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formance agreement or on the date on which the State edu-
cational agency provides to the Secretary all data and in-
formation required under the performance agreement,
whichever is later, except that in no case may there be a
renewal under this section unless that data and information
is provided to the Secretary not later than 60 days after
the end of the original term of the performance agreement.
‘‘SEC. 5711. EVALUATION.
‘‘(a) STUDY.—The Secretary is authorized to award
a grant to the Comptroller General to conduct a study ex-
amining the effectiveness of the demonstration program
under this part. The study shall examine—
‘‘(1) the performance of the disaggregated groups
of students described in section 1111(b)(3)(K) prior to
entering into the performance agreement as compared
to the performance of such groups after completion of
the performance agreement on State assessments and
the National Assessment of Educational Progress;
‘‘(2) the dropout data (as required by section
1111(j)) prior to entering into the performance agree-
ment as compared to the dropout data after comple-
tion of the performance agreement;
‘‘(3) the ways in which the State educational
agencies and local educational agencies entering into
performance agreements distributed and used Federal
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education resources as compared to the ways in which
such agencies distributed and used Federal education
resources prior to entering the performance agree-
ment;
‘‘(4) a comparison of the data described in para-
graphs (1), (2), and (3) between State educational
agencies and local educational agencies entering into
performance agreements compared to other State edu-
cational agencies and local educational agencies to
determine the effectiveness of the program; and
‘‘(5) any other factors that are relevant to evalu-
ating the effectiveness of the program.
‘‘(b) REPORT.—The Secretary shall make public the
results of the evaluation carried out under subsection (a)
and shall report the results of the study to the Committee
on Health, Education, Labor, and Pensions of the Senate
and the Committee on Education and the Workforce of the
House of Representatives.
‘‘SEC. 5712. TRANSMITTAL OF REPORTS TO CONGRESS.
‘‘Not later than 60 days after the Secretary receives
an annual report described in section 5704(a)(1)(K), the
Secretary shall make the report available to the Committee
on Education and the Workforce of the House of Representa-
tives and the Committee on Health, Education, Labor, and
Pensions of the Senate.’’.
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SEC. 502. EMPOWERING PARENTS.
(a) SHORT TITLE.—This section may be cited as the
‘‘Empowering Parents Act of 2001’’.
(b) PUBLIC SCHOOL CHOICE.—
(1) SHORT TITLE OF SUBSECTION.—This sub-
section may be referred to as the ‘‘Enhancing Public
Education Through Choice Act’’.
(2) PURPOSES.—The purposes of this subsection
are—
(A) to prevent children from being con-
signed to, or left trapped in, failing schools;
(B) to ensure that parents of children in
failing public schools have the choice to send
their children to higher performing public
schools, including public charter schools;
(C) to support and stimulate improved pub-
lic school performance through increased public
school competition and increased Federal finan-
cial assistance;
(D) to provide parents with more choices
among public school options; and
(E) to assist local educational agencies with
low-performing schools to implement districtwide
public school choice programs or enter into part-
nerships with other local educational agencies to
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offer students interdistrict or statewide public
school choice programs.
(3) PUBLIC SCHOOL CHOICE PROGRAMS.—Part
A of title V, as amended in section 501, is further
amended by adding at the end the following:
‘‘Subpart 4—Voluntary Public School Choice
Programs
‘‘SEC. 5161. DEFINITIONS.
‘‘In this subpart:
‘‘(1) CHARTER
SCHOOL.—The term ‘charter
school’ has the meaning given such term in section
5120.
‘‘(2) LOWEST PERFORMING SCHOOL.—The term
‘lowest performing school’ means a public school that
has failed to make adequate yearly progress, as de-
scribed in section 1111, for 2 or more years.
‘‘(3) POVERTY
LINE.—The term ‘poverty line’
means the income official 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))) applicable to a family of the size involved,
for the most recent fiscal year for which satisfactory
data are available.
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‘‘(4) PUBLIC SCHOOL.—The term ‘public school’
means a charter school, a public elementary school,
and a public secondary school.
‘‘(5) STUDENT IN POVERTY.—The term ‘student
in poverty’ means a student from a family with an
income below the poverty line.
‘‘SEC. 5162. GRANTS.
‘‘The Secretary shall make grants, on a competitive
basis, to State educational agencies and local educational
agencies, to enable the agencies, including the agencies serv-
ing the lowest performing schools, to implement programs
of universal public school choice.
‘‘SEC. 5163. USE OF FUNDS.
‘‘(a) IN GENERAL.—An agency that receives a grant
under this subpart shall use the funds made available
through the grant to pay for the expenses of implementing
a public school choice program, including—
‘‘(1) the expenses of providing transportation
services or the cost of transportation to eligible chil-
dren;
‘‘(2) the cost of making tuition transfer pay-
ments to public schools to which students transfer
under the program;
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‘‘(3) the cost of capacity-enhancing activities
that enable high-demand public schools to accommo-
date transfer requests under the program;
‘‘(4) the cost of carrying out public education
campaigns to inform students and parents about the
program;
‘‘(5) administrative costs; and
‘‘(6) other costs reasonably necessary to imple-
ment the program.
‘‘(b) SUPPLEMENT, NOT SUPPLANT.—Funds made
available under this subpart shall supplement, and not sup-
plant, State and local public funds expended to provide
public school choice programs for eligible individuals.
‘‘SEC. 5164. REQUIREMENTS.
‘‘(a) INCLUSION IN PROGRAM.—In carrying out a pub-
lic school choice program under this subpart, a State edu-
cational agency or local educational agency shall—
‘‘(1) allow all students attending public schools
within the State or school district involved to attend
the public school of their choice within the State or
school district, respectively;
‘‘(2) provide all eligible students in all grade lev-
els equal access to the program;
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‘‘(3) include in the program charter schools and
any other public school in the State or school district,
respectively; and
‘‘(4) develop the program with the involvement of
parents and others in the community to be served,
and individuals who will carry out the program, in-
cluding administrators, teachers, principals, and
other staff.
‘‘(b) NOTICE.—In carrying out a public school choice
program under this subpart, a State educational agency or
local educational agency shall give parents of eligible stu-
dents prompt notice of the existence of the program and
the program’s availability to such parents, and a clear ex-
planation of how the program will operate.
‘‘(c) TRANSPORTATION.—In carrying out a public
school choice program under this subpart, a State edu-
cational agency or local educational agency shall provide
eligible students with transportation services or the cost of
transportation to and from the public schools, including
charter schools, that the students choose to attend under this
program.
‘‘(d) 
NONDISCRIMINATION.—Notwithstanding 
sub-
section (a)(3), no public school may discriminate on the
basis of race, color, religion, sex, national origin, sexual ori-
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entation, or disability in providing programs and activities
under this subpart.
‘‘(e) PARALLEL ACCOUNTABILITY.—Each State edu-
cational agency or local educational agency receiving a
grant under this subpart for a program through which a
charter school receives assistance shall hold the school ac-
countable for adequate yearly progress in improving stu-
dent performance as described in title I and as established
in the school’s charter, including the use of the standards
and assessments established under title I.
‘‘SEC. 5165. APPLICATIONS.
‘‘(a) IN GENERAL.—To be eligible to receive a grant
under this subpart, a State educational agency or local edu-
cational agency shall submit an application to the Sec-
retary at such time, in such manner, and containing such
information as the Secretary may require.
‘‘(b) CONTENTS.—Each application for a grant under
this subpart shall include—
‘‘(1) a description of the program for which the
agency seeks funds and the goals for such program;
‘‘(2) a description of how the program will be co-
ordinated with, and will complement and enhance,
other related Federal and non-Federal projects;
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‘‘(3) if the program is carried out by a partner-
ship, the name of each partner and a description of
the partner’s responsibilities;
‘‘(4) a description of the policies and procedures
the agency will use to ensure—
‘‘(A) accountability for results, including
goals and performance indicators; and
‘‘(B) that the program is open and acces-
sible to, and will promote high academic stand-
ards for, all students; and
‘‘(5) such other information as the Secretary
may require.
‘‘SEC. 5166. PRIORITIES.
‘‘In making grants under this subpart, the Secretary
shall give priority to—
‘‘(1) first, those State educational agencies and
local educational agencies serving the lowest per-
forming schools;
‘‘(2) second, those State educational agencies and
local educational agencies serving the highest percent-
age of students in poverty; and
‘‘(3) third, those State educational agencies or
local educational agencies forming a partnership that
seeks to implement an interdistrict approach to car-
rying out a public school choice program.
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‘‘SEC. 5167. EVALUATIONS, TECHNICAL ASSISTANCE, AND
DISSEMINATION.
‘‘(a) IN GENERAL.—From the amount made available
to carry out this subpart for any fiscal year, the Secretary
may reserve not more than 5 percent to carry out evalua-
tions, to provide technical assistance, and to disseminate
information.
‘‘(b) EVALUATIONS.—In carrying out evaluations
under subsection (a), the Secretary may use the amount re-
served under subsection (a) to carry out 1 or more evalua-
tions of State and local programs assisted under this sub-
part, which shall, at a minimum, address—
‘‘(1) how, and the extent to which, the programs
promote educational equity and excellence; and
‘‘(2) the extent to which public schools carrying
out the programs are—
‘‘(A) held accountable to the public;
‘‘(B) effective in improving public edu-
cation; and
‘‘(C) open and accessible to all students.
‘‘SEC. 5168. AUTHORIZATION OF APPROPRIATIONS.
‘‘There is authorized to be appropriated to carry out
this subpart $125,000,000 for fiscal year 2002 and each
subsequent fiscal year.’’.
(c) PUBLIC CHARTER SCHOOL FACILITIES FINANC-
ING.—
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(1) SHORT TITLE OF SUBSECTION.—This sub-
section may be cited as the ‘‘Charter Schools Equity
Act’’.
(2) PURPOSES.—The purposes of this subsection
are—
(A) to help eliminate the barriers that pre-
vent charter school developers from accessing the
credit markets, by encouraging lending institu-
tions to lend funds to charter schools on terms
more similar to the terms typically extended to
traditional public schools; and
(B) to encourage the States to provide sup-
port to charter schools for facilities financing in
an amount more nearly commensurate to the
amount the States have typically provided for
traditional public schools.
(3) CHARTER SCHOOLS.—
(A) 
CONFORMING
AMENDMENT.—Section
5112(e)(1), as amended in section 501, is further
amended by inserting ‘‘(other than funds re-
served to carry out section 5115(b))’’ after ‘‘sec-
tion 5121’’.
(B) MATCHING GRANTS TO STATES.—Sec-
tion 5115, as amended in section 501, is further
amended—
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(i) in subsection (a), by inserting
‘‘(other than funds reserved to carry out
subsection (b))’’ after ‘‘this subpart’’;
(ii) by redesignating subsection (b) as
subsection (c); and
(iii) by inserting after subsection (a)
the following:
‘‘(b) PER-PUPIL FACILITIES AID PROGRAMS.—
‘‘(1) GRANTS.—
‘‘(A) IN GENERAL.—From the amount made
available to carry out this subsection under sec-
tion 5121 for any fiscal year, the Secretary shall
make grants, on a competitive basis, to States to
pay for the Federal share of the cost of estab-
lishing or enhancing, and administering, pro-
grams in which the States make payments, on a
per-pupil basis, to charter schools to assist the
schools in financing school facilities (referred to
in this subsection as ‘per-pupil facilities aid pro-
grams’).
‘‘(B) PERIOD.—The Secretary shall award
grants under this subsection for periods of not
more than 5 years.
‘‘(C) FEDERAL SHARE.—The Federal share
of the cost described in subparagraph (A) for a
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per-pupil facilities aid program shall be not
more than—
‘‘(i) 90 percent of the cost, for the first
fiscal year for which the program receives
assistance under this subsection or its pred-
ecessor authority;
‘‘(ii) 80 percent in the second such
year;
‘‘(iii) 60 percent in the third such
year;
‘‘(iv) 40 percent in the fourth such
year; and
‘‘(v) 20 percent in the fifth such year.
‘‘(2) USE OF FUNDS.—
‘‘(A) IN GENERAL.—A State that receives a
grant under this subsection shall use the funds
made available through the grant to establish or
enhance, and administer, a per-pupil facilities
aid program for charter schools in the State.
‘‘(B) EVALUATIONS; 
TECHNICAL
ASSIST-
ANCE; DISSEMINATION.—From the amount made
available to a State through a grant under this
subsection for a fiscal year, the State may re-
serve not more than 5 percent of the amount to
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carry out evaluations, to provide technical assist-
ance, and to disseminate information.
‘‘(C) SUPPLEMENT, NOT SUPPLANT.—Funds
made available under this subsection shall sup-
plement, and not supplant, State and local pub-
lic funds expended to provide per-pupil facilities
aid programs, operations financing programs, or
other programs, for charter schools.
‘‘(3) REQUIREMENTS.—
‘‘(A) VOLUNTARY PARTICIPATION.—No State
may be required to participate in a program
carried out under this subsection.
‘‘(B) STATE LAW.—To be eligible to receive
a grant under this subsection, a State shall es-
tablish or enhance, and administer, a per-pupil
facilities aid program for charter schools in the
State, that—
‘‘(i) is specified in State law;
‘‘(ii) provides annual financing, on a
per-pupil basis, for charter school facilities;
and
‘‘(iii) provides financing that is dedi-
cated solely for funding the facilities.
‘‘(4) APPLICATIONS.—To be eligible to receive a
grant under this subsection, a State shall submit an
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application to the Secretary at such time, in such
manner, and containing such information as the Sec-
retary may require.
‘‘(5) PRIORITIES.—In making grants under this
subsection, the Secretary shall give priority to States
that meet the criteria described in paragraph (2), and
subparagraphs (A), (B), and (C) of paragraph (3), of
section 5112(e).
‘‘(6) EVALUATIONS, TECHNICAL
ASSISTANCE,
AND DISSEMINATION.—
‘‘(A) IN GENERAL.—From the amount made
available to carry out this subsection under sec-
tion 5121 for any fiscal year, the Secretary may
carry out evaluations, provide technical assist-
ance, and disseminate information.
‘‘(B) EVALUATIONS.—In carrying out eval-
uations under subparagraph (A), the Secretary
may carry out 1 or more evaluations of State
programs assisted under this subsection, which
shall, at a minimum, address—
‘‘(i) how, and the extent to which, the
programs promote educational equity and
excellence; and
‘‘(ii) the extent to which charter schools
supported through the programs are—
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‘‘(I) held accountable to the pub-
lic;
‘‘(II) effective in improving public
education; and
‘‘(III) open and accessible to all
students.’’.
(C) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—Section 5121, as amended in section
501, is further amended to read as follows:
‘‘SEC. 5121. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) IN GENERAL.—There are authorized to be appro-
priated to carry out this subpart $400,000,000 for fiscal
year 2002 and such sums as may be necessary for each of
the 4 succeeding fiscal years.
‘‘(b) RESERVATION.—For fiscal year 2002, the Sec-
retary shall reserve, from the amount appropriated under
subsection (a)—
‘‘(1) $200,000,000 to carry out this subpart,
other than section 5115(b); and
‘‘(2) the remainder to carry out section
5115(b).’’.
(4) CREDIT ENHANCEMENT INITIATIVES.—Sub-
part 1 of part A of title V, as amended in section 501,
is further amended—
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(A) by inserting after the subpart heading
the following:
‘‘CHAPTER I—CHARTER SCHOOL PROGRAMS’’;
(B) by striking ‘‘this subpart’’ each place it
appears and inserting ‘‘this chapter’’; and
(C) by adding at the end the following:
‘‘CHAPTER II—CREDIT ENHANCEMENT INITIA-
TIVES TO PROMOTE CHARTER SCHOOL FA-
CILITY ACQUISITION, CONSTRUCTION, AND
RENOVATION
‘‘SEC. 5126. PURPOSE.
‘‘The purpose of this chapter is to provide grants to
eligible entities to permit the entities to establish or improve
innovative credit enhancement initiatives that assist char-
ter schools to address the cost of acquiring, constructing,
and renovating facilities.
‘‘SEC. 5126A. GRANTS TO ELIGIBLE ENTITIES.
‘‘(a) GRANTS FOR INITIATIVES.—
‘‘(1) IN GENERAL.—The Secretary shall use 100
percent of the amount available to carry out this
chapter to eligible entities having applications ap-
proved under this chapter to carry out innovative ini-
tiatives for assisting charter schools to address the
cost of acquiring, constructing, and renovating facili-
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ties by enhancing the availability of loans or bond fi-
nancing.
‘‘(2) NUMBER OF GRANTS.—The Secretary shall
award not fewer than 3 of the grants.
‘‘(b) GRANTEE SELECTION.—
‘‘(1) 
DETERMINATION.—The 
Secretary 
shall
evaluate each application submitted, and shall deter-
mine which applications are of sufficient quality to
merit approval and which are not.
‘‘(2) MINIMUM
GRANTS.—The Secretary shall
award at least—
‘‘(A) 1 grant to an eligible entity described
in section 5126I(2)(A);
‘‘(B) 1 grant to an eligible entity described
in section 5126I(2)(B); and
‘‘(C) 1 grant to an eligible entity described
in section 5126I(2)(C),
if applications are submitted that permit the Sec-
retary to award the grants without approving an ap-
plication that is not of sufficient quality to merit ap-
proval.
‘‘(c) GRANT CHARACTERISTICS.—Grants under this
chapter shall be in sufficient amounts, and for initiatives
of sufficient scope and quality, so as to effectively enhance
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credit for the financing of charter school acquisition, con-
struction, or renovation.
‘‘(d) SPECIAL RULE.—In the event the Secretary deter-
mines that the funds available to carry out this chapter are
insufficient to permit the Secretary to award not fewer than
3 grants in accordance with subsections (a) through (c)—
‘‘(1) subsections (a)(2) and (b)(2) shall not
apply; and
‘‘(2) the Secretary may determine the appro-
priate number of grants to be awarded in accordance
with subsections (a)(1), (b)(1), and (c).
‘‘SEC. 5126B. APPLICATIONS.
‘‘(a) IN GENERAL.—To receive a grant under this
chapter, an eligible entity shall submit to the Secretary an
application in such form as the Secretary may reasonably
require.
‘‘(b) CONTENTS.—An application submitted under
subsection (a) shall contain—
‘‘(1) a statement identifying the activities pro-
posed to be undertaken with funds received under this
chapter, including how the applicant will determine
which charter schools will receive assistance, and how
much and what types of assistance the charter schools
will receive;
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‘‘(2) a description of the involvement of charter
schools in the application’s development and the de-
sign of the proposed activities;
‘‘(3) a description of the applicant’s expertise in
capital market financing;
‘‘(4) a description of how the proposed activities
will—
‘‘(A) leverage private sector financing cap-
ital, to obtain the maximum amount of private
sector financing capital, relative to the amount
of government funding used, to assist charter
schools; and
‘‘(B) otherwise enhance credit available to
charter schools;
‘‘(5) a description of how the applicant possesses
sufficient expertise in education to evaluate the likeli-
hood of success of a charter school program for which
facilities financing is sought;
‘‘(6) in the case of an application submitted by
a State governmental entity, a description of the ac-
tions that the entity has taken, or will take, to ensure
that charter schools within the State receive the fund-
ing the schools need to have adequate facilities; and
‘‘(7) such other information as the Secretary
may reasonably require.
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‘‘SEC. 5126C. CHARTER SCHOOL OBJECTIVES.
‘‘An eligible entity receiving a grant under this chap-
ter shall use the funds received through the grant, and de-
posited in the reserve account established under section
5126D(a), to assist 1 or more charter schools to access pri-
vate sector capital to accomplish 1 or more of the following
objectives:
‘‘(1) The acquisition (by purchase, lease, dona-
tion, or otherwise) of an interest (including an inter-
est held by a third party for the benefit of a charter
school) in improved or unimproved real property that
is necessary to commence or continue the operation of
a charter school.
‘‘(2) The construction of new facilities, or the
renovation, repair, or alteration of existing facilities,
necessary to commence or continue the operation of a
charter school.
‘‘(3) The payment of start-up costs, including the
costs of training teachers and purchasing materials
and equipment, including instructional materials and
computers, for a charter school.
‘‘SEC. 5126D. RESERVE ACCOUNT.
‘‘(a) IN GENERAL.—For the purpose of assisting char-
ter schools to accomplish the objectives described in section
5126C, an eligible entity receiving a grant under this chap-
ter shall deposit the funds received through the grant (other
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than funds used for administrative costs in accordance with
section 5126E) in a reserve account established and main-
tained by the entity for that purpose. The entity shall make
the deposit in accordance with State and local law and may
make the deposit directly or indirectly, and alone or in col-
laboration with others.
‘‘(b) USE OF FUNDS.—Amounts deposited in such ac-
count shall be used by the entity for 1 or more of the fol-
lowing purposes:
‘‘(1) Guaranteeing, insuring, and reinsuring
bonds, notes, evidences of debt, loans, and interests
therein, the proceeds of which are used for an objective
described in section 5126C.
‘‘(2) Guaranteeing and insuring leases of per-
sonal and real property for such an objective.
‘‘(3) Facilitating financing for such an objective
by identifying potential lending sources, encouraging
private lending, and carrying out other similar ac-
tivities that directly promote lending to, or for the
benefit of, charter schools.
‘‘(4) Facilitating the issuance of bonds by char-
ter schools, or by other public entities for the benefit
of charter schools, for such an objective, by providing
technical, administrative, and other appropriate as-
sistance (including the recruitment of bond counsel,
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underwriters, and potential investors and the consoli-
dation of multiple charter school projects within a
single bond issue).
‘‘(c) INVESTMENT.—Funds received under this chapter
and deposited in the reserve account shall be invested in
obligations issued or guaranteed by the United States or
a State, or in other similarly low-risk securities.
‘‘(d) REINVESTMENT OF EARNINGS.—Any earnings on
funds received under this chapter shall be deposited in the
reserve account established under subsection (a) and used
in accordance with subsection (b).
‘‘SEC. 5126E. LIMITATION ON ADMINISTRATIVE COSTS.
‘‘An eligible entity that receives a grant under this
chapter may use not more than 0.25 percent of the funds
received through the grant for the administrative costs of
carrying out the entity’s responsibilities under this chapter.
‘‘SEC. 5126F. AUDITS AND REPORTS.
‘‘(a) FINANCIAL RECORD MAINTENANCE AND AUDIT.—
The financial records of each eligible entity receiving a
grant under this chapter shall be maintained in accordance
with generally accepted accounting principles and shall be
subject to an annual audit by an independent public ac-
countant.
‘‘(b) REPORTS.—
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‘‘(1) GRANTEE ANNUAL REPORTS.—Each eligible
entity receiving a grant under this chapter annually
shall submit to the Secretary a report of the entity’s
operations and activities under this chapter.
‘‘(2) CONTENTS.—Each such annual report shall
include—
‘‘(A) a copy of the most recent financial
statements, and any accompanying opinion on
such statements, prepared by the independent
public accountant auditing the financial records
of the eligible entity;
‘‘(B) a copy of any report made on an
audit of the financial records of the eligible enti-
ty that was conducted under subsection (a) dur-
ing the reporting period;
‘‘(C) an evaluation by the eligible entity of
the effectiveness of the entity’s use of the Federal
funds provided under this chapter in leveraging
private funds;
‘‘(D) a listing and description of the charter
schools served by the entity with such Federal
funds during the reporting period;
‘‘(E) a description of the activities carried
out by the eligible entity to assist charter schools
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in meeting the objectives set forth in section
5126C; and
‘‘(F) a description of the characteristics of
lenders and other financial institutions partici-
pating in the activities undertaken by the eligi-
ble entity under this chapter during the report-
ing period.
‘‘(3) SECRETARIAL
REPORT.—The Secretary
shall review the reports submitted under paragraph
(1) and shall provide a comprehensive annual report
to Congress on the activities conducted under this
chapter.
‘‘SEC. 5126G. NO FULL FAITH AND CREDIT FOR GRANTEE
OBLIGATIONS.
‘‘No financial obligation of an eligible entity entered
into pursuant to this chapter (such as an obligation under
a guarantee, bond, note, evidence of debt, or loan) shall be
an obligation of, or guaranteed in any respect by, the
United States. The full faith and credit of the United States
is not pledged to the payment of funds that may be required
to be paid under any obligation made by an eligible entity
pursuant to any provision of this chapter.
‘‘SEC. 5126H. RECOVERY OF FUNDS.
‘‘(a) IN GENERAL.—The Secretary, in accordance with
chapter 37 of title 31, United States Code, shall collect—
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‘‘(1) all of the funds in a reserve account estab-
lished by an eligible entity under section 5126D(a) if
the Secretary determines, not earlier than 2 years
after the date on which the entity first received funds
under this chapter, that the entity has failed to make
substantial progress in carrying out the purposes de-
scribed in section 5126D(b); or
‘‘(2) all or a portion of the funds in a reserve ac-
count established by an eligible entity under section
5126D(a) if the Secretary determines that the eligible
entity has permanently ceased to use all or a portion
of the funds in such account to accomplish any pur-
pose described in section 5126D(b).
‘‘(b) EXERCISE OF AUTHORITY.—The Secretary shall
not exercise the authority provided in subsection (a) to col-
lect from any eligible entity any funds that are being prop-
erly used to achieve 1 or more of the purposes described
in section 5126D(b).
‘‘(c) PROCEDURES.—The provisions of sections 451,
452, and 458 of the General Education Provisions Act (20
U.S.C. 1234 et seq.) shall apply to the recovery of funds
under subsection (a).
‘‘(d) CONSTRUCTION.—This section shall not be con-
strued to impair or affect the authority of the Secretary
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to recover funds under part D of the General Education
Provisions Act (20 U.S.C. 1234 et seq.).
‘‘SEC. 5126I. DEFINITIONS.
‘‘In this chapter:
‘‘(1) CHARTER
SCHOOL.—The term ‘charter
school’ has the meaning given such term in section
5120.
‘‘(2) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means—
‘‘(A) a public entity, such as a State or
local governmental entity;
‘‘(B) a private nonprofit entity; or
‘‘(C) a consortium of entities described in
subparagraphs (A) and (B).
‘‘SEC. 5126J. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this chapter $200,000,000 for fiscal year 2002 and each sub-
sequent fiscal year.’’.
TITLE VI—PARENTAL INVOLVE-
MENT AND ACCOUNTABILITY
SEC. 601. PARENTAL INVOLVEMENT AND ACCOUNTABILITY.
Title VI (20 U.S.C. 7301 et seq.) is amended to read
as follows:
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‘‘TITLE VI—PARENTAL INVOLVE-
MENT AND ACCOUNTABILITY
‘‘PART A—PARENTAL ASSISTANCE
‘‘SEC. 6101. PARENTAL INFORMATION AND RESOURCE CEN-
TERS.
‘‘(a) PURPOSE.—The purpose of this part is—
‘‘(1) to provide leadership, technical assistance,
and financial support to nonprofit organizations (in-
cluding statewide nonprofit organizations) and local
educational agencies to help the organizations and
agencies implement successful and effective parental
involvement policies, programs, and activities that
lead to improvements in student performance;
‘‘(2) to strengthen partnerships among parents
(including parents of children from birth through age
5), teachers, principals, administrators, and other
school personnel in meeting the educational needs of
children;
‘‘(3) to develop and strengthen the relationship
between parents and the school;
‘‘(4) to further the developmental progress pri-
marily of children assisted under this part;
‘‘(5) to coordinate activities funded under this
part with parental involvement initiatives funded
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under section 1118 and other provisions of this Act;
and
‘‘(6) to provide a comprehensive approach to im-
proving student learning through coordination and
integration of Federal, State, and local services and
programs.
‘‘(b) GRANTS AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary is authorized
to award grants in each fiscal year to nonprofit orga-
nizations (including statewide nonprofit organiza-
tions), and nonprofit organizations in consortia with
local educational agencies, to establish school-linked
or school-based parental information and resource
centers that provide comprehensive training, informa-
tion, and support to—
‘‘(A) parents of children enrolled in elemen-
tary schools and secondary schools;
‘‘(B) individuals who work with the parents
described in subparagraph (A);
‘‘(C) State educational agencies, local edu-
cational agencies, schools, organizations that
support family-school partnerships (such as par-
ent-teacher associations and Parents as Teachers
organizations), and other organizations that
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carry out parent education and family involve-
ment programs; and
‘‘(D) parents of children from birth through
age 5.
‘‘(2) AWARD RULE.—In awarding grants under
this part, the Secretary shall ensure that such grants
are distributed in all geographic regions of the United
States.
‘‘(c) CONSTRUCTION.—Nothing in this section shall be
construed to prohibit a parental information and resource
center from—
‘‘(1) having its employees or agents meet with a
parent at a site that is not on school grounds; or
‘‘(2) working with another agency that serves
children.
‘‘SEC. 6102. APPLICATIONS.
‘‘(a) GRANTS APPLICATIONS.—
‘‘(1) IN GENERAL.—Each nonprofit organization
(including a statewide nonprofit organization) or
nonprofit organization in consortium with a local
educational agency that desires a grant under this
part shall submit an application to the Secretary at
such time and in such manner as the Secretary shall
require.
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‘‘(2) CONTENTS.—Each application submitted
under paragraph (1), at a minimum, shall include
assurances that the organization or consortium will—
‘‘(A)(i) be governed by a board of directors
the membership of which includes parents; or
‘‘(ii) be an organization or consortium that
represents the interests of parents;
‘‘(B) establish a special advisory committee
the membership of which includes—
‘‘(i) 
parents 
described 
in 
section
6101(b)(1)(A), who shall constitute a major-
ity of the members of the special advisory
committee;
‘‘(ii) representatives of education pro-
fessionals with expertise in improving serv-
ices for disadvantaged children; and
‘‘(iii) representatives of local elemen-
tary schools and secondary schools who may
include students and representatives from
local youth organizations;
‘‘(C) use at least 1⁄2 of the funds provided
under this part in each fiscal year to serve areas
with high concentrations of low-income families
in order to serve parents who are severely educa-
tionally or economically disadvantaged;
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‘‘(D) operate a center of sufficient size,
scope, and quality to ensure that the center is
adequate to serve the parents in the area;
‘‘(E) serve both urban and rural areas;
‘‘(F) design a center that meets the unique
training, information, and support needs of par-
ents described in section 6101(b)(1)(A), particu-
larly such parents who are educationally or eco-
nomically disadvantaged;
‘‘(G) demonstrate the capacity and expertise
to conduct the effective training, information
and support activities for which assistance is
sought;
‘‘(H) network with—
‘‘(i) local educational agencies and
schools;
‘‘(ii) parents of children enrolled in el-
ementary schools and secondary schools;
‘‘(iii) parent training and information
centers assisted under section 682 of the In-
dividuals with Disabilities Education Act;
‘‘(iv) clearinghouses; and
‘‘(v) other organizations and agencies;
‘‘(I) focus on serving parents described in
section 6101(b)(1)(A) who are parents of low-in-
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come, minority, and limited English proficient,
children;
‘‘(J) use at least 1⁄2 of the funds received
under this part to establish, expand, or operate
Parents as Teachers programs or Home Instruc-
tion for Preschool Youngsters programs or other
early childhood parent education programs;
‘‘(K) provide assistance to parents in such
areas as understanding State and local stand-
ards and measures of student and school per-
formance;
‘‘(L) work with State and local educational
agencies to determine parental needs and deliv-
ery of services;
‘‘(M) identify and coordinate Federal,
State, and local services and programs that sup-
port improved student learning, including pro-
grams supported under this Act, violence preven-
tion programs, nutrition programs, housing pro-
grams, Head Start, adult education, and job
training; and
‘‘(N) work with and foster partnerships
with other agencies that provide programs and
deliver services described in subparagraph (M) to
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make such programs and services more accessible
to children and families.
‘‘(b) GRANT RENEWAL.—For each fiscal year after the
first fiscal year an organization or consortium receives as-
sistance under this part, the organization or consortium
shall demonstrate in the application submitted for such fis-
cal year after the first fiscal year that a portion of the serv-
ices provided by the organization or consortium is sup-
ported through non-Federal contributions, which contribu-
tions may be in cash or in kind.
‘‘SEC. 6103. USES OF FUNDS.
‘‘(a) IN GENERAL.—Grant funds received under this
part shall be used—
‘‘(1) to assist parents in participating effectively
in their children’s education and to help their chil-
dren meet State and local standards, such as assisting
parents—
‘‘(A) to engage in activities that will im-
prove student performance, including under-
standing the accountability systems in place
within their State educational agency and local
educational agency and understanding their
children’s educational performance in compari-
son to State and local standards;
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‘‘(B) to provide followup support for their
children’s educational achievement;
‘‘(C) to communicate effectively with teach-
ers, principals, counselors, administrators, and
other school personnel;
‘‘(D) to become active participants in the
development, implementation, and review of
school-parent compacts, parent involvement poli-
cies, and school planning and improvement;
‘‘(E) to participate in the design and provi-
sion of assistance to students who are not mak-
ing adequate educational progress;
‘‘(F) to participate in State and local deci-
sionmaking; and
‘‘(G) to train other parents (such as train-
ing related to Parents as Teachers activities);
‘‘(2) to obtain information about the range of op-
tions, programs, services, and resources available at
the national, State, and local levels to assist parents
and school personnel who work with parents;
‘‘(3) to help the parents learn and use the tech-
nology applied in their children’s education;
‘‘(4) to plan, implement, and fund activities for
parents that coordinate the education of their children
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with other Federal, State, and local services and pro-
grams that serve their children or their families;
‘‘(5) to provide support for State or local edu-
cational personnel if the participation of such per-
sonnel will further the activities assisted under the
grant; and
‘‘(6) to coordinate and integrate early childhood
programs with school age programs.
‘‘(b) PERMISSIVE ACTIVITIES.—Grant funds received
under this part may be used to assist schools with activities
such as—
‘‘(1) developing and implementing their plans or
activities under sections 1118 and 1119; and
‘‘(2) developing and implementing school im-
provement plans, including addressing problems that
develop in the implementation of sections 1118 and
1119.
‘‘(3) providing information about assessment
and individual results to parents in a manner and
a language the family can understand;
‘‘(4) coordinating the efforts of Federal, State,
and local parent education and family involvement
initiatives; and
‘‘(5) providing training, information, and sup-
port to—
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‘‘(A) State educational agencies;
‘‘(B) local educational agencies and schools,
especially those local educational agencies and
schools that are low performing; and
‘‘(C) organizations that support family-
school partnerships.
‘‘(c) GRANDFATHER CLAUSE.—The Secretary shall use
funds made available under this part to continue to make
grant or contract payments to each entity that was awarded
a multiyear grant or contract under title IV of the Goals
2000: Educate America Act (as such title was in effect on
the day before the date of enactment of the Better Education
for Students and Teachers Act) for the duration of the grant
or contract award.
‘‘SEC. 6104. TECHNICAL ASSISTANCE.
‘‘The Secretary shall provide technical assistance, by
grant or contract, for the establishment, development, and
coordination of parent training, information, and support
programs and parental information and resource centers.
‘‘SEC. 6105. REPORTS.
‘‘(a) INFORMATION.—Each organization or consortium
receiving assistance under this part shall submit to the Sec-
retary, on an annual basis, information concerning the pa-
rental information and resource centers assisted under this
part, including—
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‘‘(1) the number of parents (including the num-
ber of minority and limited English proficient par-
ents) who receive information and training;
‘‘(2) the types and modes of training, informa-
tion, and support provided under this part;
‘‘(3) the strategies used to reach and serve par-
ents of minority and limited English proficient chil-
dren, parents with limited literacy skills, and other
parents in need of the services provided under this
part;
‘‘(4) the parental involvement policies and prac-
tices used by the center and an evaluation of whether
such policies and practices are effective in improving
home-school communication, student achievement, stu-
dent and school performance, and parental involve-
ment in school planning, review, and improvement;
and
‘‘(5) the effectiveness of the activities that local
educational agencies and schools are carrying out
with regard to parental involvement and other activi-
ties assisted under this Act that lead to improved stu-
dent achievement and improved student and school
performance.
‘‘(b) DISSEMINATION.—The Secretary annually shall
disseminate, widely to the public and to Congress, the infor-
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‘‘(B) will provide the results of each assess-
ment referred to in subparagraph (A) to—
‘‘(i) the committee of parents described
in subsection (c)(4); and
‘‘(ii) the community served by the local
educational agency; and
‘‘(C) is responding to findings of any pre-
vious assessments that are similar to the assess-
ments described in subparagraph (A).
‘‘(c) 
ASSURANCES.—Each 
application 
submitted
under subsection (a) shall include assurances that—
‘‘(1) the local educational agency will use funds
received under this subpart only to supplement the
funds that, in the absence of the Federal funds made
available under this subpart, such agency would make
available for the education of Indian children, and
not to supplant such funds;
‘‘(2) the local educational agency will prepare
and submit to the Secretary such reports, in such
form and containing such information, as the Sec-
retary may require to—
‘‘(A) carry out the functions of the Sec-
retary under this subpart; and
‘‘(B) determine the extent to which activi-
ties carried out with funds provided to the local