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in the least wealthy quintile of all States as de-
termined by the Secretary on the basis of the per
capita income of individuals in the States.
(B) Multiply the baseline amount by a fac-
tor of 1.05 for local educational agencies serving
States that are in the second least wealthy such
quintile.
(C) Multiply the baseline amount by a fac-
tor of 1.00 for local educational agencies serving
States that are in the third least wealthy such
quintile.
(D) Multiply the baseline amount by a fac-
tor of .95 for local educational agencies serving
States that are in the fourth least wealthy such
quintile.
(E) Multiply the baseline amount by a fac-
tor of .90 for local educational agencies serving
States that are in the wealthiest such quintile.
(4) Notwithstanding paragraph (3), the Sec-
retary shall compute the amount awarded to each
local educational agency serving the State of Alaska
or Hawaii by multiplying the base line amount deter-
mined under paragraph (2) for the local educational
agency by a factor of 1.00.
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(e) If the total amount of funds described in subsection
(b) that are made available to carry out subsection (a) is
insufficient to pay in full all amounts awarded under sub-
section (d), then the Secretary shall ratably reduce each
such amount.
(f) If the Secretary determines that a local educational
agency has knowingly submitted false information under
subsection (c) for the purpose of gaining additional funds
under subsection (a), then the local educational agency shall
be fined an amount equal to twice the difference between
the amount the local educational agency received under sub-
section (d), and the correct amount the local educational
agency would have received if the agency had submitted ac-
curate information under subsection (c).
(g)(1) Notwithstanding any other provision of law, the
Secretary of Education shall award the total amount of
funds made available under this Act to carry out title I
of the Elementary and Secondary Education Act of 1965
for fiscal year 1998 directly to local educational agencies
in accordance with paragraph (2) to enable the local edu-
cational agencies to support programs or activities for kin-
dergarten through grade 12 students that the local edu-
cational agencies deem appropriate.
(2) Each local educational agency shall receive an
amount awarded under this subsection that bears the same
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relation to the total amount of funds made available under
this Act to carry out title I of the Elementary and Second-
ary Education Act of 1965 for fiscal year 1998 as the num-
ber of children counted under section 1124(c) of such Act
for the local educational agency for fiscal year 1997 bears
to the total number of students so counted for all local edu-
cational agencies for fiscal year 1997.
(h) Notwithstanding any other provision of this sec-
tion, the total amount awarded to local educational agencies
in each State under this section shall not be less than the
net dollars that States would have received absent the provi-
sions of this section.
(i) In this section—
(1) the term ‘‘local educational agency’’ has the
meaning given the term in section 14101 of the Ele-
mentary and Secondary Education Act of 1965;
(2) the term ‘‘Secretary’’ means the Secretary of
Education; and
(3) the term ‘‘State’’ means each of the several
States of the United States, the District of Columbia,
the Commonwealth of Puerto Rico, Guam, American
Samoa, the Commonwealth of the Northern Mariana
Islands, the United States Virgin Islands, the Repub-
lic of the Marshall Islands, the Federated States of
Micronesia, and the Republic of Palau.
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SEC. 524. (a) Notwithstanding any other provision of
law, the Office of Educational Research and Improvement
shall submit to the Committee on Appropriations of the
Senate a spending plan for activities funded under this title
under the heading ‘‘EDUCATION RESEARCH, STATISTICS,
AND IMPROVEMENT’’, prior to the obligation of the funds.
(b)(1) Notwithstanding any other provision of law, the
National Assessment Governing Board established under
section 412 of the National Education Statistics Act of 1994
(20 U.S.C. 9011) (hereafter in this section referred to as
the ‘‘Board’’) shall hereafter have exclusive authority over
all policies, direction, and guidelines for establishing and
implementing voluntary national tests for 4th grade Eng-
lish reading and 8th grade mathematics: Provided, That the
tests shall be made available to a State, local educational
agency, or private or parochial school, upon the request of
the State, agency, or school, and the use of the tests shall
not be a condition for receiving any Federal funds: Pro-
vided further, That within 90 days after the date of enact-
ment of this Act, the Board shall review the national test
development contract in effect on the date of enactment of
this Act, and modify the contract as the Board determines
necessary: Provided further, That if the contract cannot be
modified to the extent determined necessary by the Board,
the contract shall be terminated and the Board shall nego-
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tiate a new contract, under the Board’s exclusive control,
for the tests.
(2) In exercising the Board’s responsibilities under
paragraph (1) regarding the national tests, and notwith-
standing any action undertaken by the Department of Edu-
cation or a person contracting with or providing services
for the Department regarding the planning, or the develop-
ment of specifications, for the tests, the Board shall—
(A) ensure that the content and standards for the
tests are the same as the content and standards for
the National Assessment;
(B) exercise exclusive authority over any expert
panel or advisory committee that will be or is estab-
lished with respect to the tests;
(C) ensure that the tests are linked to the Na-
tional Assessment to the maximum degree possible;
(D) develop test objectives, test specifications,
and test methodology;
(E) develop policies for test administration, in-
cluding guidelines for inclusion of, and accommoda-
tions for, students with disabilities and students with
limited English proficiency;
(F) develop policies for reporting test results, in-
cluding the use of standards or performance levels,
and for test use;
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(G) have final authority over the appropriate-
ness of all test items;
(H) ensure that all items selected for use on the
tests are free from racial, cultural, or gender bias;
and
(I) take such actions and make such policies as
the Board determines necessary.
(c) No State or local educational agency may require
any private or parochial school student, or home-schooled
individual, to take any test developed under this Act with-
out the written consent of the student or individual.
(d) Section 412 of the National Education Statistics
Act of 1994 (20 U.S.C. 9011) is amended—
(1) in subsection (b)(1)—
(A) by amending subparagraph (A) to read
as follows:
‘‘(A) three Governors, or former Governors,
of whom not more than 1 shall be a member of
the same political party as the President;’’;
(B) by amending subparagraph (B) to read
as follows:
‘‘(B) two State legislators, of whom not
more than 1 shall be a member of the same polit-
ical party as the President;’’;