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‘‘(1) improves the capability of schools to plan,
conduct, and improve programs to identify and serve
gifted and talented students; and
‘‘(2) assists schools in the identification of, and
provision of services to, gifted and talented students
who may not be identified and served through tradi-
tional assessment methods (including economically
disadvantaged individuals, individuals of limited
English proficiency, and individuals with disabil-
ities).
‘‘(b) SERVICE PRIORITY.—In approving applications
for assistance under section 4164(a)(2), the Secretary
shall ensure that in each fiscal year not less than 50 per-
cent of the applications approved under such section ad-
dress the priority described in subsection (a)(2) of this
section.
‘‘SEC. 4166. GENERAL PROVISIONS.
‘‘(a) PARTICIPATION OF PRIVATE SCHOOL CHILDREN
AND TEACHERS.—In making grants and entering into
contracts under this subpart, the Secretary shall ensure,
where appropriate, that provision is made for the equitable
participation of students and teachers in private nonprofit
elementary and secondary schools, including the participa-
tion of teachers and other personnel in professional devel-
opment programs serving such children.
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‘‘(b) REVIEW, DISSEMINATION, AND EVALUATION.—
The Secretary shall—
‘‘(1) use a peer review process in reviewing ap-
plications under this subpart;
‘‘(2) ensure that information on the activities
and results of programs and projects funded under
this subpart is disseminated to appropriate State
and local educational agencies and other appropriate
organizations, including nonprofit private organiza-
tions; and
‘‘(3) evaluate the effectiveness of programs
under this subpart in accordance with section 8651,
both in terms of the impact on students traditionally
served in separate gifted and talented programs and
on other students, and submit the results of such
evaluation to the Congress not later than 2 years
after the date of the enactment of the No Child Left
Behind Act of 2001.
‘‘(c) PROGRAM OPERATIONS.—The Secretary shall
ensure that the programs under this subpart are adminis-
tered within the Department by a person who has recog-
nized professional qualifications and experience in the field
of the education of gifted and talented students and who
shall—
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‘‘(1) administer and coordinate the programs
authorized under this subpart;
‘‘(2) serve as a focal point of national leader-
ship and information on the educational needs of
gifted and talented students and the availability of
educational services and programs designed to meet
such needs; and
‘‘(3) assist the Assistant Secretary of the Office
of Educational Research and Improvement in identi-
fying research priorities which reflect the needs of
gifted and talented students.
‘‘SEC. 4167. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this subpart such sums as may be necessary for each of
fiscal years 2002 through 2006.’’.
SEC. 402. CONTINUATION OF AWARDS.
Notwithstanding any other provision of this Act, any
person or agency that was awarded a grant under part
B or D of title X (20 U.S.C. 8031 et seq., 8091 et seq.)
prior to the date of the enactment of this Act shall con-
tinue to receive funds in accordance with the terms of such
award until the date on which the award period terminates
under such terms.
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PART B—PUBLIC CHARTER SCHOOLS
SEC. 411. PUBLIC CHARTER SCHOOLS.
Title IV, as amended by section 401, is further
amended by adding at the end the following:
‘‘PART B—PUBLIC CHARTER SCHOOLS
‘‘SEC. 4201. FINDINGS AND PURPOSE.
‘‘(a) FINDINGS.—The Congress finds that—
‘‘(1) enhancement of parent and student choices
among public schools can assist in promoting com-
prehensive educational reform and give more stu-
dents the opportunity to meet challenging State aca-
demic content standards and State student academic
achievement standards, if sufficiently diverse and
high-quality choices, and genuine opportunities to
take advantage of such choices, are available to all
students;
‘‘(2) useful examples of such choices can come
from States and communities that experiment with
methods of offering teachers and other educators,
parents, and other members of the public the oppor-
tunity to design and implement new public schools
and to transform existing public schools;
‘‘(3) charter schools are a mechanism for test-
ing a variety of educational approaches and should,
therefore, be exempted from restrictive rules and
regulations if the leadership of such schools commits
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to attaining specific and ambitious educational re-
sults for educationally disadvantaged students con-
sistent with challenging State academic content
standards and State student academic achievement
standards for all students;
‘‘(4) charter schools can embody the necessary
mixture of enhanced choice, exemption from restric-
tive regulations, and a focus on learning gains;
‘‘(5) charter schools, including charter schools
that are schools-within-schools, can help reduce
school size, and this reduction can have a significant
effect on student achievement;
‘‘(6) the Federal Government should test, evalu-
ate, and disseminate information on a variety of
charter school models in order to help demonstrate
the benefits of this promising educational reform;
and
‘‘(7) there is a strong documented need for
cash-flow assistance to charter schools that are
starting up, because State and local operating rev-
enue streams are not immediately available.
‘‘(b) PURPOSE.—It is the purpose of this part to in-
crease national understanding of the charter schools model
by—
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‘‘(1) providing financial assistance for the plan-
ning, program design and initial implementation of
charter schools;
‘‘(2) evaluating the effects of such schools, in-
cluding the effects on students, student academic
achievement, staff, and parents; and
‘‘(3) expanding the number of high-quality
charter schools available to students across the Na-
tion.
‘‘SEC. 4202. PROGRAM AUTHORIZED.
‘‘(a) IN GENERAL.—The Secretary may award grants
to State educational agencies having applications approved
pursuant to section 4203 to enable such agencies to con-
duct a charter school grant program in accordance with
this part.
‘‘(b) SPECIAL RULE.—If a State educational agency
elects not to participate in the program authorized by this
part or does not have an application approved under sec-
tion 4203, the Secretary may award a grant to an eligible
applicant that serves such State and has an application
approved pursuant to section 4203(c).
‘‘(c) PROGRAM PERIODS.—
‘‘(1) GRANTS TO STATES.—Grants awarded to
State educational agencies under this part shall be
awarded for a period of not more than 3 years.
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‘‘(2) GRANTS
TO
ELIGIBLE
APPLICANTS.—
Grants awarded by the Secretary to eligible appli-
cants or subgrants awarded by State educational
agencies to eligible applicants under this part shall
be awarded for a period of not more than 3 years,
of which the eligible applicant may use—
‘‘(A) not more than 18 months for plan-
ning and program design;
‘‘(B) not more than 2 years for the initial
implementation of a charter school; and
‘‘(C) not more than 2 years to carry out
dissemination activities described in section
4204(f)(6)(B).
‘‘(d) LIMITATION.—A charter school may not
receive—
‘‘(1) more than one grant for activities de-
scribed in subparagraphs (A) and (B) of subsection
(c)(2); or
‘‘(2) more than one grant for activities under
subparagraph (C) of subsection (c)(2).
‘‘(e) PRIORITY TREATMENT.—
‘‘(1) IN GENERAL.—In awarding grants under
this part from any funds appropriated under section
4211, the Secretary shall give priority to States to
the extent that the States meet the criteria described
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in paragraph (2) and one or more of the criteria de-
scribed in subparagraph (A), (B), or (C) of para-
graph (3).
‘‘(2) REVIEW AND EVALUATION PRIORITY CRI-
TERIA.—The criteria referred to in paragraph (1) is
that the State provides for periodic review and eval-
uation by the authorized public chartering agency of
each charter school, at least once every 5 years un-
less required more frequently by State law, to deter-
mine whether the charter school is meeting the
terms of the school’s charter, and is meeting or ex-
ceeding the academic performance requirements and
goals for charter schools as set forth under State
law or the school’s charter.
‘‘(3) PRIORITY CRITERIA.—The criteria referred
to in paragraph (1) are the following:
‘‘(A) The State has demonstrated progress,
in increasing the number of high quality charter
schools that are held accountable in the terms
of the schools’ charters for meeting clear and
measurable 
objectives 
for 
the 
educational
progress of the students attending the schools,
in the period prior to the period for which a
State educational agency or eligible applicant
applies for a grant under this part.
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‘‘(B) The State—
‘‘(i) provides for one authorized public
chartering agency that is not a local edu-
cational agency, such as a State chartering
board, for each individual or entity seeking
to operate a charter school pursuant to
such State law; or
‘‘(ii) in the case of a State in which
local educational agencies are the only au-
thorized public chartering agencies, allows
for an appeals process for the denial of an
application for a charter school.
‘‘(C) The State ensures that each charter
school has a high degree of autonomy over the
charter school’s budgets and expenditures.
‘‘(f) AMOUNT CRITERIA.—In determining the amount
of a grant to be awarded under this part to a State edu-
cational agency, the Secretary shall take into consider-
ation the number of charter schools that are operating,
or are approved to open, in the State.
‘‘SEC. 4203. APPLICATIONS.
‘‘(a) APPLICATIONS FROM STATE AGENCIES.—Each
State educational agency desiring a grant from the Sec-
retary under this part shall submit to the Secretary an
application at such time, in such manner, and containing
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or accompanied by such information as the Secretary may
require.
‘‘(b) CONTENTS OF A STATE EDUCATIONAL AGENCY
APPLICATION.—Each application submitted pursuant to
subsection (a) shall—
‘‘(1) describe the objectives of the State edu-
cational agency’s charter school grant program and
how such objectives will be fulfilled, including steps
taken by the State educational agency to inform
teachers, parents, and communities of the State edu-
cational agency’s charter school grant program; and
‘‘(2) describe how the State educational
agency—
‘‘(A) will inform each charter school in the
State regarding—
‘‘(i) Federal funds that the charter
school is eligible to receive; and
‘‘(ii) Federal programs in which the
charter school may participate;
‘‘(B) will ensure that each charter school
in the State receives the charter school’s com-
mensurate share of Federal education funds
that are allocated by formula each year, includ-
ing during the first year of operation of the
charter school; and
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‘‘(C) will disseminate best or promising
practices of charter schools to each local edu-
cational agency in the State; and
‘‘(3) contain assurances that the State edu-
cational agency will require each eligible applicant
desiring to receive a subgrant to submit an applica-
tion to the State educational agency containing—
‘‘(A) a description of the educational pro-
gram to be implemented by the proposed char-
ter school, including—
‘‘(i) how the program will enable all
students to meet challenging State student
academic achievement standards;
‘‘(ii) the grade levels or ages of chil-
dren to be served; and
‘‘(iii) the curriculum and instructional
practices to be used;
‘‘(B) a description of how the charter
school will be managed;
‘‘(C) a description of—
‘‘(i) the objectives of the charter
school; and
‘‘(ii) the methods by which the charter
school will determine its progress toward
achieving those objectives;
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‘‘(D) a description of the administrative re-
lationship between the charter school and the
authorized public chartering agency;
‘‘(E) a description of how parents and
other members of the community will be in-
volved in the planning, program design and im-
plementation of the charter school;
‘‘(F) a description of how the authorized
public chartering agency will provide for contin-
ued operation of the school once the Federal
grant has expired, if such agency determines
that the school has met the objectives described
in subparagraph (C)(i);
‘‘(G) a request and justification for waivers
of any Federal statutory or regulatory provi-
sions that the applicant believes are necessary
for the successful operation of the charter
school, and a description of any State or local
rules, generally applicable to public schools,
that will be waived for, or otherwise not apply
to, the school;
‘‘(H) a description of how the subgrant
funds or grant funds, as appropriate, will be
used, including a description of how such funds
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will be used in conjunction with other Federal
programs administered by the Secretary;
‘‘(I) a description of how students in the
community will be—
‘‘(i) 
informed 
about 
the 
charter
school; and
‘‘(ii) given an equal opportunity to at-
tend the charter school;
‘‘(J) an assurance that the eligible appli-
cant will annually provide the Secretary and the
State educational agency such information as
may be required to determine if the charter
school is making satisfactory progress toward
achieving the objectives described in subpara-
graph (C)(i);
‘‘(K) an assurance that the applicant will
cooperate with the Secretary and the State edu-
cational agency in evaluating the program as-
sisted under this part;
‘‘(L) a description of how a charter school
that is considered a local educational agency
under State law, or a local educational agency
in which a charter school is located, will comply
with sections 613(a)(5) and 613(e)(1)(B) of the
Individuals with Disabilities Education Act;
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‘‘(M) if the eligible applicant desires to use
subgrant funds for dissemination activities
under section 4202(c)(2)(C), a description of
those activities and how those activities will in-
volve charter schools and other public schools,
local educational agencies, developers, and po-
tential developers; and
‘‘(N) such other information and assur-
ances as the Secretary and the State edu-
cational agency may require.
‘‘(c) CONTENTS OF ELIGIBLE APPLICANT APPLICA-
TION.—Each eligible applicant desiring a grant pursuant
to section 4202(b) shall submit an application to the State
educational agency or Secretary, respectively, at such
time, in such manner, and accompanied by such informa-
tion as the State educational agency or Secretary, respec-
tively, may reasonably require.
‘‘(d) CONTENTS OF APPLICATION.—Each application
submitted pursuant to subsection (c) shall contain—
‘‘(1) the information and assurances described
in subparagraphs (A) through (N) of subsection
(b)(3), except that for purposes of this subsection
subparagraphs (J), (K), and (N) of such subsection
shall be applied by striking ‘and the State edu-
cational agency’ each place such term appears;
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‘‘(2) assurances that the State educational
agency—
‘‘(A) will grant, or will obtain, waivers of
State statutory or regulatory requirements; and
‘‘(B) will assist each subgrantee in the
State in receiving a waiver under section
4204(e); and
‘‘(3) assurances that the eligible applicant has
provided its authorized public chartering authority
timely notice, and a copy, of the application, except
that the State educational agency (or the Secretary,
in the case of an application submitted to the Sec-
retary) may waive this requirement in the case of an
application for a precharter planning grant or
subgrant if the authorized public chartering author-
ity to which a charter school proposal will be sub-
mitted has not been determined at the time the
grant or subgrant application is submitted.
‘‘SEC. 4204. ADMINISTRATION.
‘‘(a) SELECTION
CRITERIA
FOR
STATE
EDU-
CATIONAL AGENCIES.—The Secretary shall award grants
to State educational agencies under this part on the basis
of the quality of the applications submitted under section
4203(b), after taking into consideration such factors as—
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‘‘(1) the contribution that the charter schools
grant program will make to assisting educationally
disadvantaged and other students to achieving State
academic content standards and State student aca-
demic achievement standards and, in general, a
State’s education improvement plan;
‘‘(2) the degree of flexibility afforded by the
State educational agency to charter schools under
the State’s charter schools law;
‘‘(3) the ambitiousness of the objectives for the
State charter school grant program;
‘‘(4) the quality of the strategy for assessing
achievement of those objectives;
‘‘(5) the likelihood that the charter school grant
program will meet those objectives and improve edu-
cational results for students;
‘‘(6) the number of high quality charter schools
created under this part in the State; and
‘‘(7) in the case of State educational agencies
that propose to use grant funds to support dissemi-
nation activities under section 4202(c)(2)(C), the
quality of those activities and the likelihood that
those activities will improve student academic
achievement.
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‘‘(b) SELECTION CRITERIA FOR ELIGIBLE APPLI-
CANTS.—The Secretary shall award grants to eligible ap-
plicants under this part on the basis of the quality of the
applications submitted under section 4203(c), after taking
into consideration such factors as—
‘‘(1) the quality of the proposed curriculum and
instructional practices;
‘‘(2) the degree of flexibility afforded by the
State educational agency and, if applicable, the local
educational agency to the charter school;
‘‘(3) the extent of community support for the
application;
‘‘(4) the ambitiousness of the objectives for the
charter school;
‘‘(5) the quality of the strategy for assessing
achievement of those objectives;
‘‘(6) the likelihood that the charter school will
meet those objectives and improve educational re-
sults for students; and
‘‘(7) in the case of an eligible applicant that
proposes to use grant funds to support dissemina-
tion activities under section 4202(c)(2)(C), the qual-
ity of those activities and the likelihood that those
activities will improve student achievement.
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‘‘(1) STATE
EDUCATIONAL
AGENCIES.—Each
State educational agency receiving a grant under
this part shall use such grant funds to award sub-
grants to one or more eligible applicants in the State
to enable such applicant to plan and implement a
charter school in accordance with this part, except
that the State educational agency may reserve not
more than 10 percent of the grant funds to support
dissemination activities described in paragraph (6).
‘‘(2) ELIGIBLE APPLICANTS.—Each eligible ap-
plicant receiving funds from the Secretary or a State
educational agency shall use such funds to plan and
implement a charter school, or to disseminate infor-
mation about the charter school and successful prac-
tices in the charter school, in accordance with this
part.
‘‘(3) ALLOWABLE ACTIVITIES.—An eligible ap-
plicant receiving a grant or subgrant under this part
may use the grant or subgrant funds only for—
‘‘(A) post-award planning and design of
the educational program, which may include—
‘‘(i) refinement of the desired edu-
cational results and of the methods for
measuring progress toward achieving those
results; and
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‘‘(ii) 
professional 
development 
of
teachers and other staff who will work in
the charter school; and
‘‘(B) initial implementation of the charter
school, which may include—
‘‘(i) informing the community about
the school;
‘‘(ii) acquiring necessary equipment
and educational materials and supplies;
‘‘(iii) acquiring or developing cur-
riculum materials; and
‘‘(iv) other initial operational costs
that cannot be met from State or local
sources.
‘‘(4) ADMINISTRATIVE EXPENSES.—Each State
educational agency receiving a grant pursuant to
this part may reserve not more than 5 percent of
such grant funds for administrative expenses associ-
ated with the charter school grant program assisted
under this part. A local educational agency may not
deduct funds for administrative fees or expenses
from a subgrant awarded to an eligible applicant.
‘‘(5) REVOLVING
LOAN
FUNDS.—Each State
educational agency receiving a grant pursuant to
this part may reserve not more than 10 percent of
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the grant amount for the establishment of a revolv-
ing loan fund. Such fund may be used to make loans
to eligible applicants that have received a subgrant
under this part, under such terms as may be deter-
mined by the State educational agency, for the ini-
tial operation of the charter school grant program of
such recipient until such time as the recipient begins
receiving ongoing operational support from State or
local financing sources.
‘‘(6) DISSEMINATION.—
‘‘(A) IN GENERAL.—A charter school may
apply for funds under this part, whether or not
the charter school has applied for or received
funds under this part for planning, program de-
sign, or implementation, to carry out the activi-
ties described in subparagraph (B) if the char-
ter school has been in operation for at least 3
consecutive years and has demonstrated overall
success, including—
‘‘(i) substantial progress in improving
student academic achievement;
‘‘(ii) high levels of parent satisfaction;
and
‘‘(iii) the management and leadership
necessary to overcome initial start-up prob-
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lems and establish a thriving, financially
viable charter school.
‘‘(B) ACTIVITIES.—A charter school de-
scribed in subparagraph (A) may use funds re-
served under paragraph (1) to assist other
schools in adapting the charter school’s pro-
gram (or certain aspects of the charter school’s
program), or to disseminate information about
the charter school, through such activities as—
‘‘(i) assisting other individuals with
the planning and start-up of one or more
new public schools, including charter
schools, that are independent of the assist-
ing charter school and the assisting charter
school’s developers, and that agree to be
held to at least as high a level of account-
ability as the assisting charter school;
‘‘(ii) developing partnerships with
other public schools, including charter
schools, designed to improve student aca-
demic achievement in each of the schools
participating in the partnership;
‘‘(iii) developing curriculum materials,
academic assessments, and other materials
that promote increased student academic
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achievement and are based on successful
practices within the assisting charter
school; and
‘‘(iv) conducting evaluations and de-
veloping materials that document the suc-
cessful practices of the assisting charter
school and that are designed to improve
student academic achievement in other
schools.
‘‘(g) TRIBALLY CONTROLLED SCHOOLS.—Each State
that receives a grant under this part and designates a trib-
ally controlled school as a charter school shall not consider
payments to a school under the Tribally Controlled
Schools Act of 1988 (25 U.S.C. 2507) in determining—
‘‘(1) the eligibility of the school to receive any
other Federal, State, or local aid; or
‘‘(2) the amount of such aid.
‘‘SEC. 4205. NATIONAL ACTIVITIES.
‘‘(a) IN GENERAL.—The Secretary shall reserve for
each fiscal year the greater of 5 percent or $5,000,000
of the amount appropriated to carry out this part, except
that in no fiscal year shall the total amount so reserved
exceed $8,000,000, to carry out the following activities:
‘‘(1) To provide charter schools, either directly
or through State educational agencies, with—
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‘‘(A) information regarding—
‘‘(i) 
Federal 
funds 
that 
charter
schools are eligible to receive; and
‘‘(ii) other Federal programs in which
charter schools may participate; and
‘‘(B) assistance in applying for Federal
education funds that are allocated by formula,
including assistance with filing deadlines and
submission of applications.
‘‘(2) To provide for other evaluations or studies
that include the evaluation of the impact of charter
schools on student academic achievement, including
information regarding—
‘‘(A) students attending charter schools re-
ported on the basis of race, age, disability, gen-
der, limited English proficiency, and previous
enrollment in public school; and
‘‘(B) the professional qualifications of
teachers within a charter school and the turn-
over of the teaching force.
‘‘(3) To provide—
‘‘(A) information to applicants for assist-
ance under this part;
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‘‘(B) assistance to applicants for assistance
under this part with the preparation of applica-
tions under section 4203;
‘‘(C) assistance in the planning and start-
up of charter schools;
‘‘(D) training and technical assistance to
existing charter schools; and
‘‘(E) for the dissemination to other public
schools of best or promising practices in charter
schools.
‘‘(4) To provide (including through the use of
one or more contracts that use a competitive bidding
process) for the collection of information regarding
the financial resources available to charter schools,
including access to private capital, and to widely dis-
seminate to charter schools any such relevant infor-
mation and model descriptions of successful pro-
grams.
‘‘(b) CONSTRUCTION.—Nothing in this section shall
be construed to require charter schools to collect any data
described in subsection (a).
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‘‘SEC. 4206. FEDERAL FORMULA ALLOCATION DURING
FIRST YEAR AND FOR SUCCESSIVE ENROLL-
MENT EXPANSIONS.
‘‘(a) IN GENERAL.—For purposes of the allocation
to schools by the States or their agencies of funds under
part A of title I, and any other Federal funds which the
Secretary allocates to States on a formula basis, the Sec-
retary and each State educational agency shall take such
measures as are necessary to ensure that every charter
school receives the Federal funding for which the charter
school is eligible not later than 5 months after the charter
school first opens, notwithstanding the fact that the iden-
tity and characteristics of the students enrolling in that
charter school are not fully and completely determined
until that charter school actually opens. The measures
similarly shall ensure that every charter school expanding
its enrollment in any subsequent year of operation receives
the Federal funding for which the charter school is eligible
not later than 5 months after such expansion.
‘‘(b) ADJUSTMENT AND LATE OPENINGS.—
‘‘(1) IN GENERAL.—The measures described in
subsection (a) shall include provision for appropriate
adjustments, through recovery of funds or reduction
of payments for the succeeding year, in cases where
payments made to a charter school on the basis of
estimated or projected enrollment data exceed the
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amounts that the school is eligible to receive on the
basis of actual or final enrollment data.
‘‘(2) RULE.—For charter schools that first
open after November 1 of any academic year, the
State, in accordance with guidance provided by the
Secretary and applicable Federal statutes and regu-
lations, shall ensure that such charter schools that
are eligible for the funds described in subsection (a)
for such academic year have a full and fair oppor-
tunity to receive those funds during the charter
schools’ first year of operation.
‘‘SEC. 4207. SOLICITATION OF INPUT FROM CHARTER
SCHOOL OPERATORS.
‘‘To the extent practicable, the Secretary shall ensure
that administrators, teachers, and other individuals di-
rectly involved in the operation of charter schools are con-
sulted in the development of any rules or regulations re-
quired to implement this part, as well as in the develop-
ment of any rules or regulations relevant to charter
schools that are required to implement part A of title I,
the Individuals with Disabilities Education Act (20 U.S.C.
1400 et seq.), or any other program administered by the
Secretary that provides education funds to charter schools
or regulates the activities of charter schools.
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‘‘SEC. 4208. RECORDS TRANSFER.
‘‘State educational agencies and local educational
agencies, to the extent practicable, shall ensure that a stu-
dent’s records and, if applicable, a student’s individualized
education program as defined in section 602(11) of the
Individuals with Disabilities Education Act (20 U.S.C.
1401(11)), are transferred to a charter school upon the
transfer of the student to the charter school, to another
public school upon the transfer of the student from a char-
ter school to another public school, and to a private school
upon the transfer of the student from a charter or public
school to the private school (with the written consent of
a parent of the student), in accordance with applicable
State law.
‘‘SEC. 4209. PAPERWORK REDUCTION.
‘‘To the extent practicable, the Secretary and each
authorized public chartering agency shall ensure that im-
plementation of this part results in a minimum of paper-
work for any eligible applicant or charter school.
‘‘SEC. 4210. DEFINITIONS.
‘‘As used in this part:
‘‘(1) The term ‘charter school’ means a public
school that—
‘‘(A) in accordance with a specific State
statute authorizing the granting of charters to
schools, is exempted from significant State or
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local rules that inhibit the flexible operation
and management of public schools, but not
from any rules relating to the other require-
ments of this paragraph;
‘‘(B) is created by a developer as a public
school, or is adapted by a developer from an ex-
isting public school, and is operated under pub-
lic supervision and direction;
‘‘(C) operates in pursuit of a specific set of
educational 
objectives 
determined 
by 
the
school’s developer and agreed to by the author-
ized public chartering agency;
‘‘(D) provides a program of elementary or
secondary education, or both;
‘‘(E) is nonsectarian in its programs, ad-
missions policies, employment practices, and all
other operations, and is not affiliated with a
sectarian school or religious institution;
‘‘(F) does not charge tuition;
‘‘(G) complies with the Age Discrimination
Act of 1975, title VI of the Civil Rights Act of
1964, title IX of the Education Amendments of
1972, section 504 of the Rehabilitation Act of
1973, and part B of the Individuals with Dis-
abilities Education Act;
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‘‘(H) is a school to which parents choose to
send their children, and that admits students
on the basis of a lottery, or in another non-
discriminatory manner consistent with State
law, if more students apply for admission than
can be accommodated;
‘‘(I) agrees to comply with the same Fed-
eral and State audit requirements as do other
elementary and secondary schools in the State,
unless such requirements are specifically waived
for the purpose of this program;
‘‘(J) meets all applicable Federal, State,
and local health and safety requirements;
‘‘(K) operates in accordance with State
law; and
‘‘(L) has a written performance contract
with the authorized public chartering agency in
the State that includes a description of how
student academic achievement will be measured
in charter schools pursuant to State academic
assessments that are required of other schools
and pursuant to any other assessments mutu-
ally agreeable to the authorized public char-
tering agency and the charter school.
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‘‘(2) The term ‘developer’ means an individual
or group of individuals (including a public or private
nonprofit organization), which may include teachers,
administrators and other school staff, parents, or
other members of the local community in which a
charter school project will be carried out.
‘‘(3) The term ‘eligible applicant’ means a de-
veloper that has—
‘‘(A) applied to an authorized public char-
tering authority; and
‘‘(B) provided adequate and timely notice
to that authority under section 4203(d)(3).
‘‘(4) The term ‘authorized public chartering
agency’ means a State educational agency, local edu-
cational agency, or other public entity that has the
authority pursuant to State law and approved by the
Secretary to authorize or approve a charter school.
‘‘SEC. 4211. AUTHORIZATION OF APPROPRIATIONS.
‘‘For the purpose of carrying out this part, there are
authorized to be appropriated $225,000,000 for fiscal year
2002 and such sums as may be necessary for each of the
4 succeeding fiscal years.’’.
SEC. 412. CONTINUATION OF AWARDS.
Notwithstanding any other provision of this Act, any
person or agency that was awarded a grant or subgrant
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under subpart 1 of part C of title X (20 U.S.C. 8061 et
seq.) prior to the date of the enactment of this Act shall
continue to receive funds in accordance with the terms of
such award until the date on which the award period ter-
minates under such terms.
PART C—MAGNET SCHOOLS ASSISTANCE;
WOMEN’S EDUCATIONAL EQUITY
SEC. 421. MAGNET SCHOOLS ASSISTANCE.
Title IV, as amended by sections 401 and 411, is fur-
ther amended by adding at the end the following:
‘‘PART C—MAGNET SCHOOLS ASSISTANCE;
WOMEN’S EDUCATIONAL EQUITY
‘‘Subpart 1—Magnet Schools Assistance
‘‘SEC. 4301. FINDINGS.
‘‘The Congress finds as follows:
‘‘(1) Magnet schools are a significant part of
the Nation’s efforts to achieve voluntary desegrega-
tion in our schools.
‘‘(2) The use of magnet schools has increased
dramatically since the inception of the magnet
schools assistance program under this Act, with ap-
proximately 2,000,000 students nationwide attend-
ing such schools, of whom more than 65 percent are
non-white.
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‘‘(3) Magnet schools offer a wide range of dis-
tinctive programs that have served as models for
school improvement efforts.
‘‘(4) It is in the best interests of the United
States—
‘‘(A) to continue the Federal Government’s
support of local educational agencies that are
implementing court-ordered desegregation plans
and local educational agencies that are volun-
tarily seeking to foster meaningful interaction
among students of different racial and ethnic
backgrounds, beginning at the earliest stage of
such students’ education;
‘‘(B) to ensure that all students have equi-
table access to a quality education that will pre-
pare them to function well in a highly competi-
tive economy;
‘‘(C) to maximize the ability of local edu-
cational agencies to plan, develop, implement,
and continue effective and innovative magnet
schools that contribute to State and local sys-
temic reform; and
‘‘(D) to ensure that grant recipients pro-
vide adequate data that demonstrate an ability
to improve student academic achievement.
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‘‘SEC. 4302. STATEMENT OF PURPOSE.
‘‘The purpose of this part is to assist in the desegre-
gation of schools served by local educational agencies by
providing financial assistance to eligible local educational
agencies for—
‘‘(1) the elimination, reduction, or prevention of
minority group isolation in elementary and sec-
ondary schools with substantial proportions of mi-
nority students;
‘‘(2) the development and implementation of
magnet school projects that will assist local edu-
cational agencies in achieving systemic reforms and
providing all students the opportunity to meet chal-
lenging State academic content standards and stu-
dent academic achievement standards;
‘‘(3) the development and design of innovative
educational methods and practices that promote di-
versity and increase choices in public elementary and
secondary schools and educational programs; and
‘‘(4) courses of instruction within magnet
schools that will substantially strengthen the knowl-
edge of academic subjects and the grasp of tangible
and marketable vocational and technical skills of
students attending such schools.
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‘‘SEC. 4303. PROGRAM AUTHORIZED.
‘‘The Secretary, in accordance with this part, is au-
thorized to make grants to eligible local educational agen-
cies, and consortia of such agencies where appropriate, to
carry out the purpose of this part for magnet schools that
are—
‘‘(1) part of an approved desegregation plan;
and
‘‘(2) designed to bring students from different
social, economic, ethnic, and racial backgrounds to-
gether.
‘‘SEC. 4304. DEFINITION.
‘‘For the purpose of this part, the term ‘magnet
school’ means a public elementary or secondary school or
public elementary or secondary education center that of-
fers a special curriculum capable of attracting substantial
numbers of students of different racial backgrounds.
‘‘SEC. 4305. ELIGIBILITY.
‘‘A local educational agency, or consortium of such
agencies where appropriate, is eligible to receive assistance
under this part to carry out the purpose of this part if
such agency or consortium—
‘‘(1) is implementing a plan undertaken pursu-
ant to a final order issued by a court of the United
States, or a court of any State, or any other State
agency or official of competent jurisdiction, that re-
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quires the desegregation of minority-group-seg-
regated children or faculty in the elementary and
secondary schools of such agency; or
‘‘(2) without having been required to do so, has
adopted and is implementing, or will, if assistance is
made available to such local educational agency or
consortium of such agencies under this part, adopt
and implement a plan that has been approved by the
Secretary as adequate under title VI of the Civil
Rights Act of 1964 for the desegregation of minor-
ity-group-segregated children or faculty in such
schools.
‘‘SEC. 4306. APPLICATIONS AND REQUIREMENTS.
‘‘(a) APPLICATIONS.—An eligible local educational
agency, or consortium of such agencies, desiring to receive
assistance under this part shall submit an application to
the Secretary at such time, in such manner, and con-
taining such information and assurances as the Secretary
may reasonably require.
‘‘(b) INFORMATION AND ASSURANCES.—Each such
application shall include—
‘‘(1) a description of—
‘‘(A) how assistance made available under
this part will be used to promote desegregation,
including how the proposed magnet school
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project will increase interaction among students
of different social, economic, ethnic, and racial
backgrounds;
‘‘(B) the manner and extent to which the
magnet school project will increase student aca-
demic achievement in the instructional area or
areas offered by the school;
‘‘(C) how an applicant will continue the
magnet school project after assistance under
this part is no longer available, including, if ap-
plicable, an explanation of why magnet schools
established or supported by the applicant with
funds under this part cannot be continued with-
out the use of funds under this part;
‘‘(D) how funds under this part will be
used to improve student academic performance
for all students attending the magnet schools;
and
‘‘(E) the criteria to be used in selecting
students to attend the proposed magnet school
projects; and
‘‘(2) assurances that the applicant will—
‘‘(A) use funds under this part for the pur-
pose specified in section 4302;
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‘‘(B) employ fully qualified teachers in the
courses of instruction assisted under this part;
‘‘(C) not engage in discrimination based on
race, religion, color, national origin, sex, or dis-
ability in—
‘‘(i) the hiring, promotion, or assign-
ment of employees of the agency or other
personnel for whom the agency has any ad-
ministrative responsibility;
‘‘(ii) the assignment of students to
schools, or to courses of instruction within
the school, of such agency, except to carry
out the approved plan; and
‘‘(iii) designing or operating extra-
curricular activities for students;
‘‘(D) carry out a high-quality education
program that will encourage greater parental
decisionmaking and involvement; and
‘‘(E) give students residing in the local at-
tendance area of the proposed magnet school
projects equitable consideration for placement
in those projects.
‘‘SEC. 4307. PRIORITY.
‘‘In approving applications under this part, the Sec-
retary shall give priority to applicants that—
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‘‘(1) demonstrate the greatest need for assist-
ance, based on the expense or difficulty of effectively
carrying out an approved desegregation plan and the
projects for which assistance is sought;
‘‘(2) propose to carry out new magnet school
projects, or significantly revise existing magnet
school projects; and
‘‘(3) propose to select students to attend mag-
net school projects by methods such as lottery, rath-
er than through academic examination.
‘‘SEC. 4308. USE OF FUNDS.
‘‘(a) IN GENERAL.—Grant funds made available
under this part may be used by an eligible local edu-
cational agency or consortium of such agencies—
‘‘(1) for planning and promotional activities di-
rectly related to the development, expansion, con-
tinuation, or enhancement of academic programs
and services offered at magnet schools;
‘‘(2) for the acquisition of books, materials, and
equipment, including computers and the mainte-
nance and operation thereof, necessary for the con-
duct of programs in magnet schools;
‘‘(3) for the payment, or subsidization of the
compensation, of elementary and secondary school
teachers who are fully qualified, and instructional
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staff where applicable, who are necessary for the
conduct of programs in magnet schools;
‘‘(4) with respect to a magnet school program
offered to less than the entire student population of
a school, for instructional activities that—
‘‘(A) are designed to make available the
special curriculum that is offered by the magnet
school project to students who are enrolled in
the school but who are not enrolled in the mag-
net school program; and
‘‘(B) further the purpose of this part; and
‘‘(5) for activities, which may include profes-
sional development, that will build the recipient’s ca-
pacity to operate magnet school programs once the
grant period has ended.
‘‘(b) SPECIAL RULE.—Grant funds under this part
may be used in accordance with paragraphs (2) and (3)
of subsection (a) only if the activities described in such
paragraphs are directly related to improving the students’
academic performance based on the State’s challenging
academic content standards and student academic achieve-
ment standards or directly related to improving the stu-
dents’ reading skills or knowledge of mathematics, science,
history, geography, English, foreign languages, art, or
music, or to improving vocational and technical skills.
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‘‘SEC. 4309. PROHIBITIONS.
‘‘(a) TRANSPORTATION.—Grants under this part may
not be used for transportation or any activity that does
not augment academic improvement.
‘‘(b) PLANNING.—A local educational agency shall
not expend funds under this part after the third year that
such agency receives funds under this part for such
project.
‘‘SEC. 4310. LIMITATIONS.
‘‘(a) DURATION OF AWARDS.—A grant under this
part shall be awarded for a period that shall not exceed
three fiscal years.
‘‘(b) LIMITATION ON PLANNING FUNDS.—A local
educational agency may expend for planning not more
than 50 percent of the funds received under this part for
the first year of the project, 15 percent of such funds for
the second such year, and 10 percent of such funds for
the third such year.
‘‘(c) AMOUNT.—No local educational agency or con-
sortium awarded a grant under this part shall receive
more than $4,000,000 under this part in any one fiscal
year.
‘‘(d) TIMING.—To the extent practicable, the Sec-
retary shall award grants for any fiscal year under this
part not later than July 1 of the applicable fiscal year.
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‘‘SEC. 4311. EVALUATIONS.
‘‘(a) RESERVATION.—The Secretary may reserve not
more than 2 percent of the funds appropriated under sec-
tion 4312(a) for any fiscal year to carry out evaluations,
technical assistance, and dissemination projects with re-
spect to magnet school projects and programs assisted
under this part.
‘‘(b) CONTENTS.—Each evaluation described in sub-
section (a), at a minimum, shall address—
‘‘(1) how and the extent to which magnet school
programs lead to educational quality and improve-
ment;
‘‘(2) the extent to which magnet school pro-
grams enhance student access to quality education;
‘‘(3) the extent to which magnet school pro-
grams lead to the elimination, reduction, or preven-
tion of minority group isolation in elementary and
secondary schools with substantial proportions of mi-
nority students; and
‘‘(4) the extent to which magnet school pro-
grams differ from other school programs in terms of
the organizational characteristics and resource allo-
cations of such magnet school programs.
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‘‘SEC. 4312. AUTHORIZATION OF APPROPRIATIONS; RES-
ERVATION.
‘‘(a) AUTHORIZATION.—For the purpose of carrying
out this part, there are authorized to be appropriated
$125,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the 4 succeeding fiscal years.
‘‘(b) AVAILABILITY
OF FUNDS
FOR GRANTS
TO
AGENCIES NOT PREVIOUSLY ASSISTED.—In any fiscal
year for which the amount appropriated pursuant to sub-
section (a) exceeds $75,000,000, the Secretary shall give
priority to using such amounts in excess of $75,000,000
to award grants to local educational agencies or consortia
of such agencies that did not receive a grant under this
part in the preceding fiscal year.’’.
SEC. 422. WOMEN’S EDUCATIONAL EQUITY.
(a) TRANSFER
AND REDESIGNATION.—Part B of
title V (20 U.S.C. 7231 et seq.) is transferred and redesig-
nated as subpart 2 of part C of title IV. Sections 5201
through 5208 are redesignated as sections 4321 through
4328, respectively.
(b) REPORT.—Section 4326 (as so redesignated) is
amended by striking ‘‘January 1, 1999,’’ and inserting
‘‘January 1, 2005,’’.
(c) EVALUATION
AND
DISSEMINATION.—Section
4327(a) (as so redesignated) is amended—
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(1) by striking ‘‘14701,’’ and inserting ‘‘8651,’’;
and
(2) by striking ‘‘January 1, 1998.’’ and insert-
ing ‘‘January 1, 2004.’’.
(d) REAUTHORIZATION.—Section 4328 (as so redes-
ignated) is amended by striking ‘‘$5,000,000 for fiscal
year 1995 and such sums as may be necessary for each
of the four succeeding fiscal years,’’ and inserting
‘‘$3,000,000 for fiscal year 2002 and such sums as may
be necessary for each of the four succeeding fiscal years,’’.
(e) OTHER CONFORMING AMENDMENTS.—
(1) SHORT TITLE.—Section 4321(a) (as so re-
designated) is amended to read as follows:
‘‘(a) SHORT TITLE.—This subpart may be cited as
the ‘Women’s Educational Equity Act of 2001’.’’.
(2) REFERENCES.—Subpart 2 of part C of title
IV (as so redesignated) is amended—
(A) by striking ‘‘this part’’ each place such
term appears and inserting ‘‘this subpart’’; and
(B) by striking ‘‘5203(b)’’ each place such
term appears and inserting ‘‘4423(b)’’.
SEC. 423. CONTINUATION OF AWARDS.
Notwithstanding any other provision of this Act, any
person or agency that was awarded a grant under part
A of title V (20 U.S.C. 7201 et seq.), or a grant, contract,
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or cooperative agreement under part B of such title (20
U.S.C. 7231 et seq.), prior to the date of the enactment
of this Act shall continue to receive funds in accordance
with the terms of such award until the date on which the
award period terminates under such terms.
TITLE V—21ST CENTURY
SCHOOLS
SEC. 501. SAFE SCHOOLS.
Title V, except part B (which is transferred and re-
designated as subpart 2 of part C of title IV by section
422(a) of this Act) is amended to read as follows:
‘‘TITLE V—21ST CENTURY
SCHOOLS
‘‘PART A—SUPPORTING VIOLENCE AND DRUG
PREVENTION AND ACADEMIC ENRICHMENT
‘‘SEC. 5001. SHORT TITLE.
‘‘This part may be cited as the ‘21st Century Schools
Act of 2001’.
‘‘SEC. 5002. PURPOSE.
‘‘The purpose of this part is to support programs that
prevent the use of illegal drugs, prevent violence, provide
quality before and after school activities and supervision
for school age youth, involve parents and communities,
and are coordinated with related Federal, State, and com-
munity efforts and resources to foster a safe and drug-
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free learning environment in which students increase their
academic achievement, through the provision of Federal
assistance to—
‘‘(1) States for grants to local educational agen-
cies and consortia of such agencies to establish, op-
erate, and improve local programs of drug and vio-
lence prevention in elementary and secondary
schools;
‘‘(2) States for grants to local educational agen-
cies, community-based organizations, and other pub-
lic entities and private organizations, for before and
after school programs for youth; and
‘‘(3) States and public and private nonprofit
and for-profit organizations to conduct training,
demonstrations, and evaluations.
‘‘SEC. 5003. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated—
‘‘(1) $475,000,000 for fiscal year 2002, and
such sums as may be necessary for each of the 4
succeeding fiscal years, for State grants under sub-
part 1;
‘‘(2) $900,000,000 for fiscal year 2002, and
such sums as may be necessary for each of the four
succeeding fiscal years, for State grants under sub-
part 2; and
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‘‘(3) $60,000,000 for fiscal year 2002, and for
each of the 4 succeeding fiscal years, for national
programs under subpart 3.
‘‘Subpart 1—Safe Schools
‘‘SEC. 5111. RESERVATIONS AND ALLOTMENTS.
‘‘(a) RESERVATIONS.—From the amount made avail-
able under section 5003(1) to carry out this subpart for
each fiscal year, the Secretary—
‘‘(1) shall reserve 1 percent or $4,750,000
(whichever is greater) of such amount for grants to
Guam, American Samoa, the United States Virgin
Islands, and the Commonwealth of the Northern
Mariana Islands, to be allotted in accordance with
the Secretary’s determination of their respective
needs and to carry out programs described in this
subpart;
‘‘(2) shall reserve 1 percent or $4,750,000
(whichever is greater) of such amount for the Sec-
retary of the Interior to carry out programs de-
scribed in this subpart for Indian youth;
‘‘(3) shall reserve 0.2 percent of such amount
for Native Hawaiians to be used to carry out pro-
grams described in this subpart;
‘‘(4) notwithstanding section 3 of the Leave No
Child Behind Act of 2001, shall reserve an amount
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necessary to make continuation grants to grantees
under part I of title X of this Act (under the terms
of those grants), as such part existed on the day be-
fore the effective date of the Leave No Child Behind
Act of 2001; and
‘‘(5) notwithstanding section 3 of the Leave No
Child Behind Act of 2001, shall reserve an amount
necessary to make continuation grants to grantees
under the Safe Schools/Healthy Students initiative
(under the terms of those grants), as it existed on
the day before the date of the effective date of the
Leave No Child Behind Act of 2001.
‘‘(b) STATE ALLOTMENTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary, for each fiscal year, shall
allocate among the States—
‘‘(A) one-half of the remainder not re-
served under subsection (a) according to the
ratio between the school-aged population of
each State and the school-aged population of all
the States; and
‘‘(B) one-half of such remainder according
to the ratio between the amount each State re-
ceived under part A of title I for the preceding
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year and the sum of such amounts received by
all the States.
‘‘(2) MINIMUM.—For any fiscal year, no State
shall be allotted under this subsection an amount
that is less than 1⁄2 of 1 percent of the total amount
allotted to all the States under this subsection.
‘‘(c) REALLOTMENT OF UNUSED FUNDS.—If any
State does not apply for an allotment under this subpart
for a fiscal year, the Secretary shall reallot the amount
of the State’s allotment to the remaining States in accord-
ance with this section.
‘‘(d) DEFINITION.—For the purposes of this section,
the term ‘Native Hawaiian’ means any individual any of
whose ancestors were natives, prior to 1778, of the area
which now comprises the State of Hawaii.
‘‘SEC. 5112. RESERVATION OF STATE FUNDS FOR SAFE
SCHOOLS.
‘‘(a) STATE RESERVATION FOR THE GOVERNOR.—
‘‘(1) IN GENERAL.—The chief executive officer
of a State may reserve not more than 20 percent of
the total amount allocated to a State under section
5111(b) for each fiscal year to award competitive
grants and contracts to local educational agencies,
community-based organizations, and other public en-
tities and private organizations for programs or ac-
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tivities to support community efforts that com-
plement activities of local educational agencies de-
scribed in section 5115. Such officer shall award
grants based on—
‘‘(A) the quality of the activity or program
proposed; and
‘‘(B) how the program or activity is
aligned with the appropriate principles of effec-
tiveness described in section 5114(a).
‘‘(2) SPECIAL
CONSIDERATION.—In awarding
funds under subparagraph (A), a chief executive of-
ficer shall give special consideration to grantees that
pursue a comprehensive approach to drug and vio-
lence prevention by providing and incorporating
mental health services in their programs.
‘‘(3) ADMINISTRATIVE COSTS.—The chief exec-
utive officer of a State may use not more than 1
percent of the amount described in subparagraph
(A) for the administrative costs incurred in carrying
out the duties of such officer under this section.
‘‘(b) STATE FUNDS.—
‘‘(1) ADDITIONAL RESERVATIONS.—Each State
shall reserve an amount equal to the total amount
allotted to a State under section 5111(b), less the
amount reserved under subsection (a) and para-
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graphs (2) and (3) of this subsection, for each fiscal
year for its local educational agencies.
‘‘(2) STATE ACTIVITIES.—A State may use not
more than 4 percent of the total amount available
under subsection (a) for State activities described in
subsection (c).
‘‘(3) STATE
ADMINISTRATION.—A State may
use not more than 1 percent of the amount made
available under subsection (a) for the administrative
costs of carrying out its responsibilities under this
subpart.
‘‘(c) ACTIVITIES.—
‘‘(1) IN GENERAL.—A State shall use a portion
of the funds described in subsection (b)(2), either di-
rectly, or through grants and contracts, to plan, de-
velop, and implement capacity building, technical as-
sistance, evaluation, program improvement services,
and coordination activities for local educational
agencies, community-based organizations, other pub-
lic entities, and private organizations that are de-
signed to support the implementation of programs
and activities under this subpart.
‘‘(2) DATA COLLECTION.—
‘‘(A) STATISTICS.—A State may use a por-
tion of the funds, not to exceed 20 percent, de-
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scribed in subsection (b)(2), either directly or
through grants and contracts, to establish and
implement a statewide system of collecting data
regarding statistics on—
‘‘(i) truancy rates; and
‘‘(ii) the frequency, seriousness, and
incidence of violence and drug related of-
fenses resulting in suspensions and expul-
sion in elementary and secondary schools
in States.
‘‘(B) COMPILATION OF STATISTICS.—The
statistics shall be compiled in accordance with
definitions as determined in the State criminal
code, but shall not identify victims of crimes or
persons accused of crimes. The collected data
shall include, incident reports by school offi-
cials, anonymous student surveys, and anony-
mous teacher surveys.
‘‘(C) REPORTING.—Such data and statis-
tics shall be reported to the public and shall be
reported on a school-by-school basis.
‘‘(D) LIMITATION.—Nothing in this sub-
section shall be construed to authorize the Sec-
retary to require particular policies, procedures,
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or practices with respect to crimes on school
property or school security.
‘‘(3) SAFE SCHOOLS.—The State shall establish
and implement a statewide policy requiring that stu-
dents attending persistently dangerous public ele-
mentary and secondary schools, as determined by
the State, or who become a victim of a violent crimi-
nal offense, as defined by State law, while in or on
the grounds of a public elementary school or sec-
ondary school that the student attends, be allowed to
attend a safe public elementary or secondary school,
within the local educational agency, including a pub-
lic charter school and allowing payment of reason-
able transportation costs and tuition costs for such
students.
‘‘SEC. 5113. STATE APPLICATION.
‘‘(a) IN GENERAL.—In order to receive an allotment
under section 5111 for any fiscal year, a State shall sub-
mit to the Secretary, at such time as the Secretary may
require, an application that—
‘‘(1) describes the activities to be funded under
section 5112(c);
‘‘(2) describes how activities funded under this
subpart will support State academic achievement
standards in accordance with section 1111;
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‘‘(3) describes how funds under this subpart
will be coordinated with programs under this Act,
and other programs, as appropriate, in accordance
with the provisions of section 8306;
‘‘(4) provides an assurance that the application
was developed in consultation and coordination with
appropriate State officials and others, including the
chief executive officer, the chief State school officer,
the head of the State alcohol and drug abuse agency,
the heads of the State health and mental health
agencies, the head of the State criminal justice plan-
ning agency, the head of the State child welfare
agency, the head of the State board of education, or
their designees, and representatives of parents, stu-
dents, and community-based organizations;
‘‘(5) provides an assurance that the State will
cooperate with, and assist, the Secretary in con-
ducting data collection as required by section
5116(a);
‘‘(6) provides an assurance that the local edu-
cational agencies in the State will comply with the
provisions of section 8503 pertaining to the partici-
pation of private school children and teachers in the
programs and activities under this subpart;
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‘‘(7) provides an assurance that funds under
this subpart will be used to increase the level of
State, local, and other non-Federal funds that
would, in the absence of funds under this subpart,
be made available for programs and activities au-
thorized under this subpart, and in no case supplant
such State, local, and other non-Federal funds;
‘‘(8) describes the results of the State’s needs
and resources assessment for violence and illegal
drug use prevention which shall be based on the re-
sults of on-going evaluation (which may include data
on the incidence and prevalence, age of onset, per-
ception of health risk and perception of social dis-
approval of violence and illegal drug use by youth in
schools and communities and the prevalence of risk
and protective factors or other scientifically based
research variables in the school and community);
‘‘(9)(A) provides a statement of the State’s per-
formance measures for drug and violence prevention
programs and activities to be funded under this part
that shall be developed in consultation between the
State and local officials and that consist of—
‘‘(i) performance indicators for drug and
violence prevention programs and activities; and
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‘‘(ii) levels of performance for each per-
formance indicator;
‘‘(B) a description of the procedures the State
will use for assessing and publicly reporting progress
toward meeting those performance measures; and
‘‘(C) a plan for monitoring the implementation
of, and providing technical assistance regarding, the
activities and programs conducted by local edu-
cational agencies, community-based organizations,
other public entities, and private organizations under
this subpart;
‘‘(10) provides an assurance that the State will
consult with a representative sample of local edu-
cational agencies in the development of the definition
of ‘persistently dangerous school’ for the purposes of
section 5112(c)(3);
‘‘(11) provides a description of how the State
defines ‘persistently dangerous school’ for the pur-
poses of section 5112(c)(3); and
‘‘(12) provides an assurance that the State ap-
plication will be available for public review after sub-
mission of the application.
‘‘(b) GENERAL APPROVAL.—A State application sub-
mitted pursuant to subsection (a) shall be deemed to be
approved by the Secretary unless the Secretary makes a
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written determination, prior to the expiration of the 90-
day period beginning on the date that the Secretary re-
ceives the application, that the application is in violation
of this subpart.
‘‘(c) DISAPPROVAL.—The Secretary shall not finally
disapprove a State application, except after giving the
State notice and opportunity for a hearing.
‘‘SEC. 5114. FORMULA GRANT PROGRAM.
‘‘(a) IN GENERAL.—
‘‘(1) FUNDS
TO
LOCAL
EDUCATIONAL
AGEN-
CIES.—A State shall provide the amount made avail-
able to the State under this subpart, less the
amounts reserved under sections 5111 and 5112 to
local educational agencies for drug and violence pre-
vention and education as follows:
‘‘(A) 60 percent of such amount based on
the relative amount such agencies received
under part A of title I for the preceding fiscal
year.
‘‘(B) 40 percent of such amount to local
educational agencies based on the relative en-
rollments in public and private nonprofit ele-
mentary and secondary schools within the
boundaries of such agencies.
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‘‘(2) ADMINISTRATIVE COSTS.—Of the amount
received under paragraph (1), a local educational
agency may use not more than 1 percent for the ad-
ministrative costs of carrying out its responsibilities
under this subpart.
‘‘(3) RETURN OF FUNDS TO STATE; REALLOCA-
TION.—
‘‘(A) RETURN.—Except as provided in
subparagraph (B), upon the expiration of the 1-
year period beginning on the date that a local
educational agency receives its allocation—
‘‘(i) such agency shall return to the
State any funds from such allocation that
remain unobligated; and
‘‘(ii) the State shall reallocate any
such amount to local educational agencies
that have submitted plans for using such
amount for programs or activities on a
timely basis.
‘‘(B) CARRYOVER.—In any fiscal year, a
local educational agency, may retain for obliga-
tion in the succeeding fiscal year—
‘‘(i) an amount equal to not more
than 25 percent of the allocation it re-
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ceived under this subpart for such fiscal
year; or
‘‘(ii) upon a demonstration of good
cause by such agency and approval by the
State, an amount that exceeds 25 percent
of such allocation.
‘‘(b) ELIGIBILITY.—To be eligible to receive a
subgrant under this subpart, a local educational agency
desiring a subgrant shall submit an application to the
State. Such an application shall be amended, as necessary,
to reflect changes in the activities and programs of the
local educational agency.
‘‘(c) DEVELOPMENT.—
‘‘(1) CONSULTATION.—
‘‘(A) IN
GENERAL.—A local educational
agency shall develop its application through
timely and meaningful consultation with State
and local government representatives, represent-
atives of schools to be served, school personnel,
and community organizations with relevant and
demonstrated expertise in drug and violence
prevention activities, students and parents.
‘‘(B) CONTINUED CONSULTATION.—On an
ongoing basis, the local educational agency shall
consult with such representatives and organiza-
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tions in order to seek advice regarding how best
to coordinate such agency’s activities under this
subpart with other related strategies, programs,
and activities being conducted in the commu-
nity.
‘‘(2) DESIGN AND DEVELOPMENT.—To ensure
timely and meaningful consultation, a local edu-
cational agency at the initial stages of design and
development of a program or activity shall consult,
in accordance with this subsection, with appropriate
entities and persons on issues regarding the design
and development of the program or activity, includ-
ing efforts to meet the principles of effectiveness de-
scribed in section 5115(a).
‘‘(d) CONTENTS OF APPLICATIONS.—
‘‘(1) IN GENERAL.—An application submitted
by a local educational agency under this section shall
contain—
‘‘(A) an assurance that the activities or
programs to be funded support State academic
achievement goals in accordance with section
1111;
‘‘(B) a detailed explanation of the local
educational agency’s comprehensive plan for
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drug and violence prevention, which shall in-
clude a description of—
‘‘(i) how the plan will be coordinated
with programs under this Act, other Fed-
eral, State, and local programs for drug
and violence prevention, in accordance with
the provisions of section 8306;
‘‘(ii) the local educational agency’s
performance measures for drug and vio-
lence prevention programs and activities,
that shall consist of—
‘‘(I) performance indicators for
drug and violence prevention pro-
grams and activities; and
‘‘(II) levels of performance for
each performance indicator;
‘‘(iii) how such agency will assess and
publicly report progress toward attaining
its performance measures;
‘‘(iv) the drug and violence prevention
activity or program to be funded, including
how the activity or program will meet the
principles of effectiveness described in sec-
tion 5115(a), and the means of evaluating
such activity or program; and
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‘‘(v) how the services will be targeted
to schools and students with the greatest
need;
‘‘(C) a certification that a meaningful as-
sessment has been conducted to determine com-
munity needs (including consultation with com-
munity leaders, businesses, and school officials),
available resources and capacity in the public
and private sector (which may include an anal-
ysis based on data reasonably available at the
time on the incidence and prevalence, age of
onset, perception of health risk, and perception
of social disapproval of drug use and violence
by youth in schools and communities, preva-
lence of risk and protective factors, buffers or
assets, or other scientifically based research
variables in the school and community), the
findings of such assessments;
‘‘(D) an assurance that funds under this
subpart will be used to increase the level of
State, local, and other non-Federal funds that
would, in the absence of funds under this sub-
part, be made available for programs and activi-
ties authorized under this subpart, and in no
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case supplant such State, local, and other non-
Federal funds;
‘‘(E) a description of the mechanisms used
to provide effective notice to the community of
an intention to submit an application under this
title;
‘‘(F) an assurance that drug prevention
programs supported under this part convey a
clear and consistent message that the illegal use
of drugs is wrong and harmful;
‘‘(G) an assurance that the local edu-
cational agency has established and imple-
mented a student code of conduct policy that
clearly states responsibilities of students, teach-
ers, and administrators in maintaining a class-
room environment that allows a teacher to com-
municate effectively with all students in the
class, that allows all students in the class to
learn, has consequences that are fair and ap-
propriate for violations, and is enforced equi-
tably;
‘‘(H) an assurance that the application and
any waiver request will be available for public
review after submission of the application; and
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‘‘(I) such other information and assurances
as the State may reasonably require.
‘‘(2) GENERAL APPROVAL.—A local educational
agency’s application submitted to the State under
this subpart shall be deemed to be approved by the
State unless the State makes a written determina-
tion, prior to the expiration of the 90-day period be-
ginning on the date that the State receives the appli-
cation, that the application is in violation of this
subpart.
‘‘(3) DISAPPROVAL.—The State shall not finally
disapprove a local educational agency application,
except after giving such agency notice and an oppor-
tunity for a hearing.
‘‘SEC. 5115. AUTHORIZED ACTIVITIES.
‘‘(a) PRINCIPLES OF EFFECTIVENESS.—
‘‘(1) IN GENERAL.—For a program or activity
developed pursuant to this subpart to meet the prin-
ciples of effectiveness, such program or activity
shall—
‘‘(A) be based upon an assessment of ob-
jective data regarding the incidence of violence
and illegal drug use in the elementary and sec-
ondary schools and communities to be served,
including an objective analysis of the current
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conditions and consequences regarding violence
and illegal drug use, including delinquency and
serious discipline problems, among students
who attend such schools (including private
school students who participate in the drug and
violence prevention program) that is based on
ongoing local assessment or evaluation activi-
ties;
‘‘(B) be based upon an established set of
performance measures aimed at ensuring that
the elementary and secondary schools and com-
munities to be served by the program have a
drug-free, safe, and orderly learning environ-
ment; and
‘‘(C) be based upon scientifically based re-
search that provides evidence that the program
to be used will reduce violence and illegal drug
use.
‘‘(2) PERIODIC EVALUATION.—The program or
activity shall undergo a periodic evaluation to assess
its progress toward reducing violence and illegal
drug use in schools to be served based on perform-
ance measures described in section 5114(d)(1)(B)(ii)
The results shall be used to refine, improve, and
strengthen the program, and to refine the perform-
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ance measures. The results shall also be made avail-
able to the public upon request, with public notice
of such availability provided.
‘‘(3) WAIVER.—A local educational agency may
apply to the State for a waiver of the requirement
of paragraph (1)(C) to allow innovative activities or
programs that demonstrate substantial likelihood of
success.
‘‘(b) LOCAL EDUCATIONAL AGENCY ACTIVITIES.—
‘‘(1) PROGRAM REQUIREMENTS.—A local edu-
cational agency shall use funds made available under
section 5114 to develop, implement, and evaluate
comprehensive programs and activities, which are co-
ordinated with other school and community-based
services and programs, that shall—
‘‘(A) support State academic achievement
goals in accordance with section 1111;
‘‘(B) be consistent with the principles of
effectiveness described in subsection (a);
‘‘(C) be designed to—
‘‘(i) prevent or reduce violence and il-
legal drug use, delinquency, serious dis-
cipline 
problems, 
and 
poor 
academic
achievement and illegal drug use; and
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‘‘(ii) create a well disciplined environ-
ment conducive to learning, which includes
consultation between teachers, principals,
and other school personnel to identify early
warning signs of drug use and violence and
to provide behavioral interventions as part
of classroom management efforts; and
‘‘(D) include activities to promote the in-
volvement of parents in the activity or program,
to promote coordination with community groups
and coalitions, and government agencies, and to
distribute information about the local edu-
cational agency’s needs, goals, and programs
under this subpart.
‘‘(2) AUTHORIZED
ACTIVITIES.—Each local
educational agency or consortium of such agencies,
that receives a subgrant under this subpart may use
such funds to carry out activities, such as—
‘‘(A) developmentally appropriate drug and
violence prevention programs in both elemen-
tary and secondary schools that incorporate a
variety of prevention strategies and activities,
which may include—
‘‘(i) teaching students that most peo-
ple do not use illegal drugs;
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‘‘(ii) teaching students to recognize
social and peer pressure to use illegal
drugs and the skills for resisting illegal
drug use;
‘‘(iii) teaching students about the dan-
gers of emerging drugs;
‘‘(iv) engaging students in the learn-
ing process;
‘‘(v) incorporating activities in sec-
ondary schools that reinforce prevention
activities 
implemented 
in 
elementary
schools; and
‘‘(vi) involving families and commu-
nities in setting clear expectations against
violence and illegal drug use and enforcing
appropriate consequences for violence and
illegal drug use;
‘‘(B) training of school personnel and par-
ents in youth drug and violence prevention, in-
cluding training in early identification, interven-
tion, and prevention of threatening behavior;
‘‘(C) community-wide strategies for reduc-
ing violence and illegal drug use, and illegal
gang activity;
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‘‘(D) to the extent that expenditures do
not exceed 20 percent of the amount made
available to a local educational agency under
this subpart (except that this subparagraph
shall not apply to the hiring and training of
school resource officers pursuant to clause (ii)),
law 
enforcement 
and 
security 
activities,
including—
‘‘(i) acquisition and installation of
metal detectors;
‘‘(ii) hiring and training of security
personnel (including school resource offi-
cers), that are related to youth drug and
violence prevention;
‘‘(iii) reporting of criminal offenses on
school property; and
‘‘(iv) development of comprehensive
school security assessments;
‘‘(E) expanding and improving school-
based mental health services, including early
identification of violence and illegal drug use,
assessment, and direct individual or group
counseling services provided to students, par-
ents, and school personnel by qualified school
based mental health services personnel;
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‘‘(F) establishing and maintaining peer
mediation programs that include educating and
training peer mediators and a designated fac-
ulty supervisor and purchasing necessary mate-
rials to facilitate training and the mediation
process;
‘‘(G) alternative education programs or
services that reduce the need for suspensions or
expulsions or programs or services for students
who have been expelled or suspended from the
regular educational settings, including programs
or services to assist students to reenter the reg-
ular education setting upon return from treat-
ment or alternative education programs;
‘‘(H) counseling, mentoring, and referral
services, and other student assistance practices
and programs, including assistance provided by
qualified school based mental health services
personnel and the training of teachers by
school-based mental health service providers in
appropriate identification and intervention tech-
niques for students, at risk of violent behavior
and drug use;
‘‘(I) activities that reduce truancy;
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‘‘(J) 
age 
appropriate, 
developmentally
based violence prevention and education pro-
grams that address the legal, health, personal,
and social consequences of illegal drug use and
violent and disruptive behavior and that include
activities designed to help students develop a
sense of individual responsibility and respect for
the rights of others, and to resolve conflicts
without violence;
‘‘(K) providing guidance to students that
encourages students to seek advice for anxiety,
threats of violence, or actual violence and to
confide in a trusted adult regarding an uncom-
fortable or threatening situation;
‘‘(L) the development of educational pro-
grams that prevent school based crime, includ-
ing preventing crimes motivated by hate that
result in acts of physical violence at school and
any programs or published materials that ad-
dress school based crime shall not recommend
or require any action that abridges or infringes
upon the constitutionally protected rights of
free speech, religion, and equal protection of
students, their parents, or legal guardians;
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‘‘(M) testing students for illegal drug use
or conducting student locker searches for illegal
drugs or drug paraphernalia consistent with the
4th amendment to the Constitution;
‘‘(N) emergency intervention services fol-
lowing traumatic crisis events, such as a shoot-
ing, major accident, or a drug-related incident,
that has disrupted the learning environment;
‘‘(O) establishing and implementing a sys-
tem for transferring suspension and expulsion
records by a local educational agency to any
public or private elementary or secondary
school;
‘‘(P) allowing students attending a persist-
ently dangerous public elementary or secondary
school, as determined by the State, or who be-
come a victim of a violent criminal offense, as
defined by State law, while in or on the grounds
of a public elementary school or secondary
school that the student attends, to attend a safe
public elementary or secondary school, within
the local educational agency, including a public
charter school, and allowing payment of reason-
able transportation costs and tuition costs for
such students;
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‘‘(Q) the development and implementation
of character education and training programs
that reflect values, that take into account the
views of parents or guardians of the student for
whom the program is intended, which may in-
clude honesty, citizenship, courage, justice, re-
spect, 
personal 
responsibility, 
and 
trust-
worthiness;
‘‘(R) establishing and maintaining a school
violence hotline;
‘‘(S) activities to ensure students’ safe
travel to and from school, including pedestrian
and bicycle safety education; and
‘‘(T) the evaluation of any of the activities
authorized under this subsection and the collec-
tion of any data required by this part.
‘‘SEC. 5116. EVALUATION AND REPORTING.
‘‘(a) DATA COLLECTION.—
‘‘(1) IN GENERAL.—The National Center for
Education Statistics shall report, and when appro-
priate, collect data to determine the frequency, seri-
ousness, and incidence of illegal drug use and vio-
lence by youth in schools and communities in the
States, using if appropriate, data submitted by the
States pursuant to subsection (b).
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‘‘(2) REPORT.—The Secretary shall submit to
the Congress a report on the data collected under
this subsection.
‘‘(b) STATE REPORT.—
‘‘(1) IN GENERAL.—Not later than October 1,
2004, and every third year thereafter, the chief exec-
utive officer of a State, in consultation with the
State educational agency, shall submit to the Sec-
retary a report on the implementation and effective-
ness of State and local programs under this subpart.
‘‘(2) SPECIAL RULE.—The report required by
this subsection shall be—
‘‘(A) based on the State’s ongoing evalua-
tion activities, and shall include data on the
prevalence of violence and illegal drug use by
youth in schools and communities; and
‘‘(B) made available to the public upon re-
quest, with public notice of such availability
provided.
‘‘(c) LOCAL EDUCATIONAL AGENCY REPORT.—Each
local educational agency receiving funds under this sub-
part shall submit to the State such information, and at
such intervals as the State reasonably requires to complete
the State report required by subsection (b), information
on the prevalence of violence and illegal drug use by youth
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in the schools and the community and the progress of the
local educational agency toward meeting its performance
measures. The report shall be made available to the public
upon request, with public notice of such availability pro-
vided.
‘‘Subpart 2—21st Century Schools
‘‘SEC. 5121. STATE ALLOTMENTS FOR 21ST CENTURY
SCHOOLS.
‘‘(a) STATE ALLOTMENTS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), from the amount made available under
section 5003(2) to carry out this subpart for each
fiscal year, the Secretary shall allocate among the
States—
‘‘(A) one-half of such amount according to
the ratio between the school-aged population of
each State and the school-aged population of all
the States; and
‘‘(B) one-half of such amount according to
the ratio between the amount each State re-
ceived under part A of title I for the preceding
year and the sum of such amounts received by
all the States.
‘‘(2) MINIMUM.—For any fiscal year, no State
shall be allotted under this subsection an amount
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that is less than 1⁄2 of 1 percent of the total amount
allotted to all the States under this subsection.
‘‘(b) REALLOTMENT OF UNUSED FUNDS.—If any
State does not apply for an allotment under this subpart
for a fiscal year, the Secretary shall reallot the amount
of the State’s allotment to the remaining States in accord-
ance with this section.
‘‘(c) STATE FUNDS.—
‘‘(1) IN GENERAL.—Each State that receives a
grant under this subpart shall reserve an amount
equal to the amount allotted to such State under
subsection (a), less the amount reserved under para-
graphs (2) and (3) of this subsection, for each fiscal
year for its local educational agencies.
‘‘(2) STATE
ADMINISTRATION.—A State may
use not more than 1 percent of the amount made
available under subsection (a) for the administrative
costs of carrying out its responsibilities under this
subpart.
‘‘(3) STATE ACTIVITIES.—A State may use not
more than 4 percent of the amount made available
under subsection (a) for the following activities:
‘‘(A) Monitoring and evaluation of pro-
grams and activities assisted under this sub-
part.
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‘‘(B) Providing capacity building, training,
and technical assistance under this subpart.
‘‘SEC. 5122. STATE APPLICATION.
‘‘(a) IN GENERAL.—In order to receive an allotment
under section 5121(a) 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 subpart;
‘‘(2) describes the competitive procedures and
criteria the State will use to ensure that grants
under this subpart will support quality extended
learning opportunities;
‘‘(3) an assurance that the program will pri-
marily target students who attend schools eligible for
schoolwide programs under section 1114;
‘‘(4) describes the steps the State will take to
ensure that programs implement effective strategies,
including providing ongoing technical assistance and
training, evaluation, and dissemination of promising
practices;
‘‘(5) describe how activities funded under this
subpart will support State academic achievement
goals in accordance with section 1111;
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‘‘(6) describe how funds under this subpart will
be coordinated with programs under this Act, and
other programs; as appropriate, in accordance with
the provisions of section 8306;
‘‘(7) provides an assurance that funds under
this subpart will be used to increase the level of
State, local, and other non-Federal funds that
would, in the absence of funds under this subpart,
be made available for programs and activities au-
thorized under this subpart; and in no case supplant
such State, local, and other non-Federal funds:
‘‘(8) provides an assurance that the application
was developed in consultation and coordination with
appropriate State officials, including the chief State
school officer, the heads of the State health and
mental health agencies or their designees, represent-
atives of teachers, parents, students, the business
community, and community-based organizations, in-
cluding religious organizations;
‘‘(9) 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;
‘‘(10) describes how the State will evaluate the
effectiveness of programs and activities carried out
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under this subpart which shall include at a
minimum—
‘‘(A) a description of the performance indi-
cators and performance measures that will be
used to evaluate programs and activities; and
‘‘(B) public dissemination of the evalua-
tions of programs and activities carried out
under this subpart; and
‘‘(11) provides for timely public notice of intent
to file application and an assurance that the applica-
tion will be available for public review after submis-
sion of the application.
‘‘(b) GENERAL APPROVAL.—A State application sub-
mitted pursuant to subsection (a) shall be deemed to be
approved by the Secretary unless the Secretary makes a
written determination, prior to the expiration of the 90-
day period beginning on the date that the Secretary re-
ceives the application, that the application is in violation
of this subpart.
‘‘(c) DISAPPROVAL.—The Secretary shall not finally
disapprove a State application, except after giving the
State notice and opportunity for a hearing.
‘‘SEC. 5123. COMPETITIVE GRANT PROGRAM.
‘‘(a) IN GENERAL.—A State that receives funds
under this subpart shall provide the amount made avail-
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able under section 5121 to eligible entities for 21st cen-
tury community learning programs in accordance with this
subpart.
‘‘(b) ELIGIBILITY.—
‘‘(1) IN GENERAL.—To be eligible to receive a
subgrant under this subpart, an eligible entity desir-
ing a subgrant shall submit an application to the
State that contains—
‘‘(A) a description of the before and after
school activity to be funded including—
‘‘(i) an assurance that the program
will take place in a safe and easily acces-
sible facility;
‘‘(ii) a description of how students
participating in the center will travel safely
to and from the community learning center
and back home; and
‘‘(iii) a description of how the eligible
applicant 
will 
disseminate 
information
about the project (including its location) to
the community in a manner that is under-
standable and accessible.
‘‘(B) a description of how the activity is
expected to improve student academic perform-
ance;
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‘‘(C) a description of how the activity will
meet the principles of effectiveness described in
section 5124;
‘‘(D) an assurance that the program will
primarily target students who attend schools el-
igible for schoolwide programs under section
1114;
‘‘(E) provides an assurance that funds
under this subpart will be used to increase the
level of State, local, and other non-Federal
funds that would, in the absence of funds under
this subpart, be made available for programs
and activities authorized under this subpart;
and in no case supplant such State, local, and
other non-Federal funds;
‘‘(F) a description of the partnership with
local educational agency, a community-based or-
ganization, and another public entity or private
organization, if appropriate;
‘‘(G) a certification that a meaningful as-
sessment has been conducted to determine com-
munity needs, available resources and capacity
in the findings of such assessments, and a de-
scription of the mechanisms used to provide ef-
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fective notice to the community of an intention
to submit an application under this subpart;
‘‘(H) a description of the applicants experi-
ence, or promise of success, in providing edu-
cational or related activities that will com-
pliment and enhance the student’s academic
achievement;
‘‘(I) an assurance that the applicant will
develop a plan to continue the activity after
funding under this subpart ends;
‘‘(J) an assurance that the application and
any waiver request will be available for public
review after submission of the application; and
‘‘(K) such other information and assur-
ances as the State may reasonably require.
‘‘(2) ELIGIBLE
ENTITY.—An eligible entity
under this subpart is a local educational agency,
community-based organization, and other public en-
tity or private organization or a consortium of two
or more of such groups.
‘‘(c) PEER REVIEW.—In reviewing local applications
under this section, a State shall use a peer review process
or other methods of assuring the quality of such applica-
tions.
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‘‘(d) GEOGRAPHIC DIVERSITY.—To the extent prac-
ticable, a State shall distribute funds equitably among geo-
graphic areas within the State.
‘‘(e) DURATION
OF AWARDS.—Grants under this
subpart may be awarded for a period of not less than 3
years and not more than 5 years.
‘‘(f) AMOUNT OF AWARDS.—A grant awarded under
this subpart may not be made in an amount of less than
$50,000.
‘‘(g) PRIORITY.—In making awards under this sub-
part, the State shall give priority to applications submitted
by applicants proposing to target services to students who
attend schools that have been identified as in need of im-
provement under section 1116.
‘‘(h) PERMISSIVE LOCAL MATCH.—
‘‘(1) IN GENERAL.—A State may require an eli-
gible entity to match funds awarded under this sub-
part, except that such match may not exceed the
amount of the grant award.
‘‘(2) SLIDING SCALE.—The amount of a match
under paragraph (1) shall be established based on a
sliding fee scale that takes into account—
‘‘(A) the relative poverty of the population
to be targeted by the eligible entity; and
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‘‘(B) the ability of the eligible entity to ob-
tain such matching funds.
‘‘(3) IN-KIND
CONTRIBUTIONS.—Each State
that requires an eligible entity to match funds under
this subsection shall permit such entity to provide all
or any portion of such match in the form of in-kind
contributions.
‘‘(4) CONSIDERATION.—Notwithstanding this
subsection, a State shall not consider an eligible en-
tity’s ability to match funds when determining which
eligible entities will receive subgrants under this sub-
part.
‘‘SEC. 5124. LOCAL ACTIVITIES.
‘‘(a) PRINCIPLES OF EFFECTIVENESS.—
‘‘(1) IN GENERAL.—For a program or activity
developed pursuant to this subpart to meet the prin-
ciples of effectiveness, such program or activity
shall—
‘‘(A) be based upon an assessment of ob-
jective data regarding the need for before and
after school programs and activities in such
schools and communities;
‘‘(B) be based upon an established set of
performance measures aimed at ensuring the
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availability of quality extended learning oppor-
tunities; and
‘‘(C) if appropriate, be based upon scientif-
ically based research that provides evidence that
the program will help students meet State and
local performance standards to be used.
‘‘(2) PERIODIC EVALUATION.—The program or
activity shall undergo a periodic evaluation to assess
its progress toward achieving its goal of providing
quality extended learning opportunities. The results
shall be used to refine, improve, and strengthen the
program, and to refine the performance measures.
The results shall also be made available to the public
upon request, with public notice of such availability
provided.
‘‘(b) SERVICES.—Each eligible entity that receives a
subgrant under this subpart shall use such funds to estab-
lish or expand activities in community learning centers
that—
‘‘(1) provide quality extended learning opportu-
nities to help students, particularly students who at-
tend low-performing schools, to meet State and local
student performance standards in the core academic
subjects, such as reading and mathematics; and
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‘‘(2) provide students with additional activities,
such as drug and violence prevention programs, art
and music programs, technology education pro-
grams, recreational activity, and character education
programs that are linked to, and reinforce, the reg-
ular academic program of schools those students at-
tend.
‘‘(c) AUTHORIZED ACTIVITIES.—Each eligible entity
that receives a subgrant under this subpart may use such
funds to carry out activities, such as—
‘‘(1) before and after school activities (including
summer school programs) that advance student
achievement, including—
‘‘(A) remedial education activities and aca-
demic enrichment learning programs, including
providing additional assistance to students in
order to allow them to improve their academic
achievement;
‘‘(B) math and science education activities;
‘‘(C) arts and music education activities;
‘‘(D) entrepreneurial education programs;
‘‘(E) tutoring services (including those pro-
vided by senior citizen volunteers) and men-
toring programs;
‘‘(F) recreational activities;
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‘‘(G) telecommunications and technology
education programs;
‘‘(H) expanded library service hours;
‘‘(I) programs that promote parental in-
volvement; and
‘‘(J) programs that provide assistance to
students who have been truant, suspended, or
expelled to allow them to improve their aca-
demic achievement; and
‘‘(2) establishing or enhancing programs or ini-
tiatives that improve academic achievement.
‘‘(d) DEFINITION.—For the purpose of this section,
a ‘community learning center’ is an entity that assists stu-
dents to meet State and local content and student per-
formance standards in core academic subjects, such as
reading and mathematics, by providing them with quality
extended learning opportunities and related activities
(such as drug and violence-prevention programs, art and
music programs, recreational programs, technology edu-
cation programs, and character education programs) that
are linked to, and reinforce, the regular academic program
of schools attended by the students served and is operated
by a local educational agency, community-based organiza-
tion, other public entity or private organization or a con-
sortium of two or more such groups. Community learning
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centers shall operate outside school hours, such as before
or after school, during the summer, or when school is not
in session.
‘‘Subpart 3—National Programs
‘‘SEC. 5131. FEDERAL ACTIVITIES.
‘‘(a) PROGRAM AUTHORIZED.—
‘‘(1) IN GENERAL.—From funds made available
to carry out this part under section 5003(3), the
Secretary, in consultation with the Secretary of
Health and Human Services, the Director of the Of-
fice of National Drug Control Policy, and the Attor-
ney General, shall evaluate the effectiveness of pro-
grams and activities that prevent violence and the il-
legal use of drugs by youth, that promote safety and
discipline for students in elementary and secondary
schools, and that provide before and after school su-
pervision and academic enrichment, based on the
needs reported by States and local educational agen-
cies.
‘‘(2) 
COORDINATION.—The 
Secretary 
shall
carry out activities described in paragraph (1) di-
rectly, or through grants, contracts, or cooperative
agreements with public and private nonprofit and
for-profit organizations, and individuals, or through
agreements with other Federal agencies, and shall
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coordinate such activities with other appropriate
Federal activities.
‘‘(3) PROGRAMS.—Activities described in para-
graph (1) may include—
‘‘(A) demonstrations and rigorous scientif-
ically based evaluations of innovative ap-
proaches to drug and violence prevention and
before and after school activities based on needs
reported by State and local educational agen-
cies;
‘‘(B) the provision of information on drug
abuse education and prevention to the Secretary
of Health and Human Services for dissemina-
tion by the clearinghouse for alcohol and drug
abuse information established under section
501(d)(16) of the Public Health Service Act;
‘‘(C) the provision of information on vio-
lence prevention and school safety to the Attor-
ney General for dissemination; and
‘‘(D) continuing technical assistance to
chief executive officers, State agencies, and
local educational agencies to build capacity to
develop and implement high-quality, effective
programs consistent with the principles of effec-
tiveness.
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‘‘(b) PEER REVIEW.—The Secretary shall use a peer
review process in reviewing applications for funds under
this section.
‘‘Subpart 4—Gun Possession
‘‘SEC. 5141. GUN-FREE SCHOOL REQUIREMENTS.
‘‘(a) REQUIREMENTS.—
‘‘(1) STATE LAW.—Each State receiving funds
under this Act shall—
‘‘(A) have in effect a State law requiring
each local educational agency to expel from
school for a period of not less than one year a
student who is determined to have possessed a
firearm in or at a school or on school grounds
under the jurisdiction of a local educational
agency in that State, except that such State law
shall allow the chief administering officer of
such local educational agency to modify such
expulsion requirement for a student on a case-
by-case basis; and
‘‘(B) require each local educational agency
to adopt a policy requiring each elementary and
secondary school to refer to the criminal justice
or juvenile delinquency system any student who
possesses a firearm in school.
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‘‘(2) CONSTRUCTION.—Nothing in this part
shall be construed to prevent a State from allowing
a local educational agency that has expelled a stu-
dent from such student’s regular school setting from
providing educational services to such student in an
alternative setting.
‘‘(b) REPORT
TO STATE.—Each local educational
agency requesting assistance from the State educational
agency that is to be provided from funds made available
to the State under this Act shall provide to the State, in
the application requesting such assistance—
‘‘(1) an assurance that such local educational
agency is in compliance with the requirements of
subsection (a); and
‘‘(2) a description of the circumstances sur-
rounding incidents of possessions and any expulsions
imposed under the State law required by subsection
(a)(1), including—
‘‘(A) the name of the school concerned;
‘‘(B) the number of students expelled from
such school for firearm possession; and
‘‘(C) the type of firearm concerned.
‘‘(c) SPECIAL RULE.—The provisions of this section
shall be construed in a manner consistent with the Individ-
uals with Disabilities Education Act.
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‘‘(d) DEFINITIONS.—For the purpose of this
subpart—
‘‘(1) the term ‘firearm’ has the same meaning
given to such term under section 921(a)(3) of title
18, United States Code; and
‘‘(2) the term ‘school’ does not include a home
school, regardless of whether a home school is treat-
ed as a private school under State law.
‘‘Subpart 5—General Provisions
‘‘SEC. 5151. DEFINITIONS.
‘‘For the purposes of this part, the following terms
have the following meanings:
‘‘(1) BEFORE
AND
AFTER
SCHOOL
ACTIVI-
TIES.—The term ‘before and after school activities’
means academic, recreational, and enrichment activi-
ties for school-age youth outside of the regular
school hours or school year.
‘‘(2) CONTROLLED
SUBSTANCE.—The term
‘controlled substance’ means a drug or other sub-
stance identified under Schedule I, II, III, IV, or V
in section 202(c) of the Controlled Substances Act
(21 U.S.C. 812(c)).
‘‘(3) DRUG.—The term ‘drug’ includes con-
trolled substances; the illegal use of alcohol and to-
bacco; and the harmful, abusive, or addictive use of
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substances, 
including 
inhalants 
and 
anabolic
steroids.
‘‘(4) DRUG AND VIOLENCE PREVENTION.—The
term ‘drug and violence prevention’ means—
‘‘(A) with respect to drugs, prevention,
early intervention, rehabilitation referral, or
education related to the illegal use of drugs;
and
‘‘(B) with respect to violence, the pro-
motion of school safety, such that students and
school personnel are free from violent and dis-
ruptive acts, on school premises, going to and
from school, and at school-sponsored activities,
through the creation and maintenance of a
school environment that is free of weapons and
harassment and fosters individual responsibility
and respect for the rights of others.
‘‘(5) NONPROFIT.—The term ‘nonprofit,’ as ap-
plied to a school, agency, organization, or institution
means a school, agency, organization, or institution
owned and operated by one or more nonprofit cor-
porations or associations, no part of the net earnings
of which inures, or may lawfully inure, to the benefit
of any private shareholder or individual.
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‘‘(6) SCHOOL-AGED
POPULATION.—The term
‘school-aged population’ means the population aged
5 through 17, as determined by the Secretary on the
basis of the most recent satisfactory data available
from the Department of Commerce.
‘‘(7) SCHOOL BASED MENTAL HEALTH SERV-
ICES
PROVIDER.—The term ‘school based mental
health services provider’ includes a State licensed or
State certified school counselor, school psychologist,
school social worker, or other State licensed or cer-
tified mental health professional qualified under
State law to provide such services to children and
adolescents.
‘‘(8) SCHOOL PERSONNEL.—The term ‘school
personnel’ includes teachers, principals, administra-
tors, guidance counselors, social workers, psycholo-
gists, nurses, librarians, and other support staff who
are employed by a school or who perform services for
the school on a contractual basis.
‘‘(9) STATE.—The term ‘State’ means each of
the 50 States, the District of Columbia, and the
Commonwealth of Puerto Rico.
‘‘SEC. 5152. MESSAGE AND MATERIALS.
‘‘(a) ‘WRONG AND HARMFUL’ MESSAGE.—Drug pre-
vention programs supported under this title shall convey
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a clear and consistent message that the illegal use of drugs
is wrong and harmful.
‘‘(b) CURRICULUM.—The Secretary shall not pre-
scribe the use of specific curricula for programs supported
under this part.
‘‘SEC. 5153. PARENTAL CONSENT.
‘‘Upon receipt of written notification from the par-
ents or legal guardians of a student, the local educational
agency shall withdraw such student from any program or
activity funded under this title. The local educational
agency shall make reasonable efforts to inform parents or
legal guardians of the content of such programs or activi-
ties funded under this title, other than classroom instruc-
tion.
‘‘SEC. 5154. PROHIBITED USES OF FUNDS.
‘‘No funds under this part may be used for—
‘‘(1) construction (except for minor remodeling
needed to accomplish the purposes of this part); or
‘‘(2) medical services, drug treatment or reha-
bilitation, except for pupil services or referral to
treatment for students who are victims of, or wit-
nesses to, use of drugs or crime.
‘‘SEC. 5155. DISCIPLINE OF CHILDREN WITH DISABILITIES.
‘‘(a) AUTHORITY
OF SCHOOL PERSONNEL.—Each
State receiving funds under this Act shall require each
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local educational agency to have in effect a policy under
which school personnel of such agency may discipline (in-
cluding expel or suspend) a child with a disability who—
‘‘(1) carries or possesses a weapon to or at a
school, on school premises, or to or at a school func-
tion, under the jurisdiction of a State or a local edu-
cational agency;
‘‘(2) knowingly possesses or uses illegal drugs
or sells or solicits the sale of a controlled substance
at a school, on school premises, or at a school func-
tion, under the jurisdiction of a State or a local edu-
cational agency; or
‘‘(3) commits an aggravated assault or battery
(as defined under State or local law) at a school, on
school premises, or at a school function, under the
jurisdiction of a State or local educational agency,
in the same manner in which such personnel may dis-
cipline a child without a disability. Such personnel may
modify the disciplinary action on a case-by-case basis.
‘‘(b) RULE
OF CONSTRUCTION.—Nothing in sub-
section (a) shall be construed to prevent a child with a
disability who is disciplined pursuant to the authority pro-
vided under paragraph (1) or (2) of subsection (a) from
asserting a defense that the carrying or possession of the
weapon, or the possession or use of the illegal drugs (or
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the sale or solicitation of the controlled substance), as the
case may be, was unintentional or innocent.
‘‘(c) FREE APPROPRIATE PUBLIC EDUCATION.—
‘‘(1) CEASING TO PROVIDE EDUCATION.—Not-
withstanding any other provision of Federal law, a
child expelled or suspended under subsection (a)
shall not be entitled to continue educational services,
including a free appropriate public education, re-
quired under Federal law during the term of such
expulsion or suspension, if the State in which the
local educational agency responsible for providing
educational services to such child does not require a
child without a disability to receive educational serv-
ices after being expelled or suspended.
‘‘(2) PROVIDING EDUCATION.—Notwithstanding
paragraph (1), the local educational agency respon-
sible for providing educational services to a child
with a disability who is expelled or suspended under
paragraph (1) may choose to continue to provide
educational services or mental health services to
such child. If the local educational agency so chooses
to continue to provide the services—
‘‘(A) nothing in any other provision of
Federal law shall require the local educational
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agency to provide such child with any particular
level of service; and
‘‘(B) the location where the local edu-
cational agency provides the services shall be
left to the discretion of the local educational
agency.
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) CONTROLLED
SUBSTANCE.—The term
‘controlled substance’ has the meaning given the
term in section 5151.
‘‘(2) ILLEGAL DRUG.—The term ‘illegal drug’
means a controlled substance, but does not include
such a substance that is legally possessed or used
under the supervision of a licensed health-care pro-
fessional or that is legally possessed or used under
any other authority under the Controlled Substances
Act or under any other provision of Federal law.
‘‘(3) WEAPON.—The term ‘weapon’ has the
meaning given the term ‘dangerous weapon’ under
subsection (g)(2) of section 930 of title 18, United
States Code.
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‘‘PART B—ENHANCING EDUCATION THROUGH
TECHNOLOGY
‘‘SEC. 5201. SHORT TITLE.
‘‘This part may be cited as the ‘Enhancing Education
Through Technology Act of 2001’.
‘‘SEC. 5202. PURPOSES.
‘‘The purposes of this part are as follows:
‘‘(1) To provide assistance to States and local-
ities for implementing innovative technology initia-
tives that lead to increased student academic
achievement and that may be evaluated for effective-
ness and replicated if successful.
‘‘(2) To encourage the establishment or expan-
sion of initiatives, including those involving public-
private partnerships, designed to increase access to
technology, particularly in high-need local edu-
cational agencies.
‘‘(3) To assist States and localities in the acqui-
sition, development, interconnection, implementation,
improvement, and maintenance of an effective edu-
cational technology infrastructure in a manner that
expands access to technology for students (particu-
larly for disadvantaged students) and teachers.
‘‘(4) To promote initiatives that provide school
teachers, principals, and administrators with the ca-
pacity to effectively integrate technology into cur-
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riculum that is aligned with challenging State aca-
demic content and student academic achievement
standards, through such means as high quality pro-
fessional development programs.
‘‘(5) To enhance the ongoing professional devel-
opment of teachers, principals, and administrators
by providing constant access to training to updated
research in teaching and learning via electronic
means.
‘‘(6) To support the development of electronic
networks and other innovative methods, such as dis-
tance learning, of delivering challenging courses and
curricula for students who would otherwise not have
access to such courses and curricula, particularly in
geographically remote regions.
‘‘(7) To support the rigorous evaluation of pro-
grams funded under this part, particularly the im-
pact of such initiatives on student academic per-
formance, and ensure that timely information on the
results of such evaluations is widely accessible
through electronic means.
‘‘(8) To support local efforts for the use of
technology to promote parent and family involve-
ment in education and communication among stu-
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dents, parents, teachers, principals, and administra-
tors.
‘‘SEC. 5203. AUTHORIZATION OF APPROPRIATIONS; FUND-
ING RULE.
‘‘(a) IN GENERAL.—There are authorized to be
appropriated—
‘‘(1) to carry out subparts 1 and 2 of this
part—
‘‘(A) $1,000,000,000 for fiscal year 2002;
and
‘‘(B) such sums as may be necessary for
each of fiscal years 2003 through 2006; and
‘‘(2) to carry out subpart 3 of this part—
‘‘(A) $24,500,000 for fiscal year 2002; and
‘‘(B) such sums as may be necessary for
each of fiscal years 2003 through 2006.
‘‘(b) ALLOCATION OF FUNDS BETWEEN NATIONAL
AND STATE AND LOCAL INITIATIVES.—The amount of
funds made available under subsection (a) shall be allo-
cated as follows:
‘‘(1) Not less than 95 percent shall be made
available for State and local technology initiatives
under subpart 1.
‘‘(2) Not more than 5 percent may be made
available for activities of the Secretary under sub-
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part 2, of which not more than $15,000,000 may be
used for the study required by section 5221(a)(1).
‘‘SEC. 5204. DEFINITIONS.
‘‘In this part:
‘‘(1) The term ‘distance learning’ means the
transmission of educational or instructional pro-
gramming to geographically dispersed individuals
and groups via telecommunications.
‘‘(2) The term ‘eligible local entity’ means—
‘‘(A) a high-need local educational agency;
or
‘‘(B) an eligible local partnership.
‘‘(3) The term ‘eligible local partnership’ means
a partnership that includes at least one high-need
local educational agency and at least one—
‘‘(A) local educational agency that can
demonstrate that teachers in schools served by
that agency are effectively integrating tech-
nology and proven teaching practices into in-
struction, based on scientifically based research,
that result in improvement in—
‘‘(i) classroom instruction in the core
academic subject areas; and
‘‘(ii) the preparation of students to
meet challenging State academic content
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and student academic achievement stand-
ards;
‘‘(B) institution of higher education that is
in full compliance with the reporting require-
ments of section 207(f) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1027(f)) and
that has not been identified by its State as low-
performing under section 208 of such Act (20
U.S.C. 1028);
‘‘(C) for-profit business or organization
that develops, designs, manufactures, or pro-
duces technology products or services, or has
substantial expertise in the application of tech-
nology; or
‘‘(D) public or private nonprofit organiza-
tion with demonstrated experience in the appli-
cation of educational technology.
‘‘(4) The term ‘high-need local educational
agency’ means a local educational agency that—
‘‘(A) is among the local educational agen-
cies in the State with the highest numbers or
percentages of children from families with in-
comes below the poverty line, as defined by the
Office of Management and Budget and revised
annually in accordance with section 673(2) of
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the Community Services Block Grant Act (42
U.S.C. 9902(2));
‘‘(B) includes one or more schools identi-
fied under section 1116; and
‘‘(C) has a substantial need for assistance
in acquiring and using technology.
‘‘Subpart 1—State and Local Technology for Success
Grants
‘‘SEC. 5211. DETERMINATION OF AMOUNT OF STATE ALLOT-
MENT.
‘‘(a) IN GENERAL.—Except as otherwise provided in
this subpart, each State shall be eligible to receive a grant
under this subpart for a fiscal year in an allotment deter-
mined as follows:
‘‘(1) 50 percent shall bear the same relationship
to the amount made available under section
5203(b)(1) for such year as the amount such State
received under part A for title I for such year bears
to the amount received for such year under such
part by all States.
‘‘(2) 50 percent shall be determined on the
basis of the State’s relative population of individuals
age 5 through 17, as determined by the Secretary on
the basis of the most recent satisfactory data.
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‘‘(b) RESERVATION OF FUNDS FOR BUREAU OF IN-
DIAN AFFAIRS AND OUTLYING AREAS.—Of the amount
made available to carry out this subpart under section
5203(b)(1) for a fiscal year—
‘‘(1) the Secretary shall reserve 1⁄2 of 1 percent
for the Secretary of the Interior for programs under
this subpart for schools operated or funded by the
Bureau of Indian Affairs; and
‘‘(2) the Secretary shall reserve 1⁄2 of 1 percent
to provide assistance under this subpart to the out-
lying areas.
‘‘(c) MINIMUM ALLOTMENT.—The amount of any
State’s allotment under subsection (a) for any fiscal year
may not be less than 1⁄2 of 1 percent of the amount made
available under section 5203(b)(1) for such year.
‘‘(d) REALLOTMENT OF UNUSED FUNDS.—If any
State does not apply for an allotment under this subpart
for a fiscal year, or does not use its entire allotment for
that fiscal year, the Secretary shall reallot the amount of
the State’s allotment, or the unused portion thereof, to
the remaining States in accordance with this section.
‘‘SEC. 5212. USE OF ALLOTMENT BY STATE.
‘‘(a) IN GENERAL.—Of the amount provided to a
State from its allotment under section 5211—
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‘‘(1) the State may use not more than 5 percent
to carry out activities under section 5215; and
‘‘(2) subject to subsection (b), not less than 95
percent shall be distributed by the State as follows:
‘‘(A) 60 percent of such amount shall—
‘‘(i) be awarded to local educational
agencies that have submitted applications
to the State under section 5214 (which, in
the case of a local educational agency that
is an eligible local entity, may be combined
with an application for funds awarded
under subparagraph (B)), in an amount
that bears the same relationship to the
amount made available under section
5211(a) for such year as the amount such
local educational agency received under
part A of title I for such year bears to the
amount received for such year under such
part by all local educational agencies with-
in the State; and
‘‘(ii) be used for the activities de-
scribed in section 5216.
‘‘(B) 40 percent of such amount shall be
awarded through a State-determined competi-
tive process to eligible local entities that have
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submitted applications to the State under sec-
tion 5214 (which, in the case of an eligible local
entity that is a local educational agency, may be
combined with an application for funds provided
under subparagraph (A)), to be used to carry
out activities consistent with activities described
in section 5216.
‘‘(b) CONTINUATION OF AWARDS.—Notwithstanding
section 3 of the No Child Left Behind Act of 2001, a State
shall make continuation awards on multiyear grants
awarded by the State under section 3132(a)(2) (as in ef-
fect on the day preceding the date of enactment of such
Act) from the funds described in subsection (a)(2) for the
shorter of—
‘‘(1) the duration of the original grant period;
or
‘‘(2) two years after the date of enactment of
such Act.
‘‘SEC. 5213. STATE APPLICATIONS.
‘‘(a) IN GENERAL.—To be eligible to receive a grant
under this subpart, a State shall submit an application
to the Secretary containing a new or updated statewide,
long-range strategic educational technology plan (which
shall consider the educational technology needs of local
educational agencies), and such other information as the
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Secretary may reasonably require, at such time and in
such manner as the Secretary may specify.
‘‘(b) CONTENTS.—Each State application submitted
under this section shall include the following:
‘‘(1) A description of how the State will use
funds provided under this subpart to improve the
academic achievement of all students and to improve
the capacity of all teachers to provide instruction in
the State through the use of education technology.
‘‘(2) A description of the State’s goals for using
advanced technology to improve student achievement
aligned to challenging State academic content and
student academic achievement standards.
‘‘(3) A description of how the State will take
steps (including through public and private partner-
ships) to ensure that all students and teachers in the
State, particularly those residing or teaching in dis-
tricts served by high-need local educational agencies,
will have increased access to educational technology.
‘‘(4) A description of—
‘‘(A) how the State will ensure ongoing in-
tegration of technology into instructional strate-
gies and school curricula in all schools in the
State, so that technology will be fully integrated
into those schools by December 31, 2006; and
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‘‘(B) the process and accountability meas-
ures the State will use for the evaluation of
such 
integration, 
including 
whether 
such
integration—
‘‘(i) has increased the ability of teach-
ers to teach effectively; and
‘‘(ii) has enabled students to meet
challenging State academic content and
student academic achievement standards.
‘‘(5) A description of how the State will encour-
age the development and utilization of innovative
strategies for the delivery of specialized or rigorous
academic courses and curricula through the use of
technology and distance learning, particularly for
those areas of the State that would not otherwise
have access to such courses and curricula due to
geographical isolation or insufficient resources.
‘‘(6) An assurance that financial assistance pro-
vided under this subpart shall supplement, not sup-
plant, State and local funds.
‘‘(7) A description of how the State will ensure
that every teacher and principal within a school
funded under this subpart will be computer-literate
and proficient (as determined by the State) by De-
cember 31, 2006.
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‘‘(8) A description of how the State will ensure
that each grant under section 5212(a)(2)(B) to an
eligible local applicant is of sufficient duration, size,
scope, and quality to carry out the purposes of this
part effectively.
‘‘(9) A description of how the State educational
agency will provide technical assistance to eligible
local applicants, and its capacity for providing such
assistance, including developing public and private
partnerships under this part.
‘‘(c) DEEMED APPROVAL.—A State application sub-
mitted to the Secretary under this section shall be deemed
to be approved by the Secretary unless the Secretary
makes a written determination, prior to the expiration of
the 90-day period that begins on the date the Secretary
receives the complete application, that the application does
not reasonably meet the purposes of this subpart.
‘‘(d) DISAPPROVAL.—The Secretary may issue a final
disapproval of a State’s application under this subpart
only after giving the State notice and an opportunity for
a hearing.
‘‘(e) DISSEMINATION OF INFORMATION ON STATE
APPLICATIONS.—The Secretary shall make information on
State applications under this subpart widely available to
schools and the general public, including through dissemi-
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nation on the Internet, in a timely and user-friendly man-
ner.
‘‘SEC. 5214. LOCAL APPLICATIONS.
‘‘(a) IN GENERAL.—An applicant seeking to receive
funds from a State under this subpart shall submit to the
State an application containing a new or updated long-
range local strategic educational technology plan con-
sistent with the objectives of the statewide education tech-
nology plan described in section 5213(a), and such other
information as the State may reasonably require, at such
time, and in such manner as the State may specify.
‘‘(b) CONTENTS
OF LOCAL APPLICATION.—Each
local application described in this section shall include the
following:
‘‘(1) A description of how the applicant will use
Federal funds provided under this subpart to im-
prove the academic achievement of all students and
to improve the capacity of all teachers to provide in-
struction through the use of education technology.
Such a description may include how the applicant
will provide release time for teachers (which may in-
clude the provision of a substitute teacher).
‘‘(2) A description of the applicant’s specific
goals for using advanced technology to improve stu-
dent achievement aligned to challenging State aca-
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demic content and student academic achievement
standards.
‘‘(3) A description of—
‘‘(A) how the applicant will take steps to
ensure that all students and teachers in schools
served by the local educational agency (particu-
larly those in high-poverty and high-need
schools) have increased access to educational
technology; and
‘‘(B) how such technology will be used to
improve the academic achievement for such stu-
dents.
‘‘(4) A description of how the applicant will
promote—
‘‘(A) the utilization of teaching strategies
and curricula, based on scientifically based re-
search, which effectively integrate technology
into instruction, leading to improvements in
student academic achievement as measured by
challenging State academic content and student
academic achievement standards; and
‘‘(B) sustained and intensive, high-quality
professional development consistent with section
2033 (as applicable), based on scientifically
based research, which increases teacher and
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principal capacity to create improved learning
environments through the integration of tech-
nology into instruction through proven strate-
gies and improved content as described in sub-
paragraph (A).
‘‘(5) A description of how the applicant will in-
tegrate technology (including software and other
electronically delivered learning materials) across the
curriculum and a time line for such integration, in-
cluding a description of how the applicant will make
effective use of new and emerging technologies and
teaching practices that are linked to such emerging
technologies to provide challenging content and im-
proved classroom instruction.
‘‘(6) A description of how the applicant will co-
ordinate education technology activities funded
under this subpart, including professional develop-
ment, with any such activities provided under other
Federal, State, and local programs, including those
authorized under title I, title II, title IV, and the In-
dividuals with Disabilities Education Act (20 U.S.C.
1400 et seq.) and the Carl D. Perkins Vocational
and Technical Education Act of 1998 (20 U.S.C.
2301 et seq.).
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‘‘(7) A description of the accountability meas-
ures and process the applicant will use for the eval-
uation of the extent to which funds provided under
this subpart were effective in integrating technology
into school curriculum, increasing the ability of
teachers to teach, and enabling students to meet
challenging State academic content and student aca-
demic achievement standards.
‘‘(8) A description of how the applicant will en-
courage the development and utilization of innova-
tive strategies for the delivery of specialized or rig-
orous academic courses and curricula through the
use of technology and distance learning, particularly
for those areas that would not otherwise have access
to such courses and curricula due to geographical
isolation or insufficient resources.
‘‘(9) A description of what steps the applicant
has taken, or will take, to comply with section
5205(a)(1).
‘‘(10) If requested by the State—
‘‘(A) a description of how the applicant will
use funds provided under this subpart in a
manner that is consistent with any statewide
education technology priorities that may be es-
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tablished by the State consistent with this sub-
part; and
‘‘(B) a description of how any technology
obtained with funds provided under this sub-
part will be integrated with funds provided pre-
viously under title III (as in effect on the day
preceding the date of enactment of the No
Child Left Behind Act of 2001), as appropriate.
‘‘SEC. 5215. STATE ACTIVITIES.
‘‘(a) IN GENERAL.—From funds made available
under section 5212(a)(1), a State shall carry out activities
and assist local efforts to carry out the purposes of this
subpart, which may include the following activities:
‘‘(1) Developing, or assisting applicants in the
development and utilization of, innovative strategies
to deliver rigorous academic programs through the
use of technology and distance learning, and pro-
viding other technical assistance to such applicants
throughout the State, with a priority to high-need
local educational agencies.
‘‘(2) Establishing or supporting public-private
initiatives, such as interest-free or reduced-cost
loans, for the acquisition of educational technology
for high-need local educational agencies and stu-
dents attending schools served by such agencies.
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‘‘(3) Assisting applicants in providing sustained
and intensive, high-quality professional development
based on scientifically based research in the integra-
tion of advanced technologies (including emerging
technologies) into curriculum and in using those
technologies to create new learning environments, in-
cluding training in the use of technology to—
‘‘(A) access data and resources to develop
curricula and instructional materials;
‘‘(B) enable teachers—
‘‘(i) to use the Internet to commu-
nicate with parents, other teachers, prin-
cipals, and administrators; and
‘‘(ii) to retrieve Internet-based learn-
ing resources; and
‘‘(C) lead to improvements in classroom in-
struction in the core academic subject areas,
which effectively prepare students to meet chal-
lenging State academic content and student
academic achievement standards.
‘‘(4) Assisting applicants in providing all stu-
dents (including students with disabilities and stu-
dents with limited English proficiency) and teachers
with access to educational technology.
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‘‘(5) Establishing or expanding access to tech-
nology in areas served by high-need local educational
agencies, with special emphasis on access provided
through technology centers in partnership with li-
braries and with the support of the private sector.
‘‘(6) Developing enhanced performance meas-
urement systems to determine the effectiveness of
education technology programs funded under this
subpart, particularly in determining the extent to
which education technology funded under this sub-
part has been successfully integrated into teaching
strategies and school curriculum, has increased the
ability of teachers to teach, and has enabled stu-
dents to meet challenging State academic content
and student academic achievement standards.
‘‘(7) Collaborating with other States on dis-
tance learning, including making advanced courses
available to students who would otherwise not have
access to such courses.
‘‘(b) LIMITATION ON ADMINISTRATIVE COSTS.—Of
the 5 percent of the State’s allotment under section 5211
which may be used to carry out activities under this sec-
tion, not more than 40 percent may be used by the State
for administrative costs.
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‘‘SEC. 5216. LOCAL ACTIVITIES.
‘‘(a) PROFESSIONAL DEVELOPMENT.—A recipient of
funds made available under section 5212(a)(2)(A) shall
use not less than 20 percent of such funds to provide sus-
tained and intensive, high-quality professional develop-
ment, consistent with section 2033 (as applicable), based
on scientifically based research in the integration of ad-
vanced technologies (including emerging technologies) into
curriculum and in using those technologies to create new
learning environments, including professional development
in the use of technology to—
‘‘(1) access data and resources to develop cur-
ricula and instructional materials;
‘‘(2) enable teachers—
‘‘(i) to use the Internet to communicate
with parents, other teachers, principals, and ad-
ministrators; and
‘‘(ii) to retrieve Internet-based learning re-
sources; and
‘‘(3) lead to improvements in classroom instruc-
tion in the core academic subject areas, which effec-
tively prepare students to meet challenging State
academic content and student academic achievement
standards.
‘‘(b) WAIVER.—Subsection (a) does not apply to a re-
cipient of funds under section 5212(a)(2)(A) that dem-
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onstrates, to the satisfaction of the State, that such recipi-
ent already provides sustained and intensive, high-quality
professional development based on scientifically based re-
search in the integration of technology (including emerg-
ing technologies) into the curriculum.
‘‘(c) OTHER ACTIVITIES.—In addition to the activi-
ties described in subsection (a), a recipient of funds dis-
tributed by a State under section 5212(a)(2)(A) shall use
such funds to carry out other activities consistent with this
subpart, which may include the following:
‘‘(1) Adapting or expanding existing and new
applications of technology to enable teachers to in-
crease student academic achievement through the
use of teaching practices and advanced technologies
that are based on scientifically based research and
are designed to prepare students to meet challenging
State academic content and student academic
achievement standards, and for developing and uti-
lizing innovative strategies to deliver rigorous aca-
demic programs.
‘‘(2) Expanding, acquiring, implementing, ap-
plying, and maintaining education technology as a
means to improve the academic achievement of all
students.
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‘‘(3) The establishment or expansion of initia-
tives, particularly those involving public-private part-
nerships, designed to increase access to technology
for students and teachers, with special emphasis on
the access of high-need local educational agencies to
technology.
‘‘(4) Using technology to promote parent and
family involvement, and support communications be-
tween students, parents, and teachers.
‘‘(5) Acquiring proven and effective curricula
that include integrated technology and are designed
to help students achieve challenging State academic
content and student academic achievement stand-
ards.
‘‘(6) Using technology to collect, manage, and
analyze data to inform school improvement efforts.
‘‘(7) 
Implementing 
enhanced 
performance
measurement systems to determine the effectiveness
of education technology programs funded under this
subpart, particularly in determining the extent to
which education technology funded under this sub-
part has been successfully integrated into teaching
strategies and school curriculum, has increased the
ability of teachers to teach, and has enabled stu-
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dents to meet challenging State academic content
and student academic achievement standards.
‘‘(8) Preparing one or more teachers in elemen-
tary and secondary schools as technology leaders
who are provided with the means to serve as experts
and train other teachers in the effective use of tech-
nology.
‘‘(9) Establishing or expanding access to tech-
nology in areas served by high-need local educational
agencies, with special emphasis for access provided
through technology centers in partnership with li-
braries and with the support of the private sector.
‘‘Subpart 2—National Technology Activities
‘‘SEC. 5221. NATIONAL ACTIVITIES.
‘‘(a) IN GENERAL.—Using funds made available
under section 5203(b)(2), the Secretary—
‘‘(1) shall—
‘‘(A) conduct an independent, long-term
study, utilizing scientifically based research
methods and control groups, on the effect of
educational technology on improving student
academic achievement;
‘‘(B) include in the study an identification
of uses of educational technology (including how
teachers can integrate technology into the cur-
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ricula) that have a measurable positive impact
on student achievement;
‘‘(C) establish an independent review panel
to advise the Secretary on methodological and
other issues that arise in conducting this long-
term study; and
‘‘(D) submit to the Congress interim re-
ports, when appropriate, and a final report, to
be submitted not later than 6 months before
the end of fiscal year 2006, on the findings of
the study;
‘‘(2) may fund national technology initiatives
that are supported by scientifically based research
and utilize technology in education, through the
competitive award of grants or contracts, pursuant
to a peer review process, to States, local educational
agencies, eligible local entities, institutions of higher
education, public agencies, and private nonprofit or
for-profit agencies; and
‘‘(3) may provide technical assistance (directly
or through the competitive award of grants or con-
tracts) to States, local educational agencies, and
other recipients of funds under this part in order to
assist such States, local educational agencies, and
other recipients to achieve the purposes of this part.
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‘‘(b) NATIONAL TECHNOLOGY INITIATIVES.—
‘‘(1) USE
OF
FUNDS.—In funding national
technology initiatives under subsection (a)(2), the
Secretary—
‘‘(A) shall place a priority on projects
that—
‘‘(i) develop innovative models using
electronic networks or other forms of dis-
tance learning to provide challenging
courses that are otherwise not readily
available to students in a particular school
district, particularly in rural areas; or
‘‘(ii) increase access to technology to
students served by high-need local edu-
cational agencies; and
‘‘(B) shall, in order to identify effective
uses of educational technology that have a
measurable positive impact on student achieve-
ment and as specified in paragraph (3)—
‘‘(i) develop tools and provide re-
sources and support, including technical
assistance, for recipients of funds under
subsection (a)(2) to effectively evaluate
their activities; and
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‘‘(ii) disseminate the evaluations made
under paragraph (2)(A)(ii).
‘‘(2) REQUIREMENTS
FOR
RECIPIENTS
OF
FUNDS.—
‘‘(A) APPLICATION.—In order to receive a
grant or contract under subsection (a)(2), an
entity shall submit an application to the Sec-
retary (at such time and in such form as the
Secretary may require), and shall include in the
application—
‘‘(i) a description of the project pro-
posed to be carried out with the grant or
contract and how it would carry out the
purposes of subsection (a)(2); and
‘‘(ii) a detailed plan for an inde-
pendent evaluation, supported by scientif-
ically based research principles, of the
project to determine the impact on the aca-
demic achievement of students served
under such project, as measured by chal-
lenging State academic content and stu-
dent academic achievement standards.
‘‘(B) NON-FEDERAL SHARE.—
‘‘(i) IN GENERAL.—Subject to clauses
(ii) and (iii), the Secretary may require
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any recipient of a grant or contract under
subsection (a)(2) to share in the cost of
the activities assisted under such grant or
contract, which may be in the form of cash
or in-kind contributions, fairly valued.
‘‘(ii) INCREASE.—The Secretary may
increase the non-Federal share required of
a recipient of a grant or contract under
subsection (a)(2) after the first year such
recipient receives funds under such grant
or contract.
‘‘(iii) MAXIMUM.—The non-Federal
share required under this subsection may
not exceed 50 percent of the cost of the ac-
tivities assisted under a grant or contract
under this subpart.
‘‘(iv) NOTICE.—The Secretary shall
publish, in the Federal Register, the non-
Federal share required under this subpara-
graph.
‘‘(3) EVALUATION AND DISSEMINATION.—The
Secretary shall make information on each project
funded with a grant or contract under subsection
(a)(2) widely available to schools and the general
public, including through dissemination on the Inter-
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net, in a timely and user-friendly manner. This in-
formation shall, at a minimum, include—
‘‘(A) upon the awarding of such a grant or
contract under subsection (a)(2), the identifica-
tion of the grant or contract recipient, the
amount of the grant or contract, the stated
goals of the grant or contract, the methods by
which the grant or contract will be evaluated in
meeting such stated goals, and the timeline for
meeting such goals;
‘‘(B) not later than 3 months after the
completion of the first year of the project pe-
riod, information on the progress of the grant
or contract recipient in carrying out the grant
or contract, including a detailed description of
the use of the funds provided, the extent to
which the stated goals have been reached, and
the results (or progress of) the evaluation of the
project; and
‘‘(C) not later than 3 months after the
completion of the second year of the project pe-
riod (and updated thereafter as appropriate), a
followup to the information described in sub-
paragraph (B).
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‘‘Subpart 3—Ready to Learn, Ready to Teach
‘‘SEC. 5231. READY TO LEARN TELEVISION.
‘‘(a) PROGRAM AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary shall award
grants to or enter into contracts or cooperative
agreements with eligible entities described in para-
graph (3) to—
‘‘(A) develop, produce, and distribute edu-
cational and instructional video programming
for preschool and elementary school children
and their parents in order to facilitate student
academic achievement;
‘‘(B) facilitate the development (directly or
through contracts with producers of children
and family educational television programming)
of educational programming for preschool and
elementary school children and accompanying
support materials and services that directly pro-
mote the effective use of such programming;
‘‘(C) facilitate the development of pro-
gramming and digital content especially de-
signed for nationwide distribution over digital
broadcasting channels and the Internet, con-
taining Ready to Learn-based children’s pro-
gramming and resources for parents and care-
givers;
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‘‘(D) enable such entities to contract with
other entities (such as public telecommuni-
cations entities) so that programs under this
section are disseminated and distributed by the
most appropriate distribution technologies to
the widest possible audience appropriate to be
served by the programming; and
‘‘(E) develop and disseminate training and
support materials, including interactive pro-
grams and programs adaptable to distance
learning technologies which are designed to—
‘‘(i) promote school readiness; and
‘‘(ii) promote the effective use of program-
ming developed under subparagraphs (B) and
(C) among parents, Head Start providers, Even
Start and providers of family literacy services,
child care providers, early childhood develop-
ment personnel, and elementary school teachers,
public libraries, and after school program per-
sonnel caring for preschool and elementary
school children.
‘‘(2) AVAILABILITY.—In making grants, con-
tracts, or cooperative agreements under this sub-
section, the Secretary shall ensure that recipients in-
crease the effective use of the programming under
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this section by making it widely available with sup-
port materials, as appropriate, to young children,
their parents, child care workers, Head Start pro-
viders, Even Start and providers of family literacy
services.
‘‘(3) ELIGIBLE ENTITIES DESCRIBED.—In this
section, an ‘eligible entity’ means a nonprofit entity
(including a public telecommunications entity) which
is able—
‘‘(A) to demonstrate a capacity for the de-
velopment and national distribution of edu-
cational and instructional television program-
ming of high quality which is accessible by a
large majority of disadvantaged preschool and
elementary school children; and
‘‘(B) to demonstrate—
‘‘(i) a capacity to contract with the
producers of children’s television program-
ming for the purpose of developing edu-
cational television programming of high
quality which is accessible by a large ma-
jority of disadvantaged preschool and ele-
mentary school children, and
‘‘(ii) consistent with the entity’s mis-
sion and nonprofit nature, a capacity to
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negotiate such contracts in a manner
which returns to the entity an appropriate
share of any ancillary income from sales of
any program-related products.
‘‘(4) CAP ON ADMINISTRATIVE COSTS.—An en-
tity receiving a grant, contract, or cooperative agree-
ment from the Secretary under this subsection may
not use more than 5 percent of the amounts received
under the grant, contract, or cooperative agreement
for the expenses of administering the grant, con-
tract, or cooperative agreement.
‘‘(5) COORDINATION OF ACTIVITIES.—An entity
receiving a grant, contract, or cooperative agreement
from the Secretary under this subsection shall work
with the Secretary and the Secretary of Health and
Human Services to—
‘‘(A) maximize the utilization by preschool
and elementary school children of the program-
ming under this section and to make such pro-
gramming widely available to federally funded
programs serving such populations; and
‘‘(B) coordinate with Federal programs
that have major training components for early
childhood development (including Head Start,
Even Start, family literacy services, and State
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training activities funded under the Child Care
Development Block Grant Act of 1990 (42
U.S.C. 9858 et seq.)) regarding the availability
and utilization of materials developed with
funds provided under this section to enhance
parent and child care provider skills in early
childhood development and education.
‘‘(b) APPLICATIONS.—Any entity desiring a grant,
contract, or cooperative agreement under subsection (a)
shall submit an application to the Secretary at such time,
in such manner, and accompanied by such information as
the Secretary may reasonably require.
‘‘(c) REPORT AND EVALUATION..—
‘‘(1) ANNUAL REPORT BY GRANT RECIPIENTS
TO SECRETARY.—Each entity receiving funds under
this section shall prepare and submit to the Sec-
retary an annual report which contains such infor-
mation as the Secretary may require. At a min-
imum, the report shall describe the program activi-
ties undertaken with funds received under this sec-
tion, including information regarding—
‘‘(A) the programming that has been devel-
oped directly or indirectly by the entity and the
target population of the programs developed;
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‘‘(B) the support and training materials
that have been developed to accompany the pro-
gramming and the method by which such mate-
rials are distributed to consumers and users of
the programming;
‘‘(C) the means by which the programming
has been distributed, including the distance
learning technologies that have been utilized to
make programming available and the geo-
graphic distribution achieved through such
technologies; and
‘‘(D) the initiatives undertaken by the enti-
ty to develop public-private partnerships to se-
cure non-Federal support for the development
and distribution and broadcast of educational
and instructional programming.
‘‘(2) REPORT
TO
CONGRESS.—The Secretary
shall prepare and submit to the relevant committees
of Congress a biannual report on the activities fund-
ed and carried out under this section, and shall in-
clude in the report—
‘‘(A) a summary of the programming de-
veloped using funds provided under this section;
and
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‘‘(B) a description of the training mate-
rials developed using funds provided under this
section, the manner in which outreach has been
conducted to inform parents and child care pro-
viders of the availability of such materials, and
the manner in which such materials have been
distributed.
‘‘(d) FUNDING RULE.—Not less than 60 percent of
the amounts authorized to be appropriated under section
5233 for any fiscal year shall be used to carry out sub-
paragraphs (B) and (C) of subsection (a)(1).
‘‘SEC. 5232. READY TO TEACH.
‘‘(a) IN GENERAL.—The Secretary may carry out
any of the following activities:
‘‘(1) Awarding grants to a nonprofit tele-
communications entity (or a partnership of such en-
tities) for the purpose of carrying out a national
telecommunications-based program to improve the
teaching of core academic subjects and to assist ele-
mentary and secondary school teachers in preparing
all students to achieve State academic content stand-
ards.
‘‘(2) Awarding grants to or entering into con-
tracts or cooperative agreements with a local public
telecommunications entity to develop, produce, and
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distribute educational and instructional video pro-
gramming which is designed for use by elementary
and secondary school students, created for or adapt-
able to State academic content standards, and capa-
ble of distribution through digital broadcasting and
school digital networks.
‘‘(b) APPLICATIONS.—
‘‘(1) IN
GENERAL.—Any telecommunications
entity or partnership of such entities desiring a
grant under this section shall submit an application
to the Secretary.
‘‘(2) SPECIFIC REQUIREMENTS FOR NATIONAL
TELECOMMUNICATIONS-BASED PROGRAM.—Each ap-
plication for a grant under subsection (a)(1) shall—
‘‘(A) demonstrate that the applicant will
use the existing publicly funded telecommuni-
cations infrastructure, the Internet, and school
digital networks (where available) to deliver
video, voice, and data in an integrated service
to train teachers in the use of materials and
learning technologies for achieving State aca-
demic content standards;
‘‘(B) assure that the program for which
assistance is sought will be conducted in co-
operation with States as appropriate, local edu-
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cational agencies, and State or local nonprofit
public telecommunications entities;
‘‘(C) assure that a significant portion of
the benefits available for elementary and sec-
ondary schools from the program for which as-
sistance is sought will be available to schools of
local educational agencies which have a high
percentage of children counted for the purpose
of part A of title I; and
‘‘(D) contain such additional assurances as
the Secretary may reasonably require.
‘‘(c) APPROVAL
OF APPLICATIONS; NUMBER
OF
DEMONSTRATION
SITES.—In 
approving 
applications
under this section, the Secretary shall assure that—
‘‘(1) the national telecommunications-based pro-
gram under subsection (a)(1) is conducted at ele-
mentary and secondary school sites in at least 15
States; and
‘‘(2) grants under subsection (a)(2) are award-
ed on a competitive basis and for a period of 3 years
to entities which—
‘‘(A) enter into multiyear collaborative ar-
rangements for content development with State
educational agencies, local educational agencies,
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institutions of higher education, businesses, or
other agencies and organizations, and
‘‘(B) contribute non-Federal matching
funds (including funds provided for transitions
to digital broadcasting as well as in-kind con-
tributions) to the activities assisted with the
grant in an amount not less than 100 percent
of the amount of the grant.
‘‘PART C—CHARACTER EDUCATION
‘‘SEC. 5301. CHARACTER EDUCATION PROGRAM.
‘‘(a) PROGRAM AUTHORIZED.—
‘‘(1) IN GENERAL.—The Secretary may make
grants to State educational agencies, local edu-
cational agencies, or consortia of such agencies for
the design and implementation of character edu-
cation programs that—
‘‘(A) can be integrated into State academic
content standards for the core academic sub-
jects; and
‘‘(B) can be carried out in conjunction
with other educational reform efforts.
‘‘(2) DURATION.—Each grant under this sec-
tion shall be made for a period not to exceed 5
years, of which the grant recipient may not use more
than 1 year for planning and program design.
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‘‘(b) CONTRACTS UNDER PROGRAM.—
‘‘(1) EVALUATION.—Each agency or consortium
receiving assistance under this section may contract
with outside sources, including institutions of higher
education and private and nonprofit organizations
(including religious organizations), for the purposes
of—
‘‘(A) evaluating the program for which the
assistance is made available;
‘‘(B) measuring the integration of such
program into the curriculum and teaching
methods of schools where the program is car-
ried out; and
‘‘(C) measuring the success of such pro-
gram in fostering the elements of character se-
lected by the recipient under subsection (c)(1).
‘‘(2) MATERIALS
AND
PROGRAM
DEVELOP-
MENT.—Each agency or consortium receiving assist-
ance under this section may contract with outside
sources, including institutions of higher education
and private and nonprofit organizations (including
religious organizations), for assistance in—
‘‘(A) developing secular curricula, mate-
rials, teacher training, and other activities re-
lated to character education; and
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‘‘(B) integrating secular character edu-
cation into the curriculum and teaching meth-
ods of schools where the program is carried out.
‘‘(c) ELEMENTS OF CHARACTER.—
‘‘(1) SELECTION.—
‘‘(A) IN GENERAL.—Each agency or con-
sortium receiving assistance under this section
may select the elements of character that will
be taught under the program for which the as-
sistance is made available.
‘‘(B) CONSIDERATION OF VIEWS.—In se-
lecting elements of character under paragraph
(1), the agency or consortium shall consider the
views of the parents or guardians of the stu-
dents to be taught under the program.
‘‘(2) EXAMPLE ELEMENTS.—Elements of char-
acter selected under this subsection may include any
of the following:
‘‘(A) Trustworthiness.
‘‘(B) Respect.
‘‘(C) Responsibility.
‘‘(D) Fairness.
‘‘(E) Caring.
‘‘(F) Citizenship.
‘‘(G) Giving.
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‘‘(d) APPLICATION.—
‘‘(1) IN GENERAL.—Each agency or consortium
seeking assistance under this section shall submit an
application to the Secretary at such time and in
such manner as the Secretary may require.
‘‘(2) REQUIRED INFORMATION.—Each applica-
tion for assistance under this section shall include
information that—
‘‘(A) demonstrates that the program for
which the assistance is sought has clear goals
and objectives that are based on scientifically
based research;
‘‘(B) describes the activities that will be
carried out with the assistance and how such
activities will meet the goals and objectives de-
scribed in paragraph (1); and
‘‘(C) describes how the program for which
the assistance is sought will be linked to other
efforts to improve educational achievement,
including—
‘‘(i) broader educational reforms that
are being instituted by the applicant or its
partners; and
‘‘(ii) applicable State academic con-
tent standards for student achievement.
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‘‘(e) SELECTION OF RECIPIENTS.—
‘‘(1) PEER REVIEW.—
‘‘(A) IN GENERAL.—In selecting agencies
or consortia to receive assistance under this sec-
tion from among the applicants for such assist-
ance, the Secretary shall use a peer review
process that includes the participation of ex-
perts in the field of character education.
‘‘(B) USE OF FUNDS.—The Secretary may
use funds appropriated under this section for
the cost of carrying out peer reviews under this
paragraph.
‘‘(2) SELECTION
CRITERIA.—Each selection
under paragraph (1) shall be made on the basis of
the quality of the application submitted, taking into
consideration such factors as—
‘‘(A) the extent of parental, student, and
community involvement in the program; and
‘‘(B) the likelihood that the goals of the
program will be realistically achieved.
‘‘(3) EQUITABLE
DISTRIBUTION.—In making
selections under this subsection, the Secretary shall
ensure, to the extent practicable under paragraph
(2), that the programs assisted under this section
are equitably distributed among the geographic re-
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gions of the United States, and among urban, subur-
ban, and rural areas.
‘‘(f) EVALUATIONS.—
‘‘(1) IN GENERAL.—As a condition of receiving
assistance under this section, the Secretary shall re-
quire each agency or consortium receiving such as-
sistance to transmit to the Secretary, not later than
5 years after such receipt, a report containing an
evaluation of each program assisted.
‘‘(2) ATTAINMENT
OF
GOALS
AND
OBJEC-
TIVES.—In conducting an evaluation referred to in
paragraph (1), each agency or consortium shall
evaluate the degree to which each program for which
assistance was made available attained the goals and
objectives for the program as described in the appli-
cation for assistance submitted under subsection (d).
‘‘(3) DISSEMINATION.—The Secretary shall—
‘‘(A) make each evaluation received under
this subsection publicly available; and
‘‘(B) provide public notice (through such
means as the Internet, the media, and public
agencies) of the availability of each such evalua-
tion after it is received by the Secretary.
‘‘(g) MATCHING FUNDS.—As a condition of receiving
assistance under this section, the Secretary may require
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that each agency or consortium receiving such assistance
provide matching funds from non-Federal sources.
‘‘SEC. 5302. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this part $50,000,000 for fiscal year 2002 and such sums
as may be necessary for each of fiscal years 2003 through
2006.
‘‘PART D—ELEMENTARY AND SECONDARY
SCHOOL COUNSELING PROGRAMS
‘‘SEC. 5401. ELEMENTARY AND SECONDARY SCHOOL COUN-
SELING PROGRAMS.
‘‘(a) FINDINGS.—Congress finds as follows:
‘‘(1) The Surgeon General reported in January
2001 that 1 in 10 children suffer from mental ill-
nesses severe enough to impair development and
fewer than 1 in 5 children get treatment for mental
illnesses.
‘‘(2) The Surgeon General reported that the
burden of suffering by children with mental health
needs and their families has created a health crisis
in this country. Growing numbers of children are
suffering needlessly because their emotional, behav-
ioral, and developmental needs are not being met by
the very institutions and systems that were created
to take care of them.
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‘‘(3) As a result of the concern about the fail-
ure of the healthcare system to reach children and
adolescents with mental illnesses, there is currently
great interest in developing new models for the deliv-
ery of mental health and counseling services that
can reach underserved groups efficiently.
‘‘(4) Schools are a sensible point of intervention
because of their central position in many children’s
lives and development, especially when families are
unable to assume a leading role.
‘‘(5) School-based mental health and counseling
services allow for the identification of children in
need of treatment much earlier in their development.
‘‘(6) Establishing mental health and counseling
services in schools provides access to underserved
youth with or at risk of emotional or behavioral
problems.
‘‘(7) The Surgeon General’s 2000 report on
youth violence concludes that effective treatment can
divert a significant proportion of delinquent and vio-
lent youths from future violence and crime.
‘‘(8) Mental health and counseling services can
play an important role in violence prevention on all
levels, including preventing problem behaviors from
developing; identifying and serving specific, at-risk
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populations; and reducing the deleterious effects of
violence on victims and witnesses.
‘‘(9) An evaluation of the model program for
the elementary school counseling demonstration pro-
gram established pursuant to this section prior to
the date of enactment of the Elementary and Sec-
ondary Counseling Improvement Act of 2001 found
that the number of referrals to the principal’s office
decreased by nearly half, the use of force, weapons,
and threatening of others also decreased, school sus-
pensions were reduced, and students felt safer.
‘‘(10) The report produced by the Institute of
Medicine, ‘Schools and Health: Our Nation’s Invest-
ment’, recommended a student-to-school counselor
ratio of 250:1, student-to-school psychologist ratio of
1000:1, and a student-to-school social worker ratio
of 800:1. The United States average student-to-
counselor ratio is 551:1. Ratios for school psycholo-
gists and school social workers also exceed the rec-
ommended levels.
‘‘(b) GRANTS AUTHORIZED.—
‘‘(1) IN
GENERAL.—The Secretary may use
funds provided under this section to award grants to
local educational agencies to enable such agencies to
establish or expand elementary and secondary school
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counseling programs which meet the requirements of
subsection (c).
‘‘(2) PRIORITY.—In awarding grants under this
section, the Secretary shall give special consideration
to applications describing programs which—
‘‘(A) demonstrate the greatest need for
new or additional counseling services among
children in the schools served by the applicant,
in part, by providing information on current ra-
tios of students to school counselors, students
to school social workers, and students to school
psychologists;
‘‘(B) propose the most promising and inno-
vative approaches for initiating or expanding
school counseling; and
‘‘(C) show the greatest potential for rep-
lication and dissemination.
‘‘(3) EQUITABLE DISTRIBUTION.—In awarding
grants under this section, the Secretary shall ensure
an equitable geographic distribution among the re-
gions of the United States and among urban, subur-
ban, and rural local educational agencies.
‘‘(4) DURATION.—A grant under this section
shall be awarded for a period not to exceed 3 years.
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‘‘(5) MAXIMUM
GRANT.—A grant awarded
under this program shall not exceed $400,000 for
any fiscal year.
‘‘(6) SUPPLEMENT.—Assistance made available
under this section shall be used to supplement, and
may not supplant, other Federal, State, or local
funds used for providing school-based counseling and
mental health services to students.
‘‘(c) 
REQUIREMENTS
FOR
COUNSELING
PRO-
GRAMS.—Each program funded under this section shall—
‘‘(1) be comprehensive in addressing the coun-
seling and educational needs of all students;
‘‘(2) use a developmental, preventive approach
to counseling;
‘‘(3) increase the range, availability, quantity,
and quality of counseling services in the elementary
and secondary schools of the local educational agen-
cy;
‘‘(4) expand counseling services through quali-
fied school counselors, school psychologists, school
social workers, and child and adolescent psychia-
trists;
‘‘(5) use innovative approaches to increase chil-
dren’s understanding of peer and family relation-
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ships, work and self, decisionmaking, or academic
and career planning, or to improve peer interaction;
‘‘(6) provide counseling services in settings that
meet the range of needs of students;
‘‘(7) include inservice training, including train-
ing for teachers in appropriate identification and
intervention techniques for disciplining and teaching
students at risk of violent behavior, by school coun-
selors, school psychologists, school social workers,
and child and adolescent psychiatrists;
‘‘(8) involve parents of participating students in
the design, implementation, and evaluation of a
counseling program;
‘‘(9) involve community groups, social service
agencies, or other public or private entities in col-
laborative efforts to enhance the program;
‘‘(10) evaluate annually the effectiveness and
outcomes of the counseling services and activities as-
sisted under this section;
‘‘(11) ensure a team approach to school coun-
seling in the elementary and secondary schools of
the local educational agency by working toward ra-
tios recommended by the American School Health
Association of one school counselor to 250 students,
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one school social worker to 800 students, and one
school psychologist to 1,000 students; and
‘‘(12) ensure that school counselors, school psy-
chologists, school social workers, or child and adoles-
cent psychiatrists paid from funds made available
under this section spend a majority of their time at
the school in activities directly related to the coun-
seling process.
‘‘(d) LIMITATION ON ADMINISTRATIVE COSTS.—Not
more than 3 percent of the amounts made available under
this section in any fiscal year may be used for administra-
tive costs to carry out this section.
‘‘(e) DEFINITIONS.—For purposes of this section—
‘‘(1) the term ‘school counselor’ means an indi-
vidual who has documented competence in coun-
seling children and adolescents in a school setting
and who—
‘‘(A) possesses State licensure or certifi-
cation granted by an independent professional
regulatory authority;
‘‘(B) in the absence of such State licensure
or certification, possesses national certification
in school counseling or a specialty of counseling
granted by an independent professional organi-
zation; or
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‘‘(C) holds a minimum of a master’s de-
gree in school counseling from a program ac-
credited by the Council for Accreditation of
Counseling and Related Educational Programs
or the equivalent;
‘‘(2) the term ‘school psychologist’ means an in-
dividual who—
‘‘(A) possesses a minimum of 60 graduate
semester hours in school psychology from an in-
stitution of higher education and has completed
1,200 clock hours in a supervised school psy-
chology internship, of which 600 hours shall be
in the school setting;
‘‘(B) possesses State licensure or certifi-
cation in the State in which the individual
works; or
‘‘(C) in the absence of such State licensure
or certification, possesses national certification
by the National School Psychology Certification
Board;
‘‘(3) the term ‘school social worker’ means an
individual who—
‘‘(A) holds a master’s degree in social work
from a program accredited by the Council on
Social Work Education; and
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‘‘(B) is licensed or certified by the State in
which services are provided; or
‘‘(C) in the absence of such State licensure
or certification, possesses a national credential
or certification as a ‘school social work spe-
cialist’ granted by an independent professional
organization; and
‘‘(4) the term ‘child and adolescent psychiatrist’
means an individual who—
‘‘(A) possesses State medical licensure; and
‘‘(B) has completed residency training pro-
grams in general and child and adolescent psy-
chiatry.
‘‘(f) REPORT.—Not later than 1 year after assistance
is made available under this section, the Secretary shall
make publicly available the information from applicants
regarding the ratios of students to school counselors, stu-
dents to school social workers, and students to school psy-
chologists.
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to carry out this section
such sums as may be necessary for each of fiscal years
2002 through 2006.
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‘‘PART E—MENTORING PROGRAMS
‘‘SEC. 5501. DEFINITIONS.
‘‘In this part, the following definitions apply:
‘‘(1) CHILD WITH GREATEST NEED.—The term
‘child with greatest need’ means a child at risk of
educational failure, dropping out of school, or in-
volvement in criminal or delinquent activities, or
that has lack of strong positive role models.
‘‘(2) MENTOR.—The term ‘mentor’ means an
individual who works with a child to provide a posi-
tive role model for the child, to establish a sup-
portive relationship with the child, and to provide
the child with academic assistance and exposure to
new experiences and examples of opportunity that
enhance the ability of the child to become a respon-
sible adult.
‘‘(3) STATE.—The term ‘State’ means each of
the several States, the District of Columbia, the
Commonwealth of Puerto Rico, the Virgin Islands,
Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands.
‘‘SEC. 5502. PURPOSES.
‘‘The purposes of this part are to make assistance
available to promote mentoring programs for children with
greatest need—
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‘‘(1) to assist such children in receiving support
and guidance from a caring individual;
‘‘(2) to improve the academic performance of
such children;
‘‘(3) to improve interpersonal relationships be-
tween such children and their peers, teachers, other
adults, and family members;
‘‘(4) to reduce the dropout rate of such chil-
dren; and
‘‘(5) to reduce juvenile delinquency and involve-
ment in gangs by such children.
‘‘SEC. 5503. GRANT PROGRAM.
‘‘(a) IN GENERAL.—In accordance with this section,
the Secretary may make grants to eligible entities to assist
such entities in establishing and supporting mentoring
programs and activities that—
‘‘(1) are designed to link children with greatest
need (particularly such children living in rural areas,
high crime areas, or troubled home environments, or
such children experiencing educational failure) with
responsible adults or students in secondary school,
who—
‘‘(A) have received training and support in
mentoring;
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‘‘(B) have been screened using appropriate
reference checks, child and domestic abuse
record checks, and criminal background checks;
and
‘‘(C) are interested in working with youth;
and
‘‘(2) are intended to achieve one or more of the
following goals:
‘‘(A) Provide general guidance to children
with greatest need.
‘‘(B) Promote personal and social responsi-
bility among children with greatest need.
‘‘(C) Increase participation by children
with greatest need in, and enhance their ability
to benefit from, elementary and secondary edu-
cation.
‘‘(D) Discourage illegal use of drugs and
alcohol, violence, use of dangerous weapons,
promiscuous behavior, and other criminal,
harmful, or potentially harmful activity by chil-
dren with greatest need.
‘‘(E) Encourage children with greatest
need to participate in community service and
community activities.
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‘‘(F) Encourage children with greatest
need to set goals for themselves or to plan for
their futures, including encouraging such chil-
dren to make graduation from secondary school
a goal and to make plans for postsecondary
education or training.
‘‘(G) Discourage involvement of children
with greatest need in gangs.
‘‘(b) ELIGIBLE ENTITIES.—Each of the following is
an entity eligible to receive a grant under subsection (a):
‘‘(1) A local educational agency.
‘‘(2) A nonprofit, community-based organiza-
tion.
‘‘(3) A partnership between an agency referred
to in paragraph (1) and an organization referred to
in paragraph (2).
‘‘(c) USE OF FUNDS.—
‘‘(1) IN
GENERAL.—Each entity receiving a
grant under this section shall use the grant funds
for activities that establish or implement a men-
toring program, including—
‘‘(A) hiring of mentoring coordinators and
support staff;
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‘‘(B) providing for the professional devel-
opment of mentoring coordinators and support
staff;
‘‘(C) recruitment, screening, and training
of mentors;
‘‘(D) reimbursement of schools, if appro-
priate, for the use of school materials or sup-
plies in carrying out the program;
‘‘(E) dissemination of outreach materials;
‘‘(F) evaluation of the program using sci-
entifically based methods; and
‘‘(G) such other activities as the Secretary
may reasonably prescribe by rule.
‘‘(2) 
PROHIBITED
USES.—Notwithstanding
paragraph (1), an entity receiving a grant under this
section may not use the grant funds—
‘‘(A) to directly compensate mentors;
‘‘(B) to obtain educational or other mate-
rials or equipment that would otherwise be used
in the ordinary course of the entity’s oper-
ations;
‘‘(C) to support litigation of any kind; or
‘‘(D) for any other purpose reasonably pro-
hibited by the Secretary by rule.
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‘‘(d) TERM OF GRANT.—Each grant made under this
section shall be available for expenditure for a period of
3 years.
‘‘(e) APPLICATION.—Each eligible entity seeking a
grant under this section shall submit to the Secretary an
application that includes—
‘‘(1) a description of the mentoring plan the ap-
plicant proposes to carry out with such grant;
‘‘(2) information on the children expected to be
served by the mentoring program for which such
grant is sought;
‘‘(3) a description of the mechanism that appli-
cant will use to match children with mentors based
on the needs of the children;
‘‘(4) an assurance that no mentor will be as-
signed to mentor so many children that the assign-
ment would undermine either the mentor’s ability to
be an effective mentor or the mentor’s ability to es-
tablish a close relationship (a one-on-one relation-
ship, where practicable) with each mentored child;
‘‘(5) an assurance that mentoring programs will
provide children with a variety of experiences and
support, including—
‘‘(A) emotional support;
‘‘(B) academic assistance; and
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‘‘(C) exposure to experiences that children
might not otherwise encounter on their own;
‘‘(6) an assurance that mentoring programs will
be monitored to ensure that each child assigned a
mentor benefits from that assignment and that there
will be a provision for the assignment of a new men-
tor if the relationship between the original mentor is
not beneficial to the child;
‘‘(7) information on the method by which men-
tors and children will be recruited to the mentor pro-
gram;
‘‘(8) information on the method by which pro-
spective mentors will be screened;
‘‘(9) information on the training that will be
provided to mentors; and
‘‘(10) information on the system that the appli-
cant will use to manage and monitor information re-
lating to the program’s reference checks, child and
domestic abuse record checks, and criminal back-
ground checks and to its procedure for matching
children with mentors.
‘‘(f) SELECTION.—
‘‘(1) COMPETITIVE BASIS.—In accordance with
this subsection, the Secretary shall select grant re-
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cipients from among qualified applicants on a com-
petitive basis.
‘‘(2) PRIORITY.—In selecting grant recipients
under paragraph (1), the Secretary shall give pri-
ority to each applicant that—
‘‘(A) serves children with greatest need liv-
ing in rural areas, high crime areas, or troubled
home environments, or who attend schools with
violence problems;
‘‘(B) provides background screening of
mentors, training of mentors, and technical as-
sistance in carrying out mentoring programs;
‘‘(C) proposes a mentoring program under
which each mentor will be assigned to not more
children than the mentor can serve effectively;
or
‘‘(D) proposes a school-based mentoring
program.
‘‘(3) OTHER
CONSIDERATIONS.—In selecting
grant recipients under paragraph (1), the Secretary
shall also consider—
‘‘(A) the degree to which the location of
the programs proposed by each applicant con-
tributes to a fair distribution of programs with
respect to urban and rural locations;
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‘‘(B) the quality of the mentoring pro-
grams proposed by each applicant, including—
‘‘(i) the resources, if any, the appli-
cant will dedicate to providing children
with opportunities for job training or post-
secondary education;
‘‘(ii) the degree to which parents,
teachers, community-based organizations,
and the local community have participated,
or will participate, in the design and imple-
mentation of the applicant’s mentoring
program;
‘‘(iii) the degree to which the appli-
cant can ensure that mentors will develop
longstanding relationships with the chil-
dren they mentor;
‘‘(iv) the degree to which the appli-
cant will serve children with greatest need
in the 4th, 5th, 6th, 7th, and 8th grades;
and
‘‘(v) the degree to which the program
will continue to serve children from the 4th
grade through graduation from secondary
school; and
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‘‘(C) the capability of each applicant to ef-
fectively implement its mentoring program.
‘‘(4) GRANT TO EACH STATE.—Notwithstanding
any other provision of this subsection, in selecting
grant recipients under paragraph (1), the Secretary
shall select not less than 1 grant recipient from each
State for which there is a qualified applicant.
‘‘(g) MODEL SCREENING GUIDELINES.—
‘‘(1) IN GENERAL.—Based on model screening
guidelines developed by the Office of Juvenile Pro-
grams of the Department of Justice, the Secretary
shall develop and distribute to program participants
specific model guidelines for the screening of men-
tors who seek to participate in programs to be as-
sisted under this part.
‘‘(2) BACKGROUND
CHECKS.—The guidelines
developed under this subsection shall include, at a
minimum, a requirement that potential mentors be
subject to reference checks, child and domestic abuse
record checks, and criminal background checks.
‘‘SEC. 5504. STUDY BY GENERAL ACCOUNTING OFFICE.
‘‘(a) IN GENERAL.—The Comptroller General of the
United States shall conduct a study to identify successful
school-based mentoring programs, and the elements, poli-
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cies, or procedures of such programs that can be rep-
licated.
‘‘(b) REPORT.—Not later than 3 years after the date
of enactment of the Mentoring for Success Act, the Comp-
troller General shall submit a report to the Secretary and
Congress containing the results of the study conducted
under this section.
‘‘(c) USE OF INFORMATION.—The Secretary shall use
information contained in the report referred to in sub-
section (b)—
‘‘(1) to improve the quality of existing men-
toring programs assisted under this part and other
mentoring programs assisted under this Act; and
‘‘(2) to develop models for new programs to be
assisted or carried out under this Act.
‘‘SEC. 5505. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
section 5503 $50,000,000 for fiscal year 2002 and such
sums as may be necessary for each of fiscal years 2003
through 2006.’’.
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TITLE VI—IMPACT AID
PROGRAM
SEC. 601. PAYMENTS UNDER SECTION 8002 WITH RESPECT
TO FISCAL YEARS IN WHICH INSUFFICIENT
FUNDS ARE APPROPRIATED.
(a) FOUNDATION PAYMENTS FOR PRE-1995 RECIPI-
ENTS.—Section 8002(h)(1) (20 U.S.C. 7702(h)(1)) is
amended—
(1) in subparagraph (A), by striking ‘‘and was
eligible to receive a payment under section 2 of the
Act of September 30, 1950’’ and inserting ‘‘and that
filed, or has been determined pursuant to statute to
have filed a timely application, and met, or has been
determined pursuant to statute to meet, the eligi-
bility requirements of section 2(a)(1)(C) of the Act
of September 30, 1950’’; and
(2) in subparagraph (B), by striking ‘‘(or if the
local educational agency was not eligible to receive a
payment under such section 2 for fiscal year 1994’’
and inserting ‘‘(or if the local educational agency did
not meet, or has not been determined pursuant to
statute to meet, the eligibility requirements of sec-
tion 2(a)(1)(C) of the Act of September 30, 1950
for fiscal year 1994’’.
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(b) PAYMENTS
FOR
1995 RECIPIENTS.—Section
8002(h)(2) (20 U.S.C. 7702(h)(2)) is amended—
(1) in subparagraph (A), by adding at the end
before the period ‘‘, or whose application for fiscal
year 1995 was determined pursuant to statute to be
timely filed for purposes of payments for subsequent
fiscal years’’; and
(2) in subparagraph (B)(ii), by striking ‘‘for
each local educational agency that received a pay-
ment under this section for fiscal year 1995’’ and in-
serting ‘‘for each local educational agency described
in subparagraph (A)’’.
(c) REMAINING FUNDS.—Section 8002(h)(4)(B) (20
U.S.C. 7702(h)(4)(B)) is amended—
(1) by striking ‘‘(in the same manner as per-
centage shares are determined for local educational
agencies under paragraph (2)(B)(ii))’’ and inserting
‘‘(by dividing the maximum amount that the agency
is eligible to receive under subsection (b) by the total
of the maximum amounts for all such agencies)’’;
and
(2) by striking ‘‘, except that for the purpose of
calculating a local educational agency’s assessed
value of the Federal property’’ and inserting ‘‘, ex-
cept that, for purposes of calculating a local edu-
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gency grant or modernization grant award-
ed under this subsection for—
‘‘(I) a project for a school facility
for which the agency does not have
full title or other interest; or
‘‘(II) stadiums or other facilities
primarily used for athletic contests,
exhibitions, or other events for which
admission is charged to the general
public.
‘‘(iii) SUPPLEMENT NOT SUPPLANT.—
A local educational agency shall use funds
provided under an emergency grant or
modernization grant awarded under this
subsection only to supplement the amount
of funds that would, in the absence of the
Federal funds provided under the grant, be
made available from non-Federal sources
to carry out emergency repairs of school
facilities or to carry out the modernization
of school facilities, as the case may be, and
not to supplant such funds.
‘‘(B) EMERGENCY GRANTS.—
‘‘(i) 
PROHIBITION
ON
USE
OF
FUNDS.—A local educational agency that is