595
‘‘(2) TRIBAL
ORGANIZATION
DEFINED.—For
purposes of this subsection, the term ‘tribal organi-
zation’ means—
‘‘(A) the recognized governing body of any
Indian tribe, band, nation, pueblo, or other or-
ganized community, including a Native village
(as defined in section 3(c) of the Alaska Native
Claims Settlement Act); or
‘‘(B) in connection with any personnel ac-
tion referred to in this subsection, any local
school board as defined in section 1141 which
has been delegated by such governing body the
authority to grant a waiver under this sub-
section with respect to personnel action.
‘‘(3) INDIAN PREFERENCE LAW DEFINED.—The
term ‘Indian preference laws’ means section 12 of
the Act of June 18, 1934, or any other provision of
law granting a preference to Indians in promotions
and other personnel actions. Such term shall not in-
clude section 7(b) of the Indian Self-Determination
and Education Assistance Act.
‘‘(g) COMPENSATION OR ANNUAL SALARY.—
‘‘(1) IN
GENERAL.—(A) Except as otherwise
provided in this section, the Secretary shall fix the
basic compensation for educators and education po-
596
sitions 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 on the
basis of the Federal Wage System schedule in effect
for the locality, and for the comparable positions,
the rates of compensation in effect for the senior ex-
ecutive service.
‘‘(B) The Secretary shall establish the rate of
basic compensation, or annual salary rates, for the
positions of teachers and counselors (including dor-
mitory counselors and home-living counselors) at the
rates of basic compensation applicable (on the date
of the enactment of the No Child Left Behind Act
of 2001 and thereafter) to comparable positions in
the overseas schools under the Defense Department
Overseas Teachers Pay Act. The Secretary shall
allow the local school boards authority to implement
only the aspects of the Defense Department Over-
seas Teacher pay provisions that are considered es-
sential for recruitment and retention. Implementa-
tion of such provisions shall not be construed to re-
quire the implementation of the Act in its entirety.
‘‘(C)(i) Beginning with the fiscal year following
the date of the enactment of the No Child Left Be-
597
hind Act of 2001, each school board may set the
rate of compensation or annual salary rate for teach-
ers and counselors (including academic counselors)
who are new hires at the school and who have not
worked at the school on the date of implementation
of this provision, at rates consistent with the rates
paid for individuals in the same positions, with the
same tenure and training, in any other school within
whose boundaries the Bureau school lies. In in-
stances where the adoption of such rates cause a re-
duction in the payment of compensation from that
which was in effect for the fiscal year following the
date of the enactment of the No Child Left Behind
Act of 2001, the new rate may be applied to the
compensation of employees of the school who worked
at the school on of the date of the enactment of that
Act by applying those rates to each contract renewal
such that the reduction takes effect in three equal
installments. Where adoption of such rates lead to
an increase in the payment of compensation from
that which was in effect for the fiscal year following
the date of the enactment of the No Child Left Be-
hind Act of 2001, the school board may make such
rates applicable at the next contract renewal such
that either—
598
‘‘(I) the increase occurs in its entirety; or
‘‘(II) the increase is applied in three equal
installments.
‘‘(ii) The establishment of rates of basic com-
pensation and annual salary rates under subpara-
graphs (B) and (C) shall not preclude the use of
regulations and procedures used by the Bureau prior
to April 28, 1988, in making determinations regard-
ing promotions and advancements through levels of
pay that are based on the merit, education, experi-
ence, or tenure of the educator.
‘‘(D) The establishment of rates of basic com-
pensation and annual salary rates under subpara-
graphs (B) and (C) shall not affect the continued
employment or compensation of an educator who
was employed in an education position on October
31, 1979, and who did not make an election under
subsection (p) is in effect on January 1, 1990.
‘‘(2) POST-DIFFERENTIAL
RATES.—(A) The
Secretary may pay a post-differential rate not to ex-
ceed 25 percent of the rate of basic compensation,
on the basis of conditions of environment or work
which warrant additional pay as a recruitment and
retention incentive.
599
‘‘(B)(i) Upon the request of the supervisor and
the local school board of a Bureau school, the Sec-
retary shall grant the supervisor of the school au-
thorization to provide one or more post-differentials
under subparagraph (A) unless the Secretary deter-
mines for clear and convincing reasons (and advises
the board in writing of those reasons) that certain
of the requested post-differentials should be dis-
approved or decreased because there is no disparity
of compensation for the involved employees or posi-
tions in the Bureau school, as compared with the
nearest public school, that is either—
‘‘(I) at least 5 percent; or
‘‘(II) less than 5 percent and affects the
recruitment or retention of employees at the
school.
‘‘(ii) A request under clause (i) shall be deemed
granted at the end of the 60th day after the request
is received in the Central Office of the Bureau un-
less before that time the request is approved, ap-
proved with modification, or disapproved by the Sec-
retary.
‘‘(iii) The Secretary or the supervisor of a Bu-
reau school may discontinue or decrease a post-dif-
600
ferential authorized under this subparagraph at the
beginning of a school year if—
‘‘(I) the local school board requests that
such differential be discontinued or decreased;
or
‘‘(II) the Secretary or the supervisor deter-
mines for clear and convincing reasons (and ad-
vises the board in writing of those reasons) that
there is no disparity of compensation that
would affect the recruitment or retention of em-
ployees at the school after the differential is
discontinued or decreased.
‘‘(iv) On or before February 1 of each year, the
Secretary shall submit to Congress a report describ-
ing the requests and grants of authority under this
subparagraph during the previous year and listing
the positions contracted under those grants of au-
thority.
‘‘(h) LIQUIDATION
OF REMAINING LEAVE UPON
TERMINATION.—Upon termination of employment with
the Bureau, any annual leave remaining to the credit of
an individual within the purview of this section shall be
liquidated in accordance with sections 5551(a) and 6306
of title 5, United States Code, except that leave earned
601
or accrued under regulations prescribed pursuant to sub-
section (b)(10) of this section 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 re-
appointed, 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 prescribed pursuant to sub-
section (b)(10) shall be transferred to such person’s credit
in the employing agency on an adjusted basis in accord-
ance with regulations which shall be prescribed by the Of-
fice of Personnel Management.
‘‘(j) INELIGIBILITY FOR EMPLOYMENT OF VOLUN-
TARILY TERMINATED EDUCATORS.—An educator who vol-
untarily terminates employment with the Bureau before
the expiration of the existing employment contract be-
tween such educator and the Bureau shall not be eligible
to be employed in another education position in the Bu-
reau during the remainder of the term of such contract.
‘‘(k) DUAL COMPENSATION.—In the case of any edu-
cator employed in an education position described in sub-
section (l)(1)(A) who—
‘‘(1) is employed at the close of a school year;
602
‘‘(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 addi-
tional compensation.
‘‘(l) VOLUNTARY SERVICES.—Notwithstanding sec-
tion 1342 of title 31, United States Code, the Secretary
may, subject to the approval of the local school board con-
cerned, accept voluntary services on behalf of Bureau
schools. Nothing in this part shall be construed to require
Federal employees to work without compensation or to
allow the use of volunteer services to displace or replace
Federal employees. An individual providing volunteer serv-
ices under this section is a Federal employee only for pur-
poses 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.—Notwith-
standing any other provision of law, including laws
relating to dual compensation, the Secretary, at the
603
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. 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. No educator shall suffer a loss of pay or
benefits, including benefits under unemployment or
other Federal or federally assisted programs, be-
cause of such election.
‘‘(2) CHANGE
OF
ELECTION.—During the
course of such year the employee may change elec-
tion 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) DEFINITIONS.—For purposes of this sub-
section, the terms ‘educator’ and ‘education position’
have the meanings contained in paragraphs (1) and
(2) of subsection (o). This subsection applies to
those individuals employed under the provisions of
section 1132 of this title or title 5, United States
Code.
‘‘(n) EXTRACURRICULAR ACTIVITIES.—
604
‘‘(1) STIPEND.—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. 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 com-
pensated for all such work on the basis of the sti-
pend. 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 appro-
priate provisions of title 5, United States Code, shall
apply.
‘‘(3) APPLICABILITY
OF
SUBSECTION.—This
subsection applies to all Bureau employees, whether
employed under section 1132 of this title or title 5,
United States Code.
‘‘(o) DEFINITIONS.—For the purpose of this
section—
‘‘(1) EDUCATION
POSITION.—The term ‘edu-
cation position’ means a position in the Bureau the
duties and responsibilities of which—
605
‘‘(A) are performed on a school-year basis
principally in a Bureau school and involve—
‘‘(i) classroom or other instruction or
the supervision or direction of classroom or
other instruction;
‘‘(ii) any activity (other than teach-
ing) which requires academic credits in
educational theory and practice equal to
the academic credits in educational theory
and practice required for a bachelor’s de-
gree in education from an accredited insti-
tution 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 posi-
tion for agency superintendent for education.
606
‘‘(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 sec-
tion 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 contin-
ued 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.
‘‘SEC. 1133. COMPUTERIZED MANAGEMENT INFORMATION
SYSTEM.
‘‘(a) ESTABLISHMENT OF SYSTEM.—Not later than
July 1, 2003, the Secretary shall establish within the Of-
fice, a computerized management information system,
which shall provide processing and information to the Of-
fice. The information provided shall include information
regarding—
‘‘(1) student enrollment;
‘‘(2) curriculum;
‘‘(3) staffing;
‘‘(4) facilities;
‘‘(5) community demographics;
607
‘‘(6) student assessment information;
‘‘(7) information on the administrative and pro-
gram costs attributable to each Bureau program, di-
vided into discreet elements;
‘‘(8) relevant reports;
‘‘(9) personnel records;
‘‘(10) finance and payroll; and
‘‘(11) such other items as the Secretary deems
appropriate.
‘‘(b) IMPLEMENTATION OF SYSTEM.—Not later than
July 1, 2004, the Secretary shall complete implementation
of such a system at each field office and Bureau funded
school.
‘‘SEC. 1134. UNIFORM EDUCATION PROCEDURES AND PRAC-
TICES.
‘‘The Secretary shall cause the various divisions of
the Bureau to formulate uniform procedures and practices
with respect to such concerns of those divisions as relate
to education, and shall report such practices and proce-
dures to the Congress.
‘‘SEC. 1135. RECRUITMENT OF INDIAN EDUCATORS.
‘‘The Secretary shall institute a policy for the recruit-
ment of qualified Indian educators and a detailed plan to
promote employees from within the Bureau. Such plan
608
shall include opportunities for acquiring work experience
prior to actual work assignment.
‘‘SEC. 1136. BIENNIAL REPORT; AUDITS.
‘‘(a) BIENNIAL REPORTS.—The Secretary shall sub-
mit to each appropriate committee of Congress, all Bureau
funded schools, and the tribal governing bodies of such
schools, a detailed biennial report on the state of education
within the Bureau and any problems encountered in In-
dian education during the 2-year period covered by the
report. Such report shall contain suggestions for the im-
provement of the Bureau educational system and for in-
creasing tribal or local Indian control of such system. Such
report shall also include the current status of tribally con-
trolled community colleges. The annual budget submission
for the Bureau’s education programs shall include—
‘‘(1) information on the funds provided to pre-
viously private schools under section 208 of the In-
dian Self-Determination and Education Assistance
Act, and recommendations with respect to the future
use of such funds;
‘‘(2) the needs and costs of operations and
maintenance of tribally controlled community col-
leges eligible for assistance under the Tribally Con-
trolled Community College Assistance Act of 1978
609
and recommendations with respect to meeting such
needs and costs; and
‘‘(3) the plans required by sections 1121 (g),
1122(c), and 1125(b).
‘‘(b) FINANCIAL
AND COMPLIANCE AUDITS.—The
Inspector General of the Department of the Interior shall
establish a system to ensure that financial and compliance
audits are conducted of each Bureau operated school at
least once in every 3 years. Audits of Bureau schools shall
be based upon the extent to which such school has com-
plied with its local financial plan under section 1130.
‘‘SEC. 1137. RIGHTS OF INDIAN STUDENTS.
‘‘The Secretary shall prescribe such rules and regula-
tions as are necessary to ensure the constitutional and civil
rights of Indian students attending Bureau funded
schools, including such students’ right to privacy under
the laws of the United States, such students’ right to free-
dom of religion and expression, and such students’ right
to due process in connection with disciplinary actions, sus-
pensions, and expulsions.
‘‘SEC. 1138. REGULATIONS.
‘‘(a) IN GENERAL.—The Secretary is authorized to
issue only such regulations as are necessary to ensure
compliance with the specific provision of this Act. The Sec-
retary shall publish proposed regulations in the Federal
610
Register, shall provide a period of not less than 90 days
for public comment thereon, and shall place in parentheses
after each regulatory section the citation to any statutory
provision providing authority to promulgate such regu-
latory provision.
‘‘(b) MISCELLANEOUS.—
‘‘(1) CONSTRUCTION.—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 the enactment of this Act
and the Secretary is authorized to repeal any regula-
tion inconsistent with the provisions of this Act.
‘‘(2) LEGAL AUTHORITY TO BE STATED.—Reg-
ulations issued to implement this Act shall contain,
immediately following each substantive provision of
such regulations, citations to the particular section
or sections of statutory law or other legal authority
upon which provision is based.
‘‘SEC. 1138A. REGIONAL MEETINGS AND NEGOTIATED
RULEMAKING.
‘‘(a) MEETINGS.—
‘‘(1) IN GENERAL.—The Secretary shall obtain
tribal involvement in the development of proposed
regulations under this part and the Tribally Con-
trolled Schools Act of 1988. The Secretary shall ob-
611
tain the advice of and recommendations from rep-
resentatives of Indian tribes with Bureau funded
schools on their reservations, Indian tribes whose
children attend Bureau funded off-reservation board-
ing schools, school boards, administrators or employ-
ees of Bureau funded schools, and parents and
teachers of students enrolled in Bureau funded
schools.
‘‘(2) ISSUES.—The Secretary shall provide for a
comprehensive discussion and exchange of informa-
tion concerning the implementation of this part and
the Tribally Controlled Schools Act of 1988 through
such mechanisms as regional meetings and electronic
exchanges of information. The Secretary shall take
into account the information received through such
mechanisms in the development of proposed regula-
tions and shall publish a summary of such informa-
tion in the Federal Register together with such pro-
posed regulations.
‘‘(b) DRAFT REGULATIONS.—
‘‘(1) IN GENERAL.—After obtaining the advice
and recommendations described in subsection (a)(1)
and before publishing proposed regulations in the
Federal Register, the Secretary shall prepare draft
regulations implementing this part and the Tribally
612
Controlled Schools Act of 1988 and shall submit
such regulations to a negotiated rulemaking process.
Participants in the negotiations process shall be cho-
sen by the Secretary from individuals nominated by
the entities described in subsection (a)(1). To the
maximum extent possible, the Secretary shall ensure
that the tribal representative membership chosen
pursuant to the preceding sentence reflects the pro-
portionate share of students from tribes served by
the Bureau funded school system. The negotiation
process shall be conducted in a timely manner in
order that the final regulations may issued by the
Secretary no later than 18 months after the enact-
ment of this section.
‘‘(2) NOTIFICATION
TO
CONGRESS.—If draft
regulations implementing this part and the Tribally
Controlled Schools Act of 1988 are not issued in
final form by the deadline provided in paragraph
(1), the Secretary shall notify the appropriate com-
mittees of Congress of which draft regulations were
not issued in final form by the deadline and the rea-
son such final regulations were not issued.
‘‘(3) 
EXPANSION
OF
NEGOTIATED
RULE-
MAKING.—All regulations pertaining to this part and
the Tribally Controlled Schools Act of 1988 that are
613
promulgated after the date of the enactment of this
subsection shall be subject to a negotiated rule-
making (including the selection of the regulations to
be negotiated), unless the Secretary determines that
applying such a requirement with respect to given
regulations is impracticable, unnecessary, or con-
trary to the public interest (within the meaning of
section 553(b)(3)(B) of title 5), and publishes the
basis for such determination in the Federal Register
at the same time as the proposed regulations in
question are first published. All published proposed
regulations shall conform to agreements resulting
from such negotiated rulemaking unless the Sec-
retary reopens the negotiated rulemaking process or
provides a written explanation to the participants in
that process why the Secretary has decided to depart
from such agreements. Such negotiated rulemaking
shall be conducted in accordance with the provisions
of subsection (a), and the Secretary shall ensure
that a clear and reliable record of agreements
reached during the negotiation process is main-
tained.
‘‘(c) APPLICABILITY OF FEDERAL ADVISORY COM-
MITTEE ACT.—The Federal Advisory Committee Act shall
apply to activities carried out under this section.
614
‘‘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 de-
velopment programs that are operated by such tribes, or-
ganizations, 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 consor-
tium; or
‘‘(II) authorizes any tribal orga-
nization that is a member of such con-
sortium; bears to
615
‘‘(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.—
616
‘‘(1) IN GENERAL.—A grant may be provided
under subsection (a) to a tribe, tribal organization,
or consortia of tribes and tribal organizations only
if the tribe, organization, or consortia 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 de-
velopment program that the applicant desires to op-
erate.
‘‘(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
617
‘‘(3) shall provide for periodic assessment of the
program.
‘‘(e) COORDINATION
OF FAMILY LITERACY PRO-
GRAMS.—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 dissemi-
nation 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 organiza-
tion, or consortium of tribes in establishing and maintain-
ing the early childhood development program.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—For the
purpose of carrying out the provisions of this section,
there are authorized to be appropriated $10,000,000 for
fiscal year 2002 and such sums as may be necessary for
each of the fiscal years 2003, 2004, 2005, and 2006.
618
‘‘SEC. 1140. TRIBAL DEPARTMENTS OR DIVISIONS OF EDU-
CATION.
‘‘(a) IN GENERAL.—Subject to the availability of ap-
propriations, the Secretary shall provide grants and tech-
nical assistance to tribes for the development and oper-
ation of tribal departments of education for the purpose
of planning and coordinating all educational programs of
the tribe.
‘‘(b) GRANTS.—Grants provided under this section
shall—
‘‘(1) be based on applications from the gov-
erning body of the tribe;
‘‘(2) reflect factors such as geographic and pop-
ulation diversity;
‘‘(3) facilitate tribal control in all matters relat-
ing to the education of Indian children on Indian
reservations (and on former Indian reservations in
Oklahoma);
‘‘(4) provide for the development of coordinated
educational programs on Indian reservations (and on
former Indian reservations in Oklahoma) (including
all preschool, elementary, secondary, and higher or
vocational educational programs funded by tribal,
Federal, or other sources) by encouraging tribal ad-
ministrative support of all Bureau funded edu-
cational programs as well as encouraging tribal co-
619
operation and coordination with all educational pro-
grams receiving financial support from State agen-
cies, other Federal agencies, or private entities;
‘‘(5) provide for the development and enforce-
ment of tribal educational codes, including tribal
educational policies and tribal standards applicable
to curriculum, personnel, students, facilities, and
support programs; and
‘‘(6) otherwise comply with regulations for
grants under section 103(a) of the Indian Self-De-
termination and Educational Assistance Act that are
in effect on the date that application for such grants
are made.
‘‘(c) PRIORITIES.—
‘‘(1) IN
GENERAL.—In making grants under
this section, the Secretary shall give priority to any
application that—
‘‘(A) includes assurances from the majority
of Bureau funded schools located within the
boundaries of the reservation of the applicant
that the tribal department of education to be
funded under this section will provide coordi-
nating services and technical assistance to all of
such schools, including the submission to each
applicable agency of a unified application for
620
funding for all of such schools which provides
that—
‘‘(i) no administrative costs other
than those attributable to the individual
programs of such schools will be associated
with the unified application; and
‘‘(ii) the distribution of all funds re-
ceived under the unified application will be
equal to the amount of funds provided by
the applicable agency to which each of
such schools is entitled under law;
‘‘(B) includes assurances from the tribal
governing body that the tribal department of
education funded under this section will admin-
ister all contracts or grants (except those cov-
ered by the other provisions of this title and the
Tribally Controlled Community College Assist-
ance Act of 1978) for education programs ad-
ministered by the tribe and will coordinate all
of the programs to the greatest extent possible;
‘‘(C) includes assurances for the moni-
toring and auditing by or through the tribal de-
partment of education of all education pro-
grams for which funds are provided by contract
621
or grant to ensure that the programs meet the
requirements of law; and
‘‘(D) provides a plan and schedule for—
‘‘(i) the assumption over the term of
the grant by the tribal department of edu-
cation of all assets and functions of the
Bureau agency office associated with the
tribe, insofar as those responsibilities re-
late to education; and
‘‘(ii) the termination by the Bureau of
such operations and office at the time of
such assumption,
except that when mutually agreeable between
the tribal governing body and the Assistant
Secretary, the period in which such assumption
is to occur may be modified, reduced, or ex-
tended after the initial year of the grant.
‘‘(2) TIME PERIOD OF GRANT.—Subject to the
availability of appropriated funds, grants provided
under this section shall be provided for a period of
3 years and the grant may, if performance by the
grantee is satisfactory to the Secretary, be renewed
for additional 3-year terms.
‘‘(d) TERMS, CONDITIONS, OR REQUIREMENTS.—The
Secretary shall not impose any terms, conditions, or re-
622
quirements on the provision of grants under this section
that are not specified in this section.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—For the
purpose of carrying out the provisions of this section,
there are authorized to be appropriated $2,000,000 for fis-
cal year 2002 and such sums as may be necessary for each
of the fiscal years 2003, 2004, 2005, and 2006.
‘‘SEC. 1141. DEFINITIONS.
‘‘For the purposes of this part, unless otherwise spec-
ified:
‘‘(1) AGENCY
SCHOOL
BOARD.—The term
‘agency school board’ means a body, 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 the
number of such members shall be determined by the
Secretary in consultation with the affected tribes, ex-
cept 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.
623
‘‘(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 pro-
vided under the Tribally Controlled Schools Act
of 1988.
‘‘(4) BUREAU
SCHOOL.—The term ‘Bureau
school’ means a Bureau operated elementary or sec-
ondary day or boarding school or a Bureau operated
dormitory for students attending a school other than
a Bureau school.
‘‘(5) CONTRACT OR GRANT SCHOOL.—The term
‘contract or grant school’ means an elementary or
secondary school or dormitory which receives finan-
cial assistance for its operation under a contract,
grant or agreement with the Bureau under section
102, 103(a), or 208 of the Indian Self-Determina-
tion and Education Assistance Act, or under the
Tribally Controlled Schools Act of 1988.
‘‘(6) EDUCATION
LINE
OFFICER.—The term
‘education line officer’ means education personnel
under the supervision of the Director, whether lo-
cated in the central, area, or agency offices.
624
‘‘(7) FAMILY LITERACY SERVICES.—The term
‘family literacy services’ has the meaning given that
term in section 8101 of the Elementary and Sec-
ondary Education Act of 1965 (20 U.S.C. 8801).
‘‘(8) FINANCIAL
PLAN.—The term ‘financial
plan’ means a plan of services provided by each Bu-
reau school.
‘‘(9) INDIAN ORGANIZATION.—the term ‘Indian
organization’ means any group, association, partner-
ship, corporation, or other legal entity owned or con-
trolled by a federally recognized Indian tribe or
tribes, or a majority of whose members are members
of federally recognized tribes.
‘‘(10) 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, inde-
pendent, or other school district located within a
State, and includes any State agency which directly
operates and maintains facilities for providing free
public education.
‘‘(11) LOCAL SCHOOL BOARD.—The term ‘local
school board’, when used with respect to a Bureau
school, means a body chosen in accordance with the
625
laws of the tribe to be served or, in the absence of
such laws, elected by the parents of the Indian chil-
dren attending the school, except that in schools
serving a substantial number of students from dif-
ferent tribes, the members shall be appointed by the
governing bodies of the tribes affected, and the num-
ber of such members shall be determined by the Sec-
retary in consultation with the affected tribes.
‘‘(12) OFFICE.—The term ‘Office’ means the
Office of Indian Education Programs within the Bu-
reau.
‘‘(13) 
SECRETARY.—The 
term 
‘Secretary’
means the Secretary of the Interior.
‘‘(14) SUPERVISOR.—The term ‘supervisor’
means the individual in the position of ultimate au-
thority at a Bureau school.
‘‘(15) 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 stu-
dents served by such school.
‘‘(16) TRIBE.—The term ‘tribe’ means any In-
dian tribe, band, nation, or other organized group or
community, including any Alaska Native village or
regional or village corporation as defined in or estab-
626
lished pursuant to the Alaska Native Claims Settle-
ment Act, which is recognized as eligible for the spe-
cial programs and services provided by the United
States to Indians because of their status as Indi-
ans.’’.
SEC. 314. TRIBALLY CONTROLLED SCHOOLS ACT OF 1988.
Sections 5202 through 5212 of the Tribally Con-
trolled Schools Act of 1988 (25 U.S.C. 2501 et seq.) are
amended to read as follows:
‘‘SEC. 5202. FINDINGS.
‘‘Congress, after careful review of the Federal Gov-
ernment’s historical and special legal relationship with,
and resulting responsibilities to, Indians, finds that—
‘‘(1) the Indian Self-Determination and Edu-
cation Assistance Act, which was a product of the le-
gitimate aspirations and a recognition of the inher-
ent authority of Indian nations, was and is a crucial
positive step towards tribal and community control;
‘‘(2) the Bureau of Indian Affairs’ administra-
tion and domination of the contracting process
under such Act has not provided the full opportunity
to develop leadership skills crucial to the realization
of self-government and has denied Indians an effec-
tive voice in the planning and implementation of
627
programs for the benefit of Indians which are re-
sponsive to the true needs of Indian communities;
‘‘(3) Indians will never surrender their desire to
control their relationships both among themselves
and with non-Indian governments, organizations,
and persons;
‘‘(4) true self-determination in any society of
people is dependent upon an educational process
which will ensure the development of qualified people
to fulfill meaningful leadership roles;
‘‘(5) the Federal administration of education
for Indian children has not effected the desired level
of educational achievement or created the diverse op-
portunities and personal satisfaction that education
can and should provide;
‘‘(6) true local control requires the least pos-
sible Federal interference; and
‘‘(7) the time has come to enhance the concepts
made manifest in the Indian Self-Determination and
Education Assistance Act.
‘‘SEC. 5203. DECLARATION OF POLICY.
‘‘(a) RECOGNITION.—Congress recognizes the obliga-
tion of the United States to respond to the strong expres-
sion of the Indian people for self-determination by assur-
ing maximum Indian participation in the direction of edu-
628
cational services so as to render such services more re-
sponsive to the needs and desires of those communities.
‘‘(b) COMMITMENT.—Congress declares its commit-
ment to the maintenance of the Federal Government’s
unique and continuing trust relationship with and respon-
sibility to the Indian people through the establishment of
a meaningful Indian self-determination policy for edu-
cation which will deter further perpetuation of Federal bu-
reaucratic domination of programs.
‘‘(c) NATIONAL GOAL.—Congress declares that a
major national goal of the United States is to provide the
resources, processes, and structure which will enable tribes
and local communities to effect the quantity and quality
of educational services and opportunities which will permit
Indian children to compete and excel in the life areas of
their choice and to achieve the measure of self-determina-
tion essential to their social and economic well-being.
‘‘(d) EDUCATIONAL NEEDS.—Congress affirms the
reality of the special and unique educational needs of In-
dian peoples, including the need for programs to meet the
linguistic and cultural aspirations of Indian tribes and
communities. These may best be met through a grant
process.
‘‘(e) FEDERAL RELATIONS.—Congress declares its
commitment to these policies and its support, to the full
629
extent of its responsibility, for Federal relations with the
Indian Nations.
‘‘(f) TERMINATION.—Congress hereby repudiates and
rejects House Resolution 108 of the 83d Congress and any
policy of unilateral termination of Federal relations with
any Indian Nation.
‘‘SEC. 5204. GRANTS AUTHORIZED.
‘‘(a) IN GENERAL.—
‘‘(1) ELIGIBILITY.—The Secretary shall provide
grants to Indian tribes, and tribal organizations
that—
‘‘(A) operate contract schools under title
XI of the Education Amendments of 1978 and
notify the Secretary of their election to operate
the schools with assistance under this part
rather than continuing as contract school;
‘‘(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 ap-
630
proved 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) 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 ex-
penditures for education related activities for which
any funds that compose the grant may be used
under the laws described in section 5205(a), includ-
ing, but not limited to, expenditures for—
‘‘(i) school operations, academic, edu-
cational, residential, guidance and counseling,
and administrative purposes; and
‘‘(ii) support services for the school, includ-
ing transportation.
‘‘(B) Grants provided under this part may, at
the discretion of the school board of the tribally con-
trolled school with respect to which such grant is
provided, be used to defray operations and mainte-
nance expenditures for the school if any funds for
631
the operation and maintenance of the school are al-
located 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 In-
dian 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 sec-
tarian instruction.
‘‘(3) ADMINISTRATIVE
COSTS
LIMITATION.—
Funds provided under any grant under this part
may not be expended for administrative costs (as de-
fined in section 1128(h)(1) of the Education Amend-
ments of 1978) in excess of the amount generated
for such costs under section 1128 of such Act.
‘‘(c) LIMITATION ON TRANSFER OF FUNDS AMONG
SCHOOLSITES.—
‘‘(1) IN GENERAL.—In the case of a grantee
that operates schools at more than one schoolsite,
the grantee may expend not more than the lesser
of—
632
‘‘(A) 10 percent of the funds allocated for
such schoolsite under section 1128 of the Edu-
cation Amendments of 1978; or
‘‘(B) $400,000 of such funds, at any other
schoolsite.
‘‘(2) DEFINITION OF SCHOOLSITE.—For pur-
poses of this subsection, the term ‘schoolsite’ means
the physical location and the facilities of an elemen-
tary or secondary educational or residential program
operated by, or under contract or grant with, the
Bureau for which a discreet student count is identi-
fied 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 appli-
cations and the timing of such applications shall be strictly
voluntary. Nothing in this part may be construed as allow-
ing or requiring any grant with any entity other than the
entity to which the grant is provided.
633
‘‘(e) NO EFFECT ON FEDERAL RESPONSIBILITY.—
Grants provided under this part shall not terminate, mod-
ify, suspend, or reduce the responsibility of the Federal
Government to provide a program.
‘‘(f) RETROCESSION.—
‘‘(1) IN
GENERAL.—Whenever a tribal gov-
erning body requests retrocession of any program for
which assistance is provided under this part, such
retrocession shall become effective upon a date speci-
fied by the Secretary that is not later than 120 days
after the date on which the tribal governing body re-
quests the retrocession. A later date as may be spec-
ified 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 ret-
rocession.
‘‘(2) STATUS AFTER RETROCESSION.—The tribe
requesting retrocession shall specify whether the ret-
rocession is to status as a Bureau operated school
or as a school operated under contract under title XI
of the Education Amendments of 1978.
634
‘‘(3) TRANSFER
OF
EQUIPMENT
AND
MATE-
RIALS.—Except as otherwise determined by the Sec-
retary, the tribe or tribal organization operating the
program to be retroceded must transfer to the Sec-
retary (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 Bu-
reau funded school under title XI of the Edu-
cation Amendments of 1978 before receiving as-
sistance under this part.
‘‘(g) PROHIBITION OF TERMINATION FOR ADMINIS-
TRATIVE CONVENIENCE.—Grants provided under this
part may not be terminated, modified, suspended, or re-
duced solely for the convenience of the administering agen-
cy.
‘‘SEC. 5205. 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
635
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 lim-
ited 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 ac-
counts and, notwithstanding section 105 of the In-
dian 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 allo-
cated to such schools for such fiscal year under—
‘‘(A) title I of the Elementary and Sec-
ondary Education Act of 1965;
‘‘(B) the Individuals with Disabilities Edu-
cation Act; and
‘‘(C) any other Federal education law, that
are allocated to such schools for such fiscal
year.
‘‘(b) SPECIAL RULES.—
636
‘‘(1) IN GENERAL.—(A) Funds allocated to a
tribally controlled school by reason of paragraph (1)
or (2) of subsection (a) shall be subject to the provi-
sions of this part and shall not be subject to any ad-
ditional restriction, priority, or limitation that is im-
posed by the Bureau with respect to funds provided
under—
‘‘(i) title I of the Elementary and Sec-
ondary Education Act of 1965;
‘‘(ii) the Individuals with Disabilities Edu-
cation Act; or
‘‘(iii) any Federal education law other than
title XI of the Education Amendments of 1978.
‘‘(B) Indian tribes and tribal organizations to
which grants are provided under this part, and trib-
ally controlled schools for which such grants are pro-
vided, shall not be subject to any requirements, obli-
gations, restrictions, or limitations imposed by the
Bureau that would otherwise apply solely by reason
of the receipt of funds provided under any law re-
ferred 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
637
as contract schools for the purposes of allocation of
funds under sections 1126(d), 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 alloca-
tion of funds provided under—
‘‘(A) title I of the Elementary and Sec-
ondary Education Act of 1965;
‘‘(B) the Individuals with Disabilities Edu-
cation Act; and
‘‘(C) any other Federal education law, that
are distributed through the Bureau.
‘‘(4) ACCOUNTS; USE OF CERTAIN FUNDS.—(A)
Notwithstanding section 5204(a)(2), with respect to
funds from facilities improvement and repair, alter-
ation and renovation (major or minor), health and
safety, or new construction accounts included in the
grant under section 5204(a), the grantee shall main-
tain a separate account for such funds. At the end
of the period designated for the work covered by the
funds received, the grantee shall submit to the Sec-
retary a separate accounting of the work done and
the funds expended to the Secretary. Funds received
638
from these accounts may only be used for the pur-
pose for which they were appropriated and for the
work encompassed by the application or submission
under which they were received.
‘‘(B) 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 government or
other organization provides funding for the new con-
struction equal to at least 25 percent of the total
cost of such new construction.
‘‘(C) Where the appropriations measure or the
application submission does not stipulate a period
for the work covered by the funds so designated, the
Secretary and the grantee shall consult and deter-
mine 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
grantee.
‘‘(5) ENFORCEMENT OF REQUEST TO INCLUDE
FUNDS.—If the Secretary fails to carry out a re-
quest made under subsection (a)(2) within 180 days
of a request filed by an Indian tribe or tribal organi-
zation to include in such tribe or organization’s
grant the funds described in subsection (a)(2), the
639
Secretary shall be deemed to have approved such re-
quest and the Secretary shall immediately amend
the grant accordingly. Such tribe or organization
may enforce its rights under subsection (a)(2) and
this paragraph, including any denial or failure to act
on such tribe or organization’s request, pursuant to
the disputes authority described in section 5209(e).
‘‘SEC. 5206. ELIGIBILITY FOR GRANTS.
‘‘(a) RULES.—
‘‘(1) IN GENERAL.—A tribally controlled school
is eligible for assistance under this part if the
school—
‘‘(A) on April 28, 1988, was a contract
school under title XI of the Education Amend-
ments of 1978 and the tribe or tribal organiza-
tion operating the school submits to the Sec-
retary 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 re-
quirements of subsection (c); or
640
‘‘(D) is a school with respect to which an
election has been made under paragraph (2)
and which has met the requirements of sub-
section (b).
‘‘(2) NEW
SCHOOLS.—Any application which
has been submitted under the Indian Self-Deter-
mination and Education Assistance Act by an Indian
tribe for a school which is not in operation on the
date of the enactment of the No Child Left Behind
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 or-
ganization 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
the enactment of the No Child Left Behind Act of
2001, and any school with respect to which an elec-
tion is made under subsection (a)(2), meets the re-
quirements of this subsection if—
641
‘‘(A) the Indian tribe or tribal organization
that operates, or desires to operate, the school
submits to the Secretary an application request-
ing 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) 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 or-
ganization, whether to transfer operation of the
school to the Indian tribe or tribal organization;
and
642
‘‘(ii) whether the school is eligible for as-
sistance under this part.
‘‘(B) 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 oper-
ating the school; and
‘‘(ii) shall determine that the school is eli-
gible 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) 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 proce-
dures;
‘‘(iii) ability to adequately manage a
school; or
‘‘(iv) adequately trained personnel.
643
‘‘(c) ADDITIONAL REQUIREMENTS FOR A SCHOOL
WHICH IS NOT A BUREAU FUNDED SCHOOL.—
‘‘(1) IN GENERAL.—A school which is not a Bu-
reau 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 request-
ing 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 SEC-
RETARY.—(A) 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) In making the determination under sub-
paragraph (A), the Secretary shall give equal consid-
eration to each of the following factors:
644
‘‘(i) 
with 
respect 
to 
the 
applicant’s
proposal—
‘‘(I) the adequacy of facilities or the
potential to obtain or provide adequate fa-
cilities;
‘‘(II) geographic and demographic fac-
tors in the affected areas;
‘‘(III) adequacy of the applicant’s pro-
gram plans;
‘‘(IV) geographic proximity of com-
parable public education; and
‘‘(V) the needs as expressed by all af-
fected parties, including but not limited to
students, families, tribal governments at
both the central and local levels, and
school organizations; and
‘‘(ii) with respect to all education services
already available—
‘‘(I) geographic and demographic fac-
tors in the affected areas;
‘‘(II) adequacy and comparability of
programs already available;
‘‘(III) consistency of available pro-
grams with tribal education codes or tribal
legislation on education; and
645
‘‘(IV) the history and success of these
services for the proposed population to be
served, as determined from all factors in-
cluding, if relevant, standardized examina-
tion performance.
‘‘(C) The Secretary may not make a deter-
mination under this paragraph that is primarily
based upon the geographic proximity of com-
parable public education.
‘‘(D) Applications submitted under para-
graph (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 de-
scribed in subparagraph (B)(ii) as the applicant
considers appropriate.
‘‘(E) If the Secretary fails to make a de-
termination under subparagraph (A) with re-
spect 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
646
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 Pro-
grams 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 ap-
plication 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 APPLICA-
TIONS.—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 suc-
ceeding the fiscal year in which the application for the
grant or transfer is made, or at an earlier date determined
by the Secretary.
647
‘‘(f) DENIAL OF APPLICATIONS.—
‘‘(1) IN GENERAL.—Whenever the Secretary re-
fuses to approve a grant under this chapter, to
transfer operation of a Bureau school under sub-
section (b), or determines that a school is not eligi-
ble 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 trib-
al organization to overcome all stated objec-
tions.
‘‘(C) at the request of the tribe or tribal
organization, provide the tribe or tribal organi-
zation a hearing on the record under the same
rules and regulations that apply under the In-
dian Self-Determination and Education Assist-
ance Act; and
‘‘(D) provide an opportunity to appeal the
objection raised.
‘‘(2) TIMELINE
FOR
RECONSIDERATION
OF
AMENDED APPLICATIONS.—The Secretary shall re-
consider any amended application submitted under
648
this part within 60 days after the amended applica-
tion 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 ac-
tions), under this section at the same time that the Presi-
dent is required to submit to Congress the budget under
section 1105 of title 31, United States Code.
‘‘SEC. 5207. DURATION OF ELIGIBILITY DETERMINATION.
‘‘(a) IN GENERAL.—If the Secretary determines that
a tribally controlled school is eligible for assistance under
this part, the eligibility determination shall remain in ef-
fect until the determination is revoked by the Secretary,
and the requirements of subsection (b) or (c) of section
5206, if applicable, shall be considered to have been met
with respect to such school until the eligibility determina-
tion 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 report-
ing revenue and expenditures as defined by the
cost accounting established by the grantee;
649
‘‘(B) an annual financial audit conducted
pursuant to the standards of the Single Audit
Act of 1984;
‘‘(C) an annual submission to the Sec-
retary of the number of students served and a
brief description of programs offered under the
grant; and
‘‘(D) 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 ap-
propriate, other tribally controlled schools and rep-
resentatives 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
TRIBALLY
GOVERNING
BODY.—
Upon completion of the report required under
paragraph (a), the recipient of the grant shall
send (via first class mail, return receipt re-
quested) a copy of such annual report to the
650
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 re-
port send pursuant to subsection (A), the re-
cipient of the grant shall send a copy of the re-
port to the Secretary.
‘‘(c) REVOCATION OF ELIGIBILITY.—
‘‘(1) IN GENERAL.—(A) The Secretary shall not
revoke a determination that a school is eligible for
assistance under this part if—
‘‘(i) the Indian tribe or tribal organization
submits the reports required under subsection
(b) with respect to the school; and
‘‘(ii) at least one of the following sub-
clauses applies with respect to the school:
‘‘(I) The school is certified or accred-
ited by a State or regional accrediting as-
sociation or is a candidate in good stand-
ing for such accreditation under the rules
of the State or regional accrediting asso-
ciation, showing that credits achieved by
the students within the education pro-
651
grams are, or will be, accepted at grade
level by a State certified or regionally ac-
credited institution.
‘‘(II) A determination made by the
Secretary that there is a reasonable expec-
tation that the accreditation described in
subclause (I), or the candidacy in good
standing for such accreditation, will be
reached by the school within 3 years and
that the program offered by the school is
beneficial to the Indian students.
‘‘(III) The school is accredited by a
tribal department of education if such ac-
creditation is accepted by a generally rec-
ognized regional or State accreditation
agency.
‘‘(IV) The schools accept the stand-
ards promulgated under section 1121 of
the Education Amendments of 1978 and
an evaluation of performance is conducted
under this section in conformance with the
regulations pertaining to Bureau operated
schools by an impartial evaluator chosen
by the grantee, but no grantee shall be re-
quired to comply with these standards to a
652
higher degree than a comparable Bureau
operated school.
‘‘(V) A positive evaluation of the
school is conducted by an impartial eval-
uator agreed upon by the Secretary and
the grantee every 2 years under standards
adopted by the contractor under a contract
for a school entered into under the Indian
Self-Determination and Education Assist-
ance Act (or revisions of such standards
agreed to by the Secretary and the grant-
ee) prior to the date of the enactment of
this Act. If the Secretary and the grantee
other than the tribal governing body fail to
agree on such an evaluator, the tribal gov-
erning body shall choose the evaluator or
perform the evaluation. If the Secretary
and a grantee which is the tribal governing
body fail to agree on such an evaluator,
this subclause shall not apply.
‘‘(B) The choice of standards employed for the
purpose of subparagraph (A)(ii) shall be consistent
with section 1121(e) of the Education Amendments
of 1978.
653
‘‘(2) NOTICE
REQUIREMENTS
FOR
REVOCA-
TION.—The Secretary shall not revoke a determina-
tion that a school is eligible for assistance under this
part, or reassume control of a school that was a Bu-
reau school prior to approval of an application sub-
mitted under section 5206(b)(1)(A) until the
Secretary—
‘‘(A) provides notice to the tribally con-
trolled school and the tribal governing body
(within the meaning of section 1141(14) of the
Education Amendments of 1978) of the tribally
controlled school which states—
‘‘(i) the specific deficiencies that led
to the revocation or resumption determina-
tion; 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 as is prac-
ticable to effect such remedial actions. Such notice
and technical assistance shall be in addition to a
hearing and appeal to be conducted pursuant to the
regulations described in section 5206(f)(1)(C).
654
‘‘(d) APPLICABILITY
OF SECTION PURSUANT
TO
ELECTION UNDER SECTION 5209(b).—With respect to a
tribally controlled school which receives assistance under
this part pursuant to an election made under section
5209(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. 5208. PAYMENT OF GRANTS; INVESTMENT OF FUNDS.
‘‘(a) PAYMENTS.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this subsection, the Secretary shall make
payments to grantees under this part in two pay-
ments, of which—
‘‘(A) the first payment shall be made not
later than July 15 of each year in an amount
equal to 85 percent of the amount which the
grantee was entitled to receive during the pre-
ceding 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.
655
‘‘(2) 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.
‘‘(3) LATE FUNDING.—With regard to funds for
grantees that become available for obligation on Oc-
tober 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.
‘‘(4) APPLICABILITY OF CERTAIN TITLE 31 PRO-
VISIONS.—The provisions of chapter 39 of Title 31,
United States Code, shall apply to the payments re-
quired to be made by paragraphs (1), (2), and (3).
‘‘(5) RESTRICTIONS.—Paragraphs (1), (2), and
(3) shall be subject to any restriction on amounts of
payments under this part that are imposed by a con-
tinuing resolution or other Act appropriating the
funds involved.
‘‘(b) INVESTMENT OF FUNDS.—
‘‘(1) TREATMENT OF INTEREST AND INVEST-
MENT INCOME.—Notwithstanding any other provi-
656
sion 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 or-
ganization 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 Fed-
eral 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 pro-
vided under this part may be invested by the Indian
tribe or tribal organization before such funds are ex-
pended 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 Se-
curities and Exchange Commission and which
only invest in obligations of the United States,
657
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 en-
sure protection of the funds, even in the event
of a bank failure.
‘‘(c) RECOVERIES.—For the purposes of under-
recovery 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 con-
sideration.
‘‘SEC. 5209. APPLICATION WITH RESPECT TO INDIAN SELF-
DETERMINATION AND EDUCATION ASSIST-
ANCE ACT.
‘‘(a) CERTAIN PROVISIONS TO APPLY TO GRANTS.—
The following provisions of the Indian Self-Determination
and Education Assistance Act (and any subsequent revi-
sions 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).
658
‘‘(3) Section 7 (relating to wage and labor
standards).
‘‘(4) Section 104 (relating to retention of Fed-
eral employee coverage).
‘‘(5) Section 105(f) (relating to Federal prop-
erty).
‘‘(6) Section 105(k) (relating to access to Fed-
eral sources of supply).
‘‘(7) Section 105(l) (relating to lease of facility
used for administration and delivery of services).
‘‘(8) Section 106(e) (relating to limitation on
remedies relating to cost allowances).
‘‘(9) Section 106(i) (relating to use of funds for
matching or cost participation requirements).
‘‘(10) Section 106(j) (relating to allowable uses
of funds).
‘‘(11) Section 108(c) (Model Agreements provi-
sions (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) (relat-
ing to availability of funds).
‘‘(12) Section 109 (relating to reassumption).
‘‘(13) Section 111 (relating to sovereign immu-
nity and trusteeship rights unaffected).
659
‘‘(b) ELECTION
FOR GRANT
IN LIEU
OF CON-
TRACT.—
‘‘(1) IN GENERAL.—Contractors for activities to
which this part applies who have entered into a con-
tract under the Indian Self-Determination and Edu-
cation Assistance Act that is in effect upon the date
of the enactment of the No Child Left Behind Act
of 2001 may, by giving notice to the Secretary, elect
to have the provisions of this part apply to such ac-
tivity in lieu of such contract.
‘‘(2) EFFECTIVE
DATE
OF
ELECTION.—Any
election made under paragraph (1) shall take effect
on the later of—
‘‘(A) October 1 of the fiscal year suc-
ceeding the fiscal year in which such election is
made; or
‘‘(B) 60 days after the date of such elec-
tion.
‘‘(3) EXCEPTION.—In any case in which the 60-
day period referred to in paragraph (2)(B) is less
than 60 days before the beginning of the succeeding
fiscal year, such election shall not take effect until
the fiscal year after the fiscal year succeeding the
election.
660
‘‘(c) NO DUPLICATION.—No funds may be provided
under any contract entered into under the Indian Self-De-
termination and Education Assistance Act to pay any ex-
penses incurred in providing any program or services if
a grant has been made under this part to pay such ex-
penses.
‘‘(d) TRANSFERS AND CARRYOVERS.—
‘‘(1) BUILDINGS, EQUIPMENT, SUPPLIES, MATE-
RIALS.—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 con-
tracting 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-Determina-
tion and Education Assistance Act.
‘‘(2) FUNDS.—Any tribe or tribal organization
which assumes operation of a Bureau school with as-
661
sistance under this part and any tribe or tribal orga-
nization which elects to operate a school with assist-
ance 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.
‘‘(e) EXCEPTIONS, PROBLEMS, AND DISPUTES.—Any
exception or problem cited in an audit conducted pursuant
to section 5207(b)(2), any dispute regarding a grant au-
thorized to be made pursuant to this part or any amend-
ment to such grant, and any dispute involving an adminis-
trative cost grant under section 1128 of the Education
Amendments of 1978 shall be administered under the pro-
visions governing such exceptions, problems, or disputes
in the case of contracts under the Indian Self-Determina-
tion and Education Assistance Act of 1975. 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. 5210. ROLE OF THE DIRECTOR.
‘‘Applications for grants under this part, and all ap-
plication modifications, shall be reviewed and approved by
personnel under the direction and control of the Director
of the Office of Indian Education Programs. Required re-
662
ports shall be submitted to education personnel under the
direction and control of the Director of such Office.
‘‘SEC. 5211. REGULATIONS.
‘‘The Secretary is authorized to issue regulations re-
lating to the discharge of duties specifically assigned to
the Secretary by this part. In all other matters relating
to the details of planning, development, implementing, and
evaluating grants under this part, the Secretary shall not
issue regulations. Regulations issued pursuant to this part
shall not have the standing of a Federal statute for the
purposes of judicial review.
‘‘SEC. 5212. THE TRIBALLY CONTROLLED GRANT SCHOOL
ENDOWMENT PROGRAM.
‘‘(a) IN GENERAL.—
‘‘(1) TRUST
FUNDS.—Each school receiving
grants under this part may establish, at a Federally
insured banking and savings institution, a trust fund
for the purposes of this section.
‘‘(2) AUTHORITY
OF
SCHOOLS
REGARDING
TRUST FUNDS.—The school may provide—
‘‘(A) for the deposit into the trust fund,
only funds from non-Federal sources, except
that the interest on funds received from grants
under this part may be used for this purpose;
663
‘‘(B) for the deposit in the account of any
earnings on funds deposited in the account; and
‘‘(C) for the sole use of the school any
noncash, in-kind contributions of real or per-
sonal property, such property may at any time
be converted to cash.
‘‘(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 ex-
penses associated with the operation of the school.
‘‘SEC. 5213. DEFINITIONS.
‘‘For the purposes of 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 of such
term in section 1127(f) of the Education Amend-
ments of 1978.
‘‘(3) INDIAN TRIBE.—The term ‘Indian tribe’
means any Indian tribe, band, nation, or other orga-
nized group or community, including Alaska Native
Village or regional corporations (as defined in or es-
tablished pursuant to the Alaskan Native Claims
Settlement Act, which is recognized as eligible for
664
the special programs and services provided by the
United States to Indians because of their status as
Indians.
‘‘(4) LOCAL EDUCATIONAL AGENCY.—The term
‘local educational agency’ means a public board of
education or other public authority legally con-
stituted within a State for either administrative con-
trol or direction of, or to perform a service function
for, public elementary 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 its public elementary or
secondary schools. Such term includes any other
public institution or agency having administrative
control and direction of a public elementary or sec-
ondary school.
‘‘(5) SECRETARY.—The term ‘Secretary’ means
the Secretary of the Interior.
‘‘(6) TRIBAL
ORGANIZATION.—(A) The term
‘tribal organization’ means—
‘‘(i) the recognized governing body of any
Indian tribe; or
‘‘(ii) any legally established organization of
Indians which—
665
‘‘(I) is controlled, sanctioned, or char-
tered by such governing body or is demo-
cratically elected by the adult members of
the Indian community to be served by such
organization; and
‘‘(II) includes the maximum participa-
tion of Indians in all phases of its activi-
ties.
‘‘(B) In any case in which a grant is provided
under this part to an organization to provide serv-
ices benefiting more than one Indian tribe, the ap-
proval of the governing bodies of Indian tribes rep-
resenting 80 percent of those students attending the
tribally controlled school shall be considered a suffi-
cient tribal authorization for such grant.
‘‘(7) TRIBALLY
CONTROLLED
SCHOOL.—The
term ‘tribally controlled school’ means a school oper-
ated by a tribe or a tribal organization, enrolling
students in kindergarten through grade 12, includ-
ing preschools, which is not a local educational agen-
cy and which is not directly administered by the Bu-
reau of Indian Affairs.’’.
666
SEC. 
315. 
ACCOUNTABILITY 
FOR 
BUREAU 
FUNDED
SCHOOLS.
Notwithstanding the provisions of section 7102 of the
Elementary and Secondary Education Act of 1965, the
Secretary shall limit any reduction of administrative fund-
ing for the Bureau of Indian Affairs under such section
to no more than 50 percent of the amount that may be
reserved for administration under such Act.
TITLE 
IV—PROMOTING 
IN-
FORMED PARENTAL CHOICE
AND INNOVATIVE PROGRAMS
PART A—INNOVATIVE PROGRAMS
SEC. 401. INNOVATIVE PROGRAMS.
Title IV is amended to read as follows:
‘‘TITLE 
IV—PROMOTING 
IN-
FORMED PARENTAL CHOICE
AND INNOVATIVE PROGRAMS
‘‘PART A—INNOVATIVE PROGRAMS
‘‘Subpart 1—State and Local Innovative Programs
‘‘SEC. 4101. FINDINGS AND STATEMENT OF PURPOSE.
‘‘(a) FINDINGS.—Congress finds that this subpart—
‘‘(1) provides flexibility to meet local needs;
‘‘(2) promotes local and State education re-
forms;
‘‘(3) contributes to the improvement of aca-
demic achievement for all students;
667
‘‘(4) provides funding for critical activities; and
‘‘(5) provides services for private school stu-
dents.
‘‘(b) STATEMENT OF PURPOSE.—It is the purpose of
programs under this subpart—
‘‘(1) to provide funding to enable States and
local educational agencies to implement promising
educational reform programs and school improve-
ment initiatives based on scientifically based re-
search;
‘‘(2) to provide a continuing source of innova-
tion and educational improvement, including support
for library services and instructional and media ma-
terials; and
‘‘(3) to meet the educational needs of all stu-
dents, including at-risk youth.
‘‘(c) STATE AND LOCAL RESPONSIBILITY.—
‘‘(1) IN GENERAL.—The States shall have the
basic responsibility for the administration of funds
made available under this subpart, but such admin-
istration shall be carried out with a minimum of pa-
perwork.
‘‘(2) DESIGN
AND
IMPLEMENTATION.—Not-
withstanding paragraph (1), local educational agen-
cies, school superintendents and principals, and
668
classroom teachers and supporting personnel shall be
mainly responsible for the design and implementa-
tion of programs assisted under this subpart, be-
cause such agencies and individuals have the most
direct contact with students and are most likely to
be able to design programs to meet the educational
needs of students in their own school districts.
‘‘CHAPTER 1—STATE AND LOCAL
PROGRAMS
‘‘SEC. 4111. ALLOCATION TO STATES.
‘‘(a) RESERVATIONS.—From the sums appropriated
to carry out this subpart for each fiscal year, the Secretary
shall reserve not more than 1 percent for payments to out-
lying areas to be allotted in accordance with their respec-
tive needs.
‘‘(b) ALLOCATION OF REMAINDER.—From the re-
mainder of such sums, the Secretary shall allocate, and
make available in accordance with this subpart, to each
State an amount which bears the same ratio to the
amount of such remainder as the school-age population
of the State bears to the school-age population of all
States, except that no State shall receive less than an
amount equal to 1⁄2 of 1 percent of such remainder.
669
‘‘SEC. 4112. ALLOCATION TO LOCAL EDUCATIONAL AGEN-
CIES.
‘‘(a) DISTRIBUTION RULE.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
from the sums made available each year to carry out
this subpart, the State shall distribute not less than
85 percent to local educational agencies within such
State according to the relative enrollments in public
and private, nonprofit schools within the jurisdic-
tions of such 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 av-
erage cost per child, such as—
‘‘(A) children living in areas with high con-
centrations of economically disadvantaged fami-
lies;
‘‘(B) children from economically disadvan-
taged families; and
‘‘(C) children living in sparsely populated
areas.
‘‘(2) EXCEPTION.—100 percent of any amount
by which the funds paid to a State under this sub-
part for a fiscal year exceed the amount of such
funds paid to the State for fiscal year 2001 shall be
670
distributed to local educational agencies and used lo-
cally for innovative assistance described in section
4131(b).
‘‘(3) LIMITATION ON USE OF FUNDS FOR AD-
MINISTRATION.—In each fiscal year, a State may
use not more than 25 percent of the funds available
for State programs under this subpart for State ad-
ministration under section 4121.
‘‘(b) 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 whose parents would
like their children to participate in programs or
projects assisted under this subpart, for the fis-
cal year preceding the fiscal year for which the
determination is made.
‘‘(2) CONSTRUCTION.—Nothing in this sub-
section 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
671
determine whether such schools desire that their
children participate in programs assisted under this
chapter.
‘‘(3) ADJUSTMENTS.—
‘‘(A) IN
GENERAL.—Relative enrollments
calculated under subsection (a)(1) shall be ad-
justed, in accordance with criteria approved by
the Secretary under subparagraph (B), to pro-
vide 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 disadvan-
taged families;
‘‘(ii) children from economically dis-
advantaged families; or
‘‘(iii) children living in sparsely popu-
lated areas.
‘‘(B) CRITERIA.—The Secretary shall re-
view criteria submitted by a State for adjusting
allocations under paragraph (1) and shall ap-
prove such criteria only if the Secretary deter-
mines that such criteria are reasonably cal-
culated to produce an adjusted allocation that
reflects the relative needs of the State’s local
672
educational agencies based on the factors set
forth in subparagraph (A).
‘‘(c) PAYMENT OF ALLOCATIONS.—
‘‘(1) DISTRIBUTION.—From the funds paid to a
State under this subpart for a fiscal year, a State
shall distribute to each eligible local educational
agency that has submitted an application as required
in section 4133 the amount of such local educational
agency’s allocation, as determined under subsection
(a).
‘‘(2) ADDITIONAL FUNDS.—
‘‘(A) IN GENERAL.—Additional funds re-
sulting from higher per-pupil allocations pro-
vided 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 ex-
penditures to provide services for children en-
rolled in public and private, nonprofit schools in
direct proportion to the number of children de-
scribed in subsection (a)(1) and enrolled in
such schools within the local educational agen-
cy.
‘‘(B) ELECTION.—In any fiscal year, any
local educational agency that elects to allocate
673
such additional funds in the manner described
in subparagraph (A) shall allocate all additional
funds to schools within the local educational
agency in such manner.
‘‘(C) CONSTRUCTION.—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.
‘‘CHAPTER 2—STATE PROGRAMS
‘‘SEC. 4121. STATE USE OF FUNDS.
‘‘A State may use funds made available for State use
under this subpart only for—
‘‘(1) State administration of programs under
this subpart including—
‘‘(A) supervision of the allocation of funds
to local educational agencies;
‘‘(B) planning, supervision, and processing
of State funds; and
‘‘(C) monitoring and evaluation of pro-
grams and activities under this subpart;
‘‘(2) support for planning, designing, and initial
implementation of charter schools as described in
part B;
674
‘‘(3) statewide education reform and school im-
provement activities and technical assistance and di-
rect grants to local educational agencies which assist
such agencies under section 4131; and
‘‘(4) support for arrangements that provide for
independent analysis to measure and report on
school district achievement.
‘‘SEC. 4122. STATE APPLICATIONS.
‘‘(a) APPLICATION
REQUIREMENTS.—If a State
seeks to receive assistance under this subpart, the indi-
vidual, entity, or agency responsible for public elementary
and secondary education policy under the State constitu-
tion or State law shall submit to the Secretary an applica-
tion that—
‘‘(1) provides for an annual statewide summary
of how assistance under this subpart is contributing
toward improving student achievement or improving
the quality of education for students;
‘‘(2) provides information setting forth the allo-
cation of such funds required to implement section
4142;
‘‘(3) provides that the State will keep such
records and provide such information to the Sec-
retary as may be required for fiscal audit and pro-
675
gram evaluation (consistent with the responsibilities
of the Secretary under this section);
‘‘(4) provides assurance that, apart from tech-
nical and advisory assistance and monitoring compli-
ance with this subpart, the State has not exercised
and will not exercise any influence in the decision-
making processes of local educational agencies as to
the expenditure made pursuant to an application
under section 4133;
‘‘(5) contains assurances that there is compli-
ance with the specific requirements of this subpart;
and
‘‘(6) provides for timely public notice and public
dissemination of the information provided under
paragraph (2).
‘‘(b) STATEWIDE SUMMARY.—The statewide sum-
mary referred to in subsection (a)(1) shall be submitted
to the Secretary and shall be derived from the evaluation
information submitted by local educational agencies to the
State under section 4133(a)(2)(H). The format and con-
tent of such summary shall be in the discretion of the
State and may include statistical measures such as the
number of students served by each type of innovative as-
sistance described in section 4131(b), including the num-
ber of teachers trained.
676
‘‘(c) PERIOD OF APPLICATION.—An application filed
by the State under subsection (a) shall be for a period
not to exceed 3 years, and may be amended annually as
may be necessary to reflect changes without filing a new
application.
‘‘(d) AUDIT LIMITATION.—Each local educational
agency receiving less than an average of $5,000 under this
subpart may not be audited more frequently than once
every 5 years.
‘‘CHAPTER 3—LOCAL INNOVATIVE
EDUCATION PROGRAMS
‘‘SEC. 4131. USE OF FUNDS.
‘‘(a) IN GENERAL.—Funds made available to local
educational agencies under section 4112 shall be used for
innovative assistance programs described in subsection
(b).
‘‘(b) INNOVATIVE ASSISTANCE.—The innovative as-
sistance programs referred to in subsection (a) may
include—
‘‘(1) professional development activities and the
hiring of teachers, including activities carried out in
accordance with title II, that give teachers, prin-
cipals, and administrators the knowledge and skills
to provide students with the opportunity to meet
677
challenging State or local academic content stand-
ards and student achievement standards;
‘‘(2) technology related to the implementation
of school-based reform programs, including profes-
sional development to assist teachers, and other
school officials, regarding how to use effectively such
equipment and software;
‘‘(3) programs for the development or acquisi-
tion and use of instructional and educational mate-
rials, including library services and materials (in-
cluding media materials), academic assessments, ref-
erence 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 achievement, and that
are part of an overall education reform program;
‘‘(4) promising education reform projects, in-
cluding effective schools and magnet schools;
‘‘(5) programs to improve the academic skills of
disadvantaged elementary and secondary school stu-
dents and to prevent students from dropping out of
school;
‘‘(6) programs to combat illiteracy;
‘‘(7) programs to provide for the educational
needs of gifted and talented children;
678
‘‘(8) planning, designing, and initial implemen-
tation 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 com-
munities through nonviolence, responsibility, com-
passion, respect, and moral courage;
‘‘(11) activities to promote consumer, economic,
and personal finance education, such as dissemi-
nating and encouraging the best practices for teach-
ing 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 ex-
pand public school choice;
‘‘(13) programs to hire and support school
nurses;
‘‘(14) expanding and improving school-based
mental health services, including early identification
of drug use and violence, assessment, and direct in-
dividual or group counseling services provided to stu-
679
dents, 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 pro-
grams to assist students to reenter the regular edu-
cational setting upon return from treatment or alter-
native educational programs;
‘‘(16) programs to establish or enhance pre-
kindergarten programs for children ages 3 through
5;
‘‘(17) academic intervention programs that are
operated jointly with community-based organizations
and that support academic enrichment and coun-
seling 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 standards or
not completing secondary school;
‘‘(18) programs for cardiopulmonary resuscita-
tion (CPR) training in schools; and
‘‘(19) programs to establish smaller learning
communities.
680
‘‘SEC. 4132. ADMINISTRATIVE AUTHORITY.
‘‘In order to conduct the activities authorized by this
subpart, each State or local educational agency may use
funds made available under this subpart to make grants
to, and to enter into contracts with, local educational
agencies, institutions of higher education, libraries, muse-
ums, and other public and private nonprofit agencies, or-
ganizations, and institutions, including religious organiza-
tions.
‘‘SEC. 4133. LOCAL APPLICATIONS.
‘‘(a) CERTIFICATION.—
‘‘(1) IN GENERAL.—A local educational agency
or a consortium of such agencies may receive an al-
location of funds under this subpart for any year for
which the agency or consortium submits an applica-
tion under this section that is certified by the State
to meet the requirements of this section.
‘‘(2) CONTENTS OF APPLICATION.—The State
shall certify each application that—
‘‘(A) describes locally identified needs rel-
ative to the purposes of this subpart and to the
innovative 
assistance 
described 
in 
section
4131(b);
‘‘(B) based on the needs identified in sub-
paragraph (A), sets forth the planned allocation
of funds among innovative assistance programs
681
described in section 4131 and describes the pro-
grams, projects, and activities designed to carry
out such innovative assistance programs that
the local educational agency intends to support;
‘‘(C) contains information setting forth the
allocation of such funds required to implement
section 4142;
‘‘(D) describes how assistance under this
subpart will contribute to improving student
academic achievement;
‘‘(E) provides assurances of compliance
with the provisions of this subpart, including
the participation of children enrolled in private,
nonprofit schools in accordance with section
4142;
‘‘(F) provides assurance that the local edu-
cational agency will keep such records, and pro-
vide such information to the State as may be
reasonably required for fiscal audit and pro-
gram evaluation, consistent with the respon-
sibilities of the State under this subpart;
‘‘(G) provides in the allocation of funds for
the assistance authorized by this subpart, and
in the design, planning, and implementation of
such programs, for systematic consultation with
682
parents of children attending elementary and
secondary schools in the area served by the
local educational agency, with teachers and ad-
ministrative personnel in such schools, and with
other groups involved in the implementation of
this subpart (such as librarians, school coun-
selors, and other pupil services personnel) as
may be considered appropriate by the local edu-
cational agency; and
‘‘(H) provides assurance that—
‘‘(i) programs, services, and activities
will be evaluated annually;
‘‘(ii) such evaluation will be used to
determine 
and 
implement 
appropriate
changes in program services and activities
for the subsequent year;
‘‘(iii) such evaluation will describe
how assistance under this subpart contrib-
uted toward improving student academic
achievement; and
‘‘(iv) such evaluation will be submitted
to the State in the time and manner re-
quested by the State.
‘‘(b) TIME PERIOD TO WHICH APPLICATION RE-
LATES.—An application submitted by a local educational
683
agency under subsection (a) may seek allocations under
this part for a period of time not to exceed 3 fiscal years
and may be amended annually as may be necessary to re-
flect changes without the filing of a new application.
‘‘(c) LOCAL EDUCATIONAL AGENCY DISCRETION.—
‘‘(1) IN GENERAL.—Subject to the limitations
and requirements of this subpart, a local educational
agency shall have complete discretion in determining
how funds made available under this chapter will be
divided among programs and activities described in
section 4131.
‘‘(2) LIMITATION.—In exercising the discretion
described in paragraph (1), a local educational agen-
cy shall ensure that expenditures under this chapter
carry out the purposes of this subpart and are used
to meet the educational needs within the schools of
such local educational agency.
‘‘CHAPTER 4—GENERAL PROVISIONS
‘‘SEC. 4141. MAINTENANCE OF EFFORT; FEDERAL FUNDS
SUPPLEMENTARY.
‘‘(a) MAINTENANCE OF EFFORT.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), a State is entitled to receive its full allo-
cation of funds under this subpart for any fiscal
year only if the Secretary determines that either the
684
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 com-
bined fiscal effort or aggregate expenditures for the
fiscal year that is 2 fiscal years before the fiscal year
for which the determination is made.
‘‘(2) REDUCTION
OF
FUNDS.—The Secretary
shall reduce the amount of the allocation of funds
under this subpart in any fiscal year in the exact
proportion to which the State fails to meet the re-
quirements of paragraph (1) by falling below 90 per-
cent of both the fiscal effort per student and aggre-
gate expenditures (using the measure most favorable
to the State), and no such lesser amount shall be
used for computing the effort required under para-
graph (1) for subsequent years.
‘‘(3) 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 cir-
cumstances such as a natural disaster or a precipi-
tous and unforeseen decline in the financial re-
sources of the State.
685
‘‘(b) FEDERAL FUNDS SUPPLEMENTARY.—A State
or local educational agency may use and allocate funds
received under this subpart only to supplement and, to the
extent practical, to increase the level of funds that would,
in the absence of Federal funds made available under this
subpart, be made available from non-Federal sources, and
in no case may such funds be used so as to supplant funds
from non-Federal sources.
‘‘SEC. 4142. PARTICIPATION OF CHILDREN ENROLLED IN
PRIVATE SCHOOLS.
‘‘(a) PARTICIPATION ON EQUITABLE BASIS.—
‘‘(1) IN
GENERAL.—To the extent consistent
with the number of children in the school district of
a local educational agency which is eligible to receive
funds under this subpart or which serves the area in
which a program or project assisted under this sub-
part is located, who are enrolled in private nonprofit
elementary and secondary schools, or with respect to
instructional or personnel training programs funded
by the State from funds made available for State
use, such agency, after consultation with appropriate
private school officials—
‘‘(A) shall provide for the benefit of such
children in such schools secular, neutral, and
nonideological services, materials, and equip-
686
ment, including the participation of the teach-
ers of such children (and other educational per-
sonnel serving such children) in training pro-
grams, and the repair or minor remodeling of
public facilities as may be necessary for their
provision (consistent with subsection (c) of this
section); or
‘‘(B) if such services, materials, and equip-
ment are not feasible or necessary in one or
more such private schools as determined by the
local educational agency after consultation with
the appropriate private school officials, shall
provide such other arrangements as will assure
equitable participation of such children in the
purposes and benefits of this subpart.
‘‘(2) OTHER PROVISIONS FOR SERVICES.—If no
program or project is carried out under paragraph
(1) in the school district of a local educational agen-
cy, the State shall make arrangements, such as
through contracts with nonprofit agencies or organi-
zations, under which children in private schools in
such district are provided with services and mate-
rials to the extent that would have occurred if the
local educational agency had received funds under
this subpart.
687
‘‘(3) APPLICATION
OF
REQUIREMENTS.—The
requirements of this section relating to the participa-
tion of children, teachers, and other personnel serv-
ing such children shall apply to programs and
projects carried out under this subpart by a State or
local educational agency, whether directly or through
grants to or contracts with other public or private
agencies, institutions, or organizations.
‘‘(b) EQUAL EXPENDITURES.—
‘‘(1) IN GENERAL.—Expenditures for programs
pursuant to subsection (a) shall be equal (consistent
with the number of children to be served) to expend-
itures for programs under this subpart 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 which relate to the expenditures re-
ferred to in paragraph (1), and when funds available
to a local educational agency under this subpart are
used to concentrate programs or projects on a par-
ticular 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 con-
688
sultation with the appropriate private school offi-
cials, be assured equitable participation in the pur-
poses and benefits of such programs or projects.
‘‘(c) ADMINISTRATIVE RULES.—
‘‘(1) FUNDS AND PROPERTY.—The control of
funds provided under this subpart, and title to mate-
rials, equipment, and property repaired, remodeled,
or constructed with such funds, shall be in a public
agency for the uses and purposes provided in this
subpart, and a public agency shall administer such
funds and property.
‘‘(2) PROVISION OF SERVICES.—The provision
of services pursuant to this subpart shall be provided
by employees of a public agency or through contract
by such public agency with a person, an association,
agency, or corporation who or which, in the provi-
sion of such services, is independent of such private
school and of any religious organizations, and such
employment or contract shall be under the control
and supervision of such public agency, and the funds
provided under this subpart shall not be commingled
with State or local funds.
‘‘(d) WAIVER.—
‘‘(1) STATE PROHIBITION WAIVER.—If by rea-
son of any provision of law a State or local edu-
689
cational agency is prohibited from providing for the
participation in programs of children enrolled in pri-
vate elementary and secondary schools, as required
by this section, the Secretary shall waive such re-
quirements and shall arrange for the provision of
services to such children through arrangements
which shall be subject to the requirements of this
section.
‘‘(2) FAILURE TO COMPLY.—If the Secretary
determines that a State or a local educational agen-
cy has substantially failed or is unwilling to provide
for the participation on an equitable basis of chil-
dren enrolled in private elementary and secondary
schools as required by this section, the Secretary
may waive such requirements and shall arrange for
the provision of services to such children through ar-
rangements which shall be subject to the require-
ments of this section.
‘‘(e) WITHHOLDING OF ALLOCATION.—Pending final
resolution of any investigation or complaint that could re-
sult in a waiver under subsection (d)(1) or (d)(2), the Sec-
retary may withhold from the allocation of the affected
State or local educational agency the amount estimated
by the Secretary to be necessary to pay the cost of services
to be provided by the Secretary under such subsection.
690
‘‘(f) TERM OF DETERMINATIONS.—Any determina-
tion by the Secretary under this section shall continue in
effect until the Secretary determines that there will no
longer be any failure or inability on the part of the State
or local educational agency to meet the requirements of
subsections (a) and (b).
‘‘(g) PAYMENT FROM STATE ALLOTMENT.—When
the Secretary arranges for services pursuant to this sec-
tion, the Secretary shall, after consultation with the ap-
propriate public and private school officials, pay the cost
of such services, including the administrative costs of ar-
ranging for those services, from the appropriate allotment
of the State under this subpart.
‘‘(h) REVIEW.—
‘‘(1) WRITTEN
OBJECTIONS.—The Secretary
shall not take any final action under this section
until the State and the local educational agency af-
fected by such action have had an opportunity, for
not less than 45 days after receiving written notice
thereof, to submit written objections and to appear
before the Secretary or the Secretary’s designee to
show cause why that action should not be taken.
‘‘(2) COURT ACTION.—If a State or local edu-
cational agency is dissatisfied with the Secretary’s
final action after a proceeding under paragraph (1),
691
such agency may, not later than 60 days after notice
of such action, file with the United States court of
appeals for the circuit in which such State is located
a petition for review of that action. A copy of the
petition shall be transmitted by the clerk of the
court to the Secretary. The Secretary thereupon
shall file in the court the record of the proceedings
on which the Secretary based this action, as pro-
vided in section 2112 of title 28, United States
Code.
‘‘(3) REMAND TO SECRETARY.—The findings of
fact by the Secretary, if supported by substantial
evidence, shall be conclusive; but the court, for good
cause shown, may remand the case to the Secretary
to take further evidence and the Secretary may
make new or modified findings of fact and may mod-
ify the Secretary’s previous action, and shall file in
the court the record of the further proceedings. Such
new or modified findings of fact shall likewise be
conclusive if supported by substantial evidence.
‘‘(4) COURT REVIEW.—Upon the filing of such
petition, the court shall have jurisdiction to affirm
the action of the Secretary or to set such action
aside, in whole or in part. The judgment of the court
shall be subject to review by the Supreme Court of
692
the United States upon certiorari or certification as
provided in section 1254 of title 28, United States
Code.
‘‘(i) PRIOR DETERMINATION.—Any bypass deter-
mination by the Secretary under chapter 2 of title I of
this Act (as such chapter was in effect on the day pre-
ceding the date of enactment of the Improving America’s
Schools Act of 1994) shall, to the extent consistent with
the purposes of this title, apply to programs under this
title.
‘‘SEC. 4143. FEDERAL ADMINISTRATION.
‘‘(a) TECHNICAL ASSISTANCE.—The Secretary, upon
request, shall provide technical assistance to States and
local educational agencies under this subpart.
‘‘(b) RULEMAKING.—The Secretary shall issue regu-
lations under this subpart only to the extent that such
regulations are necessary to ensure that there is compli-
ance with the specific requirements and assurances re-
quired by this subpart.
‘‘(c) AVAILABILITY OF APPROPRIATIONS.—Notwith-
standing any other provision of law, unless expressly in
limitation of this subsection, funds appropriated in any
fiscal year to carry out activities under this subpart shall
become available for obligation on July 1 of such fiscal
693
year and shall remain available for obligation until the end
of the subsequent fiscal year.
‘‘SEC. 4144. DEFINITIONS.
‘‘In this subpart, the following definitions apply:
‘‘(1) SCHOOL-AGE
POPULATION.—The term
‘school-age population’ means the population aged 5
through 17.
‘‘(2) STATE.—The term ‘State’ means each of
the 50 States, the District of Columbia, and the
Commonwealth of Puerto Rico.
‘‘SEC. 4145. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this subpart $450,000,000 for fiscal year 2002 and such
sums as may be necessary for each of fiscal years 2003
through 2006.
‘‘Subpart 2—Arts Education
‘‘SEC. 4151. ASSISTANCE FOR ARTS EDUCATION.
‘‘(a) FINDINGS.—The Congress finds that—
‘‘(1) every student can benefit from an edu-
cation in the arts;
‘‘(2) a growing body of research indicates that
education in the arts may provide cognitive benefits
and bolster academic achievement, beginning at an
early age and continuing through secondary school;
694
‘‘(3) qualified arts teachers and a sequential
curriculum are the basis and core for substantive
arts education for students;
‘‘(4) the arts should be taught according to rig-
orous academic standards under arts education pro-
grams that provide mechanisms under which edu-
cators are accountable to parents, school officials,
and the community;
‘‘(5) opportunities to participate in the arts
have enabled individuals with disabilities of all ages
to participate more fully in school and community
activities; and
‘‘(6) arts education is a valuable part of the ele-
mentary and secondary school curriculum.
‘‘(b) PURPOSES.—The purposes of this subpart are
to—
‘‘(1) support systemic education reform by
strengthening arts education as an integral part of
the elementary and secondary school curriculum;
and
‘‘(2) help ensure that all students meet chal-
lenging State academic content standards and chal-
lenging State student academic achievement stand-
ards in the arts.
695
‘‘(c) AUTHORITY.—In accordance with this subpart,
the Secretary may make grants to, or enter into contracts
or cooperative agreements with, eligible entities described
in subsection (d).
‘‘(d) ELIGIBLE ENTITIES.—The Secretary may make
assistance available under subsection (c) to each of the
following entities:
‘‘(1) States.
‘‘(2) Local educational agencies.
‘‘(3) Institutions of higher education.
‘‘(4) Museums or other cultural institutions.
‘‘(5) Any other public or private agencies, insti-
tutions, and organizations.
‘‘(e) USE
OF FUNDS.—Assistance made available
under this subpart may be used only for—
‘‘(1) research on arts education;
‘‘(2) planning, developing, acquiring, expanding,
improving, or disseminating model school-based arts
education programs;
‘‘(3) the development of model State arts edu-
cation assessments based on State academic stand-
ards;
‘‘(4) the development and implementation of
curriculum frameworks for arts education;
696
‘‘(5) the development of model inservice profes-
sional development programs for arts educators and
other instructional staff;
‘‘(6) supporting collaborative activities with
Federal agencies or institutions, arts educators, and
organizations representing the arts, including State
and local arts agencies involved in arts education;
‘‘(7) supporting model projects or programs in
the performing arts for children and youth or pro-
grams which assure the participation in mainstream
settings in arts and education programs of individ-
uals with disabilities through arrangements made
with organizations such as the John F. Kennedy
Center for the Performing Arts and VSA arts;
‘‘(8) supporting model projects or programs to
integrate arts education into the regular elementary
and secondary school curriculum; or
‘‘(9) other activities that further the purposes
of this subpart.
‘‘(f) CONDITIONS.—As conditions of receiving assist-
ance 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 assist-
ance with appropriate activities of public or private
697
cultural agencies, institutions, and organizations, in-
cluding museums, arts education associations, librar-
ies, 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 ac-
tivities assisted under this subpart.
‘‘(g) CONSULTATION.—In carrying out this part, the
Secretary shall consult with Federal agencies or institu-
tions, arts educators (including professional arts education
associations), and organizations representing the arts in-
cluding State and local arts agencies involved in arts edu-
cation.
‘‘(h) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this subpart
such sums as may be necessary for each of fiscal years
2002 through 2006.
‘‘Subpart 3—Gifted and Talented Children
‘‘SEC. 4161. SHORT TITLE.
‘‘This subpart may be cited as the ‘Jacob K. Javits
Gifted and Talented Students Education Act of 2001’.
‘‘SEC. 4162. FINDINGS AND PURPOSE.
‘‘(a) FINDINGS.—Congress finds the following:
‘‘(1) While the families and communities of
some gifted and talented students can provide pri-
698
vate 
educational 
programs 
with 
appropriately
trained staff to supplement public educational offer-
ings, most gifted and talented students, especially
those from inner cities, rural communities, or low-in-
come families, must rely on the services and per-
sonnel available in public schools. In order to ensure
that there are equal educational opportunities for all
gifted and talented students in the United States,
the public schools should provide gifted and talented
education programs carried out by qualified profes-
sionals.
‘‘(2) Due to the wide dispersal of students who
are gifted and talented and the national interest in
a well-educated populace, it is the Federal Govern-
ment that can most effectively and appropriately
conduct scientifically based research and develop-
ment to ensure that there is a national capacity to
educate students who are gifted and talented in the
21st century.
‘‘(3) Many State and local educational agencies
lack the specialized resources and trained personnel
necessary to consistently plan and implement effec-
tive programs for the identification of gifted and tal-
ented students and for the provision of educational
699
services and programs appropriate for the needs of
such students.
‘‘(4) Because gifted and talented students are
generally more advanced academically, are generally
able to learn more quickly, and generally study in
more depth and complexity than others their age,
they require educational opportunities and experi-
ences that are different from those usually available
to other students.
‘‘(5) A typical elementary school student who is
academically gifted and talented has already mas-
tered 35 to 50 percent of the content to be learned
in several subjects in any school year before that
year begins. Without an advanced and challenging
curriculum, such a student may lose motivation and
develop poor study habits that are difficult to break.
‘‘(6) Classes in elementary and secondary
schools in the United States consist of students with
a wide variety of traits, characteristics, and needs.
Although most teachers receive some training to
meet the needs of students with limited English pro-
ficiency, students with disabilities, and students
from diverse cultural and racial backgrounds, few re-
ceive training to meet the needs of students who are
gifted and talented.
700
‘‘(b) PURPOSE.—The purpose of this subpart is to
initiate a coordinated program of scientifically based re-
search, demonstration projects, innovative strategies, and
similar activities designed to build and enhance the ability
of elementary and secondary schools nationwide to meet
the special educational needs of gifted and talented stu-
dents.
‘‘SEC. 4163. 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. 4164. AUTHORIZED PROGRAMS.
‘‘(a) ESTABLISHMENT OF PROGRAM.—
‘‘(1) IN GENERAL.—From the sums available to
carry out this subpart in any fiscal year, the Sec-
retary (after consultation with experts in the field of
the education of gifted and talented students) shall
make grants to, or enter into contracts with, State
educational agencies, local educational agencies, in-
stitutions of higher education, other public agencies,
and other private agencies and organizations (includ-
ing Indian tribes and Indian organizations (as such
terms are defined in section 4 of the Indian Self-De-
701
termination and Education Assistance Act (25
U.S.C. 450b)) and Native Hawaiian organizations)
to assist such agencies, institutions, and organiza-
tions in carrying out programs or projects author-
ized by this subpart that are designed to meet the
educational needs of gifted and talented students, in-
cluding the training of personnel in the education of
gifted and talented students and in the use, where
appropriate, of gifted and talented services, mate-
rials, and methods for all students.
‘‘(2) APPLICATION.—
‘‘(A) IN
GENERAL.—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.
‘‘(B) CONTENTS.—Each application sub-
mitted under this paragraph shall describe
how—
‘‘(i) the proposed gifted and talented
services, materials, and methods can be
adapted, if appropriate, for use by all stu-
dents; and
‘‘(ii) the proposed programs can be
evaluated.
702
‘‘(b) USE OF FUNDS.—Programs and projects as-
sisted under this section may include each of the following:
‘‘(1) Conducting—
‘‘(A) scientifically based research on meth-
ods and techniques for identifying and teaching
gifted and talented students, and for using gift-
ed and talented programs and methods to serve
all students; and
‘‘(B) program evaluations, surveys, and the
collection, analysis, and development of infor-
mation needed to accomplish the purpose of this
subpart.
‘‘(2) Professional development (including fellow-
ships) for personnel (including leadership personnel)
involved in the education of gifted and talented stu-
dents.
‘‘(3) Establishment and operation of model
projects and exemplary programs for serving gifted
and talented students, including innovative methods
for identifying and educating students who may not
be served by traditional gifted and talented pro-
grams, including summer programs, mentoring pro-
grams, service learning programs, and cooperative
programs involving business, industry, and edu-
cation.
703
‘‘(4) Implementing innovative strategies, such
as cooperative learning, peer tutoring, and service
learning.
‘‘(5) Programs of technical assistance and in-
formation 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.
‘‘(c) ESTABLISHMENT OF NATIONAL CENTER.—
‘‘(1) IN GENERAL.—The Secretary (after con-
sultation with experts in the field of the education
of gifted and talented students) shall establish a Na-
tional Center for Research and Development in the
Education of Gifted and Talented Children and
Youth through grants to or contracts with one or
more institutions of higher education or State edu-
cational 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 paragraph (1)
of subsection (b).
‘‘(2) DIRECTOR.—The National Center estab-
lished under paragraph (1) shall be headed by a Di-
rector. The Secretary may authorize the Director to
carry out such functions of the National Center as
704
may be agreed upon through arrangements with in-
stitutions of higher education, State or local edu-
cational agencies, or other public or private agencies
and organizations.
‘‘(d) LIMITATION.—Not more than 30 percent of the
funds available in any fiscal year to carry out the pro-
grams and projects authorized by this section may be used
to conduct activities pursuant to subsection (b)(1) or sub-
section (c).
‘‘(e) COORDINATION.—Scientifically based research
activities supported under this subpart—
‘‘(1) shall be carried out in consultation with
the Office of Educational Research and Improve-
ment to ensure that such activities are coordinated
with and enhance the research and development ac-
tivities supported by such Office; and
‘‘(2) may include collaborative scientifically
based research activities which are jointly funded
and carried out with such Office.
‘‘SEC. 4165. PROGRAM PRIORITIES.
‘‘(a) GENERAL PRIORITY.—In carrying out this sub-
part, the Secretary shall give highest priority to programs
and projects designed to develop new information that—
705
‘‘(1) improves the capability of schools to plan,
conduct, and improve programs to identify and serve
gifted and talented students; and
‘‘(2) assists schools in the identification of, and
provision of services to, gifted and talented students
who may not be identified and served through tradi-
tional assessment methods (including economically
disadvantaged individuals, individuals of limited
English proficiency, and individuals with disabil-
ities).
‘‘(b) SERVICE PRIORITY.—In approving applications
for assistance under section 4164(a)(2), the Secretary
shall ensure that in each fiscal year not less than 50 per-
cent of the applications approved under such section ad-
dress the priority described in subsection (a)(2) of this
section.
‘‘SEC. 4166. 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 and secondary schools, including the participa-
tion of teachers and other personnel in professional devel-
opment programs serving such children.
706
‘‘(b) REVIEW, DISSEMINATION, AND EVALUATION.—
The Secretary shall—
‘‘(1) use a peer review process in reviewing ap-
plications 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
and local educational agencies and other appropriate
organizations, including nonprofit private organiza-
tions; and
‘‘(3) evaluate the effectiveness of programs
under this subpart in accordance with section 8651,
both in terms of the impact on students traditionally
served in separate gifted and talented programs and
on other students, and submit the results of such
evaluation to the Congress not later than 2 years
after the date of the enactment of the No Child Left
Behind Act of 2001.
‘‘(c) PROGRAM OPERATIONS.—The Secretary shall
ensure that the programs under this subpart are adminis-
tered within the Department by a person who has recog-
nized professional qualifications and experience in the field
of the education of gifted and talented students and who
shall—
707
‘‘(1) administer and coordinate the programs
authorized under this subpart;
‘‘(2) serve as a focal point of national leader-
ship and information on the educational needs of
gifted and talented students and the availability of
educational services and programs designed to meet
such needs; and
‘‘(3) assist the Assistant Secretary of the Office
of Educational Research and Improvement in identi-
fying research priorities which reflect the needs of
gifted and talented students.
‘‘SEC. 4167. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this subpart such sums as may be necessary for each of
fiscal years 2002 through 2006.’’.
SEC. 402. CONTINUATION OF AWARDS.
Notwithstanding any other provision of this Act, any
person or agency that was awarded a grant under part
B or D of title X (20 U.S.C. 8031 et seq., 8091 et seq.)
prior to the date of the enactment of this Act shall con-
tinue to receive funds in accordance with the terms of such
award until the date on which the award period terminates
under such terms.
708
PART B—PUBLIC CHARTER SCHOOLS
SEC. 411. PUBLIC CHARTER SCHOOLS.
Title IV, as amended by section 401, is further
amended by adding at the end the following:
‘‘PART B—PUBLIC CHARTER SCHOOLS
‘‘SEC. 4201. FINDINGS AND PURPOSE.
‘‘(a) FINDINGS.—The Congress finds that—
‘‘(1) enhancement of parent and student choices
among public schools can assist in promoting com-
prehensive educational reform and give more stu-
dents the opportunity to meet challenging State aca-
demic content standards and State student academic
achievement standards, if sufficiently diverse and
high-quality choices, and genuine opportunities to
take advantage of such choices, are available to all
students;
‘‘(2) useful examples of such choices can come
from States and communities that experiment with
methods of offering teachers and other educators,
parents, and other members of the public the oppor-
tunity to design and implement new public schools
and to transform existing public schools;
‘‘(3) charter schools are a mechanism for test-
ing a variety of educational approaches and should,
therefore, be exempted from restrictive rules and
regulations if the leadership of such schools commits
709
to attaining specific and ambitious educational re-
sults for educationally disadvantaged students con-
sistent with challenging State academic content
standards and State student academic achievement
standards for all students;
‘‘(4) charter schools can embody the necessary
mixture of enhanced choice, exemption from restric-
tive regulations, and a focus on learning gains;
‘‘(5) charter schools, including charter schools
that are schools-within-schools, can help reduce
school size, and this reduction can have a significant
effect on student achievement;
‘‘(6) the Federal Government should test, evalu-
ate, and disseminate information on a variety of
charter school models in order to help demonstrate
the benefits of this promising educational reform;
and
‘‘(7) there is a strong documented need for
cash-flow assistance to charter schools that are
starting up, because State and local operating rev-
enue streams are not immediately available.
‘‘(b) PURPOSE.—It is the purpose of this part to in-
crease national understanding of the charter schools model
by—
710
‘‘(1) providing financial assistance for the plan-
ning, program design and initial implementation of
charter schools;
‘‘(2) evaluating the effects of such schools, in-
cluding the effects on students, student academic
achievement, staff, and parents; and
‘‘(3) expanding the number of high-quality
charter schools available to students across the Na-
tion.
‘‘SEC. 4202. PROGRAM AUTHORIZED.
‘‘(a) IN GENERAL.—The Secretary may award grants
to State educational agencies having applications approved
pursuant to section 4203 to enable such agencies to con-
duct a charter school grant program in accordance with
this part.
‘‘(b) SPECIAL RULE.—If a State educational agency
elects not to participate in the program authorized by this
part or does not have an application approved under sec-
tion 4203, the Secretary may award a grant to an eligible
applicant that serves such State and has an application
approved pursuant to section 4203(c).
‘‘(c) PROGRAM PERIODS.—
‘‘(1) GRANTS TO STATES.—Grants awarded to
State educational agencies under this part shall be
awarded for a period of not more than 3 years.
711
‘‘(2) GRANTS
TO
ELIGIBLE
APPLICANTS.—
Grants awarded by the Secretary to eligible appli-
cants or subgrants awarded by State educational
agencies to eligible applicants under this part shall
be awarded for a period of not more than 3 years,
of which the eligible applicant may use—
‘‘(A) not more than 18 months for plan-
ning 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
4204(f)(6)(B).
‘‘(d) LIMITATION.—A charter school may not
receive—
‘‘(1) more than one grant for activities de-
scribed 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 part from any funds appropriated under section
4211, the Secretary shall give priority to States to
the extent that the States meet the criteria described
712
in paragraph (2) and one or more of the criteria de-
scribed in subparagraph (A), (B), or (C) of para-
graph (3).
‘‘(2) REVIEW AND EVALUATION PRIORITY CRI-
TERIA.—The criteria referred to in paragraph (1) is
that the State provides for periodic review and eval-
uation by the authorized public chartering agency of
each charter school, at least once every 5 years un-
less required more frequently by State law, to deter-
mine whether the charter school is meeting the
terms of the school’s charter, and is meeting or ex-
ceeding the academic performance requirements and
goals for charter schools as set forth under State
law or the school’s charter.
‘‘(3) PRIORITY CRITERIA.—The criteria referred
to in paragraph (1) are the following:
‘‘(A) The State has demonstrated progress,
in increasing the number of high quality charter
schools that are held accountable in the terms
of the schools’ charters for meeting clear and
measurable 
objectives 
for 
the 
educational
progress of the students attending the schools,
in the period prior to the period for which a
State educational agency or eligible applicant
applies for a grant under this part.
713
‘‘(B) The State—
‘‘(i) provides for one authorized public
chartering agency that is not a local edu-
cational 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 au-
thorized 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 part to a State edu-
cational agency, the Secretary shall take into consider-
ation the number of charter schools that are operating,
or are approved to open, in the State.
‘‘SEC. 4203. APPLICATIONS.
‘‘(a) APPLICATIONS FROM STATE AGENCIES.—Each
State educational agency desiring a grant from the Sec-
retary under this part shall submit to the Secretary an
application at such time, in such manner, and containing
714
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 edu-
cational agency’s charter school grant program and
how such objectives will be fulfilled, including steps
taken by the State educational agency to inform
teachers, parents, and communities of the State edu-
cational 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 com-
mensurate share of Federal education funds
that are allocated by formula each year, includ-
ing during the first year of operation of the
charter school; and
715
‘‘(C) will disseminate best or promising
practices of charter schools to each local edu-
cational agency in the State; and
‘‘(3) contain assurances that the State edu-
cational agency will require each eligible applicant
desiring to receive a subgrant to submit an applica-
tion to the State educational agency containing—
‘‘(A) a description of the educational pro-
gram to be implemented by the proposed char-
ter 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 chil-
dren 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;
716
‘‘(D) a description of the administrative re-
lationship between the charter school and the
authorized public chartering agency;
‘‘(E) a description of how parents and
other members of the community will be in-
volved in the planning, program design and im-
plementation of the charter school;
‘‘(F) a description of how the authorized
public chartering agency will provide for contin-
ued 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 provi-
sions that the applicant believes are necessary
for the successful operation of the charter
school, and a description of any State or local
rules, generally applicable to public schools,
that will be waived for, or otherwise not apply
to, the school;
‘‘(H) a description of how the subgrant
funds or grant funds, as appropriate, will be
used, including a description of how such funds
717
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 at-
tend the charter school;
‘‘(J) an assurance that the eligible appli-
cant 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 subpara-
graph (C)(i);
‘‘(K) an assurance that the applicant will
cooperate with the Secretary and the State edu-
cational agency in evaluating the program as-
sisted under this part;
‘‘(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;
718
‘‘(M) if the eligible applicant desires to use
subgrant funds for dissemination activities
under section 4202(c)(2)(C), a description of
those activities and how those activities will in-
volve charter schools and other public schools,
local educational agencies, developers, and po-
tential developers; and
‘‘(N) such other information and assur-
ances as the Secretary and the State edu-
cational agency may require.
‘‘(c) CONTENTS OF ELIGIBLE APPLICANT APPLICA-
TION.—Each eligible applicant desiring a grant pursuant
to section 4202(b) shall submit an application to the State
educational agency or Secretary, respectively, at such
time, in such manner, and accompanied by such informa-
tion as the State educational agency or Secretary, respec-
tively, may reasonably require.
‘‘(d) CONTENTS OF APPLICATION.—Each application
submitted pursuant to subsection (c) shall contain—
‘‘(1) the information and assurances described
in subparagraphs (A) through (N) of subsection
(b)(3), except that for purposes of this subsection
subparagraphs (J), (K), and (N) of such subsection
shall be applied by striking ‘and the State edu-
cational agency’ each place such term appears;
719
‘‘(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
4204(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 Sec-
retary) may waive this requirement in the case of an
application for a precharter planning grant or
subgrant if the authorized public chartering author-
ity to which a charter school proposal will be sub-
mitted has not been determined at the time the
grant or subgrant application is submitted.
‘‘SEC. 4204. ADMINISTRATION.
‘‘(a) SELECTION
CRITERIA
FOR
STATE
EDU-
CATIONAL AGENCIES.—The Secretary shall award grants
to State educational agencies under this part on the basis
of the quality of the applications submitted under section
4203(b), after taking into consideration such factors as—
720
‘‘(1) the contribution that the charter schools
grant program will make to assisting educationally
disadvantaged and other students to achieving State
academic content standards and State student aca-
demic achievement standards and, in general, a
State’s education improvement plan;
‘‘(2) the degree of flexibility afforded by the
State educational agency to charter schools under
the State’s charter schools law;
‘‘(3) the ambitiousness of the objectives for the
State charter school grant program;
‘‘(4) the quality of the strategy for assessing
achievement of those objectives;
‘‘(5) the likelihood that the charter school grant
program will meet those objectives and improve edu-
cational results for students;
‘‘(6) the number of high quality charter schools
created under this part in the State; and
‘‘(7) in the case of State educational agencies
that propose to use grant funds to support dissemi-
nation activities under section 4202(c)(2)(C), the
quality of those activities and the likelihood that
those activities will improve student academic
achievement.
721
‘‘(b) SELECTION CRITERIA FOR ELIGIBLE APPLI-
CANTS.—The Secretary shall award grants to eligible ap-
plicants under this part on the basis of the quality of the
applications submitted under section 4203(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 re-
sults for students; and
‘‘(7) in the case of an eligible applicant that
proposes to use grant funds to support dissemina-
tion activities under section 4202(c)(2)(C), the qual-
ity of those activities and the likelihood that those
activities will improve student achievement.
722
‘‘(c) PEER REVIEW.—The Secretary, and each State
educational agency receiving a grant under this part, shall
use a peer review process to review applications for assist-
ance under this part.
‘‘(d) DIVERSITY OF PROJECTS.—The Secretary and
each State educational agency receiving a grant under this
part, shall award subgrants under this part 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 ap-
proaches designed to reduce school size.
‘‘(e) WAIVERS.—The Secretary may waive any statu-
tory or regulatory requirement over which the Secretary
exercises administrative authority except any such require-
ment relating to the elements of a charter school described
in section 4210(1), if—
‘‘(1) the waiver is requested in an approved ap-
plication under this part; and
‘‘(2) the Secretary determines that granting
such a waiver will promote the purpose of this part.
‘‘(f) USE OF FUNDS.—
723
‘‘(1) STATE
EDUCATIONAL
AGENCIES.—Each
State educational agency receiving a grant under
this part shall use such grant funds to award sub-
grants to one or more eligible applicants in the State
to enable such applicant to plan and implement a
charter school in accordance with this part, 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 ap-
plicant receiving funds from the Secretary or a State
educational agency shall use such funds to plan and
implement a charter school, or to disseminate infor-
mation about the charter school and successful prac-
tices in the charter school, in accordance with this
part.
‘‘(3) ALLOWABLE ACTIVITIES.—An eligible ap-
plicant receiving a grant or subgrant under this part
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 edu-
cational results and of the methods for
measuring progress toward achieving those
results; and
724
‘‘(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 cur-
riculum materials; and
‘‘(iv) other initial operational costs
that cannot be met from State or local
sources.
‘‘(4) ADMINISTRATIVE EXPENSES.—Each State
educational agency receiving a grant pursuant to
this part may reserve not more than 5 percent of
such grant funds for administrative expenses associ-
ated with the charter school grant program assisted
under this part. A local educational agency may not
deduct funds for administrative fees or expenses
from a subgrant awarded to an eligible applicant.
‘‘(5) REVOLVING
LOAN
FUNDS.—Each State
educational agency receiving a grant pursuant to
this part may reserve not more than 10 percent of
725
the grant amount for the establishment of a revolv-
ing loan fund. Such fund may be used to make loans
to eligible applicants that have received a subgrant
under this part, under such terms as may be deter-
mined by the State educational agency, for the ini-
tial operation of the charter school grant program of
such recipient until such time as the recipient begins
receiving ongoing operational support from State or
local financing sources.
‘‘(6) DISSEMINATION.—
‘‘(A) IN GENERAL.—A charter school may
apply for funds under this part, whether or not
the charter school has applied for or received
funds under this part for planning, program de-
sign, or implementation, to carry out the activi-
ties described in subparagraph (B) if the char-
ter 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 prob-
726
lems and establish a thriving, financially
viable charter school.
‘‘(B) ACTIVITIES.—A charter school de-
scribed in subparagraph (A) may use funds re-
served under paragraph (1) to assist other
schools in adapting the charter school’s pro-
gram (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 assist-
ing charter school and the assisting charter
school’s developers, and that agree to be
held to at least as high a level of account-
ability as the assisting charter school;
‘‘(ii) developing partnerships with
other public schools, including charter
schools, designed to improve student aca-
demic achievement in each of the schools
participating in the partnership;
‘‘(iii) developing curriculum materials,
academic assessments, and other materials
that promote increased student academic
727
achievement and are based on successful
practices within the assisting charter
school; and
‘‘(iv) conducting evaluations and de-
veloping materials that document the suc-
cessful practices of the assisting charter
school and that are designed to improve
student academic achievement in other
schools.
‘‘(g) TRIBALLY CONTROLLED SCHOOLS.—Each State
that receives a grant under this part and designates a trib-
ally 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. 4205. 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 part, 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—
728
‘‘(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 re-
ported on the basis of race, age, disability, gen-
der, limited English proficiency, and previous
enrollment in public school; and
‘‘(B) the professional qualifications of
teachers within a charter school and the turn-
over of the teaching force.
‘‘(3) To provide—
‘‘(A) information to applicants for assist-
ance under this part;
729
‘‘(B) assistance to applicants for assistance
under this part with the preparation of applica-
tions under section 4203;
‘‘(C) assistance in the planning and start-
up 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 dis-
seminate to charter schools any such relevant infor-
mation and model descriptions of successful pro-
grams.
‘‘(b) CONSTRUCTION.—Nothing in this section shall
be construed to require charter schools to collect any data
described in subsection (a).
730
‘‘SEC. 4206. FEDERAL FORMULA ALLOCATION DURING
FIRST YEAR AND FOR SUCCESSIVE ENROLL-
MENT 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 Sec-
retary 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 iden-
tity 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
731
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 regu-
lations, 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 oppor-
tunity to receive those funds during the charter
schools’ first year of operation.
‘‘SEC. 4207. SOLICITATION OF INPUT FROM CHARTER
SCHOOL OPERATORS.
‘‘To the extent practicable, the Secretary shall ensure
that administrators, teachers, and other individuals di-
rectly involved in the operation of charter schools are con-
sulted in the development of any rules or regulations re-
quired to implement this part, as well as in the develop-
ment of any rules or regulations relevant to charter
schools that are required to implement part A of title I,
the Individuals with Disabilities Education Act (20 U.S.C.
1400 et seq.), or any other program administered by the
Secretary that provides education funds to charter schools
or regulates the activities of charter schools.
732
‘‘SEC. 4208. RECORDS TRANSFER.
‘‘State educational agencies and local educational
agencies, to the extent practicable, shall ensure that a stu-
dent’s records and, if applicable, a student’s individualized
education program as defined in section 602(11) of the
Individuals with Disabilities Education Act (20 U.S.C.
1401(11)), are transferred to a charter school upon the
transfer of the student to the charter school, to another
public school upon the transfer of the student from a char-
ter school to another public school, and to a private school
upon the transfer of the student from a charter or public
school to the private school (with the written consent of
a parent of the student), in accordance with applicable
State law.
‘‘SEC. 4209. PAPERWORK REDUCTION.
‘‘To the extent practicable, the Secretary and each
authorized public chartering agency shall ensure that im-
plementation of this part results in a minimum of paper-
work for any eligible applicant or charter school.
‘‘SEC. 4210. DEFINITIONS.
‘‘As used in this part:
‘‘(1) The term ‘charter school’ means a public
school that—
‘‘(A) in accordance with a specific State
statute authorizing the granting of charters to
schools, is exempted from significant State or
733
local rules that inhibit the flexible operation
and management of public schools, but not
from any rules relating to the other require-
ments of this paragraph;
‘‘(B) is created by a developer as a public
school, or is adapted by a developer from an ex-
isting public school, and is operated under pub-
lic 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 author-
ized public chartering agency;
‘‘(D) provides a program of elementary or
secondary education, or both;
‘‘(E) is nonsectarian in its programs, ad-
missions 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 Dis-
abilities Education Act;
734
‘‘(H) is a school to which parents choose to
send their children, and that admits students
on the basis of a lottery, or in another non-
discriminatory manner consistent with State
law, if more students apply for admission than
can be accommodated;
‘‘(I) agrees to comply with the same Fed-
eral and State audit requirements as do other
elementary 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 academic achievement will be measured
in charter schools pursuant to State academic
assessments that are required of other schools
and pursuant to any other assessments mutu-
ally agreeable to the authorized public char-
tering agency and the charter school.
735
‘‘(2) 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) The term ‘eligible applicant’ means a de-
veloper that has—
‘‘(A) applied to an authorized public char-
tering authority; and
‘‘(B) provided adequate and timely notice
to that authority under section 4203(d)(3).
‘‘(4) The term ‘authorized public chartering
agency’ means a State educational agency, local edu-
cational 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. 4211. AUTHORIZATION OF APPROPRIATIONS.
‘‘For the purpose of carrying out this part, there are
authorized to be appropriated $225,000,000 for fiscal year
2002 and such sums as may be necessary for each of the
4 succeeding fiscal years.’’.
SEC. 412. CONTINUATION OF AWARDS.
Notwithstanding any other provision of this Act, any
person or agency that was awarded a grant or subgrant
736
under subpart 1 of part C of title X (20 U.S.C. 8061 et
seq.) prior to the date of the enactment of this Act shall
continue to receive funds in accordance with the terms of
such award until the date on which the award period ter-
minates under such terms.
PART C—MAGNET SCHOOLS ASSISTANCE;
WOMEN’S EDUCATIONAL EQUITY
SEC. 421. MAGNET SCHOOLS ASSISTANCE.
Title IV, as amended by sections 401 and 411, is fur-
ther amended by adding at the end the following:
‘‘PART C—MAGNET SCHOOLS ASSISTANCE;
WOMEN’S EDUCATIONAL EQUITY
‘‘Subpart 1—Magnet Schools Assistance
‘‘SEC. 4301. FINDINGS.
‘‘The Congress finds as follows:
‘‘(1) Magnet schools are a significant part of
the Nation’s efforts to achieve voluntary desegrega-
tion in our schools.
‘‘(2) The use of magnet schools has increased
dramatically since the inception of the magnet
schools assistance program under this Act, with ap-
proximately 2,000,000 students nationwide attend-
ing such schools, of whom more than 65 percent are
non-white.
737
‘‘(3) Magnet schools offer a wide range of dis-
tinctive 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 volun-
tarily 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 equi-
table access to a quality education that will pre-
pare them to function well in a highly competi-
tive economy;
‘‘(C) to maximize the ability of local edu-
cational agencies to plan, develop, implement,
and continue effective and innovative magnet
schools that contribute to State and local sys-
temic reform; and
‘‘(D) to ensure that grant recipients pro-
vide adequate data that demonstrate an ability
to improve student academic achievement.
738
‘‘SEC. 4302. STATEMENT OF PURPOSE.
‘‘The purpose of this part is to assist in the desegre-
gation 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 and sec-
ondary schools with substantial proportions of mi-
nority students;
‘‘(2) the development and implementation of
magnet school projects that will assist local edu-
cational agencies in achieving systemic reforms and
providing all students the opportunity to meet chal-
lenging State academic content standards and stu-
dent academic achievement standards;
‘‘(3) the development and design of innovative
educational methods and practices that promote di-
versity and increase choices in public elementary and
secondary schools and educational programs; and
‘‘(4) courses of instruction within magnet
schools that will substantially strengthen the knowl-
edge of academic subjects and the grasp of tangible
and marketable vocational and technical skills of
students attending such schools.
739
‘‘SEC. 4303. PROGRAM AUTHORIZED.
‘‘The Secretary, in accordance with this part, is au-
thorized to make grants to eligible local educational agen-
cies, 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 to-
gether.
‘‘SEC. 4304. DEFINITION.
‘‘For the purpose of this part, the term ‘magnet
school’ means a public elementary or secondary school or
public elementary or secondary education center that of-
fers a special curriculum capable of attracting substantial
numbers of students of different racial backgrounds.
‘‘SEC. 4305. ELIGIBILITY.
‘‘A local educational agency, or consortium of such
agencies where appropriate, is eligible to receive assistance
under this part to carry out the purpose of this part if
such agency or consortium—
‘‘(1) is implementing a plan undertaken pursu-
ant 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 re-
740
quires the desegregation of minority-group-seg-
regated children or faculty in the elementary and
secondary schools of such agency; or
‘‘(2) without having been required to do so, has
adopted and is implementing, or will, if assistance is
made available to such local educational agency or
consortium of such agencies under this 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 minor-
ity-group-segregated children or faculty in such
schools.
‘‘SEC. 4306. APPLICATIONS AND REQUIREMENTS.
‘‘(a) APPLICATIONS.—An eligible local educational
agency, or consortium of such agencies, desiring to receive
assistance under this part shall submit an application to
the Secretary at such time, in such manner, and con-
taining such information and assurances as the Secretary
may reasonably require.
‘‘(b) INFORMATION AND ASSURANCES.—Each such
application shall include—
‘‘(1) a description of—
‘‘(A) how assistance made available under
this part will be used to promote desegregation,
including how the proposed magnet school
741
project will increase interaction among students
of different social, economic, ethnic, and racial
backgrounds;
‘‘(B) the manner and extent to which the
magnet school project will increase student aca-
demic achievement in the instructional area or
areas offered by the school;
‘‘(C) how an applicant will continue the
magnet school project after assistance under
this part is no longer available, including, if ap-
plicable, an explanation of why magnet schools
established or supported by the applicant with
funds under this part cannot be continued with-
out the use of funds under this part;
‘‘(D) how funds under this part will be
used to improve student academic performance
for all students attending the magnet schools;
and
‘‘(E) the criteria to be used in selecting
students to attend the proposed magnet school
projects; and
‘‘(2) assurances that the applicant will—
‘‘(A) use funds under this part for the pur-
pose specified in section 4302;
742
‘‘(B) employ fully 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 dis-
ability in—
‘‘(i) the hiring, promotion, or assign-
ment of employees of the agency or other
personnel for whom the agency has any ad-
ministrative responsibility;
‘‘(ii) the assignment of students to
schools, or to courses of instruction within
the school, of such agency, except to carry
out the approved plan; and
‘‘(iii) designing or operating extra-
curricular 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 at-
tendance area of the proposed magnet school
projects equitable consideration for placement
in those projects.
‘‘SEC. 4307. PRIORITY.
‘‘In approving applications under this part, the Sec-
retary shall give priority to applicants that—
743
‘‘(1) demonstrate the greatest need for assist-
ance, based on the expense or difficulty of effectively
carrying out an approved desegregation plan and the
projects for which assistance is sought;
‘‘(2) propose to carry out new magnet school
projects, or significantly revise existing magnet
school projects; and
‘‘(3) propose to select students to attend mag-
net school projects by methods such as lottery, rath-
er than through academic examination.
‘‘SEC. 4308. USE OF FUNDS.
‘‘(a) IN GENERAL.—Grant funds made available
under this part may be used by an eligible local edu-
cational agency or consortium of such agencies—
‘‘(1) for planning and promotional activities di-
rectly related to the development, expansion, con-
tinuation, or enhancement of academic programs
and services offered at magnet schools;
‘‘(2) for the acquisition of books, materials, and
equipment, including computers and the mainte-
nance and operation thereof, necessary for the con-
duct of programs in magnet schools;
‘‘(3) for the payment, or subsidization of the
compensation, of elementary and secondary school
teachers who are fully qualified, and instructional
744
staff where applicable, who are necessary for the
conduct of programs in magnet schools;
‘‘(4) with respect to a magnet school program
offered to less than the entire student population of
a school, for instructional activities that—
‘‘(A) are designed to make available the
special curriculum that is offered by the magnet
school project to students who are enrolled in
the school but who are not enrolled in the mag-
net school program; and
‘‘(B) further the purpose of this part; and
‘‘(5) for activities, which may include profes-
sional development, that will build the recipient’s ca-
pacity to operate magnet school programs once the
grant period has ended.
‘‘(b) SPECIAL RULE.—Grant funds under this part
may be used in accordance with paragraphs (2) and (3)
of subsection (a) only if the activities described in such
paragraphs are directly related to improving the students’
academic performance based on the State’s challenging
academic content standards and student academic achieve-
ment standards or directly related to improving the stu-
dents’ reading skills or knowledge of mathematics, science,
history, geography, English, foreign languages, art, or
music, or to improving vocational and technical skills.
745
‘‘SEC. 4309. PROHIBITIONS.
‘‘(a) TRANSPORTATION.—Grants under this part may
not be used for transportation or any activity that does
not augment academic improvement.
‘‘(b) PLANNING.—A local educational agency shall
not expend funds under this part after the third year that
such agency receives funds under this part for such
project.
‘‘SEC. 4310. LIMITATIONS.
‘‘(a) DURATION OF AWARDS.—A grant under this
part shall be awarded for a period that shall not exceed
three fiscal years.
‘‘(b) LIMITATION ON PLANNING FUNDS.—A local
educational agency may expend for planning not more
than 50 percent of the funds received under this part for
the first year of the project, 15 percent of such funds for
the second such year, and 10 percent of such funds for
the third such year.
‘‘(c) AMOUNT.—No local educational agency or con-
sortium awarded a grant under this part shall receive
more than $4,000,000 under this part in any one fiscal
year.
‘‘(d) TIMING.—To the extent practicable, the Sec-
retary shall award grants for any fiscal year under this
part not later than July 1 of the applicable fiscal year.
746
‘‘SEC. 4311. EVALUATIONS.
‘‘(a) RESERVATION.—The Secretary may reserve not
more than 2 percent of the funds appropriated under sec-
tion 4312(a) for any fiscal year to carry out evaluations,
technical assistance, and dissemination projects with re-
spect to magnet school projects and programs assisted
under this part.
‘‘(b) CONTENTS.—Each evaluation described in sub-
section (a), at a minimum, shall address—
‘‘(1) how and the extent to which magnet school
programs lead to educational quality and improve-
ment;
‘‘(2) the extent to which magnet school pro-
grams enhance student access to quality education;
‘‘(3) the extent to which magnet school pro-
grams lead to the elimination, reduction, or preven-
tion of minority group isolation in elementary and
secondary schools with substantial proportions of mi-
nority students; and
‘‘(4) the extent to which magnet school pro-
grams differ from other school programs in terms of
the organizational characteristics and resource allo-
cations of such magnet school programs.
747
‘‘SEC. 4312. AUTHORIZATION OF APPROPRIATIONS; RES-
ERVATION.
‘‘(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 4 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 sub-
section (a) exceeds $75,000,000, the Secretary shall give
priority to using such amounts in excess of $75,000,000
to award grants to local educational agencies or consortia
of such agencies that did not receive a grant under this
part in the preceding fiscal year.’’.
SEC. 422. WOMEN’S EDUCATIONAL EQUITY.
(a) TRANSFER
AND REDESIGNATION.—Part B of
title V (20 U.S.C. 7231 et seq.) is transferred and redesig-
nated as subpart 2 of part C of title IV. Sections 5201
through 5208 are redesignated as sections 4321 through
4328, respectively.
(b) REPORT.—Section 4326 (as so redesignated) is
amended by striking ‘‘January 1, 1999,’’ and inserting
‘‘January 1, 2005,’’.
(c) EVALUATION
AND
DISSEMINATION.—Section
4327(a) (as so redesignated) is amended—
748
(1) by striking ‘‘14701,’’ and inserting ‘‘8651,’’;
and
(2) by striking ‘‘January 1, 1998.’’ and insert-
ing ‘‘January 1, 2004.’’.
(d) REAUTHORIZATION.—Section 4328 (as so redes-
ignated) is amended by striking ‘‘$5,000,000 for fiscal
year 1995 and such sums as may be necessary for each
of the four succeeding fiscal years,’’ and inserting
‘‘$3,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the four succeeding fiscal years,’’.
(e) OTHER CONFORMING AMENDMENTS.—
(1) SHORT TITLE.—Section 4321(a) (as so re-
designated) is amended to read as follows:
‘‘(a) SHORT TITLE.—This subpart may be cited as
the ‘Women’s Educational Equity Act of 2001’.’’.
(2) REFERENCES.—Subpart 2 of part C of title
IV (as so redesignated) is amended—
(A) by striking ‘‘this part’’ each place such
term appears and inserting ‘‘this subpart’’; and
(B) by striking ‘‘5203(b)’’ each place such
term appears and inserting ‘‘4423(b)’’.
SEC. 423. CONTINUATION OF AWARDS.
Notwithstanding any other provision of this Act, any
person or agency that was awarded a grant under part
A of title V (20 U.S.C. 7201 et seq.), or a grant, contract,
749
or cooperative agreement under part B of such title (20
U.S.C. 7231 et seq.), prior to the date of the enactment
of this Act 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.
TITLE V—21ST CENTURY
SCHOOLS
SEC. 501. SAFE SCHOOLS.
Title V, except part B (which is transferred and re-
designated as subpart 2 of part C of title IV by section
422(a) of this Act) is amended to read as follows:
‘‘TITLE V—21ST CENTURY
SCHOOLS
‘‘PART A—SUPPORTING VIOLENCE AND DRUG
PREVENTION AND ACADEMIC ENRICHMENT
‘‘SEC. 5001. SHORT TITLE.
‘‘This part may be cited as the ‘21st Century Schools
Act of 2001’.
‘‘SEC. 5002. PURPOSE.
‘‘The purpose of this part is to support programs that
prevent the use of illegal drugs, prevent violence, provide
quality before and after school activities and supervision
for school age youth, involve parents and communities,
and are coordinated with related Federal, State, and com-
munity efforts and resources to foster a safe and drug-
750
free learning environment in which students increase their
academic achievement, through the provision of Federal
assistance to—
‘‘(1) States for grants to local educational agen-
cies and consortia of such agencies to establish, op-
erate, and improve local programs of drug and vio-
lence prevention in elementary and secondary
schools;
‘‘(2) States for grants to local educational agen-
cies, community-based organizations, and other pub-
lic entities and private organizations, for before and
after school programs for youth; and
‘‘(3) States and public and private nonprofit
and for-profit organizations to conduct training,
demonstrations, and evaluations.
‘‘SEC. 5003. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated—
‘‘(1) $475,000,000 for fiscal year 2002, and
such sums as may be necessary for each of the 4
succeeding fiscal years, for State grants under sub-
part 1;
‘‘(2) $900,000,000 for fiscal year 2002, and
such sums as may be necessary for each of the four
succeeding fiscal years, for State grants under sub-
part 2; and
751
‘‘(3) $60,000,000 for fiscal year 2002, and for
each of the 4 succeeding fiscal years, for national
programs under subpart 3.
‘‘Subpart 1—Safe Schools
‘‘SEC. 5111. RESERVATIONS AND ALLOTMENTS.
‘‘(a) RESERVATIONS.—From the amount made avail-
able under section 5003(1) to carry out this subpart for
each fiscal year, the Secretary—
‘‘(1) 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;
‘‘(2) shall reserve 1 percent or $4,750,000
(whichever is greater) of such amount for the Sec-
retary of the Interior to carry out programs de-
scribed in this subpart for Indian youth;
‘‘(3) shall reserve 0.2 percent of such amount
for Native Hawaiians to be used to carry out pro-
grams described in this subpart;
‘‘(4) notwithstanding section 3 of the Leave No
Child Behind Act of 2001, shall reserve an amount
752
necessary to make continuation grants to grantees
under part I of title X of this Act (under the terms
of those grants), as such part existed on the day be-
fore the effective date of the Leave No Child Behind
Act of 2001; and
‘‘(5) notwithstanding section 3 of the Leave No
Child Behind Act of 2001, shall reserve an amount
necessary to make continuation grants to grantees
under the Safe Schools/Healthy Students initiative
(under the terms of those grants), as it existed on
the day before the date of the effective date of the
Leave No Child Behind Act of 2001.
‘‘(b) STATE ALLOTMENTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary, for each fiscal year, shall
allocate among the States—
‘‘(A) one-half of the remainder not re-
served 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 re-
ceived under part A of title I for the preceding
753
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 1⁄2 of 1 percent of the total amount
allotted to all the States under this subsection.
‘‘(c) REALLOTMENT OF UNUSED FUNDS.—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 accord-
ance with this section.
‘‘(d) DEFINITION.—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.
‘‘SEC. 5112. RESERVATION OF STATE FUNDS FOR SAFE
SCHOOLS.
‘‘(a) STATE RESERVATION FOR THE GOVERNOR.—
‘‘(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
5111(b) for each fiscal year to award competitive
grants and contracts to local educational agencies,
community-based organizations, and other public en-
tities and private organizations for programs or ac-
754
tivities to support community efforts that com-
plement activities of local educational agencies de-
scribed in section 5115. Such officer shall award
grants based on—
‘‘(A) the quality of the activity or program
proposed; and
‘‘(B) how the program or activity is
aligned with the appropriate principles of effec-
tiveness described in section 5114(a).
‘‘(2) SPECIAL
CONSIDERATION.—In awarding
funds under subparagraph (A), a chief executive of-
ficer shall give special consideration to grantees that
pursue a comprehensive approach to drug and vio-
lence prevention by providing and incorporating
mental health services in their programs.
‘‘(3) ADMINISTRATIVE COSTS.—The chief exec-
utive officer of a State may use not more than 1
percent of the amount described in subparagraph
(A) for the administrative costs incurred in carrying
out the duties of such officer under this section.
‘‘(b) STATE FUNDS.—
‘‘(1) ADDITIONAL RESERVATIONS.—Each State
shall reserve an amount equal to the total amount
allotted to a State under section 5111(b), less the
amount reserved under subsection (a) and para-
755
graphs (2) and (3) of this subsection, for each fiscal
year for its local educational agencies.
‘‘(2) STATE ACTIVITIES.—A State may use not
more than 4 percent of the total amount available
under subsection (a) for State activities described in
subsection (c).
‘‘(3) STATE
ADMINISTRATION.—A State may
use not more than 1 percent of the amount made
available under subsection (a) for the administrative
costs of carrying out its responsibilities under this
subpart.
‘‘(c) ACTIVITIES.—
‘‘(1) IN GENERAL.—A State shall use a portion
of the funds described in subsection (b)(2), either di-
rectly, or through grants and contracts, to plan, de-
velop, and implement capacity building, technical as-
sistance, evaluation, program improvement services,
and coordination activities for local educational
agencies, community-based organizations, other pub-
lic entities, and private organizations that are de-
signed to support the implementation of programs
and activities under this subpart.
‘‘(2) DATA COLLECTION.—
‘‘(A) STATISTICS.—A State may use a por-
tion of the funds, not to exceed 20 percent, de-
756
scribed in subsection (b)(2), either directly or
through grants and contracts, to establish and
implement a statewide system of collecting data
regarding statistics on—
‘‘(i) truancy rates; and
‘‘(ii) the frequency, seriousness, and
incidence of violence and drug related of-
fenses resulting in suspensions and expul-
sion in elementary and secondary schools
in States.
‘‘(B) COMPILATION OF STATISTICS.—The
statistics shall be compiled in accordance with
definitions as determined in the State criminal
code, but shall not identify victims of crimes or
persons accused of crimes. The collected data
shall include, incident reports by school offi-
cials, anonymous student surveys, and anony-
mous teacher surveys.
‘‘(C) REPORTING.—Such data and statis-
tics shall be reported to the public and shall be
reported on a school-by-school basis.
‘‘(D) LIMITATION.—Nothing in this sub-
section shall be construed to authorize the Sec-
retary to require particular policies, procedures,
757
or practices with respect to crimes on school
property or school security.
‘‘(3) SAFE SCHOOLS.—The State shall establish
and implement a statewide policy requiring that stu-
dents attending persistently dangerous public ele-
mentary and secondary schools, as determined by
the State, or who become a victim of a violent crimi-
nal offense, as defined by State law, while in or on
the grounds of a public elementary school or sec-
ondary school that the student attends, be allowed to
attend a safe public elementary or secondary school,
within the local educational agency, including a pub-
lic charter school and allowing payment of reason-
able transportation costs and tuition costs for such
students.
‘‘SEC. 5113. STATE APPLICATION.
‘‘(a) IN GENERAL.—In order to receive an allotment
under section 5111 for any fiscal year, a State shall sub-
mit to the Secretary, at such time as the Secretary may
require, an application that—
‘‘(1) describes the activities to be funded under
section 5112(c);
‘‘(2) describes how activities funded under this
subpart will support State academic achievement
standards in accordance with section 1111;
758
‘‘(3) describes how funds under this subpart
will be coordinated with programs under this Act,
and other programs, as appropriate, in accordance
with the provisions of section 8306;
‘‘(4) 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 plan-
ning agency, the head of the State child welfare
agency, the head of the State board of education, or
their designees, and representatives of parents, stu-
dents, and community-based organizations;
‘‘(5) provides an assurance that the State will
cooperate with, and assist, the Secretary in con-
ducting data collection as required by section
5116(a);
‘‘(6) provides an assurance that the local edu-
cational agencies in the State will comply with the
provisions of section 8503 pertaining to the partici-
pation of private school children and teachers in the
programs and activities under this subpart;
759
‘‘(7) 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 au-
thorized under this subpart, and in no case supplant
such State, local, and other non-Federal funds;
‘‘(8) describes the results of the State’s needs
and resources assessment for violence and illegal
drug use prevention which shall be based on the re-
sults of on-going evaluation (which may include data
on the incidence and prevalence, age of onset, per-
ception of health risk and perception of social dis-
approval of violence and illegal drug use by youth in
schools and communities and the prevalence of risk
and protective factors or other scientifically based
research variables in the school and community);
‘‘(9)(A) provides a statement of the State’s per-
formance measures for drug and violence prevention
programs and activities to be funded under this part
that shall be developed in consultation between the
State and local officials and that consist of—
‘‘(i) performance indicators for drug and
violence prevention programs and activities; and
760
‘‘(ii) levels of performance for each per-
formance indicator;
‘‘(B) a description of the procedures the State
will use for assessing and publicly reporting progress
toward meeting those performance measures; and
‘‘(C) a plan for monitoring the implementation
of, and providing technical assistance regarding, the
activities and programs conducted by local edu-
cational agencies, community-based organizations,
other public entities, and private organizations under
this subpart;
‘‘(10) provides an assurance that the State will
consult with a representative sample of local edu-
cational agencies in the development of the definition
of ‘persistently dangerous school’ for the purposes of
section 5112(c)(3);
‘‘(11) provides a description of how the State
defines ‘persistently dangerous school’ for the pur-
poses of section 5112(c)(3); and
‘‘(12) provides an assurance that the State ap-
plication will be available for public review after sub-
mission of the application.
‘‘(b) GENERAL APPROVAL.—A State application sub-
mitted pursuant to subsection (a) shall be deemed to be
approved by the Secretary unless the Secretary makes a
761
written determination, prior to the expiration of the 90-
day period beginning on the date that the Secretary re-
ceives the application, that the application is in violation
of this subpart.
‘‘(c) DISAPPROVAL.—The Secretary shall not finally
disapprove a State application, except after giving the
State notice and opportunity for a hearing.
‘‘SEC. 5114. FORMULA GRANT PROGRAM.
‘‘(a) IN GENERAL.—
‘‘(1) FUNDS
TO
LOCAL
EDUCATIONAL
AGEN-
CIES.—A State shall provide the amount made avail-
able to the State under this subpart, less the
amounts reserved under sections 5111 and 5112 to
local educational agencies for drug and violence pre-
vention and education 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 to local
educational agencies based on the relative en-
rollments in public and private nonprofit ele-
mentary and secondary schools within the
boundaries of such agencies.
762
‘‘(2) ADMINISTRATIVE COSTS.—Of the amount
received under paragraph (1), a local educational
agency may use not more than 1 percent for the ad-
ministrative costs of carrying out its responsibilities
under this subpart.
‘‘(3) RETURN OF FUNDS TO STATE; REALLOCA-
TION.—
‘‘(A) RETURN.—Except as provided in
subparagraph (B), upon the expiration of the 1-
year period beginning on the date that a local
educational agency receives its allocation—
‘‘(i) such agency shall return to the
State any funds from such allocation that
remain unobligated; and
‘‘(ii) the State 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 obliga-
tion in the succeeding fiscal year—
‘‘(i) an amount equal to not more
than 25 percent of the allocation it re-
763
ceived under this subpart for such fiscal
year; or
‘‘(ii) upon a demonstration of good
cause by such agency and approval by the
State, an amount that exceeds 25 percent
of such allocation.
‘‘(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. 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, represent-
atives of schools to be served, school personnel,
and community organizations with relevant and
demonstrated expertise in drug and violence
prevention activities, students and parents.
‘‘(B) CONTINUED CONSULTATION.—On an
ongoing basis, the local educational agency shall
consult with such representatives and organiza-
764
tions 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 commu-
nity.
‘‘(2) DESIGN AND DEVELOPMENT.—To ensure
timely and meaningful consultation, a local edu-
cational 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, includ-
ing efforts to meet the principles of effectiveness de-
scribed in section 5115(a).
‘‘(d) CONTENTS OF APPLICATIONS.—
‘‘(1) IN GENERAL.—An application submitted
by a local educational agency under this section shall
contain—
‘‘(A) an assurance that the activities or
programs to be funded support State academic
achievement goals in accordance with section
1111;
‘‘(B) a detailed explanation of the local
educational agency’s comprehensive plan for
765
drug and violence prevention, which shall in-
clude a description of—
‘‘(i) how the plan will be coordinated
with programs under this Act, other Fed-
eral, State, and local programs for drug
and violence prevention, in accordance with
the provisions of section 8306;
‘‘(ii) the local educational agency’s
performance measures for drug and vio-
lence prevention programs and activities,
that shall consist of—
‘‘(I) performance indicators for
drug and violence prevention pro-
grams and activities; and
‘‘(II) levels of performance for
each performance indicator;
‘‘(iii) how such agency will assess and
publicly report progress toward attaining
its performance measures;
‘‘(iv) 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 sec-
tion 5115(a), and the means of evaluating
such activity or program; and
766
‘‘(v) how the services will be targeted
to schools and students with the greatest
need;
‘‘(C) a certification that a meaningful as-
sessment has been conducted to determine com-
munity needs (including consultation with com-
munity leaders, businesses, and school officials),
available resources and capacity in the public
and private sector (which may include an anal-
ysis based on data reasonably available at the
time 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, preva-
lence of risk and protective factors, buffers or
assets, or other scientifically based research
variables in the school and community), the
findings of such assessments;
‘‘(D) 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 sub-
part, be made available for programs and activi-
ties authorized under this subpart, and in no
767
case supplant such State, local, and other non-
Federal funds;
‘‘(E) a description of the mechanisms used
to provide effective notice to the community of
an intention to submit an application under this
title;
‘‘(F) an assurance that drug prevention
programs supported under this part convey a
clear and consistent message that the illegal use
of drugs is wrong and harmful;
‘‘(G) an assurance that the local edu-
cational agency has established and imple-
mented a student code of conduct policy that
clearly states responsibilities of students, teach-
ers, and administrators in maintaining a class-
room environment that allows a teacher to com-
municate effectively with all students in the
class, that allows all students in the class to
learn, has consequences that are fair and ap-
propriate for violations, and is enforced equi-
tably;
‘‘(H) an assurance that the application and
any waiver request will be available for public
review after submission of the application; and
768
‘‘(I) such other information and assurances
as the State may reasonably require.
‘‘(2) GENERAL APPROVAL.—A local educational
agency’s application submitted to the State under
this subpart shall be deemed to be approved by the
State unless the State makes a written determina-
tion, prior to the expiration of the 90-day period be-
ginning on the date that the State receives the appli-
cation, that the application is in violation of this
subpart.
‘‘(3) DISAPPROVAL.—The State shall not finally
disapprove a local educational agency application,
except after giving such agency notice and an oppor-
tunity for a hearing.
‘‘SEC. 5115. AUTHORIZED ACTIVITIES.
‘‘(a) PRINCIPLES OF EFFECTIVENESS.—
‘‘(1) IN GENERAL.—For a program or activity
developed pursuant to this subpart to meet the prin-
ciples of effectiveness, such program or activity
shall—
‘‘(A) be based upon an assessment of ob-
jective data regarding the incidence of violence
and illegal drug use in the elementary and sec-
ondary schools and communities to be served,
including an objective analysis of the current
769
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 activi-
ties;
‘‘(B) be based upon an established set of
performance measures aimed at ensuring that
the elementary and secondary schools and com-
munities to be served by the program have a
drug-free, safe, and orderly learning environ-
ment; and
‘‘(C) be based upon scientifically based re-
search that provides evidence that the program
to be used will reduce violence and illegal drug
use.
‘‘(2) PERIODIC EVALUATION.—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 perform-
ance measures described in section 5114(d)(1)(B)(ii)
The results shall be used to refine, improve, and
strengthen the program, and to refine the perform-
770
ance measures. The results shall also be made avail-
able 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 paragraph (1)(C) to allow innovative activities or
programs that demonstrate substantial likelihood of
success.
‘‘(b) LOCAL EDUCATIONAL AGENCY ACTIVITIES.—
‘‘(1) PROGRAM REQUIREMENTS.—A local edu-
cational agency shall use funds made available under
section 5114 to develop, implement, and evaluate
comprehensive programs and activities, which are co-
ordinated with other school and community-based
services and programs, that shall—
‘‘(A) support State academic achievement
goals in accordance with section 1111;
‘‘(B) be consistent with the principles of
effectiveness described in subsection (a);
‘‘(C) be designed to—
‘‘(i) prevent or reduce violence and il-
legal drug use, delinquency, serious dis-
cipline 
problems, 
and 
poor 
academic
achievement and illegal drug use; and
771
‘‘(ii) create a well disciplined environ-
ment 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 promote the in-
volvement of parents in the activity or program,
to promote coordination with community groups
and coalitions, and government agencies, and to
distribute information about the local edu-
cational 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, such as—
‘‘(A) developmentally appropriate drug and
violence prevention programs in both elemen-
tary and secondary schools that incorporate a
variety of prevention strategies and activities,
which may include—
‘‘(i) teaching students that most peo-
ple do not use illegal drugs;
772
‘‘(ii) teaching students to recognize
social and peer pressure to use illegal
drugs and the skills for resisting illegal
drug use;
‘‘(iii) teaching students about the dan-
gers of emerging drugs;
‘‘(iv) engaging students in the learn-
ing process;
‘‘(v) incorporating activities in sec-
ondary schools that reinforce prevention
activities 
implemented 
in 
elementary
schools; and
‘‘(vi) involving families and commu-
nities in setting clear expectations against
violence and illegal drug use and enforcing
appropriate consequences for violence and
illegal drug use;
‘‘(B) training of school personnel and par-
ents in youth drug and violence prevention, in-
cluding training in early identification, interven-
tion, and prevention of threatening behavior;
‘‘(C) community-wide strategies for reduc-
ing violence and illegal drug use, and illegal
gang activity;
773
‘‘(D) to the extent that expenditures do
not exceed 20 percent of the amount made
available to a local educational agency under
this subpart (except that this subparagraph
shall not apply to the hiring and training of
school resource officers pursuant to clause (ii)),
law 
enforcement 
and 
security 
activities,
including—
‘‘(i) acquisition and installation of
metal detectors;
‘‘(ii) hiring and training of security
personnel (including school resource offi-
cers), that are related to youth drug and
violence prevention;
‘‘(iii) reporting of criminal offenses on
school property; and
‘‘(iv) development of comprehensive
school security assessments;
‘‘(E) expanding and improving school-
based mental health services, including early
identification of violence and illegal drug use,
assessment, and direct individual or group
counseling services provided to students, par-
ents, and school personnel by qualified school
based mental health services personnel;
774
‘‘(F) establishing and maintaining peer
mediation programs that include educating and
training peer mediators and a designated fac-
ulty supervisor and purchasing necessary mate-
rials to facilitate training and the mediation
process;
‘‘(G) alternative education programs or
services that reduce the need for suspensions or
expulsions or programs or services for students
who have been expelled or suspended from the
regular educational settings, including programs
or services to assist students to reenter the reg-
ular education setting upon return from treat-
ment or alternative education programs;
‘‘(H) counseling, mentoring, and referral
services, and other student assistance practices
and programs, including assistance provided by
qualified school based mental health services
personnel and the training of teachers by
school-based mental health service providers in
appropriate identification and intervention tech-
niques for students, at risk of violent behavior
and drug use;
‘‘(I) activities that reduce truancy;
775
‘‘(J) 
age 
appropriate, 
developmentally
based violence prevention and education pro-
grams that address the legal, health, personal,
and social consequences of illegal drug use and
violent and disruptive behavior 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;
‘‘(K) providing guidance to students that
encourages students to seek advice for anxiety,
threats of violence, or actual violence and to
confide in a trusted adult regarding an uncom-
fortable or threatening situation;
‘‘(L) the development of educational pro-
grams that prevent school based crime, includ-
ing preventing crimes motivated by hate that
result in acts of physical violence at school and
any programs or published materials that ad-
dress school based crime shall not recommend
or require any action that abridges or infringes
upon the constitutionally protected rights of
free speech, religion, and equal protection of
students, their parents, or legal guardians;
776
‘‘(M) testing students for illegal drug use
or conducting student locker searches for illegal
drugs or drug paraphernalia consistent with the
4th amendment to the Constitution;
‘‘(N) emergency intervention services fol-
lowing traumatic crisis events, such as a shoot-
ing, major accident, or a drug-related incident,
that has disrupted the learning environment;
‘‘(O) establishing and implementing a sys-
tem for transferring suspension and expulsion
records by a local educational agency to any
public or private elementary or secondary
school;
‘‘(P) allowing students attending a persist-
ently dangerous public elementary or secondary
school, as determined by the State, or who be-
come a victim of a violent criminal offense, as
defined by State law, while in or on the grounds
of a public elementary school or secondary
school that the student attends, to attend a safe
public elementary or secondary school, within
the local educational agency, including a public
charter school, and allowing payment of reason-
able transportation costs and tuition costs for
such students;
777
‘‘(Q) the development and implementation
of character education and training programs
that reflect values, that take into account the
views of parents or guardians of the student for
whom the program is intended, which may in-
clude honesty, citizenship, courage, justice, re-
spect, 
personal 
responsibility, 
and 
trust-
worthiness;
‘‘(R) establishing and maintaining a school
violence hotline;
‘‘(S) activities to ensure students’ safe
travel to and from school, including pedestrian
and bicycle safety education; and
‘‘(T) the evaluation of any of the activities
authorized under this subsection and the collec-
tion of any data required by this part.
‘‘SEC. 5116. EVALUATION AND REPORTING.
‘‘(a) DATA COLLECTION.—
‘‘(1) IN GENERAL.—The National Center for
Education Statistics shall report, and when appro-
priate, collect data to determine the frequency, seri-
ousness, and incidence of illegal drug use and vio-
lence by youth in schools and communities in the
States, using if appropriate, data submitted by the
States pursuant to subsection (b).