H. R. 1—342
‘‘(1) COMMUNITY LEARNING CENTER.—The term ‘community
learning center’ means an entity that—
‘‘(A) assists students in meeting State and local aca-
demic achievement standards in core academic subjects,
such as reading and mathematics, by providing the stu-
dents with opportunities for academic enrichment activities
and a broad array of other activities (such as drug and
violence prevention, counseling, art, music, recreation, tech-
nology, and character education programs) during non-
school hours or periods when school is not in session (such
as before and after school or during summer recess) that
reinforce and complement the regular academic programs
of the schools attended by the students served; and
‘‘(B) offers families of students served by such center
opportunities for literacy and related educational develop-
ment.
‘‘(2) COVERED
PROGRAM.—The term ‘covered program’
means a program for which—
‘‘(A) the Secretary made a grant under part I of title
X (as such part was in effect on the day before the date
of enactment of the No Child Left Behind Act of 2001);
and
‘‘(B) the grant period had not ended on that date of
enactment.
‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible entity’ means a
local 
educational 
agency, 
community-based 
organization,
another public or private entity, or a consortium of two or
more of such agencies, organizations, or entities.
‘‘(4) STATE.—The term ‘State’ means each of the 50 States,
the District of Columbia, and the Commonwealth of Puerto
Rico.
‘‘SEC. 4202. ALLOTMENTS TO STATES.
‘‘(a) RESERVATION.—From the funds appropriated under section
4206 for any fiscal year, the Secretary shall reserve—
‘‘(1) such amount as may be necessary to make continuation
awards to grant recipients under covered programs (under the
terms of those grants);
‘‘(2) not more than 1 percent for national activities, which
the Secretary may carry out directly or through grants and
contracts, such as providing technical assistance to eligible
entities carrying out programs under this part or conducting
a national evaluation; and
‘‘(3) not more than 1 percent for payments to the outlying
areas and the Bureau of Indian Affairs, to be allotted in accord-
ance with their respective needs for assistance under this part,
as determined by the Secretary, to enable the outlying areas
and the Bureau to carry out the purpose of this part.
‘‘(b) STATE ALLOTMENTS.—
‘‘(1) DETERMINATION.—From the funds appropriated under
section 4206 for any fiscal year and remaining after the Sec-
retary makes reservations under subsection (a), the Secretary
shall allot to each State for the fiscal year an amount that
bears the same relationship to the remainder as the amount
the State received under subpart 2 of part A of title I for
the preceding fiscal year bears to the amount all States received
under that subpart for the preceding fiscal year, except that
H. R. 1—343
no State shall receive less than an amount equal to one-half
of 1 percent of the total amount made available to all States
under this subsection.
‘‘(2) REALLOTMENT OF UNUSED FUNDS.—If a State does not
receive an allotment under this part for a fiscal year, the
Secretary shall reallot the amount of the State’s allotment
to the remaining States in accordance with this section.
‘‘(c) STATE USE OF FUNDS.—
‘‘(1) IN GENERAL.—Each State that receives an allotment
under this part shall reserve not less than 95 percent of the
amount allotted to such State under subsection (b), for each
fiscal year for awards to eligible entities under section 4204.
‘‘(2) STATE ADMINISTRATION.—A State educational agency
may use not more than 2 percent of the amount made available
to the State under subsection (b) for—
‘‘(A) the administrative costs of carrying out its respon-
sibilities under this part;
‘‘(B) establishing and implementing a peer review
process for grant applications described in section 4204(b)
(including consultation with the Governor and other State
agencies responsible for administering youth development
programs and adult learning activities); and
supervising the awarding of funds to eligible entities
(in consultation with the Governor and other State agencies
responsible for administering youth development programs
and adult learning activities).
‘‘(3) STATE ACTIVITIES.—A State educational agency may
use not more than 3 percent of the amount made available
to the State under subsection (b) for the following activities:
‘‘(A) Monitoring and evaluation of programs and activi-
ties assisted under this part.
‘‘(B) Providing capacity building, training, and tech-
nical assistance under this part.
‘‘(C) Comprehensive evaluation (directly, or through
a grant or contract) of the effectiveness of programs and
activities assisted under this part.
‘‘(D) Providing training and technical assistance to
eligible entities who are applicants for or recipients of
awards under this part.
‘‘SEC. 4203. STATE APPLICATION.
‘‘(a) IN GENERAL.—In order to receive an allotment under sec-
tion 4202 for any fiscal year, a State shall submit to the Secretary,
at such time as the Secretary may require, an application that—
‘‘(1) designates the State educational agency as the agency
responsible for the administration and supervision of programs
assisted under this part;
‘‘(2) describes how the State educational agency will use
funds received under this part, including funds reserved for
State-level activities;
‘‘(3) contains an assurance that the State educational
agency will make awards under this part only to eligible entities
that propose to serve—
‘‘(A) students who primarily attend—
‘‘(i) schools eligible for schoolwide programs under
section 1114; or
H. R. 1—344
‘‘(ii) schools that serve a high percentage of stu-
dents from low-income families; and
‘‘(B) the families of students described in subparagraph
(A);
‘‘(4) describes the procedures and criteria the State edu-
cational agency will use for reviewing applications and
awarding funds to eligible entities on a competitive basis, which
shall include procedures and criteria that take into consider-
ation the likelihood that a proposed community learning center
will help participating students meet local content and student
academic achievement standards;
‘‘(5) describes how the State educational agency will ensure
that awards made under this part are—
‘‘(A) of sufficient size and scope to support high-quality,
effective programs that are consistent with the purpose
of this part; and
‘‘(B) in amounts that are consistent with section
4204(h);
‘‘(6) describes the steps the State educational agency will
take to ensure that programs implement effective strategies,
including providing ongoing technical assistance and training,
evaluation, and dissemination of promising practices;
‘‘(7) describes how programs under this part will be coordi-
nated with programs under this Act, and other programs as
appropriate;
‘‘(8) contains an assurance that the State educational
agency—
‘‘(A) will make awards for programs for a period of
not less than 3 years and not more than 5 years; and
‘‘(B) will require each eligible entity seeking such an
award to submit a plan describing how the community
learning center to be funded through the award will con-
tinue after funding under this part ends;
‘‘(9) contains an assurance that funds appropriated to carry
out this part will be used to supplement, and not supplant,
other Federal, State, and local public funds expended to provide
programs and activities authorized under this part and other
similar programs;
‘‘(10) contains an assurance that the State educational
agency will require eligible entities to describe in their applica-
tions under section 4204(b) how the transportation needs of
participating students will be addressed;
‘‘(11) provides an assurance that the application was devel-
oped in consultation and coordination with appropriate State
officials, including the chief State school officer, and other State
agencies administering before and after school (or summer
school) programs, the heads of the State health and mental
health agencies or their designees, and representatives of
teachers, parents, students, the business community, and
community-based organizations;
‘‘(12) describes the results of the State’s needs and
resources assessment for before and after school activities,
which shall be based on the results of on-going State evaluation
activities;
‘‘(13) describes how the State educational agency will
evaluate the effectiveness of programs and activities carried
out under this part, which shall include, at a minimum—
H. R. 1—345
‘‘(A) a description of the performance indicators and
performance measures that will be used to evaluate pro-
grams and activities; and
‘‘(B) public dissemination of the evaluations of pro-
grams and activities carried out under this part; and
‘‘(14) provides for timely public notice of intent to file
an application and an assurance that the application will be
available for public review after submission.
‘‘(b) DEEMED APPROVAL.—An application submitted by a State
educational agency pursuant to subsection (a) shall be deemed
to be approved by the Secretary unless the Secretary makes a
written determination, prior to the expiration of the 120-day period
beginning on the date on which the Secretary received the applica-
tion, that the application is not in compliance with this part.
‘‘(c) DISAPPROVAL.—The Secretary shall not finally disapprove
the application, except after giving the State educational agency
notice and opportunity for a hearing.
‘‘(d) NOTIFICATION.—If the Secretary finds that the application
is not in compliance, in whole or in part, with this part, the
Secretary shall—
‘‘(1) give the State educational agency notice and an oppor-
tunity for a hearing; and
‘‘(2) notify the State educational agency of the finding of
noncompliance, and, in such notification, shall—
‘‘(A) cite the specific provisions in the application that
are not in compliance; and
‘‘(B) request additional information, only as to the non-
compliant provisions, needed to make the application
compliant.
‘‘(e) RESPONSE.—If the State educational agency responds to
the Secretary’s notification described in subsection (d)(2) during
the 45-day period beginning on the date on which the agency
received the notification, and resubmits the application with the
requested information described in subsection (d)(2)(B), the Sec-
retary shall approve or disapprove such application prior to the
later of—
‘‘(1) the expiration of the 45-day period beginning on the
date on which the application is resubmitted; or
‘‘(2) the expiration of the 120-day period described in sub-
section (b).
‘‘(f) FAILURE TO RESPOND.—If the State educational agency
does not respond to the Secretary’s notification described in sub-
section (d)(2) during the 45-day period beginning on the date on
which the agency received the notification, such application shall
be deemed to be disapproved.
‘‘SEC. 4204. LOCAL COMPETITIVE GRANT PROGRAM.
‘‘(a) IN GENERAL.—A State that receives funds under this part
for a fiscal year shall provide the amount made available under
section 4202(c)(1) to eligible entities for community learning centers
in accordance with this part.
‘‘(b) APPLICATION.—
‘‘(1) IN GENERAL.—To be eligible to receive an award under
this part, an eligible entity shall submit an application to
the State educational agency at such time, in such manner,
and including such information as the State educational agency
may reasonably require.
H. R. 1—346
‘‘(2) CONTENTS.—Each application submitted under para-
graph (1) shall include—
‘‘(A) a description of the before and after school or
summer recess activities to be funded, including—
‘‘(i) an assurance that the program will take place
in a safe and easily accessible facility;
‘‘(ii) a description of how students participating
in the program carried out by the community learning
center will travel safely to and from the center and
home; and
‘‘(iii) a description of how the eligible entity will
disseminate information about the community learning
center (including its location) to the community in
a manner that is understandable and accessible;
‘‘(B) a description of how the activity is expected to
improve student academic achievement;
‘‘(C) an identification of Federal, State, and local pro-
grams that will be combined or coordinated with the pro-
posed program to make the most effective use of public
resources;
‘‘(D) an assurance that the proposed program was
developed, and will be carried out, in active collaboration
with the schools the students attend;
‘‘(E) a description of how the activities will meet the
principles of effectiveness described in section 4205(b);
‘‘(F) an assurance that the program will primarily tar-
get students who attend schools eligible for schoolwide
programs under section 1114 and the families of such stu-
dents;
‘‘(G) an assurance that funds under this part will be
used to increase the level of State, local, and other non-
Federal funds that would, in the absence of funds under
this part, be made available for programs and activities
authorized under this part, and in no case supplant Fed-
eral, State, local, or non-Federal funds;
‘‘(H) a description of the partnership between a local
educational agency, a community-based organization, and
another public entity or private entity, if appropriate;
‘‘(I) an evaluation of the community needs and avail-
able resources for the community learning center and a
description of how the program proposed to be carried
out in the center will address those needs (including the
needs of working families);
‘‘(J) a demonstration that the eligible entity has experi-
ence, or promise of success, in providing educational and
related activities that will complement and enhance the
academic performance, achievement, and positive youth
development of the students;
‘‘(K) a description of a preliminary plan for how the
community learning center will continue after funding
under this part ends;
‘‘(L) an assurance that the community will be given
notice of an intent to submit an application and that the
application and any waiver request will be available for
public review after submission of the application;
‘‘(M) if the eligible entity plans to use senior volunteers
in activities carried out through the community learning
H. R. 1—347
center, a description of how the eligible entity will encour-
age and use appropriately qualified seniors to serve as
the volunteers; and
‘‘(N) such other information and assurances as the
State educational agency may reasonably require.
‘‘(c) APPROVAL
OF CERTAIN APPLICATIONS.—The State edu-
cational agency may approve an application under this part for
a program to be located in a facility other than an elementary
school or secondary school only if the program will be at least
as available and accessible to the students to be served as if the
program were located in an elementary school or secondary school.
‘‘(d) PERMISSIVE LOCAL MATCH.—
‘‘(1) IN GENERAL.—A State educational agency may require
an eligible entity to match funds awarded under this part,
except that such match may not exceed the amount of the
grant award and may not be derived from other Federal or
State funds.
‘‘(2) SLIDING SCALE.—The amount of a match under para-
graph (1) shall be established based on a sliding fee scale
that takes into account—
‘‘(A) the relative poverty of the population to be tar-
geted by the eligible entity; and
‘‘(B) the ability of the eligible entity to obtain such
matching funds.
‘‘(3) IN-KIND
CONTRIBUTIONS.—Each State educational
agency that requires an eligible entity to match funds under
this subsection shall permit the eligible entity to provide all
or any portion of such match in the form of in-kind contribu-
tions.
‘‘(4) CONSIDERATION.—Notwithstanding this subsection, a
State educational agency shall not consider an eligible entity’s
ability to match funds when determining which eligible entities
will receive awards under this part.
‘‘(e) PEER REVIEW.—In reviewing local applications under this
section, a State educational agency shall use a peer review process
or other methods of assuring the quality of such applications.
‘‘(f) GEOGRAPHIC DIVERSITY.—To the extent practicable, a State
educational agency shall distribute funds under this part equitably
among geographic areas within the State, including urban and
rural communities.
‘‘(g) DURATION OF AWARDS.—Grants under this part may be
awarded for a period of not less than 3 years and not more than
5 years.
‘‘(h) AMOUNT OF AWARDS.—A grant awarded under this part
may not be made in an amount that is less than $50,000.
‘‘(i) PRIORITY.—
‘‘(1) IN
GENERAL.—In awarding grants under this part,
a State educational agency shall give priority to applications—
‘‘(A) proposing to target services to students who attend
schools that have been identified as in need of improvement
under section 1116; and
‘‘(B) submitted jointly by eligible entities consisting
of not less than 1—
‘‘(i) local educational agency receiving funds under
part A of title I; and
‘‘(ii) community-based organization or other public
or private entity.
H. R. 1—348
‘‘(2) SPECIAL RULE.—The State educational agency shall
provide the same priority under paragraph (1) to an application
submitted by a local educational agency if the local educational
agency demonstrates that it is unable to partner with a commu-
nity-based organization in reasonable geographic proximity and
of sufficient quality to meet the requirements of this part.
‘‘SEC. 4205. LOCAL ACTIVITIES.
‘‘(a) AUTHORIZED ACTIVITIES.—Each eligible entity that receives
an award under this part may use the award funds to carry out
a broad array of before and after school activities (including during
summer recess periods) that advance student academic achieve-
ment, including—
‘‘(1) remedial education activities and academic enrichment
learning programs, including providing additional assistance
to students to allow the students to improve their academic
achievement;
‘‘(2) mathematics and science education activities;
‘‘(3) arts and music education activities;
‘‘(4) entrepreneurial education programs;
‘‘(5) tutoring services (including those provided by senior
citizen volunteers) and mentoring programs;
‘‘(6) programs that provide after school activities for limited
English proficient students that emphasize language skills and
academic achievement;
‘‘(7) recreational activities;
‘‘(8) telecommunications and technology education pro-
grams;
‘‘(9) expanded library service hours;
‘‘(10) programs that promote parental involvement and
family literacy;
‘‘(11) programs that provide assistance to students who
have been truant, suspended, or expelled to allow the students
to improve their academic achievement; and
‘‘(12) drug and violence prevention programs, counseling
programs, and character education programs.
‘‘(b) PRINCIPLES OF EFFECTIVENESS.—
‘‘(1) IN
GENERAL.—For a program or activity developed
pursuant to this part to meet the principles of effectiveness,
such program or activity shall—
‘‘(A) be based upon an assessment of objective data
regarding the need for before and after school programs
(including during summer recess periods) and activities
in the schools and communities;
‘‘(B) be based upon an established set of performance
measures aimed at ensuring the availability of high quality
academic enrichment opportunities; and
‘‘(C) if appropriate, be based upon scientifically based
research that provides evidence that the program or activity
will help students meet the State and local student aca-
demic achievement standards.
‘‘(2) PERIODIC EVALUATION.—
‘‘(A) IN
GENERAL.—The program or activity shall
undergo a periodic evaluation to assess its progress toward
achieving its goal of providing high quality opportunities
for academic enrichment.
H. R. 1—349
‘‘(B) USE
OF
RESULTS.—The results of evaluations
under subparagraph (A) shall be—
‘‘(i) used to refine, improve, and strengthen the
program or activity, and to refine the performance
measures; and
‘‘(ii) made available to the public upon request,
with public notice of such availability provided.
‘‘SEC. 4206. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated—
‘‘(1) $1,250,000,000 for fiscal year 2002;
‘‘(2) $1,500,000,000 for fiscal year 2003;
‘‘(3) $1,750,000,000 for fiscal year 2004;
‘‘(4) $2,000,000,000 for fiscal year 2005;
‘‘(5) $2,250,000,000 for fiscal year 2006; and
‘‘(6) $2,500,000,000 for fiscal year 2007.
‘‘PART C—ENVIRONMENTAL TOBACCO SMOKE
‘‘SEC. 4301. SHORT TITLE.
‘‘This part may be cited as the ‘Pro-Children Act of 2001’.
‘‘SEC. 4302. DEFINITIONS.
‘‘As used in this part:
‘‘(1) CHILDREN.—The term ‘children’ means individuals who
have not attained the age of 18.
‘‘(2) CHILDREN’S SERVICES.—The term ‘children’s services’
means the provision on a routine or regular basis of health,
day care, education, or library services—
‘‘(A) that are funded, after the date of enactment of
the No Child Left Behind Act of 2001, directly by the
Federal Government or through State or local governments,
by Federal grant, loan, loan guarantee, or contract
programs—
‘‘(i) administered by either the Secretary of Health
and Human Services or the Secretary of Education
(other than services provided and funded solely under
titles XVIII and XIX of the Social Security Act); or
‘‘(ii) administered by the Secretary of Agriculture
in the case of a clinic (as defined in part 246.2 of
title 7, Code of Federal Regulations (or any cor-
responding similar regulation or ruling)) under section
17(b)(6) of the Child Nutrition Act of 1966; or
‘‘(B) that are provided in indoor facilities that are con-
structed, operated, or maintained with such Federal funds,
as determined by the appropriate head of a Federal agency
in any enforcement action carried out under this part,
except that nothing in clause (ii) of subparagraph (A) is
intended to include facilities (other than clinics) where coupons
are redeemed under the Child Nutrition Act of 1966.
‘‘(3) INDOOR
FACILITY.—The term ‘indoor facility’ means
a building that is enclosed.
‘‘(4) PERSON.—The term ‘person’ means any State or local
subdivision of a State, agency of such State or subdivision,
corporation, or partnership that owns or operates or otherwise
controls and provides children’s services or any individual who
owns or operates or otherwise controls and provides such serv-
ices.
H. R. 1—350
‘‘(5) SECRETARY.—The term ‘Secretary’ means the Secretary
of Health and Human Services.
‘‘SEC. 4303. NONSMOKING POLICY FOR CHILDREN’S SERVICES.
‘‘(a) PROHIBITION.—After the date of enactment of the No Child
Left Behind Act of 2001, no person shall permit smoking within
any indoor facility owned or leased or contracted for, and utilized,
by such person for provision of routine or regular kindergarten,
elementary, or secondary education or library services to children.
‘‘(b) ADDITIONAL PROHIBITION.—
‘‘(1) IN GENERAL.—After the date of enactment of the No
Child Left Behind Act of 2001, no person shall permit smoking
within any indoor facility (or portion of such a facility) owned
or leased or contracted for, and utilized by, such person for
the provision of regular or routine health care or day care
or early childhood development (Head Start) services.
‘‘(2) EXCEPTION.—Paragraph (1) shall not apply to—
‘‘(A) any portion of such facility that is used for
inpatient hospital treatment of individuals dependent on,
or addicted to, drugs or alcohol; and
‘‘(B) any private residence.
‘‘(c) FEDERAL AGENCIES.—
‘‘(1) KINDERGARTEN, ELEMENTARY, OR
SECONDARY
EDU-
CATION
OR
LIBRARY
SERVICES.—After the date of enactment
of the No Child Left Behind Act of 2001, no Federal agency
shall permit smoking within any indoor facility in the United
States operated by such agency, directly or by contract, to
provide routine or regular kindergarten, elementary, or sec-
ondary education or library services to children.
‘‘(2) HEALTH OR DAY CARE OR EARLY CHILDHOOD DEVELOP-
MENT SERVICES.—
‘‘(A) IN GENERAL.—After the date of enactment of the
No Child Left Behind Act of 2001, no Federal agency shall
permit smoking within any indoor facility (or portion of
such facility) operated by such agency, directly or by con-
tract, to provide routine or regular health or day care
or early childhood development (Head Start) services to
children.
‘‘(B) EXCEPTION.—Subparagraph (A) shall not apply
to—
‘‘(i) any portion of such facility that is used for
inpatient hospital treatment of individuals dependent
on, or addicted to, drugs or alcohol; and
‘‘(ii) any private residence.
‘‘(3) APPLICATION OF PROVISIONS.—The provisions of para-
graph (2) shall also apply to the provision of such routine
or regular kindergarten, elementary or secondary education
or library services in the facilities described in paragraph (2)
not subject to paragraph (1).
‘‘(d) NOTICE.—The prohibitions in subsections (a) through (c)
shall be published in a notice in the Federal Register by the Sec-
retary (in consultation with the heads of other affected agencies)
and by such agency heads in funding arrangements involving the
provision of children’s services administered by such heads. Such
prohibitions shall be effective 90 days after such notice is published,
or 270 days after the date of enactment of the No Child Left
Behind Act of 2001, whichever occurs first.
H. R. 1—351
‘‘(e) CIVIL PENALTIES.—
‘‘(1) IN GENERAL.—Any failure to comply with a prohibition
in this section shall be considered to be a violation of this
section and any person subject to such prohibition who commits
such violation may be liable to the United States for a civil
penalty in an amount not to exceed $1,000 for each violation,
or may be subject to an administrative compliance order, or
both, as determined by the Secretary. Each day a violation
continues shall constitute a separate violation. In the case
of any civil penalty assessed under this section, the total
amount shall not exceed 50 percent of the amount of Federal
funds received under any title of this Act by such person
for the fiscal year in which the continuing violation occurred.
For the purpose of the prohibition in subsection (c), the term
‘person’, as used in this paragraph, shall mean the head of
the applicable Federal agency or the contractor of such agency
providing the services to children.
‘‘(2) ADMINISTRATIVE PROCEEDING.—A civil penalty may be
assessed in a written notice, or an administrative compliance
order may be issued under paragraph (1), by the Secretary
only after an opportunity for a hearing in accordance with
section 554 of title 5, United States Code. Before making such
assessment or issuing such order, or both, the Secretary shall
give written notice of the assessment or order to such person
by certified mail with return receipt and provide information
in the notice of an opportunity to request in writing, not later
than 30 days after the date of receipt of such notice, such
hearing. The notice shall reasonably describe the violation and
be accompanied with the procedures for such hearing and a
simple form that may be used to request such hearing if such
person desires to use such form. If a hearing is requested,
the Secretary shall establish by such certified notice the time
and place for such hearing, which shall be located, to the
greatest extent possible, at a location convenient to such person.
The Secretary (or the Secretary’s designee) and such person
may consult to arrange a suitable date and location where
appropriate.
‘‘(3) CIRCUMSTANCES
AFFECTING
PENALTY
OR
ORDER.—In
determining the amount of the civil penalty or the nature
of the administrative compliance order, the Secretary shall
take into account, as appropriate—
‘‘(A) the nature, circumstances, extent, and gravity of
the violation;
‘‘(B) with respect to the violator, any good faith efforts
to comply, the importance of achieving early and permanent
compliance, the ability to pay or comply, the effect of the
penalty or order on the ability to continue operation, any
prior history of the same kind of violation, the degree
of culpability, and any demonstration of willingness to
comply with the prohibitions of this section in a timely
manner; and
C) such other matters as justice may require.
‘‘(4) MODIFICATION.—The Secretary may, as appropriate,
compromise, modify, or remit, with or without conditions, any
civil penalty or administrative compliance order. In the case
of a civil penalty, the amount, as finally determined by the
Secretary or agreed upon in compromise, may be deducted
H. R. 1—353
‘‘(2) To provide funding to enable State educational agencies
and local educational agencies to implement promising edu-
cational reform programs and school improvement programs
based on scientifically based research.
‘‘(3) To provide a continuing source of innovation and edu-
cational improvement, including support programs to provide
library services and instructional and media materials.
‘‘(4) To meet the educational needs of all students, including
at-risk youth.
‘‘(5) To develop and implement education programs to
improve school, student, and teacher performance, including
professional development activities and class size reduction pro-
grams.
‘‘(b) STATE AND LOCAL RESPONSIBILITY.—The State educational
agency shall bear the basic responsibility for the administration
of funds made available under this part, but it is the intent of
Congress that the responsibility be carried out with a minimum
of paperwork and that the responsibility for the design and
implementation of programs assisted under this part be mainly
that of local educational agencies, school superintendents and prin-
cipals, and classroom teachers and supporting personnel, because
local educational agencies and individuals have the most direct
contact with students and are most likely to be able to design
programs to meet the educational needs of students in their own
school districts.
‘‘Subpart 1—State and Local Programs
‘‘SEC. 5111. ALLOTMENT TO STATES.
‘‘(a) IN GENERAL.—From the sums appropriated to carry out
this part for each fiscal year and not reserved under subsection
(b), the Secretary shall allot, and make available in accordance
with this part, to each State educational agency an amount that
bears the same ratio to such sums as the school-age population
of the State bears to the school-age population of all States, except
that no State shall receive less than an amount equal to one-
half of 1 percent of such sums.
‘‘(b) RESERVATION.—From the sums appropriated to carry out
this part for each fiscal year, the Secretary shall reserve not more
than 1 percent for payments to the outlying areas, to be allotted
in accordance with their respective needs for assistance under this
part.
‘‘SEC. 5112. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.
‘‘(a) DISTRIBUTION RULE.—
‘‘(1) ALLOCATION
OF
BASE
AMOUNTS.—From the amount
made available to a State educational agency under this part
for a fiscal year, the State educational agency shall distribute,
to local educational agencies within the State, an amount that
is not less than 85 percent of the amount made available
to the State educational agency under this part for fiscal year
2002, according to the relative enrollments in public and in
private nonprofit schools within the jurisdictions of such local
educational agencies, adjusted, in accordance with criteria
H. R. 1—354
approved by the Secretary, to provide higher per-pupil alloca-
tions to local educational agencies that have the greatest num-
bers or percentages of children whose education imposes a
higher-than-average cost per child, such as—
‘‘(A) children living in areas with high concentrations
of economically disadvantaged families;
‘‘(B) children from economically disadvantaged families;
and
‘‘(C) children living in sparsely populated areas.
‘‘(2) ALLOCATION
OF
INCREASED
AMOUNTS.—From the
amount made available to a State educational agency under
this part for a fiscal year that exceeds the amount made avail-
able to the agency under this part for fiscal year 2002, the
State educational agency shall distribute 100 percent (or, in
the case of a State educational agency receiving a minimum
allotment under section 5111(a), not less than 50 percent, not-
withstanding subsection (b)) to local educational agencies
within the State, on the same basis as the State educational
agency distributes amounts under paragraph (1).
‘‘(b) LIMITATIONS AND REQUIREMENTS.—Not more than 15 per-
cent of funds made available under section 5111 for State programs
under this part for any fiscal year may be used for State administra-
tion under section 5121.
‘‘(c) CALCULATION OF ENROLLMENTS.—
‘‘(1) IN GENERAL.—The calculation of relative enrollments
under subsection (a)(1) shall be on the basis of the total of—
‘‘(A) the number of children enrolled in public schools;
and
‘‘(B) the number of children enrolled in private non-
profit schools that participated in programs assisted under
this part, for the fiscal year preceding the fiscal year for
which the determination is made.
‘‘(2) RULE OF CONSTRUCTION.—Nothing in this subsection
shall diminish the responsibility of each local educational
agency to contact, on an annual basis, appropriate officials
from private nonprofit schools within the areas served by such
agencies in order to determine whether such schools desire
that their children participate in programs assisted under this
part.
‘‘(3) ADJUSTMENTS.—
‘‘(A) STATE CRITERIA.—Relative enrollments calculated
under subsection (a)(1) shall be adjusted, in accordance
with criteria approved by the Secretary under subpara-
graph (B), to provide higher per-pupil allocations only to
local educational agencies that serve the greatest numbers
or percentages of—
‘‘(i) children living in areas with high concentra-
tions of economically disadvantaged families;
‘‘(ii) children from economically disadvantaged
families; or
‘‘(iii) children living in sparsely populated areas.
‘‘(B) REVIEW OF CRITERIA.—The Secretary shall review
criteria submitted by a State educational agency for
adjusting allocations under paragraph (1) and shall approve
such criteria only if the Secretary determines that such
criteria are reasonably calculated to produce an adjusted
allocation that reflects the relative needs of the State’s
H. R. 1—355
local educational agencies based on the factors set forth
in subparagraph (A).
‘‘(d) PAYMENT OF ALLOCATIONS.—
‘‘(1) DISTRIBUTION.—From the funds paid to a State edu-
cational agency under this subpart for a fiscal year, the State
educational agency shall distribute to each eligible local edu-
cational agency that has submitted an application as required
by section 5133 the amount of such local educational agency’s
allocation, as determined under subsection (a).
‘‘(2) ADDITIONAL FUNDS.—
‘‘(A) USE.—Additional funds resulting from higher per-
pupil allocations provided to a local educational agency
on the basis of adjusted enrollments of children described
in subsection (a)(1) may, in the discretion of the local
educational agency, be allocated for expenditures to provide
services for children enrolled in public schools and private
nonprofit schools in direct proportion to the number of
children described in subsection (a)(1) and enrolled in such
schools within the area served by the local educational
agency.
‘‘(B) ALLOCATION.—In any fiscal year, any local edu-
cational agency that elects to allocate such additional funds
in the manner described in subparagraph (A) shall allocate
all additional funds to schools within the area served by
the local educational agency in such manner.
‘‘(C) RULE OF CONSTRUCTION.—Subparagraphs (A) and
(B) may not be construed to require any school to limit
the use of the additional funds described in subparagraph
(A) to the provision of services to specific students or cat-
egories of students.
‘‘Subpart 2—State Programs
‘‘SEC. 5121. STATE USES OF FUNDS.
‘‘A State educational agency may use funds made available
for State use under section 5112(b) only for one or more of the
following:
‘‘(1) State administration of programs under this part,
including—
‘‘(A) allocating funds to local educational agencies;
‘‘(B) planning, supervising, and processing State edu-
cational agency funds; and
‘‘(C) monitoring and evaluating programs under this
part.
‘‘(2) Support for the planning, design, and initial
implementation of charter schools as described in part B.
‘‘(3) Statewide education reform, school improvement pro-
grams and technical assistance and direct grants to local edu-
cational agencies, which assist such agencies under section
5131.
‘‘(4) Support for the design and implementation of high-
quality yearly student assessments.
‘‘(5) Support for implementation of challenging State and
local academic achievement standards.
‘‘(6) Support for arrangements that provide for independent
analysis to measure and report on school district achievement.
H. R. 1—356
‘‘(7) Support for the program described in section 321 of
the Departments of Labor, Health and Human Services, and
Education, and Related Agencies Appropriations Act, 2001 (as
enacted into law by section 1(a)(1) of Public Law 106–554).
‘‘(8) Support for programs to assist in the implementation
of the policy described in section 9507 which may include
payment of reasonable transportation costs and tuition costs
for such students.
‘‘SEC. 5122. STATE APPLICATIONS.
‘‘(a) APPLICATION REQUIREMENTS.—Any State that desires to
receive assistance under this part shall submit to the Secretary
an application that includes each of the following:
‘‘(1) Designation of the State educational agency as the
State agency responsible for administration and supervision
of programs assisted under this part.
‘‘(2) Provision for an annual statewide summary of how
assistance under this part is contributing toward improving
student academic achievement or improving the quality of edu-
cation for students.
‘‘(3) Information setting forth the allocation of funds
required to implement section 5142.
‘‘(4) A provision that the State educational agency will
keep such records, and provide such information to the Sec-
retary, as may be required for fiscal audit and program evalua-
tion (consistent with the responsibilities of the Secretary under
this section).
‘‘(5) An assurance that, apart from providing technical and
advisory assistance and monitoring compliance with this part,
the State educational agency has not exercised, and will not
exercise, any influence in the decisionmaking processes of local
educational agencies as to the expenditure made pursuant to
an application submitted under section 5133.
‘‘(6) An assurance that there is compliance with the specific
requirements of this part.
‘‘(7) Provision for timely public notice and public dissemina-
tion of the information provided under paragraph (3).
‘‘(b) STATEWIDE SUMMARY.—The statewide summary referred
to in subsection (a)(2) shall be submitted annually to the Secretary
and shall be derived from the evaluation information submitted
by local educational agencies to the State educational agency under
section 5133(b)(8). The State educational agency shall determine
the format and content of such summary and may include in the
summary statistical measures, such as the number of students
served by each type of innovative assistance program described
in section 5131 and the number of teachers trained.
‘‘(c) PERIOD OF APPLICATION.—An application submitted by the
State educational agency under subsection (a) shall be for a period
not to exceed 3 years. The agency may amend the application
annually, as may be necessary to reflect changes, without filing
a new application.
‘‘(d) AUDIT RULE.—A local educational agency that receives
less than an average of $10,000 under this part for any 3 consecutive
fiscal years shall not be audited more frequently than once every
5 years.
H. R. 1—357
‘‘Subpart 3—Local Innovative Education
Programs
‘‘SEC. 5131. LOCAL USES OF FUNDS.
‘‘(a) INNOVATIVE ASSISTANCE PROGRAMS.—Funds made avail-
able to local educational agencies under section 5112 shall be used
for innovative assistance programs, which may include any of the
following:
‘‘(1) Programs to recruit, train, and hire highly qualified
teachers to reduce class size, especially in the early grades,
and professional development activities carried out in accord-
ance with title II, that give teachers, principals, and administra-
tors the knowledge and skills to provide students with the
opportunity to meet challenging State or local academic content
standards and student academic achievement standards.
‘‘(2) Technology activities related to the implementation
of school-based reform efforts, including professional develop-
ment to assist teachers and other school personnel (including
school library media personnel) regarding how to use technology
effectively in the classrooms and the school library media cen-
ters involved.
‘‘(3) Programs for the development or acquisition and use
of instructional and educational materials, including library
services and materials (including media materials), academic
assessments, reference materials, computer software and hard-
ware for instructional use, and other curricular materials that
are tied to high academic standards, that will be used to
improve student academic achievement, and that are part of
an overall education reform program.
‘‘(4) Promising education reform projects, including magnet
schools.
‘‘(5) Programs to improve the academic achievement of
educationally disadvantaged elementary school and secondary
school students, including activities to prevent students from
dropping out of school.
‘‘(6) Programs to improve the literacy skills of adults, espe-
cially the parents of children served by the local educational
agency, including adult education and family literacy programs.
‘‘(7) Programs to provide for the educational needs of gifted
and talented children.
‘‘(8) The planning, design, and initial implementation of
charter schools as described in part B.
‘‘(9) School improvement programs or activities under sec-
tions 1116 and 1117.
‘‘(10) Community service programs that use qualified school
personnel to train and mobilize young people to measurably
strengthen their communities through nonviolence, responsi-
bility, compassion, respect, and moral courage.
‘‘(11) Activities to promote consumer, economic, and per-
sonal finance education, such as disseminating information on
and encouraging use of the best practices for teaching the
basic principles of economics and promoting the concept of
achieving financial literacy through the teaching of personal
financial management skills (including the basic principles
involved with earning, spending, saving, and investing).
H. R. 1—358
‘‘(12) Activities to promote, implement, or expand public
school choice.
‘‘(13) Programs to hire and support school nurses.
‘‘(14) Expansion and improvement of school-based mental
health services, including early identification of drug use and
violence, assessment, and direct individual or group counseling
services provided to students, parents, and school personnel
by qualified school-based mental health services personnel.
‘‘(15) Alternative educational programs for those students
who have been expelled or suspended from their regular edu-
cational setting, including programs to assist students to
reenter the regular educational setting upon return from treat-
ment or alternative educational programs.
‘‘(16) Programs to establish or enhance prekindergarten
programs for children.
‘‘(17) Academic intervention programs that are operated
jointly with community-based organizations and that support
academic enrichment, and counseling programs conducted
during the school day (including during extended school day
or extended school year programs), for students most at risk
of not meeting challenging State academic achievement stand-
ards or not completing secondary school.
‘‘(18) Programs for cardiopulmonary resuscitation (CPR)
training in schools.
‘‘(19) Programs to establish smaller learning communities.
‘‘(20) Activities that encourage and expand improvements
throughout the area served by the local educational agency
that are designed to advance student academic achievement.
‘‘(21) Initiatives to generate, maintain, and strengthen
parental and community involvement.
‘‘(22) Programs and activities that expand learning
opportunities through best-practice models designed to improve
classroom learning and teaching.
‘‘(23) Programs to provide same-gender schools and class-
rooms (consistent with applicable law).
‘‘(24) Service learning activities.
‘‘(25) School safety programs, including programs to imple-
ment the policy described in section 9507 and which may
include payment of reasonable transportation costs and tuition
costs for such students.
‘‘(26) Programs that employ research-based cognitive and
perceptual development approaches and rely on a diagnostic-
prescriptive model to improve students’ learning of academic
content at the preschool, elementary, and secondary levels.
‘‘(27) Supplemental educational services, as defined in sec-
tion 1116(e).
‘‘(b) REQUIREMENTS.—The innovative assistance programs
described in subsection (a) shall be—
‘‘(1) tied to promoting challenging academic achievement
standards;
‘‘(2) used to improve student academic achievement; and
‘‘(3) part of an overall education reform strategy.
‘‘(c) GUIDELINES.—Not later than 120 days after the date of
enactment of the No Child Left Behind Act of 2001, the Secretary
shall issue guidelines for local educational agencies seeking funding
for programs described in subsection (a)(23).
H. R. 1—359
‘‘SEC. 5132. ADMINISTRATIVE AUTHORITY.
‘‘In order to conduct the programs authorized by this part,
each State educational agency or local educational agency may
use funds made available under this part to make grants to, and
to enter into contracts with, local educational agencies, institutions
of higher education, libraries, museums, and other public and pri-
vate nonprofit agencies, organizations, and institutions.
‘‘SEC. 5133. LOCAL APPLICATIONS.
‘‘(a) SUBMISSION OF APPLICATION.—A local educational agency
may receive an allocation of funds under this part for any year
for which the agency submits an application under this section
that the State educational agency certifies under subsection (b).
‘‘(b) CERTIFICATION AND CONTENTS OF APPLICATION.—The State
educational agency shall certify each application submitted under
subsection (a) that includes each of the following:
‘‘(1) A description of locally identified needs relative to
the purposes of this part and to the innovative assistance
programs described in section 5131.
‘‘(2) A statement that sets forth the planned allocation
of funds, based on the needs identified in subparagraph (A),
among innovative assistance programs described in section
5131, a description of the programs that the local educational
agency intends to support, and a description of the reasons
for the selection of such programs.
‘‘(3) Information setting forth the allocation of such funds
required to implement section 5142.
‘‘(4) A description of how assistance under this part will
contribute to improving student academic achievement or
improving the quality of education for students.
‘‘(5) An assurance that the local educational agency will
comply with this part, including the provisions of section 5142
concerning the participation of children enrolled in private non-
profit schools.
‘‘(6) An assurance that the local educational agency will
keep such records, and provide such information to the State
educational agency, as may be reasonably required for fiscal
audit and program evaluation (consistent with the responsibil-
ities of the State educational agency under this part).
‘‘(7) Provision, in the allocation of funds for the assistance
authorized by this part and in the planning, design, and
implementation of such innovative assistance programs, for
systematic consultation with parents of children attending
elementary schools and secondary schools in the area served
by the local educational agency, with teachers and administra-
tive personnel in such schools, and with such other groups
involved in the implementation of this part (such as librarians,
school counselors, and other pupil services personnel) as may
be considered appropriate by the local educational agency.
‘‘(8) An assurance that—
‘‘(A) programs carried out under this part will be evalu-
ated annually;
‘‘(B) the evaluation will be used to make decisions
about appropriate changes in programs for the subsequent
year;
‘‘(C) the evaluation will describe how assistance under
this part affected student academic achievement and will
H. R. 1—360
include, at a minimum, information and data on the use
of funds, the types of services furnished, and the students
served under this part; and
‘‘(D) the evaluation will be submitted to the State
educational agency at the time and in the manner
requested by the State educational agency.
‘‘(9) If the local educational agency seeks funds under sec-
tion 5131(a)(23), a description of how the agency will comply
with the guidelines issued by the Secretary regarding same-
gender schools and classrooms under section 5131(c).
‘‘(c) PERIOD OF APPLICATION.—An application submitted by a
local educational agency under subsection (a) may seek allocations
under this part for a period not to exceed 3 fiscal years. The
agency may amend the application annually, as may be necessary
to reflect changes, without the filing of a new application.
‘‘(d) LOCAL EDUCATIONAL AGENCY DISCRETION.—
‘‘(1) IN GENERAL.—Subject to the limitations and require-
ments of this part, a local educational agency shall have com-
plete discretion in determining how funds made available to
carry out this subpart will be divided among programs described
in section 5131.
‘‘(2) LIMITATION.—In exercising the discretion described in
paragraph (1), a local educational agency shall ensure that
expenditures under this subpart carry out the purposes of this
part and are used to meet the educational needs within the
schools served by the local educational agency.
‘‘Subpart 4—General Provisions
‘‘SEC. 5141. MAINTENANCE OF EFFORT.
‘‘(a) IN GENERAL.—Except as provided in subsection (b), a State
educational agency is entitled to receive its full allotment of funds
under this part for any fiscal year only if the Secretary determines
that either the combined fiscal effort per student or the aggregate
expenditures within the State, with respect to the provision of
free public education for the fiscal year preceding the fiscal year
for which the determination is made, was not less than 90 percent
of such combined fiscal effort or aggregate expenditures for the
second fiscal year preceding the fiscal year for which the determina-
tion is made.
‘‘(b) REDUCTION OF FUNDS.—The Secretary shall reduce the
amount of the allotment of funds under this part in any fiscal
year in the exact proportion by which the State educational agency
fails to meet the requirements of subsection (a) by falling below
90 percent of the fiscal effort per student or aggregate expenditures
(using the measure most favorable to the State educational agency),
and no such lesser amount shall be used for computing the effort
or expenditures required under paragraph (1) for subsequent years.
‘‘(c) WAIVER.—The Secretary may waive, for 1 fiscal year only,
the requirements of this section, if the Secretary determines that
such a waiver would be equitable due to exceptional or uncontrol-
lable circumstances, such as a natural disaster or a precipitous
and unforeseen decline in the financial resources of the State edu-
cational agency.
H. R. 1—361
‘‘SEC. 5142. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE
SCHOOLS.
‘‘(a) PARTICIPATION ON EQUITABLE BASIS.—
‘‘(1) IN GENERAL.—To the extent consistent with the number
of children in the school district of a local educational agency
that is eligible to receive funds under this part, or that serves
the area in which a program assisted under this part is located,
who are enrolled in private nonprofit elementary schools and
secondary schools, or, with respect to instructional or personnel
training programs funded by the State educational agency from
funds made available for State educational agency use, the
local educational agency, after consultation with appropriate
private school officials—
‘‘(A) shall provide, as may be necessary, for the benefit
of such children in such schools—
‘‘(i) secular, neutral, and nonideological services,
materials, and equipment, including the participation
of the teachers of such children (and other educational
personnel serving such children) in training programs;
and
‘‘(ii) the repair, minor remodeling, or construction
of public facilities (consistent with subsection (c)); or
‘‘(B) if such services, materials, and equipment are
not feasible or necessary in one or more such private
schools, as determined by the local educational agency after
consultation with the appropriate private school officials,
shall provide such other arrangements as will assure equi-
table participation of such children in the purposes and
benefits of this part.
‘‘(2) OTHER PROVISIONS FOR SERVICES.—If no program is
carried out under paragraph (1) in the school district of a
local educational agency, the State educational agency shall
make arrangements, such as through contracts with nonprofit
agencies or organizations, under which children in private
schools in the district are provided with services and materials
to the same extent as would have occurred if the local edu-
cational agency had received funds under this part.
‘‘(3) APPLICATION OF REQUIREMENTS.—The requirements of
this section relating to the participation of children, teachers,
and other personnel serving such children shall apply to pro-
grams carried out under this part by a State educational agency
or local educational agency, whether directly or through grants
to, or contracts with, other public or private agencies, institu-
tions, or organizations.
‘‘(b) EQUAL EXPENDITURES.—
‘‘(1) IN GENERAL.—Expenditures for programs under sub-
section (a) shall be equal (consistent with the number of chil-
dren to be served) to expenditures for programs under this
part for children enrolled in the public schools of the local
educational agency.
‘‘(2) CONCENTRATED PROGRAMS.—Taking into account the
needs of the individual children and other factors that relate
to the expenditures referred to in paragraph (1), and when
funds available to a local educational agency under this part
are used to concentrate programs on a particular group, attend-
ance area, or grade or age level, children enrolled in private
schools who are included within the group, attendance area,