(A) financial assistance shall be distributed
by the State in accordance with the provisions
of section 101;
(B) the State shall provide such fiscal con-
trol and funds accounting as the Secretary may
require; and
(C) financial assistance provided under
section 101 shall supplement, not supplant,
State and local funds made available for activi-
ties authorized under sections 102, 103, and
104;
(6) describe how business, industry, and other
public and private agencies including libraries, lit-
eracy programs, institutions of higher education, and
the Regional Technology Assistance Consortia can
participate in the implementation, ongoing planning,
and support of the plan;
(7) delineate educational problems and needs in
the State, describe all learning environments sup-
ported by the State plan, and specify how the appli-
cation of technology will address those and other
needs including but not limited to the special needs
of—
(A) urban and rural schools;
(B) students with disabilities; and
(C) students who are underrepresented in
the population at large;
(8) provide assurances that—
(A) during the 5-year period of the plan,
the State shall evaluate its standards for teach-
er preparation in the use of technology; and
(B) programs conducted with State funds
available under this title shall be evaluated and
an evaluation report shall be submitted to the
Secretary at the close of the second year of
funding and every 2 years thereafter, and such
evaluation report shall include, but not be lim-
ited to—
(i) statistics on the number of stu-
dents and teachers involved in these pro-
grams, the use of educational technology,
the status of infrastructure development,
and the allocation of resources for the pur-
poses provided for under this Act;
(ii) progress on meeting the provisions
of section 105(b)(7); and
(iii) a summary of the evaluations of
programs funded under sections 102, 103,
and 104;
(9) document how the plan is coordinated with
other State educational plans;
(10) assure that educators involved in the devel-
opment of the plan represent the ethnic balance and
all geographic areas of the State;
(11) describe how the State educational agency
will promote the purchase of equipment by local
school districts and schools that, when placed in op-
eration, will provide the greatest accessibility and eq-
uity for students and meet the highest level of inter-
operability and open system design among—
(A) telecommunications and technology
hardware and software either when used on a
stand-alone basis or when connected together
within a local area network, a wide area net-
work, or Federal, State and regional networks;
and
(B) schools within the State;
(12) describe the State’s strategy for ensuring
that teachers, administrators and other education
personnel have access to the necessary staff develop-
ment and technical assistance to effectively apply the
appropriate technologies to improve teaching, learn-
ing, school management, and the electronic transfer
of, and access to, information;
(13) establish a method for continuously gath-
ering and disseminating current and emerging infor-
mation on all aspects of educational technology to all
educators within the State;
(14) describe how the State’s planned use of
technology is supportive of the national education
goals;
(15) provide an evaluation method for the State
plan; and
(16) create a planning process through which
such plan is reviewed and updated periodically.
(c) APPROVAL OF PLANS.—(1) The State education
agency shall submit a plan for approval to the Secretary,
who shall —
(A) send such plans to the Educational Tech-
nology Council, created under section 201, and to
the Educational Technology Authority for review;
and
(B) expeditiously approve such State plan upon
receiving a favorable review from the Educational
Technology Council, and the Educational Technology
Authority.
(2) Any State that submits a plan that is not
approved shall receive assistance from the Secretary to
improve its plan.
(3) If, after receiving assistance, a State plan fails
to receive a favorable review, the State shall have the right
to appeal to the Secretary, who shall convene a hearing
to review the plan within 30 days of receiving the request.
(4) A State shall be ineligible to have its plans ap-
proved or to continue to receive funding for an approved
plan if within the previous 24 months it reduced funding
for educational technology programs and activities within
the State by more than 20 percent, unless the State can
document that funding will be restored to at least 80 per-
cent of its previous funding level.
SEC. 106. LOCAL EDUCATIONAL TECHNOLOGY PLAN.
(a) APPLICATION.—A local education agency that de-
sires to receive financial assistance under section 102,
shall submit to the State education agency (singly or in
conjunction with other local education agencies, institu-
tions of higher education, or an intermediate educational
unit) a plan which covers a 3-year period.
(b) CONTENTS OF THE PLAN.—A local education
agency plan shall—
(1) describe how the local education agency will
use funds received under this subpart to improve the
use of technology in student learning with particular
attention to the needs of students with disabilities
and students who are underrepresented in the popu-
lation at large;
(2) describe how funds received under this Title
will be coordinated with State and local and other
Federal resources;
(3) describe how the programs will use other re-
sources of the community, including libraries, and
involve public agencies, private industry, institutions
of higher education, public and private nonprofit or-
ganizations, and other appropriate institutions such
as the Regional Educational Technical Assistance
Consortia;
(4) assure that the programs will be evaluated,
and outcomes reported in terms of —
(A) the level of implementation of the tech-
nology-based resources funded by this Act;
(B) the impact on teaching and learning;
(C) the changes in the learning environ-
ment or educational program; and
(D) the extent to which the school or other
appropriate learning environments will sustain
the project after funding is terminated;
(5) be consistent with district level planning for
educational technology, and shall support the local
and State’s curriculum frameworks;
(6) be developed in concert with Federal, State
and local policies, as appropriate, including Chapter
1;
(7) make provision for technical support and
professional development as needed for individual
teachers to develop and implement technology-
assisted instruction; and
(8) provide a strategy for the enhanced involve-
ment of parents through the use of technology.
(c) CONTINUATION OF PAYMENTS.—The State edu-
cation agency shall make payments to local education
agencies in accordance with section 105(b)(2) to carry
out—-
(1) the first and second year activities based
upon the application; and
(2) the third year activities under this section,
if the local education agency is making adequate
progress toward implementing the plan described in
section 106(b).
The State education agency will not disapprove an applica-
tion and discontinue payments without notice.
SEC. 107. FEDERAL ADMINISTRATION.
(a) EVALUATION
PROCEDURES.—The Secretary
shall, with State and local representatives, develop proce-
dures for State and local evaluations of the programs
under this title.
(b) EVALUATION SUMMARY.—The Secretary shall
submit to the Congress 3 years after the enactment of this
Act and every 2 years thereafter a summary of the State
evaluations of programs under this subpart.
TITLE II—EDUCATIONAL
TECHNOLOGY GOVERNANCE
SEC. 201. EDUCATIONAL TECHNOLOGY COUNCIL.
Title II of the Department of Education Organization
Act (20 U.S.C. 3411 et seq.) is amended by adding at
the end thereof the following new section:
‘‘SEC. 205A. EDUCATIONAL TECHNOLOGY COUNCIL.
‘‘(a) PURPOSE.—To establish within the Department
of Education a council to promote intra- and interagency
utilization and coordination of technology and educational-
technology programs to improve learning, to represent
public education’s technology needs to regulatory agencies
and to the Nation, and to review the State plans.
‘‘(b) ESTABLISHMENT.—
‘‘(1) COUNCIL
ESTABLISHED.—The Secretary
shall establish within the Department of Education
an Educational Technology Council.
‘‘(2) COUNCIL HEAD.—The Educational Tech-
nology Council (herein referred to as the ‘‘Council’’)
shall be headed by the Deputy Secretary of Edu-
cation or his or her designee.
‘‘(c) COUNCIL MEMBERSHIP.—The Deputy Secretary
shall appoint 9 members to the Council, of whom —
‘‘(1) five members shall be personnel from with-
in the Department of Education who have dem-
onstrated competencies or expertise in technology
systems;
‘‘(2) three members shall have past and ongo-
ing experience with education at the State or local
school level or shall be representatives of entities or
organizations with a direct interest in education
technology, such as participants in the Federal edu-
cation research and development system; and
‘‘(3) one member shall be a member of the
Board of Directors of the Educational Technology
Authority.
‘‘(d) PERSONNEL.—In order to carry out the provi-
sions of this section, the Deputy Secretary may appoint
personnel in accordance with title 5, United States Code,
and may compensate such personnel in accordance with
the General Schedule described in section 5332 of title 5,
United States Code.
‘‘(e) FUNCTIONS OF THE COUNCIL.—The Council,
through the Deputy Secretary, shall—
‘‘(1) coordinate educational technology pro-
grams and issues within the Department of Edu-
cation by—
‘‘(A) providing leadership for policy devel-
opment and the coordination of technology-re-
lated education activities;
‘‘(B) reviewing and, if appropriate, rec-
ommending for approval State educational tech-
nology plans submitted to the Secretary under
section 105 for their educational feasibility;
‘‘(C) conducting forums throughout the
country on education technology applications;
‘‘(D) providing technical assistance on the
educational aspects of technology uses as need-
ed and appropriate to States in the preparation
of State plans under section 105;
‘‘(E) making recommendations for wider
applications of the use of technology in the De-
partment’s education programs;
‘‘(F) collaborating with the Educational
Technology Authority to—
‘‘(i) establish priorities related to the
application of technology and technology-
based resources in education;
‘‘(ii) suggest roles for business and in-
dustry to collaborate with educational enti-
ties and agencies at the regional and State
level; and
‘‘(iii) determine the procedures for
making grants under section 202(i);
‘‘(G) coordinating with the Regional Edu-
cational Technology Assistance Consortia to en-
sure that State and local education agencies
have access to information, technology pro-
grams, inservice programs for teachers, and
other resources made possible by this Act;
‘‘(2) represent the Department of Education
with other agencies and Departments of the Federal
Government on technology issues by—
‘‘(A) working with relevant Federal agen-
cies to reduce regulatory barriers and costs
which prevent schools from integrating tech-
nology into the classroom;
‘‘(B) consulting and cooperating with other
Federal agencies to coordinate educational tech-
nology programs with analogous programs in
other agencies and to initiate interagency agree-
ments for the joint funding of such programs;
and
‘‘(C) collaborating with the Regional Edu-
cational Technology Assistance Consortia to—
‘‘(i) facilitate the education commu-
nity’s assessment and effective utilization
of appropriate information resources pro-
duced and distributed electronically by
projects of the Education Department and
other Federal agencies; and
‘‘(ii) establish, in conjunction with the
Federal Coordinating Council on Science,
Engineering and Technology and other
Federal agencies, cost effective integration,
utilization and upgrading of technology in
schools.’’.
SEC. 202. EDUCATIONAL TECHNOLOGY AUTHORITY.
(a) PURPOSE.—The Congress hereby declares that it
is the purpose of this section to establish a private, not-
for-profit, corporation to—
(1) provide financing and technological system
design assistance to educational institutions to en-
able them to acquire educational technology to im-
prove the productivity of the nation’s education sec-
tor; and
(2) assure equal access to educational tech-
nologies for all users regardless of age, race, eth-
nicity, or disability.
(b) ESTABLISHMENT.—(1) There is hereby estab-
lished a nonprofit corporation to be known as the Edu-
cational Technology Authority (hereinafter referred to as
the ‘‘Authority’’) which shall—
(A) review and, if appropriate, recommend for
approval State plans under section 105; and
(B) receive and allocate private, unrestricted
funding and resources to support and augment pro-
grams and projects established under the provisions
of this Act.
(2) Such Authority shall maintain its principal office
in the District of Columbia and shall be deemed, for the
purposes of venue and jurisdiction in civil actions, to be
a resident and citizen thereof.
(3) Offices may be established by the Authority in
such other place or places as it may deem necessary or
appropriate for the conduct of its business.
(c) EXEMPTION FROM STATE AND LOCAL TAXES.—
The Authority, including its franchise, capital, reserves,
surplus, mortgages, or other security holdings, and income
shall be exempt from all taxation now or hereafter imposed
by any State, territory, possession, Commonwealth, or de-
(A) three directors shall be from represent-
atives of banks or other financial institutions;
(B) one director shall be an expert in
school finance;
(C) two directors shall be representatives
of major companies that develop and distribute
technology-based products used in the instruc-
tion of students from grades K–12;
(D) two directors shall be experts in tech-
nological system design;
(E) one director shall be a representative
of local education agencies; and
(F) one director shall be a representative
of State education agencies.
(3) TERMS OF APPOINTED MEMBERS.—The Di-
rectors appointed by the President, the Speaker of
the House, and the Majority Leader of the Senate
shall serve at the pleasure of the President, the
Speaker, or the Majority Leader and until their suc-
cessors have been appointed and have qualified.
(4) MEETINGS.—The Board of Directors shall
meet at the call of its Chairman, but at least semi-
annually.
(5) FUNCTIONS OF THE BOARD.—
(A) The Board shall determine the general
policies which shall govern the operations of the
Authority.
(B) The Board shall adopt, amend, and re-
peal such bylaws, rules and regulations as may
be necessary to—
(i) conduct its business; and
(ii) establish offices of the Authority
and prescribe their executive functions,
powers and duties.
(C) The Chairman of the Board shall, with
the approval of the Board, select, appoint, and
compensate qualified persons to fill the offices
of the Authority to discharge all such executive
functions, powers, and duties as may be pre-
scribed in the bylaws or by the Board of Direc-
tors.
(f) DUTIES OF THE AUTHORITY.—The duties of the
Authority shall include, but not be limited to—
(1) reviewing and, if appropriate, recommend-
ing for approval State plans under section 105 for
their fiscal and technological feasibility to determine
whether such plans—
(A) contribute to the development of an
interoperable system that will enable local
school districts, schools, classrooms, and stu-
dents nationwide to communicate via computer
systems, visual transmission systems including
broadband, closed circuit, cable, fiber optics,
microwave, or satellite transmission, the use of
video cassettes, video disc, and other systems or
devicses which produce visual images, and other
technological methods utilizing where needed
the Regional Educational Technology Assist-
ance Consortia; and
(B) contain a variety of funding proce-
dures that consider the special needs of districts
with high proportions of at-risk students or stu-
dents with disabilities and may include low-in-
terest loans or guarantees for loans for edu-
cational institutions to acquire, install, and use
learning technologies;
(2) providing technical assistance to States on
the fiscal aspects of the State plan and, in consulta-
tion with the Regional Educational Technology As-
sistance Consortia, provide assistance on the tech-
nology aspects of the State plans required under sec-
tion 105;
(3) collaborating with the Educational Tech-
nology Council to—
(A) establish priorities related to the appli-
cation of technology and technology-based re-
sources in education;
(B) suggest roles for business and industry
to collaborate with educational entities and
agencies at the regional and State level; and
(C) determine the procedures for making
grants under section 202(i);
(4) developing strategies for soliciting unre-
stricted donations of cash, services or property or
other assets to be used to provide fiscal assistance
for State and local education agency activities which
support the purposes of this Act.
(g) GENERAL CORPORATE POWERS.—The Authority
shall have the power—
(1) to sue and be sued, complain and defend, in
its corporate name and through its own counsel;
(2) to adopt, alter, and use the corporate seal,
which shall be judicially noticed;
(3) to adopt, amend, and repeal by its Board of
Directors, bylaws, rules, and regulations as may be
necessary for the conduct of its business;
(4) to conduct its business, carry on its oper-
ations, and have officers and exercise the power
granted by this section in any State without regard
to any qualification or similar statute in any State;
(5) to lease, purchase, or otherwise acquire,
own, hold, improve, use, or otherwise deal in and
with any property, real, personal, or mixed, tangible
or intangible, in aid of any of the purposes of the
Authority;
(6) to accept unrestricted gifts or donations of
services, or property, real, personal, or mixed, tan-
gible or intangible, in aid of any of the purposes of
the Authority;
(7) to sell, convey, mortgage, pledge, lease, ex-
change, and otherwise dispose of its property and
assets;
(8) to appoint such officers, attorneys, employ-
ees, and agents as may be required, to determine
their qualifications, to define their duties, to fix their
salaries, require bonds for them, and fix the penalty
thereof;
(9) to enter into contracts, to execute instru-
ments, to incur liabilities, and to do all things as are
necessary or incidental to the proper management of
its affairs and the proper conduct of its business;
and
(10) in accordance with the provisions of this
section, to manage the fund created under section
202(i) for holding and distributing all funds and as-
sets made available by private non-profit and profit
making agencies, businesses, industries, and individ-
uals.
(h) ACCOUNTING, AUDITING, AND REPORTING.—The
accounts of the Authority shall be audited annually:
(1) Such audits shall be conducted in accord-
ance with generally accepted auditing standards by
independent certified public accountants or by inde-
pendent licensed public accountants, who are cer-
tified or licensed by a regulatory authority of a State
or other political subdivision of the United States.
(2) A report of each such audit shall be fur-
nished to the Secretary.
(3) The audit shall be conducted at the place or
places where the accounts are normally kept.
(4) Representatives of the Secretary shall —
(A) have access to all books, accounts, fi-
nancial records, reports, files, and all other pa-
pers, things, or property belonging to or in use
by the Authority and necessary to facilitate the
audit; and
(B) be afforded full facilities for verifying
transactions with the balances or securities held
by depositories, fiscal agents, and custodians.
(i) EDUCATIONAL TECHNOLOGY FUND.—
(1) There is hereby established in the Depart-
ment of Education a fund, to be known as the Edu-
cational Technology Fund (hereinafter referred to as
the ‘‘Fund’’) consisting of all funds and assets avail-
able from private nonprofit and profit making agen-
cies, businesses, industries, and individuals.
(2) The assets of the funds shall be available
for the Authority to provide grants to State edu-
cation agencies, local education agencies, or other
entities eligible to receive funding under this Act for
the purposes of augmenting the programs and
projects established under the provisions of this Act.
(j) REPORT ON OPERATIONS AND ACTIVITIES.—The
Authority shall, as soon as practicable, after the end of
each fiscal year, transmit to the President, the Secretary,
and the Congress a report of its operations and activities
during such year.
TITLE III—REGIONAL SUPPORT,
RESEARCH, AND DEVELOPMENT
SEC. 301. REGIONAL EDUCATIONAL TECHNOLOGY ASSIST-
ANCE CONSORTIA.
(a) PURPOSE.—It is the purpose of this section to
establish regional educational technology assistance con-
sortia to serve as regional educational technology re-
sources to facilitate the availability of technology to
schools; information dissemination; professional develop-
ment; technical support; evaluation of educational tech-
nology applications to States, regional educational organi-
zations, local educational agencies, and other appropriate
learning environments and conduct research on appro-
priate applications of educational technology to student
learning.
(b) GRANTS AUTHORIZED.—(1) The Secretary is au-
thorized to make grants to the ten regional educational
laboratories to establish Regional Educational Technology
Assistance Consortia in accordance with the provisions of
this section.
(2) Funds provided under sections 401 and 402(a),
are to be allocated to the 10 Regional Educational Tech-
nology Assistance Consortia based on student population
and with consideration of the geography and other factors
as needed to ensure equitable access to resources provided
by the Regional Educational Technology Assistance Con-
sortia.
(c) FUNCTIONS OF THE CONSORTIA.—The Regional
Educational Technology Assistance Consortia shall—
(1) assist the States to ensure that students, in-
cluding those with special educational needs and of
diverse ethnic backgrounds, and educators in rural,
suburban, or urban communities have access to the
educational benefits provided by the use of tech-
nology;
(2) collaborate with the Council to support the
education community in accessing and effectively
utilizing—
(A) information resources distributed elec-
tronically and produced by projects by the De-
partment of Education and other Federal agen-
cies and programs; and
(B) information, technology programs, in-
service programs for teachers and other re-
sources made possible by this Act;
(3) provide regional access to educational tech-
nology programs, projects, and resources;
(4) establish, in conjunction with the Council,
guidelines for cost effective integration, utilization,
maintenance, and upgrading of technology in the
schools through collaboration with the Federal Co-
ordinating Council on Science, Engineering and
Technology and other Federal agencies;
(5) support the dissemination of information to
local school districts, schools, classrooms, students,
and teachers by fostering—
(A) in conjunction with the Authority, the
development of an interoperable system that
will enable local school districts, schools, class-
rooms, and students to communicate using
computer systems, visual transmission systems,
including broadband, closed circuit, cable, fiber
optics, microwave, or satellite transmission, the
use of video cassettes, video disc, and other sys-
tems or devices which produce visual images, or
other technological methods;
(B) the development of activities that en-
courage the interactive transfer of information
and communication on electronic networks that
utilize the Internet and other existing and
emerging telecommunications networks;
(C) the establishment of a coordinated sys-
tem of distance education combining multiple
technologies, as appropriate, that can serve to
disseminate information and provide interactive
student learning related to new research find-
ings, national educational initiatives, funding
and program resources, and educational tech-
nology developments and resources appropriate
to teaching and learning; and
(D) the dissemination of information about
technology related resources;
(6) provide for professional development that
will serve the needs of and be accessed by educators
in all regions of the United States by—
(A) facilitating interactive staff develop-
ment related to new research findings, national
education initiatives, funding and program re-
sources, and educational technology develop-
ments and resources appropriate to teaching
and learning;
(B) facilitating staff development for edu-
cators related to educational technology prod-
ucts and practices in conformance with existing
national statutes and in collaboration with local
and regional programs; and
(C) assisting colleges and universities in
partnerships with local educational agencies
within the region to develop and apply for fund-
ing provided to support the programs described
under section 103 to implement preservice
training programs for students enrolled in
teaching programs and inservice training pro-
grams for classroom and vocational teachers;
(7) provide technical support to the States and
local education agencies in the development of edu-
cational technology plans by—
(A) maintaining a registry of appropriate
human and technical resources to assist local
educational agencies in the application of the
resources provided by this statute; and
(B) working with the Authority and the
Council to provide technical assistance on the
technical aspects of the State plans required
under section 105;
(8) assist in the evaluation of educational tech-
nology programs by—
(A) working with the States and local edu-
cation agencies in the planning, development,
and implementation of evaluation measures to
access educational programs, practices, and
projects made available by the provisions of this
Act in collaboration, as needed, with the United
States Department of Education; and
(B) conducting periodic reviews of the ex-
tent to which the provisions of this statute are
implemented and make recommendations to the
Secretary regarding the extent of access, level
of use, and benefits to students and teachers of
the programs and resources made directly and
indirectly possibly by this Act;
(9) conduct applied research to address the
needs of the region and make available such results;
and
(10) develop ways to apply the findings of re-
search in educational technology and learning to im-
prove educational practice.
SEC. 302. EDUCATIONAL TECHNOLOGY RESEARCH AND DE-
VELOPMENT GRANTS.
(a) EDUCATIONAL TECHNOLOGY RESEARCH
AND
DEVELOPMENT GRANTS.—The Secretary is authorized to
establish Educational Technology Research and Develop-
ment Grants to be administered by the Office of Edu-
cational Research and Improvement to provide for re-
search and development so that education agencies can be
continuously informed about the most effective applica-
tions of technology.
(b) PURPOSE.—The purpose of the research and de-
velopment project grants shall be to conduct research to—
(1) identify and validate effective applications
of current and emerging technologies to support stu-
dent learning; and
(2) to support general education and to solve
educational problems and priorities as identified by
the Secretary.
(c) ELIGIBILITY TO RECEIVE AWARDS.—Grants pro-
vided under this section may be awarded to—
(1) State education agencies;
(2) school districts;
(3) regional educational agencies;
(4) consortia of districts; and
(5) other non-profit educational agencies includ-
ing regional educational laboratories and national re-
search centers.
(d) CRITERIA FOR GRANTS.—Grants shall be award-
ed on a competitive basis based upon evidence—
(1) that educators have collaborated in the de-
velopment and will be involved in the implementation
of the project;
(2) that the proposed project offers an innova-
tive approach for educational improvement;
(3) that the project has a high probability of
being adopted or adapted by other schools in a vari-
ety of demographic contexts and within existing re-
sources;
(4) of commitment from existing and emerging
public and private agencies and Regional Edu-
cational Technology Assistance Consortia as estab-
lished in this Act to collaborate in the dissemination
and installation of resources identified in the pro-
posed program or project;
(5) that a comprehensive evaluation of the im-
pact of the services provided will be conducted; and
(6) that the proposal includes research on how
schools could become effective vehicles for improving
literacy through the use of technology for popu-
lations within the schools and in the community.
TITLE IV—AUTHORIZATION OF
APPROPRIATIONS
SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated for the pur-
poses of this Act, $550,000,000 for fiscal year 1994 and
such sums as may be necessary for each of the 5 succeed-
ing fiscal years.
SEC. 402. ALLOCATION OF FUNDS.
(a) IN GENERAL.—(1) From the amount appro-
priated under section 401 for any fiscal year, the Sec-
retary shall reserve—
(A) not more than $2,750,000, or one half of
one percent, for allocation among Guam, American
Samoa, the Virgin Islands, the Northern Mariana
Islands, and the Trust Territory of the Pacific Is-
lands according to their respective needs for assist-
ance under this subpart;
(B) $2,750,000, or one half of 1 percent for
programs for Indian students served by schools
funded by the Secretary of the Interior consistent
with the purposes of this subpart;
(C) $1,000,000, or two tenths of 1 percent, for
Section 201 for salaries and expenses of the Council
Office;
(D) $5,000,000, or nine tenths of 1 percent, for
Section 202 for salaries and expenses of the Author-
ity;
(E) $33,500,000, or 6 percent, for Section 301;
and
(F) a minimum of $10,000,000, or 2 percent,
for Section 302.
(2) The remainder ($495,000,000, or 90 percent) of
the amount so appropriated after meeting the require-
ments of paragraph (1) shall be allocated among the
States (treating the District of Columbia and Puerto Rico
as States) with approved state plans under section 105
as follows—
(A) one-half of such remainder shall be allo-
cated among the States by allocating to each State
an amount which bears the same ratio to such 1/2
of such remainder as the number of children aged 5
to 17, inclusive, in the State bears to the number of
such children in all States;
(B) one-half of such remainder shall be allo-
cated among the States according to each State’s
share of allocations under chapter 1 of the Edu-
cation Consolidation and Improvement Act of 1981
or part A of chapter 1 of title I of the Elementary
and Secondary Education Act of 1965, whichever
program was effective for the previous fiscal year,
except that no State shall receive less than 1/2 of 1
percent of the amount available under this sub-
section in any fiscal year or less than the amount al-
lotted to such State for fiscal year 1988 under title
II of the Education for Economic Security Act;
(C) for the purposes of this subsection, the
term ‘‘State’’ does not include Guam, American
Samoa, the Virgin Islands, the Northern Mariana
Islands, or the Trust Territory of the Pacific Is-
lands; and
(D) the number of children aged 5 to 17, inclu-
sive, in the State and in all States shall be deter-
mined by the Secretary on the basis of the most re-
cent satisfactory data available to the Secretary.
(3) The Secretary shall make payments under para-
graphs (1)(A) and (1)(B) on whatever terms the Secretary
determines will best carry out the purposes of title I this
Act.
(b) REALLOTMENT
OF
UNUSED
FUNDS.—The
amount of any State’s allotment under subsection (a) for
any fiscal year which the Secretary determines will not
be required for that fiscal year to carry out title I shall
be available for reallotment from time to time, on such
dates during that year as the Secretary may determine,
to other States in proportion to the original allotments to
those States under subsection (a) for that year but with
such proportionate amount for any of those other States
being reduced to the extent it exceeds the sum the Sec-
retary estimates that State needs and will be able to use
for that year; and the total of those reductions shall be
similarly reallotted among the States whose proportionate
amounts were not so reduced. Any amounts reallotted to
a State under this subsection during a year shall be
deemed a subpart of its allotment under subsection (a)
for that year.
Æ
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