192
‘‘SEC. 10999L. AUTHORIZATION OF APPROPRIATIONS.
‘‘There 
are 
authorized 
to 
be 
appropriated
$30,000,000 for fiscal year 2001, $70,000,000 for fiscal
year 2002, and $100,000,000 for each of the fiscal years
2003 through 2005, to carry out this part. Such funds
shall remain available until expended.’’.
TITLE VIII—EARLY LEARNING OPPORTUNITIES
SEC. 801. SHORT TITLE; FINDINGS.
(a) SHORT TITLE.—This title may be cited as the
‘‘Early Learning Opportunities Act’’.
(b) FINDINGS.—Congress finds that—
(1) medical research demonstrates that ade-
quate stimulation of a young child’s brain between
birth and age 5 is critical to the physical develop-
ment of the young child’s brain;
(2) parents are the most significant and effec-
tive teachers of their children, and they alone are re-
sponsible for choosing the best early learning oppor-
tunities for their child;
(3) parent education and parent involvement
are critical to the success of any early learning pro-
gram or activity;
(4) the more intensively parents are involved in
their child’s early learning, the greater the cognitive
and noncognitive benefits to their children;
193
(5) many parents have difficulty finding the in-
formation and support the parents seek to help their
children grow to their full potential;
(6) each day approximately 13,000,000 young
children, including 6,000,000 infants or toddlers,
spend some or all of their day being cared for by
someone other than their parents;
(7) quality early learning programs, including
those designed to promote effective parenting, can
increase the literacy rate, the secondary school grad-
uation rate, the employment rate, and the college en-
rollment rate for children who have participated in
voluntary early learning programs and activities;
(8) early childhood interventions can yield sub-
stantial advantages to participants in terms of emo-
tional and cognitive development, education, eco-
nomic well-being, and health, with the latter two ad-
vantages applying to the children’s families as well;
(9) participation in quality early learning pro-
grams, including those designed to promote effective
parenting, can decrease the future incidence of teen-
age pregnancy, welfare dependency, at-risk behav-
iors, and juvenile delinquency for children;
(10) several cost-benefit analysis studies indi-
cate that for each $1 invested in quality early learn-
194
ing programs, the Federal Government can save over
$5 by reducing the number of children and families
who participate in Federal Government programs
like special education and welfare;
(11) for children placed in the care of others
during the workday, the low salaries paid to the
child care staff, the lack of career progression for
the staff, and the lack of child development special-
ists involved in early learning and child care pro-
grams, make it difficult to attract and retain the
quality of staff necessary for a positive early learn-
ing experience;
(12) Federal Government support for early
learning has primarily focused on out-of-home care
programs like those established under the Head
Start Act, the Child Care and Development Block
Grant of 1990, and part C of the Individuals with
Disabilities Education Act, and these programs—
(A) serve far fewer than half of all eligible
children;
(B) are not primarily designed to provide
support for parents who care for their young
children in the home; and
(C) lack a means of coordinating early
learning opportunities in each community; and
195
(13) by helping communities increase, expand,
and better coordinate early learning opportunities
for children and their families, the productivity and
creativity of future generations will be improved, and
the Nation will be prepared for continued leadership
in the 21st century.
SEC. 802. PURPOSES.
The purposes of this title are—
(1) to increase the availability of voluntary pro-
grams, services, and activities that support early
childhood development, increase parent effectiveness,
and promote the learning readiness of young chil-
dren so that young children enter school ready to
learn;
(2) to support parents, child care providers, and
caregivers who want to incorporate early learning ac-
tivities into the daily lives of young children;
(3) to remove barriers to the provision of an ac-
cessible system of early childhood learning programs
in communities throughout the United States;
(4) to increase the availability and affordability
of professional development activities and compensa-
tion for caregivers and child care providers; and
(5) to facilitate the development of community-
based systems of collaborative service delivery mod-
196
els characterized by resource sharing, linkages be-
tween appropriate supports, and local planning for
services.
SEC. 803. DEFINITIONS.
In this title:
(1) CAREGIVER.—The term ‘‘caregiver’’ means
an individual, including a relative, neighbor, or fam-
ily friend, who regularly or frequently provides care,
with or without compensation, for a child for whom
the individual is not the parent.
(2) CHILD CARE PROVIDER.—The term ‘‘child
care provider’’ means a provider of non-residential
child care services (including center-based, family-
based, and in-home child care services) for com-
pensation who or that is legally operating under
State law, and complies with applicable State and
local requirements for the provision of child care
services.
(3) 
EARLY
LEARNING.—The 
term 
‘‘early
learning’’, used with respect to a program or activ-
ity, means learning designed to facilitate the devel-
opment of cognitive, language, motor, and social-
emotional skills for, and to promote learning readi-
ness in, young children.
197
(4) EARLY
LEARNING
PROGRAM.—The term
‘‘early learning program’’ means—
(A) a program of services or activities that
helps parents, caregivers, and child care pro-
viders incorporate early learning into the daily
lives of young children; or
(B) a program that directly provides early
learning to young children.
(5) INDIAN TRIBE.—The term ‘‘Indian tribe’’
has the meaning given the term in section 4 of the
Indian Self-Determination and Education Assistance
Act (25 U.S.C. 450b).
(6) LOCAL COUNCIL.—The term ‘‘Local Coun-
cil’’ means a Local Council established or designated
under section 814(a) that serves one or more local-
ities.
(7) LOCALITY.—The term ‘‘locality’’ means a
city, county, borough, township, or area served by
another general purpose unit of local government, an
Indian tribe, a Regional Corporation, or a Native
Hawaiian entity.
(8) PARENT.—The term ‘‘parent’’ means a bio-
logical parent, an adoptive parent, a stepparent, a
foster parent, or a legal guardian of, or a person
standing in loco parentis to, a child.
198
(9) POVERTY LINE.—The term ‘‘poverty line’’
means the poverty line (as defined by the Office of
Management and Budget, and revised annually in
accordance with section 673(2) of the Community
Services Block Grant Act (42 U.S.C. 9902(2))) ap-
plicable to a family of the size involved.
(10) REGIONAL CORPORATION.—The term ‘‘Re-
gional Corporation’’ means an entity listed in section
419(4)(B) of the Social Security Act (42 U.S.C.
619(4)(B)).
(11) 
SECRETARY.—The 
term 
‘‘Secretary’’
means the Secretary of Health and Human Services.
(12) STATE.—The term ‘‘State’’ means each of
the several States of the United States, the District
of Columbia, and the Commonwealth of Puerto Rico.
(13) TRAINING.—The term ‘‘training’’ means
instruction in early learning that—
(A) is required for certification under
State and local laws, regulations, and policies;
(B) is required to receive a nationally or
State recognized credential or its equivalent;
(C) is received in a postsecondary edu-
cation program focused on early learning or
early childhood development in which the indi-
vidual is enrolled; or
199
(D) is provided, certified, or sponsored by
an organization that is recognized for its exper-
tise in promoting early learning or early child-
hood development.
(14) YOUNG CHILD.—The term ‘‘young child’’
means any child from birth to the age of mandatory
school attendance in the State where the child re-
sides.
SEC. 804. PROHIBITIONS.
(a) PARTICIPATION NOT REQUIRED.—No person, in-
cluding a parent, shall be required to participate in any
program of early childhood education, early learning, par-
ent education, or developmental screening pursuant to the
provisions of this title.
(b) RIGHTS OF PARENTS.—Nothing in this title shall
be construed to affect the rights of parents otherwise es-
tablished in Federal, State, or local law.
(c) PARTICULAR METHODS OR SETTINGS.—No entity
that receives funds under this title shall be required to
provide services under this title through a particular in-
structional method or in a particular instructional setting
to comply with this title.
(d) NONDUPLICATION.—No funds provided under
this title shall be used to carry out an activity funded
under another provision of law providing for Federal child
200
care or early learning programs, unless an expansion of
such activity is identified in the local needs assessment
and performance goals under this title.
SEC. 
805. 
AUTHORIZATION 
AND 
APPROPRIATION 
OF
FUNDS.
There are authorized to be appropriated to the De-
partment of Health and Human Services to carry out this
title—
(1) $750,000,000 for fiscal year 2001;
(2) $1,000,000,000 for fiscal year 2002;
(3) $1,500,000,000 for fiscal year 2003; and
(4) such sums as may be necessary for each of
the fiscal years 2004 and 2005.
SEC. 806. COORDINATION OF FEDERAL PROGRAMS.
(a) COORDINATION.—The Secretary and the Sec-
retary of Education shall develop mechanisms to resolve
administrative and programmatic conflicts between Fed-
eral programs that would be a barrier to parents, care-
givers, service providers, or children related to the coordi-
nation of services and funding for early learning pro-
grams.
(b) USE OF EQUIPMENT AND SUPPLIES.—In the case
of a collaborative activity funded under this title and an-
other provision of law providing for Federal child care or
early learning programs, the use of equipment and
201
nonconsumable supplies purchased with funds made avail-
able under this title or such provision shall not be re-
stricted to children enrolled or otherwise participating in
the program carried out under this title or such provision,
during a period in which the activity is predominately
funded under this title or such provision.
SEC. 807. PROGRAM AUTHORIZED.
(a) GRANTS.—From amounts appropriated under
section 805 the Secretary shall award grants to States to
enable the States to award grants to Local Councils to
pay the Federal share of the cost of carrying out early
learning programs in the locality served by the Local
Council.
(b) FEDERAL SHARE.—
(1) IN GENERAL.—The Federal share of the
cost described in subsections (a) and (e) shall be 85
percent for the first and second years of the grant,
80 percent for the third and fourth years of the
grant, and 75 percent for the fifth and subsequent
years of the grant.
(2) NON-FEDERAL
SHARE.—The non-Federal
share of the cost described in subsections (a) and (e)
may be contributed in cash or in kind, fairly evalu-
ated, including facilities, equipment, or services,
which may be provided from State or local public
202
sources, or through donations from private entities.
For the purposes of this paragraph the term ‘‘facili-
ties’’ includes the use of facilities, but the term
‘‘equipment’’ means donated equipment and not the
use of equipment.
(c) MAINTENANCE OF EFFORT.—The Secretary shall
not award a grant under this title to any State unless the
Secretary first determines that the total expenditures by
the State and its political subdivisions to support early
learning programs (other than funds used to pay the non-
Federal share under subsection (b)(2)) for the fiscal year
for which the determination is made is equal to or greater
than such expenditures for the preceding fiscal year.
(d) SUPPLEMENT NOT SUPPLANT.—Amounts re-
ceived under this title shall be used to supplement and
not supplant other Federal, State, and local public funds
expended to promote early learning.
(e) SPECIAL RULE.—If funds appropriated to carry
out this title are less than $150,000,000 for any fiscal
year, the Secretary shall award grants for the fiscal year
directly to Local Councils, on a competitive basis, to pay
the Federal share of the cost of carrying out early learning
programs in the locality served by the Local Council. In
carrying out the preceding sentence—
203
(1) subsection (c), subsections (b) and (c) of
section 810, and paragraphs (1), (2), and (3) of sec-
tion 811(a) shall not apply;
(2) State responsibilities described in section
811(d) shall be carried out by the Local Council
with regard to the locality;
(3) the Secretary shall provide such technical
assistance and monitoring as necessary to ensure
that the use of the funds by Local Councils and the
distribution of the funds to Local Councils are con-
sistent with this title; and
(4) subject to paragraph (1), the Secretary
shall assume the responsibilities of the Lead State
Agency under this title, as appropriate.
SEC. 808. USES OF FUNDS.
(a) IN GENERAL.—Subject to section 810, grant
funds under this title shall be used to pay for developing,
operating, or enhancing voluntary early learning programs
that are likely to produce sustained gains in early learn-
ing.
(b) LIMITED USES.—Subject to section 810, Lead
State Agencies and Local Councils shall ensure that funds
made available under this title to the agencies and Local
Councils are used for three or more of the following activi-
ties:
205
(8) Removing ancillary barriers to early learn-
ing, including transportation difficulties and absence
of programs during nontraditional work times.
(c) REQUIREMENTS.—Each Lead State Agency des-
ignated under section 810(c) and Local Councils receiving
a grant under this title shall ensure—
(1) that Local Councils described in section 814
work with local educational agencies to identify cog-
nitive, social, emotional, and motor developmental
abilities which are necessary to support children’s
readiness for school;
(2) that the programs, services, and activities
assisted under this title will represent develop-
mentally appropriate steps toward the acquisition of
those abilities; and
(3) that the programs, services, and activities
assisted under this title collectively provide benefits
for children cared for in their own homes as well as
children placed in the care of others.
(d) SLIDING SCALE PAYMENTS.—States and Local
Councils receiving assistance under this title shall ensure
that programs, services, and activities assisted under this
title which customarily require a payment for such pro-
grams, services, or activities, adjust the cost of such pro-
grams, services, and activities provided to the individual
206
or the individual’s child based on the individual’s ability
to pay.
SEC. 809. RESERVATIONS AND ALLOTMENTS.
(a) RESERVATION FOR INDIAN TRIBES, ALASKA NA-
TIVES, AND NATIVE HAWAIIANS.—The Secretary shall re-
serve 1 percent of the total amount appropriated under
section 805 for each fiscal year, to be allotted to Indian
tribes, Regional Corporations, and Native Hawaiian enti-
ties, of which—
(1) 0.5 percent shall be available to Indian
tribes; and
(2) 0.5 percent shall be available to Regional
Corporations and Native Hawaiian entities.
(b) ALLOTMENTS.—From the funds appropriated
under this title for each fiscal year that are not reserved
under subsection (a), the Secretary shall allot to each
State the sum of—
(1) an amount that bears the same ratio to 50
percent of such funds as the number of children 4
years of age and younger in the State bears to the
number of such children in all States; and
(2) an amount that bears the same ratio to 50
percent of such funds as the number of children 4
years of age and younger living in families with in-
207
comes below the poverty line in the State bears to
the number of such children in all States.
(c) MINIMUM ALLOTMENT.—No State shall receive
an allotment under subsection (b) for a fiscal year in an
amount that is less than .40 percent of the total amount
appropriated for the fiscal year under this title.
(d) AVAILABILITY OF FUNDS.—Any portion of the al-
lotment to a State that is not expended for activities under
this title in the fiscal year for which the allotment is made
shall remain available to the State for two additional
years, after which any unexpended funds shall be returned
to the Secretary. The Secretary shall use the returned
funds to carry out a discretionary grant program for re-
search-based early learning demonstration projects.
(e) DATA.—The Secretary shall make allotments
under this title on the basis of the most recent data avail-
able to the Secretary.
SEC. 810. GRANT ADMINISTRATION.
(a) FEDERAL ADMINISTRATIVE COSTS.—The Sec-
retary may use not more than 3 percent of the amount
appropriated under section 805 for a fiscal year to pay
for the administrative costs of carrying out this title, in-
cluding the monitoring and evaluation of State and local
efforts.
208
(b) STATE ADMINISTRATIVE COSTS.—A State that
receives a grant under this title may use—
(1) not more than 2 percent of the funds made
available through the grant to carry out activities
designed to coordinate early learning programs on
the State level, including programs funded or oper-
ated by the State educational agency, health, chil-
dren and family, and human service agencies, and
any State-level collaboration or coordination council
involving early learning and education, such as the
entities funded under section 640(a)(5) of the Head
Start Act (42 U.S.C. 9835(a)(5));
(2) not more than 2 percent of the funds made
available through the grant for the administrative
costs of carrying out the grant program and the
costs of reporting State and local efforts to the Sec-
retary; and
(3) not more than 3 percent of the funds made
available through the grant for training, technical
assistance, and wage incentives provided by the
State to Local Councils.
(c) LEAD STATE AGENCY.—
(1) IN GENERAL.—To be eligible to receive an
allotment under this title, the Governor of a State
shall appoint, after consultation with the leadership
209
of the State legislature, a Lead State Agency to
carry out the functions described in paragraph (2).
(2) LEAD STATE AGENCY.—
(A) ALLOCATION
OF
FUNDS.—The Lead
State Agency described in paragraph (1) shall
allocate funds to Local Councils as described in
section 812.
(B) FUNCTIONS OF AGENCY.—In addition
to allocating funds pursuant to subparagraph
(A), the Lead State Agency shall—
(i) advise and assist Local Councils in
the performance of their duties under this
title;
(ii) develop and submit the State ap-
plication;
(iii) evaluate and approve applications
submitted by Local Councils under section
813;
(iv) ensure collaboration with respect
to assistance provided under this title be-
tween the State agency responsible for
education and the State agency responsible
for children and family services;
(v) prepare and submit to the Sec-
retary, an annual report on the activities
210
carried out in the State under this title,
which shall include a statement describing
how all funds received under this title are
expended and documentation of the effects
that resources under this title have had
on—
(I) parental capacity to improve
learning readiness in their young chil-
dren;
(II) early childhood literacy;
(III) linkages among early learn-
ing programs;
(IV) 
linkages 
between 
early
learning programs and health care
services for young children;
(V) access to early learning ac-
tivities for young children with special
needs;
(VI) access to existing early
learning programs through expansion
of the days or times that children are
served;
(VII) access to existing early
learning programs through expansion
211
of the number of young children
served;
(VIII) access to and affordability
of existing early learning programs for
low-income families;
(IX) the quality of early learning
programs resulting from professional
development, and recruitment and re-
tention incentives for caregivers; and
(X) removal of ancillary barriers
to early learning, including transpor-
tation difficulties and absence of pro-
grams during nontraditional work
times; and
(vi) ensure that training and research
is made available to Local Councils and
that such training and research reflects the
latest available brain development and
early childhood development research re-
lated to early learning.
SEC. 811. STATE REQUIREMENTS.
(a) ELIGIBILITY.—To be eligible for a grant under
this title, a State shall—
(1) ensure that funds received by the State
under this title shall be subject to appropriation by
212
the State legislature, consistent with the terms and
conditions required under State law;
(2) designate a Lead State Agency under sec-
tion 810(c) to administer and monitor the grant and
ensure State-level coordination of early learning
programs;
(3) submit to the Secretary an application at
such time, in such manner, and accompanied by
such information as the Secretary may require;
(4) ensure that funds made available under this
title are distributed on a competitive basis through-
out the State to Local Councils serving rural, urban,
and suburban areas of the State; and
(5) assist the Secretary in developing mecha-
nisms to ensure that Local Councils receiving funds
under this title comply with the requirements of this
title.
(b) STATE PREFERENCE.—In awarding grants to
Local Councils under this title, the State, to the maximum
extent possible, shall ensure that a broad variety of early
learning programs that provide a continuity of services
across the age spectrum assisted under this title are fund-
ed under this title, and shall give preference to
supporting—
213
(1) a Local Council that meets criteria, that are
specified by the State and approved by the Sec-
retary, for qualifying as serving an area of greatest
need for early learning programs; and
(2) a Local Council that demonstrates, in the
application submitted under section 813, the Local
Council’s potential to increase collaboration as a
means of maximizing use of resources provided
under this title with other resources available for
early learning programs.
(c) LOCAL PREFERENCE.—In awarding grants under
this title, Local Councils shall give preference to
supporting—
(1) projects that demonstrate their potential to
collaborate as a means of maximizing use of re-
sources provided under this title with other resources
available for early learning programs;
(2) programs that provide a continuity of serv-
ices for young children across the age spectrum, in-
dividually, or through community-based networks or
cooperative agreements; and
(3) programs that help parents and other care-
givers promote early learning with their young chil-
dren.
(d) PERFORMANCE GOALS.—
214
(1) ASSESSMENTS.—Based on information and
data received from Local Councils, and information
and data available through State resources, the
State shall biennially assess the needs and available
resources related to the provision of early learning
programs within the State.
(2) PERFORMANCE GOALS.—Based on the anal-
ysis of information described in paragraph (1), the
State shall establish measurable performance goals
to be achieved through activities assisted under this
title.
(3) REQUIREMENT.—The State shall award
grants to Local Councils only for purposes that are
consistent with the performance goals established
under paragraph (2).
(4) REPORT.—The State shall report to the
Secretary annually regarding the State’s progress to-
ward achieving the performance goals established in
paragraph (2) and any necessary modifications to
those goals, including the rationale for the modifica-
tions.
(5) IMPROVEMENT PLANS.—If the Secretary de-
termines, based on the State report submitted under
paragraph (4), that the State is not making progress
toward achieving the performance goals described in
215
paragraph (2), then the State shall submit a per-
formance improvement plan to the Secretary, and
demonstrate reasonable progress in implementing
such plan, in order to remain eligible for funding
under this title.
SEC. 812. LOCAL ALLOCATIONS.
(a) IN GENERAL.—The Lead State Agency shall allo-
cate to Local Councils in the State not less than 93 per-
cent of the funds provided to the State under this title
for a fiscal year.
(b) LIMITATION.—The Lead State Agency shall allo-
cate funds provided under this title on the basis of the
population of the locality served by the Local Council.
SEC. 813. LOCAL APPLICATIONS.
(a) IN GENERAL.—To be eligible to receive assistance
under this title, the Local Council shall submit an applica-
tion to the Lead State Agency at such time, in such man-
ner, and containing such information as the Lead State
Agency may require.
(b) CONTENTS.—Each application submitted pursu-
ant to subsection (a) shall include a statement ensuring
that the local government entity, Indian tribe, Regional
Corporation, or Native Hawaiian entity has established or
designated a Local Council under section 814, and the
216
Local Council has developed a local plan for carrying out
early learning programs under this title that includes—
(1) a needs and resources assessment con-
cerning early learning services and a statement de-
scribing how early learning programs will be funded
consistent with the assessment;
(2) a statement of how the Local Council will
ensure that early learning programs will meet the
performance goals reported by the Lead State Agen-
cy under this title; and
(3) a description of how the Local Council will
form collaboratives among local youth, social service,
and educational providers to maximize resources and
concentrate efforts on areas of greatest need.
SEC. 814. LOCAL ADMINISTRATION.
(a) LOCAL COUNCIL.—
(1) IN
GENERAL.—To be eligible to receive
funds under this title, a local government entity, In-
dian tribe, Regional Corporation, or Native Hawai-
ian entity, as appropriate, shall establish or des-
ignate a Local Council, which shall be composed
of—
(A) representatives of local agencies di-
rectly affected by early learning programs as-
sisted under this title;
217
(B) parents;
(C) other individuals concerned with early
learning issues in the locality, such as rep-
resentative entities providing elementary edu-
cation, child care resource and referral services,
early learning opportunities, child care, and
health services; and
(D) other key community leaders.
(2) DESIGNATING EXISTING ENTITY.—If a local
government entity, Indian tribe, Regional Corpora-
tion, or Native Hawaiian entity has, before the date
of enactment of the Early Learning Opportunities
Act, a Local Council or a regional entity that is
comparable to the Local Council described in para-
graph (1), the entity, tribe, or corporation may des-
ignate the council or entity as a Local Council under
this title, and shall be considered to have established
a Local Council in compliance with this subsection.
(3) FUNCTIONS.—The Local Council shall be
responsible for preparing and submitting the appli-
cation described in section 813.
(b) ADMINISTRATION.—
(1) ADMINISTRATIVE COSTS.—Not more than 3
percent of the funds received by a Local Council
under this title shall be used to pay for the adminis-
218
trative costs of the Local Council in carrying out
this title.
(2) FISCAL AGENT.—A Local Council may des-
ignate any entity, with a demonstrated capacity for
administering grants, that is affected by, or con-
cerned with, early learning issues, including the
State, to serve as fiscal agent for the administration
of grant funds received by the Local Council under
this title.
TITLE IX—RURAL EDUCATION ACHIEVEMENT
PROGRAM
SEC. 901. RURAL EDUCATION INITIATIVE.
Subpart 2 of part J of title X of the Elementary and
Secondary Education Act of 1965 (20 U.S.C. 8291 et
seq.) is amended to read as follows:
‘‘Subpart 2—Rural Education Initiative
‘‘SEC. 10971. SHORT TITLE.
‘‘This subpart may be cited as the ‘Rural Education
Achievement Program’.
‘‘SEC. 10972. PURPOSE.
‘‘It is the purpose of this subpart to address the
unique needs of rural school districts that frequently—
‘‘(1) lack the personnel and resources needed to
compete for Federal competitive grants; and
219
‘‘(2) receive formula allocations in amounts too
small to be effective in meeting their intended pur-
poses.
‘‘SEC. 10973. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this subpart $62,500,000 for fiscal year 2001.
‘‘SEC. 10974. FORMULA GRANT PROGRAM AUTHORIZED.
‘‘(a) ALTERNATIVE USES.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of law, an eligible local educational agency
may use the applicable funding, that the agency is
eligible to receive from the State educational agency
for a fiscal year, to carry out local activities author-
ized in part A of title I, section 2210(b), section
3134, or section 4116.
‘‘(2) NOTIFICATION.—An eligible local edu-
cational agency shall notify the State educational
agency of the local educational agency’s intention to
use the applicable funding in accordance with para-
graph (1) not later than a date that is established
by the State educational agency for the notification.
‘‘(b) ELIGIBILITY.—A local educational agency shall
be eligible to use the applicable funding in accordance with
subsection (a) if—
220
‘‘(1) the total number of students in average
daily attendance at all of the schools served by the
local educational agency is less than 600; and
‘‘(2) all of the schools served by the local edu-
cational agency are designated with a School Locale
Code of 7 or 8, as determined by the Secretary of
Education.
‘‘(c) APPLICABLE FUNDING.—In this section, the
term ‘applicable funding’ means funds provided under
each of titles II, IV, and VI, except for funds made avail-
able under section 321 of the Department of Education
Appropriations Act, 2001.
‘‘(d) DISBURSAL.—Each State educational agency
that receives applicable funding for a fiscal year shall dis-
burse the applicable funding to local educational agencies
for alternative uses under this section for the fiscal year
at the same time that the State educational agency dis-
burses the applicable funding to local educational agencies
that do not intend to use the applicable funding for such
alternative uses for the fiscal year.
‘‘(e) SUPPLEMENT NOT SUPPLANT.—Funds made
available under this section shall be used to supplement
and not supplant any other State or local education funds.
‘‘(f ) SPECIAL RULE.—References in Federal law to
funds for the provisions of law set forth in subsection (c)
221
may be considered to be references to funds for this sec-
tion.
‘‘(g) CONSTRUCTION.—Nothing in this subpart shall
be construed to prohibit a local educational agency that
enters into cooperative arrangements with other local edu-
cational agencies for the provision of special, compen-
satory, or other education services pursuant to State law
or a written agreement from entering into similar arrange-
ments for the use or the coordination of the use of the
funds made available under this subpart.
‘‘SEC. 10975. COMPETITIVE GRANT PROGRAM AUTHORIZED.
‘‘(a) IN GENERAL.—The Secretary is authorized to
award grants to eligible local educational agencies to en-
able the local educational agencies to carry out local activi-
ties authorized in part A of title I, section 2210(b), section
3134, or section 4116.
‘‘(b) ELIGIBILITY.—A local educational agency shall
be eligible to receive a grant under this section if—
‘‘(1) the total number of students in average
daily attendance at all of the schools served by the
local educational agency is less than 600; and
‘‘(2) all of the schools served by the local edu-
cational agency are designated with a School Locale
Code of 7 or 8, as determined by the Secretary of
Education.
222
‘‘(c) AMOUNT.—
‘‘(1) IN GENERAL.—The Secretary shall award
a grant to a local educational agency under this sec-
tion for a fiscal year in an amount equal to the
amount determined under paragraph (2) for the fis-
cal year minus the total amount received under the
provisions of law described under section 10974(c)
for the fiscal year.
‘‘(2) DETERMINATION.—The amount referred
to in paragraph (1) is equal to $100 multiplied by
the total number of students in excess of 50 stu-
dents that are in average daily attendance at the
schools served by the local educational agency, plus
$20,000, except that the amount may not exceed
$60,000.
‘‘(3) CENSUS DETERMINATION.—
‘‘(A) IN GENERAL.—Each local educational
agency desiring a grant under this section shall
determine for each year the number of kinder-
garten through grade 12 students in average
daily attendance at the schools served by the
local educational agency during the period be-
ginning or the first day of classes and ending
on December 1.
223
‘‘(B) SUBMISSION.—Each local educational
agency shall submit the number described in
subparagraph (A) to the Secretary not later
than March 1 of each year.
‘‘(4) PENALTY.—If the Secretary determines
that a local educational agency has knowingly sub-
mitted false information under paragraph (3) for the
purpose of gaining additional funds under this sec-
tion, then the local educational agency shall be fined
an amount equal to twice the difference between the
amount the local educational agency received under
this section, and the correct amount the local edu-
cational agency would have received under this sec-
tion if the agency had submitted accurate informa-
tion under paragraph (3).
‘‘(d) DISBURSAL.—The Secretary shall disburse the
funds awarded to a local educational agency under this
section for a fiscal year not later than July 1 of that year.
‘‘(e) SUPPLEMENT NOT SUPPLANT.—Funds made
available under this section shall be used to supplement
and not supplant any other State or local education funds.
‘‘SEC. 10976. ACCOUNTABILITY.
‘‘(a) ACADEMIC ACHIEVEMENT.—
224
‘‘(1) IN
GENERAL.—Each local educational
agency that uses or receives funds under section
10974 or 10975 for a fiscal year shall—
‘‘(A) administer an assessment that is used
statewide and is consistent with the assessment
described in section 1111(b), to assess the aca-
demic achievement of students in the schools
served by the local educational agency; or
‘‘(B) in the case of a local educational
agency for which there is no statewide assess-
ment described in subparagraph (A), administer
a test, that is selected by the local educational
agency, to assess the academic achievement of
students in the schools served by the local edu-
cational agency.
‘‘(2) SPECIAL
RULE.—Each local educational
agency that uses or receives funds under section
10974 or 10975 shall use the same assessment or
test described in paragraph (1) for each year of par-
ticipation in the program carried out under such sec-
tion.
‘‘(b) STATE EDUCATIONAL AGENCY DETERMINATION
REGARDING CONTINUING PARTICIPATION.—Each State
educational agency that receives funding under the provi-
sions of law described in section 10974(c) shall—
225
‘‘(1) after the third year that a local edu-
cational agency in the State participates in a pro-
gram authorized under section 10974 or 10975 and
on the basis of the results of the assessments or
tests described in subsection (a), determine whether
the students served by the local educational agency
participating in the program performed better on the
assessments or tests after the third year of the par-
ticipation than the students performed on the as-
sessments or tests after the first year of the partici-
pation;
‘‘(2) permit only the local educational agencies
that participated in the program and served students
that performed better on the assessments or tests,
as described in paragraph (1), to continue to partici-
pate in the program for an additional period of 3
years; and
‘‘(3) prohibit the local educational agencies that
participated in the program and served students that
did not perform better on the assessments or tests,
as described in paragraph (1), from participating in
the program, for a period of 3 years from the date
of the determination.
226
‘‘SEC. 10977. RATABLE REDUCTIONS IN CASE OF INSUFFI-
CIENT APPROPRIATIONS.
‘‘(a) IN GENERAL.—If the amount appropriated for
any fiscal year and made available for grants under this
subpart is insufficient to pay the full amount for which
all agencies are eligible under this subpart, the Secretary
shall ratably reduce each such amount.
‘‘(b) ADDITIONAL AMOUNTS.—If additional funds be-
come available for making payments under paragraph (1)
for such fiscal year, payments that were reduced under
subsection (a) shall be increased on the same basis as such
payments were reduced.
‘‘SEC. 10978. APPLICABILITY.
‘‘Sections 10951 and 10952 shall not apply to this
subpart.’’.
This Act may be cited as the ‘‘Departments of Labor,
Health and Human Services, and Education, and Related
Agencies Appropriations Act, 2001’’.
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