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TITLE III—AMENDMENTS TO
OTHER ACTS
PART A—AMENDMENTS TO THE INDIVIDUALS
WITH DISABILITIES EDUCATION ACT
SEC. 311. ALLOCATIONS UNDER SECTION 611 OF THE IDEA.
(a) MAXIMUM AMOUNT.—Subsection (a) of section 611
of the Individuals with Disabilities Education Act (here-
after in this part referred to as the ‘‘Act’’) (20 U.S.C.
1141(a)) is amended—
(1) by amending paragraph (1) to read as fol-
lows:
‘‘(1) Except as provided in paragraph (5), the
maximum amount of the grant for which a State is
entitled under this section for any fiscal year is—
‘‘(A) the sum of—
‘‘(i) the number of children with dis-
abilities in the State, aged 6 through 21,
who are receiving special education and re-
lated services, as determined under para-
graph (3); and
‘‘(ii) if the State is eligible for a grant
under section 619, the number of such chil-
dren in the State, aged 3 through 5; multi-
plied by
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‘‘(B) 40 percent of the average per-pupil ex-
penditure in public elementary and secondary
schools in the United States.’’;
(2) by amending paragraph (2) to read as fol-
lows:
‘‘(2) For the purpose of this section, the term
‘State’ means each of the 50 States, the District of Co-
lumbia, and the Commonwealth of Puerto Rico.’’; and
(3) in paragraph (5)(A)—
(A) in clause (i), by striking ‘‘and the
State’’ and inserting ‘‘, or the combined percent-
age of such children counted by the Secretary for
the purpose of making fiscal year 1994 alloca-
tions under this section and under subpart 2 of
part D of chapter 1 of title I of the Elementary
and Secondary Education Act of 1965 (as such
subpart was in existence on the day preceding
the date of enactment of the Improving Ameri-
ca’s Schools Act of 1994), whichever is greater, if
the State’’;
(B) in clause (ii)—
(i) by striking ‘‘and the State’’ and in-
serting ‘‘, or the combined percentage of
such children counted by the Secretary for
the purpose of making fiscal year 1994 allo-
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cations under this section and under sub-
part 2 of part D of chapter 1 of title I of
the Elementary and Secondary Education
Act of 1965 (as such subpart was in exist-
ence on the day preceding the date of enact-
ment of the Improving America’s Schools
Act of 1994), whichever is greater, if the
State’’; and
(ii) by striking ‘‘; and’’ and inserting
a period; and
(C) by striking clause (iii).
(b) STATE USES.—Subsection (b) of section 611 of the
Act (20 U.S.C. 1141(b)) is amended to read as follows:
‘‘(b)(1) Notwithstanding subsections (a) and (g), no
State shall receive an amount under this section for any
of the fiscal years 1995 through 1999 that is less than the
sum of the amount such State received for fiscal year 1994
under—
‘‘(A) this section; and
‘‘(B) subpart 2 of part D of chapter 1 of title I
of the Elementary and Secondary Education Act of
1965 (as such subpart was in existence on the day
preceding the date of enactment of the Improving
America’s Schools Act of 1994) for children with dis-
abilities aged 3 through 21.
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‘‘(2) If, for fiscal year 1998 or 1999, the number of
children determined under subsection (a)(3) for any State
is less than the total number of children with disabilities,
aged 3 through 21, counted for that State’s fiscal year 1994
grants under this section and under subpart 2 of part D
of chapter 1 of title I of the Elementary and Secondary
Education Act of 1965 (as such subpart was in existence
on the day preceding the date of enactment of the Improving
America’s Schools Act of 1994), then the amount determined
under paragraph (1) for that State shall be reduced by the
same percentage by which the number of those children so
declined.
‘‘(3)(A) If the sums made available under this part
for any fiscal year are insufficient to pay the full amounts
that all States are eligible to receive under paragraphs (1)
and (2) for such year, the Secretary shall ratably reduce
the allocations to such States for such year.
‘‘(B) If additional funds become available for making
payments under paragraphs (1) and (2) for such fiscal
year, allocations that were reduced under subparagraph (A)
shall be increased on the same basis as such allocations were
reduced.’’.
(c) D ISTRIBUTION.—Subsection (c) of section 611 of
the Act (20 U.S.C. 1141(c)) is amended—
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(1) by amending paragraph (1) to read as fol-
lows:
‘‘(1) Of the funds received under subsection (a)
by any State for any fiscal year—
‘‘(A) a State may use not more than 25 per-
cent of such funds in accordance with paragraph
(2); and
‘‘(B) except as provided in paragraph (4),
the State shall distribute at least 75 percent of
such funds to local educational agencies and in-
termediate educational units, in accordance with
subsection (d), for use in accordance with prior-
ities established under section 612(3).’’; and
(2) in paragraph (2), by amending subpara-
graph (A) to read as follows:
‘‘(A) From the funds that any State may
use under paragraph (1)(A) for any fiscal year,
the State—
‘‘(i) may use 5 percent of the funds re-
ceived under this section or $450,000,
whichever is greater, for administrative
costs related to carrying out sections 612
and 613; and
‘‘(ii) shall use the remainder—
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‘‘(I) to provide support services
and direct services, subject to subpara-
graph (B), in accordance with prior-
ities established under section 612(3);
and
‘‘(II) for the administrative costs
of monitoring and complaint investiga-
tion, but only to the extent that such
costs exceed the costs of administration
incurred during fiscal year 1985.’’.
(d) F ORMULA.—Subsection (d) of section 611 of the
Act (20 U.S.C. 1141(d)) is amended to read as follows:
‘‘(d)(1) From the total amount of funds available for
any fiscal year under subsection (c)(1)(B), the State shall
provide to each local educational agency or intermediate
educational unit an amount that bears the same ratio to
such total amount as the number of children, aged 3 through
21, determined under subsection (a)(3) for such agency or
unit bears to the total number of such children determined
for all such agencies and units that apply for such funds.
‘‘(2)(A) To the extent necessary, the State—
‘‘(i) shall use funds available under subsection
(c)(2)(A)(ii) to ensure that each State agency that re-
ceived funds for fiscal year 1994 under subpart 2 of
part D of chapter 1 of title I of the Elementary and
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the number of children aged 3 through 21 for whom such
agency received funds under such subpart for such fiscal
year.’’.
(e) J URISDICTIONS.—Paragraph (1) of section 611(e)
of the Act (20 U.S.C. 1141(e)(1)) is amended to read as
follows:
‘‘(1) The jurisdictions to which this subsection
applies are Guam, American Samoa, the Virgin Is-
lands, the Commonwealth of the Northern Mariana
Islands, and Palau.’’.
(f) INSUFFICIENT APPROPRIATIONS.—Subsection (g) of
section 611 of the Act (20 U.S.C. 1141(g)) is amended to
read as follows:
‘‘(g)(1)(A) If the sums appropriated under subsection
(h) for any fiscal year are not sufficient to pay in full the
total of the amounts that all States are eligible to receive
under subsection (a), each such amount shall be ratably re-
duced.
‘‘(B) If additional funds become available for making
such payments for any fiscal year, such reduced amounts
shall be increased on the same basis as such payments were
reduced.
‘‘(C) Any State that receives any such additional funds
shall distribute such funds in accordance with this section,
except that any State that has used funds available under
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subsection (c)(2)(A)(ii) for the purposes described in sub-
section (d)(2) may—
‘‘(i) deduct, from the amount that the State
would otherwise be required to make available to local
educational agencies and intermediate educational
units, the same amount of such additional funds as
the State so used; and
‘‘(ii) use such funds in accordance with sub-
section (c)(2)(A)(ii).
‘‘(2)(A) In any fiscal year for which payments have
been reduced and additional funds have not been made
available under paragraph (1) to pay in full the amounts
for which all States are eligible under this section, each
State educational agency shall fix dates by which each local
educational agency or intermediate educational unit shall
report to the State agency the amount of funds available
to such agency under this section that such agency estimates
such agency will expend.
‘‘(B) The State educational agency shall, in accordance
with this section, reallocate any funds that the State edu-
cational agency determines will not be used during the pe-
riod of availability by local educational agencies and inter-
mediate educational units, and by any such agency or unit
to which such funds would be available if such agency or
unit applied for such funds under this part, to those local
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educational agencies and intermediate educational units
that the State educational agency determines will need, and
be able to use, additional funds to carry out approved pro-
grams.’’.
SEC. 312. TREATMENT OF CHAPTER 1 STATE AGENCIES.
Part B of the Act (20 U.S.C. 1141 et seq.) is further
amended by inserting after section 614 the following new
section:
‘‘TREATMENT OF CHAPTER 1 STATE AGENCIES
‘‘SEC. 614A. (a) For the purpose of making payments
under sections 611 and 619 of this Act, any State agency
that received funds for fiscal year 1994 under subpart 2
of part D of chapter 1 of title I of the Elementary and
Secondary Education Act of 1965 (as such subpart was in
existence on the day preceding the date of enactment of the
Improving America’s Schools Act of 1994) shall be treated
as if the State agency were a local educational agency.
‘‘(b) Any State agency which desires to receive pay-
ments under section 611(d) and section 619(c)(3) for any
fiscal year shall submit an application to the State edu-
cational agency. Such application shall—
‘‘(1) include an assurance that all children with
disabilities who are participating in programs and
projects funded under this part receive a free appro-
priate public education, and that such children and
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their parents are provided all the rights and proce-
dural safeguards described in this part; and
‘‘(2) meet those requirements of section 614 that
the Secretary finds appropriate.
‘‘(c) Section 611(c)(4) shall not apply with respect to
a State agency that is eligible for a payment under this
part by application of this section.’’.
SEC. 313. INFANTS AND TODDLERS WITH DISABILITIES.
(a) AMENDMENT.—Subsection (c) of section 684 of the
Act (20 U.S.C. 1484) is amended—
(1) by redesignating paragraph (2) as para-
graph (6);
(2) by amending paragraph (1) to read as fol-
lows:
‘‘(1) Except as provided in paragraphs (3), (4),
and (5) from the funds remaining for each fiscal year
after the reservation and payments under subsections
(a) and (b), the Secretary shall first allot to each
State an amount that bears the same ratio to the
amount of such remainder as the number of infants
and toddlers in the State bears to the number of in-
fants and toddlers in all States.’’; and
(3) by inserting after paragraph (1) the follow-
ing new paragraphs:
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‘‘(2) For fiscal year 1995 only, the Secretary
shall allot $34,000,000 of the remaining funds de-
scribed in paragraph (1) among the States in propor-
tion to their relative numbers of infants and toddlers
with disabilities who—
‘‘(A) are counted on December 1, 1994; and
‘‘(B) would have been eligible to be counted
under section 1221(c)(1) of the Elementary and
Secondary Education Act of 1965 (as such sec-
tion was in effect on the day preceding the date
of the enactment of the Improving America’s
Schools Act of 1994).
‘‘(3) Except as provided in paragraphs (4) and
(5), no State shall receive an amount under this sec-
tion for any fiscal year that is less than the greater
of—
‘‘(A) one-half of one percent of the remain-
ing amount described in paragraph (1), exclud-
ing any amounts allotted under paragraph (2);
or
‘‘(B) $500,000.
‘‘(4)(A) Except as provided in paragraph (5), no
State shall receive an amount under this section for
any of the fiscal years 1995 through 1999 that is less
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than the sum of the amount such State received for
fiscal year 1994 under—
‘‘(i) this part; and
‘‘(ii) subpart 2 of part D of chapter 1 of
title I of the Elementary and Secondary Edu-
cation Act of 1965 (as such subpart was in exist-
ence on the day preceding the date of enactment
of the Improving America’s Schools Act of 1994)
for children with disabilities from birth through
age 2.
‘‘(B) If, for fiscal year 1998 or 1999, the number
of infants and toddlers in any State, as determined
under paragraph (1), is less than the number of in-
fants and toddlers so determined for fiscal year 1994,
the amount determined under subparagraph (A) for
that State shall be reduced by the same percentage by
which the number of those infants and toddlers so de-
clined.
‘‘(5)(A) If the sums made available under this
part for any fiscal year are insufficient to pay the
full amounts that all States are eligible to receive
under this subsection for such year, the Secretary
shall ratably reduce the allocations to such States for
such year.
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‘‘(B) If additional funds become available for
making payments under this subsection for such fiscal
year, allocations that were reduced under subpara-
graph (A) shall be increased on the same basis as such
allocations were reduced.’’.
(b) EFFECTIVE DATE.—Subsection (a) and the amend-
ments made by subsection (a) shall take effect on October
1, 1994.
SEC. 314. FAMILY SUPPORT FOR FAMILIES OF CHILDREN
WITH DISABILITIES.
(a) S HORT TITLE.—This section may be cited as the
‘‘Support for Families of Children With Disabilities Act of
1994’’.
(b) F AMILY SUPPORT FOR FAMILIES OF CHILDREN
WITH DISABILITIES.—
The Individuals with Disabilities Education Act (20
U.S.C. 1400 et seq.) is amended by adding at the end the
following new part:
‘‘PART I—FAMILY SUPPORT
‘‘SEC. 701. SHORT TITLE.
‘‘This part may be cited as the ‘Families of Children
With Disabilities Support Act of 1994’.
‘‘SEC. 702. FINDINGS, PURPOSES, AND POLICY.
‘‘(a) FINDINGS.—The Congress makes the following
findings:
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‘‘(1) It is in the best interest of our Nation to
preserve, strengthen, and maintain the family.
‘‘(2) Families are the greatest natural resource
available to their children and are the major provid-
ers of support, care, and training of their children.
‘‘(3) Families of children with disabilities enrich
the lives of all citizens through the contributions of
such families to the economic, health, and social fab-
ric of their community, State, and Nation.
‘‘(4) A growing number of families are searching
for ways to empower themselves to raise their children
with disabilities at home and in their communities.
Supporting such families to enable them to care for
their children with disabilities at home is efficient
and can be cost-effective.
‘‘(5) Children, including children with disabil-
ities, benefit from enduring family relationships in a
nurturing home environment.
‘‘(6) Many families experience exceptionally high
financial outlays and significant physical and emo-
tional challenges in meeting the special needs of their
children with disabilities.
‘‘(7) There are financial disincentives for fami-
lies to care for their children with disabilities at
home.
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‘‘(8) Most families of children with disabilities
do not have access to family-centered and family-di-
rected services to support such families in their efforts
to care for their children with disabilities at home.
‘‘(9) There is a need in each State for a com-
prehensive, coordinated, interagency system of family
support for families of children with disabilities that
is family-centered and family-directed, is easily acces-
sible, avoids duplication, uses existing resources more
efficiently, and prevents gaps in services to families
in all areas of the State.
‘‘(10) The goals of the Nation properly include
the goal of providing families of children with disabil-
ities the family support necessary to accomplish the
following:
‘‘(A) To support the family.
‘‘(B) To enable families of children with
disabilities to nurture and enjoy their children
at home.
‘‘(C) To enable families of children with
disabilities to make informed choices and deci-
sions regarding the nature of services, supports,
and resources made available to such families.
‘‘(b) PURPOSES.—The purposes of this part are as fol-
lows:
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‘‘(1) To provide financial assistance to the States
to support systems change activities designed to assist
each State to develop and implement, or expand and
enhance, a family-centered and family-directed, cul-
turally competent, community-centered, comprehen-
sive, statewide system of family support for families
of children with disabilities that is designed to—
‘‘(A) ensure the full participation, choice
and control of families of children with disabil-
ities in decisions related to the provision of such
family support for their family;
‘‘(B) ensure the active involvement of fami-
lies of children with disabilities in the planning,
development, implementation, and evaluation of
such a statewide system;
‘‘(C) increase the availability of, funding
for, access to, and provision of family support
for families of children with disabilities;
‘‘(D) promote training activities that are
family-centered and family-directed and that en-
hance the ability of family members of children
with 
disabilities 
to 
increase 
participation,
choice, and control in the provision of family
support for families of children with disabilities;
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‘‘(E) increase and promote interagency co-
ordination among State agencies, and between
State agencies and private entities that are in-
volved in carrying out activities under section
708; and
‘‘(F) increase the awareness of laws, regula-
tions, policies, practices, procedures, and organi-
zational structures, which facilitate or impede
the availability or provision of family support
for families of children with disabilities.
‘‘(2) To enhance the ability of the Federal Gov-
ernment to—
‘‘(A) identify Federal policies that facilitate
or impede family support for families of children
with disabilities, and that are consistent with the
principles in subsection (c);
‘‘(B) provide States with technical assist-
ance and information relating to the provision of
family support for families of children with dis-
abilities;
‘‘(C) conduct an evaluation of the program
of grants to States; and
‘‘(D) provide funding for model demonstra-
tion and innovation projects.
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‘‘(c) POLICY.—It is the policy of the United States that
all programs, projects, and activities receiving assistance
under this part shall be family-centered and family-directed
and shall be carried out in a manner consistent with the
following principles:
‘‘(1) Family support for families of children
with disabilities must focus on the needs of the entire
family.
‘‘(2) Families of children with disabilities should
be supported in determining their needs and in mak-
ing decisions concerning necessary, desirable, and ap-
propriate services.
‘‘(3) Families should play decisionmaking roles
in policies and programs that affect the lives of such
families.
‘‘(4) Family needs change over time and family
support for families of children with disabilities must
offer options that are flexible and responsive to the
unique needs and strengths and cultural values of in-
dividual families.
‘‘(5) Family support for families of children
with disabilities is proactive and not solely in re-
sponse to a crisis.
‘‘(6) Families must be supported in their efforts
to promote the integration and inclusion of their chil-
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dren with disabilities into all aspects of community
life.
‘‘(7) Family support for families of children
with disabilities should promote the use of existing so-
cial networks, strengthen natural sources of support,
and help build connections to existing community re-
sources and services.
‘‘(8) Youth with disabilities should be involved in
decisionmaking about their own lives, consistent with
the unique strengths, resources, priorities, concerns,
abilities, and capabilities of each such youth.
‘‘(9) Services and supports must be provided in
a manner that demonstrates respect for individual
dignity, personal responsibility, self-determination,
personal preferences, and cultural differences of fami-
lies.
‘‘(d) R ULE OF CONSTRUCTION.—Nothing in this part
shall be construed to prevent families from choosing an out-
of-home placement for their children with disabilities, in-
cluding institutional placement for such children.
‘‘SEC. 703. DEFINITIONS.
‘‘For the purposes of this part, only the following defi-
nitions shall apply:
‘‘(1) CHILD
WITH
A
DISABILITY.—The term
‘child with a disability’ means an individual who
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from birth through 21 years of age meets the defini-
tion of disability under paragraph (4).
‘‘(2) COUNCIL.—The term ‘Council’ means a
State Policy Council for Families of Children with
Disabilities established by a State under section 707.
‘‘(3) CULTURALLY COMPETENT.—The term ‘cul-
turally competent’ means services, supports, or other
assistance that is conducted or provided in a manner
that—
‘‘(A) is responsive to the beliefs, inter-
personal styles, attitudes, language, and behav-
iors of those individuals receiving services; and
‘‘(B) has the greatest likelihood of ensuring
maximum participation of such individuals.
‘‘(4) DISABILITY.—The term ‘disability’ means—
‘‘(A) in the case of an individual 6 years of
age or older, a significant physical or mental
impairment as defined pursuant to State policy
to the extent that such policy is established with-
out regard to type of disability; and
‘‘(B) in the case of infants and young chil-
dren, birth to age 5, inclusive, a substantial de-
velopmental delay or specific congenital or ac-
quired conditions with a high probability of re-
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sulting in a disability if services are not pro-
vided.
‘‘(5) EXISTING
COUNCIL.—The term ‘existing
Council’ means an entity or a committee of an entity
that—
‘‘(A) is established by a State prior to the
date on which the State submits an application
for funding under this part;
‘‘(B) has authority to advise the State with
respect to family support for families of children
with disabilities; and
‘‘(C) may have the authority to carry out
other responsibilities and duties.
‘‘(6) F AMILY.—The term ‘family’ means a group
of interdependent persons residing in the same house-
hold that consists of a child with a disability and one
or more of the following:
‘‘(A) A mother, father, brother, sister or any
combination.
‘‘(B) Extended blood relatives, such as a
grandparent, aunt, or uncle.
‘‘(C) An adoptive parent.
‘‘(D) One or more persons to whom legal
custody of a child with a disability has been
given by a court.
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‘‘(E) A person providing short-term foster
care that includes a family reunification plan
with the biological family.
‘‘(F) A person providing long-term foster
care for a child with a disability.
The term does not include employees who, acting in
their paid employment capacity, provide services to
children with disabilities in out-of-home settings such
as hospitals, nursing homes, personal care homes,
board and care homes, group homes, or other facili-
ties.
‘‘(7) 
FAMILY-CENTERED
AND
FAMILY-DI-
RECTED.—The term ‘family-centered and family-di-
rected’ means, with respect to a service or program,
that the service or program—
‘‘(A) facilitates the full participation,
choice, and control by families of children with
disabilities in—
‘‘(i) decisions relating to the supports
that will meet the priorities of the family;
and
‘‘(ii) the planning, development, imple-
mentation, and evaluation of the statewide
system of family support for families of
children with disabilities;
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‘‘(B) responds to the needs of the entire fam-
ily of a child with a disability in a timely and
appropriate manner; and
‘‘(C) is easily accessible to and usable by
families of children with disabilities.
‘‘(8) FAMILY SATISFACTION.—The term ‘family
satisfaction’ means the extent to which a service or
support meets a need, solves a problem, or adds value
for a family, as determined by the individual family.
‘‘(9) FAMILY SUPPORT FOR FAMILIES OF CHIL-
DREN WITH DISABILITIES.—The term ‘family support
for families of children with disabilities’—
‘‘(A) means supports, resources, services,
and other assistance provided to families of chil-
dren with disabilities that are designed to—
‘‘(i) support families in the efforts of
such families to raise their children with
disabilities in the family home;
‘‘(ii) strengthen the role of the family
as primary caregiver;
‘‘(iii) prevent inappropriate and un-
wanted 
out-of-the-home 
placement 
and
maintain family unity; and
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‘‘(iv) reunite families with children
with disabilities who have been placed out
of the home, whenever possible; and
‘‘(B) includes—
‘‘(i) service coordination that includes
individualized planning and brokering for
services with families in control of decision-
making;
‘‘(ii) goods and services, which may in-
clude specialized diagnosis and evaluation,
adaptive equipment, respite care (in and
out of the home), personal assistance serv-
ices, homemaker or chore services, behav-
ioral supports, assistive technology services
and devices, permanency or future plan-
ning, home and vehicle modifications and
repairs, equipment and consumable sup-
plies, transportation, specialized nutrition
and clothing, counseling services and men-
tal health services for family members, fam-
ily education or training services, commu-
nication services, crisis intervention, day
care and child care for a child with a dis-
ability, supports and services for integrated
and inclusive community activities, parent
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or family member support groups, peer sup-
port, sitter service or companion service,
and education aids; and
‘‘(iii) financial assistance, which may
include discretionary cash subsidies, allow-
ances, voucher or reimbursement systems,
low-interest loans, or lines of credit.
‘‘(10) INTEGRATION AND INCLUSION.—The term
‘integration and inclusion’ with respect to children
with disabilities and their families means—
‘‘(A) the use of the same community re-
sources that are used by and available to other
individuals and families;
‘‘(B) the full and active participation in the
same community activities and utilization of the
same community resources as individuals with-
out disabilities, living, learning, working, and
enjoying life in regular contact with individuals
without disabilities; and
‘‘(C) having friendships and relationships
with individuals and families of their own choos-
ing.
‘‘(11) LEAD
ENTITY.—The term ‘lead entity’
means an office or entity described in section 706.
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‘‘(12) S ECRETARY.—The term ‘Secretary’ means
the Secretary of Health and Human Services.
‘‘(13) S ERVICE COORDINATION.—The term ‘serv-
ice coordination’—
‘‘(A) means those family-centered and fam-
ily-directed activities that assist and enable fam-
ilies to receive rights and procedural safeguards
and to gain access to social, medical, legal, edu-
cational, and other supports and services; and
‘‘(B) includes—
‘‘(i) follow-along services that assure,
through a continuing relationship between a
family of a child with a disability and an
individual or entity, that the changing
needs of the child and family are recognized
and appropriately met;
‘‘(ii) the coordination and monitoring
of services provided to children with disabil-
ities and their families;
‘‘(iii) the provision of information to
children with disabilities and their families
about the availability of services and assist-
ance to such children and their families in
obtaining appropriate services; and
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‘‘(iv) the facilitation and organization
of existing social networks, and natural
sources of support, and community re-
sources and services.
‘‘(14) STATEWIDE
SYSTEM
OF
FAMILY
SUP-
PORT.—The term ‘statewide system of family support
for families of children with disabilities’ means a
family-centered and family-directed, culturally com-
petent, community-centered, comprehensive, statewide
system of family support for families of children with
disabilities developed and implemented by a State
under this part that—
‘‘(A) addresses the needs of all families of
children with disabilities, including unserved
and underserved populations; and
‘‘(B) addresses such needs without regard to
the age, type of disability, race, ethnicity, or gen-
der of such children or the particular major life
activity for which such children need the assist-
ance.
‘‘(15) SYSTEMS CHANGE ACTIVITIES.—The term
‘systems change activities’ means efforts that result in
laws, regulations, policies, practices, or organiza-
tional structures—
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‘‘(A) that are family-centered and family-
directed;
‘‘(B) that facilitate and increase access to,
provision of, and funding for, family support
services for families of children with disabilities;
and
‘‘(C) that otherwise accomplish the purposes
of this part.
‘‘(16) UNSERVED
AND
UNDERSERVED
POPU-
LATIONS.—The term ‘unserved and underserved popu-
lations’ includes populations such as individuals from
racial and ethnic minority backgrounds, disadvan-
taged individuals, individuals with limited-English
proficiency, individuals from underserved geographic
areas (rural or urban), and specific groups of indi-
viduals within the population of individuals with dis-
abilities, including individuals with disabilities at-
tributable to physical impairment, mental impair-
ment, or a combination of physical and mental im-
pairments.
‘‘SEC. 704. GRANTS TO STATES.
‘‘(a) I N GENERAL.—The Secretary shall make grants
to States on a competitive basis, in accordance with the
provisions of this part, to support systems change activities
designed to assist States to develop and implement, or ex-
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pand and enhance, a statewide system of family support
for families of children with disabilities that accomplishes
the purposes described in section 702.
‘‘(b) AWARD PERIOD AND GRANT LIMITATION.—No
grant shall be awarded for a period greater than 3 years.
A State shall be eligible for not more than one grant.
‘‘(c) AMOUNT OF GRANTS.—
‘‘(1) GRANTS TO STATES.—From amounts ap-
propriated under section 716(a), the Secretary shall
pay to each State that has an application approved
under section 705, for each year of the grant period,
an amount that is not less than $200,000 and not
more than $500,000.
‘‘(2) G RANTS TO TERRITORIES.—From amounts
appropriated under section 716(a) for any fiscal year,
the Secretary shall pay to each territory that has an
application approved under section 705 not more
than $100,000.
‘‘(3) C ALCULATION OF AMOUNTS.—The Secretary
shall calculate a grant amount described in para-
graph (1) or (2) on the basis of the following:
‘‘(A) The amounts available for making
grants under this section.
‘‘(B) The child population of the State or
territory concerned.
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‘‘(4) DEFINITIONS.—As used in this subsection:
‘‘(A) S TATE.—The term ‘State’ means each
of the 50 States of the United States, the District
of Columbia, and the Commonwealth of Puerto
Rico.
‘‘(B) TERRITORY.—The term ‘territory’
means the United States Virgin Islands, Guam,
American Samoa, the Commonwealth of the
Northern Mariana Islands, or the Republic of
Palau (upon the entry into force and effect of the
Compact of Free Association between the United
States and the Republic of Palau).
‘‘(d) PRIORITY
FOR
PREVIOUSLY
PARTICIPATING
STATES.—Amounts appropriated for purposes of carrying
out the provisions of this section in each of the 2 fiscal years
succeeding the fiscal year in which amounts are first appro-
priated for such purposes shall first be made available to
a State that—
‘‘(1) received a grant under this section during
the fiscal year preceding the fiscal year concerned;
and
‘‘(2) is making significant progress in accord-
ance with section 710.
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‘‘(e) PRIORITIES FOR DISTRIBUTION.—To the extent
practicable, the Secretary shall award grants to States
under this section in a manner that—
‘‘(1) is geographically equitable; and
‘‘(2) distributes the grants among States that
have differing levels of development of statewide sys-
tems of family support for families of children with
disabilities.
‘‘SEC. 705. APPLICATION.
‘‘A State that desires to receive a grant under this part
shall submit an application to the Secretary that contains
the following information and assurances:
‘‘(1) FAMILY-CENTERED AND FAMILY-DIRECTED
APPROACH.—An assurance that the State will use
funds made available under this part to accomplish
the purposes described in section 702 and the goals,
objectives, and family-centered outcomes described in
section 709(b) by carrying out systems change activi-
ties in partnership with families and in a manner
that is family-centered and family-directed.
‘‘(2) DESIGNATION OF THE LEAD ENTITY.—In-
formation identifying the lead entity, and evidence
documenting the abilities of such entity.
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‘‘(3) STATE POLICY COUNCIL FOR FAMILIES OF
CHILDREN WITH DISABILITIES.—An assurance of the
following:
‘‘(A) The State has established a Council
that meets the criteria set forth in section 707.
‘‘(B) The lead entity will seek and consider
on a regular and ongoing basis advice from the
Council regarding the development and imple-
mentation of the strategic plan under section
709, and other policies and procedures of general
applicability pertaining to the provision of fam-
ily support for families of children with disabil-
ities in the State.
‘‘(C) The lead entity will include, in its an-
nual progress reports, a summary of advice pro-
vided by the Council, including recommendations
from the annual report of the Council and the re-
sponse of the lead entity to such advice and rec-
ommendations.
‘‘(D) The lead entity will transmit to the
Council any other plans, reports, and other in-
formation required under this part.
‘‘(4) FAMILY
INVOLVEMENT.—A description of
the following:
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‘‘(A) The nature and extent of the involve-
ment of families of children with disabilities and
individuals with disabilities in the development
of the application.
‘‘(B) Strategies for actively involving fami-
lies of children with disabilities and individuals
with disabilities in the development, implemen-
tation, and evaluation of the statewide system of
family support for families of children with dis-
abilities.
‘‘(C) Strategies for actively involving fami-
lies of children with disabilities who use family
support services in decisions relating to such
services.
‘‘(5) AGENCY INVOLVEMENT.—A description of
the nature and extent of involvement of various State
agencies or units within State agencies in the prepa-
ration of the application and the continuing role of
each agency in the statewide system of family support
for families of children with disabilities.
‘‘(6) STATE RESOURCES.—A description of the
State resources and other resources that are available
to commit to the statewide system of family support
for families of children with disabilities.
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‘‘(7) UNMET NEEDS.—A description of unmet
needs for family support for families of children with
disabilities within the State.
‘‘(8) PRELIMINARY PLAN.—A preliminary plan
that contains information on the program to be car-
ried out under the grant with respect to the goals and
objectives of the State for the program and the activi-
ties that the State plans to carry out under the pro-
gram (including the process for appointing individ-
uals to the Council) and that is consistent with the
purposes of this part.
‘‘(9) A CTIVITIES.—An assurance that, except for
the first year of the grant, the State shall expend not
less than 65 percent of the funds made available to a
State under this part for grants and contracts to con-
duct the activities described in section 708.
‘‘(10) LIMIT ON ADMINISTRATIVE COSTS.—An as-
surance that the lead entity that receives funding
under this part in any fiscal year shall use not more
than 5 percent of such funds in such year for admin-
istrative expenses. Such administrative expenses shall
not include expenses related to the activities of the
Council.
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‘‘(11) STRATEGIC PLAN.—A description of the
measures that will be taken by the State to develop
a strategic plan in accordance with section 709.
‘‘(12) EVALUATION.—An assurance that the
State will conduct an annual evaluation of the state-
wide system of family support for families of children
with disabilities in accordance with section 710.
‘‘(13) COORDINATION WITH STATE AND LOCAL
COUNCILS.—An assurance that the lead entity will co-
ordinate the activities funded through a grant made
under this part with the activities carried out by
other relevant councils within the State.
‘‘(14) SUPPLEMENT OTHER FUNDS.—An assur-
ance, with respect to amounts received under a grant,
of the following:
‘‘(A) Such grant will be used to supplement
and not supplant amounts available from other
sources that are expended for programs of family
support for families of children with disabilities,
including the provision of family support.
‘‘(B) Such grant will not be used to pay a
financial obligation for family support for fami-
lies of children with disabilities that would have
been paid with amounts available from other
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sources if amounts under such grant had not
been available.
‘‘(15) O THER INFORMATION AND ASSURANCES.—
Such other information and assurances as the Sec-
retary may reasonably require.
‘‘SEC. 706. DESIGNATION OF THE LEAD ENTITY.
‘‘(a) D ESIGNATION.—The Chief Executive Officer of a
State that desires to receive a grant under section 704, shall
designate the office or entity (referred to in this part as
the ‘‘lead entity ’’) responsible for—
‘‘(1) submitting the application under section
705 on behalf of the State;
‘‘(2) administering and supervising the use of
the amounts made available under the grant;
‘‘(3) coordinating efforts related to and super-
vising the preparation of the application;
‘‘(4) coordinating the planning, development,
implementation (or expansion and enhancement), and
evaluation of a statewide system of family support
services for families of children with disabilities
among public agencies and between public agencies
and private agencies, including coordinating efforts
related to entering into interagency agreements; and
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‘‘(5) coordinating efforts related to the meaning-
ful participation by families in activities carried out
under a grant awarded under this part.
‘‘(b) QUALIFICATIONS.—In designating the lead entity,
the Chief Executive Officer may designate—
‘‘(1) an office of the Chief Executive Officer;
‘‘(2) a commission appointed by the Chief Exec-
utive Officer;
‘‘(3) a public agency;
‘‘(4) a council established under Federal or State
law; or
‘‘(5) another appropriate office, agency, or en-
tity.
‘‘(c) CAPABILITIES OF THE LEAD ENTITY.—The State
shall provide, in accordance with the requirements of sec-
tion 705, evidence that the lead entity has the capacity—
‘‘(1) to promote a statewide system of family
support for families of children with disabilities
throughout the State;
‘‘(2) to promote and implement systems change
activities;
‘‘(3) to maximize access to public and private
funds for family support services for families of chil-
dren with disabilities;
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‘‘(4) to implement effective strategies for capacity
building, family and professional training, and access
to and funding for family support services for fami-
lies of children with disabilities across agencies;
‘‘(5) to promote and facilitate the implementa-
tion of family support services for families of children
with disabilities that are family-centered and family-
directed, and flexible, and that provide families with
the greatest possible decisionmaking authority and
control regarding the nature and use of services and
supports;
‘‘(6) to promote leadership by families in plan-
ning, policy development, implementation, and eval-
uation of family support services for families of chil-
dren with disabilities, and parent-professional part-
nerships; and
‘‘(7) to promote and develop interagency coordi-
nation and collaboration.
‘‘SEC. 707. STATE POLICY COUNCIL FOR FAMILY SUPPORT
FOR FAMILIES OF CHILDREN WITH DISABIL-
ITIES.
‘‘(a) ESTABLISHMENT.—A State that desires to receive
financial assistance under this part shall, prior to the re-
ceipt of funds under this part, establish a State Policy
Council for Families of Children with Disabilities.
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‘‘(b) APPOINTMENTS.—
‘‘(1) MEMBERS.—Members of the Council shall
be appointed by the Chief Executive Officer of the
State or the appropriate official within the State re-
sponsible for making appointments in accordance
with subsection (c). The appointing authority shall
select members after soliciting recommendations from
the State Developmental Disabilities Council, parent
or family organizations, and other organizations rep-
resenting the full range of disabilities covered under
this part. The appointing authority shall ensure that
the membership of the Council reasonably represents
the population of the State and shall establish guide-
lines for terms of Council members.
‘‘(2) CHAIRPERSON.—The Council shall elect a
member of the Council to serve as the Chairperson of
the Council. The Chairperson shall be a family mem-
ber, as described in subsection (c)(1).
‘‘(c) COMPOSITION.—The Council shall be composed
of—
‘‘(1) a majority of members who are—
‘‘(A) individuals who are family members of
children with disabilities, are eligible for family
support, and represent the diversity of families
within the State; and
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‘‘(B) children with disabilities, from age 18
to 21, and are representative of the demographics
of the State;
‘‘(2) members—
‘‘(A) who are from State agencies with sig-
nificant responsibility for the provision of, or
payment for, family support services to families
of children with disabilities, and who have suffi-
cient authority to engage in policy planning and
implementation on behalf of such agencies; and
‘‘(B) who are from the office of the Chief
Executive Officer of the State with responsibility
with respect to budget and finance; and
‘‘(3) such additional members as the appointing
authority considers appropriate.
‘‘(d) FUNCTIONS.—The Council shall—
‘‘(1) establish formal policies regarding the oper-
ation of the Council;
‘‘(2) advise and assist the lead entity in the per-
formance of responsibilities described in section
706(a), particularly the promotion of interagency
agreements and the promotion of meaningful partici-
pation by families in all aspects of the statewide sys-
tem of family support for families of children with
disabilities;
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‘‘(3) advise and assist State agencies in the de-
velopment of policies and procedures relating to the
provision of family support for families of children
with disabilities in the State;
‘‘(4) advise and assist the lead entity in the de-
velopment of all aspects of a strategic plan under sec-
tion 709, including—
‘‘(A) the mission, purpose, and principles of
the statewide system of family support for fami-
lies of children with disabilities;
‘‘(B) the statement of family-centered out-
comes;
‘‘(C) the goals, objectives, and activities;
‘‘(D) the quality improvement or quality
enhancement system;
‘‘(E) the appeals process;
‘‘(F) the eligibility criteria to be used for all
programs, projects, and activities carried out
under this part;
‘‘(G) the analysis of the extent to which
family support for families of children with dis-
abilities is defined as a benefit and not as in-
come; and
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‘‘(H) the approach to the evaluation of the
statewide system of family support for families
of children with disabilities;
‘‘(5) advise and assist the lead entity in the im-
plementation of systems change activities;
‘‘(6) advise and assist the lead entity in assess-
ing family satisfaction with the statewide system of
family support for families of children with disabil-
ities;
‘‘(7) review, analyze, and comment on the strate-
gic plan and updates to the plan, progress reports,
and annual budgets;
‘‘(8) advise and assist the lead entity in the
identification of Federal and State barriers that im-
pede the development of a statewide system of family
support for families of children with disabilities; and
‘‘(9) prepare and submit to the Chief Executive
Officer of the State, the State legislature, and to the
Secretary an annual report on the status of family
support services for families of children with disabil-
ities, and make such report available to the public.
‘‘(e) HEARINGS AND FORUMS.—The Council is author-
ized to hold such hearings and forums as the Council may
determine to be necessary to carry out the duties of the
Council.
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‘‘(f) CONFLICT
OF INTEREST.—No member of the
Council shall cast a vote on any matter that would provide
direct financial benefit to such member or otherwise give
the appearance of a conflict of interest under applicable
State law.
‘‘(g) COMPENSATION AND EXPENSES.—The Council
may, consistent with State law, use such resources to reim-
burse members of the Council for reasonable and necessary
expenses of attending Council meetings and performing
Council duties (including child care and personal assist-
ance services), and to pay compensation to a member of
the Council, if such member is not employed or must forfeit
wages from other employment, for each day the member is
engaged in performing Council duties.
‘‘(h) USE OF EXISTING COUNCIL.—
‘‘(1) IN GENERAL.—To the extent that a State
has an existing Council, the existing Council shall be
considered in compliance with this section if the exist-
ing Council meets the requirements under paragraph
(2).
‘‘(2) 
REQUIREMENTS.—An 
existing 
Council
shall—
‘‘(A) include a majority of members who are
family members of children with disabilities and
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who are children with disabilities (from age 18
to 21);
‘‘(B) in the case in which the existing Coun-
cil does not represent the full range of families
and individuals described in subsection (c)(1),
adopt strategies that will ensure the full partici-
pation of such families and individuals in all
activities carried out by the Council; and
‘‘(C) carry out functions and authorities
that are comparable to the functions and au-
thorities described in subsections (d) through (g).
‘‘(3) DOCUMENTATION
OF
COMPLIANCE.—Any
State that has an existing Council shall include in a
grant application submitted under section 705 and in
subsequent annual progress reports submitted to the
Secretary under section 710, a description of the
measures that are being taken or that are planned, to
ensure that the existing Council of the State complies
with this section.
‘‘SEC. 708. AUTHORIZED ACTIVITIES.
‘‘A State that receives a grant under section 704 may
use the funds made available through the grant to carry
out systems change activities, which accomplish the pur-
poses described in section 702, such as the following activi-
ties:
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‘‘(1) TRAINING AND TECHNICAL ASSISTANCE.—
The State may support training and technical assist-
ance activities for family members, service providers,
community members, professionals, members of the
Council, students and others that will do the follow-
ing:
‘‘(A) Increase family participation, choice,
and control in the provision of family support
for families of children with disabilities.
‘‘(B) Promote partnerships with families of
children with disabilities at all levels of the serv-
ice system.
‘‘(C) Develop or strengthen family-centered
and family-directed approaches to services, in-
cluding service coordination services, service
planning services, and respite care services.
‘‘(D) Assist families of children with dis-
abilities in accessing natural and community
supports and in obtaining benefits and services.
‘‘(2) INTERAGENCY
COORDINATION.—The State
may support activities that conduct the following:
‘‘(A) Identification and coordination of
Federal and State policies, resources, and serv-
ices, relating to the provision of family support
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services for families of children with disabilities,
including entering into interagency agreements.
‘‘(B) Interagency work groups to enhance
public funding options and coordinate access to
funding for family support services for families
of children with disabilities, with special atten-
tion to the issues of family involvement in the
identification, planning, use, delivery, and eval-
uation of such services.
‘‘(C) Documentation and dissemination of
information about interagency activities that
promote coordination with respect to family sup-
port services for families of children with disabil-
ities, including evidence of increased participa-
tion of State and local health, maternal and
child health, social service, mental health, mental
retardation and developmental disabilities, child
protection, education, early intervention, devel-
opmental disabilities councils, agencies, and de-
partments.
‘‘(3) L OCAL OR REGIONAL COUNCILS.—The State
may support the development or enhancement of local
or regional councils to review the status of family
support for families of children with disabilities in
the local or regional area, to advise and assist with
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the planning, development, implementation, and eval-
uation of family support for families of children with
disabilities in such local or regional area, and to pro-
vide recommendations to the State regarding im-
provements and plans.
‘‘(4) OUTREACH.—The State may conduct out-
reach activities to locate families who are eligible for
family support for families of children with disabil-
ities and to identify groups who are unserved or un-
derserved. Such activities may involve the creation or
maintenance of, support of, or provision of, assistance
to statewide and community parent organizations,
and organizations that provide family support to
families of children with disabilities.
‘‘(5) P OLICY STUDIES.—The State may support
policy studies that relate to the development and im-
plementation, or expansion and enhancement, of a
statewide system of family support for families of
children with disabilities. Such studies may address
issues regarding eligibility and access to services.
‘‘(6) HEARINGS AND FORUMS.—The State may
conduct hearings and forums to solicit input from
families of children with disabilities regarding family
support programs, policies, and plans for such fami-
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lies. Such hearings and forums may be conducted in
collaboration with other statewide councils.
‘‘(7) P UBLIC AWARENESS AND EDUCATION.—The
State may develop and disseminate information relat-
ing to family support for families of children with
disabilities designed to provide information to such
families, parent groups and organizations, public and
private agencies that are in contact with children
with disabilities and families of such children, stu-
dents, policymakers, and the public. Such information
may relate to the nature, cost, and availability of,
and accessibility to, family support for families of
children with disabilities, the impact of family sup-
port for families of children with disabilities on other
benefits, and the efficacy of family support for fami-
lies of children with disabilities with respect to en-
hancing the quality of family life.
‘‘(8) N EEDS ASSESSMENT.—The State may con-
duct a needs assessment, which may, in part, be based
on existing State data.
‘‘(9) PROGRAM DATA.—The State may support
the compilation and evaluation of appropriate data
related to the statewide system of family support for
families of children with disabilities.
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‘‘(10) PILOT DEMONSTRATION PROJECTS.—The
State may support pilot demonstration projects to
demonstrate new approaches to the provision of fam-
ily support for families of children with disabilities.
Such projects may include the demonstration of fam-
ily-centered and family-directed service coordination,
approaches to improve access to services, including
independent service coordination, peer support net-
works, and voucher programs.
‘‘(11) O THER ACTIVITIES.—The State may sup-
port other systems change activities that accomplish
the purposes described in section 702.
‘‘SEC. 709. STRATEGIC PLAN.
‘‘(a) IN GENERAL.—Not later than 6 months after the
date on which assistance is received by a State under this
part, the lead entity of the State, in conjunction with the
Council, shall prepare and submit to the Secretary a strate-
gic plan designed to achieve the purposes and policy of this
part.
‘‘(b) C ONTENTS.—The strategic plan shall include—
‘‘(1) a statement of the mission, purpose, and
principles of the statewide system of family support
for families of children with disabilities in the State;
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‘‘(2) a statement of family-centered outcomes to
be achieved by the statewide system of family support
for families of children with disabilities;
‘‘(3) specific goals and objectives for developing
and implementing, or expanding and improving, the
system for providing family support services for fami-
lies of children with disabilities, and for achieving the
family-centered outcomes;
‘‘(4) systemic approaches for accomplishing the
objectives and achieving the family-centered outcomes,
including interagency coordination and cooperation,
that builds upon state-of-the-art practices and re-
search findings;
‘‘(5) a description of the specific programs,
projects, and activities funded under this part and
the manner in which the programs, projects, and ac-
tivities accomplish the objectives and achieve the fam-
ily-centered outcomes;
‘‘(6) a description of an ongoing quality im-
provement or quality enhancement system, which uti-
lizes information from ongoing measurements of the
extent 
to 
which 
family-centered 
outcomes 
are
achieved, to improve the system;
‘‘(7) a description of an appeals process that will
be used in resolving any disputes families of children
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with disabilities may have regarding the determina-
tion of eligibility or the provision of family support
services to the family or to the child with a disability;
‘‘(8) a description of the eligibility criteria to be
used to carry out programs, projects, and activities
under this part that includes all eligible families;
‘‘(9) an analysis of the extent to which family
support for a family of a child with a disability is
defined as a benefit and not as income; and
‘‘(10) a description of the plan to conduct an an-
nual evaluation of the statewide system of family sup-
port for families of children with disabilities, in con-
junction with the Council, to improve such statewide
system and to document progress as required by sec-
tion 710.
‘‘(c) PERIOD AND UPDATES.—The strategic plan shall
cover the period of the grant and shall be reviewed and up-
dated on an annual basis to reflect actual experience and
family satisfaction information over the preceding year and
input from the Council, families of children with disabil-
ities, and other interested parties.
‘‘(d) RECOMMENDATIONS.—Prior to developing the
strategic plan, the State shall solicit input and rec-
ommendations from interested members of the public, either
by holding public hearings or through an alternative meth-
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od or methods determined by the lead entity in consultation
with the Council. The lead entity shall also obtain the com-
ments and recommendations of the Council. The lead entity,
in conjunction with the Council, shall consider the rec-
ommendations and attempt to reach a consensus with re-
spect to such recommendations. If the lead entity and the
Council are unable to reach a consensus, the lead entity
shall include a written explanation of the reason a consen-
sus was not reached in the strategic plan.
‘‘(e) C OMMENT.—The State shall develop a procedure
for ensuring ongoing comment from the Council.
‘‘(f) DISSEMINATION.—The State shall widely dissemi-
nate the strategic plan to families of children with disabil-
ities, parent organizations, and other interested persons.
‘‘(g) CONSTRUCTION.—Nothing in this section shall be
construed to prevent a State from using an existing state-
wide strategic plan or parts thereof to meet the requirements
of this section as long as such plan or the applicable parts
thereof are comparable to the specifications of this section.
‘‘SEC. 710. PROGRESS CRITERIA AND REPORTS.
‘‘(a) GUIDELINES.—The Secretary shall develop guide-
lines to be used in assessing the extent to which a State
that received a grant under section 704 is making signifi-
cant progress in developing and implementing, or expand-
ing and enhancing, a statewide system of family support
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for families of children with disabilities consistent with the
purposes of this part.
‘‘(b) PROGRESS REPORTS.—A State that receives a
grant under section 704 shall submit annually to the Sec-
retary a report that documents progress in developing and
implementing, or expanding and enhancing, a statewide
system of family support for families of children with dis-
abilities consistent with this part. Such report shall in-
clude—
‘‘(1) the results of the annual evaluation of the
statewide system of family support for families of
children with disabilities;
‘‘(2) a description of the unanticipated problems
with the achievement of the goals, objectives, and fam-
ily-centered outcomes described in the application or
strategic plan and the measures the State has taken
to rectify such problems;
‘‘(3) for the annual progress report concerning
the first year of the grant period, the strategic plan
developed by the State during the first year; and
‘‘(4) for the annual progress report concerning
subsequent years of the grant period, the updated
strategic plan.
‘‘SEC. 711. ADMINISTRATIVE PROVISIONS.
‘‘(a) EVALUATION OF GRANT APPLICATIONS.—
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‘‘(1) P ANELS.—The Secretary shall convene pan-
els of experts who are competent, by virtue of their
training or experience, to evaluate grant applications
under this part.
‘‘(2) C OMPOSITION OF PANELS.—Panels shall be
composed of a majority of family members of children
with disabilities and individuals with disabilities,
and may include service providers, State administra-
tive personnel, and professionals. Panels shall include
a majority of individuals who are not Federal em-
ployees.
‘‘(3) EXPENSES AND FEES OF THE PANEL.—A
member of the Panel who is not a Federal employee
shall receive travel, per diem and consultant fees not
to exceed the rate provided to other consultants used
by the Secretary. The Secretary may use funds avail-
able under section 716 to pay expenses and fees of a
member of a Panel who is not a Federal employee.
‘‘(b) P ROVISION OF INFORMATION.—To assist the Sec-
retary in carrying out the responsibilities of the Secretary
under this section, the Secretary may require States to pro-
vide relevant information, including recommendations and
relevant reports of the Council.
‘‘(c) A PPEALS.—The Secretary shall establish appeals
procedures for States that are found in noncompliance with
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the provisions of this part as the result of failure to supply
information required under section 705 or 710. The Sec-
retary shall take into consideration the comments of the
Council.
‘‘(d) EFFECT ON OTHER ASSISTANCE.—This part may
not be construed as authorizing a Federal or State agency
to reduce medical or other assistance available, or to alter
eligibility, under any Federal law.
‘‘(e) U NOBLIGATED FUNDS.—Any amount paid to a
State for a fiscal year and remaining unobligated at the
end of such year shall remain available to such State for
the next fiscal year for the purposes for which such amount
was paid.
‘‘SEC. 712. TECHNICAL ASSISTANCE.
‘‘(a) I N GENERAL.—The Secretary shall make grants,
or enter into contracts or cooperative agreements, with ap-
propriate public or private agencies and organizations, in-
cluding institutions of higher education, with documented
experience, expertise, and capacity, for the purpose of pro-
viding technical assistance and information with respect to
the development and implementation, or expansion and en-
hancement, of a statewide system of family support for fam-
ilies of children with disabilities.
‘‘(b) P URPOSE.—With respect to States receiving as-
sistance under this part, the technical assistance and infor-
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mation described under subsection (a) shall be provided to
the State agency designated as the lead entity, the Council,
family members of children with disabilities, organizations,
service providers, and policymakers involved with children
with disabilities and their families. Such technical assist-
ance shall also be available to States that do not receive
assistance under this part. Such technical assistance and
information shall—
‘‘(1) facilitate effective systems change activities;
‘‘(2) promote effective approaches to the develop-
ment and implementation, or expansion and enhance-
ment of, the statewide systems of family support for
families of children with disabilities that increase ac-
cess to, funding for, and awareness of family support
for families of children with disabilities;
‘‘(3) promote partnerships with families at all
levels of the service system;
‘‘(4) foster awareness and understanding of Fed-
eral, State, and local laws, regulations, policies, prac-
tices, procedures, and organizational structures, that
facilitate, and overcome barriers to, funding for, and
access to family support for families of children with
disabilities;
‘‘(5) foster the development and replication of ef-
fective approaches to strategic plan development,
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interagency coordination, training, outreach to un-
derserved groups, and public awareness activities;
‘‘(6) facilitate service delivery capacity, training,
and the improvement of data collection and evalua-
tion systems;
‘‘(7) promote effective approaches to the develop-
ment of family-centered and family-directed services,
including approaches to the development and meas-
urement of family-centered outcomes described in sec-
tion 709(b)(2), and the assessment of family satisfac-
tion; and
‘‘(8) coordinate and facilitate an annual meeting
of the chairpersons of the Councils.
‘‘(c) REQUEST FOR TECHNICAL ASSISTANCE.—A re-
quest for technical assistance by a lead entity in a State
receiving assistance under this part shall be made in con-
junction with the Council.
‘‘(d) R EPORTS TO THE SECRETARY.—An entity pro-
viding the technical assistance under this section shall sub-
mit periodic reports to the Secretary regarding Federal
policies and procedures identified within the States that fa-
cilitate or impede the delivery of family support to families
of children with disabilities. The report shall include rec-
ommendations to the Secretary regarding the delivery of
services, coordination with other programs, and integration
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of the policies and principles described in section 702 in
other Federal legislation.
‘‘SEC. 713. EVALUATION.
‘‘(a) I N GENERAL.—The Secretary shall make grants,
or enter into contracts or cooperative agreements, with ap-
propriate public or private agencies and organizations, in-
cluding institutions of higher education, with documented
experience, expertise, and capacity for the purpose of con-
ducting a national evaluation of the program of grants to
States authorized by this part.
‘‘(b) P URPOSE.—The purpose of an evaluation under
subsection (a) shall be to assess the status and effects of
State efforts to develop and implement, or expand and en-
hance, statewide systems of family support for families of
children with disabilities in a manner consistent with the
provisions of this part, particularly in terms of the impact
of such efforts on families of children with disabilities, and
to recommend amendments to this part that are necessary
to assist States to fully accomplish the purposes of this part.
The Secretary or recipient of assistance under this section
shall work with the States to consider and develop an infor-
mation system designed to report and compile, from infor-
mation provided by the States, including the Council, a
qualitative and quantitative description of the impact of
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the program of grants to States authorized by this part
on—
‘‘(1) families of children with disabilities, in-
cluding families from ethnic and racial minority
backgrounds;
‘‘(2) access to and funding for family support for
families of children with disabilities; and
‘‘(3) the involvement of families at all levels of
the service system.
‘‘(c) REPORT TO CONGRESS.—Not later than 2 1⁄2 years
after the date of enactment of this part, the Secretary shall
prepare and submit to the appropriate committees of Con-
gress a report concerning the results of the evaluation con-
ducted under this section.
‘‘(d) CONFLICT OF INTEREST.—The Secretary shall as-
sure that a recipient of a grant, contract, or cooperative
agreement under this section is independent from, and free
from, any financial or personal relationships with the re-
cipient of a grant, contract, or cooperative agreement se-
lected to provide technical assistance under section 712.
‘‘SEC. 714. PROJECTS OF NATIONAL SIGNIFICANCE.
‘‘(a) STUDY BY THE SECRETARY.—The Secretary shall
review Federal programs to determine the extent to which
such programs facilitate or impede access to, provision of,
and funding for family support for families of children with
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disabilities, consistent with the policies described in section
702.
‘‘(b) D EMONSTRATION AND INNOVATION PROJECTS.—
The Secretary shall make grants or enter into contracts for
projects of national significance to support the development
of national and State policies and practices related to the
development and implementation, or expansion and en-
hancement, of family-centered and family-directed systems
of family support for families of children with disabilities.
‘‘SEC. 715. CONSTRUCTION.
‘‘Notwithstanding any other provision of this title,
nothing in parts A through H of this title shall be construed
to apply to this part.
‘‘SEC. 716. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be appro-
priated to carry out this part, $10,000,000 for fiscal year
1995, and such sums as may be necessary for each of the
fiscal years 1996 and 1997.
‘‘(b) RESERVATION.—
‘‘(1) I N GENERAL.—Except as provided in para-
graph (2), the Secretary shall reserve for each fiscal
year 10 percent, or $600,000 (whichever is greater),
of the amount appropriated pursuant to the authority
of subsection (a) to carry out—
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‘‘(A) section 712, with respect to the provi-
sion of technical assistance and information to
States;
‘‘(B) section 713, with respect to the con-
duct of the evaluations;
‘‘(C) section 711(a), with respect to the eval-
uation of grant applications; and
‘‘(D) section 714, with respect to the con-
duct of projects of national significance.
‘‘(2) SPECIAL RULE.—The Secretary shall only
use funds reserved under paragraph (1) for a fiscal
year to carry out section 714 for such year if the
amount of funds reserved under such paragraph for
such fiscal year is $700,000 or greater.’’.
PART B—AMENDMENTS TO THE STEWART B.
MCKINNEY HOMELESS ASSISTANCE ACT
SEC. 321. STATE LITERACY INITIATIVES.
Section 702 of the Stewart B. McKinney Homeless As-
sistance Act (hereafter in this part referred to as ‘‘the Act’’)
(42 U.S.C. 11421) is amended to read as follows:
‘‘STATE LITERACY INITIATIVES
‘‘SEC. 702. (a) GENERAL AUTHORITY.—
‘‘(1) GRANTS.—The Secretary of Education is
authorized to make grants to State educational agen-
cies to enable each such agency to implement, either
directly or through contracts and grants, a program
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of literacy training and academic remediation for
adult homeless individuals within the State, which
program shall—
‘‘(A) include outreach activities; and
‘‘(B) be coordinated with other agencies or
organizations, such as community-based organi-
zations, nonprofit literacy-action organizations,
and recipients of funds under the Adult Edu-
cation Act, title II of the Job Training Partner-
ship Act, the Youth Fair Chance program under
part H of title IV of the Job Training Partner-
ship Act, the Volunteers in Service to America
program under part A of title I of the Domestic
Volunteer Service Act of 1973, part C of this
title, or the Job Opportunity and Basic Skills
program under part F of title IV of the Social
Security Act.
‘‘(2) E STIMATES AND AMOUNTS.—The Secretary
of Education, in awarding grants under this section,
shall give special consideration to the estimates sub-
mitted in the application submitted under subsection
(b) and make such awards in whatever amounts such
Secretary determines will best serve the purposes of
this section.
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‘‘(b) APPLICATION.—Each State educational agency
desiring to receive a grant under this section shall submit
to the Secretary of Education an application at such time,
in such manner, and containing such information as the
Secretary may reasonably require. Each such application
shall include an estimate of the number of homeless individ-
uals in the State and the number of such individuals ex-
pected to be served.
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—For the
purpose of carrying out the adult literacy and academic
remediation programs authorized by this section, there are
authorized to be appropriated such sums as may be nec-
essary for each of the fiscal years 1995 through 1999.
‘‘(d) D EFINITION.—As used in this section, the term
‘State’ means each of the 50 States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, the Commonwealth of the North-
ern Mariana Islands, and Palau (until the effective date
of the Compact of Free Association with the Government
of Palau).’’.
SEC. 322. EDUCATION FOR HOMELESS CHILDREN AND
YOUTH.
Subtitle B of title VII of the Act (42 U.S.C. 11431 et
seq.) is amended to read as follows:
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‘‘Subtitle B—Education for Homeless Children and Youth
‘‘STATEMENT OF POLICY
‘‘SEC. 721. It is the policy of the Congress that—
‘‘(1) each State educational agency shall ensure
that each child of a homeless individual and each
homeless youth has equal access to the same free, ap-
propriate public education, including a public pre-
school education, as provided to other children and
youth;
‘‘(2) in any State that has a compulsory resi-
dency requirement as a component of the State’s com-
pulsory school attendance laws or other laws, regula-
tions, practices, or policies that may act as a barrier
to the enrollment, attendance, or success in school of
homeless children and youth, the State will review
and undertake steps to revise such laws, regulations,
practices, or policies to ensure that homeless children
and youth are afforded the same free, appropriate
public education as provided to other children and
youth;
‘‘(3) homelessness alone should not be sufficient
reason to separate students from the mainstream
school environment; and
‘‘(4) homeless children and youth should have ac-
cess to the education and other services that such chil-
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dren and youth need to ensure that such children and
youth have an opportunity to meet the same challeng-
ing State student performance standards to which all
students are held.
‘‘GRANTS FOR STATE AND LOCAL ACTIVITIES FOR THE
EDUCATION OF HOMELESS CHILDREN AND YOUTH
‘‘SEC. 722. (a) G ENERAL AUTHORITY.—The Secretary
is authorized to make grants to States in accordance with
the provisions of this section to enable such States to carry
out the activities described in subsections (d), (e), (f), and
(g).
‘‘(b) APPLICATION.—No State may receive a grant
under this section unless the State educational agency sub-
mits an application to the Secretary at such time, in such
manner, and containing or accompanied by such informa-
tion as the Secretary may reasonably require.
‘‘(c) ALLOCATION AND RESERVATIONS.—(1) Subject to
paragraph (2) and section 724(c), from the amounts appro-
priated for each fiscal year under section 726, the Secretary
is authorized to allot to each State an amount that bears
the same ratio to the amount appropriated for such year
under section 726 as the amount allocated under section
1122 of the Elementary and Secondary Education Act of
1965 to the State for that year bears to the total amount
allocated under section 1122 to all States for that year, ex-
cept that no State shall receive less than $100,000.
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‘‘(2)(A) The Secretary is authorized to reserve 0.1 per-
cent of the amount appropriated for each fiscal year under
section 726 to be allocated by the Secretary among the Vir-
gin Islands, Guam, American Samoa, the Commonwealth
of the Northern Mariana Islands, and Palau (until the effec-
tive date of the Compact of Free Association with the Gov-
ernment of Palau), according to their respective need for
assistance under this subtitle, as determined by the Sec-
retary.
‘‘(B)(i) The Secretary is authorized to transfer one
percent of the amount appropriated for each fiscal year
under section 726 to the Department of the Interior for pro-
grams for Indian students served by schools funded by the
Secretary of the Interior, as determined under the Indian
Self-Determination and Education Assistance Act, that are
consistent with the purposes of this Act.
‘‘(ii) The Secretary and the Secretary of the Interior
shall enter into an agreement, consistent with the require-
ments of this part, for the distribution and use of the funds
described in clause (i) under terms that the Secretary deter-
mines best meet the purposes of the programs described in
such clause. Such agreement shall set forth the plans of the
Secretary of the Interior for the use of the amounts trans-
ferred, including appropriate goals, objectives and mile-
stones.
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‘‘(3) As used in this subsection, the term ‘State’ shall
not include the Virgin Islands, Guam, American Samoa,
the Commonwealth of the Northern Mariana Islands, or
Palau.
‘‘(d) M ANDATED ACTIVITIES.—Grants under this sec-
tion shall be used—
‘‘(1) to carry out the policies set forth in section
721 in the State;
‘‘(2) to provide activities for, and services to,
homeless children, including preschool-aged children,
and homeless youth that enable such children and
youth to enroll in, attend, and succeed in school, or,
if appropriate, in preschool programs;
‘‘(3) to establish or designate an Office of Coordi-
nator of Education of Homeless Children and Youth
in the State educational agency in accordance with
subsection (f);
‘‘(4) to prepare and carry out the State plan de-
scribed in subsection (g); and
‘‘(5) to develop and implement professional de-
velopment programs for school personnel to heighten
their awareness of, and capacity to respond to, spe-
cific problems in the education of homeless children
and youth.
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‘‘(e) STATE AND LOCAL GRANTS.—(1)(A) Subject to
subparagraph (B), if the amount allotted to the State edu-
cational agency for any fiscal year under this subtitle ex-
ceeds the amount such agency received for fiscal year 1990
under this subtitle, such agency shall use such funds as ex-
ceed the amount such agency received for fiscal year 1990
under this subtitle to provide grants to local educational
agencies in accordance with section 723.
‘‘(B) The State educational agency may reserve not
more than the greater of 5 percent of the amount such agen-
cy receives under this subtitle for any fiscal year, or the
amount such agency received under this subtitle for fiscal
year 1990, to conduct activities under subsection (f) directly
or through grants or contracts.
‘‘(2) If the amount allotted to a State educational
agency for any fiscal year under this subtitle is less than
the amount such agency received for fiscal year 1990 under
this subtitle, such agency, at such agency’s discretion, may
provide grants to local educational agencies in accordance
with section 723 or may conduct activities under subsection
(f) directly or through grants or contracts.
‘‘(f) F UNCTIONS OF THE OFFICE OF COORDINATOR.—
The Coordinator of Education of Homeless Children and
Youth established in each State shall—
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‘‘(1) estimate the number of homeless children
and youth in the State and the number of such chil-
dren and youth served with assistance provided under
the grants or contracts under this subtitle;
‘‘(2) gather, to the extent possible, reliable, valid,
and comprehensive information on the nature and ex-
tent of the problems homeless children and youth have
in gaining access to public preschool programs and to
public elementary and secondary schools, the difficul-
ties in identifying the special needs of such children
and youth, any progress made by the State edu-
cational agency and local educational agencies in the
State in addressing such problems and difficulties,
and the success of the program under this subtitle in
allowing homeless children and youth to enroll in, at-
tend, and succeed in, school;
‘‘(3) develop and carry out the State plan de-
scribed in subsection (g);
‘‘(4) prepare and submit to the Secretary not
later than October 1, 1997, and on October 1 of every
third year thereafter, a report on the information
gathered pursuant to paragraphs (1) and (2) and
such additional information as the Secretary may re-
quire to carry out the Secretary’s responsibilities
under this subtitle;
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‘‘(5) facilitate coordination between the State
educational agency, the State social services agency,
and other agencies providing services to homeless chil-
dren and youth, including homeless children and
youth who are preschool age, and families of such
children and youth; and
‘‘(6) develop relationships and coordinate with
other relevant education, child development, or pre-
school programs and providers of services to homeless
children, homeless families, and runaway and home-
less youth (including domestic violence agencies, shel-
ter operators, transitional housing facilities, runaway
and homeless youth centers, and transitional living
programs for homeless youth), to improve the provi-
sion of comprehensive services to homeless children
and youth and their families.
‘‘(g) STATE PLAN.—(1) Each State shall submit to the
Secretary a plan to provide for the education of homeless
children and youth within the State, which plan shall de-
scribe how such children and youth are or will be given
the opportunity to meet the same challenging State perform-
ance standards all students are expected to meet, shall de-
scribe the procedures the State educational agency will use
to identify such children and youth in the State and to as-
sess their special needs, and shall—
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‘‘(A) describe procedures for the prompt resolu-
tion of disputes regarding the educational placement
of homeless children and youth;
‘‘(B) describe programs for school personnel (in-
cluding principals, attendance officers, teachers and
enrollment personnel), to heighten the awareness of
such personnel of the specific needs of runaway and
homeless youth;
‘‘(C) describe procedures that ensure that home-
less children and youth who meet the relevant eligi-
bility criteria are able to participate in Federal,
State, or local food programs;
‘‘(D) describe procedures that ensure that—
‘‘(i) homeless children have equal access to
preschool programs provided to other children;
and
‘‘(ii) homeless children and youth who meet
the relevant eligibility criteria are able to par-
ticipate in Federal, State, or local before- and
after-school care programs;
‘‘(E) address problems set forth in the report
provided to the Secretary under subsection (f)(4);
‘‘(F) address other problems with respect to the
education of homeless children and youth, including
problems caused by—
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‘‘(i) transportation issues; and
‘‘(ii) enrollment delays that are caused by—
‘‘(I) immunization requirements;
‘‘(II) residency requirements;
‘‘(III) lack of birth certificates, school
records, or other documentation; or
‘‘(IV) guardianship issues;
‘‘(G) demonstrate that the State educational
agency and local educational agencies in the State
have developed, and will review and revise, policies to
remove barriers to the enrollment and retention of
homeless children and youth in schools in the State;
and
‘‘(H) contain an assurance that the State edu-
cational agency and local educational agencies in the
State will adopt policies and practices to ensure that
homeless children and youth are not isolated or stig-
matized.
‘‘(2) Each plan adopted under this subsection shall
also show how the State will ensure that local educational
agencies in the State will comply with the requirements of
paragraphs (3) through (9).
‘‘(3)(A) The local educational agency of each homeless
child and youth shall, according to the child’s or youth’s
best interest, either—
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‘‘(i) continue the child’s or youth’s education in
the school of origin—
‘‘(I) for the remainder of the academic year;
or
‘‘(II) in any case in which a family be-
comes homeless between academic years, for the
following academic year; or
‘‘(ii) enroll the child or youth in any school that
nonhomeless students who live in the attendance area
in which the child or youth is actually living are eli-
gible to attend.
‘‘(B) In determining the best interests of the child or
youth under subparagraph (A), the local educational agency
shall comply, to the extent feasible, with the request made
by a parent or guardian regarding school selection.
‘‘(C) For purposes of this paragraph, the term ‘school
of origin’ means the school that the child or youth attended
when permanently housed, or the school in which the child
or youth was last enrolled.
‘‘(D) The choice regarding placement shall be made re-
gardless of whether the child or youth lives with the homeless
parents or has been temporarily placed elsewhere by the
parents.
‘‘(4) Each homeless child or youth shall be provided
services comparable to services offered to other students in
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the school selected according to the provisions of paragraph
(3), including—
‘‘(A) transportation services, except as required
by paragraph (9);
‘‘(B) educational services for which the child or
youth meets the eligibility criteria, such as services
provided under title I of the Elementary and Second-
ary Education Act of 1965 or similar State or local
programs, educational programs for children with
disabilities, and educational programs for students
with limited-English proficiency;
‘‘(C) programs in vocational education;
‘‘(D) programs for gifted and talented students;
and
‘‘(E) school meals programs.
‘‘(5) Any record ordinarily kept by the school, includ-
ing immunization records, academic records, birth certifi-
cates, guardianship records, and evaluations for special
services or programs, of each homeless child or youth shall
be maintained—
‘‘(A) so that the records are available, in a time-
ly fashion, when a child or youth enters a new school
district; and
‘‘(B) in a manner consistent with section 438 of
the General Education Provisions Act.
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‘‘(6) Each local educational agency serving homeless
children and youth that receives assistance under this sub-
title shall coordinate with local social services agencies and
other agencies or programs providing services to such chil-
dren or youth and their families.
‘‘(7)(A) Each local educational agency that receives as-
sistance under this subtitle shall designate a homelessness
liaison to ensure that—
‘‘(i) homeless children and youth enroll and suc-
ceed in the schools of that agency; and
‘‘(ii) homeless families, children, and youth re-
ceive educational services for which such children and
youth are eligible, including preschool programs, and
referrals to health care services, dental services, men-
tal health services, and other appropriate services.
‘‘(B) State coordinators and local educational agencies
shall inform school personnel, service providers, and advo-
cates working with homeless families of the duties of the
liaisons.
‘‘(8) Each State educational agency and local edu-
cational agency shall review and revise any policies that
may act as barriers to the enrollment of homeless children
and youth in schools selected in accordance with paragraph
(3). In reviewing and revising such policies, consideration
shall be given to issues concerning transportation, immuni-
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zation, residency, birth certificates, school records, and other
documentation, and guardianship. Special attention shall
be given to ensuring the enrollment and attendance of home-
less children and youth who are not currently attending
school.
‘‘(9) Each plan adopted under this subsection shall—
‘‘(A) demonstrate that transportation, to the ex-
tent possible, will be provided at no cost to homeless
children and youth attending the school in which such
children are enrolled; and
‘‘(B) contain procedures for resolving disputes
between local educational agencies or within a local
educational agency concerning transportation costs
for such children and youth.
‘‘(10) Where applicable, each State and local edu-
cational agency shall coordinate with State and local hous-
ing agencies responsible for developing the comprehensive
housing affordability strategy described in section 105 of
the Cranston-Gonzalez National Affordable Housing Act to
minimize educational disruption for children who become
homeless.
‘‘LOCAL EDUCATIONAL AGENCY GRANTS FOR THE
EDUCATION OF HOMELESS CHILDREN AND YOUTH
‘‘SEC. 723. (a) G ENERAL AUTHORITY.—(1) The State
educational agency shall, in accordance with section 722(e)
and from amounts made available to such agency under
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section 726, make grants to local educational agencies for
the purpose of facilitating the enrollment, attendance, and
success in school of homeless children and youth.
‘‘(2) Unless otherwise specified, services under para-
graph (1) may be provided through programs on school
grounds or at other facilities. Where services are provided
through programs on school grounds, such services may also
be made available to children and youth who are deter-
mined by the local educational agency to be at risk of fail-
ing in, or dropping out of, schools, except that priority for
such services shall be given to homeless children and youth.
To the maximum extent practicable, services shall be pro-
vided through existing programs and mechanisms that inte-
grate homeless individuals with nonhomeless individuals.
‘‘(3) Services provided under this section shall be de-
signed to expand upon or improve services provided as part
of the school’s regular academic program.
‘‘(b) A PPLICATION.—A local educational agency that
desires to receive a grant under this section shall submit
an application to the State educational agency at such
time, in such manner, and containing or accompanied by
such information as the State educational agency may rea-
sonably require according to guidelines issued by the Sec-
retary. Each such application shall include—
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‘‘(1) a description of the services and programs
for which assistance is sought and the problems to be
addressed through the provision of such services and
programs;
‘‘(2) an assurance that the local educational
agency’s combined fiscal effort per student or the ag-
gregate expenditures of that agency and the State
with respect to the provision of free public education
by that agency for the preceding fiscal year was not
less than 90 percent of such combined fiscal effort or
aggregate expenditures for the second preceding fiscal
year;
‘‘(3) an assurance that the applicant complies
with, or will use requested funds to come into compli-
ance with, paragraphs (3) through (9) of section
722(g); and
‘‘(4) a description of policies and procedures that
the agency will implement to ensure that activities
carried out by the agency will not isolate or stig-
matize homeless children and youth.
‘‘(c) AWARDS.—(1) The State educational agency
shall, in accordance with section 722(g) and from amounts
made available to such agency under section 726, award
grants under this section to local educational agencies sub-
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mitting an application under subsection (b) on the basis
of the need of such agencies.
‘‘(2) In determining need under paragraph (1), the
State educational agency may consider the number of home-
less children and youth enrolled in preschool, elementary,
and secondary schools within the area served by the agency,
and shall consider the needs of such children and youth and
the ability of the agency to meet such needs. Such agency
may also consider—
‘‘(A) the extent to which the proposed use of
funds would facilitate the enrollment, retention, and
educational success of homeless children and youth;
‘‘(B) the extent to which the application reflects
coordination with other local and State agencies that
serve homeless children and youth, as well as the
State plan required by section 722(g);
‘‘(C) the extent to which the applicant exhibits in
the application and in current practice a commit-
ment to education for all homeless children and
youth; and
‘‘(D) such other criteria as the agency determines
appropriate.
‘‘(3) Grants awarded under this section shall be for
terms not to exceed three years.
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‘‘(d) AUTHORIZED ACTIVITIES.—(1) A local edu-
cational agency may use funds awarded under this section
for activities to carry out the purpose of this subtitle, in-
cluding—
‘‘(A) the provision of tutoring, supplemental in-
struction, and enriched educational services that are
linked to the achievement of the same challenging
State content standards and challenging State student
performance standards the State establishes for other
children or youth;
‘‘(B) the provision of expedited evaluations of the
strengths and needs of homeless children and youth,
including needs and eligibility for programs and serv-
ices (such as educational programs for gifted and tal-
ented students, children with disabilities, and stu-
dents with limited-English proficiency, services pro-
vided under title I of the Elementary and Secondary
Education Act of 1965 or similar State or local pro-
grams, programs in vocational education, and school
meals programs);
‘‘(C) professional development and other activi-
ties for educators and pupil services personnel that
are designed to heighten the understanding and sen-
sitivity of such personnel to the needs of homeless chil-
dren and youth, the rights of such children and youth
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under this Act, and the specific educational needs of
runaway and homeless youth;
‘‘(D) the provision of referral services to homeless
children and youth for medical, dental, mental, and
other health services;
‘‘(E) the provision of assistance to defray the ex-
cess cost of transportation for students pursuant to
sections 722(g)(4) or 722(g)(9), not otherwise pro-
vided through Federal, State, or local funding, where
necessary to enable students to attend the school se-
lected under section 722(g)(3);
‘‘(F) the provision of developmentally appro-
priate early childhood education programs, not other-
wise provided through Federal, State, or local fund-
ing, for preschool-aged children;
‘‘(G) the provision of before- and after-school and
summer enrichment programs for homeless children
and youth in which a teacher or other qualified indi-
vidual provides tutoring, homework assistance, and
supervision of educational activities;
‘‘(H) where necessary, the payment of fees and
other costs associated with tracking, obtaining, and
transferring records necessary to enroll homeless chil-
dren and youth in school, including birth certificates,
immunization records, academic records, guardian-
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ship records, and evaluations for special programs or
services;
‘‘(I) the provision of education and training to
the parents of homeless children and youth about the
rights of, and resources available to, such children
and youth;
‘‘(J) the development of coordination between
schools and agencies providing services to homeless
children and youth;
‘‘(K) the provision of pupil services (including
violence prevention counseling) and referrals for such
services;
‘‘(L) activities to address the particular needs of
homeless children and youth that may arise from do-
mestic violence;
‘‘(M) the adaptation of space and purchase of
supplies for nonschool facilities made available under
subsection (a)(2) to provide services under this sub-
section;
‘‘(N) the provision of school supplies to be dis-
tributed at shelters or temporary housing facilities, or
other appropriate locations; and
‘‘(O) the provision of other extraordinary or
emergency assistance needed to enable homeless chil-
dren and youth to attend school.
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‘‘SECRETARIAL RESPONSIBILITIES
‘‘SEC. 724. (a) R EVIEW OF PLANS.—In reviewing the
State plans submitted by the State educational agencies
under section 722(g), the Secretary shall use a peer review
process and shall evaluate whether State laws, policies, and
practices described in such plans adequately address the
problems of homeless children and youth relating to access
to education and placement as described in such plans.
‘‘(b) TECHNICAL ASSISTANCE.—The Secretary shall
provide support and technical assistance to the State edu-
cational agencies to assist such agencies to carry out their
responsibilities under this subtitle.
‘‘(c) EVALUATION
AND DISSEMINATION.—The Sec-
retary shall conduct evaluation and dissemination activi-
ties of programs designed to meet the educational needs of
homeless elementary and secondary school students, and
may use funds appropriated under section 726 to conduct
such activities.
‘‘(d) REPORTS.—The Secretary shall prepare and sub-
mit a report to Congress on the programs and activities
authorized by this subtitle by December 31, 1997, and every
third year thereafter.
‘‘DEFINITIONS
‘‘SEC. 725. For the purpose of this subtitle, the follow-
ing terms have the following meanings:
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‘‘(1) The term ‘Secretary’ means the Secretary of
Education.
‘‘(2) The term ‘State’ means each of the 50
States, the District of Columbia, and the Common-
wealth of Puerto Rico.
‘‘AUTHORIZATION OF APPROPRIATIONS
‘‘SEC. 726. For the purpose of carrying out this sub-
title, there are authorized to be appropriated $30,000,000
for fiscal year 1995 and such sums as may be necessary
for each of the 4 succeeding fiscal years.’’.
PART C—REPEAL OF IMPACT AID STATUTES
SEC. 331. REPEAL OF IMPACT AID STATUTES.
(a) P UBLIC LAW 81–815.—The Act entitled ‘‘An Act
relating to the construction of school facilities in areas af-
fected by Federal activities, and for other purposes’’, ap-
proved September 23, 1950 (64 Stat. 967; 20 U.S.C. 631
et seq.) is repealed.
(b) P UBLIC LAW 81–874.—The Act entitled ‘‘An Act
to provide assistance for local educational agencies in areas
affected by Federal activities, and for other purposes’’, ap-
proved September 30, 1950 (64 Stat. 1100; 20 U.S.C. 236
et seq.) is repealed.
PART D—OTHER ACTS
SEC. 341. GOALS 2000: EDUCATE AMERICA ACT.
(a) REPEALS.—Sections 231, 232, 234, and 235 of the
Goals 2000: Educate America Act are repealed.
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(b) GIFT AUTHORITY.—
(1) N ATIONAL EDUCATION GOALS PANEL.—Sec-
tion 204 of the Goals 2000: Educate America Act is
amended by adding at the end the following new sub-
section:
‘‘(f) GIFTS.—The Goals Panel may accept, administer,
and utilize gifts or donations of services, money, or prop-
erty, whether real or personal, tangible or intangible.’’.
(2) N ATIONAL EDUCATION STANDARDS AND IM-
PROVEMENT
COUNCIL.—Section 215 of the Goals
2000: Educate America Act is amended by adding at
the end the following new subsection:
‘‘(f) GIFTS.—The Council may accept, administer, and
utilize gifts or donations of services, money, or property,
whether real or personal, tangible or intangible.’’.
(c) LOCAL AGENCY PLAN APPROVAL.—Paragraph 4 of
section 309(a) of the Goals 2000: Educate America Act is
amended by inserting the words ‘‘made by the local edu-
cational agency’’ after the word ‘‘modifications’’.
(d) S AFE SCHOOLS.—Paragraph (2) of section 702(b)
of the Safe Schools Act of 1994 (20 U.S.C. 5962(b)(2)) is
amended by striking ‘‘10 percent’’ and inserting ‘‘5 per-
cent’’.
(e) STATE
PLANNING
FOR
IMPROVING
STUDENT
ACHIEVEMENT THROUGH INTEGRATION OF TECHNOLOGY
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INTO THE CURRICULUM.—Subsection (b) of section 317 of
the Goals 2000: Educate America Act (20 U.S.C. 5897(b))
is amended by adding at the end the following new para-
graph:
‘‘(3) OUTLYING AREAS.—(A) From the amount
appropriated pursuant to the authority of subsection
(f) for fiscal year 1994, the Secretary shall reserve a
total of 1 percent to provide assistance under this sec-
tion to the outlying areas.
‘‘(B) The funds reserved under subparagraph (A)
shall be distributed among the outlying areas by the
Secretary according to the relative need of such areas
for assistance under this section.’’.
SEC. 342. EDUCATION COUNCIL ACT OF 1991.
Title II of the Education Council Act of 1991 (20
U.S.C. 1221–1 note) is repealed.
SEC. 343. AUGUSTUS F. HAWKINS-ROBERT T. STAFFORD EL-
EMENTARY AND SECONDARY SCHOOL IM-
PROVEMENT AMENDMENTS OF 1988.
Title IV of the Augustus F. Hawkins-Robert T. Staf-
ford Elementary and Secondary School Improvement
Amendments of 1988 (20 U.S.C. 4901 et seq.) is repealed.
SEC. 344. STAR SCHOOLS PROGRAM ASSISTANCE ACT.
The Star Schools Program Assistance Act (20 U.S.C.
4081 et seq.) is repealed.
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SEC. 345. FUND FOR THE IMPROVEMENT AND REFORM OF
SCHOOLS AND TEACHING ACT.
The Fund for the Improvement and Reform of Schools
and Teaching Act (20 U.S.C. 4801) is repealed.
SEC. 346. TECHNOLOGY-RELATED ASSISTANCE FOR INDI-
VIDUALS WITH DISABILITIES ACT OF 1988.
(a) I N GENERAL.—Title II of the Technology-Related
Assistance for Individuals With Disabilities Act of 1988 (29
U.S.C. 2231 et seq.) is amended by striking part E.
(b) EFFECTIVE DATE.—The amendment made by sub-
section (a) shall take effect as if included in the Technology-
Related Assistance for Individuals With Disabilities Act
Amendments of 1994.
SEC. 347. OFFICE OF INDIAN EDUCATION.
Title II of the Department of Education Organization
Act (20 U.S.C. 3411 et seq.) (as amended by section 271)
is further amended by adding at the end the following new
section:
‘‘OFFICE OF INDIAN EDUCATION
‘‘SEC. 217. (a) There shall be in the Department an
Office of Indian Education (hereafter in this section re-
ferred to as the ‘Office’).
‘‘(b)(1) The Office shall be headed by a Director of In-
dian Education (hereafter in this section referred to as the
‘Director’) who shall—
‘‘(A) be appointed by the Secretary; and
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‘‘(B) report directly to the Assistant Secretary
for Elementary and Secondary Education.
‘‘(2) The Director shall—
‘‘(A) be responsible for administering title VI of
the Elementary and Secondary Education Act of
1965;
‘‘(B) be involved in, and be primarily respon-
sible for, the development of all policies affecting In-
dian children and adults under programs adminis-
tered by the Office;
‘‘(C) coordinate the development of policy and
practice for all programs in the Department relating
to Indian persons; and
‘‘(D) assist the Assistant Secretary of the Office
of Educational Research and Improvement in identi-
fying research priorities related to the education of
Indian persons.
‘‘(3) The Director shall be a career appointee in the
Senior Executive Service, and shall be paid at a level deter-
mined by the Secretary.
‘‘(c)(1) The Secretary shall give preference to Indian
individuals with respect to all personnel actions of the Of-
fice.
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‘‘(2) Such preference shall be implemented in the same
fashion as the preference given to any Indian under section
2609 of the Revised Statutes (25 U.S.C. 45).’’.
SEC. 348. INDIAN EDUCATION ACT OF 1988.
The Indian Education Act of 1988 (25 U.S.C. 2601
note) is repealed.
SEC. 349. HIGHER EDUCATION ACT OF 1965.
(a) S HORT TITLE.—This section may be cited as the
‘‘Equity in Athletics Disclosure Act’’.
(b) FINDINGS.—The Congress finds that—
(1) participation in athletic pursuits plays an
important role in teaching young Americans how to
work on teams, handle challenges and overcome obsta-
cles;
(2) participation in athletic pursuits plays an
important role in keeping the minds and bodies of
young Americans healthy and physically fit;
(3) there is increasing concern among citizens,
educators, and public officials regarding the athletic
opportunities for young men and women at institu-
tions of higher education;
(4) a recent study by the National Collegiate
Athletic Association found that in Division I–A insti-
tutions, only 20 percent of the average athletic de-
partment operations budget of $1,310,000 is spent on
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women’s athletics; 15 percent of the average recruiting
budget of $318,402 is spent on recruiting female ath-
letes; the average scholarship expenses for men is
$1,300,000 and $505,246 for women; and an average
of 143 grants are awarded to male athletes and 59 to
women athletes;
(5) female college athletes receive less than 18
percent of the athletics recruiting dollar and less than
24 percent of the athletics operating dollar;
(6) male college athletes receive approximately
$179,000,000 more per year in athletic scholarship
grants than female college athletes;
(7) prospective students and prospective student
athletes should be aware of the commitments of an in-
stitution to providing equitable athletic opportunities
for its men and women students; and
(8) knowledge of an institution’s expenditures for
women’s and men’s athletic programs would help pro-
spective students and prospective student athletes
make informed judgments about the commitments of
a given institution of higher education to providing
equitable athletic benefits to its men and women stu-
dents.
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(c) A MENDMENT.—Section 485 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1092) is amended by adding
at the end the following new subsection:
‘‘(g) DISCLOSURE OF ATHLETIC PROGRAM PARTICIPA-
TION RATES AND FINANCIAL SUPPORT DATA.—
‘‘(1) DATA
REQUIRED.—Each institution of
higher education that participates in any program
under this title, and has an intercollegiate athletic
program, shall annually submit a report to the Sec-
retary that contains the following information:
‘‘(A) For each men’s team, women’s team,
and any team that includes both male and fe-
male athletes, the following data:
‘‘(i) The total number of participants
and their gender.
‘‘(ii) The total athletic scholarship ex-
penditures.
‘‘(iii) A figure that represents the total
athletic scholarship expenditures divided by
the total number of participants.
‘‘(iv) The total number of contests for
the team.
‘‘(v) The per capita operating expenses
for the team.
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‘‘(vi) The per capita recruiting ex-
penses for the team.
‘‘(vii) The per capita personnel ex-
penses for the team.
‘‘(viii) Whether the head coach is male
or female and whether the head coach is full
time or part time.
‘‘(ix) The number of assistant coaches
that are male and the number of assistant
coaches that are female and whether each
particular coach is full time or part time.
‘‘(x) The number of graduate assistant
coaches that are male and the number of
graduate assistant coaches that are female.
‘‘(xi) The number of volunteer assistant
coaches that are male and the number of
volunteer assistant coaches that are female.
‘‘(xii) The ratio of participants to
coaches.
‘‘(xiii) The average annual institu-
tional compensation of the head coaches of
men’s sports teams, across all offered sports,
and the average annual compensation of the
head coaches of women’s sports teams,
across all offered sports.
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‘‘(xiv) The average annual institu-
tional compensation of each of the assistant
coaches of men’s sports teams, across all of-
fered sports, and the average annual com-
pensation of the assistant coaches of wom-
en’s sports teams, across all offered sports.
‘‘(xv) The total annual revenues gen-
erated from attendance at athletic contests
across all men’s teams and women’s teams.
‘‘(B) A statement of the following data:
‘‘(i) The ratio of male participants to
female participants in the entire athletic
program.
‘‘(ii) The ratio of male athletic scholar-
ship expenses to female athletic scholarship
expenses in the entire athletic program.
‘‘(2) DISCLOSURE TO PROSPECTIVE STUDENTS.—
An institution of higher education described in para-
graph (1) that offers admission to a potential student
shall provide to such student, upon request, the infor-
mation contained in the report submitted by such in-
stitution to the Secretary under paragraph (1), except
that all such students shall be informed of their right
to request such information.
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‘‘(3) D ISCLOSURE TO THE PUBLIC.—An institu-
tion of higher education described in paragraph (1)
shall make available to the public, upon request, the
information contained in the report submitted by
such institution to the Secretary under paragraph
(1).
‘‘(4) S ECRETARY’S DUTY TO PUBLISH A REPORT
OF THE DATA.—On or before July 1, 1995, and each
July 1 thereafter, the Secretary, using the reports sub-
mitted under this subsection, shall compile, publish,
and submit to the appropriate committees of the Con-
gress, a report that includes the information con-
tained in such reports identified by (A) the individ-
ual institutions, and (B) by the athletic conferences
recognized by the National Collegiate Athletic Associa-
tion and the National Association of Intercollegiate
Athletics.
‘‘(5) D EFINITION.—For the purposes of this sub-
section, the term ‘operating expenses’ means all
nonscholarship expenditures.’’.
(d) EFFECTIVE DATE.—The amendment made by sub-
section (c) shall take effect on July 1, 1994.
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SEC. 350. RURAL COMMUNITY SERVICE.
Title XI of the Higher Education Act of 1965 (20
U.S.C. 1136 et seq.) is amended by adding at the end the
following new part:
‘‘PART C—RURAL COMMUNITY SERVICE
‘‘SEC. 1171. FINDINGS; PURPOSE.
‘‘(a) FINDINGS.—The Congress finds that—
‘‘(1) the Nation’s rural centers are facing in-
creasingly pressing problems and needs in the areas
of economic development, community infrastructure
and service, social policy, public health, housing,
crime, education, environmental concerns, planning
and work force preparation;
‘‘(2) there are, in the Nation’s rural institutions,
people with underutilized skills, knowledge, and expe-
rience who are capable of providing a vast range of
services toward the amelioration of the problems de-
scribed in paragraph (1);
‘‘(3) the skills, knowledge, and experience in these
rural institutions, if applied in a systematic and sus-
tained manner, can make a significant contribution
to the solution of such problems; and
‘‘(4) the application of such skills, knowledge,
and experience is hindered by the limited funds avail-
able to redirect attention to solutions to such rural
problems.
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‘‘(b) P URPOSE.—It is the purpose of this part to pro-
vide incentives to rural academic institutions to enable such
institutions to work with private and civic organizations
to devise and implement solutions to pressing and severe
problems in their communities.
‘‘SEC. 1172. PROGRAM.
‘‘The Secretary is authorized to carry out a program
of providing assistance to eligible institutions to enable such
institutions to carry out the authorized activities described
in section 1174 in accordance with the provisions of this
part.
‘‘SEC. 1173. APPLICATIONS FOR RURAL COMMUNITY SERV-
ICE GRANTS.
‘‘(a) APPLICATION.—
‘‘(1) I N GENERAL.—Each eligible institution de-
siring a grant under this part shall submit to the
Secretary an application at such time, in such form,
and containing or accompanied by such information
and assurances, as the Secretary may require by reg-
ulation.
‘‘(2) CONTENTS.—Each application submitted
pursuant to paragraph (1) shall—
‘‘(A) describe the activities and services for
which assistance is sought; and
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‘‘(B) contain assurances that the eligible in-
stitution will enter into a consortium to carry
out the provisions of this part that includes, in
addition to the eligible institution, one or more
of the following entities:
‘‘(i) A community college.
‘‘(ii) A rural local educational agency.
‘‘(iii) A local government.
‘‘(iv) A business or other employer.
‘‘(v) A nonprofit institution.
‘‘(3) WAIVER.—The Secretary may waive the
consortium requirements described in paragraph (2)
for any applicant who can demonstrate to the satis-
faction of the Secretary that the applicant has devised
an integrated and coordinated plan which meets the
purpose of this part.
‘‘(b) SELECTION PROCEDURES.—The Secretary, by
regulation, shall develop a formal procedure for the submis-
sion of applications under this part and shall publish in
the Federal Register an announcement of that procedure
and the availability of funds under this part.
‘‘SEC. 1174. AUTHORIZED ACTIVITIES.
‘‘Grant funds made available under this part shall be
used to support planning, applied research, training, re-
source exchanges or technology transfers, the delivery of
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services, or other activities the purpose of which is to design
and implement programs to assist rural communities to
meet and address their pressing and severe problems, such
as any of the following:
‘‘(1) Work force preparation.
‘‘(2) Rural poverty and the alleviation of such
poverty.
‘‘(3) Health care, including health care delivery
and access as well as health education, prevention
and wellness.
‘‘(4) Underperforming school systems and stu-
dents.
‘‘(5) Problems faced by the elderly and individ-
uals with disabilities in rural settings.
‘‘(6) Problems faced by families and children.
‘‘(7) Campus and community crime prevention,
including enhanced security and safety awareness
measures as well as coordinated programs addressing
the root causes of crime.
‘‘(8) Rural housing.
‘‘(9) Rural infrastructure.
‘‘(10) Economic development.
‘‘(11) Rural farming and environmental con-
cerns.
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‘‘(12) Other problem areas which participants in
the consortium described in section 1173(a)(2)(B)
concur are of high priority in rural areas.
‘‘(13)(A) Problems faced by individuals with dis-
abilities and economically disadvantaged individuals
regarding accessibility to institutions of higher edu-
cation and other public and private community fa-
cilities.
‘‘(B) Amelioration of existing attitudinal bar-
riers that prevent full inclusion of individuals with
disabilities in their community.
‘‘SEC. 1175. PEER REVIEW.
‘‘The Secretary shall designate a peer review panel to
review applications submitted under this part and make
recommendations for funding to the Secretary. In selecting
the peer review panel, the Secretary may consult with other
appropriate Cabinet-level Federal officials and with non-
Federal organizations, to ensure that the panel will be geo-
graphically balanced and be composed of representatives
from public and private institutions of higher education,
labor, business, and State and local government, who have
expertise in rural community service or in education.
‘‘SEC. 1176. DISBURSEMENT OF FUNDS.
‘‘(a) MULTIYEAR AVAILABILITY.—Subject to the avail-
ability of appropriations, grants under this part may be
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awarded on a multiyear basis, except that no institution,
individually or as a participant in a consortium, may re-
ceive a grant under this part for more than 5 years.
‘‘(b) EQUITABLE GEOGRAPHIC DISTRIBUTION.—The
Secretary shall award grants under this part in a manner
that achieves an equitable geographic distribution of such
grants.
‘‘(c) M ATCHING REQUIREMENT.—An applicant under
this part and the local governments associated with its ap-
plication shall contribute to the conduct of the program sup-
ported by the grant an amount from non-Federal funds
equal to at least one-fourth of the amount grant, which con-
tribution may be in cash or in kind, fairly evaluated.
‘‘(d) The Secretary shall, to the maximum extent pos-
sible, coordinate this program with the Corporation for Na-
tional and Community Service.
‘‘SEC. 1177. DESIGNATION OF RURAL GRANT INSTITUTIONS.
‘‘The Secretary shall publish a list of eligible institu-
tions and shall designate such institutions of higher edu-
cation as ‘Rural Grant Institutions’. The Secretary shall
establish a national network of Rural Grant Institutions
so that the results of individual projects achieved in 1 rural
area can be generalized, disseminated, replicated and ap-
plied throughout the Nation.
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‘‘SEC. 1178. DEFINITIONS.
‘‘As used in this part:
‘‘(1) RURAL AREA.—The term ‘rural area’ means
any area that—
‘‘(A) is outside an urban area, as such term
is defined by the Bureau of the Census; and
‘‘(B) contains a population of 75,000 or
less.
‘‘(2) E LIGIBLE INSTITUTION.—The term ‘eligible
institution’ means an institution of higher education,
or a consortium of such institutions any one of which
meets all the requirements of this paragraph, which—
‘‘(A) draws a substantial portion of its un-
dergraduate students from the rural area served
by such institution or consortium, or from con-
tiguous areas;
‘‘(B) carries out programs to make post-
secondary educational opportunities more acces-
sible to residents of such rural areas, or contig-
uous areas;
‘‘(C) has the present capacity to provide re-
sources responsive to the needs and priorities of
such rural areas and contiguous areas;
‘‘(D) offers a range of professional, tech-
nical, or graduate programs sufficient to sustain
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the capacity of such institution to provide such
resources; and
‘‘(E) has demonstrated and sustained a
sense of responsibility to such rural area and
contiguous areas and the people of such areas.
‘‘SEC. 1179. AUTHORIZATION OF APPROPRIATIONS; FUND-
ING RULE.
‘‘There are authorized to be appropriated $5,000,000
for fiscal year 1995 and such sums as may be necessary
in each of the 4 succeeding fiscal years to carry out the
provisions of this part.’’.
SEC. 350A. REHABILITATION ACT.
(a) Notwithstanding any other provision of the Reha-
bilitation Act of 1973, the amount otherwise payable to a
State under section 111 of such Act shall be reduced—
(1) for fiscal years 1987 and 1988, by the
amount by which expenditures from non-Federal
sources under the State plan under title I of such Act
for such year are less than the total of such expendi-
tures for fiscal year 1972; and
(2) for fiscal year 1989, the lesser of—
(A) the amount by which expenditures from
non-Federal sources under the State plan under
title I of such Act for fiscal year 1989 are less
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than average of the total of such expenditures for
fiscal years 1986, 1987, and 1988; or
(B) the amount by which expenditures from
non-Federal sources under the State plan under
title I of such Act for fiscal year 1988 are less
than the average of the total of such expenditures
for fiscal years 1985, 1986, and 1987.
(b) This section shall take effect on September 1, 1994.
SEC. 350B. HIGHER EDUCATION AMENDMENTS TO THE
CARL D. PERKINS VOCATIONAL AND APPLIED
TECHNOLOGY EDUCATION ACT.
(a) A MENDMENT.—The Carl D. Perkins Vocational
and Applied Technology Education Act (20 U.S.C. 2301 et
seq.) is amended—
(1) in paragraph (2) of section 232(d)—
(A) by inserting ‘‘, notwithstanding section
427(b)(2) of the Higher Education Amendments
of 1992,’’ before ‘‘has’’; and
(B) by inserting ‘‘as such section was in ef-
fect on July 22, 1992’’ before the semicolon; and
(2) in subparagraph (B) of section 404(a)(4)—
(A) by inserting ‘‘, notwithstanding section
427(b)(2) of the Higher Education Amendments
of 1992,’’ before ‘‘has’’; and
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(B) by inserting ‘‘as such section was in ef-
fect on July 22, 1992’’ before the period.
(b) EFFECTIVE DATE.—Subsection (a) and the amend-
ments made by subsection (a) shall take effect on the date
of enactment of this Act, except that a State that, prior
to such date, distributed funds under section 232 of the Carl
D. Perkins Vocational and Applied Technology Education
Act from funds appropriated for fiscal year 1994 for such
program to proprietary institutions of higher education, as
such term is defined in section 481(b) of the Higher Edu-
cation Act of 1965, may continue to distribute such funds
to such institutions until July 1, 1995.
SEC. 350C. TECHNICAL AMENDMENTS TO THE CARL D. PER-
KINS 
VOCATIONAL 
AND 
APPLIED 
TECH-
NOLOGY EDUCATION ACT.
The Carl D. Perkins Vocational and Applied Tech-
nology Education Act (20 U.S.C. 2301 et seq.) is amend-
ed—
(1) in section 101A—
(A) in paragraph (2) of subsection (a), by
striking ‘‘and Palau’’ and all that follows
through the end of the subsection, and inserting
‘‘the Federated States of Micronesia, the Repub-
lic of the Marshall Islands, and the Republic of
Palau.’’; and
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(B) in the matter preceding paragraph (1)
of subsection (b), by inserting ‘‘the Republic of’’
immediately before ‘‘Palau’’;
(2) in clause (ii) of section 112(f)(1)(B), by
striking ‘‘Palau’’ and all that follows through ‘‘99-
658)’’, and inserting ‘‘the Federated States of Micro-
nesia, the Republic of the Marshall Islands, the Re-
public of Palau’’; and
(3) in paragraph (33) of section 521, by striking
‘‘and Palau’’ and all that follows through the end of
the paragraph, and inserting ‘‘the Federated States of
Micronesia, the Republic of the Marshall Islands, and
the Republic of Palau.’’.
SEC. 350D. TECHNICAL AMENDMENT TO THE SECOND MOR-
RILL ACT.
Section 5 the Act of August 30, 1890 (26 Stat. 417,
chapter 841; 7 U.S.C. 326a) (commonly known as the ‘‘Sec-
ond Morrill Act’’) is amended by striking ‘‘and the Trust
Territory of the Pacific Islands or its successor govern-
ments’’ and inserting ‘‘the Federated States of Micronesia,
the Republic of the Marshall Islands, and the Republic of
Palau’’.
SEC. 350E. DEFINITIONS FOR PART A OF TITLE III.
Section 312 of the Higher Education Act of 1965 (20
U.S.C. 1058) is amended—
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(1) in paragraph (1) of subsection (b)—
(A) in subparagraph (D), by striking ‘‘and’’
after the semicolon; and
(B) by adding after subparagraph (E) the
following new subparagraph:
‘‘(F) located in a State; and’’;
(2) by redesignating subsection (f) as subsection
(g); and
(3) by inserting after subsection (e) the following
new subsection:
‘‘(f) STATE.—For the purpose of this part the term
‘State’ means each of the 50 States, the District of Colum-
bia, the Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, the Commonwealth of the North-
ern Mariana Islands, the Republic of the Marshall Islands,
the Federated States of Micronesia, and the Republic of
Palau.’’.
SEC. 350F. AUTHORIZATION OF APPROPRIATIONS FOR THE
NATIONAL EARLY INTERVENTION SCHOLAR-
SHIP AND PARTNERSHIP PROGRAM.
Section 404G of the Higher Education Act of 1965 (20
U.S.C. 1070a–27) is amended by striking the second sen-
tence thereof.
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SEC. 350G. LENDER-OF-LAST-RESORT PROGRAMS.
(a) A MENDMENT.—Paragraph (1) of subsection (c) of
section 428 of the Higher Education Act of 1965 (20 U.S.C.
1078(c)(1)) is amended by adding at the end the following
new subparagraph:
‘‘(G) Notwithstanding any other provision
of this section, the Secretary shall exclude a loan
made pursuant to a lender-of-last-resort program
when making reimbursement payment calcula-
tions under subparagraphs (B) and (C).’’.
(b) EFFECTIVE DATE.—Subsection (a) and the amend-
ment made by subsection (a) shall take effect on August 10,
1993.
SEC. 350H. FEDERAL CONSOLIDATION LOANS.
Paragraph (4) of section 428C(a) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1078–3(a)(4)) is amended—
(1) in subparagraph (B), by striking ‘‘or’’ after
the semicolon;
(2) in subparagraph (C), by striking the period
and inserting ‘‘; or’’; and
(3) by adding at the end the following new sub-
paragraph:
‘‘(D) made under subpart II of part B of
title VIII of the Public Health Service Act.’’.
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SEC. 350I. FACILITIES AUTHORITY OF THE STUDENT LOAN
MARKETING ASSOCIATION.
Section 439 of the Higher Education Act of 1965 (20
U.S.C. 1087–2) is amended—
(1) in subparagraph (C) of subsection (d)(1)—
(A) in the matter preceding clause (i), by
inserting ‘‘(including related equipment, instru-
mentation, and furnishings)’’ after ‘‘materials’’;
(B) in clause (ii), by striking the semicolon
and inserting ‘‘, athletic facilities, dining halls,
and student unions; and’’;
(C) in clause (iii), by striking ‘‘and’’ after
the semicolon;
(D) in the matter following clause (iv)—
(i) by striking ‘‘15 percent’’ and in-
serting ‘‘30 percent’’; and
(ii) by striking ‘‘type’’ and inserting
‘‘types’’; and
(E) by striking clause (iv); and
(2) in subsection (n), by striking ‘‘a report of its
operations and activities during each year’’ and in-
serting ‘‘a report of the Association’s operations and
activities, including a report with respect to all facili-
ties transactions, during each year’’.
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SEC. 350J. CLOCK AND CREDIT HOUR TREATMENT OF DI-
PLOMA NURSING SCHOOLS.
(a) A MENDMENT.—Part G of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1088 et seq.) is amended
by inserting after section 481 the following new section:
‘‘SEC. 481A. CLOCK AND CREDIT HOUR TREATMENT OF DI-
PLOMA NURSING SCHOOLS.
‘‘Notwithstanding any other provision of this Act, any
regulations promulgated by the Secretary concerning the re-
lationship between clock hours and semester, trimester, or
quarter hours in calculating student grant, loan, or work
assistance under this title, shall not apply to a public or
private nonprofit hospital-based school of nursing that
awards a diploma at the completion of the school’s program
of education.’’.
(b) EFFECTIVE DATE.—Subsection (a) and the amend-
ment made by subsection (a) shall take effect on July 1,
1994.
SEC. 350K. ELIGIBILITY FOR STUDENTS FROM PALAU.
Subsection (j) of section 484 of the Higher Education
Act of 1965 (20 U.S.C. 1091(j)) is amended to read as fol-
lows:
‘‘(j) A SSISTANCE UNDER SUBPARTS 1, 2, 3, 4, AND 6
OF PART A AND PART C.—Notwithstanding any other pro-
vision of law, a student shall be eligible, if otherwise quali-
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part, with each eligible institution required
to maintain in the escrow account an
amount equal to 10 percent of the outstand-
ing principal of all loans made to such in-
stitution under this part; and’’; and
(C) by adding at the end the following new
clause:
‘‘(iii) shall be used to return to an eli-
gible institution an amount equal to any
remaining portion of such institution’s 10
percent deposit of loan proceeds following
scheduled repayment of such institution’s
loan;’’; and
(2) in paragraph (11), by striking ‘‘regulations’’
and inserting ‘‘conditions’’.
SEC. 350M. DEFINITION OF ECONOMIC HARDSHIP.
Paragraph (1) of section 435(o) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1085(o)(1)) is amended—
(1) in clause (ii) of subparagraph (A), by strik-
ing ‘‘or’’ after the semicolon;
(2) by redesignating subparagraph (B) as sub-
paragraph (C);
(3) by inserting after subparagraph (A) the fol-
lowing new subparagraph:
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‘‘(B) such borrower does not have disposable
income that is more than four times the amount
specified in subparagraph (A) for a borrower
who is working full-time and such borrower’s
Federal educational debt burden equals or ex-
ceeds 20 percent of such borrower’s disposable in-
come; or’’; and
(4) in paragraph (2), by striking ‘‘(1)(B)’’ and
inserting ‘‘(1)(C)’’.
SEC. 350N. AUTHORITY TO AWARD NEED-BASED AID.
Section 1544 of the Higher Education Amendments of
1992 (20 U.S.C. 1088, note) is amended to read as follows:
‘‘SEC. 1544. AUTHORITY TO AWARD NEED-BASED AID.
‘‘(a) EFFECT
ON PENDING CASES PROHIBITED.—
Nothing in this section shall in any way be construed to
affect any antitrust litigation pending on the date of enact-
ment of this Act.
‘‘(b) I N GENERAL.—Except as provided in subsection
(c), an institution of higher education that practices need-
blind admissions may—
‘‘(1) voluntarily agree with any other institution
or institutions of higher education to award financial
aid not awarded under the Higher Education Act of
1965 to students attending those institutions only on
the basis of demonstrated financial need for such aid;
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‘‘(2) jointly discuss and voluntarily agree upon
principles of need analysis for determining student fi-
nancial need for aid not awarded under the Higher
Education Act of 1965, provided that individual fi-
nancial aid officers may exercise professional judg-
ment with regard to individual applicants for finan-
cial aid;
‘‘(3) use common aid application forms for aid
not awarded under the Higher Education Act of 1965,
provided that each such institution of higher edu-
cation shall be free to request and use additional or
different data from such institution’s applicants; and
‘‘(4) exchange through an independent third-
party data on commonly admitted applicants regard-
ing family and student assets, income, allowances
against assets and income, number of family mem-
bers, and the number of siblings in college, provided
that each participating institution may retrieve such
data only once for each commonly admitted appli-
cant.
‘‘(c) EXCEPTION.—Institutions of higher education
shall not discuss or agree with each other on the prospective
financial aid award to a specific applicant for financial
aid.
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‘‘(d) R ELATIONSHIP TO HIGHER EDUCATION ACT.—
Nothing in this section shall be construed to affect the rights
or obligations of an institution of higher education under
sections 479A and 483.
‘‘(e) RELATED MATTER.—No inference of unlawful
conduct, combination or conspiracy shall be drawn from
the fact that an institution of higher education engages in
conduct authorized by this section.
‘‘(f) D EFINITION.—For the purpose of this section the
term ‘institution of higher education that practices need-
blind admissions’ means an institution of higher education
that admits as full-time students all United States citizens
or aliens lawfully admitted for permanent residence (within
the meaning of section 101(a)(20) of the Immigration and
Nationality Act) to the undergraduate programs of such in-
stitution without regard to family financial circumstances,
other than such citizens or aliens admitted from a waiting
list.
‘‘(g) SUNSET PROVISION.—This section shall expire on
September 30, 1999.’’.
SEC. 350O. DEFERMENT ELIGIBILITY.
Subsection (f) of section 455 of the Higher Education
Act of 1965 (20 U.S.C. 1087e(f)) is amended by adding at
the end the following new paragraphs:
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‘‘(2) D EFINITION OF BORROWER.—For the pur-
pose of this paragraph, the term ‘‘borrower’’ means
an individual who is a new borrower on the date such
individual applies for a loan under this part for
which the first disbursement is made on or after July
1, 1993.
‘‘(3) D EFERMENTS FOR PREVIOUS PART B LOAN
BORROWERS.—A borrower of a loan made under this
part, who at the time such individual applies for such
loan, has an outstanding balance of principal or in-
terest owing on any loan made, insured, or guaran-
teed under part B of Title IV of the Act prior to July
1, 1993, shall be eligible for a deferment under section
427(a)(2)(C) or section 428(b)(1)(M) as such sections
were in effect on July 22, 1992.’’.
SEC. 350P. FAMILY SUPPORT CENTER PROGRAM.
(a) A DMINISTRATIVE PROVISIONS.—Section 772(f) of
the Stewart B. McKinney Homeless Assistance Act (42
U.S.C. 11482(f)) is amended—
(1) in paragraph (1), to read as follows:
‘‘(1) ADMINISTRATIVE COSTS.—Two percent of
the amounts appropriated under this title may be
used by the Secretary to administer the programs es-
tablished under this title and three percent of the
amounts appropriated under this title may be used by
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the Secretary to evaluate such program and to pro-
vide technical assistance to entities for the develop-
ment and submission of applications for grants under
this section.’’;
(2) in paragraph (3), by striking ‘‘2 years’’ and
inserting ‘‘3 years’’; and
(3) by adding at the end thereof the following
new paragraph:
‘‘(4) M INIMUM AMOUNT.—No grant made under
subsection (a) may be less than $200,000 per year.’’.
(b) REPORT.—Section 777 of such Act (42 U.S.C.
11487) is amended by striking ‘‘1992’’ and inserting
‘‘1995’’.
(c) A UTHORIZATION FOR APPROPRIATIONS.—Section
779 of such Act (42 U.S.C. 11489) is amended by striking
‘‘for fiscal year 1993’’ and inserting ‘‘for each of the fiscal
years 1993 through 1998’’.
(d) TECHNICAL AMENDMENT.—Section 774(a) of such
Act (42 U.S.C. 11484(a)) is amended by striking ‘‘sub-
section (e)’’ and inserting ‘‘subsection (d)’’.
SEC. 350Q. THE NATIONAL FOUNDATION ON THE ARTS AND
THE HUMANITIES ACT OF 1965.
Subsection (c) of section 11 of the National Foundation
on the Arts and the Humanities Act of 1965 (20 U.S.C.
960(c)) is amended—