not in compliance with this subpart.
    ``(d) Disapproval.--The Secretary shall not finally disapprove the 
application, except after giving the State educational agency notice 
and an opportunity for a hearing.
    ``(e) Notification.--If the Secretary finds that the application is 
not in compliance, in whole or in part, with this subpart, the 
Secretary shall--
        ``(1) give the State educational agency notice and an 
    opportunity for a hearing; and
        ``(2) notify the State educational agency of the finding of 
    noncompliance and, in such notification, shall--
            ``(A) cite the specific provisions in the application that 
        are not in compliance; and
            ``(B) request additional information, only as to the 
        noncompliant provisions, needed to make the application 
        compliant.
    ``(f) Response.--If the State educational agency responds to the 
Secretary's notification described in subsection (e)(2) during the 45-
day period beginning on the date on which the agency received the 
notification, and resubmits the application with the requested 
information described in subsection (e)(2)(B), the Secretary shall 
approve or disapprove such application prior to the later of--
        ``(1) the expiration of the 45-day period beginning on the date 
    on which the application is resubmitted; or
        ``(2) the expiration of the 120-day period described in 
    subsection (c).
    ``(g) Failure To Respond.--If the State educational agency does not 
respond to the Secretary's notification described in subsection (e)(2) 
during the 45-day period beginning on the date on which the agency 
received the notification, such application shall be deemed to be 
disapproved.

``SEC. 2113. STATE USE OF FUNDS.

    ``(a) In General.--A State that receives a grant under section 2111 
shall--
        ``(1) reserve 95 percent of the funds made available through 
    the grant to make subgrants to local educational agencies as 
    described in subpart 2;
        ``(2) reserve 2.5 percent (or, for a fiscal year described in 
    subsection (b), the percentage determined under subsection (b)) of 
    the funds to make subgrants to local partnerships as described in 
    subpart 3; and
        ``(3) use the remainder of the funds for State activities 
    described in subsection (c).
    ``(b) Special Rule.--For any fiscal year for which the total amount 
that would be reserved by all States under subsection (a)(2), if the 
States applied a 2.5 percentage rate, exceeds $125,000,000, the 
Secretary shall determine an alternative percentage that the States 
shall apply for that fiscal year under subsection (a)(2) so that the 
total amount reserved by all States under subsection (a)(2) equals 
$125,000,000.
    ``(c) State Activities.--The State educational agency for a State 
that receives a grant under section 2111 shall use the funds described 
in subsection (a)(3) to carry out one or more of the following 
activities, which may be carried out through a grant or contract with a 
for-profit or nonprofit entity:
        ``(1) Reforming teacher and principal certification (including 
    recertification) or licensing requirements to ensure that--
            ``(A)(i) teachers have the necessary subject matter 
        knowledge and teaching skills in the academic subjects that the 
        teachers teach; and
            ``(ii) principals have the instructional leadership skills 
        to help teachers teach and students learn;
            ``(B) teacher certification (including recertification) or 
        licensing requirements are aligned with challenging State 
        academic content standards; and
            ``(C) teachers have the subject matter knowledge and 
        teaching skills, including technology literacy, and principals 
        have the instructional leadership skills, necessary to help 
        students meet challenging State student academic achievement 
        standards.
        ``(2) Carrying out programs that provide support to teachers or 
    principals, including support for teachers and principals new to 
    their profession, such as programs that--
            ``(A) provide teacher mentoring, team teaching, reduced 
        class schedules, and intensive professional development; and
            ``(B) use standards or assessments for guiding beginning 
        teachers that are consistent with challenging State student 
        academic achievement standards and with the requirements for 
        professional development activities described in section 9101.
        ``(3) Carrying out programs that establish, expand, or improve 
    alternative routes for State certification of teachers and 
    principals, especially in the areas of mathematics and science, for 
    highly qualified individuals with a baccalaureate or master's 
    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 or 
    principals.
        ``(4) Developing and implementing mechanisms to assist local 
    educational agencies and schools in effectively recruiting and 
    retaining highly qualified teachers, including specialists in core 
    academic subjects, principals, and pupil services personnel, except 
    that funds made available under this paragraph may be used for 
    pupil services personnel only--
            ``(A) if the State educational agency is making progress 
        toward meeting the annual measurable objectives described in 
        section 1119(a)(2); and
            ``(B) in a manner consistent with mechanisms to assist 
        local educational agencies and schools in effectively 
        recruiting and retaining highly qualified teachers and 
        principals.
        ``(5) Reforming tenure systems, implementing teacher testing 
    for subject matter knowledge, and implementing teacher testing for 
    State certification or licensing, consistent with title II of the 
    Higher Education Act of 1965.
        ``(6) Providing professional development for teachers and 
    principals and, in cases in which a State educational agency 
    determines support to be appropriate, supporting the participation 
    of pupil services personnel in the same type of professional 
    development activities as are made available to teachers and 
    principals.
        ``(7) Developing systems to measure the effectiveness of 
    specific professional development programs and strategies to 
    document gains in student academic achievement or increases in 
    teacher mastery of the academic subjects the teachers teach.
        ``(8) Fulfilling the State educational agency's 
    responsibilities concerning proper and efficient administration of 
    the programs carried out under this part, including provision of 
    technical assistance to local educational agencies.
        ``(9) Funding projects to promote reciprocity of teacher and 
    principal certification or licensing between or among States, 
    except that no reciprocity agreement developed under this paragraph 
    or developed using funds provided under this part may lead to the 
    weakening of any State teaching certification or licensing 
    requirement.
        ``(10) Developing or assisting local educational agencies in 
    the development and use of proven, innovative strategies to deliver 
    intensive professional development programs that are both cost-
    effective and easily accessible, such as strategies that involve 
    delivery through the use of technology, peer networks, and distance 
    learning.
        ``(11) Encouraging and supporting the training of teachers and 
    administrators to effectively integrate technology into curricula 
    and instruction, including training to improve the ability to 
    collect, manage, and analyze data to improve teaching, 
    decisionmaking, school improvement efforts, and accountability.
        ``(12) Developing, or assisting local educational agencies in 
    developing, merit-based performance systems, and strategies that 
    provide differential and bonus pay for teachers in high-need 
    academic subjects such as reading, mathematics, and science and 
    teachers in high-poverty schools and districts.
        ``(13) Providing assistance to local educational agencies for 
    the development and implementation of professional development 
    programs for principals that enable the principals to be effective 
    school leaders and prepare all students to meet challenging State 
    academic content and student academic achievement standards, and 
    the development and support of school leadership academies to help 
    exceptionally talented aspiring or current principals and 
    superintendents become outstanding managers and educational 
    leaders.
        ``(14) Developing, or assisting local educational agencies in 
    developing, teacher advancement initiatives that promote 
    professional growth and emphasize multiple career paths (such as 
    paths to becoming a career teacher, mentor teacher, or exemplary 
    teacher) and pay differentiation.
        ``(15) Providing assistance to teachers to enable them to meet 
    certification, licensing, or other requirements needed to become 
    highly qualified by the end of the fourth year for which the State 
    receives funds under this part (as amended by the No Child Left 
    Behind Act of 2001).
        ``(16) Supporting activities that ensure that teachers are able 
    to use challenging State academic content standards and student 
    academic achievement standards, and State assessments, to improve 
    instructional practices and improve student academic achievement.
        ``(17) Funding projects and carrying out programs to encourage 
    men to become elementary school teachers.
        ``(18) 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.
    ``(d) Administrative Costs.--A State educational agency or State 
agency for higher education receiving a grant under this part may use 
not more than 1 percent of the grant funds for planning and 
administration related to carrying out activities under subsection (c) 
and subpart 3.
    ``(e) 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.
    ``(f) Supplement, Not Supplant.--Funds received under this subpart 
shall be used to supplement, and not supplant, non-Federal funds that 
would otherwise be used for activities authorized under this subpart.

          ``Subpart 2--Subgrants to Local Educational Agencies

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

    ``(a) Subgrants to Local Educational Agencies.--
        ``(1) In general.--The Secretary may make a grant to a State 
    under subpart 1 only if the State educational agency agrees to 
    distribute the funds described in this subsection as subgrants to 
    local educational agencies under this subpart.
        ``(2) Hold harmless.--
            ``(A) In general.--From the funds reserved by a State under 
        section 2113(a)(1), the State educational agency shall allocate 
        to each local educational agency in the State an amount equal 
        to the total amount that such agency received for fiscal year 
        2001 under--
                ``(i) section 2203(1)(B) of this Act (as in effect on 
            the day before the date of enactment of the No Child Left 
            Behind Act of 2001); 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).
            ``(B) Nonparticipating agencies.--In the case of a local 
        educational agency that did not receive any funds for fiscal 
        year 2001 under one or both of the provisions referred to in 
        clauses (i) and (ii) of subparagraph (A), the amount allocated 
        to the agency under such subparagraph shall be the total amount 
        that the agency would have received for fiscal year 2001 if the 
        agency had elected to participate in all of the programs for 
        which the agency was eligible under each of the provisions 
        referred to in those clauses.
            ``(C) Ratable reduction.--If the funds described in 
        subparagraph (A) are insufficient to pay the full amounts that 
        all local educational agencies in the State are eligible to 
        receive under subparagraph (A) for any fiscal year, the State 
        educational agency shall ratably reduce such amounts for the 
        fiscal year.
        ``(3) Allocation of additional funds.--For any fiscal year for 
    which the funds reserved by a State under section 2113(a)(1) exceed 
    the total amount required to make allocations under paragraph (2), 
    the State educational agency shall allocate to each of the eligible 
    local educational agencies in the State the sum of--
            ``(A) an amount that bears the same relationship to 20 
        percent of the excess 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
            ``(B) an amount that bears the same relationship to 80 
        percent of the excess 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) challenging State academic content standards and 
        student academic achievement standards, and State 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 scientifically based research and an explanation of why 
    the activities are expected to improve student academic 
    achievement.
        ``(2) A description of how the activities will have a 
    substantial, measurable, and positive impact on student academic 
    achievement 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 within the jurisdiction of the local 
    educational agency that--
            ``(A) have the lowest proportion of highly qualified 
        teachers;
            ``(B) have the largest average class size; or
            ``(C) are identified for school improvement under section 
        1116(b).
        ``(4) A description of how the local educational agency will 
    coordinate professional development activities authorized under 
    this subpart with professional development activities provided 
    through other Federal, State, and local programs.
        ``(5) A description of the professional development activities 
    that will be made available to teachers and principals under this 
    subpart and how the local educational agency will ensure that the 
    professional development (which may include teacher mentoring) 
    needs of teachers and principals will be met using funds under this 
    subpart.
        ``(6) A description of how the local educational agency will 
    integrate funds under this subpart with funds received under part D 
    that are used for professional development to train teachers to 
    integrate technology into curricula and instruction to improve 
    teaching, learning, and technology literacy.
        ``(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 
    provide training to enable teachers to--
            ``(A) teach and address the needs of students with 
        different learning styles, particularly students with 
        disabilities, students with special learning needs (including 
        students who are gifted and talented), and students with 
        limited English proficiency;
            ``(B) improve student behavior in the classroom and 
        identify early and appropriate interventions to help students 
        described in subparagraph (A) learn;
            ``(C) involve parents in their child's education; and
            ``(D) understand and use data and assessments to improve 
        classroom practice and student learning.
        ``(10) A description of how the local educational agency will 
    use funds under this subpart to meet the requirements of section 
    1119.
        ``(11) An assurance that the local educational agency will 
    comply with section 9501 (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 participating 
    in programs under part A of title I, and shall take into account 
    the activities that need to be conducted in order to give teachers 
    the means, including subject matter knowledge and teaching skills, 
    and to give principals the instructional leadership skills to help 
    teachers, to provide students with the opportunity to meet 
    challenging State and local student academic achievement standards.

``SEC. 2123. LOCAL USE OF FUNDS.

    ``(a) In General.--A local educational agency that receives a 
subgrant under section 2121 shall use the funds made available through 
the subgrant to carry out one or more of the following activities, 
including carrying out the activities through a grant or contract with 
a for-profit or nonprofit entity:
        ``(1) Developing and implementing mechanisms to assist schools 
    in effectively recruiting and retaining highly qualified teachers, 
    including specialists in core academic subjects, principals, and 
    pupil services personnel, except that funds made available under 
    this paragraph may be used for pupil services personnel only--
            ``(A) if the local educational agency is making progress 
        toward meeting the annual measurable objectives described in 
        section 1119(a)(2); and
            ``(B) in a manner consistent with mechanisms to assist 
        schools in effectively recruiting and retaining highly 
        qualified teachers and principals.
        ``(2) Developing and implementing initiatives to assist in 
    recruiting highly qualified teachers (particularly initiatives that 
    have proven effective in retaining highly qualified teachers), and 
    hiring highly qualified teachers, who will be assigned teaching 
    positions within their fields, including--
            ``(A) providing scholarships, signing bonuses, or other 
        financial incentives, such as differential pay, for teachers to 
        teach--
                ``(i) in academic subjects in which there exists a 
            shortage of highly qualified teachers within a school or 
            within the local educational agency; and
                ``(ii) in schools in which there exists a shortage of 
            highly qualified teachers;
            ``(B) recruiting and hiring highly qualified teachers to 
        reduce class size, particularly in the early grades; and
            ``(C) establishing programs that--
                ``(i) train and hire 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);
                ``(ii) train and hire highly qualified teachers of 
            special needs children, as well as teaching specialists in 
            core academic subjects who will provide increased 
            individualized instruction to students;
                ``(iii) recruit qualified professionals from other 
            fields, including highly qualified paraprofessionals, and 
            provide such professionals with alternative routes to 
            teacher certification, including developing and 
            implementing hiring policies that ensure comprehensive 
            recruitment efforts as a way to expand the applicant pool, 
            such as through identifying teachers certified through 
            alternative routes, and using a system of intensive 
            screening designed to hire the most qualified applicants; 
            and
                ``(iv) provide increased opportunities for minorities, 
            individuals with disabilities, and other individuals 
            underrepresented in the teaching profession.
        ``(3) Providing professional development activities--
            ``(A) that improve the knowledge of teachers and principals 
        and, in appropriate cases, paraprofessionals, concerning--
                ``(i) one or more of the core academic subjects that 
            the teachers teach; and
                ``(ii) effective instructional strategies, methods, and 
            skills, and use of challenging State academic content 
            standards and student academic achievement standards, and 
            State assessments, to improve teaching practices and 
            student academic achievement; and
            ``(B) that improve the knowledge of teachers and principals 
        and, in appropriate cases, paraprofessionals, concerning 
        effective instructional practices and that--
                ``(i) involve collaborative groups of teachers and 
            administrators;
                ``(ii) provide training in how to teach and address the 
            needs of students with different learning styles, 
            particularly students with disabilities, students with 
            special learning needs (including students who are gifted 
            and talented), and students with limited English 
            proficiency;
                ``(iii) provide training in methods of--

                    ``(I) improving student behavior in the classroom; 
                and
                    ``(II) identifying early and appropriate 
                interventions to help students described in clause (ii) 
                learn;

                ``(iv) provide training to enable teachers and 
            principals to involve parents in their child's education, 
            especially parents of limited English proficient and 
            immigrant children; and
                ``(v) provide training on how to understand and use 
            data and assessments to improve classroom practice and 
            student learning.
        ``(4) Developing and implementing initiatives to promote 
    retention of highly qualified teachers and principals, particularly 
    within elementary schools and secondary schools with a high 
    percentage of low-achieving students, including programs that 
    provide--
            ``(A) teacher mentoring from exemplary teachers, 
        principals, or superintendents;
            ``(B) induction and support for teachers and principals 
        during their first 3 years of employment as teachers or 
        principals, respectively;
            ``(C) incentives, including financial incentives, to retain 
        teachers who have a record of success in helping low-achieving 
        students improve their academic achievement; or
            ``(D) incentives, including financial incentives, to 
        principals who have a record of improving the academic 
        achievement of all students, but particularly students from 
        economically disadvantaged families, students from racial and 
        ethnic minority groups, and students with disabilities.
        ``(5) Carrying out programs and activities that are designed to 
    improve the quality of the teacher force, such as--
            ``(A) innovative professional development programs (which 
        may be provided through partnerships including institutions of 
        higher education), including programs that train teachers and 
        principals to integrate technology into curricula and 
        instruction to improve teaching, learning, and technology 
        literacy, are consistent with the requirements of section 9101, 
        and are coordinated with activities carried out under part D;
            ``(B) development and use of proven, cost-effective 
        strategies for the implementation of professional development 
        activities, such as through the use of technology and distance 
        learning;
            ``(C) tenure reform;
            ``(D) merit pay programs; and
            ``(E) testing of elementary school and secondary school 
        teachers in the academic subjects that the teachers teach.
        ``(6) Carrying out professional development activities designed 
    to improve the quality of principals and superintendents, including 
    the development and support of academies to help talented aspiring 
    or current principals and superintendents become outstanding 
    managers and educational leaders.
        ``(7) Hiring highly qualified teachers, including teachers who 
    become highly qualified through State and local alternative routes 
    to certification, and special education teachers, in order to 
    reduce class size, particularly in the early grades.
        ``(8) Carrying out teacher advancement initiatives that promote 
    professional growth and emphasize multiple career paths (such as 
    paths to becoming a career teacher, mentor teacher, or exemplary 
    teacher) and pay differentiation.
        ``(10) Carrying out programs and activities related to 
    exemplary teachers.
    ``(b) Supplement, Not Supplant.--Funds received under this subpart 
shall be used to supplement, and not supplant, non-Federal funds that 
would otherwise be used for activities authorized under this subpart.

            ``Subpart 3--Subgrants to Eligible Partnerships

``SEC. 2131. DEFINITIONS.

    ``In this subpart:
        ``(1) Eligible partnership.--The term `eligible partnership' 
    means an entity that--
            ``(A) shall include--
                ``(i) a private or State institution of higher 
            education and the division of the institution that prepares 
            teachers and principals;
                ``(ii) a school of arts and sciences; and
                ``(iii) a high-need local educational agency; and
            ``(B) 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 and principals, a 
        nonprofit cultural organization, an entity carrying out a 
        prekindergarten program, a teacher organization, a principal 
        organization, or a business.
        ``(2) Low-performing school.--The term `low-performing school' 
    means an elementary school or secondary school that is identified 
    under section 1116.

``SEC. 2132. 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)(2) to make 
subgrants, on a competitive basis, to eligible partnerships to enable 
such partnerships to carry out the activities described in section 
2134.
    ``(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. 2133. 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. 2134. USE OF FUNDS.

    ``(a) In General.--An eligible partnership that receives a subgrant 
under section 2132 shall use the subgrant funds for--
        ``(1) professional development activities in core academic 
    subjects to ensure that--
            ``(A) teachers and highly qualified 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
            ``(B) principals have the instructional leadership skills 
        that will help such principals work most effectively with 
        teachers to help students master core academic subjects; and
        ``(2) developing and providing assistance to local educational 
    agencies and individuals who are teachers, highly qualified 
    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 
        challenging State academic content standards and student 
        academic achievement standards, and State assessments, to 
        improve instructional practices and improve student academic 
        achievement;
            ``(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 of partnerships between one or 
        more local educational agencies, one or more schools served by 
        such local educational agencies, and one or more institutions 
        of higher education 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.

                      ``Subpart 4--Accountability

``SEC. 2141. TECHNICAL ASSISTANCE AND ACCOUNTABILITY.

    ``(a) Improvement Plan.--After the second year of the plan 
described in section 1119(a)(2), if a State educational agency 
determines, based on the reports described in section 1119(b)(1), that 
a local educational agency in the State has failed to make progress 
toward meeting the annual measurable objectives described in section 
1119(a)(2), for 2 consecutive years, such local educational agency 
shall develop an improvement plan that will enable the agency to meet 
such annual measurable objectives and that specifically addresses 
issues that prevented the agency from meeting such annual measurable 
objectives.
    ``(b) Technical Assistance.--During the development of the 
improvement plan described in subsection (a) and throughout 
implementation of the plan, the State educational agency shall--
        ``(1) provide technical assistance to the local educational 
    agency; and
        ``(2) provide technical assistance, if applicable, to schools 
    served by the local educational agency that need assistance to 
    enable the local educational agency to meet the annual measurable 
    objectives described in section 1119(a)(2).
    ``(c) Accountability.--After the third year of the plan described 
in section 1119(a)(2), if the State educational agency determines, 
based on the reports described in section 1119(b)(1), that the local 
educational agency has failed to make progress toward meeting the 
annual measurable objectives described in section 1119(a)(2), and has 
failed to make adequate yearly progress as described under section 
1111(b)(2)(B), for 3 consecutive years, the State educational agency 
shall enter into an agreement with such local educational agency on the 
use of that agency's funds under this part. As part of this agreement, 
the State educational agency--
        ``(1) shall develop, in conjunction with the local educational 
    agency, teachers, and principals, professional development 
    strategies and activities, based on scientifically based research, 
    that the local educational agency will use to meet the annual 
    measurable objectives described in section 1119(a)(2) and require 
    such agency to utilize such strategies and activities; and
        ``(2)(A) except as provided in subparagraphs (B) and (C), shall 
    prohibit the use of funds received under part A of title I to fund 
    any paraprofessional hired after the date such determination is 
    made;
        ``(B) shall allow the use of such funds to fund a 
    paraprofessional hired after that date if the local educational 
    agency can demonstrate that the hiring is to fill a vacancy created 
    by the departure of another paraprofessional funded under title I 
    and such new paraprofessional satisfies the requirements of section 
    1119(c); and
        ``(C) may allow the use of such funds to fund a 
    paraprofessional hired after that date if the local educational 
    agency can demonstrate--
            ``(i) that a significant influx of population has 
        substantially increased student enrollment; or
            ``(ii) that there is an increased need for translators or 
        assistance with parental involvement activities.
    ``(d) Special Rule.--During the development of the strategies and 
activities described in subsection (c)(1), the State educational agency 
shall, in conjunction with the local educational agency, provide from 
funds allocated to such local educational agency under subpart 2 
directly to one or more schools served by such local educational 
agency, to enable teachers at the schools to choose, with continuing 
consultation with the principal involved, professional development 
activities that--
        ``(1) meet the requirements for professional development 
    activities described in section 9101; and
        ``(2) are coordinated with other reform efforts at the schools.

                    ``Subpart 5--National Activities

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

    ``(a) National Teacher Recruitment Campaign.--The Secretary is 
authorized to establish and carry out a national teacher recruitment 
campaign, which may include activities carried out through the National 
Teacher Recruitment Clearinghouse, to assist high-need local 
educational agencies in recruiting teachers (particularly those 
activities that are effective in retaining new teachers) and training 
teachers and to conduct a national public service campaign concerning 
the resources for, and the routes to, entering the field of teaching. 
In carrying out the campaign, the Secretary may promote and link the 
activities of the campaign to the information and referral activities 
of the National Teacher Recruitment Clearinghouse. The Secretary shall 
coordinate activities under this subsection with State and regional 
recruitment activities.
    ``(b) School Leadership.--
        ``(1) In general.--The Secretary is authorized to establish and 
    carry out a national principal recruitment program to assist high-
    need local educational agencies in recruiting and training 
    principals (including assistant principals) through such activities 
    as--
            ``(A) providing financial incentives to aspiring new 
        principals;
            ``(B) providing stipends to principals who mentor new 
        principals;
            ``(C) carrying out professional development programs in 
        instructional leadership and management; and
            ``(D) providing incentives that are appropriate for 
        teachers or individuals from other fields who want to become 
        principals and that are effective in retaining new principals.
        ``(2) Grants.--If the Secretary uses sums made available under 
    section 2103(b) to carry out paragraph (1), the Secretary shall 
    carry out such paragraph by making grants, on a competitive basis, 
    to--
            ``(A) high-need local educational agencies;
            ``(B) consortia of high-need local educational agencies; 
        and
            ``(C) partnerships of high-need local educational agencies, 
        nonprofit organizations, and institutions of higher education.
    ``(c) Advanced Certification or Advanced Credentialing.--
        ``(1) In general.--The Secretary is authorized to 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 eligible entities to--
            ``(A) develop teacher standards that include measures tied 
        to increased student academic achievement; and
            ``(B) promote outreach, teacher recruitment, teacher 
        subsidy, or teacher support programs, related to teacher 
        certification or credentialing by the National Board for 
        Professional Teaching Standards, the National Council on 
        Teacher Quality, or other nationally recognized certification 
        or credentialing organizations.
        ``(3) Eligible entities.--In this subsection, the term 
    `eligible entity' includes--
            ``(A) a State educational agency;
            ``(B) a local educational agency;
            ``(C) the National Board for Professional Teaching 
        Standards, in partnership with a high-need local educational 
        agency or a State educational agency;
            ``(D) the National Council on Teacher Quality, in 
        partnership with a high-need local educational agency or a 
        State educational agency; or
            ``(E) another recognized entity, including another 
        recognized certification or credentialing organization, in 
        partnership with a high-need local educational agency or a 
        State educational agency.
    ``(d) Special Education Teacher Training.--The Secretary is 
authorized to award a grant to the University of Northern Colorado to 
enable such university to provide, to other institutions of higher 
education, assistance in training special education teachers.
    ``(e) Early Childhood Educator Professional Development.--
        ``(1) Purpose.--The purpose of this subsection is to enhance 
    the school readiness of young children, particularly disadvantaged 
    young children, and to prevent young children from encountering 
    difficulties once the children 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.
        ``(2) Program authorized.--
            ``(A) Grants to partnerships.--The Secretary is authorized 
        to carry out the purpose of this subsection by awarding grants, 
        on a competitive basis, to partnerships consisting of--
                ``(i)(I) 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
                ``(II) another public or private entity that provides 
            such professional development;
                ``(ii) 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 (42 U.S.C. 9858 et seq.), Head 
            Start agencies, or private organizations; and
                ``(iii) to the extent feasible, an entity with 
            demonstrated experience in providing training to educators 
            in early childhood education programs concerning 
            identifying and preventing behavior problems or working 
            with children identified as or suspected to be victims of 
            abuse.
            ``(B) Duration and number of grants.--
                ``(i) Duration.--The Secretary shall award grants under 
            this subsection for periods of not more than 4 years.
                ``(ii) Number.--No partnership may receive more than 
            one grant under this subsection.
        ``(3) Applications.--
            ``(A) Applications required.--Any partnership that desires 
        to receive a grant under this subsection 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--
                ``(i) a description of the high-need community to be 
            served by the project proposed to be carried out through 
            the grant, including such demographic and socioeconomic 
            information as the Secretary may request;
                ``(ii) information on the quality of the early 
            childhood educator professional development program 
            currently conducted (as of the date of the submission of 
            the application) by the institution of higher education or 
            another provider in the partnership;
                ``(iii) the results of a 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;
                ``(iv) a description of how the proposed project will 
            be carried out, including a description of--

                    ``(I) how individuals will be selected to 
                participate;
                    ``(II) the types of professional development 
                activities, based on scientifically based research, 
                that will be carried out;
                    ``(III) how research on effective professional 
                development and on adult learning will be used to 
                design and deliver project activities;
                    ``(IV) how the project will be coordinated with and 
                build on, and will not supplant or duplicate, early 
                childhood education professional development activities 
                in the high-need community;
                    ``(V) how the project will train early childhood 
                educators to provide developmentally appropriate 
                school-readiness services that are based on the best 
                available research on early childhood pedagogy and 
                child development and learning domains;
                    ``(VI) how the project will train early childhood 
                educators to meet the diverse educational needs of 
                children in the community, including children who have 
                limited English proficiency, children with 
                disabilities, or children with other special needs; and
                    ``(VII) how the project will train early childhood 
                educators in identifying and preventing behavioral 
                problems in children or working with children 
                identified as or suspected to be victims of abuse;

                ``(v) a description of--

                    ``(I) the specific objectives that the partnership 
                will seek to attain through the project, and the 
                methods that the partnership will use to measure 
                progress toward attainment of those objectives; and
                    ``(II) how the objectives and the measurement 
                methods align with the achievement indicators 
                established by the Secretary under paragraph (6)(A);

                ``(vi) a description of the partnership's plan for 
            continuing the activities carried out under the project 
            after Federal funding ceases;
                ``(vii) 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
                ``(viii) an assurance that, in developing the 
            application and in carrying out the 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.
        ``(4) Selection of grant recipients.--
            ``(A) Criteria.--The Secretary shall select partnerships to 
        receive grants under this subsection on the basis of the degree 
        to which the communities proposed to be served require 
        assistance and the quality of the applications submitted under 
        paragraph (3).
            ``(B) Geographic distribution.--In selecting partnerships 
        to receive grants under this subsection, the Secretary shall 
        seek to ensure that communities in different regions of the 
        Nation, as well as both urban and rural communities, are 
        served.
        ``(5) Uses of funds.--
            ``(A) In general.--Each partnership receiving a grant under 
        this subsection 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--
                ``(i) professional development for early childhood 
            educators, particularly to familiarize those educators with 
            the application of recent research on child, language, and 
            literacy development and on early childhood pedagogy;
                ``(ii) professional development for early childhood 
            educators in working with parents, so that the educators 
            and parents can work together to provide and support 
            developmentally appropriate school-readiness services that 
            are based on scientifically based research on early 
            childhood pedagogy and child development and learning 
            domains;
                ``(iii) professional development for early childhood 
            educators to work with children who have limited English 
            proficiency, children with disabilities, and children with 
            other special needs;
                ``(iv) professional development to train early 
            childhood educators in identifying and preventing 
            behavioral problems in children or working with children 
            identified as or suspected to be victims of abuse;
                ``(v) activities that assist and support early 
            childhood educators during their first 3 years in the 
            field;
                ``(vi) development and implementation of early 
            childhood educator professional development programs that 
            make use of distance learning and other technologies;
                ``(vii) professional development activities related to 
            the selection and use of screening and diagnostic 
            assessments to improve teaching and learning; and
                ``(viii) data collection, evaluation, and reporting 
            needed to meet the requirements of paragraph (6) relating 
            to accountability.
        ``(6) Accountability.--
            ``(A) Achievement indicators.--On the date on which the 
        Secretary first issues a notice soliciting applications for 
        grants under this subsection, the Secretary shall announce 
        achievement indicators for this subsection, which shall be 
        designed--
                ``(i) to measure the quality and accessibility of the 
            professional development provided;
                ``(ii) to measure the impact of that professional 
            development on the early childhood education provided by 
            the individuals who receive the professional development; 
            and
                ``(iii) to provide such other measures of program 
            impact as the Secretary determines to be appropriate.
            ``(B) Annual reports; termination.--
                ``(i) Annual reports.--Each partnership receiving a 
            grant under this subsection shall report annually to the 
            Secretary on the partnership's progress toward attaining 
            the achievement indicators.
                ``(ii) Termination.--The Secretary may terminate a 
            grant under this subsection at any time if the Secretary 
            determines that the partnership receiving the grant is not 
            making satisfactory progress toward attaining the 
            achievement indicators.
        ``(7) Cost-sharing.--
            ``(A) In general.--Each partnership carrying out a project 
        through a grant awarded under this subsection shall provide, 
        from sources other than the program carried out under this 
        subsection, which may include Federal sources--
                ``(i) at least 50 percent of the total cost of the 
            project for the grant period; and
                ``(ii) at least 20 percent of the project cost for each 
            year.
            ``(B) Acceptable contributions.--A partnership may meet the 
        requirements of subparagraph (A) by providing contributions in 
        cash or in kind, fairly evaluated, including plant, equipment, 
        and services.
            ``(C) Waivers.--The Secretary may waive or modify the 
        requirements of subparagraph (A) for partnerships in cases of 
        demonstrated financial hardship.
        ``(8) Federal coordination.--The Secretary and the Secretary of 
    Health and Human Services shall coordinate activities carried out 
    through programs under this subsection with activities carried out 
    through other early childhood programs administered by the 
    Secretary or the Secretary of Health and Human Services.
        ``(9) Definitions.--In this subsection:
            ``(A) Early childhood educator.--The term `early childhood 
        educator' means a person providing, or employed by a provider 
        of, nonresidential 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 the age at 
        which a child may start kindergarten in that State.
            ``(B) High-need community.--
                ``(i) In general.--The term `high-need community' 
            means--

                    ``(I) a political subdivision of a State, or a 
                portion of a political subdivision of a State, in which 
                at least 50 percent of the children are from low-income 
                families; or
                    ``(II) a political subdivision of a State that is 
                among the 10 percent of political subdivisions of the 
                State having the greatest numbers of such children.

                ``(ii) Determination.--In determining which communities 
            are described in clause (i), the Secretary shall use such 
            data as the Secretary determines are most accurate and 
            appropriate.
            ``(C) Low-income family.--The term `low-income family' 
        means a family with an income below the poverty line for the 
        most recent fiscal year for which satisfactory data are 
        available.
    ``(f) Teacher Mobility.--
        ``(1) Establishment.--The Secretary is authorized to establish 
    a panel to be known as the National Panel on Teacher Mobility 
    (referred to in this subsection as the `panel').
        ``(2) Membership.--The panel shall be composed of 12 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.
        ``(3) 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.
        ``(4) Duties.--
            ``(A) Study.--
                ``(i) In general.--The panel shall study strategies for 
            increasing mobility and employment opportunities for highly 
            qualified teachers, especially for States with teacher 
            shortages and States with school districts or schools that 
            are difficult to staff.
                ``(ii) 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 
            concerning--

                    ``(I) teacher supply and demand;
                    ``(II) the development of recruitment and hiring 
                strategies that support teachers; and
                    ``(III) increasing reciprocity of certification and 
                licensing across States.

            ``(B) 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.
        ``(5) Powers.--
            ``(A) 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 subsection.
            ``(B) 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 subsection. 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.
            ``(C) 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.
        ``(6) Personnel.--
            ``(A) 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.
            ``(B) 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.
        ``(7) Permanent committee.--Section 14 of the Federal Advisory 
    Committee Act (5 U.S.C. App.) shall not apply to the panel.

             ``PART B--MATHEMATICS AND SCIENCE PARTNERSHIPS

``SEC. 2201. PURPOSE; DEFINITIONS.

    ``(a) Purpose.--The purpose of this part is to improve the academic 
achievement of students in the areas of mathematics and science by 
encouraging State educational agencies, institutions of higher 
education, local educational agencies, elementary schools, and 
secondary schools to participate in programs that--
        ``(1) improve and 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, training, and 
    advising mathematics and science teachers;
        ``(2) focus on the education of mathematics and science 
    teachers as a career-long process that continuously stimulates 
    teachers' intellectual growth and upgrades 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 of mathematics and science teachers and improve such 
    teachers' teaching skills through the use of sophisticated 
    laboratory equipment and work space, computing facilities, 
    libraries, and other resources that institutions of higher 
    education are better able to provide than the elementary schools 
    and secondary schools;
        ``(4) develop more rigorous mathematics and science curricula 
    that are aligned with challenging State and local academic content 
    standards and with the standards expected for postsecondary study 
    in engineering, mathematics, and science; and
        ``(5) improve and expand training of mathematics and science 
    teachers, including training such teachers in the effective 
    integration of technology into curricula and instruction.
    ``(b) Definitions.--In this part:
        ``(1) Eligible partnership.--The term `eligible partnership' 
    means a partnership that--
            ``(A) shall include--
                ``(i) if grants are awarded under section 2202(a)(1), a 
            State educational agency;
                ``(ii) an engineering, mathematics, or science 
            department of an institution of higher education; and
                ``(iii) a high-need local educational agency; and
            ``(B) may include--
                ``(i) another engineering, mathematics, science, or 
            teacher training department of an institution of higher 
            education;
                ``(ii) additional local educational agencies, public 
            charter schools, public or private elementary schools or 
            secondary schools, or a consortium of such schools;
                ``(iii) a business; or
                ``(iv) a nonprofit or for-profit organization of 
            demonstrated effectiveness in improving the quality of 
            mathematics and science teachers.
        ``(2) Summer workshop or institute.--The term `summer workshop 
    or institute' means a workshop or institute, conducted during the 
    summer, that--
            ``(A) is conducted for a period of not less than 2 weeks;
            ``(B) includes, as a component, a program that provides 
        direct interaction between students and faculty; and
            ``(C) provides for followup training during the academic 
        year that is conducted in the classroom for a period of not 
        less than three consecutive or nonconsecutive days, except 
        that--
                ``(i) if the workshop or institute is conducted during 
            a 2-week period, the followup training shall be conducted 
            for a period of not less than 4 days; and
                ``(ii) if the followup training is for teachers in 
            rural school districts, the followup training may be 
            conducted through distance learning.

``SEC. 2202. GRANTS FOR MATHEMATICS AND SCIENCE PARTNERSHIPS.

    ``(a) Grants Authorized.--
        ``(1) Grants to partnerships.--For any fiscal year for which 
    the funds appropriated under section 2203 are less than 
    $100,000,000, the Secretary is authorized to award grants, on a 
    competitive basis, to eligible partnerships to carry out the 
    authorized activities described in subsection (c).
        ``(2) Grants to state educational agencies.--
            ``(A) In general.--For any fiscal year for which the funds 
        appropriated under section 2203 equal or exceed $100,000,000--
                ``(i) if an eligible partnership in the State was 
            previously awarded a grant under paragraph (1), and the 
            grant period has not ended, the Secretary shall reserve 
            funds in a sufficient amount to make payments to the 
            partnership in accordance with the terms of the grant; and
                ``(ii) the Secretary is authorized to award grants to 
            State educational agencies to enable such agencies to award 
            subgrants, on a competitive basis, to eligible partnerships 
            to carry out the authorized activities described in 
            subsection (c).
            ``(B) Allotment.--The Secretary shall allot the amount made 
        available under this part for a fiscal year and not reserved 
        under subparagraph (A)(i) among the State educational agencies 
        in proportion to the number of children, aged 5 to 17, who are 
        from families with incomes below the poverty line and reside in 
        a State for the most recent fiscal year for which satisfactory 
        data are available, as compared to the number of such children 
        who reside in all such States for such year.
            ``(C) Minimum allotment.--The amount of any State 
        educational agency's allotment under subparagraph (B) for any 
        fiscal year may not be less than one-half of 1 percent of the 
        amount made available under this part for such year.
        ``(3) Duration.--The Secretary shall award grants under this 
    part for a period of 3 years.
        ``(4) Supplement, not supplant.--Funds received under this part 
    shall be used to supplement, and not supplant, funds that would 
    otherwise be used for activities authorized under this part.
    ``(b) Application Requirements.--
        ``(1) In general.--Each eligible partnership desiring a grant 
    or subgrant under this part shall submit an application--
            ``(A) in the case of grants awarded pursuant to subsection 
        (a)(1), to the Secretary, at such time, in such manner, and 
        accompanied by such information as the Secretary may require; 
        or
            ``(B) in the case of subgrants awarded pursuant to 
        subsection (a)(2), 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 pursuant to 
    paragraph (1) shall include--
            ``(A) the results of a comprehensive assessment of the 
        teacher quality and professional development needs of any 
        schools, local educational agencies, and State educational 
        agencies that comprise the eligible partnership with respect to 
        the teaching and learning of mathematics and science;
            ``(B) a description of how the activities to be carried out 
        by the eligible partnership will be aligned with challenging 
        State academic content and student academic achievement 
        standards in mathematics and science and with other educational 
        reform activities that promote student academic achievement in 
        mathematics and science;
            ``(C) a description of how the activities to be carried out 
        by the eligible partnership will be based on a review of 
        scientifically based research, and an explanation of how the 
        activities are expected to improve student academic achievement 
        and strengthen the quality of mathematics and science 
        instruction;
            ``(D) a description of--
                ``(i) how the eligible partnership will carry out the 
            authorized activities described in subsection (c); and
                ``(ii) the eligible partnership's evaluation and 
            accountability plan described in subsection (e); and
            ``(E) a description of how the eligible partnership will 
        continue the activities funded under this part after the 
        original grant or subgrant period has expired.
    ``(c) Authorized Activities.--An eligible partnership shall use 
funds provided under this part for one or more of the following 
activities related to elementary schools or secondary schools:
        ``(1) Creating opportunities for enhanced and ongoing 
    professional development of mathematics and science teachers that 
    improves the subject matter knowledge of such teachers.
        ``(2) 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.
        ``(3) Establishing and operating mathematics and science summer 
    workshops or institutes, including followup training, for 
    elementary school and secondary school mathematics and science 
    teachers that--
            ``(A) shall--
                ``(i) directly relate to the curriculum and academic 
            areas in which the teacher provides instruction, and focus 
            only secondarily on pedagogy;
                ``(ii) enhance the ability of the teacher to understand 
            and use the challenging State academic content standards 
            for mathematics and science and to select appropriate 
            curricula; and
                ``(iii) train teachers to use curricula that are--

                    ``(I) based on scientific research;
                    ``(II) aligned with challenging State academic 
                content standards; and
                    ``(III) object-centered, experiment-oriented, and 
                concept- and content-based; and

            ``(B) may include--
                ``(i) programs that provide teachers and prospective 
            teachers with opportunities to work under the guidance of 
            experienced teachers and college faculty;
                ``(ii) instruction in the use of data and assessments 
            to inform and instruct classroom practice; and
                ``(iii) professional development activities, including 
            supplemental and followup activities, such as curriculum 
            alignment, distance learning, and activities that train 
            teachers to utilize technology in the classroom.
        ``(4) Recruiting mathematics, engineering, and science majors 
    to teaching through the use of--
            ``(A) signing and performance incentives that are linked to 
        activities proven effective in retaining teachers, for 
        individuals with demonstrated professional experience in 
        mathematics, engineering, or science;
            ``(B) stipends provided to mathematics and science teachers 
        for certification through alternative routes;
            ``(C) scholarships for teachers to pursue advanced course 
        work in mathematics, engineering, or science; and
            ``(D) other programs that the State educational agency 
        determines to be effective in recruiting and retaining 
        individuals with strong mathematics, engineering, or science 
        backgrounds.
        ``(5) Developing or redesigning more rigorous mathematics and 
    science curricula that are aligned with challenging State and local 
    academic content standards and with the standards expected for 
    postsecondary study in mathematics and science.
        ``(6) Establishing distance learning programs for mathematics 
    and science teachers using curricula that are innovative, content-
    based, and based on scientifically based research that is current 
    as of the date of the program involved.
        ``(7) Designing programs to prepare a mathematics or science 
    teacher at a school to provide professional development to other 
    mathematics or science teachers at the school and to assist 
    beginning and other teachers at the school, including (if 
    applicable) a mechanism to integrate the teacher's experiences from 
    a summer workshop or institute into the provision of professional 
    development and assistance.
        ``(8) Establishing and operating programs to bring mathematics 
    and science teachers into contact with working scientists, 
    mathematicians, and engineers, to expand such teachers' subject 
    matter knowledge of and research in science and mathematics.
        ``(9) Designing programs to identify and develop exemplary 
    mathematics and science teachers in the kindergarten through grade 
    8 classrooms.
        ``(10) Training mathematics and science teachers and developing 
    programs to encourage young women and other underrepresented 
    individuals in mathematics and science careers (including 
    engineering and technology) to pursue postsecondary degrees in 
    majors leading to such careers.
    ``(d) Coordination and Consultation.--
        ``(1) Partnership grants.--An eligible partnership receiving a 
    grant under section 203 of the Higher Education Act of 1965 shall 
    coordinate the use of such funds with any related activities 
    carried out by such partnership with funds made available under 
    this part.
        ``(2) National science foundation.--In carrying out the 
    activities authorized by this part, the Secretary shall consult and 
    coordinate 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, 
    institutes, or partnerships to improve mathematics and science 
    teaching in elementary schools and secondary schools.
    ``(e) Evaluation and Accountability Plan.--
        ``(1) In general.--Each eligible partnership receiving a grant 
    or subgrant under this part shall develop an evaluation and 
    accountability plan for activities assisted under this part that 
    includes rigorous objectives that measure the impact of activities 
    funded under this part.
        ``(2) Contents.--The plan developed pursuant to paragraph (1)--
            ``(A) shall include measurable objectives to increase the 
        number of mathematics and science teachers who participate in 
        content-based professional development activities;
            ``(B) shall include measurable objectives for improved 
        student academic achievement on State mathematics and science 
        assessments or, where applicable, an International Mathematics 
        and Science Study assessment; and
            ``(C) may include objectives and measures for--
                ``(i) increased participation by students in advanced 
            courses in mathematics and science;
                ``(ii) increased percentages of elementary school 
            teachers with academic majors or minors, or group majors or 
            minors, in mathematics, engineering, or the sciences; and
                ``(iii) increased percentages of secondary school 
            classes in mathematics and science taught by teachers with 
            academic majors in mathematics, engineering, and science.
    ``(f) Report.--Each eligible partnership receiving a grant or 
subgrant under this part shall report annually to the Secretary 
regarding the eligible partnership's progress in meeting the objectives 
described in the accountability plan of the partnership under 
subsection (e).

``SEC. 2203. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$450,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 5 succeeding fiscal years.

                ``PART C--INNOVATION FOR TEACHER QUALITY

                  ``Subpart 1--Transitions to Teaching

                ``CHAPTER A--TROOPS-TO-TEACHERS PROGRAM

``SEC. 2301. DEFINITIONS.

    ``In this chapter:
        ``(1) Armed forces.--The term `Armed Forces' means the Army, 
    Navy, Air Force, Marine Corps, and Coast Guard.
        ``(2) Member of the armed forces.--The term `member of the 
    Armed Forces' includes a former member of the Armed Forces.
        ``(3) Program.--The term `Program' means the Troops-to-Teachers 
    Program authorized by this chapter.
        ``(4) Reserve component.--The term `reserve component' means--
            ``(A) the Army National Guard of the United States;
            ``(B) the Army Reserve;
            ``(C) the Naval Reserve;
            ``(D) the Marine Corps Reserve;
            ``(E) the Air National Guard of the United States;
            ``(F) the Air Force Reserve; and
            ``(G) the Coast Guard Reserve.
        ``(5) Secretary concerned.--The term `Secretary concerned' 
    means--
            ``(A) the Secretary of the Army, with respect to matters 
        concerning a reserve component of the Army;
            ``(B) the Secretary of the Navy, with respect to matters 
        concerning reserve components named in subparagraphs (C) and 
        (D) of paragraph (4);
            ``(C) the Secretary of the Air Force, with respect to 
        matters concerning a reserve component of the Air Force; and
            ``(D) the Secretary of Transportation, with respect to 
        matters concerning the Coast Guard Reserve.

``SEC. 2302. AUTHORIZATION 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, which was originally established by the Troops-to-Teachers 
Program Act of 1999 (title XVII of the National Defense Authorization 
Act for Fiscal Year 2000) (20 U.S.C. 9301 et seq.).
    ``(b) Program Authorized.--The Secretary may carry out a program 
(to be known as the `Troops-to-Teachers Program')--
        ``(1) to assist eligible members of the Armed Forces described 
    in section 2303 to obtain certification or licensing as elementary 
    school teachers, secondary school teachers, or vocational or 
    technical teachers, and to become highly qualified teachers; and
        ``(2) to facilitate the employment of such members--
            ``(A) by local educational agencies or public charter 
        schools that the Secretary identifies as--
                ``(i) receiving grants under part A of title I as a 
            result of having within their jurisdictions concentrations 
            of children from low-income families; or
                ``(ii) experiencing a shortage of highly qualified 
            teachers, in particular a shortage of science, mathematics, 
            special education, or vocational or technical teachers; and
            ``(B) in elementary schools or secondary schools, or as 
        vocational or technical teachers.
    ``(c) Administration of Program.--The Secretary shall enter into a 
memorandum of agreement with the Secretary of Defense under which the 
Secretary of Defense, acting through the Defense Activity for Non-
Traditional Education Support of the Department of Defense, will 
perform the actual administration of the Program, other than section 
2306. Using funds appropriated to the Secretary to carry out this 
chapter, the Secretary shall transfer to the Secretary of Defense such 
amounts as may be necessary to administer the Program pursuant to the 
memorandum of agreement.
    ``(d) Information Regarding Program.--The Secretary shall provide 
to the Secretary of Defense information regarding the Program and 
applications to participate in the Program, for distribution as part of 
preseparation counseling provided under section 1142 of title 10, 
United States Code, to members of the Armed Forces described in section 
2303.
    ``(e) Placement Assistance and Referral Services.--The Secretary 
may, with the agreement of the Secretary of Defense, provide placement 
assistance and referral services to members of the Armed Forces who 
meet the criteria described in section 2303, including meeting 
education qualification requirements under subsection 2303(c)(2). Such 
members shall not be eligible for financial assistance under 
subsections (c) and (d) of section 2304.

``SEC. 2303. RECRUITMENT AND SELECTION OF PROGRAM PARTICIPANTS.

    ``(a) Eligible Members.--The following members of the Armed Forces 
are eligible for selection to participate in the Program:
        ``(1) Any member who--
            ``(A) on or after October 1, 1999, becomes entitled to 
        retired or retainer pay in the manner provided in title 10 or 
        title 14, United States Code;
            ``(B) has an approved date of retirement that is within 1 
        year after the date on which the member submits an application 
        to participate in the Program; or
            ``(C) has been transferred to the Retired Reserve.
        ``(2) Any member who, on or after the date of enactment of the 
    No Child Left Behind Act of 2001--
            ``(A)(i) is separated or released from active duty after 6 
        or more years of continuous active duty immediately before the 
        separation or release; or
            ``(ii) has completed a total of at least 10 years of active 
        duty service, 10 years of service computed under section 12732 
        of title 10, United States Code, or 10 years of any combination 
        of such service; and
            ``(B) executes a reserve commitment agreement for a period 
        of not less than 3 years under subsection (e)(2).
        ``(3) Any member who, on or after the date of enactment of the 
    No Child Left Behind Act of 2001, is retired or separated for 
    physical disability under chapter 61 of title 10, United States 
    Code.
        ``(4) Any member who--
            ``(A) during the period beginning on October 1, 1990, and 
        ending on September 30, 1999, was involuntarily discharged or 
        released from active duty for purposes of a reduction of force 
        after 6 or more years of continuous active duty immediately 
        before the discharge or release; or
            ``(B) applied for the teacher placement program 
        administered under section 1151 of title 10, United States 
        Code, before the repeal of that section, and satisfied the 
        eligibility criteria specified in subsection (c) of such 
        section 1151.
    ``(b) Submission of Applications.--
        ``(1) Form and submission.--Selection of eligible members of 
    the Armed Forces to participate in the Program shall be made on the 
    basis of applications submitted to the Secretary within the time 
    periods specified in paragraph (2). An application shall be in such 
    form and contain such information as the Secretary may require.
        ``(2) Time for submission.--An application shall be considered 
    to be submitted on a timely basis under paragraph (1) if--
            ``(A) in the case of a member described in paragraph 
        (1)(A), (2), or (3) of subsection (a), the application is 
        submitted not later than 4 years after the date on which the 
        member is retired or separated or released from active duty, 
        whichever applies to the member; or
            ``(B) in the case of a member described in subsection 
        (a)(4), the application is submitted not later than September 
        30, 2003.
    ``(c) Selection Criteria.--
        ``(1) Establishment.--Subject to paragraphs (2) and (3), the 
    Secretary shall prescribe the criteria to be used to select 
    eligible members of the Armed Forces to participate in the Program.
        ``(2) Educational background.--
            ``(A) Elementary or secondary school teacher.--If a member 
        of the Armed Forces described in paragraph (1), (2), or (3) of 
        subsection (a) is applying for assistance for placement as an 
        elementary school or secondary school teacher, the Secretary 
        shall require the member to have received a baccalaureate or 
        advanced degree from an accredited institution of higher 
        education.
            ``(B) Vocational or technical teacher.--If a member of the 
        Armed Forces described in paragraph (1), (2), or (3) of 
        subsection (a) is applying for assistance for placement as a 
        vocational or technical teacher, the Secretary shall require 
        the member--
                ave received the equivalent of 1 year of college from 
            an accredited institution of higher education and have 6 or 
            more years of military experience in a vocational or 
            technical field; or
                ``(ii) to otherwise meet the certification or licensing 
            requirements for a vocational or technical teacher in the 
            State in which the member seeks assistance for placement 
            under the Program.
        ``(3) Honorable service.--A member of the Armed Forces is 
    eligible to participate in the Program only if the member's last 
    period of service in the Armed Forces was honorable, as 
    characterized by the Secretary concerned (as defined in section 
    101(a)(9) of title 10, United States Code). A member selected to 
    participate in the Program before the retirement of the member or 
    the separation or release of the member from active duty may 
    continue to participate in the Program after the retirement, 
    separation, or release only if the member's last period of service 
    is characterized as honorable by the Secretary concerned (as so 
    defined).
    ``(d) Selection Priorities.--In selecting eligible members of the 
Armed Forces to receive assistance under the Program, the Secretary 
shall give priority to members who have educational or military 
experience in science, mathematics, special education, or vocational or 
technical subjects and agree to seek employment as science, 
mathematics, or special education teachers in elementary schools or 
secondary schools or in other schools under the jurisdiction of a local 
educational agency.
    ``(e) Other Conditions on Selection.--
        ``(1) Selection subject to funding.--The Secretary may not 
    select an eligible member of the Armed Forces to participate in the 
    Program under this section and receive financial assistance under 
    section 2304 unless the Secretary has sufficient appropriations for 
    the Program available at the time of the selection to satisfy the 
    obligations to be incurred by the United States under section 2304 
    with respect to the member.
        ``(2) Reserve commitment agreement.--The Secretary may not 
    select an eligible member of the Armed Forces described in 
    subsection (a)(2)(A) to participate in the Program under this 
    section and receive financial assistance under section 2304 
    unless--
            ``(A) the Secretary notifies the Secretary concerned and 
        the member that the Secretary has reserved a full stipend or 
        bonus under section 2304 for the member; and
            ``(B) the member executes a written agreement with the 
        Secretary concerned to serve as a member of the Selected 
        Reserve of a reserve component of the Armed Forces for a period 
        of not less than 3 years (in addition to any other reserve 
        commitment the member may have).

``SEC. 2304. PARTICIPATION AGREEMENT AND FINANCIAL ASSISTANCE.

    ``(a) Participation Agreement.--
        ``(1) In general.--An eligible member of the Armed Forces 
    selected to participate in the Program under section 2303 and 
    receive financial assistance under this section shall be required 
    to enter into an agreement with the Secretary in which the member 
    agrees--
            ``(A) within such time as the Secretary may require, to 
        obtain certification or licensing as an elementary school 
        teacher, secondary school teacher, or vocational or technical 
        teacher, and to become a highly qualified teacher; and
            ``(B) to accept an offer of full-time employment as an 
        elementary school teacher, secondary school teacher, or 
        vocational or technical teacher for not less than 3 school 
        years with a high-need local educational agency or public 
        charter school, as such terms are defined in section 2101, to 
        begin the school year after obtaining that certification or 
        licensing.
        ``(2) Waiver.--The Secretary may waive the 3-year commitment 
    described in paragraph (1)(B) for a participant if the Secretary 
    determines such waiver to be appropriate. If the Secretary provides 
    the waiver, the participant shall not be considered to be in 
    violation of the agreement and shall not be required to provide 
    reimbursement under subsection (f), for failure to meet the 3-year 
    commitment.
    ``(b) Violation of Participation Agreement; Exceptions.--A 
participant in the Program shall not be considered to be in violation 
of the participation agreement entered into under subsection (a) during 
any period in which the participant--
        ``(1) is pursuing a full-time course of study related to the 
    field of teaching at an institution of higher education;
        ``(2) is serving on active duty as a member of the Armed 
    Forces;
        ``(3) is temporarily totally disabled for a period of time not 
    to exceed 3 years as established by sworn affidavit of a qualified 
    physician;
        ``(4) is unable to secure employment for a period not to exceed 
    12 months by reason of the care required by a spouse who is 
    disabled;
        ``(5) is a highly qualified teacher who is seeking and unable 
    to find full-time employment as a teacher in an elementary school 
    or secondary school or as a vocational or technical teacher for a 
    single period not to exceed 27 months; or
        ``(6) satisfies the provisions of additional reimbursement 
    exceptions that may be prescribed by the Secretary.
    ``(c) Stipend for Participants.--
        ``(1) Stipend authorized.--Subject to paragraph (2), the 
    Secretary may pay to a participant in the Program selected under 
    section 2303 a stipend in an amount of not more than $5,000.
        ``(2) Limitation.--The total number of stipends that may be 
    paid under paragraph (1) in any fiscal year may not exceed 5,000.
    ``(d) Bonus for Participants.--
        ``(1) Bonus authorized.--Subject to paragraph (2), the 
    Secretary may, in lieu of paying a stipend under subsection (c), 
    pay a bonus of $10,000 to a participant in the Program selected 
    under section 2303 who agrees in the participation agreement under 
    subsection (a) to become a highly qualified teacher and to accept 
    full-time employment as an elementary school teacher, secondary 
    school teacher, or vocational or technical teacher for not less 
    than 3 school years in a high-need school.
        ``(2) Limitation.--The total number of bonuses that may be paid 
    under paragraph (1) in any fiscal year may not exceed 3,000.
        ``(3) High-need school defined.--In this subsection, the term 
    `high-need school' means a public elementary school, public 
    secondary school, or public charter school that meets one or more 
    of the following criteria:
            ``(A) Low-income children.--At least 50 percent of the 
        students enrolled in the school were from low-income families 
        (as described in section 2302(b)(2)(A)(i)).
            ``(B) Children with disabilities.--The school has a large 
        percentage of students who qualify for assistance under part B 
        of the Individuals with Disabilities Education Act.
    ``(e) Treatment of Stipend and Bonus.--A stipend or bonus paid 
under this section to a participant in the Program shall be taken into 
account in determining the eligibility of the participant for Federal 
student financial assistance provided under title IV of the Higher 
Education Act of 1965.
    ``(f) Reimbursement Under Certain Circumstances.--
        ``(1) Reimbursement required.--A participant in the Program who 
    is paid a stipend or bonus under this section shall be required to 
    repay the stipend or bonus under the following circumstances:
            ``(A) Failure to obtain qualifications or employment.--The 
        participant fails to obtain teacher certification or licensing, 
        to become a highly qualified teacher, or to obtain employment 
        as an elementary school teacher, secondary school teacher, or 
        vocational or technical teacher as required by the 
        participation agreement under subsection (a).
            ``(B) Termination of employment.--The participant 
        voluntarily leaves, or is terminated for cause from, employment 
        as an elementary school teacher, secondary school teacher, or 
        vocational or technical teacher during the 3 years of required 
        service in violation of the participation agreement.
            ``(C) Failure to complete service under reserve commitment 
        agreement.--The participant executed a written agreement with 
        the Secretary concerned under section 2303(e)(2) to serve as a 
        member of a reserve component of the Armed Forces for a period 
        of 3 years and fails to complete the required term of service.
        ``(2) Amount of reimbursement.--A participant required to 
    reimburse the Secretary for a stipend or bonus paid to the 
    participant under this section shall pay an amount that bears the 
    same ratio to the amount of the stipend or bonus as the unserved 
    portion of required service bears to the 3 years of required 
    service. Any amount owed by the participant shall bear interest at 
    the rate equal to the highest rate being paid by the United States 
    on the day on which the reimbursement is determined to be due for 
    securities having maturities of 90 days or less and shall accrue 
    from the day on which the participant is first notified of the 
    amount due.
        ``(3) Treatment of obligation.--The obligation to reimburse the 
    Secretary under this subsection is, for all purposes, a debt owing 
    the United States. A discharge in bankruptcy under title 11, United 
    States Code, shall not release a participant from the obligation to 
    reimburse the Secretary under this subsection.
        ``(4) Exceptions to reimbursement requirement.--A participant 
    shall be excused from reimbursement under this subsection if the 
    participant becomes permanently totally disabled as established by 
    sworn affidavit of a qualified physician. The Secretary may also 
    waive the reimbursement in cases of extreme hardship to the 
    participant, as determined by the Secretary.
    ``(g) Relationship to Educational Assistance Under Montgomery GI 
Bill.--The receipt by a participant in the Program of a stipend or 
bonus under this section shall not reduce or otherwise affect the 
entitlement of the participant to any benefits under chapter 30 of 
title 38, United States Code, or chapter 1606 of title 10, United 
States Code.

``SEC. 2305. PARTICIPATION BY STATES.

    ``(a) Discharge of State Activities Through Consortia of States.--
The Secretary may permit States participating in the Program to carry 
out activities authorized for such States under the Program through one 
or more consortia of such States.
    ``(b) Assistance to States.--
        ``(1) Grants authorized.--Subject to paragraph (2), the 
    Secretary may make grants to States participating in the Program, 
    or to consortia of such States, in order to permit such States or 
    consortia of States to operate offices for purposes of recruiting 
    eligible members of the Armed Forces for participation in the 
    Program and facilitating the employment of participants in the 
    Program as elementary school teachers, secondary school teachers, 
    and vocational or technical teachers.
        ``(2) Limitation.--The total amount of grants made under 
    paragraph (1) in any fiscal year may not exceed $5,000,000.

``SEC. 2306. SUPPORT OF INNOVATIVE PRERETIREMENT TEACHER CERTIFICATION 
              PROGRAMS.

    ``(a) Purpose.--The purpose of this section is to provide funding 
to develop, implement, and demonstrate teacher certification programs.
    ``(b) Development, Implementation and Demonstration.--The Secretary 
may enter into a memorandum of agreement with a State educational 
agency, an institution of higher education, or a consortia of State 
educational agencies or institutions of higher education, to develop, 
implement, and demonstrate teacher certification programs for members 
of the Armed Forces described in section 2303(a)(1)(B) for the purpose 
of assisting such members to consider and prepare for a career as a 
highly qualified elementary school teacher, secondary school teacher, 
or vocational or technical teacher upon retirement from the Armed 
Forces.
    ``(c) Program Elements.--A teacher certification program under 
subsection (b) shall--
        ``(1) provide recognition of military experience and training 
    as related to certification or licensing requirements;
        ``(2) provide courses of instruction that may be conducted on 
    or near a military installation;
        ``(3) incorporate alternative approaches to achieve teacher 
    certification, such as innovative methods to gaining field-based 
    teaching experiences, and assessment of background and experience 
    as related to skills, knowledge, and abilities required of 
    elementary school teachers, secondary school teachers, or 
    vocational or technical teachers;
        ``(4) provide for courses to be delivered via distance 
    education methods; and
        ``(5) address any additional requirements or specifications 
    established by the Secretary.
    ``(d) Application Procedures.--
        ``(1) In general.--A State educational agency or institution of 
    higher education (or a consortium of State educational agencies or 
    institutions of higher education) that desires to enter into a 
    memorandum under subsection (b) shall prepare and submit to the 
    Secretary a proposal, at such time, in such manner, and containing 
    such information as the Secretary may require, including an 
    assurance that the State educational agency, institution, or 
    consortium is operating a program leading to State approved teacher 
    certification.
        ``(2) Preference.--The Secretary shall give preference to State 
    educational agencies, institutions, and consortia that submit 
    proposals that provide for cost sharing with respect to the program 
    involved.
    ``(e) Continuation of Programs.--Upon successful completion of the 
demonstration phase of teacher certification programs funded under this 
section, the continued operation of the teacher certification programs 
shall not be the responsibility of the Secretary. A State educational 
agency, institution, or consortium 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.
    ``(f) Funding Limitation.--The total amount obligated by the 
Secretary under this section for any fiscal year may not exceed 
$10,000,000.

``SEC. 2307. REPORTING REQUIREMENTS.

    ``(a) Report Required.--Not later than March 31, 2006, the 
Secretary (in consultation with the Secretary of Defense and the 
Secretary of Transportation) and the Comptroller General of the United 
States shall submit to Congress a report on the effectiveness of the 
Program in the recruitment and retention of qualified personnel by 
local educational agencies and public charter schools.
    ``(b) Elements of Report.--The report submitted under subsection 
(a) shall include information on the following:
        ``(1) The number of participants in the Program.
        ``(2) The schools in which the participants are employed.
        ``(3) The grade levels at which the participants teach.
        ``(4) The academic subjects taught by the participants.
        ``(5) The rates of retention of the participants by the local 
    educational agencies and public charter schools employing the 
    participants.
        ``(6) Such other matters as the Secretary or the Comptroller 
    General of the United States, as the case may be, considers to be 
    appropriate.

              ``CHAPTER B--TRANSITION TO TEACHING PROGRAM

``SEC. 2311. PURPOSES.

    ``The purposes of this chapter are--
        ``(1) to establish a program to recruit and retain highly 
    qualified mid-career professionals (including highly qualified 
    paraprofessionals), and recent graduates of an institution of 
    higher education, as teachers in high-need schools, including 
    recruiting teachers through alternative routes to certification; 
    and
        ``(2) 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.

``SEC. 2312. DEFINITIONS.

    ``In this chapter:
        ``(1) Eligible participant.--The term `eligible participant' 
    means--
            ``(A) an individual with substantial, demonstrable career 
        experience, including a highly qualified paraprofessional; or
            ``(B) an individual who is a graduate of an institution of 
        higher education who--
                ``(i) has graduated not more than 3 years before 
            applying to an eligible entity to teach under this chapter; 
            and
                ``(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.
        ``(2) High-need local educational agency.--The term `high-need 
    local educational agency' has the meaning given the term in section 
    2102.
        ``(3) High-need school.--The term `high-need school' means a 
    school that--
            ``(A) 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
            ``(B)(i) is located in an area with a high percentage of 
        out-of-field teachers, as defined in section 2102;
            ``(ii) is within the top quartile of elementary schools and 
        secondary schools statewide, as ranked by the number of 
        unfilled, available teacher positions at the schools;
            ``(iii) is located in an area in which there is a high 
        teacher turnover rate; or
            ``(iv) is located in an area in which there is a high 
        percentage of teachers who are not certified or licensed.

``SEC. 2313. GRANT PROGRAM.

    ``(a) In General.--The Secretary may establish a program to make 
grants on a competitive basis to eligible entities to develop State and 
local teacher corps or other programs to establish, expand, or enhance 
teacher recruitment and retention efforts.
    ``(b) Eligible Entity.--To be eligible to receive a grant under 
this section, an entity shall be--
        ``(1) a State educational agency;
        ``(2) a high-need local educational agency;
        ``(3) a for-profit or nonprofit organization that has a proven 
    record of effectively recruiting and retaining highly qualified 
    teachers, in a partnership with a high-need local educational 
    agency or with a State educational agency;
        ``(4) an institution of higher education, in a partnership with 
    a high-need local educational agency or with a State educational 
    agency;
        ``(5) a regional consortium of State educational agencies; or
        ``(6) a consortium of high-need local educational agencies.
    ``(c) Priority.--In making such a grant, the Secretary shall give 
priority to a partnership or consortium that includes a high-need State 
educational agency or local educational agency.
    ``(d) Application.--
        ``(1) In general.--To be eligible to receive a grant under this 
    section, an entity described in subsection (b) shall submit an 
    application to the Secretary at such time, in such manner, and 
    containing such information as the Secretary may require.
        ``(2) Contents.--The application shall describe--
            ``(A) one or more target recruitment groups on which the 
        applicant will focus its recruitment efforts;
            ``(B) the characteristics of each such target group that--
                ``(i) show the knowledge and experience of the group's 
            members; and
                ``(ii) demonstrate that the members are eligible to 
            achieve the objectives of this section;
            ``(C) describe how the applicant will use funds received 
        under this section to develop a teacher corps or other program 
        to recruit and retain highly qualified midcareer professionals 
        (which may include highly qualified paraprofessionals), recent 
        college graduates, and recent graduate school graduates, as 
        highly qualified teachers in high-need schools operated by 
        high-need local educational agencies;
            ``(D) explain how the program carried out under the grant 
        will meet the relevant State laws (including regulations) 
        related to teacher certification or licensing and facilitate 
        the certification or licensing of such teachers;
            ``(E) describe how the grant will increase the number of 
        highly qualified teachers, in high-need schools operated by 
        high-need local educational agencies (in urban or rural school 
        districts), and in high-need academic subjects, in the 
        jurisdiction served by the applicant; and
            ``(F) describe how the applicant will collaborate, as 
        needed, with other institutions, agencies, or organizations to 
        recruit (particularly through activities that have proven 
        effective in retaining highly qualified teachers), train, 
        place, support, and provide teacher induction programs to 
        program participants under this chapter, including providing 
        evidence of the commitment of the institutions, agencies, or 
        organizations to the applicant's programs.
    ``(e) Duration of Grants.--The Secretary may make grants under this 
section 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 section.
    ``(f) Equitable Distribution.--To the extent practicable, the 
Secretary shall ensure an equitable geographic distribution of grants 
under this section among the regions of the United States.
    ``(g) Uses of Funds.--
        ``(1) In general.--An entity that receives a grant under this 
    section 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 (including highly 
    qualified paraprofessionals), and recent graduates of an 
    institution of higher education, who are eligible participants, 
    including activities that provide alternative routes to teacher 
    certification.
        ``(2) Authorized activities.--The entity shall use the funds to 
    carry out a program that includes two or more of the following 
    activities:
            ``(A) Providing scholarships, stipends, bonuses, and other 
        financial incentives, that are linked to participation in 
        activities that have proven effective in retaining teachers in 
        high-need schools operated by high-need local educational 
        agencies, to all eligible participants, in an amount not to 
        exceed $5,000 per participant.
            ``(B) Carrying out pre- and post-placement induction or 
        support activities that have proven effective in recruiting and 
        retaining teachers, such as--
                ``(i) teacher mentoring;
                ``(ii) providing internships;
                ``(iii) providing high-quality, preservice coursework; 
            and
                ``(iv) providing high-quality, sustained inservice 
            professional development.
            ``(C) Carrying out placement and ongoing activities to 
        ensure that teachers are placed in fields in which the teachers 
        are highly qualified to teach and are placed in high-need 
        schools.
            ``(D) Making payments to pay for costs associated with 
        accepting teachers recruited under this section from among 
        eligible participants or provide financial incentives to 
        prospective teachers who are eligible participants.
            ``(E) Collaborating with institutions of higher education 
        in developing and implementing programs to facilitate teacher 
        recruitment (including teacher credentialing) and teacher 
        retention programs.
            ``(F) Carrying out other programs, projects, and activities 
        that are designed and have proven to be effective in recruiting 
        and retaining teachers, and that the Secretary determines to be 
        appropriate.
            ``(G) Developing long-term recruitment and retention 
        strategies including developing--
                ``(i) a statewide or regionwide clearinghouse for the 
            recruitment and placement of teachers;
                ``(ii) administrative structures to develop and 
            implement programs to provide alternative routes to 
            certification;
                ``(iii) reciprocity agreements between or among States 
            for the certification or licensing of teachers; or
                ``(iv) other long-term teacher recruitment and 
            retention strategies.
        ``(3) Effective programs.--The entity shall use the funds only 
    for programs that have proven to be effective in both recruiting 
    and retaining teachers.
    ``(h) Requirements.--
        ``(1) Targeting.--An entity that receives a grant under this 
    section to carry out a program shall ensure that participants in 
    the program recruited with funds made available under this section 
    are placed in high-need schools operated by high-need local 
    educational agencies. In placing the participants in the schools, 
    the entity shall give priority to the schools that are located in 
    areas with the highest percentages of students from families with 
    incomes below the poverty line.
        ``(2) Supplement, not supplant.--Funds made available under 
    this section 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.
        ``(3) Partnerships and consortia of local educational 
    agencies.--In the case of a partnership established by a local 
    educational agency to carry out a program under this chapter, or a 
    consortium of such agencies established to carry out a program 
    under this chapter, the local educational agency or consortium 
    shall not be eligible to receive funds through a State program 
    under this chapter.
    ``(i) Period of Service.--A program participant in a program under 
this chapter who receives training through the program shall serve a 
high-need school operated by a high-need local educational agency for 
at least 3 years.
    ``(j) Repayment.--The Secretary shall establish such requirements 
as the Secretary determines to be appropriate to ensure that program 
participants who receive a stipend or other financial incentive under 
subsection (g)(2)(A), but fail to complete their service obligation 
under subsection (i), repay all or a portion of such stipend or other 
incentive.
    ``(k) Administrative Funds.--No entity that receives a grant under 
this section shall use more than 5 percent of the funds made available 
through the grant for the administration of a program under this 
chapter carried out under the grant.

``SEC. 2314. EVALUATION AND ACCOUNTABILITY FOR RECRUITING AND RETAINING 
              TEACHERS.

    ``(a) Evaluation.--Each entity that receives a grant under this 
chapter shall conduct--
        ``(1) an interim evaluation of the program funded under the 
    grant at the end of the third year of the grant period; and
        ``(2) a final evaluation of the program at the end of the fifth 
    year of the grant period.
    ``(b) Contents.--In conducting the evaluation, the entity shall 
describe the extent to which local educational agencies that received 
funds through the grant have met the goals relating to teacher 
recruitment and retention described in the application.
    ``(c) Reports.--The entity 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 chapter has not made substantial progress in 
meeting such goals and the objectives of the grant by the end of the 
third year of the grant period, the Secretary--
        ``(1) shall revoke the payment made for the fourth year of the 
    grant period; and
        ``(2) shall not make a payment for the fifth year of the grant 
    period.

                    ``CHAPTER C--GENERAL PROVISIONS

``SEC. 2321. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this subpart $150,000,000 for fiscal year 2002 and such sums as may 
be necessary for each of the 5 succeeding fiscal years.
    ``(b) Reservation.--From the funds appropriated to carry out this 
subpart for fiscal year 2002, the Secretary shall reserve not more than 
$30,000,000 to carry out chapter A.

                 ``Subpart 2--National Writing Project

``SEC. 2331. PURPOSES.

    ``The purposes of this subpart are--
        ``(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 subpart with 
    activities assisted under this Act.

``SEC. 2332. 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 five 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 subpart. 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 each of the 5 
    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 to carry out this subpart $15,000,000 as may be necessary 
for fiscal year 2002 and each of the 5 succeeding fiscal years.

                      ``Subpart 3--Civic Education

``SEC. 2341. SHORT TITLE.

    ``This subpart may be cited as the `Education for Democracy Act'.

``SEC. 2342. PURPOSE.

    ``It is the purpose of this subpart--
        ``(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. 2343. GENERAL AUTHORITY.

    ``(a) Authority.--The Secretary is authorized to award grants to, 
or enter into contracts with--
        ``(1) the Center for Civic Education, to carry out civic 
    education activities under sections 2344 and 2345;
        ``(2) the National Council on Economic Education, to carry out 
    economic education activities under section 2345; and
        ``(3) organizations experienced in the development of curricula 
    and programs in civics and government education and economic 
    education for students in elementary schools and secondary schools 
    in countries other than the United States, to carry out civic 
    education activities under section 2345.
    ``(b) Distribution for Cooperative Civic Education and Economic 
Education Exchange Programs.--
        ``(1) Limitation.--Not more than 40 percent of the amount 
    appropriated under section 2346 for a fiscal year shall be used to 
    carry out section 2345.
        ``(2) Distribution.--Of the amount used to carry out section 
    2345 for a fiscal year (consistent with paragraph (1)), the 
    Secretary shall use--
            ``(A) 37.5 percent for a grant or contract for the Center 
        for Civic Education;
            ``(B) 37.5 percent for a grant or contract for the National 
        Council on Economic Education; and
            ``(C) 25 percent for not less than 1, but not more than 3, 
        grants or contracts for organizations described in subsection 
        (a)(3).

``SEC. 2344. WE THE PEOPLE PROGRAM.

    ``(a) The Citizen and the Constitution.--
        ``(1) Educational activities.--The Center for Civic Education--
            ``(A) shall use funds made available under grants or 
        contracts under section 2343(a)(1)--
                ``(i) to continue and expand the educational activities 
            of the program entitled the `We the People... The Citizen 
            and the Constitution' program administered by such center;
                ``(ii) to carry out activities to enhance student 
            attainment of challenging academic content standards in 
            civics and government;
                ``(iii) to provide a course of instruction on the basic 
            principles of the Nation's constitutional democracy and the 
            history of the Constitution of the United States, including 
            the Bill of Rights;
                ``(iv) to provide, at the request of a participating 
            school, school and community simulated congressional 
            hearings following the course of instruction described in 
            clause (iii); and
                ``(v) to provide an annual national competition of 
            simulated congressional hearings for secondary school 
            students who wish to participate in such a program; and
            ``(B) may use funds made available under grants or 
        contracts under section 2343(a)(1)--
                ``(i) to provide advanced, sustained, and ongoing 
            training of teachers about the Constitution of the United 
            States and the political system of the United States;
                ``(ii) to provide materials and methods of instruction, 
            including teacher training, that utilize the latest 
            advancements in educational technology; and
                ``(iii) to provide civic education materials and 
            services to address specific problems such as the 
            prevention of school violence and the abuse of drugs and 
            alcohol.
        ``(2) 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) Educational activities.--The Center for Civic Education--
            ``(A) shall use funds made available under grants or 
        contracts under section 2343(a)(1)--
                ``(i) to continue and expand the educational activities 
            of the program entitled the `We the People... Project 
            Citizen' program administered by the Center;
                ``(ii) to carry out activities to enhance student 
            attainment of challenging academic content standards in 
            civics and government;
                ``(iii) to 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; and
                ``(iv) to provide an annual national showcase or 
            competition; and
            ``(B) may use funds made available under grants or 
        contracts under section 2343(a)(1)--
                ``(i) to provide optional school and community 
            simulated State legislative hearings;
                ``(ii) to provide 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) to provide materials and methods of 
            instruction, including teacher training, that utilize the 
            latest advancements in educational technology; and
                ``(iv) to provide civic education materials and 
            services to address specific problems such as the 
            prevention of school violence and the abuse of drugs and 
            alcohol.
        ``(2) 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) Bureau-Funded School Defined.--In this section, the term 
`Bureau-funded school' has the meaning given such term in section 1146 
of the Education Amendments of 1978 (25 U.S.C. 2026).

``SEC. 2345. COOPERATIVE CIVIC EDUCATION AND ECONOMIC EDUCATION 
              EXCHANGE PROGRAMS.

    ``(a) Cooperative Education Exchange Programs.--The Center for 
Civic Education, the National Council on Economic Education, and 
organizations described in section 2343(a)(3) shall use funds made 
available under grants or contracts under section 2343 to carry out 
cooperative education exchange programs in accordance with this 
section.
    ``(b) Purpose.--The purpose of the cooperative education exchange 
programs carried out under this section shall be--
        ``(1) to 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) to assist eligible countries in the adaptation, 
    implementation, and institutionalization of such programs;
        ``(3) to create and implement civics and government education, 
    and economic education, programs for students that draw upon the 
    experiences of the participating eligible countries;
        ``(4) to 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) to 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) Activities.--In carrying out the cooperative education 
exchange programs assisted under this section, the Center for Civic 
Education, the National Council on Economic Education, and 
organizations described in section 2343(a)(3) shall--
        ``(1) provide to the participants from eligible countries--
            ``(A) seminars on the basic principles of United States 
        constitutional democracy and economic system, 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 with respect to United 
        States civics 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--
                ``(i) to determine 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) to identify effective participation in, and the 
            preservation and improvement of, an efficient market 
            economy;
        ``(2) provide to the participants from the United States--
            ``(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 assisted under this section 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 international conferences on civics 
    and government education, and economic education, for educational 
    leaders, teacher trainers, scholars in related disciplines, and 
    educational policymakers.
    ``(d) 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.
    ``(e) Consultation.--The Secretary may award a grant to, or enter 
into a contract with, the entities described in section 2343 to carry 
out programs assisted under this section only if the Secretary of State 
concurs with the Secretary that such grant, or contract, respectively, 
is consistent with the foreign policy of the United States.
    ``(f) Avoidance of Duplication.--With the concurrence of the 
Secretary of State, the Secretary shall ensure that--
        ``(1) the activities carried out under the programs assisted 
    under this section are not duplicative of other activities 
    conducted in eligible countries; and
        ``(2) any institutions in eligible countries, with which the 
    Center for Civic Education, the National Council on Economic 
    Education, or organizations described in section 2343(a)(3) may 
    work in conducting such activities, are creditable.
    ``(g) Eligible Country Defined.--In 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), the Republic of Ireland, the province of Northern 
Ireland in the United Kingdom, and any developing country (as such term 
is defined in section 209(d) of the Education for the Deaf Act) if the 
Secretary, with the concurrence of the Secretary of State, determines 
that such developing country has a democratic form of government.

``SEC. 2346. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this subpart 
$30,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 5 succeeding fiscal years.

         ``Subpart 4--Teaching of Traditional American History

``SEC. 2351. ESTABLISHMENT OF PROGRAM.

    ``(a) In General.--The Secretary may 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 elementary schools and secondary 
    schools as a separate academic subject (not as a component of 
    social studies); and
        ``(2) for the development, implementation, and strengthening of 
    programs to teach traditional American history as a separate 
    academic subject (not as a component of social studies) within 
    elementary school and secondary school curricula, including the 
    implementation of activities--
            ``(A) to improve the quality of instruction; and
            ``(B) 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 one or more of the following:
        ``(1) An institution of higher education.
        ``(2) A nonprofit history or humanities organization.
        ``(3) A library or museum.
    ``(c) Application.--To be eligible to receive an grant under this 
section, 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.

``SEC. 2352. AUTHORIZATION OF APPROPRIATIONS.

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

               ``Subpart 5--Teacher Liability Protection

``SEC. 2361. SHORT TITLE.

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

``SEC. 2362. PURPOSE.

    ``The purpose of this subpart 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. 2363. DEFINITIONS.

    ``For purposes of this subpart:
        ``(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 loss.--The term `noneconomic loss' means loss 
    for physical or emotional pain, suffering, inconvenience, physical 
    impairment, mental anguish, disfigurement, loss of enjoyment of 
    life, loss of society or companionship, loss of consortium (other 
    than loss of domestic service), hedonic damages, injury to 
    reputation, or any other nonpecuniary loss 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, 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) a teacher, instructor, principal, or administrator;
            ``(B) another educational professional who works in a 
        school;
            ``(C) a professional or nonprofessional employee who--
                ``(i) works in a school; and
                ``(ii)(I) in the employee's job, maintains discipline 
            or ensures safety; or
                ``(II) in an emergency, is called on to maintain 
            discipline or ensure safety; or
            ``(D) an individual member of a school board (as distinct 
        from the board).

``SEC. 2364. APPLICABILITY.

    ``This subpart shall only apply to States that receive funds under 
this Act, and shall apply to such a State as a condition of receiving 
such funds.

``SEC. 2365. PREEMPTION AND ELECTION OF STATE NONAPPLICABILITY.

    ``(a) Preemption.--This subpart preempts the laws of any State to 
the extent that such laws are inconsistent with this subpart, except 
that this subpart shall not preempt any State law that provides 
additional protection from liability relating to teachers.
    ``(b) Election of State Regarding Nonapplicability.--This subpart 
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 subpart 
    shall not apply, as of a date certain, to such civil action in the 
    State; and
        ``(3) containing no other provisions.

``SEC. 2366. LIMITATION ON LIABILITY FOR TEACHERS.

    ``(a) Liability Protection for Teachers.--Except as provided in 
subsection (b), 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 to a school or governmental entity;
        ``(2) the actions of the teacher were carried out in conformity 
    with Federal, State, and local 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 involved 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) Exceptions to Teacher Liability Protection.--If the laws of a 
State limit teacher liability subject to one 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.
        ate 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.
    ``(c) 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 act or 
    omission of a teacher acting within the scope of the teacher's 
    employment or responsibilities to a school or governmental entity 
    unless the claimant establishes by clear and convincing evidence 
    that the harm was proximately caused by an act or omission of such 
    teacher that 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.
    ``(d) Exceptions to Limitations on Liability.--
        ``(1) In general.--The limitations on the liability of a 
    teacher under this subpart 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 subpart shall not apply to misconduct during background 
    investigations, or during other actions, involved in the hiring of 
    a teacher.
    ``(e) Rules of Construction.--
        ``(1) 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.
        ``(2) Concerning corporal punishment.--Nothing in this subpart 
    shall be construed to affect any State or local law (including a 
    rule or regulation) or policy pertaining to the use of corporal 
    punishment.

``SEC. 2367. ALLOCATION OF RESPONSIBILITY FOR NONECONOMIC LOSS.

    ``(a) General Rule.--In any civil action against a teacher, based 
on an act or omission of a teacher acting within the scope of the 
teacher's employment or 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.--
            ``(A) Liability.--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.
            ``(B) Separate judgment.--The court shall render a separate 
        judgment against each defendant in an amount determined 
        pursuant to subparagraph (A).
        ``(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. 2368. EFFECTIVE DATE.

    ``(a) In General.--This subpart shall take effect 90 days after the 
date of enactment of the No Child Left Behind Act of 2001.
    ``(b) Application.--This subpart 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 No Child Left Behind 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.

            ``PART D--ENHANCING EDUCATION THROUGH TECHNOLOGY

``SEC. 2401. SHORT TITLE.

    ``This part may be cited as the `Enhancing Education Through 
Technology Act of 2001'.

``SEC. 2402. PURPOSES AND GOALS.

    ``(a) Purposes.--The purposes of this part are the following:
        ``(1) To provide assistance to States and localities for the 
    implementation and support of a comprehensive system that 
    effectively uses technology in elementary schools and secondary 
    schools to improve student academic achievement.
        ``(2) To encourage the establishment or expansion of 
    initiatives, including initiatives involving public-private 
    partnerships, designed to increase access to technology, 
    particularly in schools served by high-need local educational 
    agencies.
        ``(3) To assist States and localities in the acquisition, 
    development, interconnection, implementation, improvement, and 
    maintenance of an effective educational technology infrastructure 
    in a manner that expands access to technology for students 
    (particularly for disadvantaged students) and teachers.
        ``(4) To promote initiatives that provide school teachers, 
    principals, and administrators with the capacity to integrate 
    technology effectively into curricula and instruction that are 
    aligned with challenging State academic content and student 
    academic achievement standards, through such means as high-quality 
    professional development programs.
        ``(5) To enhance the ongoing professional development of 
    teachers, principals, and administrators by providing constant 
    access to training and updated research in teaching and learning 
    through electronic means.
        ``(6) To support the development and utilization of electronic 
    networks and other innovative methods, such as distance learning, 
    of delivering specialized or rigorous academic courses and 
    curricula for students in areas that would not otherwise have 
    access to such courses and curricula, particularly in 
    geographically isolated regions.
        ``(7) To support the rigorous evaluation of programs funded 
    under this part, particularly regarding the impact of such programs 
    on student academic achievement, and ensure that timely information 
    on the results of such evaluations is widely accessible through 
    electronic means.
        ``(8) To support local efforts using technology to promote 
    parent and family involvement in education and communication among 
    students, parents, teachers, principals, and administrators.
    ``(b) Goals.--
        ``(1) Primary goal.--The primary goal of this part is to 
    improve student academic achievement through the use of technology 
    in elementary schools and secondary schools.
        ``(2) Additional goals.--The additional goals of this part are 
    the following:
            ``(A) To assist every student in crossing the digital 
        divide by ensuring that every student is technologically 
        literate by the time the student finishes the eighth grade, 
        regardless of the student's race, ethnicity, gender, family 
        income, geographic location, or disability.
            ``(B) To encourage the effective integration of technology 
        resources and systems with teacher training and curriculum 
        development to establish research-based instructional methods 
        that can be widely implemented as best practices by State 
        educational agencies and local educational agencies.

``SEC. 2403. DEFINITIONS.

    ``In this part:
        ``(1) Eligible local entity.--The term `eligible local entity' 
    means--
            ``(A) a high-need local educational agency; or
            ``(B) an eligible local partnership.
        ``(2) Eligible local partnership.--The term `eligible local 
    partnership' means a partnership that--
            ``(A) shall include at least one high-need local 
        educational agency and at least one--
                ``(i) local educational agency that can demonstrate 
            that teachers in schools served by the agency are 
            effectively integrating technology and proven teaching 
            practices into instruction, based on a review of relevant 
            research, and that the integration results in improvement 
            in--

                    ``(I) classroom instruction in the core academic 
                subjects; and
                    ``(II) the preparation of students to meet 
                challenging State academic content and student academic 
                achievement standards;

                ``(ii) institution of higher education that is in full 
            compliance with the reporting requirements of section 
            207(f) of the Higher Education Act of 1965 and that has not 
            been identified by its State as low-performing under 
            section 208 of such Act;
                ``(iii) for-profit business or organization that 
            develops, designs, manufactures, or produces technology 
            products or services, or has substantial expertise in the 
            application of technology in instruction; or
                ``(iv) public or private nonprofit organization with 
            demonstrated experience in the application of educational 
            technology to instruction; and
            ``(B) may include other local educational agencies, 
        educational service agencies, libraries, or other educational 
        entities appropriate to provide local programs.
        ``(3) High-need local educational agency.--The term `high-need 
    local educational agency' means a local educational agency that--
            ``(A) is among the local educational agencies in a State 
        with the highest numbers or percentages of children from 
        families with incomes below the poverty line; and
            ``(B)(i) operates one or more schools identified under 
        section 1116; or
            ``(ii) has a substantial need for assistance in acquiring 
        and using technology.

``SEC. 2404. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out subparts 1 and 2, $1,000,000,000 for fiscal year 2002, and such 
sums as may be necessary for each of the 5 succeeding fiscal years.
    ``(b) Allocation of Funds Between State and Local and National 
Initiatives.--The amount of funds made available under subsection (a) 
for a fiscal year shall be allocated so that--
        ``(1) not less than 98 percent is made available to carry out 
    subpart 1; and
        ``(2) not more than 2 percent is made available to carry out 
    subpart 2.
    ``(c) Allocation of Funds for Study.--Of the total amount of funds 
allocated under subsection (b)(2) for fiscal years 2002 through 2007, 
not more than $15,000,000 may be used to carry out section 2421(a).
    ``(d) Limitation.--Of the amount of funds made available to a 
recipient of funds under this part for a fiscal year, not more than 5 
percent may be used by the recipient for administrative costs or 
technical assistance, of which not more than 60 percent may be used by 
the recipient for administrative costs.

             ``Subpart 1--State and Local Technology Grants

``SEC. 2411. ALLOTMENT AND REALLOTMENT.

    ``(a) Reservations and Allotment.--From the amount made available 
to carry out this subpart under section 2404(b)(1) for a fiscal year--
        ``(1) the Secretary shall reserve--
            ``(A) three-fourths of 1 percent for the Secretary of the 
        Interior for programs under this subpart for schools operated 
        or funded by the Bureau of Indian Affairs;
            ``(B) one-half of 1 percent to provide assistance under 
        this subpart to the outlying areas; and
            ``(C) such sums as may be necessary for continuation awards 
        on grants awarded under section 3136 prior to the date of 
        enactment of the No Child Left Behind Act of 2001; and
        ``(2) from the remainder of such amount and subject to 
    subsection (b), the Secretary shall make grants by allotting to 
    each eligible State educational agency under this subpart an amount 
    that bears the same relationship to such remainder for such year as 
    the amount received under part A of title I for such year by such 
    State educational agency bears to the amount received under such 
    part for such year by all State educational agencies.
    ``(b) Minimum Allotment.--The amount of any State educational 
agency's allotment under subsection (a)(2) for any fiscal year may not 
be less than one-half of 1 percent of the amount made available for 
allotments to States under this part for such year.
    ``(c) Reallotment of Unused Funds.--If any State educational agency 
does not apply for an allotment under this subpart for a fiscal year, 
or does not use its entire allotment under this subpart for that fiscal 
year, the Secretary shall reallot the amount of the State educational 
agency's allotment, or the unused portion of the allotment, to the 
remaining State educational agencies that use their entire allotments 
under this subpart in accordance with this section.
    ``(d) State Educational Agency Defined.--In this section, the term 
`State educational agency' does not include an agency of an outlying 
area or the Bureau of Indian Affairs.

``SEC. 2412. USE OF ALLOTMENT BY STATE.

    ``(a) In General.--Of the amount provided to a State educational 
agency (from the agency's allotment under section 2411(a)(2)) for a 
fiscal year--
        ``(1) the State educational agency may use not more than 5 
    percent to carry out activities under section 2415; and
        ``(2) the State educational agency shall distribute the 
    remainder as follows:
            ``(A) From 50 percent of the remainder, the State 
        educational agency shall award subgrants by allocating to each 
        eligible local educational agency that has submitted an 
        application to the State educational agency under section 2414, 
        for the activities described in section 2416, an amount that 
        bears the same relationship to 50 percent of the remainder for 
        such year as the amount received under part A of title I for 
        such year by such local educational agency bears to the amount 
        received under such part for such year by all local educational 
        agencies within the State.
            ``(B) From 50 percent of the remainder and subject to 
        subsection (b), the State educational agency shall award 
        subgrants, through a State-determined competitive process, to 
        eligible local entities that have submitted applications to the 
        State educational agency under section 2414, for the activities 
        described in section 2416.
    ``(b) Sufficient Amounts.--
        ``(1) Special rule.--In awarding a subgrant under subsection 
    (a)(2)(B), the State educational agency shall--
            ``(A) determine the local educational agencies that--
                ``(i) received allocations under subsection (a)(2)(A) 
            that are not of sufficient size to be effective, consistent 
            with the purposes of this part; and
                ``(ii) are eligible local entities;
            ``(B) give priority to applications submitted by eligible 
        local educational agencies described in subparagraph (A); and
            ``(C) determine the minimum amount for awards under 
        subsection (a)(2)(B) to ensure that subgrants awarded under 
        that subsection are of sufficient size to be effective.
        ``(2) Sufficiency.--In awarding subgrants under subsection 
    (a)(2)(B), each State educational agency shall ensure that each 
    subgrant is of sufficient size and duration, and that the program 
    funded by the subgrant is of sufficient scope and quality, to carry 
    out the purposes of this part effectively.
        ``(3) Distribution.--In awarding subgrants under subsection 
    (a)(2)(B), each State educational agency shall ensure an equitable 
    distribution of assistance under this subpart among urban and rural 
    areas of the State, according to the demonstrated need of those 
    local educational agencies serving the areas.
    ``(c) Fiscal Agent.--If an eligible local partnership receives a 
subgrant under subsection (a)(2)(B), a local educational agency in the 
partnership shall serve as the fiscal agent for the partnership.
    ``(d) Technical Assistance.--Each State educational agency 
receiving a grant under section 2411(a) shall--
        ``(1) identify the local educational agencies served by the 
    State educational agency that--
            ``(A) have the highest numbers or percentages of children 
        from families with incomes below the poverty line; and
            ``(B) demonstrate to such State educational agency the 
        greatest need for technical assistance in developing an 
        application under section 2414; and
        ``(2) offer the technical assistance described in paragraph 
    (1)(B) to those local educational agencies.

``SEC. 2413. STATE APPLICATIONS.

    ``(a) In General.--To be eligible to receive a grant under this 
subpart, a State educational agency shall submit to the Secretary, at 
such time and in such manner as the Secretary may specify, an 
application containing a new or updated statewide long-range strategic 
educational technology plan (which shall address the educational 
technology needs of local educational agencies) and such other 
information as the Secretary may reasonably require.
    ``(b) Contents.--Each State application submitted under subsection 
(a) shall include each of the following:
        ``(1) An outline of the State educational agency's long-term 
    strategies for improving student academic achievement, including 
    technology literacy, through the effective use of technology in 
    classrooms throughout the State, including through improving the 
    capacity of teachers to integrate technology effectively into 
    curricula and instruction.
        ``(2) A description of the State educational agency's goals for 
    using advanced technology to improve student academic achievement, 
    and how those goals are aligned with challenging State academic 
    content and student academic achievement standards.
        ``(3) A description of how the State educational agency will 
    take steps to ensure that all students and teachers in the State, 
    particularly students and teachers in districts served by high-need 
    local educational agencies, have increased access to technology.
        ``(4) A description of the process and accountability measures 
    that the State educational agency will use to evaluate the extent 
    to which activities funded under this subpart are effective in 
    integrating technology into curricula and instruction.
        ``(5) A description of how the State educational agency will 
    encourage the development and utilization of innovative strategies 
    for the delivery of specialized or rigorous academic courses and 
    curricula through the use of technology, including distance 
    learning technologies, particularly for those areas of the State 
    that would not otherwise have access to such courses and curricula 
    due to geographical isolation or insufficient resources.
        ``(6) An assurance that financial assistance provided under 
    this subpart will supplement, and not supplant, State and local 
    funds.
        ``(7) A description of how the plan incorporates teacher 
    education, professional development, and curriculum development, 
    and how the State educational agency will work to ensure that 
    teachers and principals in a State receiving funds under this part 
    are technologically literate.
        ``(8) A description of--
            ``(A) how the State educational agency will provide 
        technical assistance to applicants under section 2414, 
        especially to those applicants serving the highest numbers or 
        percentages of children in poverty or with the greatest need 
        for technical assistance; and
            ``(B) the capacity of the State educational agency to 
        provide such assistance.
        ``(9) A description of technology resources and systems that 
    the State will provide for the purpose of establishing best 
    practices that can be widely replicated by State educational 
    agencies and local educational agencies in the State and in other 
    States.
        ``(10) A description of the State's long-term strategies for 
    financing technology to ensure that all students, teachers, and 
    classrooms have access to technology.
        ``(11) A description of the State's strategies for using 
    technology to increase parental involvement.
        ``(12) A description of how the State educational agency will 
    ensure that each subgrant awarded under section 2412(a)(2)(B) is of 
    sufficient size and duration, and that the program funded by the 
    subgrant is of sufficient scope and quality, to carry out the 
    purposes of this part effectively.
        ``(13) A description of how the State educational agency will 
    ensure ongoing integration of technology into school curricula and 
    instructional strategies in all schools in the State, so that 
    technology will be fully integrated into the curricula and 
    instruction of the schools by December 31, 2006.
        ``(14) A description of how the local educational agencies in 
    the State will provide incentives to teachers who are 
    technologically literate and teaching in rural or urban areas, to 
    encourage such teachers to remain in those areas.
        ``(15) A description of how public and private entities will 
    participate in the implementation and support of the plan.
    ``(c) Deemed Approval.--An application submitted by a State 
educational agency pursuant to subsection (a) shall be deemed to be 
approved by the Secretary unless the Secretary makes a written 
determination, prior to the expiration of the 120-day period beginning 
on the date on which the Secretary received the application, that the 
application is not in compliance with this part.
    ``(d) Disapproval.--The Secretary shall not finally disapprove the 
application, except after giving the State educational agency notice 
and an opportunity for a hearing.
    ``(e) Notification.--If the Secretary finds that the application is 
not in compliance, in whole or in part, with this part, the Secretary 
shall--
        ``(1) give the State educational agency notice and an 
    opportunity for a hearing; and
        ``(2) notify the State educational agency of the finding of 
    noncompliance and, in such notification, shall--
            ``(A) cite the specific provisions in the application that 
        are not in compliance; and
            ``(B) request additional information, only as to the 
        noncompliant provisions, needed to make the application 
        compliant.
    ``(f) Response.--If the State educational agency responds to the 
Secretary's notification described in subsection (e)(2) during the 45-
day period beginning on the date on which the agency received the 
notification, and resubmits the application with the requested 
information described in subsection (e)(2)(B), the Secretary shall 
approve or disapprove such application prior to the later of--
        ``(1) the expiration of the 45-day period beginning on the date 
    on which the application is resubmitted; or
        ``(2) the expiration of the 120-day period described in 
    subsection (c).
    ``(g) Failure to Respond.--If the State educational agency does not 
respond to the Secretary's notification described in subsection (e)(2) 
during the 45-day period beginning on the date on which the agency 
received the notification, such application shall be deemed to be 
disapproved.

``SEC. 2414. LOCAL APPLICATIONS.

    ``(a) In General.--To be eligible to receive a subgrant from a 
State educational agency under this subpart, a local educational agency 
or eligible local entity shall submit to the State educational agency 
an application containing a new or updated local long-range strategic 
educational technology plan that is consistent with the objectives of 
the statewide educational technology plan described in section 2413(a), 
and such other information as the State educational agency may 
reasonably require, at such time and in such manner as the State 
educational agency may require.
    ``(b) Contents.--The application shall include each of the 
following:
        ``(1) A description of how the applicant will use Federal funds 
    under this subpart to improve the student academic achievement, 
    including technology literacy, of all students attending schools 
    served by the local educational agency and to improve the capacity 
    of all teachers teaching in schools served by the local educational 
    agency to integrate technology effectively into curricula and 
    instruction.
        ``(2) A description of the applicant's specific goals for using 
    advanced technology to improve student academic achievement, 
    aligned with challenging State academic content and student 
    academic achievement standards.
        ``(3) A description of the steps the applicant will take to 
    ensure that all students and teachers in schools served by the 
    local educational agency involved have increased access to 
    educational technology, including how the agency would use funds 
    under this subpart (such as combining the funds with funds from 
    other sources), to help ensure that--
          ``(A) students in high-poverty and high-needs schools, or 
        schools identified under section 1116, have access to 
        technology; and
            ``(B) teachers are prepared to integrate technology 
        effectively into curricula and instruction.
        ``(4) A description of how the applicant will--
            ``(A) identify and promote curricula and teaching 
        strategies that integrate technology effectively into curricula 
        and instruction, based on a review of relevant research, 
        leading to improvements in student academic achievement, as 
        measured by challenging State academic content and student 
        academic achievement standards; and
            ``(B) provide ongoing, sustained professional development 
        for teachers, principals, administrators, and school library 
        media personnel serving the local educational agency, to 
        further the effective use of technology in the classroom or 
        library media center, including, if applicable, a list of the 
        entities that will be partners with the local educational 
        agency involved in providing the ongoing, sustained 
        professional development.
        ``(5) A description of the type and costs of technologies to be 
    acquired under this subpart, including services, software, and 
    digital curricula, and including specific provisions for 
    interoperability among components of such technologies.
        ``(6) A description of how the applicant will coordinate 
    activities carried out with funds provided under this subpart with 
    technology-related activities carried out with funds available from 
    other Federal, State, and local sources.
        ``(7) A description of how the applicant will integrate 
    technology (including software and other electronically delivered 
    learning materials) into curricula and instruction, and a timeline 
    for such integration.
        ``(8) A description of how the applicant will encourage the 
    development and utilization of innovative strategies for the 
    delivery of specialized or rigorous academic courses and curricula 
    through the use of technology, including distance learning 
    technologies, particularly for those areas that would not otherwise 
    have access to such courses and curricula due to geographical 
    isolation or insufficient resources.
        ``(9) A description of how the applicant will ensure the 
    effective use of technology to promote parental involvement and 
    increase communication with parents, including a description of how 
    parents will be informed of the technology being applied in their 
    child's education so that the parents are able to reinforce at home 
    the instruction their child receives at school.
        ``(10) A description of how programs will be developed, where 
    applicable, in collaboration with adult literacy service providers, 
    to maximize the use of technology.
        ``(11) A description of the process and accountability measures 
    that the applicant will use to evaluate the extent to which 
    activities funded under this subpart are effective in integrating 
    technology into curricula and instruction, increasing the ability 
    of teachers to teach, and enabling students to meet challenging 
    State academic content and student academic achievement standards.
        ``(12) A description of the supporting resources (such as 
    services, software, other electronically delivered learning 
    materials, and print resources) that will be acquired to ensure 
    successful and effective uses of technology.
    ``(c) Combined Applications.--A local educational agency that is an 
eligible local entity and submits an application to the State 
educational agency under this section for funds awarded under section 
2412(a)(2)(A) may combine the agency's application for funds awarded 
under that section with an application for funds awarded under section 
2412(a)(2)(B).
    ``(d) Special Rule.--
        ``(1) Consortium applications.--
            ``(A) In general.--For any fiscal year, a local educational 
        agency applying for financial assistance described in section 
        2412(a)(2)(A) may apply as part of a consortium that includes 
        other local educational agencies, institutions of higher 
        education, educational service agencies, libraries, or other 
        educational entities appropriate to provide local programs.
            ``(B) Fiscal agent.--If a local educational agency applies 
        for and receives financial assistance described in section 
        2412(a)(2)(A) as part of a consortium, the local educational 
        agency shall serve as the fiscal agent for the consortium.
        ``(2) State educational agency assistance.--At the request of a 
    local educational agency, a State educational agency may assist the 
    local educational agency in the formation of a consortium described 
    in paragraph (1) to provide services for the teachers and students 
    served by the local educational agency.

``SEC. 2415. STATE ACTIVITIES.

    ``From funds made available under section 2412(a)(1), a State 
educational agency shall carry out activities and assist local efforts 
to carry out the purposes of this part, which may include the following 
activities:
        ``(1) Developing, or assisting applicants or recipients of 
    funds under this subpart in the development and utilization of, 
    innovative strategies for the delivery of specialized or rigorous 
    academic courses and curricula through the use of technology, 
    including distance learning technologies, and providing other 
    technical assistance to such applicants or recipients throughout 
    the State, with priority given to high-need local educational 
    agencies.
        ``(2) Establishing or supporting public-private initiatives 
    (such as interest-free or reduced-cost loans) for the acquisition 
    of educational technology for high-need local educational agencies 
    and students attending schools served by such agencies.
        ``(3) Assisting recipients of funds under this subpart in 
    providing sustained and intensive, high-quality professional 
    development based on a review of relevant research in the 
    integration of advanced technologies, including emerging 
    technologies, into curricula and instruction and in using those 
    technologies to create new learning environments, including 
    training in the use of technology to--
            ``(A) access data and resources to develop curricula and 
        instructional materials;
            ``(B) enable teachers--
                ``(i) to use the Internet and other technology to 
            communicate with parents, other teachers, principals, and 
            administrators; and
                ``(ii) to retrieve Internet-based learning resources; 
            and
            ``(C) lead to improvements in classroom instruction in the 
        core academic subjects, that effectively prepare students to 
        meet challenging State academic content standards and student 
        academic achievement standards.
        ``(4) Assisting recipients of funds under this subpart in 
    providing all students (including students with disabilities and 
    students with limited English proficiency) and teachers with access 
    to educational technology.
        ``(5) Developing performance measurement systems to determine 
    the effectiveness of educational technology programs funded under 
    this subpart, particularly in determining the extent to which 
    activities funded under this subpart are effective in integrating 
    technology into curricula and instruction, increasing the ability 
    of teachers to teach, and enabling students to meet challenging 
    State academic content and student academic achievement standards.
        ``(6) Collaborating with other State educational agencies on 
    distance learning, including making specialized or rigorous 
    academic courses and curricula available to students in areas that 
    would not otherwise have access to such courses and curricula.

``SEC. 2416. LOCAL ACTIVITIES.

    ``(a) Professional Development.--
        ``(1) In general.--A recipient of funds made available under 
    section 2412(a)(2) shall use not less than 25 percent of such funds 
    to provide ongoing, sustained, and intensive, high-quality 
    professional development. The recipient shall provide professional 
    development in the integration of advanced technologies, including 
    emerging technologies, into curricula and instruction and in using 
    those technologies to create new learning environments, such as 
    professional development in the use of technology--
            ``(A) to access data and resources to develop curricula and 
        instructional materials;
            ``(B) to enable teachers--
                ``(i) to use the Internet and other technology to 
            communicate with parents, other teachers, principals, and 
            administrators; and
                ``(ii) to retrieve Internet-based learning resources; 
            and
            ``(C) to lead to improvements in classroom instruction in 
        the core academic subjects, that effectively prepare students 
        to meet challenging State academic content standards, including 
        increasing student technology literacy, and student academic 
        achievement standards.
        ``(2) Waivers.--Paragraph (1) shall not apply to a recipient of 
    funds made available under section 2412(a)(2) that demonstrates, to 
    the satisfaction of the State educational agency involved, that the 
    recipient already provides ongoing, sustained, and intensive, high-
    quality professional development that is based on a review of 
    relevant research, to all teachers in core academic subjects in the 
    integration of advanced technologies, including emerging 
    technologies, into curricula and instruction.
    ``(b) Other Activities.--In addition to the activities described in 
subsection (a), a recipient of funds made available by a State 
educational agency under section 2412(a)(2) shall use such funds to 
carry out other activities consistent with this subpart, which may 
include the following:
        ``(1) Establishing or expanding initiatives, particularly 
    initiatives involving public-private partnerships, designed to 
    increase access to technology for students and teachers, with 
    special emphasis on the access of high-need schools to technology.
        ``(2) Adapting or expanding existing and new applications of 
    technology to enable teachers to increase student academic 
    achievement, including technology literacy--
            ``(A) through the use of teaching practices that are based 
        on a review of relevant research and are designed to prepare 
        students to meet challenging State academic content and student 
        academic achievement standards; and
            ``(B) by the development and utilization of innovative 
        distance learning strategies to deliver specialized or rigorous 
        academic courses and curricula to areas that would not 
        otherwise have access to such courses and curricula.
        ``(3) Acquiring proven and effective courses and curricula that 
    include integrated technology and are designed to help students 
    meet challenging State academic content and student academic 
    achievement standards.
        ``(4) Utilizing technology to develop or expand efforts to 
    connect schools and teachers with parents and students to promote 
    meaningful parental involvement, to foster increased communication 
    about curricula, assignments, and assessments between students, 
    parents, and teachers, and to assist parents to understand the 
    technology being applied in their child's education, so that 
    parents are able to reinforce at home the instruction their child 
    receives at school.
        ``(5) Preparing one or more teachers in elementary schools and 
    secondary schools as technology leaders who are provided with the 
    means to serve as experts and train other teachers in the effective 
    use of technology, and providing bonus payments to the technology 
    leaders.
        ``(6) Acquiring, adapting, expanding, implementing, repairing, 
    and maintaining existing and new applications of technology, to 
    support the school reform effort and to improve student academic 
    achievement, including technology literacy.
        ``(7) Acquiring connectivity linkages, resources, and services 
    (including the acquisition of hardware and software and other 
    electronically delivered learning materials) 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.
        ``(8) Using technology to collect, manage, and analyze data to 
    inform and enhance teaching and school improvement efforts.
        ``(9) Implementing performance measurement systems to determine 
    the effectiveness of education technology programs funded under 
    this subpart, particularly in determining the extent to which 
    activities funded under this subpart are effective in integrating 
    technology into curricula and instruction, increasing the ability 
    of teachers to teach, and enabling students to meet challenging 
    State academic content and student academic achievement standards.
        ``(10) Developing, enhancing, or implementing information 
    technology courses.

              ``Subpart 2--National Technology Activities

``SEC. 2421. NATIONAL ACTIVITIES.

    ``(a) Study.--Using funds made available under section 2404(b)(2), 
the Secretary--
        ``(1) shall conduct an independent, long-term study, utilizing 
    scientifically based research methods and control groups or control 
    conditions--
            ``(A) on the conditions and practices under which 
        educational technology is effective in increasing student 
        academic achievement; and
            ``(B) on the conditions and practices that increase the 
        ability of teachers to integrate technology effectively into 
        curricula and instruction, that enhance the learning 
        environment and opportunities, and that increase student 
        academic achievement, including technology literacy;
        ``(2) shall establish an independent review panel to advise the 
    Secretary on methodological and other issues that arise in 
    conducting the long-term study;
        ``(3) shall consult with other interested Federal departments 
    or agencies, State and local educational practitioners and 
    policymakers (including teachers, principals, and superintendents), 
    and experts in technology, regarding the study; and
        ``(4) shall submit to Congress interim reports, when 
    appropriate, and a final report, to be submitted not later than 
    April 1, 2006, on the findings of the study.
    ``(b) Dissemination.--Using funds made available under section 
2404(b)(2), the Secretary shall make widely available, including 
through dissemination on the Internet and to all State educational 
agencies and other recipients of funds under this part, findings 
identified through activities carried out under this section regarding 
the conditions and practices under which educational technology is 
effective in increasing student academic achievement.
    ``(c) Technical Assistance.--Using funds made available under 
section 2404(b)(2), the Secretary may provide technical assistance 
(directly or through the competitive award of grants or contracts) to 
State educational agencies, local educational agencies, and other 
recipients of funds, particularly in rural areas, under this part, in 
order to assist such State educational agencies, local educational 
agencies, and other recipients to achieve the purposes of this part.

``SEC. 2422. NATIONAL EDUCATION TECHNOLOGY PLAN.

    ``(a) In General.--Based on the Nation's progress and an assessment 
by the Secretary of the continuing and future needs of the Nation's 
schools in effectively using technology to provide all students the 
opportunity to meet challenging State academic content and student 
academic achievement standards, the Secretary shall update and publish, 
in a form readily accessible to the public, a national long-range 
technology plan, by not later than 12 months after the date of 
enactment of the No Child Left Behind Act of 2001.
    ``(b) Contents.--The plan referred to in subsection (a) shall 
include each of the following:
        ``(1) A description of the manner in which the Secretary will 
    promote--
            ``(A) higher student academic achievement through the 
        integration of advanced technologies, including emerging 
        technologies, into curricula and instruction;
            ``(B) increased access to technology for teaching and 
        learning for schools with a high number or percentage of 
        children from families with incomes below the poverty line; and
            ``(C) the use of technology to assist in the implementation 
        of State systemic reform strategies.
        ``(2) A description of joint activities of the Department of 
    Education and other Federal departments or agencies that will 
    promote the use of technology in education.

                 ``Subpart 3--Ready-to-Learn Television

``SEC. 2431. READY-TO-LEARN TELEVISION.

    ``(a) Program Authorized.--
        ``(1) In general.--The Secretary is authorized to award grants 
    to, or enter into contracts or cooperative agreements with, 
    eligible entities described in paragraph (3) to enable such 
    entities--
            ``(A) to develop, produce, and distribute educational and 
        instructional video programming for preschool and elementary 
        school children and their parents in order to facilitate 
        student academic achievement;
            ``(B) to facilitate the development, directly or through 
        contracts with producers of children and family educational 
        television programming, of educational programming for 
        preschool and elementary school children, and the accompanying 
        support materials and services that promote the effective use 
        of such programming;
            ``(C) to facilitate the development of programming and 
        digital content containing Ready-to-Learn-based children's 
        programming and resources for parents and caregivers that is 
        specially designed for nationwide distribution over public 
        television stations' digital broadcasting channels and the 
        Internet;
            ``(D) to contract with entities (such as public 
        telecommunications entities) so that programs developed under 
        this section are disseminated and distributed to the widest 
        possible audience appropriate to be served by the programming, 
        and through the use of the most appropriate distribution 
        technologies; and
            ``(E) to develop and disseminate education and training 
        materials, including interactive programs and programs 
        adaptable to distance learning technologies, that are 
        designed--
                ``(i) to promote school readiness; and
                ``(ii) to promote the effective use of materials 
            developed under subparagraphs (B) and (C) among parents, 
            teachers, Head Start providers, Even Start providers, 
            providers of family literacy services, child care 
            providers, early childhood development personnel, 
            elementary school teachers, public libraries, and after-
            school program personnel caring for preschool and 
            elementary school children.
        ``(2) Availability.--In awarding grants, contracts, or 
    cooperative agreements under this section, the Secretary shall 
    ensure that eligible entities make programming widely available, 
    with support materials as appropriate, to young children, parents, 
    child care workers, Head Start providers, Even Start providers, and 
    providers of family literacy services to increase the effective use 
    of such programming.
        ``(3) Eligible entities.--To be eligible to receive a grant, 
    contract, or cooperative agreements under this section, an entity 
    shall be a public telecommunications entity that is able to 
    demonstrate each of the following:
            ``(A) A capacity for the development and national 
        distribution of educational and instructional television 
        programming of high quality that is accessible by a large 
        majority of disadvantaged preschool and elementary school 
        children.
            ``(B) A capacity to contract with the producers of 
        children's television programming for the purpose of developing 
        educational television programming of high quality.
            ``(C) A capacity, consistent with the entity's mission and 
        nonprofit nature, to negotiate such contracts in a manner that 
        returns to the entity an appropriate share of any ancillary 
        income from sales of any program-related products.
            ``(D) A capacity to localize programming and materials to 
        meet specific State and local needs and to provide educational 
        outreach at the local level.
        ``(4) Coordination of activities.--An entity receiving a grant, 
    contract, or cooperative agreement under this section shall consult 
    with the Secretary and the Secretary of Health and Human Services--
            ``(A) to 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) to coordinate activities with Federal programs that 
        have major training components for early childhood development, 
        including programs under the Head Start Act (42 U.S.C. 9831 et 
        seq.) and Even Start, and State training activities funded 
        under the Child Care and Development Block Grant Act of 1990 
        (42 U.S.C. 9858 et seq.), regarding the availability and 
        utilization of materials developed under paragraph (1)(E) to 
        enhance parent and child care provider skills in early 
        childhood development and education.
    ``(b) Applications.--To be eligible to receive a grant, contract, 
or cooperative agreement under subsection (a), an entity shall submit 
to the Secretary an application at such time, in such manner, and 
containing such information as the Secretary may reasonably require.
    ``(c) Reports and Evaluations.--
        ``(1) Annual report to the secretary.--An entity receiving a 
    grant, contract, or cooperative agreement under this section shall 
    prepare and submit to the Secretary an annual report that contains 
    such information as the Secretary may require. At a minimum, the 
    report shall describe the program activities undertaken with funds 
    received under the grant, contract, or cooperative agreement, 
    including each of the following:
            ``(A) The programming that has been developed, directly or 
        indirectly, by the eligible entity, and the target population 
        of the programs developed.
            ``(B) The support and training materials that have been 
        developed to accompany the programming, and the method by which 
        the materials are distributed to consumers and users of the 
        programming.
            ``(C) 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.
            ``(D) The initiatives undertaken by the entity to develop 
        public-private partnerships to secure non-Federal support for 
        the development, distribution, and broadcast of educational and 
        instructional programming.
        ``(2) Report to congress.--The Secretary shall prepare and 
    submit to the relevant committees of Congress a biannual report 
    that includes the following:
            ``(A) A summary of the activities assisted under subsection 
        (a).
            ``(B) A description of the education and training materials 
        made available under subsection (a)(1)(E), 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 subsection.
    ``(d) Administrative Costs.--An entity that receives a grant, 
contract, or cooperative agreement under this section may use up to 5 
percent of the amount received under the grant, contract, or agreement 
for the normal and customary expenses of administering the grant, 
contract, or agreement.
    ``(e) Authorization of Appropriations.--
        ``(1) In general.--There are authorized to be appropriated to 
    carry out this section such sums as may be necessary for fiscal 
    year 2002, and for each of the 5 succeeding fiscal years.
        ``(2) Funding rule.--Not less than 60 percent of the amount 
    appropriated under paragraph (1) for each fiscal year shall be used 
    to carry out activities under subparagraphs (B) through (D) of 
    subsection (a)(1).

  ``Subpart 4--Limitation on Availability of Certain Funds for Schools

``SEC. 2441. INTERNET SAFETY.

    ``(a) In General.--No funds made available under this part to a 
local educational agency for an elementary school or secondary school 
that does not receive services at discount rates under section 
254(h)(5) of the Communications Act of 1934 (47 U.S.C. 254(h)(5)) may 
be used to purchase computers used to access the Internet, or to pay 
for direct costs associated with accessing the Internet, for such 
school unless the school, school board, local educational agency, or 
other authority with responsibility for administration of such school 
both--
        ``(1)(A) has in place a policy of Internet safety for minors 
    that includes the operation of a technology protection measure with 
    respect to any of its computers with Internet access that protects 
    against access through such computers to visual depictions that 
    are--
            ``(i) obscene;
            ``(ii) child pornography; or
            ``(iii) harmful to minors; and
        ``(B) is enforcing the operation of such technology protection 
    measure during any use of such computers by minors; and
        ``(2)(A) has in place a policy of Internet safety that includes 
    the operation of a technology protection measure with respect to 
    any of its computers with Internet access that protects against 
    access through such computers to visual depictions that are--
            ``(i) obscene; or
            ``(ii) child pornography; and
        ``(B) is enforcing the operation of such technology protection 
    measure during any use of such computers.
    ``(b) Timing and Applicability of Implementation.--
        ``(1) In general.--The local educational agency with 
    responsibility for a school covered by subsection (a) shall certify 
    the compliance of such school with the requirements of subsection 
    (a) as part of the application process for the next program funding 
    year under this Act following December 21, 2000, and for each 
    subsequent program funding year thereafter.
        ``(2) Process.--
            ``(A) Schools with internet safety policies and technology 
        protection measures in place.--A local educational agency with 
        responsibility for a school covered by subsection (a) that has 
        in place an Internet safety policy meeting the requirements of 
        subsection (a) shall certify its compliance with subsection (a) 
        during each annual program application cycle under this Act.
            ``(B) Schools without internet safety policies and 
        technology protection measures in place.--
                ``(i) Certification.--A local educational agency with 
            responsibility for a school covered by subsection (a) that 
            does not have in place an Internet safety policy meeting 
            the requirements of subsection (a)--

                    ``(I) for the first program year after December 21, 
                2000, in which the local educational agency is applying 
                for funds for such school under this Act, shall certify 
                that it is undertaking such actions, including any 
                necessary procurement procedures, to put in place an 
                Internet safety policy that meets such requirements; 
                and
                    ``(II) for the second program year after December 
                21, 2000, in which the local educational agency is 
                applying for funds for such school under this Act, 
                shall certify that such school is in compliance with 
                such requirements.

                ``(ii) Ineligibility.--Any school covered by subsection 
            (a) for which the local educational agency concerned is 
            unable to certify compliance with such requirements in such 
            second program year shall be ineligible for all funding 
            under this part for such second program year and all 
            subsequent program years until such time as such school 
            comes into compliance with such requirements.
            ``(C) Waivers.--Any school subject to a certification under 
        subparagraph (B)(i)(II) for which the local educational agency 
        concerned cannot make the certification otherwise required by 
        that subparagraph may seek a waiver of that subparagraph if 
        State or local procurement rules or regulations or competitive 
        bidding requirements prevent the making of the certification 
        otherwise required by that subparagraph. The local educational 
        agency concerned shall notify the Secretary of the 
        applicability of that subparagraph to the school. Such notice 
        shall certify that the school will be brought into compliance 
        with the requirements in subsection (a) before the start of the 
        third program year after December 21, 2000, in which the school 
        is applying for funds under this part.
    ``(c) Disabling During Certain Use.--An administrator, supervisor, 
or person authorized by the responsible authority under subsection (a) 
may disable the technology protection measure concerned to enable 
access for bona fide research or other lawful purposes.
    ``(d) Noncompliance.--
        ``(1) Use of general education provisions act remedies.--
    Whenever the Secretary has reason to believe that any recipient of 
    funds under this part is failing to comply substantially with the 
    requirements of this section, the Secretary may--
            ``(A) withhold further payments to the recipient under this 
        part;
            ``(B) issue a complaint to compel compliance of the 
        recipient through a cease and desist order; or
            ``(C) enter into a compliance agreement with a recipient to 
        bring it into compliance with such requirements,
    in same manner as the Secretary is authorized to take such actions 
    under sections 455, 456, and 457, respectively, of the General 
    Education Provisions Act.
        ``(2) Recovery of funds prohibited.--The actions authorized by 
    paragraph (1) are the exclusive remedies available with respect to 
    the failure of a school to comply substantially with a provision of 
    this section, and the Secretary shall not seek a recovery of funds 
    from the recipient for such failure.
        ``(3) Recommencement of payments.--Whenever the Secretary 
    determines (whether by certification or other appropriate evidence) 
    that a recipient of funds who is subject to the withholding of 
    payments under paragraph (1)(A) has cured the failure providing the 
    basis for the withholding of payments, the Secretary shall cease 
    the withholding of payments to the recipient under that paragraph.
    ``(e) Definitions.--In this subpart:
        ``(1) Computer.--The term `computer' includes any hardware, 
    software, or other technology attached or connected to, installed 
    in, or otherwise used in connection with a computer.
        ``(2) Access to internet.--A computer shall be considered to 
    have access to the Internet if such computer is equipped with a 
    modem or is connected to a computer network that has access to the 
    Internet.
        ``(3) Acquisition or operation.--An elementary school or 
    secondary school shall be considered to have received funds under 
    this part for the acquisition or operation of any computer if such 
    funds are used in any manner, directly or indirectly--
            ``(A) to purchase, lease, or otherwise acquire or obtain 
        the use of such computer; or
            ``(B) to obtain services, supplies, software, or other 
        actions or materials to support, or in connection with, the 
        operation of such computer.
        ``(4) Minor.--The term `minor' means an individual who has not 
    attained the age of 17.
        ``(5) Child pornography.--The term `child pornography' has the 
    meaning given that term in section 2256 of title 18, United States 
    Code.
        ``(6) Harmful to minors.--The term `harmful to minors' means 
    any picture, image, graphic image file, or other visual depiction 
    that--
            ``(A) taken as a whole and with respect to minors, appeals 
        to a prurient interest in nudity, sex, or excretion;
            ``(B) depicts, describes, or represents, in a patently 
        offensive way with respect to what is suitable for minors, an 
        actual or simulated sexual act or sexual contact, actual or 
        simulated normal or perverted sexual acts, or a lewd exhibition 
        of the genitals; and
            ``(C) taken as a whole, lacks serious literary, artistic, 
        political, or scientific value as to minors.
        ``(7) Obscene.--The term `obscene' has the meaning applicable 
    to that term under section 1460 of title 18, United States Code.
        ``(8) Sexual act and sexual contact.--The terms `sexual act' 
    and `sexual contact' have the meanings given those terms in section 
    2246 of title 18, United States Code.
    ``(f) Severability.--If any provision of this section is held 
invalid, the remainder of this section shall not be affected 
thereby.''.

SEC. 202. CONTINUATION OF AWARDS.

    Notwithstanding any other provision of this Act or the Elementary 
and Secondary Education Act of 1965, in the case of--
        (1) a person or entity that, prior to the date of enactment of 
    this Act, was awarded funds appropriated under the Department of 
    Education Appropriations Act, 2001 for new teacher recruitment 
    initiatives; or
        (2) a person or agency that, prior to the date of enactment of 
    this Act, was awarded a grant or contract under part K of title X 
    of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
    8331 et seq.),
the Secretary of Education shall continue to provide funds in 
accordance with the terms of such award until the date on which the 
award period terminates.

  TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS

SEC. 301. LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT CHILDREN 
              AND IMMIGRANT CHILDREN AND YOUTH.

    Title III (20 U.S.C. 6801 et seq.) is amended to read as follows:

 ``TITLE III--LANGUAGE INSTRUCTION FOR LIMITED ENGLISH PROFICIENT AND 
                           IMMIGRANT STUDENTS

``SEC. 3001. AUTHORIZATIONS OF APPROPRIATIONS; CONDITION ON 
              EFFECTIVENESS OF PARTS.

    ``(a) Authorizations of Appropriations.--
        ``(1) In general.--Subject to subsection (b), there are 
    authorized to be appropriated to carry out this title, except for 
    subpart 4 of part B, $750,000,000 for fiscal year 2002 and such 
    sums as may be necessary for each of the 5 succeeding fiscal years.
        ``(2) Emergency immigrant education program.--There are 
    authorized to be appropriated to carry out subpart 4 of part B 
    (when such part is in effect) such sums as may be necessary for 
    fiscal year 2002 and each of the 5 succeeding fiscal years.
    ``(b) Conditions on Effectiveness of Parts A and B.--
        ``(1) Part a.--Part A shall be in effect for any fiscal year 
    for which the amount appropriated under paragraphs (1) and (2) of 
    subsection (a) equals or exceeds $650,000,000.
        ``(2) Part b.--Part B shall be in effect only for a fiscal year 
    for which part A is not in effect.
    ``(c) References.--In any fiscal year for which part A is in 
effect, references in Federal law (other than this title) to part B 
shall be considered to be references to part A. In any fiscal year for 
which part B is in effect, references in Federal law (other than this 
title) to part A shall be considered to be references to part B.

   ``PART A--ENGLISH LANGUAGE ACQUISITION, LANGUAGE ENHANCEMENT, AND 
                        ACADEMIC ACHIEVEMENT ACT

``SEC. 3101. SHORT TITLE.

    ``This part may be cited as the `English Language Acquisition, 
Language Enhancement, and Academic Achievement Act'.

``SEC. 3102. PURPOSES.

    ``The purposes of this part are--
        ``(1) to help ensure that children who are limited English 
    proficient, including immigrant children and youth, attain English 
    proficiency, develop high levels of academic attainment in English, 
    and meet the same challenging State academic content and student 
    academic achievement standards as all children are expected to 
    meet;
        ``(2) to assist all limited English proficient children, 
    including immigrant children and youth, to achieve at high levels 
    in the core academic subjects so that those children can meet the 
    same challenging State academic content and student academic 
    achievement standards as all children are expected to meet, 
    consistent with section 1111(b)(1);
        ``(3) to develop high-quality language instruction educational 
    programs designed to assist State educational agencies, local 
    educational agencies, and schools in teaching limited English 
    proficient children and serving immigrant children and youth;
        ``(4) to assist State educational agencies and local 
    educational agencies to develop and enhance their capacity to 
    provide high-quality instructional programs designed to prepare 
    limited English proficient children, including immigrant children 
    and youth, to enter all-English instruction settings;
        ``(5) to assist State educational agencies, local educational 
    agencies, and schools to build their capacity to establish, 
    implement, and sustain language instruction educational programs 
    and programs of English language development for limited English 
    proficient children;
        ``(6) to promote parental and community participation in 
    language instruction educational programs for the parents and 
    communities of limited English proficient children;
        ``(7) to streamline language instruction educational programs 
    into a program carried out through formula grants to State 
    educational agencies and local educational agencies to help limited 
    English proficient children, including immigrant children and 
    youth, develop proficiency in English, while meeting challenging 
    State academic content and student academic achievement standards;
        ``(8) to hold State educational agencies, local educational 
    agencies, and schools accountable for increases in English 
    proficiency and core academic content knowledge of limited English 
    proficient children by requiring--
            ``(A) demonstrated improvements in the English proficiency 
        of limited English proficient children each fiscal year; and
            ``(B) adequate yearly progress for limited English 
        proficient children, including immigrant children and youth, as 
        described in section 1111(b)(2)(B); and
        ``(9) to provide State educational agencies and local 
    educational agencies with the flexibility to implement language 
    instruction educational programs, based on scientifically based 
    research on teaching limited English proficient children, that the 
    agencies believe to be the most effective for teaching English.

``Subpart 1--Grants and Subgrants for English Language Acquisition and 
                          Language Enhancement

``SEC. 3111. FORMULA GRANTS TO STATES.

    ``(a) In General.--In the case of each State educational agency 
having a plan approved by the Secretary for a fiscal year under section 
3113, the Secretary shall make a grant for the year to the agency for 
the purposes specified in subsection (b). The grant shall consist of 
the allotment determined for the State educational agency under 
subsection (c).
    ``(b) Use of Funds.--
        ``(1) Subgrants to eligible entities.--The Secretary may make a 
    grant under subsection (a) only if the State educational agency 
    involved agrees to expend at least 95 percent of the State 
    educational agency's allotment under subsection (c) for a fiscal 
    year--
            ``(A) to award subgrants, from allocations under section 
        3114, to eligible entities to carry out the activities 
        described in section 3115 (other than subsection (e)); and
            ``(B) to award subgrants under section 3114(d)(1) to 
        eligible entities that are described in that section to carry 
        out the activities described in section 3115(e).
        ``(2) State activities.--Subject to paragraph (3), each State 
    educational agency receiving a grant under subsection (a) may 
    reserve not more than 5 percent of the agency's allotment under 
    subsection (c) to carry out one or more of the following 
    activities:
            ``(A) Professional development activities, and other 
        activities, that assist personnel in meeting State and local 
        certification and licensing requirements for teaching limited 
        English proficient children.
            ``(B) Planning, evaluation, administration, and interagency 
        coordination related to the subgrants referred to in paragraph 
        (1).
            ``(C) Providing technical assistance and other forms of 
        assistance to eligible entities that are receiving subgrants 
        from a State educational agency under this subpart, including 
        assistance in--
                ``(i) identifying and implementing language instruction 
            educational programs and curricula that are based on 
            scientifically based research on teaching limited English 
            proficient children;
                ``(ii) helping limited English proficient children meet 
            the same challenging State academic content and student 
            academic achievement standards as all children are expected 
            to meet;
                ``(iii) identifying or developing, and implementing, 
            measures of English proficiency; and
                ``(iv) promoting parental and community participation 
            in programs that serve limited English proficient children.
            ``(D) Providing recognition, which may include providing 
        financial awards, to subgrantees that have exceeded their 
        annual measurable achievement objectives pursuant to section 
        3122.
        ``(3) Administrative expenses.--From the amount reserved under 
    paragraph (2), a State educational agency may use not more than 60 
    percent of such amount or $175,000, whichever is greater, for the 
    planning and administrative costs of carrying out paragraphs (1) 
    and (2).
    ``(c) Reservations and Allotments.--
        ``(1) Reservations.--From the amount appropriated under section 
    3001(a) for each fiscal year, the Secretary shall reserve--
            ``(A) 0.5 percent or $5,000,000 of such amount, whichever 
        is greater, for payments to eligible entities that are defined 
        under section 3112(a) for activities, approved by the 
        Secretary, consistent with this subpart;
            ``(B) 0.5 percent of such amount for payments to outlying 
        areas, to be allotted in accordance with their respective needs 
        for assistance under this subpart, as determined by the 
        Secretary, for activities, approved by the Secretary, 
        consistent with this subpart;
            ``(C) 6.5 percent of such amount for national activities 
        under sections 3131 and 3303, except that not more than 0.5 
        percent of such amount shall be reserved for evaluation 
        activities conducted by the Secretary and not more than 
        $2,000,000 of such amount may be reserved for the National 
        Clearinghouse for English Language Acquisition and Language 
        Instruction Educational Programs described in section 3303; and
            ``(D) such sums as may be necessary to make continuation 
        awards under paragraph (2).
        ``(2) Continuation awards.--
            ``(A) In general.--Before making allotments to State 
        educational agencies under paragraph (3) for any fiscal year, 
        the Secretary shall use the sums reserved under paragraph 
        (1)(D) to make continuation awards to recipients who received 
        grants or fellowships for the fiscal year preceding any fiscal 
        year described in section 3001(b)(1)(A) under--
                ``(i) subparts 1 and 3 of part A of title VII (as in 
            effect on the day before the date of enactment of the No 
            Child Left Behind Act of 2001); or
                ``(ii) subparts 1 and 3 of part B of this title.
            ``(B) Use of funds.--The Secretary shall make the awards in 
        order to allow such recipients to receive awards for the 
        complete period of their grants or fellowships under the 
        appropriate subparts.
        ``(3) State allotments.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        from the amount appropriated under section 3001(a) for each 
        fiscal year that remains after making the reservations under 
        paragraph (1), the Secretary shall allot to each State 
        educational agency having a plan approved under section 
        3113(c)--
                ``(i) an amount that bears the same relationship to 80 
            percent of the remainder as the number of limited English 
            proficient children in the State bears to the number of 
            such children in all States; and
                ``(ii) an amount that bears the same relationship to 20 
            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 educational agency 
        shall receive an allotment under this paragraph that is less 
        than $500,000.
            ``(C) Reallotment.--If any State educational agency 
        described in subparagraph (A) does not submit a plan to the 
        Secretary for a fiscal year, or submits a plan (or any 
        amendment to a plan) that the Secretary, after reasonable 
        notice and opportunity for a hearing, determines does not 
        satisfy the requirements of this subpart, the Secretary--
                ``(i) shall endeavor to make the State's allotment 
            available on a competitive basis to specially qualified 
            agencies within the State to satisfy the requirements of 
            section 3115 (and any additional requirements that the 
            Secretary may impose), consistent with the purposes of such 
            section, and to carry out required and authorized 
            activities under such section; and
                ``(ii) shall reallot any portion of such allotment 
            remaining after the application of clause (i) to the 
            remaining State educational agencies in accordance with 
            subparagraph (A).
            ``(D) Special rule for puerto rico.--The total amount 
        allotted to Puerto Rico for any fiscal year under subparagraph 
        (A) shall not exceed 0.5 percent of the total amount allotted 
        to all States for that fiscal year.
        ``(4) Use of data for determinations.--
            ``(A) In general.--In making State allotments under 
        paragraph (3), for the purpose of determining the number of 
        limited English proficient children 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 children and youth.
            ``(B) Special rule.--
                ``(i) First 2 years.--In making determinations under 
            subparagraph (A) for the 2 fiscal years following the date 
            of enactment of the No Child Left Behind Act of 2001, the 
            Secretary shall determine the number of limited English 
            proficient children in a State and in all States, and the 
            number of immigrant children and youth in a State and in 
            all States, using data available from the Bureau of Census 
            or submitted by the States to the Secretary.
                ``(ii) Subsequent years.--For subsequent fiscal years, 
            the Secretary shall determine the number of limited English 
            proficient children in a State and in all States, and the 
            number of immigrant children and youth in a State and in 
            all States, using the more accurate of--

                    ``(I) the data available from the American 
                Community Survey available from the Department of 
                Commerce; or
                    ``(II) the number of children being assessed for 
                English proficiency in a State as required under 
                section 1111(b)(7).

``SEC. 3112. NATIVE AMERICAN AND ALASKA NATIVE CHILDREN IN SCHOOL.

    ``(a) Eligible Entities.--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 children (including Alaska Native children), the following 
shall be considered to be an eligible entity:
        ``(1) An Indian tribe.
        ``(2) A tribally sanctioned educational authority.
        ``(3) A Native Hawaiian or Native American Pacific Islander 
    native language educational organization.
        ``(4) An elementary school or secondary school that is operated 
    or funded by the Bureau of Indian Affairs, or a consortium of such 
    schools.
        ``(5) An elementary school or secondary school operated under a 
    contract with or grant from the Bureau of Indian Affairs, in 
    consortium with another such school or a tribal or community 
    organization.
        ``(6) An elementary school or secondary school operated by the 
    Bureau of Indian Affairs and an institution of higher education, in 
    consortium with an elementary school or secondary school operated 
    under a contract with or grant from the Bureau of Indian Affairs or 
    a tribal or community organization.
    ``(b) Submission of Applications for Assistance.--Notwithstanding 
any other provision of this part, an entity that is considered to be an 
eligible entity under subsection (a), and that desires to receive 
Federal financial assistance under this subpart, shall submit an 
application to the Secretary.
    ``(c) Special Rule.--An eligible entity described in subsection (a) 
that receives Federal financial assistance pursuant to this section 
shall not be eligible to receive a subgrant under section 3114.

``SEC. 3113. STATE AND SPECIALLY QUALIFIED AGENCY PLANS.

    ``(a) Plan Required.--Each State educational agency and specially 
qualified agency desiring a grant under this subpart 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 the process that the agency will use in making 
    subgrants to eligible entities under section 3114(d)(1);
        ``(2) describe how the agency will establish standards and 
    objectives for raising the level of English proficiency that are 
    derived from the four recognized domains of speaking, listening, 
    reading, and writing, and that are aligned with achievement of the 
    challenging State academic content and student academic achievement 
    standards described in section 1111(b)(1);
        ``(3) contain an assurance that--
            ``(A) in the case of a State educational agency, the agency 
        consulted with local educational agencies, education-related 
        community groups and nonprofit organizations, parents, 
        teachers, school administrators, and researchers, in developing 
        the annual measurable achievement objectives described in 
        section 3122;
            ``(B) in the case of a specially qualified agency, the 
        agency consulted with education-related community groups and 
        nonprofit organizations, parents, teachers, and researchers, in 
        developing the annual measurable achievement objectives 
        described in section 3122;
            ``(C) the agency will ensure that eligible entities 
        receiving a subgrant under this subpart comply with the 
        requirement in section 1111(b)(7) to annually assess in English 
        children who have been in the United States for 3 or more 
        consecutive years;
            ``(D) the agency will ensure that eligible entities 
        receiving a subgrant under this subpart annually assess the 
        English proficiency of all limited English proficient children 
        participating in a program funded under this subpart, 
        consistent with section 1111(b)(7);
            ``(E) in awarding subgrants under section 3114, the agency 
        will address the needs of school systems of all sizes and in 
        all geographic areas, including school systems with rural and 
        urban schools;
            ``(F) subgrants to eligible entities under section 
        3114(d)(1) will be of sufficient size and scope to allow such 
        entities to carry out high-quality language instruction 
        educational programs for limited English proficient children; 
        and
            ``(G) the agency will require an eligible entity receiving 
        a subgrant under this subpart to use the subgrant in ways that 
        will build such recipient's capacity to continue to offer high-
        quality language instruction educational programs that assist 
        limited English proficient children in meeting challenging 
        State academic content and student academic achievement 
        standards once assistance under this subpart is no longer 
        available;
        ``(4) describe how the agency will coordinate its programs and 
    activities under this subpart with its other programs and 
    activities under this Act and other Acts, as appropriate;
        ``(5) describe how the agency will hold local educational 
    agencies, eligible entities, elementary schools, and secondary 
    schools accountable for--
            ``(A) meeting all annual measurable achievement objectives 
        described in section 3122;
            ``(B) making adequate yearly progress for limited English 
        proficient children, as described in section 1111(b)(2)(B); and
            ``(C) achieving the purposes of this part; and
        ``(6) describe how eligible entities in the State will be given 
    the flexibility to teach limited English proficient children--
            ``(A) using a language instruction curriculum that is tied 
        to scientifically based research on teaching limited English 
        proficient children and that has been demonstrated to be 
        effective; and
            ``(B) in the manner the eligible entities determine to be 
        the most effective.
    ``(c) Approval.--The Secretary, after using a peer review process, 
shall approve a plan submitted under subsection (a) if the plan meets 
the requirements of this section.
    ``(d) Duration of Plan.--
        ``(1) In general.--Each plan submitted by a State educational 
    agency or specially qualified agency and approved under subsection 
    (c) shall--
            ``(A) remain in effect for the duration of the agency's 
        participation under this part; and
            ``(B) be periodically reviewed and revised by the agency, 
        as necessary, to reflect changes to the agency's strategies and 
        programs carried out under this part.
        ``(2) Additional information.--
            ``(A) Amendments.--If the State educational agency or 
        specially qualified agency amends the plan, the agency shall 
        submit such amendment to the Secretary.
            ``(B) Approval.--The Secretary shall approve such amendment 
        to an approved plan, unless the Secretary determines that the 
        amendment will result in the agency not meeting the 
        requirements, or fulfilling the purposes, of this part.
    ``(e) Consolidated Plan.--A plan submitted under subsection (a) may 
be submitted as part of a consolidated plan under section 9302.
    ``(f) Secretary Assistance.--The Secretary shall provide technical 
assistance, if requested, in the development of English proficiency 
standards, objectives, and assessments.

``SEC. 3114. WITHIN-STATE ALLOCATIONS.

    ``(a) In General.--After making the reservation required under 
subsection (d)(1), each State educational agency receiving a grant 
under section 3111(c)(3) shall award subgrants for a fiscal year by 
allocating to each eligible entity in the State having a plan approved 
under section 3116 an amount that bears the same relationship to the 
amount received under the grant and remaining after making such 
reservation as the population of limited English proficient children in 
schools served by the eligible entity bears to the population of 
limited English proficient children in schools served by all eligible 
entities in the State.
    ``(b) Limitation.--A State educational agency shall not award a 
subgrant from an allocation made under subsection (a) if the amount of 
such subgrant would be less than $10,000.
    ``(c) Reallocation.--Whenever a State educational agency determines 
that an amount from an allocation made to an eligible entity under 
subsection (a) for a fiscal year will not be used by the entity for the 
purpose for which the allocation was made, the agency shall, in 
accordance with such rules as it determines to be appropriate, 
reallocate such amount, consistent with such subsection, to other 
eligible entities in the State that the agency determines will use the 
amount to carry out that purpose.
    ``(d) Required Reservation.--A State educational agency receiving a 
grant under this subpart for a fiscal year--
        ``(1) shall reserve not more than 15 percent of the agency's 
    allotment under section 3111(c)(3) to award subgrants to eligible 
    entities in the State that have experienced a significant increase, 
    as compared to the average of the 2 preceding fiscal years, in the 
    percentage or number of immigrant children and youth, who have 
    enrolled, during the fiscal year preceding the fiscal year for 
    which the subgrant is made, in public and nonpublic elementary 
    schools and secondary schools in the geographic areas under the 
    jurisdiction of, or served by, such entities; and
        ``(2) in awarding subgrants under paragraph (1)--
            ``(A) shall equally consider eligible entities that satisfy 
        the requirement of such paragraph but have limited or no 
        experience in serving immigrant children and youth; and
            ``(B) shall consider the quality of each local plan under 
        section 3116 and ensure that each subgrant is of sufficient 
        size and scope to meet the purposes of this part.

``SEC. 3115. SUBGRANTS TO ELIGIBLE ENTITIES.

    ``(a) Purposes of Subgrants.--A State educational agency may make a 
subgrant to an eligible entity from funds received by the agency under 
this subpart only if the entity agrees to expend the funds to improve 
the education of limited English proficient children, by assisting the 
children to learn English and meet challenging State academic content 
and student academic achievement standards. In carrying out activities 
with such funds, the entity shall use approaches and methodologies 
based on scientifically based research on teaching limited English 
proficient children and immigrant children and youth for the following 
purposes:
        ``(1) Developing and implementing new language instruction 
    educational programs and academic content instruction programs for 
    such children, and such children and youth, including programs of 
    early childhood education, elementary school programs, and 
    secondary school programs.
        ``(2) Carrying out highly focused, innovative, locally designed 
    activities to expand or enhance existing language instruction 
    educational programs and academic content instruction programs for 
    such children, and such children and youth.
        ``(3) Implementing, within an individual school, schoolwide 
    programs for restructuring, reforming, and upgrading all relevant 
    programs, activities, and operations relating to language 
    instruction educational programs and academic content instruction 
    for such children, and such children and youth.
        ``(4) Implementing, within the entire jurisdiction of a local 
    educational agency, agencywide programs for restructuring, 
    reforming, and upgrading all relevant programs, activities, and 
    operations relating to language instruction educational programs 
    and academic content instruction for such children, and such 
    children and youth.
    ``(b) Administrative Expenses.--Each eligible entity receiving 
funds under section 3114(a) for a fiscal year may use not more than 2 
percent of such funds for the cost of administering this subpart.
    ``(c) Required Subgrantee Activities.--An eligible entity receiving 
funds under section 3114(a) shall use the funds--
        ``(1) to increase the English proficiency of limited English 
    proficient children by providing high-quality language instruction 
    educational programs that are based on scientifically based 
    research demonstrating the effectiveness of the programs in 
    increasing--
            ``(A) English proficiency; and
            ``(B) student academic achievement in the core academic 
        subjects; and
        ``(2) to provide high-quality professional development to 
    classroom teachers (including teachers in classroom settings that 
    are not the settings of language instruction educational programs), 
    principals, administrators, and other school or community-based 
    organizational personnel, that is--
            ``(A) designed to improve the instruction and assessment of 
        limited English proficient children;
            ``(B) designed to enhance the ability of such teachers to 
        understand and use curricula, assessment measures, and 
        instruction strategies for limited English proficient children;
            ``(C) based on scientifically based research demonstrating 
        the effectiveness of the professional development in increasing 
        children's English proficiency or substantially increasing the 
        subject matter knowledge, teaching knowledge, and teaching 
        skills of such teachers; and
            ``(D) of sufficient intensity and duration (which shall not 
        include activities such as one-day or short-term workshops and 
        conferences) to have a positive and lasting impact on the 
        teachers' performance in the classroom, except that this 
        subparagraph shall not apply to an activity that is one 
        component of 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 any local 
        educational agency employing the teacher.
    ``(d) Authorized Subgrantee Activities.--Subject to subsection (c), 
an eligible entity receiving funds under section 3114(a) may use the 
funds to achieve one of the purposes described in subsection (a) by 
undertaking one or more of the following activities:
        ``(1) Upgrading program objectives and effective instruction 
    strategies.
        ``(2) Improving the instruction program for limited English 
    proficient children by identifying, acquiring, and upgrading 
    curricula, instruction materials, educational software, and 
    assessment procedures.
        ``(3) Providing--
            ``(A) tutorials and academic or vocational education for 
        limited English proficient children; and
            ``(B) intensified instruction.
        ``(4) Developing and implementing elementary school or 
    secondary school language instruction educational programs that are 
    coordinated with other relevant programs and services.
        ``(5) Improving the English proficiency and academic 
    achievement of limited English proficient children.
        ``(6) Providing community participation programs, family 
    literacy services, and parent outreach and training activities to 
    limited English proficient children and their families--
            ``(A) to improve the English language skills of limited 
        English proficient children; and
            ``(B) to assist parents in helping their children to 
        improve their academic achievement and becoming active 
        participants in the education of their children.
        ``(7) Improving the instruction of limited English proficient 
    children by providing for--
            ``(A) the acquisition or development of educational 
        technology or instructional materials;
            ``(B) access to, and participation in, electronic networks 
        for materials, training, and communication; and
            ``(C) incorporation of the resources described in 
        subparagraphs (A) and (B) into curricula and programs, such as 
        those funded under this subpart.
        ``(8) Carrying out other activities that are consistent with 
    the purposes of this section.
    ``(e) Activities by Agencies Experiencing Substantial Increases in 
Immigrant Children and Youth.--
        ``(1) In general.--An eligible entity receiving funds under 
    section 3114(d)(1) shall use the funds to pay for activities that 
    provide enhanced instructional opportunities for immigrant children 
    and youth, which may include--
            ``(A) family literacy, parent outreach, and training 
        activities designed to assist parents to become active 
        participants in the education of their children;
            ``(B) support for personnel, including teacher aides who 
        have been specifically trained, or are being trained, to 
        provide services to immigrant children and youth;
            ``(C) provision of tutorials, mentoring, and academic or 
        career counseling for immigrant children and youth;
            ``(D) identification and acquisition of curricular 
        materials, educational software, and technologies to be used in 
        the program carried out with funds;
            ``(E) basic instruction 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, costs of 
        transportation, or such other costs as are directly 
        attributable to such additional basic instruction services;
            ``(F) other instruction services that are designed to 
        assist immigrant children and youth to achieve in elementary 
        schools and secondary schools in the United States, such as 
        programs of introduction to the educational system and civics 
        education; and
            ``(G) 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 children and youth 
        by offering comprehensive community services.
        ``(2) Duration of subgrants.--The duration of a subgrant made 
    by a State educational agency under section 3114(d)(1) shall be 
    determined by the agency in its discretion.
    ``(f) Selection of Method of Instruction.--
        ``(1) In general.--To receive a subgrant from a State 
    educational agency under this subpart, an eligible entity shall 
    select one or more methods or forms of instruction to be used in 
    the programs and activities undertaken by the entity to assist 
    limited English proficient children to attain English proficiency 
    and meet challenging State academic content and student academic 
    achievement standards.
        ``(2) Consistency.--Such selection shall be consistent with 
    sections 3125 through 3127.
    ``(g) Supplement, Not Supplant.--Federal funds made available under 
this subpart shall be used so as to supplement the level of Federal, 
State, and local public funds that, in the absence of such 
availability, would have been expended for programs for limited English 
proficient children and immigrant children and youth and in no case to 
supplant such Federal, State, and local public funds.

``SEC. 3116. LOCAL PLANS.

    ``(a) Plan Required.--Each eligible entity desiring a subgrant from 
the State educational agency under section 3114 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 the programs and activities proposed to be 
    developed, implemented, and administered under the subgrant;
        ``(2) describe how the eligible entity will use the subgrant 
    funds to meet all annual measurable achievement objectives 
    described in section 3122;
        ``(3) describe how the eligible entity will hold elementary 
    schools and secondary schools receiving funds under this subpart 
    accountable for--
            ``(A) meeting the annual measurable achievement objectives 
        described in section 3122;
            ``(B) making adequate yearly progress for limited English 
        proficient children, as described in section 1111(b)(2)(B); and
            ``(C) annually measuring the English proficiency of limited 
        English proficient children, so that such children served by 
        the programs carried out under this part develop proficiency in 
        English while meeting State academic content and student 
        academic achievement standards as required by section 
        1111(b)(1);
        ``(4) describe how the eligible entity will promote parental 
    and community participation in programs for limited English 
    proficient children;
        ``(5) contain an assurance that the eligible entity consulted 
    with teachers, researchers, school administrators, and parents, 
    and, if appropriate, with education-related community groups and 
    nonprofit organizations, and institutions of higher education, in 
    developing such plan; and
        ``(6) describe how language instruction educational programs 
    carried out under the subgrant will ensure that limited English 
    proficient children being served by the programs develop English 
    proficiency.
    ``(c) Teacher English Fluency.--Each eligible entity receiving a 
subgrant under section 3114 shall include in its plan a certification 
that all teachers in any language instruction educational program for 
limited English proficient children that is, or will be, funded under 
this part are fluent in English and any other language used for 
instruction, including having written and oral communications skills.
    ``(d) Other Requirements for Approval.--Each local plan shall also 
contain assurances that--
        ``(1) each local educational agency that is included in the 
    eligible entity is complying with section 3302 prior to, and 
    throughout, each school year;
        ``(2) the eligible entity annually will assess the English 
    proficiency of all children with limited English proficiency 
    participating in programs funded under this part;
        ``(3) the eligible entity has based its proposed plan on 
    scientifically based research on teaching limited English 
    proficient children;
        ``(4) the eligible entity will ensure that the programs will 
    enable children to speak, read, write, and comprehend the English 
    language and meet challenging State academic content and student 
    academic achievement standards; and
        ``(5) the eligible entity is not in violation of any State law, 
    including State constitutional law, regarding the education of 
    limited English proficient children, consistent with sections 3126 
    and 3127.

             ``Subpart 2--Accountability and Administration

``SEC. 3121. EVALUATIONS.

    ``(a) In General.--Each eligible entity that receives a subgrant 
from a State educational agency under subpart 1 shall provide such 
agency, at the conclusion of every second fiscal year during which the 
subgrant is received, with an evaluation, in a form prescribed by the 
agency, that includes--
        ``(1) a description of the programs and activities conducted by 
    the entity with funds received under subpart 1 during the two 
    immediately preceding fiscal years;
        ``(2) a description of the progress made by children in 
    learning the English language and meeting challenging State 
    academic content and student academic achievement standards;
        ``(3) the number and percentage of children in the programs and 
    activities attaining English proficiency by the end of each school 
    year, as determined by a valid and reliable assessment of English 
    proficiency; and
        ``(4) a description of the progress made by children in meeting 
    challenging State academic content and student academic achievement 
    standards for each of the 2 years after such children are no longer 
    receiving services under this part.
    ``(b) Use of Evaluation.--An evaluation provided by an eligible 
entity under subsection (a) shall be used by the entity and the State 
educational agency--
        ``(1) for improvement of programs and activities;
        ``(2) to determine the effectiveness of programs and activities 
    in assisting children who are limited English proficient to attain 
    English proficiency (as measured consistent with subsection (d)) 
    and meet challenging State academic content and student academic 
    achievement standards; and
        ``(3) in determining whether or not to continue funding for 
    specific programs or activities.
    ``(c) Evaluation Components.--An evaluation provided by an eligible 
entity under subsection (a) shall--
        ``(1) provide an evaluation of children enrolled in a program 
    or activity conducted by the entity using funds under subpart 1 
    (including the percentage of children) who--
            ``(A) are making progress in attaining English proficiency, 
        including the percentage of children who have achieved English 
        proficiency;
            ``(B) have transitioned into classrooms not tailored to 
        limited English proficient children, and have a sufficient 
        level of English proficiency to permit them to achieve in 
        English and transition into classrooms not tailored to limited 
        English proficient children;
            ``(C) are meeting the same challenging State academic 
        content and student academic achievement standards as all 
        children are expected to meet; and
            ``(D) are not receiving waivers for the reading or language 
        arts assessments under section 1111(b)(3)(C); and
        ``(2) include such other information as the State educational 
    agency may require.
    ``(d) Evaluation Measures.--A State shall approve evaluation 
measures for use under subsection (c) that are designed to assess--
        ``(1) the progress of children in attaining English 
    proficiency, including a child's level of comprehension, speaking, 
    listening, reading, and writing skills in English;
        ``(2) student attainment of challenging State student academic 
    achievement standards on assessments described in section 
    1111(b)(3); and
        ``(3) progress in meeting the annual measurable achievement 
    objectives described in section 3122.
    ``(e) Special Rule for Specially Qualified Agencies.--Each 
specially qualified agency receiving a grant under this part shall 
provide the evaluations described in subsection (a) to the Secretary 
subject to the same requirements as apply to eligible entities 
providing such evaluations to State educational agencies under such 
subsection.

``SEC. 3122. ACHIEVEMENT OBJECTIVES AND ACCOUNTABILITY.

    ``(a) Achievement Objectives.--
        ``(1) In general.--Each State educational agency or specially 
    qualified agency receiving a grant under subpart 1 shall develop 
    annual measurable achievement objectives for limited English 
    proficient children served under this part that relate to such 
    children's development and attainment of English proficiency while 
    meeting challenging State academic content and student academic 
    achievement standards as required by section 1111(b)(1).
        ``(2) Development of objectives.--Such annual measurable 
    achievement objectives shall be developed in a manner that--
            ``(A) reflects the amount of time an individual child has 
        been enrolled in a language instruction educational program; 
        and
            ``(B) uses consistent methods and measurements to reflect 
        the increases described in subparagraphs (A)(i), (A)(ii), and 
        (B) of paragraph (3).
        ``(3) Contents.--Such annual measurable achievement 
    objectives--
            ``(A) shall include--
                ``(i) at a minimum, annual increases in the number or 
            percentage of children making progress in learning English;
                ``(ii) at a minimum, annual increases in the number or 
            percentage of children attaining English proficiency by the 
            end of each school year, as determined by a valid and 
            reliable assessment of English proficiency consistent with 
            section 1111(b)(7); and
                ``(iii) making adequate yearly progress for limited 
            English proficient children as described in section 
            1111(b)(2)(B); and
            ``(B) at the discretion of the agency, may include the 
        number or percentage of children not receiving waivers for 
        reading or language arts assessments under section 
        1111(b)(3)(C), but this achievement objective shall not be 
        applied to an eligible entity that, in a given school year--
                ``(i) has experienced a large increase in limited 
            English proficient children or immigrant children and 
            youth;
                ``(ii) enrolls a statistically significant number of 
            immigrant children and youth from countries where such 
            children and youth had little or no access to formal 
            education; or
                ``(iii) has a statistically significant number of 
            immigrant children and youth who have fled from war or 
            natural disaster.
    ``(b) Accountability.--
        ``(1) For states.--Each State educational agency receiving a 
    grant under subpart 1 shall hold eligible entities receiving a 
    subgrant under such subpart accountable for meeting the annual 
    measurable achievement objectives under subsection (a), including 
    making adequate yearly progress for limited English proficient 
    children.
        ``(2) Improvement plan.--If a State educational agency 
    determines, based on the annual measurable achievement objectives 
    described in subsection (a), that an eligible entity has failed to 
    make progress toward meeting such objectives for 2 consecutive 
    years, the agency shall require the entity to develop an 
    improvement plan that will ensure that the entity meets such 
    objectives. The improvement plan shall specifically address the 
    factors that prevented the entity from achieving such objectives.
        ``(3) Technical assistance.--During the development of the 
    improvement plan described in paragraph (2), and throughout its 
    implementation, the State educational agency shall--
            ``(A) provide technical assistance to the eligible entity;
            ``(B) provide technical assistance, if applicable, to 
        schools served by such entity under subpart 1 that need 
        assistance to enable the schools to meet the annual measurable 
        achievement objectives described in subsection (a);
            ``(C) develop, in consultation with the entity, 
        professional development strategies and activities, based on 
        scientifically based research, that the agency will use to meet 
        such objectives;
            ``(D) require such entity to utilize such strategies and 
        activities; and
            ``(E) develop, in consultation with the entity, a plan to 
        incorporate strategies and methodologies, based on 
        scientifically based research, to improve the specific program 
        or method of instruction provided to limited English proficient 
        children.
        ``(4) Accountability.--If a State educational agency determines 
    that an eligible entity has failed to meet the annual measurable 
    achievement objectives described in subsection (a) for 4 
    consecutive years, the agency shall--
            ``(A) require such entity to modify the entity's 
        curriculum, program, and method of instruction; or
            ``(B)(i) make a determination whether the entity shall 
        continue to receive funds related to the entity's failure to 
        meet such objectives; and
            ``(ii) require such entity to replace educational personnel 
        relevant to the entity's failure to meet such objectives.
    ``(c) Special Rule for Specially Qualified Agencies.--The Secretary 
shall hold specially qualified agencies receiving a grant under this 
subpart accountable for meeting the annual measurable achievement 
objectives described in subsection (a) in the same manner as State 
educational agencies hold eligible entities accountable under 
subsection (b).

``SEC. 3123. REPORTING REQUIREMENTS.

    ``(a) States.--Based upon the evaluations provided to a State 
educational agency under section 3121, each such agency that receives a 
grant under this part shall prepare and submit every second year to the 
Secretary a report on programs and activities carried out by the State 
educational agency under this part and the effectiveness of such 
programs and activities in improving the education provided to children 
who are limited English proficient.
    ``(b) Secretary.--Every second year, the Secretary shall prepare 
and submit to the Committee on Education and the Workforce of the House 
of Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate a report--
        ``(1) on programs and activities carried out to serve limited 
    English proficient children under this part, and the effectiveness 
    of such programs and activities in improving the academic 
    achievement and English proficiency of children who are limited 
    English proficient;
        ``(2) on the types of language instruction educational programs 
    used by local educational agencies or eligible entities receiving 
    funding under this part to teach limited English proficient 
    children;
        ``(3) containing a critical synthesis of data reported by 
    eligible entities to States under section 3121(a);
        ``(4) containing a description of technical assistance and 
    other assistance provided by State educational agencies under 
    section 3111(b)(2)(C);
        ``(5) containing an estimate of the number of certified or 
    licensed teachers working in language instruction educational 
    programs and educating limited English proficient children, and an 
    estimate of the number of such teachers that will be needed for the 
    succeeding 5 fiscal years;
        ``(6) containing the major findings of scientifically based 
    research carried out under this part;
        ``(7) containing the number of programs or activities, if any, 
    that were terminated because the entities carrying out the programs 
    or activities were not able to reach program goals;
        ``(8) containing the number of limited English proficient 
    children served by eligible entities receiving funding under this 
    part who were transitioned out of language instruction educational 
    programs funded under this part into classrooms where instruction 
    is not tailored for limited English proficient children; and
        ``(9) containing other information gathered from the 
    evaluations from specially qualified agencies and other reports 
    submitted to the Secretary under this title when applicable.

``SEC. 3124. COORDINATION WITH RELATED PROGRAMS.

    ``In order to maximize Federal efforts aimed at serving the 
educational needs of children of limited English proficiency, the 
Secretary shall coordinate and ensure close cooperation with other 
entities carrying out programs serving language-minority and limited 
English proficient children that are administered by the Department and 
other agencies.

``SEC. 3125. RULES OF CONSTRUCTION.

    ``Nothing in this part shall be construed--
        ``(1) to prohibit a local educational agency from serving 
    limited English proficient children simultaneously with children 
    with similar educational needs, in the same educational settings 
    where appropriate;
        ``(2) to require a State or a local educational agency to 
    establish, continue, or eliminate any particular type of 
    instructional program for limited English proficient children; or
        ``(3) to limit the preservation or use of Native American 
    languages.

``SEC. 3126. LEGAL AUTHORITY UNDER STATE LAW.

    ``Nothing in this part shall be construed to negate or supersede 
State law, or the legal authority under State law of any State agency, 
State entity, or State public official, over programs that are under 
the jurisdiction of the State agency, entity, or official.

``SEC. 3127. CIVIL RIGHTS.

    ``Nothing in this part shall be construed in a manner inconsistent 
with any Federal law guaranteeing a civil right.

``SEC. 3128. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

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

``SEC. 3129. 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 children.

                    ``Subpart 3--National Activities

``SEC. 3131. NATIONAL PROFESSIONAL DEVELOPMENT PROJECT.

    ``The Secretary shall use funds made available under section 
3111(c)(1)(C) to 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 children 
and assist educational personnel working with such children to meet 
high professional standards, including standards for certification and 
licensure as teachers who work in language instruction educational 
programs or serve limited English proficient children. Grants awarded 
under this subsection may be used--
        ``(1) 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;
        ``(2) for the development of curricula appropriate to the needs 
    of the consortia participants involved; and
        ``(3) in conjunction with other Federal need-based student 
    financial assistance programs, for financial assistance, and costs 
    related to tuition, fees, and books for enrolling in courses 
    required to complete the degree involved, to meet certification or 
    licensing requirements for teachers who work in language 
    instruction educational programs or serve limited English 
    proficient children.

                        ``Subpart 4--Definitions

``SEC. 3141. ELIGIBLE ENTITY.

    ``In this part, the term `eligible entity' means--
        ``(1) one or more local educational agencies; or
        ``(2) one or more local educational agencies, in collaboration 
    with an institution of higher education, community-based 
    organization, or State educational agency.

     ``PART B--IMPROVING LANGUAGE INSTRUCTION EDUCATIONAL PROGRAMS

``SEC. 3201. SHORT TITLE.

    ``This part may be cited as the `Improving Language Instruction 
Educational Programs For Academic Achievement Act'.

``SEC. 3202. PURPOSE.

    ``The purpose of this part is to help ensure that limited English 
proficient children master English and meet the same rigorous standards 
for academic achievement as all children are expected to meet, 
including meeting challenging State academic content and student 
academic achievement standards by--
        ``(1) promoting systemic improvement and reform of, and 
    developing accountability systems for, educational programs serving 
    limited English proficient children;
        ``(2) developing language skills and multicultural 
    understanding;
        ``(3) developing the English proficiency of limited English 
    proficient children and, to the extent possible, the native 
    language skills of such children;
        ``(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 children; and
        ``(6) developing programs that strengthen and improve the 
    professional training of educational personnel who work with 
    limited English proficient children.

``SEC. 3203. NATIVE AMERICAN CHILDREN IN SCHOOL.

    ``(a) Eligible Entities.--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.
    ``(b) Application.--Notwithstanding any other provision of this 
part, each tribe, authority, organization, or school 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. 3204. 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--Program Development and Enhancement

``SEC. 3211. FINANCIAL ASSISTANCE FOR LANGUAGE INSTRUCTION EDUCATIONAL 
              PROGRAMS.

    ``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 3212 and 
3213--
        ``(1) to develop and enhance their capacity to provide high-
    quality instruction through language instruction educational 
    programs or special alternative instruction programs to limited 
    English proficient children; and
        ``(2) to help such children--
            ``(A) develop English proficiency and, to the extent 
        possible, proficiency in their native language; and
            ``(B) meet the same challenging State academic content and 
        student academic achievement standards as all children are 
        expected to meet under section 1111(b)(1).

``SEC. 3212. PROGRAM ENHANCEMENT ACTIVITIES.

    ``(a) Program Authorized.--
        ``(1) Authority.--
            ``(A) In general.--The Secretary is authorized to award 
        grants to eligible entities having applications approved under 
        section 3214 to enable such entities to provide innovative, 
        locally designed, high-quality instruction to limited English 
        proficient children, by expanding, developing, or strengthening 
        language instruction educational programs or special 
        alternative instruction programs.
            ``(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, that 
            are--

                    ``(I) aligned with State and local academic content 
                and student academic achievement standards, and local 
                school reform efforts; and
                    ``(II) coordinated with related academic services 
                for children;

                ``(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 
            children; and
                ``(iii) annually assessing the English proficiency of 
            all limited English proficient children 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 
            children;
                ``(ii) developing accountability systems to monitor the 
            academic progress of limited English proficient and 
            formerly limited English proficient children;
                ``(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 instruction programs for limited 
            English proficient children by identifying, acquiring, and 
            applying effective curricula, instruction 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 vocational and technical, 
            training, for limited English proficient children;
                ``(vi) adapting best practice models for meeting the 
            needs of limited English proficient children;
                ``(vii) assisting limited English proficient children 
            with disabilities;
                ``(viii) implementing applied learning activities such 
            as service learning to enhance and support comprehensive 
            elementary and secondary language instruction educational 
            programs;
                ``(ix) acquiring or developing education technology or 
            instruction materials for limited English proficient 
            children, including materials in languages other than 
            English;
                ``(x) participating in electronic networks for 
            materials, training, and communication, and incorporating 
            information derived from such participation in curricula 
            and programs; and
                ``(xi) carrying out such other activities related to 
            the purpose of this part as the Secretary may approve.
    ``(b) 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 children; and
        ``(2) has limited or no experience in serving limited English 
    proficient children.
    ``(c) Eligible Entity.--In this section, the term `eligible entity' 
means--
        ``(1) one or more local educational agencies;
        ``(2) one 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 instruction programs that 
    supplement the educational services provided by a local educational 
    agency.

``SEC. 3213. COMPREHENSIVE SCHOOL AND SYSTEMWIDE IMPROVEMENT 
              ACTIVITIES.

    ``(a) Program Authorized.--
        ``(1) Authority.--The Secretary is authorized to award grants 
    to eligible entities having applications approved under section 
    3214 to enable such entities to develop and implement language 
    instruction educational programs, and improve, reform, or upgrade 
    programs or operations that serve significant percentages or 
    numbers of limited English proficient children.
        ``(2) Mandatory activities.--Grants awarded under this section 
    shall be used for--
            ``(A) improving instruction programs for limited English 
        proficient children by acquiring and upgrading curricula and 
        related instruction 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 children;
            ``(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 children;
            ``(E) implementing culturally and linguistically 
        appropriate family education programs, or parent outreach and 
        training activities, that are designed to assist parents of 
        limited English proficient children 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 children;
            ``(H) annually assessing the English proficiency of all 
        limited English proficient children 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 
        children.
        ``(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 children;
            ``(B) developing and using educational technology to 
        improve learning, assessments, and accountability to meet the 
        needs of limited English proficient children;
            ``(C) implementing scientifically based research programs 
        to meet the needs of limited English proficient children;
            ``(D) providing tutorials and academic, or vocational and 
        technical, training for limited English proficient children;
            ``(E) developing and implementing State and local academic 
        content and student academic achievement standards for learning 
        English as a second language, as well as for learning other 
        languages;
            ``(F) developing and implementing programs for limited 
        English proficient children to meet the needs of changing 
        populations of such children;
            ``(G) implementing policies to ensure that limited English 
        proficient children have access to other education programs 
        (other than programs designed to address limited English 
        proficiency);
            ``(H) assisting limited English proficient children with 
        disabilities;
            ``(I) developing and implementing programs to help children 
        become proficient in English and other languages;
            ``(J) acquiring or developing education technology or 
        instruction materials for limited English proficient children, 
        including materials in languages other than English;
            ``(K) participating in electronic networks for materials, 
        training, and communication and incorporating information 
        derived from such participation in curricula and programs; and
            ``(L) carrying out such other activities related to the 
        purpose of this part as the Secretary may approve.
        ``(4) Special rule.--
            ``(A) Planning.--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 45 days.
            ``(B) Commencement of activities.--The recipient shall 
        commence carrying out activities under this section not later 
        than the later of--
                ``(i) the beginning of the first school year that 
            begins after the grant is received; or
                ``(ii) 30 days after the date of receipt of the grant.
    ``(b) 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 7112, 7113, 7114, 
            or 7115 (as such sections were in effect on the day before 
            the date of enactment of the No Child Left Behind Act of 
            2001); 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 3001(a) 
        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, in 
        accordance with the terms of that 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 3001(a) that is made available to carry out this 
    section, and that remains after the Secretary reserves funds for 
    payments under paragraph (1)--
            ``(A) not less than one-third of the remainder shall be 
        used to award grants to eligible entities for activities 
        carried out within an entire school district; and
            ``(B) not less than two-thirds of the remainder shall be 
        used to award grants to eligible entities for activities 
        carried out within individual schools.
    ``(c) Priority.--In awarding grants under this section, the 
Secretary shall give priority to an applicant that--
        ``(1) experiences a significant increase in the number or 
    percentage of limited English proficient children enrolled in the 
    applicant's programs and has limited or no experience in serving 
    limited English proficient children;
        ``(2) is a local educational agency that serves a school 
    district that has a total district enrollment that is less than 
    10,000 students;
        ``(3) demonstrates that the applicant has a proven track record 
    of success in helping limited English proficient children learn 
    English and meet high academic standards; or
        ``(4) serves a school district with a large number or 
    percentage of limited English proficient children.
    ``(d) Eligible Entities.--In this section, the term `eligible 
entity' means--
        ``(1) one or more local educational agencies; or
        ``(2) one or more local educational agencies, in collaboration 
    with an institution of higher education, community-based 
    organization, or State educational agency.

``SEC. 3214. APPLICATIONS.

    ``(a) In General.--
        ``(1) Secretary.--To receive a grant under this subpart, an 
    eligible entity described in section 3212 or 3213 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.--The 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 children 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 
3224, 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 subpart.
    ``(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 
            children in the school or school district to be served;
                ``(ii) information on the characteristics of the 
            children, including--

                    ``(I) the native languages of the children;
                    ``(II) the proficiency of the children in English 
                and their native language;
                    ``(III) achievement data (current as of the date of 
                submission of the application) for the limited English 
                proficient children 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 children 
                with that data for the English proficient peers of the 
                children; and
                    ``(V) the previous schooling experiences of the 
                children;

                ``(iii) the professional development needs of the 
            instruction personnel who will provide services for the 
            limited English proficient children under the proposed 
            program; and
                ``(iv) how the services provided through the grant will 
            supplement the basic services provided to limited English 
            proficient children.
            ``(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 limited English proficient children 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 children;
                ``(iii) will ensure that the program is coordinated 
            with other programs under this Act and other Acts;
                ``(iv) involves the parents of the limited English 
            proficient children to be served;
                ``(v) ensures accountability in achieving high academic 
            standards; and
                ``(vi) promotes coordination of services for the 
            limited English proficient children 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 
        language instruction educational programs 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 
            children who 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 3213 shall--
            ``(A) describe--
                ``(i) current services (as of the date of submission of 
            the application) the applicant provides to limited English 
            proficient children;
                ``(ii) what services limited English proficient 
            children will receive under the grant that such children 
            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 limited English 
            proficient children;
                ``(iv) specific achievement and school retention goals 
            for the children 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 
            children served through the proposed program; and
                ``(ii) the application has been developed in 
            consultation with parents and other representatives of the 
            children 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 and reliable for limited English proficient 
    children; and
        ``(B) limited English proficient children 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 children; 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) Consideration.--In determining whether to approve an 
application under this subpart, the Secretary shall give consideration 
to--
        ``(1) 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; and
        ``(2) whether the application provides for training for 
    personnel participating in, or preparing to participate in, a 
    program that will assist such personnel in meeting State and local 
    certification requirements.

``SEC. 3215. 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 language instruction educational programs and special 
alternative instruction programs to limited English proficient children 
after Federal assistance is reduced or eliminated.

``SEC. 3216. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

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

``SEC. 3217. 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 3214 as baseline data against which to 
    report academic achievement and gains in English proficiency for 
    children in the program;
        ``(2) disaggregate the results of the evaluation by gender, 
    native languages spoken by children, socioeconomic status, and 
    whether the children 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 children served by the program 
    are meeting the challenging State academic content and student 
    academic achievement standards, and including data comparing 
    limited English proficient children with English proficient 
    children 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 children, 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 
    academic achievement;
        lude 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
        ``(6) include such other information as the Secretary may 
    require.

``SEC. 3218. CONSTRUCTION.

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

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

``SEC. 3221. 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 language instruction educational programs and 
special alternative instruction programs for limited English proficient 
children.
    ``(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 English Language Acquisition, 
Language Enhancement, and Academic Achievement for Limited English 
Proficient Students.

``SEC. 3222. 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 English Language Acquisition, Language Enhancement, and 
Academic Achievement for Limited English Proficient Students.
    ``(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 children and their families;
        ``(2) may include research on effective instruction 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 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 second 
    language acquisition and scientifically based research on teaching 
    limited English proficient children) a common definition of 
    `limited English proficient child' for purposes of national data 
    collection; and
        ``(4) shall be administered by individuals with expertise in 
    second language acquisition, scientifically based research on 
    teaching limited English proficient children, and the needs of 
    limited English proficient children 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 limited English proficient children or teachers who 
    serve such children, monitoring the education of such children from 
    entry into language instruction educational programs 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 two or more of such grants.
    ``(d) Consultation.--The Secretary shall consult with agencies, 
organizations, and individuals that are engaged in research and 
practice on the education of limited English proficient children, 
language instruction educational programs, or related research, 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 children as part of 
the data systems operated by the Department.

``SEC. 3223. 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 children to learn English according to age 
    appropriate and developmentally appropriate standards; and
        ``(2) demonstrated significant progress in assisting limited 
    English proficient children to meet, according to age appropriate 
    and developmentally appropriate standards, the same challenging 
    State academic content and student academic achievement standards 
    as all children 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 3224(e).

``SEC. 3224. 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 limited English proficient children 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 $100,000.
    ``(c) Use of Funds.--
        ``(1) In general.--A State educational agency shall use funds 
    awarded under this section--
            ``(A) to assist local educational agencies in the State 
        with activities that--
                ``(i) consist of program design, capacity building, 
            assessment of student academic achievement, program 
            evaluation, and development of data collection and 
            accountability systems for limited English proficient 
            children; and
                ``(ii) are aligned with State reform efforts; and
            ``(B) to 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.
        ``(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 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. 3225. INSTRUCTION MATERIALS DEVELOPMENT.

    ``(a) In General.--The Secretary may make grants for the 
development, publication, and dissemination of high-quality instruction 
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 
    instruction materials are not readily available; and
        ``(2) in other low-incidence languages in the United States for 
    which instruction 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 instruction 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 challenging State academic 
    content and student academic achievement standards.

                 ``Subpart 3--Professional Development

``SEC. 3231. PROFESSIONAL DEVELOPMENT GRANTS.

    ``(a) Purpose.--The purpose of this section is to provide 
assistance to prepare educators to improve educational services for 
limited English proficient children by--
        ``(1) supporting professional development programs and 
    activities to prepare teachers, pupil service personnel, 
    administrators, and other educational personnel working in language 
    instruction educational programs to provide effective services to 
    limited English proficient children;
        ``(2) incorporating curricula and resources concerning 
    appropriate and effective instruction and assessment methodologies 
    specific to limited English proficient children into preservice and 
    inservice professional development programs;
        ``(3) upgrading the qualifications and skills of non-certified 
    educational personnel, including paraprofessionals, to enable such 
    personnel to meet high professional standards for educating limited 
    English proficient children;
        ``(4) improving the quality of professional development 
    programs in schools or departments of education at institutions of 
    higher education, for educational personnel serving, or preparing 
    to serve, limited English proficient children; and
        ``(5) supporting the recruitment and training of prospective 
    educational personnel to serve limited English proficient children 
    by providing fellowships for undergraduate, graduate, doctoral, and 
    post-doctoral study related to the instruction of such children.
    ``(b) Authorization.--
        ``(1) In general.--The Secretary is authorized to award grants 
    under this section to--
            ``(A) State educational agencies;
            ``(B) local educational agencies;
            ``(C) institutions of higher education; or
            ``(D) consortia of one or more local educational agencies, 
        State educational agencies, institutions of higher education, 
        for-profit organizations, or nonprofit organizations.
        ``(2) Duration.--Each grant awarded under this section shall be 
    awarded for a period of not more than 4 years.
    ``(c) Authorized Activities.--Grants awarded under this section 
shall be used to conduct high-quality professional development programs 
and effective activities to improve the quality of instruction and 
services provided to limited English proficient children, including--
        ``(1) implementing preservice and inservice professional 
    development programs for teachers who serve limited English 
    proficient children, administrators, and other educational 
    personnel who are preparing to provide educational services for 
    limited English proficient children, including professional 
    development programs that assist limited English proficient 
    children to attain English proficiency;
        ``(2) implementing school-based collaborative efforts among 
    teachers to improve instruction in core academic subjects, 
    especially reading, for limited English proficient children;
        ``(3) developing and implementing programs to assist beginning 
    teachers who serve limited English proficient children with 
    transitioning to the teaching profession, including programs that 
    provide mentoring and team teaching with trained and experienced 
    teachers;
        ``(4) implementing programs that support effective teacher use 
    of education technologies to improve instruction and assessment;
        ``(5) developing curricular materials and assessments for 
    teachers that are appropriate to the needs of limited English 
    proficient children, and that are aligned with challenging State 
    academic content and student academic achievement standards, 
    including materials and assessments that ensure limited English 
    proficient children attain English proficiency;
        ``(6) integrating and coordinating activities with entities 
    carrying out other programs consistent with the purpose of this 
    section and supported under this Act, or other Acts as appropriate;
        ``(7) developing and implementing career ladder programs to 
    upgrade the qualifications and skills of non-certified educational 
    personnel working in, or preparing to work in, language instruction 
    educational programs to enable such personnel to meet high 
    professional standards, including standards for certification and 
    licensure as teachers;
        ``(8) developing and implementing activities to help recruit 
    and train secondary school students as teachers who serve limited 
    English proficient children;
        ``(9) providing fellowships and assistance for costs related to 
    enrollment in a course of study at an institution of higher 
    education that addresses the instruction of limited English 
    proficient children in such areas as teacher training, program 
    administration, research, evaluation, and curriculum development, 
    and for the support of dissertation research related to such study, 
    except that any person receiving such a fellowship or assistance 
    shall agree to--
            ``(A) work in an activity related to improving the 
        educational services for limited English proficient children 
        authorized under this subpart, including work as a teacher that 
        serves limited English proficient children, for a period of 
        time equivalent to the period of time during which such person 
        receives assistance under this paragraph; or
            ``(B) repay such assistance; and
        ``(10) carrying out such other activities as are consistent 
    with the purpose of this section.
    ``(d) Application.--
        ``(1) In general.--Each eligible entity desiring a grant under 
    this section shall submit an application to the Secretary at such 
    time, in such form, and containing such information as the 
    Secretary may require.
        ``(2) Contents.--Each application shall--
            ``(A) describe the programs and activities proposed to be 
        developed, implemented, and administered under the award;
            ``(B) describe how the applicant has consulted with, and 
        assessed the needs of, public and private schools serving 
        limited English proficient children to determine such schools' 
        need for, and the design of, the program for which funds are 
        sought; and
            ``(C) describe how the programs and activities to be 
        carried out under the award will be used to ensure that limited 
        English proficient children meet challenging State academic 
        content and student academic achievement standards and attain 
        English proficiency.
        ``(3) Special rule.--An eligible entity that proposes to 
    conduct a master's-level or doctoral-level program with funds 
    received under this section shall include in the entity's 
    application an assurance that such program will include a training 
    practicum in a local elementary school or secondary school program 
    serving limited English proficient children.
        ``(4) 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 programs and 
    activities under this section.
        ``(5) Distribution rule.--In making awards under this section, 
    the Secretary shall ensure adequate representation of Hispanic-
    serving institutions that demonstrate competence and experience in 
    carrying out the programs and activities authorized under this 
    section and that are otherwise qualified.
    ``(e) Priorities in Awarding Grants.--
        ``(1) Grants to agencies.--In awarding grants to State 
    educational agencies and local educational agencies under this 
    section, the Secretary shall give priority to agencies that propose 
    programs and activities designed to implement professional 
    development programs for teachers and educational personnel who are 
    providing or preparing to provide educational services for limited 
    English proficient children, including services provided through 
    language instruction educational programs, that ensure such 
    children attain English proficiency and meet challenging State 
    academic content and student academic achievement standards.
        ``(2) Grants to institutions of higher education.--In awarding 
    grants to institutions of higher education under this section, the 
    Secretary shall give priority to institutions that propose programs 
    and activities to recruit and upgrade the qualifications and skills 
    of certified and non-certified educational personnel by offering 
    degree programs that prepare beginning teachers to serve limited 
    English proficient children.
    ``(f) Program Evaluations.--Each recipient of an award under this 
section for a program or activity shall annually conduct an independent 
evaluation of the program or activity and submit to the Secretary a 
report containing such evaluation. Such report shall include 
information on--
        ``(1) the program or activity conducted by the recipient to 
    provide high-quality professional development to participants in 
    such program or activity;
        ``(2) the number of participants served through the program or 
    activity, the number of participants who completed the requirements 
    of the program or activity, and the number of participants who took 
    positions in an instruction setting with limited English proficient 
    children;
        ``(3) the effectiveness of the program or activity in imparting 
    the professional skills necessary for participants to achieve the 
    objectives of the program or activity; and
        ``(4) the teaching effectiveness of graduates of the program or 
    activity or other participants who have completed the program or 
    activity.

           ``Subpart 4--Emergency Immigrant Education Program

``SEC. 3241. PURPOSE.

    ``The purpose of this subpart is to assist eligible local 
educational agencies that experience unexpectedly large increases in 
their student population due to immigration--
        ``(1) to provide high-quality instruction to immigrant children 
    and youth; and
        ``(2) to help such children and youth--
            ``(A) with their transition into American society; and
            ``(B) meet the same challenging State academic content and 
        student academic achievement standards as all children are 
        expected to meet.

``SEC. 3242. 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 subpart to local educational 
agencies on a competitive basis) of the amount allotted to such agency 
under section 3244 to pay the costs of performing such agency's 
administrative functions under this subpart.

``SEC. 3243. 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 comply with a requirement of any provision of 
this subpart, the Secretary shall notify that agency that further 
payments will not be made to the agency under this subpart or, in the 
discretion of the Secretary, that the State educational agency shall 
not make further payments under this subpart 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 
subpart, or payments by the State educational agency under this subpart 
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. 3244. STATE ALLOTMENTS.

    ``(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 3241.
    ``(b) Allotments.--
        ``(1) In general.--Except as provided in subsections (c) and 
    (d), of the amount appropriated for each fiscal year for this 
    subpart, each State participating in the program assisted under 
    this subpart shall receive an allotment equal to the proportion of 
    the 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), and in nonpublic elementary schools or secondary 
    schools within the district served by each such local educational 
    agency within such State, relative to the total number of immigrant 
    children and youth so enrolled in all the States participating in 
    the program assisted under this subpart.
        ``(2) Eligible local educational agencies.--A local educational 
    agency referred to in paragraph (1) is a local educational agency 
    for 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 agency, and in nonpublic elementary 
    schools or secondary schools within the district served by such 
    agency, during the fiscal year for which the payments are to be 
    made under this subpart, is equal to at least--
            ``(A) 500; or
            ``(B) 3 percent of the total number of children 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 allotment under this section that such State would 
    otherwise have received had such determination been made on the 
    basis of accurate data.
    ``(d) Reallotment.--
        ``(1) In general.--Whenever the Secretary determines that any 
    amount of a payment made to a State under this subpart for a fiscal 
    year will not be used by such State for carrying out the purpose 
    for which the payment was made, the Secretary shall make such 
    amount available for carrying out such purpose to one or more other 
    States to the extent the Secretary determines that such other 
    States will be able to use such additional amount for carrying out 
    such purpose.
        ``(2) Fiscal year.--Any amount made available to a State from 
    any appropriation for a fiscal year in accordance with paragraph 
    (1) shall, for purposes of this subpart, 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 
    subpart, if the amount appropriated to carry out this subpart 
    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 subpart 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 the funds reserved under this paragraph 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 that are experiencing a 
        sudden influx of immigrant children and youth and that are 
        otherwise not eligible for assistance under this subpart.
        ``(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 3247.
        ``(3) Information.--Local educational agencies receiving funds 
    under paragraph (1) with the highest number of immigrant children 
    and youth may make information available on serving immigrant 
    children and youth to local educational agencies in the State with 
    sparse numbers of such children and youth.

``SEC. 3245. STATE APPLICATIONS.

    ``(a) Submission.--No State educational agency shall receive any 
payment under this subpart 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 subpart are made will be 
    administered by or under the supervision of the agency;
        ``(2) provide assurances that payments under this subpart will 
    be used for purposes set forth in sections 3241 and 3247, including 
    a description of how local educational agencies receiving funds 
    under this subpart will use such funds to meet such purposes and 
    will coordinate with entities carrying out other programs and 
    activities assisted under this Act, and other Acts as appropriate;
        ``(3) provide an assurance that local educational agencies 
    receiving funds under this subpart will coordinate the use of such 
    funds with entities carrying out programs and activities assisted 
    under part A of title I;
        ``(4) provide assurances that such payments, with the exception 
    of payments reserved under section 3244(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 3244(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 subpart 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 
    subpart;
        ``(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 subpart 
        for any materials or equipment, or property repaired, 
        remodeled, or constructed with those funds shall be in a public 
        agency for the uses and purpose provided in this subpart, 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 3244(e) be 
    awarded on a competitive basis based on merit and need in 
    accordance with such section; and
        ``(9) provide an assurance that the State educational agency 
    and local educational agencies in the State receiving funds under 
    this subpart 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 that 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 
    educational agency.

``SEC. 3246. 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 3245 of the amount of such agency's 
allotment under section 3244 for the succeeding year.
    ``(b) Services to Immigrant Children and Youth Enrolled in 
Nonpublic Schools.--If by reason of any provision of law a local 
educational agency is prohibited from providing educational services 
for immigrant children and youth enrolled in nonpublic elementary 
schools and secondary schools, as required by section 3245(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 such children and youth enrolled in such 
schools, the Secretary may waive such requirement and shall arrange for 
the provision of services, subject to the requirements of this subpart, 
to such children and youth. Such waivers shall be subject to 
consultation, withholding, notice, and judicial review requirements in 
accordance with the provisions of title I.

``SEC. 3247. USES OF FUNDS.

    ``(a) Use of Funds.--Funds awarded under this subpart 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) support 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;
        ``(5) the provision of basic instruction services that are 
    directly attributable to the presence in the school district of 
    immigrant children and youth, including payment of costs of 
    providing additional classroom supplies, costs of transportation, 
    or such other costs as are directly attributable to such additional 
    basic instruction services; and
        ``(6) such other activities, related to the purpose of this 
    subpart, as the Secretary may authorize.
    ``(b) Consortia.--A local educational agency that receives a grant 
under this subpart may collaborate or form a consortium with one or 
more local educational agencies, institutions of higher education, and 
nonprofit organizations to carry out a program described in an 
application approved under this subpart.
    ``(c) Subgrants.--A local educational agency that receives a grant 
under this subpart 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 
institutions or organizations to carry out a program described in an 
application approved under this subpart, including a program to serve 
out-of-school youth.
    ``(d) Construction.--Nothing in this subpart shall be construed to 
prohibit a local educational agency from serving immigrant children and 
youth simultaneously with children and youth with similar educational 
needs, in the same educational settings where appropriate.

``SEC. 3248. REPORTS.

    ``(a) Biennial Report.--Each State educational agency receiving 
funds under this subpart shall submit, once every 2 years, a report to 
the Secretary concerning the expenditure of funds by local educational 
agencies under this subpart. Each local educational agency receiving 
funds under this subpart 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 Congress concerning 
programs assisted under this subpart.

                      ``Subpart 5--Administration

``SEC. 3251. RELEASE TIME.

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

``SEC. 3252. NOTIFICATION.

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

``SEC. 3253. 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 children 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 children and their families. The Secretary shall 
provide for continuing consultation and collaboration, between the 
Office of English Language Acquisition, Language Enhancement, and 
Academic Achievement for Limited English Proficient Students and 
relevant programs operated by the Department, including programs under 
this part 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 educational opportunities to all 
language-minority and limited English proficient children.
    ``(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 children.
    ``(c) Publication of Proposals.--The Secretary shall publish and 
disseminate all requests for proposals for programs funded under this 
part.
    ``(d) Report.--The Director shall prepare and, not later than 
February 1 of every other year, shall submit to the Secretary, 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--
        ``(1) on programs and activities carried out to serve limited 
    English proficient children under this part, and the effectiveness 
    of such programs and activities in improving the academic 
    achievement and English proficiency of children who are limited 
    English proficient;
        ``(2) containing a critical synthesis of data reported by 
    States under section 3224, when applicable;
        ``(3) containing an estimate of the number of certified or 
    licensed teachers working in language instruction educational 
    programs and educating limited English proficient children, and an 
    estimate of the number of such teachers that will be needed for the 
    succeeding 5 fiscal years;
        ``(4) containing the major findings of scientifically based 
    research carried out under this part; and
        ``(5) containing other information gathered from the reports 
    submitted to the Secretary under this title when applicable.

                      ``PART C--GENERAL PROVISIONS

``SEC. 3301. DEFINITIONS.

    ``Except as otherwise provided, in this title:
        ``(1) Child.--The term `child' means any individual aged 3 
    through 21.
        ``(2) Community-based organization.--The term `community-based 
    organization' means a private nonprofit organization of 
    demonstrated effectiveness, Indian tribe, or tribally sanctioned 
    educational authority, 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 a Native Hawaiian or Native American Pacific Islander 
    native language educational organization.
        ``(3) 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.
        ``(4) Director.--The term `Director' means the Director of the 
    Office of English Language Acquisition, Language Enhancement, and 
    Academic Achievement for Limited English Proficient Students 
    established under section 209 of the Department of Education 
    Organization Act.
        ``(5) Family education program.--The term `family education 
    program' means a language instruction educational program or 
    special alternative instruction program that--
            ``(A) is designed--
                ``(i) to help limited English proficient adults and 
            out-of-school youths achieve English proficiency; and
                ``(ii) to provide instruction on how parents and family 
            members can facilitate the educational achievement of their 
            children;
            ``(B) when feasible, uses instructional programs based on 
        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
            ``(C) gives preference to participation by parents and 
        immediate family members of children attending school.
        ``(6) 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 one or more schools in any 
        one or more States for more than 3 full academic years.
        ``(7) 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.
        ``(8) Language instruction educational program.--The term 
    `language instruction educational program' means an instruction 
    course--
            ``(A) in which a limited English proficient child is placed 
        for the purpose of developing and attaining English 
        proficiency, while meeting challenging State academic content 
        and student academic achievement standards, as required by 
        section 1111(b)(1); and
            ``(B) that may make instructional use of both English and a 
        child's native language to enable the child to develop and 
        attain English proficiency, and may include the participation 
        of English proficient children if such course is designed to 
        enable all participating children to become proficient in 
        English and a second language.
        ``(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) 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
            ``(B) 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--
            ``(A) the language normally used by such individual; or
            ``(B) in the case of a child or youth, the language 
        normally used by the parents of the child or youth.
        ``(12) 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 language instruction 
    educational programs, special education, and migrant education.
        ``(13) Specially qualified agency.--The term `specially 
    qualified agency' means an eligible entity, as defined in section 
    3141, in a State whose State educational agency--
            ``(A) does not participate in a program under subpart 1 of 
        part A for a fiscal year; or
            ``(B) submits a plan (or any amendment to a plan) that the 
        Secretary, after reasonable notice and opportunity for a 
        hearing, determines does not satisfy the requirements of such 
        subpart.
        ``(14) State.--The term `State' means each of the 50 States, 
    the District of Columbia, and the Commonwealth of Puerto Rico.
        ``(15) Tribally sanctioned educational authority.--The term 
    `tribally sanctioned educational authority' means--
            ``(A) any department or division of education operating 
        within the administrative structure of the duly constituted 
        governing body of an Indian tribe; and
            ``(B) any nonprofit institution or organization that is--
                ``(i) chartered by the governing body of an Indian 
            tribe to operate a school described in section 3112(a) or 
            otherwise to oversee the delivery of educational services 
            to members of the tribe; and
                ``(ii) approved by the Secretary for the purpose of 
            carrying out programs under subpart 1 of part A for 
            individuals served by a school described in section 
            3112(a).

``SEC. 3302. PARENTAL NOTIFICATION.

    ``(a) In General.--Each eligible entity using funds provided under 
this title to provide a language instruction educational program shall, 
not later than 30 days after the beginning of the school year, inform a 
parent or the parents of a limited English proficient child identified 
for participation in, or participating in, such program of--
        ``(1) the reasons for the identification of their child as 
    limited English proficient and in need of placement in a language 
    instruction educational program;
        ``(2) the child's level of English proficiency, how such level 
    was assessed, and the status of the child's academic achievement;
        ``(3) the method of instruction used in the program in which 
    their child is, or will be, participating, and the methods of 
    instruction used in other available programs, including how such 
    programs differ in content, instruction goals, and use of English 
    and a native language in instruction;
        ``(4) how the program in which their child is, or will be 
    participating will meet the educational strengths and needs of the 
    child;
        ``(5) how such program will specifically help their child learn 
    English, and meet age appropriate academic achievement standards 
    for grade promotion and graduation;
        ``(6) the specific exit requirements for such program, the 
    expected rate of transition from such program into classrooms that 
    are not tailored for limited English proficient children, and the 
    expected rate of graduation from secondary school for such program 
    if funds under this title are used for children in secondary 
    schools;
        ``(7) in the case of a child with a disability, how such 
    program meets the objectives of the individualized education 
    program of the child; and
        ``(8) information pertaining to parental rights that includes 
    written guidance--
            ``(A) detailing--
                ``(i) the right that parents have to have their child 
            immediately removed from such program upon their request; 
            and
                ``(ii) the options that parents have to decline to 
            enroll their child in such program or to choose another 
            program or method of instruction, if available; and
            ``(B) assisting parents in selecting among various programs 
        and methods of instruction, if more than one program or method 
        is offered by the eligible entity.
    ``(b) Separate Notification.--In addition to providing the 
information required to be provided under subsection (a), each eligible 
entity that is using funds provided under this title to provide a 
language instruction educational program, and that has failed to make 
progress on the annual measurable achievement objectives described in 
section 3122 for any fiscal year for which part A is in effect, shall 
separately inform a parent or the parents of a child identified for 
participation in such program, or participating in such program, of 
such failure not later than 30 days after such failure occurs.
    ``(c) Receipt of Information.--The information required to be 
provided under subsections (a) and (b) to a parent shall be provided in 
an understandable and uniform format and, to the extent practicable, in 
a language that the parent can understand.
    ``(d) Special Rule Applicable During School Year.--For a child who 
has not been identified for participation in a language instruction 
educational program prior to the beginning of the school year, the 
eligible entity shall carry out subsections (a) through (c) with 
respect to the parents of the child within 2 weeks of the child being 
placed in such a program.
    ``(e) Parental Participation.--
        ``(1) In General.--Each eligible entity using funds provided 
    under this title to provide a language instruction educational 
    program shall implement an effective means of outreach to parents 
    of limited English proficient children to inform such parents of 
    how they can--
            ``(A) be involved in the education of their children; and
            ``(B) be active participants in assisting their children--
                ``(i) to learn English;
                ``(ii) to achieve at high levels in core academic 
            subjects; and
                ``(iii) to meet the same challenging State academic 
            content and student academic achievement standards as all 
            children are expected to meet.
        ``(2) Receipt of recommendations.--The outreach described in 
    paragraph (1) shall include holding, and sending notice of 
    opportunities for, regular meetings for the purpose of formulating 
    and responding to recommendations from parents described in such 
    paragraph.
    ``(f) Basis for Admission or Exclusion.--A child shall not be 
admitted to, or excluded from, any federally assisted education program 
on the basis of a surname or language-minority status.

``SEC. 3303. NATIONAL CLEARINGHOUSE.

    ``The Secretary shall establish and support the operation of a 
National Clearinghouse for English Language Acquisition and Language 
Instruction Educational Programs, which shall collect, analyze, 
synthesize, and disseminate information about language instruction 
educational programs for limited English proficient children, 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 system for improving the operation and 
    effectiveness of federally funded language instruction educational 
    programs;
        ``(4) collect and disseminate information on--
            ``(A) educational research and processes related to the 
        education of limited English proficient children; and
            ``(B) accountability systems that monitor the academic 
        progress of limited English proficient children in language 
        instruction educational programs, including information on 
        academic content and English proficiency assessments for 
        language instruction educational programs; and
        ``(5) publish, on an annual basis, a list of grant recipients 
    under this title.

``SEC. 3304. REGULATIONS.

    ``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 the 
education of limited English proficient children.''.

                     TITLE IV--21ST CENTURY SCHOOLS

SEC. 401. 21ST CENTURY SCHOOLS.

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

                    ``TITLE IV--21ST CENTURY SCHOOLS

          ``PART A--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

``SEC. 4001. SHORT TITLE.

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

``SEC. 4002. PURPOSE.

    ``The purpose of this part is to support programs that prevent 
violence in and around schools; that prevent the illegal use of 
alcohol, tobacco, and drugs; that involve parents and communities; and 
that are coordinated with related Federal, State, school, and community 
efforts and resources to foster a safe and drug-free learning 
environment that supports student academic achievement, through the 
provision of Federal assistance to--
        ``(1) States for grants to local educational agencies and 
    consortia of such agencies to establish, operate, and improve local 
    programs of school drug and violence prevention and early 
    intervention;
        ``(2) States for grants to, and contracts with, community-based 
    organizations and public and private entities for programs of drug 
    and violence prevention and early intervention, including 
    community-wide drug and violence prevention planning and organizing 
    activities;
        ``(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-wide drug and 
    violence prevention planning and organizing activities for the 
    prevention of drug use and violence among students and youth.

``SEC. 4003. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated--
        ``(1) $650,000,000 for fiscal year 2002, and such sums as may 
    be necessary for each of the 5 succeeding fiscal years, for State 
    grants under subpart 1; and
        ``(2) such sums for fiscal year 2002, and for each of the 5 
    succeeding fiscal years, for national programs under subpart 2.

                       ``Subpart 1--State Grants

``SEC. 4111. RESERVATIONS AND ALLOTMENTS.

    ``(a) Reservations.--
        ``(1) In general.--From the amount made available under section 
    4003(1) to carry out this subpart for each fiscal year, the 
    Secretary--
            ``(A) shall reserve 1 percent or $4,750,000 (whichever is 
        greater) of such amount for grants to Guam, American Samoa, the 
        United States Virgin Islands, and the Commonwealth of the 
        Northern Mariana Islands, to be allotted in accordance with the 
        Secretary's determination of their respective needs and to 
        carry out programs described in this subpart;
            ``(B) shall reserve 1 percent or $4,750,000 (whichever is 
        greater) of such amount for the Secretary of the Interior to 
        carry out programs described in this subpart for Indian youth; 
        and
            ``(C) shall reserve 0.2 percent of such amount for Native 
        Hawaiians to be used under section 4117 to carry out programs 
        described in this subpart.
        ``(2) Other reservations.--From the amount made available under 
    section 4003(2) to carry out subpart 2 for each fiscal year, the 
    Secretary--
            ``(A) may reserve not more than $2,000,000 for the national 
        impact evaluation required by section 4122(a);
            ``(B) notwithstanding section 3 of the No Child Left Behind 
        Act of 2001, shall reserve an amount necessary to make 
        continuation grants to grantees under the Safe Schools/Healthy 
        Students initiative (under the same terms and conditions as 
        provided for in the grants involved).
    ``(b) State Allotments.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    Secretary shall, for each fiscal year, allot 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 the greater of--
            ``(A) one-half of 1 percent of the total amount allotted to 
        all the States under this subsection; or
            ``(B) the amount such State received for fiscal year 2001 
        under section 4111 as such section was in effect the day 
        preceding the date of enactment of the No Child Left Behind Act 
        of 2001.
        ``(3) Reallotment.--
            ``(A) Reallotment for failure to apply.--If any State does 
        not apply for an allotment under this subpart for a fiscal 
        year, the Secretary shall reallot the amount of the State's 
        allotment to the remaining States in accordance with this 
        section.
            ``(B) Reallotment of unused funds.--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) Definition.--In this section the term `State' means each 
    of the 50 States, the District of Columbia, and the Commonwealth of 
    Puerto Rico.
    ``(c) Limitation.--Amounts appropriated under section 4003(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 4003(1) for the fiscal year involved are at 
least 10 percent greater that the amounts appropriated under such 
section 4003(1) for the previous fiscal year.

``SEC. 4112. RESERVATION OF STATE FUNDS FOR SAFE AND DRUG-FREE SCHOOLS.

    ``(a) State Reservation for the Chief Executive Officer of a 
State.--
        ``(1) In general.--The chief executive officer of a State may 
    reserve not more than 20 percent of the total amount allocated to a 
    State under section 4111(b) for each fiscal year to award 
    competitive grants and contracts to local educational agencies, 
    community-based organizations (including community anti-drug 
    coalitions) other public entities and private organizations, and 
    consortia thereof. Such grants and contracts shall be used to carry 
    out the comprehensive State plan described in section 4113(a) 
    through programs or activities that complement and support 
    activities of local educational agencies described in section 
    4115(b). Such officer shall award grants based on--
            ``(A) the quality of the program or activity proposed; and
            ``(B) how the program or activity meets the principles of 
        effectiveness described in section 4115(a).
        ``(2) Priority.--In making such grants and contracts under this 
    section, a chief executive officer shall give priority to programs 
    and activities that prevent illegal drug use and violence for--
            ``(A) children and youth who are not normally served by 
        State educational agencies or local educational agencies; or
            ``(B) populations that need special services or additional 
        resources (such as youth in juvenile detention facilities, 
        runaway or homeless children and youth, pregnant and parenting 
        teenagers, and school dropouts).
        ``(3) Special consideration.--In awarding funds under paragraph 
    (1), a chief executive officer shall give special consideration to 
    grantees that pursue a comprehensive approach to drug and violence 
    prevention that includes providing and incorporating mental health 
    services related to drug and violence prevention in their program.
        ``(4) Peer review.--Grants or contracts awarded under this 
    section shall be subject to a peer review process.
        ``(5) Use of funds.--Grants and contracts under this section 
    shall be used to implement drug and violence prevention activities, 
    including--
            ``(A) activities that complement and support local 
        educational agency activities under section 4115, including 
        developing and implementing activities to prevent and reduce 
        violence associated with prejudice and intolerance;
            ``(B) dissemination of information about drug and violence 
        prevention; and
            ``(C) development and implementation of community-wide drug 
        and violence prevention planning and organizing.
        ``(6) Administrative costs.--The chief executive officer of a 
    State may use not more than 3 percent of the amount described in 
    paragraph (1) for the administrative costs incurred in carrying out 
    the duties of such officer under this section.
    ``(b) In State Distribution.--
        ``(1) In general.--A State educational agency shall distribute 
    not less than 93 percent of the amount made available to the State 
    under section 4111(b), less the amount reserved under subsection 
    (a) of this section, to its local educational agencies.
        ``(2) State administration costs.--
            ``(A) In general.--A State educational agency may use not 
        more than 3 percent of the amount made available to the State 
        under section 4111(b) for each fiscal year less the amount 
        reserved under subsection (a) of this section, for State 
        educational agency administrative costs, including the 
        implementation of the uniform management information and 
        reporting system as provided for under subsection (c)(3).
            ``(B) Additional amounts for the uniform management 
        information system.--In the case of fiscal year 2002, a State 
        educational agency may, in addition to amounts provided for in 
        subparagraph (A), use 1 percent of the amount made available to 
        the State educational agency under section 4111(b) for each 
        fiscal year less the amount reserved under subsection (a) of 
        this section, for implementation of the uniform management 
        information and reporting system as provided for under 
        subsection (c)(3).
    ``(c) State Activities.--
        ``(1) In general.--A State educational agency may use not more 
    than 5 percent of the amount made available to the State under 
    section 4111(b) for each fiscal year less the amount reserved under 
    subsection (a) of this section, for activities described in this 
    subsection.
        ``(2) Activities.--A State educational agency shall use the 
    amounts described in paragraph (1), either directly, or through 
    grants and contracts, to plan, develop, and implement capacity 
    building, technical assistance and training, evaluation, program 
    improvement services, and coordination activities for local 
    educational agencies, community-based organizations, and other 
    public and private entities. Such uses--
            ``(A) shall meet the principles of effectiveness described 
        in section 4115(a);
            ``(B) shall complement and support local uses of funds 
        under section 4115(b);
            ``(C) shall be in accordance with the purposes of this 
        part; and
            ``(D) may include, among others activities--
                ``(i) identification, development, evaluation, and 
            dissemination of drug and violence prevention strategies, 
            programs, activities, and other information;
                ``(ii) training, technical assistance, and 
            demonstration projects to address violence that is 
            associated with prejudice and intolerance; and
                ``(iii) financial assistance to enhance drug and 
            violence prevention resources available in areas that serve 
            large numbers of low-income children, are sparsely 
            populated, or have other special needs.
        ``(3) Uniform management information and reporting system.--
            ``(A) Information and statistics.--A State shall establish 
        a uniform management information and reporting system.
            ``(B) Uses of funds.--A State may use funds described in 
        subparagraphs (A) and (B) of subsection (b)(2), either directly 
        or through grants and contracts, to implement the uniform 
        management information and reporting system described in 
        subparagraph (A), for the collection of information on--
                ``(i) truancy rates;
                ``(ii) the frequency, seriousness, and incidence of 
            violence and drug-related offenses resulting in suspensions 
            and expulsions in elementary schools and secondary schools 
            in the State;
                ``(iii) the types of curricula, programs, and services 
            provided by the chief executive officer, the State 
            educational agency, local educational agencies, and other 
            recipients of funds under this subpart; and
                ``(iv) 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.
            ``(C) Compilation of statistics.--In compiling the 
        statistics required for the uniform management information and 
        reporting system, the offenses described in subparagraph 
        (B)(ii) shall be defined pursuant to the State's criminal code, 
        but shall not identify victims of crimes or persons accused of 
        crimes. The collected data shall include incident reports by 
        school officials, anonymous student surveys, and anonymous 
        teacher surveys.
            ``(D) Reporting.--The information described under 
        subparagraph (B) shall be reported to the public and the data 
        referenced in clauses (i) and (ii) of such subparagraph shall 
        be reported to the State on a school-by-school basis.
            ``(E) Limitation.--Nothing in this subsection shall be 
        construed to authorize the Secretary to require particular 
        policies, procedures, or practices with respect to crimes 
        committed on school property or school security.

``SEC. 4113. STATE APPLICATION.

    ``(a) In General.--In order to receive an allotment under section 
4111(b) 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 of the 
    State to provide safe, orderly, and drug-free schools and 
    communities through programs and activities that complement and 
    support activities of local educational agencies under section 
    4115(b), that comply with the principles of effectiveness under 
    section 4115(a), and that otherwise are in accordance with the 
    purpose of this part;
        ``(2) describes how activities funded under this subpart will 
    foster a safe and drug-free learning environment that supports 
    academic achievement;
        ``(3) provides an assurance that the application was developed 
    in consultation and coordination with appropriate State officials 
    and others, including the chief executive officer, the chief State 
    school 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) describes 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 other programs, as appropriate, in accordance with the 
    provisions in section 9306;
        ``(5) provides an assurance that funds reserved under section 
    4112(a) will not duplicate the efforts of the State educational 
    agency and local educational agencies with regard to the provision 
    of school-based drug and violence prevention activities and that 
    those funds will be used to serve populations not normally served 
    by the State educational agencies and local educational agencies 
    and populations that need special services, such as school 
    dropouts, suspended and expelled students, youth in detention 
    centers, runaway or homeless children and youth, and pregnant and 
    parenting youth;
        ``(6) provides an assurance that the State will cooperate with, 
    and assist, the Secretary in conducting data collection as required 
    by section 4122;
        ``(7) provides an assurance that the local educational agencies 
    in the State will comply with the provisions of section 9501 
    pertaining to the participation of private school children and 
    teachers in the programs and activities under this subpart;
        ``(8) provides an assurance that funds under this subpart will 
    be used to increase the level of State, local, and other non-
    Federal funds that would, in the absence of funds under this 
    subpart, be made available for programs and activities authorized 
    under this subpart, and in no case supplant such State, local, and 
    other non-Federal funds;
        ``(9) contains the results of a needs assessment conducted by 
    the State for drug and violence prevention programs, which shall be 
    based on ongoing State evaluation activities, including data on--
            ``(A) the incidence and prevalence of illegal drug use and 
        violence among youth in schools and communities, including the 
        age of onset, the perception of health risks, and the 
        perception of social disapproval among such youth;
            ``(B) the prevalence of risk factors, including high or 
        increasing rates of reported cases of child abuse or domestic 
        violence;
            ``(C) the prevalence of protective factors, buffers, or 
        assets; and
            ``(D) other variables in the school and community 
        identified through scientifically based research;
        ``(10) provides a statement of the State's performance measures 
    for drug and violence prevention programs and activities to be 
    funded under this subpart that will be focused on student behavior 
    and attitudes, derived from the needs assessment described in 
    paragraph (9), and be developed in consultation between the State 
    and local officials, and that consist of--
            ``(A) performance indicators for drug and violence 
        prevention programs and activities; and
            ``(B) levels of performance for each performance indicator;
        ``(11) describes the procedures the State will use for 
    assessing and publicly reporting progress toward meeting the 
    performance measures described in paragraph (10);
        ``(12) provides an assurance that the State application will be 
    available for public review after submission of the application;
        ``(13) describes the special outreach activities that will be 
    carried out by the State educational agency and the chief executive 
    officer of the State to maximize the participation of community-
    based organizations of demonstrated effectiveness that provide 
    services such as mentoring programs in low-income communities;
        ``(14) describes how funds will be used by the State 
    educational agency and the chief executive officer of the State to 
    support, develop, and implement community-wide comprehensive drug 
    and violence prevention planning and organizing activities;
        ``(15) describes how input from parents will be sought 
    regarding the use of funds by the State educational agency and the 
    chief executive officer of the State;
        ``(16) describes how the State educational agency will review 
    applications from local educational agencies, including how the 
    agency will receive input from parents in such review;
        ``(17) describes how the State educational agency will monitor 
    the implementation of activities under this subpart, and provide 
    technical assistance for local educational agencies, community-
    based organizations, other public entities, and private 
    organizations;
        ``(18) describes how the chief executive officer of the State 
    will award funds under section 4112(a) and implement a plan for 
    monitoring the performance of, and providing technical assistance 
    to, recipients of such funds; and
        ``(19) includes any other information the Secretary may 
    require.
    ``(b) Interim Application.--
        ``(1) Authority.--Notwithstanding any other provision 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 
    is consistent with the requirements of this section and contains 
    such information as the Secretary may specify in regulations.
        ``(2) Purpose.--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.
        ``(3) Exception.--A State may not receive a grant under this 
    subpart for a fiscal year after fiscal year 2002 unless the 
    Secretary has approved such State's application and comprehensive 
    plan as described in subsection (a).
    ``(c) Approval Process.--
        ``(1) Deemed approval.--An application submitted by a State 
    pursuant to this section shall undergo peer review by the Secretary 
    and shall be deemed to be approved by the Secretary unless the 
    Secretary makes a written determination, prior to the expiration of 
    the 120-day period beginning on the date on which the Secretary 
    received the application, that the application is not in compliance 
    with this subpart.
        ``(2) Disapproval.--The Secretary shall not finally disapprove 
    the application, except after giving the State educational agency 
    and the chief executive officer of the State notice and an 
    opportunity for a hearing.
        ``(3) Notification.--If the Secretary finds that the 
    application is not in compliance, in whole or in part, with this 
    subpart, the Secretary shall--
            ``(A) give the State educational agency and the chief 
        executive officer of the State notice and an opportunity for a 
        hearing; and
            ``(B) notify the State educational agency and the chief 
        executive officer of the State of the finding of noncompliance, 
        and in such notification, shall--
                ``(i) cite the specific provisions in the application 
            that are not in compliance; and
                ``(ii) request additional information, only as to the 
            noncompliant provisions, needed to make the application 
            compliant.
        ``(4) Response.--If the State educational agency and the chief 
    executive officer of the State respond to the Secretary's 
    notification described in paragraph (3)(B) during the 45-day period 
    beginning on the date on which the agency received the 
    notification, and resubmit the application with the requested 
    information described in paragraph (3)(B)(ii), the Secretary shall 
    approve or disapprove such application prior to the later of--
            ``(A) the expiration of the 45-day period beginning on the 
        date on which the application is resubmitted; or
            ``(B) the expiration of the 120-day period described in 
        paragraph (1).
        ``(5) Failure to respond.--If the State educational agency and 
    the chief executive officer of the State do not respond to the 
    Secretary's notification described in paragraph (3)(B) during the 
    45-day period beginning on the date on which the agency received 
    the notification, such application shall be deemed to be 
    disapproved.

``SEC. 4114. LOCAL EDUCATIONAL AGENCY PROGRAM.

    ``(a) In General.--
        ``(1) Funds to local educational agencies.--A State shall 
    provide the amount made available to the State under this subpart, 
    less the amounts reserved under section 4112 to local educational 
    agencies for drug and violence prevention and education programs 
    and activities as follows:
            ``(A) 60 percent of such amount based on the relative 
        amount such agencies received under part A of title I for the 
        preceding fiscal year.
            ``(B) 40 percent of such amount based on the relative 
        enrollments in public and private nonprofit elementary schools 
        and secondary schools within the boundaries of such agencies.
        ``(2) Administrative costs.--Of the amount received under 
    paragraph (1), a local educational agency may use not more than 2 
    percent for the administrative costs of carrying out its 
    responsibilities under this subpart.
        ``(3) Return of funds to state; reallocation.--
            ``(A) Return.--Except as provided in subparagraph (B), upon 
        the expiration of the 1-year period beginning on the date on 
        which a local educational agency receives its allocation under 
        this subpart--
                ``(i) such agency shall return to the State educational 
            agency any funds from such allocation that remain 
            unobligated; and
                ``(ii) the State educational agency shall reallocate 
            any such amount to local educational agencies that have 
            submitted plans for using such amount for programs or 
            activities on a timely basis.
            ``(B) Carryover.--In any fiscal year, a local educational 
        agency, may retain for obligation in the succeeding fiscal 
        year--
                ``(i) an amount equal to not more than 25 percent of 
            the allocation it received under this subpart for such 
            fiscal year; or
                ``(ii) upon a demonstration of good cause by such 
            agency and approval by the State educational agency, an 
            amount that exceeds 25 percent of such allocation.
            ``(C) Reallocation.--If a local educational agency chooses 
        not to apply to receive the amount allocated to such agency 
        under this subsection, or if such agency's application under 
        subsection (d) 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.
    ``(b) Eligibility.--To be eligible to receive a subgrant under this 
subpart, a local educational agency desiring a subgrant shall submit an 
application to the State educational agency in accordance with 
subsection (d). Such an application shall be amended, as necessary, to 
reflect changes in the activities and programs of the local educational 
agency.
    ``(c) Development.--
        ``(1) Consultation.--
            ``(A) In general.--A local educational agency shall develop 
        its application through timely and meaningful consultation with 
        State and local government representatives, representatives of 
        schools to be served (including private schools), teachers and 
        other staff, parents, students, community-based organizations, 
        and others with relevant and demonstrated expertise in drug and 
        violence prevention activities (such as medical, mental health, 
        and law enforcement professionals).
            ``(B) Continued consultation.--On an ongoing basis, the 
        local educational agency shall consult with such 
        representatives and organizations in order to seek advice 
        regarding how best to coordinate such agency's activities under 
        this subpart with other related strategies, programs, and 
        activities being conducted in the community.
        ``(2) Design and development.--To ensure timely and meaningful 
    consultation under paragraph (1), a local educational agency at the 
    initial stages of design and development of a program or activity 
    shall consult, in accordance with this subsection, with appropriate 
    entities and persons on issues regarding the design and development 
    of the program or activity, including efforts to meet the 
    principles of effectiveness described in section 4115(a).
    ``(d) Contents of Applications.--An application submitted by a 
local educational agency under this section shall contain--
        ``(1) an assurance that the activities or programs to be funded 
    comply with the principles of effectiveness described in section 
    4115(a) and foster a safe and drug-free learning environment that 
    supports academic achievement;
        ``(2) a detailed explanation of the local educational agency's 
    comprehensive plan for drug and violence prevention, including a 
    description of--
            ``(A) how the plan will be coordinated with programs under 
        this Act, and other Federal, State, and local programs for drug 
        and violence prevention, in accordance with section 9306;
            ``(B) the local educational agency's performance measures 
        for drug and violence prevention programs and activities, that 
        shall consist of--
                ``(i) performance indicators for drug and violence 
            prevention programs and activities; including--

                    ``(I) specific reductions in the prevalence of 
                identified risk factors; and
                    ``(II) specific increases in the prevalence of 
                protective factors, buffers, or assets if any have been 
                identified; and

                ``(ii) levels of performance for each performance 
            indicator;
            ``(C) how such agency will assess and publicly report 
        progress toward attaining its performance measures;
            ``(D) the drug and violence prevention activity or program 
        to be funded, including how the activity or program will meet 
        the principles of effectiveness described in section 4115(a), 
        and the means of evaluating such activity or program; and
            ``(E) how the services will be targeted to schools and 
        students with the greatest need;
        ``(3) a description for how the results of the evaluations of 
    the effectiveness of the program will be used to refine, improve, 
    and strengthen the program;
        ``(4) an assurance that funds under this subpart will be used 
    to increase the level of State, local, and other non-Federal funds 
    that would, in the absence of funds under this subpart, be made 
    available for programs and activities authorized under this 
    subpart, and in no case supplant such State, local, and other non-
    Federal funds;
        ``(5) a description of the mechanisms used to provide effective 
    notice to the community of an intention to submit an application 
    under this subpart;
        ``(6) an assurance that drug and violence prevention programs 
    supported under this subpart convey a clear and consistent message 
    that acts of violence and the illegal use of drugs are wrong and 
    harmful;
        ``(7) 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 school discipline policies 
        that prohibit disorderly conduct, the illegal possession of 
        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;
            ``(D) a crisis management plan for responding to violent or 
        traumatic incidents on school grounds; and
            ``(E) a code of conduct policy for all students that 
        clearly states the responsibilities of students, teachers, and 
        administrators in maintaining a classroom environment that--
                ``(i) allows a teacher to communicate effectively with 
            all students in the class;
                ``(ii) allows all students in the class to learn;
                ``(iii) has consequences that are fair, and 
            developmentally appropriate;
                ``(iv) considers the student and the circumstances of 
            the situation; and
                ``(v) is enforced accordingly;
        ``(8) an assurance that the application and any waiver request 
    under section 4115(a)(3) will be available for public review after 
    submission of the application; and
        ``(9) such other assurances, goals, and objectives identified 
    through scientifically based research that the State may reasonably 
    require in accordance with the purpose of this part.
    ``(e) 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.--In determining whether to approve the 
    application of a local educational agency under this section, a 
    State educational agency shall consider the quality of application 
    and the extent to which the application meets the principles of 
    effectiveness described in section 4115(a).
    ``(f) Approval Process.--
        ``(1) Deemed approval.--An application submitted by a local 
    educational agency pursuant to this section shall be deemed to be 
    approved by the State educational agency unless the State 
    educational agency makes a written determination, prior to the 
    expiration of the 120-day period beginning on the date on which the 
    State educational agency received the application, that the 
    application is not in compliance with this subpart.
        ``(2) Disapproval.--The State educational agency shall not 
    finally disapprove the application, except after giving the local 
    educational agency notice and opportunity for a hearing.
        ``(3) Notification.--If the State educational agency finds that 
    the application is not in compliance, in whole or in part, with 
    this subpart, the State educational agency shall--
            ``(A) give the local educational agency notice and an 
        opportunity for a hearing; and
            ``(B) notify the local educational agency of the finding of 
        noncompliance, and in such notification, shall--
                ``(i) cite the specific provisions in the application 
            that are not in compliance; and
                ``(ii) request additional information, only as to the 
            noncompliant provisions, needed to make the application 
            compliant.
        ``(4) Response.--If the local educational agency responds to 
    the State educational agency's notification described in paragraph 
    (3)(B) during the 45-day period beginning on the date on which the 
    agency received the notification, and resubmits the application 
    with the requested information described in paragraph (3)(B)(ii), 
    the State educational agency shall approve or disapprove such 
    application prior to the later of--
            ``(A) the expiration of the 45-day period beginning on the 
        date on which the application is resubmitted; or
            ``(B) the expiration of the 120-day period described in 
        paragraph (1).
        ``(5) Failure to respond.--If the local educational agency does 
    not respond to the State educational agency's notification 
    described in paragraph (3)(B) during the 45-day period beginning on 
    the date on which the agency received the notification, such 
    application shall be deemed to be disapproved.

``SEC. 4115. AUTHORIZED ACTIVITIES.

    ``(a) Principles of Effectiveness.--
        ``(1) In general.--For a program or activity developed pursuant 
    to this subpart to meet the principles of effectiveness, such 
    program or activity shall--
            ``(A) be based on an assessment of objective data regarding 
        the incidence of violence and illegal drug use in the 
        elementary schools and secondary schools and communities to be 
        served, including an objective analysis of the current 
        conditions and consequences regarding violence and illegal drug 
        use, including delinquency and serious discipline problems, 
        among students who attend such schools (including private 
        school students who participate in the drug and violence 
        prevention program) that is based on ongoing local assessment 
        or evaluation activities;
            ``(B) be based on an established set of performance 
        measures aimed at ensuring that the elementary schools and 
        secondary schools and communities to be served by the program 
        have a safe, orderly, and drug-free learning environment;
            ``(C) be based on scientifically based research that 
        provides evidence that the program to be used will reduce 
        violence and illegal drug use;
            ``(D) be based on an analysis of the 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; protective factors, buffers, 
        assets; or other variables in schools and communities in the 
        State identified through scientifically based research; and
            ``(E) include meaningful and ongoing consultation with and 
        input from parents in the development of the application and 
        administration of the program or activity.
        ``(2) Periodic evaluation.--
            ``(A) Requirement.--The program or activity shall undergo a 
        periodic evaluation to assess its progress toward reducing 
        violence and illegal drug use in schools to be served based on 
        performance measures described in section 4114(d)(2)(B).
            ``(B) Use of results.--The results shall be used to refine, 
        improve, and strengthen the program, and to refine the 
        performance measures, and shall also be made available to the 
        public upon request, with public notice of such availability 
        provided.
        ``(3) Waiver.--A local educational agency may apply to the 
    State for a waiver of the requirement of subsection (a)(1)(C) to 
    allow innovative activities or programs that demonstrate 
    substantial likelihood of success.
    ``(b) Local Educational Agency Activities.--
        ``(1) Program requirements.--A local educational agency shall 
    use funds made available under section 4114 to develop, implement, 
    and evaluate comprehensive programs and activities, which are 
    coordinated with other school and community-based services and 
    programs, that shall--
            ``(A) foster a safe and drug-free learning environment that 
        supports academic achievement;
            ``(B) be consistent with the principles of effectiveness 
        described in subsection (a)(1);
            ``(C) be designed to--
                ``(i) prevent or reduce violence; the use, possession 
            and distribution of illegal drugs; and delinquency; and
                ``(ii) create a well disciplined environment conducive 
            to learning, which includes consultation between teachers, 
            principals, and other school personnel to identify early 
            warning signs of drug use and violence and to provide 
            behavioral interventions as part of classroom management 
            efforts; and
            ``(D) include activities to--
                ``(i) promote the involvement of parents in the 
            activity or program;
                ``(ii) promote coordination with community groups and 
            coalitions, and government agencies; and
                ``(iii) distribute information about the local 
            educational agency's needs, goals, and programs under this 
            subpart.
        ``(2) Authorized activities.--Each local educational agency, or 
    consortium of such agencies, that receives a subgrant under this 
    subpart may use such funds to carry out activities that comply with 
    the principles of effectiveness described in subsection (a), such 
    as the following:
            ``(A) Age appropriate and developmentally based activities 
        that--
                ``(i) address the consequences of violence and the 
            illegal use of drugs, as appropriate;
                ``(ii) promote a sense of individual responsibility;
                ``(iii) teach students that most people do not 
            illegally use drugs;
                ``(iv) teach students to recognize social and peer 
            pressure to use drugs illegally and the skills for 
            resisting illegal drug use;
                ``(v) teach students about the dangers of emerging 
            drugs;
                ``(vi) engage students in the learning process; and
                ``(vii) incorporate activities in secondary schools 
            that reinforce prevention activities implemented in 
            elementary schools.
            ``(B) Activities that involve families, community sectors 
        (which may include appropriately trained seniors), and a 
        variety of drug and violence prevention providers in setting 
        clear expectations against violence and illegal use of drugs 
        and appropriate consequences for violence and illegal use of 
        drugs.
            ``(C) Dissemination of drug and violence prevention 
        information to schools and the community.
            ``(D) Professional development and training for, and 
        involvement of, school personnel, pupil services personnel, 
        parents, and interested community members in prevention, 
        education, early identification and intervention, mentoring, or 
        rehabilitation referral, as related to drug and violence 
        prevention.
            ``(E) Drug and violence prevention activities that may 
        include the following:
                ``(i) Community-wide planning and organizing activities 
            to reduce violence and illegal drug use, which may include 
            gang activity prevention.
                ``(ii) Acquiring and installing metal detectors, 
            electronic locks, surveillance cameras, or other related 
            equipment and technologies.
                ``(iii) Reporting criminal offenses committed on school 
            property.
                ``(iv) Developing and implementing comprehensive school 
            security plans or obtaining technical assistance concerning 
            such plans, which may include obtaining a security 
            assessment or assistance from the School Security and 
            Technology Resource Center at the Sandia National 
            Laboratory located in Albuquerque, New Mexico.
                ``(v) Supporting safe zones of passage activities that 
            ensure that students travel safely to and from school, 
            which may include bicycle and pedestrian safety programs.
                ``(vi) The hiring and mandatory training, based on 
            scientific research, of school security personnel 
            (including school resource officers) who interact with 
            students in support of youth drug and violence prevention 
            activities under this part that are implemented in the 
            school.
                ``(vii) Expanded and improved school-based mental 
            health services related to illegal drug use and violence, 
            including early identification of violence and illegal drug 
            use, assessment, and direct or group counseling services 
            provided to students, parents, families, and school 
            personnel by qualified school-based mental health service 
            providers.
                ``(viii) Conflict resolution programs, including peer 
            mediation programs that educate and train peer mediators 
            and a designated faculty supervisor, and youth anti-crime 
            and anti-drug councils and activities.
                ``(ix) Alternative education programs or services for 
            violent or drug abusing students that reduce the need for 
            suspension or expulsion or that serve students who have 
            been suspended or expelled from the regular educational 
            settings, including programs or services to assist students 
            to make continued progress toward meeting the State 
            academic achievement standards and to reenter the regular 
            education setting.
                ``(x) Counseling, mentoring, referral services, and 
            other student assistance practices and programs, including 
            assistance provided by qualified school-based mental health 
            services providers and the training of teachers by school-
            based mental health services providers in appropriate 
            identification and intervention techniques for students at 
            risk of violent behavior and illegal use of drugs.
                ``(xi) Programs that encourage students to seek advice 
            from, and to confide in, a trusted adult regarding concerns 
            about violence and illegal drug use.
                ``(xii) Drug and violence prevention activities 
            designed to reduce truancy.
                ``(xiii) Age-appropriate, developmentally-based 
            violence prevention and education programs that address 
            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.
                ``(xiv) Consistent with the fourth amendment to the 
            Constitution of the United States, the testing of a student 
            for illegal drug use or the inspecting of a student's 
            locker for weapons or illegal drugs or drug paraphernalia, 
            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.
                ``(xv) Emergency intervention services following 
            traumatic crisis events, such as a shooting, major 
            accident, or a drug-related incident that have disrupted 
            the learning environment.
                ``(xvi) Establishing or implementing a system for 
            transferring suspension and expulsion records, consistent 
            with section 444 of the General Education Provisions Act 
            (20 U.S.C. 1232g), by a local educational agency to any 
            public or private elementary school or secondary school.
                ``(xvii) Developing and implementing character 
            education programs, as a component of drug and violence 
            prevention programs, that take into account the views of 
            parents of the students for whom the program is intended 
            and such students, such as a program described in subpart 3 
            of part D of title V.
                ``(xviii) Establishing and maintaining a school safety 
            hotline.
                ``(xix) Community service, including community service 
            performed by expelled students, and service-learning 
            projects.
                ``(xx) Conducting 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 fitness--

                    ``(I) to be responsible for the safety or well-
                being of children;
                    ``(II) to serve in the particular capacity in which 
                the employee or prospective employee is or will be 
                employed; or
                    ``(III) to otherwise be employed by the local 
                educational agency.

                ``(xxi) Programs to train school personnel to identify 
            warning signs of youth suicide and to create an action plan 
            to help youth at risk of suicide.
                ``(xxii) Programs that respond to the needs of students 
            who are faced with domestic violence or child abuse.
            ``(F) The evaluation of any of the activities authorized 
        under this subsection and the collection of objective data used 
        to assess program needs, program implementation, or program 
        success in achieving program goals and objectives.
    ``(c) Limitation.--
        ``(1) In general.--Except as provided in paragraph (2), not 
    more than 40 percent of the funds available to a local educational 
    agency under this subpart may be used to carry out the activities 
    described in clauses (ii) through (vi) of subsection (b)(2)(E), of 
    which not more than 50 percent of such amount may be used to carry 
    out the activities described in clauses (ii) through (v) of such 
    subsection.
        ``(2) Exception.--A local educational agency may use funds 
    under this subpart for activities described in clauses (ii) through 
    (v) of subsection (b)(2)(E) only if funding for these 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 subpart by any local 
educational agency or school for the establishment or implementation of 
a school uniform policy if 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. 4116. REPORTING.

    ``(a) State Report.--
        ``(1) In general.--By December 1, 2003, 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 4112(a)(1) and section 4112(c) and local 
        educational agency programs under section 4115(b), as well as 
        an assessment of their effectiveness;
            ``(B) on the State's progress toward attaining its 
        performance measures for drug and violence prevention under 
        section 4113(a)(10); 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.
    ``(b) 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 (a), 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 (a), 
    the Secretary shall provide to the State educational agency all of 
    the necessary documentation required for compliance with this 
    section.

``SEC. 4117. PROGRAMS FOR NATIVE HAWAIIANS.

    ``(a) General Authority.--From the funds made available pursuant to 
section 4111(a)(1)(C) 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 for 
the benefit of Native Hawaiians to plan, conduct, and administer 
programs, or portions thereof, that are authorized by and consistent 
with the provisions of this subpart.
    ``(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 4003(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. 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 training of school personnel, parents, and 
    members of the community for drug and violence prevention 
    activities based on State and local needs;
        ``(2) the development, demonstration, scientifically based 
    evaluation, and dissemination of innovative and high quality drug 
    and violence prevention programs and activities, based on State and 
    local needs, which may include--
            ``(A) 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, reduce the need for repeat 
        suspensions and expulsions, enable students to meet challenging 
        State academic standards, and enable students to return to the 
        regular classroom as soon as possible;
            ``(B) community service and service-learning projects, 
        designed to rebuild safe and healthy neighborhoods and increase 
        students' sense of individual responsibility;
            ``(C) video-based projects developed by noncommercial 
        telecommunications entities that provide young people with 
        models for conflict resolution and responsible decisionmaking; 
        and
            ``(D) child abuse education and prevention programs for 
        elementary and secondary students;
        ``(3) the provision of information on drug abuse education and 
    prevention to the Secretary of Health and Human Services for 
    dissemination;
        ``(4) the provision of information on violence prevention and 
    education and school safety to the Department of Justice for 
    dissemination;
        ``(5) technical assistance to chief executive officers, State 
    agencies, local educational agencies, and other recipients of 
    funding under this part to build capacity to develop and implement 
    high-quality, effective drug and violence prevention programs 
    consistent with the principles of effectiveness in section 4115(a);
        ``(6) assistance to school systems that have particularly 
    severe drug and violence problems, including hiring drug prevention 
    and school safety coordinators, or assistance to support 
    appropriate response efforts to crisis situations;
        ``(7) 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;
        ``(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; and
        ``(9) other activities in accordance with the purpose of this 
    part, based on State and local needs.
    ``(b) Peer Review.--The Secretary shall use a peer review process 
in reviewing applications for funds under this section.

``SEC. 4122. IMPACT EVALUATION.

    ``(a) Biennial Evaluation.--The Secretary, in consultation with the 
Safe and Drug-Free Schools and Communities Advisory Committee described 
in section 4124, 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 and illegal drug use in schools. 
The evaluation shall report on whether community and local educational 
agency programs funded under this subpart--
        ``(1) comply with the principles of effectiveness described in 
    section 4115(a);
        ``(2) have appreciably reduced the level of illegal drug, 
    alcohol, and tobacco use, and school violence and the illegal 
    presence of weapons at schools; and
        ``(3) have conducted effective parent involvement and training 
    programs.
    ``(b) Data Collection.--The National Center for Education 
Statistics shall collect data, that is subject to independent review, 
to determine the incidence and prevalence of illegal drug use and 
violence in elementary schools and secondary schools in the States. The 
collected data shall include incident reports by schools officials, 
anonymous student surveys, and anonymous teacher surveys.
    ``(c) 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 
subsection (a) together with the data collected under subsection (b) 
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 and violence in elementary schools and 
secondary schools in the States. The Secretary shall include data 
submitted by the States pursuant to subsection 4116(a).

``SEC. 4123. HATE CRIME PREVENTION.

    ``(a) Grant Authorization.--From funds made available to carry out 
this subpart under section 4003(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) Application.--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 purpose 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, and 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 Congress a report 
every 2 years that shall contain a detailed statement regarding grants 
and awards, activities of grant recipients, and an evaluation of 
programs established under this section.

``SEC. 4124. 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 
    4003(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, chief executive officer's, and national 
    programs under this part.
        ``(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 
        purpose of this part and that are undertaken in consultation 
        with the Advisory Committee.

``SEC. 4125. NATIONAL COORDINATOR PROGRAM.

    ``(a) In General.--From funds made available to carry out this 
subpart under section 4003(2), the Secretary may 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. 4126. COMMUNITY SERVICE GRANT PROGRAM.

    ``(a) In General.--From funds made available to carry out this 
subpart under section 4003(2), the Secretary may make grants to States 
to carry out programs under which students expelled or suspended from 
school are required to perform community service.
    ``(b) Allocation.--From the amount described in subsection (a), 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.
    ``(c) 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.
    ``(d) 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 (b).
    ``(e) Definition.--In this section, the term `State' means each of 
the 50 States, the District of Columbia, and the Commonwealth of Puerto 
Rico.

``SEC. 4127. SCHOOL SECURITY TECHNOLOGY AND RESOURCE CENTER.

    ``(a) Center.--From funds made available to carry out this subpart 
under section 4003(2), the Secretary, the Attorney General, and the 
Secretary of Energy may 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' (hereafter in this section `the 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.

``SEC. 4128. NATIONAL CENTER FOR SCHOOL AND YOUTH SAFETY.

    ``(a) Establishment.--From funds made available to carry out this 
subpart under section 4003(2), the Secretary of Education and the 
Attorney General may 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.

``SEC. 4129. GRANTS TO REDUCE ALCOHOL ABUSE.

    ``(a) In General.--The Secretary, in consultation with the 
Administrator of the Substance Abuse and Mental Health Services 
Administration, may award grants from funds made available to carry out 
this subpart under section 4003(2), 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 one 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 out 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) Reservations.--
        ``(1) SAMHSA.--The Secretary may reserve 20 percent of any 
    amount used to carry out this section 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.
        ``(2) Low-income and rural areas.--The Secretary may reserve 25 
    percent of any amount used to carry out this section to award 
    grants to low-income and rural local educational agencies.

``SEC. 4130. MENTORING PROGRAMS.

    ``(a) Purpose; Definitions.--
        ``(1) Purpose.--The purpose of this section is to make 
    assistance available to promote mentoring programs for children 
    with greatest need--
            ``(A) to assist such children in receiving support and 
        guidance from a mentor;
            ``(B) to improve the academic achievement of such children;
            ``(C) to improve interpersonal relationships between such 
        children and their peers, teachers, other adults, and family 
        members;
            ``(D) to reduce the dropout rate of such children; and
            ``(E) to reduce juvenile delinquency and involvement in 
        gangs by such children.
        ``(2) Definitions.--In this part:
            ``(A) Child with greatest need.--The term `child with 
        greatest need' means a child who is at risk of educational 
        failure, dropping out of school, or involvement in criminal or 
        delinquent activities, or who lacks strong positive role 
        models.
            ``(B) Eligible entity.--The term `eligible entity' means--
                ``(i) a local educational agency;
                ``(ii) a nonprofit, community-based organization; or
                ``(iii) a partnership between a local educational 
            agency and a nonprofit, community-based organization.
            ``(C) Mentor.--The term `mentor' means a responsible adult, 
        a postsecondary school student, or a secondary school student 
        who works with a child--
                ``(i) to provide a positive role model for the child;
                ``(ii) to establish a supportive relationship with the 
            child; and
                ``(iii) 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.
            ``(D) State.--The term `State' means each of the several 
        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.
    ``(b) Grant Program.--
        ``(1) In general.--The Secretary may award grants from funds 
    made available to carry out this subpart under section 4003(2) to 
    eligible entities to assist such entities in establishing and 
    supporting mentoring programs and activities for children with 
    greatest need that--
            ``(A) are designed to link such children (particularly 
        children living in rural areas, high-crime areas, or troubled 
        home environments, or children experiencing educational 
        failure) with mentors who--
                ``(i) have received training and support in mentoring;
                ``(ii) have been screened using appropriate reference 
            checks, child and domestic abuse record checks, and 
            criminal background checks; and
                ``(iii) are interested in working with children with 
            greatest need; and
            ``(B) are intended to achieve one or more of the following 
        goals with respect to children with greatest need:
                ``(i) Provide general guidance.
                ``(ii) Promote personal and social responsibility.
                ``(iii) Increase participation in, and enhance the 
            ability to benefit from, elementary and secondary 
            education.
                ``(iv) Discourage illegal use of drugs and alcohol, 
            violence, use of dangerous weapons, promiscuous behavior, 
            and other criminal, harmful, or potentially harmful 
            activity.
                ``(v) Encourage participation in community service and 
            community activities.
                ``(vi) Encourage setting goals and planning for the 
            future, including encouragement of graduation from 
            secondary school and planning for postsecondary education 
            or training.
                ``(viii) Discourage involvement in gangs.
        ``(2) Use of funds.--
            ``(A) In general.--Each eligible entity awarded a grant 
        under this subsection shall use the grant funds for activities 
        that establish or implement a mentoring program, that may 
        include--
                ``(i) hiring of mentoring coordinators and support 
            staff;
                ``(ii) providing for the professional development of 
            mentoring coordinators and support staff;
                ``(iii) recruitment, screening, and training of 
            mentors;
                ``(iv) reimbursement to schools, if appropriate, for 
            the use of school materials or supplies in carrying out the 
            mentoring program;
                ``(v) dissemination of outreach materials;
                ``(vi) evaluation of the mentoring program using 
            scientifically based methods; and
                ``(vii) such other activities as the Secretary may 
            reasonably prescribe by rule.
            ``(B) Prohibited uses.--Notwithstanding subparagraph (A), 
        an eligible entity awarded a grant under this section may not 
        use the grant funds--
                ``(i) to directly compensate mentors;
                ``(ii) to obtain educational or other materials or 
            equipment that would otherwise be used in the ordinary 
            course of the eligible entity's operations;
                ``(iii) to support litigation of any kind; or
                ``(iv) for any other purpose reasonably prohibited by 
            the Secretary by rule.
        ``(3) Availability of funds.--Funds made available through a 
    grant under this section shall be available for obligation for a 
    period not to exceed 3 years.
        ``(4) Application.--Each eligible entity seeking a grant under 
    this section shall submit to the Secretary an application that 
    includes--
            ``(A) a description of the plan for the mentoring program 
        the eligible entity proposes to carry out with such grant;
            ``(B) information on the children expected to be served by 
        the mentoring program for which such grant is sought;
            ``(C) a description of the mechanism the eligible entity 
        will use to match children with mentors based on the needs of 
        the children;
            ``(D) an assurance that no mentor will be assigned to 
        mentor so many children that the assignment will undermine the 
        mentor's ability to be an effective mentor or the mentor's 
        ability to establish a close relationship (a one-to-one 
        relationship, where practicable) with each mentored child;
            ``(E) an assurance that the mentoring program will provide 
        children with a variety of experiences and support, including--
                ``(i) emotional support;
                ``(ii) academic assistance; and
                ``(iii) exposure to experiences that the children might 
            not otherwise encounter on their own;
            ``(F) an assurance that the mentoring program will be 
        monitored to ensure that each child assigned a mentor benefits 
        from that assignment and that the child will be assigned a new 
        mentor if the relationship between the original mentor and the 
        child is not beneficial to the child;
            ``(G) information regarding how mentors and children will 
        be recruited to the mentoring program;
            ``(H) information regarding how prospective mentors will be 
        screened;
            ``(I) information on the training that will be provided to 
        mentors; and
            ``(J) information on the system that the eligible entity 
        will use to manage and monitor information relating to the 
        mentoring program's--
                ``(i) reference checks;
                ``(ii) child and domestic abuse record checks;
                ``(iii) criminal background checks; and
                ``(iv) procedure for matching children with mentors.
        ``(5) Selection.--
            ``(A) Competitive basis.--In accordance with this 
        subsection, the Secretary shall award grants to eligible 
        entities on a competitive basis.
            ``(B) Priority.--In awarding grants under subparagraph (A), 
        the Secretary shall give priority to each eligible entity 
        that--
                ``(i) serves children with greatest need living in 
            rural areas, high-crime areas, or troubled home 
            environments, or who attend schools with violence problems;
                ``(ii) provides high quality background screening of 
            mentors, training of mentors, and technical assistance in 
            carrying out mentoring programs; or
                ``(iii) proposes a school-based mentoring program.
            ``(C) Other considerations.--In awarding grants under 
        subparagraph (A), the Secretary shall also consider--
                ``(i) the degree to which the location of the mentoring 
            program proposed by each eligible entity contributes to a 
            fair distribution of mentoring programs with respect to 
            urban and rural locations;
                ``(ii) the quality of the mentoring program proposed by 
            each eligible entity, including--

                    ``(I) the resources, if any, the eligible entity 
                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 proposed mentoring program;
                    ``(III) the degree to which the eligible entity can 
                ensure that mentors will develop longstanding 
                relationships with the children they mentor;
                    ``(IV) the degree to which the mentoring program 
                will serve children with greatest need in the 4th 
                through 8th grades; and
                    ``(V) the degree to which the mentoring program 
                will continue to serve children from the 9th grade 
                through graduation from secondary school, as needed; 
                and

                ``(iii) the capability of each eligible entity to 
            effectively implement its mentoring program.
            ``(D) Grant to each state.--Notwithstanding any other 
        provision of this subsection, in awarding grants under 
        subparagraph (A), the Secretary shall select not less than one 
        grant recipient from each State for which there is an eligible 
        entity that submits an application of sufficient quality 
        pursuant to paragraph (4).
        ``(6) Model screening guidelines.--
            ``(A) 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 each 
        eligible entity awarded a grant under this section specific 
        model guidelines for the screening of mentors who seek to 
        participate in mentoring programs assisted under this section.
            ``(B) 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.

                      ``Subpart 3--Gun Possession

``SEC. 4141. GUN-FREE REQUIREMENTS.

    ``(a) Short Title.--This subpart may be cited as the `Gun-Free 
Schools Act'.
    ``(b) Requirements.--
        ``(1) In general.--Each State receiving Federal funds under any 
    title of this Act shall have in effect a State law requiring local 
    educational agencies to expel from school for a period of not less 
    than 1 year a student who is determined to have brought a firearm 
    to a school, or to have possessed a firearm 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 subpart 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 
    `firearm' has the same meaning given such term 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 any title of 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 firearms concerned.
    ``(e) Reporting.--Each State shall report the information described 
in subsection (d) to the Secretary on an annual basis.
    ``(f) Definition.--For the purpose of subsection (d), 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 firearm 
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.
    ``(h) Policy Regarding Criminal Justice System Referral.--
        ``(1) In general.--No funds shall be made available under any 
    title of 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 firearm or 
    weapon to a school served by such agency.
        ``(2) Definition.--For the purpose of this subsection, the term 
    `school' has the same meaning given to such term by section 921(a) 
    of title 18, United States Code.

                    ``Subpart 4--General Provisions

``SEC. 4151. DEFINITIONS.

    ``In this part:
        ``(1) Controlled substance.--The term `controlled substance' 
    means a drug or other substance identified under Schedule I, II, 
    III, IV, or V in section 202(c) of the Controlled Substances Act 
    (21 U.S.C. 812(c)).
        ``(2) Drug.--The term `drug' includes controlled substances; 
    the illegal use of alcohol and tobacco; and the harmful, abusive, 
    or addictive use of substances, including inhalants and anabolic 
    steroids.
        ``(3) 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 drugs;
            ``(B) with respect to violence, the promotion of school 
        safety, such that students and school personnel are free from 
        violent and disruptive acts, including sexual harassment 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.
        ``(4) Hate crime.--The term `hate crime' means a crime as 
    described in section 1(b) of the Hate Crime Statistics Act of 1990.
        ``(5) 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.
        ``(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 
    illegal 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 illegal 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 based mental health services provider.--The term 
    `school based mental health services provider' includes a State 
    licensed or State certified school counselor, school psychologist, 
    school social worker, or other State licensed or certified mental 
    health professional qualified under State law to provide such 
    services to children and adolescents.
        ``(10) School personnel.--The term `school personnel' includes 
    teachers, principals, administrators, counselors, social workers, 
    psychologists, nurses, librarians, and other support staff who are 
    employed by a school or who perform services for the school on a 
    contractual basis.
        ``(11) School resource officer.--The term `school resource 
    officer' means a career law enforcement officer, with sworn 
    authority, deployed in community oriented policing, and assigned by 
    the employing police department to a local educational agency to 
    work in collaboration with schools and community based 
    organizations to--
            ``(A) educate students in crime and illegal drug use 
        prevention and safety;
            ``(B) develop or expand community justice initiatives for 
        students; and
            ``(C) train students in conflict resolution, restorative 
        justice, and crime and illegal drug use awareness.

``SEC. 4152. MESSAGE AND MATERIALS.

    ``(a) `Wrong and Harmful' Message.--Drug and violence prevention 
programs supported under this part shall convey a clear and consistent 
message that the illegal use of drugs and acts of violence are wrong 
and harmful.
    ``(b) Curriculum.--The Secretary shall not prescribe the use of 
specific curricula for programs supported under this part.

``SEC. 4153. PARENTAL CONSENT.

    ``Upon receipt of written notification from the parents or legal 
guardians of a student, the local educational agency shall withdraw 
such student from any program or activity funded under this part. The 
local educational agency shall make reasonable efforts to inform 
parents or legal guardians of the content of such programs or 
activities funded under this part, other than classroom instruction.

``SEC. 4154. 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); or
        ``(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 illegally use drugs.

``SEC. 4155. 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.

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

``SEC. 4201. PURPOSE; DEFINITIONS.

    ``(a) Purpose.--The purpose of this part is to provide 
opportunities for 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 
    academic achievement 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, counseling 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 served by community learning 
    centers opportunities for literacy and related educational 
    development.
    ``(b) Definitions.--In this part:
        ``(1) Community learning center.--The term `community learning 
    center' means an entity that--
            ``(A) assists students in meeting State and local academic 
        achievement standards in core academic subjects, such as 
        reading and mathematics, by providing the students with 
        opportunities for academic enrichment activities and a broad 
        array of other activities (such as drug and violence 
        prevention, counseling, art, music, recreation, technology, and 
        character education programs) during nonschool hours or periods 
        when school is not in session (such as before and after school 
        or during summer recess) that reinforce and complement the 
        regular academic programs of the schools attended by the 
        students served; and
            ``(B) offers families of students served by such center 
        opportunities for literacy and related educational development.
        ``(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 such part was in effect on the day before the date of 
        enactment of the No Child Left Behind Act of 2001); and
            ``(B) the grant period had not ended on that date of 
        enactment.
        ``(3) Eligible entity.--The term `eligible entity' means a 
    local educational agency, community-based organization, another 
    public or private entity, or a consortium of two or more of such 
    agencies, organizations, or entities.
        ``(4) State.--The term `State' means each of the 50 States, the 
    District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 4202. ALLOTMENTS TO STATES.

    ``(a) Reservation.--From the funds appropriated under section 4206 
for any fiscal year, the Secretary shall reserve--
        ``(1) such amount as may be necessary to make continuation 
    awards to grant recipients under covered programs (under the terms 
    of those grants);
        ``(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 eligible 
    entities carrying out programs under this part 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 
    part, as determined by the Secretary, to enable the outlying areas 
    and the Bureau to carry out the purpose of this part.
    ``(b) State Allotments.--
        ``(1) Determination.--From the funds appropriated under section 
    4206 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 of title I for the preceding fiscal year 
    bears to the amount all States received under that subpart for the 
    preceding fiscal year, except that no State shall receive less than 
    an amount equal to one-half of 1 percent of the total amount made 
    available to all States under this subsection.
        ``(2) Reallotment of unused funds.--If a State does not receive 
    an allotment under this part for a fiscal year, the Secretary shall 
    reallot the amount of the State's allotment to the remaining States 
    in accordance with this section.
    ``(c) State Use of Funds.--
        ``(1) In general.--Each State that receives an allotment under 
    this part shall reserve not less than 95 percent of the amount 
    allotted to such State under subsection (b), for each fiscal year 
    for awards to eligible entities under section 4204.
        ``(2) State administration.--A State educational agency may use 
    not more than 2 percent of the amount made available to the State 
    under subsection (b) for--
            ``(A) the administrative costs of carrying out its 
        responsibilities under this part;
            ``(B) establishing and implementing a peer review process 
        for grant applications described in section 4204(b) (including 
        consultation with the Governor and other State agencies 
        responsible for administering youth development programs and 
        adult learning activities); and
            supervising the awarding of funds to eligible entities (in 
        consultation with the Governor and other State agencies 
        responsible for administering youth development programs and 
        adult learning activities).
        ``(3) State activities.--A State educational agency may use not 
    more than 3 percent of the amount made available to the State under 
    subsection (b) for the following activities:
            ``(A) Monitoring and evaluation of programs and activities 
        assisted under this part.
            ``(B) Providing capacity building, training, and technical 
        assistance under this part.
            ``(C) Comprehensive evaluation (directly, or through a 
        grant or contract) of the effectiveness of programs and 
        activities assisted under this part.
            ``(D) Providing training and technical assistance to 
        eligible entities who are applicants for or recipients of 
        awards under this part.

``SEC. 4203. STATE APPLICATION.

    ``(a) In General.--In order to receive an allotment under section 
4202 for any fiscal year, a State shall submit to the Secretary, at 
such time as the Secretary may require, an application that--
        ``(1) designates the State educational agency as the agency 
    responsible for the administration and supervision of programs 
    assisted under this part;
        ``(2) describes how the State educational agency will use funds 
    received under this part, including funds reserved for State-level 
    activities;
        ``(3) contains an assurance that the State educational agency 
    will make awards under this part only to eligible entities 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);
        ``(4) describes the procedures and criteria the State 
    educational agency will use for reviewing applications and awarding 
    funds to eligible entities on a competitive basis, which shall 
    include procedures and criteria that take into consideration the 
    likelihood that a proposed community learning center will help 
    participating students meet local content and student academic 
    achievement standards;
        ``(5) describes how the State educational agency will ensure 
    that awards made under this part are--
            ``(A) of sufficient size and scope to support high-quality, 
        effective programs that are consistent with the purpose of this 
        part; and
            ``(B) in amounts that are consistent with section 4204(h);
        ``(6) describes the steps the State educational agency will 
    take to ensure that programs implement effective strategies, 
    including providing ongoing technical assistance and training, 
    evaluation, and dissemination of promising practices;
        ``(7) describes how programs under this part will be 
    coordinated with programs under this Act, and other programs as 
    appropriate;
        ``(8) contains an assurance that the State educational agency--
            ``(A) will make awards for programs for a period of not 
        less than 3 years and not more than 5 years; and
            ``(B) will require each eligible entity seeking such an 
        award to submit a plan describing how the community learning 
        center to be funded through the award will continue after 
        funding under this part ends;
        ``(9) contains an assurance that funds appropriated to carry 
    out this part will be used to supplement, and not supplant, other 
    Federal, State, and local public funds expended to provide programs 
    and activities authorized under this part and other similar 
    programs;
        ``(10) contains an assurance that the State educational agency 
    will require eligible entities to describe in their applications 
    under section 4204(b) how the transportation needs of participating 
    students will be addressed;
        ``(11) provides an assurance that the application was developed 
    in consultation and coordination with appropriate State officials, 
    including the chief State school officer, and other State agencies 
    administering before and after school (or summer school) programs, 
    the heads of the State health and mental health agencies or their 
    designees, and representatives of teachers, parents, students, the 
    business community, and community-based organizations;
        ``(12) describes the results of the State's needs and resources 
    assessment for before and after school activities, which shall be 
    based on the results of on-going State evaluation activities;
        ``(13) describes how the State educational agency will evaluate 
    the effectiveness of programs and activities carried out under this 
    part, which shall include, at a minimum--
            ``(A) a description of the performance indicators and 
        performance measures that will be used to evaluate programs and 
        activities; and
            ``(B) public dissemination of the evaluations of programs 
        and activities carried out under this part; and
        ``(14) provides for timely public notice of intent to file an 
    application and an assurance that the application will be available 
    for public review after submission.
    ``(b) Deemed Approval.--An application submitted by a State 
educational agency pursuant to subsection (a) shall be deemed to be 
approved by the Secretary unless the Secretary makes a written 
determination, prior to the expiration of the 120-day period beginning 
on the date on which the Secretary received the application, that the 
application is not in compliance with this part.
    ``(c) Disapproval.--The Secretary shall not finally disapprove the 
application, except after giving the State educational agency notice 
and opportunity for a hearing.
    ``(d) Notification.--If the Secretary finds that the application is 
not in compliance, in whole or in part, with this part, the Secretary 
shall--
        ``(1) give the State educational agency notice and an 
    opportunity for a hearing; and
        ``(2) notify the State educational agency of the finding of 
    noncompliance, and, in such notification, shall--
            ``(A) cite the specific provisions in the application that 
        are not in compliance; and
            ``(B) request additional information, only as to the 
        noncompliant provisions, needed to make the application 
        compliant.
    ``(e) Response.--If the State educational agency responds to the 
Secretary's notification described in subsection (d)(2) during the 45-
day period beginning on the date on which the agency received the 
notification, and resubmits the application with the requested 
information described in subsection (d)(2)(B), the Secretary shall 
approve or disapprove such application prior to the later of--
        ``(1) the expiration of the 45-day period beginning on the date 
    on which the application is resubmitted; or
        ``(2) the expiration of the 120-day period described in 
    subsection (b).
    ``(f) Failure To Respond.--If the State educational agency does not 
respond to the Secretary's notification described in subsection (d)(2) 
during the 45-day period beginning on the date on which the agency 
received the notification, such application shall be deemed to be 
disapproved.

``SEC. 4204. LOCAL COMPETITIVE GRANT PROGRAM.

    ``(a) In General.--A State that receives funds under this part for 
a fiscal year shall provide the amount made available under section 
4202(c)(1) to eligible entities for community learning centers in 
accordance with this part.
    ``(b) Application.--
        ``(1) In general.--To be eligible to receive an award under 
    this part, an eligible entity shall submit an application to the 
    State educational agency at such time, in such manner, and 
    including such information as the State educational agency may 
    reasonably require.
        ``(2) Contents.--Each application submitted under paragraph (1) 
    shall include--
            ``(A) a description of the before and after school or 
        summer recess activities to be funded, including--
                ``(i) an assurance that the program will take place in 
            a safe and easily accessible facility;
                ``(ii) a description of how students participating in 
            the program carried out by the community learning center 
            will travel safely to and from the center and home; and
                ``(iii) a description of how the eligible entity will 
            disseminate information about the community learning center 
            (including its location) to the community in a manner that 
            is understandable and accessible;
            ``(B) a description of how the activity is expected to 
        improve student academic achievement;
            ``(C) an identification of Federal, State, and local 
        programs that will be combined or coordinated with the proposed 
        program to make the most effective use of public resources;
            ``(D) an assurance that the proposed program was developed, 
        and will be carried out, in active collaboration with the 
        schools the students attend;
            ``(E) a description of how the activities will meet the 
        principles of effectiveness described in section 4205(b);
            ``(F) an assurance that the program will primarily target 
        students who attend schools eligible for schoolwide programs 
        under section 1114 and the families of such students;
            ``(G) an assurance that funds under this part will be used 
        to increase the level of State, local, and other non-Federal 
        funds that would, in the absence of funds under this part, be 
        made available for programs and activities authorized under 
        this part, and in no case supplant Federal, State, local, or 
        non-Federal funds;
            ``(H) a description of the partnership between a local 
        educational agency, a community-based organization, and another 
        public entity or private entity, if appropriate;
            ``(I) an evaluation of the community needs and available 
        resources for the 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);
            ``(J) a demonstration that the eligible entity has 
        experience, or promise of success, in providing educational and 
        related activities that will complement and enhance the 
        academic performance, achievement, and positive youth 
        development of the students;
            ``(K) a description of a preliminary plan for how the 
        community learning center will continue after funding under 
        this part ends;
            ``(L) an assurance that the community will be given notice 
        of an intent to submit an application and that the application 
        and any waiver request will be available for public review 
        after submission of the application;
            ``(M) if the eligible entity plans to use senior volunteers 
        in activities carried out through the community learning 
        center, a description of how the eligible entity will encourage 
        and use appropriately qualified seniors to serve as the 
        volunteers; and
            ``(N) such other information and assurances as the State 
        educational agency may reasonably require.
    ``(c) Approval of Certain Applications.--The State educational 
agency may approve an application under this part for a program to be 
located in a facility other than an elementary school or secondary 
school only if the program will be at least as available and accessible 
to the students to be served as if the program were located in an 
elementary school or secondary school.
    ``(d) Permissive Local Match.--
        ``(1) In general.--A State educational agency may require an 
    eligible entity to match funds awarded under this part, except that 
    such match may not exceed the amount of the grant award and may not 
    be derived from other Federal or State funds.
        ``(2) Sliding scale.--The amount of a match under paragraph (1) 
    shall be established based on a sliding fee scale that takes into 
    account--
            ``(A) the relative poverty of the population to be targeted 
        by the eligible entity; and
            ``(B) the ability of the eligible entity to obtain such 
        matching funds.
        ``(3) In-kind contributions.--Each State educational agency 
    that requires an eligible entity to match funds under this 
    subsection shall permit the eligible entity to provide all or any 
    portion of such match in the form of in-kind contributions.
        ``(4) Consideration.--Notwithstanding this subsection, a State 
    educational agency shall not consider an eligible entity's ability 
    to match funds when determining which eligible entities will 
    receive awards under this part.
    ``(e) Peer Review.--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.
    ``(f) Geographic Diversity.--To the extent practicable, a State 
educational agency shall distribute funds under this part equitably 
among geographic areas within the State, including urban and rural 
communities.
    ``(g) Duration of Awards.--Grants under this part may be awarded 
for a period of not less than 3 years and not more than 5 years.
    ``(h) Amount of Awards.--A grant awarded under this part may not be 
made in an amount that is less than $50,000.
    ``(i) Priority.--
        ``(1) In general.--In awarding grants under this part, a State 
    educational agency shall give priority to applications--
            ``(A) proposing to target services to students who attend 
        schools that have been identified as in need of improvement 
        under section 1116; and
            ``(B) submitted jointly by eligible entities consisting of 
        not less than 1--
                ``(i) local educational agency receiving funds under 
            part A of title I; and
                ``(ii) community-based organization or other public or 
            private entity.
        ``(2) Special rule.--The State educational agency shall provide 
    the same priority under paragraph (1) to an application submitted 
    by a local educational agency if the local educational agency 
    demonstrates that it is unable to partner with a community-based 
    organization in reasonable geographic proximity and of sufficient 
    quality to meet the requirements of this part.

``SEC. 4205. LOCAL ACTIVITIES.

    ``(a) Authorized Activities.--Each eligible entity that receives an 
award under this part may use the award funds to carry out a broad 
array of before and after school activities (including during summer 
recess periods) that advance student academic achievement, including--
        ``(1) remedial education activities and academic enrichment 
    learning programs, including providing additional assistance to 
    students to allow the students to improve their academic 
    achievement;
        ``(2) mathematics and science education activities;
        ``(3) arts and music education activities;
        ``(4) entrepreneurial education programs;
        ``(5) tutoring services (including those provided by senior 
    citizen volunteers) and mentoring programs;
        ``(6) programs that provide after school activities for limited 
    English proficient students that emphasize language skills and 
    academic achievement;
        ``(7) recreational activities;
        ``(8) telecommunications and technology education programs;
        ``(9) expanded library service hours;
        ``(10) programs that promote parental involvement and family 
    literacy;
        ``(11) programs that provide assistance to students who have 
    been truant, suspended, or expelled to allow the students to 
    improve their academic achievement; and
        ``(12) drug and violence prevention programs, counseling 
    programs, and character education programs.
    ``(b) Principles of Effectiveness.--
        ``(1) In general.--For a program or activity developed pursuant 
    to this part to meet the principles of effectiveness, such program 
    or activity shall--
            ``(A) be based upon an assessment of objective data 
        regarding the need for before and after school programs 
        (including during summer recess periods) and activities in the 
        schools and communities;
            ``(B) be based upon an established set of performance 
        measures aimed at ensuring the availability of high quality 
        academic enrichment opportunities; and
            ``(C) if appropriate, be based upon scientifically based 
        research that provides evidence that the program or activity 
        will help students meet the State and local student academic 
        achievement standards.
        ``(2) Periodic evaluation.--
            ``(A) In general.--The program or activity shall undergo a 
        periodic evaluation to assess its progress toward achieving its 
        goal of providing high quality opportunities for academic 
        enrichment.
            ``(B) Use of results.--The results of evaluations under 
        subparagraph (A) shall be--
                ``(i) used to refine, improve, and strengthen the 
            program or activity, and to refine the performance 
            measures; and
                ``(ii) made available to the public upon request, with 
            public notice of such availability provided.

``SEC. 4206. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated--
        ``(1) $1,250,000,000 for fiscal year 2002;
        ``(2) $1,500,000,000 for fiscal year 2003;
        ``(3) $1,750,000,000 for fiscal year 2004;
        ``(4) $2,000,000,000 for fiscal year 2005;
        ``(5) $2,250,000,000 for fiscal year 2006; and
        ``(6) $2,500,000,000 for fiscal year 2007.

                 ``PART C--ENVIRONMENTAL TOBACCO SMOKE

``SEC. 4301. SHORT TITLE.

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

``SEC. 4302. 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 
        No Child Left Behind Act of 2001, 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. 4303. NONSMOKING POLICY FOR CHILDREN'S SERVICES.

    ``(a) Prohibition.--After the date of enactment of the No Child 
Left Behind Act of 2001, no person 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 No Child 
    Left Behind Act of 2001, no person 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 No Child Left 
    Behind Act of 2001, 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 No 
        Child Left Behind Act of 2001, 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 No Child Left Behind Act of 2001, 
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 50 
    percent of the amount of Federal funds received under any title of 
    this 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. 4304. 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.''.

  TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

SEC. 501. INNOVATIVE PROGRAMS AND PARENTAL CHOICE PROVISIONS.

    Title V (20 U.S.C. 7201 et seq.) is amended to read as follows:

 ``TITLE V--PROMOTING INFORMED PARENTAL CHOICE AND INNOVATIVE PROGRAMS

                     ``PART A--INNOVATIVE PROGRAMS

``SEC. 5101. PURPOSES, STATE AND LOCAL RESPONSIBILITY.

    ``(a) Purposes.--The purposes of this part are the following:
        ``(1) To support local education reform efforts that are 
    consistent with and support statewide education reform efforts.
        ``(2) To provide funding to enable State educational agencies 
    and local educational agencies to implement promising educational 
    reform programs and school improvement programs based on 
    scientifically based research.
        ``(3) To provide a continuing source of innovation and 
    educational improvement, including support programs to provide 
    library services and instructional and media materials.
        ``(4) To meet the educational needs of all students, including 
    at-risk youth.
        ``(5) 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 State educational agency 
shall bear the basic responsibility for the administration of funds 
made available under this part, but it is the intent of Congress that 
the responsibility be carried out with a minimum of paperwork and that 
the responsibility for the design and implementation of programs 
assisted under this part be mainly that of local educational agencies, 
school superintendents and principals, and classroom teachers and 
supporting personnel, because local educational 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.

                 ``Subpart 1--State and Local Programs

``SEC. 5111. ALLOTMENT TO STATES.

    ``(a) In General.--From the sums appropriated to carry out this 
part for each fiscal year and not reserved under subsection (b), the 
Secretary shall allot, and make available in accordance with this part, 
to each State educational agency an amount that bears the same ratio to 
such sums as the school-age population of the State bears to the 
school-age population of all States, except that no State shall receive 
less than an amount equal to one-half of 1 percent of such sums.
    ``(b) Reservation.--From the sums appropriated to carry out this 
part for each fiscal year, the Secretary shall reserve not more than 1 
percent for payments to the outlying areas, to be allotted in 
accordance with their respective needs for assistance under this part.

``SEC. 5112. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Distribution Rule.--
        ``(1) Allocation of base amounts.--From the amount made 
    available to a State educational agency under this part for a 
    fiscal year, the State educational agency shall distribute, to 
    local educational agencies within the State, an amount that is not 
    less than 85 percent of the amount made available to the State 
    educational agency under this part for fiscal year 2002, according 
    to the relative enrollments in public and in private nonprofit 
    schools within the jurisdictions of such local educational 
    agencies, adjusted, in accordance with criteria approved by the 
    Secretary, to provide higher per-pupil allocations to local 
    educational agencies that have the greatest numbers or percentages 
    of children whose education imposes a higher-than-average cost per 
    child, such as--
            ``(A) children living in areas with high concentrations of 
        economically disadvantaged families;
            ``(B) children from economically disadvantaged families; 
        and
            ``(C) children living in sparsely populated areas.
        ``(2) Allocation of increased amounts.--From the amount made 
    available to a State educational agency under this part for a 
    fiscal year that exceeds the amount made available to the agency 
    under this part for fiscal year 2002, the State educational agency 
    shall distribute 100 percent (or, in the case of a State 
    educational agency receiving a minimum allotment under section 
    5111(a), not less than 50 percent, notwithstanding subsection (b)) 
    to local educational agencies within the State, on the same basis 
    as the State educational agency distributes amounts under paragraph 
    (1).
    ``(b) Limitations and Requirements.--Not more than 15 percent of 
funds made available under section 5111 for State programs under this 
part for any fiscal year may be used for State administration under 
section 5121.
    ``(c) Calculation of Enrollments.--
        ``(1) In general.--The calculation of relative enrollments 
    under subsection (a)(1) 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 participated in programs assisted under this part, 
        for the fiscal year preceding the fiscal year for which the 
        determination is made.
        ``(2) Rule of construction.--Nothing in this subsection shall 
    diminish the responsibility of each local educational agency to 
    contact, on an annual basis, appropriate officials from private 
    nonprofit schools within the areas served by such agencies in order 
    to determine whether such schools desire that their children 
    participate in programs assisted under this part.
        ``(3) Adjustments.--
            ``(A) State criteria.--Relative enrollments calculated 
        under subsection (a)(1) 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 that serve the greatest numbers or percentages of--
                ``(i) children living in areas with high concentrations 
            of economically disadvantaged families;
                ``(ii) children from economically disadvantaged 
            families; or
                ``(iii) children living in sparsely populated areas.
            ``(B) Review of criteria.--The Secretary shall review 
        criteria submitted by a State educational agency for adjusting 
        allocations under paragraph (1) and shall approve such criteria 
        only if the Secretary determines that such criteria are 
        reasonably calculated to produce an adjusted allocation that 
        reflects the relative needs of the State's local educational 
        agencies based on the factors set forth in subparagraph (A).
    ``(d) Payment of Allocations.--
        ``(1) Distribution.--From the funds paid to a State educational 
    agency under this subpart for a fiscal year, the State educational 
    agency shall distribute to each eligible local educational agency 
    that has submitted an application as required by section 5133 the 
    amount of such local educational agency's allocation, as determined 
    under subsection (a).
        ``(2) Additional funds.--
            ``(A) Use.--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)(1) may, in the discretion of the local 
        educational agency, be allocated for expenditures to provide 
        services for children enrolled in public schools and private 
        nonprofit schools in direct proportion to the number of 
        children described in subsection (a)(1) and enrolled in such 
        schools within the area served by the local educational agency.
            ``(B) Allocation.--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 area served 
        by the local educational agency in such manner.
            ``(C) Rule of construction.--Subparagraphs (A) and (B) may 
        not be construed to require any school to limit the use of the 
        additional funds described in subparagraph (A) to the provision 
        of services to specific students or categories of students.

                      ``Subpart 2--State Programs

``SEC. 5121. STATE USES OF FUNDS.

    ``A State educational agency may use funds made available for State 
use under section 5112(b) only for one or more of the following:
        ``(1) State administration of programs under this part, 
    including--
            ``(A) allocating funds to local educational agencies;
            ``(B) planning, supervising, and processing State 
        educational agency funds; and
            ``(C) monitoring and evaluating programs under this part.
        ``(2) Support for the planning, design, and initial 
    implementation of charter schools as described in part B.
        ``(3) Statewide education reform, school improvement programs 
    and technical assistance and direct grants to local educational 
    agencies, which assist such agencies under section 5131.
        ``(4) Support for the design and implementation of high-quality 
    yearly student assessments.
        ``(5) Support for implementation of challenging State and local 
    academic achievement standards.
        ``(6) Support for arrangements that provide for independent 
    analysis to measure and report on school district achievement.
        ``(7) Support for the program described in section 321 of the 
    Departments of Labor, Health and Human Services, and Education, and 
    Related Agencies Appropriations Act, 2001 (as enacted into law by 
    section 1(a)(1) of Public Law 106-554).
        ``(8) Support for programs to assist in the implementation of 
    the policy described in section 9507 which may include payment of 
    reasonable transportation costs and tuition costs for such 
    students.

``SEC. 5122. STATE APPLICATIONS.

    ``(a) Application Requirements.--Any State that desires to receive 
assistance under this part shall submit to the Secretary an application 
that includes each of the following:
        ``(1) Designation of the State educational agency as the State 
    agency responsible for administration and supervision of programs 
    assisted under this part.
        ``(2) Provision for an annual statewide summary of how 
    assistance under this part is contributing toward improving student 
    academic achievement or improving the quality of education for 
    students.
        ``(3) Information setting forth the allocation of funds 
    required to implement section 5142.
        ``(4) A provision 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) An assurance that, apart from providing technical and 
    advisory assistance and monitoring compliance with this part, the 
    State educational agency has not exercised, and will not exercise, 
    any influence in the decisionmaking processes of local educational 
    agencies as to the expenditure made pursuant to an application 
    submitted under section 5133.
        ``(6) An assurance that there is compliance with the specific 
    requirements of this part.
        ``(7) Provision for timely public notice and public 
    dissemination of the information provided under paragraph (3).
    ``(b) Statewide Summary.--The statewide summary referred to in 
subsection (a)(2) shall be submitted annually to the Secretary and 
shall be derived from the evaluation information submitted by local 
educational agencies to the State educational agency under section 
5133(b)(8). The State educational agency shall determine the format and 
content of such summary and may include in the summary statistical 
measures, such as the number of students served by each type of 
innovative assistance program described in section 5131 and the number 
of teachers trained.
    ``(c) Period of Application.--An application submitted by the State 
educational agency under subsection (a) shall be for a period not to 
exceed 3 years. The agency may amend the application annually, as may 
be necessary to reflect changes, without filing a new application.
    ``(d) Audit Rule.--A local educational agency that receives less 
than an average of $10,000 under this part for any 3 consecutive fiscal 
years shall not be audited more frequently than once every 5 years.

            ``Subpart 3--Local Innovative Education Programs

``SEC. 5131. LOCAL USES OF FUNDS.

    ``(a) Innovative Assistance Programs.--Funds made available to 
local educational agencies under section 5112 shall be used for 
innovative assistance programs, which may include any of the following:
        ``(1) Programs to recruit, train, and hire highly qualified 
    teachers to reduce class size, especially in the early grades, and 
    professional development activities carried out in accordance with 
    title II, that give teachers, principals, and administrators the 
    knowledge and skills to provide students with the opportunity to 
    meet challenging State or local academic content standards and 
    student academic achievement standards.
        ``(2) 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 use technology 
    effectively in the classrooms and the school library media centers 
    involved.
        ``(3) Programs for the development or acquisition and use of 
    instructional and educational materials, including library services 
    and materials (including media materials), academic assessments, 
    reference materials, computer software and hardware for 
    instructional use, and other curricular materials that are tied to 
    high academic standards, that will be used to improve student 
    academic achievement, and that are part of an overall education 
    reform program.
        ``(4) Promising education reform projects, including magnet 
    schools.
        ``(5) Programs to improve the academic achievement of 
    educationally disadvantaged elementary school and secondary school 
    students, including activities to prevent students from dropping 
    out of school.
        ``(6) 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.
        ``(7) Programs to provide for the educational needs of gifted 
    and talented children.
        ``(8) The planning, design, and initial implementation of 
    charter schools as described in part B.
        ``(9) School improvement programs or activities under sections 
    1116 and 1117.
        ``(10) Community service programs that use qualified school 
    personnel to train and mobilize young people to measurably 
    strengthen their communities through nonviolence, responsibility, 
    compassion, respect, and moral courage.
        ``(11) Activities to promote consumer, economic, and personal 
    finance education, such as disseminating information on and 
    encouraging 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 with 
    earning, spending, saving, and investing).
        ``(12) Activities to promote, implement, or expand public 
    school choice.
        ``(13) Programs to hire and support school nurses.
        ``(14) Expansion and improvement of school-based mental health 
    services, including early identification of drug use and violence, 
    assessment, and direct individual or group counseling services 
    provided to students, parents, and school personnel by qualified 
    school-based mental health services personnel.
        ``(15) Alternative educational programs for those students who 
    have been expelled or suspended from their regular educational 
    setting, including programs to assist students to reenter the 
    regular educational setting upon return from treatment or 
    alternative educational programs.
        ``(16) Programs to establish or enhance prekindergarten 
    programs for children.
        ``(17) Academic intervention programs that are operated jointly 
    with community-based organizations and that support academic 
    enrichment, and counseling programs conducted during the school day 
    (including during extended school day or extended school year 
    programs), for students most at risk of not meeting challenging 
    State academic achievement standards or not completing secondary 
    school.
        ``(18) Programs for cardiopulmonary resuscitation (CPR) 
    training in schools.
        ``(19) Programs to establish smaller learning communities.
        ``(20) Activities that encourage and expand improvements 
    throughout the area served by the local educational agency that are 
    designed to advance student academic achievement.
        ``(21) Initiatives to generate, maintain, and strengthen 
    parental and community involvement.
        ``(22) Programs and activities that expand learning 
    opportunities through best-practice models designed to improve 
    classroom learning and teaching.
        ``(23) Programs to provide same-gender schools and classrooms 
    (consistent with applicable law).
        ``(24) Service learning activities.
        ``(25) School safety programs, including programs to implement 
    the policy described in section 9507 and which may include payment 
    of reasonable transportation costs and tuition costs for such 
    students.
        ``(26) 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.
        ``(27) Supplemental educational services, as defined in section 
    1116(e).
    ``(b) Requirements.--The innovative assistance programs described 
in subsection (a) shall be--
        ``(1) tied to promoting challenging academic achievement 
    standards;
        ``(2) used to improve student academic achievement; and
        ``(3) part of an overall education reform strategy.
    ``(c) Guidelines.--Not later than 120 days after the date of 
enactment of the No Child Left Behind Act of 2001, the Secretary shall 
issue guidelines for local educational agencies seeking funding for 
programs described in subsection (a)(23).

``SEC. 5132. ADMINISTRATIVE AUTHORITY.

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

``SEC. 5133. LOCAL APPLICATIONS.

    ``(a) Submission of Application.--A local educational agency may 
receive an allocation of funds under this part for any year for which 
the agency submits an application under this section that the State 
educational agency certifies under subsection (b).
    ``(b) Certification and Contents of Application.--The State 
educational agency shall certify each application submitted under 
subsection (a) that includes each of the following:
        ``(1) A description of locally identified needs relative to the 
    purposes of this part and to the innovative assistance programs 
    described in section 5131.
        ``(2) A statement that sets forth the planned allocation of 
    funds, based on the needs identified in subparagraph (A), among 
    innovative assistance programs described in section 5131, a 
    description of the programs that the local educational agency 
    intends to support, and a description of the reasons for the 
    selection of such programs.
        ``(3) Information setting forth the allocation of such funds 
    required to implement section 5142.
        ``(4) A description of how assistance under this part will 
    contribute to improving student academic achievement or improving 
    the quality of education for students.
        ``(5) An assurance that the local educational agency will 
    comply with this part, including the provisions of section 5142 
    concerning the participation of children enrolled in private 
    nonprofit schools.
        ``(6) An assurance that the local educational agency will keep 
    such records, and provide such information to the State educational 
    agency, as may be reasonably required for fiscal audit and program 
    evaluation (consistent with the responsibilities of the State 
    educational agency under this part).
        ``(7) Provision, in the allocation of funds for the assistance 
    authorized by this part and in the planning, design, and 
    implementation of such innovative assistance 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 such other groups involved in 
    the implementation of this part (such as librarians, school 
    counselors, and other pupil services personnel) as may be 
    considered appropriate by the local educational agency.
        ``(8) An assurance that--
            ``(A) programs carried out under this part will be 
        evaluated annually;
            ``(B) the evaluation will be used to make decisions about 
        appropriate changes in programs for the subsequent year;
            ``(C) the evaluation will describe how assistance under 
        this part affected student academic achievement and will 
        include, at a minimum, information and data on the use of 
        funds, the types of services furnished, and the students served 
        under this part; and
            ``(D) the evaluation will be submitted to the State 
        educational agency at the time and in the manner requested by 
        the State educational agency.
        ``(9) If the local educational agency seeks funds under section 
    5131(a)(23), a description of how the agency will comply with the 
    guidelines issued by the Secretary regarding same-gender schools 
    and classrooms under section 5131(c).
    ``(c) Period of Application.--An application submitted by a local 
educational agency under subsection (a) may seek allocations under this 
part for a period not to exceed 3 fiscal years. The agency may amend 
the application annually, as may be necessary to reflect changes, 
without the filing of a new application.
    ``(d) Local Educational Agency Discretion.--
        ``(1) In general.--Subject to the limitations and requirements 
    of this part, a local educational agency shall have complete 
    discretion in determining how funds made available to carry out 
    this subpart will be divided among programs described in section 
    5131.
        ``(2) Limitation.--In exercising the discretion described in 
    paragraph (1), a local educational agency shall ensure that 
    expenditures under this subpart carry out the purposes of this part 
    and are used to meet the educational needs within the schools 
    served by the local educational agency.

                    ``Subpart 4--General Provisions

``SEC. 5141. MAINTENANCE OF EFFORT.

    ``(a) In general.--Except as provided in subsection (b), a State 
educational agency is entitled to receive its full allotment of funds 
under this part for any fiscal year only if the Secretary determines 
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.
    ``(b) Reduction of Funds.--The Secretary shall reduce the amount of 
the allotment of funds under this part in any fiscal year in the exact 
proportion by which the State educational agency fails to meet the 
requirements of subsection (a) by falling below 90 percent of the 
fiscal effort per student or aggregate expenditures (using the measure 
most favorable to the State educational agency), and no such lesser 
amount shall be used for computing the effort or expenditures required 
under paragraph (1) for subsequent years.
    ``(c) Waiver.--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 educational 
agency.

``SEC. 5142. 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 that 
    is eligible to receive funds under this part, or that serves the 
    area in which a program assisted under this part is located, who 
    are enrolled in private nonprofit elementary schools and secondary 
    schools, or, with respect to instructional or personnel training 
    programs funded by the State educational agency from funds made 
    available for State educational agency use, the local educational 
    agency, after consultation with appropriate private school 
    officials--
            ``(A) shall provide, as may be necessary, for the benefit 
        of such children in such schools--
                ``(i) 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
                ``(ii) the repair, minor remodeling, or construction of 
            public facilities (consistent with subsection (c)); or
            ``(B) if such services, materials, and equipment are not 
        feasible or necessary in one or more such private schools, as 
        determined by the local educational agency after consultation 
        with the appropriate private school officials, shall provide 
        such other arrangements as will assure equitable participation 
        of such children in the purposes and benefits of this part.
        ``(2) Other provisions for services.--If no program 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 the 
    district are provided with services and materials to the same 
    extent as would have occurred if the local educational agency had 
    received funds under this part.
        ``(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 
    carried out under this part by a State educational agency or local 
    educational agency, whether directly or through grants to, or 
    contracts with, other public or private agencies, institutions, or 
    organizations.
    ``(b) Equal Expenditures.--
        ``(1) In general.--Expenditures for programs under subsection 
    (a) shall be equal (consistent with the number of children to be 
    served) to expenditures for programs under this part for children 
    enrolled in the public schools of the local educational agency.
        ``(2) Concentrated programs.--Taking into account the needs of 
    the individual children and other factors that relate to the 
    expenditures referred to in paragraph (1), and when funds available 
    to a local educational agency under this part are used to 
    concentrate programs 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.
    ``(c) Administrative Requirements.--
        ``(1) Funds and property.--The control of funds provided under 
    this part, 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 part, and 
    a public agency shall administer such funds and property.
        ``(2) Provision of services.--Services provided under this part 
    shall be provided by employees of a public agency or through 
    contract by such a public agency with a person, association, 
    agency, or corporation that, in the provision of such services, is 
    independent of the private school and of any religious 
    organizations, and such employment or contract shall be under the 
    control and supervision of such a public agency. The funds provided 
    under this part shall not be commingled with State or local funds.
    ``(d) Waiver.--
        ``(1) State prohibition.--If a State educational agency or 
    local educational agency is prohibited, by reason of any provision 
    of law, from providing for the participation in programs of 
    children enrolled in private elementary schools and secondary 
    schools as required by subsections (a) through (c), the Secretary 
    shall waive such requirements for the agency involved and shall 
    arrange for the provision of services to such children through 
    arrangements that shall be subject to the requirements of this 
    section.
        ``(2) Failure to comply.--If the Secretary determines that a 
    State educational agency 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 subsections 
    (a) through (c), the Secretary may waive such requirements and 
    shall arrange for the provision of services to such children 
    through arrangements that shall be subject to the requirements of 
    this section.
    ``(e) Withholding of Allotment or Allocation.--Pending final 
resolution of any investigation or complaint that could result in a 
waiver under subsection (d)(1) or (d)(2), the Secretary may withhold 
from the allotment or allocation of the affected State educational 
agency or local educational agency the amount estimated by the 
Secretary to be necessary to pay the cost of services to be provided by 
the Secretary under such subsection.
    ``(f) Duration of 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 educational agency or local 
educational agency to meet the requirements of subsections (a) through 
(c).
    ``(g) Payment From State Allotment.--When the Secretary arranges 
for services under subsection (d), the Secretary shall, after 
consultation with the appropriate public school 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 educational agency under this part.
    ``(h) Review of Determination.--
        ``(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 educational agency 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 the action, 
    as provided in section 2112 of title 28, United States Code.
        ``(3) Remand to secretary.--The findings of fact by the 
    Secretary with respect to a proceeding under paragraph (1), if 
    supported by substantial evidence, shall be conclusive. 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 a petition under 
    paragraph (2), 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 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 title VI (as such title was in effect on the day 
preceding the date of enactment of the No Child Left Behind Act of 
2001) shall, to the extent consistent with the purposes of this part, 
apply to programs under this part.

``SEC. 5143. FEDERAL ADMINISTRATION.

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

``SEC. 5144. SUPPLEMENT, NOT SUPPLANT.

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

``SEC. 5145. DEFINITIONS.

    ``In this part:
        ``(1) Local educational agency.--The term `local educational 
    agency' means a local educational agency or a consortium of such 
    agencies.
        ``(2) Public school.--The term `public school' means a public 
    elementary school or a public secondary school.
        ``(3) School-age population.--The term `school-age population' 
    means the population aged 5 through 17.
        ``(4) State.--The term `State' means each of the 50 States, the 
    District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 5146. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part--
        ``(1) $450,000,000 for fiscal year 2002;
        ``(2) $475,000,000 for fiscal year 2003;
        ``(3) $500,000,000 for fiscal year 2004;
        ``(4) $525,000,000 for fiscal year 2005;
        ``(5) $550,000,000 for fiscal year 2006; and
        ``(6) $600,000,000 for fiscal year 2007.

                    ``PART B--PUBLIC CHARTER SCHOOLS

                  ``Subpart 1--Charter School Programs

``SEC. 5201. 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 academic achievement, staff, and 
    parents;
        ``(3) expanding the number of high-quality charter schools 
    available to students across the Nation; and
        ``(4) encouraging 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.

``SEC. 5202. PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary may award grants to State 
educational agencies having applications approved pursuant to section 
5203 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 5203, the Secretary may award a 
grant to an eligible applicant that serves such State and has an 
application approved pursuant to section 5203(c).
    ``(c) Program Periods.--
        ``(1) Grants to states.--Grants awarded to State educational 
    agencies under this subpart shall be 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 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 5204(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 5211 (other than funds reserved to carry 
    out section 5205(b)), 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) are 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 student academic achievement 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. 5203. 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 academic achievement 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 eligible 
        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 eligible 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 5202(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) Eligible Applicant Application.--Each eligible applicant 
desiring a grant pursuant to section 5202(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.
    ``(d) Contents of Eligible Applicant 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;
        ``(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 5204(e); and
        ``(3) assurances that the eligible applicant has provided its 
    authorized public chartering authority timely notice, and a copy, 
    of the application, except that the State educational agency (or 
    the Secretary, in the case of an application submitted to the 
    Secretary) may waive the requirement of this paragraph in the case 
    of an application for a precharter planning grant or subgrant if 
    the authorized public chartering authority to which a charter 
    school proposal will be submitted has not been determined at the 
    time the grant or subgrant application is submitted.

``SEC. 5204. 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 5203(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 in meeting State academic content standards and State 
    student academic achievement standards;
        ``(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 
    subsection (f)(6)(B), the quality of those activities and the 
    likelihood that those activities will improve student academic 
    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 
5203(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 subsection 
    (f)(6)(B), 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 
grants and 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 5210(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.--
            ``(A) State educational agency 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.
            ``(B) Local administrative expenses.--A local educational 
        agency may not deduct funds for administrative fees or expenses 
        from a subgrant awarded to an eligible applicant, unless the 
        eligible applicant enters voluntarily into a mutually agreed 
        upon arrangement for administrative services with the relevant 
        local educational agency. Absent such approval, the local 
        educational agency shall distribute all such subgrant funds to 
        the eligible applicant without delay.
        ``(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 funds 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 the eligible applicant 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 
            academic 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 academic achievement 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. 5205. 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 other evaluations or studies that include 
    the evaluation of the impact of charter schools on student academic 
    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.
        ``(3) 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 
        5203;
            ``(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.
        ``(4) 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.
        ``(5) To carry out evaluations of, technical assistance for, 
    and information dissemination regarding, the per-pupil facilities 
    aid programs. In carrying out the evaluations, the Secretary may 
    carry out one or more evaluations of State programs assisted under 
    this subsection, which shall, at a minimum, address--
            ``(A) how, and the extent to which, the programs promote 
        educational equity and excellence; and
            ``(B) 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.
    ``(b) Per-Pupil Facilities Aid Programs.--
        ``(1) Definition of per-pupil facilities aid program.--In this 
    subsection, the term `per-pupil facilities aid program' means a 
    program in which a State makes payments, on a per-pupil basis, to 
    charter schools to provide the schools with financing--
            ``(A) that is dedicated solely for funding charter school 
        facilities; or
            ``(B) a portion of which is dedicated for funding charter 
        school facilities.
        ``(2) Grants.--
            ``(A) In general.--From the amount made available to carry 
        out this subsection under paragraphs (2) and (3)(B) of section 
        5211(b) 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 
        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;
                ``(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.
        ``(3) 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 to carry out evaluations, to provide 
        technical assistance, and to disseminate information.
            ``(C) Supplement, not supplant.--Funds made available under 
        this subsection shall be used to 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.
        ``(4) 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; and
                ``(ii) provides annual financing, on a per-pupil basis, 
            for charter school facilities.
        ``(5) 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.
        ``(6) 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 5202(e).
    ``(c) Rule of Construction.--Nothing in this section shall be 
construed to require charter schools to collect any data described in 
subsection (a).

``SEC. 5206. 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 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. 5207. 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, or any other program 
administered by the Secretary that provides education funds to charter 
schools or regulates the activities of charter schools.

``SEC. 5208. 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. 5209. 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. 5210. 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 exempt 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 
    a developer that has--
            ``(A) applied to an authorized public chartering authority 
        to operate a charter school; and
            ``(B) provided adequate and timely notice to that authority 
        under section 5203(d)(3).
        ``(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. 5211. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this subpart $300,000,000 for fiscal year 2002 and such sums as may 
be necessary for each of the 5 succeeding fiscal years.
    ``(b) Reservation.--From the amount appropriated under subsection 
(a) for each fiscal year, the Secretary shall reserve--
        ``(1) $200,000,000 to carry out this subpart, other than 
    section 5205(b); and
        ``(2) any funds in excess of $200,000,000, that do not exceed 
    $300,000,000, to carry out section 5205(b); and
        ``(3)(A) 50 percent of any funds in excess of $300,000,000 to 
    carry out this subpart, other than section 5205(b); and
        ``(B) 50 percent of any funds in excess of $300,000,000 to 
    carry out section 5205(b).

 ``Subpart 2--Credit Enhancement Initiatives To Assist Charter School 
           Facility Acquisition, Construction, and Renovation

``SEC. 5221. PURPOSE.

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

``SEC. 5222. GRANTS TO ELIGIBLE ENTITIES.

    ``(a) Grants.--The Secretary shall use 100 percent of the amount 
available to carry out this subpart to award not less than three grants 
to eligible entities that have applications approved under this subpart 
to demonstrate innovative methods of assisting charter schools to 
address the cost of acquiring, constructing, and renovating facilities 
by enhancing the availability of loans or bond financing.
    ``(b) Grantee Selection.--
        ``(1) Evaluation of application.--The Secretary shall evaluate 
    each application submitted under section 5223, and shall determine 
    whether the application is sufficient to merit approval.
        ``(2) Distribution of grants.--The Secretary shall award at 
    least one grant to an eligible entity described in section 
    5230(2)(A), at least one grant to an eligible entity described in 
    section 5230(2)(B), and at least one grant to an eligible entity 
    described in section 5230(2)(C), if applications are submitted that 
    permit the Secretary to do so without approving an application that 
    is not of sufficient quality to merit approval.
    ``(c) Grant Characteristics.--Grants under this subpart shall be of 
a sufficient size, scope, and quality so as to ensure an effective 
demonstration of an innovative means of enhancing credit for the 
financing of charter school acquisition, construction, or renovation.
    ``(d) Special Rule.--In the event the Secretary determines that the 
funds made available under this subpart are insufficient to permit the 
Secretary to award not less than three grants in accordance with 
subsections (a) through (c), such three-grant minimum and subsection 
(b)(2) shall not apply, and the Secretary may determine the appropriate 
number of grants to be awarded in accordance with subsection (c).

``SEC. 5223. APPLICATIONS.

    ``(a) In General.--To receive a grant under this subpart, 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 subpart, including how 
    the eligible entity will determine which charter schools will 
    receive assistance, and how much and what types of assistance 
    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 eligible entity's expertise in 
    capital market financing;
        ``(4) a description of how the proposed activities will 
    leverage the maximum amount of private-sector financing capital 
    relative to the amount of government funding used and otherwise 
    enhance credit available to charter schools;
        ``(5) a description of how the eligible entity 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 charter schools need to have adequate 
    facilities; and
        ``(7) such other information as the Secretary may reasonably 
    require.

``SEC. 5224. CHARTER SCHOOL OBJECTIVES.

    ``An eligible entity receiving a grant under this subpart shall use 
the funds deposited in the reserve account established under section 
5225(a) to assist one or more charter schools to access private sector 
capital to accomplish one or both 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.

``SEC. 5225. RESERVE ACCOUNT.

    ``(a) Use of Funds.--To assist charter schools to accomplish the 
objectives described in section 5224, an eligible entity receiving a 
grant under this subpart shall, in accordance with State and local law, 
directly or indirectly, alone or in collaboration with others, deposit 
the funds received under this subpart (other than funds used for 
administrative costs in accordance with section 5226) in a reserve 
account established and maintained by the eligible entity for this 
purpose. Amounts deposited in such account shall be used by the 
eligible entity for one 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 5224.
        ``(2) Guaranteeing and insuring leases of personal and real 
    property for an objective described in section 5224.
        ``(3) Facilitating financing by identifying potential lending 
    sources, encouraging private lending, and 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, 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).
    ``(b) Investment.--Funds received under this subpart and deposited 
in the reserve account established under subsection (a) shall be 
invested in obligations issued or guaranteed by the United States or a 
State, or in other similarly low-risk securities.
    ``(c) Reinvestment of Earnings.--Any earnings on funds received 
under this subpart shall be deposited in the reserve account 
established under subsection (a) and used in accordance with such 
subsection.

``SEC. 5226. LIMITATION ON ADMINISTRATIVE COSTS.

    ``An eligible entity may use not more than 0.25 percent of the 
funds received under this subpart for the administrative costs of 
carrying out its responsibilities under this subpart.

``SEC. 5227. AUDITS AND REPORTS.

    ``(a) Financial Record Maintenance and Audit.--The financial 
records of each eligible entity receiving a grant under this subpart 
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 subpart annually shall submit to the Secretary a 
    report of its operations and activities under this subpart.
        ``(2) Contents.--Each annual report submitted under paragraph 
    (1) shall include--
            ``(A) a copy of the most recent financial statements, and 
        any accompanying opinion on such statements, prepared by the 
        independent public accountant reviewing 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 its use of the Federal funds provided under 
        this subpart in leveraging private funds;
            ``(D) a listing and description of the charter schools 
        served 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 5224; and
            ``(F) a description of the characteristics of lenders and 
        other financial institutions participating in the activities 
        undertaken by the eligible entity under this subpart 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 subpart.

``SEC. 5228. NO FULL FAITH AND CREDIT FOR GRANTEE OBLIGATIONS.

    ``No financial obligation of an eligible entity entered into 
pursuant to this subpart (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 
which may be required to be paid under any obligation made by an 
eligible entity pursuant to any provision of this subpart.

``SEC. 5229. 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 5225(a) if the Secretary determines, 
    not earlier than 2 years after the date on which the eligible 
    entity first received funds under this subpart, that the eligible 
    entity has failed to make substantial progress in carrying out the 
    purposes described in section 5225(a); or
        ``(2) all or a portion of the funds in a reserve account 
    established by an eligible entity under section 5225(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 5225(a).
    ``(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 one or more of 
the purposes described in section 5225(a).
    ``(c) Procedures.--The provisions of sections 451, 452, and 458 of 
the General Education Provisions Act 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.

``SEC. 5230. DEFINITIONS.

    ``In this subpart:
        ``(1) Charter school.--The term `charter school' has the 
    meaning given such term in section 5210.
        ``(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. 5231. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this subpart, there are 
authorized to be appropriated $150,000,000 for fiscal year 2002 and 
such sums as may be necessary for fiscal year 2003.

          ``Subpart 3--Voluntary Public School Choice Programs

``SEC. 5241. GRANTS.

    ``(a) Authorization.--From funds made available under section 5248 
to carry out this subpart, the Secretary shall award grants, on a 
competitive basis, to eligible entities to enable the entities to 
establish or expand a program of public school choice (referred to in 
this subpart as a `program') in accordance with this subpart.
    ``(b) Duration.--Grants awarded under subsection (a) may be awarded 
for a period of not more than 5 years.

``SEC. 5242. USES OF FUNDS.

    ``(a) Required Use of Funds.--An eligible entity that receives a 
grant under this subpart shall use the grant funds to provide students 
selected to participate in the program with transportation services or 
the cost of transportation to and from the public elementary schools 
and secondary schools, including charter schools, that the students 
choose to attend under the program.
    ``(b) Permissible Uses of Funds.--An eligible entity that receives 
a grant under this subpart may use the grant funds for--
        ``(1) planning or designing a program (for not more than 1 
    year);
        ``(2) the cost of making tuition transfer payments to public 
    elementary schools or secondary schools to which students transfer 
    under the program;
        ``(3) the cost of capacity-enhancing activities that enable 
    high-demand public elementary schools or secondary 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; and
        ``(5) other costs reasonably necessary to implement the 
    program.
    ``(c) Nonpermissible Uses of Funds.--An eligible entity that 
receives a grant under this subpart may not use the grant funds for 
school construction.
    ``(d) Administrative Expenses.--The eligible entity may use not 
more than 5 percent of the funds made available through the grant for 
any fiscal year for administrative expenses.

``SEC. 5243. APPLICATIONS.

    ``(a) Submission.--An eligible entity that desires 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 
require.
    ``(b) Contents.--An application submitted under subsection (a) 
shall include--
        ``(1) a description of the program for which the eligible 
    entity seeks funds and the goals for such program;
        ``(2) a description of how and when parents of students will be 
    given the notice required under section 5245(a)(2);
        ``(3) a description of how students will be selected for the 
    program;
        ``(4) a description of how the program will be coordinated 
    with, and will complement and enhance, other related Federal and 
    non-Federal projects;
        ``(5) if the program is to be carried out by a partnership, the 
    name of each partner and a description of the partner's 
    responsibilities; and
        ``(6) such other information as the Secretary may require.

``SEC. 5244. PRIORITIES.

    ``In awarding grants under this subpart, the Secretary shall give 
priority to an eligible entity--
        ``(1) whose program would provide the widest variety of choices 
    to all students in participating schools;
        ``(2) whose program would, through various choice options, have 
    the most impact in allowing students in low-performing schools to 
    attend higher-performing schools; and
        ``(3) that is a partnership that seeks to implement an 
    interdistrict approach to carrying out a program.

``SEC. 5245. REQUIREMENTS AND VOLUNTARY PARTICIPATION.

    ``(a) Parent and Community Involvement and Notice.--In carrying out 
a program under this subpart, an eligible entity shall--
        ``(1) develop the program with--
            ``(A) the involvement of parents and others in the 
        community to be served; and
            ``(B) individuals who will carry out the program, including 
        administrators, teachers, principals, and other staff; and
        ``(2) provide to parents of students in the area to be served 
    by the program with prompt notice of--
            ``(A) the existence of the program;
            ``(B) the program's availability; and
            ``(C) a clear explanation of how the program will operate.
    ``(b) Selection of Students.--An eligible entity that receives a 
grant under this subpart shall select students to participate in a 
program on the basis of a lottery, if more students apply for admission 
to the program than can be accommodated.
    ``(c) Voluntary Participation.--Student participation in a program 
funded under this subpart shall be voluntary.

``SEC. 5246. EVALUATIONS.

    ``(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--
        ``(1) to carry out evaluations;
        ``(2) to provide technical assistance; and
        ``(3) to disseminate information.
    ``(b) Evaluations.--In carrying out the evaluations under 
subsection (a), the Secretary shall, at a minimum, address--
        ``(1) how, and the extent to which, the programs promote 
    educational equity and excellence;
        ``(2) the characteristics of the students participating in the 
    programs; and
        ``(3) the effect of the programs on the academic achievement of 
    students participating in the programs, particularly students who 
    move from schools identified under section 1116 to schools not so 
    identified, and on the overall quality of participating schools and 
    districts.

``SEC. 5247. DEFINITIONS.

    ``In this subpart:
        ``(1) Charter school.--The term `charter school' has the 
    meaning given such term in section 5210.
        ``(2) Eligible entity.--The term `eligible entity' means--
            ``(A) one or more State educational agencies;
            ``(B) one or more local educational agencies; or
            ``(C) a partnership of--
                ``(i) one or more--

                    ``(I) State educational agencies; and
                    ``(II) local educational agencies or other public, 
                for-profit, or nonprofit entities; or

                ``(ii) one or more--

                    ``(I) local educational agencies; and
                    ``(II) public, for-profit, or nonprofit entities.

        ``(3) Low-performing school.--The term `low-performing school' 
    means a public elementary school or secondary school that has 
    failed to make adequate yearly progress, as described in section 
    1111(b), for two or more consecutive years.

``SEC. 5248. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this subpart 
$100,000,000 for fiscal year 2002 and each of the 5 succeeding fiscal 
years.

                  ``PART C--MAGNET SCHOOLS ASSISTANCE

``SEC. 5301. FINDINGS AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
        ``(1) Magnet schools are a significant part of the Nation's 
    effort to achieve voluntary desegregation in our Nation's schools.
        ``(2) The use of magnet schools has increased dramatically 
    since the inception of the magnet schools assistance program under 
    this Act, with approximately 2,000,000 students nationwide 
    attending such schools, of whom more than 65 percent are non-white.
        ``(3) Magnet schools offer a wide range of distinctive programs 
    that have served as models for school improvement efforts.
        ``(4) It is in the best interests of the United States--
            ``(A) to continue the Federal Government's support of local 
        educational agencies that are implementing court-ordered 
        desegregation plans and local educational agencies that are 
        voluntarily seeking to foster meaningful interaction among 
        students of different racial and ethnic backgrounds, beginning 
        at the earliest stage of such students' education;
            ``(B) to ensure that all students have equitable access to 
        a high quality education that will prepare all students to 
        function well in a technologically oriented and a highly 
        competitive economy comprised of people from many different 
        racial and ethnic backgrounds; and
            ``(C) to continue to desegregate and diversify schools by 
        supporting magnet schools, recognizing that segregation exists 
        between minority and nonminority students as well as among 
        students of different minority groups.
        ``(5) Desegregation efforts through magnet school programs are 
    a significant part of our Nation's effort to achieve voluntary 
    desegregation in schools and help to ensure equal educational 
    opportunities for all students.
    ``(b) Purpose.--The purpose of this part 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 include 
    assisting in the efforts of the United States to achieve voluntary 
    desegregation in public schools;
        ``(2) the development and implementation of magnet school 
    programs that will assist local educational agencies in achieving 
    systemic reforms and providing all students the opportunity to meet 
    challenging State academic content standards and student academic 
    achievement standards;
        ``(3) the development and design of innovative educational 
    methods and practices that promote diversity and increase choices 
    in public elementary schools and public secondary schools and 
    public educational programs;
        ``(4) courses of instruction within magnet schools that will 
    substantially strengthen the knowledge of academic subjects and the 
    attainment of tangible and marketable vocational, technological, 
    and professional 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 
    for the magnet schools is terminated; and
        ``(6) ensuring that all students enrolled in the magnet school 
    programs have equitable access to high quality education that will 
    enable the students to succeed academically and continue with 
    postsecondary education or productive employment.

``SEC. 5302. DEFINITION.

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

``SEC. 5303. PROGRAM AUTHORIZED.

    ``The Secretary, in accordance with this part, is authorized to 
award grants to eligible local educational agencies, and consortia of 
such agencies where appropriate, to carry out the purpose of this part 
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. 5304. ELIGIBILITY.

    ``A local educational agency, or consortium of such agencies where 
appropriate, is eligible to receive a grant under this part to carry 
out the purpose of this part 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 a grant is awarded to such local 
    educational agency, or consortium of such agencies, under this 
    part, adopt and implement a plan that has been approved by the 
    Secretary as adequate under title VI of the Civil Rights Act of 
    1964 for the desegregation of minority-group-segregated children or 
    faculty in such schools.

``SEC. 5305. APPLICATIONS AND REQUIREMENTS.

    ``(a) Applications.--An eligible local educational agency, or 
consortium of such agencies, desiring to receive a grant under this 
part shall submit an application to the Secretary at such time, in such 
manner, and containing such information and assurances as the Secretary 
may reasonably require.
    ``(b) Information and Assurances.--Each application submitted under 
subsection (a) shall include--
        ``(1) a description of--
            ``(A) how a grant awarded under this part will be used to 
        promote desegregation, including how the proposed magnet school 
        programs will increase interaction among students of different 
        social, economic, ethnic, and racial backgrounds;
            ``(B) the manner and extent to which the magnet school 
        program will increase student academic achievement in the 
        instructional area or areas offered by the school;
            ``(C) how the applicant will continue the magnet school 
        program after assistance under this part is no longer 
        available, and, if applicable, an explanation of why magnet 
        schools established or supported by the applicant with grant 
        funds under this part cannot be continued without the use of 
        grant funds under this part;
            ``(D) how grant funds under this part will be used--
                ``(i) to improve student academic achievement for all 
            students attending the magnet school programs; and
                ``(ii) to implement services and activities that are 
            consistent with other programs under this Act, and other 
            Acts, as appropriate; and
            ``(E) the criteria to be used in selecting students to 
        attend the proposed magnet school program; and
        ``(2) assurances that the applicant will--
            ``(A) use grant funds under this part for the purposes 
        specified in section 5301(b);
            ``(B) employ highly qualified teachers in the courses of 
        instruction assisted under this part;
            ``(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 applicant or other personnel for whom the applicant 
            has any administrative responsibility;
                ``(ii) the assignment of students to schools, or to 
            courses of instruction within the schools, of such 
            applicant, 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 program equitable consideration 
        for placement in the program, consistent with desegregation 
        guidelines and the capacity of the applicant to accommodate the 
        students.
    ``(c) Special Rule.--No grant shall be awarded under this part 
unless the Assistant Secretary of Education for Civil Rights determines 
that the assurances described in subsection (b)(2)(C) will be met.

``SEC. 5306. PRIORITY.

    ``In awarding grants under this part, 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 approved 
    desegregation plans and the magnet school program for which the 
    grant is sought;
        ``(2) propose to carry out new magnet school programs, or 
    significantly revise existing magnet school programs; and
        ``(3) propose to select students to attend magnet school 
    programs by methods such as lottery, rather than through academic 
    examination.

``SEC. 5307. USE OF FUNDS.

    ``(a) In General.--Grant funds made available under this part 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 of materials, 
    equipment, and computers, necessary to conduct programs in magnet 
    schools;
        ``(3) for the compensation, or subsidization of the 
    compensation, of elementary school and secondary school teachers 
    who are highly qualified, and instructional staff where applicable, 
    who are necessary to conduct 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 program to students who 
        are enrolled in the school but who are not enrolled in the 
        magnet school program; and
            ``(B) further the purpose of this part;
        ``(5) for activities, which may include professional 
    development, that will build the recipient's capacity to operate 
    magnet school programs once the grant period has ended;
        ``(6) to enable the local educational agency, or consortium of 
    such agencies, 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 of 
    such agencies, to have flexibility in designing magnet schools for 
    students in all grades.
    ``(b) Special Rule.--Grant funds under this part may be used for 
activities described in paragraphs (2) and (3) of subsection (a) only 
if the activities are directly related to improving student academic 
achievement based on the State's challenging academic content standards 
and student academic achievement standards or directly related to 
improving student reading skills or knowledge of mathematics, science, 
history, geography, English, foreign languages, art, or music, or to 
improving vocational, technological, and professional skills.

``SEC. 5308. PROHIBITION.

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

``SEC. 5309. LIMITATIONS.

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

``SEC. 5310. EVALUATIONS.

    ``(a) Reservation.--The Secretary may reserve not more than 2 
percent of the funds appropriated under section 5311(a) for any fiscal 
year to carry out evaluations, provide technical assistance, and carry 
out dissemination projects with respect to magnet school programs 
assisted under this part.
    ``(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 a high 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; and
        ``(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.
    ``(c) Dissemination.--The Secretary shall collect and disseminate 
to the general public information on successful magnet school programs.

``SEC. 5311. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.

    ``(a) Authorization.--For the purpose of carrying out this part, 
there are authorized to be appropriated $125,000,000 for fiscal year 
2002 and such sums as may be necessary for each of the 5 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 in using such amounts in excess of $75,000,000 to 
awarding grants to local educational agencies or consortia of such 
agencies that did not receive a grant under this part in the preceding 
fiscal year.

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

``SEC. 5401. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
the following amounts:
        ``(1) $550,000,000 for fiscal year 2002.
        ``(2) $575,000,000 for fiscal year 2003.
        ``(3) $600,000,000 for fiscal year 2004.
        ``(4) $625,000,000 for fiscal year 2005.
        ``(5) $650,000,000 for fiscal year 2006.
        ``(6) $675,000,000 for fiscal year 2007.

           ``Subpart 1--Fund for the Improvement of Education

``SEC. 5411. PROGRAMS AUTHORIZED.

    ``(a) Authorization.--The Secretary is authorized to support 
nationally significant programs to improve the quality of elementary 
and secondary education at the State and local levels and help all 
children meet challenging State academic content and student academic 
achievement standards. The Secretary may carry out such programs 
directly, or through grants to, or contracts with--
        ``(1) States or local educational agencies;
        ``(2) institutions of higher education; and
        ``(3) other public and private agencies, organizations, and 
    institutions.
    ``(b) Uses of Funds.--Funds made available under section 5401 to 
carry out this subpart may be used for any of the following programs:
        ``(1) Activities to promote systemic education reform at the 
    State and local levels, including scientifically based research, 
    development, and evaluation designed to improve--
            ``(A) student academic achievement at the State and local 
        level; and
            ``(B) strategies for effective parent and community 
        involvement.
        ``(2) Programs at the State and local levels that are designed 
    to yield significant results, including programs to explore 
    approaches to public school choice and school-based decisionmaking.
        ``(3) Recognition programs, which may include financial awards 
    to States, local educational agencies, and schools that have made 
    the greatest progress, based on the Secretary's determination or on 
    a nomination by the State in which the school is located (or in the 
    case of a Bureau funded school, by the Secretary of the Interior) 
    in--
            ``(A) improving the academic achievement of economically 
        disadvantaged students and students from major racial and 
        ethnic minority groups; and
            ``(B) closing the academic achievement gap for those groups 
        of students farthest away from the proficient level on the 
        academic assessments administered by the State under section 
        1111.
        ``(4) Scientifically based studies and evaluations of education 
    reform strategies and innovations, and the dissemination of 
    information on the effectiveness of such strategies and 
    innovations.
        ``(5) Identification and recognition of exemplary schools and 
    programs, such as Blue Ribbon Schools, including programs to 
    evaluate the effectiveness of using the best practices of exemplary 
    or Blue Ribbon Schools to improve academic achievement.
        ``(6) Activities to support Scholar-Athlete Games programs, 
    including the World Scholar-Athlete Games and the U.S. Scholar-
    Athlete Games.
        ``(7) Programs to promote voter participation in American 
    elections through programs, such as the National Student/Parent 
    Mock Election and Kids Voting USA.
        ``(8) Demonstrations relating to the planning and evaluation of 
    the effectiveness of programs under which local educational 
    agencies or schools contract with private management organizations 
    to reform a school or schools.
        ``(9) Other programs that meet the purposes of this Act.
    ``(c) Basis of Awards.--The Secretary is authorized to--
        ``(1) make awards under this subpart on the basis of 
    competitions announced by the Secretary; and
        ``(2) support meritorious unsolicited proposals for awards 
    under this subpart.
    ``(d) Effectiveness of Programs.--The Secretary shall ensure that 
programs supported under this subpart are designed so that their 
effectiveness is readily ascertainable, and shall ensure that such 
effectiveness is assessed using rigorous, scientifically based research 
and evaluations.

``SEC. 5412. APPLICATIONS.

    ``(a) Submission.--To be eligible for an award under this subpart, 
an entity 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 submitted under subsection (a) 
shall--
        ``(1) establish clear objectives, which are based on 
    scientifically based research, for the proposed program; and
        ``(2) describe the activities the applicant will carry out in 
    order to meet the objectives described in paragraph (1).
    ``(c) Peer Review.--The Secretary shall use a peer review process 
in reviewing applications for awards under this subpart and in 
recognizing States, local educational agencies, and schools under 
section 5411(b)(3), only if funds are used for such recognition 
programs. The Secretary may use funds appropriated under this subpart 
for the cost of such peer review.

``SEC. 5413. PROGRAM REQUIREMENTS.

    ``(a) Evaluations.--A recipient of an award under this subpart 
shall--
        ``(1) evaluate the effectiveness of the program funded under 
    the award in achieving the objectives stated in applications 
    submitted under section 5412; and
        ``(2) report to the Secretary such information as may be 
    required to determine the effectiveness of such program, including 
    evidence of progress toward meeting such objectives.
    ``(b) Dissemination of Evaluation Results.--The Secretary shall 
provide for the dissemination of the evaluations of programs funded 
under this subpart by making the evaluations publicly available upon 
request, and shall provide public notice that the evaluations are so 
available.
    ``(c) Matching Funds.--The Secretary may require recipients of 
awards under this subpart to provide matching funds from non-Federal 
sources, and shall permit the recipients to match funds in whole or in 
part with in-kind contributions.
    ``(d) Special Rule for Recognition Programs.--The application 
requirements of section 5412(b), and the evaluation requirements of 
subsections (a) and (b) of this section, do not apply to recognition 
programs under section 5411(b)(3).

``SEC. 5414. STUDIES OF NATIONAL SIGNIFICANCE.

    ``(a) Studies.--The Secretary shall conduct the following studies 
of national significance:
        ``(1) Unhealthy public school buildings.--A study regarding the 
    health and learning impacts of environmentally unhealthy public 
    school buildings on students and teachers. The study shall include 
    the following information:
            ``(A) The characteristics of those public elementary school 
        and secondary school buildings that contribute to unhealthy 
        school environments.
            ``(B) The health and learning impacts of environmental 
        unhealthy public school buildings on students that are 
        attending or that have attended such schools.
            ``(C) Recommendations to Congress on how to assist schools 
        that are out of compliance with Federal or State health and 
        safety codes, and a cost estimate of bringing up 
        environmentally unhealthy public school buildings to minimum 
        Federal health and safety building standards.
        ``(2) Exposure to violent entertainment.--A study regarding how 
    exposure to violent entertainment (such as in movies, music, 
    television, Internet content, video games, and arcade games) 
    affects children's cognitive development and educational 
    achievement.
        ``(3) Sexual abuse in schools.--A study regarding the 
    prevalence of sexual abuse in schools, including recommendations 
    and legislative remedies for addressing the problem of sexual abuse 
    in schools.
    ``(b) Completion Date.--The studies under subsection (a) shall be 
completed not later than 18 months after the date of enactment of the 
No Child Left Behind Act of 2001.
    ``(c) Public Dissemination.--The Secretary shall make the study 
conducted under subsection (a)(1) available to the public through the 
Educational Resources Information Center National Clearinghouse for 
Educational Facilities of the Department.

    ``Subpart 2--Elementary and Secondary School Counseling Programs

``SEC. 5421. ELEMENTARY AND SECONDARY SCHOOL COUNSELING PROGRAMS.

    ``(a) Grants Authorized.--
        ``(1) In general.--The Secretary is authorized to award grants 
    to local educational agencies to enable such agencies to establish 
    or expand elementary school and secondary school counseling 
    programs that comply with the requirements of subsection (c)(2).
        ``(2) Special consideration.--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 children in the schools served by the 
        local educational agency, in part by providing information on 
        current ratios of students to school counselors, students to 
        school social workers, and students to school psychologists;
            ``(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 local 
    educational agencies located in urban, rural, and suburban areas.
        ``(4) Duration.--A grant under this section shall be awarded 
    for a period not to exceed 3 years.
        ``(5) Maximum grant.--A grant awarded under this section shall 
    not exceed $400,000 for any fiscal year.
        ``(6) Supplement, not supplant.--Funds made available under 
    this section shall be used to supplement, and not supplant, other 
    Federal, State, or local funds used for providing school-based 
    counseling and mental health services to students.
    ``(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 counseling 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 how the local educational agency will 
        involve community groups, social service agencies, and other 
        public and private entities in collaborative efforts to enhance 
        the program and promote school-linked services integration;
            ``(E) document that the local educational agency has the 
        personnel qualified to develop, implement, and administer the 
        program;
            ``(F) describe how diverse cultural populations, if 
        applicable, will be served through the program;
            ``(G) assure that the funds made available under this 
        subpart for any fiscal year will be used to supplement, and not 
        supplant, any other Federal, State, or local funds used for 
        providing school-based counseling and mental health services to 
        students; and
            ``(H) assure that the applicant will appoint an advisory 
        board composed of interested parties, including parents, 
        teachers, school administrators, counseling services providers 
        described in subsection (c)(2)(D), and community leaders, to 
        advise the local educational agency on the design and 
        implementation of the program.
    ``(c) Use of Funds.--
        ``(1) In general.--The Secretary is authorized to award grants 
    to local educational agencies to enable the local educational 
    agencies to initiate or expand elementary school or secondary 
    school counseling programs that comply with the requirements of 
    paragraph (2).
        ``(2) Requirements.--Each program funded under this section 
    shall--
            ``(A) be comprehensive in addressing the counseling and 
        educational needs of all students;
            ``(B) use a developmental, preventive approach to 
        counseling;
            ``(C) increase the range, availability, quantity, and 
        quality of counseling services in the elementary schools and 
        secondary schools of the local educational agency;
            ``(D) expand counseling services through qualified school 
        counselors, school social workers, school psychologists, other 
        qualified psychologists, or child and adolescent psychiatrists;
            ``(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 
        peer interaction;
            ``(F) provide counseling services in settings that meet the 
        range of student needs;
            ``(G) include in-service training appropriate to the 
        activities funded under this Act for teachers, instructional 
        staff, and appropriate school personnel, including in-service 
        training in appropriate identification and early intervention 
        techniques by school counselors, school social workers, school 
        psychologists, other qualified psychologists, and child and 
        adolescent psychiatrists;
            ``(H) involve parents of participating students in the 
        design, implementation, and evaluation of the counseling 
        program;
            ``(I) involve community groups, social service agencies, or 
        other public or private entities in collaborative efforts to 
        enhance the program and promote school-linked integration of 
        services;
            ``(J) evaluate annually the effectiveness and outcomes of 
        the counseling services and activities assisted under this 
        section;
            ``(K) ensure a team approach to school counseling in the 
        schools served by the local educational agency by working 
        toward ratios recommended by the American School Health 
        Association of one school counselor to 250 students, one school 
        social worker to 800 students, and one school psychologist to 
        1,000 students; and
            ``(L) ensure that school counselors, school psychologists, 
        other qualified psychologists, school social workers, or child 
        and adolescent psychiatrists paid from funds made available 
        under this section spend a majority of their time counseling 
        students or in other activities directly related to the 
        counseling process.
    ``(d) Limitation on Administrative Costs.--Not more than 4 percent 
of the amounts made available under this section for any fiscal year 
may be used for administrative costs to carry out this section.
    ``(e) Definitions.--For the purpose of this section--
        ``(1) the term `child and adolescent psychiatrist' means an 
    individual who--
            ``(A) possesses State medical licensure; and
            ``(B) has completed residency training programs in both 
        general psychiatry and child and adolescent psychiatry;
        ``(2) the term `other qualified psychologist' means an 
    individual who has demonstrated competence in counseling children 
    in a school setting and who--
            ``(A) is licensed in psychology by the State in which the 
        individual works; and
            ``(B) practices in the scope of the individual's education, 
        training, and experience with children in school settings;
        ``(3) the term `school counselor' means an individual who has 
    documented competence in counseling children and adolescents in a 
    school setting and who--
            ``(A) is licensed by the State or certified 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;
        ``(4) the term `school psychologist' means an individual who--
            ``(A) has completed 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 are in the school 
        setting;
            ``(B) is licensed or certified in school psychology by 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; and
        ``(5) the term `school social worker' means an individual who--
            ``(A) holds a master's degree in social work from a program 
        accredited by the Council on Social Work Education; and
            ``(B)(i) is licensed or certified by the State in which 
        services are provided; or
            ``(ii) in the absence of such State licensure or 
        certification, possesses a national credential or certification 
        as a school social work specialist granted by an independent 
        professional organization.
    ``(f) Report.--Not later than 2 years after assistance is made 
available to local educational agencies under subsection (c), the 
Secretary shall make publicly available a report--
        ``(1) evaluating the programs assisted pursuant to each grant 
    under this subpart; and
        ``(2) outlining the information from local educational agencies 
    regarding the ratios of students to--
            ``(A) school counselors;
            ``(B) school social workers; and
            ``(C) school psychologists.
    ``(g) Special Rule.--
        ``(1) Amount equals or exceeds $40,000,000.--If the amount of 
    funds made available by the Secretary for this subpart equals or 
    exceeds $40,000,000, the Secretary shall award not less than 
    $40,000,000 in grants to local educational agencies to enable the 
    agencies to establish or expand counseling programs in elementary 
    schools.
        ``(2) Amount less than $40,000,000.--If the amount of funds 
    made available by the Secretary for this subpart is less than 
    $40,000,000, the Secretary shall award grants to local educational 
    agencies only to establish or expand counseling programs in 
    elementary schools.

            ``Subpart 3--Partnerships in Character Education

``SEC. 5431. 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--
            ``(A) are able to be integrated into classroom instruction 
        and to be consistent with State academic content standards; and
            ``(B) are able to be carried out in conjunction with other 
        educational reform efforts.
        ``(2) Eligible entity.--In this section, the term `eligible 
    entity' means--
            ``(A) a State educational agency in partnership with--
                ``(i) one or more local educational agencies; or
                ``(ii) one or more--

                    ``(I) local educational agencies; and
                    ``(II) nonprofit organizations or entities, 
                including an institution of higher education;

            ``(B) a local educational agency or consortium of local 
        educational agencies; or
            ``(C) a local educational agency in partnership with one or 
        more nonprofit organizations or entities, including an 
        institution of higher education.
        ``(3) Duration.--Each grant under this section shall be awarded 
    for a period not to exceed 5 years, of which the eligible entity 
    may 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 a grant made 
    by the Secretary to a State educational agency under this section 
    shall not be less than $500,000 if the State educational agency--
            ``(A) is in a partnership described in paragraph (2)(A); 
        and
            ``(B) meets such requirements as the Secretary may 
        establish under this section.
    ``(b) Contracts Under Program.--
        ``(1) Evaluation.--Each eligible entity awarded a grant under 
    this section may contract with outside sources, including 
    institutions of higher education and private and nonprofit 
    organizations, for the purposes of--
            ``(A) evaluating the program for which the assistance is 
        made available;
            ``(B) measuring the integration of such program into the 
        curriculum and teaching methods of schools where the program is 
        carried out; and
            ``(C) measuring the success of such program in fostering 
        the elements of character selected by the recipient under 
        subsection (c).
        ``(2) Materials and program development.--Each eligible entity 
    awarded a grant under this section may contract with outside 
    sources, including institutions of higher education and private and 
    nonprofit organizations, for assistance in--
            ``(A) developing secular curricula, materials, teacher 
        training, and other activities related to character education; 
        and
            ``(B) integrating secular character education into the 
        curricula and teaching methods of schools where the program is 
        carried out.
    ``(c) Elements of Character.--
        ``(1) Selection.--
            ``(A) In general.--Each eligible entity awarded a grant 
        under this section may select the elements of character that 
        will be taught under the program for which the grant was 
        awarded.
            ``(B) Consideration of views.--In selecting elements of 
        character under subparagraph (A), the eligible entity shall 
        consider the views of the parents of the students to be taught 
        under the program and the views of the students.
        ``(2) Example elements.--Elements of character selected under 
    this subsection may include any of the following:
            ``(A) Caring.
            ``(B) Civic virtue and citizenship.
            ``(C) Justice and fairness.
            ``(D) Respect.
            ``(E) Responsibility.
            ``(F) Trustworthiness.
            ``(G) Giving.
            ``(H) Any other elements deemed appropriate by the eligible 
        entity.
    ``(d) 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 3 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) providing assistance to local educational agencies, 
        schools, or institutions of higher education; and
            ``(D) technical assistance and evaluation.
    ``(e) Application.--
        ``(1) In general.--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) Required information.--Each application for a grant under 
    this section shall include (together with any other information 
    that the Secretary may require) information that--
            ``(A) demonstrates that the program for which the grant is 
        sought has clear objectives that are based on scientifically 
        based research;
            ``(B) describes any partnerships or collaborative efforts 
        among the organizations and entities of the eligible entity;
            ``(C) describes the activities that will be carried out 
        with the grant funds and how such activities will meet the 
        objectives described in subparagraph (A), including--
                ``(i) how parents, students, students with disabilities 
            (including those with mental or physical 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; and
                ``(iii) methods of teacher training and parent 
            education that will be used or developed;
            ``(D) describes how the program for which the grant is 
        sought will be linked to other efforts to improve academic 
        achievement, including--
                ``(i) broader educational reforms that are being 
            instituted by the eligible entity or its partners; and
                ``(ii) State academic content standards;
            ``(E) in the case of an eligible entity that is a State 
        educational agency, describes how the State educational 
        agency--
                ``(i) will provide technical and professional 
            assistance to its local educational agency partners in the 
            development and implementation of character education 
            programs; and
                ``(ii) will assist other interested local educational 
            agencies that are not members of the original partnership 
            in designing and establishing character education programs;
            ``(F) describes how the eligible entity will evaluate the 
        success of its program--
                ``(i) based on the objectives described in subparagraph 
            (A); and
                ``(ii) in cooperation with any national evaluation 
            conducted pursuant to subsection (h)(2)(B)(iii); and
            ``(G) assures that the eligible entity annually will 
        provide to the Secretary such information as may be required to 
        determine the effectiveness of the program.
    ``(f) Selection of Recipients.--
        ``(1) Peer review.--
            ``(A) In general.--In selecting eligible entities to 
        receive grants under this section from among the applicants for 
        such grants, the Secretary shall use a peer review process that 
        includes the participation of experts in the field of character 
        education and development.
            ``(B) Use of funds.--The Secretary may use funds 
        appropriated under this section for the cost of carrying out 
        peer reviews under this paragraph.
        ``(2) Selection criteria.--Each selection under paragraph (1) 
    shall be made on the basis of the quality of the application 
    submitted, taking into consideration such factors as--
            ``(A) the extent to which the program fosters character in 
        students and the potential for improved student academic 
        achievement;
            ``(B) the extent and ongoing nature of parental, student, 
        and community involvement;
            ``(C) the quality of the plan for measuring and assessing 
        success; and
            ``(D) the likelihood that the objectives of the program 
        will be achieved.
        ``(3) Equitable distribution.--In making selections under this 
    subsection, the Secretary shall ensure, to the extent practicable 
    under paragraph (2), that the programs assisted under this section 
    are equitably distributed among the geographic regions of the 
    United States, and among urban, suburban, and rural areas.
    ``(g) Participation by Private School Children and Teachers.--Each 
eligible entity that receives a grant under this section shall provide, 
to the extent feasible and appropriate, for the participation in 
programs and activities under this section of students and teachers in 
private elementary schools and secondary schools.
    ``(h) Evaluation and Program Development.--
        ``(1) 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 its impact on students, students with 
    disabilities (including those with mental or physical 
    disabilities), teachers, administrators, parents, and others--
            ``(A) by the end of the second year of the program; and
            ``(B) not later than 1 year after completion of the grant 
        period.
        ``(2) National research, dissemination, and evaluation.--
            ``(A) In general.--
                ``(i) Authorization.--The Secretary is authorized to 
            award grants to, or enter into contracts or cooperative 
            agreements with, State educational agencies 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.
                ``(ii) Reservation of funds.--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 for the following:
                ``(i) Conducting research and development activities 
            that focus on matters such as--

                    ``(I) the extent to which schools are undertaking 
                character education initiatives;
                    ``(II) the effectiveness of instructional models 
                for all students, including students with disabilities 
                (including those with mental or physical disabilities);
                    ``(III) materials and curricula for use by programs 
                in character education;
                    ``(IV) models of professional development in 
                character education;
                    ``(V) the development of measures of effectiveness 
                for character education programs (which may include the 
                factors described in paragraph (3)); and
                    ``(VI) the effectiveness of State and local 
                programs receiving funds under this section.

                ``(ii) Providing technical assistance to State and 
            local programs, particularly on matters of program 
            evaluation.
                ``(iii) Conducting evaluations of State and local 
            programs receiving funding under this section, that may be 
            conducted through a national clearinghouse under clause 
            (iv).
                ``(iv) Compiling and disseminating, through a national 
            clearinghouse or other means--

                    ``(I) information on model character education 
                programs;
                    ``(II) information about high quality 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 nationwide, 
                including educators, parents, and administrators.

            ``(C) Partnerships.--In carrying out national activities 
        under this paragraph, the Secretary may enter into partnerships 
        with national nonprofit character education organizations and 
        institutions of higher education with expertise and successful 
        experience in implementing--
                ``(i) character education programs that had an 
            effective impact on schools, students, students with 
            disabilities (including those with mental or physical 
            disabilities), and teachers; or
                ``(ii) character education program evaluation and 
            research.
            ``(D) Partnership for activities under subparagraph 
        (B)(iv).--In carrying out national activities under 
        subparagraph (B)(iv), the Secretary may enter into a 
        partnership with a national nonprofit character education 
        organization that will disseminate information to educators, 
        parents, administrators, and others nationwide, including 
        information about the range of model character education 
        programs, materials, and curricula.
            ``(E) Report.--Each entity awarded a grant or entering into 
        a contract or cooperative agreement under this paragraph shall 
        submit an annual report to the Secretary that--
                ``(i) describes the entity's progress in carrying out 
            research, development, dissemination, evaluation, and 
            technical assistance under this paragraph;
                ``(ii) identifies unmet and future information needs in 
            the field of character education; and
                ``(iii) if applicable, describes the progress of the 
            entity in carrying out the requirements of subparagraph 
            (B)(iv), including a listing of--

                    ``(I) the number of requests for information 
                received by the entity in the course of carrying out 
                such requirements;
                    ``(II) the types of organizations making such 
                requests; and
                    ``(III) the types of information requested.

        ``(3) Factors.--Factors that may be considered in evaluating 
    the success of programs funded under this section include the 
    following:
            ``(A) Discipline issues.
            ``(B) Student academic achievement.
            ``(C) Participation in extracurricular activities.
            ``(D) Parental and community involvement.
            ``(E) Faculty and administration involvement.
            ``(F) Student and staff morale.
            ``(G) Overall improvements in school climate for all 
        students, including students with disabilities (including those 
        with mental or physical disabilities).
    ``(i) Permissive Match.--
        ``(1) In general.--The Secretary may require eligible entities 
    to match funds awarded under this section with non-Federal funds, 
    except that the amount of the match may not exceed the amount of 
    the grant award.
        ``(2) Sliding scale.--The amount of a match under paragraph (1) 
    shall be established based on a sliding scale that takes into 
    account--
            ``(A) the poverty of the population to be targeted by the 
        eligible entity; and
            ``(B) the ability of the eligible entity to obtain funding 
        for the match.
        ``(3) In-kind contributions.--The Secretary shall permit 
    eligible entities to match funds in whole or in part with in-kind 
    contributions.
        ``(4) Consideration.--Notwithstanding this subsection, the 
    Secretary in making awards under this section shall not consider 
    the ability of an eligible entity to match funds.

               ``Subpart 4--Smaller Learning Communities

``SEC. 5441. SMALLER LEARNING COMMUNITIES.

    ``(a) Grant Authority.--The Secretary is authorized to award grants 
to local educational agencies to enable the agencies to create a 
smaller learning community or communities.
    ``(b) Application.--Each local educational agency 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. The application shall include descriptions of 
the following:
        ``(1) Strategies and methods the local educational agency 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 smaller 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 subpart.
        ``(7) The objectives of the activities assisted under this 
    subpart, including a description of how such activities will better 
    enable all students to reach challenging State academic content 
    standards and State student academic achievement standards.
        ``(8) The methods by which the local educational agency will 
    assess progress in meeting the objectives described in paragraph 
    (7).
        ``(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 
    remainder of the school.
        ``(10) 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 local educational agency will coordinate or use 
    funds provided under this subpart with other funds provided under 
    this Act or other Federal laws.
        ``(12) The grade levels or ages of students who will 
    participate in the smaller learning community or communities.
        ``(13) The method of placing students in the smaller learning 
    community or communities, such that students are not placed 
    according to ability or any other measure, but are placed at random 
    or by their own choice, and not pursuant to testing or other 
    judgments.
    ``(c) Authorized Activities.--Funds under this section may be used 
for one or more of the following:
        ``(1) To study--
            ``(A) the feasibility of creating the smaller learning 
        community or communities; and
            ``(B) effective and innovative organizational and 
        instructional strategies that will be used in the smaller 
        learning community or communities.
        ``(2) To research, develop, and implement--
            ``(A) strategies for creating the smaller learning 
        community or communities; and
            ``(B) strategies for effective and innovative changes in 
        curriculum and instruction, geared to challenging State 
        academic content standards and State student academic 
        achievement standards.
        ``(3) To provide professional development for school staff in 
    innovative teaching methods that--
            ``(A) challenge and engage students; and
            ``(B) will be used in the smaller learning community or 
        communities.
        ``(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 and provide links between students and their community.

  ``Subpart 5--Reading Is Fundamental--Inexpensive Book Distribution 
                                Program

``SEC. 5451. INEXPENSIVE BOOK DISTRIBUTION PROGRAM FOR READING 
              MOTIVATION.

    ``(a) Purpose.--The purpose of this subpart is to establish and 
implement a model partnership between a governmental entity and a 
private entity, to help prepare young children for reading and to 
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 contain each of the following:
        ``(1) A provision that the contractor will enter into 
    subcontracts with local private nonprofit groups or organizations, 
    or with public agencies, under which each subcontractor will agree 
    to establish, operate, and provide the non-Federal share of the 
    cost of reading motivation programs that include the distribution 
    of books, by gift (to the extent feasible) or by loan, to children 
    from birth through secondary school age, including children in 
    family literacy programs.
        ``(2) A provision that funds made available to subcontractors 
    will be used only to pay the Federal share of the cost of such 
    programs.
        ``(3) A provision 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 the following:
            ``(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.
            ildren without access to libraries.
            ``(H) Institutionalized or incarcerated children.
            ``(I) Children whose parents are institutionalized or 
        incarcerated.
        ``(4) A provision that the contractor will provide such 
    training and technical assistance to subcontractors as may be 
    necessary to carry out the purpose of this subpart.
        ``(5) A provision that the contractor will annually report to 
    the Secretary the number, and a description, of programs funded 
    under paragraph (3).
        ``(6) 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) Federal Share Defined.--In this section, the term `Federal 
share' means, with respect to the cost to a subcontractor of purchasing 
books to be paid for 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.

               ``Subpart 6--Gifted and Talented Students

``SEC. 5461. SHORT TITLE.

    ``This subpart may be cited as the `Jacob K. Javits Gifted and 
Talented Students Education Act of 2001'.

``SEC. 5462. PURPOSE.

    ``The purpose of this subpart is to initiate a coordinated program 
of scientifically based research, demonstration projects, innovative 
strategies, and similar activities designed to build and enhance the 
ability of elementary schools and secondary schools nationwide to meet 
the special educational needs of gifted and talented students.

``SEC. 5463. RULE OF 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. 5464. AUTHORIZED PROGRAMS.

    ``(a) Establishment of Program.--
        ``(1) In general.--The Secretary (after consultation with 
    experts in the field of the education of gifted and talented 
    students) is authorized to 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 (25 U.S.C. 
    450b)) 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 seeking 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) Use of Funds.--Programs and projects assisted under this 
section may include each of the following:
        ``(1) Conducting--
            ``(A) scientifically based 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) Carrying out professional development (including 
    fellowships) for personnel (including leadership personnel) 
    involved in the education of gifted and talented students.
        ``(3) Establishing and operating 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 (such as 
    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) Carrying out 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.
        ``(6) Making materials and services available through State 
    regional educational service centers, institutions of higher 
    education, or other entities.
        ``(7) Providing funds for challenging, high-level course work, 
    disseminated through technologies (including distance learning), 
    for individual students or groups of students in schools and local 
    educational agencies that would not otherwise have the resources to 
    provide such course work.
    ``(c) Special Rule.--To the extent that funds appropriated to carry 
out this subpart for a fiscal year beginning with fiscal year 2002 
exceed such funds appropriated for fiscal year 2001, the Secretary 
shall use such excess funds to award grants, on a competitive basis, to 
State educational agencies, local educational agencies, or both, to 
implement activities described in subsection (b).
    ``(d) Center for Research and Development.--
        ``(1) 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 for the 
    Education of Gifted and Talented Children and Youth through grants 
    to, or contracts with, one or more institutions of higher education 
    or State educational agencies, or a combination or consortium of 
    such institutions and agencies and other public or private agencies 
    and organizations, for the purpose of carrying out activities 
    described in subsection (b).
        ``(2) Director.--The National Center shall be headed by 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 
    educational agencies, local educational agencies, or other public 
    or private agencies and organizations.
        ``(3) Funding.--The Secretary may use not more than 30 percent 
    of the funds made available under this subpart for fiscal year 2001 
    to carry out this subsection.
    ``(e) Coordination.--Scientifically based 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 scientifically based research 
    activities which are jointly funded and carried out with such 
    Office.

``SEC. 5465. PROGRAM PRIORITIES.

    ``(a) General Priority.--In carrying out 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 (including 
    economically disadvantaged individuals, individuals with limited 
    English proficiency, and individuals with disabilities) who may not 
    be identified and served through traditional assessment methods.
    ``(b) Service Priority.--The Secretary shall ensure that not less 
than 50 percent of the applications approved under section 5464(a)(2) 
in a fiscal year address the priority described in subsection (a)(2).

``SEC. 5466. GENERAL PROVISIONS.

    ``(a) 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 students.
    ``(b) Review, Dissemination, and Evaluation.--The Secretary shall--
        ``(1) use a peer review process in reviewing applications under 
    this subpart;
        ``(2) ensure that information on the activities and results of 
    programs and projects funded under this subpart is disseminated to 
    appropriate State educational agencies, local educational agencies, 
    and other appropriate organizations, including nonprofit private 
    organizations; and
        ``(3) evaluate the effectiveness of programs under this subpart 
    in accordance with section 9601, 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 
    No Child Left Behind Act of 2001.
    ``(c) 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 
shall--
        ``(1) administer and coordinate the programs authorized under 
    this subpart;
        ``(2) 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;
        ``(3) assist the Assistant Secretary for Educational Research 
    and Improvement in identifying research priorities that reflect the 
    needs of gifted and talented students; and
        ``(4) shall disseminate, and consult on, the information 
    developed under this subpart with other offices within the 
    Department.

                   ``Subpart 7--Star Schools Program

``SEC. 5471. SHORT TITLE.

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

``SEC. 5472. PURPOSES.

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

``SEC. 5473. GRANT PROGRAM AUTHORIZED.

    ``(a) Authorization.--The Secretary, in conjunction with 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 the following:
        ``(1) Development, construction, acquisition, maintenance, and 
    operation of telecommunications facilities and equipment.
        ``(2) Development and acquisition of live, interactive 
    instructional programming.
        ``(3) Development and acquisition of preservice and inservice 
    teacher training programs based on established research regarding 
    teacher-to-teacher mentoring, and ongoing, in-class instruction.
        ``(4) Establishment of teleconferencing facilities and 
    resources for making interactive training available to teachers.
        ``(5) Obtaining technical assistance.
        ``(6) Coordination of the design and connectivity of 
    telecommunications networks to reach the greatest number of 
    schools.
    ``(b) Duration and Amount.--
        ``(1) In general.--A grant under this section may not exceed--
            ``(A) 5 years in duration (subject to subsection (c)); and
            ``(B) $10,000,000 in any single fiscal year.
    ``(c) Renewal.--
        ``(1) In general.--Grants awarded under subsection (a) may be 
    renewed for a single additional period of 3 years.
        ``(2) Continuing Eligibility.--In order to be eligible to 
    receive a grant renewal under this subsection, a grant recipient 
    shall demonstrate, to the satisfaction of the Secretary, in an 
    addendum to its application submitted under section 5474, that the 
    grant recipient will--
            ``(A) continue to provide services in the subject areas and 
        geographic areas assisted with funds received under this 
        subpart for the previous grant period; and
            ``(B) use all grant funds received under this subpart for 
        the 3 year renewal 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.
        ``(3) Supplement, not supplant.--Grant funds received under 
    this subsection shall be used to supplement, and not supplant, 
    services provided by the grant recipient under this subpart in the 
    previous fiscal year.
    ``(d) Reservations.--
        ``(1) Instructional programming.--At least 25 percent of the 
    funds made available to the Secretary for any fiscal year under 
    this subpart shall be used for the cost of instructional 
    programming.
        ``(2) Local educational agency assistance.--At least 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 that are eligible to receive assistance under 
    part A of title I.
    ``(e) Federal Share.--
        ``(1) Amount.--The Federal share of the cost of projects funded 
    under this section shall not exceed the following amounts:
            ``(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.
            ``(C) 50 percent for the fifth such year.
        ``(2) Reduction or waiver.--The Secretary may reduce or waive 
    the corresponding non-Federal share under paragraph (1) upon a 
    showing of financial hardship.
    ``(f) Required local educational agency participation.--The 
Secretary is authorized to make a grant under this section to any 
eligible entity, if at least one local educational agency is 
participating in the proposed program.
    ``(g) Assistance Obtaining Satellite Time.--The Secretary may 
assist recipients of grants made under this section in acquiring 
satellite time, where appropriate, as economically as possible.

``SEC. 5474. APPLICATIONS.

    ``(a) Submission.--Each eligible entity that desires to receive a 
grant under section 5473 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) Contents.--An application submitted under subsection (a) 
shall include each of the following:
        ``(1) A description of how the proposed program will assist all 
    students to have an opportunity to meet challenging State academic 
    achievement standards, how such program will assist State and local 
    educational reform efforts, and how such program will contribute to 
    creating a high-quality system of educational development.
        ``(2) A description of 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, a description of the types of 
    programming that will be developed to enhance instruction and 
    training and provide an assurance 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) A description of 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) A description of 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) A description of 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) A description of how existing telecommunications 
    equipment, facilities, and services, where available, will be used.
        ``(8) An assurance 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) An assurance 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) An assurance that the applicant will use the funds 
    provided under this subpart to supplement, and not supplant, funds 
    available for the purposes of this subpart.
        ``(11) A description of how funds received under this subpart 
    will be coordinated with funds received for educational technology 
    in the classroom.
        ``(12) A description of 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 
        models of exemplary academic 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) A description of how the proposed program as a whole 
    will be financed and how arrangements for future financing will be 
    developed before the program expires.
        ``(14) 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) An assurance that the applicant will provide such 
    information and cooperate in any evaluation that the Secretary may 
    conduct under this subpart.
        ``(16) Such additional assurances as the Secretary may 
    reasonably require.
    ``(c) Approval.--In approving applications submitted under 
subsection (a) for grants under section 5473, the Secretary shall--
        ``(1) to the extent feasible, ensure an equitable geographic 
    distribution of services provided under this subpart.
        ``(2) give priority to applications describing programs that--
            ``(A) propose high-quality plans, will provide instruction 
        consistent with State academic content standards, or will 
        otherwise provide significant and specific assistance to States 
        and local educational agencies undertaking systemic education 
        reform;
            ``(B) will provide services to programs serving adults, 
        especially parents, with low levels of literacy;
            ``(C) will serve schools with significant numbers of 
        children counted for the purposes of part A of title I;
            ``(D) ensure that the eligible entity will--
                ``(i) 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;
                ``(ii) 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;
                ``(iii) provide a comprehensive range of courses for 
            educators to teach instructional strategies for students 
            with different skill levels;
                ``(iv) provide training to participating educators in 
            ways to integrate telecommunications courses into existing 
            school curriculum;
                ``(v) provide instruction for students, teachers, and 
            parents;
                ``(vi) serve a multistate area; and
                ``(vii) give priority to the provision of equipment and 
            linkages to isolated areas; and
            ``(E) 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.

``SEC. 5475. OTHER GRANT ASSISTANCE.

    ``(a) Special Statewide Network.--
        ``(1) In general.--The Secretary, in conjunction with the 
    Office of Educational Technology, may provide assistance to a 
    statewide telecommunications network 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) Matching 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 is authorized to provide 
    assistance, on a competitive basis, to a local educational agency, 
    or a consortium of such agencies, 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 
    one or more programs that 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 
    subsection shall be designed to advance adult literacy, secondary 
    school completion, and the acquisition of specified competency by 
    the end of the 12th grade.
        ``(2) Applications.--Each eligible entity desiring a grant 
    under this subsection shall submit an application to the Secretary. 
    The application shall include each of the following:
            ``(A) A demonstration 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) An assurance 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) To the extent feasible, materials developed in the 
        Federal departments and agencies and under appropriate 
        federally funded programs.
            ``(D) An assurance that the applicant has the technological 
        and substantive experience to carry out the program.
            ``(E) Such additional assurances as the Secretary may 
        reasonably require.

``SEC. 5476. ADMINISTRATIVE PROVISIONS.

    ``(a) Leadership, Evaluation, and Peer Review.--
        ``(1) Reservation of funds.--The Secretary may reserve not more 
    than 5 percent of the amount made available to carry out this 
    subpart for a fiscal year for national leadership, evaluation, and 
    peer review activities, which the Secretary may carry out directly 
    or through grants, contracts, and cooperative agreements.
        ``(2) Leadership.--Funds reserved for leadership activities 
    under paragraph (1) 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.
        ``(3) Evaluation.--Funds reserved for evaluation activities 
    under paragraph (1) 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, or are not, assisted under this subpart); and
            ``(B) comparisons of the effects (including student 
        outcomes) of different technologies in distance learning 
        efforts.
        ``(4) Peer review.--Funds reserved for peer review activities 
    under paragraph (1) may be used for peer review of--
            ``(A) applications for grants under this subpart; and
            ``(B) activities assisted under this subpart.
    ``(b) 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.
    ``(c) Funds From Other Agencies.--The Secretary may accept funds 
from other Federal departments or agencies to carry out the purposes of 
this subpart, including funds for the purchase of equipment.
    ``(d) Availability of Funds.--Funds made available to carry out 
this subpart shall remain available until expended.
    ``(e) Closed Captioning and Descriptive Video.--The Secretary shall 
encourage each entity receiving funds under this subpart to provide--
        ``(1) closed captioning of the verbal content of the entity's 
    programming, as appropriate; and
        ``(2) descriptive video of the visual content of the entity's 
    programming, as appropriate.

``SEC. 5477. 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) Eligible entity.--The term `eligible entity' includes any 
    of the following that is organized on a Statewide or multistate 
    basis:
            ``(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.
            ``(B) A partnership that will provide telecommunications 
        services and that includes three or more of the following 
        entities, at least one 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(d)(1)(A).
                ``(ii) A State educational agency.
                ``(iii) An adult and family education program.
                ``(iv) An institution of higher education or a State 
            higher education agency (as that term is defined in section 
            103 of the Higher Education Act of 1965 (20 U.S.C. 1003)).
                ``(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.
                ``(vii) A public or private elementary school or 
            secondary school.
        ``(3) 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.
        ``(4) Public broadcasting entity.--The term `public 
    broadcasting entity' has the same meaning given such term in 
    section 397 of the Communications Act of 1934 (47 U.S.C. 397).

                      ``Subpart 8--Ready to Teach

``SEC. 5481. GRANTS.

    ``(a) In General.--The Secretary is authorized to award 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 to achieve challenging State academic content 
and student academic achievement standards in core curriculum areas.
    ``(b) Digital Educational Programming.--The Secretary is authorized 
to award grants, as provided for in section 5484, to eligible entities 
described in subsection (b) of such section, to enable such entities to 
develop, produce, and distribute innovative educational and 
instructional video programming that is designed for use by elementary 
schools and secondary schools and based on challenging State academic 
content and student academic achievement standards. In awarding such 
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 or organizations.

``SEC. 5482. APPLICATION REQUIRED.

    ``(a) General Application.--
        ``(1) In general.--To be eligible to receive a grant under 
    section 5481(a), a nonprofit telecommunications entity, or 
    partnership of such entities shall submit an application to the 
    Secretary. Each such application shall--
            ``(A) demonstrate that the applicant will use the public 
        broadcasting infrastructure, the Internet, and school digital 
        networks, where available, to deliver video and data in an 
        integrated service to train teachers in the use of materials 
        and learning technologies for achieving challenging State 
        academic content and student academic achievement standards;
            ``(B) ensure that the project for which assistance is 
        sought will be conducted in cooperation with appropriate State 
        educational agencies, local educational agencies, and State or 
        local nonprofit public telecommunications entities;
            ``(C) 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 that have a high 
        percentage of children counted for the purpose of part A of 
        title I; and
            ``(D) contain such additional assurances as the Secretary 
        may reasonably require.
        ``(2) Sites.--In approving applications under paragraph (1), 
    the Secretary shall ensure that the program authorized by section 
    5481(a) is conducted at elementary school and secondary school 
    sites throughout the United States.
    ``(b) Programming Application.--To be eligible to receive a grant 
under section 5481(b), 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.

``SEC. 5483. REPORTS AND EVALUATION.

    ``An entity receiving a grant under section 5481(a) shall prepare 
and submit to the Secretary an annual report that contains such 
information as the Secretary may require. At a minimum, such report 
shall describe the program activities undertaken with funds received 
under the grant, 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. 5484. DIGITAL EDUCATIONAL PROGRAMMING GRANTS.

    ``(a) Grants.--The Secretary is authorized to award grants under 
section 5481(b) to eligible entities to facilitate the development of 
educational programming that shall--
        ``(1) include student assessment tools to provide feedback on 
    student academic achievement;
        ``(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, challenging State 
    academic content standards and student academic achievement 
    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 5481(b), an entity shall be a local public telecommunications 
entity, as defined in 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 5481(b) shall be 
awarded on a competitive basis as determined by the Secretary.
    ``(d) Matching Requirement.--To be eligible to receive a grant 
under section 5481(b), an entity shall contribute to the activities 
assisted under such grant non-Federal matching funds in an amount equal 
to not less than 100 percent of the amount of the grant. Such matching 
funds may include funds provided for the transition to digital 
broadcasting, as well as in-kind contributions.
    ``(e) Duration.--A grant under section 5481(b) shall be awarded for 
a period of 3 years in order to provide a sufficient period of time for 
the creation of a substantial body of significant content.

``SEC. 5485. ADMINISTRATIVE COSTS.

    ``An entity that receives a grant under this subpart may not use 
more than 5 percent of the amount received under the grant for 
administrative costs.

            ``Subpart 9--Foreign Language Assistance Program

``SEC. 5491. SHORT TITLE.

    ``This subpart may be cited as the `Foreign Language Assistance Act 
of 2001'.

``SEC. 5492. PROGRAM AUTHORIZED.

    ``(a) Program Authority.--
        ``(1) In general.--The Secretary is authorized to 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.--Notwithstanding paragraph (1), the Secretary may 
    determine the Federal share 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 subpart.
    ``(d) Special rule.--Not less than \3/4\ of the funds made 
available under section 5401 to carry out this subpart shall be used 
for the expansion of foreign language learning in the elementary 
grades.
    ``(e) Reservation.--The Secretary may reserve not more than 5 
percent of funds made available under section 5401 to carry out this 
subpart for a fiscal year to evaluate the efficacy of programs assisted 
under this subpart.

``SEC. 5493. APPLICATIONS.

    ``(a) In General.--Any State educational agency or local 
educational agency desiring a grant 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 
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 nonnative 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. 5494. ELEMENTARY SCHOOL FOREIGN LANGUAGE INCENTIVE PROGRAM.

    ``(a) Incentive Payments.--From amounts made available under 
section 5401 to carry out this subpart, 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 for not fewer than 4 days 
per week throughout an academic year.

                    ``Subpart 10--Physical Education

``SEC. 5501. SHORT TITLE.

    ``This subpart may be cited as the `Carol M. White Physical 
Education Program'.

``SEC. 5502. 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. 5503. PROGRAM AUTHORIZED.

    ``(a) Authorization.--The Secretary is authorized to award grants 
to local educational agencies and community-based organizations (such 
as Boys and Girls Clubs, Boy Scouts and Girl Scouts, and the Young 
Men's Christian Organization (YMCA) and Young Women's Christian 
Organization (YWCA)) to pay the Federal share of the costs of 
initiating, expanding, and improving physical education programs 
(including after-school programs) for kindergarten through 12th-grade 
students by--
        ``(1) providing equipment and support to enable students to 
    participate actively in physical education activities; and
        ``(2) providing funds for staff and teacher training and 
    education.
    ``(b) Program Elements.--A physical education program funded under 
this subpart may provide for one or more of the following:
        ``(1) Fitness education and assessment to help students 
    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 student.
        ``(3) Development of, and instruction in, 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.
        ``(6) Opportunities for professional development for teachers 
    of physical education 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. 5504. APPLICATIONS.

    ``(a) Submission.--Each local educational agency or 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) Private School 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) students enrolled in private nonprofit elementary schools 
    or secondary schools, and their parents and teachers; or
        ``(2) home-schooled students, and their parents and teachers.

``SEC. 5505. REQUIREMENTS.

    ``(a) Annual Report to the Secretary.--In order to continue 
receiving 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--
        ``(1) describes the activities conducted during the preceding 
    year; and
        ``(2) demonstrates that progress has been made toward meeting 
    State standards for physical education.
    ``(b) Administrative Expenses.--Not more than 5 percent of the 
grant funds made available to a local educational agency or community-
based organization under this subpart for any fiscal year may be used 
for administrative expenses.

``SEC. 5506. ADMINISTRATIVE PROVISIONS.

    ``(a) Federal Share.--The Federal share under this subpart may not 
exceed--
        ``(1) 90 percent of the total cost of a program for the first 
    year for which the program receives assistance under this subpart; 
    and
        ``(2) 75 percent of such cost for the second and each 
    subsequent such year.
    ``(b) Proportionality.--To the extent practicable, the Secretary 
shall ensure that grants awarded under this subpart shall be equitably 
distributed among local educational agencies and community-based 
organizations serving urban and rural areas.
    ``(c) Report to Congress.--Not later than June 1, 2003, the 
Secretary shall submit a report to Congress that--
        ``(1) describes the programs assisted under this subpart;
        ``(2) documents the success of such programs in improving 
    physical fitness; and
        ``(3) makes such recommendations as the Secretary determines 
    appropriate for the continuation and improvement of the programs 
    assisted under this subpart.
    ``(d) Availability of Funds.--Amounts made available to the 
Secretary to carry out this subpart shall remain available until 
expended.

``SEC. 5507. SUPPLEMENT, NOT SUPPLANT.

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

               ``Subpart 11--Community Technology Centers

``SEC. 5511. PURPOSE AND PROGRAM AUTHORIZATION.

    ``(a) Purpose.--It is the purpose of this subpart to assist 
eligible applicants--
        ``(1) to 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) to provide technical assistance and support to community 
    technology centers.
    ``(b) Program Authorization.--The Secretary is authorized, in 
conjunction with the Office of Educational Technology, to award grants, 
contracts, or cooperative agreements, on a competitive basis, for a 
period of not more than 3 years, to eligible applicants in order to 
assist such applicants in--
        ``(1) creating or expanding community technology centers; or
        ``(2) providing technical assistance and support to community 
    technology centers.
        ``(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 in community technology 
    centers of participants in National Service programs carried out 
    under subtitle C of title I of the National and Community Service 
    Act of 1990 (42 U.S.C. 12571 et seq.).

``SEC. 5512. ELIGIBILITY AND APPLICATION REQUIREMENTS.

    ``(a) Eligible Applicants.--In order to be eligible to receive an 
award under this subpart, an applicant shall--
        ``(1) be an entity (such as a foundation, museum, library, for-
    profit business, public or private nonprofit organization, or 
    community-based organization), an institution of higher education, 
    a State educational agency, a local education agency, or a 
    consortium of such entities, institutions, or agencies; and
        ``(2) have the capacity to significantly expand access to 
    computers and related services for disadvantaged residents of 
    economically distressed urban and rural communities (who would 
    otherwise be denied such access).
    ``(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. The application shall include each of the 
following:
        ``(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 coordinates 
        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.
        ``(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. 5513. 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 preschool 
    preparation, academic achievement, educational development, 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, Language 
            Instruction Educational Programs, and adult basic education 
            classes or programs;
                ``(ii) introduction to computers;
                ``(iii) intergenerational activities; and
                ``(iv) educational development 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.

   ``Subpart 12--Educational, Cultural, Apprenticeship, and Exchange 
  Programs for Alaska Natives, Native Hawaiians, and Their Historical 
             Whaling and Trading Partners in Massachusetts

``SEC. 5521. SHORT TITLE.

    ``This subpart may be cited as the `Alaska Native and Native 
Hawaiian Education Through Cultural and Historical Organizations Act'.

``SEC. 5522. FINDINGS AND PURPOSES.

    ``(a) Findings.--Congress finds the following:
        ``(1) Alaska Natives and Native Hawaiians have been linked for 
    over 200 years to the coastal towns of Salem, Massachusetts, and 
    New Bedford, Massachusetts, through the China trade from Salem and 
    whaling voyages from New Bedford.
        ``(2) Nineteenth-century trading ships sailed from Salem, 
    Massachusetts, around Cape Horn of South America, and up the 
    Northwest coast of the United States to Alaska, where their crews 
    traded with Alaska Native people for furs, and then went on to 
    Hawaii to trade for sandalwood with Native Hawaiians before going 
    on to China.
        ``(3) During the 19th century, over 2,000 whaling voyages 
    sailed out of New Bedford, Massachusetts to the Arctic region of 
    Alaska, and joined Alaska Natives from Barrow, Alaska and other 
    areas in the Arctic region in subsistence whaling activities.
        ``(4) Many New Bedford whaling voyages continued on to Hawaii, 
    where they joined Native Hawaiians from the neighboring islands.
        ``(5) From those commercial and whaling voyages, a rich 
    cultural exchange and strong trading relationships developed among 
    the three peoples involved.
        ``(6) In the past decades, awareness of the historical trading, 
    cultural, and whaling links has faded among Alaska Natives, Native 
    Hawaiians, and the people of the continental United States.
        ``(7) In 2000, the Alaska Native Heritage Center in Alaska, the 
    Bishop Museum in Hawaii, and the Peabody-Essex Museum in 
    Massachusetts initiated the New Trade Winds project to use 21st-
    century technology, including the Internet, to educate students and 
    their parents about historic and contemporary cultural and trading 
    ties that continue to link the diverse cultures of the peoples 
    involved.
        ``(8) The New Bedford Whaling Museum, in partnership with the 
    New Bedford Whaling National Historical Park, has developed a 
    cultural exchange and educational program with the Inupiat Heritage 
    Center in Barrow, Alaska to bring together the children, parents, 
    and elders from the Arctic region of Alaska with children and 
    families of Massachusetts to learn about their historical ties and 
    about each other's contemporary cultures.
        ``(9) Within the fast-growing cultural sector, meaningful 
    educational and career opportunities based on traditional 
    relationships exist for Alaska Natives, Native Hawaiians, and low-
    income youth in Massachusetts.
        ``(10) Cultural institutions can provide practical, culturally 
    relevant, education-related internship and apprentice programs, 
    such as the Museum Action Corps at the Peabody-Essex Museum and 
    similar programs at the New Bedford Oceanarium and other 
    institutions, to prepare youths and their families for careers in 
    the cultural sector.
        ``(11) The resources of the institutions described in 
    paragraphs (7) and (8) provide unique opportunities for 
    illustrating and interpreting the contributions of Alaska Natives, 
    Native Hawaiians, the whaling industry, and the China trade to the 
    economic, social, and environmental history of the United States, 
    for educating students and their parents, and for providing 
    opportunities for internships and apprenticeships leading to 
    careers with cultural institutions.
    ``(b) Purposes.--The purposes of this subpart are the following:
        ``(1) To authorize and develop innovative culturally-based 
    educational programs and cultural exchanges to assist Alaska 
    Natives, Native Hawaiians, and children and families of 
    Massachusetts linked by history and tradition to Alaska and Hawaii 
    to learn about shared culture and traditions.
        ``(2) To authorize and develop internship and apprentice 
    programs to assist Alaska Natives, Native Hawaiians, and children 
    and families of Massachusetts linked by history and tradition with 
    Alaska and Hawaii to prepare for careers with cultural 
    institutions.
        ``(3) To supplement programs and authorities in the area of 
    education to further the objectives of this subpart.

``SEC. 5523. PROGRAM AUTHORIZATION.

    ``(a) Grants and Contracts.--In order to carry out programs that 
fulfill the purposes of this subpart, the Secretary is authorized to 
make grants to, or enter into contracts with, the following:
        ``(1) The Alaska Native Heritage Center in Anchorage, Alaska.
        ``(2) The Inupiat Heritage Center in Barrow, Alaska.
        ``(3) The Bishop Museum in Hawaii.
        ``(4) The Peabody-Essex Museum in Salem, Massachusetts.
        ``(5) The New Bedford Whaling Museum and the New Bedford 
    Oceanarium in New Bedford, Massachusetts.
        ``(6) Other Alaska Native and Native Hawaiian cultural and 
    educational organizations.
        ``(7) Cultural and educational organizations with experience in 
    developing or operating programs that illustrate and interpret the 
    contributions of Alaska Natives, Native Hawaiians, the whaling 
    industry, and the China trade to the economic, social, and 
    environmental history of the United States.
        ``(8) Consortia of the organizations and entities described in 
    this subsection.
    ``(b) Uses of Funds.--Activities provided through programs carried 
out under this subpart may include one or more of the following:
        ``(1) Development and implementation of educational programs to 
    increase understanding of cultural diversity and multicultural 
    communication among Alaska Natives, Native Hawaiians, and the 
    people of the continental United States, based on historic patterns 
    of trading and commerce.
        ``(2) Development and implementation of programs using modern 
    technology, including the Internet, to educate students, their 
    parents, and teachers about historic and contemporary cultural and 
    trading ties that continue to link the diverse cultures of Alaska 
    Natives, Native Hawaiians, and the people of Massachusetts.
        ``(3) Cultural exchanges of elders, students, parents, and 
    teachers among Alaska Natives, Native Hawaiians, and the people of 
    Massachusetts to increase awareness of diverse cultures among each 
    group.
        ``(4) Sharing of collections among cultural institutions 
    designed to increase awareness of diverse cultures and links among 
    them.
        ``(5) Development and implementation of internship and 
    apprentice programs in cultural institutions to train Alaska 
    Natives, Native Hawaiians, and low-income students in Massachusetts 
    for careers with cultural institutions.
        ``(6) Other activities, consistent with the purposes of this 
    subpart, to meet the educational needs of Alaska Natives, Native 
    Hawaiians, and students and their parents in Massachusetts.

``SEC. 5524. ADMINISTRATIVE PROVISIONS.

    ``(a) Application Required.--No grant may be made under this 
subpart, and no contract may be entered into under this subpart, 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 subpart.
    ``(b) Local Educational Agency Coordination.--Each applicant for a 
grant or contract under this subpart 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.

``SEC. 5525. AVAILABILITY OF FUNDS.

    ``If sufficient funds are made available under section 5401 to 
carry out this subpart for a fiscal year, the Secretary shall make 
available, to support activities described in section 5523(b), the 
following amounts:
        ``(1) Not less than $2,000,000 each to--
            ``(A) the New Bedford Whaling Museum, in partnership with 
        the New Bedford Oceanarium, in Massachusetts; and
            ``(B) the Inupiat Heritage Center in Alaska.
        ``(2) For the New Trade Winds project, not less than $1,000,000 
    each to--
            ``(A) the Alaska Native Heritage Center in Alaska;
            ``(B) the Bishop Museum in Hawaii; and
            ``(C) the Peabody-Essex Museum in Massachusetts.
        ``(3) For internship and apprenticeship programs (including the 
    Museum Action Corps of the Peabody-Essex Museum), not less than 
    $1,000,000 each to--
            ``(A) the Alaska Native Heritage Center in Alaska;
            ``(B) the Bishop Museum in Hawaii; and
            ``(C) the Peabody-Essex Museum in Massachusetts.

``SEC. 5526. DEFINITIONS.

    ``In this subpart:
        ``(1) Alaska native.--The term `Alaska Native' has the meaning 
    given that term in section 7306.
        ``(2) Native hawaiian.--The term `Native Hawaiian' has the 
    meaning given that term in section 7207.

             ``Subpart 13--Excellence in Economic Education

``SEC. 5531. SHORT TITLE.

    ``This subpart may be cited as the `Excellence in Economic 
Education Act of 2001'.

``SEC. 5532. PURPOSE AND GOALS.

    ``(a) Purpose.--The purpose of this subpart is to promote economic 
and financial literacy among all 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) Objectives.--The objectives of this subpart are the 
following:
        ``(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 the practical application of those 
    principles.
        ``(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.
        ``(5) To leverage and expand private and public support for 
    economic education partnerships at national, State, and local 
    levels.

``SEC. 5533. GRANT PROGRAM AUTHORIZED.

    ``(a) Authorization.--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 
subpart as the `grantee').
    ``(b) Uses of Funds.--
        ``(1) Direct activities.--The grantee shall use 25 percent of 
    the funds made available through the grant for a fiscal year--
            ``(A) to strengthen and expand the grantee's relationships 
        with State and local personal finance, entrepreneurial, and 
        economic education organizations;
            ``(B) 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;
            ``(C) to support research on effective teaching practices 
        and the development of assessment instruments to document 
        student understanding of personal finance and economics; and
            ``(D) to develop and disseminate appropriate materials to 
        foster economic literacy.
        ``(2) Subgrants.--The grantee shall use 75 percent of the funds 
    made available through the grant for a fiscal year to award 
    subgrants to State educational agencies or local educational 
    agencies, and State or local economic, personal finance, or 
    entrepreneurial education organizations (referred to in this 
    section as the `recipient'). The grantee shall award such a 
    subgrant to pay for the Federal share of the cost of enabling the 
    recipient to work in partnership with one or more of the entities 
    described in paragraph (3) for one or more of the following 
    purposes:
            ``(A) Collaboratively establishing and conducting teacher 
        training programs that use effective and innovative approaches 
        to the teaching of economics, personal finance, and 
        entrepreneurship.
            ``(B) Providing resources to school districts that desire 
        to incorporate economics and personal finance into the 
        curricula of the schools in the districts.
            ``(C) Conducting evaluations of the impact of economic and 
        financial literacy education on students.
            ``(D) Conducting economic and financial literacy education 
        research.
            ``(E) 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 academic 
        achievement in economics.
            ``(F) Encouraging replication of best practices to promote 
        economic and financial literacy.
        ``(3) Partnership entities.--The entities described in this 
    paragraph 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) An organization promoting economic development.
            ``(F) An organization promoting educational excellence.
            ``(G) An organization promoting personal finance or 
        entrepreneurial education.

``SEC. 5534. APPLICATIONS.

    ``(a) Grantee Applications.--To be eligible to receive a grant 
under this subpart, 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.
    ``(b) Recipient Applications.--
        ``(1) Submission.--To be eligible to receive a subgrant 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.
        ``(2) Review.--The grantee shall invite the individuals 
    described in paragraph (3) to review all applications from 
    recipients for a subgrant under this section and to make 
    recommendations to the grantee regarding the approval of the 
    applications.
        ``(3) Reviewers.--The individuals described in this paragraph 
    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 communities.

``SEC. 5535. REQUIREMENTS.

    ``(a) Administrative Costs.--The grantee and each recipient 
receiving a subgrant under this subpart for a fiscal year may use not 
more than 5 percent of the funds made available through the grant or 
subgrant for administrative costs.
    ``(b) Teacher Training Programs.--In carrying out the teacher 
training programs described in section 5533(b)(2)(A), 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 those teachers' students.
    ``(c) Involvement of Business Community.--In carrying out the 
activities assisted under this subpart, 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) Additional Requirements and Technical Assistance.--The 
grantee shall--
        ``(1) meet such other requirements as the Secretary determines 
    to be necessary to assure compliance with this section; and
        ``(2) receive from the Secretary such technical assistance as 
    may be necessary to carry out this section.

``SEC. 5536. ADMINISTRATIVE PROVISIONS.

    ``(a) Federal Share.--The Federal share of the cost described in 
section 5533(b)(2) shall be 50 percent.
    ``(b) Payment of Non-Federal Share.--The non-Federal share may be 
paid in cash or in kind (fairly evaluated, including plant, equipment, 
or services).
    ``(c) Reports to Congress.--Not later than 2 years after the date 
funds are first made available to carry out this subpart, and every 2 
years thereafter, the Secretary shall submit to the appropriate 
committees of Congress a report regarding activities assisted under 
this subpart.

``SEC. 5537. SUPPLEMENT, NOT SUPPLANT.

    ``Funds made available to carry out this subpart shall be used to 
supplement, and not supplant, other Federal, State, and local funds 
expended for the purpose described in section 5532(a).

     ``Subpart 14--Grants to Improve the Mental Health of Children

``SEC. 5541. GRANTS FOR THE INTEGRATION OF SCHOOLS AND MENTAL HEALTH 
              SYSTEMS.

    ``(a) Authorization.--The Secretary is authorized to award grants 
to, or enter into contracts or cooperative agreements with, 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 or entered into under this section, the period during 
which payments under such grant, contract or agreement are made to the 
recipient may not exceed 5 years.
    ``(c) 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 for the following:
        ``(1) To 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) To enhance the availability of crisis intervention 
    services, appropriate referrals for students potentially in need of 
    mental health services, and ongoing mental health services.
        ``(3) To provide training for the school personnel and mental 
    health professionals who will participate in the program carried 
    out under this section.
        ``(4) To provide technical assistance and consultation to 
    school systems and mental health agencies and families 
    participating in the program carried out under this section.
        ``(5) To provide linguistically appropriate and culturally 
    competent services.
        ``(6) To 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.
    ``(d) Applications.--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 
containing such information as the Secretary may reasonably require. 
The application shall include each of the following:
        ``(1) A description of the program to be funded under the 
    grant, contract, or cooperative agreement.
        ``(2) A description of how such program will increase access to 
    quality mental health services for students.
        ``(3) A description of how the applicant will establish a 
    crisis intervention program to provide immediate mental health 
    services to the school community when necessary.
        ``(4) An assurance that--
            ``(A) persons providing services under the grant, contract, 
        or cooperative agreement are adequately trained to provide such 
        services;
            ``(B) the services will be provided in accordance with 
        subsection (c);
            ``(C) teachers, principal administrators, and other school 
        personnel are aware of the program; and
            ``(D) parents of students participating in services under 
        this section will be involved in the design and implementation 
        of the services.
        ``(5) An explanation of how the applicant will support and 
    integrate existing school-based services with the program to 
    provide appropriate mental health services for students.
        ``(6) An explanation of how the applicant will establish a 
    program that will support students and the school in maintaining an 
    environment conducive to learning.
    ``(e) 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 described in subsection (c), 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.
    ``(f) 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.
    ``(g) Distribution of Awards.--The Secretary shall ensure that 
grants, contracts, and cooperative agreements awarded or entered into 
under this section are equitably distributed among the geographical 
regions of the United States and among urban, suburban, and rural 
populations.
    ``(h) Rule of Construction.--Nothing in Federal law shall be 
construed--
        ``(1) to prohibit an entity involved with a program carried out 
    under this section 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.
    ``(i) Supplement, Not Supplant.--Any services provided through 
programs carried out 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.).

``SEC. 5542. PROMOTION OF SCHOOL READINESS THROUGH EARLY CHILDHOOD 
              EMOTIONAL AND SOCIAL DEVELOPMENT.

    ``(a) Authorization.--The Secretary, in consultation with the 
Secretary of Health and Human Services, may award grants (to be known 
as `Foundations for Learning Grants') to local educational agencies, 
local councils, community-based organizations, and other public or 
nonprofit private entities to assist eligible children to become ready 
for school.
    ``(b) Applications.--To be eligible to receive a grant under this 
section, a local educational agency, local council, community-based 
organization, or other public or nonprofit private entity, or a 
combination of such entities, shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may reasonably require. The application 
shall include each of the following:
        ``(1) A description of the population that the applicant 
    intends to serve and the types of services to be provided under the 
    grant.
        ``(2) A description of the manner in which services under the 
    grant will be coordinated with existing similar services provided 
    by public and nonprofit private entities within the State.
        ``(3) An assurance that--
            ``(A) services under the grant shall be provided by or 
        under the supervision of qualified professionals with expertise 
        in early childhood development;
            ``(B) such services shall be culturally competent;
            ``(C) such services shall be provided in accordance with 
        subsection (c);
            ``(D) funds received under this section shall be used to 
        supplement, and not supplant, non-Federal funds; and
            ``(E) parents of students participating in services under 
        this section will be involved in the design and implementation 
        of the services.
    ``(c) Uses of Funds.--A local educational agency, local council, 
community-based organization, or other public or nonprofit private 
entity that receives funds under this section may use such funds to 
benefit eligible children, for one or more of the following:
        ``(1) To deliver services to eligible children and their 
    families that foster eligible children's emotional, behavioral, and 
    social development and take into consideration the characteristics 
    described in subsection (f)(1).
        ``(2) To coordinate and facilitate access by eligible children 
    and their families to the services available through community 
    resources, including mental health, physical health, substance 
    abuse, educational, domestic violence prevention, child welfare, 
    and social services.
        ``(3) To provide ancillary services such as transportation or 
    child care in order to facilitate the delivery of any other 
    services or activities authorized by this section.
        ``(4) To develop or enhance early childhood community 
    partnerships and build toward a community system of care that 
    brings together child-serving agencies or organizations to provide 
    individualized supports for eligible children and their families.
        ``(5) To evaluate the success of strategies and services 
    provided pursuant to this section in promoting young children's 
    successful entry to school and to maintain data systems required 
    for effective evaluations.
        ``(6) To pay for the expenses of administering the activities 
    authorized under this section, including assessment of children's 
    eligibility for services.
    ``(d) Limitations.--
        ``(1) Services not otherwise funded.--A local educational 
    agency, local council, community-based organization, or other 
    public or nonprofit private entity may use funds under this section 
    only to pay for services that cannot be paid for using other 
    Federal, State, or local public resources or through private 
    insurance.
        ``(2) Administrative expenses.--A grantee may not use more than 
    3 percent of the amount of the grant to pay the administrative 
    expenses described in subsection (c)(6).
    ``(e) Evaluations.--The Secretary shall directly evaluate, or enter 
into a contract for an outside evaluation of, each program carried out 
under this section and shall disseminate the findings with respect to 
such evaluation to appropriate public and private entities.
    ``(f) Definitions.--In this section:
        ``(1) Eligible child.--The term `eligible child' means a child 
    who has not attained the age of 7 years, and to whom two or more of 
    the following characteristics apply:
            ``(A) The child has been abused, maltreated, or neglected.
            ``(B) The child has been exposed to violence.
            ``(C) The child has been homeless.
            ``(D) The child has been removed from child care, Head 
        Start, or preschool for behavioral reasons or is at risk of 
        being so removed.
            ``(E) The child has been exposed to parental depression or 
        other mental illness.
            ``(F) The family income with respect to the child is below 
        200 percent of the poverty line.
            ``(G) The child has been exposed to parental substance 
        abuse.
            ``(H) The child has had early behavioral and peer 
        relationship problems.
            ``(I) The child had a low birth weight.
            ``(J) The child has a cognitive deficit or developmental 
        disability.
        ``(2) Local council.--The term `local council' means a council 
    that is established or designated by a local government entity, 
    Indian tribe, regional corporation, or native Hawaiian entity, as 
    appropriate, which is composed of representatives of local agencies 
    directly affected by early learning programs, parents, key 
    community leaders, and other individuals concerned with early 
    learning issues in the locality, such as elementary education, 
    child care resource and referral services, early learning 
    opportunities, child care, and health services.
        ``(3) Provider of early childhood services.--The term `provider 
    of early childhood services' means a public or private entity that 
    has regular contact with young children, including child welfare 
    agencies, child care providers, Head Start and Early Head Start 
    providers, preschools, kindergartens, libraries, mental health 
    professionals, family courts, homeless shelters, and primary care 
    providers.

                    ``Subpart 15--Arts in Education

``SEC. 5551. ASSISTANCE FOR ARTS EDUCATION.

    ``(a) Purposes.--The purposes of this subpart are the following:
        ``(1) To support systemic education reform by strengthening 
    arts education as an integral part of the elementary school and 
    secondary school curriculum.
        ``(2) To help ensure that all students meet challenging State 
    academic content standards and challenging State student academic 
    achievement standards in the arts.
        ``(3) To support the national effort to enable all students to 
    demonstrate competence in the arts.
    ``(b) Authority.--The Secretary is authorized to make grants to, or 
enter into contracts or cooperative agreements with, eligible entities 
described in subsection (c).
    ``(c) Eligible Entities.--The Secretary may make assistance 
available under subsection (b) to each of the following eligible 
entities:
        ``(1) State educational agencies.
        ``(2) Local educational agencies.
        ``(3) Institutions of higher education.
        ``(4) Museums or other cultural institutions.
        ``(5) Any other public or private agencies, institutions, or 
    organizations.
    ``(d) Use of Funds.--Assistance made available under this subpart 
may be used for any of the following:
        ``(1) Research on arts education.
        ``(2) Planning, developing, acquiring, expanding, improving, or 
    disseminating information about model school-based arts education 
    programs.
        ``(3) The development of model State arts education assessments 
    based on State academic achievement standards.
        ``(4) The development and implementation of curriculum 
    frameworks for arts education.
        ``(5) The development of model inservice professional 
    development programs for arts educators and other instructional 
    staff.
        ``(6) Supporting collaborative activities with Federal agencies 
    or institutions involved in arts education, arts educators, and 
    organizations representing the arts, including State and local arts 
    agencies involved in arts education.
        ``(7) Supporting model projects and programs in the performing 
    arts for children and youth through arrangements made with the John 
    F. Kennedy Center for the Performing Arts.
        ``(8) Supporting model projects and programs by Very Special 
    Arts which assure the participation in mainstream settings in arts 
    and education programs of individuals with disabilities.
        ``(9) Supporting model projects and programs to integrate arts 
    education into the regular elementary school and secondary school 
    curriculum.
        ``(10) Other activities that further the purposes of this 
    subpart.
    ``(e) 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).
    ``(f) Conditions.--As conditions of receiving assistance made 
available under this subpart, the Secretary shall require each entity 
receiving such assistance--
        ``(1) to coordinate, to the extent practicable, each project or 
    program carried out with such assistance with appropriate 
    activities of public or private cultural agencies, institutions, 
    and organizations, including museums, arts education associations, 
    libraries, and theaters; and
        ``(2) to use such assistance only to supplement, and not to 
    supplant, any other assistance or funds made available from non-
    Federal sources for the activities assisted under this subpart.
    ``(g) Consultation.--In carrying out this subpart, the Secretary 
shall consult with Federal agencies or institutions, arts educators 
(including professional arts education associations), and organizations 
representing the arts (including State and local arts agencies involved 
in arts education).

 ``Subpart 16--Parental Assistance and Local Family Information Centers

``SEC. 5561. PURPOSES.

    ``The purposes of this subpart are the following:
        ``(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 academic achievement.
        ``(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 their children's school.
        ``(4) To further the developmental progress of children 
    assisted under this subpart.
        ``(5) To coordinate activities funded under this subpart with 
    parental involvement initiatives funded under section 1118 and 
    other provisions of this Act.
        ``(6) To provide a comprehensive approach to improving student 
    learning, through coordination and integration of Federal, State, 
    and local services and programs.

``SEC. 5562. GRANTS AUTHORIZED.

    ``(a) Parental Information and Resource Centers.--The Secretary is 
authorized to award grants in each fiscal year to nonprofit 
organizations (including statewide nonprofit organizations), and 
consortia of such organizations and local educational agencies, to 
establish school-linked or school-based parental information and 
resource centers that provide comprehensive training, information, and 
support to--
        ``(1) parents of children enrolled in elementary schools and 
    secondary schools;
        ``(2) individuals who work with the parents of children 
    enrolled in elementary schools and secondary schools;
        ``(3) 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
        ``(4) parents of children from birth through age 5.
    ``(b) Geographic Distribution.--In awarding grants under this 
subpart, the Secretary shall, to the extent practicable, ensure that 
such grants are distributed in all geographic regions of the United 
States.

``SEC. 5563. APPLICATIONS.

    ``(a) Submission.--Each nonprofit organization (including a 
statewide nonprofit organization), or a consortia of such an 
organization and a local educational agency, that desires 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 application submitted under subsection (a), 
at a minimum, shall include assurances that the organization or 
consortium will--
        ``(1)(A) be governed by a board of directors the membership of 
    which includes parents; or
        ``(B) be an organization or consortium that represents the 
    interests of parents;
        ``(2) establish a special advisory committee the membership of 
    which includes--
            ``(A) parents of children enrolled in elementary schools 
        and secondary schools, who shall constitute a majority of the 
        members of the special advisory committee;
            ``(B) representatives of education professionals with 
        expertise in improving services for disadvantaged children; and
            ``(C) representatives of local elementary schools and 
        secondary schools, including students and representatives from 
        local youth organizations;
        ``(3) use at least 50 percent of the funds received under this 
    subpart 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;
        ``(4) operate a center of sufficient size, scope, and quality 
    to ensure that the center is adequate to serve the parents in the 
    area;
        ``(5) serve both urban and rural areas;
        ``(6) design a center that meets the unique training, 
    information, and support needs of parents of children enrolled in 
    elementary schools and secondary schools, particularly such parents 
    who are educationally or economically disadvantaged;
        ``(7) demonstrate the capacity and expertise to conduct the 
    effective training, information, and support activities for which 
    assistance is sought;
        ``(8) network with--
            ``(A) local educational agencies and schools;
            ``(B) parents of children enrolled in elementary schools 
        and secondary schools;
            ``(C) parent training and information centers assisted 
        under section 682 of the Individuals with Disabilities 
        Education Act;
            ``(D) clearinghouses; and
            ``(E) other organizations and agencies;
        ``(9) focus on serving parents of children enrolled in 
    elementary schools and secondary schools who are parents of low-
    income, minority, and limited English proficient children;
        ``(10) use at least 30 percent of the funds received under this 
    subpart in each fiscal year to establish, expand, or operate 
    Parents as Teachers programs, Home Instruction for Preschool 
    Youngsters programs, or other early childhood parent education 
    programs;
        ``(11) provide assistance to parents in areas such as 
    understanding State and local standards and measures of student and 
    school academic achievement;
        ``(12) work with State educational agencies and local 
    educational agencies to determine parental needs and the best means 
    for delivery of services;
        ``(13) 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 
    programs, adult education, and job training; and
        ``(14) work with and foster partnerships with other agencies 
    that provide programs and deliver services described in paragraph 
    (13) to make such programs and services more accessible to children 
    and families.

``SEC. 5564. USES OF FUNDS.

    ``(a) In General.--Grant funds received under this subpart shall be 
used for one or more of the following:
        ``(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 
        academic achievement, including understanding the 
        accountability systems in place within their State educational 
        agency and local educational agency and understanding their 
        children's educational academic achievement in comparison to 
        State and local standards;
            ``(B) to provide follow-up 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 academic 
        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.
        ``(6) To coordinate and integrate early childhood programs with 
    school-age programs.
    ``(b) Permissive Activities.--Grant funds received under this 
subpart may be used to assist schools with activities including one or 
more of the following:
        ``(1) Developing and implementing the schools' plans or 
    activities under sections 1118 and 1119.
        ``(2) Developing and implementing school improvement plans, 
    including addressing problems that develop in the implementation of 
    the schools' plans or activities under 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.
        ``(5) Providing training, information, and support to--
            ``(A) State educational agencies;
            ``(B) local educational agencies and schools, especially 
        low-performing local educational agencies and schools; and
            ``(C) organizations that support family-school 
        partnerships.

``SEC. 5565. ADMINISTRATIVE PROVISIONS.

    ``(a) Matching Funds for Grant Renewal.--For each fiscal year after 
the first fiscal year in which an organization or consortium receives 
assistance under this subpart, the organization or consortium shall 
demonstrate in the application submitted for such 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.
    ``(b) Submission of Information.--
        ``(1) In general.--Each organization or consortium receiving 
    assistance under this subpart shall submit to the Secretary, on an 
    annual basis, information concerning the parental information and 
    resource centers assisted under this subpart, including the 
    following information:
            ``(A) The number of parents (including the number of 
        minority and limited English proficient parents) who receive 
        information and training.
            ``(B) The types and modes of training, information, and 
        support provided under this subpart.
            ``(C) 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 subpart.
            ``(D) 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 academic achievement, student and school academic 
        achievement, and parental involvement in school planning, 
        review, and improvement.
            ``(E) 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 academic achievement 
        and improved student and school academic achievement.
        ``(2) Dissemination.--The Secretary shall disseminate annually 
    to Congress and the public the information that each organization 
    or consortium submits under paragraph (1).
    ``(c) 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.
    ``(d) Rule of Construction.--Nothing in this subpart 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.
    ``(e) Parental Rights.--Notwithstanding any other provision of this 
subpart--
        ``(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 under this subpart; and
        ``(2) no program or center assisted under this subpart shall 
    take any action that infringes in any manner on the right of a 
    parent to direct the education of their children.
    ``(f) Continuation of Awards.--The Secretary shall use funds made 
available under this subpart 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 No Child 
Left Behind Act of 2001) for the duration of the grant or contract 
award.

``SEC. 5566. LOCAL FAMILY INFORMATION CENTERS.

    ``(a) In General.--If the amount made available to carry out this 
subpart for a fiscal year is more than $50,000,000, the Secretary is 
authorized to award 50 percent of the amount that exceeds $50,000,000 
as 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 elementary schools and secondary schools assisted under 
this subpart 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 academic content and student academic achievement 
standards.
    ``(b) Local Nonprofit Parent Organization Defined.--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 elementary schools and secondary schools 
    assisted under part A of title I and located in the geographic area 
    to be served by a local family information center; or
        ``(B) has a special governing committee to direct and implement 
    a local family information center, a majority of the members of 
    whom are parents of students in schools assisted under part A of 
    title I; and
        ``(3) is located in a community with elementary schools and 
    secondary schools that receive funds under part A of title I, and 
    is accessible to the families of students in those schools.

               ``Subpart 17--Combatting Domestic Violence

``SEC. 5571. GRANTS TO COMBAT THE IMPACT OF EXPERIENCING OR WITNESSING 
              DOMESTIC VIOLENCE ON ELEMENTARY AND SECONDARY SCHOOL 
              CHILDREN.

    ``(a) Definitions.--In this section:
        ``(1) Domestic violence.--The term `domestic violence' has the 
    meaning given that term in section 2003 of the Omnibus Crime 
    Control and Safe Streets Act of 1968 (42 U.S.C. 3796gg-2).
        ``(2) Expert.--The term `expert' means--
            ``(A) an expert on domestic violence, sexual assault, and 
        child abuse from the educational, legal, youth, mental health, 
        substance abuse, or victim advocacy field; and
            ``(B) a State or local domestic violence coalition or 
        community-based youth organization.
        ``(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--
                ``(i) to directly observe an act, threat, or action 
            described in subparagraph (A), or the aftermath of that 
            act, threat, or action; or
                ``(ii) to be within earshot of an act, threat, or 
            action described in subparagraph (A), or the aftermath of 
            that act, threat, or action.
    ``(b) Grants Authorized.--
        ``(1) Authority.--The Secretary is authorized to award grants 
    to local educational agencies that work with experts to enable the 
    elementary schools and secondary schools served by the local 
    educational agency--
            ``(A) to provide training to school administrators, 
        faculty, and staff, with respect to issues concerning children 
        who experience domestic violence in dating relationships or who 
        witness domestic violence, and the impact of the violence on 
        the children;
            ``(B) to provide educational programming for 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 to develop and strengthen effective prevention and 
        intervention strategies with respect to issues concerning 
        children who experience domestic violence in dating 
        relationships or who witness domestic violence, and the impact 
        of the violence on the children; and
            ``(D) to develop and implement school system policies 
        regarding appropriate and safe responses to, identification of, 
        and referral procedures for, students who are experiencing or 
        witnessing domestic violence.
        ``(2) Award basis.--The Secretary is authorized to award grants 
    under this section--
            ``(A) on a competitive basis; and
            ``(B) in a manner that ensures that such grants are 
        equitably distributed among local educational agencies located 
        in rural, urban, and suburban areas.
        ``(3) Policy dissemination.--The Secretary shall disseminate to 
    local educational agencies any Department policy guidance regarding 
    the prevention of domestic violence and the impact on children of 
    experiencing or witnessing domestic violence.
    ``(c) Uses of Funds.--Funds made available to carry out this 
subpart may be used for one or more of 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 who witness 
    domestic violence, and the impact of such violence on those 
    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--
            ``(A) appropriate and safe responses to, identification of, 
        and referral procedures for, students who are experiencing or 
        witnessing domestic violence; and
            ``(B) to develop and implement policies on reporting and 
        referral procedures for those 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 or who witness domestic violence, and the 
    impact of the violence on those children.
        ``(6) To conduct evaluations to assess the impact of programs 
    and policies assisted under this subpart in order to enhance the 
    development of the programs.
    ``(d) Confidentiality.--Policies, programs, training materials, and 
evaluations developed and implemented under subsection (c) 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.
    ``(e) Application.--To be eligible for a grant under this section 
for a fiscal year, a local educational agency, in consultation with an 
expert, 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 each of the following:
        ``(1) A description of the need for funds provided under the 
    grant and the plan for implementation of any of the activities 
    described in subsection (c).
        ``(2) A description of how the experts will work in 
    consultation and collaboration with the local educational agency.
        ``(3) Measurable objectives for, and expected results from, the 
    use of the funds provided under the grant.
        ``(4) Provisions for appropriate remuneration for collaborating 
    partners.

            ``Subpart 18--Healthy, High-Performance Schools

``SEC. 5581. GRANT PROGRAM AUTHORIZED.

    ``The Secretary, in consultation with the Secretary of Energy and 
the Administrator of the Environmental Protection Agency, is authorized 
to award grants to State educational agencies to permit such State 
educational agencies to carry out section 5582.

``SEC. 5582. STATE USES OF FUNDS.

    ``(a) Subgrants.--
        ``(1) In general.--A State educational agency receiving a grant 
    under this subpart shall use funds made available under the grant 
    to award subgrants to local educational agencies to permit such 
    local educational agencies to carry out the activities described in 
    section 5583.
        ``(2) Limitation.--A State educational agency shall award 
    subgrants under this subsection to local educational agencies that 
    are the neediest, as determined by the State, and that have made a 
    commitment to develop healthy, high-performance school buildings in 
    accordance with the plan developed and approved under paragraph 
    (3)(A).
        ``(3) Implementation.--
            ``(A) Plans.--A State educational agency shall award 
        subgrants under this subsection only to local educational 
        agencies that, in consultation with the State educational 
        agency and State agencies 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 the subgrants are made.
            ``(B) Supplementing grant funds.--The State educational 
        agency shall encourage local educational agencies that receive 
        subgrants under this subsection to supplement their subgrant 
        funds with funds from other sources in order to implement their 
        plans.
    ``(b) Administration.--A State educational agency receiving a grant 
under this subpart shall use the grant funds made available under this 
subpart for one or more of the following:
        ``(1) To evaluate compliance by local educational agencies with 
    the requirements of this subpart.
        ``(2) To distribute information and materials on healthy, high-
    performance school buildings for both new and existing facilities.
        ``(3) To organize and conduct programs for school board 
    members, school district personnel, and others to disseminate 
    information on healthy, high-performance school buildings.
        ``(4) To provide technical services and assistance in planning 
    and designing healthy, high-performance school buildings.
        ``(5) To collect and monitor information pertaining to healthy, 
    high-performance school building projects.

``SEC. 5583. LOCAL USES OF FUNDS.

    ``(a) In General.--A local educational agency that receives a 
subgrant under section 5582(a) shall use the subgrant funds to plan and 
prepare for healthy, high-performance school building projects that--
        ``(1) reduce 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;
        ``(2) meet Federal and State health and safety codes; and
        ``(3) support healthful, energy efficient, and environmentally 
    sound practices.
    ``(b) Use of Funds.--A local educational agency that receives a 
subgrant under section 5582(a) shall use funds for one or more of the 
following:
        ``(1) To develop a comprehensive energy audit of the energy 
    consumption characteristics of a building and the need for 
    additional energy conservation measures necessary to allow schools 
    to meet the guidelines set out in subsection (a).
        ``(2) To produce a comprehensive analysis of building 
    strategies, designs, materials, and equipment that--
            ``(A) are cost effective, produce greater energy 
        efficiency, and enhance indoor air quality; and
            ``(B) can be used when conducting school construction and 
        renovation or purchasing materials and equipment.
        ``(3) To obtain research and provide technical services and 
    assistance in planning and designing healthy, high-performance 
    school buildings, including developing a timeline for 
    implementation of such plans.

``SEC. 5584. REPORT TO CONGRESS.

    ``The Secretary shall conduct a biennial review of State actions 
implementing this subpart and carrying out the plans developed under 
this subpart through State and local funding, and shall submit a report 
to Congress on the results of such reviews.

``SEC. 5585. LIMITATIONS.

    ``No funds received under this subpart may be used for any of the 
following:
        ``(1) Payment of maintenance of costs in connection with any 
    projects constructed in whole or in part with Federal funds 
    provided under this subpart.
        ``(2) Construction, renovation, or repair of school facilities.
        ``(3) Construction, renovation, repair, or acquisition of a 
    stadium or other facility primarily used for athletic contests or 
    exhibitions, or other events for which admission is charged to the 
    general public.

``SEC. 5586. HEALTHY, HIGH-PERFORMANCE SCHOOL BUILDING DEFINED.

    ``In this subpart, the term `healthy, high-performance school 
building' means a school building in which the design, construction, 
operation, and maintenance--
        ``(1) use energy-efficient and affordable practices and 
    materials;
        ``(2) are cost-effective;
        ``(3) enhance indoor air quality; and
        ``(4) protect and conserve water.

   ``Subpart 19--Grants for Capital Expenses of Providing Equitable 
                  Services for Private School Students

``SEC. 5591. GRANT PROGRAM AUTHORIZED.

    ``The Secretary is authorized to award grants to State educational 
agencies, from allotments made under section 5593, to enable the State 
educational agencies to award subgrants to local educational agencies 
to pay for capital expenses in accordance with this subpart.

``SEC. 5592. USES OF FUNDS.

    ``A local educational agency that receives a subgrant under this 
subpart shall use the subgrant funds only to pay for capital expenses 
incurred in providing equitable services for private school students 
under section 1120.

``SEC. 5593. ALLOTMENTS TO STATES.

    ``From the funds made available to carry out this subpart for a 
fiscal year, the Secretary shall allot to each State an amount that 
bears the same ratio to the funds made available as the number of 
private school students who received services under part A of title I 
in the State in the most recent year for which data, satisfactory to 
the Secretary, are available bears to the number of such students in 
all States in such year.

``SEC. 5594. SUBGRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Applications.--A local educational agency that desires to 
receive a subgrant under this subpart shall submit an application to 
the State educational agency involved at such time, in such manner, and 
containing such information as the State educational agency may 
require.
    ``(b) Distribution.--A State educational agency shall award 
subgrants to local educational agencies within the State based on the 
degree of need set forth in their respective applications submitted 
under subsection (a).

``SEC. 5595. CAPITAL EXPENSES DEFINED.

    ``In this subpart, the term `capital expenses' means--
        ``(1) expenditures for noninstructional goods and services, 
    such as the purchase, lease, or renovation of real and personal 
    property, including mobile educational units and leasing of neutral 
    sites or spaces;
        ``(2) insurance and maintenance costs;
        ``(3) transportation; and
        ``(4) other comparable goods and services.

``SEC. 5596. TERMINATION.

    ``The authority provided by this subpart terminates effective 
October 1, 2003.

   ``Subpart 20--Additional Assistance for Certain Local Educational 
           Agencies Impacted by Federal Property Acquisition

``SEC. 5601. RESERVATION.

    ``The Secretary is authorized to provide additional assistance to 
meet special circumstances relating to the provision of education in 
local educational agencies eligible to receive assistance under section 
8002.

``SEC. 5602. ELIGIBILITY.

    ``A local educational agency is eligible to receive additional 
assistance under this subpart only if such agency--
        ``(1) received a payment under both section 8002 and section 
    8003(b) for fiscal year 1996 and is eligible to receive payments 
    under those sections for the year of application;
        ``(2) provided a free public education to children described 
    under subparagraph (A), (B), or (D) of section 8003(a)(1);
        ``(3) had a military installation located within the geographic 
    boundaries of the local educational agency that was closed as a 
    result of base closure or realignment and, at the time at which the 
    agency is applying for a payment under this subpart, the agency 
    does not have a military installation located within its geographic 
    boundaries;
        ``(4) remains responsible for the free public education of 
    children residing in housing located on Federal property within the 
    boundaries of the closed military installation but whose parents 
    are on active duty in the uniformed services and assigned to a 
    military activity located within the boundaries of an adjoining 
    local educational agency; and
        ``(5) demonstrates to the satisfaction of the Secretary that 
    such agency's per-pupil revenue derived from local sources for 
    current expenditures is not less than that revenue for the 
    preceding fiscal year.

``SEC. 5603. MAXIMUM AMOUNT.

    ``(a) Maximum Amount.--The maximum amount that a local educational 
agency is eligible to receive under this subpart for any fiscal year, 
when combined with its payment under section 8002(b), shall not be more 
than 50 percent of the maximum amount determined under section 8002(b).
    ``(b) Insufficient Funds.--If funds appropriated under section 5401 
are insufficient to pay the amount determined under subsection (a), the 
Secretary shall ratably reduce the payment to each local educational 
agency eligible under this subpart.
    ``(c) Excess Funds.--If funds appropriated under section 5401 are 
in excess of the amount determined under subsection (a), the Secretary 
shall ratably distribute any excess funds to all local educational 
agencies eligible for payment under section 8002(b).

              ``Subpart 21--Women's Educational Equity Act

``SEC. 5611. SHORT TITLE AND 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 of 2001, 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. 5612. STATEMENT OF PURPOSE.

    ``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. 5613. 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 award 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 educational agencies and local 
                educational agencies and institutions of higher 
                education, including community colleges; and
                    ``(III) innovative approaches to school-community 
                partnerships for educational equity; and

            ``(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. 5614. 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 5613(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 5613(b)(1), 
    demonstrate how parental involvement in the project will be 
    encouraged; and
        ``(5) for applications for assistance under section 5613(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. 5615. 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 5613(b) to ensure that funds under this subpart are used 
    for programs that most effectively will achieve the purposes of 
    this subpart.
        ``(2) Criteria.--The criteria described in paragraph (1) may 
    include the extent to which the activities assisted under this 
    subpart--
            ``(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 awarding grants 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. 5616. REPORT.

    ``Not later than January 1, 2006, the Secretary shall submit to the 
President and Congress a report on the status of educational equity for 
girls and women in the Nation.

``SEC. 5617. ADMINISTRATION.

    ``(a) Evaluation and Dissemination.--Not later than January 1, 
2005, the Secretary shall evaluate and disseminate materials and 
programs developed under this subpart and shall report to Congress 
regarding such evaluation materials and programs.
    ``(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. 5618. AMOUNT.

    ``From amounts made available to carry out this subpart for a 
fiscal year, not less than two-thirds of such amount shall be used to 
carry out the activities described in section 5613(b)(1).''.

SEC. 502. CONTINUATION OF AWARDS.

    (a) In General.--Notwithstanding any other provision of this Act or 
the Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et 
seq.), in the case of any agency or consortium that was awarded a grant 
under section 5111 of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7211) or any person or agency that was awarded a 
contract or grant under part B, D, or E of title X of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 8031 et seq., 8091 et 
seq., 8131 et seq.), prior to the date of enactment of this Act, the 
Secretary of Education shall continue to provide funds in accordance 
with the terms of such award until the date on which the award period 
terminates under such terms.
    (b) Special Rule.--Notwithstanding any other provision of this Act, 
any person or agency that was awarded or entered into a grant, 
contract, or cooperative agreement under part B of title V of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 7231 et 
seq.), prior to the date of enactment of this Act shall continue to 
receive funds in accordance with the terms of such grant, contract, or 
agreement until the date on which the grant, contract, or agreement 
period terminates under such terms.

                TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

SEC. 601. FLEXIBILITY AND ACCOUNTABILITY.

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

               ``TITLE VI--FLEXIBILITY AND ACCOUNTABILITY

                ``PART A--IMPROVING ACADEMIC ACHIEVEMENT

                      ``Subpart 1--Accountability

``SEC. 6111. GRANTS FOR STATE ASSESSMENTS AND RELATED ACTIVITIES.

    ``The Secretary shall make grants to States to enable the States--
        ``(1) to pay the costs of the development of the additional 
    State assessments and standards required by section 1111(b), which 
    may include the costs of working in voluntary partnerships with 
    other States, at the sole discretion of each such State; and
        ``(2) if a State has developed the assessments and standards 
    required by section 1111(b), to administer those assessments or to 
    carry out other activities described in this subpart and other 
    activities related to ensuring that the State's schools and local 
    educational agencies are held accountable for results, such as the 
    following:
            ``(A) Developing challenging State academic content and 
        student academic achievement standards and aligned assessments 
        in academic subjects for which standards and assessments are 
        not required by section 1111(b).
            ``(B) Developing or improving assessments of English 
        language proficiency necessary to comply with section 
        1111(b)(7).
            ``(C) Ensuring the continued validity and reliability of 
        State assessments.
            ``(D) Refining State assessments to ensure their continued 
        alignment with the State's academic content standards and to 
        improve the alignment of curricula and instructional materials.
            ``(E) Developing multiple measures to increase the 
        reliability and validity of State assessment systems.
            ``(F) Strengthening the capacity of local educational 
        agencies and schools to provide all students the opportunity to 
        increase educational achievement, including carrying out 
        professional development activities aligned with State student 
        academic achievement standards and assessments.
            ``(G) Expanding the range of accommodations available to 
        students with limited English proficiency and students with 
        disabilities to improve the rates of inclusion of such 
        students, including professional development activities aligned 
        with State academic achievement standards and assessments.
            ``(H) Improving the dissemination of information on student 
        achievement and school performance to parents and the 
        community, including the development of information and 
        reporting systems designed to identify best educational 
        practices based on scientifically based research or to assist 
        in linking records of student achievement, length of 
        enrollment, and graduation over time.

``SEC. 6112. GRANTS FOR ENHANCED ASSESSMENT INSTRUMENTS.

    ``(a) Grant Program Authorized.--From funds made available to carry 
out this subpart, the Secretary shall award, on a competitive basis, 
grants to State educational agencies that have submitted an application 
at such time, in such manner, and containing such information as the 
Secretary may require, which demonstrate to the satisfaction of the 
Secretary, that the requirements of this section will be met, for the 
following:
        ``(1) To enable States (or consortia of States) to collaborate 
    with institutions of higher education, other research institutions, 
    or other organizations to improve the quality, validity, and 
    reliability of State academic assessments beyond the requirements 
    for such assessments described in section 1111(b)(3).
        ``(2) To measure student academic achievement using multiple 
    measures of student academic achievement from multiple sources.
        ``(3) To chart student progress over time.
        ``(4) To evaluate student academic achievement through the 
    development of comprehensive academic assessment instruments, such 
    as performance and technology-based academic assessments.
    ``(b) Application.--Each State wishing to apply for funds under 
this section shall include in its State plan under part A of title I 
such information as the Secretary may require.
    ``(c) Annual Report.--Each State educational agency receiving a 
grant under this section shall submit an annual report to the Secretary 
describing its activities, and the result of those activities, under 
the grant.

``SEC. 6113. FUNDING.

    ``(a) Authorization of Appropriations.--
        ``(1) 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 $72,000,000 for fiscal year 2002, and such sums as may 
    be necessary for each of the 5 succeeding fiscal years.
        ``(2) State assessments and related activities.--For the 
    purpose of carrying out this subpart, there are authorized to be 
    appropriated $490,000,000 for fiscal year 2002, and such sums as 
    may be necessary for each of the 5 succeeding fiscal years.
    ``(b) Allotment of Appropriated Funds.--
        ``(1) In general.--From amounts made available for each fiscal 
    year under subsection (a)(2) that are equal to or less than the 
    amount described in section 1111(b)(3)(D) (hereinafter in this 
    subsection referred to as the `trigger amount'), the Secretary 
    shall--
            ``(A) reserve one-half of 1 percent for the Bureau of 
        Indian Affairs;
            ``(B) reserve one-half of 1 percent for the outlying areas; 
        and
            ``(C) from the remainder, allocate to each State an amount 
        equal to--
                ``(i) $3,000,000; and
                ``(ii) with respect to any amounts remaining after the 
            allocation is made under clause (i), an amount that bears 
            the same relationship to such total remaining amounts as 
            the number of students ages 5 through 17 in the State (as 
            determined by the Secretary on the basis of the most recent 
            satisfactory data) bears to the total number of such 
            students in all States.
        ``(2) Remainder.--Any amounts remaining for a fiscal year after 
    the Secretary carries out paragraph (1) shall be made available as 
    follows:
            ``(A)(i) To award funds under section 6112 to States 
        according to the quality, needs, and scope of the State 
        application under that section.
            ``(ii) In determining the grant amount under clause (i), 
        the Secretary shall ensure that a State's grant shall include 
        an amount that bears the same relationship to the total funds 
        available under this paragraph for the fiscal year as the 
        number of students ages 5 through 17 in the State (as 
        determined by the Secretary on the basis of the most recent 
        satisfactory data) bears to the total number of such students 
        in all States.
            ``(B) Any amounts remaining after the Secretary awards 
        funds under subparagraph (A) shall be allocated to each State 
        that did not receive a grant under such subparagraph, in an 
        amount that bears the same relationship to the total funds 
        available under this subparagraph as the number of students 
        ages 5 through 17 in the State (as determined by the Secretary 
        on the basis of the most recent satisfactory data) bears to the 
        total number of such students in all States.
    ``(c) State Defined.--In this section, the term `State' means each 
of the 50 States, the District of Columbia, and the Commonwealth of 
Puerto Rico.

 ``Subpart 2--Funding Transferability for State and Local Educational 
                                Agencies

``SEC. 6121. SHORT TITLE.

    ``This subpart may be cited as the `State and Local Transferability 
Act'.

``SEC. 6122. PURPOSE.

    ``The purpose of this subpart is to allow States and local 
educational agencies the flexibility--
        ``(1) to target Federal funds to Federal programs that most 
    effectively address the unique needs of States and localities; and
        ``(2) to transfer Federal funds allocated to other activities 
    to allocations for certain activities authorized under title I.

``SEC. 6123. TRANSFERABILITY OF FUNDS.

    ``(a) Transfers by States.--
        ``(1) In general.--In accordance with this subpart, a State may 
    transfer not more than 50 percent of the nonadministrative State 
    funds (including funds transferred under paragraph (2)) allotted to 
    the State for use for State-level activities under the following 
    provisions for a fiscal year to one or more of the State's 
    allotments for such fiscal year under any other of such provisions:
            ``(A) Section 2113(a)(3).
            ``(B) Section 2412(a)(1).
            ``(C) Subsections (a)(1) (with the agreement of the 
        Governor) and (c)(1) of section 4112 and section 4202(c)(3).
            ``(D) Section 5112(b).
        ``(2) Additional funds for title i.--In accordance with this 
    subpart and subject to the 50 percent limitation described in 
    paragraph (1), a State may transfer any funds allotted to the State 
    under a provision listed in paragraph (1) to its allotment under 
    title I.
    ``(b) Transfers by Local Educational Agencies.--
        ``(1) Authority to transfer funds.--
            ``(A) In general.--In accordance with this subpart, a local 
        educational agency (except a local educational agency 
        identified for improvement under section 1116(c) or subject to 
        corrective action under section 1116(c)(9)) may transfer not 
        more than 50 percent of the funds allocated to it (including 
        funds transferred under subparagraph (C)) under each of the 
        provisions listed in paragraph (2) for a fiscal year to one or 
        more of its allocations for such fiscal year under any other 
        provision listed in paragraph (2).
            ``(B) Agencies identified for improvement.--In accordance 
        with this subpart, a local educational agency identified for 
        improvement under section 1116(c) may transfer not more than 30 
        percent of the funds allocated to it (including funds 
        transferred under subparagraph (C)) under each of the 
        provisions listed in paragraph (2) for a fiscal year--
                ``(i) to its allocation for school improvement for such 
            fiscal year under section 1003; or
                ``(ii) to any other allocation for such fiscal year if 
            such transferred funds are used only for local educational 
            agency improvement activities consistent with section 
            1116(c).
            ``(C) Additional funds for title i.--In accordance with 
        this subpart and subject to the percentage limitation described 
        in subparagraph (A) or (B), as applicable, a local educational 
        agency may transfer funds allocated to such agency under any of 
        the provisions listed in paragraph (2) for a fiscal year to its 
        allocation for part A of title I for that fiscal year.
        ``(2) Applicable provisions.--A local educational agency may 
    transfer funds under subparagraph (A), (B), or (C) of paragraph (1) 
    from allocations made under each of the following provisions:
            ``(A) Section 2121.
            ``(B) Section 2412(a)(2)(A).
            ``(C) Section 4112(b)(1).
            ``(D) Section 5112(a).
    ``(c) No Transfer of Title I Funds.--A State or a local educational 
agency may not transfer under this subpart to any other program any 
funds allotted or allocated to it for part A of title I.
    ``(d) Modification of Plans and Applications; Notification.--
        ``(1) State transfers.--Each State that makes a transfer of 
    funds under this section shall--
            ``(A) modify, to account for such transfer, each State 
        plan, or application submitted by the State, to which such 
        funds relate;
            ``(B) not later than 30 days after the date of such 
        transfer, submit a copy of such modified plan or application to 
        the Secretary; and
            ``(C) not later than 30 days before the effective date of 
        such transfer, notify the Secretary of such transfer.
        ``(2) Local transfers.--Each local educational agency that 
    makes a transfer of funds under this section shall--
            ``(A) modify, to account for such transfer, each local 
        plan, or application submitted by the agency, to which such 
        funds relate;
            ``(B) not later than 30 days after the date of such 
        transfer, submit a copy of such modified plan or application to 
        the State; and
            ``(C) not later than 30 days before the effective date of 
        such transfer, notify the State of such transfer.
    ``(e) Applicable Rules.--
        ``(1) In general.--Except as otherwise provided in this 
    subpart, funds transferred under this section are subject to each 
    of the rules and requirements applicable to the funds under the 
    provision to which the transferred funds are transferred.
        ``(2) Consultation.--Each State educational agency or local 
    educational agency that transfers funds under this section shall 
    conduct consultations in accordance with section 9501, if such 
    transfer transfers funds from a program that provides for the 
    participation of students, teachers, or other educational 
    personnel, from private schools.

         ``Subpart 3--State and Local Flexibility Demonstration

``SEC. 6131. SHORT TITLE.

    ``This subpart may be cited as the `State and Local Flexibility 
Demonstration Act'.

``SEC. 6132. PURPOSE.

    ``The purpose of this subpart is to create options for selected 
State educational agencies and local educational agencies--
        ``(1) to improve the academic achievement of all students, and 
    to focus the resources of the Federal Government upon such 
    achievement;
        ``(2) to improve teacher quality and subject matter mastery, 
    especially in mathematics, reading, and science;
        ``(3) to better empower parents, educators, administrators, and 
    schools to effectively address the needs of their children and 
    students;
        ``(4) 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;
        ``(5) to eliminate barriers to implementing effective State and 
    local education reform, while preserving the goals of opportunity 
    for all students and accountability for student progress;
        ``(6) to hold participating State educational agencies and 
    local educational agencies accountable for increasing the academic 
    achievement of all students, especially disadvantaged students; and
        ``(7) to narrow achievement gaps between the lowest and highest 
    achieving groups of students so that no child is left behind.

``SEC. 6133. GENERAL PROVISION.

    ``For purposes of this subpart, any State that is one local 
educational agency shall be considered a State educational agency and 
not a local educational agency.

                ``CHAPTER A--STATE FLEXIBILITY AUTHORITY

``SEC. 6141. STATE FLEXIBILITY.

    ``(a) Flexibility Authority.--Except as otherwise provided in this 
chapter, the Secretary shall, on a competitive basis, grant flexibility 
authority to not more than seven eligible State educational agencies, 
under which the agencies may consolidate and use funds in accordance 
with section 6142.
    ``(b) Definitions.--In this chapter:
        ``(1) Eligible state educational agency.--The term `eligible 
    State educational agency' means a State educational agency that--
            ``(A) submits an approvable application under subsection 
        (c); and
            ``(B) proposes performance agreements--
                ``(i) that shall be entered into with not fewer than 4, 
            and not more than 10, local educational agencies;
                ``(ii) not fewer than half of which shall be entered 
            into with high-poverty local educational agencies; and
                ``(iii) that require the local educational agencies 
            described in clause (i) to align their use of consolidated 
            funds under section 6152 with the State educational 
            agency's use of consolidated funds under section 6142.
        ``(2) High-poverty local educational agency.--The term `high-
    poverty local educational agency' means a local educational agency 
    for which 20 percent or more of the children who are age 5 through 
    17, and served by the local educational agency, are from families 
    with incomes below the poverty line.
    ``(c) State Applications.--
        ``(1) Applications.--To be eligible to receive flexibility 
    authority under this chapter, 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, including--
            ``(A) information demonstrating, to the satisfaction of the 
        Secretary, that the grant of authority offers substantial 
        promise of--
                ``(i) assisting the State educational agency in making 
            adequate yearly progress, as defined under section 
            1111(b)(2); and
                ``(ii) aligning State and local reforms and assisting 
            the local educational agencies that enter into performance 
            agreements with the State educational agency under 
            paragraph (2) in making such adequate yearly progress;
            ``(B) the performance agreements that the State educational 
        agency proposes to enter into with eligible local educational 
        agencies under paragraph (2);
            ``(C) information demonstrating that the State educational 
        agency has consulted with and involved parents, representatives 
        of local educational agencies, and other educators in the 
        development of the terms of the grant of authority;
            ``(D) a provision specifying that the grant of flexibility 
        authority shall be for a term of not more than 5 years;
            ``(E) a list of the programs described in section 6142(b) 
        that are included in the scope of the grant of authority;
            ``(F) a provision specifying that no requirements of any 
        program described in section 6142(b) and included by a State 
        educational agency in the scope of the grant of authority shall 
        apply to that agency, except as otherwise provided in this 
        chapter;
            ``(G) a 5-year plan describing how the State educational 
        agency intends to consolidate and use the funds from programs 
        included in the scope of the grant of authority, for any 
        educational purpose authorized under this Act, in order to make 
        adequate yearly progress and advance the education priorities 
        of the State and the local educational agencies with which the 
        State educational agency enters into performance agreements;
            ``(H) an assurance that the State educational agency will 
        provide parents, teachers, and representatives of local 
        educational agencies and schools with notice and an opportunity 
        to comment on the proposed terms of the grant of authority;
            ``(I) an assurance that the State educational agency, and 
        the local educational agencies with which the State educational 
        agency enters into performance agreements, will use fiscal 
        control and fund accounting procedures that will ensure proper 
        disbursement of, and accounting for, Federal funds consolidated 
        and used under the grant of authority;
            ``(J) an assurance that the State educational agency, and 
        the local educational agencies with which the State educational 
        agency enters into performance agreements, will meet the 
        requirements of all applicable Federal civil rights laws in 
        carrying out the grant of authority, including consolidating 
        and using funds under the grant of authority;
            ``(K) an assurance that, in consolidating and using funds 
        under the grant of authority--
                ``(i) the State educational agency, and the local 
            educational agencies with which the State educational 
            agency enters into performance agreements, will provide for 
            the equitable participation of students and professional 
            staff in private schools consistent with section 9501; and
                ``(ii) that sections 9502, 9503, and 9504 shall apply 
            to all services and assistance provided with such funds in 
            the same manner as such sections apply to services and 
            assistance provided in accordance with section 9501;
            ``(L) an assurance that the State educational agency will, 
        for the duration of the grant of authority, use funds 
        consolidated under section 6142 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 not to supplant those funds; and
            ``(M) an assurance that the State educational agency shall, 
        not later than 1 year after the date on which the Secretary 
        makes the grant of authority, and annually thereafter during 
        the term of the grant of authority, disseminate widely to 
        parents and the general public, transmit to the Secretary, 
        distribute to print and broadcast media, and post on the 
        Internet, a report, which shall include a detailed description 
        of how the State educational agency, and the local educational 
        agencies with which the State educational agency enters into 
        performance agreements, used the funds consolidated under the 
        grant of authority to make adequate yearly progress and advance 
        the education priorities of the State and local educational 
        agencies in the State.
        ``(2) Proposed performance agreements with local educational 
    agencies.--
            ``(A) In general.--A State educational agency that wishes 
        to receive flexibility authority under this subpart shall 
        propose performance agreements that meet the requirements of 
        clauses (i) and (ii) of subsection (b)(1)(B) (subject to 
        approval of the application or amendment involved under 
        subsection (d) or (e)).
            ``(B) Performance agreements.--Each proposed performance 
        agreement with a local educational agency shall--
                ``(i) contain plans for the local educational agency to 
            consolidate and use funds in accordance with section 6152, 
            for activities that are aligned with the State educational 
            agency's plan described in paragraph (1)(G);
                ``(ii) be subject to the requirements of chapter B 
            relating to agreements between the Secretary and a local 
            educational agency, except--

                    ``(I) that, as appropriate, references in that 
                chapter to the Secretary shall be deemed to be 
                references to the State educational agency; and
                    ``(II) as otherwise provided in this chapter; and

                ``(iii) contain an assurance that the local educational 
            agency will, for the duration of the grant of authority, 
            use funds consolidated under section 6152 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 not to 
            supplant those funds.
    ``(d) Approval and Selection.--The Secretary shall--
        ``(1) establish a peer review process to assist in the review 
    of proposed State applications under this section; and
        ``(2) appoint individuals to participate in the peer review 
    process who are--
            ``(A) representative of parents, teachers, State 
        educational agencies, and local educational agencies; and
            ``(B) familiar with educational standards, assessments, 
        accountability, curricula, instruction, and staff development, 
        and other diverse educational needs of students.
    ``(e) Amendment to Grant of Authority.--
        ``(1) In general.--Subject to paragraph (2), the Secretary 
    shall amend the grant of flexibility authority made to a State 
    educational agency under this chapter, in each of the following 
    circumstances:
            ``(A) Reduction in scope of the grant of authority.--Not 
        later than 1 year after receiving a grant of flexibility 
        authority, the State educational agency seeks to amend the 
        grant of authority to remove from the scope of the grant of 
        authority any program described in section 6142(b).
            ``(B) Expansion of scope of the grant of authority.--Not 
        later than 1 year after receiving a grant of flexibility 
        authority, the State educational agency seeks to amend the 
        grant of authority to include in the scope of the grant of 
        authority any additional program described in section 6142(b) 
        or any additional achievement indicators for which the State 
        will be held accountable.
            ``(C) Changes with respect to number of performance 
        agreements.--The State educational agency seeks to amend the 
        grant of authority to include or remove performance agreements 
        that the State educational agency proposes to enter into with 
        eligible local educational agencies, except that in no case may 
        the State educational agency enter into performance agreements 
        that do not meet the requirements of clauses (i) and (ii) of 
        subsection (b)(1)(B).
        ``(2) Approval and disapproval.--
            ``(A) Deemed approval.--A proposed amendment to a grant of 
        flexibility authority submitted by a State educational agency 
        pursuant to paragraph (1) shall be deemed to be approved by the 
        Secretary unless the Secretary makes a written determination, 
        prior to the expiration of the 120-day period beginning on the 
        date on which the Secretary received the proposed amendment, 
        that the proposed amendment is not in compliance with this 
        chapter.
            ``(B) Disapproval.--The Secretary shall not finally 
        disapprove the proposed amendment, except after giving the 
        State educational agency notice and an opportunity for a 
        hearing.
            ``(C) Notification.--If the Secretary finds that the 
        proposed amendment is not in compliance, in whole or in part, 
        with this chapter, the Secretary shall--
                ``(i) give the State educational agency notice and an 
            opportunity for a hearing; and
                ``(ii) notify the State educational agency of the 
            finding of noncompliance and, in such notification, shall--

                    ``(I) cite the specific provisions in the proposed 
                amendment that are not in compliance; and
                    ``(II) request additional information, only as to 
                the noncompliant provisions, needed to make the 
                proposed amendment compliant.

            ``(D) Response.--If the State educational agency responds 
        to the Secretary's notification described in subparagraph 
        (C)(ii) during the 45-day period beginning on the date on which 
        the agency received the notification, and resubmits the 
        proposed amendment with the requested information described in 
        subparagraph (C)(ii)(II), the Secretary shall approve or 
        disapprove such proposed amendment prior to the later of--
                ``(i) the expiration of the 45-day period beginning on 
            the date on which the proposed amendment is resubmitted; or
                ``(ii) the expiration of the 120-day period described 
            in subparagraph (A).
            ``(E) Failure to respond.--If the State educational agency 
        does not respond to the Secretary's notification described in 
        subparagraph (C)(ii) during the 45-day period beginning on the 
        date on which the agency received the notification, such 
        proposed amendment shall be deemed to be disapproved.
        ``(3) Treatment of program funds withdrawn from grant of 
    authority.--Beginning on the effective date of an amendment 
    executed under paragraph (1)(A), each program requirement of each 
    program removed from the scope of a grant of authority shall apply 
    to the use of funds made available under the program by the State 
    educational agency and each local educational agency with which the 
    State educational agency has a performance agreement.

``SEC. 6142. CONSOLIDATION AND USE OF FUNDS.

    ``(a) In General.--
        ``(1) Authority.--Under a grant of flexibility authority made 
    under this chapter, a State educational agency may consolidate 
    Federal funds described in subsection (b) and made available to the 
    agency, and use such funds for any educational purpose authorized 
    under this Act.
        ``(2) Program requirements.--Except as otherwise provided in 
    this chapter, a State educational agency may use funds under 
    paragraph (1) notwithstanding the program requirements of the 
    program under which the funds were made available to the State.
    ``(b) Eligible Funds and Programs.--
        ``(1) Funds.--The funds described in this subsection are funds, 
    for State-level activities and State administration, that are 
    described in the following provisions:
            ``(A) Section 1004.
            ``(B) Paragraphs (4) and (5) of section 1202(d).
            ``(C) Section 2113(a)(3).
            ``(D) Section 2412(a)(1).
            ``(E) Subsections (a) (with the agreement of the Governor), 
        (b)(2), and (c)(1) of section 4112.
            ``(F) Paragraphs (2) and (3) of section 4202(c).
            ``(G) Section 5112(b).
        ``(2) Programs.--The programs described in this subsection are 
    the programs authorized to be carried out with funds described in 
    paragraph (1).
    ``(c) Special Rule.--A State educational agency that receives a 
grant of flexibility authority under this chapter--
        ``(1) shall ensure that the funds described in section 5112(a) 
    are allocated to local educational agencies in the State in 
    accordance with section 5112(a); but
        ``(2) may specify how the local educational agencies shall use 
    the allocated funds.

``SEC. 6143. PERFORMANCE REVIEW AND PENALTIES.

    ``(a) Midterm Review.--
        ``(1) Failure to make adequate yearly progress.--If, during the 
    term of a grant of flexibility authority under this chapter, a 
    State educational agency fails to make adequate yearly progress for 
    2 consecutive years, the Secretary shall, after providing notice 
    and an opportunity for a hearing, terminate the grant of authority 
    promptly.
        ``(2) Noncompliance.--The Secretary may, after providing notice 
    and an opportunity for a hearing (including the opportunity to 
    provide evidence as described in paragraph (3)), terminate a grant 
    of flexibility authority for a State if there is evidence that the 
    State educational agency involved has failed to comply with the 
    terms of the grant of authority.
        ``(3) Evidence.--If a State educational agency believes that a 
    determination of the Secretary 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 
    termination determination under this subsection.
    ``(b) Final Review.--
        ``(1) In general.--If, at the end of the 5-year term of a grant 
    of flexibility authority made under this chapter, the State 
    educational agency has not met the requirements described in 
    section 6141(c), the Secretary may not renew the grant of 
    flexibility authority under section 6144.
        ``(2) Compliance.--Beginning on the date on which such term 
    ends, the State educational agency, and the local educational 
    agencies with which the State educational agency has entered into 
    performance agreements, shall be required to comply with each of 
    the program requirements in effect on such date for each program 
    that was included in the grant of authority.

``SEC. 6144. RENEWAL OF GRANT OF FLEXIBILITY AUTHORITY.

    ``(a) In General.--Except as provided in section 6143 and in 
accordance with this section, if a State educational agency has met, by 
the end of the original 5-year term of a grant of flexibility authority 
under this chapter, the requirements described in section 6141(c), the 
Secretary shall renew a grant of flexibility authority for one 
additional 5-year term.
    ``(b) Renewal.--The Secretary may not renew a grant of flexibility 
authority under this chapter unless, not later than 6 months before the 
end of the original term of the grant of authority, the State 
educational agency seeking the renewal notifies the Secretary, and the 
local educational agencies with which the State educational agency has 
entered into performance agreements, of the agency's intention to renew 
the grant of authority.
    ``(c) Effective Date.--A renewal under this section shall be 
effective on the later of--
        ``(1) the expiration of the original term of the grant of 
    authority; or
        ``(2) the date on which the State educational agency seeking 
    the renewal provides to the Secretary all data required for the 
    application described in section 6141(c).

              ``CHAPTER B--LOCAL FLEXIBILITY DEMONSTRATION

``SEC. 6151. LOCAL FLEXIBILITY DEMONSTRATION AGREEMENTS.

    ``(a) Authority.--Except as otherwise provided in this chapter, the 
Secretary shall, on a competitive basis, enter into local flexibility 
demonstration agreements--
        ``(1) with local educational agencies that submit approvable 
    proposed agreements under subsection (c) and that are selected 
    under subsection (b); and
        ``(2) under which those agencies may consolidate and use funds 
    in accordance with section 6152.
    ``(b) Selection of Local Educational Agencies.--
        ``(1) In general.--Subject to paragraph (2), the Secretary 
    shall enter into local flexibility demonstration agreements under 
    this chapter with not more than 80 local educational agencies. Each 
    local educational agency shall be selected on a competitive basis 
    from among those local educational agencies that--
            ``(A) submit a proposed local flexibility demonstration 
        agreement under subsection (c) to the Secretary and 
        demonstrate, to the satisfaction of the Secretary, that the 
        agreement--
                ``(i) has a substantial promise of assisting the local 
            educational agency in meeting the State's definition of 
            adequate yearly progress, advancing the education 
            priorities of the local educational agency, meeting the 
            general purposes of the programs included under this 
            chapter and the purposes of this part, improving student 
            achievement, and narrowing achievement gaps in accordance 
            with section 1111(b);
                ``(ii) meets the requirements of this chapter; and
                ``(iii) contains a plan to consolidate and use funds in 
            accordance with section 6152 in order to meet the State's 
            definition of adequate yearly progress and the local 
            educational agency's specific, measurable goals for 
            improving student achievement and narrowing achievement 
            gaps; and
            ``(B) have consulted and involved parents and other 
        educators in the development of the proposed local flexibility 
        demonstration agreement.
        ``(2) Geographic distribution.--
            ``(A) Initial agreements.--The Secretary may enter into not 
        more than three local flexibility demonstration agreements 
        under this chapter with local educational agencies in each 
        State that does not have a grant of flexibility authority under 
        chapter A.
            ``(B) Urban and rural areas.--If more than three local 
        educational agencies in a State submit approvable local 
        flexibility demonstration agreements under this chapter, the 
        Secretary shall select local educational agencies with which to 
        enter into such agreements in a manner that ensures an 
        equitable distribution among such agencies serving urban and 
        rural areas.
            ``(C) Priority of states to enter into state flexibility 
        demonstration agreements.--Notwithstanding any other provision 
        of this part, a local educational agency may not seek to enter 
        into a local flexibility demonstration agreement under this 
        chapter if that agency is located in a State for which the 
        State educational agency--
                ``(i) has, not later than 4 months after the date of 
            enactment of the No Child Left Behind Act of 2001, notified 
            the Secretary of its intent to apply for a grant of 
            flexibility authority under chapter A and, within such 
            period of time as the Secretary may establish, is provided 
            with such authority by the Secretary; or
                ``(ii) has, at any time after such period, been granted 
            flexibility authority under chapter A.
    ``(c) Required Terms of Local Flexibility Demonstration 
Agreement.--Each local flexibility demonstration agreement entered into 
with the Secretary under this chapter shall contain each of the 
following terms:
        ``(1) Duration.--The local flexibility demonstration agreement 
    shall be for a term of 5 years.
        ``(2) Application of program requirements.--The local 
    flexibility demonstration agreement shall provide that no 
    requirements of any program described in section 6152 and included 
    by a local educational agency in the scope of its agreement shall 
    apply to that agency, except as otherwise provided in this chapter.
        ``(3) List of programs.--The local flexibility demonstration 
    agreement shall list which of the programs described in section 
    6152 are included in the scope of the agreement.
        ``(4) Use of funds to improve student achievement.--The local 
    flexibility demonstration agreement shall contain a 5-year plan 
    describing how the local educational agency intends to consolidate 
    and use the funds from programs included in the scope of the 
    agreement for any educational purpose authorized under this Act to 
    advance the education priorities of the local educational agency, 
    meet the general purposes of the included programs, improve student 
    achievement, and narrow achievement gaps in accordance with section 
    1111(b).
        ``(5) Local input.--The local flexibility demonstration 
    agreement shall contain an assurance that the local educational 
    agency will provide parents, teachers, and representatives of 
    schools with notice and an opportunity to comment on the proposed 
    terms of the local flexibility demonstration agreement.
        ``(6) Fiscal responsibilities.--The local flexibility 
    demonstration agreement shall contain an assurance that the local 
    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 agreement.
        ``(7) Civil rights.--The local flexibility demonstration 
    agreement shall contain an assurance that the local educational 
    agency will meet the requirements of all applicable Federal civil 
    rights laws in carrying out the agreement and in consolidating and 
    using the funds under the agreement.
        ``(8) Private school participation.--The local flexibility 
    demonstration agreement shall contain an assurance that the local 
    educational agency agrees that in consolidating and using funds 
    under the agreement--
            ``(A) the local educational agency, will provide for the 
        equitable participation of students and professional staff in 
        private schools consistent with section 9501; and
            ``(B) that sections 9502, 9503, and 9504 shall apply to all 
        services and assistance provided with such funds in the same 
        manner as such sections apply to services and assistance 
        provided in accordance with section 9501.
        ``(9) Supplanting.--The local flexibility demonstration 
    agreement shall contain an assurance that the local educational 
    agency will, for the duration of the grant of authority, use funds 
    consolidated under section 6152 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 
    not to supplant those funds.
        ``(10) Annual reports.--The local flexibility demonstration 
    agreement shall contain an assurance that the local educational 
    agency shall, not later than 1 year after the date on which the 
    Secretary enters into the agreement, and annually thereafter during 
    the term of the agreement, disseminate widely to parents and the 
    general public, transmit to the Secretary, and the State 
    educational agency for the State in which the local educational 
    agency is located, distribute to print and broadcast media, and 
    post on the Internet, a report that includes a detailed description 
    of how the local educational agency used the funds consolidated 
    under the agreement to improve student academic achievement and 
    reduce achievement gaps.
    ``(d) Peer Review.--The Secretary shall--
        ``(1) establish a peer review process to assist in the review 
    of proposed local flexibility demonstration agreements under this 
    chapter; and
        ``(2) 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.
    ``(e) Amendment to Performance Agreement.--
        ``(1) In general.--In each of the following circumstances, the 
    Secretary shall amend a local flexibility demonstration agreement 
    entered into with a local educational agency under this chapter:
            ``(A) Reduction in scope of local flexibility demonstration 
        agreement.--Not later than 1 year after entering into a local 
        flexibility demonstration agreement, the local educational 
        agency seeks to amend the agreement to remove from the scope 
        any program described in section 6152.
            ``(B) Expansion of scope of local flexibility demonstration 
        agreement.--Not later than 1 year after entering into the local 
        flexibility demonstration agreement, a local educational agency 
        seeks to amend the agreement to include in its scope any 
        additional program described in section 6251 or any additional 
        achievement indicators for which the local educational agency 
        will be held accountable.
        ``(2) Approval and disapproval.--
            ``(A) Deemed approval.--A proposed amendment to a local 
        flexibility demonstration agreement pursuant to paragraph (1) 
        shall be deemed to be approved by the Secretary unless the 
        Secretary makes a written determination, prior to the 
        expiration of the 120-day period beginning on the date on which 
        the Secretary received the proposed amendment, that the 
        proposed amendment is not in compliance with this chapter.
            ``(B) Disapproval.--The Secretary shall not finally 
        disapprove the proposed amendment, except after giving the 
        local educational agency notice and an opportunity for a 
        hearing.
            ``(C) Notification.--If the Secretary finds that the 
        proposed amendment is not in compliance, in whole or in part, 
        with this chapter, the Secretary shall--
                ``(i) give the local educational agency notice and an 
            opportunity for a hearing; and
                ``(ii) notify the local educational agency of the 
            finding of noncompliance and, in such notification, shall--

                    ``(I) cite the specific provisions in the proposed 
                amendment that are not in compliance; and
                    ``(II) request additional information, only as to 
                the noncompliant provisions, needed to make the 
                proposed amendment compliant.

            ``(D) Response.--If the local educational agency responds 
        to the Secretary's notification described in subparagraph 
        (C)(ii) during the 45-day period beginning on the date on which 
        the agency received the notification, and resubmits the 
        proposed amendment with the requested information described in 
        subparagraph (C)(ii)(II), the Secretary shall approve or 
        disapprove such proposed amendment prior to the later of--
                ``(i) the expiration of the 45-day period beginning on 
            the date on which the proposed amendment is resubmitted; or
                ``(ii) the expiration of the 120-day period described 
            in subparagraph (A).
            ``(E) Failure to respond.--If the local educational agency 
        does not respond to the Secretary's notification described in 
        subparagraph (C)(ii) during the 45-day period beginning on the 
        date on which the agency received the notification, such 
        proposed amendment shall be deemed to be disapproved.
        ``(3) Treatment of program funds withdrawn from agreement.--
    Beginning on the effective date of an amendment executed under 
    paragraph (1)(A), each program requirement of each program removed 
    from the scope of a local flexibility demonstration agreement shall 
    apply to the use of funds made available under the program by the 
    local educational agency.

``SEC. 6152. CONSOLIDATION AND USE OF FUNDS.

    ``(a) In General.--
        ``(1) Authority.--Under a local flexibility demonstration 
    agreement entered into under this chapter, a local educational 
    agency may consolidate Federal funds made available to the agency 
    under the provisions listed in subsection (b) and use such funds 
    for any educational purpose permitted under this Act.
        ``(2) Program requirements.--Except as otherwise provided in 
    this chapter, a local educational agency may use funds under 
    paragraph (1) notwithstanding the program requirements of the 
    program under which the funds were made available to the agency.
    ``(b) Eligible Programs.--Program funds made available to local 
educational agencies on the basis of a formula under the following 
provisions may be consolidated and used under subsection (a):
        ``(1) Subpart 2 of part A of title II.
        ``(2) Subpart 1 of part D of title II.
        ``(3) Subpart 1 of part A of title IV.
        ``(4) Subpart 1 of part A of title V.

``SEC. 6153. LIMITATIONS ON ADMINISTRATIVE EXPENDITURES.

    ``Each local educational agency that has entered into a local 
flexibility demonstration agreement with the Secretary under this 
chapter may use for administrative purposes not more than 4 percent of 
the total amount of funds allocated to the agency under the programs 
included in the scope of the agreement.

``SEC. 6154. PERFORMANCE REVIEW AND PENALTIES.

    ``(a) Midterm Review.--
        ``(1) Failure to make adequate yearly progress.--If, during the 
    term of a local flexibility demonstration agreement, a local 
    educational agency fails to make adequate yearly progress for 2 
    consecutive years, the Secretary shall, after notice and 
    opportunity for a hearing, promptly terminate the agreement.
        ``(2) Noncompliance.--The Secretary may, after providing notice 
    and an opportunity for a hearing (including the opportunity to 
    provide information as provided for in paragraph (3)), terminate a 
    local flexibility demonstration agreement under this chapter if 
    there is evidence that the local educational agency has failed to 
    comply with the terms of the agreement.
        ``(3) Evidence.--If a local educational agency believes that 
    the Secretary's determination under this subsection is in error for 
    statistical or other substantive reasons, the local educational 
    agency may provide supporting evidence to the Secretary, and the 
    Secretary shall consider that evidence before making a final early 
    termination determination.
    ``(b) Final Review.--If, at the end of the 5-year term of a local 
flexibility demonstration agreement entered into under this chapter, 
the local educational agency has not met the requirements described in 
section 6151(c), the Secretary may not renew the agreement under 
section 6155 and, beginning on the date on which such term ends, the 
local educational agency shall be required to comply with each of the 
program requirements in effect on such date for each program included 
in the local flexibility demonstration agreement.

``SEC. 6155. RENEWAL OF LOCAL FLEXIBILITY DEMONSTRATION AGREEMENT.

    ``(a) In General.--Except as provided in section 6154 and in 
accordance with this section, the Secretary shall renew for one 
additional 5-year term a local flexibility demonstration agreement 
entered into under this chapter if the local educational agency has 
met, by the end of the original term of the agreement, the requirements 
described in section 6151(c).
    ``(b) Notification.--The Secretary may not renew a local 
flexibility demonstration agreement under this chapter unless, not less 
than 6 months before the end of the original term of the agreement, the 
local educational agency seeking the renewal notifies the Secretary of 
its intention to renew.
    ``(c) Effective Date.--A renewal under this section shall be 
effective at the end of the original term of the agreement or on the 
date on which the local educational agency seeking renewal provides to 
the Secretary all data required under the agreement, whichever is 
later.

``SEC. 6156. REPORTS.

    ``(a) Transmittal to Congress.--Not later than 60 days after the 
Secretary receives a report described in section 6151(b)(10), 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.
    ``(b) Limitation.--A State in which a local educational agency that 
has a local flexibility demonstration agreement is located may not 
require such local educational agency to provide any application 
information with respect to the programs included within the scope of 
that agreement other than that information that is required to be 
included in the report described in section 6151(b)(10).

     ``Subpart 4--State Accountability for Adequate Yearly Progress

``SEC. 6161. ACCOUNTABILITY FOR ADEQUATE YEARLY PROGRESS.

    ``In the case of a State educational agency that has a plan 
approved under subpart 1 of part A of title I after the date of 
enactment of the No Child Left Behind Act of 2001, and has a plan 
approved under subpart 1 of part A of title III of such Act after such 
date of enactment, the Secretary shall annually, starting with the 
beginning of the first school year following the first two school years 
for which such plans were implemented, review whether the State has--
        ``(1) made adequate yearly progress, as defined in section 
    1111(b)(2)(B), for each of the groups of students described in 
    section 1111(b)(2)(C)(v); and
        ``(2) met its annual measurable achievement objectives under 
    section 3122(a).

``SEC. 6162. PEER REVIEW.

    ``The Secretary shall use a peer review process to review, based on 
data from the State assessments administered under section 1111(b)(3) 
and on data from the evaluations conducted under section 3121, whether 
the State has failed to make adequate yearly progress for 2 consecutive 
years or whether the State has met its annual measurable achievement 
objectives.

``SEC. 6163. TECHNICAL ASSISTANCE.

    ``(a) Provision of Assistance.--
        ``(1) Adequate yearly progress.--Based on the review described 
    in section 6161(1), the Secretary shall provide technical 
    assistance to a State that has failed to make adequate yearly 
    progress, as defined in section 1111(b)(2), for 2 consecutive 
    years. The Secretary shall provide such assistance not later than 
    the beginning of the first school year that begins after such 
    determination is made.
        ``(2) Annual measurable achievement objectives.--Based on the 
    reviews described in section 6161(2), the Secretary may provide 
    technical assistance to a State that has failed to meet its annual 
    measurable achievement objectives under section 3122(a) for 2 
    consecutive years. The Secretary shall provide such assistance not 
    later than the beginning of the first school year that begins after 
    such determination is made.
    ``(b) Characteristics.--The technical assistance described in 
subsection (a) shall--
        ``(1) be valid, reliable and rigorous; and
        ``(2) provide constructive feedback to help the State make 
    adequate yearly progress, as defined in section 1111(b)(2), or meet 
    the annual measurable achievement objectives under section 3122(a).

``SEC. 6164. REPORT TO CONGRESS.

    ``Beginning with the school year that begins in 2005, the Secretary 
shall submit an annual report 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 containing the following:
        ``(1) A list of each State that has not made adequate yearly 
    progress based on the review conducted under section 6161(1).
        ``(2) A list of each State that has not met its annual 
    measurable achievement objectives based on the review conducted 
    under section 6161(2).
        ``(3) The information reported by the State to the Secretary 
    pursuant to section 1119(a).
        ``(4) A description of any technical assistance provided 
    pursuant to section 6163.

                  ``PART B--RURAL EDUCATION INITIATIVE

``SEC. 6201. SHORT TITLE.

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

``SEC. 6202. PURPOSE.

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

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

``SEC. 6211. USE OF APPLICABLE FUNDING.

    ``(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 local activities authorized 
    under any of the following provisions:
            ``(A) Part A of title I.
            ``(B) Part A or D of title II.
            ``(C) Title III.
            ``(D) Part A or B of title IV.
            ``(E) Part A of title V.
        ``(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), by a date that is established by the State 
    educational agency for the notification.
    ``(b) Eligibility.--
        ``(1) In general.--A local educational agency shall be eligible 
    to use the applicable funding in accordance with subsection (a) 
    if--
            ``(A)(i)(I) the total number of students in average daily 
        attendance at all of the schools served by the local 
        educational agency is fewer than 600; or
            ``(II) each county in which a school served by the local 
        educational agency is located has a total population density of 
        fewer than 10 persons per square mile; and
            ``(ii) 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; or
            ``(B) the agency meets the criteria established in 
        subparagraph (A)(i) and the Secretary, in accordance with 
        paragraph (2), grants the local educational agency's request to 
        waive the criteria described in subparagraph (A)(ii).
        ``(2) Certification.--The Secretary shall determine whether to 
    waive the criteria described in paragraph (1)(A)(ii) based on a 
    demonstration by the local educational agency, and concurrence by 
    the State 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 Defined.--In this section, the term 
`applicable funding' means funds provided under any of the following 
provisions:
        ``(1) Subpart 2 and section 2412(a)(2)(A) of title II.
        ``(2) Section 4114.
        ``(3) Part A of title V.
    ``(d) Disbursement.--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 as 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) Applicable Rules.--Applicable funding under this section 
shall be available to carry out local activities authorized under 
subsection (a).

``SEC. 6212. 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 authorized under any of the following 
provisions:
        ``(1) Part A of title I.
        ``(2) Part A or D of title II.
        ``(3) Title III.
        ``(4) Part A or B of title IV.
        ``(5) Part A of title V.
    ``(b) Allocation.--
        ``(1) In general.--Except as provided in paragraph (3), the 
    Secretary shall award a grant under subsection (a) to a local 
    educational agency eligible under section 6211(b) for a fiscal year 
    in an amount equal to the initial amount determined under paragraph 
    (2) for the fiscal year minus the total amount received by the 
    agency under the provisions of law described in section 6211(c) for 
    the preceding fiscal year.
        ``(2) Determination of initial amount.--The initial amount 
    referred to in paragraph (1) is equal to $100 multiplied by the 
    total number of students in excess of 50 students, in average daily 
    attendance at the schools served by the local educational agency, 
    plus $20,000, except that the initial amount may not exceed 
    $60,000.
        ``(3) Ratable adjustment.--
            ``(A) In general.--If the amount made available to carry 
        out this section for any fiscal year is not sufficient to pay 
        in full the amounts that local educational agencies are 
        eligible to receive under paragraph (1) for such year, the 
        Secretary shall ratably reduce such amounts for such year.
            ``(B) Additional amounts.--If additional funds become 
        available for making payments under paragraph (1) for such 
        fiscal year, payments that were reduced under subparagraph (A) 
        shall be increased on the same basis as such payments were 
        reduced.
    ``(c) Disbursement.--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 fiscal year.
    ``(d) Special Eligibility Rule.--A local educational agency that is 
eligible to receive a grant under this subpart for a fiscal year is not 
eligible to receive funds for such fiscal year under subpart 2.

``SEC. 6213. ACCOUNTABILITY.

    ``(a) Academic Achievement Assessment.--Each local educational 
agency that uses or receives funds under this subpart for a fiscal year 
shall administer an assessment that is consistent with section 
1111(b)(3).
    ``(b) Determination Regarding Continuing Participation.--Each State 
educational agency that receives funding under the provisions of law 
described in section 6211(c) shall--
        ``(1) after the third year that a local educational agency in 
    the State participates in a program under this subpart and on the 
    basis of the results of the assessments described in subsection 
    (a), determine whether the local educational agency participating 
    in the program made adequate yearly progress, as described in 
    section 1111(b)(2);
        ``(2) permit only those local educational agencies that 
    participated and made adequate yearly progress, as described in 
    section 1111(b)(2), to continue to participate; and
        ``(3) permit those local educational agencies that participated 
    and failed to make adequate yearly progress, as described in 
    section 1111(b)(2), to continue to participate only if such local 
    educational agencies use applicable funding under this subpart to 
    carry out the requirements of section 1116.

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

``SEC. 6221. PROGRAM AUTHORIZED.

    ``(a) Grants to States.--
        ``(1) In general.--From amounts appropriated under section 6234 
    for this subpart for a fiscal year that are not reserved under 
    subsection (c), the Secretary shall award grants (from allotments 
    made under paragraph (2)) for the fiscal year to State educational 
    agencies that have applications submitted under section 6223 
    approved to enable the State educational agencies to award grants 
    to eligible local educational agencies for local authorized 
    activities described in section 6222(a).
        ``(2) Allotment.--From amounts described in paragraph (1) for a 
    fiscal year, the Secretary shall allot to each State educational 
    agency for that fiscal year an amount that bears the same ratio to 
    those amounts as the number of students in average daily attendance 
    served by eligible local educational agencies in the State for that 
    fiscal year bears to the number of all such students served by 
    eligible local educational agencies in all States for that fiscal 
    year.
        ``(3) Specially qualified agencies.--
            ``(A) Eligibility and application.--If a State educational 
        agency elects not to participate in the program under this 
        subpart or does not have an application submitted under section 
        6223 approved, a specially qualified agency in such State 
        desiring a grant under this subpart may submit an application 
        under such section directly to the Secretary to receive an 
        award under this subpart.
            ``(B) Direct awards.--The Secretary may award, on a 
        competitive basis or by formula, the amount the State 
        educational agency is eligible to receive under paragraph (2) 
        directly to a specially qualified agency in the State that has 
        submitted an application in accordance with subparagraph (A) 
        and obtained approval of the application.
            ``(C) Specially qualified agency defined.--In this subpart, 
        the term `specially qualified agency' means an eligible local 
        educational agency served by a State educational agency that 
        does not participate in a program under this subpart in a 
        fiscal year, that may apply directly to the Secretary for a 
        grant in such year under this subsection.
    ``(b) Local Awards.--
        ``(1) Eligibility.--A local educational agency shall be 
    eligible to receive a grant under this subpart if--
            ``(A) 20 percent or more of the children ages 5 through 17 
        years 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 
        designated with a school locale code of 6, 7, or 8, as 
        determined by the Secretary.
        ``(2) Award basis.--A State educational agency shall award 
    grants to eligible local educational agencies--
            ``(A) on a competitive basis;
            ``(B) according to a formula based on the number of 
        students in average daily attendance served by the eligible 
        local educational agencies or schools in the State; or
            ``(C) according to an alternative formula, if, prior to 
        awarding the grants, the State educational agency demonstrates, 
        to the satisfaction of the Secretary, that the alternative 
        formula enables the State educational agency to allot the grant 
        funds in a manner that serves equal or greater concentrations 
        of children from families with incomes below the poverty line, 
        relative to the concentrations that would be served if the 
        State educational agency used the formula described in 
        subparagraph (B).
    ``(c) Reservations.--From amounts appropriated under section 6234 
for this subpart for a fiscal year, the Secretary shall reserve--
        ``(1) one-half of 1 percent to make awards to elementary 
    schools or secondary schools operated or supported by the Bureau of 
    Indian Affairs, to carry out the activities authorized under this 
    subpart; and
        ``(2) one-half of 1 percent to make awards to the outlying 
    areas in accordance with their respective needs, to carry out the 
    activities authorized under this subpart.

``SEC. 6222. USES OF FUNDS.

    ``(a) Local Awards.--Grant funds awarded to local educational 
agencies under this subpart shall be used for any of the following:
        ``(1) Teacher recruitment and retention, including the use of 
    signing bonuses and other financial incentives.
        ``(2) Teacher professional development, including programs that 
    train teachers to utilize technology to improve teaching and to 
    train special needs teachers.
        ``(3) Educational technology, including software and hardware, 
    as described in part D of title II.
        ``(4) Parental involvement activities.
        ``(5) Activities authorized under the Safe and Drug-Free 
    Schools program under part A of title IV.
        ``(6) Activities authorized under part A of title I.
        ``(7) Activities authorized under title III.
    ``(b) Administrative Costs.--A State educational agency receiving a 
grant under this subpart may not use more than 5 percent of the amount 
of the grant for State administrative costs and to provide technical 
assistance to eligible local educational agencies.

``SEC. 6223. APPLICATIONS.

    ``(a) In General.--Each State educational agency or specially 
qualified agency desiring to receive 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.--At a minimum, each application submitted under 
subsection (a) 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. 6224. ACCOUNTABILITY.

    ``(a) State Report.--Each State educational agency that receives a 
grant under this subpart shall prepare and submit an annual report to 
the Secretary. The report shall describe--
        ``(1) the method the State educational agency used to award 
    grants to eligible local educational agencies, and to provide 
    assistance to schools, under this subpart;
        ``(2) how local educational agencies and schools used funds 
    provided under this subpart; and
        ``(3) the degree to which progress has been made toward meeting 
    the goals and objectives described in the application submitted 
    under section 6223.
    ``(b) Specially Qualified Agency Report.--Each specially qualified 
agency that receives a grant under this subpart shall provide an annual 
report to the Secretary. Such report shall describe--
        ``(1) how such agency uses funds provided under this subpart; 
    and
        ``(2) the degree to which progress has been made toward meeting 
    the goals and objectives described in the application submitted 
    under section 6223.
    ``(c) Report to Congress.--The Secretary shall prepare and submit 
to the Committee on Education and the Workforce of the House of 
Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate a biennial report. The report shall describe--
        ``(1) the methods the State educational agencies used to award 
    grants to eligible local educational agencies, and to provide 
    assistance to schools, under this subpart;
        local educational agencies and schools used funds provided 
    under this subpart; and
        ``(3) the degree to which progress has been made toward meeting 
    the goals and objectives described in the applications submitted 
    under section 6223.
    ``(d) Academic Achievement Assessment.--Each local educational 
agency or specially qualified agency that receives a grant under this 
subpart for a fiscal year shall administer an assessment that is 
consistent with section 1111(b)(3).
    ``(e) Determination Regarding Continuing Participation.--Each State 
educational agency or specially qualified agency that receives a grant 
under this subpart shall--
        ``(1) after the third year that a local educational agency or 
    specially qualified agency in the State receives funds under this 
    subpart, and on the basis of the results of the assessments 
    described in subsection (d)--
            ``(A) in the case of a local educational agency, determine 
        whether the local educational agency made adequate yearly 
        progress, as described in section 1111(b)(2); and
            ``(B) in the case of a specially qualified agency, submit 
        to the Secretary information that would allow the Secretary to 
        determine whether the specially qualified agency has made 
        adequate yearly progress, as described in section 1111(b)(2);
        ``(2) permit only those local educational agencies or specially 
    qualified agencies that made adequate yearly progress, as described 
    in section 1111(b)(2), to continue to receive grants under this 
    subpart; and
        ``(3) permit those local educational agencies or specially 
    qualified agencies that failed to make adequate yearly progress, as 
    described in section 1111(b)(2), to continue to receive such grants 
    only if the State educational agency disbursed such grants to the 
    local educational agencies or specially qualified agencies to carry 
    out the requirements of section 1116.

                    ``Subpart 3--General Provisions

``SEC. 6231. ANNUAL AVERAGE DAILY ATTENDANCE DETERMINATION.

    ``(a) Census Determination.--Each local educational agency desiring 
a grant under section 6212 and each local educational agency or 
specially qualified agency desiring a grant under subpart 2 shall--
        ``(1) not later than December 1 of each year, conduct a census 
    to determine the number of students in average daily attendance in 
    kindergarten through grade 12 at the schools served by the agency; 
    and
        ``(2) not later than March 1 of each year, submit the number 
    described in paragraph (1) to the Secretary (and to the State 
    educational agency, in the case of a local educational agency 
    seeking a grant under subpart (2)).
    ``(b) Penalty.--If the Secretary determines that a local 
educational agency or specially qualified agency has knowingly 
submitted false information under subsection (a) for the purpose of 
gaining additional funds under section 6212 or subpart 2, then the 
agency shall be fined an amount equal to twice the difference between 
the amount the agency received under this section and the correct 
amount the agency would have received under section 6212 or subpart 2 
if the agency had submitted accurate information under subsection (a).

``SEC. 6232. SUPPLEMENT, NOT SUPPLANT.

    ``Funds made available under subpart 1 or subpart 2 shall be used 
to supplement, and not supplant, any other Federal, State, or local 
education funds.

``SEC. 6233. RULE OF CONSTRUCTION.

    ``Nothing in this part 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 part.

``SEC. 6234. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$300,000,000 for fiscal year 2002 and such sums as may be necessary for 
each of the 5 succeeding fiscal years, to be distributed equally 
between subparts 1 and 2.

                      ``PART C--GENERAL PROVISIONS

``SEC. 6301. PROHIBITION AGAINST FEDERAL MANDATES, DIRECTION, OR 
              CONTROL.

    ``Nothing in this title shall be construed to authorize an officer 
or employee of the Federal Government to mandate, direct, or control a 
State, local educational agency, or school's specific instructional 
content, academic achievement standards and assessments, curriculum, or 
program of instruction, as a condition of eligibility to receive funds 
under this Act.

``SEC. 6302. RULE OF CONSTRUCTION ON EQUALIZED SPENDING.

    ``Nothing in this title shall be construed to mandate equalized 
spending per pupil for a State, local educational agency, or school.''.

SEC. 602. AMENDMENT TO THE NATIONAL EDUCATION STATISTICS ACT OF 1994.

    (a) National Assessment of Educational Progress.--Section 411 of 
the National Education Statistics Act of 1994 (20 U.S.C. 9010) is 
amended to read as follows:

``SEC. 411. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.

    ``(a) Establishment.--The Commissioner shall, with the advice of 
the National Assessment Governing Board established under section 412, 
and with the technical assistance of the Advisory Council established 
under section 407, carry out, through grants, contracts, or cooperative 
agreements with one or more qualified organizations, or consortia 
thereof, a National Assessment of Educational Progress, which 
collectively refers to a national assessment, State assessments, and a 
long-term trend assessment in reading and mathematics.
    ``(b) Purpose; State Assessments.--
        ``(1) Purpose.--The purpose of this section is to provide, in a 
    timely manner, a fair and accurate measurement of student academic 
    achievement and reporting trends in such achievement in reading, 
    mathematics, and other subject matter as specified in this section.
        ``(2) Measurement and reporting.--The Commissioner, in carrying 
    out the measurement and reporting described in paragraph (1), 
    shall--
            ``(A) use a random sampling process which is consistent 
        with relevant, widely accepted professional assessment 
        standards and that produces data that are representative on a 
        national and regional basis;
            ``(B) conduct a national assessment and collect and report 
        assessment data, including achievement data trends, in a valid 
        and reliable manner on student academic achievement in public 
        and private elementary schools and secondary schools at least 
        once every 2 years, in grades 4 and 8 in reading and 
        mathematics;
            ``(C) conduct a national assessment and collect and report 
        assessment data, including achievement data trends, in a valid 
        and reliable manner on student academic achievement in public 
        and private schools in reading and mathematics in grade 12 in 
        regularly scheduled intervals, but at least as often as such 
        assessments were conducted prior to the date of enactment of 
        the No Child Left Behind Act of 2001;
            ``(D) to the extent time and resources allow, and after the 
        requirements described in subparagraph (B) are implemented and 
        the requirements described in subparagraph (C) are met, conduct 
        additional national assessments and collect and report 
        assessment data, including achievement data trends, in a valid 
        and reliable manner on student academic achievement in grades 
        4, 8, and 12 in public and private elementary schools and 
        secondary schools in regularly scheduled intervals in 
        additional subject matter, including writing, science, history, 
        geography, civics, economics, foreign languages, and arts, and 
        the trend assessment described in subparagraph (F);
            ``(E) conduct the reading and mathematics assessments 
        described in subparagraph (B) in the same year, and every other 
        year thereafter, to provide for 1 year in which no such 
        assessments are conducted in between each administration of 
        such assessments;
            ``(F) continue to conduct the trend assessment of academic 
        achievement at ages 9, 13, and 17 for the purpose of 
        maintaining data on long-term trends in reading and 
        mathematics;
            ``(G) include information on special groups, including, 
        whenever feasible, information collected, cross tabulated, 
        compared, and reported by race, ethnicity, socioeconomic 
        status, gender, disability and limited English proficiency; and
            ``(H) ensure that achievement data are made available on a 
        timely basis following official reporting, in a manner that 
        facilitates further analysis and that includes trend lines.
        ``(3) State assessments.--
            ``(A) In general.--The Commissioner--
                ``(i) shall conduct biennial State academic assessments 
            of student achievement in reading and mathematics in grades 
            4 and 8 as described in paragraphs (1)(B) and (1)(E);
                ``(ii) may conduct the State academic assessments of 
            student achievement in reading and mathematics in grade 12 
            as described in paragraph (1)(C);
                ``(iii) may conduct State academic assessments of 
            student achievement in grades 4, 8, and 12 as described in 
            paragraph (1)(D); and
                ``(iv) shall conduct each such State assessment, in 
            each subject area and at each grade level, on a 
            developmental basis until the Commissioner determines, as 
            the result of an evaluation required by subsection (f), 
            that such assessment produces high quality data that are 
            valid and reliable.
            ``(B) Agreement.--
                ``(i) In general.--States participating in State 
            assessments shall enter into an agreement with the 
            Secretary pursuant to subsection (d)(3).
                ``(ii) Content.--Such agreement shall contain 
            information sufficient to give States full information 
            about the process for decision-making (which shall include 
            the consensus process used), on objectives to be tested, 
            and the standards for random sampling, test administration, 
            test security, data collection, validation, and reporting.
            ``(C) Review and release.--
                ``(i) In general.--Except as provided in clause (ii), a 
            participating State shall review and give permission for 
            the release of results from any test of its students 
            administered as a part of a State assessment prior to the 
            release of such data. Refusal by a State to release its 
            data shall not restrict the release of data from other 
            States that have approved the release of such data.
                ``(ii) Special rule.--A State participating in the 
            biennial academic assessments of student achievement in 
            reading and mathematics in grades 4 and 8 shall be deemed 
            to have given its permission to release its data if the 
            State has an approved plan under section 1111 of the 
            Elementary and Secondary Education Act of 1965.
        ``(4) Prohibited activities.--
            ``(A) In general.--The use of assessment items and data on 
        any assessment authorized under this section by an agent or 
        agents of the Federal Government to rank, compare, or otherwise 
        evaluate individual students or teachers, or to provide rewards 
        or sanctions for individual students, teachers, schools or 
        local educational agencies is prohibited.
            ``(B) Special rule.--Any assessment authorized under this 
        section shall not be used by an agent or agents of the Federal 
        Government to establish, require, or influence the standards, 
        assessments, curriculum, including lesson plans, textbooks, or 
        classroom materials, or instructional practices of States or 
        local educational agencies.
            ``(C) Applicability to student educational decisions.--
        Nothing in this section shall be construed to prescribe the use 
        of any assessment authorized under this section for student 
        promotion or graduation purposes.
            ``(D) Applicability to home schools.--Nothing in this 
        section 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, nor shall any home schooled student be 
        required to participate in any assessment referenced or 
        authorized under this section.
        ``(5) Requirement.--In carrying out any assessment authorized 
    under this section, the Commissioner, in a manner consistent with 
    subsection (c)(2), shall--
            ``(A) use widely accepted professional testing standards, 
        objectively measure academic achievement, knowledge, and 
        skills, and ensure that any academic assessment authorized 
        under this section be tests that do not evaluate or assess 
        personal or family beliefs and attitudes or publicly disclose 
        personally identifiable information;
            ``(B) only collect information that is directly related to 
        the appraisal of academic achievement, and to the fair and 
        accurate presentation of such information; and
            ``(C) collect information on race, ethnicity, socioeconomic 
        status, disability, limited English proficiency, and gender.
        ``(6) Technical assistance.--In carrying out any assessment 
    authorized under this section, the Commissioner may provide 
    technical assistance to States, localities, and other parties.
    ``(c) Access.--
        ``(1) Public access.--
            ``(A) In general.--Except as provided in paragraph (3), 
        parents and members of the public shall have access to all 
        assessment data, questions, and complete and current assessment 
        instruments of any assessment authorized under this section. 
        The local educational agency shall make reasonable efforts to 
        inform parents and members of the public about the access 
        required under this paragraph.
            ``(B) Timeline.--The access described in this paragraph 
        shall be provided within 45 days of the date the request was 
        made, in writing, and be made available in a secure setting 
        that is convenient to both parties.
            ``(C) Prohibition.--To protect the integrity of the 
        assessment, no copy of the assessment items or assessment 
        instruments shall be duplicated or taken from the secure 
        setting.
        ``(2) Complaints.--
            ``(A) In general.--Parents and members of the public may 
        submit written complaints to the National Assessment Governing 
        Board.
            ``(B) Forwarding of complaints.--The National Assessment 
        Governing Board shall forward such complaints to the 
        Commissioner, the Secretary of Education, and the State and 
        local educational agency from within which the complaint 
        originated within 30 days of receipt of such complaint.
            ``(C) Review.--The National Assessment Governing Board, in 
        consultation with the Commissioner, shall review such complaint 
        and determine whether revisions are necessary and appropriate. 
        As determined by such review, the Board shall revise, as 
        necessary and appropriate, the procedures or assessment items 
        that have generated the complaint and respond to the individual 
        submitting the complaint, with a copy of such response provided 
        to the Secretary, describing any action taken, not later than 
        30 days after so acting.
            ``(D) Report.--The Secretary shall submit a summary report 
        of all complaints received pursuant to subparagraph (A) and 
        responses by the National Assessment Governing Board pursuant 
        to subparagraph (B) to the Chairman of the House Committee on 
        Education and the Workforce, and the Chairman of the Senate 
        Committee on Health, Education, Labor, and Pensions.
            ``(E) Cognitive questions.--
                ``(i) In general.--The Commissioner may decline to make 
            available through public means, such as posting on the 
            Internet, distribution to the media, distribution through 
            public agencies, or in response to a request under section 
            552 of title 5, United States Code, for a period, not to 
            exceed 10 years after initial use, cognitive questions that 
            the Commissioner intends to reuse in the future.
                ``(ii) Extension.--Notwithstanding clause (i), the 
            Commissioner may decline to make cognitive questions 
            available as described in clause (i) for a period longer 
            than 10 years if the Commissioner determines such 
            additional period is necessary to protect the security and 
            integrity of long-term trend data.
        ``(3) Personally identifiable information.--
            ``(A) In general.--The Commissioner shall ensure that all 
        personally identifiable information about students, their 
        academic achievement, and their families, and that information 
        with respect to individual schools, remains confidential, in 
        accordance with section 552a of title 5, United States Code.
            ``(B) Prohibition.--The National Board, the Commissioner, 
        and any contractor or subcontractor shall not maintain any 
        system of records containing a student's name, birth 
        information, Social Security number, or parents' name or names, 
        or any other personally identifiable information.
        ``(4) Penalties.--Any unauthorized person who knowingly 
    discloses, publishes, or uses assessment questions, or complete and 
    current assessment instruments of any assessment authorized under 
    this section may be fined as specified in section 3571 of title 18, 
    United States Code or charged with a class E felony.
    ``(d) Participation.--
        ``(1) Voluntary participation.--Participation in any assessment 
    authorized under this section shall be voluntary for students, 
    schools, and local educational agencies.
        ``(2) Student participation.--Parents of children selected to 
    participate in any assessment authorized under this section shall 
    be informed before the administration of any authorized assessment, 
    that their child may be excused from participation for any reason, 
    is not required to finish any authorized assessment, and is not 
    required to answer any test question.
        ``(3) State participation.--
            ``(A) Voluntary.--Participation in assessments authorized 
        under this section, other than reading and mathematics in 
        grades 4 and 8, shall be voluntary.
            ``(B) Agreement.--For reading and mathematics assessments 
        in grades 4 and 8, the Secretary shall enter into an agreement 
        with any State carrying out an assessment for the State under 
        this section. Each such agreement shall contain provisions 
        designed to ensure that the State will participate in the 
        assessment.
        ``(4) Review.--Representatives of State educational agencies 
    and local educational agencies or the chief State school officer 
    shall have the right to review any assessment item or procedure of 
    any authorized assessment upon request in a manner consistent with 
    subsection (c), except the review described in subparagraph (2)(C) 
    of subsection (c) shall take place in consultation with the 
    representatives described in this paragraph.
    ``(e) Student Achievement Levels.--
        ``(1) Achievement levels.--The National Assessment Governing 
    Board shall develop appropriate student achievement levels for each 
    grade or age in each subject area to be tested under assessments 
    authorized under this section, except the trend assessment 
    described in subsection (b)(2)(F).
        ``(2) Determination of levels.--
            ``(A) In general.--Such levels shall--
                ``(i) be determined by--

                    ``(I) identifying the knowledge that can be 
                measured and verified objectively using widely accepted 
                professional assessment standards; and
                    ``(II) developing achievement levels that are 
                consistent with relevant widely accepted professional 
                assessment standards and based on the appropriate level 
                of subject matter knowledge for grade levels to be 
                assessed, or the age of the students, as the case may 
                be.

            ``(B) National consensus approach.--After the 
        determinations described in subparagraph (A), devising a 
        national consensus approach.
            ``(C) Trial basis.--The achievement levels shall be used on 
        a trial basis until the Commissioner determines, as a result of 
        an evaluation under subsection (f), that such levels are 
        reasonable, valid, and informative to the public.
            ``(D) Status.--The Commissioner and the Board shall ensure 
        that reports using such levels on a trial basis do so in a 
        manner that makes clear the status of such levels.
            ``(E) Updates.--Such levels shall be updated as appropriate 
        by the National Assessment Governing Board in consultation with 
        the Commissioner.
        ``(3) Reporting.--After determining that such levels are 
    reasonable, valid, and informative to the public, as the result of 
    an evaluation under subsection (f), the Commissioner shall use such 
    levels or other methods or indicators for reporting results of the 
    National Assessment and State assessments.
        ``(4) Review.--The National Assessment Governing Board shall 
    provide for a review of any trial student achievement levels under 
    development by representatives of State educational agencies or the 
    chief State school officer in a manner consistent with subsection 
    (c), except the review described in subparagraph (2)(C) shall take 
    place in consultation with the representatives described in this 
    paragraph.
    ``(f) Review of National and State Assessments.--
        ``(1) Review.--
            ``(A) In general.--The Secretary shall provide for 
        continuing review of any assessment authorized under this 
        section, and student achievement levels, by one or more 
        professional assessment evaluation organizations.
            ``(B) Issues addressed.--Such continuing review shall 
        address--
                ``(i) whether any authorized assessment is properly 
            administered, produces high quality data that are valid and 
            reliable, is consistent with relevant widely accepted 
            professional assessment standards, and produces data on 
            student achievement that are not otherwise available to the 
            State (other than data comparing participating States to 
            each other and the Nation);
                ``(ii) whether student achievement levels are 
            reasonable, valid, reliable, and informative to the 
            public;-
                ``(iii) whether any authorized assessment is being 
            administered as a random sample and is reporting the trends 
            in academic achievement in a valid and reliable manner in 
            the subject areas being assessed;
                ``(iv) whether any of the test questions are biased, as 
            described in section 412(e)(4); and
                ``(v) whether the appropriate authorized assessments 
            are measuring, consistent with this section, reading 
            ability and mathematical knowledge.
        ``(2) Report.--The Secretary shall report 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, 
    the President, and the Nation on the findings and recommendations 
    of such reviews.
        ``(3) Use of findings and recommendations.--The Commissioner 
    and the National Assessment Governing Board shall consider the 
    findings and recommendations of such reviews in designing the 
    competition to select the organization, or organizations, through 
    which the Commissioner carries out the National Assessment.
    ``(g) Coverage Agreements.--
        ``(1) Department of defense schools.--The Secretary and the 
    Secretary of Defense may enter into an agreement, including such 
    terms as are mutually satisfactory, to include in the National 
    Assessment elementary schools and secondary schools operated by the 
    Department of Defense.
        ``(2) Bureau of indian affairs schools.--The Secretary and the 
    Secretary of the Interior may enter into an agreement, including 
    such terms as are mutually satisfactory, to include in the National 
    Assessment schools for Indian children operated or supported by the 
    Bureau of Indian Affairs.''.
    (b) National Assessment Governing Board.--Section 412 of the 
National Education Statistics Act of 1994 (20 U.S.C. 9011) is amended 
to read as follows:

``SEC. 412. NATIONAL ASSESSMENT GOVERNING BOARD.

    ``(a) Establishment.--There is established the National Assessment 
Governing Board (hereafter in this title referred to as the `Board'), 
which shall formulate policy guidelines for the National Assessment.
    ``(b) Membership.--
        ``(1) Appointment and composition.--The Board shall be 
    appointed by the Secretary and be composed as follows:
            ``(A) Two Governors, or former Governors, who shall not be 
        members of the same political party.
            ``(B) Two State legislators, who shall not be members of 
        the same political party.
            ``(C) Two chief State school officers.
            ``(D) One superintendent of a local educational agency.
            ``(E) One member of a State board of education.
            ``(F) One member of a local board of education.
            ``(G) Three classroom teachers representing the grade 
        levels at which the National Assessment is conducted.
            ``(H) One representative of business or industry.
            ``(I) Two curriculum specialists.
            ``(J) Three testing and measurement experts, who shall have 
        training and experience in the field of testing and 
        measurement.
            ``(K) One nonpublic school administrator or policymaker.
            ``(L) Two school principals, of whom one shall be an 
        elementary school principal and one shall be a secondary school 
        principal.
            ``(M) Two parents who are not employed by a local, State or 
        Federal educational agency.
            ``(N) Two additional members who are representatives of the 
        general public, and who may be parents, but who are not 
        employed by a local, State, or Federal educational agency.
        ``(2) Assistant secretary for educational research.--The 
    Assistant Secretary for Educational Research and Improvement shall 
    serve as an ex officio, nonvoting member of the Board.
        ``(3) Balance and diversity.--The Secretary and the Board shall 
    ensure at all times that the membership of the Board reflects 
    regional, racial, gender, and cultural balance and diversity and 
    that the Board exercises its independent judgment, free from 
    inappropriate influences and special interests.
    ``(c) Terms.--
        ``(1) In general.--Terms of service of members of the Board 
    shall be staggered and may not exceed a period of 4 years, as 
    determined by the Secretary.
        ``(2) Service limitation.--Members of the Board may serve not 
    more than two terms.
        ``(3) Change of status.--A member of the Board who changes 
    status under subsection (b) during the term of the appointment of 
    the member may continue to serve as a member until the expiration 
    of such term.
        ``(4) Conforming provision.--Members of the Board previously 
    granted 3 year terms, whose terms are in effect on the date of 
    enactment of the Department of Education Appropriations Act, 2001, 
    shall have their terms extended by 1 year.
    ``(d) Vacancies.--
        ``(1) In general.--
            ``(A) Organizations.--The Secretary shall appoint new 
        members to fill vacancies on the Board from among individuals 
        who are nominated by organizations representing the type of 
        individuals described in subsection (b)(1) with respect to 
        which the vacancy exists.
            ``(B) Nominations.--Each organization submitting 
        nominations to the Secretary with respect to a particular 
        vacancy shall nominate for such vacancy six individuals who are 
        qualified by experience or training to fill the particular 
        Board vacancy.
            ``(C) Maintenance of board.--The Secretary's appointments 
        shall maintain the composition, diversity, and balance of the 
        Board required under subsection (b).
        ``(2) Additional nominations.--The Secretary may request that 
    each organization described in paragraph (1)(A) submit additional 
    nominations if the Secretary determines that none of the 
    individuals nominated by such organization have appropriate 
    knowledge or expertise.
    ``(e) Duties.--
        ``(1) In general.--In carrying out its functions under this 
    section the Board shall--
            ``(A) select the subject areas to be assessed (consistent 
        with section 411(b));
            ``(B) develop appropriate student achievement levels as 
        provided in section 411(e);
            ``(C) develop assessment objectives consistent with the 
        requirements of this section and test specifications that 
        produce an assessment that is valid and reliable, and are based 
        on relevant widely accepted professional standards;
            ``(D) develop a process for review of the assessment which 
        includes the active participation of teachers, curriculum 
        specialists, local school administrators, parents, and 
        concerned members of the public;
            ``(E) design the methodology of the assessment to ensure 
        that assessment items are valid and reliable, in consultation 
        with appropriate technical experts in measurement and 
        assessment, content and subject matter, sampling, and other 
        technical experts who engage in large scale surveys, including 
        the Advisory Council established under section 407;
            ``(F) consistent with section 411, measure student academic 
        achievement in grades 4, 8, and 12 in the authorized academic 
        subjects;
            ``(G) develop guidelines for reporting and disseminating 
        results;
            ``(H) develop standards and procedures for regional and 
        national comparisons; and
            ``(I) take appropriate actions needed to improve the form, 
        content, use, and reporting of results of any assessment 
        authorized by section 411 consistent with the provisions of 
        this section and section 411.
        ``(2) Delegation.--The Board may delegate any of the Board's 
    procedural and administrative functions to its staff.
        ``(3) All cognitive and noncognitive assessment items.--The 
    Board shall have final authority on the appropriateness of all 
    assessment items.
        ``(4) Prohibition against bias.--The Board shall take steps to 
    ensure that all items selected for use in the National Assessment 
    are free from racial, cultural, gender, or regional bias and are 
    secular, neutral, and non-ideological.
        ``(5) Technical.--In carrying out the duties required by 
    paragraph (1), the Board may seek technical advice, as appropriate, 
    from the Commissioner and the Advisory Council on Education 
    Statistics and other experts.
        ``(6) Report.--Not later than 90 days after an evaluation of 
    the student achievement levels under section 411(e), the Board 
    shall make a report to the Secretary, the Committee on Education 
    and the Workforce of the House of Representatives, and the 
    Committee on Health, Education, Labor, and Pensions of the Senate 
    describing the steps the Board is taking to respond to each of the 
    recommendations contained in such evaluation.
    ``(f) Personnel.--
        ``(1) In general.--In the exercise of its responsibilities, the 
    Board shall be independent of the Secretary and the other offices 
    and officers of the Department.
        ``(2) Staff.--
            ``(A) In general.--The Secretary may appoint, at the 
        request of the Board, such staff as will enable the Board to 
        carry out its responsibilities.
            ``(B) Technical employees.--Such appointments may include, 
        for terms not to exceed 3 years and without regard to the 
        provisions of title 5, United States Code, governing 
        appointments in the competitive service, not more than six 
        technical employees who may be paid without regard to the 
        provisions of chapter 51 and subchapter III of chapter 53 of 
        such title relating to classification and General Schedule pay 
        rates.
    ``(g) Coordination.--The Commissioner and the Board shall meet 
periodically--
        ``(1) to ensure coordination of their duties and activities 
    relating to the National Assessment; and
        ``(2) for the Commissioner to report to the Board on the 
    Department's actions to implement the decisions of the Board.
    ``(h) Administration.--The Federal Advisory Committee Act (5 U.S.C. 
App.) shall not apply with respect to the Board, other than sections 
10, 11, and 12 of such Act.''.

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

SEC. 701. INDIANS, NATIVE HAWAIIANS, AND ALASKA NATIVES.

    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. STATEMENT OF POLICY.

    ``It is the policy of the United States to fulfill the Federal 
Government's unique and continuing trust relationship with and 
responsibility to the Indian people for the education of Indian 
children. The Federal Government will continue to work with local 
educational agencies, Indian tribes and organizations, postsecondary 
institutions, and other entities toward the goal of ensuring that 
programs that serve Indian children are of the highest quality and 
provide for not only the basic elementary and secondary educational 
needs, but also the unique educational and culturally related academic 
needs of these children.

``SEC. 7102. PURPOSE.

    ``(a) Purpose.--It is the purpose of this part 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 student academic achievement standards as all other 
students are expected to meet.
    ``(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.

    ``It is the purpose of this subpart 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 academic content and 
    student academic achievement standards that are used for all 
    students; and
        ``(2) are designed to assist Indian students in meeting those 
    standards.

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

    ``(a) In General.--The Secretary may make grants, from allocations 
made under section 7113, to local educational agencies and Indian 
tribes, in accordance with this section and section 7113.
    ``(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 eligible under section 7117 
    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 committee under section 7114(c)(4) for such grant, 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.
        ``(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 is not subject to section 
    7114(c)(4), section 7118(c), or section 7119.

``SEC. 7113. AMOUNT OF GRANTS.

    ``(a) Amount of Grant Awards.--
        ``(1) In general.--Except as provided in subsection (b) and 
    paragraph (2), 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 otherwise determined under this section in accordance 
    with subsection (e).
    ``(b) Minimum Grant.--
        ``(1) In general.--Notwithstanding subsection (e), an entity 
    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 (d), 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 grantees if the 
    Secretary determines such increase is necessary to ensure the 
    quality of the programs provided.
    ``(c) Definition.--For the purpose of this section, the term 
`average per pupil expenditure', used with respect to 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 for whom such agencies provided free 
    public education during such preceding fiscal year.
    ``(d) Schools Operated or Supported by the Bureau of Indian 
Affairs.--
        ``(1) In general.--Subject to subsection (e), in addition to 
    the grants awarded under subsection (a), the Secretary shall 
    allocate to the Secretary of the Interior an amount equal to the 
    product of--
            ``(A) the total number of Indian children enrolled in 
        schools that are operated by--
                ``(i) the Bureau of Indian Affairs; or
                ``(ii) an Indian tribe, or an organization controlled 
            or sanctioned by an Indian tribal government, for the 
            children of that tribe under a contract with, or grant 
            from, the Department of the Interior under the Indian Self-
            Determination Act 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)(A) 
    that wishes to receive an allocation under this subpart shall 
    submit an application in accordance with section 7114, and shall 
    otherwise be treated as a local educational agency for the purpose 
    of this subpart, except that such school shall not be subject to 
    section 7114(c)(4), section 7118(c), or section 7119.
    ``(e) Ratable Reductions.--If the sums appropriated for any fiscal 
year under section 7152(a) are insufficient to pay in full the amounts 
determined for local educational agencies under subsection (a)(1) and 
for the Secretary of the Interior under subsection (d), each of those 
amounts shall be ratably reduced.

``SEC. 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 academic 
    achievement goals for such children, and benchmarks for attaining 
    such goals, that are based on the challenging State academic 
    content and student academic achievement 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 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;
                ``(ii) teachers in the schools; and
                ``(iii) 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 in accordance with section 7115(c), that 
        has--
                ``(i) reviewed in a timely fashion the program; and
                ``(ii) determined that the program will not diminish 
            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(a);
        ``(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 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 academic content and student academic achievement 
    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 the 
    Carl D. Perkins Vocational and Technical Education Act of 1998, 
    including programs for tech-prep education, mentoring, and 
    apprenticeship;
        ``(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 achieve 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) family literacy services; and
        ``(11) activities that recognize and support the unique 
    cultural and educational needs of Indian children, and incorporate 
    appropriately qualified tribal elders and seniors.
    ``(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 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) Limitation on Administrative Costs.--Not more than 5 percent 
of the funds provided to a grantee under this subpart for any fiscal 
year may be used for administrative purposes.

``SEC. 7116. INTEGRATION OF SERVICES AUTHORIZED.

    ``(a) Plan.--An entity receiving funds under this subpart may 
submit a plan to the Secretary 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 entity, shall authorize the entity to 
consolidate, in accordance with such plan, the federally funded 
education and related services programs of the entity and the Federal 
programs, 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 (a) 
shall include funds for any Federal program exclusively serving Indian 
children, or the funds reserved under any Federal program to 
exclusively serve Indian children, under which the entity is eligible 
for receipt of funds under a statutory or administrative formula for 
the purposes of providing education and related services that would be 
used to serve 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 
    concerning authorizing the 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 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 agency or 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 entity believes need to be waived in order 
    to implement the plan;
        ``(8) set forth measures for academic content and student 
    academic achievement goals designed to be met within a specific 
    period of time; and
        ``(9) be approved by a committee formed in accordance with 
    section 7114(c)(4), if such a committee exists.
    ``(e) Plan Review.--Upon receipt of the plan from an eligible 
entity, the Secretary shall consult with the Secretary of each Federal 
department 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 
departmental regulations, policies, or procedures necessary to enable 
the entity to implement the plan. Notwithstanding any other provision 
of law, the Secretary of the affected department shall have the 
authority to waive any regulation, policy, or procedure promulgated by 
that department that has been so identified by the entity or 
department, unless the Secretary of the affected department determines 
that such a waiver is inconsistent with the objectives of this subpart 
or those 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 
entity's plan by the Secretary, the Secretary shall inform the entity, 
in writing, of the Secretary's approval or disapproval of the plan. If 
the plan is disapproved, the entity 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 No Child Left Behind Act of 
2001, the Secretary of Education, the Secretary of the Interior, and 
the head of any other Federal department or agency identified by the 
Secretary of Education, shall enter into an interdepartmental 
memorandum of agreement providing for the implementation of the 
demonstration projects authorized under this section. The lead agency 
head for a demonstration project under this section shall be--
        ``(1) the Secretary of the Interior, in the case of an entity 
    meeting the definition of a contract or grant school under title XI 
    of the Education Amendments of 1978; or
        ``(2) the Secretary of Education, in the case of any other 
    entity.
    ``(h) Responsibilities of Lead Agency.--The responsibilities of the 
lead agency 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.--A single report format shall be 
developed by the Secretary, consistent with the requirements of this 
section. Such report format shall require that reports described in 
subsection (h), together with records maintained on the consolidated 
program at the local level, shall contain such information as will 
allow a determination that the eligible entity has complied with the 
requirements incorporated in its approved plan, including making a 
demonstration of student academic achievement, and will provide 
assurances to each Secretary that the eligible entity has complied with 
all directly applicable statutory requirements and with those directly 
applicable regulatory requirements that have not been waived.
    ``(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.--Program funds for the consolidated programs 
    shall be administered 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 granted 
    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 the responsibilities for the safeguarding of 
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 No Child Left Behind Act of 2001, 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 No Child Left Behind Act of 2001, 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) Definitions.--For the purposes of this section, the term 
`Secretary' means--
        ``(1) the Secretary of the Interior, in the case of an entity 
    meeting the definition of a contract or grant school under title XI 
    of the Education Amendments of 1978; or
        ``(2) the Secretary of Education, in the case of any other 
    entity.

``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 7151) 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) the name, the enrollment number (if readily 
        available), and the name and address of the organization 
        responsible for maintaining updated and accurate membership 
        data, of any parent or grandparent of the child from whom the 
        child claims eligibility under this subpart, if the child is 
        not a member of the tribe or band of Indians (as so defined);
        ``(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 7151.
    ``(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. Nothing in subsection (b) shall be 
construed to require the furnishing of an enrollment number.
    ``(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 recipients of grants 
        under this subpart. The sampling conducted under this 
        subparagraph shall take into account the size of and the 
        geographic location of each local educational 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 an 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 under 
    section 7113.
    ``(g) Tribal Grant and Contract Schools.--Notwithstanding any other 
provision of this section, in calculating the amount of a grant under 
this subpart to a tribal school that receives a grant or contract from 
the Bureau of Indian Affairs, the Secretary shall use only one of the 
following, as selected by the school:
        ``(1) A count of the number of students in the schools 
    certified by the Bureau.
        ``(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 calculating the amount of a local 
educational agency's grant under this subpart (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 determined 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 chapter 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 the full amount of a grant award determined 
    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, 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 to maintain effort.--If, for the preceding fiscal 
    year, the Secretary determines that a local educational agency and 
    State failed to maintain the combined fiscal effort for such agency 
    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 agency and State 
        expenditures for the preceding year to determine compliance 
        with paragraph (1) for any succeeding fiscal year, but shall 
        use the amount of expenditures that would have been required to 
        comply with paragraph (1).
        ``(3) 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 agency's expenditures for the fiscal 
        year preceding the fiscal year for which a waiver is granted to 
        determine compliance with paragraph (1) for any succeeding 
        fiscal year, but shall use the amount of expenditures that 
        would have been required to comply with paragraph (1) in the 
        absence of the waiver.
    ``(d) Reallocations.--The Secretary may reallocate, in 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 such application. If the 
State educational agency comments on the application, the agency shall 
comment on all applications submitted by local educational agencies in 
the State and shall provide those comments to the respective local 
educational agencies, 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.--It is the purpose of this section 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 the necessary 
    actions 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 of this section, 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 one 
        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 high 
        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 to postsecondary education;
            ``(I) partnership projects between schools and local 
        businesses for career preparation programs designed to provide 
        Indian youth with the knowledge and skills such youth need to 
        make an effective transition from school to 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;
            ``(L) activities that recognize and support the unique 
        cultural and educational needs of Indian children, and 
        incorporate appropriately qualified tribal elders and seniors; 
        or
            ``(M) other services that meet the purpose described in 
        this section.
        ``(2) Professional development.--Professional development of 
    teaching professionals and paraprofessionals 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) for a period not to exceed 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 two 
        or more of the activities described in subsection (c) over a 
        period of more than 1 year.
            ``(C) Progress.--The Secretary shall make a grant payment 
        for a grant described in this paragraph to an eligible entity 
        after the initial year of the multiyear grant 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 reasonably 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, where applicable, 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 grantee under this subpart for any fiscal year may be 
used for administrative purposes.

``SEC. 7122. PROFESSIONAL DEVELOPMENT FOR TEACHERS AND EDUCATION 
              PROFESSIONALS.

    ``(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.--For the purpose of this section, the term 
`eligible entity' means--
        ``(1) an institution of higher education, including an Indian 
    institution of higher education;
        ``(2) a State educational agency or local educational agency, 
    in consortium with an institution of higher education;
        ``(3) an Indian tribe or organization, in consortium with an 
    institution of higher education; and
        ``(4) a Bureau-funded school (as defined in section 1146 of the 
    Education Amendments of 1978).
    ``(c) Program Authorized.--The Secretary is authorized to award 
grants to eligible entities having applications approved under this 
section to enable those entities to carry out the activities described 
in subsection (d).
    ``(d) Authorized Activities.--
        ``(1) In general.--Grant funds under this section 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, and may 
    include programs designed to train tribal elders and seniors.
        ``(2) Special rules.--
            ``(A) Type of training.--For education personnel, the 
        training received pursuant to a grant under this section may be 
        inservice or preservice training.
            ``(B) Program.--For individuals who are being trained to 
        enter any field other than teaching, the training received 
        pursuant to a grant under this section shall be in a program 
        that results in a graduate degree.
    ``(e) 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 reasonably require.
    ``(f) Special Rule.--In awarding grants under this section, the 
Secretary--
        ``(1) shall consider the prior performance of the eligible 
    entity; and
        ``(2) may not limit eligibility to receive a grant under this 
    section 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 under this section shall be awarded 
for a period of not more than 5 years.
    ``(h) Service Obligation.--
        ``(1) In general.--The Secretary shall require, by regulation, 
    that an individual who receives training pursuant to a grant made 
    under this section--
            ``(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.
        ``(2) Reporting.--The Secretary shall establish, by regulation, 
    a reporting procedure under which a grant recipient under this 
    section shall, not later than 12 months after the date of 
    completion of the training, and periodically thereafter, provide 
    information concerning compliance with the work requirement under 
    paragraph (1).

                    ``Subpart 3--National Activities

``SEC. 7131. NATIONAL RESEARCH ACTIVITIES.

    ``(a) Authorized Activities.--The Secretary may use funds made 
available under section 7152(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 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 that are 
    jointly funded and carried out by the Office of Indian Education 
    Programs and the Office of Educational Research and Improvement.

``SEC. 7132. IN-SERVICE TRAINING FOR TEACHERS OF INDIAN CHILDREN.

    ``(a) Grants Authorized.--In addition to the grants authorized by 
section 7122(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--
        ``(1) a consortium of a tribal college and an institution of 
    higher education that awards a degree in education; or
        ``(2) a consortium of--
            ``(A) a tribal college;
            ``(B) an institution of higher education that awards a 
        degree in education; and
            ``(C) one or more elementary schools or secondary schools 
        operated by the Bureau of Indian Affairs, local educational 
        agencies serving Indian children, or tribal educational 
        agencies.
    ``(b) Use of Funds.--
        ``(1) In-service training.--A consortium that receives a grant 
    under subsection (a) 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.
        ``(2) Components.--The training described in paragraph (1) 
    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.
    ``(c) Preference for Indian Applicants.--In applying section 7143 
to this section, the Secretary shall give a preference to any 
consortium that includes one or more of the entities described in 
section 7143.

``SEC. 7133. 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. 7134. GIFTED AND TALENTED INDIAN STUDENTS.

    ``(a) Program Authorized.--The Secretary is authorized to--
        ``(1) establish two 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) two 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) the American Indian Higher Education Consortium, if the 
    Secretary does not receive applications that the Secretary 
    determines to be approvable from two colleges that meet the 
    requirements of paragraph (1).
    ``(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 projects;
            ``(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 projects.
        ``(4) Application.--Each eligible entity desiring a grant or 
    contract under subsection (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.
    ``(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 (hereafter 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 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 reasonably require.
        ``(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. 7135. 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.

``SEC. 7136. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR ADULT 
              INDIANS.

    ``(a) In General.--The Secretary shall make grants to State 
educational agencies, local educational agencies, and 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--Federal Administration

``SEC. 7141. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

    ``(a) Membership.--There is established a National Advisory Council 
on Indian Education (hereafter in this section referred to as the 
`Council'), which shall--
        ``(1) consist of 15 Indian members, who shall be appointed by 
    the President from lists of nominees furnished, from time to time, 
    by Indian tribes and organizations; and
        ``(2) represent different geographic areas of the 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) 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 
        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. 7142. PEER REVIEW.

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

``SEC. 7143. PREFERENCE FOR INDIAN APPLICANTS.

    ``In making grants and entering into contracts or cooperative 
agreements under subpart 2 or subpart 3, 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. 7144. MINIMUM GRANT CRITERIA.

    ``The Secretary may not approve an application for a grant, 
contract, or cooperative agreement under subpart 2 or subpart 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 5--Definitions; Authorizations of Appropriations

``SEC. 7151. DEFINITIONS.

    ``For the purposes of this part:
        ``(1) Adult.--The term `adult' means an individual who--
            ``(A) has attained the age of 16 years; 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) considered by the Secretary of the Interior to be an 
        Indian for any purpose;
            ``(D) an Eskimo, Aleut, or other Alaska Native; 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.

``SEC. 7152. AUTHORIZATIONS OF APPROPRIATIONS.

    ``(a) Subpart 1.--For the purpose of carrying out subpart 1, there 
are authorized to be appropriated $96,400,000 for fiscal year 2002 and 
such sums as may be necessary for each of the 5 succeeding fiscal 
years.
    ``(b) Subparts 2 and 3.--For the purpose of carrying out subparts 2 
and 3, there are authorized to be appropriated $24,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of the 5 
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 nonindigenous 
    people in Hawaii 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 
    Hawaii.
        ``(4) From 1826 until 1893, the United States recognized the 
    sovereignty and independence of the Kingdom of Hawaii, which was 
    established in 1810 under Kamehameha I, extended full and complete 
    diplomatic recognition to the Kingdom of Hawaii, and entered into 
    treaties and conventions with the Kingdom of Hawaii 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 Hawaii, the Kingdom of 
    Hawaii, 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 Hawaii, 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 Hawaii, including the government and 
    crown lands of the former Kingdom of Hawaii, 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 Hawaii into the Union', approved March 
    18, 1959 (73 Stat. 4), the United States transferred responsibility 
    for the administration of the Hawaiian Home Lands to the State of 
    Hawaii but reaffirmed the trust relationship 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 Hawaii into the Union', the United 
    States also ceded to the State of Hawaii 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 Hawaii 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 Hawaii;
            ``(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 four 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 Hawaii; 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 Hawaii 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 Hawaii.
        ``(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 Hawaii in 
    1893, Hawaiian medium schools were banned. After annexation, 
    throughout the territorial and statehood period of Hawaii, 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 Hawaii, in the constitution and statutes of 
    the State of Hawaii--
            ``(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 Hawaii, 
        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 (hereafter in this part referred to 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 Hawaii 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 to carry out the following 
activities:
        ``(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.
        ``(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 (hereafter in this part referred to as an 
    `island council') for the following islands:
            ``(A) Hawaii.
            ``(B) Maui.
            ``(C) Molokai.
            ``(D) Lanai.
            ``(E) Oahu.
            ``(F) Kauai.
            ``(G) Niihau.
        ``(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 three-fourths 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 four 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 No Child Left Behind Act of 2001, 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.

``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;
                ``(iii) vocational and adult education programs; and
                ``(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) activities, including program co-location, 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; and
            ``(L) 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 Hawaii 
        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 recipient of a grant or contract under subsection (a) for 
any fiscal year may be used for administrative purposes.
    ``(c) Authorization of Appropriations.--
        ``(1) In general.--There are authorized to be appropriated to 
    carry out this section and section 7204 such sums as may be 
    necessary for fiscal year 2002 and each of the 5 succeeding fiscal 
    years.
        ``(2) Reservation.--Of the funds appropriated under this 
    subsection, the Secretary shall reserve $500,000 for fiscal year 
    2002 and each of the 5 succeeding fiscal years to make a direct 
    grant to the Education Council to carry out section 7204.
        ``(3) Availability.--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 Hawaii, as evidenced by--
                ``(i) genealogical records;
                ``(ii) Kupuna (elders) or Kamaaina (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 Hawaii.
        ``(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 organization; and
            ``(C) is recognized by the Governor of Hawaii for the 
        purpose of planning, conducting, or administering programs (or 
        portions of programs) for the benefit of Native Hawaiians.
        ``(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 Hawaii.

                   ``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 and declares 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 part, 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) 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 as follows:
        ``(1) To recognize the unique educational needs of Alaska 
    Natives.
        ``(2) To authorize the development of supplemental educational 
    programs to benefit Alaska Natives.
        ``(3) To supplement existing programs and authorities in the 
    area of education to further the purposes of this part.
        ``(4) To 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 the following:
            ``(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 the following:
                ``(i) Curriculum materials that reflect the cultural 
            diversity or the contributions of Alaska Natives.
                ``(ii) Instructional programs that make use of Native 
            Alaskan languages.
                ``(iii) Networks that introduce successful programs, 
            materials, and techniques to urban and rural schools.
            ``(C) Professional development activities for educators, 
        including the following:
                ``(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.
                ``(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, 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;
                ``(ii) provide appropriate support services to the 
            families of such students that are needed to enable such 
            students to benefit from the programs; and
                ``(iii) may include activities that recognize and 
            support the unique cultural and educational needs of Alaska 
            Native children, and incorporate appropriately qualified 
            Alaska Native elders and seniors.
            ``(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 3 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 purchasing of 
        equipment, to develop regional vocational schools in rural 
        areas of Alaska, including boarding schools, for Alaska Native 
        students in grades 9 through 12, or at higher levels of 
        education, to provide the students with necessary resources to 
        prepare for skilled employment opportunities.
            ``(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 the following:
            ``(A) Programs for parents and their infants, from the 
        prenatal period of the infant through age 3.
            ``(B) Preschool programs.
            ``(C) Training, education, and support for parents in such 
        areas as reading readiness, observation, story telling, and 
        critical thinking.
    ``(b) Limitation on Administrative Costs.--Not more than 5 percent 
of funds provided to a grantee 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 one Alaska Native regional nonprofit organization.
    ``(d) Authorization of Appropriations.--
        ``(1) In general.--There are authorized to be appropriated to 
    carry out this section such sums as may be necessary for fiscal 
    year 2002 and each of the 5 succeeding fiscal years.
        ``(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 
in such form, in such manner, and containing such information as the 
Secretary may determine necessary to carry out the provisions of this 
part.
    ``(b) Applications.--A State educational agency or local 
educational agency may apply for an award 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 an award 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 an 
award under this part shall inform each local educational agency 
serving students who would participate in the program to be carried out 
under the grant or contract about the application.

``SEC. 7306. DEFINITIONS.

    ``In this part:
        ``(1) Alaska native.--The term `Alaska Native' has the same 
    meaning as the term `Native' has 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, and 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 7151(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''.

SEC. 703. SAVINGS PROVISIONS.

    Funds appropriated for parts A, B, and C of title IX of the 
Elementary and Secondary Education Act of 1965 (as in effect on the day 
before the date of enactment of this Act) shall be available for use 
under parts A, B, and C, respectively, of title VII of such Act, as 
added by this section.

                     TITLE VIII--IMPACT AID PROGRAM

SEC. 801. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.

    (a) Foundation Payments for Pre-1995 Recipients.--Section 
8002(h)(1) (20 U.S.C. 7702(h)(1)) is amended--
        (1) 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 statute to have filed a timely application, and met, or 
    has been determined pursuant to statute to meet, the eligibility 
    requirements of section 2(a)(1)(C) of the Act of September 30, 
    1950''; and
        (2) 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 statute to meet, the eligibility requirements of 
    section 2(a)(1)(C) of the Act of September 30, 1950 for fiscal year 
    1994''.
    (b) Payments for 1995 Recipients.--Section 8002(h)(2) (20 U.S.C. 
7702(h)(2)) is amended--
        (1) in subparagraph (A), by adding at the end before the period 
    ``, or whose application under this section for fiscal year 1995 
    was determined pursuant to statute to be timely filed for purposes 
    of payments for subsequent fiscal years''; and
        (2) 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)''.
    (c) Remaining Funds.--Section 8002(h)(4)(B) (20 U.S.C. 
7702(h)(4)(B)) is amended--
        (1) 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
        (2) 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)''.
    (d) Additional Assistance for Certain Local Educational Agencies 
Impacted by Federal Property Acquisition.--Section 8002 (20 U.S.C. 
7702) is amended by striking subsection (j).
    (e) Minimum Payment With Respect to Loss of Eligibility of Certain 
Local Educational Agencies.--Section 8002 (20 U.S.C. 7702) is amended 
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 for 
    the preceding year.
        ``(2) Local educational agency described.--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.''.
    (f) Application for Payment.--Notwithstanding any other provision 
of law, the Secretary shall treat as timely filed an application under 
section 8002 (20 U.S.C. 7702) from Academy School District 20, 
Colorado, for a payment for fiscal year 1999, and shall process that 
application from funds appropriated for that section for fiscal year 
2001.

SEC. 802. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.

    (a) Eligibility for Certain Heavily Impacted Local Educational 
Agencies.--
        (1) In general.--Section 8003(b)(2)(C) (20 U.S.C. 
    7703(b)(2)(C)) is amended--
            (A) in clauses (i) and (ii), by inserting after ``Federal 
        military installation'' each place it appears the following: 
        ``(or if the agency is a qualified local educational agency as 
        described in clause (iv))''; and
            (B) 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 of the agency 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.''.

        (2) 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 paragraph (1), 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 30 days after the date of enactment of 
    this Act.
    (b) Applications for Payment.--
        (1) Warner public schools, muskogee county, oklahoma.--
    Notwithstanding any other provision of law, the Secretary of 
    Education shall treat as timely filed an application under section 
    8003 (20 U.S.C. 7703) from Warner Public Schools, Muskogee County, 
    Oklahoma, for a payment for fiscal year 2002, and shall process 
    that application for payment, if the Secretary has received the 
    fiscal year 2002 application not later than 30 days after the date 
    of enactment of this Act.
        (2) Pine point school, school district 25, minnesota.--
    Notwithstanding any other provision of law, the Secretary shall 
    treat as timely filed an application under section 8003 (20 U.S.C. 
    7703) from Pine Point School, School District 25, Minnesota, for a 
    payment for fiscal year 2002, and shall process that application 
    for payment, if the Secretary has received the fiscal year 2002 
    application not later than 30 days after the date of enactment of 
    this Act.

SEC. 803. CONSTRUCTION.

    Section 8007(b) (20 U.S.C. 7707(b)) is amended to read as follows:
    ``(b) School Facility Emergency and Modernization Grants 
Authorized.--
        ``(1) In general.--From 60 percent of the amount appropriated 
    for each fiscal year under section 8014(e), the Secretary--
            ``(A) shall award emergency grants in accordance with this 
        subsection to eligible local educational agencies to enable the 
        agencies to carry out emergency repairs of school facilities; 
        and
            ``(B) shall award modernization grants in accordance with 
        this subsection to eligible local educational agencies to 
        enable the agencies to carry out the modernization of school 
        facilities.
        ``(2) Priority.--In approving applications from local 
    educational agencies for emergency grants and modernization grants 
    under this subsection, the Secretary shall give priority to 
    applications in accordance with the following:
            ``(A) The Secretary shall first give priority to 
        applications for emergency grants from local educational 
        agencies that meet the requirements of paragraph (3)(A) and, 
        among such applications for emergency grants, shall give 
        priority to those applications of local educational agencies 
        based on the severity of the emergency, as determined by the 
        Secretary.
            ``(B) The Secretary shall next give priority to 
        applications for emergency grants from local educational 
        agencies that meet the requirements of subparagraph (C) or (D) 
        of paragraph (3) and, among such applications for emergency 
        grants, shall give priority to those applications of local 
        educational agencies based on the severity of the emergency, as 
        determined by the Secretary.
            ``(C) The Secretary shall next give priority to 
        applications for modernization grants from local educational 
        agencies that meet the requirements of paragraph (3)(B) and, 
        among such applications for modernization grants, shall give 
        priority to those applications of local educational agencies 
        based on the severity of the need for modernization, as 
        determined by the Secretary.
            ``(D) The Secretary shall next give priority to 
        applications for modernization grants from local educational 
        agencies that meet the requirements of subparagraph (C) or (D) 
        of paragraph (3) and, among such applications for modernization 
        grants, shall give priority to those applications of local 
        educational agencies based on the severity of the need for 
        modernization, as determined by the Secretary.
        ``(3) Eligibility requirements.--
            ``(A) Emergency grants.--A local educational agency is 
        eligible to receive an emergency grant under paragraph (2)(A) 
        if--
                ``(i) the agency (or in the case of a local educational 
            agency that does not have the authority to tax or issue 
            bonds, the agency's fiscal agent)--

                    ``(I) has no practical capacity to issue bonds;
                    ``(II) has minimal capacity to issue bonds and is 
                at not less than 75 percent of the agency's limit of 
                bonded indebtedness; or
                    ``(III) does not meet the requirements of 
                subclauses (I) and (II) but is eligible to receive 
                funds under section 8003(b)(2) for the fiscal year; and

                ``(ii) the agency is eligible to receive assistance 
            under subsection (a) for the fiscal year and has a school 
            facility emergency, as determined by the Secretary, that 
            poses a health or safety hazard to the students and school 
            personnel assigned to the school facility.
            ``(B) Modernization grants.--A local educational agency is 
        eligible to receive a modernization grant under paragraph 
        (2)(C) if--
                ``(i) the agency is eligible to receive assistance 
            under this title for the fiscal year;
                ``(ii) the agency (or in the case of a local 
            educational agency that does not have the authority to tax 
            or issue bonds, the agency's fiscal agent) meets the 
            requirements of subclause (I), (II), or (III) of 
            subparagraph (A)(i); and
                ``(iii) the agency has facility needs resulting from 
            the presence of the Federal Government, such as the 
            enrollment of federally connected children, the presence of 
            tax-exempt Federal property, or an increase in enrollment 
            due to the expansion of Federal activities, housing 
            privatization, or the acquisition of Federal property.
            ``(C) Additional eligibility for emergency and 
        modernization grants.--(i) A local educational agency is 
        eligible to receive an emergency grant or a modernization grant 
        under subparagraph (B) or (D) of paragraph (2), respectively, 
        if the agency meets the following requirements:
                ``(I) The agency receives a basic support payment under 
            section 8003(b) for the fiscal year and the agency meets at 
            least one of the following requirements:

                    ``(aa) The number of children determined under 
                section 8003(a)(1)(C) for the agency for the preceding 
                school year constituted at least 40 percent of the 
                total student enrollment in the schools of the agency 
                during the preceding school year.
                    ``(bb) The number of children determined under 
                subparagraphs (B) and (D)(i) of section 8003(a)(1) for 
                the agency for the preceding school year constituted at 
                least 40 percent of the total student enrollment in the 
                schools of the agency during the preceding school year.

                ``(II) The agency (or in the case of a local 
            educational agency that does not have the authority to tax 
            or issue bonds, the agency's fiscal agent) is at not less 
            than 75 percent of the agency's limit of bonded 
            indebtedness.
                ``(III) The agency has an assessed value of real 
            property per student that may be taxed for school purposes 
            that is less than the average of the assessed value of real 
            property per student that may be taxed for school purposes 
            in the State in which the local educational agency is 
            located.
            ``(ii) A local educational agency is also eligible to 
        receive a modernization grant under this subparagraph if the 
        agency is eligible to receive assistance under section 8002 for 
        the fiscal year and meets the requirements of subclauses (II) 
        and (III) of clause (i).
            ``(D) Special rule.--
                ``(i) In general.--Any school described in clause (ii) 
            that desires to receive an emergency grant or a 
            modernization grant under subparagraph (B) or (D) of 
            paragraph (2), respectively, shall, except as provided in 
            the following sentence, submit an application in accordance 
            with paragraph (6), and shall otherwise be treated as a 
            local educational agency for the purpose of this 
            subsection. The school shall submit an application for the 
            grant to the local educational agency of such school and 
            the agency shall submit the application on behalf of the 
            school to the Secretary.
                ``(ii) School described.--A school described in this 
            clause is a school that meets the following requirements:

                    ``(I) The school is located within the geographic 
                boundaries of a local educational agency that does not 
                meet the applicable eligibility requirements under 
                subparagraph (A), (B), or (C) for a grant under this 
                subsection.
                    ``(II) The school meets at least one of the 
                following requirements:

                        ``(aa) The number of children determined under 
                    section 8003(a)(1)(C) for the school for the 
                    preceding school year constituted at least 40 
                    percent of the total student enrollment in the 
                    school during the preceding school year.
                        ``(bb) The number of children determined under 
                    subparagraphs (B) and (D)(i) of section 8003(a)(1) 
                    for the school for the preceding school year 
                    constituted at least 40 percent of the total 
                    student enrollment in the school during the 
                    preceding school year.

                    ``(III) The school is located within the geographic 
                boundaries of a local educational agency that meets the 
                requirements of subclauses (II) and (III) of 
                subparagraph (C)(i).

            ``(E) Rule of construction.--For purposes of subparagraph 
        (A)(i), a local educational agency--
                ``(i) has no practical capacity to issue bonds if the 
            total assessed value of real property that may be taxed for 
            school purposes is less than $25,000,000; and
                ``(ii) has minimal capacity to issue bonds if the total 
            assessed value of real property that may be taxed for 
            school purposes is at least $25,000,000 but not more than 
            $50,000,000.
        ``(4) Award criteria.--In awarding emergency grants and 
    modernization grants under this subsection, the Secretary shall 
    consider the following factors:
            ``(A) The ability of the local educational agency to 
        respond to the emergency, or to pay for the modernization 
        project, as the case may be, as measured by--
                ``(i) the agency's level of bonded indebtedness;
                ``(ii) the assessed value of real property per student 
            that may be taxed for school purposes compared to the 
            average of the assessed value of real property per student 
            that may be taxed for school purposes in the State in which 
            the agency is located;
                ``(iii) the agency's total tax rate for school purposes 
            (or, if applicable, for capital expenditures) compared to 
            the average total tax rate for school purposes (or the 
            average capital expenditure tax rate, if applicable) in the 
            State in which the agency is located; and
                ``(iv) funds that are available to the agency, from any 
            other source, including subsection (a), that may be used 
            for capital expenditures.
            ``(B) The percentage of property in the agency that is 
        nontaxable due to the presence of the Federal Government.
            ``(C) The number and percentages of children described in 
        subparagraphs (A), (B), (C), and (D) of section 8003(a)(1) 
        served in the school facility with the emergency or served in 
        the school facility proposed for modernization, as the case may 
        be.
            ``(D) In the case of an emergency grant, the severity of 
        the emergency, as measured by the threat that the condition of 
        the school facility poses to the health, safety, and well-being 
        of students.
            ``(E) In the case of a modernization grant--
                ``(i) the severity of the need for modernization, as 
            measured by such factors as--

                    ``(I) overcrowding, as evidenced by the use of 
                portable classrooms, or the potential for future 
                overcrowding because of increased enrollment; or
                    ``(II) the agency's inability to utilize technology 
                or offer a curriculum in accordance with contemporary 
                State standards due to the physical limitations of the 
                current school facility; and

                ``(ii) the age of the school facility proposed for 
            modernization.
        ``(5) Other award provisions.--
            ``(A) General provisions.--
                ``(i) Limitations on amount of funds.--

                    ``(I) In general.--The amount of funds provided 
                under an emergency grant or a modernization grant 
                awarded under this subsection to a local educational 
                agency that meets the requirements of subclause (II) or 
                (III) of paragraph (3)(A)(i) for purposes of 
                eligibility under subparagraph (A) or (B) of paragraph 
                (3) or that meets the requirements of clause (i) or 
                (ii) of paragraph (3)(C) for purposes of eligibility 
                under such paragraph (3)(C), or to a school that is 
                eligible under paragraph (3)(D)--

                        ``(aa) shall not exceed 50 percent of the total 
                    cost of the project to be assisted under this 
                    subsection; and
                        ``(bb) shall not exceed $4,000,000 during any 
                    4-year period.

                    ``(II) In-kind contributions.--A local educational 
                agency may use in-kind contributions to meet the 
                matching requirement of subclause (I)(aa).

                ``(ii) Prohibitions on use of funds.--A local 
            educational agency may not use funds provided under an 
            emergency grant or modernization grant awarded under this 
            subsection for--

                    ``(I) a project for a school facility for which the 
                agency does not have full title or other interest;
                    ``(II) stadiums or other school facilities that are 
                primarily used for athletic contests, exhibitions, or 
                other events for which admission is charged to the 
                general public; or
                    ``(III) the acquisition of real property.

                ``(iii) Supplement, not supplant.--A local educational 
            agency shall use funds provided under an emergency grant or 
            modernization grant awarded under this subsection only to 
            supplement the amount of funds that would, in the absence 
            of the Federal funds provided under the grant, be made 
            available from non-Federal sources to carry out emergency 
            repairs of school facilities or to carry out the 
            modernization of school facilities, as the case may be, and 
            not to supplant such funds.
                ``(iv) Maintenance costs.--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.
                ``(v) 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.
                ``(vi) Carry-over of certain applications.--A local 
            educational agency that applies for an emergency grant or a 
            modernization grant under this subsection for a fiscal year 
            and does not receive the grant for the fiscal year shall 
            have the application for the grant considered for the 
            following fiscal year, subject to the priority requirements 
            of paragraph (2) and the award criteria requirements of 
            paragraph (4).
            ``(B) Emergency grants; prohibition on use of funds.--A 
        local educational agency that is awarded an emergency grant 
        under this subsection may not use amounts under the grant for 
        the complete or partial replacement of an existing school 
        facility unless such replacement is less expensive or more 
        cost-effective than correcting the identified emergency.
        ``(6) Application.--A local educational agency that desires to 
    receive an emergency grant or a modernization 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 the 
    following:
            ``(A) A description of how the local educational agency 
        meets the award criteria under paragraph (4), including the 
        information described in clauses (i) through (iv) of paragraph 
        (4)(A) and subparagraphs (B) and (C) of paragraph (4).
            ``(B) In the case of an application for an emergency 
        grant--
                ``(i) a description of the school facility deficiency 
            that poses a health or safety hazard to the occupants of 
            the facility and a description of how the deficiency will 
            be repaired; and
                ``(ii) a signed statement from an appropriate local 
            official certifying that a deficiency in the school 
            facility threatens the health or safety of the occupants of 
            the facility or that prevents the use of all or a portion 
            of the building.
            ``(C) In the case of an application for a modernization 
        grant--
                ``(i) an explanation of the need for the school 
            facility modernization project;
                ``(ii) the date on which original construction of the 
            facility to be modernized was completed;
                ``(iii) 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; and
                ``(iv) 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.
            ``(D) A description of the project for which a grant under 
        this subsection will be used, including a cost estimate for the 
        project.
            ``(E) A description of the interest in, or authority over, 
        the school facility involved, such as an ownership interest or 
        a lease arrangement.
            ``(F) Such other information and assurances as the 
        Secretary may reasonably require.
        ``(7) Report.--
            ``(A) In general.--Not later than January 1 of each year, 
        the Secretary shall prepare and submit to the appropriate 
        congressional committees a report that contains a justification 
        for each grant awarded under this subsection for the prior 
        fiscal year.
            ``(B) Definition.--In this paragraph, the term `appropriate 
        congressional committees' means--
                ``(i) the Committee on Appropriations and the Committee 
            on Education and the Workforce of the House of 
            Representatives; and
                ``(ii) the Committee on Appropriations and the 
            Committee on Health, Education, Labor, and Pensions of the 
            Senate.''.

SEC. 804. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE AID.

    Section 8009(b)(1) (20 U.S.C. 7709(b)(1)) 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 section 8003(b)(1) and not section 8003(b)(2)''.

SEC. 805. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--Section 8014 (20 U.S.C. 7714) is amended in 
subsections (a), (b), (c), and (f) by striking ``three succeeding 
fiscal years'' each place it appears and inserting ``seven succeeding 
fiscal years''.
    (b) Construction.--Section 8014(e) (20 U.S.C. 7714(e)) is amended 
by striking ``for each of the three succeeding fiscal years'' and 
inserting ``for fiscal year 2001, $150,000,000 for fiscal year 2002, 
and such sums as may be necessary for each of the five succeeding 
fiscal years''.
    (c) Additional Assistance for Certain Local Educational Agencies 
Impacted by Federal Property Acquisition.--Section 8014 (20 U.S.C. 
7714) is amended by striking subsection (g).

                      TITLE IX--GENERAL PROVISIONS

SEC. 901. GENERAL PROVISIONS.

    Title IX (20 U.S.C. 7801 et seq.) is amended to read as follows:

                     ``TITLE IX--GENERAL PROVISIONS

                         ``PART A--DEFINITIONS

``SEC. 9101. 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 
            that 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 other similar 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 the purpose 
        of this Act--
                ``(i) consider the child to be in attendance at a 
            school of the agency making the payment; and
                ``(ii) not consider the child to be in attendance at a 
            school of the agency receiving the 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 
        purpose of this Act, consider the child to be in attendance at 
        a school of the agency making the 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 those agencies; divided by
            ``(B) the aggregate number of children in average daily 
        attendance to whom those agencies provided free public 
        education during that preceding year.
        ``(3) Beginning teacher.--The term `beginning teacher' means a 
    teacher in a public school who has been teaching less than a total 
    of three complete school years.
        ``(4) Child.--The term `child' means any person within the age 
    limits for which the State provides free public education.
        ``(5) Child with a disability.--The term `child with a 
    disability' has the same meaning given that term in section 602 of 
    the Individuals with Disabilities Education Act.
        ``(6) 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.
        ``(7) Consolidated local application.--The term `consolidated 
    local application' means an application submitted by a local 
    educational agency pursuant to section 9305.
        ``(8) Consolidated local plan.--The term `consolidated local 
    plan' means a plan submitted by a local educational agency pursuant 
    to section 9305.
        ``(9) Consolidated state application.--The term `consolidated 
    State application' means an application submitted by a State 
    educational agency pursuant to section 9302.
        ``(10) Consolidated state plan.--The term `consolidated State 
    plan' means a plan submitted by a State educational agency pursuant 
    to section 9302.
        ``(11) Core academic subjects.--The term `core academic 
    subjects' means English, reading or language arts, mathematics, 
    science, foreign languages, civics and government, economics, arts, 
    history, and geography.
        ``(12) 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.
        ``(13) Covered program.--The term `covered program' means each 
    of the programs authorized by--
            ``(A) part A of title I;
            ``(B) subpart 3 of part B of title I;
            ``(C) part C of title I;
            ``(D) part D of title I;
            ``(E) part F of title I;
            ``(F) part A of title II;
            ``(G) part D of title II;
            ``(H) part A of title III;
            ``(I) part A of title IV;
            ``(J) part B of title IV;
            ``(K) part A of title V; and
            ``(L) subpart 2 of part B of title VI.
        ``(14) 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 title I and part A of title V.
        ``(15) Department.--The term `Department' means the Department 
    of Education.
        ``(16) Distance learning.--The term `distance learning' means 
    the transmission of educational or instructional programming to 
    geographically dispersed individuals and groups via 
    telecommunications.
        ``(17) 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.
        ``(18) 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.
        ``(19) Exemplary teacher.--The term `exemplary teacher' means a 
    teacher who--
            ``(A) is a highly qualified teacher such as a master 
        teacher;
            ``(B) has been teaching for at least 5 years in a public or 
        private school or institution of higher education;
            ``(C) is recommended to be an exemplary teacher by 
        administrators and other teachers who are knowledgeable about 
        the individual's performance;
            ``(D) is currently teaching and based in a public school; 
        and
            ``(E) assists other teachers in improving instructional 
        strategies, improves the skills of other teachers, performs 
        teacher mentoring, develops curricula, and offers other 
        professional development.
        ``(20) Family literacy services.--The term `family literacy 
    services' means services provided to participants on a voluntary 
    basis that are of sufficient intensity in terms of hours, and of 
    sufficient duration, to make sustainable changes in a family, and 
    that integrate all of the following activities:
            ``(A) Interactive literacy activities between parents and 
        their children.
            ``(B) Training for parents regarding how to be the primary 
        teacher for their children and full partners in the education 
        of their children.
            ``(C) Parent literacy training that leads to economic self-
        sufficiency.
            ``(D) An age-appropriate education to prepare children for 
        success in school and life experiences.
        ``(21) 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 the term 
        does not include any education provided beyond grade 12.
        ``(22) 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 achievement 
    capability in areas such as intellectual, creative, artistic, or 
    leadership capacity, or in specific academic fields, and who need 
    services or activities not ordinarily provided by the school in 
    order to fully develop those capabilities.
        ``(23) Highly qualified.--The term `highly qualified'--
            ``(A) when used with respect to any public elementary 
        school or secondary school teacher teaching in a State, means 
        that--
                ``(i) the teacher has obtained full State certification 
            as a teacher (including certification obtained through 
            alternative routes to certification) or passed the State 
            teacher licensing examination, and holds a license to teach 
            in such State, except that when used with respect to any 
            teacher teaching in a public charter school, the term means 
            that the teacher meets the requirements set forth in the 
            State's public charter school law; and
                ``(ii) the teacher has not had certification or 
            licensure requirements waived on an emergency, temporary, 
            or provisional basis;
            ``(B) when used with respect to--
                ``(i) an elementary school teacher who is new to the 
            profession, means that the teacher--

                    ``(I) holds at least a bachelor's degree; and
                    ``(II) has demonstrated, by passing a rigorous 
                State test, subject knowledge and teaching skills in 
                reading, writing, mathematics, and other areas of the 
                basic elementary school curriculum (which may consist 
                of passing a State-required certification or licensing 
                test or tests in reading, writing, mathematics, and 
                other areas of the basic elementary school curriculum); 
                or

                ``(ii) a middle or secondary school teacher who is new 
            to the profession, means that the teacher holds at least a 
            bachelor's degree and has demonstrated a high level of 
            competency in each of the academic subjects in which the 
            teacher teaches by--

                    ``(I) passing a rigorous State academic subject 
                test in each of the academic subjects in which the 
                teacher teaches (which may consist of a passing level 
                of performance on a State-required certification or 
                licensing test or tests in each of the academic 
                subjects in which the teacher teaches); or
                    ``(II) successful completion, in each of the 
                academic subjects in which the teacher teaches, of an 
                academic major, a graduate degree, coursework 
                equivalent to an undergraduate academic major, or 
                advanced certification or credentialing; and

            ``(C) when used with respect to an elementary, middle, or 
        secondary school teacher who is not new to the profession, 
        means that the teacher holds at least a bachelor's degree and--
                ``(i) has met the applicable standard in clause (i) or 
            (ii) of subparagraph (B), which includes an option for a 
            test; or
                ``(ii) demonstrates competence in all the academic 
            subjects in which the teacher teaches based on a high 
            objective uniform State standard of evaluation that--

                    ``(I) is set by the State for both grade 
                appropriate academic subject matter knowledge and 
                teaching skills;
                    ``(II) is aligned with challenging State academic 
                content and student academic achievement standards and 
                developed in consultation with core content 
                specialists, teachers, principals, and school 
                administrators;
                    ``(III) provides objective, coherent information 
                about the teacher's attainment of core content 
                knowledge in the academic subjects in which a teacher 
                teaches;
                    ``(IV) is applied uniformly to all teachers in the 
                same academic subject and the same grade level 
                throughout the State;
                    ``(V) takes into consideration, but not be based 
                primarily on, the time the teacher has been teaching in 
                the academic subject;
                    ``(VI) is made available to the public upon 
                request; and
                    ``(VII) may involve multiple, objective measures of 
                teacher competency.

        ``(24) Institution of higher education.--The term `institution 
    of higher education' has the meaning given that term in section 
    101(a) of the Higher Education Act of 1965.
        ``(25) Limited english proficient.--The term `limited English 
    proficient', when used with respect to an individual, 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;
            ``(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 the 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) whose difficulties in speaking, reading, writing, or 
        understanding the English language may be sufficient to deny 
        the individual--
                ``(i) the ability to meet the State's proficient level 
            of achievement on State assessments described in section 
            1111(b)(3);
                ``(ii) the ability to successfully achieve in 
            classrooms where the language of instruction is English; or
                ``(iii) the opportunity to participate fully in 
            society.
        ``(26) 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 of or for a combination of school 
        districts or counties that is recognized in a State as an 
        administrative agency for its public elementary schools 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 including the school makes the school 
        eligible for programs for which specific eligibility is not 
        provided to the school in another provision of law and the 
        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 the school shall not be subject to the 
        jurisdiction of any State educational agency other than the 
        Bureau of Indian Affairs.
            ``(D) Educational service agencies.--The term includes 
        educational service agencies and consortia of those agencies.
            ``(E) State educational agency.--The term includes the 
        State educational agency in a State in which the State 
        educational agency is the sole educational agency for all 
        public schools.
        ``(27) Mentoring.--The term `mentoring', except when used to 
    refer to teacher mentoring, means a process by which a responsible 
    adult, postsecondary student, or secondary school student 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.
        ``(28) Native american and native american language.--The terms 
    `Native American' and `Native American language' have the same 
    meaning given those terms in section 103 of the Native American 
    Languages Act of 1990.
        ``(29) Other staff.--The term `other staff' means pupil 
    services personnel, librarians, career guidance and counseling 
    personnel, education aides, and other instructional and 
    administrative personnel.
        ``(30) Outlying area.--The term `outlying area' means the 
    United States Virgin Islands, Guam, American Samoa, and the 
    Commonwealth of the Northern Mariana Islands, and for the purpose 
    of section 1121(b) and any other discretionary grant program under 
    this Act, includes the freely associated states of the Republic of 
    the Marshall Islands, the Federated States of Micronesia, and the 
    Republic of Palau until an agreement for the extension of United 
    States education assistance under the Compact of Free Association 
    for each of the freely associated states becomes effective after 
    the date of enactment of the No Child Left Behind Act of 2001.
        ``(31) Parent.--The term `parent' includes a legal guardian or 
    other person standing in loco parentis (such as a grandparent or 
    stepparent with whom the child lives, or a person who is legally 
    responsible for the child's welfare).
        ``(32) Parental involvement.--The term `parental involvement' 
    means the participation of parents in regular, two-way, and 
    meaningful communication involving student academic learning and 
    other school activities, including ensuring--
            ``(A) that parents play an integral role in assisting their 
        child's learning;
            ``(B) that parents are encouraged to be actively involved 
        in their child's education at school;
            ``(C) that parents are full partners in their child's 
        education and are included, as appropriate, in decisionmaking 
        and on advisory committees to assist in the education of their 
        child;
            ``(D) the carrying out of other activities, such as those 
        described in section 1118.
        ``(33) 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.
        ``(34) Professional development.--The term `professional 
    development'--
            ``(A) includes activities that--
                ``(i) improve and increase teachers' knowledge of the 
            academic subjects the teachers teach, and enable teachers 
            to become highly qualified;
                ``(ii) are an integral part of broad schoolwide and 
            districtwide educational improvement plans;
                ``(iii) give teachers, principals, and administrators 
            the knowledge and skills to provide students with the 
            opportunity to meet challenging State academic content 
            standards and student academic achievement standards;
                ``(iv) improve classroom management skills;
                ``(v)(I) are high quality, sustained, intensive, and 
            classroom-focused in order to have a positive and lasting 
            impact on classroom instruction and the teacher's 
            performance in the classroom; and
                ``(II) are not 1-day or short-term workshops or 
            conferences;
                ``(vi) support the recruiting, hiring, and training of 
            highly qualified teachers, including teachers who became 
            highly qualified through State and local alternative routes 
            to certification;
                ``(vii) advance teacher understanding of effective 
            instructional strategies that are--

                    ``(I) based on scientifically based research 
                (except that this subclause shall not apply to 
                activities carried out under part D of title II); and
                    ``(II) strategies for improving student academic 
                achievement or substantially increasing the knowledge 
                and teaching skills of teachers; and

                ``(viii) are aligned with and directly related to--

                    ``(I) State academic content standards, student 
                academic achievement standards, and assessments; and
                    ``(II) the curricula and programs tied to the 
                standards described in subclause (I) except that this 
                subclause shall not apply to activities described in 
                clauses (ii) and (iii) of section 2123(3)(B);

                ``(ix) are developed with extensive participation of 
            teachers, principals, parents, and administrators of 
            schools to be served under this Act;
                ``(x) are designed to give teachers of limited English 
            proficient children, and other teachers and instructional 
            staff, the knowledge and skills to provide instruction and 
            appropriate language and academic support services to those 
            children, including the appropriate use of curricula and 
            assessments;
                ``(xi) to the extent appropriate, provide training for 
            teachers and principals in the use of technology so that 
            technology and technology applications are effectively used 
            in the classroom to improve teaching and learning in the 
            curricula and core academic subjects in which the teachers 
            teach;
                ``(xii) as a whole, are regularly evaluated for their 
            impact on increased teacher effectiveness and improved 
            student academic achievement, with the findings of the 
            evaluations used to improve the quality of professional 
            development;
                ``(xiii) provide instruction in methods of teaching 
            children with special needs;
                ``(xiv) include instruction in the use of data and 
            assessments to inform and instruct classroom practice; and
                ``(xv) include instruction in ways that teachers, 
            principals, pupil services personnel, and school 
            administrators may work more effectively with parents; and
            ``(B) may include activities that--
                ``(i) involve the forming of partnerships with 
            institutions of higher education to establish school-based 
            teacher training programs that provide prospective teachers 
            and beginning teachers with an opportunity to work under 
            the guidance of experienced teachers and college faculty;
                ``(ii) create programs to enable paraprofessionals 
            (assisting teachers employed by a local educational agency 
            receiving assistance under part A of title I) to obtain the 
            education necessary for those paraprofessionals to become 
            certified and licensed teachers; and
                ``(iii) provide follow-up training to teachers who have 
            participated in activities described in subparagraph (A) or 
            another clause of this subparagraph that are designed to 
            ensure that the knowledge and skills learned by the 
            teachers are implemented in the classroom.
        ``(35) Public telecommunications entity.--The term `public 
    telecommunications entity' has the meaning given that term in 
    section 397(12) of the Communications Act of 1934.
        ``(36) 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 that 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.
        ``(37) Scientifically based research.--The term `scientifically 
    based research'--
            ``(A) means research that involves the application of 
        rigorous, systematic, and objective procedures to obtain 
        reliable and valid knowledge relevant to education activities 
        and programs; and
            ``(B) includes 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 reliable and valid data across evaluators and 
            observers, across multiple measurements and observations, 
            and across studies by the same or different investigators;
                ``(iv) is evaluated using experimental or quasi-
            experimental designs in which individuals, entities, 
            programs, or activities are assigned to different 
            conditions and with appropriate controls to evaluate the 
            effects of the condition of interest, with a preference for 
            random-assignment experiments, or other designs to the 
            extent that those designs contain within-condition or 
            across-condition controls;
                ``(v) ensures that experimental studies are presented 
            in sufficient detail and clarity to allow for replication 
            or, at a minimum, offer the opportunity to build 
            systematically on their findings; and
                ``(vi) has been accepted by a peer-reviewed journal or 
            approved by a panel of independent experts through a 
            comparably rigorous, objective, and scientific review.
        ``(38) 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 the term does not 
    include any education beyond grade 12.
        ``(39) Secretary.--The term `Secretary' means the Secretary of 
    Education.
      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.
        ``(41) State educational agency.--The term `State educational 
    agency' means the agency primarily responsible for the State 
    supervision of public elementary schools and secondary schools.
        ``(42) Teacher mentoring.--The term `teacher mentoring' means 
    activities that--
            ``(A) consist of structured guidance and regular and 
        ongoing support for teachers, especially beginning teachers, 
        that--
                ``(i) are designed to help the teachers continue to 
            improve their practice of teaching and to develop their 
            instructional skills; and
                 part of an ongoing developmental induction process--

                    ``(I) involve the assistance of an exemplary 
                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.
        ``(43) Technology.--The term `technology' means state-of-the-
    art technology products and services.

``SEC. 9102. APPLICABILITY OF TITLE.

    ``Parts B, C, D, and E of this title do not apply to title VIII of 
this Act.

``SEC. 9103. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS OPERATED 
              SCHOOLS.

    ``For the purpose of any competitive program under this Act--
        ``(1) a consortium of schools operated by the Bureau of Indian 
    Affairs;
        ``(2) a school operated under a contract or grant with the 
    Bureau of Indian Affairs in consortium with another contract or 
    grant school or a tribal or community organization; or
        ``(3) a Bureau of Indian Affairs school in consortium with an 
    institution of higher education, a contract or grant school, or a 
    tribal or community organization,
shall be given the same consideration as a local educational agency.

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

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

    ``(a) Consolidation of Administrative Funds.--
        ``(1) In general.--A State educational agency may consolidate 
    the amounts specifically made available to it for State 
    administration under one or more of the programs under paragraph 
    (2) if the State educational agency can demonstrate that the 
    majority of its resources are derived from non-Federal sources.
        ``(2) Applicability.--This section applies to any program under 
    this Act under which funds are authorized to be used for 
    administration, and such other programs as the Secretary may 
    designate.
    ``(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 programs included in the consolidation under subsection (a), 
    such as--
            ``(A) the coordination of those 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 title;
            ``(D) the dissemination of information regarding model 
        programs and practices;
            ``(E) technical assistance under any program under this 
        Act;
            ``(F) State-level activities designed to carry out this 
        title;
            ``(G) training personnel engaged in audit and other 
        monitoring activities; and
            ``(H) implementation of the Cooperative Audit Resolution 
        and Oversight Initiative of the Department.
    ``(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 
that administration.
    ``(e) Unused Administrative Funds.--If a State educational agency 
does not use all of the funds available to the agency under this 
section for administration, the agency may use those 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 academic standards 
and assessments, a State educational agency may consolidate the amounts 
described in subsection (a) for those purposes under title I.

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

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

``SEC. 9203. CONSOLIDATION OF FUNDS FOR LOCAL ADMINISTRATION.

    ``(a) General Authority.--In accordance with regulations of the 
Secretary and for any fiscal year, a local educational agency, with the 
approval of its State educational agency, may consolidate and use for 
the administration of one or more programs under this Act (or such 
other programs as the Secretary shall designate) not more than the 
percentage, established in each program, of the total available for the 
local educational agency under those programs.
    ``(b) State Procedures.--Within 1 year after the date of enactment 
of the No Child Left Behind Act of 2001, 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 those 
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 the 
consolidated funds for the administration of the programs and for uses, 
at the school district and school levels, comparable to those described 
in section 9201(b)(2).
    ``(e) Records.--A local educational agency that consolidates 
administrative funds under this section shall not be required to keep 
separate records, by individual program, to account for costs relating 
to the administration of the programs included in the consolidation.

``SEC. 9204. 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, and the 
    education for homeless children and youth program under subtitle B 
    of title VII of the McKinney-Vento Homeless Assistance Act, the 
    amounts allotted to the Department of the Interior under those 
    programs.
        ``(2) Agreement.--
            ``(A) In general.--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) Contents.--The agreement shall--
                ``(i) set forth the plans of the Secretary of the 
            Interior for the use of the amount transferred and the 
            achievement 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 
its costs related to the administration of the funds transferred under 
this section.

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

``SEC. 9301. PURPOSES.

    ``The purposes of this part are--
        ``(1) to improve teaching and learning by encouraging greater 
    cross-program coordination, planning, and service delivery;
        ``(2) to provide greater flexibility to State and local 
    authorities through consolidated plans, applications, and 
    reporting; and
        ``(3) to enhance the integration of programs under this Act 
    with State and local programs.

``SEC. 9302. 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) such other programs as the Secretary may designate.
        ``(2) 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 
    paragraph (1), the Secretary shall establish, for each program 
    under this 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. 9303. CONSOLIDATED REPORTING.

    ``(a) In general.--In order to simplify reporting requirements and 
reduce reporting burdens, the Secretary shall establish procedures and 
criteria under which a State educational agency, in consultation with 
the Governor of the State, may submit a consolidated State annual 
report.
    ``(b) Contents.--The report shall contain information about the 
programs included in the report, including the performance of the State 
under those programs, and other matters as the Secretary determines are 
necessary, such as monitoring activities.
    ``(c) Replacement.--The report shall replace separate individual 
annual reports for the programs included in the consolidated State 
annual report.

``SEC. 9304. GENERAL APPLICABILITY OF STATE EDUCATIONAL AGENCY 
              ASSURANCES.

    ``(a) Assurances.--A State educational agency, in consultation with 
the Governor of the State, that submits a consolidated State plan or 
consolidated State application under this Act, whether separately or 
under section 9302, shall have on file with the Secretary a single set 
of assurances, applicable to each program for which the 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, a nonprofit private agency, institution, or 
    organization, or an Indian tribe, if the law authorizing the 
    program provides for assistance to those entities; and
        ``(B) the public agency, nonprofit private agency, institution, 
    or organization, or Indian tribe will administer those 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 the 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 such 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 afforded a reasonable opportunity for public 
    comment on the plan or application and considered such comment.
    ``(b) GEPA Provision.--Section 441 of the General Education 
Provisions Act shall not apply to programs under this Act.

``SEC. 9305. CONSOLIDATED LOCAL PLANS OR APPLICATIONS.

    ``(a) General Authority.--
        ``(1) Consolidated plan.--A local educational agency receiving 
    funds under more than one covered program may submit plans or 
    applications to the State educational agency under those programs 
    on a consolidated basis.
        ``(2) Availability to governor.--The State educational agency 
    shall make any consolidated local plans and applications available 
    to the Governor.
    ``(b) Required Consolidated Plans or Applications.--A State 
educational agency that has an approved consolidated State plan or 
application under section 9302 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 those programs, but may 
not require those agencies to submit separate plans.
    ``(c) Collaboration.--A State educational agency, in consultation 
with the Governor, 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. 9306. 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 9305, 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 those entities; and
        ``(B) the public agency, nonprofit private agency, institution, 
    or organization, or Indian tribe will administer the 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 the applicant under each such 
    program;
        ``(6) the applicant will--
            ``(A) submit such reports to the State educational agency 
        (which shall make the reports available to the Governor) and 
        the Secretary as the State educational agency and Secretary may 
        require to enable the State educational agency and the 
        Secretary to perform their duties under each such program; and
            ``(B) maintain such records, provide such information, and 
        afford such access to the records as the State educational 
        agency (after consultation with the Governor) or the Secretary 
        may reasonably require 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 considered such comment.
    ``(b) GEPA Provision.--Section 442 of the General Education 
Provisions Act shall not apply to programs under this Act.

                           ``PART D--WAIVERS

``SEC. 9401. 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 that desires a waiver shall 
    submit a waiver request to the Secretary that--
            ``(A) identifies the Federal programs affected by the 
        requested waiver;
            ``(B) describes which Federal statutory or regulatory 
        requirements are to be waived and how the waiving of those 
        requirements will--
                ``(i) increase the quality of instruction for students; 
            and
                ``(ii) improve the academic achievement of students;
            ``(C) describes, for each school year, specific, measurable 
        educational goals, in accordance with section 1111(b), for the 
        State educational agency and for each local educational agency, 
        Indian tribe, or school that would be affected by the waiver 
        and the methods to be used to measure annually /such progress 
        for meeting such goals and outcomes;
            ``(D) explains how the waiver will assist the State 
        educational agency and each affected local educational agency, 
        Indian tribe, or school in reaching those goals; and
            ``(E) 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 
            those agencies and schools) to State educational agencies; 
            and
                ``(II) by State educational agencies (on behalf of, and 
            based on the requests of, local educational agencies) to 
            the Secretary; or
                ``(ii) by Indian tribes (on behalf of schools operated 
            by the 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 on 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 in which 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) the request shall be reviewed by the State 
            educational agency and be accompanied by the comments, if 
            any, of the 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 in which that 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 B of title V;
        ``(9) the prohibitions regarding--
            ``(A) State aid in section 9522;
            ``(B) use of funds for religious worship or instruction in 
        section 9505; and
            ``(C) activities in section 9526; 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 or who attend the school is not more than 10 
    percentage points below the lowest percentage of those children for 
    any school attendance area or school of the local educational 
    agency that meets the requirements of subsections (a) and (b) of 
    section 1113.
    ``(d) Duration and Extension of Waiver.--
        ``(1) In general.--Except as provided in paragraph (2), a 
    waiver approved by the Secretary under this section may be for a 
    period not to exceed 4 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 recipient to carry out the activities for which the 
        waiver was requested and the waiver has contributed to improved 
        student achievement; and
          `(B) the 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 the waiver by the agency or by 
        schools;
            ``(B) describes how schools continued to provide assistance 
        to the same populations served by the programs for which 
        waivers were granted; and
            ``(C) evaluates the progress of the agency and of schools 
        in improving the quality of instruction or the academic 
        achievement 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 those 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 the waiver by schools operated 
        by the tribe; and
            ``(B) evaluates the progress of those schools in improving 
        the quality of instruction or the academic achievement of 
        students.
        ``(4) Report to congress.--Beginning in fiscal year 2002 and 
    for 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 the waivers--
                ``(i) increased the quality of instruction to students; 
            or
                ``(ii) improved the academic achievement of students.
    ``(f) Termination of Waivers.--The Secretary shall terminate a 
waiver under this section if the Secretary determines, after notice and 
an opportunity for a hearing, 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 the 
notice to State educational agencies, interested parties, including 
educators, parents, students, advocacy and civil rights organizations, 
and the public.

                      ``PART E--UNIFORM PROVISIONS

                      ``Subpart 1--Private Schools

``SEC. 9501. 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 areas 
    served by a State educational agency, local educational agency, 
    educational service agency, consortium of those agencies, or 
    another entity receiving financial assistance under a program 
    specified in subsection (b), who are enrolled in private elementary 
    schools and secondary schools in areas served by such agency, 
    consortium, or entity, the agency, consortium, or entity shall, 
    after timely and meaningful consultation with appropriate private 
    school officials provide to those children and their teachers or 
    other educational personnel, on an equitable basis, special 
    educational services or other benefits that address their needs 
    under the 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 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 the program and 
    shall be provided in a timely manner.
        ``(4) Expenditures.--Expenditures for educational services and 
    other benefits provided under this section for eligible private 
    school children, their teachers, and other educational personnel 
    serving those 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.--An agency, consortium, or entity 
    described in subsection (a)(1) of this section may provide those 
    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) subparts 1 and 3 of part B of title I;
            ``(B) part C of title I;
            ``(C) part A of title II, to the extent provided in 
        paragraph (3);
            ``(D) part B of title II;
            ``(E) part D of title II;
            ``(F) part A of title III;
            ``(G) part A of title IV; and
            ``(H) part B of title IV.
        ``(2) Definition.--For the purpose of this section, the term 
    `eligible children' means children eligible for services under a 
    program described in paragraph (1).
        ``(3) Application.--(A) Except as provided in subparagraph (B), 
    this subpart, including subsection (a)(4), applies to funds awarded 
    to a local educational agency under part A of title II only to the 
    extent that the local educational agency uses funds under that part 
    to provide professional development to teachers and others.
        ``(B) Subject to subparagraph (A), the share of the local 
    educational agency's subgrant under part A of title II that is used 
    for professional development and subject to a determination of 
    equitable expenditures under subsection (a)(4) shall not be less 
    than the aggregate share of that agency's awards that were used for 
    professional development for fiscal year 2001 under section 
    2203(1)(B) (as such section was in effect on the day preceding the 
    date of enactment of the No Child Left Behind Act of 2001) and 
    section 306 of the Department of Education Appropriations Act, 
    2001.
    ``(c) Consultation.--
        ``(1) In general.--To ensure timely and meaningful 
    consultation, a State educational agency, local educational agency, 
    educational service agency, consortium of those agencies, or entity 
    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, where, and by whom the services will be 
        provided;
            ``(D) how the services will be assessed and how the results 
        of the assessment will be used to improve those services;
            ``(E) the size and scope of the equitable services to be 
        provided to the eligible private school children, teachers, and 
        other educational personnel and the amount of funds available 
        for those services; and
            ``(F) how and when the agency, consortium, or entity will 
        make decisions about the delivery of services, including a 
        thorough consideration and analysis of the views of the private 
        school officials on the provision of contract services through 
        potential third-party providers.
        ``(2) Disagreement.--If the agency, consortium, or entity 
    disagrees with the views of the private school officials on the 
    provision of services through a contract, the agency, consortium, 
    or entity shall provide to the private school officials a written 
    explanation of the reasons why the local educational agency has 
    chosen not to use a contractor.
        ``(3) Timing.--The consultation required by paragraph (1) shall 
    occur before the agency, consortium, or entity makes any decision 
    that affects the opportunities of eligible private school children, 
    teachers, and other educational personnel to participate in 
    programs under this Act, and shall continue throughout the 
    implementation and assessment of activities under this section.
        ``(4) Discussion required.--The consultation required by 
    paragraph (1) shall include a discussion of service delivery 
    mechanisms that the agency, consortium, or entity 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 those funds, shall be in a public agency 
    for the uses and purposes provided in this Act, and a public agency 
    shall administer the funds and property.
        ``(2) Provision of services.--
            ``(A) In general.--The provision of services under this 
        section shall be provided--
                ``(i) by employees of a public agency; or
                ``(ii) through contract by the public agency with an 
            individual, association, agency, organization, or other 
            entity.
            ``(B) Independence; public agency.--In the provision of 
        those services, the employee, person, association, agency, 
        organization, or other entity shall be independent of the 
        private school and of any religious organization, and the 
        employment or contract shall be under the control and 
        supervision of the public agency.
            ``(C) Commingling of funds prohibited.--Funds used to 
        provide services under this section shall not be commingled 
        with non-Federal funds.

``SEC. 9502. STANDARDS FOR BY-PASS.

    ``(a) In General.--If, by reason of any provision of law, a State 
educational agency, local educational agency, educational service 
agency, consortium of those agencies, or other entity is prohibited 
from providing for the participation in programs of children enrolled 
in, or teachers or other educational personnel from, private elementary 
schools and secondary schools, on an equitable basis, or if the 
Secretary determines that the agency, consortium, or entity has 
substantially failed or is unwilling to provide for that participation, 
as required by section 9501, the Secretary shall--
        ``(1) waive the requirements of that section for the agency, 
    consortium, or entity; and
        ``(2) arrange for the provision of equitable services to those 
    children, teachers, or other educational personnel through 
    arrangements that shall be subject to the requirements of this 
    section and of sections 9501, 9503, and 9504.
    ``(b) Determination.--In making the determination under subsection 
(a), the Secretary shall consider one or more factors, including the 
quality, size, scope, and location of the program, and the opportunity 
of private school children, teachers, and other educational personnel 
to participate in the program.

``SEC. 9503. 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 9501 by a State 
educational agency, local educational agency, educational service 
agency, consortium of those agencies, or entity. The individual or 
organization shall submit the complaint to the State educational agency 
for a written resolution by the State educational agency within a 
reasonable period of time.
    ``(b) Appeals to Secretary.--The 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. The 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 the appeal not later than 120 
days after receipt of the appeal.

``SEC. 9504. BY-PASS DETERMINATION PROCESS.

    ``(a) Review.--
        ``(1) In general.--
            ``(A) Written objections.--The Secretary shall not take any 
        final action under section 9502 until the State educational 
        agency, local educational agency, educational service agency, 
        consortium of those agencies, or entity affected by the 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) Prior to reduction.--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 educational agency 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) Petition.--If the affected agency, consortium, or 
        entity is dissatisfied with the Secretary's final action after 
        a proceeding under paragraph (1), the agency, consortium, or 
        entity may, within 60 days after notice of that action, file 
        with the United States court of appeals for the circuit in 
        which the State is located a petition for review of that 
        action.
            ``(B) Transmission.--A copy of the petition shall be 
        forthwith transmitted by the clerk of the court to the 
        Secretary.
            ``(C) Filing.--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 the action, as 
        provided in section 2112 of title 28, United States Code.
        ``(3) Findings of fact.--
            ``(A) In general.--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) New or modified findings.--Any new or modified 
        findings of fact shall likewise be conclusive if supported by 
        substantial evidence.
        ``(4) Jurisdiction.--
            ``(A) In general.--Upon the filing of a petition, the court 
        shall have jurisdiction to affirm the action of the Secretary 
        or to set the action aside, in whole or in part.
            ``(B) Judgment.--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 that agency, consortium, or entity 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 the agency, consortium, or entity to meet 
the applicable requirements of section 9501 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 those 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 No Child Left Behind Act of 2001 shall remain in 
effect to the extent the Secretary determines that that determination 
is consistent with the purpose of this section.

``SEC. 9505. 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. 9506. PRIVATE, RELIGIOUS, AND HOME SCHOOLS.

    ``(a) Applicability to Nonrecipient Private Schools.--Nothing in 
this Act shall be construed to affect any private school that does not 
receive funds or services under this Act, nor shall any student who 
attends a private school that does not receive funds or services under 
this Act be required to participate in any assessment referenced in 
this Act.
    ``(b) Applicability to Home Schools.--Nothing in this Act shall be 
construed to affect a home school, whether or not a home school is 
treated as a home school or a private school under State law, nor shall 
any student schooled at home be required to participate in any 
assessment referenced in this Act.
    ``(c) Rule of Construction on Prohibition of Federal Control Over 
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.
    ``(d) Rule of Construction on State and Local Educational Agency 
Mandates.--Nothing in this Act shall be construed to require any State 
educational agency or local educational agency that receives funds 
under this Act to mandate, direct, or control the curriculum of a 
private or home school, regardless or whether or not a home school is 
treated as a private school under state law, nor shall any funds under 
this Act be used for this purpose.

                     ``Subpart 2--Other Provisions

``SEC. 9521. 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 the agency and the State with 
respect to the provision of free public education by the agency for the 
preceding fiscal year was not less than 90 percent of the 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 by which a local 
    educational agency fails to meet the requirement of subsection (a) 
    of this section by falling below 90 percent of both the combined 
    fiscal effort per student and aggregate expenditures (using the 
    measure most favorable to the local agency).
        ``(2) Special rule.--No such lesser amount shall be used for 
    computing the effort required under subsection (a) of this section 
    for subsequent years.
    ``(c) Waiver.--The Secretary may waive the requirements of this 
section if the Secretary determines that 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. 9522. 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 that State for State aid, or the amount of 
State aid, with respect to free public education of children.

``SEC. 9523. PRIVACY OF ASSESSMENT RESULTS.

    ``Any results from an individual assessment referred to in this Act 
of a student that become part of the education records of the student 
shall have the protections provided in section 444 of the General 
Education Provisions Act.

``SEC. 9524. SCHOOL PRAYER.

    ``(a) Guidance.--The Secretary shall provide and revise guidance, 
not later than September 1, 2002, and of every second year thereafter, 
to State educational agencies, local educational agencies, and the 
public on constitutionally protected prayer in public elementary 
schools and secondary schools, including making the guidance available 
on the Internet. The guidance shall be reviewed, prior to distribution, 
by the Office of Legal Counsel of the Department of Justice for 
verification that the guidance represents the current state of the law 
concerning constitutionally protected prayer in public elementary 
schools and secondary schools.
    ``(b) Certification.--As a condition of receiving funds under this 
Act, a local educational agency shall certify in writing to the State 
educational agency involved that no policy of the local educational 
agency prevents, or otherwise denies participation in, constitutionally 
protected prayer in public elementary schools and secondary schools, as 
detailed in the guidance required under subsection (a). The 
certification shall be provided by October 1 of each year. The State 
educational agency shall report to the Secretary by November 1 of each 
year a list of those local educational agencies that have not filed the 
certification or against which complaints have been made to the State 
educational agency that the local educational agencies are not in 
compliance with this section.
    ``(c) Enforcement.--The Secretary is authorized and directed to 
effectuate subsection (b) by issuing, and securing compliance with, 
rules or orders with respect to a local educational agency that fails 
to certify, or is found to have certified in bad faith, that no policy 
of the local educational agency prevents, or otherwise denies 
participation in, constitutionally protected prayer in public 
elementary schools and secondary schools.

``SEC. 9525. EQUAL ACCESS TO PUBLIC SCHOOL FACILITIES.

    ``(a) Short Title.--This section may be cited as the `Boy Scouts of 
America Equal Access Act'.
    ``(b) In General.--
        ``(1) Equal access.--Notwithstanding any other provision of 
    law, no public elementary school, public secondary school, local 
    educational agency, or State educational agency that has a 
    designated open forum or a limited public forum and that receives 
    funds made available through the Department shall deny equal access 
    or a fair opportunity to meet to, or discriminate against, any 
    group officially 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 or limited public forum, including denying 
    such access or opportunity or discriminating for reasons based on 
    the membership or leadership criteria or oath of allegiance to God 
    and country of the Boy Scouts of America or of the youth group 
    listed in title 36 of the United States Code (as a patriotic 
    society).
        ``(2) Voluntary sponsorship.--Nothing in this section shall be 
    construed to require any school, agency, or a school served by an 
    agency to sponsor any group officially 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).
    ``(c) Termination of Assistance and Other Action.--
        ``(1) Departmental action.--The Secretary is authorized and 
    directed to effectuate subsection (b) by issuing and securing 
    compliance with rules or orders with respect to a public elementary 
    school, public secondary school, local educational agency, or State 
    educational agency that receives funds made available through the 
    Department and that denies equal access, or a fair opportunity to 
    meet, or discriminates, as described in subsection (b).
        ``(2) Procedure.--The Secretary shall issue and secure 
    compliance with the rules or orders, under paragraph (1), through 
    the Office for Civil Rights and in a manner consistent with the 
    procedure used by a Federal department or agency under section 602 
    of the Civil Rights Act of 1964. If the public school or agency 
    does not comply with the rules or orders, then notwithstanding any 
    other provision of law, no funds made available through the 
    Department shall be provided to a school that fails to comply with 
    such rules or orders or to any agency or school served by an agency 
    that fails to comply with such rules or orders.
        ``(3) Judicial review.--Any action taken by the Secretary under 
    paragraph (1) shall be subject to the judicial review described in 
    section 603 of the Civil Rights Act of 1964. Any person aggrieved 
    by the action may obtain that judicial review in the manner, and to 
    the extent, provided in section 603 of such Act.
    ``(d) Definition and Rule.--
        ``(1) Definition.--In this section, the term `youth group' 
    means any group or organization intended to serve young people 
    under the age of 21.
        ``(2) Rule.--For the purpose of this section, an elementary 
    school or secondary school has a limited public forum whenever the 
    school involved grants an offering to, or opportunity for, one or 
    more outside 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. 9526. 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 that instruction is age appropriate and includes the 
    health benefits of abstinence; or
        ``(4) to operate a program of contraceptive 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 school's 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. 9527. PROHIBITIONS ON FEDERAL GOVERNMENT AND USE OF FEDERAL 
              FUNDS.

    ``(a) General Prohibition.--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.
    ``(b) Prohibition on Endorsement of Curriculum.--Notwithstanding 
any other prohibition of Federal law, no funds provided to the 
Department under this Act may be used by the Department to endorse, 
approve, or sanction any curriculum designed to be used in an 
elementary school or secondary school.
    ``(c) Prohibition on Requiring Federal Approval or Certification of 
Standards.--
        ``(1) In general.--Notwithstanding any other provision of 
    Federal law, no State shall be required to have academic content or 
    student academic achievement standards approved or certified by the 
    Federal Government, in order to receive assistance under this Act.
        ``(2) Rule of construction.--Nothing in this subsection shall 
    be construed to affect requirements under title I or part A of 
    title VI.
    ``(d) Rule of Construction on Building Standards.--Nothing in this 
Act shall be construed to mandate national school building standards 
for a State, local educational agency, or school.

``SEC. 9528. ARMED FORCES RECRUITER ACCESS TO STUDENTS AND STUDENT 
              RECRUITING INFORMATION.

    ``(a) Policy.--
        ``(1) Access to student recruiting information.--
    Notwithstanding section 444(a)(5)(B) of the General Education 
    Provisions Act and except as provided in paragraph (2), each local 
    educational agency receiving assistance under this Act shall 
    provide, on a request made by military recruiters or an institution 
    of higher education, access to secondary school students names, 
    addresses, and telephone listings.
        ``(2) Consent.--A secondary school student or the parent of the 
    student may request that the student's name, address, and telephone 
    listing described in paragraph (1) not be released without prior 
    written parental consent, and the local educational agency or 
    private school shall notify parents of the option to make a request 
    and shall comply with any request.
        ``(3) Same access to students.--Each local educational agency 
    receiving assistance under this Act shall provide military 
    recruiters the same access to secondary school students as is 
    provided generally to post secondary educational institutions or to 
    prospective employers of those students.
    ``(b) Notification.--The Secretary, in consultation with the 
Secretary of Defense, shall, not later than 120 days after the date of 
enactment of the No Child Left Behind Act of 2001, notify principals, 
school administrators, and other educators about the requirements of 
this section.
    ``(c) Exception.--The requirements of this section do not apply to 
a private secondary school that maintains a religious objection to 
service in the Armed Forces if the objection is verifiable through the 
corporate or other organizational documents or materials of that 
school.
    ``(d) Special Rule.--A local educational agency prohibited by 
Connecticut State law (either explicitly by statute or through 
statutory interpretation by the State Supreme Court or State Attorney 
General) from providing military recruiters with information or access 
as required by this section shall have until May 31, 2002, to comply 
with that requirement.

``SEC. 9529. PROHIBITION ON FEDERALLY SPONSORED TESTING.

    ``(a) General Prohibition.--Notwithstanding any other provision of 
Federal law and except as provided in subsection (b), no funds provided 
under this Act to the Secretary or to the recipient of any award may be 
used to develop, pilot test, field test, implement, administer, or 
distribute any federally sponsored national test in reading, 
mathematics, or any other subject, unless specifically and explicitly 
authorized by law.
    ``(b) Exceptions.--Subsection (a) shall not apply to international 
comparative assessments developed under the authority of section 
404(a)(6) of the National Education Statistics Act of 1994 and 
administered to only a representative sample of pupils in the United 
States and in foreign nations.

``SEC. 9530. LIMITATIONS ON NATIONAL TESTING OR CERTIFICATION FOR 
              TEACHERS.

    ``(a) 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.
    ``(b) Prohibition on Withholding Funds.--The Secretary is 
prohibited from withholding funds from any State educational agency or 
local educational agency if the State educational agency or local 
educational agency fails to adopt a specific method of teacher or 
paraprofessional certification.

``SEC. 9531. PROHIBITION ON NATIONWIDE DATABASE.

    ``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. 9532. UNSAFE SCHOOL CHOICE OPTION.

    ``(a) Unsafe School Choice Policy.--Each State receiving funds 
under this Act shall establish and implement a statewide policy 
requiring that a student attending a persistently dangerous public 
elementary school or secondary school, as determined by the State in 
consultation with a representative sample of local educational 
agencies, or who becomes a victim of a violent criminal offense, as 
determined by State law, while in or on the grounds of a public 
elementary school or secondary school that the student attends, be 
allowed to attend a safe public elementary school or secondary school 
within the local educational agency, including a public charter school.
    ``(b) Certification.--As a condition of receiving funds under this 
Act, a State shall certify in writing to the Secretary that the State 
is in compliance with this section.

``SEC. 9533. PROHIBITION ON DISCRIMINATION.

    ``Nothing in this Act shall be construed to require, authorize, or 
permit, the Secretary, or a State educational agency, 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.

``SEC. 9534. CIVIL RIGHTS.

    ``(a) In General.--Nothing in this Act shall be construed to permit 
discrimination on the basis of race, color, religion, sex (except as 
otherwise permitted under title IX of the Education Amendments of 
1972), national origin, or disability in any program funded under this 
Act.
    ``(b) Rule of Construction.--Nothing in this Act shall be construed 
to require the disruption of services to a child or the displacement of 
a child enrolled in or participating in a program administered by an 
eligible entity, as defined in section 1116 of title I and part B of 
title V, at the commencement of the entity's participation in a grant 
under section 1116 of title I or part B of title V.

``SEC. 9535. RULEMAKING.

    ``The Secretary shall issue regulations under this Act only to the 
extent that such regulations are necessary to ensure that there is 
compliance with the specific requirements and assurances required by 
this Act.

``SEC. 9536. SEVERABILITY.

    ``If any provision of this Act is held invalid, the remainder of 
this Act shall be unaffected thereby.

                         ``PART F--EVALUATIONS

``SEC. 9601. EVALUATIONS.

    ``(a) Reservation of Funds.--Except as provided in subsections (b) 
and (c), the Secretary may reserve not more than 0.5 percent of the 
amount appropriated to carry out each categorical program and 
demonstration project authorized under this Act--
        ``(1) to conduct--
            ``(A) comprehensive evaluations of the program or project; 
        and
            ``(B) studies of the effectiveness of the program or 
        project and its administrative impact on schools and local 
        educational agencies;
        ``(2) to evaluate the aggregate short- and long-term effects 
    and cost efficiencies across Federal programs assisted or 
    authorized under this Act and related Federal preschool, 
    elementary, and secondary programs under any other Federal law; and
        ``(3) to increase the usefulness of evaluations of grant 
    recipients in order to ensure the continuous progress of the 
    program or project by improving the quality, timeliness, 
    efficiency, and use of information relating to performance under 
    the program or project.
    ``(b) Titles I and III Excluded.--The Secretary may not reserve 
under subsection (a) funds appropriated to carry out any program 
authorized under title I or title III.
    ``(c) Evaluation Activities Authorized Elsewhere.--If, under any 
other provision of this Act (other than title I), funds are authorized 
to be reserved or used for evaluation activities with respect to a 
program or project, the Secretary may not reserve additional funds 
under this section for the evaluation of that program or project.''.

   TITLE X--REPEALS, REDESIGNATIONS, AND AMENDMENTS TO OTHER STATUTES

                            PART A--REPEALS

SEC. 1011. REPEALS.

    The following provisions of law are repealed:
        (1) Part G of title XV of the Higher Education Amendments of 
    1992 (20 U.S.C. 1070a-11 note), relating to the Advanced Placement 
    fee payment program.
        (2) Part B of title VIII of the Higher Education Amendments of 
    1998 (20 U.S.C. 1070a-11 note), relating to the Advanced Placement 
    incentive program.
        (3) Part F of the General Education Provisions Act (20 U.S.C. 
    1235 et seq.), relating to Ready to Learn Television.
        (4) The following provisions of the Goals 2000: Educate America 
    Act (20 U.S.C. 5801 et seq.):
            (A) Parts A and C of title II (20 U.S.C. 5821 et seq., 
        5871), relating to the National Education Goals Panel.
            (B) Title VI (20 U.S.C. 5951), relating to the 
        International Education Program.
        (5) The following provisions of the Elementary and Secondary 
    Education Act of 1965 (20 U.S.C. 6301 et seq.):
            (A) Titles X through XII (20 U.S.C. 8001 et seq.).
            (B) Sections 13001 and 13002 (20 U.S.C. 8601, 8602).
            (C) Title XIV (20 U.S.C. 8801 et seq.).
        (6) The Troops-to-Teachers Program Act of 1999 (20 U.S.C. 9301 
    et seq.).

SEC. 1012. CONFORMING CLERICAL AND TECHNICAL AMENDMENTS.

    The table of contents in section 1(b) of the Goals 2000: Educate 
America Act (20 U.S.C. 5801 note) is amended by striking the items 
relating to the following provisions:
        (1) Parts A and C of title II (including the items relating to 
    sections within those parts).
        (2) Sections 231, 232, 234, and 235.
        (3) Titles III through VI (including the items relating to 
    sections within those titles).

                         PART B--REDESIGNATIONS

SEC. 1021. COMPREHENSIVE REGIONAL ASSISTANCE CENTERS.

    (a) In General.--Part A of title XIII of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8621 et seq.) is transferred 
to and redesignated as part K of the Educational Research, Development, 
Dissemination, and Improvement Act of 1994.
    (b) Sections.--Sections 13101 through 13105 of such part are 
redesignated as sections 1001 through 1005, respectively.
    (c) Defined Terms.--Part K of the Educational Research, 
Development, Dissemination, and Improvement Act of 1994 (as transferred 
and redesignated by this section) is amended by adding at the end the 
following new section:

``SEC. 1006. DEFINED TERMS.

    ``In this part, the definitions of terms defined in section 9101 of 
the Elementary and Secondary Education Act of 1965 shall apply.''.

SEC. 1022. NATIONAL DIFFUSION NETWORK.

    (a) In General.--Part B of title XIII of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8651 et seq.) is transferred 
to and redesignated as part L of the Educational Research, Development, 
Dissemination, and Improvement Act of 1994.
    (b) Sections.--Sections 13201 and 13102 of such part are 
redesignated as sections 1011 and 1012, respectively.
    (c) Defined Terms.--Part L of the Educational Research, 
Development, Dissemination, and Improvement Act of 1994 (as transferred 
and redesignated by this section) is amended by adding at the end the 
following new section:

``SEC. 1013. DEFINED TERMS.

    ``In this part, the definitions of terms defined in section 9101 of 
the Elementary and Secondary Education Act of 1965 shall apply.''.

SEC. 1023. EISENHOWER REGIONAL MATHEMATICS AND SCIENCE EDUCATION 
              CONSORTIA.

    (a) In General.--Part C of title XIII of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8671 et seq.) is transferred 
to and redesignated as part M of the Educational Research, Development, 
Dissemination, and Improvement Act of 1994.
    (b) Sections.--Sections 13301 through 13108 of such part are 
redesignated as sections 1021 through 1028, respectively.
    (c) Defined Terms.--Part M of the Educational Research, 
Development, Dissemination, and Improvement Act of 1994 (as transferred 
and redesignated by this section) is amended by adding at the end the 
following new section:

``SEC. 1029. DEFINED TERMS.

    ``In this part, the definitions of terms defined in section 9101 of 
the Elementary and Secondary Education Act of 1965 shall apply.''.

SEC. 1024. TECHNOLOGY-BASED TECHNICAL ASSISTANCE.

    (a) In General.--Part D of title XIII of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 8701) is transferred to and 
redesignated as part N of the Educational Research, Development, 
Dissemination, and Improvement Act of 1994.
    (b) Sections.--Section 13401 of such part is redesignated as 
section 1031.
    (c) Defined Terms.--Part N of the Educational Research, 
Development, Dissemination, and Improvement Act of 1994 (as transferred 
and redesignated by this section) is amended by adding at the end the 
following new section:

``SEC. 1032. DEFINED TERMS.

    ``In this part, the definitions of terms defined in section 9101 of 
the Elementary and Secondary Education Act of 1965 shall apply.''.

SEC. 1025. CONFORMING AMENDMENTS.

    (a) Parts K Through M.--Parts K through M of the Educational 
Research, Development, Dissemination, and Improvement Act of 1994 (as 
transferred and redesignated by sections 1021 through 1024 of this Act) 
are amended as follows:
        (1) Insert ``of such Act'' in--
            (A) section 1002(a)(1)(A), after ``title I''; and
            (B) section 1002(a)(1)(B), after ``section 1114''.
        (2) Insert ``of the Elementary and Secondary Education Act of 
    1965 (as such Act was in effect on the day before the date of 
    enactment of the No Child Left Behind Act of 2001)'' in--
            (A) sections 1001(a)(2)(A) and 1011(e)(1), after ``title 
        I'';
            (B) sections 1002(b)(1) and section 1011(g)(3)(A), after 
        ``section 1114''; and
            (C) in section 1011(e)(3), after ``title III''.
        (3) In section 1011(a)(1), strike ``(hereafter referred to in 
    this Act as `NDN')''.
        (4) In subsections (c) and (g)(1) of section 1011 and in 
    section 1027(1)(E), strike ``of the Educational Research, 
    Development, Dissemination, and Improvement Act of 1994''.
        (5) In subsections (a)(2)(A) and (d) of section 1011, strike 
    ``part A'' and insert ``part K''.
        (6) In sections 1002(a)(4) and 1011(e)(3), strike ``part C'' 
    and insert ``part M''.
        (7) In section 1002(a), strike ``section 13101(a)'' and insert 
    ``section 1001(a)''.
        (8) In section 1003(b)(1), strike ``section 13102'' and insert 
    ``section 1002''.
        (9) In section 1004(b)(1), strike ``section 13105'' and insert 
    ``section 1005''.
        (10) In sections 1002(a)(7) and 1003(b)(2), strike ``section 
    13201'' and insert ``section 1011''.
        (11) In section 1022(2) and (3), strike ``section 13301(a)(1)'' 
    and insert ``section 1021(a)(1)''.
        (12) In section 1027(4), strike ``section 13301'' and insert 
    ``section 1021''.
        (13) In subsections (a) and (b) of section 1025, strike 
    ``section 13303'' and insert ``section 1023''.
        (14) In the text preceding paragraph (1) of section 1022, 
    strike ``section 13304'' and insert ``section 1024''.
        (15) In section 1021(a)(3), strike ``section 13308'' and insert 
    ``section 1028''.
        (16) In sections 1003(b)(2) and 1011(f)(4), strike ``section 
    13401'' and insert ``section 1031''.
        (17) Strike ``this Act'' and insert ``the Elementary and 
    Secondary Education Act of 1965 (as such Act was in effect on the 
    day before the date of enactment of the No Child Left Behind Act of 
    2001)'' in--
            (A) section 1001(a)(1) (the first occurrence only);
            (B) paragraphs (1) through (3) of section 1001(c);
            (C) paragraphs (1), (2), (6), and (8) of section 1002(a);
            (D) section 1011(e); and
            (E) section 1031(2).
        (18) In paragraphs (1) and (2) of section 1004(b), strike 
    ``this Act'' and insert ``the Elementary and Secondary Education 
    Act of 1965''.
        (19) In section 1001(a)(1) (the second occurrence only) and in 
    section 1002(a)(1)(C), strike ``this Act'' and insert ``such Act''.
        (20) Section 1011 is amended--
            (A) in subsection (a)(1), by striking ``In order to 
        implement the purposes of this title, the'' and inserting 
        ``The''; and
            (B) in subsection (f)(5), by striking ``to achieve the 
        purposes of this title''.
        (21) In section 1022(1), strike ``, the Eisenhower National 
    Clearinghouse for Science and Mathematics Education established 
    under section 2102(b)''.
        (22) In section 1026(a), strike ``section 14701'' and insert 
    ``section 9601''.
    (b) Title XIII Heading.--The Elementary and Secondary Education Act 
of 1965 is amended by striking the heading of title XIII.

                       PART C--HOMELESS EDUCATION

SEC. 1031. SHORT TITLE.

    This part may be cited as the ``McKinney-Vento Homeless Education 
Assistance Improvements Act of 2001''.

SEC. 1032. EDUCATION FOR HOMELESS CHILDREN AND YOUTHS.

    Subtitle B of title VII of the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11431 et seq.) is amended to read as follows:

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

``SEC. 721. STATEMENT OF POLICY.

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

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

    ``(a) General Authority.--The Secretary is authorized to make 
grants to States in accordance with the provisions of this section to 
enable such States to carry out the activities described in subsections 
(d) through (g).
    ``(b) Application.--No State may receive a grant under this section 
unless the State educational agency submits an application to the 
Secretary at such time, in such manner, and containing or accompanied 
by such information as the Secretary may reasonably require.
    ``(c) Allocation and Reservations.--
        ``(1) Allocation.--(A) Subject to subparagraph (B), the 
    Secretary is authorized to allot to each State an amount that bears 
    the same ratio to the amount appropriated for such year under 
    section 726 that remains after the Secretary reserves funds under 
    paragraph (2) and uses funds to carry out section 724(d) and (h), 
    as the amount allocated under section 1122 of the Elementary and 
    Secondary Education Act of 1965 to the State for that year bears to 
    the total amount allocated under section 1122 of such Act to all 
    States for that year, except that no State shall receive less than 
    the greater of--
            ``(i) $150,000;
            ``(ii) one-fourth of 1 percent of the amount appropriated 
        under section 726 for that year; or
            ``(iii) the amount such State received under this section 
        for fiscal year 2001.
        ``(B) If there are insufficient funds in a fiscal year to allot 
    to each State the minimum amount under subparagraph (A), the 
    Secretary shall ratably reduce the allotments to all States based 
    on the proportionate share that each State received under this 
    subsection for the preceding fiscal year.
        ``(2) Reservations.--(A) The Secretary is authorized to reserve 
    0.1 percent of the amount appropriated for each fiscal year under 
    section 726 to be allocated by the Secretary among the United 
    States Virgin Islands, Guam, American Samoa, and the Commonwealth 
    of the Northern Mariana Islands, according to their respective need 
    for assistance under this subtitle, as determined by the Secretary.
        ``(B)(i) The Secretary shall transfer 1 percent of the amount 
    appropriated for each fiscal year under section 726 to the 
    Department of the Interior for programs for Indian students served 
    by schools funded by the Secretary of the Interior, as determined 
    under the Indian Self-Determination and Education Assistance Act 
    (25 U.S.C. 450 et seq.), that are consistent with the purposes of 
    the programs described in this subtitle.
        ``(ii) The Secretary and the Secretary of the Interior shall 
    enter into an agreement, consistent with the requirements of this 
    subtitle, for the distribution and use of the funds described in 
    clause (i) under terms that the Secretary determines best meet the 
    purposes of the programs described in this subtitle. Such agreement 
    shall set forth the plans of the Secretary of the Interior for the 
    use of the amounts transferred, including appropriate goals, 
    objectives, and milestones.
        ``(3) State defined.--For purposes of this subsection, the term 
    `State' does not include the United States Virgin Islands, Guam, 
    American Samoa, or the Commonwealth of the Northern Mariana 
    Islands.
    ``(d) Activities.--Grants under this section shall be used for the 
following:
        ``(1) To carry out the policies set forth in section 721 in the 
    State.
        ``(2) To provide activities for, and services to, homeless 
    children, including preschool-aged homeless children, and youths 
    that enable such children and youths to enroll in, attend, and 
    succeed in school, or, if appropriate, in preschool programs.
        ``(3) To establish or designate an Office of Coordinator for 
    Education of Homeless Children and Youths in the State educational 
    agency in accordance with subsection (f).
        ``(4) To prepare and carry out the State plan described in 
    subsection (g).
        ``(5) To develop and implement professional development 
    programs for school personnel to heighten their awareness of, and 
    capacity to respond to, specific problems in the education of 
    homeless children and youths.
    ``(e) State and Local Subgrants.--
        ``(1) Minimum disbursements by states.--From the sums made 
    available each year to carry out this subtitle, the State 
    educational agency shall distribute not less than 75 percent in 
    subgrants to local educational agencies for the purposes of 
    carrying out section 723, except that States funded at the minimum 
    level set forth in subsection (c)(1) shall distribute not less than 
    50 percent in subgrants to local educational agencies for the 
    purposes of carrying out section 723.
        ``(2) Use by state educational agency.--A State educational 
    agency may use funds made available for State use under this 
    subtitle to conduct activities under subsection (f) directly or 
    through grants or contracts.
        ``(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 
        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)(J)(i) and (3) of subsection (g), section 
        723(a)(2), and any other provision of this subtitle relating to 
        the placement of homeless children or youths in schools, a 
        State that has a separate school for homeless children or 
        youths 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 youths 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 
        under subparagraph (B) to receive funds under this subtitle, 
        the school described in such subparagraph 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) sets forth the general rights provided under 
                this subtitle;
                    ``(III) specifically states--

                        ``(aa) the choice of schools homeless children 
                    and youths 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 youths;
                        ``(cc) that homeless children and youths shall 
                    be provided comparable services described in 
                    subsection (g)(4), including transportation 
                    services, educational services, and meals through 
                    school meals programs; and
                        ``(dd) that homeless children and youths should 
                    not be stigmatized by school personnel; and

                    ``(IV) provides contact information for the local 
                liaison for homeless children and youths and the State 
                Coordinator for Education of Homeless Children and 
                Youths;

                ``(ii)(I) 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
                ``(II) 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, in the 
            case of an unaccompanied youth, the 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)(ii) shall--
                ``(i) implement a coordinated system for ensuring that 
            homeless children and youths--

                    ``(I) are advised of the choice of schools provided 
                in subsection (g)(3)(A);
                    ``(II) are immediately enrolled, in accordance with 
                subsection (g)(3)(C), in the school selected under 
                subsection (g)(3)(A); and
                    ``(III) are promptly provided necessary services 
                described in subsection (g)(4), including 
                transportation, to allow homeless children and youths 
                to exercise their choices of schools under subsection 
                (g)(3)(A);

                ``(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 under 
                subparagraph (B); and
                    ``(II) in accordance with subsection (g)(6)(A)(v);

                ``(iii) prohibit schools within the agency's 
            jurisdiction from referring homeless children or youths to, 
            or requiring homeless children and youths 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 youths; or
                    ``(II) new or additional sites for separate schools 
                for homeless children or youths, other than the sites 
                occupied by the schools described in subparagraph (B) 
                in fiscal year 2000.

            ``(F) Report.--
                ``(i) Preparation.--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. The 
            report shall contain, at a minimum, information on--

                    ``(I) compliance with all requirements of this 
                paragraph;
                    ``(II) barriers to school access in the school 
                districts served by the local educational agencies; and
                    ``(III) the progress the separate schools are 
                making in integrating homeless children and youths 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 Coordinator for 
            Education of Homeless Children and Youths established in 
            the State under subsection (d)(3), and shall comply with 
            any requests for information by the Secretary and State 
            Coordinator for such State.
                ``(iii) Submission.--Not later than 2 years after the 
            date of enactment of the McKinney-Vento Homeless Education 
            Assistance Improvements Act of 2001, 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.--For purposes of this paragraph, the term 
        `covered county' means--
                ``(i) San Joaquin County, California;
                ``(ii) Orange County, California;
                ``(iii) San Diego County, California; and
                ``(iv) Maricopa County, Arizona.
    ``(f) Functions of the Office of Coordinator.--The Coordinator for 
Education of Homeless Children and Youths established in each State 
shall--
        ``(1) gather reliable, valid, and comprehensive information on 
    the nature and extent of the problems homeless children and youths 
    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 youths, 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 programs under this subtitle in allowing 
    homeless children and youths 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, a report containing 
    such information as the Secretary determines is necessary to assess 
    the educational needs of homeless children and youths within the 
    State;
        ``(4) facilitate coordination between the State educational 
    agency, the State social services agency, and other agencies 
    (including agencies providing mental health services) to provide 
    services to homeless children, including preschool-aged homeless 
    children, and youths, and to families of such children and youths;
        ``(5) in order to improve the provision of comprehensive 
    education and related services to homeless children and youths 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 youths and homeless families (including domestic 
        violence agencies, shelter operators, transitional housing 
        facilities, runaway and homeless youth centers, and 
        transitional living programs for homeless youths);
            ``(C) local educational agency liaisons designated under 
        subsection (g)(1)(J)(ii) for homeless children and youths; and
            ``(D) community organizations and groups representing 
        homeless children and youths and their families; and
        ``(6) provide technical assistance to local educational 
    agencies in coordination with local educational agency liaisons 
    designated under subsection (g)(1)(J)(ii), to ensure that local 
    educational agencies comply with the requirements of section 
    722(e)(3) and paragraphs (3) through (7) of subsection (g).
    ``(g) State Plan.--
        ``(1) In general.--Each State shall submit to the Secretary a 
    plan to provide for the education of homeless children and youths 
    within the State. Such plan shall include the following:
            ``(A) A description of how such children and youths are (or 
        will be) given the opportunity to meet the same challenging 
        State academic achievement standards all students are expected 
        to meet.
            ``(B) A description of the procedures the State educational 
        agency will use to identify such children and youths in the 
        State and to assess their special needs.
            ``(C) A description of procedures for the prompt resolution 
        of disputes regarding the educational placement of homeless 
        children and youths.
            ``(D) A description of programs for school personnel 
        (including principals, attendance officers, teachers, 
        enrollment personnel, and pupil services personnel) to heighten 
        the awareness of such personnel of the specific needs of 
        runaway and homeless youths.
            ``(E) A description of procedures that ensure that homeless 
        children and youths who meet the relevant eligibility criteria 
        are able to participate in Federal, State, or local food 
        programs.
            ``(F) A description of procedures that ensure that--
                ``(i) homeless children have equal access to the same 
            public preschool programs, administered by the State 
            agency, as provided to other children in the State;
                ``(ii) homeless youths and youths separated from the 
            public schools are identified and accorded equal access to 
            appropriate secondary education and support services; and
                ``(iii) homeless children and youths who meet the 
            relevant eligibility criteria are able to participate in 
            Federal, State, or local before- and after-school care 
            programs.
            ``(G) Strategies to address problems identified in the 
        report provided to the Secretary under subsection (f)(3).
            ``(H) Strategies to address other problems with respect to 
        the education of homeless children and youths, including 
        problems resulting from enrollment delays that are caused by--
                ``(i) immunization and medical records requirements;
                ``(ii) residency requirements;
                ``(iii) lack of birth certificates, school records, or 
            other documentation;
                ``(iv) guardianship issues; or
                ``(v) uniform or dress code requirements.
            ``(I) A demonstration that the State educational agency and 
        local educational agencies in the State have developed, and 
        shall review and revise, policies to remove barriers to the 
        enrollment and retention of homeless children and youths in 
        schools in the State.
            ``(J) 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 youths are 
            not stigmatized or segregated on the basis of their status 
            as homeless;
                ``(ii) local educational agencies will designate an 
            appropriate staff person, who may also be a coordinator for 
            other Federal programs, as a local educational agency 
            liaison for homeless children and youths, to carry out the 
            duties described in paragraph (6)(A); and
                ``(iii) the State and its local educational agencies 
            will adopt policies and practices to ensure that 
            transportation is provided, at the request of the parent or 
            guardian (or in the case of an unaccompanied youth, the 
            liaison), to and from the school of origin, as determined 
            in paragraph (3)(A), in accordance with the following, as 
            applicable:

                    ``(I) If the homeless child or youth continues to 
                live in the area served by the local educational agency 
                in which the school of origin is located, the child's 
                or youth's transportation to and from the school of 
                origin shall be provided or arranged by the local 
                educational agency in which the school of origin is 
                located.
                    ``(II) If the homeless child's or youth's living 
                arrangements in the area served by the local 
                educational agency of origin terminate and the child or 
                youth, though continuing his or her education in the 
                school of origin, begins living in an area served by 
                another local educational agency, the local educational 
                agency of origin and the local educational agency in 
                which the homeless child or youth is living shall agree 
                upon a method to apportion the responsibility and costs 
                for providing the child with transportation to and from 
                the school of origin. If the local educational agencies 
                are unable to agree upon such method, the 
                responsibility and costs for transportation shall be 
                shared equally.

        ``(2) Compliance.--
            ``(A) In general.--Each plan adopted under this subsection 
        shall also describe how the State will ensure that local 
        educational agencies in the State will comply with the 
        requirements of paragraphs (3) through (7).
            ``(B) Coordination.--Such plan shall indicate what 
        technical assistance the State will furnish to local 
        educational agencies and how compliance efforts will be 
        coordinated with the local educational agency liaisons 
        designated under paragraph (1)(J)(ii).
        ``(3) Local educational agency requirements.--
            ``(A) In general.--The local educational agency serving 
        each child or youth to be 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 for the duration of homelessness--

                    ``(I) in any case in which a family becomes 
                homeless between academic years or during an academic 
                year; or
                    ``(II) for the remainder of the academic year, if 
                the child or youth becomes permanently housed during an 
                academic year; or

                ``(ii) enroll the child or youth in any public school 
            that nonhomeless students who live in the attendance area 
            in which the child or youth is actually living are eligible 
            to attend.
            ``(B) 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;
                ``(ii) provide a written explanation, including a 
            statement regarding the right to appeal under subparagraph 
            (E), to the homeless child's or youth's parent or guardian, 
            if 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; and
                ``(iii) in the case of an unaccompanied youth, ensure 
            that the homeless liaison designated under paragraph 
            (1)(J)(ii) assists in placement or enrollment decisions 
            under this subparagraph, considers the views of such 
            unaccompanied youth, and provides notice to such youth of 
            the right to appeal under subparagraph (E).
            ``(C) Enrollment.--(i) 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) The enrolling school shall immediately contact the 
        school last attended by the child or youth to obtain relevant 
        academic and other records.
            ``(iii) If the child or youth needs to obtain 
        immunizations, or immunization or medical records, the 
        enrolling school shall immediately refer the parent or guardian 
        of the child or youth to the local educational agency liaison 
        designated under paragraph (1)(J)(ii), who shall assist in 
        obtaining necessary immunizations, or immunization or medical 
        records, in accordance with subparagraph (D).
            ``(D) Records.--Any record ordinarily kept by the school, 
        including immunization or medical records, academic records, 
        birth certificates, guardianship records, and evaluations for 
        special services or programs, regarding each homeless child or 
        youth shall be maintained--
                ``(i) so that the records are available, in a timely 
            fashion, when a child or youth enters a new school or 
            school district; and
                ``(ii) in a manner consistent with section 444 of the 
            General Education Provisions Act (20 U.S.C. 1232g).
            ``(E) Enrollment disputes.--If a dispute arises over school 
        selection or enrollment in a school--
                ``(i) the child or youth shall be immediately admitted 
            to the school in which enrollment is sought, pending 
            resolution of the dispute;
                ``(ii) the parent or guardian of the child or youth 
            shall be provided with a written explanation of the 
            school's decision regarding school selection or enrollment, 
            including the rights of the parent, guardian, or youth to 
            appeal the decision;
                ``(iii) the child, youth, parent, or guardian shall be 
            referred to the local educational agency liaison designated 
            under paragraph (1)(J)(ii), who shall carry out the dispute 
            resolution process as described in paragraph (1)(C) as 
            expeditiously as possible after receiving notice of the 
            dispute; and
                ``(iv) in the case of an unaccompanied youth, the 
            homeless liaison shall ensure that the youth is immediately 
            enrolled in school pending resolution of the dispute.
            ``(F) 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.
            ``(G) School of origin defined.--In 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.
            ``(H) Contact information.--Nothing in this subtitle shall 
        prohibit a local educational agency from requiring a parent or 
        guardian of a homeless child to submit contact information.
        ``(4) Comparable services.--Each homeless child or youth to be 
    assisted under this subtitle shall be provided services comparable 
    to services offered to other students in the school selected under 
    paragraph (3), including the following:
            ``(A) Transportation services.
            ``(B) Educational services for which the child or youth 
        meets the eligibility criteria, such as services provided under 
        title I of the Elementary and Secondary Education Act of 1965 
        or similar State or local programs, educational programs for 
        children with disabilities, and educational programs for 
        students with limited English proficiency.
            ``(C) Programs in vocational and technical education.
            ``(D) Programs for gifted and talented students.
            ``(E) School nutrition programs.
        ``(5) Coordination.--
            ``(A) In general.--Each local educational agency serving 
        homeless children and youths that receives assistance under 
        this subtitle shall coordinate--
                ``(i) the provision of services under this subtitle 
            with local social services agencies and other agencies or 
            programs providing services to homeless children and youths 
            and their families, including services and programs funded 
            under the Runaway and Homeless Youth Act (42 U.S.C. 5701 et 
            seq.); and
                ``(ii) with other local educational agencies on 
            interdistrict issues, such as transportation or transfer of 
            school records.
            ``(B) Housing assistance.--If applicable, each State 
        educational agency 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-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 12705) to minimize educational 
        disruption for children and youths who become homeless.
            ``(C) Coordination purpose.--The coordination required 
        under subparagraphs (A) and (B) shall be designed to--
                ``(i) ensure that homeless children and youths have 
            access and reasonable proximity 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 a 
            shelter and other challenges associated with homelessness.
        ``(6) Local educational agency liaison.--
            ``(A) Duties.--Each local educational agency liaison for 
        homeless children and youths, designated under paragraph 
        (1)(J)(ii), shall ensure that--
                ``(i) homeless children and youths are identified by 
            school personnel and through coordination activities with 
            other entities and agencies;
                ``(ii) homeless children and youths enroll in, and have 
            a full and equal opportunity to succeed in, schools of that 
            local educational agency;
                ``(iii) homeless families, children, and youths receive 
            educational services for which such families, children, and 
            youths 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;
                ``(iv) the parents or guardians of homeless children 
            and youths are informed of the educational and related 
            opportunities available to their children and are provided 
            with meaningful opportunities to participate in the 
            education of their children;
                ``(v) public notice of the educational rights of 
            homeless children and youths is disseminated where such 
            children and youths receive services under this Act, such 
            as schools, family shelters, and soup kitchens;
                ``(vi) enrollment disputes are mediated in accordance 
            with paragraph (3)(E); and
                ``(vii) the parent or guardian of a homeless child or 
            youth, and any unaccompanied youth, is fully informed of 
            all transportation services, including transportation to 
            the school of origin, as described in paragraph 
            (1)(J)(iii), and is assisted in accessing transportation to 
            the school that is selected under paragraph (3)(A).
            ``(B) Notice.--State coordinators established under 
        subsection (d)(3) and local educational agencies shall inform 
        school personnel, service providers, and advocates working with 
        homeless families of the duties of the local educational agency 
        liaisons.
            ``(C) Local and state coordination.--Local educational 
        agency liaisons for homeless children and youths 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 youths.
        ``(7) Review and revisions.--
            ``(A) In general.--Each State educational agency and local 
        educational agency that receives assistance under this subtitle 
        shall review and revise any policies that may act as barriers 
        to the enrollment of homeless children and youths in schools 
        that are selected under paragraph (3).
            ``(B) Consideration.--In reviewing and revising such 
        policies, consideration shall be given to issues concerning 
        transportation, immunization, residency, birth certificates, 
        school records and other documentation, and guardianship.
            ``(C) Special attention.--Special attention shall be given 
        to ensuring the enrollment and attendance of homeless children 
        and youths who are not currently attending school.

``SEC. 723. LOCAL EDUCATIONAL AGENCY SUBGRANTS FOR THE EDUCATION OF 
              HOMELESS CHILDREN AND YOUTHS.

    ``(a) General Authority.--
        ``(1) In general.--The State educational agency shall, in 
    accordance with section 722(e), and from amounts made available to 
    such agency under section 726, make subgrants to local educational 
    agencies for the purpose of facilitating the enrollment, 
    attendance, and success in school of homeless children and youths.
        ``(2) Services.--
            ``(A) In general.--Services 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 children and youths with nonhomeless 
            children and youths; and
                ``(iii) shall be designed to expand or improve services 
            provided as part of a school's regular academic program, 
            but not to replace such services provided under such 
            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 youths who are 
            determined by the local educational agency to be at risk of 
            failing in, or dropping out of, school, subject to the 
            requirements of clause (ii); and
                ``(ii) except as otherwise provided in section 
            722(e)(3)(B), shall not provide services in settings within 
            a school that segregate homeless children and youths from 
            other children and youths, except as necessary for short 
            periods of time--

                    ``(I) for health and safety emergencies; or
                    ``(II) to provide temporary, special, and 
                supplementary services to meet the unique needs of 
                homeless children and youths.

        ``(3) Requirement.--Services provided under this section shall 
    not replace the regular academic program and shall be designed to 
    expand upon or improve services provided as part of the school's 
    regular academic program.
    ``(b) Application.--A local educational agency that desires to 
receive a subgrant under this section shall submit an application to 
the State educational agency at such time, in such manner, and 
containing or accompanied by such information as the State educational 
agency may reasonably require. Such application shall include the 
following:
        ``(1) An assessment of the educational and related needs of 
    homeless children and youths in the area served by such agency 
    (which may be undertaken as part of needs assessments for other 
    disadvantaged groups).
        ``(2) A description of the services and programs for which 
    assistance is sought to address the needs identified in paragraph 
    (1).
        ``(3) An assurance that the local educational agency's combined 
    fiscal effort per student, or the aggregate expenditures of that 
    agency and the State with respect to the provision of free public 
    education by such agency for the 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.
        ``(4) An assurance that the applicant complies with, or will 
    use requested funds to comply with, paragraphs (3) through (7) of 
    section 722(g).
        ``(5) A description of policies and procedures, consistent with 
    section 722(e)(3), that the agency will implement to ensure that 
    activities carried out by the agency will not isolate or stigmatize 
    homeless children and youths.
    ``(c) Awards.--
        ``(1) In general.--The State educational agency shall, in 
    accordance with the requirements of this subtitle and from amounts 
    made available to it under section 726, make competitive subgrants 
    to local educational agencies that submit applications under 
    subsection (b). Such subgrants shall be awarded on the basis of the 
    need of such agencies for assistance under this subtitle and the 
    quality of the applications submitted.
        ``(2) Need.--In determining need under paragraph (1), the State 
    educational agency may consider the number of homeless children and 
    youths enrolled in preschool, elementary, and secondary schools 
    within the area served by the local educational agency, and shall 
    consider the needs of such children and youths and the ability of 
    the local educational agency to meet such needs. The State 
    educational agency may also consider the following:
            ``(A) The extent to which the proposed use of funds will 
        facilitate the enrollment, retention, and educational success 
        of homeless children and youths.
            ``(B) The extent to which the application--
                ``(i) reflects coordination with other local and State 
            agencies that serve homeless children and youths; and
                ``(ii) describes how the applicant will meet the 
            requirements of section 722(g)(3).
            ``(C) The extent to which the applicant exhibits in the 
        application and in current practice a commitment to education 
        for all homeless children and youths.
            ``(D) Such other criteria as the State agency determines 
        appropriate.
        ``(3) Quality.--In determining the quality of applications 
    under paragraph (1), the State educational agency shall consider 
    the following:
            ``(A) The applicant's needs assessment under subsection 
        (b)(1) and the likelihood that the program presented in the 
        application will meet such needs.
            ``(B) The types, intensity, and coordination of the 
        services to be provided under the program.
            ``(C) The involvement of parents or guardians of homeless 
        children or youths in the education of their children.
            ``(D) The extent to which homeless children and youths will 
        be integrated within the regular education program.
            ``(E) The quality of the applicant's evaluation plan for 
        the program.
            ``(F) The extent to which services provided under this 
        subtitle will be coordinated with other services available to 
        homeless children and youths and their families.
            ``(G) Such other measures as the State educational agency 
        considers indicative of a high-quality program, such as the 
        extent to which the local educational agency will provide case 
        management or related services to unaccompanied youths.
        ``(4) Duration of grants.--Grants awarded under this section 
    shall be for terms not to exceed 3 years.
    ``(d) Authorized Activities.--A local educational agency may use 
funds awarded under this section for activities that carry out the 
purpose of this subtitle, including the following:
        ``(1) The provision of tutoring, supplemental instruction, and 
    enriched educational services that are linked to the achievement of 
    the same challenging State academic content standards and 
    challenging State student academic achievement standards the State 
    establishes for other children and youths.
        ``(2) The provision of expedited evaluations of the strengths 
    and needs of homeless children and youths, including needs and 
    eligibility for programs and services (such as educational programs 
    for gifted and talented students, children with disabilities, and 
    students with limited English proficiency, services provided under 
    title I of the Elementary and Secondary Education Act of 1965 or 
    similar State or local programs, programs in vocational and 
    technical education, and school nutrition programs).
        ``(3) Professional development and other activities for 
    educators and pupil services personnel that are designed to 
    heighten the understanding and sensitivity of such personnel to the 
    needs of homeless children and youths, the rights of such children 
    and youths under this subtitle, and the specific educational needs 
    of runaway and homeless youths.
        ``(4) The provision of referral services to homeless children 
    and youths for medical, dental, mental, and other health services.
        ``(5) The provision of assistance to defray the excess cost of 
    transportation for students under section 722(g)(4)(A), not 
    otherwise provided through Federal, State, or local funding, where 
    necessary to enable students to attend the school selected under 
    section 722(g)(3).
        ``(6) The provision of developmentally appropriate early 
    childhood education programs, not otherwise provided through 
    Federal, State, or local funding, for preschool-aged homeless 
    children.
        ``(7) The provision of services and assistance to attract, 
    engage, and retain homeless children and youths, and unaccompanied 
    youths, in public school programs and services provided to 
    nonhomeless children and youths.
        ``(8) The provision for homeless children and youths of before- 
    and after-school, mentoring, and summer programs in which a teacher 
    or other qualified individual provides tutoring, homework 
    assistance, and supervision of educational activities.
        ``(9) If necessary, the payment of fees and other costs 
    associated with tracking, obtaining, and transferring records 
    necessary to enroll homeless children and youths in school, 
    including birth certificates, immunization or medical records, 
    academic records, guardianship records, and evaluations for special 
    programs or services.
        ``(10) The provision of education and training to the parents 
    of homeless children and youths about the rights of, and resources 
    available to, such children and youths.
        ``(11) The development of coordination between schools and 
    agencies providing services to homeless children and youths, as 
    described in section 722(g)(5).
        ``(12) The provision of pupil services (including violence 
    prevention counseling) and referrals for such services.
        ``(13) Activities to address the particular needs of homeless 
    children and youths that may arise from domestic violence.
        ``(14) The adaptation of space and purchase of supplies for any 
    nonschool facilities made available under subsection (a)(2) to 
    provide services under this subsection.
        ``(15) The provision of school supplies, including those 
    supplies to be distributed at shelters or temporary housing 
    facilities, or other appropriate locations.
        ``(16) The provision of other extraordinary or emergency 
    assistance needed to enable homeless children and youths to attend 
    school.

``SEC. 724. SECRETARIAL RESPONSIBILITIES.

    ``(a) Review of State Plans.--In reviewing the State plan submitted 
by a State educational agency under section 722(g), the Secretary shall 
use a peer review process and shall evaluate whether State laws, 
policies, and practices described in such plan adequately address the 
problems of homeless children and youths relating to access to 
education and placement as described in such plan.
    ``(b) Technical Assistance.--The Secretary shall provide support 
and technical assistance to a State educational agency to assist such 
agency in carrying out its responsibilities under this subtitle, if 
requested by the State educational agency.
    ``(c) Notice.--The Secretary shall, before the next school year 
that begins after the date of enactment of the McKinney-Vento Homeless 
Education Assistance Improvements Act of 2001, create and disseminate 
nationwide a public notice of the educational rights of homeless 
children and youths and disseminate such notice to other Federal 
agencies, programs, and grantees, including Head Start grantees, Health 
Care for the Homeless grantees, Emergency Food and Shelter grantees, 
and homeless assistance programs administered by the Department of 
Housing and Urban Development.
    ``(d) Evaluation and Dissemination.--The Secretary shall conduct 
evaluation and dissemination activities of programs designed to meet 
the educational needs of homeless elementary and secondary school 
students, and may use funds appropriated under section 726 to conduct 
such activities.
    ``(e) Submission and Distribution.--The Secretary shall require 
applications for grants under this subtitle to be submitted to the 
Secretary not later than the expiration of the 60-day period beginning 
on the date that funds are available for purposes of making such grants 
and shall make such grants not later than the expiration of the 120-day 
period beginning on such date.
    ``(f) Determination by Secretary.--The Secretary, based on the 
information received from the States and information gathered by the 
Secretary under subsection (h), shall determine the extent to which 
State educational agencies are ensuring that each homeless child and 
homeless youth has access to a free appropriate public education, as 
described in section 721(1).
    ``(g) Guidelines.--The Secretary shall develop, issue, and publish 
in the Federal Register, not later than 60 days after the date of 
enactment of the McKinney-Vento Homeless Education Assistance 
Improvements Act of 2001, school enrollment guidelines for States with 
respect to homeless children and youths. The guidelines shall 
describe--
        ``(1) successful ways in which a State may assist local 
    educational agencies to immediately enroll homeless children and 
    youths in school; and
        ``(2) how a State can review the State's requirements regarding 
    immunization and medical or school records and make such revisions 
    to the requirements as are appropriate and necessary in order to 
    enroll homeless children and youths in school immediately.
    ``(h) Information.--
        ``(1) In general.--From funds appropriated under section 726, 
    the Secretary shall, directly or through grants, contracts, or 
    cooperative agreements, periodically collect and disseminate data 
    and information regarding--
            ``(A) the number and location of homeless children and 
        youths;
            ``(B) the education and related services such children and 
        youths receive;
            ``(C) the extent to which the needs of homeless children 
        and youths are being met; and
            ``(D) such other data and information as the Secretary 
        determines to be 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.
    ``(i) Report.--Not later than 4 years after the date of enactment 
of the McKinney-Vento Homeless Education Assistance Improvements Act of 
2001, the Secretary shall prepare and submit to the President and 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 on the status of education of homeless 
children and youths, which shall include information on--
        ``(1) the education of homeless children and youths; and
        ``(2) the actions of the Secretary and the effectiveness of the 
    programs supported under this subtitle.

``SEC. 725. DEFINITIONS.

    ``For purposes of this subtitle:
        ``(1) The terms `enroll' and `enrollment' include attending 
    classes and participating fully in school activities.
        ``(2) The term `homeless children and youths'--
            ``(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 youths 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 youths 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));
                ``(iii) children and youths who are living in cars, 
            parks, public spaces, abandoned buildings, substandard 
            housing, bus or train stations, or similar settings; and
                ``(iv) migratory children (as such term is defined in 
            section 1309 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 clauses (i) through (iii).
        ``(3) The terms `local educational agency' and `State 
    educational agency' have the meanings given such terms in section 
    9101 of the Elementary and Secondary Education Act of 1965.
        ``(4) The term `Secretary' means the Secretary of Education.
        ``(5) The term `State' means each of the 50 States, the 
    District of Columbia, and the Commonwealth of Puerto Rico.
        ``(6) The term `unaccompanied youth' includes a youth not in 
    the physical custody of a parent or guardian.

``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 fiscal years 2003 through 2007.''.

SEC. 1033. CONFORMING AMENDMENT.

    The table of contents of the McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11301 note) is amended so that the items relating to 
subtitle B of title VII read as follows:

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

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

SEC. 1034. TECHNICAL AMENDMENT.

    (a) In General.--Section 1 of Public Law 106-400 (42 U.S.C. 11301) 
is amended by striking ``Section 1 of'' and inserting ``Section 101 
of''.
    (b) Effective Date.--The amendment made by subsection (a) shall be 
deemed to be effective on the date of enactment of Public Law 106-400.

             PART D--NATIVE AMERICAN EDUCATION IMPROVEMENT

SEC. 1041. SHORT TITLE.

    This part may be cited as the ``Native American Education 
Improvement Act of 2001''.

SEC. 1042. 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. DECLARATION OF POLICY.

    ``Congress declares that the Federal Government has the sole 
responsibility for the operation and financial support of the Bureau of 
Indian Affairs funded school system that it has established on or near 
Indian reservations and Indian trust lands throughout the Nation for 
Indian children. It is the policy of the United States to fulfill the 
Federal Government's unique and continuing trust relationship with and 
responsibility to the Indian people for the education of Indian 
children and for the operation and financial support of the Bureau of 
Indian Affairs-funded school system to work in full cooperation with 
tribes toward the goal of ensuring 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 those 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.--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) Accreditation.--
        ``(1) Deadline.--
            ``(A) In general.--Not later than 24 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 accrediting body, if the 
            accreditation standards of the tribal accrediting body have 
            been accepted by formal action of the tribal governing body 
            and such accreditation is acknowledged by a generally 
            recognized State certification or regional accrediting 
            agency;
                ``(ii) by a regional accreditation agency;
                ``(iii) by State accreditation standards for the State 
            in which the Bureau-funded school is located; or
                ``(iv) in the case of a Bureau-funded school that is 
            located on a reservation that is located in more than one 
            State, in accordance with the State accreditation standards 
            of one 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 consultation 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 tribal accreditation agency that would--
                ``(i) review and acknowledge the accreditation 
            standards for Bureau-funded schools; and
                ``(ii) establish accreditation procedures to facilitate 
            the application, review of the standards and review 
            processes, and recognition of qualified and credible tribal 
            departments of education as accrediting bodies serving 
            tribal 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.--
            ``(A) In general.--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.
            ``(B) Entities through which assistance may 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 day before 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 Committee on Appropriations, the Committee on 
    Education and the Workforce, and the Committee on Resources of the 
    House of Representatives and the Committee on Appropriations, the 
    Committee on Indian Affairs, and the Committee on Health, 
    Education, Labor, and Pensions 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 any 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) Waiver.--The Secretary shall grant a waiver which 
        shall exempt a school from any or all of the requirements of 
        this paragraph and paragraph (7) (though 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) if the school--
                ``(i) is identified in the report described in 
            paragraph (5)(C); and
                ``(ii) fails to be accredited for reasons that are 
            beyond the control of the school board, as determined by 
            the Secretary, including, but not limited to--

                    ``(I) a significant decline in financial resources;
                    ``(II) the poor condition of facilities, vehicles, 
                or other property; and
                    ``(III) a natural disaster.

            ``(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 toward 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 full year immediately 
            following the date that the school's plan was first in 
            effect under paragraph (7);
                ``(iii) provide all students enrolled in a school that 
            is eligible for a corrective action determination by the 
            Secretary under clause (ii) with the option to transfer to 
            another public or Bureau-funded school, including a public 
            charter school, that is accredited;
                ``(iv) promptly notify the parents of children enrolled 
            in a school that is eligible for a corrective action 
            determination by the Secretary under clause (ii) of the 
            option to transfer their child to another public or Bureau-
            funded school; and
                ``(v) provide, or pay for the provision of, 
            transportation for each student described in clause (iii) 
            to the school described in clause (iii) to which the 
            student elects to be transferred to the extent funds are 
            available, as determined by the tribal governing body.
            ``(D) Failure of school plan of bureau-operated school.--
        With respect to a Bureau-operated school that fails to be 
        accredited at the end of the third full year immediately 
        following the date that the school's plan was first in effect 
        under paragraph (7), the Secretary may take one 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 during 
            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(c) of the 
            Tribally Controlled Schools Act of 1988 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 the school is 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 of 1988, 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.
            ``(E) Failure of school plan of contract or grant school.--
                ``(i) Corrective action.--With respect to a contract or 
            grant school that fails to be accredited at the end of the 
            third full year immediately following the date that the 
            school's plan was first in effect under paragraph (7), the 
            Secretary may take one or more of the corrective actions 
            described in subparagraph (D)(i) and (D)(ii). The Secretary 
            shall implement such corrective action for at least 1 year 
            prior to taking any action described under clause (ii).
                ``(ii) Outside entity.--If the corrective action 
            described in clause (i) does not result in accreditation of 
            the school, the Secretary, in conjunction with the tribal 
            governing body, may contract with an outside entity to 
            operate the school in order to achieve accreditation of the 
            school within 2 school years. Prior to entering into such a 
            contract, the Secretary shall develop a proposal for such 
            operation which shall include, at a minimum, the following 
            elements:

                    ``(I) The identification of one or more outside 
                entities each of which has demonstrated to the 
                Secretary its ability to develop a satisfactory plan 
                for achieving accreditation and its willingness and 
                availability to undertake such a plan.
                    ``(II) A plan for implementing operation of the 
                school by such an outside entity, including the 
                methodology for oversight and evaluation of the 
                performance of the outside entity by the Secretary and 
                the tribe.

                ``(iii) Proposal amendments.--The tribal governing body 
            shall have 60 days to amend the plan developed pursuant to 
            clause (ii), including identifying another outside entity 
            to operate the school. The Secretary shall reach agreement 
            with the tribal governing body on the proposal and any such 
            amendments to the plan not later than 30 days after the 
            expiration of the 60-day period described in the preceding 
            sentence. After the approval of the proposal and any 
            amendments, the Secretary, with continuing consultation 
            with such tribal governing body, shall implement the 
            proposal.
                ``(iv) Accreditation.--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 of 1988, at the beginning 
            of the school year following the year in which the school 
            obtains accreditation.
                ``(v) Retrocede.--Nothing in this subparagraph shall 
            limit a tribe's right to retrocede operation of a school to 
            the Secretary pursuant to section 105(e) of the Indian 
            Self-Determination Act (with respect to a contract school) 
            or section 5204(f) of the Tribally Controlled Schools Act 
            of 1988 (with respect to a grant school).
                ``(vi) Consistent.--The provisions of this subparagraph 
            shall be construed to be consistent with the provisions of 
            the Tribally Controlled Schools Act of 1988 and the Indian 
            Self-Determination Act as in effect on the day before 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.
            ``(F) 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 of 1988.
        ``(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.
        ``(10) Fiscal control and fund accounting standards.--The 
    Bureau shall, either directly or through contract with an Indian 
    organization, establish a consistent system of reporting standards 
    for fiscal control and fund accounting for all contract and grant 
    schools. Such standards shall provide data comparable to those used 
    by Bureau-operated schools.
    ``(c) Annual Plan.--
        ``(1) In general.--Except as provided in subsection (b), the 
    Secretary shall implement the standards in effect under this 
    section on the day before 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 
    schools are in the process of obtaining accreditation that such 
    schools meet the Bureau standards in effect on the day before 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--
            ``(A) no Bureau-funded school or dormitory operated on or 
        after January 1, 1992, may be closed, consolidated, or 
        transferred to another authority; and
            ``(B) 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 
    Bureau schools, in accordance with the requirements of this 
    subsection.
        ``(4) Notice.--
            ``(A) In general.--In a case in which closure, transfer to 
        another authority, consolidation, or substantial curtailment of 
        a school is under active consideration or review by any 
        division of the Bureau or the Department of the Interior, the 
        affected tribe, tribal governing body, and designated local 
        school board will be notified immediately in writing, kept 
        fully and currently informed, and afforded an opportunity to 
        comment with respect to such consideration or review.
            ``(B) Decision to close.--If a formal decision is made to 
        close, transfer to another authority, consolidate, or 
        substantially curtail a school, the affected tribe, tribal 
        governing body, and designated school board shall be notified 
        not later than 180 days before the end of the school year 
        preceding the proposed closure date.
            ``(C) Copies.--Copies of any such notices and information 
        shall be--
                ``(i) submitted promptly to the appropriate committees 
            of Congress; and
                ``(ii) published in the Federal Register.
        ``(5) Report.--The Secretary shall submit to the appropriate 
    committees of Congress, the affected tribe, and the designated 
    school board, a report describing the process of the active 
    consideration or review referred to in paragraph (4) that 
    includes--
            ``(A) a study of the impact of such action on the student 
        population;
            ``(B) a description of those students with particular 
        educational and social needs;
            ``(C) recommendations to ensure that alternative services 
        are available to such students; and
            ``(D) a description of the consultation conducted between 
        the potential service provider, current service provider, 
        parents, tribal representatives and the tribe or tribes 
        involved, and the Director of the Office of Indian Education 
        Programs within the Bureau regarding such students.
        ``(6) Limitation on certain actions.--No irrevocable action may 
    be taken in furtherance of any such proposed school closure, 
    transfer to another authority, consolidation, or substantial 
    curtailment (including any action which would prejudice the 
    personnel or programs of such school) prior to the end of the first 
    full academic year after such report is made.
        ``(7) Tribal governing body approval required for certain 
    actions.--The Secretary may, with the approval of the tribal 
    governing body, 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.
    ``(e) Application for Contracts or Grants for Non-Bureau-Funded 
Schools or Expansion of Bureau-Funded Schools.--
        ``(1) Review by secretary.--
            ``(A) Consideration of factors.--
                ``(i) In general.--The Secretary shall consider only 
            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 
                of any Bureau-funded school for--

                        ``(aa) a school which is not a Bureau-funded 
                    school; or
                        ``(bb) the expansion of a Bureau-funded school 
                    which would increase the amount of funds received 
                    by the Indian tribe or school board under section 
                    1127.
                ``(ii) No denial based on geographic proximity.--With 
            respect to applications described in this subparagraph, the 
            Secretary shall give consideration to all 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 the facilities or the potential 
            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 projected 
            needs analysis done 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 governments at both 
            the central and local levels, and school organizations.
                ``(vi) Adequacy and comparability of programs already 
            available.
                ``(vii) Consistency of available programs with tribal 
            educational codes or tribal legislation on education.
                ``(viii) The history and success of those services for 
            the proposed population to be served, as determined from 
            all factors, including standardized examination 
            performance.
        ``(2) Determination on application.--
            ``(A) In general.--Not later than 180 days after the date 
        on which an application described in paragraph (1)(A) is 
        submitted to the Secretary, the Secretary shall make a 
        determination of whether to approve the application.
            ``(B) Failure to make determination.--If the Secretary 
        fails to make a determination with respect to an application by 
        the date described in subparagraph (A), the application shall 
        be deemed to have been approved by the Secretary.
        ``(3) Requirements for applications.--
            ``(A) In general.--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) written evidence of such approval is submitted 
            with the application.
            ``(B) Included information.--Each application described in 
        paragraph (1)(A) shall include information concerning 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, an action that is the subject of any application 
        described in paragraph (1)(A) that is approved by the Secretary 
        shall become effective--
                ``(i) at the beginning of the academic year following 
            the fiscal year in which the application is approved; or
                ``(ii) at an earlier date determined by the Secretary.
            ``(B) Applications deemed approved.--If an application is 
        deemed to have 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) at 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. 
    Subject to the availability of appropriated funds the Secretary is 
    authorized to provide the necessary funds needed to supplement the 
    cost of operations and maintenance of such expansion.
    ``(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 nonfederally 
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 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 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. The study shall 
    analyze existing information gathered and contained in germane 
    studies that have been conducted or are currently being conducted 
    with regard to Bureau-funded schools.
        ``(2) Action.--Upon completion of the study, the Secretary of 
    the Interior shall take such action as necessary to ensure 
    distribution of the findings of the study to all affected Indian 
    tribes, local school boards, and associations of local school 
    boards.

``SEC. 1122. NATIONAL CRITERIA FOR HOME-LIVING SITUATIONS.

    ``(a) Revision of Standards.--
        ``(1) In general.--The Secretary, in consultation with the 
    Secretary of Education, Indian organizations and tribes, and 
    Bureau-funded schools, shall revise the national standards for 
    home-living (dormitory) situations to include such factors as 
    heating, lighting, cooling, adult-child ratios, needs for 
    counselors (including special needs related to off-reservation 
    home-living (dormitory) situations), therapeutic programs, space, 
    and privacy.
        ``(2) Implementation.--Such standards shall be implemented in 
    Bureau-operated schools, and shall serve as minimum standards for 
    contract or grant schools.
        ``(3) Revision after establishment.--Once established, any 
    revisions of such standards shall be developed according to the 
    requirements established under section 1137.
    ``(b) Implementation.--The Secretary shall implement the revised 
standards established under this section immediately upon completion of 
the standards.
    ``(c) Plan.--
        ``(1) In general.--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 provide home-living 
    (dormitory) situations up to the standards established under this 
    section.
        ``(2) Components of plan.--The plan described in paragraph (1) 
    shall include--
            ``(A) a statement of the relative needs of each Bureau-
        funded home-living (dormitory) school;
            ``(B) projected future needs of each Bureau-funded home-
        living (dormitory) school;
            ``(C) detailed information on the status of each school in 
        relation to the standards established under this section;
            ``(D) specific cost estimates for meeting each standard for 
        each such school;
            ``(E) aggregate cost estimates for bringing all such 
        schools into compliance with the criteria established under 
        this section; and
            ``(F) 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. CODIFICATION OF REGULATIONS.

    ``(a) Part 32 of Title 25, Code of Federal Regulations.--The 
provisions of part 32 of title 25, Code of Federal Regulations, as in 
effect on January 1, 1987, are incorporated into this Act and shall be 
treated as though such provisions are set forth in this subsection. 
Such provisions may be altered only by means of an Act of Congress. To 
the extent that such provisions of part 32 do not conform with this Act 
or any statutory provision of law enacted before November 1, 1978, the 
provisions of this Act and the provisions of such other statutory law 
shall govern.
    ``(b) Definition of Regulation.--In this section, the term 
`regulation' means any rule, regulation, guideline, interpretation, 
order, or requirement of general applicability prescribed by any 
officer or employee of the executive branch.

``SEC. 1124. SCHOOL BOUNDARIES.

    ``(a) Establishment by Secretary.--The Secretary shall establish, 
by regulation, separate geographical attendance areas for each Bureau-
funded school.
    ``(b) Establishment by Tribal Body.--In any case where there is 
more than one Bureau-funded school located on an Indian reservation, at 
the direction of the tribal governing body, the relevant school boards 
of the Bureau-funded schools on the reservation may, by mutual consent, 
establish the relevant attendance areas for such schools, subject to 
the approval of the tribal governing body. Any such boundaries so 
established shall be accepted by the Secretary.
    ``(c) Boundary Revisions.--
        ``(1) Notice.--On or after July 1, 2001, no geographical 
    attendance area shall be revised or established with respect to any 
    Bureau-funded school unless the tribal governing body or the local 
    school board concerned (if so designated by the tribal governing 
    body) has been afforded--
            ``(A) at least 6 months notice of the intention of the 
        Bureau to revise or establish such attendance area; and
            ``(B) the opportunity to propose alternative boundaries.
        ``(2) Revision process.--Any tribe may petition the Secretary 
    for revision of existing attendance area boundaries. The Secretary 
    shall accept such proposed alternative or revised boundaries unless 
    the Secretary finds, after consultation with the affected tribe or 
    tribes, that such revised boundaries do not reflect the needs of 
    the Indian students to be served or do not provide adequate 
    stability to all of the affected programs. The Secretary shall 
    cause such revisions to be published in the Federal Register.
        ``(3) Tribal resolution determination.--Nothing in this section 
    shall deny a tribal governing body the authority, on a continuing 
    basis, to adopt a tribal resolution allowing parents the choice of 
    the Bureau-funded school their children may attend, regardless of 
    the attendance boundaries established under this section.
    ``(d) Funding Restrictions.--
        ``(1) In general.--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 geographical attendance area established for that school under 
    this section.
        ``(2) Transportation.--No funding shall be made available 
    without tribal authorization to enable a 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.--When there is only one Bureau-
funded program located on an Indian reservation--
        ``(1) the attendance area for the program shall be the 
    boundaries (established by treaty, agreement, legislation, court 
    decisions, or executive decisions and as accepted by the tribe) of 
    the reservation served; and
        ``(2) those students residing near the reservation shall also 
    receive services from such program.
    ``(f) Off-Reservation Home-Living (Dormitory) Schools.--
        ``(1) In general.--Notwithstanding any geographical attendance 
    areas, attendance at off-reservation home-living (dormitory) 
    schools shall include students requiring special emphasis programs 
    to be implemented at each off-reservation home-living (dormitory) 
    school.
        ``(2) Coordination.--Such attendance shall be coordinated 
    between education line officers, the family, and the referring and 
    receiving programs.

``SEC. 1125. 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 are 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 are accurate, 
        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.--Not later than 2 years 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, the Committee on Health, Education, Labor, and 
    Pensions, and the Committee on Appropriations of the Senate and the 
    Committee on Resources, the Committee on Education and the 
    Workforce, and the Committee on Appropriations of the House of 
    Representatives and to the Secretary. The Secretary 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 rulemaking committee 
        pursuant to section 1138(b)(3). The negotiated rulemaking 
        committee shall prepare and submit to the Secretary the 
        following:
                ``(i) A catalog 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 
            clause (ii).
            ``(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.--
        ``(1) In general.--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--
            ``(A) 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);
            ``(B) section 504 of the Rehabilitation Act of 1973; and
            ``(C) the Americans with Disabilities Act of 1990.
        ``(2) No termination required.--Nothing in this subsection 
    requires termination of the operations of any facility that--
            ``(A) does not comply with the provisions and standards 
        described in paragraph (1); and
            ``(B) is in use on the date of 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 (a) into compliance with 
the standards referred to in that subsection that includes--
        ``(1) detailed information on the status of each facility's 
    compliance with such standards;
        ``(2) specific cost estimates for meeting such standards at 
    each school; and
        ``(3) specific timelines for bringing each school into 
    compliance with such standards.
    ``(d) Construction Priorities.--
        ``(1) System to establish priorities.--On an annual basis, the 
    Secretary shall submit to the appropriate committees of Congress 
    and cause to be published in the Federal Register, the system used 
    to establish priorities for replacement and construction projects 
    for Bureau-funded schools and home-living schools, including 
    boarding schools and dormitories. At the time any budget request 
    for education is presented, the Secretary shall publish in the 
    Federal Register and submit with the budget request the current 
    list of all Bureau-funded school construction priorities.
        ``(2) Long-term construction and replacement list.--In addition 
    to the plan submitted under 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 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 
        enable planning and scheduling of budget requests;
            ``(C) cause the list prepared under subparagraph (B) to be 
        published 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) cause the final list to be published in the Federal 
        Register.
        ``(3) Effect on other list.--Nothing in this section shall 
    interfere with or change in any way the construction priority list 
    as it existed on the day before 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, or 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 at the beginning of the school year 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.--After 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. Such inspection shall be 
        completed as expeditiously as practicable, but not later than 
        20 days after the date on which the action described in 
        subparagraph (A) is taken.
            ``(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 (C) 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 receives notice 
        under subparagraph (D), the tribal governing body shall 
        consider all information relating 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.--
                ``(i) In general.--If the Bureau health and safety 
            officer and the individual designated by the tribe 
            conducting the inspection of a facility required under 
            subparagraph (C), 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.
                ``(ii) Reopening of facility if no immediate hazard 
            found to exist.--If the Bureau health and safety officer or 
            the individual designated by the tribe conducting the 
            inspection of a facility required under subparagraph (C) 
            determines that conditions at the facility do not 
            constitute an immediate hazard to health and safety, any 
            consolidation or curtailment that was made under this 
            paragraph shall immediately cease and any school closed by 
            reason of conditions at the facility shall be reopened 
            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 90 
        days 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 30 days 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 1127, 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.--No funds shall be 
    withheld from the distribution to the budget of any school operated 
    under contract or grant by the Bureau for maintenance or any other 
    facilities or road-related purpose, unless such school has 
    consented, as a modification to the contract or in writing for 
    grants schools, to the withholding of such funds, including the 
    amount thereof, the purpose for which the funds will be used, and 
    the timeline for the services to be provided. The school may, at 
    the end of any fiscal year, cancel an agreement under this 
    paragraph upon giving the Bureau 30 days notice of its intent to do 
    so.
    ``(g) No Reduction in Federal Funding.--Nothing in this section 
shall diminish any Federal funding due to the receipt by the school of 
funding for facilities improvement or construction from a State or any 
other source.

``SEC. 1126. 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 180 days after the date of 
    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, procurement, and finance 
    functions connected with school operation programs.
        ``(2) Transfers.--The Assistant Secretary for Indian Affairs 
    shall, not later than 180 days 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 1141(12).
    ``(d) Evaluation of Programs; Services and Support Functions; 
Technical and Coordinating Assistance.--Education personnel who are 
under the direction and supervision of the Director of the Office of 
Indian Education Programs 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 coordinating assistance in areas 
    such as procurement, contracting, budgeting, personnel, curriculum, 
    and operation and maintenance of school facilities.
    ``(e) Construction, Improvement, Operation, and Maintenance of 
Facilities.--
        ``(1) Plan for construction.--The Assistant Secretary shall 
    submit as part of the annual budget a plan--
            ``(A) for school facilities to be constructed under section 
        1125(c);
            ``(B) for establishing priorities among projects and for 
        the improvement and repair of educational facilities, which 
        together shall form the basis for the distribution of 
        appropriated funds; and
            ``(C) for capital improvements to be made over the 5 
        succeeding years.
        ``(2) Program for operation and maintenance.--
            ``(A) Establishment.--The Assistant Secretary shall 
        establish a program, including the distribution of appropriated 
        funds, for the operation and maintenance of education 
        facilities. Such program shall include--
                ``(i) a method of computing the amount necessary for 
            each educational facility;
                ``(ii) similar treatment of all Bureau-funded schools;
                ``(iii) a notice of an allocation of appropriated funds 
            from the Director of the Office of Indian Education 
            Programs directly to the education line officers and 
            appropriate school officials;
                ``(iv) a method for determining the need for, and 
            priority of, facilities repair and maintenance projects, 
            both major and minor (to be determined, through the conduct 
            by the Assistant Secretary, of a series of meetings at the 
            agency and area level with representatives of the Bureau-
            funded schools in those areas and agencies to receive 
            comment on the lists and prioritization of such projects); 
            and
                ``(v) a system for the conduct of routine preventive 
            maintenance.
            ``(B) Local supervisors.--The appropriate education line 
        officers shall make arrangements for the maintenance of 
        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, except that no funds under this chapter may be 
        authorized for expenditure unless such appropriate education 
        line officer is assured that the necessary maintenance has 
        been, or will be, provided in a reasonable manner.
        ``(3) Implementation.--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) Definition of Functions.--For the purpose of this section, 
the term `functions' includes powers and duties.

``SEC. 1127. ALLOTMENT FORMULA.

    ``(a) Factors Considered; Revision To Reflect Standards.--
        ``(1) Formula.--The Secretary shall establish, by regulation 
    adopted in accordance with section 1137, a formula for determining 
    the minimum annual amount of funds necessary to sustain each 
    Bureau-funded school. In establishing such formula, the Secretary 
    shall consider--
            ``(A) the number of eligible Indian students served and 
        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 
            isolated and small schools;
                ``(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 cost of providing academic services which are at 
        least equivalent to those provided by public schools in the 
        State in which the school is located;
            ``(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.
        ``(2) Revision of formula.--
            ``(A) In general.--Upon the establishment of the standards 
        required in section 1122, the Secretary shall revise the 
        formula established under this subsection to reflect the cost 
        of funding such standards.
            ``(B) Review of formula.--Not later than January 1, 2003, 
        the Secretary shall review the formula established under this 
        section and shall take such steps as are necessary to increase 
        the availability of counseling and therapeutic programs for 
        students in off-reservation home-living (dormitory) schools and 
        other Bureau-operated residential facilities.
            ``(C) Review of standards.--Concurrent with such action, 
        the Secretary shall review the standards established under 
        section 1122 to be certain that adequate provision is made 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 pro rata in accordance with the 
formula established under subsection (a).
    ``(c) Annual Adjustment; Reservation of Amount for School Board 
Activities.--
        ``(1) Annual adjustment.--For fiscal year 2003, and for each 
    subsequent fiscal year, the Secretary shall adjust the formula 
    established under subsection (a) to ensure that the formula does 
    the following:
            ``(A) Uses a weighted unit of 1.2 for each eligible Indian 
        student enrolled in the seventh and eighth grades of the school 
        in considering the number of eligible Indian students served by 
        the school.
            ``(B) Considers a school with an enrollment of less than 50 
        eligible Indian students as having an average daily attendance 
        of 50 eligible Indian students for purposes of implementing the 
        adjustment factor for small schools.
            ``(C) Takes into account the provision of residential 
        services on less than a 9-month basis at a school when the 
        school board and supervisor of the school determine that a less 
        than 9-month basis will be implemented for the school year 
        involved.
            ``(D) Uses a weighted unit 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.
            ``(E) Uses a weighted unit 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. The adjustment required under this 
        subparagraph shall be used for such school after--
                ``(i) the certification of the Indian or Native 
            language curriculum by the school board of such 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 school year for which the 
            certification is made; and
                (ii) the funds appropriated for allotment under this 
            section are designated by the appropriations Act 
            appropriating such funds as the amount necessary to 
            implement such adjustment at such school without reducing 
            allotments 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.--
                ``(i) In general.--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 1 year after the individual becomes a 
            member of the school board, 40 hours of training relevant 
            to that individual's service on the board.
                ``(ii) Types of training.--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.
                ``(iii) Recommendation.--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 distribution for each fiscal year under this section 
    an amount that, in the aggregate, equals 1 percent of the funds 
    available for such purpose for that fiscal year, to be used, at the 
    discretion of the Director of the Office of Indian Education 
    Programs, to meet emergencies and unforeseen contingencies 
    affecting the education programs funded under this section.
        ``(2) Use of funds.--Funds reserved under this subsection may 
    be expended only for education services or programs, including 
    emergency repairs of educational facilities, at a schoolsite (as 
    defined by section 5204(c)(2) of the Tribally Controlled Schools 
    Act of 1988).
        ``(3) Availability of funds.--Funds reserved under this 
    subsection shall remain available without fiscal year limitation 
    until expended. However, the aggregate amount available from all 
    fiscal years may not exceed 1 percent of the current year funds.
        ``(4) Report.--When the Secretary makes funds available under 
    this subsection, the Secretary shall report such action to the 
    appropriate committees of Congress within the annual budget 
    submission.
    ``(e) Supplemental Appropriations.--Supplemental appropriations 
enacted to meet increased pay costs attributable to school level 
personnel shall be distributed 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 one-fourth 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.--No eligible Indian student or a student 
    attending a Bureau school under paragraph (2)(C) may be charged 
    tuition for attendance at a Bureau school or contract or grant 
    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) 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;
            ``(B) the school board consents;
            ``(C) the student is a dependent of a Bureau, Indian Health 
        Service, or tribal government employee who lives on or near the 
        school site; or
            ``(D) tuition is paid for the student that is not more than 
        the tuition charged by the nearest public school district for 
        out-of-district students and shall be in addition to the 
        school's allocation 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 under this subsection 
    to attend its contract school or grant school. Any tuition 
    collected for those students shall be in addition to funding 
    received under this section.
    ``(h) Funds Available Without Fiscal Year Limitation.--
Notwithstanding any other provision of law, at the election of the 
school board of a Bureau school made at any time during the fiscal 
year, a portion equal to not more than 15 percent of the funds 
allocated with respect to a school under this section for any fiscal 
year shall remain available to the school for expenditure without 
fiscal year limitation. The Assistant Secretary shall take such steps 
as are necessary to implement this subsection.
    ``(i) Students at Richfield Dormitory, Richfield, Utah.--
        ``(1) In general.--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.
        ``(2) No administrative cost funds.--No additional 
    administrative cost funds shall be provided under this part to pay 
    for administrative costs relating to the instruction of the 
    students.

``SEC. 1128. 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 2 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 funded 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.--Subject to the availability of funds, the 
    Secretary shall provide grants to each tribe or tribal organization 
    operating a contract school or grant school in the amount 
    determined under this section with respect to the tribe or tribal 
    organization for the purpose of paying the administrative and 
    indirect costs incurred in operating contract or grant schools, 
    provided that no school operated as a stand-alone institution shall 
    receive less than $200,000 per year for these purposes, in order 
    to--
            ``(A) enable tribes and tribal organizations operating such 
        schools, without reducing direct program services to the 
        beneficiaries of the program, to provide all related 
        administrative overhead services and operations necessary to 
        meet the requirements of law and prudent management practice; 
        and
            ``(B) carry out other necessary support functions which 
        would otherwise be provided by the Secretary or other Federal 
        officers or employees, from resources other than direct program 
        funds, in support of comparable Bureau-operated programs.
        ``(2) Effect upon appropriated amounts.--Amounts appropriated 
    to fund the grants provided under this section shall be in addition 
    to, and shall not reduce, the amounts appropriated for the program 
    being administered by the contract 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 of the tribe or tribal organization to the 
    aggregate of the Bureau elementary and secondary functions operated 
    by the tribe or tribal organization for which funds are received 
    from or through the Bureau.
        ``(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 an Indian tribe or tribal 
        organization under any Federal education program included in 
        the direct cost base of the tribe or tribal organization; and
            ``(B) take such actions as may be necessary to be 
        reimbursed by any other department or agency of the Federal 
        Government for the portion of grants made under this section 
        for the costs of administering any program for Indians that is 
        funded by appropriations made to such other department or 
        agency.
    ``(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; plus
                ``(ii) the standard direct cost base.
        ``(2) Rounding.--The administrative cost percentage rate shall 
    be determined to the \1/100\ of a decimal point.
        ``(3) Applicability.--The administrative cost percentage rate 
    determined under this subsection shall not apply to other programs 
    operated by the tribe or tribal organization.
    ``(e) Combining Funds.--
        ``(1) In general.--Funds received by a tribe or contract or 
    grant school as grants under this section for tribal elementary or 
    secondary educational programs may be combined by the tribe or 
    contract or grant school 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 which share common administrative services with tribal 
    elementary or secondary educational programs may be included in the 
    administrative cost account described in paragraph (1).
    ``(f) Availability of Funds.--Funds received as grants under this 
section with respect to tribal elementary or secondary education 
programs shall remain available to the contract or grant school without 
fiscal year limitation and without diminishing the amount of any grants 
otherwise payable to the school under this section for any fiscal year 
beginning after the fiscal year for which the grant is provided.
    ``(g) Treatment of Funds.--Funds received as grants under this 
section for Bureau-funded programs operated by a tribe or tribal 
organization under a contract or agreement shall not be taken into 
consideration for purposes of indirect cost underrecovery and 
overrecovery determinations by any Federal agency for any other funds, 
from whatever source derived.
    ``(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) Studies for Determination of Factors Affecting Costs; Base 
Rates Limits; Standard Direct Cost Base; Report to Congress.--
        ``(1) Studies.--Not later than 120 days after the date of 
    enactment of the Native American Education Improvement Act of 2001, 
    the Director of the Office of Indian Education Programs shall--
            ``(A) conduct such studies as may be needed to establish an 
        empirical basis for determining relevant factors substantially 
        affecting required administrative costs of tribal elementary 
        and secondary education programs, using the formula set forth 
        in subsection (c); and
        ``(B) conduct a study to determine--
            ``(i) a maximum base rate which ensures that the amount of 
        the grants provided under this section will provide adequate 
        (but not excessive) funding of the administrative costs of the 
        smallest tribal elementary or secondary educational programs;
            ``(ii) a minimum base rate which ensures that the amount of 
        the grants provided under this section will provide adequate 
        (but not excessive) funding of the administrative costs of the 
        largest tribal elementary or secondary educational programs; 
        and
            ``(iii) a standard direct cost base which is the aggregate 
        direct cost funding level for which the percentage determined 
        under subsection (d) will--
                ``(I) be equal to the median between the maximum base 
            rate and the minimum base rate; and
                ``(II) ensure that the amount of the grants provided 
            under this section will provide adequate (but not 
            excessive) funding of the administrative costs of tribal 
            elementary or secondary educational programs closest to the 
            size of the program.
        ``(2) Guidelines.--The studies required under paragraph (1) 
    shall--
            ``(A) be conducted in full consultation (in accordance with 
        section 1131) with--
                ``(i) the tribes and tribal organizations that are 
            affected by the application of the formula set forth in 
            subsection (c); and
                ``(ii) all national and regional Indian organizations 
            of which such tribes and tribal organizations are typically 
            members;
            ``(B) be conducted onsite with a representative statistical 
        sample of the tribal elementary or secondary educational 
        programs under a contract entered into with a nationally 
        reputable public accounting and business consulting firm;
            ``(C) take into account the availability of skilled labor 
        commodities, business and automatic data processing services, 
        related Indian preference and Indian control of education 
        requirements, and any other market factors found to 
        substantially affect the administrative costs and efficiency of 
        each such tribal elementary or secondary educational program 
        studied in order to ensure that all required administrative 
        activities can reasonably be delivered in a cost effective 
        manner for each such program, given an administrative cost 
        allowance generated by the values, percentages, or other 
        factors found in the studies to be relevant in such formula;
            ``(D) identify, and quantify in terms of percentages of 
        direct program costs, any general factors arising from 
        geographic isolation, or numbers of programs administered, 
        independent of program size factors used to compute a base 
        administrative cost percentage in such formula; and
            ``(E) identify any other incremental cost factors 
        substantially affecting the costs of required administrative 
        cost functions at any of the tribal elementary or secondary 
        educational programs studied and determine whether the factors 
        are of general applicability to other such programs, and (if 
        so) how the factors may effectively be incorporated into such 
        formula.
        ``(3) Consultation with inspector general.--In carrying out the 
    studies required under this subsection, the Director shall obtain 
    the input of, and afford an opportunity to participate to, the 
    Inspector General of the Department of the Interior.
        ``(4) Consideration of delivery of administrative services.--
    Determinations described in paragraph (2)(C) shall be based on what 
    is practicable at each location studied, given prudent management 
    practice, irrespective of whether required administrative services 
    were actually or fully delivered at these sites, or whether other 
    services were delivered instead, during the period of the study.
        ``(5) Report.--Upon completion of the studies conducted under 
    paragraph (1), the Director shall submit to Congress a report on 
    the findings of the studies, together with determinations based 
    upon such studies that would affect the definitions set forth under 
    subsection (e) that are used in the formula set forth in subsection 
    (c).
        ``(6) Projection of costs.--The Secretary shall include in the 
    Bureau's justification for each appropriations request beginning in 
    the first fiscal year after the completion of the studies conducted 
    under paragraph (1), a projection of the overall costs associated 
    with the formula set forth in subsection (c) for all tribal 
    elementary or secondary education programs which the Secretary 
    expects to be funded in the fiscal year for which the 
    appropriations are sought.
        ``(7) Determination of program size.--For purposes of this 
    subsection, the size of tribal elementary or secondary educational 
    programs is determined by the aggregate direct cost program funding 
    level for all Bureau-funded programs which share common 
    administrative cost functions.
    ``(j) Authorization of Appropriations.--
        ``(1) In general.--There are authorized to be appropriated to 
    carry out this section such sums as may be necessary.
        ``(2) Reductions.--If the total amount of funds necessary to 
    provide grants to tribes and tribal organizations in the amounts 
    determined under subsection (c) for a fiscal year exceeds the 
    amount of funds appropriated to carry out this section for such 
    fiscal year, the Secretary shall reduce the amount of each grant 
    determined under subsection (c) for such fiscal year by an amount 
    that bears the same relationship to such excess as the amount of 
    such grants determined under subsection (c) bears to the total of 
    all grants determined under subsection (c) section for all tribes 
    and tribal organizations for such fiscal year.
    ``(k) Applicability to Schools Operating Under Tribally Controlled 
Schools Act of 1988.--The provisions of this section shall apply to 
schools operating under the Tribally Controlled Schools Act of 1988.
    ``(l) 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, at the discretion of the Secretary, 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. 1129. DIVISION OF BUDGET ANALYSIS.

    ``(a) Establishment.--Not later than 1 year 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 (hereafter in this section 
referred to 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 tribal school boards, the Director of the Office, through the 
Division, shall conduct studies, surveys, or other activities to gather 
demographic information on Bureau-funded schools and project the amount 
necessary to provide Indian students in such schools the educational 
program set forth in this part.
    ``(c) Annual Reports.--Not later than the date on which the 
Assistant Secretary for Indian Affairs makes the annual budget 
submission, 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 Appropriations committees), all Bureau-funded schools, 
and the tribal governing bodies of such schools, a report that 
contains--
        ``(1) projections, based upon the information gathered pursuant 
    to subsection (b) and any other relevant information, of amounts 
    necessary to provide 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 appropriate.
    ``(d) Use of Reports.--The Director of the Office and the Assistant 
Secretary for Indian Affairs shall use the annual report required by 
subsection (c) when preparing annual budget submissions.

``SEC. 1130. 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 1127. 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 1127 and the allotments of funds for operation 
        and maintenance of facilities, amounts appropriated in an 
        appropriations Act for any fiscal year for such allotments--
                ``(i) 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
                ``(ii) 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 1127, 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 1127, from the 
            remaining 20 percent of such appropriated amounts, adjusted 
            to reflect the actual student attendance.
            ``(C) Overpayments.--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-
        operated school may expend an aggregate of not more than 
        $50,000 of the amount allotted to the school under section 1127 
        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 one such 
            individual at each Bureau facility; and
                ``(iii) the provision of guidelines on the use of this 
            paragraph and adequate training on such guidelines.
        ``(4) Effect of sequestration order.--If a sequestration order 
    issued under the Balanced Budget and Emergency Deficit Control Act 
    of 1985 reduces the amount of funds available for allotment under 
    section 1127 for any fiscal year by more than 7 percent of the 
    amount of funds available for allotment under such section during 
    the preceding fiscal year--
            ``(A) to fund allotments under section 1127, the Secretary, 
        notwithstanding any other law, may use--
                ``(i) funds appropriated for the operation of any 
            Bureau-funded school that is closed or consolidated; and
                ``(ii) funds appropriated for any program that has been 
            curtailed at any Bureau school; and
            ``(B) the Secretary may waive the application of the 
        provisions of section 1121(h) with respect to the closure or 
        consolidation of a school, or the curtailment of a program at a 
        school, during such fiscal year if the funds described in 
        clauses (i) and (ii) of subparagraph (A) with respect to such 
        school are used to fund allotments made under section 1127 for 
        such fiscal year.
    ``(b) Local Financial Plans for Expenditure of Funds.--
        ``(1) Plan required.--Each Bureau-operated school that receives 
    an allotment under section 1127 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.
        ``(2) Requirement.--A local financial plan under paragraph (1) 
    shall comply with all applicable Federal and tribal laws.
        ``(3) Preparation and revision.--
            ``(A) In general.--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.
            ``(B) Authority of school board.--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.
        ``(4) Role of supervisor.--The supervisor of the school--
            ``(A) shall implement the decisions of the school board 
        relating to the financial plan under paragraph (1);
            ``(B) 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; 
        and
            ``(C) 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.
        ``(5) Statements.--
            ``(A) In general.--A copy of each statement filed under 
        paragraph (4)(C) shall be submitted to the local school board 
        and such board shall be afforded an opportunity to respond, in 
        writing, to such appeal.
            ``(B) Overturned actions.--After reviewing such written 
        appeal and response, the appropriate education line officer 
        may, for good cause, overturn the action of the local school 
        board.
            ``(C) Transmission of determination.--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.
    ``(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.--In carrying out this 
section, a local school board may request technical assistance and 
training from the Secretary, and the Secretary shall, to the maximum 
extent practicable, provide those services and make appropriate 
provisions in the budget of the Office for the provision of those 
services.
    ``(e) Summer Program of Academic and Support Services.--
        ``(1) Plan.--
            ``(A) In general.--A financial plan under subsection (b) 
        for a school may include, at the discretion of the local 
        administrator and the school board of such school, a provision 
        for a summer program of academic and support services for 
        students of the school.
            ``(B) Prevention activities.--Any such program may include 
        activities related to the prevention of alcohol and substance 
        abuse.
            ``(C) Summer use.--The Assistant Secretary for Indian 
        Affairs shall provide for the use of any such school facility 
        during any summer in which such use is requested.
        ``(2) Use of other funds.--Notwithstanding any other provision 
    of law, funds authorized under the Act of April 16, 1934, and this 
    Act may be used to augment the services provided in each summer 
    program at the option, and under the control, of the tribe or 
    Indian controlled school receiving such funds.
        ``(3) Technical assistance and program coordination.--The 
    Assistant Secretary for Indian Affairs, acting through the Director 
    of the Office, shall--
            ``(A) provide technical assistance and coordination for any 
        program described in paragraph (1); and
            ``(B) to the extent practicable, encourage the coordination 
        of such programs with any other summer programs that might 
        benefit Indian youth, regardless of the funding source or 
        administrative entity of any such program.
    ``(f) Cooperative Agreements.--
        ``(1) Implementation.--
            ``(A) In general.--From funds allotted to a Bureau school 
        under section 1127, 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.
            ``(B) Terms.--The tribe, the Bureau, the school board, and 
        the local public school district shall determine the terms of 
        an agreement entered into under subparagraph (A).
        ``(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 under 
        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, in a case in which 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) Limitation.--In considering an application from a Bureau-
    funded school for participation in a program or project that 
    requires matching funds, 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 
    paragraph (1).

``SEC. 1131. 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.--
            ``(A) Definition of consultation.--In this subsection, the 
        term `consultation' 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.
            ``(B) Discussion and joint deliberation.--During 
        discussions and joint deliberations, interested parties 
        (including tribes and school officials) shall be given an 
        opportunity--
                ``(i) to present issues (including proposals regarding 
            changes in current practices or programs) that will be 
            considered for future action by the Secretary; and
                ``(ii) 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.
            ``(C) Explanation by secretary.--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 described in subparagraph (B).

``SEC. 1132. INDIAN EDUCATION PERSONNEL.

    ``(a) In General.--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 (as 
defined in subsection (p)).
    ``(b) 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 provide for--
        ``(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 annual leave and sick leave for educators;
        ``(11) the length of the school year applicable to education 
    positions described in subsection (a); and
        ``(12) such additional matters as may be appropriate.
    ``(c) Qualifications of Educators.--
        ``(1) Requirements.--In prescribing regulations to govern the 
    qualifications of educators, the Secretary shall require that--
            ``(A) lists of qualified and interviewed applicants for 
        education positions be maintained in each agency and area 
        office of the Bureau from among individuals who have applied at 
        the agency or area level for an education position or who have 
        applied at the national level and have indicated in such 
        application an interest in working in certain areas or 
        agencies;
            ``(B) a local school board shall have the authority to 
        waive on a case-by-case basis, any formal education or degree 
        qualifications established by regulation pursuant to subsection 
        (b)(2), in order for a tribal member to be hired in an 
        education position to teach courses on tribal culture and 
        language and that subject to subsection (e)(2), a determination 
        by a school board that such a person 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 
        that--
                ``(i) such individual's name appear on a list 
            maintained pursuant to subparagraph (A); or
                ``(ii) 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 do so would result in that position 
    remaining vacant.
    ``(d) 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) 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 (c)(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) 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) 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) 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) 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 in the 
        Bureau.
            ``(B) Determination of accuracy.--If such individual is 
        employed at the local level, such individual's name shall be 
        immediately forwarded to the Secretary, who shall, as soon as 
        practicable but in no event in more than 30 days, ascertain the 
        accuracy of the statement made by such individual pursuant to 
        subparagraph (A).
            ``(C) False statements.--Notwithstanding subsection (e), if 
        the individual's statement is found to have been false, such 
        individual, at the Secretary's discretion, may be disciplined 
        or discharged.
            ``(D) Conditional appointment for national provision.--If 
        the individual has applied at the national level for an 
        education position in the Bureau, the appointment of such 
        individual at the local level shall be conditional for a period 
        of 90 days, during which period the Secretary may appoint a 
        more qualified individual (as determined by the Secretary) from 
        the list maintained at the national level pursuant to 
        subsection (c)(1)(A)(ii) to the position to which such 
        individual was appointed.
        ``(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.--
                ``(i) In general.--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.
                ``(ii) Action by board.--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.
                ``(iii) Overturning of determination.--After reviewing 
            such written appeal and response, the education line 
            officer may, for good cause, overturn the determination of 
            the local school board.
                ``(iv) Transmission of determination.--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.--
                ``(i) In general.--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.
                ``(ii) Action by board.--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.
                ``(iii) Overturning of determination.--After reviewing 
            such written appeal and response, the Director may, for 
            good cause, overturn the determination of the local school 
            board.
                ``(iv) Transmission of determination.--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.--
            ``(A) In general.--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.
            ``(B) Action by board.--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.
            ``(C) Overturning of determination.--After reviewing such 
        written appeal and response, the Director may, for good cause, 
        overturn the determination of the agency school board.
            ``(D) Transmission of determination.--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.
    ``(e) Discharge and Conditions of Employment of Educators.--
        ``(1) Regulations.--In promulgating 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.--
                ``(i) In general.--Except as provided in clause (iii), 
            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.
                ``(ii) Notification of board.--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.
                ``(iii) Determination by board.--If the local school 
            board determines that such educator shall not be 
            discharged, that determination shall be followed by the 
            supervisor.
            ``(B) Appeals.--
                ``(i) In general.--The supervisor shall have the right 
            to appeal to the education line officer of the appropriate 
            agency office of the Bureau a determination by a local 
            school board under subparagraph (A)(iii), as evidenced by 
            school board records, not to discharge an educator.
                ``(ii) Decision of agency education line officer.--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.
                ``(iii) Form of decision.--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.
    ``(f) Applicability of Indian Preference Laws.--
        ``(1) Applicability.--
            ``(A) 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--
                ``(i) grants a written waiver of the application of 
            those laws with respect to the personnel action; and
                ``(ii) states that the waiver is necessary.
            ``(B) No effect on responsibility of bureau.--This 
        paragraph shall not be construed to relieve the responsibility 
        of the Bureau 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.--
                ``(i) In general.--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.
                ``(ii) Exclusion.--The term `Indian preference laws' 
            does 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.
    ``(g) 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.--
                ``(i) In general.--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.
                ``(ii) Essential provisions.--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 a case 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 three equal 
            installments.
                ``(iv) Increases.--In a case in which adoption of rates 
            under clause (i) leads to an increase in the payment of 
            compensation from that which was in effect for the fiscal 
            year following the date of enactment of the Native American 
            Education Improvement Act of 2001, the school board may 
            make such rates applicable at the next contract renewal 
            such that--

                    ``(I) the increase occurs in its entirety; or
                    ``(II) the increase is applied in three equal 
                installments.

            ``(D) Use of regulations; continued employment of certain 
        educators.--The establishment of rates of basic compensation 
        and annual salary rates under subparagraphs (B) and (C) shall 
        not--
                ``(i) 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 the educator; or
                ``(ii) 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 (p) 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 one 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.
    ``(h) Liquidation of Remaining Leave Upon Termination.--Upon 
termination of employment with the Bureau, any annual leave remaining 
to the credit of an individual covered by 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 promulgated pursuant to subsection (b)(10) shall not be so 
liquidated.
    ``(i) Transfer of Remaining Sick Leave Upon Transfer, Promotion, or 
Reemployment.--In the case of any educator who is transferred, 
promoted, or reappointed, without break in service, to a position in 
the Federal Government under a different leave system, any remaining 
leave to the credit of such person earned or credited under the 
regulations promulgated pursuant to subsection (b)(10) shall be 
transferred to such person's credit in the employing agency on an 
adjusted basis in accordance with regulations which shall be 
promulgated by the Office of Personnel Management.
    ``(j) Ineligibility for Employment of Voluntarily Terminated 
Educators.--An educator who voluntarily terminates employment with the 
Bureau before the expiration of the existing employment contract 
between such educator and the Bureau shall not be eligible to be 
employed in another education position in the Bureau during the 
remainder of the term of such contract.
    ``(k) Dual Compensation.--In the case of any educator employed in 
an education position described in subsection (l)(1)(A) who--
        ``(1) is employed at the close of a school year;
        ``(2) agrees in writing to serve in such position for the next 
    school year; and
        ``(3) is employed in another position during the recess period 
    immediately preceding such next school year, or during such recess 
    period receives additional compensation referred to in section 5533 
    of title 5, United States Code, relating to dual compensation,
shall not apply to such educator by reason of any such employment 
during a recess period for any receipt of additional compensation.
    ``(l) Voluntary Services.--
        ``(1) In general.--Notwithstanding section 1342 of title 31, 
    United States Code, the Secretary may, subject to the approval of 
    the local school board concerned, accept voluntary services on 
    behalf of Bureau schools.
        ``(2) Federal employee protection.--Nothing in this part 
    requires Federal employees to work without compensation or allows 
    the use of volunteer services to displace or replace Federal 
    employees.
        ``(3) Federal status.--An individual providing volunteer 
    services under this section is a Federal employee only for purposes 
    of chapter 81 of title 5, United States Code, and chapter 171 of 
    title 28, United States Code.
    ``(m) Proration of Pay.--
        ``(1) Election of employee.--
            ``(A) In general.--Notwithstanding any other provision of 
        law, including laws relating to dual compensation, the 
        Secretary, at the election of the employee, shall prorate the 
        salary of an employee employed in an education position for the 
        academic school year over the entire 12-month period.
            ``(B) Election.--Each educator employed for the academic 
        school year shall annually elect to be paid on a 12-month basis 
        or for those months while school is in session.
            ``(C) No loss of pay or benefits.--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 year the 
    employee may change election once.
        ``(3) Lump sum payment.--That portion of the employee's pay 
    which would be paid between academic school years may be paid in a 
    lump sum at the election of the employee.
        ``(4) Nonapplicability.--This subsection applies to those 
    individuals employed under the provisions of section 1132 of this 
    title or title 5, United States Code.
        ``(5) Definitions.--For purposes of this subsection, the terms 
    `educator' and `education position' have the meanings contained in 
    paragraphs (1) and (2) of subsection (o).
    ``(n) Extracurricular Activities.--
        ``(1) Stipend.--
            ``(A) In general.--Notwithstanding any other provision of 
        law, the Secretary may provide, for each Bureau area, a stipend 
        in lieu of overtime premium pay or compensatory time off.
            ``(B) Provision to employees.--Any employee of the Bureau 
        who performs additional activities to provide services to 
        students or otherwise support the school's academic and social 
        programs may elect to be compensated for all such work on the 
        basis of the stipend.
            ``(C) Nature of 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.
        ``(3) Applicability of subsection.--This subsection applies to 
    all Bureau employees, regardless of whether the employee is 
    employed under section 1132 of this title or title 5, United States 
    Code.
    ``(o) Definitions.--In this section:
        ``(1) Education position.--The term `education position' means 
    a position in the Bureau the duties and responsibilities of which--
            ``(A)(i) are performed on a school year basis principally 
        in a Bureau school; and
            ``(ii) involve--
                ``(I) classroom or other instruction or the supervision 
            or direction of classroom or other instruction;
                ``(II) any activity (other than teaching) which 
            requires academic credits in educational theory and 
            practice equal to the academic credits in educational 
            theory and practice required for a bachelor's degree in 
            education from an accredited institution of higher 
            education;
                ``(III) any activity in or related to the field of 
            education notwithstanding that academic credits in 
            educational theory and practice are not a formal 
            requirement for the conduct of such activity; or
                ``(IV) support services at, or associated with, the 
            site of the school; or
            ``(B) are performed at the agency level of the Bureau and 
        involve the implementation of education-related programs other 
        than the position for agency superintendent for education.
        ``(2) Educator.--The term `educator' means an individual whose 
    services are required, or who is employed, in an education 
    position.
    ``(p) Covered Individuals; Election.--This section shall apply with 
respect to any educator hired after November 1, 1979 (and to any 
educator who elected for coverage under that provision after November 
1, 1979) and to the position in which such individual 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 one 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, the National Council on Teacher 
Quality, or other nationally recognized certification or credentialing 
organizations.

``SEC. 1133. 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. 1134. RECRUITMENT OF INDIAN EDUCATORS.

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

``SEC. 1135. 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, that 
includes--
        ``(1) suggestions for the improvement of the Bureau educational 
    system and for increasing tribal or local Indian control of such 
    system; and
        ``(2) information on the status of tribally controlled 
    community colleges.
    ``(b) Budget Request.--The annual budget request for the education 
programs of the Bureau, 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, based upon the extent to which a 
school described in subsection (a) has complied with the local 
financial plan under section 1130, are conducted of each Bureau-
operated school at least once every 3 years.
    ``(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. 1136. RIGHTS OF INDIAN STUDENTS.

    ``The Secretary shall prescribe such rules and regulations as are 
necessary to ensure the constitutional and civil rights of Indian 
students attending Bureau-funded schools, including such students' 
rights to--
        ``(1) privacy under the laws of the United States;
        ``(2) freedom of religion and expression; and
        ``(3) due process in connection with disciplinary actions, 
    suspensions, and expulsions.

``SEC. 1137. REGULATIONS.

    ``(a) Promulgation.--
        ``(1) In general.--The Secretary may promulgate only such 
    regulations--
            ``(A) as are necessary to ensure compliance with the 
        specific provisions of this part; and
            ``(B) as the Secretary is authorized to promulgate pursuant 
        to section 5211 of the Tribally Controlled Schools Act of 1988 
        (25 U.S.C. 2510).
        ``(2) Publication.--In promulgating the regulations, the 
    Secretary shall--
            ``(A) publish proposed regulations in the Federal Register; 
        and
            ``(B) provide a period of not less than 120 days for public 
        comment and consultation on the regulations.
        ``(3) Citation.--The regulations shall contain, immediately 
    following each regulatory section, a citation to any statutory 
    provision providing authority to promulgate such regulatory 
    section.
    ``(b) Miscellaneous.--The provisions of this Act shall supersede 
any conflicting provisions of law (including any conflicting 
regulations) in effect on the day before the date of enactment of this 
Act and the Secretary is authorized to repeal any regulation 
inconsistent with the provisions of this Act.

``SEC. 1138. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.

    ``(a) Regional Meetings.--Prior to publishing any proposed 
regulations under subsection (b)(1), and prior to establishing the 
negotiated rulemaking committee under subsection (b)(3), 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 promulgated 
under this part and the Tribally Controlled Schools Act of 1988.
    ``(b) 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) Notification to congress.--If draft regulations 
    implementing this part and the Tribally Controlled Schools Act of 
    1988 are not promulgated in final form within 18 months after the 
    date of enactment of the Native American Education Improvement Act 
    of 2001, the Secretary shall notify the appropriate committees of 
    Congress of which draft regulations were not promulgated in final 
    form by the deadline and the reason such final regulations were not 
    promulgated.
        ``(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.).
        ``(4) Special rule.--The Secretary shall carry out this section 
    using the general administrative funds of the Department of the 
    Interior. In accordance with subchapter III of chapter 5 of title 
    5, United States Code, and section 7(d) of the Federal Advisory 
    Committee Act, payment of costs associated with negotiated 
    rulemaking shall include the reasonable expenses of committee 
    members.
    ``(c) Application of Section.--
        ``(1) Supremacy of provisions.--The provisions of this section 
    shall supersede 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. 1139. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

    ``(a) In General.--The Secretary shall provide grants to tribes, 
tribal organizations, and consortia of tribes and tribal organizations 
to fund early childhood development programs that are operated by such 
tribes, organizations, or consortia.
    ``(b) Amount of Grants.--
        ``(1) In general.--The total amount of the grants provided 
    under subsection (a) with respect to each tribe, tribal 
    organization, or consortium of tribes or tribal organizations for 
    each fiscal year shall be equal to the amount which bears the same 
    relationship to the total amount appropriated under the authority 
    of subsection (g) for such fiscal year (less amounts provided under 
    subsection (f)) as--
          ``(A) the total number of children under 6 years of age who 
        are members of--
                ``(i) such tribe;
                ``(ii) the tribe that authorized such tribal 
            organization; or
                ``(iii) any tribe that--

                    ``(I) is a member of such consortium; or
                    ``(II) authorizes any tribal organization that is a 
                member of such consortium; bears to

            ``(B) the total number of all children under 6 years of age 
        who are members of any tribe that--
                ``(i) is eligible to receive funds under subsection 
            (a);
                ``(ii) is a member of a consortium that is eligible to 
            receive such funds; or
                ``(iii) authorizes a tribal organization that is 
            eligible to receive such funds.
        ``(2) Limitation.--No grant may be provided under subsection 
    (a)--
            ``(A) to any tribe that has less than 500 members;
            ``(B) to any tribal organization which is authorized--
                ``(i) by only one tribe that has less than 500 members; 
            or
                ``(ii) by one or more tribes that have a combined total 
            membership of less than 500 members; or
            ``(C) to any consortium composed of tribes, or tribal 
        organizations authorized by tribes, that have a combined total 
        tribal membership of less than 500 members.
    ``(c) Application.--
        ``(1) In general.--A grant may be provided under subsection (a) 
    to a tribe, tribal organization, or consortium of tribes and tribal 
    organizations only if the tribe, organization, or consortium 
    submits to the Secretary an application for the grant at such time 
    and in such form as the Secretary shall prescribe.
        ``(2) Contents.--Applications submitted under paragraph (1) 
    shall set forth the early childhood development program that the 
    applicant desires to operate.
    ``(d) Requirement of Programs Funded.--The early childhood 
development programs that are funded by grants provided under 
subsection (a)--
        ``(1) shall coordinate existing programs and may provide 
    services that meet identified needs of parents and children under 6 
    years of age which are not being met by existing programs, 
    including--
            ``(A) prenatal care;
            ``(B) nutrition education;
            ``(C) health education and screening;
            ``(D) family literacy services;
            ``(E) educational testing; and
            ``(F) other educational services;
        ``(2) may include instruction in the language, art, and culture 
    of the tribe; and
        ``(3) shall provide for periodic assessment of the program.
    ``(e) Coordination of Family Literacy Programs.--Family literacy 
programs operated under this section and other family literacy programs 
operated by the Bureau of Indian Affairs shall be coordinated with 
family literacy programs for Indian children 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, out of funds 
appropriated under subsection (g), include in the grants provided under 
subsection (a) amounts for administrative costs incurred by the tribe, 
tribal organization, or consortium of tribes in establishing and 
maintaining the early childhood development program.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary.

``SEC. 1140. 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 three 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;
        ``(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.
    ``(f) 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.
    ``(g) 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 
(b). 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.
    ``(h) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $2,000,000.

``SEC. 1141. DEFINITIONS.

    ``For the purposes of this part, unless otherwise specified:
        ``(1) Agency school board.--The term `agency school board' 
    means a body--
            ``(A) the members of which are appointed by all of the 
        school boards of the schools located within an agency, 
        including schools operated under contract or grant; and
            ``(B) the number of such members is determined by the 
        Secretary, in consultation with the affected tribes;
    except that, in agencies serving a single school, the school board 
    of such school shall fulfill these duties, and in agencies having 
    schools or a school operated under contract or grant, one such 
    member at least 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 Bureau-
    operated elementary or secondary day or boarding school or a 
    Bureau-operated dormitory for students attending a school other 
    than a Bureau school.
        ``(5) Complementary educational facilities.--The term 
    `complementary educational facilities' means educational program 
    functional spaces such as libraries, gymnasiums, and cafeterias.
        ``(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) Family literacy services.--The term `family literacy 
    services' has the meaning given that term in section 8101 of the 
    Elementary and Secondary Education Act of 1965 (20 U.S.C. 8801).
        ``(10) Financial plan.--The term `financial plan' means a plan 
    of services provided by each Bureau school.
        ``(11) 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.
        ``(12) Inherently federal functions.--The term `inherently 
    Federal functions' means functions and responsibilities which, 
    under section 1126(c), are noncontractable, 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 nondelegable statutory duties of the Secretary 
        relating to trust resources.
        ``(13) 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.
        ``(14) 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.
        ``(15) Office.--The term `Office' means the Office of Indian 
    Education Programs within the Bureau.
        ``(16) Regulation.--
            ``(A) In general.--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.
            ``(B) Rule of construction.--Nothing in subparagraph (A) or 
        any other provision of this title shall be construed to 
        prohibit the Secretary from issuing guidance, internal 
        directives, or other documents similar to the documents found 
        in the Indian Affairs Manual of the Bureau of Indian Affairs.
        ``(17) Secretary.--The term `Secretary' means the Secretary of 
    the Interior.
        ``(18) Supervisor.--The term `supervisor' means the individual 
    in the position of ultimate authority at a Bureau school.
        ``(19) 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.
        ``(20) 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.''.

SEC. 1043. TRIBALLY CONTROLLED SCHOOLS ACT OF 1988.

    The Tribally Controlled Schools Act of 1988 (25 U.S.C. 2501 et 
seq.) is amended by striking sections 5202 through 5212 and inserting 
the following new sections:

``SEC. 5202. DECLARATION OF POLICY.

    ``(a) Recognition.--Congress recognizes that 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 toward tribal and 
community control and that the United States has an obligation to 
assure 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 for the 
education of Indian children 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 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 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) 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;
        ``(2) that Indian people have special and unique educational 
    needs, including the need for programs to meet the linguistic and 
    cultural aspirations of Indian tribes and communities; and
        ``(3) that those 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. 5203. 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 the schools as contract schools;
            ``(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 under this part and submit applications 
        (which are approved by their tribal governing bodies) to the 
        Secretary for such grants.
        ``(2) Deposit of funds.--Grants 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) In general.--Except as otherwise provided in this 
        paragraph, grants 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 any 
        funds that compose the grant may be used under the laws 
        described in section 5205(a), including expenditures for--
                ``(i) school operations, academic, educational, 
            residential, guidance and counseling, and administrative 
            purposes; and
                ``(ii) support services for the school, including 
            transportation.
            ``(B) Exception.--Grants 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).
    ``(b) Limitations.--
        ``(1) One grant per tribe or organization per fiscal year.--Not 
    more than one grant may be provided under this part with respect to 
    any Indian tribe or tribal organization for any fiscal year.
        ``(2) Nonsectarian use.--Funds provided under any grant made 
    under this part may not be used in connection with religious 
    worship or sectarian instruction.
        ``(3) Administrative costs limitation.--Funds provided under 
    any grant under this part may not be expended for administrative 
    costs (as defined in section 1128(h)(1) of the Education Amendments 
    of 1978) in excess of the amount generated for such costs under 
    section 1128 of such Act.
    ``(c) Limitation on Transfer of Funds Among School Sites.--
        ``(1) In general.--In the case of a grantee that operates 
    schools at more than one school site, the grantee may expend at any 
    school site operated by the grantee not more than the lesser of--
            ``(A) 10 percent of the funds allocated for another school 
        site under section 1128 of the Education Amendments of 1978; or
            ``(B) $400,000 of the funds allocated for another school 
        site.
        ``(2) Definition of school site.--For purposes of 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 discreet student count is identified under 
    the funding formula established under section 1127 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. Such applications and the timing of 
such applications shall be strictly voluntary. Nothing in this part may 
be construed as allowing or requiring any grant with any entity other 
than the entity to which the grant is provided.
    ``(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 a 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 upon 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 is to status as 
    a Bureau-operated school or as a school operated under contract 
    under the Indian Self-Determination and Education Assistance Act.
        ``(3) Transfer of equipment and materials.--Except as otherwise 
    determined by the Secretary, the tribe or tribal organization 
    operating the program to be retroceded must transfer to the 
    Secretary (or to the tribe or tribal organization which will 
    operate the program as a contract school) the existing equipment 
    and materials which were acquired--
            ``(A) with assistance under this part; or
            ``(B) upon assumption of operation of the program under 
        this part, if the school was a Bureau-funded school under title 
        XI of the Education Amendments of 1978 before receiving 
        assistance under this part.
    ``(g) 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. 5204. COMPOSITION OF GRANTS.

    ``(a) In General.--The 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 1127 and 1128 of the Education Amendments of 1978 
    with respect to the tribally controlled schools eligible for 
    assistance under this part which are operated by such Indian tribe 
    or tribal organization, including, but not limited to, funds 
    provided under such sections, or under any other provision of law, 
    for transportation costs;
        ``(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 Act, or any other provision of law, other 
    facilities accounts for such schools for such fiscal year 
    (including but not limited to those referenced under section 
    1126(d) of the Education Amendments of 1978 or any other law); and
        ``(3) the total amount of funds that are allocated to such 
    schools 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, that are allocated 
        to such schools for such fiscal year.
    ``(b) Special Rules.--
        ``(1) In general.--
            ``(A) Applicability of certain laws.--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) Applicability of bureau provisions.--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 1126(e), 1127, and 1128 of the Education Amendments 
    of 1978.
        ``(3) Schools considered bureau schools.--Tribally controlled 
    schools for which grants are provided under this chapter 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.--
                ``(i) In general.--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.
                ``(ii) Submission of accounting.--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.
                ``(iii) Use of funds.--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.
                ``(iv) Completion of project.--Upon completion of a 
            project for which a separate account is established under 
            this paragraph, the portion of the grant related to such 
            project may be closed out upon agreement by the grantee and 
            the Secretary.
            ``(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 ensuring 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.--In a case in which 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. 5205. 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 a school for which the Bureau has not provided 
        funds, but which 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 which has met the 
        requirements of subsection (b).
        ``(2) New schools.--Any application which has been submitted 
    under the Indian Self-Determination and Education Assistance Act by 
    an Indian tribe for a school which 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) In general.--By not later than the date that is 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 which 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) Other determinations.--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.
            ``(C) Considerations.--In considering applications 
        submitted under paragraph (1)(A), the Secretary shall 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 Which Is Not a Bureau-
Funded School.--
        ``(1) In general.--A school which 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 a school is 
        eligible for assistance under this part.
        ``(2) Deadline for determination by secretary.--
            ``(A) In general.--By not later than the date that is 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) Considerations.--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 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 these services 
                for the proposed population to be served, as determined 
                from all factors including, if relevant, standardized 
                examination performance.

            ``(C) Geographic proximity.--The Secretary may not make a 
        determination under this paragraph that is primarily based upon 
        the geographic proximity of comparable public education.
            ``(D) Other information.--Applications 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 
        appropriate.
            ``(E) Deadline.--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, the Secretary shall be 
        treated as having made a determination that the tribally 
        controlled school is eligible for assistance under the title 
        and 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.--All applications and reports submitted to 
    the Secretary under this part, and any amendments to such 
    applications or reports, 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 such filing occurs shall, for purposes of this part, be 
    treated as the date on which the application or amendment was 
    submitted to the Secretary.
        ``(2) Supporting documentation.--Any application that is 
    submitted under this chapter shall be accompanied by a document 
    indicating the action taken by the tribal governing body in 
    authorizing such application.
    ``(e) Effective Date for Approved Applications.--Except as provided 
by subsection (c)(2)(E), a grant provided under this part, and any 
transfer of the operation of a Bureau school made under subsection (b), 
shall become effective beginning the academic year succeeding the 
fiscal year in which the application for the grant or transfer is made, 
or at an earlier date determined by the Secretary.
    ``(f) Denial of Applications.--
        ``(1) In general.--Whenever the Secretary refuses to approve a 
    grant under this chapter, to transfer operation 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 within the allotted time;
            ``(B) provide assistance to the tribe or tribal 
        organization to overcome all stated objections;
            ``(C) at the request of the tribe or tribal organization, 
        provide the tribe or tribal organization a hearing on the 
        record under the same rules and regulations that apply under 
        the Indian Self-Determination and Education Assistance Act; and
            ``(D) provide an opportunity to appeal the objection 
        raised.
        ``(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.
    ``(g) Report.--The Bureau shall submit an annual report to the 
Congress on all applications received, and actions taken (including the 
costs associated with such actions), under this section at the same 
time that the President is required to submit to Congress the budget 
under section 1105 of title 31, United States Code.

``SEC. 5206. 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 5205, 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 shall complete an annual report which shall be limited 
    to--
            ``(A) an annual financial statement reporting revenue and 
        expenditures as defined by the cost accounting established by 
        the grantee;
            ``(B) an annual financial audit conducted pursuant to the 
        standards of the Single Audit Act of 1984;
            ``(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 of the number 
        of students served and a brief description of programs offered 
        under 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.--Where appropriate, other 
    tribally controlled schools and representatives of tribally 
    controlled community colleges shall make up members of the 
    evaluation review teams.
        ``(3) Evaluations.--In the case of a school which is 
    accredited, evaluations will be conducted at intervals under the 
    terms of accreditation.
        ``(4) Submission of report.--
            ``(A) To tribal governing body.--Upon completion of the 
        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 (as 
        defined in section 1132(f) of the Education Amendments of 1978) 
        of the tribally controlled school.
            ``(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) Determination of eligibility for assistance.--The 
    Secretary shall 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 one of the following clauses applies with 
        respect to the school:
                ``(i) The school is certified or accredited by a State 
            or regional accrediting association or is a candidate in 
            good standing for such accreditation under the rules of the 
            State or regional accrediting association, showing that 
            credits achieved by the students within the education 
            programs 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 regional or State accreditation 
            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 shall 
    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 and 
        the tribal governing body (within the meaning of section 1141 
        of the Education Amendments of 1978) of the tribally controlled 
        school which states--
                ``(i) the specific deficiencies that led to the 
            revocation or resumption determination; and
                ``(ii) the actions that are needed to remedy such 
            deficiencies; and
            ``(B) affords such authority an opportunity to effect 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 
5208(b).--With respect to a tribally controlled school that receives 
assistance under this part pursuant to an election made under section 
5208(b)--
        ``(1) subsection (b) of this section shall apply; and
        ``(2) the Secretary may not revoke eligibility for assistance 
    under this part except in conformance with subsection (c) of this 
    section.

``SEC. 5207. PAYMENT OF GRANTS; INVESTMENT OF FUNDS.

    ``(a) Payments.--
        ``(1) In general.--Except as otherwise provided in this 
    subsection, the Secretary shall make payments to grantees under 
    this part in two payments, of which--
            ``(A) the first payment shall be made not later than July 1 
        of each year in an amount equal to 80 percent of the amount 
        which the grantee was entitled to receive during the preceding 
        academic year; and
            ``(B) the second payment, consisting of the remainder to 
        which the grantee is entitled for the academic year, shall be 
        made not later than December 1 of each year.
        ``(2) Excess funding.--In a case in which the amount provided 
    to a grant recipient under paragraph (1)(A) 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 paragraph shall be distributed 
    equally to all schools in the system.
        ``(3) Newly funded schools.--For any school for which no 
    payment under this part was made from Bureau funds in the preceding 
    academic year, full payment of the amount computed for the first 
    academic year of eligibility under this part shall be made not 
    later than December 1 of the academic year.
        ``(4) Late funding.--With regard to funds for grantees that 
    become available for obligation on October 1 of the fiscal year for 
    which such funds are appropriated, the Secretary shall make 
    payments to grantees not later than December 1 of the fiscal year.
        ``(5) 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 by paragraphs (1), (3), 
    and (4).
        ``(6) Restrictions.--Paragraphs (1), (3), and (4) shall be 
    subject to any restriction on amounts of payments under this part 
    that are 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 to any funds provided under this 
    part after such funds are paid to the 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 and 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, under any provision of Federal law. Such 
    interest income shall be spent on behalf of the school.
        ``(2) Permissible investments.--Funds provided under this part 
    may be invested by the Indian tribe or tribal organization before 
    such funds are expended for the purposes of this part so long as 
    such funds are--
            ``(A) invested by the Indian tribe or tribal organization 
        only in obligations of the United States, or in obligations or 
        securities that are guaranteed or insured by the United States, 
        or mutual (or other) funds registered with the Securities and 
        Exchange Commission and which 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 insure by and 
        agency or instrumentality of the United States, or are fully 
        collateralized to ensure protection of the funds, even in the 
        event of a bank failure.
    ``(c) Recoveries.--For the purposes of underrecovery and 
overrecovery determinations by any Federal agency for any other funds, 
from whatever source derived, funds received under this part shall not 
be taken into consideration.

``SEC. 5208. 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:
        ``(1) Section 5(f) (relating to single agency audit).
        ``(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 allowances).
        ``(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) Section 108(c) (Model Agreements provisions (1)(a)(5) 
    (relating to limitations of costs), (1)(a)(7) (relating to records 
    and monitoring), (1)(a)(8) (relating to property), and (a)(1)(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.--Contractors for activities to which this 
    part applies who have 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 have the provisions of this part apply to such activity in 
    lieu of such contract.
        ``(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 it 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 it 
        were contracting under the Indian Self-Determination and 
        Education Assistance Act.
        ``(2) Funds.--Any tribe or tribal organization which assumes 
    operation of a Bureau school with assistance under this part and 
    any tribe or tribal organization which elects to operate a school 
    with assistance under this part rather that to continue as a 
    contract school shall be entitled to any funds which would 
    carryover from the previous fiscal year as if such school were 
    operated as a contract school.
        ``(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.--Any exception or problem 
cited in an audit conducted pursuant to section 5206(b)(1), any dispute 
regarding a grant authorized to be made pursuant to this part or any 
amendment to such grant, and any dispute involving an administrative 
cost grant under section 1128 of the Education Amendments of 1978 shall 
be administered under the provisions governing such exceptions, 
problems, or disputes in the case of contracts under the Indian Self-
Determination and Education Assistance Act. The Equal Access to Justice 
Act shall apply to administrative appeals filed after September 8, 
1988, by grantees regarding a grant under this part, including an 
administrative cost grant.

``SEC. 5209. ROLE OF THE DIRECTOR.

    ``Applications for grants under this part, and all application 
modifications, shall be reviewed and approved by personnel under the 
direction and control of the Director of the Office of Indian Education 
Programs. Required reports shall be submitted to education personnel 
under the direction and control of the Director of such Office.

``SEC. 5210. 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. 5211. 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. 5212. 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 1127(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 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.
        ``(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 one 
        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. 1044. 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. 1045. ENROLLMENT AND GENERAL ASSISTANCE PAYMENTS.

    Section 5404(a) of the Augustus F. Hawkins-Robert T. Stafford 
Elementary and Secondary School Improvement Amendments 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.''.

                  PART E--HIGHER EDUCATION ACT OF 1965

SEC. 1051. PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY.

    Title II of the Higher Education Act of 1965 (20 U.S.C. 1021 et 
seq.) is amended--
        (1) by striking the title heading and inserting the following:

                ``TITLE II--TEACHER QUALITY ENHANCEMENT

      ``PART A--TEACHER QUALITY ENHANCEMENT GRANTS FOR STATES AND 
                            PARTNERSHIPS'';

        (2) by striking ``this title'' each place it appears and 
    inserting ``this part''; and
        (3) by adding at the end the following:

       ``PART B--PREPARING TOMORROW'S TEACHERS TO USE TECHNOLOGY

``SEC. 221. PURPOSE AND PROGRAM AUTHORITY.

    ``(a) Purpose.--It is the purpose of this part to assist consortia 
of public and private entities--
        ``(1) to carry out programs that prepare prospective teachers 
    to use advanced technology to prepare all students to meet 
    challenging State and local academic content and student academic 
    achievement standards; and
        ``(2) to improve the ability of institutions of higher 
    education to carry out such programs.
    ``(b) Program Authority.--
        ``(1) In general.--The Secretary is authorized to award grants 
    to eligible applicants, or enter into contracts or cooperative 
    agreements with eligible applicants, on a competitive basis in 
    order to pay for the Federal share of the cost of 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, or 
    enter into contracts or cooperative agreements, under this part for 
    periods that are not more than 5 years in duration.

``SEC. 222. ELIGIBILITY.

    ``(a) Eligible Applicants.--In order to receive a grant or enter 
into a contract or cooperative agreement under this part, an applicant 
shall be a consortium that includes the following:
        ``(1) At least one institution of higher education that awards 
    baccalaureate degrees and prepares teachers for their initial entry 
    into teaching.
        ``(2) At least one State educational agency or local 
    educational agency.
        ``(3) One or more of the following entities:
            ``(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 (as defined 
        in section 201(b)) 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 a grant or 
enter into a contract or cooperative agreement under this part, 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 the following:
        ``(1) A description of the proposed project, including how the 
    project would--
            ``(A) ensure that individuals participating in the project 
        would be prepared to use advanced technology to prepare all 
        students, including groups of students who are underrepresented 
        in technology-related fields and groups of students who are 
        economically disadvantaged, to meet challenging State and local 
        academic content and student academic achievement standards; 
        and
            ``(B) improve the ability of at least one participating 
        institution of higher education described in section 222(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 
    participate in project activities.
        ``(4) A description of how the proposed project will be 
    continued after Federal funds are no longer awarded under this part 
    for the project.
        ``(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 part 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 part 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. 223. USE OF FUNDS.

    ``(a) Required Uses.--A consortium that receives a grant or enters 
into a contract or cooperative agreement under this part shall use 
funds made available under this part for--
        ``(1) a project creating one or more programs that prepare 
    prospective teachers to use advanced technology to prepare all 
    students, including groups of students who are underrepresented in 
    technology-related fields and groups of students who are 
    economically disadvantaged, to meet challenging State and local 
    academic content and student academic achievement standards; and
        ``(2) evaluating the effectiveness of the project.
    ``(b) Permissible Uses.--The consortium may use funds made 
available under this part for a project, described in the application 
submitted by the consortium under this part, that carries out the 
purpose of this part, such as the following:
        ``(1) Developing and implementing high-quality teacher 
    preparation programs that enable educators--
            ``(A) to learn the full range of resources that can be 
        accessed through the use of technology;
            ``(B) to integrate a variety of technologies into curricula 
        and instruction in order to expand students' knowledge;
            ``(C) to evaluate educational technologies and their 
        potential for use in instruction;
            ``(D) to help students develop their technical skills; and
            ``(E) to use technology to collect, manage, and analyze 
        data to improve teaching and decisionmaking.
        ``(2) Developing alternative teacher development paths that 
    provide elementary schools and secondary schools with well-
    prepared, technology-proficient educators.
        ``(3) Developing achievement-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.
        ``(6) Subject to section 222(c)(2), acquiring technology 
    equipment, networking capabilities, infrastructure, software, and 
    digital curricula to carry out the project.

``SEC. 224. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for each of fiscal years 2002 and 
2003.''.

SEC. 1052. CONTINUATION OF AWARDS.

    Notwithstanding any other provision of this Act or the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.), in the 
case of a person or entity that was awarded a grant, relating to 
preparing tomorrow's teachers to use technology, that was made pursuant 
to section 3122 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6832) prior to the date of enactment of this Act, the 
Secretary of Education shall continue to provide funds in accordance 
with the terms of such award until the date on which the award period 
terminates.

                PART F--GENERAL EDUCATION PROVISIONS ACT

SEC. 1061. STUDENT PRIVACY, PARENTAL ACCESS TO INFORMATION, AND 
              ADMINISTRATION OF CERTAIN PHYSICAL EXAMINATIONS TO 
              MINORS.

    Section 445(b) of the General Education Provisions Act (20 U.S.C. 
1232h(b)) is amended--
        (1) by striking paragraphs (1) through (7) and inserting the 
    following new paragraphs:
        ``(1) political affiliations or beliefs of the student or the 
    student's parent;
        ``(2) mental or psychological problems of the student or the 
    student's family;
        ``(3) sex behavior or attitudes;
        ``(4) illegal, anti-social, self-incriminating, or demeaning 
    behavior;
        ``(5) critical appraisals of other individuals with whom 
    respondents have close family relationships;
        ``(6) legally recognized privileged or analogous relationships, 
    such as those of lawyers, physicians, and ministers;
        ``(7) religious practices, affiliations, or beliefs of the 
    student or student's parent; or
        ``(8) income (other than that required by law to determine 
    eligibility for participation in a program or for receiving 
    financial assistance under such program),'';
        (2) by redesignating subsections (c) through (e) as subsections 
    (d) through (f), respectively; and
        (3) by inserting after subsection (b) the following new 
    subsection:
    ``(c) Development of Local Policies Concerning Student Privacy, 
Parental Access to Information, and Administration of Certain Physical 
Examinations to Minors.--
        ``(1) Development and Adoption of Local Policies.--Except as 
    provided in subsections (a) and (b), a local educational agency 
    that receives funds under any applicable program shall develop and 
    adopt policies, in consultation with parents, regarding the 
    following:
            ``(A)(i) The right of a parent of a student to inspect, 
        upon the request of the parent, a survey created by a third 
        party before the survey is administered or distributed by a 
        school to a student; and
            ``(ii) any applicable procedures for granting a request by 
        a parent for reasonable access to such survey within a 
        reasonable period of time after the request is received.
            ``(B) Arrangements to protect student privacy that are 
        provided by the agency in the event of the administration or 
        distribution of a survey to a student containing one or more of 
        the following items (including the right of a parent of a 
        student to inspect, upon the request of the parent, any survey 
        containing one or more of such items):
                ``(i) Political affiliations or beliefs of the student 
            or the student's parent.
                ``(ii) Mental or psychological problems of the student 
            or the student's family.
                ``(iii) Sex behavior or attitudes.
                ``(iv) Illegal, anti-social, self-incriminating, or 
            demeaning behavior.
                ``(v) Critical appraisals of other individuals with 
            whom respondents have close family relationships.
                ``(vi) Legally recognized privileged or analogous 
            relationships, such as those of lawyers, physicians, and 
            ministers.
                ``(vii) Religious practices, affiliations, or beliefs 
            of the student or the student's parent.
                ``(viii) Income (other than that required by law to 
            determine eligibility for participation in a program or for 
            receiving financial assistance under such program).
            ``(C)(i) The right of a parent of a student to inspect, 
        upon the request of the parent, any instructional material used 
        as part of the educational curriculum for the student; and
            ``(ii) any applicable procedures for granting a request by 
        a parent for reasonable access to instructional material within 
        a reasonable period of time after the request is received.
            ``(D) The administration of physical examinations or 
        screenings that the school or agency may administer to a 
        student.
            ``(E) The collection, disclosure, or use of personal 
        information collected from students for the purpose of 
        marketing or for selling that information (or otherwise 
        providing that information to others for that purpose), 
        including arrangements to protect student privacy that are 
        provided by the agency in the event of such collection, 
        disclosure, or use.
            ``(F)(i) The right of a parent of a student to inspect, 
        upon the request of the parent, any instrument used in the 
        collection of personal information under subparagraph (E) 
        before the instrument is administered or distributed to a 
        student; and
            ``(ii) any applicable procedures for granting a request by 
        a parent for reasonable access to such instrument within a 
        reasonable period of time after the request is received.
        ``(2) Parental notification.--
            ``(A) Notification of policies.--The policies developed by 
        a local educational agency under paragraph (1) shall provide 
        for reasonable notice of the adoption or continued use of such 
        policies directly to the parents of students enrolled in 
        schools served by that agency. At a minimum, the agency shall--
                ``(i) provide such notice at least annually, at the 
            beginning of the school year, and within a reasonable 
            period of time after any substantive change in such 
            policies; and
                ``(ii) offer an opportunity for the parent (and for 
            purposes of an activity described in subparagraph (C)(i), 
            in the case of a student of an appropriate age, the 
            student) to opt the student out of participation in an 
            activity described in subparagraph (C).
            ``(B) Notification of specific events.--The local 
        educational agency shall directly notify the parent of a 
        student, at least annually at the beginning of the school year, 
        of the specific or approximate dates during the school year 
        when activities described in subparagraph (C) are scheduled, or 
        expected to be scheduled.
            ``(C) Activities requiring notification.--The following 
        activities require notification under this paragraph:
                ``(i) Activities involving the collection, disclosure, 
            or use of personal information collected from students for 
            the purpose of marketing or for selling that information 
            (or otherwise providing that information to others for that 
            purpose).
                ``(ii) The administration of any survey containing one 
            or more items described in clauses (i) through (viii) of 
            paragraph (1)(B).
                ``(iii) Any nonemergency, invasive physical examination 
            or screening that is--

                    ``(I) required as a condition of attendance;
                    ``(II) administered by the school and scheduled by 
                the school in advance; and
                    ``(III) not necessary to protect the immediate 
                health and safety of the student, or of other students.

        ``(3) Existing policies.--A local educational agency need not 
    develop and adopt new policies if the State educational agency or 
    local educational agency has in place, on the date of enactment of 
    the No Child Left Behind Act of 2001, policies covering the 
    requirements of paragraph (1). The agency shall provide reasonable 
    notice of such existing policies to parents and guardians of 
    students, in accordance with paragraph (2).
        ``(4) Exceptions.--
            ``(A) Educational products or services.--Paragraph (1)(E) 
        does not apply to the collection, disclosure, or use of 
        personal information collected from students for the exclusive 
        purpose of developing, evaluating, or providing educational 
        products or services for, or to, students or educational 
        institutions, such as the following:
                ``(i) College or other postsecondary education 
            recruitment, or military recruitment.
                ``(ii) Book clubs, magazines, and programs providing 
            access to low-cost literary products.
                ``(iii) Curriculum and instructional materials used by 
            elementary schools and secondary schools.
                ``(iv) Tests and assessments used by elementary schools 
            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 the aggregate data from such tests and assessments.
                ``(v) The sale by students of products or services to 
            raise funds for school-related or education-related 
            activities.
                ``(vi) Student recognition programs.
            ``(B) State law exception.--The provisions of this 
        subsection--
                ``(i) shall not be construed to preempt applicable 
            provisions of State law that require parental notification; 
            and
                ``(ii) do not apply to any physical examination or 
            screening that is permitted or required by an applicable 
            State law, including physical examinations or screenings 
            that are permitted without parental notification.
        ``(5) General provisions.--
            ``(A) Rules of construction.--
                ``(i) This section does not supersede section 444.
                ``(ii) Paragraph (1)(D) does not apply to a survey 
            administered to a student in accordance with the 
            Individuals with Disabilities Education Act (20 U.S.C. 1400 
            et seq.).
            ``(B) Student rights.--The rights provided to parents under 
        this section transfer to the student when the student turns 18 
        years old, or is an emancipated minor (under an applicable 
        State law) at any age.
            ``(C) Information activities.--The Secretary shall annually 
        inform each State educational agency and each local educational 
        agency of the educational agency's obligations under this 
        section and section 444.
            ``(D) Funding.--A State educational agency or local 
        educational agency may use funds provided under part A of title 
        V of the Elementary and Secondary Education Act of 1965 to 
        enhance parental involvement in areas affecting the in-school 
        privacy of students.
        ``(6) Definitions.--As used in this subsection:
            ``(A) Instructional material.--The term `instructional 
        material' means instructional content that is provided to a 
        student, regardless of its format, including printed or 
        representational materials, audio-visual materials, and 
        materials in electronic or digital formats (such as materials 
        accessible through the Internet). The term does not include 
        academic tests or academic assessments.
            ``(B) Invasive physical examination.--The term `invasive 
        physical examination' means any medical examination that 
        involves the exposure of private body parts, or any act during 
        such examination that includes incision, insertion, or 
        injection into the body, but does not include a hearing, 
        vision, or scoliosis screening.
            ``(C) Local educational agency.--The term `local 
        educational agency' means an elementary school, secondary 
        school, school district, or local board of education that is 
        the recipient of funds under an applicable program, but does 
        not include a postsecondary institution.
            ``(D) Parent.--The term `parent' includes a legal guardian 
        or other person standing in loco parentis (such as a 
        grandparent or stepparent with whom the child lives, or a 
        person who is legally responsible for the welfare of the 
        child).
            ``(E) Personal information.--The term `personal 
        information' means individually identifiable information 
        including--
                ``(i) a student or parent's first and last name;
                ``(ii) a home or other physical address (including 
            street name and the name of the city or town);
                ``(iii) a telephone number; or
                ``(iv) a Social Security identification number.
            ``(F) Student.--The term `student' means any elementary 
        school or secondary school student.
            ``(G) Survey.--The term `survey' includes an evaluation.''.

SEC. 1062. TECHNICAL CORRECTIONS.

    The General Education Provisions Act (20 U.S.C. 1221 et seq.) is 
amended as follows:
        (1) Section 431.--Section 422 (the second place it appears) (20 
    U.S.C. 1231a), relating to collection and dissemination of 
    information, is redesignated as section 431.
        (2) Section 441.--Section 3501(c) of the Augustus F. Hawkins-
    Robert T. Stafford Elementary and Secondary School Improvement 
    Amendments of 1988 (102 Stat. 357) is amended by striking ``through 
    `such Act)''' and inserting ``through `Act of 1965''', effective as 
    of the date of enactment of that law.
        (3) Section 444.--Section 444 (20 U.S.C. 1232g) is amended--
            (A) in subsection (a)(1), by moving subparagraph (B) four 
        ems to the left;
            (B) in subsection (b)(1)(J), by moving subparagraph (J)(i) 
        and clause (ii) of subparagraph (J) each two ems to the left;
            (C) in the undesignated text following subsection 
        (b)(1)(J)(ii), by striking ``clause (E)'' and inserting 
        ``subparagraph (E)''; and
            (D) in subsection (b), by moving paragraph (7)(A) and 
        subparagraph (B) of paragraph (7) each two ems to the left.
        (4) Section 447.--Section 447(b) (20 U.S.C. 1232j(b)) is 
    amended by striking ``et seq.''.
        (5) Section 475.--Section 475(b)(2) (20 U.S.C. 1235d) is 
    amended by striking ``section 4703(3)'' and inserting ``section 
    473(3)''.
        (6) Section 477.--Section 477 (20 U.S.C. 1235f) is amended by 
    striking ``section 4702'' and inserting ``472''.

                  PART G--MISCELLANEOUS OTHER STATUTES

SEC. 1071. TITLE 5 OF THE UNITED STATES CODE.

    (a) Compensation.--Section 5314 of title 5, United States Code, is 
amended by adding at the end the following:
        ``Under Secretary of Education''.
    (b) Effective Date.--This section shall take effect on the first 
day of the first pay period on or after the date of enactment of this 
Act.

SEC. 1072. DEPARTMENT OF EDUCATION ORGANIZATION ACT.

    (a) Coordinator for the Outlying Areas.--Title II of the Department 
of Education Organization Act (20 U.S.C. 3411 et seq.) is amended by 
adding at the end the following new section:

                   ``coordinator for the outlying areas

    ``Sec. 220. (a) Establishment.--The Secretary shall designate an 
office of the Department to coordinate the activities of the Department 
as they relate to the outlying areas.
    ``(b) Appointment.--Not later than 90 days after the date of 
enactment of the No Child Left Behind Act of 2001, the head of the 
office designated under subsection (a) shall appoint a coordinator for 
the outlying areas, who shall be a person with substantial experience 
in the operation of Federal programs in the outlying areas.
    ``(c) Duties.--The coordinator for the outlying areas shall--
        ``(1) serve as the principal advisor to the Department on 
    Federal matters affecting the outlying areas;
        ``(2) evaluate, on a periodic basis, the needs of education 
    programs in the outlying areas;
        ``(3) assist with the coordination of programs that serve the 
    outlying areas; and
        ``(4) provide guidance to programs within the Department that 
    serve the outlying areas.
    ``(d) Outlying Areas Defined.--As used in this section, the term 
`outlying areas' includes Guam, the Virgin Islands, American Samoa, and 
the Commonwealth of the Northern Marianas Islands, but does not include 
the freely associated states of the Republic of the Marshall Islands, 
the Federated States of Micronesia, and the Republic of Palau.''.
    (b) Renaming of Office.--The Department of Education Organization 
Act (20 U.S.C. 3401 et seq.) is amended by striking ``Office of 
Bilingual Education and Minority Languages Affairs'' and ``Office of 
Bilingual Education'' each place either such term appears and inserting 
``Office of English Language Acquisition, Language Enhancement, and 
Academic Achievement for Limited English Proficient Students''.
    (c) Clerical Amendments.--The Department of Education Organization 
Act (20 U.S.C. 3401 et seq.) is amended as follows:
        (1) Table of contents.--The table of contents in section 1 (20 
    U.S.C. 3401 note) is amended--
            (A) by amending the item relating to section 209 to read as 
        follows:
``Sec. 209. Office of English Language Acquisition, Language 
          Enhancement, and Academic Achievement for Limited English 
          Proficient Students.'';

            (B) by amending the item relating to section 216 to read as 
        follows:
``Sec. 216. Office of English Language Acquisition, Language 
          Enhancement, and Academic Achievement for Limited English 
          Proficient Students.''; and

            (C) by inserting after the item relating to section 217 the 
        following new items:
``Sec. 218. Office of Educational Technology.
``Sec. 219. Liaison for Proprietary Institutions of Higher Education.
``Sec. 220. Coordinator for the Outlying Areas.''.

        (2) Section headings.--
            (A) Section 209.--The section heading for section 209 of 
        the Department of Education Organization Act (20 U.S.C. 3420) 
        is amended to read as follows:

   ``office of english language acquisition, language enhancement, and 
    academic achievement for limited english proficient students''.

            (B) Section 216.--The section heading for section 216 of 
        the Department of Education Organization Act (20 U.S.C. 3423d) 
        is amended to read as follows:

``SEC. 216. OFFICE OF ENGLISH LANGUAGE ACQUISITION, LANGUAGE 
              ENHANCEMENT, AND ACADEMIC ACHIEVEMENT FOR LIMITED ENGLISH 
              PROFICIENT STUDENTS.''.

    (d) Conforming amendments.--Sections 209 and 216 of the Department 
of Education Organization Act (20 U.S.C. 3420, 3423d) are amended by 
striking ``Director of Bilingual Education and Minority Languages 
Affairs'' each place such term appears and inserting ``Director of 
English Language Acquisition, Language Enhancement, and Academic 
Achievement for Limited English Proficient Students''.
    (e) Technical Corrections.--
        (2) Section 202.--Paragraph (3) of section 202(b) (20 U.S.C. 
    3412(b)(3)), relating to the Assistant Secretary for Educational 
    Research and Improvement (as added by section 913(2) of the Goals 
    2000: Educate America Act (108 Stat. 223)), is redesignated as 
    paragraph (4).
        (3) Section 218.--Section 216 (the second place it appears) (20 
    U.S.C. 3425), relating to the Office of Educational Technology (as 
    added by section 233(a) of the Goals 2000: Educate America Act (108 
    Stat. 154), is redesignated as section 218.

SEC. 1073. EDUCATION FLEXIBILITY PARTNERSHIP ACT OF 1999.

    Section 4(b) of the Education Flexibility Partnership Act of 1999 
(20 U.S.C. 5891b(b)) is amended to read as follows:
    ``(b) Included Programs.--The statutory or regulatory requirements 
referred to in subsection (a)(1)(A) are any such requirements for 
programs that are authorized under the following provisions and under 
which the Secretary provides funds to State educational agencies on the 
basis of a formula:
        ``(1) The following provisions of the Elementary and Secondary 
    Education Act of 1965:
            ``(A) Part A (other than sections 1111 and 1116), subpart 3 
        of part B, and parts C, D, and F of title I.
            ``(B) Subparts 2 and 3 of part A of title II.
            ``(C) Subpart 1 of part D of title II.
            ``(D) Subpart 4 of part B of title III, if the funding 
        trigger in section 3001 of such Act is not reached.
            ``(E) Subpart 1 of part A of title IV.
            ``(F) Part A of title V.
        ``(2) The Carl D. Perkins Vocational and Technical Education 
    Act of 1998 (20 U.S.C. 2301 et seq.).''.

SEC. 1074. EDUCATIONAL RESEARCH, DEVELOPMENT, DISSEMINATION, AND 
              IMPROVEMENT ACT OF 1994.

    The Educational Research, Development, Dissemination, and 
Improvement Act of 1994 (20 U.S.C. 6001 et seq.) is amended by adding 
after part I the following new part:

            ``PART J--CERTAIN MULTIYEAR GRANTS AND CONTRACTS

``SEC. 995. CONTINUATION OF AWARDS.

    ``(a) In General.--Notwithstanding any other provision of law, from 
funds appropriated under subsection (b), the Secretary--
        ``(1) shall continue to fund any multiyear grant or contract 
    awarded under section 3141 and parts A and C of title XIII of the 
    Elementary and Secondary Education Act of 1965 (as such provisions 
    were in effect on the day preceding the date of enactment of the No 
    Child Left Behind Act of 2001), for the duration of that multiyear 
    award in accordance with its terms; and
        ``(2) may extend, on a year-to-year basis, any multiyear grant 
    or contract awarded under an authority described in paragraph (1) 
    that expires after the enactment of the No Child Left Behind Act of 
    2001, but before the enactment of successor authority to this Act.
    ``(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).''.

SEC. 1075. NATIONAL CHILD PROTECTION ACT OF 1993.

    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 at the end; 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 at the end.

SEC. 1076. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Legislative Branch Appropriations Act, 1997.--Section 5(d)(1) 
of the Legislative Branch Appropriations Act, 1997 (2 U.S.C. 117b-
2(d)(1)) is amended--
        (1) by striking ``14101'' and inserting ``9101''; and
        (2) by striking ``(20 U.S.C. 8801)''.
    (b) Legislative Branch Appropriations Act, 1987.--Section 
104(3)(B)(ii) of the Legislative Branch Appropriations Act, 1987 (as 
incorporated by reference in section 101(j) of Public Law 99-500 and 
Public Law 99-591) (2 U.S.C. 117e(3)(B)(ii)) is amended by striking 
``14101'' and inserting ``9101''.
    (c) National Agricultural Research, Extension, and Teaching Policy 
Act of 1977.--Section 1417(j)(1)(B) of the National Agricultural 
Research, Extension, and Teaching Policy Act of 1977 (7 U.S.C. 
3152(j)(1)(B)) is amended--
        (1) by striking ``14101(25)'' and inserting ``9101''; and
        (2) by striking ``(20 U.S.C. 8801(25))''.
    (d) Refugee Education Assistance Act of 1980.--Section 101(1) of 
the Refugee Education Assistance Act of 1980 (8 U.S.C. 1522 note) is 
amended by striking ``14101'' and inserting ``9101''.
    (e) Title 10, United States Code.--Section 2194(e)(2) of title 10, 
United States Code, is amended--
        (1) by striking ``14101'' and inserting ``9101''; and
        (2) by striking ``(20 U.S.C. 8801)''.
    (f) Toxic Substances Control Act.--
        (1) Asbestos.--Paragraphs (7), (9) and (12) of section 202 of 
    the Toxic Substances Control Act (15 U.S.C. 2642) are amended by 
    striking ``14101'' and inserting ``9101''.
        (2) Radon.--Section 302(1)(A) of the Toxic Substances Control 
    Act (15 U.S.C. 2662(1)(A)) is amended by striking ``14101'' and 
    inserting ``9101''.
    (g) Higher Education Act of 1965.--Paragraphs (4), (5), (6), (10), 
and (14) of section 103 of the Higher Education Act of 1965 (20 U.S.C. 
1003) are amended by striking ``14101'' and inserting ``9101''.
    (h) General Education Provisions Act.--Section 425(6) of the 
General Education Provisions Act (20 U.S.C. 1226c(6)) is amended by 
striking ``14701'' and inserting ``9601''.
    (i) Individuals with Disabilities Education Act.--Section 613(f) of 
the Individuals with Disabilities Education Act (20 U.S.C. 1413(f)) is 
amended by striking paragraph (3).
    (j) Education Amendments of 1972.--Section 908(2)(B) of the 
Education Amendments of 1972 (20 U.S.C. 1687(2)(B)) is amended by 
striking ``14101'' and inserting ``9101''.
    (k) Carl D. Perkins Vocational and Technical Education Act of 
1998.--Section 3 of the Carl D. Perkins Vocational and Technical 
Education Act of 1998 (20 U.S.C. 2302) is amended--
        (1) in paragraph (5)--
            (A) by striking ``10306'' and inserting ``5206''; and
            (B) by striking ``(20 U.S.C. 8066)'';
        (2) in paragraph (8), by striking ``14101'' and inserting 
    ``9101''; and
        (3) in paragraphs (16) and (21)--
            (A) by striking ``14101'' and inserting ``9101''; and
            (B) by striking ``(20 U.S.C. 8801)''.
    (l) Education for Economic Security Act.--
        (1) Economic security.--Section 3(3) of the Education for 
    Economic Security Act (20 U.S.C. 3902) is amended--
            (A) in paragraph (3), by striking ``198(a)(7)'' and 
        inserting ``9101'';
            (B) in paragraph (7), by striking ``198(a)(10)'' and 
        inserting ``9101''; and
            (C) in paragraph (12), by striking ``198(a)(17)'' and 
        inserting ``9101''.
        (2) Asbestos.--Section 511 of the Education for Economic 
    Security Act (20 U.S.C. 4020) is amended--
            (A) in paragraph (4)(A), by striking ``198(a)(10)'' and 
        inserting ``9101''; and
            (B) in paragraph (5)(A), by striking ``198(a)(7)'' and 
        inserting ``9101''.
    (m) James Madison Memorial Fellowship Act.--Section 815(4) of the 
James Madison Memorial Fellowship Act (20 U.S.C. 4514(4)) is amended by 
striking ``14101'' and inserting ``9101''.
    (n) National Environmental Education Act.--Section 3(5) of the 
National Environmental Education Act (20 U.S.C. 5502(5)) is amended--
        (1) by striking ``14101'' and inserting ``9101''; and
        (2) by striking ``(20 U.S.C. 3381)''.
    (o) Education Flexibility Partnership Act of 1999.--Section 3(1) of 
the Education Flexibility Partnership Act of 1999 (20 U.S.C. 5891a(1)) 
is amended by striking ``14101'' and inserting ``9101''.
    (p) District of Columbia College Access Act of 1999.--Section 
3(c)(5) of the District of Columbia College Access Act of 1999 (Public 
Law 106-98; 113 Stat. 1323) is amended--
        (1) by striking ``14101'' and inserting ``9101''; and
        (2) by striking ``(20 U.S.C. 8801)''.
    (q) School-to-Work Opportunities Act of 1994.--Paragraph (5) of 
section 502(b) of the School-to-Work Opportunities Act of 1994 (20 
U.S.C. 6212(b)(5)) is amended to read as follows:
        ``(5) parts K through N of the Educational Research, 
    Development, Dissemination, and Improvement Act of 1994; and''.
    (r) National Education Statistics Act of 1994.--Paragraphs (4) and 
(6) of section 402(c) of the National Education Statistics Act of 1994 
(20 U.S.C. 9001(c)) are amended by striking ``14101'' and inserting 
``9101''.
    (s) Adult Education and Family Literacy Act.--Section 203(13) of 
the Adult Education and Family Literacy Act (20 U.S.C. 9202(13)) is 
amended--
        (1) by striking ``14101'' and inserting ``9101''; and
        (2) by striking ``(20 U.S.C. 8801)''.
    (t) Internal Revenue Code of 1986.--Section 1397E(d)(4)(B) of the 
Internal Revenue Code of 1986 is amended by striking ``14101'' and 
inserting ``9101''.
    (u) Rehabilitation Act of 1973.--
        (1) Research.--Section 202(b)(4)(A)(i) of the Rehabilitation 
    Act of 1973 (29 U.S.C. 762(b)(4)(A)(i)) is amended by striking 
    ``14101'' and inserting ``9101''.
        (2) Nondiscrimination.--Section 504(b)(2)(B) of the 
    Rehabilitation Act of 1973 (29 U.S.C. 794(b)(2)(B)) is amended by 
    striking ``14101'' and inserting ``9101''.
    (v) Family and Medical Leave Act of 1993.--Section 108(a)(1)(A) of 
the Family and Medical Leave Act of 1993 (29 U.S.C. 2618(a)(1)(A)) is 
amended--
        (1) by striking ``14101'' and inserting ``9101''; and
        (2) by striking ``(20 U.S.C. 2891(12))''.
    (w) Workforce Investment Act of 1998.--Paragraphs (23) and (40) of 
section 101 of the Workforce Investment Act of 1998 (29 U.S.C. 2801) 
are amended--
        (1) by striking ``14101'' and inserting ``9101''; and
        (2) by striking ``(20 U.S.C. 8801)''.
    (x) Safe Drinking Water Act.--Paragraphs (3)(A) and (6) of section 
1461 of the Safe Drinking Water Act (42 U.S.C. 300j-21) are amended by 
striking ``14101'' and inserting ``9101''.
    (y) Civil Rights Act of 1964.--Section 606(2)(B) of the Civil 
Rights Act of 1964 (42 U.S.C. 2000d-4a(2)(B)) is amended by striking 
``14101'' and inserting ``9101''.
    (z) Age Discrimination Act of 1975.--Section 309(4)(B)(ii) of the 
Age Discrimination Act of 1975 (42 U.S.C. 6107(4)(B)(ii)) is amended by 
striking ``14101'' and inserting ``9101''.
    (aa) Hazardous and Solid Waste Amendments of 1989.--Section 
221(f)(3)(B)(i) of the Hazardous and Solid Waste Amendments of 1984 (42 
U.S.C. 6921 note) is amended by striking ``198(a)(7)'' and inserting 
``9101''.
    (bb) Albert Einstein Distinguished Educator Fellowship Act of 
1994.--Paragraphs (1), (2), and (3) of section 514 of the Albert 
Einstein Distinguished Educator Fellowship Act of 1994 (42 U.S.C. 
7382b) are amended by striking ``14101'' and inserting ``9101''.
    (cc) Earthquake Hazards.--Section 2(c)(1)(A) of the Act entitled 
``An Act to authorize appropriations for carrying out the Earthquake 
Hazards Reduction Act of 1977 for fiscal years 1998 and 1999, and for 
other purposes'', approved October 1, 1997 (42 U.S.C. 7704 note) is 
amended--
        (1) by striking ``14101'' and inserting ``9101''; and
        (2) by striking ``(20 U.S.C. 8801)''.
    (dd) State Dependent Care Development Grants Act.--Paragraphs (6) 
and (11) of section 670G of the State Dependent Care Development Grants 
Act (42 U.S.C. 9877) are amended by striking ``14101'' and inserting 
``9101''.
    (ee) Community Services Block Grant Act.--Section 682(b)(4) of the 
Community Services Block Grant Act (42 U.S.C. 9923(b)(4)) is amended--
        (1) by striking ``14101'' and inserting ``9101''; and
        (2) by striking ``(20 U.S.C. 8801)''.
    (ff) National and Community Service Act of 1990.--Paragraphs (8), 
(14), (22), and (28) of section 101 of the National and Community 
Service Act of 1990 (42 U.S.C. 12511) are amended by striking ``14101'' 
and inserting ``9101''.
    (gg) Telecommunications Act of 1996.--Section 706(c)(2) of the 
Telecommunications Act of 1996 (47 U.S.C. 157 note) is amended--
        (1) by striking ``paragraphs (14) and (25), respectively, of 
    section 14101'' and inserting ``section 9101''; and
        (2) by striking ``(20 U.S.C. 8801)''.
    (hh) Communications Act of 1934.--Section 254(h)(7)(A) of the 
Communications Act of 1934 (47 U.S.C. 254(h)(7)(A)) is amended--
        (1) by striking ``paragraphs (14) and (25), respectively, of 
    section 14101'' and inserting ``section 9101''; and
        (2) by striking ``(20 U.S.C. 8801)''.
    (ii) Transportation Equity Act for the 21st Century.--Section 4024 
of the Transportation Equity Act for the 21st Century (49 U.S.C. 31136 
note) is amended by striking ``14101'' and inserting ``9101''.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.
```