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‘‘(D) Providing technical assistance and 
other forms of assistance to local educational 
agencies that— 
‘‘(i) educate limited English proficient 
children; and 
‘‘(ii) are not receiving a subgrant from 
a State under this subpart. 
‘‘(E) Providing bonuses to subgrantees 
whose performance has been exceptional in terms 
of the speed with which children enrolled in the 
subgrantee’s programs and activities attain 
English language proficiency and meet chal-
lenging State academic content standards and 
challenging State student academic achievement 
standards. 
‘‘(3) LIMITATION ON ADMINISTRATIVE COSTS.— 
In carrying out paragraph (2), a State that receives 
a grant under subsection (a) may expend not more 
than 2 percent of its allotment under subsection (c) 
for the purposes described in paragraph (2)(C). 
‘‘(c) DETERMINATION OF ALLOTMENT AMOUNTS.— 
‘‘(1) RESERVATIONS.—From the amount appro-
priated under section 3110 to carry out this subpart 
for each fiscal year, the Secretary shall reserve— 
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‘‘(A) .5 percent of such amount for pay-
ments to entities that are considered to be local 
educational agencies under section 3106(a) for 
activities approved by the Secretary; 
‘‘(B) .5 percent of such amount for pay-
ments to outlying areas, to be allotted in accord-
ance with their respective needs for assistance 
under this subpart, as determined by the Sec-
retary, for activities, approved by the Secretary, 
consistent with this part; and 
‘‘(C) 1⁄2 of 1 percent of such amount for 
evaluation of the programs under this part and 
for dissemination of best practices. 
‘‘(2) CONTINUATION
AWARDS.—Before making 
awards to States under paragraph (3) for any fiscal 
year, the Secretary shall make continuation awards 
to recipients of grants under subpart 1 of part A of 
the Bilingual Education Act, as that Act was in effect 
on the day before the effective date of the No Child 
Left Behind Act of 2001, in order to allow such re-
cipients to continue to receive funds in accordance 
with the terms of their grant until the date on which 
the grant period otherwise would have terminated if 
the No Child Left Behind Act of 2001 had not been 
enacted. 
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‘‘(3) STATE ALLOTMENTS.— 
‘‘(A) IN GENERAL.—From the amount ap-
propriated under section 3110 to carry out this 
subpart for each fiscal year that remains after 
carrying out paragraphs (1) and (2), the Sec-
retary shall allot to each of the 50 States, the 
District of Columbia, and the Commonwealth of 
Puerto Rico an amount which bears the same 
ratio to such amount as the total number of chil-
dren and youth who are limited English pro-
ficient and who reside in such State bears to the 
total number of such children and youth residing 
in all such States that, in accordance with sec-
tion 3107, submit to the Secretary an applica-
tion for the year. 
‘‘(B) REALLOTMENT.— 
‘‘(i) IN
GENERAL.—If any State de-
scribed in subparagraph (A) does not sub-
mit to the Secretary an application for a 
fiscal year, or submits an application (or 
any modification to an application) that 
the Secretary, after reasonable notice and 
opportunity for a hearing, determines does 
not satisfy the requirements of this subpart, 
the Secretary— 
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‘‘(I) shall endeavor to make the 
State’s allotment available on a com-
petitive basis to specially qualified 
agencies within the State that satisfy 
the requirements applicable to eligible 
entities under section 3108 and any 
additional requirements that may be 
imposed by the Secretary; and 
‘‘(II) shall reallot any portion of 
such allotment remaining after the ap-
plication of subclause (I) to the re-
maining States in accordance with 
subparagraph (A). 
‘‘(ii) REQUIREMENTS
ON
SPECIALLY 
QUALIFIED AGENCIES.—If a specially quali-
fied agency receives funds under this sub-
paragraph, the requirements of subsection 
(b) shall not apply to the agency. In lieu of 
those requirements, the specially qualified 
agency shall expend the funds for the au-
thorized activities described in section 
3108(b) and otherwise shall satisfy the re-
quirements of section 3108. 
‘‘(C) SPECIAL RULE FOR PUERTO RICO.— 
The total amount allotted to Puerto Rico for any 
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fiscal year under subparagraph (A) shall not ex-
ceed .5 percent of the total amount allotted to all 
States for that fiscal year. 
‘‘(4) USE OF DATA FOR DETERMINATIONS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), for the purpose of deter-
mining the number of children and youth who 
are limited English proficient and reside in a 
State and in all States for each fiscal year, the 
Secretary shall use the most recent satisfactory 
data available from the Bureau of the Census 
and the American Community Survey available 
from the Department of Commerce. 
‘‘(B) EXCEPTION.—If the data described in 
subparagraph (A) are more than 4 years old or 
unavailable, the Secretary shall use the most re-
cent satisfactory data provided by the States, 
such as enrollment data and data that reflect the 
number of students taking the English pro-
ficiency assessments in the States. 
‘‘(5) NO
REDUCTION
PERMITTED
BASED
ON 
TEACHING METHOD.—The Secretary may not reduce 
a State’s allotment based on the State’s selection of 
any method of instruction as its preferred method of 
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teaching the English language to children who are 
limited English proficient. 
‘‘SEC. 3106. NATIVE AMERICAN AND ALASKA NATIVE CHIL-
DREN IN SCHOOL. 
‘‘(a) ELIGIBLE ENTITIES.—For the purpose of car-
rying out programs under this part for individuals served 
by elementary, secondary, and postsecondary schools oper-
ated predominately for Native American or Alaska Native 
children, the following shall be considered to be a local edu-
cational agency: 
‘‘(1) An Indian tribe. 
‘‘(2) A tribally sanctioned educational authority. 
‘‘(3) A Native Hawaiian or Native American 
Pacific Islander native language educational organi-
zation. 
‘‘(4) An elementary or secondary school that is 
operated or funded by the Bureau of Indian Affairs, 
or a consortium of such schools. 
‘‘(5) An elementary or secondary school operated 
under a contract with or grant from the Bureau of 
Indian Affairs, in consortium with another such 
school or a tribal or community organization. 
‘‘(6) An elementary or secondary school operated 
by the Bureau of Indian Affairs and an institution 
of higher education, in consortium with an elemen-
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tary or secondary school operated under a contract 
with or grant from the Bureau of Indian Affairs or 
a tribal or community organization. 
‘‘(b) SUBMISSION
OF APPLICATIONS
FOR ASSIST-
ANCE.—Notwithstanding any other provision of this part, 
an entity that is considered to be a local educational agency 
under subsection (a), and that desires to submit an applica-
tion for Federal financial assistance under this subpart, 
shall submit the application to the Secretary. In all other 
respects, such an entity shall be eligible for a subgrant 
under this subpart on the same basis as any other local 
educational agency. 
‘‘SEC. 3107. APPLICATIONS BY STATES. 
‘‘For purposes of section 3105, an application sub-
mitted by a State for a grant under such section for a fiscal 
year is in accordance with this section if the application— 
‘‘(1) describes the process that the State will use 
in making competitive subgrants to eligible entities 
under section 3109(c); 
‘‘(2) contains an agreement that, in carrying out 
this subpart, the State will address the needs of school 
systems of all sizes and in all geographic areas, in-
cluding rural and urban schools; 
‘‘(3) contains an agreement that competitive sub-
grants to eligible entities under section 3109(c) shall 
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be of sufficient size and scope to allow such entities 
to carry out high quality education programs for lim-
ited English proficient children; 
‘‘(4) contains an agreement that the State will 
coordinate its programs and activities under this sub-
part with its other programs and activities under this 
Act and other Acts, as appropriate; 
‘‘(5) contains an agreement that the State— 
‘‘(A) shall monitor the progress of students 
enrolled in programs and activities receiving as-
sistance under this subpart in attaining English 
proficiency and in attaining challenging State 
academic content standards and challenging 
State student academic achievement standards; 
‘‘(B) shall establish standards and bench-
marks for English language development that are 
aligned with State academic content and 
achievement standards; and 
‘‘(C) will ensure that eligible entities com-
ply with section 3104 to annually test children 
in English who have been in the United States 
for 3 or more consecutive years; 
‘‘(6) contains an assurance that the State will 
develop high-quality annual assessments to measure 
English language proficiency and require eligible en-
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•HR 1 RH1&2 
tities receiving a subgrant under this subpart annu-
ally to assess the English proficiency of all children 
with limited English proficiency participating in a 
program funded under this subpart; 
‘‘(7) contains an agreement that the State will 
develop annual performance objectives for raising the 
level of English proficiency of each limited English 
proficient student, and that these objectives shall in-
clude percentage increases in performance on annual 
assessments in reading, writing, speaking, and listen-
ing comprehension as compared to the preceding 
school year; and 
‘‘(8) contains an agreement that the State will 
require eligible entities receiving a subgrant under 
this subpart to use the subgrant in ways that will 
build such recipient’s capacity to continue to offer 
high-quality English language instruction and pro-
grams which assist limited English proficient chil-
dren in attaining challenging State academic content 
standards and challenging State student academic 
achievement standards once assistance under this sub-
part is no longer available. 
‘‘SEC. 3108. SUBGRANTS TO ELIGIBLE ENTITIES. 
‘‘(a) PURPOSES OF SUBGRANTS.—A State may make 
a subgrant to an eligible entity from funds received by the 
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State under this subpart only if the entity agrees to expend 
the funds to improve the education of limited English pro-
ficient children and their families, through the acquisition 
of English and the attainment of challenging State aca-
demic content standards and challenging State student aca-
demic achievement standards, using approaches and meth-
odologies based on scientifically based reading research and 
sound research and theory on teaching limited English pro-
ficient children, by— 
‘‘(1) developing and implementing new English 
language and academic content instructional pro-
grams for children who are limited English pro-
ficient, including programs of early childhood edu-
cation and kindergarten through 12th grade edu-
cation; 
‘‘(2) carrying out highly focused, innovative, lo-
cally designed projects to expand or enhance existing 
English language and academic content instruction 
programs for limited English proficient children; 
‘‘(3) implementing, within an individual school, 
schoolwide programs for restructuring, reforming, and 
upgrading all relevant programs and operations re-
lating to English language and academic content in-
struction for limited English proficient students; or 
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‘‘(4) implementing, within the entire jurisdiction 
of a local educational agency, agencywide programs 
for restructuring, reforming, and upgrading all rel-
evant programs and operations relating to English 
language and academic content instruction for lim-
ited English proficient students. 
‘‘(b) AUTHORIZED SUBGRANTEE ACTIVITIES.— 
‘‘(1) IN GENERAL.—Subject to paragraph (2), a 
State may make a subgrant to an eligible entity from 
funds received by the State under this subpart in 
order that the eligible entity may achieve one of the 
purposes described in subsection (a) by undertaking 
one or more of the following activities to improve the 
understanding, and use, of the English language, 
based on a child’s learning skills and attainment of 
challenging State academic content standards and 
challenging State student academic achievement 
standards: 
‘‘(A) Upgrading program objectives and ef-
fective instructional strategies. 
‘‘(B) Improving the instruction program for 
limited English proficient students by identi-
fying, acquiring, and upgrading curricula, in-
structional materials, educational software, and 
assessment procedures. 
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‘‘(C) Providing— 
‘‘(i) tutorials and academic or voca-
tional education for limited English pro-
ficient children; and 
‘‘(ii) intensified instruction. 
‘‘(D) Developing and implementing elemen-
tary or secondary school English language in-
structional programs that are coordinated with 
other relevant programs and services. 
‘‘(E) Providing professional development to 
classroom teachers, principals, administrators, 
and other school or community-based organiza-
tional personnel to improve the instruction and 
assessment of children who are limited English 
proficient children. 
‘‘(F) Improving the English language pro-
ficiency and academic performance of limited 
English proficient children. 
‘‘(G) Improving the instruction of limited 
English proficient children by providing for the 
acquisition or development of education tech-
nology or instructional materials, access to and 
participation in electronic networks for mate-
rials, training and communications, and incor-
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•HR 1 RH1&2 
poration of such resources in curricula and pro-
grams, such as those funded under this subpart. 
‘‘(H) Developing tutoring programs for lim-
ited English proficient children that provide 
early intervention and intensive instruction in 
order to improve academic achievement, to in-
crease graduation rates among limited English 
proficient children, and to prepare students for 
transition as soon as possible into classrooms 
where instruction is not tailored for limited 
English proficient children. 
‘‘(I) Providing family literacy services and 
parent outreach and training activities to lim-
ited English proficient children and their fami-
lies to improve their English language skills and 
assist parents in helping their children to im-
prove their academic performance. 
‘‘(J) Other activities that are consistent 
with the purposes of this part. 
‘‘(2) MOVING CHILDREN OUT OF SPECIALIZED 
CLASSROOMS.—Any program or activity undertaken 
by an eligible entity using a subgrant from a State 
under this subpart shall be designed to assist students 
enrolled in the program or activity to attain English 
proficiency and meet challenging State academic con-
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•HR 1 RH1&2 
tent standards and challenging State student aca-
demic achievement standards as soon as possible, but 
not later than after 3 consecutive years of attendance 
in United States schools (excluding schools in Puerto 
Rico), and to move into a classroom where instruction 
is not tailored for limited English proficient children. 
‘‘(c) SELECTION OF METHOD OF INSTRUCTION.—To 
receive a subgrant from a State under this subpart, an eligi-
ble entity shall select one or more methods or forms of in-
struction to be used in the programs and activities under-
taken by the entity to assist limited English proficient chil-
dren to attain English proficiency and meet challenging 
State academic content standards and challenging State 
student academic achievement standards. Such selection 
shall be consistent with sections 3134 and 3135. 
‘‘(d) DURATION OF SUBGRANTS.—The duration of a 
competitive subgrant made by a State under section 3109(c) 
shall be determined by the State in its discretion. 
‘‘(e) APPLICATIONS BY ELIGIBLE ENTITIES.— 
‘‘(1) IN GENERAL.—To receive a subgrant from 
a State under this subpart, an eligible entity shall 
submit an application to the State at such time, in 
such form, and containing such information as the 
State may require. 
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‘‘(2) REQUIRED DOCUMENTATION.—The applica-
tion shall— 
‘‘(A) describe the programs and activities 
proposed to be developed, implemented, and ad-
ministered under the subgrant; 
‘‘(B) describe how the eligible entity will use 
the subgrant funds to satisfy the requirement in 
subsection (b)(2); and 
‘‘(C) describe how the eligible entity, using 
the disaggregated results of the student assess-
ments required under section 1111(b)(4) and 
other measures available, will annually review 
the progress of elementary and secondary schools 
within its jurisdiction, or served by it, to deter-
mine if such schools are making the adequate 
yearly progress necessary to ensure that limited 
English proficient students attending the schools 
will meet the State’s proficient level of perform-
ance on the State assessment described in section 
1111(b)(4), and will hold such schools account-
able for making such progress. 
‘‘(3) REQUIREMENTS FOR APPROVAL.—The ap-
plication shall contain assurances that— 
‘‘(A) the eligible entity will use qualified 
personnel who have appropriate training and 
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professional credentials in teaching English to 
children who are limited English proficient, and 
who are proficient in English, including written 
and oral communication skills; 
‘‘(B) if the eligible entity includes one or 
more local educational agencies, each such agen-
cy is complying with section 3103(b) prior to, 
and throughout, each school year; 
‘‘(C) the eligible entity annually will assess 
the English proficiency of all children with lim-
ited English proficiency participating in pro-
grams funded under this subpart; 
‘‘(D) the eligible entity has based its pro-
posal on scientifically based reading research 
and sound research and theory on teaching lim-
ited English proficient children; 
‘‘(E) the eligible entity has described in the 
application how students enrolled in the pro-
grams and activities proposed in the application 
will be proficient in English after 3 academic 
years of enrollment; 
‘‘(F) the eligible entity will ensure that pro-
grams will enable children to speak, read, write, 
and comprehend the English language and meet 
challenging State academic content standards 
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and challenging State student academic achieve-
ment standards; and 
‘‘(G) the eligible entity is not in violation 
of any State law, including State constitutional 
law, regarding the education of limited English 
proficient children, consistent with sections 3134 
and 3135. 
‘‘(4) QUALITY.—For the purposes of awarding 
competitive subgrants under section 3109(c), a State 
shall consider the quality of each application and en-
sure that it is of sufficient size and scope to meet the 
purposes of this subpart. 
‘‘SEC. 3109. DISTRIBUTION OF SUBGRANTS TO ELIGIBLE EN-
TITIES. 
‘‘(a) IN GENERAL.—A State shall expend at least 95 
percent of its allotment under section 3105(c) each fiscal 
year for the purpose of making subgrants to eligible entities 
within the State that have approved applications, in ac-
cordance with subsections (b) and (c). 
‘‘(b) FORMULA SUBGRANTS.— 
‘‘(1) RESERVATION.—75 percent of the amount 
expended by a State for subgrants under this subpart 
shall be reserved for subgrants to eligible entities de-
scribed in subsection (a) in which, during the fiscal 
year for which the subgrant is to be made, the number 
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of limited English proficient children and youth who 
are enrolled in public and nonpublic elementary or 
secondary schools located in geographic areas under 
the jurisdiction of, or served by, such entities is equal 
to at least 500 students, or 3 percent of the total num-
ber of children and youth enrolled in such schools 
during such fiscal year, whichever is less. 
‘‘(2) ALLOTMENT.—From the amount reserved 
under paragraph (1), the State shall allot to each eli-
gible entity described in such paragraph a percentage 
based on the ratio of— 
‘‘(A) the number of limited English pro-
ficient children and youth who are enrolled in 
public and nonpublic elementary or secondary 
schools located in geographic areas under the ju-
risdiction of, or served by, such entity during the 
fiscal year for which the allotment is to be made; 
to 
‘‘(B) the number of such children and youth 
in all such eligible entities. 
‘‘(3) REALLOTMENT.—Whenever a State deter-
mines that an allotment made to an eligible entity 
under this subsection for a fiscal year will not be used 
by the entity for the purpose for which it was made, 
the State shall, in accordance with such rules as it 
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deems appropriate, reallot such amount, consistent 
with paragraph (2), to other eligible entities in the 
State for carrying out that purpose. 
‘‘(c) COMPETITIVE SUBGRANTS.—25 percent of the 
amount expended by a State for subgrants under this sub-
part shall be reserved for competitive subgrants to eligible 
entities described in subsection (a) that the State deter-
mines— 
‘‘(1) have experienced significant increases, as 
compared to the previous 2 years, in the percentage 
or number of children and youth with limited English 
proficiency, including recent immigrant children, 
that have enrolled in public and nonpublic elemen-
tary or secondary schools in the geographic areas 
under the jurisdiction of, or served by, such entities 
during the fiscal year for which the subgrant is to be 
made; or 
‘‘(2) do not satisfy the requirements of subsection 
(b)(1) but have significant needs for programs under 
this subpart. 
‘‘SEC. 3110. AUTHORIZATION OF APPROPRIATIONS. 
‘‘For the purpose of carrying out this subpart, there 
are authorized to be appropriated $750,000,000 for fiscal 
year 2002 and such sums as may be necessary for each of 
the 4 succeeding fiscal years. 
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‘‘Subpart 2—Administration 
‘‘SEC. 3121. EVALUATIONS. 
‘‘(a) IN GENERAL.—Each eligible entity that receives 
a subgrant from a State under subpart 1 shall provide the 
State, at the conclusion of every second fiscal year during 
which the subgrant is received, with an evaluation, in a 
form prescribed by the State, of— 
‘‘(1) the programs and activities conducted by 
the entity with funds received under subpart 1 during 
the 2 immediately preceding fiscal years; 
‘‘(2) the progress made by students in learning 
the English language and meeting challenging State 
academic content standards and challenging State 
student academic achievement standards; 
‘‘(3) the number and percentage of students in 
the programs and activities attaining English lan-
guage proficiency by the end of each school year, as 
determined by a valid and reliable assessment of 
English proficiency; and 
‘‘(4) the progress made by students in meeting 
challenging State academic content standards and 
challenging State student academic achievement 
standards for each of the 2 years after such students 
are no longer receiving services under this part. 
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‘‘(b) USE OF EVALUATION.—An evaluation provided 
by an eligible entity under subsection (a) shall be used by 
the entity and the State— 
‘‘(1) for improvement of programs and activities; 
‘‘(2) to determine the effectiveness of programs 
and activities in assisting children who are limited 
English proficient to attain English proficiency (as 
measured consistent with subsection (d)) and meet 
challenging State academic content standards and 
challenging State student academic achievement 
standards; and 
‘‘(3) in determining whether or not to continue 
funding for specific programs or projects. 
‘‘(c) EVALUATION COMPONENTS.—An evaluation pro-
vided by an eligible entity under subsection (a) shall in-
clude— 
‘‘(1) an evaluation of whether students enrolling 
in a program or activity conducted by the entity with 
funds received under subpart 1— 
‘‘(A) have attained English proficiency and 
are meeting challenging State academic content 
academic and challenging State student aca-
demic achievement standards; and 
‘‘(B) have achieved a working knowledge of 
the English language that is sufficient to permit 
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•HR 1 RH1&2 
them to perform, in English, in a classroom that 
is not tailored to limited English proficient chil-
dren; and 
‘‘(2) such other information as the State may re-
quire. 
‘‘(d) EVALUATION MEASURES.—In prescribing the 
form of an evaluation provided by an entity under sub-
section (a), a State shall approve evaluation measures, as 
applicable, for use under subsection (c) that are designed 
to assess— 
‘‘(1) oral language proficiency in kindergarten; 
‘‘(2) oral language proficiency, including speak-
ing and listening skills, in first grade; 
‘‘(3) both oral language proficiency, including 
speaking and listening skills, and reading and writ-
ing proficiency in grades 2 and higher; and 
‘‘(4) attainment of challenging State student 
academic achievement standards. 
‘‘SEC. 3122. REPORTING REQUIREMENTS. 
‘‘(a) STATES.—Based upon the evaluations provided 
to a State under section 3121, each State that receives a 
grant under subpart 1 shall prepare and submit every sec-
ond year to the Secretary a report on programs and activi-
ties undertaken by the State under such subpart and the 
effectiveness of such programs and activities in improving 
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the education provided to children who are limited English 
proficient. 
‘‘(b) SECRETARY.—Every second year, the Secretary 
shall prepare and 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 on— 
‘‘(1) programs and activities undertaken by 
States under subpart 1 and the effectiveness of such 
programs and activities in improving the education 
provided to children who are limited English pro-
ficient; 
‘‘(2) the types of instructional programs used 
under subpart 1 to teach limited English proficient 
children; 
‘‘(3) the number of programs or projects, if any, 
that were terminated because they were not able to 
reach program goals; 
‘‘(4) the number of limited English proficient 
children 
served 
under 
subpart 
who 
were 
transitioned out of special instructional programs 
funded under such subpart into classrooms where in-
struction is not tailored for limited English proficient 
children; and 
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‘‘(5) other information gathered from the reports 
submitted under subsection (a). 
‘‘SEC. 3123. COORDINATION WITH RELATED PROGRAMS. 
‘‘In order to maximize Federal efforts aimed at serving 
the educational needs of children and youth of limited 
English proficiency, the Secretary shall coordinate and en-
sure close cooperation with other programs serving lan-
guage-minority and limited English proficient students 
that are administered by the Department and other agen-
cies. 
‘‘Subpart 3—General Provisions 
‘‘SEC. 3131. DEFINITIONS. 
‘‘For purposes of this part: 
‘‘(1) CHILDREN AND YOUTH.—The term ‘children 
and youth’ means individuals aged 3 through 21. 
‘‘(2) COMMUNITY-BASED
ORGANIZATION.—The 
term ‘community-based organization’ means a private 
nonprofit organization of demonstrated effectiveness 
or Indian tribe or tribally sanctioned educational au-
thority which is representative of a community or sig-
nificant segments of a community and which provides 
educational or related services to individuals in the 
community. Such term includes a Native Hawaiian 
or Native American Pacific Islander native language 
educational organization. 
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‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible enti-
ty’ means— 
‘‘(A) one or more local educational agencies; 
or 
‘‘(B) one or more local educational agencies 
in collaboration with an institution of higher 
education, community-based organization, or 
State educational agency. 
‘‘(4) NATIVE HAWAIIAN OR NATIVE AMERICAN PA-
CIFIC ISLANDER NATIVE LANGUAGE EDUCATIONAL OR-
GANIZATION.—The term ‘Native Hawaiian or Native 
American Pacific Islander native language edu-
cational organization’ means a nonprofit organiza-
tion with a majority of its governing board and em-
ployees consisting of fluent speakers of the traditional 
Native American languages used in their educational 
programs and with not less than 5 years successful 
experience in providing educational services in tradi-
tional Native American languages. 
‘‘(5) NATIVE LANGUAGE.—The term ‘native lan-
guage’, when used with reference to an individual 
who is limited English proficient, means the language 
normally used by such individual. 
‘‘(6) SPECIALLY QUALIFIED AGENCY.—The term 
‘specially qualified agency’, when used with respect to 
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a fiscal year, means an eligible entity located in a 
State that, for that year— 
‘‘(A) does not submit to the Secretary an 
application under sections 3105(a) and 3107; or 
‘‘(B) submits an application (or any modi-
fication to an application) that the Secretary, 
after reasonable notice and opportunity for a 
hearing, determines does not satisfy the require-
ments of subpart 1. 
‘‘(7) TRIBALLY SANCTIONED EDUCATIONAL AU-
THORITY.—The term ‘tribally sanctioned educational 
authority’ means— 
‘‘(A) any department or division of edu-
cation operating within the administrative 
structure of the duly constituted governing body 
of an Indian tribe; and 
‘‘(B) any nonprofit institution or organiza-
tion that is— 
‘‘(i) chartered by the governing body of 
an Indian tribe to operate a school de-
scribed in section 3106(a) or otherwise to 
oversee the delivery of educational services 
to members of the tribe; and 
‘‘(ii) approved by the Secretary for the 
purpose of carrying out programs under 
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subpart 1 for individuals served by a school 
described in section 3106(a). 
‘‘SEC. 3132. RULES OF CONSTRUCTION. 
‘‘Nothing in subpart 1 shall be construed— 
‘‘(1) to prohibit a local educational agency from 
serving limited English proficient children and youth 
simultaneously with students with similar edu-
cational needs, in the same educational settings where 
appropriate; 
‘‘(2) to require a State or a local educational 
agency to establish, continue, or eliminate any par-
ticular type of instructional program for limited 
English proficient children; or 
‘‘(3) to limit the preservation or use of Native 
American languages as defined in the Native Amer-
ican Languages Act of 1990. 
‘‘SEC. 3133. LIMITATION ON FEDERAL REGULATIONS. 
‘‘The Secretary shall issue regulations under this part 
only to the extent that such regulations are necessary to 
ensure compliance with the specific requirements of this 
part. 
‘‘SEC. 3134. LEGAL AUTHORITY UNDER STATE LAW. 
‘‘Nothing in this part shall be construed to negate or 
supersede State law, or the legal authority under State law 
of any State agency, State entity, or State public official, 
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over programs that are under the jurisdiction of the State 
agency, entity, or official. 
‘‘SEC. 3135. CIVIL RIGHTS. 
‘‘Nothing in this part shall be construed in a manner 
inconsistent with any Federal law guaranteeing a civil 
right. 
‘‘SEC. 3136. PROGRAMS FOR NATIVE AMERICANS AND PUER-
TO RICO. 
‘‘Programs authorized under subpart 1 that serve Na-
tive American children, Native Pacific Island children, and 
children in the Commonwealth of Puerto Rico, notwith-
standing any other provision of subpart 1, may include 
programs of instruction, teacher training, curriculum devel-
opment, evaluation, and testing designed for Native Amer-
ican children learning and studying Native American lan-
guages and children of limited Spanish proficiency, except 
that a primary outcome of programs serving such children 
shall be increased English proficiency among such chil-
dren.’’. 
SEC. 302. CONFORMING AMENDMENT TO DEPARTMENT OF 
EDUCATION ORGANIZATION ACT. 
(a) IN GENERAL.— 
(1) RENAMING OF OFFICE.—The Department of 
Education Organization Act is amended by striking 
‘‘Office of Bilingual Education and Minority Lan-
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guages Affairs’’ each place such term appears in the 
text and inserting ‘‘Office of Educational Services for 
Limited English Proficient Children’’. 
(2) CONFORMING AMENDMENT.—Section 209 of 
the Department of Education Organization Act is 
amended by striking ‘‘Director of Bilingual Edu-
cation and Minority Languages Affairs,’’ and insert-
ing ‘‘Director of Educational Services for Limited 
English Proficient Children,’’. 
(b) CLERICAL AMENDMENTS.— 
(1) SECTION 209.—The section heading for sec-
tion 209 of the Department of Education Organiza-
tion Act is amended to read as follows: 
‘‘OFFICE OF EDUCATIONAL SERVICES FOR LIMITED 
ENGLISH PROFICIENT CHILDREN’’. 
(2) SECTION 216.—The section heading for sec-
tion 216 of the Department of Education Organiza-
tion Act is amended to read as follows: 
‘‘SEC. 216. OFFICE OF EDUCATIONAL SERVICES FOR LIM-
ITED ENGLISH PROFICIENT CHILDREN.’’. 
(3) TABLE OF CONTENTS.— 
(A) SECTION 209.—The table of contents of 
the Department of Education Organization Act 
is amended by amending the item relating to sec-
tion 209 to read as follows: 
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‘‘Sec. 209. Office of Educational Services for Limited English Proficient Chil-
dren.’’. 
(B) SECTION 216.—The table of contents of 
the Department of Education Organization Act 
is amended by amending the item relating to sec-
tion 216 to read as follows: 
‘‘Sec. 216. Office of Educational Services for Limited English Proficient Chil-
dren.’’. 
PART B—INDIAN AND ALASKA NATIVE 
EDUCATION 
SEC. 311. ELEMENTARY AND SECONDARY EDUCATION ACT 
OF 1965. 
(a) IN GENERAL.—Title III (as amended by section 
301 of this Act) is further amended by adding at the end 
the following new part: 
‘‘PART B—INDIAN AND ALASKA NATIVE 
EDUCATION 
‘‘Subpart 1—Indian Education 
‘‘SEC. 3201. FINDINGS. 
‘‘Congress finds that— 
‘‘(1) the Federal Government has a special re-
sponsibility to ensure that educational programs for 
all American Indian and Alaska Native children and 
adults— 
‘‘(A) are based on high-quality, internation-
ally competitive academic content standards and 
student academic achievement standards and 
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build on Indian culture and the Indian commu-
nity; 
‘‘(B) assist local educational agencies, In-
dian tribes, and other entities and individuals in 
providing Indian students the opportunity to 
achieve such standards; and 
‘‘(C) meet the unique educational and cul-
turally related academic needs of American In-
dian and Alaska Native students; 
‘‘(2) since the date of the enactment of the initial 
Indian Education Act in 1972, the level of involve-
ment of Indian parents in the planning, development, 
and implementation of educational programs that af-
fect such parents and their children has increased sig-
nificantly, and schools should continue to foster such 
involvement; 
‘‘(3) although the number of Indian teachers, ad-
ministrators, and university professors has increased 
since 1972, teacher training programs are not recruit-
ing, training, or retraining a sufficient number of In-
dian individuals as educators to meet the needs of a 
growing Indian student population in elementary, 
secondary, vocational, adult, and higher education; 
‘‘(4) the dropout rate for Indian students is un-
acceptably high; 9 percent of Indian students who 
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were eighth graders in 1988 had dropped out of school 
by 1990; 
‘‘(5) during the period from 1980 to 1990, the 
percentage of Indian individuals living at or below 
the poverty level increased from 24 percent to 31 per-
cent, and the readiness of Indian children to learn is 
hampered by the high incidence of poverty, unemploy-
ment, and health problems among Indian children 
and their families; and 
‘‘(6) research related specifically to the education 
of Indian children and adults is very limited, and 
much of the research is of poor quality or is focused 
on limited local or regional issues. 
‘‘SEC. 3202. PURPOSE. 
‘‘(a) PURPOSE.—It is the purpose of this subpart to 
support the efforts of local educational agencies, Indian 
tribes and organizations, postsecondary institutions, and 
other entities to meet the unique educational and culturally 
related academic needs of American Indians and Alaska 
Natives, so that such students can achieve to the same chal-
lenging State academic achievement standards expected of 
all other students. 
‘‘(b) PROGRAMS.—this subpart carries out the purpose 
described in subsection (a) by authorizing programs of di-
rect assistance for— 
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‘‘(1) meeting the unique educational and cul-
turally related academic needs of American Indians 
and Alaska Natives; 
‘‘(2) the education of Indian children and adults; 
‘‘(3) the training of Indian persons as educators 
and counselors, and in other professions serving In-
dian people; and 
‘‘(4) research, evaluation, data collection, and 
technical assistance. 
‘‘CHAPTER 1—FORMULA GRANTS TO 
LOCAL EDUCATIONAL AGENCIES 
‘‘SEC. 3211. PURPOSE. 
‘‘It is the purpose of this chapter to support local edu-
cational agencies in their efforts to reform elementary and 
secondary school programs that serve Indian students in 
order to ensure that such programs— 
‘‘(1) are based on challenging State academic 
content standards and State student academic 
achievement standards that are used for all students; 
and 
‘‘(2) are designed to assist Indian students in 
meeting those standards and assist the Nation in 
reaching the National Education Goals. 
‘‘SEC. 3212. GRANTS TO LOCAL EDUCATIONAL AGENCIES. 
‘‘(a) IN GENERAL.— 
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‘‘(1) ENROLLMENT
REQUIREMENTS.—A local 
educational agency shall be eligible for a grant under 
this chapter for any fiscal year if the number of In-
dian children eligible under section 3217 and who 
were enrolled in the schools of the agency, and to 
whom the agency provided free public education, dur-
ing the preceding fiscal year— 
‘‘(A) was at least 10; or 
‘‘(B) constituted not less than 25 percent of 
the total number of individuals enrolled in the 
schools of such agency. 
‘‘(2) EXCLUSION.—The requirement of para-
graph (1) shall not apply in Alaska, California, or 
Oklahoma, or with respect to any local educational 
agency located on, or in proximity to, a reservation. 
‘‘(b) INDIAN TRIBES.— 
‘‘(1) IN GENERAL.—If a local educational agency 
that is eligible for a grant under this chapter does not 
establish a parent committee under section 3214(c)(4) 
for such grant, an Indian tribe that represents not 
less than one-half of the eligible Indian children who 
are served by such local educational agency may 
apply for such grant. 
‘‘(2) SPECIAL RULE.—The Secretary shall treat 
each Indian tribe applying for a grant pursuant to 
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•HR 1 RH1&2 
paragraph (1) as if such Indian tribe were a local 
educational agency for purposes of this chapter, ex-
cept that any such tribe is not subject to section 
3214(c)(4), section 3218(c), or section 3219. 
‘‘SEC. 3213. AMOUNT OF GRANTS. 
‘‘(a) AMOUNT OF GRANT AWARDS.— 
‘‘(1) IN GENERAL.—Except as provided in sub-
section (b) and paragraph (2), the Secretary shall al-
locate to each local educational agency which has an 
approved application under this chapter an amount 
equal to the product of— 
‘‘(A) the number of Indian children who are 
eligible under section 3217 and served by such 
agency; and 
‘‘(B) the greater of— 
‘‘(i) the average per pupil expenditure 
of the State in which such agency is located; 
or 
‘‘(ii) 80 percent of the average per 
pupil expenditure in the United States. 
‘‘(2) REDUCTION.—The Secretary shall reduce 
the amount of each allocation determined under para-
graph (1) in accordance with subsection (e). 
‘‘(b) MINIMUM GRANT.— 
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•HR 1 RH1&2 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(e), a local educational agency or an Indian tribe (as 
authorized under section 3212(b)) that is eligible for 
a grant under section 3212, and a school that is oper-
ated or supported by the Bureau of Indian Affairs 
that is eligible for a grant under subsection (d), that 
submits an application that is approved by the Sec-
retary, shall, subject to appropriations, receive a 
grant under this chapter in an amount that is not 
less than $3,000. 
‘‘(2) CONSORTIA.—Local educational agencies 
may form a consortium for the purpose of obtaining 
grants under this chapter. 
‘‘(3) INCREASE.—The Secretary may increase 
the minimum grant under paragraph (1) to not more 
than $4,000 for all grantees if the Secretary deter-
mines such increase is necessary to ensure the quality 
of the programs provided. 
‘‘(c) DEFINITION.—For the purpose of this section, the 
term ‘average per pupil expenditure of a State’ means an 
amount equal to— 
‘‘(1) the sum of the aggregate current expendi-
tures of all the local educational agencies in the State, 
plus any direct current expenditures by the State for 
the operation of such agencies, without regard to the 
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sources of funds from which such local or State ex-
penditures were made, during the second fiscal year 
preceding the fiscal year for which the computation is 
made; divided by 
‘‘(2) the aggregate number of children who were 
included in average daily attendance for whom such 
agencies provided free public education during such 
preceding fiscal year. 
‘‘(d) SCHOOLS OPERATED OR SUPPORTED BY THE BU-
REAU OF INDIAN AFFAIRS.—(1) Subject to subsection (e), 
in addition to the grants awarded under subsection (a), the 
Secretary shall allocate to the Secretary of the Interior an 
amount equal to the product of— 
‘‘(A) the total number of Indian children en-
rolled in schools that are operated by— 
‘‘(i) the Bureau of Indian Affairs; or 
‘‘(ii) an Indian tribe, or an organization 
controlled or sanctioned by an Indian tribal gov-
ernment, for the children of that tribe under a 
contract with, or grant from, the Department of 
the Interior under the Indian Self-Determination 
Act or the Tribally Controlled Schools Act of 
1988; and 
‘‘(B) the greater of— 
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•HR 1 RH1&2 
‘‘(i) the average per pupil expenditure of the 
State in which the school is located; or 
‘‘(ii) 80 percent of the average per pupil ex-
penditure in the United States. 
‘‘(2) Any school described in paragraph (1)(A) that 
wishes to receive an allocation under this chapter shall sub-
mit an application in accordance with section 3214, and 
shall otherwise be treated as a local educational agency for 
the purpose of this chapter, except that such school shall 
not be subject to section 3214(c)(4), section 3218(c), or sec-
tion 3219. 
‘‘(e) RATABLE REDUCTIONS.—If the sums appro-
priated for any fiscal year under section 3252(a) are insuf-
ficient to pay in full the amounts determined for local edu-
cational agencies under subsection (a)(1) and for the Sec-
retary of the Interior under subsection (d), each of those 
amounts shall be ratably reduced. 
‘‘SEC. 3214. APPLICATIONS. 
‘‘(a) APPLICATION
REQUIRED.—Each local edu-
cational agency that desires to receive a grant under this 
chapter shall submit an application to the Secretary at such 
time, in such manner, and containing such information as 
the Secretary may reasonably require. 
‘‘(b) COMPREHENSIVE PROGRAM REQUIRED.—Each 
application submitted under subsection (a) shall include a 
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comprehensive program for meeting the needs of Indian 
children served by the local educational agency, including 
the language and cultural needs of the children, that— 
‘‘(1) provides programs and activities to meet the 
culturally related academic needs of American Indian 
and Alaska Native students; 
‘‘(2)(A) is consistent with State and local plans 
under other provisions of this Act; and 
‘‘(B) includes academic content and student per-
formance goals for such children, and benchmarks for 
attaining such goals, that are based on the chal-
lenging State standards under title I; 
‘‘(3) explains how Federal, State, and local pro-
grams, especially under title I, will meet the needs of 
such students; 
‘‘(4) demonstrates how funds made available 
under this chapter will be used for activities described 
in section 3215; 
‘‘(5) describes the professional development op-
portunities that will be provided, as needed, to ensure 
that— 
‘‘(A) teachers and other school professionals 
who are new to the Indian community are pre-
pared to work with Indian children; and 
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‘‘(B) all teachers who will be involved in 
programs assisted under this chapter have been 
properly trained to carry out such programs; 
and 
‘‘(6) describes how the local educational agen-
cy— 
‘‘(A) will periodically assess the progress of 
all Indian children enrolled in the schools of the 
local educational agency, including Indian chil-
dren who do not participate in programs as-
sisted under this chapter, in meeting the goals 
described in paragraph (2); 
‘‘(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 chapter only to supplement the 
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level of funds that, in the absence of the Federal funds 
made available under this chapter, such agency would 
make available for the education of Indian children, 
and not to supplant such funds; 
‘‘(2) the local educational agency will submit 
such reports to the Secretary, in such form and con-
taining such information, as the Secretary may re-
quire to— 
‘‘(A) carry out the functions of the Sec-
retary under this chapter; and 
‘‘(B) determine the extent to which funds 
provided to the local educational agency under 
this chapter are effective in improving the edu-
cational achievement of Indian students served 
by such agency; 
‘‘(3) the program for which assistance is 
sought— 
‘‘(A) is based on a comprehensive local as-
sessment and prioritization of the unique edu-
cational and culturally related academic needs of 
the American Indian and Alaska Native students 
to whom the local educational agency is pro-
viding an education; 
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‘‘(B) will use the best available talents and 
resources, including individuals from the Indian 
community; and 
‘‘(C) was developed by such agency in open 
consultation with parents of Indian children and 
teachers, and, if appropriate, Indian students 
from secondary schools, including public hear-
ings held by such agency to provide the individ-
uals described in this subparagraph a full oppor-
tunity to understand the program and to offer 
recommendations regarding the program; and 
‘‘(4) the local educational agency developed the 
program with the participation and written approval 
of a committee— 
‘‘(A) that is composed of, and selected by— 
‘‘(i) parents of Indian children in the 
local educational agency’s schools and 
teachers; and 
‘‘(ii) if appropriate, Indian students 
attending secondary schools; 
‘‘(B) a majority of whose members are par-
ents of Indian children; 
‘‘(C) that sets forth such policies and proce-
dures, including policies and procedures relating 
to the hiring of personnel, as will ensure that the 
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program for which assistance is sought will be 
operated and evaluated in consultation with, and 
with the involvement of, parents of the children, 
and representatives of the area, to be served; 
‘‘(D) with respect to an application describ-
ing a schoolwide program in accordance with 
section 3215(c), that has— 
‘‘(i) reviewed in a timely fashion the 
program; and 
‘‘(ii) determined that the program will 
not diminish the availability of culturally 
related activities for American Indian and 
Alaskan Native students; and 
‘‘(E) that has adopted reasonable bylaws for 
the conduct of the activities of the committee and 
abides by such bylaws. 
‘‘SEC. 3215. AUTHORIZED SERVICES AND ACTIVITIES. 
‘‘(a) GENERAL
REQUIREMENTS.—Each local edu-
cational agency that receives a grant under this chapter 
shall use the grant funds, in a manner consistent with the 
purpose specified in section 3211, for services and activities 
that— 
‘‘(1) are designed to carry out the comprehensive 
program of the local educational agency for Indian 
students, and described in the application of the local 
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educational agency submitted to the Secretary under 
section 3214(b); 
‘‘(2) are designed with special regard for the lan-
guage and cultural needs of the Indian students; and 
‘‘(3) supplement and enrich the regular school 
program of such agency. 
‘‘(b) PARTICULAR ACTIVITIES.—The services and ac-
tivities referred to in subsection (a) may include— 
‘‘(1) culturally related activities that support the 
program described in the application submitted by 
the local educational agency; 
‘‘(2) early childhood and family programs that 
emphasize school readiness; 
‘‘(3) enrichment programs that focus on problem 
solving and cognitive skills development and directly 
support the attainment of challenging State academic 
content standards and State student academic 
achievement standards; 
‘‘(4) integrated educational services in combina-
tion with other programs that meet the needs of In-
dian children and their families; 
‘‘(5) career preparation activities to enable In-
dian students to participate in programs such as the 
programs supported by the Carl D. Perkins Voca-
tional and Technical Education Act of 1998, includ-
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ing programs for tech-prep, mentoring, and appren-
ticeship; 
‘‘(6) activities to educate individuals concerning 
substance abuse and to prevent substance abuse; 
‘‘(7) the acquisition of equipment, but only if the 
acquisition of the equipment is essential to meet the 
purposes described in section 3211; and 
‘‘(8) family literacy services. 
‘‘(c) SCHOOLWIDE PROGRAMS.—Notwithstanding any 
other provision of law, a local educational agency may use 
funds made available to such agency under this chapter to 
support a schoolwide program under section 1114 if— 
‘‘(1) the committee composed of parents estab-
lished pursuant to section 3214(c)(4) approves the use 
of the funds for the schoolwide program; and 
‘‘(2) the schoolwide program is consistent with 
the purposes described in section 3211. 
‘‘(d) LIMITATION ON ADMINISTRATIVE COSTS.—Not 
more than 5 percent of the funds provided to a grantee 
under this chapter for any fiscal year may be used for ad-
ministrative purposes. 
‘‘SEC. 3216. INTEGRATION OF SERVICES AUTHORIZED. 
‘‘(a) PLAN.—An entity receiving funds under this 
chapter may submit a plan to the Secretary for the integra-
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tion of education and related services provided to Indian 
students. 
‘‘(b) COORDINATION OF PROGRAMS.—Upon the receipt 
of an acceptable plan, the Secretary, in cooperation with 
each Federal agency providing grants for the provision of 
education and related services to the applicant, shall au-
thorize the applicant to coordinate, in accordance with such 
plan, its federally funded education and related services 
programs, or portions thereof, serving Indian students in 
a manner that integrates the program services involved into 
a single, coordinated, comprehensive program and reduces 
administrative costs by consolidating administrative func-
tions. 
‘‘(c) PROGRAMS AFFECTED.—The funds that may be 
consolidated in a demonstration project under any such 
plan referred to in subsection (b) shall include funds for 
any Federal program exclusively serving Indian children 
or the funds reserved under any program to exclusively 
serve Indian children under which the applicant is eligible 
for receipt of funds under a statutory or administrative for-
mula for the purposes of providing education and related 
services which would be used to serve Indian students. 
‘‘(d) PLAN REQUIREMENTS.—For a plan to be accept-
able pursuant to subsection (b), it shall— 
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‘‘(1) identify the programs or funding sources to 
be consolidated; 
‘‘(2) be consistent with the purposes of this sec-
tion authorizing the services to be integrated in a 
demonstration project; 
‘‘(3) describe a comprehensive strategy which 
identifies the full range of potential educational op-
portunities and related services to be provided to as-
sist Indian students to achieve the goals set forth in 
this chapter; 
‘‘(4) describe the way in which services are to be 
integrated and delivered and the results expected from 
the plan; 
‘‘(5) identify the projected expenditures under 
the plan in a single budget; 
‘‘(6) identify the local, State, or tribal agency or 
agencies to be involved in the delivery of the services 
integrated under the plan; 
‘‘(7) identify any statutory provisions, regula-
tions, policies, or procedures that the applicant be-
lieves need to be waived in order to implement its 
plan; 
‘‘(8) set forth measures of student achievement 
and performance goals designed to be met within a 
specified period of time; and 
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‘‘(9) be approved by a parent committee formed 
in accordance with section 3214(c)(4), if such a com-
mittee exists. 
‘‘(e) PLAN REVIEW.—Upon receipt of the plan from 
an eligible entity, the Secretary shall consult with the Sec-
retary of each Federal department providing funds to be 
used to implement the plan, and with the entity submitting 
the plan. The parties so consulting shall identify any waiv-
ers of statutory requirements or of Federal departmental 
regulations, policies, or procedures necessary to enable the 
applicant to implement its plan. Notwithstanding any 
other provision of law, the Secretary of the affected depart-
ment or departments shall have the authority to waive any 
regulation, policy, or procedure promulgated by that de-
partment that has been so identified by the applicant or 
department, unless the Secretary of the affected department 
determines that such a waiver is inconsistent with the in-
tent of this chapter or those provisions of the statute from 
which the program involved derives its authority which are 
specifically applicable to Indian students. 
‘‘(f) PLAN APPROVAL.—Within 90 days after the re-
ceipt of an applicant’s plan by the Secretary, the Secretary 
shall inform the applicant, in writing, of the Secretary’s 
approval or disapproval of the plan. If the plan is dis-
approved, the applicant shall be informed, in writing, of 
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the reasons for the disapproval and shall be given an oppor-
tunity to amend its plan or to petition the Secretary to 
reconsider such disapproval. 
‘‘(g) RESPONSIBILITIES
OF DEPARTMENT
OF EDU-
CATION.—Not later than 180 days after the date of the en-
actment of the No Child Left Behind Act of 2001, the Sec-
retary of Education, the Secretary of the Interior, and the 
head of any other Federal department or agency identified 
by the Secretary of Education, shall enter into an inter-
departmental memorandum of agreement providing for the 
implementation of the demonstration projects authorized 
under this section. The lead agency head for a demonstra-
tion program under this section shall be— 
‘‘(1) the Secretary of the Interior, in the case of 
applicant meeting the definition of contract or grant 
school under title XI of the Education Amendments of 
1978; or 
‘‘(2) the Secretary of Education, in the case of 
any other applicant. 
‘‘(h) RESPONSIBILITIES OF LEAD AGENCY.—The re-
sponsibilities of the lead agency shall include— 
‘‘(1) the use of a single report format related to 
the plan for the individual project which shall be used 
by an eligible entity to report on the activities under-
taken under the project; 
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‘‘(2) the use of a single report format related to 
the projected expenditures for the individual project 
which shall be used by an eligible entity to report on 
all project expenditures; 
‘‘(3) the development of a single system of Fed-
eral oversight for the project, which shall be imple-
mented by the lead agency; and 
‘‘(4) the provision of technical assistance to an 
eligible entity appropriate to the project, except that 
an eligible entity shall have the authority to accept or 
reject the plan for providing such technical assistance 
and the technical assistance provider. 
‘‘(i) REPORT REQUIREMENTS.—A single report format 
shall be developed by the Secretary, consistent with the re-
quirements of this section. Such report format, together with 
records maintained on the consolidated program at the local 
level, shall contain such information as will allow a deter-
mination that the eligible entity has complied with the re-
quirements incorporated in its approved plan, including 
the demonstration of student achievement, and will provide 
assurances to each Secretary that the eligible entity has 
complied with all directly applicable statutory requirements 
and with those directly applicable regulatory requirements 
which have not been waived. 
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‘‘(j) NO REDUCTION IN AMOUNTS.—In no case shall 
the amount of Federal funds available to an eligible entity 
involved in any demonstration project be reduced as a re-
sult of the enactment of this section. 
‘‘(k) INTERAGENCY FUND TRANSFERS AUTHORIZED.— 
The Secretary is authorized to take such action as may be 
necessary to provide for an interagency transfer of funds 
otherwise available to an eligible entity in order to further 
the purposes of this section. 
‘‘(l) ADMINISTRATION OF FUNDS.— 
‘‘(1) IN GENERAL.—Program funds shall be ad-
ministered in such a manner as to allow for a deter-
mination that funds from specific a program or pro-
grams are spent on allowable activities authorized 
under such program, except that the eligible entity 
shall determine the proportion of the funds granted 
which shall be allocated to such program. 
‘‘(2) SEPARATE
RECORDS
NOT
REQUIRED.— 
Nothing in this section shall be construed as requiring 
the eligible entity to maintain separate records trac-
ing any services or activities conducted under its ap-
proved plan to the individual programs under which 
funds were authorized, nor shall the eligible entity be 
required to allocate expenditures among such indi-
vidual programs. 
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‘‘(m) OVERAGE.—All administrative costs may be 
commingled and participating entities shall be entitled to 
the full amount of such costs (under each program or de-
partment’s regulations), and no overage shall be counted for 
Federal audit purposes, provided that the overage is used 
for the purposes provided for under this section. 
‘‘(n) FISCAL ACCOUNTABILITY.—Nothing in this sub-
part shall be construed so as to interfere with the ability 
of the Secretary or the lead agency to fulfill the responsibil-
ities for the safeguarding of Federal funds pursuant to the 
Single Audit Act of 1984. 
‘‘(o) REPORT ON STATUTORY OBSTACLES TO PROGRAM 
INTEGRATION.— 
‘‘(1) PRELIMINARY REPORT.—Not later than 2 
years after the date of the enactment of the No Child 
Left Behind Act of 2001, the Secretary of Education 
shall submit a preliminary report 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 on the sta-
tus of the implementation of the demonstration pro-
gram authorized under this section. 
‘‘(2) FINAL
REPORT.—Not later than 5 years 
after the date of the enactment of the No Child Left 
Behind Act of 2001, the Secretary of Education shall 
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submit a report to the Committee on Health, Edu-
cation, Labor, and Pensions of the Senate and the 
Committee on Education and the Workforce of the 
House of Representatives on the results of the imple-
mentation of the demonstration program authorized 
under this section. Such report shall identify statu-
tory barriers to the ability of participants to inte-
grate more effectively their education and related 
services to Indian students in a manner consistent 
with the purposes of this section. 
‘‘(p) DEFINITIONS.—For the purposes of this section, 
the term ‘Secretary’ means— 
‘‘(1) the Secretary of the Interior, in the case of 
applicant meeting the definition of contract or grant 
school under title XI of the Education Amendments of 
1978; or 
‘‘(2) the Secretary of Education, in the case of 
any other applicant. 
‘‘SEC. 3217. STUDENT ELIGIBILITY FORMS. 
‘‘(a) IN GENERAL.—The Secretary shall require that, 
as part of an application for a grant under this chapter, 
each applicant shall maintain a file, with respect to each 
Indian child for whom the local educational agency pro-
vides a free public education, that contains a form that sets 
forth information establishing the status of the child as an 
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Indian child eligible for assistance under this chapter and 
that otherwise meets the requirements of subsection (b). 
‘‘(b) FORMS.— 
‘‘(1) IN GENERAL.—The form described in sub-
section (a) shall include— 
‘‘(A) either— 
‘‘(i)(I) the name of the tribe or band of 
Indians (as described in section 3251(3)) 
with respect to which the child claims mem-
bership; 
‘‘(II) the enrollment number estab-
lishing the membership of the child (if read-
ily available); and 
‘‘(III) the name and address of the or-
ganization that maintains updated and ac-
curate membership data for such tribe or 
band of Indians; or 
‘‘(ii) if the child is not a member of a 
tribe or band of Indians, the name, the en-
rollment number (if readily available), and 
the organization (and address thereof) re-
sponsible for maintaining updated and ac-
curate membership rolls of the tribe of any 
parent or grandparent of the child from 
whom the child claims eligibility; 
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‘‘(B) a statement of whether the tribe or 
band of Indians with respect to which the child, 
parent, or grandparent of the child claims mem-
bership is federally recognized; 
‘‘(C) the name and address of the parent or 
legal guardian of the child; 
‘‘(D) a signature of the parent or legal 
guardian of the child that verifies the accuracy 
of the information supplied; and 
‘‘(E) any other information that the Sec-
retary considers necessary to provide an accurate 
program profile. 
‘‘(2) MINIMUM
INFORMATION.—In order for a 
child to be eligible to be counted for the purpose of 
computing the amount of a grant award made under 
section 3213, an eligibility form prepared pursuant to 
this section for a child shall include— 
‘‘(A) the name of the child; 
‘‘(B) the name of the tribe or band of Indi-
ans (as described in section 3251(3)) with re-
spect to which the child claims eligibility; and 
‘‘(C) the dated signature of the parent or 
guardian of the child. 
‘‘(3) FAILURE.—The failure of an applicant to 
furnish any information described in this subsection 
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other than the information described in paragraph 
(2) with respect to any child shall have no bearing on 
the determination of whether the child is an eligible 
Indian child for the purposes of determining the 
amount of a grant award made under section 3213. 
‘‘(c) STATUTORY CONSTRUCTION.—Nothing in this sec-
tion shall be construed to affect a definition contained in 
section 3251. 
‘‘(d) FORMS AND STANDARDS OF PROOF.—The forms 
and the standards of proof (including the standard of good 
faith compliance) that were in use during the 1985–1986 
academic year to establish the eligibility of a child for enti-
tlement under the Indian Elementary and Secondary 
School Assistance Act shall be the forms and standards of 
proof used— 
‘‘(1) to establish such eligibility; and 
‘‘(2) to meet the requirements of subsection (a). 
‘‘(e) DOCUMENTATION.—For purposes of determining 
whether a child is eligible to be counted for the purpose of 
computing the amount of a grant under section 3213, the 
membership of the child, or any parent or grandparent of 
the child, in a tribe or band of Indians may be established 
by proof other than an enrollment number, notwithstanding 
the availability of an enrollment number for a member of 
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such tribe or band. Nothing in subsection (b) shall be con-
strued to require the furnishing of an enrollment number. 
‘‘(f) MONITORING AND EVALUATION REVIEW.— 
‘‘(1) IN GENERAL.—(A) For each fiscal year, in 
order to provide such information as is necessary to 
carry out the responsibility of the Secretary to pro-
vide technical assistance under this chapter, the Sec-
retary shall conduct a monitoring and evaluation re-
view of a sampling of the recipients of grants under 
this chapter. The sampling conducted under this sub-
paragraph shall take into account the size of the local 
educational agency and the geographic location of 
such agency. 
‘‘(B) A local educational agency may not be held 
liable to the United States or be subject to any pen-
alty, by reason of the findings of an audit that relates 
to the date of completion, or the date of submission, 
of any forms used to establish, before April 28, 1988, 
the eligibility of a child for entitlement under the In-
dian Elementary and Secondary School Assistance 
Act. 
‘‘(2) FALSE
INFORMATION.—Any local edu-
cational agency that provides false information in an 
application for a grant under this chapter shall— 
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‘‘(A) be ineligible to apply for any other 
grant under this subpart; and 
‘‘(B) be liable to the United States for any 
funds that have not been expended. 
‘‘(3) EXCLUDED CHILDREN.—A student who pro-
vides false information for the form required under 
subsection (a) shall not be counted for the purpose of 
computing the amount of a grant under section 3213. 
‘‘(g) TRIBAL GRANT AND CONTRACT SCHOOLS.—Not-
withstanding any other provision of this section, in award-
ing funds under this chapter to a tribal school that receives 
a grant or contract from the Bureau of Indian Affairs, the 
Secretary shall use only one of the following, as selected by 
the school: 
‘‘(1) A count of the number of students in those 
schools certified by the Bureau. 
‘‘(2) A count of the number of students for whom 
the school has eligibility forms that comply with this 
section. 
‘‘(h) TIMING OF CHILD COUNTS.—For purposes of de-
termining the number of children to be counted in calcu-
lating the amount of a local educational agency’s grant 
under this chapter (other than in the case described in sub-
section (g)(1)), the local educational agency shall— 
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‘‘(1) establish a date on, or a period not longer 
than 31 consecutive days during which, the agency 
counts those children, so long as that date or period 
occurs before the deadline established by the Secretary 
for submitting an application under section 3214; 
and 
‘‘(2) determine that each such child was enrolled, 
and receiving a free public education, in a school of 
the agency on that date or during that period, as the 
case may be. 
‘‘SEC. 3218. PAYMENTS. 
‘‘(a) IN GENERAL.—Subject to subsections (b) and (c), 
the Secretary shall pay to each local educational agency 
that submits an application that is approved by the Sec-
retary under this chapter the amount determined under sec-
tion 3213. The Secretary shall notify the local educational 
agency of the amount of the payment not later than June 
1 of the year for which the Secretary makes the payment. 
‘‘(b) PAYMENTS
TAKEN
INTO
ACCOUNT
BY
THE 
STATE.—The Secretary may not make a grant under this 
chapter to a local educational agency for a fiscal year if, 
for such fiscal year, the State in which the local educational 
agency is located takes into consideration payments made 
under this chapter in determining the eligibility of the local 
educational agency for State aid, or the amount of the State 
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aid, with respect to the free public education of children 
during such fiscal year or the preceding fiscal year. 
‘‘(c) REDUCTION OF PAYMENT FOR FAILURE TO MAIN-
TAIN FISCAL EFFORT.— 
‘‘(1) IN GENERAL.—The Secretary may not pay 
a local educational agency the full amount of a grant 
award determined under section 3213 for any fiscal 
year unless the State educational agency notifies the 
Secretary, and the Secretary determines that, with re-
spect to the provision of free public education by the 
local educational agency for the preceding fiscal year, 
the combined fiscal effort of the local educational 
agency and the State, computed on either a per stu-
dent or aggregate expenditure basis, was not less than 
90 percent of the amount of the combined fiscal effort, 
computed on the same basis, for the second preceding 
fiscal year. 
‘‘(2) FAILURE TO MAINTAIN EFFORT.—If, for any 
fiscal year, the Secretary determines that a local edu-
cational agency failed to maintain the fiscal effort of 
such agency at the level specified in paragraph (1), 
the Secretary shall— 
‘‘(A) reduce the amount of the grant that 
would otherwise be made to such agency under 
this chapter in the exact proportion of such 
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agency’s failure to maintain its fiscal effort at 
such level; and 
‘‘(B) not use the reduced amount of the 
agency’s expenditures for the preceding year to 
determine compliance with paragraph (1) for 
any succeeding fiscal year, but shall use the 
amount of expenditures that would have been re-
quired to comply with paragraph (1). 
‘‘(3) WAIVER.—(A) The Secretary may waive the 
requirement of paragraph (1), for not more than 1 
year at a time, if the Secretary determines that the 
failure to comply with such requirement is due to ex-
ceptional or uncontrollable circumstances, such as a 
natural disaster or a precipitous and unforeseen de-
cline in the agency’s financial resources. 
‘‘(B) The Secretary shall not use the reduced 
amount of such agency’s expenditures for the fiscal 
year preceding the fiscal year for which a waiver is 
granted to determine compliance with paragraph (1) 
for any succeeding fiscal year, but shall use the 
amount of expenditures that would have been required 
to comply with paragraph (1) in the absence of the 
waiver. 
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‘‘(d) REALLOCATIONS.—The Secretary may reallocate, 
in a manner that the Secretary determines will best carry 
out the purpose of this chapter, any amounts that— 
‘‘(1) based on estimates made by local edu-
cational agencies or other information, the Secretary 
determines will not be needed by such agencies to 
carry out approved programs under this chapter; or 
‘‘(2) otherwise become available for reallocation 
under this chapter. 
‘‘SEC. 3219. STATE EDUCATIONAL AGENCY REVIEW. 
‘‘Before submitting an application to the Secretary 
under section 3214, a local educational agency shall submit 
the application to the State educational agency, which may 
comment on such application. If the State educational 
agency comments on the application, it shall comment on 
all applications submitted by local educational agencies in 
the State and shall provide those comments to the respective 
local educational agencies, with an opportunity to respond. 
‘‘CHAPTER 2—SPECIAL PROGRAMS AND 
PROJECTS TO IMPROVE EDUCATIONAL 
OPPORTUNITIES FOR INDIAN CHIL-
DREN 
‘‘SEC. 3221. IMPROVEMENT OF EDUCATIONAL OPPORTUNI-
TIES FOR INDIAN CHILDREN. 
‘‘(a) PURPOSE.— 
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‘‘(1) IN GENERAL.—It is the purpose of this sec-
tion to support projects to develop, test, and dem-
onstrate the effectiveness of services and programs to 
improve educational opportunities and achievement of 
Indian children. 
‘‘(2) COORDINATION.—The Secretary shall take 
such actions as are necessary to achieve the coordina-
tion of activities assisted under this chapter with— 
‘‘(A) other programs funded under this Act; 
and 
‘‘(B) other Federal programs operated for 
the benefit of American Indian and Alaska Na-
tive children. 
‘‘(b) ELIGIBLE ENTITIES.—For the purpose of this sec-
tion, the term ‘eligible entity’ means a State educational 
agency, local educational agency, Indian tribe, Indian or-
ganization, federally supported elementary and secondary 
school for Indian students, Indian institution, including an 
Indian institution of higher education, or a consortium of 
such institutions. 
‘‘(c) GRANTS AUTHORIZED.— 
‘‘(1) IN GENERAL.—The Secretary shall award 
grants to eligible entities to enable such entities to 
carry out activities that meet the purpose specified in 
subsection (a)(1), including— 
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‘‘(A) innovative programs related to the 
educational needs of educationally disadvantaged 
children; 
‘‘(B) educational services that are not avail-
able to such children in sufficient quantity or 
quality, including remedial instruction, to raise 
the achievement of Indian children in one or 
more of the core academic subjects of English, 
mathematics, science, foreign languages, art, his-
tory, and geography; 
‘‘(C) bilingual and bicultural programs and 
projects; 
‘‘(D) special health and nutrition services, 
and other related activities, that address the 
unique health, social, and psychological problems 
of Indian children; 
‘‘(E) special compensatory and other pro-
grams and projects designed to assist and en-
courage Indian children to enter, remain in, or 
reenter school, and to increase the rate of sec-
ondary school graduation; 
‘‘(F) comprehensive guidance, counseling, 
and testing services; 
‘‘(G) early childhood and kindergarten pro-
grams, including family-based preschool pro-
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grams that emphasize school readiness and pa-
rental skills, and the provision of services to In-
dian children with disabilities; 
‘‘(H) partnership projects between local edu-
cational agencies and institutions of higher edu-
cation that allow secondary school students to 
enroll in courses at the postsecondary level to aid 
such students in the transition from secondary 
school to postsecondary education; 
‘‘(I) partnership projects between schools 
and local businesses for career preparation pro-
grams designed to provide Indian youth with the 
knowledge and skills such youth need to make an 
effective transition from school to a high-skill, 
high-wage career; 
‘‘(J) programs designed to encourage and 
assist Indian students to work toward, and gain 
entrance into, an institution of higher education; 
‘‘(K) family literacy services; or 
‘‘(L) other services that meet the purpose de-
scribed in subsection (a)(1). 
‘‘(2) 
PROFESSIONAL
DEVELOPMENT.—Profes-
sional development of teaching professionals and 
paraprofessional may be a part of any program as-
sisted under this section. 
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‘‘(d) GRANT REQUIREMENTS AND APPLICATIONS.— 
‘‘(1) GRANT REQUIREMENTS.—(A) The Secretary 
may make multiyear grants under this section for the 
planning, development, pilot operation, or demonstra-
tion of any activity described in subsection (c) for a 
period not to exceed 5 years. 
‘‘(B) In making multiyear grants under this sec-
tion, the Secretary shall give priority to applications 
that present a plan for combining two or more of the 
activities described in subsection (c) over a period of 
more than 1 year. 
‘‘(C) The Secretary shall make a grant payment 
to an eligible entity after the initial year of the 
multiyear grant only if the Secretary determines that 
the eligible entity has made substantial progress in 
carrying out the activities assisted under the grant in 
accordance with the application submitted under 
paragraph (2) and any subsequent modifications to 
such application. 
‘‘(D)(i) In addition to awarding the multiyear 
grants described in subparagraph (A), the Secretary 
may award grants to eligible entities for the dissemi-
nation of exemplary materials or programs assisted 
under this section. 
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‘‘(ii) The Secretary may award a dissemination 
grant under this subparagraph if, prior to awarding 
the grant, the Secretary determines that the material 
or program to be disseminated has been adequately 
reviewed and has demonstrated— 
‘‘(I) educational merit; and 
‘‘(II) the ability to be replicated. 
‘‘(2) APPLICATION.—(A) Any eligible entity that 
desires to receive a grant under this section shall sub-
mit an application to the Secretary at such time and 
in such manner as the Secretary may require. 
‘‘(B) Each application submitted to the Sec-
retary under subparagraph (A), other than an appli-
cation for a dissemination grant under paragraph 
(1)(D), shall contain— 
‘‘(i) a description of how parents of Indian 
children and representatives of Indian tribes 
have been, and will be, involved in developing 
and implementing the activities for which assist-
ance is sought; 
‘‘(ii) assurances that the applicant will par-
ticipate, at the request of the Secretary, in any 
national evaluation of activities assisted under 
this section; 
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‘‘(iii) information demonstrating that the 
proposed program is either a research-based pro-
gram (which may be a research-based program 
that has been modified to be culturally appro-
priate for the students who will be served); 
‘‘(iv) a description of how the applicant 
will incorporate the proposed services into the 
ongoing school program once the grant period is 
over; and 
‘‘(v) such other assurances and information 
as the Secretary may reasonably require. 
‘‘(e) ADMINISTRATIVE COSTS.—Not more than 5 per-
cent of the funds provided to a grantee under this chapter 
for any fiscal year may be used for administrative pur-
poses. 
‘‘SEC. 3222. PROFESSIONAL DEVELOPMENT FOR TEACHERS 
AND EDUCATION PROFESSIONALS. 
‘‘(a) PURPOSES.—The purposes of this section are— 
‘‘(1) to increase the number of qualified Indian 
individuals in teaching or other education professions 
that serve Indian people; 
‘‘(2) to provide training to qualified Indian in-
dividuals to enable such individuals to become teach-
ers, administrators, teacher aides, social workers, and 
ancillary educational personnel; and 
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‘‘(3) to improve the skills of qualified Indian in-
dividuals who serve in the capacities described in 
paragraph (2). 
‘‘(b) ELIGIBLE ENTITIES.—For the purpose of this sec-
tion, the term ‘eligible entity’ means— 
‘‘(1) an institution of higher education, includ-
ing an Indian institution of higher education; 
‘‘(2) a State or local educational agency, in con-
sortium with an institution of higher education; and 
‘‘(3) an Indian tribe or organization, in consor-
tium with an institution of higher education. 
‘‘(c) PROGRAM AUTHORIZED.—The Secretary is au-
thorized to award grants to eligible entities having applica-
tions approved under this section to enable such entities to 
carry out the activities described in subsection (d). 
‘‘(d) AUTHORIZED ACTIVITIES.— 
‘‘(1) IN GENERAL.—Grant funds under this sec-
tion shall be used to provide support and training for 
Indian individuals in a manner consistent with the 
purposes of this section. Such activities may include 
but are not limited to, continuing programs, 
symposia, workshops, conferences, and direct finan-
cial support. 
‘‘(2) SPECIAL RULES.—(A) For education per-
sonnel, the training received pursuant to a grant 
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under this section may be inservice or preservice 
training. 
‘‘(B) For individuals who are being trained to 
enter any field other than teaching, the training re-
ceived pursuant to a grant under this section shall be 
in a program that results in a graduate degree. 
‘‘(e) APPLICATION.—Each eligible entity desiring a 
grant under this section shall submit an application to the 
Secretary at such time, in such manner and accompanied 
by such information, as the Secretary may reasonably re-
quire. 
‘‘(f) SPECIAL RULE.—In making grants under this 
section, the Secretary— 
‘‘(1) shall consider the prior performance of the 
eligible entity; and 
‘‘(2) may not limit eligibility to receive a grant 
under this section on the basis of— 
‘‘(A) the number of previous grants the Sec-
retary has awarded such entity; or 
‘‘(B) the length of any period during which 
such entity received such grants. 
‘‘(g) GRANT PERIOD.—Each grant under this section 
shall be awarded for a period of not more than 5 years. 
‘‘(h) SERVICE OBLIGATION.— 
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‘‘(1) IN GENERAL.—The Secretary shall require, 
by regulation, that an individual who receives train-
ing pursuant to a grant made under this section— 
‘‘(A) perform work— 
‘‘(i) related to the training received 
under this section; and 
‘‘(ii) that benefits Indian people; or 
‘‘(B) repay all or a prorated part of the as-
sistance received. 
‘‘(2) REPORTING.—The Secretary shall establish, 
by regulation, a reporting procedure under which a 
grant recipient under this section shall, not later than 
12 months after the date of completion of the train-
ing, and periodically thereafter, provide information 
concerning the compliance of such recipient with the 
work requirement under paragraph (1). 
‘‘CHAPTER 3—NATIONAL RESEARCH 
ACTIVITIES 
‘‘SEC. 3231. NATIONAL ACTIVITIES. 
‘‘(a) AUTHORIZED ACTIVITIES.—The Secretary may 
use funds made available under section 3252(b) for each 
fiscal year to— 
‘‘(1) conduct research related to effective ap-
proaches for the education of Indian children and 
adults; 
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•HR 1 RH1&2 
‘‘(2) evaluate federally assisted education pro-
grams from which Indian children and adults may 
benefit; 
‘‘(3) collect and analyze data on the educational 
status and needs of Indians; and 
‘‘(4) carry out other activities that are consistent 
with the purpose of this subpart. 
‘‘(b) ELIGIBILITY.—The Secretary may carry out any 
of the activities described in subsection (a) directly or 
through grants to, or contracts or cooperative agreements 
with Indian tribes, Indian organizations, State educational 
agencies, local educational agencies, institutions of higher 
education, including Indian institutions of higher edu-
cation, and other public and private agencies and 
institutions. 
‘‘(c) COORDINATION.—Research activities supported 
under this section— 
‘‘(1) shall be carried out in consultation with the 
Office of Educational Research and Improvement to 
assure that such activities are coordinated with and 
enhance the research and development activities sup-
ported by the Office; and 
‘‘(2) may include collaborative research activities 
which are jointly funded and carried out by the Office 
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•HR 1 RH1&2 
of Indian Education Programs and the Office of Edu-
cational Research and Improvement. 
‘‘CHAPTER 4—FEDERAL ADMINISTRATION 
‘‘SEC. 3241. NATIONAL ADVISORY COUNCIL ON INDIAN EDU-
CATION. 
‘‘(a) MEMBERSHIP.—There is established a National 
Advisory Council on Indian Education (hereafter in this 
section referred to as the ‘Council’), which shall— 
‘‘(1) consist of 15 Indian members, who shall be 
appointed by the President from lists of nominees fur-
nished, from time-to-time, by Indian tribes and orga-
nizations; and 
‘‘(2) represent different geographic areas of the 
United States. 
‘‘(b) DUTIES.—The Council shall— 
‘‘(1) advise the Secretary concerning the funding 
and administration (including the development of 
regulations and administrative policies and practices) 
of any program, including any program established 
under this subpart— 
‘‘(A) with respect to which the Secretary has 
jurisdiction; and 
‘‘(B)(i) that includes Indian children or 
adults as participants; or 
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•HR 1 RH1&2 
‘‘(ii) that may benefit Indian children or 
adults; 
‘‘(2) make recommendations to the Secretary for 
filling the position of Director of Indian Education 
whenever a vacancy occurs; and 
‘‘(3) submit to the Congress, not later than June 
30 of each year, a report on the activities of the Coun-
cil, including— 
‘‘(A) any recommendations that the Council 
considers appropriate for the improvement of 
Federal education programs that include Indian 
children or adults as participants, or that may 
benefit Indian children or adults; and 
‘‘(B) recommendations concerning the fund-
ing of any program described in subparagraph 
(A). 
‘‘SEC. 3242. PEER REVIEW. 
‘‘The Secretary may use a peer review process to re-
view applications submitted to the Secretary under chapter 
2 or 3. 
‘‘SEC. 3243. PREFERENCE FOR INDIAN APPLICANTS. 
‘‘In making grants under chapter 2 or 3, the Secretary 
shall give a preference to Indian tribes, organizations, and 
institutions of higher education under any program with 
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•HR 1 RH1&2 
respect to which Indian tribes, organizations, and institu-
tions are eligible to apply for grants. 
‘‘SEC. 3244. MINIMUM GRANT CRITERIA. 
‘‘The Secretary may not approve an application for 
a grant under subpart 2 unless the application is for a 
grant that is— 
‘‘(1) of sufficient size, scope, and quality to 
achieve the purpose or objectives of such grant; and 
‘‘(2) based on relevant research findings. 
‘‘CHAPTER 5—DEFINITIONS; 
AUTHORIZATIONS OF APPROPRIATIONS 
‘‘SEC. 3251. DEFINITIONS. 
‘‘For the purposes of this subpart: 
‘‘(1) ADULT.—The term ‘adult’ means an indi-
vidual who— 
‘‘(A) has attained the age of 16 years; or 
‘‘(B) has attained an age that is greater 
than the age of compulsory school attendance 
under an applicable State law. 
‘‘(2) FREE PUBLIC EDUCATION.—The term ‘free 
public education’ means education that is— 
‘‘(A) provided at public expense, under pub-
lic supervision and direction, and without tui-
tion charge; and 
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•HR 1 RH1&2 
‘‘(B) provided as elementary or secondary 
education in the applicable State or to preschool 
children. 
‘‘(3) INDIAN.—The term ‘Indian’ means an indi-
vidual who is— 
‘‘(A) a member of an Indian tribe or band, 
as membership is defined by the tribe or band, 
including— 
‘‘(i) any tribe or band terminated since 
1940; and 
‘‘(ii) any tribe or band recognized by 
the State in which the tribe or band resides; 
‘‘(B) a descendant, in the first or second de-
gree, of an individual described in subparagraph 
(A); 
‘‘(C) considered by the Secretary of the Inte-
rior to be an Indian for any purpose; 
‘‘(D) an Eskimo, Aleut, or other Alaska Na-
tive; or 
‘‘(E) a member of an organized Indian 
group that received a grant under the Indian 
Education Act of 1988 as it was in effect the day 
preceding the date of the enactment of the Im-
proving America’s Schools Act of 1994. 
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‘‘SEC. 3252. AUTHORIZATIONS OF APPROPRIATIONS. 
‘‘(a) CHAPTER 1.—For the purpose of carrying out 
chapter 1 of this subpart, there are authorized to be appro-
priated $100,000,000 for fiscal year 2002, and such sums 
as may be necessary for each of fiscal years 2003 through 
2006. 
‘‘(b) CHAPTERS 2 AND 3.—For the purpose of carrying 
out chapters 2 and 3 of this subpart, there are authorized 
to be appropriated $25,000,000 for fiscal year 2002, and 
such sums as may be necessary for each of the fiscal years 
2003 through 2006.’’. 
(b) SAVINGS PROVISION.—Funds appropriated for 
part A of title IX of the Elementary and Secondary Edu-
cation Act of 1965 (as in effect on the day before the date 
of the enactment of this Act) shall be available for use under 
subpart 1 of part B of title III of such Act, as added by 
this section. 
SEC. 312. ALASKA NATIVE EDUCATION. 
(a) IN GENERAL.—Part B of title III (as added by 
section 311 of this Act) is further amended by adding at 
the end the following new subpart: 
‘‘Subpart 2—Alaska Native Education 
‘‘SEC. 3301. SHORT TITLE. 
‘‘This subpart may be cited as the ‘Alaska Native Edu-
cational Equity, Support, and Assistance Act’. 
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‘‘SEC. 3302. FINDINGS. 
‘‘The Congress finds and declares: 
‘‘(1) The attainment of educational success is 
critical to the betterment of the conditions, long-term 
well-being and preservation of the culture of Alaska 
Natives. 
‘‘(2) It is the policy of the Federal Government 
to encourage the maximum participation by Alaska 
Natives in the planning and the management of Alas-
ka Native education programs. 
‘‘(3) Alaska Native children enter and exit school 
with serious educational handicaps. 
‘‘(4) The educational achievement of Alaska Na-
tive children is far below national norms. In addition 
to low Native performance on standardized tests, Na-
tive student dropout rates are high, and Natives are 
significantly underrepresented among holders of bac-
calaureate degrees in the State of Alaska. As a result, 
Native students are being denied their opportunity to 
become full participants in society by grade school 
and high school educations that are condemning an 
entire generation to an underclass status and a life 
of limited choices. 
‘‘(5) The programs authorized herein, combined 
with expanded Head Start, infant learning and early 
childhood education programs, and parent education 
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•HR 1 RH1&2 
programs are essential if educational handicaps are 
to be overcome. 
‘‘(6) The sheer magnitude of the geographic bar-
riers to be overcome in delivering educational services 
in rural and village Alaska should be addressed 
through the development and implementation of inno-
vative, model programs in a variety of areas. 
‘‘(7) Congress finds that Native children should 
be afforded the opportunity to begin their formal edu-
cation on a par with their non-Native peers. The Fed-
eral Government should lend support to efforts devel-
oped by and undertaken within the Alaska Native 
community to improve educational opportunity for 
all students. 
‘‘SEC. 3303. PURPOSE. 
‘‘It is the purpose of this subpart to— 
‘‘(1) recognize the unique educational needs of 
Alaska Natives; 
‘‘(2) authorize the development of supplemental 
educational programs to benefit Alaska Natives; 
‘‘(3) supplement existing programs and authori-
ties in the area of education to further the purposes 
of this subpart; and 
‘‘(4) provide direction and guidance to appro-
priate Federal, State and local agencies to focus re-
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•HR 1 RH1&2 
sources, including resources made available under this 
subpart, on meeting the educational needs of Alaska 
Natives. 
‘‘SEC. 3304. PROGRAM AUTHORIZED. 
‘‘(a) GENERAL AUTHORITY.— 
‘‘(1) PROGRAM AUTHORIZED.—The Secretary is 
authorized to make grants to, or enter into contracts 
with, Alaska Native organizations, educational enti-
ties with experience in developing or operating Alaska 
Native programs or programs of instruction con-
ducted in Alaska Native languages, and consortia of 
such organizations and entities to carry out programs 
that meet the purpose of this subpart. 
‘‘(2) PERMISSIBLE ACTIVITIES.—Programs under 
this subpart may include— 
‘‘(A) the development and implementation 
of plans, methods, and strategies to improve the 
education of Alaska Natives; 
‘‘(B) the development of curricula and edu-
cational programs that address the educational 
needs of Alaska Native students, including— 
‘‘(i) curriculum materials that reflect 
the cultural diversity or the contributions of 
Alaska Natives; 
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•HR 1 RH1&2 
‘‘(ii) instructional programs that make 
use of Native Alaskan languages; and 
‘‘(iii) networks that introduce success-
ful programs, materials, and techniques to 
urban and rural schools; 
‘‘(C) professional development activities for 
educators, including— 
‘‘(i) programs to prepare teachers to 
address the cultural diversity and unique 
needs of Alaska Native students; 
‘‘(ii) in-service programs to improve 
the ability of teachers to meet the unique 
needs of Alaska Native students; and 
‘‘(iii) recruiting and preparing teach-
ers who are Alaska Natives, reside in com-
munities with high concentrations of Alaska 
Native students, or are likely to succeed as 
teachers in isolated, rural communities and 
engage in cross-cultural instruction; 
‘‘(D) the development and operation of home 
instruction programs for Alaska Native preschool 
children, the purpose of which is to ensure the 
active involvement of parents in their children’s 
education from the earliest ages; 
‘‘(E) family literacy services; 
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‘‘(F) the development and operation of stu-
dent enrichment programs in science and mathe-
matics that— 
‘‘(i) are designed to prepare Alaska 
Native students from rural areas, who are 
preparing to enter high school, to excel in 
science and math; and 
‘‘(ii) provide appropriate support serv-
ices to the families of such students that are 
needed to enable such students to benefit 
from the program; 
‘‘(G) research and data collection activities 
to determine the educational status and needs of 
Alaska Native children and adults; 
‘‘(H) other research and evaluation activi-
ties related to programs under this subpart; and 
‘‘(I) other activities, consistent with the 
purposes of this subpart, to meet the educational 
needs of Alaska Native children and adults. 
‘‘(3) HOME INSTRUCTION PROGRAMS.—Home in-
struction programs for Alaska Native preschool chil-
dren under paragraph (2)(D) may include— 
‘‘(A) programs for parents and their in-
fants, from prenatal through age three; 
‘‘(B) preschool programs; and 
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‘‘(C) training, education, and support for 
parents in such areas as reading readiness, ob-
servation, story-telling, and critical thinking. 
‘‘(b) LIMITATION ON ADMINISTRATIVE COSTS.—Not 
more than 5 percent of funds provided to a grantee under 
this section for any fiscal year may be used for administra-
tive purposes. 
‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated $15,000,000 for fiscal year 
2002, and such sums as may be necessary for each of the 
fiscal years 2003 through 2006 to carry out this subpart. 
‘‘SEC. 3305. ADMINISTRATIVE PROVISIONS. 
‘‘(a) APPLICATION REQUIRED.—No grant may be 
made under this subpart, nor any contract be entered into 
under this subpart, unless an application is submitted to 
the Secretary in such form, in such manner, and containing 
such information as the Secretary may determine necessary 
to carry out the provisions of this subpart. 
‘‘(b) APPLICATIONS.—State and local educational 
agencies may apply for an award under this subpart only 
as subpart of a consortium involving an Alaska Native or-
ganization. This consortium may include other eligible ap-
plicants. 
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‘‘(c) CONSULTATION REQUIRED.—Each applicant for 
funding shall provide for ongoing advice from and consulta-
tion with representatives of the Alaska Native community. 
‘‘(d) LOCAL EDUCATIONAL AGENCY COORDINATION.— 
Each applicant for an award under this subpart shall in-
form each local educational agency serving students who 
would participate in the project about its application. 
‘‘SEC. 3306. DEFINITIONS. 
‘‘For purposes of this subpart— 
‘‘(1) the term ‘Alaska Native’ has the same 
meaning as the term ‘Native’ has in section 3(b) of 
the Alaska Native Claims Settlement Act; and 
‘‘(2) the term ‘Alaska Native organization’ 
means a federally recognized tribe, consortium of 
tribes, regional nonprofit Native association, and 
other Alaska Native organizations that— 
‘‘(A) has or commits to acquire expertise in 
the education of Alaska Natives; and 
‘‘(B) has Alaska Natives in substantive and 
policy-making positions within the organiza-
tion.’’. 
(b) SAVINGS PROVISION.—Funds appropriated for 
part C of title IX of the Elementary and Secondary Edu-
cation Act of 1965 (as in effect on the day before the date 
of the enactment of this Act) shall be available for use under 
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subpart 2 of part B of title III of such Act, as added by 
this section. 
SEC. 313. AMENDMENTS TO THE EDUCATION AMENDMENTS 
OF 1978. 
Part B of title XI of the Education Amendments of 
1978 (25 U.S.C. 2001 et seq.) is amended to read as follows: 
‘‘PART B—BUREAU OF INDIAN AFFAIRS 
PROGRAMS 
‘‘SEC. 1120. FINDING AND POLICY. 
‘‘(a) FINDING.—Congress finds and recognizes that the 
Federal Government has the sole responsibility for the oper-
ation and financial support of the Bureau of Indian Affairs 
funded school system that it has established on or near In-
dian reservations and Indian trust lands throughout the 
Nation for Indian children. 
‘‘(b) POLICY.—It is the policy of the United States to 
work in full cooperation with Indian tribes toward the goal 
of assuring that the programs of the Bureau of Indian Af-
fairs funded school system are of the highest quality and 
meet the unique educational and cultural needs of Indian 
children. 
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described in paragraph (1)(A) may be approved by 
the Secretary only if— 
‘‘(i) the application has been approved by 
the tribal governing body of the students served 
by (or to be served by) the school or program 
that is the subject of the application; and 
‘‘(ii) written evidence of such approval is 
submitted with the application. 
‘‘(B) Each application described in paragraph 
(1)(A) shall provide information concerning each of 
the factors described in paragraph (1)(B). 
‘‘(4) DENIAL OF APPLICATIONS.—Whenever the 
Secretary makes a determination to deny approval of 
any application described in paragraph (1)(A), the 
Secretary shall— 
‘‘(A) state the objections in writing to the 
applicant not later 180 days after the applica-
tion is submitted to the Secretary; 
‘‘(B) provide assistance to the applicant to 
overcome stated objections; and 
‘‘(C) provide the applicant a hearing, under 
the same rules and regulations pertaining to the 
Indian Self-Determination and Education As-
sistance Act and an opportunity to appeal the 
objections raised by the Secretary. 
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‘‘(5) EFFECTIVE DATE OF A SUBJECT APPLICA-
TION.—(A) Except as otherwise provided in this 
paragraph, the action which is the subject of any ap-
plication described in paragraph (1)(A) that is ap-
proved by the Secretary shall become effective at the 
beginning of the academic year following the fiscal 
year in which the application is approved, or at an 
earlier date determined by the Secretary. 
‘‘(B) If an application is treated as having been 
approved by the Secretary under paragraph (2)(B), 
the action that is the subject of the application shall 
become effective on the date that is 18 months after 
the date on which the application is submitted to the 
Secretary, or at an earlier date determined by the 
Secretary. 
‘‘(6) STATUTORY
CONSTRUCTION.—Nothing in 
this section shall be read so as to preclude the expan-
sion of grades and related facilities at a Bureau fund-
ed school where such expansion and the maintenance 
of such expansion is occasioned or paid for with non- 
Bureau funds. 
‘‘(j) GENERAL USE OF FUNDS.—Funds received by 
Bureau funded schools from the Bureau of Indian Affairs 
and under any program from the Department of Education 
or any other Federal agency for the purpose of providing 
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‘‘(1) IN GENERAL.—Whenever the Secretary re-
fuses to approve a grant under this chapter, to trans-
fer operation of a Bureau school under subsection (b), 
or determines that a school is not eligible for assist-
ance under this part, the Secretary shall— 
‘‘(A) state the objections in writing to the 
tribe or tribal organization within the allotted 
time; 
‘‘(B) provide assistance to the tribe or tribal 
organization to overcome all stated objections. 
‘‘(C) at the request of the tribe or tribal or-
ganization, provide the tribe or tribal organiza-
tion a hearing on the record under the same 
rules and regulations that apply under the In-
dian Self-Determination and Education Assist-
ance Act; and 
‘‘(D) provide an opportunity to appeal the 
objection raised. 
‘‘(2) 
TIMELINE
FOR
RECONSIDERATION
OF 
AMENDED APPLICATIONS.—The Secretary shall recon-
sider any amended application submitted under this 
part within 60 days after the amended application is 
submitted to the Secretary. 
‘‘(g) REPORT.—The Bureau shall submit an annual 
report to the Congress on all applications received, and ac-
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‘‘(ii) the assessed value of real property 
per student that may be taxed for school 
purposes compared to the average of the as-
sessed value of real property per student 
that may be taxed for school purposes in the 
State in which the agency is located; 
‘‘(iii) the agency’s total tax rate for 
school purposes (or, if applicable, for cap-
ital expenditures) compared to the average 
total tax rate for school purposes (or the av-
erage capital expenditure tax rate, if appli-
cable) in the State in which the agency is 
located; and 
‘‘(iv) funds that are available to the 
agency, from any other source, including 
section 8007(a), that may be used for cap-
ital expenditures. 
‘‘(B) The percentage of property in the 
agency that is nontaxable due to the presence of 
the Federal Government. 
‘‘(C) The number and percentages of chil-
dren described in subparagraphs (A), (B), (C), 
and (D) of section 8003(a)(1) served in the 
school facility with the emergency or served in 
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