778
‘‘(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
779
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
780
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.
781
‘‘(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;
782
‘‘(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
783
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-
784
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;
785
‘‘(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-
786
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.
787
‘‘(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
788
‘‘(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
789
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
790
‘‘(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;
791
‘‘(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
792
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
793
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.
794
‘‘(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.
795
‘‘(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.
796
‘‘(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
797
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.
798
‘‘(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
799
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
800
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
801
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
802
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.
803
‘‘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-
804
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-
805
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-
806
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
807
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
808
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.
809
‘‘(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—
810
‘‘(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
811
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
812
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
813
‘‘(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.
814
‘‘(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-
815
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-
816
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
817
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.).
818
‘‘(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-
819
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.
820
‘‘(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.
821
‘‘(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.
822
‘‘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-
823
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.
824
‘‘(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-
825
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-
826
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.
827
‘‘(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
828
‘‘(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
829
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-
830
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).
831
‘‘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;
832
‘‘(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
833
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
834
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
835
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;
836
‘‘(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
837
‘‘(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
838
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-
839
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,
840
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.
841
‘‘(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
842
‘‘(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.
843
‘‘(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.
844
‘‘(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-
845
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
846
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.
847
‘‘(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
848
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
849
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.
850
‘‘(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-
851
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,
852
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
853
‘‘(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
854
‘‘(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.
855
‘‘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—
856
‘‘(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;
857
‘‘(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.
858
‘‘(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;
859
‘‘(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.
860
‘‘(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
861
‘‘(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-
862
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;
863
‘‘(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
864
‘‘(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-
865
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.’’.
866
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’’.
867
(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-
868
cational agency’s maximum amount under sub-
section (b)’’.
(d) APPLICATION FOR PAYMENT.—Notwithstanding
any other provision of law, the Secretary shall treat as
timely filed an application under section 8002 (20 U.S.C.
7702) from Academy School District 20, Colorado, for a
payment for fiscal year 1999, and shall process that appli-
cation from funds appropriated for that section for fiscal
year 2001.
SEC. 602. CALCULATION OF PAYMENT UNDER SECTION 8003
FOR SMALL LOCAL EDUCATIONAL AGENCIES.
Section 
8003(b)(3)(B)(iv) 
(20 
U.S.C.
7703(b)(3)(B)(iv)) is amended by inserting after ‘‘of the
State in which the agency is located’’ the following: ‘‘or
less than the average per pupil expenditure of all the
States’’.
SEC. 603. ELIGIBILITY UNDER SECTION 8003 FOR CERTAIN
HEAVILY IMPACTED LOCAL EDUCATIONAL
AGENCIES.
(a) ELIGIBILITY.—Section 8003(b)(2)(C) (20 U.S.C.
7703(b)(2)(C)) is amended—
(1) in clauses (i) and (ii) by inserting after
‘‘Federal military installation’’ each place it appears
the following: ‘‘(or if the agency is a qualified local
educational agency as described in clause (iv))’’; and
869
(2) by adding at the end the following:
‘‘(iv) 
QUALIFIED
LOCAL
EDU-
CATIONAL AGENCY.—A qualified local edu-
cational agency described in this clause is
an agency that meets the following require-
ments:
‘‘(I) The boundaries of the agen-
cy are the same as island property
designated by the Secretary of the In-
terior to be property that is held in
trust by the Federal Government.
‘‘(II) The agency has no taxing
authority.
‘‘(III) The agency received a pay-
ment under paragraph (1) for fiscal
year 2001.’’.
(b) EFFECTIVE DATE.—The Secretary shall consider
an application for a payment under section 8003(b)(2) for
fiscal year 2002 from a qualified local educational agency
described in section 8003(b)(2)(C)(iv), as added by sub-
section (a), as meeting the requirements of section
8003(b)(2)(C)(iii), and shall provide a payment under sec-
tion 8003(b)(2) for fiscal year 2002, if the agency submits
to the Secretary an application for payment under such
870
section not later than 60 days after the date of the enact-
ment of this Act.
SEC. 604. CONSTRUCTION.
(a) SCHOOL
FACILITY
EMERGENCY
AND
MOD-
ERNIZATION
GRANTS.—Section 8007(b) (20 U.S.C.
7707(b)) is amended to read as follows:
‘‘(b) SCHOOL FACILITY EMERGENCY
AND MOD-
ERNIZATION GRANTS AUTHORIZED.—
‘‘(1) IN GENERAL.—From 60 percent of the
amount appropriated for each fiscal year under sec-
tion 8014(e), the Secretary—
‘‘(A) shall award emergency grants in ac-
cordance with this subsection to eligible local
educational agencies to enable the agencies to
carry out emergency repairs of school facilities;
and
‘‘(B) shall award modernization grants in
accordance with this subsection to eligible local
educational agencies to enable the agencies to
carry out the modernization of school facilities.
‘‘(2) 
PRIORITY.—In 
approving 
applications
from local educational agencies for emergency grants
and modernization grants under this subsection, the
Secretary shall give priority to applications for emer-
gency grants and, among such applications for emer-
871
gency grants, shall give priority to those applications
of local educational agencies based on the severity of
the emergency.
‘‘(3) ELIGIBILITY REQUIREMENTS.—
‘‘(A) EMERGENCY GRANTS.—A local edu-
cational agency is eligible to receive an emer-
gency grant under this subsection only if—
‘‘(i) the agency (or in the case of a
local educational agency that does not have
the authority to tax or issue bonds, the
agency’s fiscal agent)—
‘‘(I) has no practical capacity to
issue bonds;
‘‘(II) has minimal capacity to
issue bonds and is at 75 percent of
the agency’s limit of bonded indebted-
ness; or
‘‘(III) does not meet the require-
ments of subclauses (I) and (II) but is
eligible to receive funds under section
8003(b)(2) for the fiscal year; and
‘‘(ii) the agency is eligible to receive
assistance under subsection (a) for the fis-
cal year and has a school facility emer-
gency, as determined by the Secretary,
872
that poses a health or safety hazard to the
students and school personnel assigned to
the school facility.
‘‘(B) MODERNIZATION
GRANTS.—A local
educational agency is eligible to receive a mod-
ernization grant under this subsection only if—
‘‘(i) the agency (or in the case of a
local educational agency that does not have
the authority to tax or issue bonds, the
agency’s fiscal agent) meets the require-
ments of subclause (I), (II), or (III) of
subparagraph (A)(i);
‘‘(ii) the agency is eligible to receive
assistance under section 8002 for the fiscal
year and has an assessed value of real
property per student that may be taxed for
school purposes that is less than the aver-
age of the assessed value of real property
per student that may be taxed for school
purposes in the State in which the local
educational agency is located; and
‘‘(iii) the agency has facility needs re-
sulting from actions of the Federal Gov-
ernment, such as enrollment increases due
to the expansion of Federal activities,
873
housing privatization, or the acquisition of
Federal property.
‘‘(C) RULE OF CONSTRUCTION.—For pur-
poses of subparagraph (A)(i), a local edu-
cational agency—
‘‘(i) has no practical capacity to issue
bonds if the total assessed value of real
property that may be taxed for school pur-
poses is less than $25,000,000; and
‘‘(ii) has minimal capacity to issue
bonds if the total assessed value of real
property that may be taxed for school pur-
poses is not less than $25,000,000 but not
more than $50,000,000.
‘‘(4) AWARD
CRITERIA.—In awarding emer-
gency grants and modernization grants under this
subsection, the Secretary shall consider the following
factors:
‘‘(A) The ability of the local educational
agency to respond to the emergency, or to pay
for the modernization project, as the case may
be, as measured by—
‘‘(i) the agency’s level of bonded in-
debtedness;
874
‘‘(ii) the assessed value of real prop-
erty per student that may be taxed for
school purposes compared to the average of
the assessed value of real property per stu-
dent that may be taxed for school purposes
in the State in which the agency is located;
‘‘(iii) the agency’s total tax rate for
school purposes (or, if applicable, for cap-
ital expenditures) compared to the average
total tax rate for school purposes (or the
average capital expenditure tax rate, if ap-
plicable) in the State in which the agency
is located; and
‘‘(iv) funds that are available to the
agency, from any other source, including
section 8007(a), that may be used for cap-
ital expenditures.
‘‘(B) The percentage of property in the
agency that is nontaxable due to the presence
of the Federal Government.
‘‘(C) The number and percentages of chil-
dren described in subparagraphs (A), (B), (C),
and (D) of section 8003(a)(1) served in the
school facility with the emergency or served in
875
the school facility proposed for modernization,
as the case may be.
‘‘(D) In the case of an emergency grant,
the severity of the emergency, as measured by
the threat that the condition of the school facil-
ity poses to the health, safety, and well-being of
students.
‘‘(E) In the case of a modernization
grant—
‘‘(i) the severity of the need for mod-
ernization, as measured by such factors
as—
‘‘(I) overcrowding, as evidenced
by the use of portable classrooms; or
‘‘(II) the agency’s inability to
maximize the use of technology or
offer a curriculum in accordance with
contemporary State standards due to
the physical limitations of the current
school facility; and
‘‘(ii) the age of the school facility pro-
posed for modernization.
‘‘(5) OTHER AWARD PROVISIONS.—
‘‘(A) GENERAL PROVISIONS.—
876
‘‘(i) LIMITATIONS
ON
AMOUNT
OF
FUNDS.—
‘‘(I) IN GENERAL.—The amount
of funds provided under an emergency
grant 
or 
a 
modernization 
grant
awarded under this subsection to a
local educational agency that meets
the requirements of subclause (II) or
(III) of paragraph (3)(A)(i)—
‘‘(aa) shall not exceed 50
percent of the total cost of the
project to be assisted under this
subsection; and
‘‘(bb) 
shall 
not 
exceed
$3,000,000 during any 5-year pe-
riod.
‘‘(II) IN-KIND CONTRIBUTIONS.—
A local educational agency may use
in-kind contributions to meet the
matching requirement of subclause
(I)(aa).
‘‘(ii) 
PROHIBITIONS
ON
USE
OF
FUNDS.—A local educational agency may
not use funds provided under an emer-
877
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
878
awarded an emergency grant under this
subsection may not use amounts under the
grant for the complete or partial replace-
ment of an existing school facility unless
such replacement is less expensive or more
cost-effective to correct the identified emer-
gency.
‘‘(ii) CARRY-OVER OF CERTAIN APPLI-
CATIONS.—In the case of a local edu-
cational agency that applies for an emer-
gency grant under this subsection for a fis-
cal year and does not receive the grant for
the fiscal year, the Secretary—
‘‘(I) shall, upon the request of
the agency, treat the application as an
application for an emergency grant
under this subsection for the subse-
quent fiscal year in accordance with
the priority requirements of para-
graph (2); and
‘‘(II) shall allow the agency to
amend or otherwise update the appli-
cation, as appropriate.
‘‘(6) APPLICATION.—A local educational agency
that desires to receive an emergency grant or a mod-
879
ernization grant under this subsection shall submit
an application to the Secretary at such time, in such
manner, and accompanied by such information as
the Secretary may require. Each application shall
contain the following:
‘‘(A) The information described in clauses
(i) through (iv) of paragraph (4)(A) and sub-
paragraphs (B) and (C) of paragraph (4).
‘‘(B) In the case of an application for an
emergency grant—
‘‘(i) a description of the school facility
deficiency that poses a health or safety
hazard to the occupants of the facility and
a description of how the deficiency will be
repaired; and
‘‘(ii) a signed statement from an ap-
propriate local official certifying that a de-
ficiency in the school facility threatens the
health or safety of the occupants of the fa-
cility or that prevents the use of all or a
portion of the building.
‘‘(C) In the case of an application for a
modernization grant—
‘‘(i) an explanation of the need for the
school facility modernization project; and
880
‘‘(ii) the date on which original con-
struction of the facility to be modernized
was completed.
‘‘(D) A description of the project for which
a grant under this subsection would be used, in-
cluding a cost estimate for the project.
‘‘(E) A description of the interest in, or
authority over, the school facility involved, such
as an ownership interest or a lease arrange-
ment.
‘‘(F) Such other information and assur-
ances as the Secretary may reasonably require.
‘‘(7) REPORT.—
‘‘(A) IN GENERAL.—Not later than Janu-
ary 1 of each year, the Secretary shall prepare
and submit to the appropriate congressional
committees a report that contains a justifica-
tion for each grant awarded under this sub-
section for the prior fiscal year.
‘‘(B) DEFINITION.—In this paragraph, the
term ‘appropriate congressional committees’
means—
‘‘(i) the Committee on Appropriations
and the Committee on Education and the
881
Workforce of the House of Representa-
tives; and
‘‘(ii) the Committee on Appropriations
and the Committee on Health, Education,
Labor and Pensions of the Senate.’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section
8014(e) (20 U.S.C. 7714(e)) is amended by striking ‘‘for
each of the three succeeding fiscal years’’ and inserting
‘‘for fiscal year 2001, $150,000,000 for fiscal year 2002,
and such sums as may be necessary for each of the four
succeeding fiscal years’’.
SEC. 605. STATE CONSIDERATION OF PAYMENTS IN PRO-
VIDING STATE AID.
Section 8009(b)(1) (20 U.S.C. 7709(b)(1)) is amend-
ed by inserting after ‘‘section 8003(a)(2)(B)’’ the fol-
lowing: ‘‘and, with respect to a local educational agency
that receives a payment under section 8003(b)(2), the
amount in excess of the amount that the agency would
receive if the agency were deemed to be an agency eligible
to receive a payment under section 8003(b)(1) and not
section 8003(b)(2)’’.
SEC. 606. AUTHORIZATION OF APPROPRIATIONS.
Section 8014 (20 U.S.C. 7714) is amended by strik-
ing ‘‘three succeeding fiscal years’’ each place it appears
and inserting ‘‘six succeeding fiscal years’’.
882
SEC. 607. REPEAL OF EXISTING TITLE VI; TRANSFER AND
REDESIGNATION OF PROGRAM.
(a) REPEAL OF EXISTING TITLE VI.—Title VI (20
U.S.C. 7301 et seq.) is repealed.
(b) TRANSFER AND REDESIGNATION OF PROGRAM.—
(1) Title VIII (20 U.S.C. 7701 et seq.)—
(A) is transferred from the current placement
of the title and inserted after title V; and
(B) is redesignated as title VI.
(2) Title VI (as redesignated by paragraph (1)(B))
is amended—
(A) by redesignating sections 8001 through
8005 (20 U.S.C. 7701–7705) as sections 6001
through 6005, respectively; and
(B) by redesignating sections 8007 through
8014 (20 U.S.C. 7707–7714) as sections 6006
through 6013, respectively.
(c) CONFORMING AMENDMENTS.—(1) Title VI (as
redesignated by subsection (b)) is amended by striking
‘‘8002’’, ‘‘8003’’, ‘‘8004’’, ‘‘8005’’, ‘‘8008’’, ‘‘8009’’,
‘‘8011’’, ‘‘8013’’, and ‘‘8014’’ each place such terms ap-
pear and inserting ‘‘6002’’, ‘‘6003’’, ‘‘6004’’, ‘‘6005’’,
‘‘6007’’, ‘‘6008’’, ‘‘6010’’, ‘‘6012’’, and ‘‘6013’’, respec-
tively.
883
(2) Section 6005 (as redesignated by subsection (b))
is amended in the heading by striking ‘‘8002 AND 8003’’
and inserting ‘‘6002 AND 6003’’.
(3) Section 6009(c)(1) (as redesignated by subsection
(b)) is amended in the heading by striking ‘‘8003’’ and in-
serting ‘‘6003’’.
(d) SAVINGS PROVISION.—Funds appropriated for
title VIII of the Elementary and Secondary Education Act
of 1965 (as in effect on the day before the date of the
enactment of this Act) shall be available for use under title
VI of such Act, as added by this section.
SEC. 608. SENSE OF CONGRESS RELATING TO FULL FUND-
ING OF THE IMPACT AID PROGRAM.
(a) FINDINGS.—Congress finds the following:
(1) More than 90 percent of resources for
school districts in the United States are raised from
State and local property taxes.
(2) School districts that are affected by the
presence of the Federal Government, such as Fed-
eral property that is not subject to taxation, must
still provide educational services to children who are
federally connected by such activities of the Federal
Government.
(3) To mitigate this loss of funding, Congress
has made ‘‘impact aid’’ payments to local edu-
884
cational agencies to reimburse the agencies for the
costs of educating federally connected children.
(4) From 1950 to 1969, Congress provided full
funding for the impact aid program to help defray
the costs of educating federally connected children.
(5) For fiscal year 2000, Congress provided
only 46 percent of the costs of educating federally
connected children.
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that—
(1) the House of Representatives, the Senate,
and the Administration should work together to pro-
vide full funding for the impact aid program in fu-
ture fiscal years in order to meet the needs of school
districts affected by a Federal presence; and
(2) the full funding of the impact aid program
will ensure that federally connected children will con-
tinue to receive a quality education.
TITLE VII—ACCOUNTABILITY
SEC. 701. FLEXIBILITY AND ACCOUNTABILITY.
Title VII is amended to read as follows:
885
‘‘TITLE VII—FLEXIBILITY AND
ACCOUNTABILITY
‘‘PART A—STATE ACCOUNTABILITY FOR
IMPROVING ACADEMIC ACHIEVEMENT
‘‘SEC. 7101. STATE FINANCIAL AWARDS.
‘‘(a) IN GENERAL.—Beginning in the 2002–2003
school year, the Secretary shall make in accordance with
this section financial awards, to be known as ‘Achievement
in Education Awards’, to States that have made signifi-
cant progress in improving educational achievement.
‘‘(b) CRITERIA OF PROGRESS.—For the purposes of
subsection (a), the Secretary shall judge progress using
each of the following criteria, giving the greatest weight
to the criterion described in paragraph (1):
‘‘(1) The progress of the State’s students from
economically disadvantaged families and students
from racial and ethnic minority groups—
‘‘(A) on the assessments administered by
the State under section 1111; and
‘‘(B) beginning in the 2003–2004 school
year, on assessments of 4th and 8th grade
reading and mathematics under—
‘‘(i) the State assessments carried out
as part of the National Assessment of
Educational Progress under section 411 of
886
the National Education Statistics Act of
1994 (20 U.S.C. 9010); or
‘‘(ii) an assessment selected by the
State that—
‘‘(I) is administered annually;
‘‘(II) yields high quality data
that are valid and reliable;
‘‘(III) meets widely recognized
professional and technical standards,
including specific and rigorous test se-
curity procedures;
‘‘(IV) is developed by an entity
independent from each State and local
government agency in the State in a
manner that protects against any con-
flict of interest;
‘‘(V) has no test questions that
are identical to the test questions used
by the assessment used to meet the
State assessment requirements under
section 1111;
‘‘(VI) provides results in such a
form that they may be expressed in
terms of achievement levels that are
consistent with the achievement levels
887
(basic, proficient, and advanced) set
forth in section 1111;
‘‘(VII) provides results in such a
form that they may be disaggregated,
at a minimum, according to income
level and major racial and ethnic
group; and
‘‘(VIII) is administered to all stu-
dents or to a representative sample of
students in the 4th and 8th grades
statewide, with a sample size that is
sufficiently large to produce statis-
tically significant estimates of state-
wide student achievement.
‘‘(2) The overall improvement in the achieve-
ment of all of the State’s students, as measured
by—
‘‘(A) the assessments administered by the
State under section 1111; and
‘‘(B) beginning in the 2003–2004 school
year, the assessments described in paragraph
(1)(B).
‘‘(3) The progress of the State in improving the
English proficiency of students who enter school
with limited English proficiency.
888
‘‘(c) OTHER CONSIDERATIONS.—In judging a State’s
progress under subsection (a), the Secretary may also
consider—
‘‘(1) the progress of the State in increasing the
percentage of students who graduate from secondary
schools; and
‘‘(2) the progress of the State in increasing the
percentage 
of 
students 
who 
take 
advanced
coursework (such as Advanced Placement or Inter-
national Baccalaureate courses) and who pass the
exams associated with such coursework.
‘‘(d) AMOUNT.—The Secretary shall determine the
amount of an award under subsection (a) based on—
‘‘(1) the school-age population of the State; and
‘‘(2) the degree of progress shown by a State
with respect to the criteria set forth in subsections
(b) and (c).
‘‘(e) USE OF FUNDS.—
‘‘(1) IN GENERAL.—A State receiving a finan-
cial award under this section shall use the proceeds
of such award only to make financial awards to pub-
lic elementary and secondary schools in the State
that have made the most significant progress with
respect to the criteria described in subsection (b).
889
‘‘(2) USE BY SCHOOLS.—In consultation with
the school’s teachers, the principal of each elemen-
tary or secondary school that receives a financial
award from a State under this section shall use the
proceeds of such award at the school for any edu-
cational purpose permitted under State law.
‘‘(3) RESPONSIBLE STATE AGENCY.—The State
educational agency for each State shall be the agen-
cy responsible for making awards under this sub-
section.
‘‘(f) PEER REVIEW.—In selecting States for awards
under subsection (a), the Secretary shall use a peer-review
process.
‘‘(g) COSTS OF INDEPENDENT ASSESSMENTS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
the Secretary shall make grants to States to offset
the costs of administering assessments administered
by the States to meet the requirements of
(b)(1)(B)(ii).
‘‘(2) LIMITATIONS.—Grants made by the Sec-
retary in any year to a State under paragraph (1)—
‘‘(A) may be awarded only to offset the
costs of a single administration of an assess-
ment described in such paragraph in the State
for that year; and
890
‘‘(B) may not exceed the costs of admin-
istering in the State for that year the State as-
sessments that would be carried out under the
National Assessment of Educational Progress
described in subsection (b)(1)(B).
‘‘(3) ALLOCATION.—The Secretary may deter-
mine the appropriate methodology of allocating
grants to States under this subsection.
‘‘SEC. 7102. STATE SANCTIONS.
‘‘(a) FAILURE TO MAKE PROGRESS.—
‘‘(1) LOSS OF ADMINISTRATIVE FUNDS.—The
Secretary shall reduce, by 30 percent, the amount of
funding that a State may reserve for State adminis-
tration under the State formula grant programs au-
thorized by this Act if the Secretary determines that,
for 2 consecutive years—
‘‘(A) the State’s students from economi-
cally disadvantaged families and students from
racial and ethnic minority groups failed to
make adequate yearly progress on the assess-
ments administered by the State under section
1111; and
‘‘(B) the State’s students from economi-
cally disadvantaged families and students from
racial and ethnic minority groups failed to
891
make measurable progress in reading and
mathematics, as measured by the 4th and 8th
grade assessments described in subsection
(b)(1)(B).
‘‘(2) FURTHER REDUCTIONS.—In each of the first 2
years after the years described in paragraph (1), the Sec-
retary may increase the reduction described in such para-
graph by any amount not more than a total of an addi-
tional 45 percent.
‘‘(b) OTHER FAILURES.—In addition to any action
taken under subsection (a)(1) or (a)(2), the Secretary
shall reduce, by 20 percent, the amount of funding that
a State may reserve for State administration under the
State formula grant programs authorized by this Act if
the Secretary determines that, for 2 consecutive years, the
State failed to make adequate yearly progress—
‘‘(1) with respect to the achievement of children
with limited English proficiency under section
1111(b)(2)(C)(iii)(II)(dd); or
‘‘(2) with respect to the acquisition of English
language proficiency by children with limited
English 
proficiency 
under 
section
1111(b)(2)(C)(iii)(III).
‘‘(c) USE OF FUNDS FOR IMPROVEMENT.—
892
‘‘(1) IN GENERAL.—The Secretary shall require
that any funds reduced under this section be allo-
cated by the State to local educational agencies in
the State for school improvement purposes described
in section 1116.
‘‘(2) TREATMENT OF FUNDS.—Funds described
in paragraph (1) shall not count toward the amounts
that are required to be reserved by a State for
school improvement under section 1003.
‘‘SEC. 7103. DEVELOPMENT OF STATE STANDARDS AND AS-
SESSMENTS.
‘‘(a) IN GENERAL.—The Secretary shall make finan-
cial awards to States to enable the States—
‘‘(1) to pay the costs of the development of the
additional State assessments and standards required
by section 1111(b), including the costs of working in
voluntary partnerships with other States, at the sole
discretion of each such State, in developing such as-
sessments and standards if a State chooses to do so;
and
‘‘(2) if a State has developed the assessments
and standards referred to in paragraph (1), to ad-
minister such assessments or to carry out other ac-
tivities described in this title and other activities re-
lated to ensuring accountability for results in the
893
State’s schools and local educational agencies, such
as—
‘‘(A) developing academic content and
achievement standards and aligned assessments
in other subjects not required by section 1111;
‘‘(B) developing assessments of English
language proficiency necessary to comply with
section 1111(b)(7);
‘‘(C) assuring the continued validity and
reliability of State assessments;
‘‘(D) refining State assessments to ensure
their continued alignment with the State’s aca-
demic content standards and to improve the
alignment of curricula and instruction mate-
rials;
‘‘(E) providing for multiple measures to in-
crease the reliability and validity of student and
school classifications;
‘‘(F) strengthening the capacity of local
educational agencies and schools to provide all
students the opportunity to increase educational
achievement;
‘‘(G) expanding the range of accommoda-
tions available to students with limited English
proficiency and students with disabilities to im-
894
prove the rates of inclusion of such students;
and
‘‘(H) improving the dissemination of infor-
mation on student achievement and school per-
formance to parents and the community.
‘‘(b) BONUSES.—The Secretary shall make a one-
time bonus payment to each State that completes the de-
velopment of the assessments described in subsection (a)
ahead of the deadline set forth in section 1111.
‘‘SEC. 7104. FUNDING.
‘‘(a) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) AWARDS AND BONUS PAYMENTS.—For the
purposes of making awards under section 7101 and
bonus payments under section 7103(b), there are
authorized to be appropriated $40,000,000 for fiscal
year 2002 and such sums as may be necessary for
each of fiscal years 2003 through 2006.
‘‘(2) GRANTS
FOR
INDEPENDENT
ASSESS-
MENTS; ADMINISTRATION OF STATE ASSESSMENTS
UNDER NAEP.—For the purposes of making grants
to offset the costs of independent assessments under
section 7101(g) and for the purposes of admin-
istering the State assessments carried out under the
National Assessment of Educational Progress re-
ferred to in section 7101(b)(1)(B)(i), there are au-
895
thorized to be appropriated to the Secretary
$69,000,000 for fiscal year 2002 and such sums as
may be necessary for each of fiscal years 2003
through 2006.
‘‘(3) DEVELOPMENT AND ADMINISTRATION OF
STATE
STANDARDS
AND
ASSESSMENTS.—For the
purposes of carrying out subsection 7103(a), there
are authorized to be appropriated $400,000,000 for
fiscal year 2002 and such sums as may be necessary
for each of the fiscal years 2003 through 2005.
‘‘(b) ALLOCATION
OF
APPROPRIATED
FUNDS.—
From each of the amounts appropriated under subsection
(a), the Secretary shall allocate to the States—
‘‘(1) 50 percent based on the relative number of
children aged 5 to 17 in each State; and
‘‘(2) 50 percent allocated equally among the
States.
‘‘PART B—FUNDING FLEXIBILITY FOR STATE AND
LOCAL EDUCATIONAL AGENCIES
‘‘SEC. 7201. SHORT TITLE.
‘‘This part may be cited as the ‘State and Local
Transferability Act’.
‘‘SEC. 7202. PURPOSE.
‘‘The purpose of this part is to allow States and local
educational agencies the flexibility—
896
‘‘(1) to target Federal funds to Federal pro-
grams that most effectively address the unique needs
of States and localities; and
‘‘(2) to transfer Federal funds allocated to
other activities to allocations for activities authorized
under title I programs.
‘‘SEC. 7203. TRANSFERABILITY OF FUNDS.
‘‘(a) TRANSFERS BY STATES.—
‘‘(1) IN
GENERAL.—In accordance with this
part, a State may transfer up 50 percent of the non-
administrative State funds allocated to the State for
use for State-level activities under each of the fol-
lowing provisions to one or more of the State’s allo-
cations under any other of such provisions:
‘‘(A) Part A of Title II.
‘‘(B) Subpart 1 of part A of title IV.
‘‘(C) Part A or B of title V.
‘‘(2) SUPPLEMENTAL FUNDS FOR TITLE I.—In
accordance with this part, a State may transfer any
funds allocated to the State under a provision listed
in paragraph (1) to its allocation under title I.
‘‘(b) TRANSFERS BY LOCAL EDUCATIONAL AGEN-
CIES.—
‘‘(1) AUTHORITY TO TRANSFER FUNDS.—
897
‘‘(A) IN
GENERAL.—In accordance with
this part, a local educational agency (except a
local educational agency identified for improve-
ment under section 1116(c)(2) or subject to
corrective action under section 1116(c)(9)) may
transfer not more than 50 percent of the funds
allocated to it under each of the provisions list-
ed in paragraph (2) for a fiscal year to one or
more of its allocations for such fiscal year
under any other provision listed in paragraph
(2).
‘‘(B) AGENCIES
IDENTIFIED
FOR
IM-
PROVEMENT.—A local educational agency iden-
tified for improvement under section 1116(c)(2)
may transfer in accordance with this part not
more than 30 percent of the funds allocated to
it under each of the provisions listed in para-
graph (2)—
‘‘(i) to its allocation for school im-
provement under section 1003;
‘‘(ii) to any other allocation if such
transferred funds are used only for local
educational agency improvement activities
consistent with section 1116(d).
898
‘‘(C) SUPPLEMENTAL
FUNDS
FOR
TITLE
I.—In accordance with this part, a local edu-
cational agency may transfer funds allocated to
such agency under a provision listed in para-
graph (2) to its allocation under title I.
‘‘(2) APPLICABLE
PROVISIONS.—A local edu-
cational agency may transfer funds under subpara-
graph (A) or (B) from allocations made under each
of the following provisions:
‘‘(A) Title II.
‘‘(B) Subpart 1 of part A of title IV.
‘‘(C) Subpart 1 of part A of title V or sec-
tion 5212(a)(2)(A).
‘‘(c) NO TRANSFER OF TITLE I FUNDS.—A State or
a local educational agency may not transfer under this
part to any other program any funds allocated to it under
title I.
‘‘(d) MODIFICATION OF PLANS AND APPLICATIONS;
NOTIFICATION.—
‘‘(1) STATE
TRANSFERS.—Each State that
makes a transfer of funds under this section shall—
‘‘(A) modify to account for such transfer
each State plan, or application submitted by the
State, to which such funds relate;
899
‘‘(B) not later than 30 days after the date
of such transfer, submit a copy of such modi-
fied plan or application to the Secretary; and
‘‘(C) not later than 30 days before the ef-
fective date of such transfer, notify the Sec-
retary of such transfer.
‘‘(2) LOCAL
TRANSFERS.—Each local edu-
cational agency that makes a transfer under this
section shall—
‘‘(A) modify to account for such transfer
each local plan, or application submitted by the
agency, to which such funds relate;
‘‘(B) not later than 30 days after the date
of such transfer, submit a copy of such modi-
fied plan or application to the State; and
‘‘(C) not later than 30 days before the ef-
fective date of such transfer, notify the State of
such transfer.
‘‘(e) APPLICABLE RULES.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this part, funds transferred under this sec-
tion are subject to each of the rules and require-
ments applicable to the funds allocated by the Sec-
retary under the provision to which the transferred
funds are transferred.
900
‘‘(2) CONSULTATION.—Each State educational
agency or local educational agency that transfers
funds under this section shall conduct consultations
in accordance with section 8503(c), if such transfer
transfers funds from a program that provides for
the participation of students, teachers, or other edu-
cational personnel, from private schools.
‘‘PART C—LOCAL FLEXIBILITY DEMONSTRATION
‘‘SEC. 7301. SHORT TITLE.
‘‘This part may be cited as the ‘Local Flexibility
Demonstration Act’.
‘‘SEC. 7302. PURPOSE.
‘‘The purpose of this part is to create options for local
educational agencies—
‘‘(1) to improve the academic achievement of all
students, and to focus the resources of the Federal
Government upon such achievement;
‘‘(2) to improve teacher quality and subject
matter mastery, especially in mathematics, reading,
and science;
‘‘(3) to empower parents and schools to effec-
tively address the needs of their children and stu-
dents;
901
‘‘(4) to give local educational agencies max-
imum freedom in determining how to boost academic
achievement and implement education reforms;
‘‘(5) to eliminate Federal barriers to imple-
menting effective local education programs;
‘‘(6) to hold local educational agencies account-
able for boosting the academic achievement of all
students, especially disadvantaged children; and
‘‘(7) to narrow achievement gaps between the
lowest and highest performing groups of students so
that no child is left behind.
‘‘SEC. 7303. AGREEMENTS TO PROVIDE LOCAL FLEXIBILITY.
‘‘(a) AUTHORITY.—Except as otherwise provided in
this part, the Secretary shall enter into performance
agreements—
‘‘(1) with local educational agencies that meet
their State’s definition of adequate yearly progress,
that submit approvable performance agreement pro-
posals, and that are selected under paragraph (2);
and
‘‘(2) under which the agencies may consolidate
and use funds as described in section 7304.
‘‘(b) SELECTION OF LOCAL EDUCATIONAL AGEN-
CIES.—
902
‘‘(1) IN GENERAL.—Subject to paragraph (2),
the Secretary shall enter into performance agree-
ments under this part with not more than 100 local
educational agencies. Each such local educational
agency shall be selected from among those local edu-
cational agencies that—
‘‘(A) submit a proposed performance
agreement to the Secretary and demonstrate, to
the satisfaction of the Secretary, that the
agreement—
‘‘(i) has substantial promise of meet-
ing the requirements of this part; and
‘‘(ii) describes a plan to combine and
use funds (as authorized under section
7304) under the agreement to meet the
State’s 
definition 
of 
adequate 
yearly
progress;
‘‘(B) provide information in the proposed
performance agreement regarding how the local
educational agency has notified the State of the
local educational agency’s intent to submit a
proposed performance agreement; and
‘‘(C) have consulted and involved parents
and educators in the development of the pro-
posed performance agreement.
903
‘‘(2) GEOGRAPHIC DISTRIBUTION.—
‘‘(A) IN GENERAL.—
‘‘(i) INITIAL
AGREEMENTS.—During
the period of time that expires 3 years
after the date of enactment of the No
Child Left Behind Act of 2001, the Sec-
retary may enter into not more than 2 per-
formance agreements under this part with
local educational agencies in each State.
‘‘(ii) SUBSEQUENT
AGREEMENTS.—
After the expiration of the 3-year period
beginning on the date of enactment of the
No Child Left Behind Act of 2001, the
Secretary may enter into performance
agreements under this part with any num-
ber of local educational agencies in each
State until the total number of such agree-
ments equals 100.
‘‘(B) URBAN AND RURAL AREAS.—If more
than 2 local educational agencies in a State
submit approvable performance agreements
under this part, the Secretary shall select local
educational agencies for performance agree-
ments under this part in a manner that ensures
904
an equitable distribution among such agencies
serving urban and rural areas.
‘‘(c) REQUIRED TERMS OF PERFORMANCE AGREE-
MENT.—Each performance agreement entered into with
the Secretary under this part shall have each of the fol-
lowing terms:
‘‘(1) TERM.— The performance agreement shall
be for a term of 5 years.
‘‘(2) APPLICATION
OF
PROGRAM
REQUIRE-
MENTS.—The performance agreement shall provide
that no requirements of any program described in
section 7304(b) and included by the local edu-
cational agency in the scope of the agreement shall
apply to the agency, except as otherwise provided in
this part.
‘‘(3) LIST
OF
PROGRAMS.—The performance
agreement shall list which of the programs described
in section 7304(b) are included in the scope of the
performance agreement.
‘‘(4) USE
OF
FUNDS
TO
IMPROVE
STUDENT
ACHIEVEMENT.— The performance agreement shall
contain a 5-year plan describing how the local edu-
cational agency intends to combine and use the
funds from programs included in the scope of the
performance agreement to advance the education
905
priorities of the State and the local educational
agency, meet the general purposes of the included
programs, improve student achievement, and narrow
achievement gaps.
‘‘(5) LOCAL INPUT.—The performance agree-
ment shall contain an assurance that the local edu-
cational agency will provide parents, teachers, and
schools with notice and an opportunity to comment
on the proposed terms of the performance agreement
in accordance with State law.
‘‘(6) FISCAL RESPONSIBILITIES.—The perform-
ance agreement shall contain an assurance that the
local educational agency will use fiscal control and
fund accounting procedures that will ensure proper
disbursement of, and accounting for, Federal funds
consolidated and used under the performance agree-
ment.
‘‘(7) CIVIL RIGHTS.—The performance agree-
ment shall contain an assurance that the local edu-
cational agency will meet the requirements of appli-
cable Federal civil rights laws in carrying out the
agreement and in consolidating and using the funds
under the agreement.
‘‘(8) PRIVATE
SCHOOL
PARTICIPATION.—The
performance agreement shall contain an assurance
906
that the local educational agency agrees that in con-
solidating and using funds under the performance
agreement—
‘‘(A) the local educational agency will pro-
vide for the equitable participation of students
and professional staff in private schools; and
‘‘(B) that sections 8504, 8505, and 8506
shall apply to all services and assistance pro-
vided with such funds in the same manner as
such sections apply to services and assistance
provided in accordance with section 8503.
‘‘(9) ANNUAL
REPORTS.—The performance
agreement shall contain an assurance that the local
educational agency agrees that not later than 1 year
after the date on which the Secretary enters into the
performance agreement, and annually thereafter
during the term of the performance agreement, the
local educational agency shall disseminate widely to
parents and the general public, transmit to its State
educational agency and the Secretary, distribute to
print and broadcast media, and post on the Internet,
a report that includes a detailed description of how
the local educational agency used the funds consoli-
dated under the agreement to improve student aca-
demic achievement and reduce achievement gaps.
907
‘‘(c) APPROVAL.—Not later than 60 days after the
receipt of a proposed performance agreement submitted
by a local educational agency under this part, the Sec-
retary shall approve the performance agreement or provide
the local educational agency with a written determination
that such agreement fails to satisfy the requirements of
this part.
‘‘(d) 
AMENDMENT
TO
PERFORMANCE
AGREE-
MENT.—
‘‘(1) IN GENERAL.—In each of the following
circumstances, the Secretary shall agree to amend a
performance agreement entered into with a local
educational agency under this part:
‘‘(A) REDUCTION IN SCOPE OF PERFORM-
ANCE
AGREEMENT.—Not later than 1 year
after entering into the performance agreement,
a State seeks to amend the agreement to re-
move from the scope any program described in
section 7304(b).
‘‘(B) EXPANSION OF SCOPE OF PERFORM-
ANCE
AGREEMENT.—Not later than 1 year
after entering into the performance agreement,
a State seeks to amend the agreement to in-
clude in its scope any additional program de-
scribed in section 7304(b) or any additional
908
achievement indicators for which the State will
be held accountable.
‘‘(2) APPROVAL OF AMENDMENT.—
‘‘(1) IN
GENERAL.—Not later than 60
days after the receipt of a proposed amendment
to the performance agreement submitted by a
local educational agency, the Secretary shall ap-
prove the amendment or provide the agency
with a written determination that the amend-
ment fails to satisfy the requirements of this
part.
‘‘(B) TREATMENT
AS
APPROVED.—Each
amendment for which the Secretary fails to
take the action required in subparagraph (A) in
the time period described in such subparagraph
shall be considered to be approved.
‘‘(3) TREATMENT OF PROGRAM FUNDS WITH-
DRAWN FROM AGREEMENT.—Beginning on the effec-
tive date of an amendment executed under para-
graph (1)(A), each program requirement of each
program removed from the scope of a performance
agreement shall apply to the local educational agen-
cy’s use of funds made available under the program.
‘‘SEC. 7304. CONSOLIDATION AND USE OF FUNDS.
‘‘(a) IN GENERAL.—
909
‘‘(1) AUTHORITY.—Under a performance agree-
ment entered into under this part, a local edu-
cational agency may consolidate, subject to sub-
section (c), Federal funds made available to the
agency under the provisions listed in subsection (b)
and use such funds for any educational purpose per-
mitted under this Act.
‘‘(2) PROGRAM
REQUIREMENTS.—Except as
otherwise provided in this part, a local educational
agency may use funds under paragraph (1) notwith-
standing the program requirements of the program
under which the funds were made available to the
State.
‘‘(b) ELIGIBLE PROGRAMS.—Funds made available
under programs under each of the following provisions of
this Act may be consolidated and used under subsection
(a):
‘‘(1) Title II.
‘‘(2) Part A of title IV.
‘‘(3) Subpart 1 of part A of title V.
‘‘(4) Part B of title V.
‘‘SEC. 7305. LIMITATIONS ON ADMINISTRATIVE EXPENDI-
TURES.
‘‘Each local educational agency that has entered into
a performance agreement with the Secretary under this
910
part may use for administrative purposes not more than
4 percent of the total amount of funds allocated to the
agency under the programs included in the scope of the
performance agreement.
‘‘SEC. 7306. PERFORMANCE REVIEW AND PENALTIES.
‘‘(a) MIDTERM REVIEW.—The Secretary may not
enter into a performance agreement under this part unless
the agreement includes a provision permitting the Sec-
retary, after notice and an opportunity for a hearing, to
terminate the agreement if, during the term of the agree-
ment, the local educational agency that is party to the
agreement fails to make adequate yearly progress for 3
consecutive years.
‘‘(b) FINAL REVIEW.—If, at the end of the 5-year
term of a performance agreement entered into under this
part, a local educational agency that is party to the agree-
ment has not met the achievement goals contained in the
performance agreement, the Secretary may not renew the
agreement under section 7307 and, beginning on the date
on which such term ends, the local educational agency
shall be required to comply with each of the program re-
quirements in effect on such date for each program in-
cluded in the performance agreement.
911
‘‘SEC. 7307. RENEWAL OF PERFORMANCE AGREEMENT.
‘‘(a) IN GENERAL.—Except as provided in section
7306(b) and in accordance with this section, the Secretary
shall renew for 1 additional 5-year term a performance
agreement entered into under this part if the State that
is party to the agreement has met or has substantially
met, by the end of the original term of the agreement,
the achievement goals contained in the agreement.
‘‘(b) NOTIFICATION.—The Secretary may not renew
a performance agreement under this part unless, not less
than 6 months before the end of the original term of the
agreement, the local educational agency seeking the re-
newal notifies the Secretary of its intention to renew.
‘‘(c) EFFECTIVE DATE.—A renewal under this sec-
tion shall be effective at the end of the original term of
the agreement or on the date on which the local edu-
cational agency seeking renewal provides to the Secretary
all data required under the agreement, whichever is later.
‘‘SEC. 7308. REPORTS.
‘‘(a) TRANSMITTAL TO CONGRESS.—Not later than
60 days after the Secretary receives a report described in
section 7303(c)(9), the Secretary shall make the report
available to the Committee on Education and the Work-
force of the House of Representatives and the Committee
on Health, Education, Labor and Pensions of the Senate.
912
‘‘(b) LIMITATION.—A State in which a local edu-
cational agency that is party to a performance agreement
entered into under this part is located may not require
such local educational agency to provide any application
information with respect to the programs included within
the scope of such performance agreement other than that
information that is required to be included in the report
described in section 7303(c)(9).
‘‘SEC. 7309. DEFINITIONS.
‘‘In this part, the following definitions apply:
‘‘(1) ADEQUATE YEARLY PROGRESS.—The term
‘adequate yearly progress’ means the adequate year-
ly progress determined by the State in which a local
educational agency is located pursuant to section
1111(b)(2)(C).
‘‘(2) ALL STUDENTS.—The term ‘all students’
means all students attending public schools or char-
ter schools that are participating in the State’s ac-
countability and assessment system.’’.
TITLE VIII—GENERAL
PROVISIONS
SEC. 801. GENERAL PROVISIONS.
The Elementary and Secondary Education Act of
1965, as amended by this Act, is further amended by add-
ing at the end of title VII the following:
913
‘‘TITLE VIII—GENERAL
PROVISIONS
‘‘PART A—DEFINITIONS
‘‘SEC. 8101. DEFINITIONS.
‘‘Except as otherwise provided, for the purposes of
this Act, the following terms have the following meanings:
‘‘(1) Average daily attendance—
‘‘(A) Except as provided otherwise by
State law or this paragraph, the term ‘average
daily attendance’ means—
‘‘(i) the aggregate number of days of
attendance of all students during a school
year; divided by
‘‘(ii) the number of days school is in
session during such school year.
‘‘(B) The Secretary shall permit the con-
version of average daily membership (or other
similar data) to average daily attendance for
local educational agencies in States that provide
State aid to local educational agencies on the
basis of average daily membership or such other
data.
‘‘(C) If the local educational agency in
which a child resides makes a tuition or other
payment for the free public education of the
914
child in a school located in another school dis-
trict, the Secretary shall, for purposes of this
Act—
‘‘(i) consider the child to be in attend-
ance at a school of the agency making such
payment; and
‘‘(ii) not consider the child to be in at-
tendance at a school of the agency receiv-
ing such payment.
‘‘(D) If a local educational agency makes a
tuition payment to a private school or to a pub-
lic school of another local educational agency
for a child with disabilities, as defined in para-
graph (5), the Secretary shall, for the purposes
of this Act, consider such child to be in attend-
ance at a school of the agency making such
payment.
‘‘(2) AVERAGE PER-PUPIL EXPENDITURE.—The
term ‘average per-pupil expenditure’ means, in the
case of a State or of the United States—
‘‘(A) without regard to the source of
funds—
‘‘(i) the aggregate current expendi-
tures, during the third fiscal year pre-
ceding the fiscal year for which the deter-
915
mination is made (or, if satisfactory data
for that year are not available, during the
most recent preceding fiscal year for which
satisfactory data are available) of all local
educational agencies in the State or, in the
case of the United States for all States
(which, for the purpose of this paragraph,
means the 50 States and the District of
Columbia); plus
‘‘(ii) any direct current expenditures
by the State for the operation of such
agencies; divided by
‘‘(B) the aggregate number of children in
average daily attendance to whom such agencies
provided free public education during such pre-
ceding year.
‘‘(3) BEGINNING TEACHER.—The term ‘begin-
ning teacher’ means an educator in a public school
who has been teaching less than a total of 3 com-
plete school years.
‘‘(4) CHILD.—The term ‘child’ means any per-
son within the age limits for which the State pro-
vides free public education.
‘‘(5) CHILD WITH DISABILITY.—The term ‘child
with a disability’ means a child—
916
‘‘(A) with mental retardation, hearing im-
pairments (including deafness), speech or lan-
guage impairments, visual impairments (includ-
ing blindness), serious emotional disturbance
(hereinafter referred to as ‘emotional disturb-
ance’), orthopedic impairments, autism, trau-
matic brain injury, other health impairments, or
specific learning disabilities; and
‘‘(B) who, by reason thereof, needs special
education and related services.
‘‘(6) COMMUNITY-BASED ORGANIZATION.—The
term ‘community-based organization’ means a public
or private nonprofit organization of demonstrated ef-
fectiveness that—
‘‘(A) is representative of a community or
significant segments of a community; and
‘‘(B) provides educational or related serv-
ices to individuals in the community.
‘‘(7) CONSOLIDATED
LOCAL
APPLICATION.—
The term ‘consolidated local application’ means an
application submitted by a local educational agency
pursuant to section 14305.
‘‘(8) CONSOLIDATED LOCAL PLAN.—The term
‘consolidated local plan’ means a plan submitted by
917
a local educational agency pursuant to section
14305.
‘‘(9) CONSOLIDATED
STATE
APPLICATION.—
The term ‘consolidated State application’ means an
application submitted by a State educational agency
pursuant to section 14302.
‘‘(10) CONSOLIDATED STATE PLAN.—The term
‘consolidated State plan’ means a plan submitted by
a State educational agency pursuant to section
14302.
‘‘(11) COUNTY.—The term ‘county’ means one
of the divisions of a State used by the Secretary of
Commerce in compiling and reporting data regard-
ing counties.
‘‘(12) COVERED PROGRAM.—The term ‘covered
program’ means each of the programs authorized
by—
‘‘(A) part A of title I;
‘‘(B) part B of title I;
‘‘(C) part C of title I;
‘‘(D) part D of title I;
‘‘(E) part F of title I;
‘‘(F) part G of title I;
‘‘(G) part A of title II;
‘‘(H) part A of title III;
918
‘‘(I) part A of title V;
‘‘(J) part B of title V; and
‘‘(K) part A of title IV:
‘‘(13) CURRENT
EXPENDITURES.—The term
‘current expenditures’ means expenditures for free
public education—
‘‘(A) including expenditures for adminis-
tration, instruction, attendance, pupil transpor-
tation services, operation and maintenance of
plant, fixed charges, and net expenditures to
cover deficits for food services and student body
activities; but
‘‘(B) not including expenditures for com-
munity services, capital outlay, and debt serv-
ice, or any expenditures made from funds re-
ceived under title I and part A of title IV.
‘‘(14) DEPARTMENT.—The term ‘Department’
means the Department of Education.
‘‘(15) EDUCATIONAL
SERVICE
AGENCY.—The
term ‘educational service agency’ means a regional
public multiservice agency authorized by State stat-
ute to develop, manage, and provide services or pro-
grams to local educational agencies.
‘‘(16) EFFECTIVE
SCHOOLS
PROGRAM.—The
term ‘effective schools program’ means a school-
919
based program that may encompass preschool
through secondary school levels and that has the ob-
jectives of—
‘‘(A) promoting school-level planning, in-
structional improvement, and staff development;
‘‘(B) increasing the academic achievement
levels of all children and particularly education-
ally disadvantaged children; and
‘‘(C) achieving as ongoing conditions in the
school the following factors identified through
scientifically based research as distinguishing
effective from ineffective schools:
‘‘(i) Strong and effective administra-
tive and instructional leadership that cre-
ates consensus on instructional goals and
organizational capacity for instructional
problem solving.
‘‘(ii) Emphasis on the acquisition of
basic and advanced academic skills.
‘‘(iii) A safe and orderly school envi-
ronment that allows teachers and pupils to
focus their energies on academic achieve-
ment.
920
‘‘(iv) Continuous review of students
and programs to evaluate the effects of in-
struction.
‘‘(17) ELEMENTARY SCHOOL.—The term ‘ele-
mentary school’ means a nonprofit institutional day
or residential school, including a public elementary
charter school, that provides elementary education,
as determined under State law.
‘‘(18) ESSENTIAL
COMPONENTS
OF
READING
INSTRUCTION.—The term ‘essential components of
reading instruction’ means explicit and systematic
instruction in—
‘‘(A) phonemic awareness;
‘‘(B) phonics;
‘‘(C) vocabulary development;
‘‘(D) reading fluency; and
‘‘(E) reading comprehension strategies.
‘‘(19) FAMILY LITERACY SERVICES.—The term
‘family literacy services’ means services provided to
participants on a voluntary basis that are of suffi-
cient intensity in terms of hours, and of sufficient
duration, to make sustainable changes in a family,
and that integrate all of the following activities:
‘‘(A) Interactive literacy activities between
parents and their children.
921
‘‘(B) Training for parents regarding how
to be the primary teacher for their children and
full partners in the education of their children.
‘‘(C) Parent literacy training that leads to
economic self-sufficiency.
‘‘(D) An age-appropriate education to pre-
pare children for success in school and life ex-
periences.
‘‘(20) FREE
PUBLIC
EDUCATION.—The term
‘free public education’ means education that is
provided—
‘‘(A) at public expense, under public super-
vision and direction, and without tuition charge;
and
‘‘(B) as elementary or secondary school
education as determined under applicable State
law, except that such term does not include any
education provided beyond grade 12.
‘‘(21) FULLY
QUALIFIED.—The term ‘fully
qualified’—
‘‘(A) when used with respect to a public el-
ementary or secondary school teacher means
that the teacher has obtained State certification
as a teacher (including certification obtained
through alternative routes to certification) or
922
passed the State teacher licensing exam and
holds a license to teach in such State, except
that when used with respect to any teacher
teaching in a public charter school, means that
the teacher meets the requirements set forth in
the State’s public charter school law; and
‘‘(B) when used with respect to—
‘‘(i) an elementary school teacher,
means that the teacher holds a bachelor’s
degree and demonstrates knowledge and
teaching skills in reading, writing, mathe-
matics, science, and other areas of the ele-
mentary school curriculum; and
‘‘(ii) a middle or secondary school
teacher, means that the teacher holds a
bachelor’s degree and demonstrates a high
level of competency in all subject areas in
which he or she teaches through—
‘‘(I) a passing level of perform-
ance on a rigorous State or local aca-
demic subject areas test; or
‘‘(II) completion of an academic
major in each of the subject areas in
which he or she provides instruction.
923
‘‘(22) GIFTED
AND
TALENTED.—The term
‘gifted and talented’, when used with respect to stu-
dents, children or youth, means students, children or
youth who give evidence of high performance capa-
bility in areas such as intellectual, creative, artistic,
or leadership capacity, or in specific academic fields,
and who require services or activities not ordinarily
provided by the school in order to fully develop such
capabilities.
‘‘(23) INSTITUTION OF HIGHER EDUCATION.—
The term ‘institution of higher education’ has the
meaning given that term in section 101 of the High-
er Education Act of 1965.
‘‘(24) LIMITED
ENGLISH
PROFICIENT
STU-
DENT.—The term ‘limited English proficient stu-
dent’ means an individual aged 5 through 17 en-
rolled in an elementary school or secondary school—
‘‘(A) who—
‘‘(i) was not born in the United States
or whose native language is a language
other than English;
‘‘(ii)(I) is a Native American or Alas-
ka Native, or a native resident of the out-
lying areas; and
924
‘‘(II) comes from an environment
where a language other than English has
had a significant impact on such individ-
ual’s level of English language proficiency;
or
‘‘(iii) is migratory, whose native lan-
guage is a language other than English,
and who comes from an environment where
a language other than English is domi-
nant; and
‘‘(B) who has sufficient difficulty speaking,
reading, writing, or understanding the English
language, and whose difficulties may deny the
individual—
‘‘(i) the ability to meet the State’s
proficient level of performance on State as-
sessments described in section 1111(b)(4)
in core academic subjects; or
‘‘(ii) the opportunity to participate
fully in society.
‘‘(25) LOCAL EDUCATIONAL AGENCY.—(A) The
term ‘local educational agency’ means a public board
of education or other public authority legally con-
stituted within a State for either administrative con-
trol or direction of, or to perform a service function
925
for, public elementary or secondary schools in a city,
county, township, school district, or other political
subdivision of a State, or for such combination of
school districts or counties as are recognized in a
State as an administrative agency for its public ele-
mentary or secondary schools.
‘‘(B) The term includes any other public insti-
tution or agency having administrative control and
direction of a public elementary or secondary school.
‘‘(C) The term includes an elementary or sec-
ondary school funded by the Bureau of Indian Af-
fairs but only to the extent that such inclusion
makes such school eligible for programs for which
specific eligibility is not provided to such school in
another provision of law and such school does not
have a student population that is smaller than the
student population of the local educational agency
receiving assistance under this Act with the smallest
student population, except that such school shall not
be subject to the jurisdiction of any State edu-
cational agency other than the Bureau of Indian Af-
fairs.
‘‘(D) The term includes educational service
agencies and consortia of such agencies.
926
‘‘(26) MENTORING.—The term ‘mentoring’
means a program in which an adult works with a
child or youth on a 1-to-1 basis, establishing a sup-
portive relationship, providing academic assistance,
and introducing the child or youth to new experi-
ences that enhance the child or youth’s ability to
excel in school and become a responsible citizen.
‘‘(27) NATIVE AMERICAN AND NATIVE AMER-
ICAN LANGUAGE.—The terms ‘Native American’ and
‘Native American language’ shall have the same
meaning given such terms in section 103 of the Na-
tive American Languages Act of 1990.
‘‘(28) OTHER STAFF.—The term ‘other staff’
means pupil services personnel, librarians, career
guidance and counseling personnel, education aides,
and other instructional and administrative per-
sonnel.
‘‘(29) OUTLYING
AREA.—The term ‘outlying
area’ means the United States Virgin Islands,
Guam, American Samoa, and the Commonwealth of
the Northern Mariana Islands, and through fiscal
year 2003 and for the purpose of any discretionary
grant program, includes the freely associated states
of the Republic of the Marshall Islands, the Fed-
927
erated States of Micronesia, and the Republic of
Palau.
‘‘(30) PARENT.—The term ‘parent’ includes a
legal guardian, or other person standing in loco
parentis (such as a grandparent or stepparent with
whom the child lives, or a person who is legally re-
sponsible for the child’s welfare).
‘‘(31) PUPIL
SERVICES
PERSONNEL; 
PUPIL
SERVICES.—(A) The term ‘pupil services personnel’
means school counselors, school social workers,
school psychologists, and other qualified professional
personnel involved in providing assessment, diag-
nosis, counseling, educational, therapeutic, and other
necessary services (including related services as such
term is defined in section 602(22) of the Individuals
with Disabilities Education Act) as part of a com-
prehensive program to meet student needs.
‘‘(B) The term ‘pupil services’ means the serv-
ices provided by pupil services personnel.
‘‘(32) READING.—The term ‘reading’ means a
complex system of deriving meaning from print that
requires all of the following:
‘‘(A) Skills and knowledge to understand
how phonemes, or speech sounds are connected
in print.
928
‘‘(B) Ability to decode unfamiliar words.
‘‘(C) Ability to read fluently.
‘‘(D) Sufficient background information
and vocabulary to foster reading comprehen-
sions.
‘‘(E) Development of appropriate active
strategies to construct meaning from print.
‘‘(F) Development and maintenance of a
motivation to read.
‘‘(33) RIGOROUS
DIAGNOSTIC
READING
AND
SCREENING
ASSESSMENT
TOOLS.—The term ‘rig-
orous diagnostic reading and screening assessment
tools’ means a diagnostic reading assessment that—
‘‘(A) is valid, reliable, and grounded on sci-
entifically based reading research;
‘‘(B) measures progress in developing pho-
nemic awareness and phonics skills, vocabulary,
reading fluency, and reading comprehension;
‘‘(C) identifies students who may be at risk
for reading failure or who are having difficulty
reading; and
‘‘(D) are used to improve instruction.
‘‘(34) SCIENTIFICALLY
BASED
RESEARCH.—
The term ‘scientifically based research’—
929
‘‘(A) means the application of rigorous,
systematic, and objective procedures to obtain
valid knowledge relevant to education activities
and programs; and
‘‘(B) shall include research that—
‘‘(i) employs systematic, empirical
methods that draw on observation or ex-
periment;
‘‘(ii) involves rigorous data analyses
that are adequate to test the stated
hypotheses and justify the general conclu-
sions drawn;
‘‘(iii) relies on measurements or obser-
vational methods that provide valid data
across evaluators and observers and across
multiple measurements and observations;
‘‘(iv) is evaluated using randomized
experiments in which individuals, entities,
programs, or activities are randomly as-
signed to different variations (including a
control condition) to compare the relative
effects of the variations; and
‘‘(v) has been accepted by a peer-re-
viewed journal or approved by a panel of
930
independent experts through a comparably
rigorous, objective, and scientific review.
‘‘(35) SECONDARY
SCHOOL.—The term ‘sec-
ondary school’ means a nonprofit institutional day or
residential school, including a public secondary char-
ter school, that provides secondary education, as de-
termined under State law, except that such term
does not include any education beyond grade 12.
‘‘(36) 
SECRETARY.—The 
term 
‘Secretary’
means the Secretary of Education.
‘‘(37) STATE.—The term ‘State’ means each of
the 50 States, the District of Columbia, the Com-
monwealth of Puerto Rico, and each of the outlying
areas.
‘‘(38) STATE
EDUCATIONAL
AGENCY.—The
term ‘State educational agency’ means the agency
primarily responsible for the State supervision of
public elementary and secondary schools.
‘‘(39) TECHNOLOGY.—The term ‘technology’
means the latest state-of-the-art technology products
and services.
‘‘SEC. 8102. APPLICABILITY OF TITLE.
‘‘Parts B, C, D, and E of this title do not apply to
title VI of this Act.
931
‘‘SEC. 8103. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS
OPERATED SCHOOLS.
‘‘For purposes of any competitive program under this
Act, a consortia of schools operated by the Bureau of In-
dian Affairs, a school operated under a contract or grant
with the Bureau of Indian Affairs in consortia with an-
other contract or grant school or tribal or community or-
ganization, or a Bureau of Indian Affairs school in con-
sortia with an institution of higher education, a contract
or grant school and tribal or community organization shall
be given the same consideration as a local educational
agency.
‘‘PART B—FLEXIBILITY IN THE USE OF
ADMINISTRATIVE AND OTHER FUNDS
‘‘SEC. 8201. CONSOLIDATION OF STATE ADMINISTRATIVE
FUNDS FOR ELEMENTARY AND SECONDARY
EDUCATION PROGRAMS.
‘‘(a) CONSOLIDATION OF ADMINISTRATIVE FUNDS.—
‘‘(1) IN GENERAL.—A State educational agency
may consolidate the amounts specifically made avail-
able to such agency for State administration under
one or more of the programs under paragraph (2)
if such State educational agency can demonstrate
that the majority of such agency’s resources are de-
rived from non-Federal sources.
932
‘‘(2) APPLICABILITY.—This section applies to
any program under this Act under which funds are
authorized to be used for administration, and such
other programs as the Secretary may designate.
‘‘(b) USE OF FUNDS.—
‘‘(1) IN GENERAL.—A State educational agency
shall use the amount available under this section for
the administration of the programs included in the
consolidation under subsection (a).
‘‘(2) ADDITIONAL USES.—A State educational
agency may also use funds available under this sec-
tion for administrative activities designed to enhance
the effective and coordinated use of funds under pro-
grams included in the consolidation under subsection
(a), such as—
‘‘(A) the coordination of such programs
with other Federal and non-Federal programs;
‘‘(B) the establishment and operation of
peer-review mechanisms under this Act;
‘‘(C) the administration of this title;
‘‘(D) the dissemination of information re-
garding model programs and practices;
‘‘(E) technical assistance under any pro-
gram under this Act;
933
‘‘(F) State level activities designed to carry
out this title;
‘‘(G) training personnel engaged in audit
and other monitoring activities; and
‘‘(H) implementation of the Cooperative
Audit Resolution and Oversight Initiative of the
Department of Education.
‘‘(c) RECORDS.—A State educational agency that
consolidates administrative funds under this section shall
not be required to keep separate records, by individual
program, to account for costs relating to the administra-
tion of programs included in the consolidation under sub-
section (a).
‘‘(d) REVIEW.—To determine the effectiveness of
State administration under this section, the Secretary may
periodically review the performance of State educational
agencies in using consolidated administrative funds under
this section and take such steps as the Secretary finds
appropriate to ensure the effectiveness of such administra-
tion.
‘‘(e) UNUSED ADMINISTRATIVE FUNDS.—If a State
educational agency does not use all of the funds available
to such agency under this section for administration, such
agency may use such funds during the applicable period
934
of availability as funds available under one or more pro-
grams included in the consolidation under subsection (a).
‘‘SEC. 8202. SINGLE LOCAL EDUCATIONAL AGENCY STATES.
‘‘A State educational agency that also serves as a
local educational agency, in such agency’s applications or
plans under this Act, shall describe how such agency will
eliminate duplication in the conduct of administrative
functions.
‘‘SEC. 8203. CONSOLIDATION OF FUNDS FOR LOCAL ADMIN-
ISTRATION.
‘‘(a) GENERAL AUTHORITY.—In accordance with
regulations of the Secretary and for any fiscal year, a local
educational agency, with the approval of its State edu-
cational agency, may consolidate and use for the adminis-
tration of one or more programs under this Act (or such
other programs as the Secretary shall designate) not more
than the percentage, established in each such program, of
the total available for the local educational agency under
such programs.
‘‘(b) STATE PROCEDURES.—Within one-year from
the date of enactment of the No Child Left Behind Act
of 2001, a State educational agency shall, in collaboration
with local educational agencies in the State, establish pro-
cedures for responding to requests from local educational
agencies to consolidate administrative funds under sub-
935
section (a) and for establishing limitations on the amount
of funds under such programs that may be used for ad-
ministration on a consolidated basis.
‘‘(c) CONDITIONS.—A local educational agency that
consolidates administrative funds under this section for
any fiscal year shall not use any other funds under the
programs included in the consolidation for administration
for that fiscal year.
‘‘(d) USES
OF ADMINISTRATIVE FUNDS.—A local
educational agency that consolidates administrative funds
under this section may use such consolidated funds for
the administration of such programs and for uses, at the
school district and school levels, comparable to those de-
scribed in section 8201(b)(2).
‘‘(e) RECORDS.—A local educational agency that con-
solidates administrative funds under this section shall not
be required to keep separate records, by individual pro-
gram, to account for costs relating to the administration
of such programs included in the consolidation.
‘‘SEC. 8204. CONSOLIDATED SET-ASIDE FOR DEPARTMENT
OF THE INTERIOR FUNDS.
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) TRANSFER.—The Secretary shall transfer
to the Department of the Interior, as a consolidated
amount for covered programs, the Indian education
937
costs related to the administration of the funds trans-
ferred under this section.
‘‘PART C—COORDINATION OF PROGRAMS; CON-
SOLIDATED STATE AND LOCAL PLANS AND
APPLICATIONS
‘‘SEC. 8301. PURPOSE.
‘‘The purposes of this part are to improve teaching
and learning through greater coordination between pro-
grams and to provide greater flexibility to State and local
authorities by allowing the consolidation of State and local
plans, applications, and reporting.
‘‘SEC. 8302. OPTIONAL CONSOLIDATED STATE PLANS OR
APPLICATIONS.
‘‘(a) GENERAL AUTHORITY.—
‘‘(1) SIMPLIFICATION.—In order to simplify ap-
plication requirements and reduce the burden for
States under this Act, the Secretary, in accordance
with subsection (b), shall establish procedures and
criteria under which a State educational agency, in
consultation with the State’s Governor, may submit
a consolidated State plan or a consolidated State ap-
plication meeting the requirements of this section
for—
‘‘(A) any programs under this Act in which
the State participates; and
938
‘‘(B) such other programs as the Secretary
may designate.
‘‘(2) 
CONSOLIDATED
APPLICATIONS
AND
PLANS.—A State educational agency, in consultation
with the State’s Governor, that submits a consoli-
dated State plan or a consolidated State application
under this section shall not be required to submit a
separate State plan or application for a program in-
cluded in the consolidated State plan or application.
‘‘(b) COLLABORATION.—
‘‘(1) IN GENERAL.—In establishing criteria and
procedures under this section, the Secretary shall
collaborate with Governors, State educational agen-
cies and, as appropriate, with other State agencies,
local educational agencies, public and private non-
profit agencies, organizations, and institutions, pri-
vate schools, and representatives of parents, stu-
dents, and teachers.
‘‘(2) CONTENTS.—Through the collaborative
process described in paragraph (1), the Secretary
shall establish, for each program under the Act to
which this section applies, the descriptions, informa-
tion, assurances, and other material required to be
included in a consolidated State plan or consolidated
State application.
939
‘‘(3) NECESSARY
MATERIALS.—The Secretary
shall require only descriptions, information, assur-
ances, and other materials that are absolutely nec-
essary for the consideration of the consolidated State
plan or consolidated State application.
‘‘SEC. 8303. CONSOLIDATED REPORTING.
‘‘In order to simplify reporting requirements and re-
duce reporting burdens, the Secretary shall establish pro-
cedures and criteria under which a State educational agen-
cy, in consultation with the State’s Governor, may submit
a consolidated State annual report. Such report shall con-
tain information about the programs included in the re-
port, including the State’s performance under those pro-
grams, and other matters as the Secretary determines,
such as monitoring activities. Such a report shall take the
place of separate individual annual reports for the pro-
grams subject to it.
‘‘SEC. 8304. GENERAL APPLICABILITY OF STATE EDU-
CATIONAL AGENCY ASSURANCES.
‘‘(a) ASSURANCES.—A State educational agency, in
consultation with the State’s Governor, that submits a
consolidated State plan or consolidated State application
under this Act, whether separately or under section 8302,
shall have on file with the Secretary a single set of assur-
940
ances, applicable to each program for which such plan or
application is submitted, that provides that—
‘‘(1) each such program will be administered in
accordance with all applicable statutes, regulations,
program plans, and applications;
‘‘(2)(A) the control of funds provided under
each such program and title to property acquired
with program funds will be in a public agency, in a
nonprofit private agency, institution, or organiza-
tion, or in an Indian tribe if the law authorizing the
program provides for assistance to such entities; and
‘‘(B) the public agency, nonprofit private agen-
cy, institution, or organization, or Indian tribe will
administer such funds and property to the extent re-
quired by the authorizing law;
‘‘(3) the State will adopt and use proper meth-
ods of administering each such program, including—
‘‘(A) the enforcement of any obligations
imposed by law on agencies, institutions, orga-
nizations, and other recipients responsible for
carrying out each program;
‘‘(B) the correction of deficiencies in pro-
gram operations that are identified through au-
dits, monitoring, or evaluation; and
941
‘‘(C) the adoption of written procedures for
the receipt and resolution of complaints alleging
violations of law in the administration of such
programs;
‘‘(4) the State will cooperate in carrying out
any evaluation of each such program conducted by
or for the Secretary or other Federal officials;
‘‘(5) the State will use such fiscal control and
fund accounting procedures as will ensure proper
disbursement of, and accounting for, Federal funds
paid to the State under each such program;
‘‘(6) the State will—
‘‘(A) make reports to the Secretary as may
be necessary to enable the Secretary to perform
the Secretary’s duties under each such pro-
gram; and
‘‘(B) maintain such records, provide such
information to the Secretary, and afford access
to the records as the Secretary may find nec-
essary to carry out the Secretary’s duties; and
‘‘(7) before the plan or application was sub-
mitted to the Secretary, the State has afforded a
reasonable opportunity for public comment on the
plan or application and has considered such com-
ment.
942
‘‘(b) GEPA PROVISION.—Section 441 of the General
Education Provisions Act shall not apply to programs
under this Act.
‘‘SEC. 8305. CONSOLIDATED LOCAL PLANS OR APPLICA-
TIONS.
‘‘(a) GENERAL AUTHORITY.—A local educational
agency receiving funds under more than one program
under this Act may submit plans or applications to the
State educational agency under such programs on a con-
solidated basis. The State educational agency shall make
any consolidated local plans and applications available to
the Governor.
‘‘(b) REQUIRED CONSOLIDATED PLANS OR APPLICA-
TIONS.—A State that has an approved consolidated State
plan or application under section 8302 may require local
educational agencies in the State receiving funds under
more than one program included in the consolidated State
plan or consolidated State application to submit consoli-
dated local plans or applications under such programs, but
may not require such agencies to submit separate plans.
‘‘(c) COLLABORATION.—A State educational agency,
in consultation with the Governor, shall collaborate with
local educational agencies in the State in establishing pro-
cedures for the submission of the consolidated State plans
or consolidated State applications under this section.
943
‘‘(d) NECESSARY MATERIALS.—The State shall re-
quire only descriptions, information, assurances, and other
material that are absolutely necessary for the consider-
ation of the local educational agency plan or application.
‘‘SEC. 8306. OTHER GENERAL ASSURANCES.
‘‘(a) ASSURANCES.—Any applicant other than a
State that submits a plan or application under this Act,
shall have on file with the State a single set of assurances,
applicable to each program for which a plan or application
is submitted, that provides that—
‘‘(1) each such program will be administered in
accordance with all applicable statutes, regulations,
program plans, and applications;
‘‘(2)(A) the control of funds provided under
each such program and title to property acquired
with program funds will be in a public agency or in
a nonprofit private agency, institution, organization,
or Indian tribe, if the law authorizing the program
provides for assistance to such entities; and
‘‘(B) the public agency, nonprofit private agen-
cy, institution, or organization, or Indian tribe will
administer such funds and property to the extent re-
quired by the authorizing statutes;
944
‘‘(3) the applicant will adopt and use proper
methods of administering each such program,
including—
‘‘(A) the enforcement of any obligations
imposed by law on agencies, institutions, orga-
nizations, and other recipients responsible for
carrying out each program; and
‘‘(B) the correction of deficiencies in pro-
gram operations that are identified through au-
dits, monitoring, or evaluation;
‘‘(4) the applicant will cooperate in carrying out
any evaluation of each such program conducted by
or for the State educational agency, the Secretary or
other Federal officials;
‘‘(5) the applicant will use such fiscal control
and fund accounting procedures as will ensure prop-
er disbursement of, and accounting for, Federal
funds paid to such applicant under each such pro-
gram;
‘‘(6) the applicant will—
‘‘(A) make reports to the Governor and
State educational agency and the Secretary as
may be necessary to enable such agency and the
Secretary to perform their duties under each
such program; and
945
‘‘(B) maintain such records, provide such
information, and afford access to the records as
the Governor and State educational agency or
the Secretary may find necessary to carry out
the State’s or the Secretary’s duties; and
‘‘(7) before the application was submitted, the
applicant afforded a reasonable opportunity for pub-
lic comment on the application and has considered
such comment.
‘‘(b) GEPA PROVISION.—Section 442 of the General
Education Provisions Act shall not apply to programs
under this Act.
‘‘PART D—WAIVERS
‘‘SEC. 8401. WAIVERS OF STATUTORY AND REGULATORY RE-
QUIREMENTS.
‘‘(a) IN GENERAL.—Except as provided in subsection
(c), the Secretary may waive any statutory or regulatory
requirement of this Act or the Carl D. Perkins Vocational
and Technical Education Act of 1998 for a State edu-
cational agency, local educational agency, Indian tribe, or
school through a local educational agency, that—
‘‘(1) receives funds under a program authorized
by this Act; and
‘‘(2) requests a waiver under subsection (b).
‘‘(b) REQUEST FOR WAIVER.—
946
‘‘(1) IN GENERAL.—A State educational agen-
cy, local educational agency, or Indian tribe which
desires a waiver shall submit a waiver application to
the Secretary that—
‘‘(A) indicates each Federal program af-
fected and each statutory or regulatory require-
ment requested to be waived;
‘‘(B) describes the purpose and overall ex-
pected results of waiving each such require-
ment;
‘‘(C) describes, for each school year, spe-
cific, measurable, educational goals for the
State educational agency and for each local
educational agency, Indian tribe, or school that
would be affected by the waiver; and
‘‘(D) explains why the waiver will assist
the State educational agency and each affected
local educational agency, Indian tribe, or school
in reaching such goals.
‘‘(2) 
ADDITIONAL
INFORMATION.—Such
requests—
‘‘(A) may provide for waivers of require-
ments applicable to State educational agencies,
local educational agencies, Indian tribes, and
schools; and
947
‘‘(B) shall be developed and submitted—
‘‘(i)(I) by local educational agencies
(on behalf of such agencies and schools) to
State educational agencies; and
‘‘(II) by State educational agencies
(on behalf of, and based upon the requests
of, local educational agencies) to the Sec-
retary; or
‘‘(ii) by Indian tribes (on behalf of
schools operated by such tribes) to the Sec-
retary.
‘‘(3) GENERAL REQUIREMENTS.—
‘‘(A) In the case of a waiver request sub-
mitted by a State educational agency acting in
its own behalf, the State educational agency
shall—
‘‘(i) provide all interested local edu-
cational agencies in the State with notice
and a reasonable opportunity to comment
on the request;
‘‘(ii) submit the comments to the Sec-
retary; and
‘‘(iii) provide notice and information
to the public regarding the waiver request
in the manner that the applying agency
948
customarily provides similar notices and
information to the public.
‘‘(B) In the case of a waiver request sub-
mitted by a local educational agency that re-
ceives funds under this Act—
‘‘(i) such request shall be reviewed by
the State educational agency and be ac-
companied by the comments, if any, of
such State educational agency; and
‘‘(ii) notice and information regarding
the waiver request shall be provided to the
public by the agency requesting the waiver
in the manner that such agency custom-
arily provides similar notices and informa-
tion to the public.
‘‘(c) RESTRICTIONS.—The Secretary shall not waive
under this section any statutory or regulatory require-
ments relating to—
‘‘(1) the allocation or distribution of funds to
States, local educational agencies, or other recipients
of funds under this Act;
‘‘(2) maintenance of effort;
‘‘(3) comparability of services;
‘‘(4) use of Federal funds to supplement, not
supplant, non-Federal funds;
949
‘‘(5) equitable participation of private school
students and teachers;
‘‘(6) parental participation and involvement;
‘‘(7) applicable civil rights requirements;
‘‘(8) the requirement for a charter school under
part B of title IV; or
‘‘(9) the prohibitions regarding—
‘‘(A) State aid in section 8502;
‘‘(B) use of funds for religious worship or
instruction in section 8507; and
‘‘(C) activities in section 8513.
‘‘(d) DURATION AND EXTENSION OF WAIVER.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the duration of a waiver approved by the
Secretary under this section may be for a period not
to exceed 5 years.
‘‘(2) EXTENSION.—The Secretary may extend
the period described in paragraph (1) if the Sec-
retary determines that—
‘‘(A) the waiver has been effective in ena-
bling the State or affected recipients to carry
out the activities for which the waiver was re-
quested and the waiver has contributed to im-
proved student performance; and
950
‘‘(B) such extension is in the public inter-
est.
‘‘(e) REPORTS.—
‘‘(1) LOCAL WAIVER.—A local educational agen-
cy that receives a waiver under this section shall at
the end of the second year for which a waiver is re-
ceived under this section, and each subsequent year,
submit a report to the State educational agency
that—
‘‘(A) describes the uses of such waiver by
such agency or by schools;
‘‘(B) describes how schools continued to
provide assistance to the same populations
served by the programs for which waivers are
requested; and
‘‘(C) evaluates the progress of such agency
and of schools in improving the quality of in-
struction or the academic performance of stu-
dents.
‘‘(2) STATE
WAIVER.—A State educational
agency that receives reports required under para-
graph (1) shall annually submit a report to the Sec-
retary that is based on such reports and contains
such information as the Secretary may require.
951
‘‘(3) INDIAN TRIBE WAIVER.—An Indian tribe
that receives a waiver under this section shall annu-
ally submit a report to the Secretary that—
‘‘(A) describes the uses of such waiver by
schools operated by such tribe; and
‘‘(B) evaluates the progress of such schools
in improving the quality of instruction or the
academic performance of students.
‘‘(4) REPORT TO CONGRESS.—Beginning in fis-
cal year 2002 and each subsequent year, the Sec-
retary shall submit to the Committee on Education
and the Workforce of the House of Representatives
and the Committee on Health, Education, Labor
and Pensions of the Senate a report—
‘‘(A) summarizing the uses of waivers by
State educational agencies, local educational
agencies, Indian tribes, and schools; and
‘‘(B) describing whether such waivers—
‘‘(i) increased the quality of instruc-
tion to students; or
‘‘(ii) improved the academic perform-
ance of students.
‘‘(f) TERMINATION
OF WAIVERS.—The Secretary
shall terminate a waiver under this section if the Secretary
determines, after notice and an opportunity for a hearing,
952
that the performance of the State or other recipient af-
fected by the waiver has been inadequate to justify a con-
tinuation of the waiver or if the waiver is no longer nec-
essary to achieve its original purposes.
‘‘(g) PUBLICATION.—A notice of the Secretary’s deci-
sion to grant each waiver under subsection (a) shall be
published in the Federal Register and the Secretary shall
provide for the dissemination of such notice to State edu-
cational agencies, interested parties, including educators,
parents, students, advocacy and civil rights organizations,
and the public.
‘‘PART E—UNIFORM PROVISIONS
‘‘SEC. 8501. MAINTENANCE OF EFFORT.
‘‘(a) IN GENERAL.—A local educational agency may
receive funds under a covered program for any fiscal year
only if the State educational agency finds that either the
combined fiscal effort per student or the aggregate ex-
penditures of such agency and the State with respect to
the provision of free public education by such agency for
the preceding fiscal year was not less than 90 percent of
such combined fiscal effort or aggregate expenditures for
the second preceding fiscal year.
‘‘(b) REDUCTION IN CASE OF FAILURE TO MEET.—
‘‘(1) IN
GENERAL.—The State educational
agency shall reduce the amount of the allocation of
953
funds under a covered program in any fiscal year in
the exact proportion to which a local educational
agency fails to meet the requirement of subsection
(a) of this section by falling below 90 percent of
both the combined fiscal effort per student and ag-
gregate expenditures (using the measure most favor-
able to such local agency).
‘‘(2) SPECIAL RULE.—No such lesser amount
shall be used for computing the effort required
under subsection (a) of this section for subsequent
years.
‘‘(c) WAIVER.—The Secretary may waive the require-
ments of this section if the Secretary determines that such
a waiver would be equitable due to—
‘‘(1) exceptional or uncontrollable circumstances
such as a natural disaster; or
‘‘(2) a precipitous decline in the financial re-
sources of the local educational agency.
‘‘SEC. 8502. PROHIBITION REGARDING STATE AID.
‘‘A State shall not take into consideration payments
under this Act (other than under title VI) in determining
the eligibility of any local educational agency in such State
for State aid, or the amount of State aid, with respect
to free public education of children.
954
‘‘SEC. 8503. PARTICIPATION BY PRIVATE SCHOOL CHIL-
DREN AND TEACHERS.
‘‘(a) PRIVATE SCHOOL PARTICIPATION.—
‘‘(1) IN GENERAL.—Except as otherwise pro-
vided in this Act, to the extent consistent with the
number of eligible children in areas served by a
State educational agency, local educational agency,
educational service agency, consortium of such agen-
cies, or another entity receiving financial assistance
under a program specified in subsection (b), who are
enrolled in private elementary and secondary schools
in areas served by such agency, consortium or entity,
such agency, consortium or entity shall, after timely
and meaningful consultation with appropriate pri-
vate school officials, provide such children and their
teachers or other educational personnel, on an equi-
table basis, special educational services or other ben-
efits that address their needs under such program.
‘‘(2) SECULAR, NEUTRAL, AND
NONIDEOLOG-
ICAL SERVICES OR BENEFITS.—Educational services
or other benefits, including materials and equipment,
provided under this section, shall be secular, neutral,
and nonideological.
‘‘(3) SPECIAL RULE.—Educational services and
other benefits provided under this section for such
private school children, teachers, and other edu-
955
cational personnel shall be equitable in comparison
to services and other benefits for public school chil-
dren, teachers, and other educational personnel par-
ticipating in such program and shall be provided in
a timely manner.
‘‘(4) EXPENDITURES.—Expenditures for edu-
cational services and other benefits provided under
this section to eligible private school children, their
teachers, and other educational personnel serving
such children shall be equal, taking into account the
number and educational needs of the children to be
served, to the expenditures for participating public
school children.
‘‘(5) PROVISION OF SERVICES.—Such agency,
consortium or entity described in subsection (a)(1)
of this section may provide such services directly or
through contracts with public and private agencies,
organizations, and institutions.
‘‘(b) APPLICABILITY.—
‘‘(1) IN GENERAL.—This section applies to pro-
grams under—
‘‘(A) part B, subpart 1 of title I;
‘‘(B) part C of title I;
‘‘(C) part A of title II;
‘‘(D) part A of title III;
956
‘‘(E) part A of title V; and
‘‘(F) part B of title V.
‘‘(2) DEFINITION.—For the purposes of this
section, the term ‘eligible children’ means children
eligible for services under a program described in
paragraph (1).
‘‘(c) CONSULTATION.—
‘‘(1) IN
GENERAL.—To ensure timely and
meaningful consultation, a State educational agency,
local educational agency, educational service agency,
consortium of such agencies or entity shall consult
with appropriate private school officials during the
design and development of the programs under this
Act, on issues such as—
‘‘(A) how the children’s needs will be iden-
tified;
‘‘(B) what services will be offered;
‘‘(C) how, where, and by whom the services
will be provided;
‘‘(D) how the services will be assessed and
how the results of the assessment will be used
to improve such services;
‘‘(E) the size and scope of the equitable
services to be provided to the eligible private
school children, teachers, and other educational
957
personnel and the amount of funds available for
such services; and
‘‘(F) how and when the agency, consor-
tium, or entity will make decisions about the
delivery of services, including a thorough con-
sideration and analysis of the views of the pri-
vate school officials on the provision of contract
services through potential third party providers.
‘‘(2) DISAGREEMENT.—If the agency, consor-
tium or entity disagrees with the views of the private
school officials on the provision of services through
a contract, the agency, consortium, or entity shall
provide in writing to such private school officials an
analysis of the reasons why the local educational
agency has chosen not to use a contractor.
‘‘(3) TIMING.—Such consultation shall occur
before the agency, consortium, or entity makes any
decision that affects the opportunities of eligible pri-
vate school children, teachers, and other educational
personnel to participate in programs under this Act,
and shall continue throughout the implementation
and assessment of activities under this section.
‘‘(4) DISCUSSION
REQUIRED.—Such consulta-
tion shall include a discussion of service delivery
mechanisms that the agency, consortium, or entity
958
could use to provide equitable services to eligible pri-
vate school children, teachers, administrators, and
other staff.
‘‘(d) PUBLIC CONTROL OF FUNDS.—
‘‘(1) IN GENERAL.—The control of funds used
to provide services under this section, and title to
materials, equipment, and property purchased with
such funds, shall be in a public agency for the uses
and purposes provided in this Act, and a public
agency shall administer such funds and property.
‘‘(2) PROVISION OF SERVICES.—
‘‘(A) The provision of services under this
section shall be provided—
‘‘(i) by employees of a public agency;
or
‘‘(ii) through contract by such public
agency with an individual, association,
agency, organization, or other entity.
‘‘(B) In the provision of such services, such
employee, person, association, agency, organiza-
tion or other entity shall be independent of such
private school and of any religious organization,
and such employment or contract shall be under
the control and supervision of such public agen-
cy.
959
‘‘(C) Funds used to provide services under
this section shall not be commingled with non-
Federal funds.
‘‘SEC. 8504. STANDARDS FOR BY-PASS.
‘‘If, by reason of any provision of law, a State edu-
cational agency, local educational agency, educational
service agency, consortium, or other entity of such agen-
cies, is prohibited from providing for the participation in
programs of children enrolled in, or teachers or other edu-
cational personnel from, private elementary and secondary
schools, on an equitable basis, or if the Secretary deter-
mines that such agency consortium or entity has substan-
tially failed or is unwilling to provide for such participa-
tion, as required by section 8503, the Secretary shall—
‘‘(1) waive the requirements of that section for
such agency, consortium, or entity;
‘‘(2) arrange for the provision of equitable serv-
ices to such children, teachers, or other educational
personnel through arrangements that shall be sub-
ject to the requirements of this section and of sec-
tions 8503, 8505, and 8506; and
‘‘(3) in making the determination, consider one
or more factors, including the quality, size, scope, lo-
cation of the program and the opportunity of private
960
school children, teachers, and other educational per-
sonnel to participate.
‘‘SEC. 8505. COMPLAINT PROCESS FOR PARTICIPATION OF
PRIVATE SCHOOL CHILDREN.
‘‘(a) PROCEDURES
FOR COMPLAINTS.—The Sec-
retary shall develop and implement written procedures for
receiving, investigating, and resolving complaints from
parents, teachers, or other individuals and organizations
concerning violations of section 8503 by a State edu-
cational agency, local educational agency, educational
service agency, consortium of such agencies or entity.
Such individual or organization shall submit such com-
plaint to the State educational agency for a written resolu-
tion by the State educational agency within a reasonable
period of time.
‘‘(b) APPEALS TO SECRETARY.—Such resolution may
be appealed by an interested party to the Secretary not
later than 30 days after the State educational agency re-
solves the complaint or fails to resolve the complaint with-
in a reasonable period of time. Such appeal shall be ac-
companied by a copy of the State educational agency’s res-
olution, and a complete statement of the reasons sup-
porting the appeal. The Secretary shall investigate and re-
solve each such appeal not later than 120 days after re-
ceipt of the appeal.
961
‘‘SEC. 8506. BY-PASS DETERMINATION PROCESS.
‘‘(a) REVIEW.—
‘‘(1) IN GENERAL.—
‘‘(A) The Secretary shall not take any final
action under section 8504 until the State edu-
cational agency, local educational agency, edu-
cational service agency, consortium of such
agencies or entity affected by such action has
had an opportunity, for not less than 45 days
after receiving written notice thereof, to submit
written objections and to appear before the Sec-
retary to show cause why that action should not
be taken.
‘‘(B) Pending final resolution of any inves-
tigation or complaint that could result in a de-
termination under this section, the Secretary
may withhold from the allocation of the affected
State or local educational agency the amount
estimated by the Secretary to be necessary to
pay the cost of those services.
‘‘(2) PETITION FOR REVIEW.—
‘‘(A) If such affected agency consortium or
entity is dissatisfied with the Secretary’s final
action after a proceeding under paragraph (1),
such agency consortium or entity may, within
60 days after notice of such action, file with the
962
United States court of appeals for the circuit in
which such State is located a petition for review
of that action.
‘‘(B) A copy of the petition shall be forth-
with transmitted by the clerk of the court to the
Secretary.
‘‘(C) The Secretary upon receipt of the
copy of the petition shall file in the court the
record of the proceedings on which the Sec-
retary based this action, as provided in section
2112 of title 28, United States Code.
‘‘(3) FINDINGS OF FACT.—
‘‘(A) The findings of fact by the Secretary,
if supported by substantial evidence, shall be
conclusive, but the court, for good cause shown,
may remand the case to the Secretary to take
further evidence and the Secretary may then
make new or modified findings of fact and may
modify the Secretary’s previous action, and
shall file in the court the record of the further
proceedings.
‘‘(B) Such new or modified findings of fact
shall likewise be conclusive if supported by sub-
stantial evidence.
‘‘(4) JURISDICTION.—
963
‘‘(A) Upon the filing of such petition, the
court shall have jurisdiction to affirm the action
of the Secretary or to set such action aside, in
whole or in part.
‘‘(B) The judgment of the court shall be
subject to review by the Supreme Court of the
United States upon certiorari or certification as
provided in section 1254 of title 28, United
States Code.
‘‘(b) DETERMINATION.—Any determination by the
Secretary under this section shall continue in effect until
the Secretary determines, in consultation with such agen-
cy, consortium or entity and representatives of the af-
fected private school children, teachers, or other edu-
cational personnel that there will no longer be any failure
or inability on the part of such agency or consortium to
meet the applicable requirements of section 8503 or any
other provision of this Act.
‘‘(c) PAYMENT FROM STATE
ALLOTMENT.—When
the Secretary arranges for services pursuant to this sec-
tion, the Secretary shall, after consultation with the ap-
propriate public and private school officials, pay the cost
of such services, including the administrative costs of ar-
ranging for those services, from the appropriate allocation
or allocations under this Act.
964
‘‘(d) PRIOR DETERMINATION.—Any by-pass deter-
mination by the Secretary under this Act as in effect on
the day preceding the date of enactment of the No Child
Left Behind Act of 2001 shall remain in effect to the ex-
tent the Secretary determines that such determination is
consistent with the purpose of this section.
‘‘SEC. 8507. PROHIBITION AGAINST FUNDS FOR RELIGIOUS
WORSHIP OR INSTRUCTION.
‘‘Nothing contained in this Act shall be construed to
authorize the making of any payment under this Act for
religious worship or instruction.
‘‘SEC. 8508. APPLICABILITY.
‘‘Nothing in this Act shall be construed to affect
home schools, whether or not a home school is treated as
a home school or a private school under State law (con-
sistent with section 8509), nor shall any home schooled
student be required to participate in any assessment ref-
erenced in this Act.
‘‘SEC. 8509. PRIVATE SCHOOLS.
‘‘Nothing in this Act shall be construed to affect any
private school that does not receive funds or services under
this Act nor shall any student who attends a private school
that does not receive funds or services under this Act be
required to participate in any assessment referenced in
this Act.
965
‘‘SEC. 8510. PRIVACY OF ASSESSMENT RESULTS.
‘‘Any results from individual assessments referenced
in this Act which become part of the education records
of the student shall have the protections as provided in
section 444 of the General Education Provisions Act.
‘‘SEC. 
8511. 
GENERAL 
PROVISION 
REGARDING 
NON-
RECIPIENT NONPUBLIC SCHOOLS.
‘‘Nothing in this Act, or any other Act administered
by the Department, shall be construed to permit, allow,
encourage, or authorize any Federal control over any as-
pect of any private, religious, or home school, whether or
not a home school is treated as a private school or home
school under State law. This section shall not be construed
to bar private, religious, or home schools from participa-
tion in programs or services under this Act.
‘‘SEC. 8512. SCHOOL PRAYER.
‘‘As a condition for receipt of funds under this Act,
a local educational agency shall certify in writing to the
Secretary that no policy of the agency prevents or other-
wise denies participation in constitutionally protected
prayer in public schools.
‘‘SEC. 8513. GENERAL PROHIBITIONS.
‘‘(a) PROHIBITION.—None of the funds authorized
under this Act shall be used—
‘‘(1) to develop or distribute materials, or oper-
ate programs or courses of instruction directed at
966
youth that are designed to promote or encourage,
sexual activity, whether homosexual or heterosexual;
‘‘(2) to distribute or to aid in the distribution
by any organization of legally obscene materials to
minors on school grounds;
‘‘(3) to provide sex education or HIV preven-
tion education in schools unless such instruction is
age appropriate and emphasizes the health benefits
of abstinence; or
‘‘(4) to operate a program of contraceptive dis-
tribution in schools.
‘‘(b) LOCAL CONTROL.—Nothing in this section shall
be construed to—
‘‘(1) authorize an officer or employee of the
Federal Government to direct, review, or control a
State, local educational agency, or schools’ instruc-
tional content, curriculum, and related activities;
‘‘(2) limit the application of the General Edu-
cation Provisions Act (20 U.S.C.A. 1221 et seq.);
‘‘(3) require the distribution of scientifically or
medically false or inaccurate materials or to prohibit
the distribution of scientifically or medically true or
accurate materials; or
‘‘(4) create any legally enforceable right.
967
‘‘SEC. 8514. PROHIBITION ON FEDERAL MANDATES, DIREC-
TION, AND CONTROL.
‘‘(a) GENERAL PROHIBITION.—Officers and employ-
ees of the Federal Government are prohibited from man-
dating, directing, or controlling a State, local educational
agency, or school’s curriculum, program of instruction, or
allocation of State or local resources, or mandating a State
or any subdivision thereof to spend any funds or incur
any costs not paid for under this Act.
‘‘(b) PROHIBITION OF FEDERAL MANDATES, DIREC-
TION, OR CONTROL.—Nothing in this Act shall be con-
strued to authorize an officer or employee of the Federal
Government to mandate, direct, or control a State, local
educational agency, or school’s specific instructional con-
tent or academic achievement standards and assessments,
curriculum, or program of instruction as a condition of
eligibility to receive funds under this Act.
‘‘(c) EQUALIZED SPENDING.—Nothing in this Act
shall be construed to mandate equalized spending per
pupil for a State, local educational agency, or school.
‘‘(d) BUILDING STANDARDS.—Nothing in this Act
shall be construed to mandate national school building
standards for a State, local agency, or school.
‘‘SEC. 8515. RULEMAKING.
‘‘The Secretary shall issue regulations under this Act
only to the extent that such regulations are necessary to