656
‘‘(i) the hiring, promotion, or assign-
ment of employees of the agency or other
personnel for whom the agency has any ad-
ministrative responsibility;
‘‘(ii) the assignment of students to
schools, or to courses of instruction within
the school, of such agency, except to carry
out the approved plan; and
‘‘(iii) designing or operating extra-
curricular activities for students;
‘‘(D) carry out a high-quality education
program that will encourage greater parental
decisionmaking and involvement; and
‘‘(E) give students residing in the local at-
tendance area of the proposed magnet school
projects equitable consideration for placement
in those projects.
‘‘SEC. 4406. PRIORITY.
‘‘In approving applications under this part, the Sec-
retary shall give priority to applicants that—
‘‘(1) demonstrate the greatest need for assist-
ance, based on the expense or difficulty of effectively
carrying out an approved desegregation plan and the
projects for which assistance is sought;
657
‘‘(2) propose to carry out new magnet school
projects, or significantly revise existing magnet
school projects; and
‘‘(3) propose to select students to attend mag-
net school projects by methods such as lottery, rath-
er than through academic examination.
‘‘SEC. 4407. USE OF FUNDS.
‘‘(a) IN GENERAL.—Grant funds made available
under this part may be used by an eligible local edu-
cational agency or consortium of such agencies—
‘‘(1) for planning and promotional activities di-
rectly related to the development, expansion, con-
tinuation, or enhancement of academic programs
and services offered at magnet schools;
‘‘(2) for the acquisition of books, materials, and
equipment, including computers and the mainte-
nance and operation thereof, necessary for the con-
duct of programs in magnet schools;
‘‘(3) for the payment, or subsidization of the
compensation, of elementary and secondary school
teachers who are fully qualified, and instructional
staff where applicable, who are necessary for the
conduct of programs in magnet schools;
658
‘‘(4) with respect to a magnet school program
offered to less than the entire student population of
a school, for instructional activities that—
‘‘(A) are designed to make available the
special curriculum that is offered by the magnet
school project to students who are enrolled in
the school but who are not enrolled in the mag-
net school program; and
‘‘(B) further the purpose of this part; and
‘‘(5) for activities, which may include profes-
sional development, that will build the recipient’s ca-
pacity to operate magnet school programs once the
grant period has ended.
‘‘(b) SPECIAL RULE.—Grant funds under this part
may be used in accordance with paragraphs (2) and (3)
of subsection (a) only if the activities described in such
paragraphs are directly related to improving the students’
academic performance based on the State’s challenging
content standards and challenging student performance
standards or directly related to improving the students’
reading skills or knowledge of mathematics, science, his-
tory, geography, English, foreign languages, art, or music,
or to improving vocational and technical skills.
659
‘‘SEC. 4408. PROHIBITIONS.
‘‘(a) TRANSPORTATION.—Grants under this part may
not be used for transportation or any activity that does
not augment academic improvement.
‘‘(b) PLANNING.—A local educational agency shall
not expend funds under this part after the third year that
such agency receives funds under this part for such
project.
‘‘SEC. 4409. LIMITATIONS.
‘‘(a) DURATION OF AWARDS.—A grant under this
part shall be awarded for a period that shall not exceed
three fiscal years.
‘‘(b) LIMITATION ON PLANNING FUNDS.—A local
educational agency may expend for planning not more
than 50 percent of the funds received under this part for
the first year of the project, 15 percent of such funds for
the second such year, and 10 percent of such funds for
the third such year.
‘‘(c) AMOUNT.—No local educational agency or con-
sortium awarded a grant under this part shall receive
more than $4,000,000 under this part in any one fiscal
year.
‘‘(d) TIMING.—To the extent practicable, the Sec-
retary shall award grants for any fiscal year under this
part not later than July 1 of the applicable fiscal year.
660
‘‘SEC. 4410. EVALUATIONS.
‘‘(a) RESERVATION.—The Secretary may reserve not
more than 2 percent of the funds appropriated under sec-
tion 4411(a) for any fiscal year to carry out evaluations,
technical assistance, and dissemination projects with re-
spect to magnet school projects and programs assisted
under this part.
‘‘(b) CONTENTS.—Each evaluation described in sub-
section (a), at a minimum, shall address—
‘‘(1) how and the extent to which magnet school
programs lead to educational quality and improve-
ment;
‘‘(2) the extent to which magnet school pro-
grams enhance student access to quality education;
‘‘(3) the extent to which magnet school pro-
grams lead to the elimination, reduction, or preven-
tion of minority group isolation in elementary and
secondary schools with substantial proportions of mi-
nority students; and
‘‘(4) the extent to which magnet school pro-
grams differ from other school programs in terms of
the organizational characteristics and resource allo-
cations of such magnet school programs.
661
‘‘SEC. 4411. AUTHORIZATION OF APPROPRIATIONS; RES-
ERVATION.
‘‘(a) AUTHORIZATION.—For the purpose of carrying
out this part, there are authorized to be appropriated
$110,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the 4 succeeding fiscal years.
‘‘(b) AVAILABILITY
OF FUNDS
FOR GRANTS
TO
AGENCIES NOT PREVIOUSLY ASSISTED.—In any fiscal
year for which the amount appropriated pursuant to sub-
section (a) exceeds $75,000,000, the Secretary shall give
priority to using such amounts in excess of $75,000,000
to award grants to local educational agencies or consortia
of such agencies that did not receive a grant under this
part in the preceding fiscal year.’’.
SEC. 432. CONTINUATION OF AWARDS.
Notwithstanding the amendment made by section
431, or any other provision of this Act, any local edu-
cational agency, or consortium of such agencies, that was
awarded a grant under section 5111 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7211)
prior to the date of the enactment of this Act shall con-
tinue to receive funds in accordance with the terms of such
award until the date on which the award period terminates
under such terms.
662
TITLE V—SAFE SCHOOLS FOR
THE 21ST CENTURY
SEC. 501. SAFE SCHOOLS.
Title V is amended to read as follows:
‘‘TITLE V—SAFE SCHOOLS FOR
THE 21ST CENTURY
‘‘PART A—SUPPORTING DRUG AND VIOLENCE
PREVENTION AND EDUCATION FOR STU-
DENTS AND COMMUNITIES
‘‘SEC. 5001. SHORT TITLE.
‘‘This part may be cited as the ‘Safe Schools for the
21st Century Act of 2001’.
‘‘SEC. 5002. PURPOSE.
‘‘The purpose of this part is to support programs that
prevent the use of drugs, prevent violence, provide before
and after school activities and supervision for school age
youth, involve parents and communities, and are coordi-
nated with related Federal, State, and community efforts
and resources to foster a learning environment in which
students increase their academic achievement, through the
provision of Federal assistance to—
‘‘(1) States for grants to local educational agen-
cies and consortia of such agencies to establish, op-
erate, and improve local programs of drug and vio-
663
lence prevention in elementary and secondary
schools;
‘‘(2) States for grants to local educational agen-
cies, in partnership with community-based organiza-
tions, religious organizations, and other public enti-
ties and private organizations, for before and after
school programs for youth; and
‘‘(4) public and private nonprofit and for-profit
organizations to conduct training, demonstrations,
and evaluations.
‘‘SEC. 5003. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated—
‘‘(1) $1,470,000,000 for fiscal year 2002, and
such sums as may be necessary for each of the 4
succeeding fiscal years, for State grants under sub-
part 1; and
‘‘(2) $20,000,000 for fiscal year 2002, and for
each of the 4 succeeding fiscal years, for national
programs under subpart 2.
‘‘Subpart I—School Safety
‘‘SEC. 5111. RESERVATIONS AND ALLOTMENTS.
‘‘(a) RESERVATIONS.—From the amount made avail-
able under section 5003(1) to carry out this part for each
fiscal year, the Secretary—
664
‘‘(1) shall reserve 0.5 percent or $73,500,000
(whichever is greater) of such amount for grants
under this subpart to Guam, American Samoa, the
United States Virgin Islands, and the Common-
wealth of the Northern Mariana Islands, to be allot-
ted in accordance with the Secretary’s determination
of their respective needs; and
‘‘(2) shall reserve 0.5 percent or $73,500,000
(whichever is greater) of such amount for the Sec-
retary of the Interior to carry out programs under
this part for Indian youth.
‘‘(b) STATE ALLOTMENTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary shall, for each fiscal year,
allocate among the States—
‘‘(A) one-half of the remainder not re-
served under subsection (a) according to the
ratio between the school-aged population of
each State and the school-aged population of all
the States; and
‘‘(B) one-half of such remainder according
to the ratio between the amount each State re-
ceived under part A of title I for the preceding
year and the sum of such amounts received by
all the States.
665
‘‘(2) MINIMUM.—For any fiscal year, no State
shall be allotted under this subsection an amount
that is less than one-half of 1 percent of the total
amount allotted to all the States under this sub-
section.
‘‘(c) REALLOTMENT OF UNUSED FUNDS.—If any
State does not apply for an allotment under this subpart
for a fiscal year, the Secretary shall reallot the amount
of the State’s allotment to the remaining States in accord-
ance with this section.
‘‘SEC. 5112. WITHIN-STATE DISTRIBUTION.
‘‘(a) GOVERNOR’S ALLOCATION.—
‘‘(1) IN GENERAL.—The chief executive officer
of a State may reserve not more than 10 percent of
the total amount allocated to a State under section
5111(b) for each fiscal year for programs and activi-
ties in accordance with section 5115.
‘‘(2) ADMINISTRATIVE COSTS.—The chief exec-
utive officer of a State may use not more than 1
percent of the amount described in paragraph (1)
for the administrative costs incurred in carrying out
the duties of such officer under this section.
‘‘(3) GRANT AWARDS.—The chief executive offi-
cer of a State shall use the remainder of funds not
reserved under paragraph (2) to award competitive
666
grants and contracts to local educational agencies,
community-based organizations, religious organiza-
tions, and other public entities and private organiza-
tions for programs or activities described in section
5115. Such officer shall award grants based on—
‘‘(A) the quality of the activity or program
proposed; and
‘‘(B) how closely the program or activity is
aligned with the appropriate principles of effec-
tiveness described in section 5115(a).
‘‘(b) STATE FUNDS.—
‘‘(1) IN GENERAL.—An amount equal to the
total amount allotted to a State under section
5111(b), less the amount reserved under subsection
(a) and paragraphs (2) and (3) of this subsection,
for each fiscal year shall be made available to the
State and its local educational agencies for activities
in accordance with section 5115.
‘‘(2) STATE ACTIVITIES.—A State may use not
more than 4 percent of the amount available under
subsection (a) for State activities described in sec-
tion 5115(b).
‘‘(3) STATE
ADMINISTRATION.—A State may
use not more than 1 percent of the amount made
available under subsection (a) for the administrative
667
costs of carrying out its responsibilities under this
part.
‘‘(c) DISTRIBUTION TO LOCAL EDUCATIONAL AGEN-
CY.—
‘‘(1) IN GENERAL.—
(A) DISTRIBUTION.— A State shall dis-
tribute not less than 95 percent of the amount
made available under subsection (b) for each
fiscal year as follows:
‘‘(i) 70 percent of such amount to
local educational agencies, based on the
relative enrollments in public and private
nonprofit 
elementary 
and 
secondary
schools within the boundaries of such
agencies.
‘‘(ii) 30 percent of such amount to
local educational agencies that the State
determines have the greatest need for addi-
tional funds to carry out activities under
this part.
‘‘(B) 
SPECIAL
CONSIDERATION.—In
awarding funds under clause (ii) of subpara-
graph (A), a State shall give special consider-
ation to agencies that pursue a comprehensive
approach to drug and violence prevention by
668
providing or incorporating mental health serv-
ices in their programs.
‘‘(C) PARTNERSHIPS.—In awarding funds
under clause (ii) of subparagraph (A) a State
shall distribute a portion of such funds to local
educational agencies that partner with commu-
nity-based organizations, religious organiza-
tions, other public entities, or private organiza-
tions, or consortia of such organizations, to
support before and after school programs and
activities.
‘‘(D) ADMINISTRATIVE
COSTS.—Of the
amount received under paragraph (1), a local
educational agency may use not more than 1
percent for the administrative costs of carrying
out its responsibilities under this part.
‘‘(E) OBJECTIVE
DATA.—In determining
which local educational agencies have the great-
est need for additional funds, a State shall con-
sider objective data such as—
‘‘(i) low student performance on State
academic assessments;
‘‘(ii) high rates of drug use among
youth;
669
‘‘(iii) high rates of violence among
youth;
‘‘(iv) a high need for before and after
school activities among youth;
‘‘(v) local fiscal capacity to fund drug
and violence prevention activities and pro-
grams or before and after school activities
without Federal assistance; and
‘‘(vi) a high degree of geographically
rural isolation.
‘‘(F) GEOGRAPHIC
DIVERSITY.—The dis-
tribution of funds shall reflect the geographical
diversity of local educational agencies in the
State.
‘‘(2) RETURN OF FUNDS TO STATE; REALLOCA-
TION.—
‘‘(A) RETURN.—Except as provided in
subparagraph (B), upon the expiration of the 1-
year period beginning on the date that a local
educational agency receives its allocation—
‘‘(i) such agency shall return to the
State any funds from such allocation that
remain unobligated; and
‘‘(ii) the State shall reallocate any
such amount to local educational agencies
670
that have submitted plans for using such
amount for programs or activities on a
timely basis.
‘‘(B) CARRYOVER.—In any fiscal year, a
local educational agency, may retain for obliga-
tion in the succeeding fiscal year—
‘‘(i) an amount equal to not more
than 25 percent of the allocation it re-
ceived under this title for such fiscal year;
or
‘‘(ii) upon a demonstration of good
cause by such agency or consortium and
approval by the State, an amount that ex-
ceeds 25 percent of such allocation.
‘‘SEC. 5113. STATE APPLICATION.
‘‘(a) IN GENERAL.—In order to receive an allotment
under section 5111 for any fiscal year, a State shall sub-
mit to the Secretary, at such time as the Secretary may
require, an application that—
‘‘(1) describes the activities to be funded under
sections 5112(a)(3) and 5112(b)(2);
‘‘(2) describes how activities funded under this
part will support State academic achievement goals
in accordance with section 1111;
671
‘‘(3) describes how funds under this part will be
coordinated with programs under this Act, and other
programs, as appropriate, in accordance with the
provisions of section 8306;
‘‘(4) provides an assurance that the application
was developed in consultation and coordination with
appropriate State officials and others, including the
chief executive officer, the chief State school officer,
the head of the State alcohol and drug abuse agency,
the heads of the State health and mental health
agencies, the head of the State criminal justice plan-
ning agency, the head of the State child welfare
agency, the head of the State board of education, or
their designees, and representatives of parents, stu-
dents, and community-based organizations, including
religious organizations;
‘‘(5) provides an assurance that the State will
cooperate with, and assist, the Secretary in con-
ducting data collection as required by section 5115;
‘‘(6) provides an assurance that the local edu-
cational agencies in the State will comply with the
provisions of section 8503 pertaining to the partici-
pation of private school children and teachers in the
programs and activities under this part;
672
‘‘(7) describes the results of the State’s needs
assessment for drug and violence prevention pro-
grams and before and after school activities, which
shall be based on the results of on-going State eval-
uation activities;
‘‘(8)(A) provides a statement of the State’s per-
formance measures for drug and violence prevention
that shall be developed in consultation between the
State and local officials and that consist of—
‘‘(i) performance indicators for drug and
violence prevention; and
‘‘(ii) levels of performance for each per-
formance indicator;
‘‘(B) a description of the procedures the State
will use for assessing and publicly reporting progress
toward meeting those performance measures; and
‘‘(C) a plan for monitoring the implementation
of, and providing technical assistance regarding, the
activities and programs conducted by local edu-
cational agencies under this part.
‘‘(b) GENERAL APPROVAL.—A State application sub-
mitted pursuant to subsection (a) shall be deemed to be
approved by the Secretary unless the Secretary makes a
written determination, prior to the expiration of the 90-
day period beginning on the date that the Secretary re-
673
ceives the application, that the application is in violation
of this part.
‘‘(c) DISAPPROVAL.—The Secretary shall not finally
disapprove a State application, except after giving the
State notice and opportunity for a hearing.
‘‘SEC. 5114. LOCAL EDUCATIONAL AGENCY APPLICATION.
‘‘(a) IN GENERAL.—In order to be eligible to receive
a distribution under section 5112(c) for any fiscal year,
a local educational agency shall submit, at such time as
the State requires, an application to the State. Such an
application shall be amended, as necessary, to reflect
changes in the activities and programs of the local edu-
cational agency.
‘‘(b) DEVELOPMENT.—
‘‘(1) CONSULTATION.—
‘‘(A) IN
GENERAL.—A local educational
agency shall develop its application through
timely and meaningful consultation with State
and local government representatives and com-
munity organizations, including religious orga-
nizations, with relevant expertise and interest in
drug and violence prevention and before and
after school activities, school personnel, stu-
dents, and parents.
674
‘‘(B) CONTINUED CONSULTATION.—On an
ongoing basis, the local educational agency shall
consult with such representatives and organiza-
tions in order to seek advice regarding how best
to coordinate such agency’s activities under this
part with other related strategies, programs,
and activities being conducted in the commu-
nity.
‘‘(2) DESIGN AND DEVELOPMENT.—To ensure
timely and meaningful consultation, a local edu-
cational agency at the initial stages of design and
development of a program or activity shall consult,
in accordance with subsection (c), with appropriate
entities and persons on issues regarding the design
and development of the program or activity, includ-
ing efforts to meet the principles of effectiveness de-
scribed in section 5115(a).
‘‘(c) CONTENTS OF APPLICATIONS.—An application
submitted by a local educational agency under this section
shall contain—
‘‘(1) an assurance that the activities or pro-
grams to be funded support State academic achieve-
ment goals in accordance with section 1111;
‘‘(2) in the case of drug and violence prevention
activities, a detailed explanation of the local edu-
675
cational agency’s comprehensive plan for drug and
violence prevention, which shall include a description
of—
‘‘(A) how the plan will be coordinated with
programs under this Act, other Federal, State,
and local programs for drug and violence pre-
vention, and before and after school activities,
as appropriate, in accordance with the provi-
sions of section 8306;
‘‘(B) the local educational agency’s per-
formance measures for drug and violence pre-
vention, that shall consist of—
‘‘(i) performance indicators for drug
and violence prevention; and
‘‘(ii) levels of performance for each
performance indicator;
‘‘(C) how such agency will assess and pub-
licly report progress toward attaining its per-
formance measures;
‘‘(D) the drug and violence prevention ac-
tivity or program to be funded, including how
the activity or program will meet the principles
of effectiveness described in section 5115(a),
and the means of evaluating such activity or
program;
676
‘‘(3) in the case of before and after school
activities—
‘‘(A) a description of the activity to be
funded;
‘‘(B) a description of how the activity is
expected to improve student academic perform-
ance or contribute to drug and violence preven-
tion;
‘‘(C) a description of how the activity will
meet the principles of effectiveness described in
section 5115(a); and
‘‘(D) a description of the partnership with
a community-based organization, a religious or-
ganization, and another public entity or private
organization, if appropriate.
‘‘(4) a certification that a meaningful assess-
ment has been conducted to determine community
needs, available resources in the private sector, and
capacity in the private sector, the findings of such
assessments, and a description of the mechanisms
used to provide effective notice to the community of
an intention to submit an application under this
title;
‘‘(5) an assurance that drug prevention pro-
grams supported under this part convey a clear and
677
consistent message that the use of drugs is wrong
and harmful; and
‘‘(6) such other information and assurances as
the State may reasonably require.
‘‘(d) PEER REVIEW.—
‘‘(1) IN GENERAL.—In reviewing local applica-
tions under this section, a State shall use a peer re-
view process or other methods of assuring the qual-
ity of such applications.
‘‘(2) CONSIDERATIONS.—
(A) IN GENERAL.—In determining whether
to approve the application of a local educational
agency under this section, a State shall consider
the quality of the local educational agency’s
comprehensive plan, including the degree to
which the principles of effectiveness described
in section 5115(a) are met.
‘‘(B) GENERAL APPROVAL.—A local edu-
cational agency’s application submitted to the
State under this subpart shall be deemed to be
approved by the State unless the State makes
a written determination, prior to the expiration
of the 90-day period beginning on the date that
the State receives the application, that the ap-
plication is in violation of this subpart.
678
‘‘(C) DISAPPROVAL.—The State shall not
finally disapprove a local educational agency ap-
plication, except after giving such agency notice
and an opportunity for a hearing.
‘‘SEC. 5115. AUTHORIZED ACTIVITIES.
‘‘(a) PRINCIPLES OF EFFECTIVENESS.—
‘‘(1) IN GENERAL.—For a program or activity
developed pursuant to this part to meet the prin-
ciples of effectiveness, such program or activity
shall—
‘‘(A) be based upon an assessment of ob-
jective data—
‘‘(i) regarding the drug and violence
problems in the elementary and secondary
schools and communities to be served, in-
cluding an objective analysis of the current
conditions and consequences regarding
drug use and violence, including delin-
quency and serious discipline problems,
among students who attend such schools
(including private school students who par-
ticipate in the drug and violence prevention
program) that is based on ongoing local
assessment or evaluation activities; or
679
‘‘(ii) regarding the need for before
and after school programs and activities in
such schools and communities;
‘‘(B) be based upon an established set of
performance measures aimed at ensuring that
all elementary and secondary schools and com-
munities served by the local educational agency
have a drug-free, safe, and orderly learning en-
vironment; and
‘‘(C) be based upon scientifically based re-
search that provides evidence that the program
to be used will be effective.
‘‘(2) PERIODIC EVALUATION.—The program or
activity shall undergo a periodic evaluation to assess
its progress toward achieving its goals and objec-
tives. The results shall be used to refine, improve,
and strengthen the program, and to refine the per-
formance measures. The results shall also be made
available to the public upon request, with public no-
tice of such availability provided.
‘‘(3) WAIVER.—A local educational agency may
apply to the State for a waiver of the requirement
of paragraph (1)(C) to allow innovative activities or
programs that demonstrate substantial likelihood of
success.
680
‘‘(b) STATE ACTIVITIES.—
‘‘(1) IN GENERAL.—A State shall use the funds
described in section 5112(b)(1), either directly, or
through grants and contracts, to plan, develop, and
implement capacity building, technical assistance,
accountability, program improvement services, and
coordination activities for local educational agencies,
community-based organizations, religious organiza-
tions, other public entities, and private organizations
that are designed to support the implementation of
programs and activities under this part.
‘‘(2) DATA COLLECTION.—
‘‘(A) IN GENERAL.—A State shall use the
funds described in section 5112(b)(2), either di-
rectly or through grants and contracts, to es-
tablish and implement a statewide system of
collecting data regarding crimes occurring on
school property.
‘‘(B) STATISTICS.—Such data collection
shall include statistics concerning the occur-
rence on school property of the following crimi-
nal offenses and prohibited activities as re-
ported to school security authorities or local po-
lice agencies—
‘‘(i) murder;
681
‘‘(ii) sex offenses, forcible or nonforc-
ible;
‘‘(iii) robbery;
‘‘(iv) aggravated assault;
‘‘(v) burglary;
‘‘(vi) manslaughter;
‘‘(vii) arson; and
‘‘(viii) arrests or persons referred for
school disciplinary action for liquor law
violations, drug-related offenses, and weap-
ons possessions.
‘‘(C) COMPILATION OF STATISTICS.—The
statistics shall be compiled in accordance with
definitions of such crimes as determined in the
State criminal code, but shall not identify vic-
tims of crimes or persons accused of crimes.
‘‘(D) REPORTING.—Such data and statis-
tics shall be reported to the public and shall be
reported on a school-by-school basis.
‘‘(E) LIMITATION.—Notwithstanding sub-
part 3, nothing in this subsection shall be con-
strued to authorize the Secretary to require
particular policies, procedures, or practices with
respect to crimes on school property or school
security.
682
‘‘(3) SAFE SCHOOLS.—The State shall establish
and implement a statewide policy requiring that stu-
dents attending persistently dangerous public ele-
mentary and secondary schools, as determined by
the State, or who become a victim of a violent crimi-
nal offense, as defined by State law, while in or on
the grounds of a public elementary school or sec-
ondary school that the student attends, be allowed to
attend a safe public school, including a public char-
ter school, or a private school if no safe public school
or public charter school can accommodate the stu-
dent, in the same State as the unsafe public elemen-
tary or secondary school, and allowing payment of
reasonable transportation costs and tuition costs for
such students.
‘‘(4) CODE OF CONDUCT—The State shall es-
tablish and implement a student code of conduct pol-
icy that clearly states responsibilities of students,
teachers, and administrators in maintaining a class-
room environment that allows a teacher to commu-
nicate effectively with all students in the class and
that allows all students in the class to learn.
‘‘(c) LOCAL EDUCATIONAL AGENCY ACTIVITIES.—
‘‘(1) PROGRAM REQUIREMENTS.—A local edu-
cational agency shall use funds described in section
683
5112(c) to develop, implement, and evaluate com-
prehensive programs and activities, which are coordi-
nated with other school and community-based serv-
ices and programs, that shall—
‘‘(A) support State academic achievement
goals in accordance with section 1111;
‘‘(B) be consistent with the principles of
effectiveness described in subsection (a);
‘‘(C) be designed to—
‘‘(i) prevent or reduce drug use or vio-
lence, delinquency, serious discipline prob-
lems, and poor academic performance; and
‘‘(ii) create a well disciplined environ-
ment conducive to learning, which includes
consultation between teachers, principals,
and other school personnel to identify early
warning signs of drug use and violence and
to provide behavioral interventions as part
of classroom management efforts; and
‘‘(D) include activities to promote the in-
volvement of parents in the activity or program,
to promote coordination with community groups
and coalitions, including religious organizations,
and government agencies, and to distribute in-
684
formation about the local educational agency’s
needs, goals, and programs under this part.
‘‘(2) AUTHORIZED
ACTIVITIES.—Each local
educational agency, or consortium of such agencies,
that receives a subgrant under section 5112(c) may
use such funds to carry out activities, such as—
‘‘(A) developmentally appropriate drug and
violence prevention programs in both elemen-
tary and secondary schools that incorporate a
variety of prevention strategies and activities,
which may include—
‘‘(i) teaching students that most peo-
ple do not use drugs;
‘‘(ii) teaching students to recognize
social and peer pressure to use drugs and
the skills for resisting drug use;
‘‘(iii) teaching students about the dan-
gers of emerging drugs;
‘‘(iv) engaging students in the learn-
ing process;
‘‘(v) incorporating activities in sec-
ondary schools that reinforce prevention
activities 
implemented 
in 
elementary
schools; and
685
‘‘(vi) involving families and commu-
nities in setting clear expectations against
drug use and enforcing consequences for
drug use;
‘‘(B) before and after school activities that
advance student achievement, including—
‘‘(i) remedial education activities and
academic enrichment learning programs,
including providing additional assistance to
students in order to allow them to improve
their academic achievement;
‘‘(ii) drug and violence prevention ac-
tivities;
‘‘(iii) math and science education ac-
tivities;
‘‘(iv) arts and music education activi-
ties;
‘‘(v) entrepreneurial education pro-
grams; and
‘‘(vi) mentoring programs;
‘‘(C) establishing or enhancing programs
or initiatives that improve academic achieve-
ment;
‘‘(D) training and development of school
personnel and parents in youth drug and vio-
686
lence prevention, including training in early
identification, intervention, and prevention of
threatening behavior;
‘‘(E) law enforcement and security activi-
ties, including—
‘‘(i) acquisition and installation of
metal detectors;
‘‘(ii) hiring and training of security
personnel, that are related to youth drug
and violence prevention;
‘‘(iii) reporting of criminal offenses on
school property;
‘‘(iv) development of comprehensive
school security assessments;
‘‘(F) counseling, mentoring, and referral
services, and other student assistance practices
and programs, including assistance provided by
qualified school based mental health services
personnel and the training of teachers by
school-based mental health service providers in
appropriate identification and intervention tech-
niques for disciplining and teaching students at
risk of violent behavior;
‘‘(G) establishing and implementing a sys-
tem for transferring suspension and expulsion
687
records by a local educational agency to any
public or private elementary or secondary
school;
‘‘(H) allowing students attending a persist-
ently dangerous public elementary or secondary
school, as determined by the State, or who be-
come a victim of a violent criminal offense, as
defined by State law, while in or on the grounds
of a public elementary school or secondary
school that the student attends, to attend a safe
public school, including a public charter school,
or a private school if no safe public school or
safe public charter school can accommodate the
student, in the same State as the unsafe public
elementary and or secondary school, and allow-
ing payment of reasonable transportation costs
and tuition costs for such students;
‘‘(I) the development and implementation
of character education and training programs
that reflect values, that take into account the
views of parents or guardians of the student for
whom the program is intended, which may in-
clude honesty, citizenship, courage, justice, re-
spect, 
personal 
responsibility, 
and 
trust-
worthiness;
688
‘‘(J) testing students for illegal drug use
or conducting student locker searches for illegal
drugs or drug paraphernalia;
‘‘(K) emergency intervention services fol-
lowing traumatic crisis events, such as a shoot-
ing, major accident, or a drug-related incident,
that has disrupted the learning environment;
‘‘(L) establishing and maintaining a school
violence hotline;
‘‘(M) expanding and improving school-
based mental health services, including early
identification of drug use and violence, assess-
ment, and direct individual or group counseling
services provided to students, parents, and
school personnel by qualified school based men-
tal health services personnel;
‘‘(N) alternative education programs or
services for students who have been expelled or
suspended from the regular educational set-
tings, including programs or services to assist
students to reenter the regular education set-
ting upon return from treatment or alternative
education programs; and
689
‘‘(O) the evaluation of any of the activities
authorized under this subsection and the collec-
tion of any data required by this part.
‘‘(d) GOVERNORS’ ACTIVITIES.—A chief executive of-
ficer of a State shall use funds made available under sec-
tion 5112(a)(3) for competitive grants or contracts with
local educational agencies, community-based organiza-
tions, religious organizations, and other public entities and
private organizations to support drug and violence preven-
tion programs and activities and before and after school
activities in accordance with the activities described in
subsection (c).
‘‘SEC. 5116. EVALUATION AND REPORTING.
‘‘(a) DATA COLLECTION.—
‘‘(1) IN GENERAL.—The National Center for
Education Statistics shall collect data to determine
the frequency, seriousness, and incidence of drug use
by youth in schools and communities in the States
using, if appropriate, data submitted by the States
pursuant to subsection (b).
‘‘(2) REPORT.—The Secretary shall submit to
the Congress a report on the data collected under
this subsection.
‘‘(b) STATE REPORT.—
690
‘‘(1) IN GENERAL.—Not later than October 1,
2004, and every third year thereafter, the chief exec-
utive officer of a State, in consultation with the
State educational agency, shall submit to the Sec-
retary a report on the implementation and effective-
ness of State and local programs under section
5115.
‘‘(2) SPECIAL RULE.—The report required by
this subsection shall be—
‘‘(A) based on the State’s ongoing evalua-
tion activities, and shall include data on the
prevalence of drug use and violence by youth in
schools and communities; and
‘‘(B) made available to the public upon re-
quest, with public notice of such availability
provided.
‘‘(c) LOCAL EDUCATIONAL AGENCY REPORT.—Each
local educational agency receiving funds under this part
shall submit to the State such information, and at such
intervals as the State reasonably requires to complete the
State report required by subsection (b), information on the
prevalence of drug use and violence by youth in the schools
and the community and the progress of the local edu-
cational agency toward meeting its performance measures.
691
The report shall be made available to the public upon re-
quest, with public notice of such availability provided.
‘‘Subpart 2—National Programs
‘‘SEC. 5121. FEDERAL ACTIVITIES.
‘‘(a) PROGRAM AUTHORIZED.—
‘‘(1) IN GENERAL.—From funds made available
to carry out this part under section 5003(2), the
Secretary, in consultation with the Secretary of
Health and Human Services, the Director of the Of-
fice of National Drug Control Policy, the Chair of
the Ounce of Prevention Council, and the Attorney
General, shall evaluate the effectiveness of programs
and activities that prevent the illegal use of drugs
and violence by youth, that promote safety and dis-
cipline for students in elementary and secondary
schools, and that provide before and after school su-
pervision and enrichment, based on the needs re-
ported by States and local educational agencies.
‘‘(2) 
COORDINATION.—The 
Secretary 
shall
carry out activities described in paragraph (1) di-
rectly, or through grants, contracts, or cooperative
agreements with public and private nonprofit and
for-profit organizations, including religious organiza-
tions, and individuals, or through agreements with
692
other Federal agencies, and shall coordinate such ac-
tivities with other appropriate Federal activities.
‘‘(3) PROGRAMS.—Activities described in para-
graph (1) may include—
‘‘(A) demonstrations and rigorous scientif-
ically based evaluations of innovative ap-
proaches to drug and violence prevention and
before and after school activities based on needs
reported by State and local educational agen-
cies;
‘‘(B) the provision of information on drug
abuse education and prevention to the Secretary
of Health and Human Services for dissemina-
tion by the clearinghouse for alcohol and drug
abuse information established under section
501(d)(16) of the Public Health Service Act;
and
‘‘(C) continuing technical assistance to
chief executive officers, State agencies, and
local educational agencies to build capacity to
develop and implement high-quality, effective
programs consistent with the principles of effec-
tiveness.
693
‘‘(b) PEER REVIEW.—The Secretary shall use a peer
review process in reviewing applications for funds under
this section.
‘‘Subpart 3—Gun Possession
‘‘SEC. 5125. GUN-FREE SCHOOL REQUIREMENTS.
‘‘(a) REQUIREMENTS.—
‘‘(1) STATE LAW.—Each State receiving funds
under this Act shall have in effect a State law re-
quiring each local educational agency—
‘‘(A) to expel from school for a period of
not less than one year a student who is deter-
mined to have brought a firearm to a school
under the jurisdiction of a local educational
agency in that State, except that such State law
shall allow the chief administering officer of
such local educational agency to modify such
expulsion requirement for a student on a case-
by-case basis; and
‘‘(B) to have a policy requiring each ele-
mentary and secondary school to refer to the
criminal justice or juvenile delinquency system
any student who brings a firearm to school.
‘‘(2) CONSTRUCTION.—Nothing in this part
shall be construed to prevent a State from allowing
a local educational agency that has expelled a stu-
694
dent from such student’s regular school setting from
providing educational services to such student in an
alternative setting.
‘‘(b) SPECIAL RULE.—The provisions of this section
shall be construed in a manner consistent with the Individ-
uals with Disabilities Education Act.
‘‘(c) DEFINITIONS.—For the purpose of this part—
‘‘(1) the term ‘firearm’ has the same meaning
given to such term under section 921(a)(3) of title
18, United States Code; and
‘‘(2) the term ‘school’ does not include a home
school, regardless of whether a home school is treat-
ed as a private school under State law.
‘‘Subpart 4—General Provisions
‘‘SEC. 5131. DEFINITIONS.
‘‘For the purposes of this part, the following terms
have the following meanings:
‘‘(1) BEFORE
AND
AFTER
SCHOOL
ACTIVI-
TIES.—The term ‘before and after school activities’
means academic, recreational, and enrichment activi-
ties for school-age youth outside of the regular
school hours or school year.
‘‘(2) CONTROLLED
SUBSTANCE.—The term
‘controlled substance’ means a drug or other sub-
stance identified under Schedule I, II, III, IV, or V
695
in section 202(c) of the Controlled Substances Act
(21 U.S.C. 812(c)).
‘‘(3) DRUG.—The term ‘drug’ includes con-
trolled substances; the illegal use of alcohol and to-
bacco; and the harmful, abusive, or addictive use of
substances, 
including 
inhalants 
and 
anabolic
steroids.
‘‘(4) DRUG AND VIOLENCE PREVENTION.—The
term ‘drug and violence prevention’ means—
‘‘(A) with respect to drugs, prevention,
early intervention, rehabilitation referral, or
education related to the illegal use of drugs;
and
‘‘(B) with respect to violence, the pro-
motion of school safety, such that students and
school personnel are free from violent and dis-
ruptive acts, on school premises, going to and
from school, and at school-sponsored activities,
through the creation and maintenance of a
school environment that is free of weapons and
fosters individual responsibility and respect for
the rights of others.
‘‘(5) NONPROFIT.—The term ‘nonprofit,’ as ap-
plied to a school, agency, organization, or institution
means a school, agency, organization, or institution
696
owned and operated by one or more nonprofit cor-
porations or associations, no part of the net earnings
of which inures, or may lawfully inure, to the benefit
of any private shareholder or individual.
‘‘(6) SCHOOL-AGED
POPULATION.—The term
‘school-aged population’ means the population aged
5 through 17, as determined by the Secretary on the
basis of the most recent satisfactory data available
from the Department of Commerce.
‘‘(7) SCHOOL BASED MENTAL HEALTH SERV-
ICES
PROVIDER.—The term ‘school based mental
health services provider’ includes a State licensed or
State certified school counselor, school psychologist,
school social worker, or other State licensed or cer-
tified mental health professional qualified under
State law to provide such services to children and
adolescents.
‘‘(8) SCHOOL PERSONNEL.—The term ‘school
personnel’ includes teachers, principals, administra-
tors, guidance counselors, social workers, psycholo-
gists, nurses, librarians, and other support staff who
are employed by a school or who perform services for
the school on a contractual basis.
697
‘‘(9) STATE.—The term ‘State’ means each of
the 50 States, the District of Columbia, and the
Commonwealth of Puerto Rico.
‘‘SEC. 5132. MESSAGE AND MATERIALS.
‘‘(a) ‘WRONG AND HARMFUL’ MESSAGE.—Drug pre-
vention programs supported under this title shall convey
a clear and consistent message that the use of drugs is
wrong and harmful.
‘‘(b) CURRICULUM.—The Secretary shall not pre-
scribe the use of specific curricula for programs supported
under this part.
‘‘SEC. 5133. PARENTAL CONSENT.
‘‘Upon receipt of written notification from the par-
ents or legal guardians of a student, the local educational
agency shall withdraw such student from any program or
activity funded under this title. The local educational
agency shall make reasonable efforts to inform parents or
legal guardians of the content of such programs or activi-
ties funded under this title, other than classroom instruc-
tion.
‘‘SEC. 5134. PROHIBITED USES OF FUNDS.
‘‘No funds under this part may be used for—
‘‘(1) construction (except for minor remodeling
needed to accomplish the purposes of this part);
698
‘‘(2) medical services, drug treatment or reha-
bilitation, except for pupil services or referral to
treatment for students who are victims of, or wit-
nesses to, use of drugs or crime; and
‘‘(3) activities or programs that discriminate
against or denigrate the religious or moral beliefs of
students who participate in such activities or pro-
grams or of the parents or legal guardians of such
students.
‘‘SEC. 5135. CONTINUATION AWARDS.
‘‘From funds made available under section 5003(2),
the Secretary is authorized to continue funding multi-year
grants awarded prior to fiscal year 2001 under part I of
title X, as such part was in effect on the day preceding
the date of the enactment of the No Child Left Behind
Act of 2001, or the Middle School Coordinator Initiative
(as described in title III of the Department of Education
Act, 2000, (as enacted into law by section 1004(a)(4) of
Public Law 106–113) and prior appropriations Acts, prior
to the date of the enactment of the No Child Left Behind
Act for the duration of the original grant period.
‘‘SEC. 5136. SERVICES PROVIDED BY CHARITABLE, RELI-
GIOUS, OR PRIVATE ORGANIZATIONS.
‘‘(a) IN GENERAL.—A State may administer and pro-
vide services under the programs and activities described
699
in this part through grants and contracts with charitable,
religious, or private organizations.
‘‘(b) RELIGIOUS ORGANIZATIONS.—The purpose of
this section is to allow States to provide grants to or to
contract with religious organizations on the same basis as
any other nongovernmental provider without impairing the
religious character of such organizations, and without di-
minishing the religious freedom of beneficiaries of assist-
ance funded under such program.
‘‘(c) NONDISCRIMINATION AGAINST RELIGIOUS OR-
GANIZATIONS.—In the event a State exercises its authority
under subsection (a), religious organizations are eligible,
on the same basis as any other private organization, as
grant recipients or contractors, to provide assistance
under any program described in this part if the programs
sponsored by such religious organization are implemented
in a manner consistent with Article I of the Constitution.
Except as provided in subsection (i), neither the Federal
Government, a State, nor a local educational agency re-
ceiving funds under this part may discriminate against an
organization that is or applies to be a contractor to pro-
vide assistance on the basis that the organization has a
religious character.
‘‘(d) RELIGIOUS CHARACTER AND FREEDOM.—
700
‘‘(1) RELIGIOUS ORGANIZATIONS.—A religious
organization that receives a grant or contract under
this part shall retain its religious character and con-
trol over the definition, development, practice, and
expression of its religious beliefs.
‘‘(2) ADDITIONAL
SAFEGUARDS.—Neither the
Federal Government, a State, nor local government
shall require a religious organization to—
‘‘(A) alter its form of internal governance;
or
‘‘(B) remove religious art, icons, scripture,
or other symbols;
in order to be eligible to receive a grant or contract
under this part.
‘‘(e) EMPLOYMENT PRACTICES.—A religious organi-
zation’s exemption provided under section 702 of the Civil
Rights Act of 1964 (42 U.S.C. 2000e–1), regarding em-
ployment practices, shall not be affected by its participa-
tion in, or receipt of funds from, programs under this part.
‘‘(f) 
NONDISCRIMINATION
AGAINST
BENE-
FICIARIES.—Except as otherwise provided in law, a reli-
gious organization shall not discriminate against an indi-
vidual in regard to rendering assistance funded under any
program described in this part on the basis of religion,
701
a religious belief, or refusal to actively participate in a reli-
gious practice.
‘‘(g) FISCAL ACCOUNTABILITY.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), any religious organization receiving a
grant or contracting to provide assistance funded
under any program described in this title shall be
subject to the same regulations as other recipients
or contractors to account in accord with generally
accepted auditing principles for the use of such
funds provided under such programs.
‘‘(2) LIMITED AUDIT.—Such organization shall
segregate government funds provided under such
program into a separate account. Only the Govern-
ment funds shall be subject to audit by the Govern-
ment.
‘‘(h) LIMITATIONS ON USE OF FUNDS FOR CERTAIN
PURPOSES.—No funds provided directly to institutions or
organizations to provide services and administer programs
under this Act part shall be expended for sectarian wor-
ship, instruction, or proselytization.
‘‘(i) PREEMPTION.—Nothing in this section shall be
construed to preempt any provision of a State constitution
or State statute that prohibits or restricts the expenditure
of State funds in or by religious organizations.
702
‘‘(j) PROTECTION
FOR BENEFICIARIES.—A chari-
table, religious, or private organization shall not subject
a participant during a program assisted under this title
to sectarian worship, instruction, or proselytization.
‘‘SEC. 5137. DISCIPLINE OF CHILDREN WITH DISABILITIES.
‘‘(a) AUTHORITY
OF SCHOOL PERSONNEL.—Each
State receiving funds under this Act shall require each
local educational agency to have in effect a policy under
which school personnel of such agency may discipline (in-
cluding expel or suspend) a child with a disability who—
‘‘(1) carries or possesses a weapon to or at a
school, on school premises, or to or at a school func-
tion, under the jurisdiction of a State or a local edu-
cational agency,
‘‘(2) knowingly possesses or uses illegal drugs
or sells or solicits the sale of a controlled substance
at a school, on school premises, or at a school func-
tion, under the jurisdiction of a State or a local edu-
cational agency, or
‘‘(3) commits an aggravated assault or battery
(as defined under State or local law) at a school, on
school premises, or at a school function, under the
jurisdiction of a State or local educational agency, or
703
in the same manner in which such personnel may dis-
cipline a child without a disability. Such personnel may
modify the disciplinary action on a case-by-case basis.
‘‘(b) RULE
OF CONSTRUCTION.—Nothing in sub-
section (a) shall be construed to prevent a child with a
disability who is disciplined pursuant to the authority pro-
vided under paragraphs (1) and (3) of subsection (a), from
asserting a defense that the possession or use of the illegal
drugs (or the sale or solicitation of the controlled sub-
stance) or the carrying or possession of the weapon was
unintentional or innocent.
‘‘(c) FREE APPROPRIATE PUBLIC EDUCATION.—
‘‘(1) CEASING TO PROVIDE EDUCATION.—Not-
withstanding any other provision of Federal law, a
child expelled or suspended under subsection (a)
shall not be entitled to continue educational services,
including a free appropriate public education, re-
quired under Federal law during the term of such
expulsion or suspension, if the State in which the
local educational agency responsible for providing
educational services to such child does not require a
child without a disability to receive educational serv-
ices after being expelled or suspended.
‘‘(2) PROVIDING EDUCATION.—Notwithstanding
paragraph (1), the local educational agency respon-
704
sible for providing educational services to a child
with a disability who is expelled or suspended under
paragraph (1) may choose to continue to provide
educational services or mental health services to
such child. If the local educational agency so chooses
to continue to provide the services—
‘‘(A) nothing in any other provision of
Federal law shall require the local educational
agency to provide such child with any particular
level of service; and
‘‘(B) the location where the local edu-
cational agency provides the services shall be
left to the discretion of the local educational
agency.
‘‘(3) DEFINITIONS.—For purposes of this sub-
section:
‘‘(A) 
CONTROLLED
SUBSTANCE.—The
term ‘controlled substance’ shall have the same
meaning as the term is defined in section 5131.
‘‘(B) ILLEGAL
DRUG.—The term ‘illegal
drug’ means a controlled substance, but does
not include such a substance that is legally pos-
sessed or used under the supervision of a li-
censed health-care professional or that is legally
possessed or used under any other authority
705
under the Controlled Substances Act or under
any other provision of Federal law.’’.
‘‘(C) WEAPON.—The term ‘weapon’ has
the meaning given the term ‘dangerous weapon’
under subsection (g)(2) of section 930 of title
18, United States Code.
‘‘PART B—ENHANCING EDUCATION THROUGH
TECHNOLOGY
‘‘SEC. 5201. SHORT TITLE.
‘‘This title may be cited as the ‘Enhancing Education
Through Technology Act of 2001’.
‘‘SEC. 5202. PURPOSES.
‘‘The purposes of this part are as follows:
‘‘(1) To provide assistance to States and local-
ities for implementing innovative technology initia-
tives that lead to increased student academic
achievement and that may be evaluated for effective-
ness and replicated if successful.
‘‘(2) To encourage the establishment or expan-
sion of initiatives, including those involving public-
private partnerships, designed to increase access to
technology, particularly in high-need local edu-
cational agencies.
‘‘(3) To assist States and localities in the acqui-
sition, development, interconnection, implementation,
706
improvement, and maintenance of an effective edu-
cational technology infrastructure.
‘‘(4) To promote initiatives that provide school
principals, administrators, and teachers with the ca-
pacity to effectively utilize technology in ways which
integrate such technology with challenging State
content and student achievement standards, through
such means as high quality professional development
programs.
‘‘(5) To enhance the ongoing professional devel-
opment of principals, administrators, and teachers
by providing constant access to updated research in
teaching and learning via electronic means.
‘‘(6) To support the development of electronic
networks and other innovative methods, such as dis-
tance learning, of delivering challenging courses and
curricula for students who would otherwise not have
access to such courses and curricula, especially in
isolated regions.
‘‘(7) To support the rigorous evaluation of pro-
grams funded under this part, especially the impact
of such initiatives on student academic performance,
and ensuring timely information on the results of
such evaluations are widely accessible through elec-
tronic means.
707
‘‘(8) To support local efforts for the use of
technology to promote parent and family involve-
ment in education and communication among par-
ents, teachers and students.
‘‘SEC. 5203. AUTHORIZATION OF APPROPRIATIONS; FUND-
ING RULE.
‘‘(a) IN GENERAL.—There are authorized to be ap-
propriated to carry out this part—
‘‘(1) $872,000,000 for fiscal year 2002; and
‘‘(2) such sums as may be necessary for each
of fiscal years 2003 through 2006.
‘‘(b) ALLOCATION OF FUNDS BETWEEN NATIONAL
AND STATE AND LOCAL INITIATIVES.—Except as pro-
vided in subsection (c), the amount of funds made avail-
able under subsection (a) shall be allocated as follows:
‘‘(1) Not less than 95 percent shall be made
available for State and local technology initiatives
under subpart 1.
‘‘(2) Not more than 5 percent may be made
available for activities of the Secretary under sub-
part 2.
‘‘SEC. 5204. DEFINITIONS.
‘‘In this part:
‘‘(1) The term ‘distance learning’ means the
transmission of educational or instructional pro-
708
gramming to geographically dispersed individuals
and groups via telecommunications.
‘‘(2) The term ‘eligible local entity’ means—
‘‘(A) a high-need local educational agency;
or
‘‘(B) an eligible local partnership.
‘‘(3) The term ‘eligible local partnership’ means
a partnership that includes at least one high-need
local educational agency and at least one—
‘‘(A) local educational agency that can
demonstrate that teachers in schools served by
that agency are using technology effectively in
their classrooms;
‘‘(B) institution of higher education;
‘‘(C) for-profit business or organization
that develops, designs, manufactures, or pro-
duces technology products or services, or has
substantial expertise in the application of tech-
nology;
‘‘(D) public or private non-profit organiza-
tion with demonstrated experience in the appli-
cation of educational technology; or
‘‘(E) local educational agency which has
the potential to become an exemplary model for
wide-scale adoption by other local educational
709
agencies on how to effectively integrate tech-
nology and proven research-based teaching
practices which result in improvement in class-
room instruction in the core academic subject
areas, and the preparation of students to meet
challenging State content and student achieve-
ment standards.
‘‘(4) The term ‘high-need local educational
agency’ means a local educational agency that—
‘‘(A) is among the local educational agen-
cies in the State with the highest numbers or
percentages of children from families with in-
comes below the poverty line, as defined by the
Office of Management and Budget and revised
annually in accordance with section 673(2) of
the Community Services Block Grant Act (42
U.S.C. 9902(2));
‘‘(B) includes one or more low-performing
schools; and
‘‘(C) has a substantial need for assistance
in acquiring and using technology.
710
‘‘Subpart 1—State and Local Technology for Success
Grants
‘‘SEC. 5211. DETERMINATION OF AMOUNT OF STATE ALLOT-
MENT.
‘‘(a) IN GENERAL.—Except as otherwise provided in
this subpart, each State shall be eligible to receive a grant
under this subpart for a fiscal year in an allotment deter-
mined as follows:
‘‘(1) 50 percent shall bear the same relationship
to the amount made available under section
5203(b)(1) for such year as the amount such state
received under part A for title I for such year bears
to the amount received for such year under such
part by all States.
‘‘(2) 50 percent shall be determined on the
basis of the State’s relative population of individuals
age 5 through 17, as determined by the Secretary on
the basis of the most recent satisfactory data.
‘‘(b) RESERVATION OF FUNDS FOR BUREAU OF IN-
DIAN AFFAIRS AND OUTLYING AREAS.—Of the amount
made available to carry out this subpart under section
5203(b)(1) for a fiscal year—
‘‘(1) the Secretary shall reserve 1⁄2 of 1 percent
for the Secretary of the Interior for programs under
this subpart for schools operated or funded by the
Bureau of Indian Affairs; and
711
‘‘(2) the Secretary shall reserve 1⁄2 of 1 percent
to provide assistance to the outlying areas.
‘‘(c) MINIMUM ALLOTMENT.—The amount of any
State’s allotment under subsection (a) for any fiscal year
may not be less than 1⁄2 of 1 percent of the amount made
available under section 5203(b)(1) for such year.
‘‘(d) REALLOTMENT OF UNUSED FUNDS.—If any
State does not apply for an allotment under this subpart
for a fiscal year, the Secretary shall reallot the amount
of the State’s allotment to the remaining States in accord-
ance with this section.
‘‘SEC. 5212. USE OF ALLOTMENT BY STATE.
‘‘Of the amount provided to a State from its allot-
ment under section 5211—
‘‘(1) the State may use not more than 5 percent
to carry out activities under section 5215; and
‘‘(2) not less than 95 percent shall be distrib-
uted to local educational agencies by the State as
follows:
‘‘(A) At least 80 percent shall be used for
activities described in section 5216, to be dis-
tributed through a formula developed by the
State which shall target funds to high-need
local educational agencies which have submitted
plans to the State under section 5214.
712
‘‘(B) Not more than 20 percent shall be
awarded through a State-determined competi-
tive process to eligible local entities which have
submitted plans to the State under section
5214, to be used to carry out activities con-
sistent with this subpart.
‘‘SEC. 5213. STATE PLANS.
‘‘(a) IN GENERAL.—To be eligible to receive a grant
under this subpart, a State shall submit a new or updated
statewide, long-range strategic educational technology
plan to the Secretary at such time, in such manner, and
containing such information as the Secretary may reason-
ably require.
‘‘(b) CONTENTS.—Each State plan submitted under
this section shall include the following:
‘‘(1) A description of how the State will use
funds provided under this subpart to improve the
academic achievement of all students and to improve
the capacity of all teachers to provide instruction in
the State, through the use of education technology.
‘‘(2) A description of the State’s goals for using
advanced technology to improve student achievement
aligned to challenging State content and student
achievement standards, including a description of
how the State will take steps to ensure that all stu-
713
dents in the State, particularly those residing in dis-
tricts served by high-need local educational agencies,
will have increased access to educational technology.
‘‘(3) A description of the accountability meas-
ures the State will use for the evaluation of the ex-
tent to which education technology funded under
this subpart has been successfully integrated into
teaching strategies and school curriculum, has in-
creased the ability of teachers to teach, and has en-
abled students to meet challenging State content and
student achievement standards.
‘‘(4) A description of how the State will encour-
age the development and utilization of innovative
strategies for the delivery of specialized or rigorous
academic courses and curricula through the use of
technology and distance learning, particularly for
those areas of the State which are isolated and
which would not otherwise have access to such
courses and curricula.
‘‘(5) An assurance that financial assistance pro-
vided under this subpart shall supplement, not sup-
plant, State and local funds.
‘‘(6) A description of how the State will ensure
that every teacher within a school funded under this
714
subpart will be computer-literate and proficient (as
determined by the State) by 2006.
‘‘(7) A description of how the State will ensure
that grants to eligible local applicants are of suffi-
cient size, scope, and quality to meet the purposes
of this part effectively.
‘‘(c) DEEMED APPROVAL.—A State plan submitted
to the Secretary under this section shall be deemed to be
approved by the Secretary unless the Secretary makes a
written determination prior to the expiration of the 90-
day period which begins on the date the Secretary receives
the application that the plan is in violation of the provi-
sions of this subpart.
‘‘(d) DISAPPROVAL.—The Secretary may issue a final
disapproval of a State’s application under this subpart
only after giving the State notice and an opportunity for
a hearing.
‘‘(e) DISSEMINATION OF INFORMATION ON STATE
PLANS.—The Secretary shall make information on State
plans under this subpart widely available to schools and
the general public, including through dissemination on the
Internet, in a timely and user-friendly manner.
‘‘SEC. 5214. LOCAL PLANS.
‘‘(a) IN GENERAL.—An applicant seeking to receive
funds from a State under this subpart shall submit a new
715
or updated long-range local strategic educational tech-
nology plan consistent with the objectives of the statewide
education technology plan described in section 5213(a) to
the State at such time, in such manner, and accompanied
by such information as the State may reasonably require.
‘‘(b) CONTENTS OF LOCAL PLAN.—Each local plan
described in this section shall include the following:
‘‘(1) A description of how the applicant will use
Federal funds provided under this subpart to im-
prove the academic achievement of all students and
to improve the capacity of all teachers to provide in-
struction through the use of education technology.
‘‘(2) A description of the applicant’s specific
goals for using advanced technology to improve stu-
dent achievement aligned to challenging State con-
tent and student achievement standards, including a
description of how the applicant will take steps to
ensure that all students in the local educational area
(particularly those in high poverty and high-need
schools) have increased access to educational tech-
nology, and a description of how such technology will
be used to improve the academic achievement for
such students.
‘‘(3) A description of how the applicant will
promote—
716
‘‘(A) the utilization of teaching strategies
and curricula, based upon scientifically based
research, which effectively integrate technology
into instruction, leading to improvements in
student academic achievement as measured by
challenging State content and student achieve-
ment standards; and
‘‘(B) sustained and intensive, high quality
professional development, based upon scientif-
ically based research, which increases teacher
capacity to create improved learning environ-
ments through the integration of technology
into instruction through proven strategies and
improved content as described in subparagraph
(A).
‘‘(4) A description of how the applicant will in-
tegrate technology across the curriculum and a time
line for such integration, including a description of
how the applicant will make effective use of new and
emerging technologies and teaching practices that
are linked to such emerging technologies to provide
challenging content and improved classroom instruc-
tion.
‘‘(5) A description of how the applicant will co-
ordinate education technology activities funded
717
under this subpart, including (but not limited to)
professional development, with any such activities
provided under other Federal, State, and local pro-
grams, including those authorized under title I, title
II, title IV, and (where applicable) the Individuals
with Disabilities Education Act (20 U.S.C. 1400 et
seq.) and the Carl D. Perkins Vocational and Tech-
nical Education Act of 1998 (20 U.S.C. 2301 et
seq.).
‘‘(6) A description of the process the applicant
will use for the evaluation of the extent to which
funds provided under this subpart were effective in
integrating technology into school curriculum, in-
creasing the ability of teachers to teach, and ena-
bling students to meet challenging State content and
student achievement standards.
‘‘(7) If requested by the State—
‘‘(A) a description of how the applicant will
use funds provided under this subpart in a
manner which is consistent with any broad edu-
cation technology priorities which may be estab-
lished by the State consistent with this subpart;
and
‘‘(B) an assurance that any technology ob-
tained with funds provided under this subpart
718
will have compatibility and interconnectivity
with technology obtained with funds provided
previously under title III (as in effect the day
preceding the date of enactment of the No
Child Left Behind Act of 2001).
‘‘(8) A description of the applicant’s Internet
filtering or blocking technology and related enforce-
ment policies.
‘‘SEC. 5215. STATE ACTIVITIES.
‘‘(a) IN GENERAL.—From funds made available
under section 5212(1), a State shall carry out activities
and assist local efforts to carry out the purposes of this
subpart, which may include the following activities:
‘‘(1) Developing or assisting applicants in the
development and utilization of innovative strategies
to deliver rigorous academic programs through the
use of technology and distance learning, and pro-
viding other technical assistance to such applicants
throughout the State, with a priority to high-need
local educational agencies.
‘‘(2) Establishing or supporting joint public and
private initiatives to provide interest-free or reduced
loans for the acquisition of educational technology
for high-need local educational agencies and stu-
dents attending schools within such districts.
719
‘‘(3) Assisting applicants in providing sustained
and intensive high-quality professional development
based upon scientifically based research in the inte-
gration of advanced technologies (including emerging
technologies) into curriculum and in using those
technologies to create new learning environments, in-
cluding training in the use of technology to—
‘‘(A) access data and resources to develop
curricula and instructional materials;
‘‘(B) enable teachers to use the Internet to
communicate with other teachers and to re-
trieve Internet-based learning resources; and
‘‘(C) lead to improvements in classroom in-
struction in the core academic subject areas,
which effectively prepare students to meet chal-
lenging State content and student achievement
standards.
‘‘(4) Assisting applicants in providing all stu-
dents (including students with disabilities and stu-
dents with limited English proficiency) with access
to educational technology.
‘‘(5) Establishing or expanding access to tech-
nology in neighborhoods served by high-need local
educational agencies, with special emphasis for ac-
cess provided through technology centers in partner-
720
ship with libraries and with the support of the pri-
vate sector.
‘‘(6) Developing enhanced performance meas-
urement systems to determine the effectiveness of
education technology programs funded under this
subpart, especially in determining the extent to
which education technology funded under this sub-
part has been successfully integrated into teaching
strategies and school curriculum, has increased the
ability of teachers to teach, and has enabled stu-
dents to meet challenging State content and student
achievement standards.
‘‘(b) LIMITATION ON ADMINISTRATIVE COSTS.—Of
the 5 percent of the State’s allotment under section 5211
which may be used to carry out activities under this sec-
tion, not more than 2 percent may be used by the State
for administrative costs.
‘‘SEC. 5216. LOCAL ACTIVITIES.
‘‘(a) PROFESSIONAL DEVELOPMENT.—A recipient of
funds made available under section 5212(2)(A) shall use
not less than 20 percent of such funds to provide sustained
and intensive high-quality professional development based
on scientifically based research in the integration of ad-
vanced technologies (including emerging technologies) into
curriculum and in using those technologies to create new
721
learning environments, including training in the use of
technology to—
‘‘(1) access data and resources to develop cur-
ricula and instructional materials;
‘‘(2) enable teachers to use the Internet to com-
municate with other teachers and retrieve Internet-
based learning resources; and
‘‘(3) lead to improvements in classroom instruc-
tion in the core academic subject areas, which effec-
tively prepare students to meet challenging State
content and student achievement standards.
‘‘(b) WAIVER.—Subsection (a) does not apply to a re-
cipient of funds under section 5212(2)(A) who dem-
onstrates, to the satisfaction of the State, that such recipi-
ent already provides sustained and intensive high-quality
professional development based on scientifically based re-
search in the integration of technology (including emerg-
ing technologies) into the curriculum.
‘‘(c) OTHER ACTIVITIES.—In addition to the activi-
ties described in subsection (a), a recipient of funds made
available under section 5212(2)(A) shall use such funds
to carry out other activities consistent with this subpart,
which may include the following:
‘‘(1) Adapting or expanding existing and new
applications of technology to enable teachers to in-
722
crease student academic achievement through the
use of teaching practices and advanced technologies
which are based upon scientifically based research
and are designed to prepare students to meet chal-
lenging State content and student achievement
standards, and for developing and utilizing innova-
tive strategies to deliver rigorous academic pro-
grams.
‘‘(2) Developing, expanding, or acquiring edu-
cation technology as a means to improve the aca-
demic achievement of all students.
‘‘(3) The establishment or expansion of initia-
tives, especially those involving public-private part-
nerships, designed to increase access to technology,
particularly for high-need local educational agencies.
‘‘(4) Using technology to promote parent and
family involvement and support communications be-
tween parents, teachers, and students.
‘‘(5) Acquiring filtering, blocking, or other tech-
nologies and activities which are designed to protect
students from harmful materials which may be
accessed on the Internet.
‘‘(6) Using technology to collect, manage, and
analyze data to inform school improvement efforts.
723
‘‘(7) 
Implementing 
enhanced 
performance
measurement systems to determine the effectiveness
of education technology programs funded under this
subpart, especially in determining the extent to
which education technology funded under this sub-
part has been successfully integrated into teaching
strategies and school curriculum, has increased the
ability of teachers to teach, and has enabled stu-
dents to meet challenging State content and student
achievement standards.
‘‘(8) Preparing one or more teachers in elemen-
tary, middle, and secondary schools as technology
leaders who are provided with the means to serve as
experts and train other teachers in the effective use
of technology.
‘‘(9) Establishing or expanding access to tech-
nology in neighborhoods served by high-need local
educational agencies, with special emphasis for ac-
cess provided through technology centers in partner-
ship with libraries and with the support of the pri-
vate sector.
724
‘‘Subpart 2—National Technology Initiatives
‘‘SEC. 5221. NATIONAL TECHNOLOGY INITIATIVES.
‘‘(a) IN GENERAL.—Using funds made available
under section 5203(b)(2), the Secretary may carry out the
following initiatives:
‘‘(1) The funding of programs built upon sci-
entifically based research, which utilize technology in
education, through the competitive awarding of
grants or contracts, pursuant to a peer review proc-
ess, to States, local educational agencies (including
eligible local entities), institutions of higher edu-
cation, and public and private or nonprofit or for-
profit agencies.
‘‘(2) The provision of technical assistance to
States, local educational agencies, and other grant-
ees under this subpart (directly or through the com-
petitive award of grants or contracts) in order to as-
sist such States, local educational agencies, and
other grantees to achieve the purposes of this part
subpart.
‘‘(b) STUDY OF USE OF TECHNOLOGY TO IMPROVE
ACADEMIC ACHIEVEMENT.—Using funds made available
under section 5203(b)(2), the Secretary shall conduct an
independent, long-term study utilizing scientifically based
research methods and control groups, on the effectiveness
of the uses of educational technology on improving student
725
academic achievement, and shall include in the study an
identification of effective uses of educational technology
that have a measurable positive impact on student achieve-
ment.
‘‘(c) PRIORITIES.—In funding initiatives under sub-
section (a), the Secretary shall place a priority on projects
which—
‘‘(1) develop innovative models using electronic
networks or other forms of distance learning to pro-
vide challenging courses which are otherwise not
readily available to students in a particular school
district, particularly in rural areas; and
‘‘(2) increase access to technology to those re-
siding in districts served by high-need local edu-
cational agencies.
‘‘SEC. 5222. REQUIREMENTS FOR RECIPIENTS OF FUNDS.
‘‘(a) APPLICATION.—In order to receive a grant or
contract under this subpart, an entity shall submit an ap-
plication to the Secretary (at such time and in such form
as the Secretary may require), and shall include in the
application—
‘‘(1) a description of the project proposed to be
carried out with the grant or contract and how it
would carry out the purposes of this subpart; and
726
‘‘(2) a detailed plan for the independent evalua-
tion of the project built upon scientifically based re-
search principles to determine the impact on the
academic achievement of students served under such
project, as measured by challenging State content
and student achievement standards.
‘‘(b) NON-FEDERAL SHARE.—
‘‘(1) IN GENERAL.—Subject to paragraphs (2)
and (3), the Secretary may require any recipient of
a grant or contract under this subpart to share in
the cost of the activities assisted under such grant
or contract, which may be in the form of cash or in-
kind contributions fairly valued.
‘‘(2) INCREASE.—The Secretary may increase
the non-Federal share required of a recipient of a
grant or contract under this subpart after the first
year such recipient receives funds under such grant
or contract.
‘‘(3) MAXIMUM.—The non-Federal share re-
quired under this subsection may not exceed 50 per-
cent of the cost of the activities assisted under a
grant or contract under this subpart.
‘‘(4) NOTICE.—The Secretary shall publish in
the Federal Register the non-Federal share required
under this subsection.
727
‘‘SEC. 5223. EVALUATION AND DISSEMINATION.
‘‘(a) EVALUATION AUTHORITY.—In order to identify
effective uses of educational technology that have a meas-
urable positive impact on student achievement, the Sec-
retary shall—
‘‘(1) develop tools and provide resources, includ-
ing technical assistance, for recipients of funds
under this subpart to effectively evaluate their activi-
ties; and
‘‘(2) conduct independent evaluations of the ac-
tivities assisted under this subpart.
‘‘(b) POST-GRANT EVALUATION INFORMATION AND
DISSEMINATION.—
‘‘(1) IN GENERAL.—The Secretary shall make
information on each project funded with a grant or
contract under this subpart widely available to
schools and the general public, including through
dissemination on the Internet, in a timely and user-
friendly manner.
‘‘(2) SPECIFIC INFORMATION REQUIRED.—The
information made available and disseminated under
paragraph (1) shall at a minimum include the fol-
lowing:
‘‘(A) Upon the awarding of such a grant or
contract under this subpart, the identification
of the grant or contract recipient, the amount
728
of the grant or contract, the stated goals of the
grant or contract, the methods by which the
grant or contract will be evaluated in meeting
such stated goals, and the timeline for meeting
such goals.
‘‘(B) Not later than one year after the
awarding of such a grant or contract, informa-
tion on the progress of the grant or contract re-
cipient in carrying out the grant or contract, in-
cluding a detailed description of the use of the
funds provided, the extent to which the stated
goals have been reached, and the results (or
progress of) the evaluation of the project, meet-
ing the requirements of scientifically based re-
search, funded under the grant or contract.
‘‘(C) Not later than two years after the
awarding of such a grant or contract (and up-
dated thereafter as appropriate), a follow-up to
the information described in subparagraph (B).
‘‘PART C—CHARACTER EDUCATION
‘‘SEC. 5301. CHARACTER EDUCATION PROGRAM.
‘‘(a) PROGRAM AUTHORIZED.—
‘‘(1) IN GENERAL.—After consultation with ex-
perts in the field of character education, the Sec-
retary may make grants to, or enter into contracts
729
with, State educational agencies, local educational
agencies, public or private agencies or organizations
(including religious organizations), or consortia of
such agencies or organizations for the design and
implementation of character education programs
that—
‘‘(A) can be integrated into State content
standards for the core academic subjects; and
‘‘(B) can be carried out in conjunction
with other educational reform efforts.
‘‘(2) DURATION.—Each grant or contract under
this section shall be made for a period not to exceed
5 years, of which the grant recipient may not use
more than 1 year for planning and program design.
‘‘(b) CONTRACTS UNDER PROGRAM.—
‘‘(1) EVALUATION.—Each recipient of assist-
ance under this section may contract with outside
sources, including institutions of higher education
and private and nonprofit organizations (including
religious organizations), for the purposes of—
‘‘(A) evaluating the program for which the
assistance is made available;
‘‘(B) measuring the integration of such
program into the curriculum and teaching
730
methods of schools where the program is car-
ried out; and
‘‘(C) measuring the success of such pro-
gram in fostering the elements of character se-
lected by the recipient under subsection (c)(1).
‘‘(2) MATERIALS
AND
PROGRAM
DEVELOP-
MENT.—Each recipient of assistance under this sec-
tion may contract with outside sources, including in-
stitutions of higher education and private and non-
profit organizations (including religious organiza-
tions), for assistance in—
‘‘(A) developing curricula, materials, teach-
er training, and other activities related to char-
acter education; and
‘‘(B) integrating character education into
the curriculum and teaching methods of schools
where the program is carried out.
‘‘(c) ELEMENTS OF CHARACTER.—
‘‘(1) SELECTION.—
‘‘(A) IN GENERAL.—Each agency, organi-
zation, or consortium receiving assistance under
this section may select the elements of char-
acter that will be taught under the program for
which the assistance is made available.
731
‘‘(B) CONSIDERATION OF VIEWS.—In se-
lecting elements of character under paragraph
(1), the agency, organization, or consortium
shall consider the views of the parents or
guardians of the students to be taught under
the program.
‘‘(2) EXAMPLE ELEMENTS.—Elements of char-
acter that may be selected under this subsection in-
clude each of the following:
‘‘(A) Trustworthiness.
‘‘(B) Respect.
‘‘(C) Responsibility.
‘‘(D) Fairness.
‘‘(E) Caring.
‘‘(F) Citizenship.
‘‘(d) APPLICATION.—
‘‘(1) IN GENERAL.—Each agency, organization,
or consortium seeking assistance under this section
shall submit an application to the Secretary at such
time and in such manner as the Secretary may re-
quire.
‘‘(2) REQUIRED INFORMATION.—Each applica-
tion for assistance under this section shall include
information that—
732
‘‘(A) demonstrates that the program to be
assisted has clear goals and objectives that are
based on scientifically based research;
‘‘(B) describes the activities that will be
carried out with the assistance and how such
activities will meet the goals and objectives de-
scribed in paragraph (1); and
‘‘(C) describes how the program to be as-
sisted will be linked to other efforts to improve
educational achievement, including—
‘‘(i) broader educational reforms that
are being instituted by the applicant or its
partners; and
‘‘(ii) applicable State content stand-
ards for student achievement.
‘‘(e) SELECTION OF RECIPIENTS.—
‘‘(1) PEER REVIEW.—
‘‘(A) IN GENERAL.—In selecting agencies,
organizations, or consortia to receive assistance
under this section from among the applicants
for such assistance, the Secretary shall use a
peer review process.
‘‘(B) USE OF FUNDS.—The Secretary may
use funds appropriated under this section for
733
the cost of carrying out peer reviews under this
paragraph.
‘‘(2) SELECTION
CRITERIA.—Each selection
under paragraph (1) shall be made on the basis of
the quality of the application submitted, taking into
consideration such factors as—
‘‘(A) the extent of parental, student, and
community involvement in the program; and
‘‘(B) the likelihood that the goals of the
program will be realistically achieved.
‘‘(3) DIVERSITY OF PROGRAMS.—In making se-
lections under this subsection, the Secretary shall
ensure, to the extent practicable under paragraph
(2), that the programs assisted under this section—
‘‘(A) are equitably distributed among the
geographic regions of the United States, and
among urban, suburban, and rural areas; and
‘‘(B) serve schools with a high percentage
of students from economically disadvantaged
families and students from racial and ethnic
minority groups.
‘‘(f) EVALUATIONS.—
‘‘(1) IN
GENERAL.—The Secretary may not
make assistance available to an agency, organiza-
tion, or consortium under this section unless the
734
agency, organization, or consortium agrees to trans-
mit to the Secretary, not later than 5 years after re-
ceipt of the assistance, a report containing an eval-
uation of each program assisted.
‘‘(2) ATTAINMENT
OF
GOALS
AND
OBJEC-
TIVES.—In conducting an evaluation referred to in
paragraph (1), the agency, organization, or consor-
tium receiving the assistance under this section shall
evaluate the degree to which the program for which
the assistance was made available attained the goals
and objectives set for the program in the application
for assistance submitted under subsection (d).
‘‘(3) DISSEMINATION.—
‘‘(A) IN
GENERAL.—The Secretary shall
disseminate each evaluation received under this
subsection by making it publicly available upon
request.
‘‘(B) PUBLIC
NOTICE.—When the Sec-
retary receives an evaluation under this sub-
section, the Secretary shall provide public notice
that it is available.
‘‘(g) MATCHING FUNDS.—As a condition of receipt
of assistance under this section, the Secretary may require
that each recipient provide matching funds from non-Fed-
eral sources.
735
‘‘SEC. 5302. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this part $25,000,000 for fiscal year 2002 and such sums
as may be necessary for each of fiscal years 2003 through
2006.’’.
TITLE VI—IMPACT AID
PROGRAM
SEC. 601. PAYMENTS UNDER SECTION 8002 WITH RESPECT
TO FISCAL YEARS IN WHICH INSUFFICIENT
FUNDS ARE APPROPRIATED.
(a) FOUNDATION PAYMENTS FOR PRE-1995 RECIPI-
ENTS.—Section 8002(h)(1) (20 U.S.C. 7702(h)(1)) is
amended—
(1) in subparagraph (A), by striking ‘‘and was
eligible to receive a payment under section 2 of the
Act of September 30, 1950’’ and inserting ‘‘and that
filed, or has been determined pursuant to statute to
have filed a timely application, and met, or has been
determined pursuant to statute to meet, the eligi-
bility requirements of section 2(a)(1)(C) of the Act
of September 30, 1950’’; and
(2) in subparagraph (B), by striking ‘‘(or if the
local educational agency was not eligible to receive a
payment under such section 2 for fiscal year 1994’’
and inserting ‘‘(or if the local educational agency did
not meet, or has not been determined pursuant to
736
statute to meet, the eligibility requirements of sec-
tion 2(a)(1)(C) of the Act of September 30, 1950
for fiscal year 1994’’.
(b) PAYMENTS
FOR
1995 RECIPIENTS.—Section
8002(h)(2) (20 U.S.C. 7702(h)(2)) is amended—
(1) in subparagraph (A), by adding at the end
before the period ‘‘, or whose application for fiscal
year 1995 was determined pursuant to statute to be
timely filed for purposes of payments for subsequent
fiscal years’’; and
(2) in subparagraph (B)(ii), by striking ‘‘for
each local educational agency that received a pay-
ment under this section for fiscal year 1995’’ and in-
serting ‘‘for each local educational agency described
in subparagraph (A)’’.
(c) REMAINING FUNDS.—Section 8002(h)(4)(B) (20
U.S.C. 7702(h)(4)(B)) is amended—
(1) by striking ‘‘(in the same manner as per-
centage shares are determined for local educational
agencies under paragraph (2)(B)(ii))’’ and inserting
‘‘(by dividing the maximum amount that the agency
is eligible to receive under subsection (b) by the total
of the maximum amounts for all such agencies)’’;
and
737
(2) by striking ‘‘, except that for the purpose of
calculating a local educational agency’s assessed
value of the Federal property’’ and inserting ‘‘, ex-
cept that, for purposes of calculating a local edu-
cational agency’s maximum amount under sub-
section (b)’’.
(d) APPLICATION FOR PAYMENT.—Notwithstanding
any other provision of law, the Secretary shall treat as
timely filed an application under section 8002 (20 U.S.C.
7702) from Academy School District 20, Colorado, for a
payment for fiscal year 1999, and shall process that appli-
cation from funds appropriated for that section for fiscal
year 2001.
SEC. 602. CALCULATION OF PAYMENT UNDER SECTION 8003
FOR SMALL LOCAL EDUCATIONAL AGENCIES.
Section 
8003(b)(3)(B)(iv) 
(20 
U.S.C.
7703(b)(3)(B)(iv)) is amended by inserting after ‘‘of the
State in which the agency is located’’ the following: ‘‘or
less than the average per pupil expenditure of all the
States’’.
SEC. 603. CONSTRUCTION.
(a) SCHOOL FACILITY MODERNIZATION GRANTS.—
(1) 
ELIGIBILITY
REQUIREMENTS.—Section
8007(b)(2) (20 U.S.C. 7707(b)(2)) is amended—
738
(A) in subparagraph (A), by striking ‘‘has
no capacity to issue bonds or is at such agen-
cy’s limit in bonded indebtedness’’ and inserting
‘‘has no practical capacity to issue bonds, or
has minimal capacity to issue bonds and is at
such agency’s limit in bonded indebtedness’’;
and
(B) by adding at the end the following:
‘‘For purposes of subparagraph (A), a local
educational agency has no practical capacity to issue
bonds if the total assessed valuation of property
available to the agency for taxation purposes is less
than $25,000,000 and has minimal capacity to issue
bonds if the total assessed valuation of property
available to the agency for taxation purposes is not
less 
than 
$25,000,000 
but 
not 
more 
than
$50,000,000.’’.
(2) CONFORMING AMENDMENTS.—(A) Section
8007(b)(2) (20 U.S.C. 7707(b)(2)), as amended by
paragraph (1)), is further amended—
(i) in the matter preceding subparagraph
(A), by striking ‘‘A local educational agency’’
and inserting ‘‘(A) A local educational agency’’;
(ii) by redesignating the second subpara-
graph (A) as clause (i);
739
(iii) by redesignating subparagraph (B) as
clause (ii) (and redesignating clauses (i) and
(ii) contained therein as subclauses (I) and (II),
respectively);
(iv) by striking ‘‘For purposes’’ and insert-
ing ‘‘(B) For purposes’’; and
(v) in subparagraph (B) (as redesignated
by clause (iv))—
(I) by striking ‘‘For purposes of sub-
paragraph (A)’’ and inserting ‘‘For pur-
poses of subparagraph (A)(i)’’;
(II) by striking ‘‘has no practical ca-
pacity’’ and inserting ‘‘(i) has no practical
capacity’’; and
(III) by striking ‘‘has minimal capac-
ity’’ and inserting ‘‘(ii) has minimal capac-
ity’’.
(B) Section 8007(b)(4)(C) of such Act (20
U.S.C. 7707(b)(4)(C)) is amended by striking ‘‘has
the authority’’ and inserting ‘‘has minimal capac-
ity’’.
(C) Section 8007(b)(6) of such Act (20 U.S.C.
7707(b)(6)) is amended in subparagraphs (A), (B),
(C)(i), and (D) by striking ‘‘paragraph (2)(B)(ii)’’
740
each place it appears and inserting ‘‘paragraph
(2)(A)(ii)(II)’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section
8014(e) (20 U.S.C. 7714(e)) is amended by striking ‘‘for
each of the three succeeding fiscal years’’ and inserting
‘‘for fiscal year 2001, $62,000,000 for fiscal year 2002,
and such sums as may be necessary for each of the four
succeeding fiscal years’’.
SEC. 604. STATE CONSIDERATION OF PAYMENTS IN PRO-
VIDING STATE AID.
Section 8009(b)(1) (20 U.S.C. 7709(b)(1)) is amend-
ed by inserting after ‘‘section 8003(a)(2)(B)’’ the fol-
lowing: ‘‘and, with respect to a local educational agency
that receives a payment under section 8003(b)(2), the
amount in excess of the amount that the agency would
receive if the agency were deemed to be an agency eligible
to receive a payment under section 8003(b)(1) and not
section 8003(b)(2)’’.
SEC. 605. AUTHORIZATION OF APPROPRIATIONS.
Section 8014 (20 U.S.C. 7714) is amended by strik-
ing ‘‘three succeeding fiscal years’’ each place it appears
and inserting ‘‘six succeeding fiscal years’’.
SEC. 606. REDESIGNATION OF PROGRAM.
(a) REDESIGNATION.—(1) Title VIII (20 U.S.C.
7701 et seq.) is redesignated as title VI.
742
TITLE VII—ACCOUNTABILITY
SEC. 701. FLEXIBILITY AND ACCOUNTABILITY.
Title VII is amended to read as follows:
‘‘TITLE VII—FLEXIBILITY AND
ACCOUNTABILITY
‘‘PART A—STATE ACCOUNTABILITY FOR
IMPROVING ACADEMIC ACHIEVEMENT
‘‘SEC. 7101. STATE FINANCIAL AWARDS.
‘‘(a) IN GENERAL.—Beginning in the 2002–2003
school year, the Secretary shall make in accordance with
this section financial awards, to be known as ‘Achievement
in Education Awards’, to States that have made signifi-
cant progress in improving educational achievement.
‘‘(b) CRITERIA OF PROGRESS.—For the purposes of
subsection (a), the Secretary shall judge progress using
each of the following criteria, giving the greatest weight
to the criterion described in paragraph (1):
‘‘(1) The progress of the State’s students from
economically disadvantaged families and students
from racial and ethnic minority groups—
‘‘(A) on the assessments administered by
the State under section 1111; and
‘‘(B) beginning in the 2003–2004 school
year, on assessments of 4th and 8th grade
reading and mathematics under—
743
‘‘(i) the State assessments carried out
as part of the National Assessment of
Educational Progress under section 411 of
the National Education Statistics Act of
1994 (20 U.S.C. 9010); or
‘‘(ii) an assessment selected by the
State that—
‘‘(I) is administered annually;
‘‘(II) yields high quality data
that are valid and reliable;
‘‘(III) meets widely recognized
professional and technical standards;
‘‘(IV) is developed by an entity
independent from each State and local
government agency in the State;
‘‘(V) is not identical to the as-
sessment used to meet the State as-
sessment requirements under section
1111;
‘‘(VI) provides results in such a
form that they may be expressed in
terms of achievement levels that are
consistent with the achievement levels
(basic, proficient, and advanced) set
forth in section 1111;
744
‘‘(VII) provides results in such a
form that they may be disaggregated,
at a minimum, according to income
level and major racial and ethnic
group; and
‘‘(VIII) is administered to all stu-
dents or to a representative sample of
students in the 4th and 8th grades
statewide, with a sample size that is
sufficiently large to produce statis-
tically significant estimates of state-
wide student achievement.
‘‘(2) The overall improvement in the achieve-
ment of all of the State’s students, as measured
by—
‘‘(A) the assessments administered by the
State under section 1111; and
‘‘(B) beginning in the 2003–2004 school
year, the assessments described in paragraph
(1)(B).
‘‘(3) The progress of the State in improving the
English proficiency of students who enter school
with limited English proficiency.
745
‘‘(c) OTHER CONSIDERATIONS.—In judging a State’s
progress under subsection (a), the Secretary may also
consider—
‘‘(1) the progress of the State in increasing the
percentage of students who graduate from secondary
schools; and
‘‘(2) the progress of the State in increasing the
percentage 
of 
students 
who 
take 
advanced
coursework (such as Advanced Placement or Inter-
national Baccalaureate courses) and who pass the
exams associated with such coursework.
‘‘(d) AMOUNT.—The Secretary shall determine the
amount of an award under subsection (a) based on—
‘‘(1) the school-age population of the State;
‘‘(2) the degree of progress shown by a State
with respect to the criteria set forth in subsections
(b) and (c); and
‘‘(3) whether the State has entered into a per-
formance agreement with the Secretary under part
B.
‘‘(e) USE OF FUNDS.—
‘‘(1) IN GENERAL.—A State receiving a finan-
cial award under this section shall use the proceeds
of such award only to make financial awards to pub-
lic elementary and secondary schools in the State
746
that have made the most significant progress with
respect to the criteria described in subsection (b).
‘‘(2) USE BY SCHOOLS.—In consultation with
the school’s teachers, the principal of each elemen-
tary or secondary school that receives a financial
award from a State under this section may use the
proceeds of such award for any educational purpose
permitted under State law.
‘‘(3) RESPONSIBLE STATE AGENCY.—The State
educational agency for each State shall be the agen-
cy responsible for making awards under this sub-
section.
‘‘(f) PEER REVIEW.—In selecting States for awards
under subsection (a), the Secretary shall use a peer-review
process.
‘‘(g) COSTS OF INDEPENDENT ASSESSMENTS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
the Secretary shall make grants to States to offset
the costs of administering assessments administered
by the States to meet the requirements of
(b)(1)(B)(ii).
‘‘(2) LIMITATIONS.—Grants made by the Sec-
retary in any year to a State under paragraph (1)—
‘‘(A) may be awarded only to offset the
costs of a single administration of an assess-
747
ment described in such paragraph in the State
for that year; and
‘‘(B) may not exceed the costs of admin-
istering in the State for that year the State as-
sessments that would be carried out under the
National Assessment of Educational Progress
described in subsection (b)(1)(B).
‘‘(3) ALLOCATION.—The Secretary may deter-
mine the appropriate methodology of allocating
grants to States under this subsection.
‘‘SEC. 7102. STATE SANCTIONS.
‘‘(a) FAILURE TO MAKE PROGRESS.—
‘‘(1) LOSS OF ADMINISTRATIVE FUNDS.—The
Secretary shall reduce, by 30 percent, the amount of
funding that a State may reserve for State adminis-
tration under the State formula grant programs au-
thorized by this Act if the Secretary determines that,
for 2 consecutive years—
‘‘(A) the State’s students from economi-
cally disadvantaged families and students from
racial and ethnic minority groups failed to
make adequate yearly progress on the assess-
ments administered by the State under section
1111; and
748
‘‘(B) the State’s students from economi-
cally disadvantaged families and students from
racial and ethnic minority groups failed to
make measurable progress in reading and
mathematics, as measured by the 4th and 8th
grade assessments described in subsection
(b)(1)(B).
‘‘(2) FURTHER REDUCTIONS.—In each of the first 2
years after the years described in paragraph (1), the Sec-
retary may increase the reduction described in such para-
graph by any amount up to a total of an additional 45
percent.
‘‘(b) OTHER FAILURES.—In addition to any action
taken under subsection (a)(1) or (a)(2), the Secretary
shall reduce, by 10 percent, the amount of funding that
a State may reserve for State administration under the
State formula grant programs authorized by this Act if
the Secretary determines that, for 2 consecutive years, the
State failed to make adequate yearly progress—
‘‘(1) with respect to the achievement of children
with limited English proficiency under section
1111(b)(2)(C)(iii)(II)(dd); or
‘‘(2) with respect to the acquisition of English
language proficiency by children with limited
749
English 
proficiency 
under 
section
1111(b)(2)(C)(iii)(III).
‘‘(c) USE OF FUNDS FOR IMPROVEMENT.—
‘‘(1) IN GENERAL.—The Secretary shall require
that any funds reduced under this section be allo-
cated by the State to local educational agencies in
the State for school improvement purposes described
in section 1116.
‘‘(2) TREATMENT OF FUNDS.—Funds described
in paragraph (1) shall not count toward the amounts
that are required to be reserved by a State for
school improvement under section 1003.
‘‘SEC. 7103. DEVELOPMENT OF STATE STANDARDS AND AS-
SESSMENTS.
‘‘(a) IN GENERAL.—The Secretary shall make finan-
cial awards to States to enable the States—
‘‘(1) to pay the costs of the development of the
additional State assessments and standards required
by section 1111(b); and
‘‘(2) if a State has developed the assessments
and standards referred to in paragraph (1), to ad-
minister such assessments or to carry out other ac-
tivities described in this title and other activities re-
lated to ensuring accountability for results in the
State’s schools and local educational agencies, such
750
as developing content and achievement standards
and aligned assessments in other subjects not re-
quired by section 1111.
‘‘(b) BONUSES.—The Secretary shall make a one-
time bonus payment to each State that completes the de-
velopment of the assessments described in subsection (a)
ahead of the deadline set forth in section 1111.
‘‘SEC. 7104. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) AWARDS AND BONUS PAYMENTS.—For the pur-
poses of making awards under section 7101 and bonus
payments under section 7103(b), there are authorized to
be appropriated $40,000,000 for fiscal year 2002 and
such sums as may be necessary for each of fiscal years
2003 through 2006.
‘‘(b) GRANTS FOR INDEPENDENT ASSESSMENTS; AD-
MINISTRATION
OF
STATE
ASSESSMENTS
UNDER
NAEP.—For the purposes of making grants to offset the
costs of independent assessments under section 7101(g)
and for the purposes of administering the State assess-
ments carried out under the National Assessment of Edu-
cational Progress referred to in section 7101(b)(1)(B)(i),
there are authorized to be appropriated to the Secretary
$69,000,000 for fiscal year 2002 and such sums as may
be necessary for each of fiscal years 2003 through 2006.
751
‘‘(c) DEVELOPMENT
AND
ADMINISTRATION
OF
STATE STANDARDS AND ASSESSMENTS.—For the pur-
poses of carrying out subsection 7103(a), there are au-
thorized to be appropriated $320,000,000 for fiscal year
2002 and such sums as may be necessary for each of the
fiscal years 2003 through 2005.
‘‘PART B—PERFORMANCE AGREEMENTS
‘‘SEC. 7201. SHORT TITLE.
This part may be cited as the ‘‘Academic Achieve-
ment for All Act’’ or ‘‘Straight A’s Act’’.
‘‘SEC. 7202. PURPOSE.
‘‘The purpose of this part is to create options for
States and communities—
‘‘(1) to improve the academic achievement of all
students, and to focus the resources of the Federal
Government upon such achievement;
‘‘(2) to improve teacher quality and subject
matter mastery, especially in mathematics, reading,
and science;
‘‘(3) to empower parents and schools to effec-
tively address the needs of their children and stu-
dents;
‘‘(4) to give States and communities maximum
freedom in determining how to boost academic
achievement and implement education reforms;
752
‘‘(5) to eliminate Federal barriers to imple-
menting effective State and local education pro-
grams;
‘‘(6) to hold States and communities account-
able for boosting the academic achievement of all
students, especially disadvantaged children; and
‘‘(7) to narrow achievement gaps between the
lowest and highest performing groups of students so
that no child is left behind.
‘‘SEC. 7203. PERFORMANCE AGREEMENT.
‘‘(a) AUTHORITY.—In accordance with this part, the
Secretary shall enter into performance agreements with
States under which, except as otherwise provided in this
part, States may consolidate and use funds under 7204.
‘‘(b) REQUIRED TERMS OF PERFORMANCE AGREE-
MENT.—Each performance agreement entered into by the
Secretary under this part shall have each of the following
terms:
‘‘(1) TERM.— The performance agreement shall
be for a term of 5 years.
‘‘(2) APPLICATION
OF
PROGRAM
REQUIRE-
MENTS.—The performance agreement shall provide
that no requirements of any program described in
section 7204(b) and included by the State in the
753
scope of the agreement shall apply to the State, ex-
cept as otherwise provided in this part.
‘‘(3) LIST
OF
PROGRAMS.—The performance
agreement shall list which of the programs described
in section 7204(b) are included in the scope of the
performance agreement.
‘‘(4) USE
OF
FUNDS
TO
IMPROVE
STUDENT
ACHIEVEMENT.— The performance agreement shall
contain a 5-year plan describing how the State in-
tends to combine and use the funds from programs
included in the scope of the performance agreement
to advance the education priorities of the State, im-
prove student achievement, and narrow achievement
gaps.
‘‘(5) 
ACCOUNTABILITY
SYSTEM
REQUIRE-
MENTS.—If title I is included in the scope of the
performance agreement the agreement shall include
a certification that the State—
‘‘(A) has developed and implemented the
challenging State content standards, chal-
lenging State student achievement standards,
and aligned assessments described in section
1111(b);
754
‘‘(B) has developed and implemented a sys-
tem to produce annual state report cards in ac-
cordance with section 1111(c)(1);
‘‘(C) agrees to participate in the National
Assessment of Educational Progress (carried
out under section 411 of the National Edu-
cation Statistics Act of 1994 (20 U.S.C. 9010))
or some other assessment in accordance with
section 1111(c)(2); and
‘‘(C) has developed and implemented a
statewide system for turning around low-per-
forming schools and holding its local edu-
cational agencies and schools accountable for
improving student achievement in accordance
with section 1116.
‘‘(6) ACHIEVEMENT GOALS.—
‘‘(A) 
STUDENT
ACADEMIC
ACHIEVE-
MENT.—
‘‘(i) PART A OF TITLE I INCLUDED.—
If part A of title I is included in the scope
of the performance agreement, the agree-
ment shall require that the State establish
annual student achievement goals for the
term of the agreement—
755
‘‘(I) that are designed to meet
the adequate yearly progress require-
ments set forth in subparagraphs (B)
and (C) of section 1111(b)(2); and
‘‘(II) include goals for improving
the achievement of all groups of stu-
dents that are sufficient to ensure
that student achievement gains exceed
that which is required to meet the re-
quirements of the State’s definition of
adequate yearly progress under sec-
tion 1111(b)(2)(B).
‘‘(ii) PART
A
OF
TITLE
I
NOT
IN-
CLUDED.—If part A of title I is not in-
cluded in the scope of a performance
agreement, the agreement shall require the
State to establish academic achievement
goals for such other programs.
‘‘(B) 
CONSISTENCY
OF
ACHIEVEMENT
MEASURES.—The performance agreement shall
require that the State maintain, at a minimum,
the same level of challenging State student
achievement 
standards 
and 
assessments
throughout the term of the performance agree-
ment.
756
‘‘(c) OPTIONAL TERMS.—At the option of the State,
the performance agreement entered into under this part
may require the State to establish and meet goals for any
additional indicators of achievement such as graduation,
dropout, or attendance rates.
‘‘(d) APPROVAL OF PERFORMANCE AGREEMENT.—
‘‘(1) IN
GENERAL.—Not later than 60 days
after the receipt of a proposed performance agree-
ment submitted by a State, the Secretary shall ap-
prove the agreement or provide the State with a
written determination that the performance agree-
ment fails to satisfy the requirements of this part.
‘‘(2) TREATMENT
AS
APPROVED.—Each per-
formance agreement for which the Secretary fails to
take the action required in paragraph (1) in the
time period described in such paragraph shall be
considered to be approved.
‘‘(3) REQUIREMENT
TO
EXECUTE
APPROVED
AGREEMENTS.—In accordance with this part, the
Secretary shall enter into each approved perform-
ance agreement approved under this subsection.
‘‘(e) LIMITATIONS.—The Secretary may not enter
into a performance agreement with a State under this sec-
tion unless each of the following conditions has been met:
757
‘‘(1) LOCAL INPUT.—The State has provided
parents, teachers, schools, and school districts in the
State with notice and an opportunity to comment on
the proposed terms of the performance agreement in
accordance with State law.
‘‘(2) FISCAL
RESPONSIBILITIES.—The State
agrees to use fiscal control and fund accounting pro-
cedures that will ensure proper disbursement of, and
accounting for, Federal funds consolidated and used
under the performance agreement.
‘‘(3) CIVIL RIGHTS.—The performance agree-
ment contains an assurance that the State will meet
the requirements of applicable Federal civil rights
laws in carrying out the agreement and in consoli-
dating and using the funds under the agreement.
‘‘(4) PRIVATE
SCHOOL
PARTICIPATION.—The
State agrees that in consolidating and using funds
under the performance agreement—
‘‘(A) the State will provide for the equi-
table participation of students and professional
staff in private schools; and
‘‘(B) that sections 8504, 8505, and 8506
shall apply to all services and assistance pro-
vided with such funds in the same manner as
758
such sections apply to services and assistance
provided in accordance with section 8503.
‘‘(5) STATE
FINANCIAL
PARTICIPATION.—The
State agrees that it will not reduce the level of
spending of State funds for elementary and sec-
ondary education during the term of the perform-
ance agreement.
‘‘(6) ANNUAL REPORTS.—The State agrees that
not later than 1 year after the date on which the
Secretary and the State entered into the perform-
ance agreement, and annually thereafter during the
term of the agreement, the State shall disseminate
widely to parents and the general public, transmit to
the Secretary, distribute to print and broadcast
media, and post on the Internet, a report that
includes—
‘‘(A) student achievement data as de-
scribed in section 1111(b)(2); and
‘‘(B) a detailed description of how the
State used the funds consolidated under the
agreement 
to 
improve 
student 
academic
achievement and reduce achievement gaps.
‘‘(f) AMENDMENT TO PERFORMANCE AGREEMENT.—
‘‘(1) IN GENERAL.—In each of the following
circumstances, the Secretary shall agree to amend a
759
performance agreement entered into with a State
under this part:
‘‘(A) REDUCTION IN SCOPE OF PERFORM-
ANCE
AGREEMENT.—Not later than 1 year
after entering into the performance agreement,
a State seeks to amend the agreement to re-
move from the scope any program described in
section 7204(b).
‘‘(B) EXPANSION OF SCOPE OF PERFORM-
ANCE
AGREEMENT.—Not later than 1 year
after entering into the performance agreement,
a State seeks to amend the agreement to in-
clude in its scope any additional program de-
scribed in section 7204(b) or any additional
achievement indicators for which the State will
be held accountable.
‘‘(2) APPROVAL OF AMENDMENT.—
‘‘(1) IN
GENERAL.—Not later than 60
days after the receipt of a proposed perform-
ance agreement amendment submitted by a
State, the Secretary shall approve the amend-
ment or provide the State with a written deter-
mination that the amendment fails to satisfy
the requirements of this part.
760
‘‘(B) TREATMENT
AS
APPROVED.—Each
amendment for which the Secretary fails to
take the action required in subparagraph (A) in
the time period described in such subparagraph
shall be considered to be approved.
‘‘(3) TREATMENT OF PROGRAM FUNDS WITH-
DRAWN FROM AGREEMENT.—Beginning on the effec-
tive date of an amendment executed under para-
graph (1)(A), each program requirement of each
program removed from the scope of a performance
agreement shall apply to the State’s use of funds
made available under the program.
‘‘SEC. 7204. CONSOLIDATION AND USE OF FUNDS.
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY.—Under a performance agree-
ment entered into under this part, a State may con-
solidate, subject to subsection (c), Federal funds
made available to the State under the provisions list-
ed in subsection (b) and use such funds for any ele-
mentary and secondary educational purpose per-
mitted under the law of the State.
‘‘(2) PROGRAM
REQUIREMENTS.—Except as
otherwise provided in this part, a State may use
funds under paragraph (1) notwithstanding the pro-
761
gram requirements of the program under which the
funds were made available to the State.
‘‘(b) ELIGIBLE PROGRAMS.—Funds made available
under programs under each of the following provisions of
this Act may be consolidated and used under subsection
(a):
‘‘(1) Parts A, B, C, or D of title I.
‘‘(2) Title II.
‘‘(3) Part A of title III.
‘‘(4) Part A of title IV.
‘‘(5) Parts A or B of title V.
‘‘SEC. 7205. WITHIN-STATE DISTRIBUTION OF FUNDS.
‘‘(a) AUTHORITY.—
‘‘(1) IN GENERAL.—The distribution of funds
consolidated under a performance agreement entered
into under this part by a State to local educational
agencies in the State shall be determined by the
Governor of the State and the State legislature.
‘‘(2) DISTRIBUTION BY ALTERNATIVE AUTHOR-
ITY.—In each State in which the State constitution
or State law designates an individual, entity, or
agency other than the Governor or State Legislature
as the party responsible for public elementary and
secondary education policy, the distribution of funds
under subsection (a) shall be determined by such in-
762
dividual, entity, or agency, in consultation with the
Governor and State Legislature.
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in
this subsection shall be construed to supersede or
modify any provision of a State constitution or State
law.
‘‘(b) LOCAL INPUT.—In accordance with State law,
each State shall provide parents, teachers, and local
schools and school districts notice and opportunity to com-
ment on the proposed distribution of funds under this sec-
tion.
‘‘(c) AMOUNT OF PART A TITLE I FUNDS.—
‘‘(1) IN
GENERAL.—The Secretary may not
enter into a performance agreement with a State
under this part if the agreement includes in its scope
part A of title I and the agreement does not provide
an assurance that each local educational agency will
receive under the performance agreement, subject to
Federal appropriations, an amount equal to or
greater than the amount such agency received under
part A of title I in the fiscal year preceding the fis-
cal year in which the performance agreement is en-
tered into.
‘‘(2) 
PROPORTIONATE
REDUCTION.—If 
the
amount made available to the State from the Sec-
763
retary for a fiscal year is insufficient to pay to each
local educational agency the amount made available
under part A of title I to such agency for the pre-
ceding fiscal year, the State shall reduce the amount
each local educational agency receives by a uniform
percentage.
‘‘SEC. 7206. LOCAL PARTICIPATION.
‘‘(a) IN GENERAL.—If a State chooses not to enter
into a performance agreement with the Secretary under
this part, any local educational agency in such State may
enter in accordance with this section into a performance
agreement with the Secretary in accordance with this sec-
tion.
‘‘(b) TERMS OF AGREEMENT.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this section, each requirement and limita-
tion under this part that is applicable to a State
with respect to a performance agreement under this
part shall be applicable to a local educational agency
with respect to a performance agreement under this
section, as appropriate.
‘‘(2) EXCEPTIONS.—Each of the following pro-
visions shall not apply to a local educational agency
with respect to a performance agreement under this
section:
764
‘‘(A) The provisions relating to distribution
of funds under section 7205.
‘‘(B) The provisions limiting State use of
funds for administrative purposes under sub-
sections (a) and (b) of section 7207.
‘‘(b) NO STATE OBJECTION.—The Secretary may not
enter into a performance agreement with a local edu-
cational agency under this section unless the agency pro-
vides the Secretary with written documentation that the
State in which such agency is located has no objection to
the agency’s proposed performance agreement.
‘‘SEC. 7207. LIMITATIONS ON ADMINISTRATIVE EXPENDI-
TURES.
‘‘(a) STATES CONSOLIDATING FUNDS UNDER PART
A OF TITLE I.—Each State that includes part A of title
I in the scope of a performance agreement entered into
under this part may use for administrative purposes not
more than 1 percent of the total amount of funds allocated
to the State under the programs included in the scope of
the performance agreement.
‘‘(b) STATES NOT CONSOLIDATING FUNDS UNDER
PART A OF TITLE I.—Each State that does not include
part A of title I in the scope of a performance agreement
entered into under this part may use for administrative
purposes not more than 3 percent of the total amount of
765
funds allocated to the State under the programs included
in the scope of the performance agreement.
‘‘(c) LOCAL EDUCATIONAL AGENCY.—A local edu-
cational agency that has entered into a performance agree-
ment with the Secretary under section 7206 may use for
administrative purposes not more than 4 percent of the
total amount of funds allocated to the agency under the
programs included in the scope of the performance agree-
ment.
‘‘SEC. 7208. PERFORMANCE REVIEW AND PENALTIES.
‘‘(a) MIDTERM REVIEW.—The Secretary may not
enter into a performance agreement under this part unless
the agreement includes a provision permitting the Sec-
retary, after notice and an opportunity for a hearing, to
terminate the agreement if, during the term of the agree-
ment, student achievement declines for 3 consecutive years
in the academic achievement categories established under
the agreement.
‘‘(b) FINAL REVIEW.—If, at the end of the 5-year
term of a performance agreement entered into under this
part, a State has not substantially met the achievement
goals submitted in the performance agreement, the Sec-
retary may not renew the agreement under section 7209
and beginning on the date on which such term ends the
State shall be required to comply with each of the program
766
requirements in effect on such date for each program in-
cluded in the performance agreement.
‘‘(c) SANCTIONS.—The Secretary may not enter into
a performance agreement under this part unless the agree-
ment provides that if the State fails to meet the terms
of its annual academic achievement goals under the agree-
ment it shall be subject to the sanctions set forth in sec-
tion 7102, and that under each of paragraphs (1) and (2)
of that section the Secretary may reduce the funds that
a State may reserve for State administrative costs for each
program included in the performance agreement by an ad-
ditional 10 percent.
‘‘SEC. 7209. RENEWAL OF PERFORMANCE AGREEMENT.
‘‘(a) IN GENERAL.—Except as provided in section
7208(b) and in accordance with this section, the Secretary
shall renew for 1 additional 5-year term a performance
agreement entered into under this part if the State that
is party to the agreement has met or has substantially
met, by the end of the original term of the agreement,
the achievement goals contained in the agreement.
‘‘(b) NOTIFICATION.—The Secretary may not renew
a performance agreement under this part unless, not less
than 6 months before the end of the original term of the
agreement, the State seeking the renewal notifies the Sec-
retary of its intention to renew.
767
‘‘(c) EFFECTIVE DATE.—A renewal under this sec-
tion shall be effective at the end of the original term of
the agreement or on the date on which the State provides
to the Secretary all data required under the agreement,
whichever is later.
‘‘SEC. 7210. STRAIGHT A’S ACHIEVEMENT REPORT.
‘‘Not later than 60 days after the Secretary receives
an annual State report described in section 7203(e)(6),
the Secretary shall make the report available to the Com-
mittee on Education and the Workforce of the House of
Representatives and the Committee on Health, Education,
Labor and Pensions of the Senate.
‘‘SEC. 7211. APPLICABILITY OF TITLE VIII.
‘‘To the extent that provisions of title VIII are incon-
sistent with this part, this part shall be construed as su-
perseding such provisions.
‘‘SEC. 7212. APPLICABILITY OF GENERAL EDUCATION PRO-
VISIONS ACT.
‘‘To the extent that the provisions of the General
Education Provisions Act (20 U.S.C. 1221 et seq.) are in-
consistent with this part, this part shall be construed as
superseding such provisions, except where relating to civil
rights, withholding of funds and enforcement authority,
and family educational and privacy rights.
768
‘‘SEC. 7213. ALL STUDENTS DEFINED.
‘‘In this part, the term ‘all students’ means all stu-
dents attending public schools or charter schools that are
participating in the State’s accountability and assessment
system.
‘‘PART C—TRANSFERABILITY OF FUNDS
‘‘SEC. 7301. SHORT TITLE.
‘‘This part may be cited as the ‘State and Local
Transferability Act’.
‘‘SEC. 7302. PURPOSE.
‘‘The purpose of this part is to allow States and local
educational agencies the flexibility—
‘‘(1) to target Federal funds to Federal pro-
grams that most effectively address the unique needs
of States and localities; and
‘‘(2) to transfer Federal funds allocated to
other activities to allocations for activities authorized
under title I programs.
‘‘SEC. 7303. TRANSFERABILITY OF FUNDS.
‘‘(a) TRANSFERS BY STATES.—
‘‘(1) IN
GENERAL.—In accordance with this
part, a State may transfer up to 100 percent of the
nonadministrative State funds allocated to the State
for use for State-level activities under each of the
following provisions to 1 or more of the State’s allo-
cations under any other of such provisions:
769
‘‘(A) Title II.
‘‘(B) Part A of title III.
‘‘(C) Part A of title IV.
‘‘(D) Part A or B of title V.
‘‘(2) SUPPLEMENTAL FUNDS FOR TITLE I.—In
accordance with this part, a State may transfer any
funds allocated to the State under a provision listed
in paragraph (1) to its allocation under title I.
‘‘(b) TRANSFERS BY LOCAL EDUCATIONAL AGEN-
CIES.—
‘‘(1) AUTHORITY TO TRANSFER FUNDS.—
‘‘(A) IN
GENERAL.—In accordance with
this part, a local educational agency may trans-
fer funds allocated to it under each of the pro-
visions listed in paragraph (2) to 1 or more of
its allocations under any other such provision.
‘‘(B) SUPPLEMENTAL FUNDS FOR TITLE
I.—In accordance with this part, a local edu-
cational agency may transfer funds allocated to
such agency under a provision listed in para-
graph (2) to its allocation under title I.
‘‘(C) STATE APPROVAL.—
‘‘(i) IN GENERAL.—In any fiscal year,
a local educational agency may not trans-
fer under this paragraph any amount of
770
funds for use under a provision listed in
paragraph (2) if the total of all funds
transferred for such use exceeds 35 per-
cent of the funds allocated to the agency
under that provision for the fiscal year, un-
less the State in which the local edu-
cational agency is located has approved
each such transfer.
‘‘(ii) REQUESTS TO BE IN WRITING.—
Each request by a local educational agency
for State approval under this subpara-
graph shall be made in writing to the
State.
‘‘(iii) DECISION
WITHIN
DAYS.—
Each request by a local educational agency
for State approval under this subpara-
graph shall be deemed approved by the
State, unless not later than 60 days after
receipt of the request the State disapproves
the request or notifies the agency in writ-
ing of steps that the agency needs to take
before the State will approve the transfer.
‘‘(vi) APPROVAL
CRITERIA.—In re-
viewing a request by a local educational
agency for State approval under this sub-
771
paragraph, a State shall consider the de-
gree to which the transfer that is the sub-
ject of the request—
‘‘(I) enables the local educational
agency to direct resources to a Fed-
eral program that more effectively ad-
dresses the needs of the agency’s stu-
dents, particularly the most disadvan-
taged students; and
‘‘(II) allows the local educational
agency to target or focus resources to
address specific areas of need or areas
of priority and without the transfer
such targeting or focusing is pre-
vented, or significantly impeded, by
the Federal program requirements.
‘‘(2) APPLICABLE
PROVISIONS.—A local edu-
cational agency may transfer funds under this sub-
section from allocations made under each of the fol-
lowing provisions:
‘‘(A) Title II.
‘‘(B) Part A of title IV.
‘‘(C) Part A or B of title V.
‘‘(c) NO TRANSFER OF TITLE I FUNDS.—A State or
a local educational agency may not transfer under this
772
part to any other program any funds allocated to it under
title I.
‘‘(d) MODIFICATION OF PLANS AND APPLICATIONS;
NOTIFICATION.—
‘‘(1) STATE
TRANSFERS.—Each State that
makes a transfer of funds under this section shall—
‘‘(A) modify to account for such transfer
each State plan, or application submitted by the
State, to which such funds relate;
‘‘(B) not later than 30 days after the date
of such transfer, submit a copy of such modi-
fied plan or application to the Secretary; and
‘‘(C) not later than 30 days before the ef-
fective date of such transfer, notify the Sec-
retary of such transfer.
‘‘(2) LOCAL
TRANSFERS.—Each local edu-
cational agency that makes a transfer under this
section shall—
‘‘(A) modify to account for such transfer
each local plan, or application submitted by the
agency, to which such funds relate;
‘‘(B) not later than 30 days after the date
of such transfer, submit a copy of such modi-
fied plan or application to the State; and
773
‘‘(C) not later than 30 days before the ef-
fective date of such transfer, notify the State of
such transfer.
‘‘(f) APPLICABLE RULES.—Except as otherwise pro-
vided in this part, funds transferred under this section are
subject to each of the rules and requirements applicable
to the funds allocated by the Secretary under the provision
to which the transferred funds are transferred.’’.
TITLE VIII—GENERAL
PROVISIONS
SEC. 801. GENERAL PROVISIONS.
The Elementary and Secondary Education Act, as
amended by this Act, is further amended by adding at the
end of title VII the following:
‘‘TITLE VIII—GENERAL
PROVISIONS
‘‘PART A—DEFINITIONS
‘‘SEC. 8101. DEFINITIONS.
‘‘Except as otherwise provided, for the purposes of
this Act, the following terms have the following meanings:
‘‘(1) Average daily attendance—
‘‘(A) Except as provided otherwise by
State law or this paragraph, the term ‘average
daily attendance’ means—
774
‘‘(i) the aggregate number of days of
attendance of all students during a school
year; divided by
‘‘(ii) the number of days school is in
session during such school year.
‘‘(B) The Secretary shall permit the con-
version of average daily membership (or other
similar data) to average daily attendance for
local educational agencies in States that provide
State aid to local educational agencies on the
basis of average daily membership or such other
data.
‘‘(C) If the local educational agency in
which a child resides makes a tuition or other
payment for the free public education of the
child in a school located in another school dis-
trict, the Secretary shall, for purposes of this
Act—
‘‘(i) consider the child to be in attend-
ance at a school of the agency making such
payment; and
‘‘(ii) not consider the child to be in at-
tendance at a school of the agency receiv-
ing such payment.
775
‘‘(D) If a local educational agency makes a
tuition payment to a private school or to a pub-
lic school of another local educational agency
for a child with disabilities, as defined in sec-
tion paragraph (5), the Secretary shall, for the
purposes of this Act, consider such child to be
in attendance at a school of the agency making
such payment.
‘‘(2) AVERAGE PER-PUPIL EXPENDITURE.—The
term ‘average per-pupil expenditure’ means, in the
case of a State or of the United States—
‘‘(A) without regard to the source of
funds—
‘‘(i) the aggregate current expendi-
tures, during the third fiscal year pre-
ceding the fiscal year for which the deter-
mination is made (or, if satisfactory data
for that year are not available, during the
most recent preceding fiscal year for which
satisfactory data are available) of all local
educational agencies in the State or, in the
case of the United States for all States
(which, for the purpose of this paragraph,
means the 50 States and the District of
Columbia); plus
776
‘‘(ii) any direct current expenditures
by the State for the operation of such
agencies; divided by
‘‘(B) the aggregate number of children in
average daily attendance to whom such agencies
provided free public education during such pre-
ceding year.
‘‘(3) BEGINNING TEACHER.—The term ‘begin-
ning teacher’ means an educator in a public school
who has been teaching less than a total of 3 com-
plete school years.
‘‘(4) CHILD.—The term ‘child’ means any per-
son within the age limits for which the State pro-
vides free public education.
‘‘(5) CHILD WITH DISABILITY.—The term ‘child
with a disability’ means a child—
‘‘(A) with mental retardation, hearing im-
pairments, 
hearing 
impairments 
(including
deafness), speech or language impairments, vis-
ual impairments (including blindness), serious
emotional disturbance (hereinafter referred to
as ‘emotional disturbance’), orthopedic impair-
ments, autism, traumatic brain injury, other
health impairments, or specific learning disabil-
ities; and
777
‘‘(B) who, by reason thereof, needs special
education and related services.
‘‘(6) COMMUNITY-BASED ORGANIZATION.—The
term ‘community-based organization’ means a public
or private nonprofit organization of demonstrated ef-
fectiveness that—
‘‘(A) is representative of a community or
significant segments of a community; and
‘‘(B) provides educational or related serv-
ices to individuals in the community.
‘‘(7) CONSOLIDATED
LOCAL
APPLICATION.—
The term ‘consolidated local application’ means an
application submitted by a local educational agency
pursuant to section 14305.
‘‘(8) CONSOLIDATED LOCAL PLAN.—The term
‘consolidated local plan’ means a plan submitted by
a local educational agency pursuant to section
14305.
‘‘(9) CONSOLIDATED
STATE
APPLICATION.—
The term ‘consolidated State application’ means an
application submitted by a State educational agency
pursuant to section 14302.
‘‘(10) CONSOLIDATED STATE PLAN.—The term
‘consolidated State plan’ means a plan submitted by
778
a State educational agency pursuant to section
14302.
‘‘(11) COUNTY.—The term ‘county’ means one
of the divisions of a State used by the Secretary of
Commerce in compiling and reporting data regard-
ing counties.
‘‘(12) COVERED PROGRAM.—The term ‘covered
program’ means each of the programs authorized
by—
‘‘(A) part A of title I;
‘‘(B) part B of title I;
‘‘(C) part C of title I;
‘‘(D) part D of title I;
‘‘(E) part F of title I;
‘‘(F) part G of title I;
‘‘(G) part A of title II;
‘‘(H) part A of title III;
‘‘(I) part A of title V;
‘‘(J) part B of title V; and
‘‘(K) part A of title IV:
‘‘(13) CURRENT
EXPENDITURES.—The term
‘current expenditures’ means expenditures for free
public education—
‘‘(A) including expenditures for adminis-
tration, instruction, attendance, pupil transpor-
779
tation services, operation and maintenance of
plant, fixed charges, and net expenditures to
cover deficits for food services and student body
activities; but
‘‘(B) not including expenditures for com-
munity services, capital outlay, and debt serv-
ice, or any expenditures made from funds re-
ceived under title I and title VI.
‘‘(14) DEPARTMENT.—The term ‘Department’
means the Department of Education.
‘‘(15) EDUCATIONAL
SERVICE
AGENCY.—The
term ‘educational service agency’ means a regional
public multiservice agency authorized by State stat-
ute to develop, manage, and provide services or pro-
grams to local educational agencies.
‘‘(16) EFFECTIVE
SCHOOLS
PROGRAM.—The
term ‘effective schools program’ means a school-
based program that may encompass preschool
through secondary school levels and that has the ob-
jectives of—
‘‘(A) promoting school-level planning, in-
structional improvement, and staff development;
‘‘(B) increasing the academic achievement
levels of all children and particularly education-
ally disadvantaged children; and
780
‘‘(C) achieving as ongoing conditions in the
school the following factors identified through
scientifically based research as distinguishing
effective from ineffective schools:
‘‘(i) Strong and effective administra-
tive and instructional leadership that cre-
ates consensus on instructional goals and
organizational capacity for instructional
problem solving.
‘‘(ii) Emphasis on the acquisition of
basic and advanced academic skills.
‘‘(iii) A safe and orderly school envi-
ronment that allows teachers and pupils to
focus their energies on academic achieve-
ment.
‘‘(iv) Continuous review of students
and programs to evaluate the effects of in-
struction.
‘‘(17) ELEMENTARY SCHOOL.—The term ‘ele-
mentary school’ means a nonprofit institutional day
or residential school, including a public elementary
charter school, that provides elementary education,
as determined under State law.
‘‘(18) ESSENTIAL
COMPONENTS
OF
READING
INSTRUCTION.—The term ‘essential components of
781
reading instruction’ means explicit and systematic
instruction in—
‘‘(A) phonemic awareness;
‘‘(B) phonics;
‘‘(C) vocabulary development;
‘‘(D) reading fluency; and
‘‘(E) reading comprehension strategies.
‘‘(19) FAMILY LITERACY SERVICES.—The term
‘family literacy services’ means services provided to
participants on a voluntary basis that are of suffi-
cient intensity in terms of hours, and of sufficient
duration, to make sustainable changes in a family,
and that integrate all of the following activities:
‘‘(A) Interactive literacy activities between
parents and their children.
‘‘(B) Training for parents regarding how
to be the primary teacher for their children and
full partners in the education of their children.
‘‘(C) Parent literacy training that leads to
economic self-sufficiency.
‘‘(D) An age-appropriate education to pre-
pare children for success in school and life ex-
periences.
782
‘‘(20) FREE
PUBLIC
EDUCATION.—The term
‘free public education’ means education that is
provided—
‘‘(A) at public expense, under public super-
vision and direction, and without tuition charge;
and
‘‘(B) as elementary or secondary school
education as determined under applicable State
law, except that such term does not include any
education provided beyond grade 12.
‘‘(21) FULLY
QUALIFIED.—The term ‘fully
qualified’—
‘‘(A) when used with respect to a public el-
ementary or secondary school teacher (other
than a teacher teaching in a public charter
school), means that the teacher has obtained
State certification as a teacher (including cer-
tification obtained through alternative routes to
certification) or passed the State teacher licens-
ing exam and holds a license to teach in such
State; and
‘‘(B) when used with respect to—
‘‘(i) an elementary school teacher,
means that the teacher holds a bachelor’s
degree and demonstrates knowledge and
783
teaching skills in reading, writing, mathe-
matics, science, and other areas of the ele-
mentary school curriculum; and
‘‘(ii) a middle or secondary school
teacher, means that the teacher holds a
bachelor’s degree and demonstrates a high
level of competency in all subject areas in
which he or she teaches through—
‘‘(I) a passing level of perform-
ance on a rigorous State or local aca-
demic subject areas test; or
‘‘(II) completion of an academic
major in each of the subject areas in
which he or she provides instruction.
‘‘(22) GIFTED
AND
TALENTED.—The term
‘gifted and talented’, when used with respect to stu-
dents, children or youth, means students, children or
youth who give evidence of high performance capa-
bility in areas such as intellectual, creative, artistic,
or leadership capacity, or in specific academic fields,
and who require services or activities not ordinarily
provided by the school in order to fully develop such
capabilities.
‘‘(23) INSTITUTION OF HIGHER EDUCATION.—
The term ‘institution of higher education’ has the
784
meaning given that term in section 101 of the High-
er Education Act of 1965.
‘‘(24) LIMITED
ENGLISH
PROFICIENT
STU-
DENT.—The term ‘limited English proficient stu-
dent’ means an individual aged 5 through 17 en-
rolled in an elementary school or secondary school—
‘‘(A) who—
‘‘(i) was not born in the United States
or whose native language is a language
other than English;
‘‘(ii)(I) is a Native American or Alas-
ka Native, or a native resident of the out-
lying areas; and
‘‘(II) comes from an environment
where a language other than English has
had a significant impact on such individ-
ual’s level of English language proficiency;
or
‘‘(iii) is migratory, whose native language
is a language other than English, and who
comes from an environment where a language
other than English is dominant; and
‘‘(B) who has sufficient difficulty speaking,
reading, writing, or understanding the English
785
language, and whose difficulties may deny the
individual—
‘‘(i) the ability to meet the State’s
proficient level of performance on State as-
sessments described in section 1111(b)(4)
in core academic subjects; or
‘‘(ii) the opportunity to participate
fully in society.
‘‘(25) LOCAL EDUCATIONAL AGENCY.—(A) The
term ‘local educational agency’ means a public board
of education or other public authority legally con-
stituted within a State for either administrative con-
trol or direction of, or to perform a service function
for, public elementary or secondary schools in a city,
county, township, school district, or other political
subdivision of a State, or for such combination of
school districts or counties as are recognized in a
State as an administrative agency for its public ele-
mentary or secondary schools.
‘‘(B) The term includes any other public insti-
tution or agency having administrative control and
direction of a public elementary or secondary school.
‘‘(C) The term includes an elementary or sec-
ondary school funded by the Bureau of Indian Af-
fairs but only to the extent that such inclusion
786
makes such school eligible for programs for which
specific eligibility is not provided to such school in
another provision of law and such school does not
have a student population that is smaller than the
student population of the local educational agency
receiving assistance under this Act with the smallest
student population, except that such school shall not
be subject to the jurisdiction of any State edu-
cational agency other than the Bureau of Indian Af-
fairs.
‘‘(D) The term includes educational service
agencies and consortia of such agencies.
‘‘(26) MENTORING.—The term ‘mentoring’
means a program in which an adult works with a
child or youth on a 1-to-1 basis, establishing a sup-
portive relationship, providing academic assistance,
and introducing the child or youth to new experi-
ences that enhance the child or youth’s ability to
excel in school and become a responsible citizen.
‘‘(26) NATIVE AMERICAN AND NATIVE AMER-
ICAN LANGUAGE.—The terms ‘Native American’ and
‘Native American language’ shall have the same
meaning given such terms in section 103 of the Na-
tive American Languages Act of 1990.
787
‘‘(27) OTHER STAFF.—The term ‘other staff’
means pupil services personnel, librarians, career
guidance and counseling personnel, education aides,
and other instructional and administrative per-
sonnel.
‘‘(28) OUTLYING
AREA.—The term ‘outlying
area’ means the United States Virgin Islands,
Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
‘‘(29) PARENT.—The term ‘parent’ includes a
legal guardian or other person standing in loco
parentis.
‘‘(30) PUPIL
SERVICES
PERSONNEL; 
PUPIL
SERVICES.—(A) The term ‘pupil services personnel’
means school counselors, school social workers,
school psychologists, and other qualified professional
personnel involved in providing assessment, diag-
nosis, counseling, educational, therapeutic, and other
necessary services (including related services as such
term is defined in section 602(22) of the Individuals
with Disabilities Education Act) as part of a com-
prehensive program to meet student needs.
‘‘(B) The term ‘pupil services’ means the serv-
ices provided by pupil services personnel.
788
‘‘(31) READING.—The term ‘reading’ means a
complex system of deriving meaning from print that
requires all of the following:
‘‘(A) Skills and knowledge to understand
how phonemes, or speech sounds are connected
in print.
‘‘(B) Ability to decode unfamiliar words.
‘‘(C) Ability to read fluently.
‘‘(D) Sufficient background information
and vocabulary to foster reading comprehen-
sions.
‘‘(E) Development of appropriate active
strategies to construct meaning from print.
‘‘(F) Development and maintenance of a
motivation to read.
‘‘(32) RIGOROUS DIAGNOSTIC READING ASSESS-
MENT.—The term ‘rigorous diagnostic reading as-
sessment’ means a diagnostic reading assessment
that—
‘‘(A) is valid, reliable, and grounded on sci-
entifically based reading research;
‘‘(B) measures progress in developing pho-
nemic awareness and phonics skills, vocabulary,
reading fluency, and reading comprehension;
and
789
‘‘(C) identifies students who may be at risk
for reading failure or who are having difficulty
reading.
‘‘(33) SCIENTIFICALLY
BASED
RESEARCH.—
The term ‘scientifically based research’—
‘‘(A) means the application of rigorous,
systematic, and objective procedures to obtain
valid knowledge relevant to education activities
and programs; and
‘‘(B) shall include research that—
‘‘(i) employs systematic, empirical
methods that draw on observation or ex-
periment;
‘‘(ii) involves rigorous data analyses
that are adequate to test the stated
hypotheses and justify the general conclu-
sions drawn;
‘‘(iii) relies on measurements or obser-
vational methods that provide valid data
across evaluators and observers and across
multiple measurements and observations;
‘‘(iv) is evaluated using randomized
experiments in which individuals, entities,
programs, or activities are randomly as-
signed to different variations (including a
790
control condition) to compare the relative
effects of the variations; and
‘‘(v) has been accepted by a peer-re-
viewed journal or approved by a panel of
independent experts through a comparably
rigorous, objective, and scientific review.
‘‘(34) SECONDARY
SCHOOL.—The term ‘sec-
ondary school’ means a nonprofit institutional day or
residential school, including a public secondary char-
ter school, that provides secondary education, as de-
termined under State law, except that such term
does not include any education beyond grade 12.
‘‘(35) 
SECRETARY.—The 
term 
‘Secretary’
means the Secretary of Education.
‘‘(36) STATE.—The term ‘State’ means each of
the 50 States, the District of Columbia, the Com-
monwealth of Puerto Rico, and each of the outlying
areas.
‘‘(37) STATE
EDUCATIONAL
AGENCY.—The
term ‘State educational agency’ means the agency
primarily responsible for the State supervision of
public elementary and secondary schools.
‘‘(38) TECHNOLOGY.—The term ‘technology’
means the latest state-of-the-art technology products
and services.
791
‘‘SEC. 8102. APPLICABILITY OF TITLE.
‘‘Parts B, C, D, and E of this title do not apply to
title VI of this Act.
‘‘SEC. 8103. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS
OPERATED SCHOOLS.
‘‘For purposes of any competitive program under this
Act, a consortia of schools operated by the Bureau of In-
dian Affairs, a school operated under a contract or grant
with the Bureau of Indian Affairs in consortia with an-
other contract or grant school or tribal or community or-
ganization, or a Bureau of Indian Affairs school in con-
sortia with an institution of higher education, a contract
or grant school and tribal or community organization shall
be given the same consideration as a local educational
agency.
‘‘PART B—FLEXIBILITY IN THE USE OF
ADMINISTRATIVE AND OTHER FUNDS
‘‘SEC. 8201. CONSOLIDATION OF STATE ADMINISTRATIVE
FUNDS FOR ELEMENTARY AND SECONDARY
EDUCATION PROGRAMS.
‘‘(a) CONSOLIDATION OF ADMINISTRATIVE FUNDS.—
‘‘(1) IN GENERAL.—A State educational agency
may consolidate the amounts specifically made avail-
able to such agency for State administration under
one or more of the programs under paragraph (2)
if such State educational agency can demonstrate
792
that the majority of such agency’s resources are de-
rived from non-Federal sources.
‘‘(2) APPLICABILITY.—This section applies to
any program under this Act under which funds are
authorized to be used for administration, and such
other programs as the Secretary may designate.
‘‘(b) USE OF FUNDS.—
‘‘(1) IN GENERAL.—A State educational agency
shall use the amount available under this section for
the administration of the programs included in the
consolidation under subsection (a).
‘‘(2) ADDITIONAL USES.—A State educational
agency may also use funds available under this sec-
tion for administrative activities designed to enhance
the effective and coordinated use of funds under pro-
grams included in the consolidation under subsection
(a), such as—
‘‘(A) the coordination of such programs
with other Federal and non-Federal programs;
‘‘(B) the establishment and operation of
peer-review mechanisms under this Act;
‘‘(C) the administration of this title;
‘‘(D) the dissemination of information re-
garding model programs and practices;
793
‘‘(E) technical assistance under any pro-
gram under this Act;
‘‘(F) State level activities designed to carry
out this title;
‘‘(G) training personnel engaged in audit
and other monitoring activities; and
‘‘(H) implementation of the Cooperative
Audit Resolution and Oversight Initiative of the
Department of Education.
‘‘(c) RECORDS.—A State educational agency that
consolidates administrative funds under this section shall
not be required to keep separate records, by individual
program, to account for costs relating to the administra-
tion of programs included in the consolidation under sub-
section (a).
‘‘(d) REVIEW.—To determine the effectiveness of
State administration under this section, the Secretary may
periodically review the performance of State educational
agencies in using consolidated administrative funds under
this section and take such steps as the Secretary finds
appropriate to ensure the effectiveness of such administra-
tion.
‘‘(e) UNUSED ADMINISTRATIVE FUNDS.—If a State
educational agency does not use all of the funds available
to such agency under this section for administration, such
794
agency may use such funds during the applicable period
of availability as funds available under one or more pro-
grams included in the consolidation under subsection (a).
‘‘SEC. 8202. SINGLE LOCAL EDUCATIONAL AGENCY STATES.
‘‘A State educational agency that also serves as a
local educational agency, in such agency’s applications or
plans under this Act, shall describe how such agency will
eliminate duplication in the conduct of administrative
functions.
‘‘SEC. 8203. CONSOLIDATION OF FUNDS FOR LOCAL ADMIN-
ISTRATION.
‘‘(a) GENERAL AUTHORITY.—In accordance with
regulations of the Secretary and for any fiscal year, a local
educational agency, with the approval of its State edu-
cational agency, may consolidate and use for the adminis-
tration of one or more programs under this Act (or such
other programs as the Secretary shall designate) not more
than the percentage, established in each such program, of
the total available for the local educational agency under
such programs.
‘‘(b) STATE PROCEDURES.—Within one-year from
the date of enactment of the No Child Left Behind Act
of 2001, a State educational agency shall, in collaboration
with local educational agencies in the State, establish pro-
cedures for responding to requests from local educational
795
agencies to consolidate administrative funds under sub-
section (a) and for establishing limitations on the amount
of funds under such programs that may be used for ad-
ministration on a consolidated basis.
‘‘(c) CONDITIONS.—A local educational agency that
consolidates administrative funds under this section for
any fiscal year shall not use any other funds under the
programs included in the consolidation for administration
for that fiscal year.
‘‘(d) USES
OF ADMINISTRATIVE FUNDS.—A local
educational agency that consolidates administrative funds
under this section may use such consolidated funds for
the administration of such programs and for uses, at the
school district and school levels, comparable to those de-
scribed in section 8201(b)(2).
‘‘(e) RECORDS.—A local educational agency that con-
solidates administrative funds under this section shall not
be required to keep separate records, by individual pro-
gram, to account for costs relating to the administration
of such programs included in the consolidation.
‘‘SEC. 8204. CONSOLIDATED SET-ASIDE FOR DEPARTMENT
OF THE INTERIOR FUNDS.
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) TRANSFER.—The Secretary shall transfer
to the Department of the Interior, as a consolidated
796
amount for covered programs, the Indian education
programs under subpart 1 of part B of title III, and
the education for homeless children and youth pro-
gram under subtitle B of title VII of the Stewart B.
McKinney Homeless Assistance Act, the amounts al-
lotted to the Department of the Interior under those
programs.
‘‘(2) AGREEMENT.—(A) The Secretary and the
Secretary of the Interior shall enter into an agree-
ment, consistent with the requirements of the pro-
grams specified in paragraph (1), for the distribu-
tion and use of those program funds under terms
that the Secretary determines best meet the pur-
poses of those programs.
‘‘(B) The agreement shall—
‘‘(i) set forth the plans of the Secretary of
the Interior for the use of the amount trans-
ferred and the performance measures to assess
program effectiveness, including measurable
goals and objectives; and
‘‘(ii) be developed in consultation with In-
dian tribes.
‘‘(b) ADMINISTRATION.—The Department of the In-
terior may use not more than 1.5 percent of the funds
consolidated under this section for such department’s
797
costs related to the administration of the funds trans-
ferred under this section.
‘‘PART C—COORDINATION OF PROGRAMS; CON-
SOLIDATED STATE AND LOCAL PLANS AND
APPLICATIONS
‘‘SEC. 8301. PURPOSE.
‘‘The purposes of this part are to improve teaching
and learning through greater coordination between pro-
grams and to provide greater flexibility to State and local
authorities by allowing the consolidation of State and local
plans, applications, and reporting.
‘‘SEC. 8302. OPTIONAL CONSOLIDATED STATE PLANS OR
APPLICATIONS.
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) SIMPLIFICATION.—In order to simplify ap-
plication requirements and reduce the burden for
States under this Act, the Secretary, in accordance
with subsection (b), shall establish procedures and
criteria under which a Governor and State edu-
cational agency may submit a consolidated State
plan or a consolidated State application meeting the
requirements of this section for—
‘‘(A) any programs under this Act in which
the State participates; and
798
‘‘(B) such other programs as the Secretary
may designate.
‘‘(2) 
CONSOLIDATED
APPLICATIONS
AND
PLANS.—A Governor and State educational agency
that submits a consolidated State plan or a consoli-
dated State application under this section shall not
be required to submit a separate State plan or appli-
cation for a program included in the consolidated
State plan or application.
‘‘(b) COLLABORATION.—
‘‘(1) IN GENERAL.—In establishing criteria and
procedures under this section, the Secretary shall
collaborate with Governors, State educational agen-
cies and, as appropriate, with other State agencies,
local educational agencies, public and private non-
profit agencies, organizations, and institutions, pri-
vate schools, and representatives of parents, stu-
dents, and teachers.
‘‘(2) CONTENTS.—Through the collaborative
process described in paragraph (1), the Secretary
shall establish, for each program under the Act to
which this section applies, the descriptions, informa-
tion, assurances, and other material required to be
included in a consolidated State plan or consolidated
State application.
799
‘‘(3) NECESSARY
MATERIALS.—The Secretary
shall require only descriptions, information, assur-
ances, and other materials that are absolutely nec-
essary for the consideration of the consolidated State
plan or consolidated State application.
‘‘SEC. 8303. CONSOLIDATED REPORTING.
‘‘In order to simplify reporting requirements and re-
duce reporting burdens, the Secretary shall establish pro-
cedures and criteria under which a Governor and State
educational agency may submit a consolidated State an-
nual report. Such report shall contain information about
the programs included in the report, including the State’s
performance under those programs, and other matters as
the Secretary determines, such as monitoring activities.
Such a report shall take the place of separate individual
annual reports for the programs subject to it.
‘‘SEC. 8304. GENERAL APPLICABILITY OF STATE EDU-
CATIONAL AGENCY ASSURANCES.
‘‘(a) ASSURANCES.—A Governor and State edu-
cational agency that submits a consolidated State plan or
consolidated State application under this Act, whether
separately or under section 8302, shall have on file with
the Secretary a single set of assurances, applicable to each
program for which such plan or application is submitted,
that provides that—
800
‘‘(1) each such program will be administered in
accordance with all applicable statutes, regulations,
program plans, and applications;
‘‘(2)(A) the control of funds provided under
each such program and title to property acquired
with program funds will be in a public agency, in a
nonprofit private agency, institution, or organiza-
tion, or in an Indian tribe if the law authorizing the
program provides for assistance to such entities; and
‘‘(B) the public agency, nonprofit private agen-
cy, institution, or organization, or Indian tribe will
administer such funds and property to the extent re-
quired by the authorizing law;
‘‘(3) the State will adopt and use proper meth-
ods of administering each such program, including—
‘‘(A) the enforcement of any obligations
imposed by law on agencies, institutions, orga-
nizations, and other recipients responsible for
carrying out each program;
‘‘(B) the correction of deficiencies in pro-
gram operations that are identified through au-
dits, monitoring, or evaluation; and
‘‘(C) the adoption of written procedures for
the receipt and resolution of complaints alleging
801
violations of law in the administration of such
programs;
‘‘(4) the State will cooperate in carrying out
any evaluation of each such program conducted by
or for the Secretary or other Federal officials;
‘‘(5) the State will use such fiscal control and
fund accounting procedures as will ensure proper
disbursement of, and accounting for, Federal funds
paid to the State under each such program;
‘‘(6) the State will—
‘‘(A) make reports to the Secretary as may
be necessary to enable the Secretary to perform
the Secretary’s duties under each such pro-
gram; and
‘‘(B) maintain such records, provide such
information to the Secretary, and afford access
to the records as the Secretary may find nec-
essary to carry out the Secretary’s duties; and
‘‘(7) before the plan or application was sub-
mitted to the Secretary, the State has afforded a
reasonable opportunity for public comment on the
plan or application and has considered such com-
ment.
802
‘‘(b) GEPA PROVISION.—Section 441 of the General
Education Provisions Act shall not apply to programs
under this Act.
‘‘SEC. 8305. CONSOLIDATED LOCAL PLANS OR APPLICA-
TIONS.
‘‘(a) GENERAL AUTHORITY.—A local educational
agency receiving funds under more than one program
under this Act may submit plans or applications to the
Governor and State educational agency under such pro-
grams on a consolidated basis.
‘‘(b) REQUIRED CONSOLIDATED PLANS OR APPLICA-
TIONS.—A State that has an approved consolidated State
plan or application under section 8302 may require local
educational agencies in the State receiving funds under
more than one program included in the consolidated State
plan or consolidated State application to submit consoli-
dated local plans or applications under such programs, but
may not require such agencies to submit separate plans.
‘‘(c) COLLABORATION.—A Governor and State edu-
cational agency shall collaborate with local educational
agencies in the State in establishing procedures for the
submission of the consolidated State plans or consolidated
State applications under this section.
‘‘(d) NECESSARY MATERIALS.—The State shall re-
quire only descriptions, information, assurances, and other
803
material that are absolutely necessary for the consider-
ation of the local educational agency plan or application.
‘‘SEC. 8306. OTHER GENERAL ASSURANCES.
‘‘(a) ASSURANCES.—Any applicant other than a
State that submits a plan or application under this Act,
shall have on file with the State a single set of assurances,
applicable to each program for which a plan or application
is submitted, that provides that—
‘‘(1) each such program will be administered in
accordance with all applicable statutes, regulations,
program plans, and applications;
‘‘(2)(A) the control of funds provided under
each such program and title to property acquired
with program funds will be in a public agency or in
a nonprofit private agency, institution, organization,
or Indian tribe, if the law authorizing the program
provides for assistance to such entities; and
‘‘(B) the public agency, nonprofit private
agency, institution, or organization, or Indian
tribe will administer such funds and property to
the extent required by the authorizing statutes;
‘‘(3) the applicant will adopt and use proper
methods of administering each such program,
including—
804
‘‘(A) the enforcement of any obligations
imposed by law on agencies, institutions, orga-
nizations, and other recipients responsible for
carrying out each program; and
‘‘(B) the correction of deficiencies in pro-
gram operations that are identified through au-
dits, monitoring, or evaluation;
‘‘(4) the applicant will cooperate in carrying out
any evaluation of each such program conducted by
or for the State educational agency, the Secretary or
other Federal officials;
‘‘(5) the applicant will use such fiscal control
and fund accounting procedures as will ensure prop-
er disbursement of, and accounting for, Federal
funds paid to such applicant under each such pro-
gram;
‘‘(6) the applicant will—
‘‘(A) make reports to the Governor and
State educational agency and the Secretary as
may be necessary to enable such agency and the
Secretary to perform their duties under each
such program; and
‘‘(B) maintain such records, provide such
information, and afford access to the records as
the Governor and State educational agency or
805
the Secretary may find necessary to carry out
the State’s or the Secretary’s duties; and
‘‘(7) before the application was submitted, the
applicant afforded a reasonable opportunity for pub-
lic comment on the application and has considered
such comment.
‘‘(b) GEPA PROVISION.—Section 442 of the General
Education Provisions Act shall not apply to programs
under this Act.
‘‘PART D—WAIVERS
‘‘SEC. 8401. WAIVERS OF STATUTORY AND REGULATORY RE-
QUIREMENTS.
‘‘(a) IN GENERAL.—Except as provided in subsection
(c), the Secretary may waive any statutory or regulatory
requirement of this Act or the Carl D. Perkins Vocational
and Technical Education Act of 1998 for a State edu-
cational agency, local educational agency, Indian tribe, or
school through a local educational agency, that—
‘‘(1) receives funds under a program authorized
by this Act; and
‘‘(2) requests a waiver under subsection (b).
‘‘(b) REQUEST FOR WAIVER.—
‘‘(1) IN GENERAL.—A State educational agen-
cy, local educational agency, or Indian tribe which
806
desires a waiver shall submit a waiver application to
the Secretary that—
‘‘(A) indicates each Federal program af-
fected and each statutory or regulatory require-
ment requested to be waived;
‘‘(B) describes the purpose and overall ex-
pected results of waiving each such require-
ment;
‘‘(C) describes, for each school year, spe-
cific, measurable, educational goals for the
State educational agency and for each local
educational agency, Indian tribe, or school that
would be affected by the wavier;
‘‘(D) explains why the waiver will assist
the State educational agency and each affected
local educational agency, Indian tribe, or school
in reaching such goals.
‘‘(2) 
ADDITIONAL
INFORMATION.—Such
requests—
‘‘(A) may provide for waivers of require-
ments applicable to State educational agencies,
local educational agencies, Indian tribes, and
schools; and
‘‘(B) shall be developed and submitted—
807
‘‘(i)(I) by local educational agencies
(on behalf of such agencies and schools) to
State educational agencies; and
‘‘(II) by State educational agencies
(on behalf of, and based upon the requests
of, local educational agencies) to the Sec-
retary; or
‘‘(ii) by Indian tribes (on behalf of
schools operated by such tribes) to the Sec-
retary.
‘‘(3) GENERAL REQUIREMENTS.—
‘‘(A) In the case of a waiver request sub-
mitted by a State educational agency acting in
its own behalf, the State educational agency
shall—
‘‘(i) provide all interested local edu-
cational agencies in the State with notice
and a reasonable opportunity to comment
on the request;
‘‘(ii) submit the comments to the Sec-
retary; and
‘‘(iii) provide notice and information
to the public regarding the waiver request
in the manner that the applying agency
808
customarily provides similar notices and
information to the public.
‘‘(B) In the case of a waiver request sub-
mitted by a local educational agency that re-
ceives funds under this Act—
‘‘(i) such request shall be reviewed by
the State educational agency and be ac-
companied by the comments, if any, of
such State educational agency; and
‘‘(ii) notice and information regarding
the waiver request shall be provided to the
public by the agency requesting the waiver
in the manner that such agency custom-
arily provides similar notices and informa-
tion to the public.
‘‘(c) RESTRICTIONS.—The Secretary shall not waive
under this section any statutory or regulatory require-
ments relating to—
‘‘(1) the allocation or distribution of funds to
States, local educational agencies, or other recipients
of funds under this Act;
‘‘(2) maintenance of effort;
‘‘(3) comparability of services;
‘‘(4) use of Federal funds to supplement, not
supplant, non-Federal funds;
809
‘‘(5) equitable participation of private school
students and teachers;
‘‘(6) parental participation and involvement;
‘‘(7) applicable civil rights requirements;
‘‘(8) the requirement for a charter school under
part B of title IV; or
‘(9) the prohibitions regarding—
‘‘(A) State aid in section 8502;
‘‘(B) use of funds for religious worship or
instruction in section 8507; and
‘‘(C) activities in section 8514.
‘‘(d) DURATION AND EXTENSION OF WAIVER.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the duration of a waiver approved by the
Secretary under this section may be for a period not
to exceed 5 years.
‘‘(2) EXTENSION.—The Secretary may extend
the period described in paragraph (1) if the Sec-
retary determines that—
‘‘(A) the waiver has been effective in ena-
bling the State or affected recipients to carry
out the activities for which the waiver was re-
quested and the waiver has contributed to im-
proved student performance; and
810
‘‘(B) such extension is in the public inter-
est.
‘‘(e) REPORTS.—
‘‘(1) LOCAL WAIVER.—A local educational agen-
cy that receives a waiver under this section shall at
the end of the second year for which a waiver is re-
ceived under this section, and each subsequent year,
submit a report to the State educational agency
that—
‘‘(A) describes the uses of such waiver by
such agency or by schools;
‘‘(B) describes how schools continued to
provide assistance to the same populations
served by the programs for which waivers are
requested; and
‘‘(A) evaluates the progress of such agency
and of schools in improving the quality of in-
struction or the academic performance of stu-
dents.
‘‘(2) STATE
WAIVER.—A State educational
agency that receives reports required under para-
graph (1) shall annually submit a report to the Sec-
retary that is based on such reports and contains
such information as the Secretary may require.
811
‘‘(3) INDIAN TRIBE WAIVER.—An Indian tribe
that receives a waiver under this section shall annu-
ally submit a report to the Secretary that—
‘‘(A) describes the uses of such waiver by
schools operated by such tribe; and
‘‘(B) evaluates the progress of such schools
in improving the quality of instruction or the
academic performance of students.
‘‘(4) REPORT TO CONGRESS.—Beginning in fis-
cal year 2002 and each subsequent year, the Sec-
retary shall submit to the Committee on Education
and the Workforce of the House of Representatives
and the Committee on Health, Education, Labor
and Pensions of the Senate a report—
‘‘(A) summarizing the uses of waivers by
State educational agencies, local educational
agencies, Indian tribes, and schools; and
‘‘(B) describing whether such waivers—
‘‘(i) increased the quality of instruc-
tion to students; or
‘‘(ii) improved the academic perform-
ance of students.
‘‘(f) TERMINATION
OF WAIVERS.—The Secretary
shall terminate a waiver under this section if the Secretary
determines, after notice and an opportunity for a hearing,
812
that the performance of the State or other recipient af-
fected by the waiver has been inadequate to justify a con-
tinuation of the waiver or if the waiver is no longer nec-
essary to achieve its original purposes.
‘‘(g) PUBLICATION.—A notice of the Secretary’s deci-
sion to grant each waiver under subsection (a) shall be
published in the Federal Register and the Secretary shall
provide for the dissemination of such notice to State edu-
cational agencies, interested parties, including educators,
parents, students, advocacy and civil rights organizations,
and the public.
‘‘PART E—UNIFORM PROVISIONS
‘‘SEC. 8501. MAINTENANCE OF EFFORT.
‘‘(a) IN GENERAL.—A local educational agency may
receive funds under a covered program for any fiscal year
only if the State educational agency finds that either the
combined fiscal effort per student or the aggregate ex-
penditures of such agency and the State with respect to
the provision of free public education by such 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.
‘‘(b) REDUCTION IN CASE OF FAILURE TO MEET.—
‘‘(1) IN
GENERAL.—The State educational
agency shall reduce the amount of the allocation of
813
funds under a covered program in any fiscal year in
the exact proportion to which a local educational
agency fails to meet the requirement of subsection
(a) of this section by falling below 90 percent of
both the combined fiscal effort per student and ag-
gregate expenditures (using the measure most favor-
able to such local agency).
‘‘(2) SPECIAL RULE.—No such lesser amount
shall be used for computing the effort required
under subsection (a) of this section for subsequent
years.
‘‘(c) WAIVER.—The Secretary may waive the require-
ments of this section if the Secretary determines that such
a waiver would be equitable due to—
‘‘(1) exceptional or uncontrollable circumstances
such as a natural disaster; or
‘‘(2) a precipitous decline in the financial re-
sources of the local educational agency.
‘‘SEC. 8502. PROHIBITION REGARDING STATE AID.
‘‘A State shall not take into consideration payments
under this Act (other than under title VI) in determining
the eligibility of any local educational agency in such State
for State aid, or the amount of State aid, with respect
to free public education of children.
814
‘‘SEC. 8503. PARTICIPATION BY PRIVATE SCHOOL CHIL-
DREN AND TEACHERS.
‘‘(a) PRIVATE SCHOOL PARTICIPATION.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this Act, to the extent consistent with the
number of eligible children in areas served by a
State educational agency, local educational agency,
educational service agency, consortium of such agen-
cies, or another entity receiving financial assistance
under a program specified in subsection (b), who are
enrolled in private elementary and secondary schools
in areas served by such agency, consortium or entity,
such agency, consortium or entity shall, after timely
and meaningful consultation with appropriate pri-
vate school officials, provide such children and their
teachers or other educational personnel, on an equi-
table basis, special educational services or other ben-
efits that address their needs under such program.
‘‘(2) SECULAR, NEUTRAL, AND
NONIDEOLOG-
ICAL SERVICES OR BENEFITS.—Educational services
or other benefits, including materials and equipment,
provided under this section, shall be secular, neutral,
and nonideological.
‘‘(3) SPECIAL RULE.—Educational services and
other benefits provided under this section for such
private school children, teachers, and other edu-
815
cational personnel shall be equitable in comparison
to services and other benefits for public school chil-
dren, teachers, and other educational personnel par-
ticipating in such program and shall be provided in
a timely manner.
‘‘(4) EXPENDITURES.—Expenditures for edu-
cational services and other benefits provided under
this section to eligible private school children, their
teachers, and other educational personnel serving
such children shall be equal, taking into account the
number and educational needs of the children to be
served, to the expenditures for participating public
school children.
‘‘(5) PROVISION OF SERVICES.—Such agency,
consortium or entity described in subsection (a)(1)
of this section may provide such services directly or
through contracts with public and private agencies,
organizations, and institutions.
‘‘(b) APPLICABILITY.—
‘‘(1) IN GENERAL.—This section applies to pro-
grams under—
‘‘(A) part B, subpart 1 of title I;
‘‘(B) part C of title I;
‘‘(C) part A of title II;
‘‘(D) part A of title III.
816
‘‘(E) part A of title V; and
‘‘(F) part B of title V;
‘‘(2) DEFINITION.—For the purposes of this
section, the term ‘eligible children’ means children
eligible for services under a program described in
paragraph (1).
‘‘(c) CONSULTATION.—
‘‘(1) IN
GENERAL.—To ensure timely and
meaningful consultation, a State educational agency,
local educational agency, educational service agency,
consortium of such agencies or entity shall consult
with appropriate private school officials during the
design and development of the programs under this
Act, on issues such as—
‘‘(A) how the children’s needs will be iden-
tified;
‘‘(B) what services will be offered;
‘‘(C) how, where, and by whom the services
will be provided;
‘‘(D) how the services will be assessed and
how the results of the assessment will be used
to improve such services;
‘‘(E) the size and scope of the equitable
services to be provided to the eligible private
school children, teachers, and other educational
817
personnel and the amount of funds available for
such services; and
‘‘(F) how and when the agency, consor-
tium, or entity will make decisions about the
delivery of services, including a thorough con-
sideration and analysis of the views of the pri-
vate school officials on the provision of contract
services through potential third party providers.
‘‘(2) DISAGREEMENT.—If the agency, consor-
tium or entity disagrees with the views of the private
school officials on the provision of services through
a contract, the agency, consortium, or entity shall
provide in writing to such private school officials an
analysis of the reasons why the local educational
agency has chosen not to use a contractor.
‘‘(3) TIMING.—Such consultation shall occur
before the agency, consortium, or entity makes any
decision that affects the opportunities of eligible pri-
vate school children, teachers, and other educational
personnel to participate in programs under this Act,
and shall continue throughout the implementation
and assessment of activities under this section.
‘‘(4) DISCUSSION
REQUIRED.—Such consulta-
tion shall include a discussion of service delivery
mechanisms that the agency, consortium, or entity
818
could use to provide equitable services to eligible pri-
vate school children, teachers, administrators, and
other staff.
‘‘(d) PUBLIC CONTROL OF FUNDS.—
‘‘(1) IN GENERAL.—The control of funds used
to provide services under this section, and title to
materials, equipment, and property purchased with
such funds, shall be in a public agency for the uses
and purposes provided in this Act, and a public
agency shall administer such funds and property.
‘‘(2) PROVISION OF SERVICES.—
‘‘(A) The provision of services under this
section shall be provided—
‘‘(i) by employees of a public agency;
or
‘‘(ii) through contract by such public
agency with an individual, association,
agency, organization, or other entity.
‘‘(B) In the provision of such services, such
employee, person, association, agency, organiza-
tion or other entity shall be independent of such
private school and of any religious organization,
and such employment or contract shall be under
the control and supervision of such public agen-
cy.
819
‘‘(C) Funds used to provide services under
this section shall not be commingled with non-
Federal funds.
‘‘SEC. 8504. STANDARDS FOR BY-PASS.
‘‘If, by reason of any provision of law, a State edu-
cational agency, local educational agency, educational
service agency, consortium, or other entity of such agen-
cies, is prohibited from providing for the participation in
programs of children enrolled in, or teachers or other edu-
cational personnel from, private elementary and secondary
schools, on an equitable basis, or if the Secretary deter-
mines that such agency consortium or entity has substan-
tially failed or is unwilling to provide for such participa-
tion, as required by section 8503, the Secretary shall—
‘‘(1) waive the requirements of that section for
such agency, consortium, or entity;
‘‘(2) arrange for the provision of equitable serv-
ices to such children, teachers, or other educational
personnel through arrangements that shall be sub-
ject to the requirements of this section and of sec-
tions 8503, 8505, and 8506; and
‘‘(3) in making the determination, consider one
or more factors, including the quality, size, scope, lo-
cation of the program and the opportunity of private
820
school children, teachers, and other educational per-
sonnel to participate.
‘‘SEC. 8505. COMPLAINT PROCESS FOR PARTICIPATION OF
PRIVATE SCHOOL CHILDREN.
‘‘(a) PROCEDURES
FOR COMPLAINTS.—The Sec-
retary shall develop and implement written procedures for
receiving, investigating, and resolving complaints from
parents, teachers, or other individuals and organizations
concerning violations of section 8503 by a State edu-
cational agency, local educational agency, educational
service agency, consortium of such agencies or entity.
Such individual or organization shall submit such com-
plaint to the State educational agency for a written resolu-
tion by the State educational agency within a reasonable
period of time.
‘‘(b) APPEALS TO SECRETARY.—Such resolution may
be appealed by an interested party to the Secretary not
later than 30 days after the State educational agency re-
solves the complaint or fails to resolve the complaint with-
in a reasonable period of time. Such appeal shall be ac-
companied by a copy of the State educational agency’s res-
olution, and a complete statement of the reasons sup-
porting the appeal. The Secretary shall investigate and re-
solve each such appeal not later than 120 days after re-
ceipt of the appeal.
821
‘‘SEC. 8506. BY-PASS DETERMINATION PROCESS.
‘‘(a) REVIEW.—
‘‘(1) IN GENERAL.—
‘‘(A) The Secretary shall not take any final
action under section 8504 until the State edu-
cational agency, local educational agency, edu-
cational service agency, consortium of such
agencies or entity affected by such action has
had an opportunity, for not less than 45 days
after receiving written notice thereof, to submit
written objections and to appear before the Sec-
retary to show cause why that action should not
be taken.
‘‘(B) Pending final resolution of any inves-
tigation or complaint that could result in a de-
termination under this section, the Secretary
may withhold from the allocation of the affected
State or local educational agency the amount
estimated by the Secretary to be necessary to
pay the cost of those services.
‘‘(2) PETITION FOR REVIEW.—
‘‘(A) If such affected agency consortium or
entity is dissatisfied with the Secretary’s final
action after a proceeding under paragraph (1),
such agency consortium or entity may, within
60 days after notice of such action, file with the
822
United States court of appeals for the circuit in
which such State is located a petition for review
of that action.
‘‘(B) A copy of the petition shall be forth-
with transmitted by the clerk of the court to the
Secretary.
‘‘(C) The Secretary upon receipt of the
copy of the petition shall file in the court the
record of the proceedings on which the Sec-
retary based this action, as provided in section
2112 of title 28, United States Code.
‘‘(3) FINDINGS OF FACT.—
‘‘(A) The findings of fact by the Secretary,
if supported by substantial evidence, shall be
conclusive, but the court, for good cause shown,
may remand the case to the Secretary to take
further evidence and the Secretary may then
make new or modified findings of fact and may
modify the Secretary’s previous action, and
shall file in the court the record of the further
proceedings.
‘‘(B) Such new or modified findings of fact
shall likewise be conclusive if supported by sub-
stantial evidence.
‘‘(4) JURISDICTION.—
823
‘‘(A) Upon the filing of such petition, the
court shall have jurisdiction to affirm the action
of the Secretary or to set such action aside, in
whole or in part.
‘‘(B) The judgment of the court shall be
subject to review by the Supreme Court of the
United States upon certiorari or certification as
provided in section 1254 of title 28, United
States Code.
‘‘(b) DETERMINATION.—Any determination by the
Secretary under this section shall continue in effect until
the Secretary determines, in consultation with such agen-
cy, consortium or entity and representatives of the af-
fected private school children, teachers, or other edu-
cational personnel that there will no longer be any failure
or inability on the part of such agency or consortium to
meet the applicable requirements of section 8503 or any
other provision of this Act.
‘‘(c) PAYMENT FROM STATE
ALLOTMENT.—When
the Secretary arranges for services pursuant to this sec-
tion, the Secretary shall, after consultation with the ap-
propriate public and private school officials, pay the cost
of such services, including the administrative costs of ar-
ranging for those services, from the appropriate allocation
or allocations under this Act.
824
‘‘(d) PRIOR DETERMINATION.—Any by-pass deter-
mination by the Secretary under this Act as in effect on
the day preceding the date of enactment of the No Child
Left Behind Act of 2001 shall remain in effect to the ex-
tent the Secretary determines that such determination is
consistent with the purpose of this section.
‘‘SEC. 8507. PROHIBITION AGAINST FUNDS FOR RELIGIOUS
WORSHIP OR INSTRUCTION.
‘‘(a) IN GENERAL.—Nothing contained in this Act
shall be construed to authorize the making of any payment
under this Act for religious worship or instruction.
‘‘(b) INAPPLICABILITY.—Subsection (a) shall not be
construed to prohibit the use of funds made available to
parents of eligible children for sectarian educational pur-
poses under private school choice provisions of this Act,
or to require an eligible private institution to remove reli-
gious art, icons, scripture, or other symbols.
‘‘SEC. 8508. APPLICABILITY.
‘‘Nothing in this Act shall be construed to affect
home schools nor shall any home schooled student be re-
quired to participate in any assessment referenced in this
Act.
825
‘‘SEC. 8509. PRIVATE SCHOOLS.
‘‘Nothing in this Act shall be construed to affect any
private school that does not receive funds or services under
this Act.
‘‘SEC. 8510. PRIVACY OF ASSESSMENT RESULTS.
‘‘Any results from individual assessments referenced
in this Act which become part of the education records
of the student shall have the protections as provided in
section 444 of the General Education Provisions Act.
‘‘SEC. 
8511. 
GENERAL 
PROVISION 
REGARDING 
NON-
RECIPIENT NONPUBLIC SCHOOLS.
‘‘Nothing in this Act or any other Act administered
by the Department shall be construed to permit, allow,
encourage, or authorize any Federal control over any as-
pect of any private, religious, or home school, whether or
not a home school is treated as a private school or home
school under State law. This section shall not be construed
to bar private, religious, or home schools from participa-
tion in programs or services under this Act or any other
Act administered by the Department.
‘‘SEC. 8512. SCHOOL PRAYER.
‘‘Notwithstanding any provision of law, no funds
made available through the Department of Education
under this Act, or any other Act, shall be available to any
State or local educational agency which has a policy of
denying or which effectively prevents participation in, con-
826
stitutionally protected prayer in public schools by individ-
uals on a voluntary basis. Neither the United States nor
any State nor any local educational agency shall require
any person to participate in prayer or influence the form
or content of any constitutionally protected prayer in such
public schools.
‘‘SEC. 8513. ATTORNEYS FEES.
‘‘Notwithstanding any other provision of Federal law,
a local educational agency or public elementary or sec-
ondary school may use not more than 20 percent of its
administrative funds from any program under this Act for
payment of attorneys fees and related legal services in the
defense of any legal action, brought against a local edu-
cational agency, public elementary or secondary school, or
agent of any of such entities, claiming such agency, school,
or agent violated the constitutional prohibition against the
establishment of religion by permitting, facilitating, or
accommodating—
‘‘(1) a student’s religious expression; or
‘‘(2) the design or construction of any memorial
which includes religious symbols, motifs, or saying
as part of a memorial placed on the campus of a
public elementary or secondary school in order to
honor the memory of a person slain on that campus.
827
‘‘SEC. 8514. GENERAL PROHIBITIONS.
‘‘(a) PROHIBITION.—None of the funds authorized
under this Act shall be used—
‘‘(1) to develop or distribute materials, or oper-
ate programs or courses of instruction directed at
youth that are designed to promote or encourage,
sexual activity, whether homosexual or heterosexual;
‘‘(2) to distribute or to aid in the distribution
by any organization of legally obscene materials to
minors on school grounds;
‘‘(3) to provide sex education or HIV preven-
tion education in schools unless such instruction is
age appropriate and emphasizes the health benefits
of abstinence; or
‘‘(4) to operate a program of contraceptive dis-
tribution in schools.
‘‘(b) LOCAL CONTROL.—Nothing in this section shall
be construed to—
‘‘(1) authorize an officer or employee of the
Federal Government to mandate, direct, review, or
control a State, local educational agency, or schools’
instructional content, curriculum, and related activi-
ties;
‘‘(2) limit the application of the General Edu-
cation Provisions Act (20 U.S.C.A. 1221 et seq.);
828
‘‘(3) require the distribution of scientifically or
medically false or inaccurate materials or to prohibit
the distribution of scientifically or medically true or
accurate materials; or
‘‘(4) create any legally enforceable right.
‘‘SEC. 8515. PROHIBITION ON FEDERAL MANDATES, DIREC-
TION, AND CONTROL.
‘‘(a) GENERAL PROHIBITION.—Nothing in this Act
shall be construed to authorize an officer or employee of
the Federal Government to mandate, direct, or control a
State, local educational agency, or school’s curriculum,
program of instruction, or allocation of State or local re-
sources, or mandate a State or any subdivision thereof to
spend any funds or incur any costs not paid for under
this Act.
‘‘(b) PROHIBITION OF FEDERAL MANDATES, DIREC-
TION, OR CONTROL.—Nothing in this Act shall be con-
strued to authorize an officer or employee of the Federal
Government to mandate, direct, or control a State, local
educational agency, or school’s specific instructional con-
tent or pupil performance standards and assessments, cur-
riculum, or program of instruction as a condition of eligi-
bility to receive funds under this Act.
829
‘‘(c) EQUALIZED SPENDING.—Nothing in this Act
shall be construed to mandate equalized spending per
pupil for a State, local educational agency, or school.
‘‘(d) BUILDING STANDARDS.—Nothing in this Act
shall be construed to mandate national school building
standards for a State, local agency, or school.
‘‘SEC. 8516. RULEMAKING.
‘‘The Secretary shall issue regulations under this Act
only to the extent that such regulations are necessary to
ensure that there is compliance with the specific require-
ments and assurances required by this Act.
‘‘SEC. 8517. REPORT.
‘‘The Secretary shall report to the Congress not later
than 180 days after the date of enactment of the No Child
Left Behind Act of 2001 regarding how the Secretary
shall ensure that audits conducted by Department employ-
ees of activities assisted under this Act comply with
changes to this Act made by the No Child Left Behind
Act of 2001, particularly with respect to permitting chil-
dren with similar educational needs to be served in the
same educational settings, where appropriate.
‘‘SEC. 8518. REQUIRED APPROVAL OR CERTIFICATION PRO-
HIBITED.
‘‘(a) IN GENERAL.—Notwithstanding any other pro-
vision of Federal law, no State shall be required to have
830
content standards or student achievement standards ap-
proved or certified by the Federal Government, in order
to receive assistance under this Act.
‘‘(b) CONSTRUCTION.—Nothing in this section shall
be construed to affect requirements under title I of this
Act.
‘‘SEC. 8519. PROHIBITION ON ENDORSEMENT OF CUR-
RICULUM.
‘‘Notwithstanding any other prohibition of Federal
law, no funds provided to the Department of Education
or to any applicable program may be used by the Depart-
ment to endorse, approve, or sanction any curriculum de-
signed to be used in an elementary or secondary school.
‘‘SEC. 8520. RULE OF CONSTRUCTION ON PERSONALLY
IDENTIFIABLE INFORMATION.
‘‘Nothing in this Act shall be construed to permit the
development of a national database of personally identifi-
able information on individuals involved in studies or in
data collection efforts under this Act.
‘‘PART F—SENSE OF CONGRESS
‘‘SEC. 8601. PAPERWORK REDUCTION.
‘‘(a) FINDINGS.—The Congress finds that—
‘‘(1) instruction and other classroom activities
provide the greatest opportunity for students, espe-
831
cially at-risk and disadvantaged students, to attain
high standards and achieve academic success;
‘‘(2) one of the greatest obstacles to estab-
lishing an effective, classroom-centered education
system is the cost of paperwork compliance;
‘‘(3) paperwork places a burden on teachers
and administrators who must complete Federal and
State forms to apply for Federal funds and absorbs
time and money which otherwise would be spent on
students;
‘‘(4) the Education at a Crossroads Report re-
leased in 1998 by the Education Subcommittee on
Oversight and Investigations states that require-
ments by the Department of Education result in
more than $48,600,000 hours of paperwork per
year; and
‘‘(5) paperwork distracts from the mission of
schools, encumbers teachers, and administrators
with nonacademic responsibilities, and competes with
teaching and classroom activities which promote
learning and achievement.
‘‘(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that Federal and State educational agencies should
reduce the paperwork requirements placed on schools,
teachers, principles, and other administrators.
832
‘‘SEC. 8602. PROHIBITION ON MANDATORY NATIONAL CER-
TIFICATION 
OF 
TEACHERS 
AND 
PARA-
PROFESSIONALS.
‘‘(a) PROHIBITION
ON MANDATORY TESTING
OR
CERTIFICATION.—Notwithstanding any other provision of
law, the Secretary is prohibited from using Federal funds
to plan, develop, implement, or administer any mandatory
national teacher or paraprofessional test or certification.
‘‘(b) PROHIBITION ON WITHHOLDING FUNDS.—The
Secretary is prohibited from withholding funds from any
State or local educational agency if such State or local
educational agency fails to adopt a specific method of
teacher or paraprofessional certification.
‘‘SEC. 8603. PROHIBITION ON FEDERALLY SPONSORED
TESTING.
‘‘Notwithstanding any other provision of Federal law,
no funds provided under this Act to the Secretary or to
the recipient of any award may be used to develop, pilot
test, field test, implement, administer, or distribute any
federally sponsored national test in reading, mathematics,
or any other subject, unless specifically and explicitly au-
thorized by law.
‘‘SEC. 8604. SENSE OF CONGRESS REGARDING MEMORIALS.
‘‘It is the sense of Congress that—
‘‘(1) the saying of a prayer, the reading of a
scripture, or the performance of religious music, as
833
part of a memorial service that is held on the cam-
pus of a public elementary or secondary school in
order to honor the memory of any person slain on
that campus is not objectionable under this Act; and
‘‘(2) the design and construction of any memo-
rial which includes religious symbols, motifs, or
sayings that is placed on the campus of a public ele-
mentary or secondary school in order to honor the
memory of any person slain on that campus is not
objectionable under this Act.
‘‘PART G—EVALUATIONS
‘‘SEC. 8651. EVALUATIONS.
‘‘(a) RESERVATION OF FUNDS.—Except as provided
in subsections (b) and (c), the Secretary may reserve not
more than 0.5 percent of the amount appropriated to
carry out each categorical program and demonstration
project authorized under this Act—
‘‘(1) to conduct—
‘‘(A) comprehensive evaluations of the pro-
gram or project; and
‘‘(B) studies of the effectiveness of the pro-
grams or project and its administrative impact
on schools and local educational agencies;
‘‘(2) to evaluate the aggregate short- and long-
term effects and cost efficiencies across Federal pro-
834
grams assisted or authorized under this Act and re-
lated Federal preschool, elementary and secondary
programs under any other Federal law; and
‘‘(3) to increase the usefulness of evaluations of
grant recipients in order to ensure the continuous
progress of the program or project by improving the
quality, timeliness, efficiency, and utilization of in-
formation relating to performance under the pro-
gram or project.
‘‘(b) TITLE I EXCLUDED.—The Secretary may not
reserve under subsection (a) funds appropriated to carry
out any program authorized under title I.
‘‘(c) EVALUATION ACTIVITIES AUTHORIZED ELSE-
WHERE.—
‘‘(1) IN GENERAL.—If, under any other provi-
sion of this Act (other than title I), funds are au-
thorized to be reserved or used for evaluation activi-
ties with respect to a program or project, the Sec-
retary may not reserve additional funds under this
section for the evaluation of such program or
project.’’.
SEC. 802. COMPREHENSIVE REGIONAL ASSISTANCE CEN-
TERS.
(a) IN GENERAL.—Part A of title XIII (20 U.S.C.
8621 et seq.)—
835
(1) is transferred to the end of title VIII, as
amended by section 801; and
(2) is redesignated as part H.
(b) REDESIGNATION OF SECTIONS.—Sections 13101
through 13105 are redesignated as sections 8701 through
8705, respectively.
(c) CONFORMING AMENDMENTS.—
(1) REQUIREMENTS.—Section 8702 (as redesig-
nated by subsection (b)) is amended—
(A) by striking ‘‘section 13101(a)’’ and in-
serting ‘‘section 8701(a)’’; and
(B) in paragraph (7), by striking ‘‘section
13201’’ and inserting ‘‘section 8751’’.
(2) 
MAINTENANCE
OF
SERVICE.—Section
8703(b) (as redesignated by subsection (b)) is
amended—
(A) in paragraph (1), by striking ‘‘section
13102’’ and inserting ‘‘section 8702’’; and
(B) in paragraph (2)—
(i) by striking ‘‘section 13201’’ and
inserting ‘‘section 8751’’; and
(ii) by striking ‘‘section 13401’’ and
inserting ‘‘section 8851’’.
836
(3) TRANSITION.—Section 8704(b)(1) (as re-
designated by subsection (b)) is amended by striking
‘‘section 13105’’ and inserting ‘‘section 8705’’.
SEC. 803. NATIONAL DIFFUSION NETWORK.
(a) IN GENERAL.—Part B of title XIII (20 U.S.C.
8651 et seq.)—
(1) is transferred to the end of title VIII, as
amended by section 802; and
(2) is redesignated as part I.
(b) REDESIGNATION OF SECTIONS.—Sections 13201
and 13202 are redesignated as sections 8751 and 8752,
respectively.
(c) CONFORMING AMENDMENT.—Section 8751(f)(4)
(as redesignated by subsection (b)) is amended by striking
‘‘section 13401’’ and inserting ‘‘section 8851’’.
SEC. 804. EISENHOWER REGIONAL MATHEMATICS AND
SCIENCE EDUCATION CONSORTIA.
(a) IN GENERAL.—Part C of title XIII (20 U.S.C.
8671 et seq.)—
(1) is transferred to the end of title VIII, as
amended by section 803; and
(2) is redesignated as part J.
(b) REDESIGNATION OF SECTIONS.—Sections 13301
through 13308 are redesignated as sections 8801 through
8808, respectively.
837
(c) CONFORMING AMENDMENTS.—
(1) 
GRANT
AUTHORIZATION.—Section
8801(a)(3) (as redesignated by subsection (b)) is
amended by striking ‘‘section 13308’’ and inserting
‘‘section 8808’’.
(2) USE OF FUNDS.—Section 8802 (as redesig-
nated by subsection (b)) is amended—
(A) by striking ‘‘section 13304’’ and in-
serting ‘‘section 8804’’;
(B) 
in 
paragraph 
(2), 
by 
striking
‘‘13301(a)(1)’’ and inserting ‘‘8801(a)(1)’’; and
(C) 
in 
paragraph 
(3), 
by 
striking
‘‘13301(a)(1)’’ and inserting ‘‘8801(a)(1)’’.
(3) PAYMENTS.—Section 8805 (as redesignated
by subsection (b)) is amended in each of subsections
(a) and (b) by striking ‘‘section 13303’’ and insert-
ing ‘‘section 8803’’.
(4) EVALUATION.—Section 8806(a) (as redesig-
nated by subsection (b)) is amended by striking
‘‘section 14701’’ and inserting ‘‘section 8651’’.
(5) DEFINITIONS.—Section 8807(4) (as redes-
ignated by subsection (b)) is amended by striking
‘‘section 13301’’ and inserting ‘‘section 8801’’.
838
SEC. 805. TECHNOLOGY-BASED TECHNICAL ASSISTANCE.
(a) IN GENERAL.—Part D of title XIII (20 U.S.C.
8701)—
(1) is transferred to the end of title VIII, as
amended by section 804; and
(2) is redesignated as part K.
(b) REDESIGNATION OF SECTION.—Sections 13401
is redesignated as section 8851.
TITLE IX—MISCELLANEOUS
PROVISIONS
PART A—AMENDMENTS TO OTHER ACTS
Supart 1—National Education Statistics Act
SEC. 901. AMENDMENT TO NESA.
Section 411 of the National Education Statistics Act
of 1994 (20 U.S.C. 9010) is amended—
(1) by amending subsection (b)(2) to read as
follows:
‘‘(2) STATE ASSESSMENTS.—(A) The Commis-
sioner, in carrying out the National Assessment—
‘‘(i) may conduct State assessments of stu-
dent achievement in grades 4, 8, and 12; and
‘‘(ii) shall conduct annual State assess-
ments of student achievement in reading and
mathematics in grades 4 and 8 in order for
States to carry out section 1111(c)(2) of the
839
Elementary and Secondary Education Act of
1965.
‘‘(B)(i) Except as provided in clause (ii), a par-
ticipating State shall review and give permission for
the release of results from any test of its students
administered as a part of a State assessment prior
to the release of the data. Refusal by a State to re-
lease its data shall not restrict the release of data
from other States that have approved the release of
that data.
‘‘(ii) A State participating in the annual State
assessments of its students in reading and mathe-
matics in grades 4 and 8 shall be deemed to have
given its permission to release its data if it has an
approved plan under section 1111 of the Elementary
and Secondary Education Act of 1965.’’; and
(2) by amending subsection (d) to read as fol-
lows:
‘‘(d) PARTICIPATION.—
‘‘(1) NATIONAL
AND
REGIONAL
PARTICIPA-
TION.—Participation in the national and regional as-
sessments by State and local educational agencies
shall be voluntary.
840
‘‘(2) STATE PARTICIPATION.—Participation in
assessments made on a State basis shall be vol-
untary.’’.
Subpart 2—Homeless Education
SEC. 911. SHORT TITLE.
This subpart may be cited as the ‘‘McKinney-Vento
Homeless Education Assistance Improvements Act of
2001’’.
SEC. 912. FINDINGS.
Congress makes the following findings:
(1) An estimated 1,000,000 children in the
United States will experience homelessness in 2001.
(2) Homelessness has a devastating impact on
the educational opportunities of children and youth.
Homeless children go hungry at more than twice the
rate of other children, have four times the rate of
delayed development, and are twice as likely to re-
peat a grade.
(3) Despite steady progress in school enroll-
ment and attendance resulting from the passage in
1987 of the Stewart B. McKinney Homeless Assist-
ance Act, homeless students still face numerous bar-
riers to education, including residency, guardianship
and registration requirements, delays in the transfer
841
of school records, and inadequate transportation
service.
(4) School is one of the few secure factors in
the lives of homeless children and youth, providing
stability, structure, and accomplishment during a
time of great upheaval.
(5) Homeless children and youth require edu-
cational stability and the opportunity to maintain
regular and consistent attendance in school, so that
they acquire the skills necessary to escape poverty
and lead productive, healthy lives as adults.
(6) In the 14 years since the passage of the
McKinney Act, educators and service providers have
learned much about policies and practices which help
remove the barriers described.
SEC. 913. PURPOSE.
The purpose of this subpart is to strengthen subtitle
B of title VII of Public Law 100–77 (42 U.S.C. 11431
et seq.) by amending it—
(1) to include innovative practices, proven to be
effective in helping homeless children and youth en-
roll, attend, and succeed in school; and
(2) to help ensure that all children and youth
impacted by the loss of fixed, regular, and adequate
842
housing receive a quality education and secure their
chance for a brighter future.
SEC. 914. EDUCATION FOR HOMELESS CHILDREN AND
YOUTH.
Subtitle B of title VII of Public Law 100–77 (42
U.S.C. 11431 et seq.) is amended to read as follows:
‘‘Subtitle B—Education for
Homeless Children and Youth
‘‘SEC. 721. STATEMENT OF POLICY.
‘‘It is the policy of the Congress that—
‘‘(1) each State educational agency ensure that
each child of a homeless individual and each home-
less youth has equal access to the same free, public
education, including a public preschool 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
compulsory school attendance laws or other laws,
regulations, practices, or policies that may act as a
barrier to the enrollment, attendance, or success in
school of homeless children and youth, the State re-
view and undertake steps to revise such laws, regula-
tions, practices, or policies to ensure that homeless
children and youth are afforded the same free, pub-
843
lic education as provided to other children and
youth;
‘‘(3) homelessness alone is not sufficient reason
to separate students from the mainstream school en-
vironment; and
‘‘(4) homeless children and youth must have ac-
cess to the education and other services that such
children and youth need to ensure that such children
and youth have an opportunity to meet the same
challenging State student performance standards to
which all students are held.
‘‘SEC. 722. GRANTS FOR STATE AND LOCAL ACTIVITIES FOR
THE EDUCATION OF HOMELESS CHILDREN
AND YOUTH.
‘‘(a) GENERAL AUTHORITY.—The Secretary is au-
thorized 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
submits an application to the Secretary at such time, in
such manner, and containing or accompanied by such in-
formation as the Secretary may reasonably require.
‘‘(c) ALLOCATION AND RESERVATIONS.—