School Dropout Prevention and Basic Skills Improvement Act of 1990
PL 101-600 (H.R.5140), enacted 11/16/1990

104 STAT. 3042 
PUBLIC LAW 101-600—NOV. 16, 1990 
Public Law 101-600 
101st Congress 
Nov. 16, 1990 
[H.R. 5140] 
School Dropout 
Prevention and 
Basic Skills 
Improvement 
Act of 1990. 
20 use 2701 
note. 
20 u s e 2762. 
An Act 
To amend the Elementary and Secondary Education Act of 1965 to improve second-
ary school programs for basic skills improvement and dropout prevention and 
reentry, and for other purposes. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the "School Dropout Prevention and 
Basic Skills Improvement Act of 1990". 
SEC. 2. FINDINGS AND STATEMENT OF RESPONSIBILITY. 
(a) FINDINGS.—The Congress finds that— 
(1) the people of the Nation have become increasingly con-
cerned about the number of students who do not complete 
secondary school; and 
(2) in order for the Nation to regain its economic competitive-
ness, each child in the United States must be educated to his or 
her greatest potential and must be encouraged to finish second-
ary school. 
(b) STATEMENT OF RESPONSIBILITY.—It is the responsibility of the 
Federal Government to— 
(1) increase the number of Federally funded demonstration 
programs that have proven successful in increasing the second-
ary school completion rate; 
(2) encourage States to adopt specific plans to increase second-
ary school completion rates; and 
(3) enlist the assistance of community-based organizations in 
preventing students from dropping out of school, 
SEC. 3. REVISIONS TO SECONDARY SCHOOL PROGRAMS FOR BASIC 
SKILLS IMPROVEMENT AND DROPOUT PREVENTION AND RE-
ENTRY. 
(a) RESERVATIONS.— 
(1) GENERAL RULE.—Subsection (a) of section 1102 of the Ele-
mentary and Secondary Education Act of 1965 (20 U.S.C. 2761) 
is amended to read as follows: 
"(a) RESERVATIONS.—From the amount appropriated under section 
1110 for each of the fiscal years 1992 and 1993, the Secretary shall 
first reserve— 
"(1) an amount equal to 3 percent of such amount for pro-
grams consistent with the purpose of this part for school drop-
out prevention and reentry programs and secondary school 
basic skills improvement programs for migrant children, to be 
conducted through the Office of Migrant Education; and 
"(2) an amount equal to 5 percent of such amount for replica-
tion and technical assistance activities.". 
(b) USES OF FUNDS.—Section 1103 of the Elementary and Second-
ary Education Act of 1965 (20 U.S.C. 2763) is amended— 
PUBLIC LAW 101-600—NOV. 16, 1990 
104 STAT. 3043 
(1) by amending subsection (a) to read as follows: 
"(a) GENERAL RULE.— 
"(1) A local educational agency may use— 
"(A) not to exceed 50 percent of funds paid under this 
part in any fiscal year for dropout prevention and reentry 
activities pursuant to subsection (c); and 
"(B) the remainder of such funds for secondary schools 
basic skills improvement activities pursuant to subsection 
(b). 
"(2) A community-based organization shall use all funds paid 
under this part in any fiscal year for dropout prevention and 
reentry activities pursuant to subsection (c)."; 
(2) by amending subsection (d) to read as follows: 
"(d) WITHIN-STATE ALLOCATION.— 
"(1) Each State educational agency, from funds received 
under this part— 
"(A) shall first reserve an amount equal to 5 percent of 
such funds for programs consistent with the purpose of this 
part for school dropout prevention and reentry programs 
conducted by community-based organizations that have 
demonstrated effectiveness in programs for dropout preven-
tion and reentry activities or basic skills improvement 
activities; and 
"(B) shall then allocate funds among local educational 
agencies in the State on the basis o
f
— 
"(i) the eligibility of such agency for funds under 
section 1005; and 
"(ii) the criteria described in section 1105. 
"(2) Each local educational agency may carry out the activi-
ties described in section 1103 in cooperation with community-
based organizations.". 
(c) PLAN FOR PROGRAM TO INCREASE THE SECONDARY SCHOOL 
COMPLETION RATE.—Section 1104 of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 2764) is amended— 
(1) in subsection (a), by inserting "or community-based 
organization" after "local educational agency"; 
(2) in subsection (b)— 
(A) by redesignating paragraphs (1) through (10) as para-
graphs (3) through (12), respectively; 
(B) by inserting before paragraph (3) (as redesignated by 
subparagraph (A) of this paragraph) the following: 
"(1) contain a plan that describes specific proposals for a 
program to increase the secondary school completion rate of 
the State by not later than January 1, 2001, by a percentage 
equal to one-half the difference between 100 percent and the 
secondary school completion rate for individuals in the State 
aged 18 to 35, inclusive, as of January 1, 1990; 
"(2) assure that requirements for obtaining a certificate of 
graduation from a school providing secondary education or its 
equivalent will not be lowered;"; 
(C) in paragraph (4) (as redesignated by subparagraph (A) 
of this paragraph), by inserting "or community-based 
organization" after "local educational agency"; 
(D) in paragraph (5) (as redesignated by subparagraph (A) 
of this paragraph), by inserting "or areas" after "schools"; 
(E) in paragraph (9) (as redesignated by subparagraph (A) 
of this paragraph), by striking "community-based organiza-
104 STAT. 3044 
PUBLIC LAW 101-600—NOV. 16, 1990 
tions," and inserting "the local educational agency con-
cerned or community-based organizations, as appropriate,"; 
(F) in paragraph (10) (as redesignated by subparagraph 
(A) of this paragraph), by inserting "or community-based 
organization" after "local educational agency"; and 
(G) in paragraph (11) (as redesignated by subparagraph 
(A) of this paragraph)— 
(i) by inserting "concerned" after "local educational 
agency"; and 
(ii) by inserting "or community-based organization" 
after "such agency"; and 
(3) by amending subsection (d) to read as follows: 
"(d) TIME FOR SUBMISSION OF APPLICATIONS.—Each State shall 
submit to the Secretary— 
"(1) an initial application that covers a 3-year period by not 
later than January 1,1992; 
"(2) an initial or a renewal application that covers a 3-year 
period by not later than January 1,1995; and 
"(3) a renewal application that covers a 3-year period by not 
later than January 1,1998.". 
(d) AWARD OF GRANTS.—Section 1105 of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 2765) is amended— 
(1) by inserting "(a) GENERAL AUTHORITY.—" before "Each 
State"; 
(2) in subsection (a) (as designated by paragraph (1) of this 
subsection), by inserting "and community-based organizations" 
after "local educational agencies" in the matter preceding para-
graph (1); and 
(3) by adding at the end the following: 
"(b) 
PRIORITIES FOR GRANTS TO COMMUNITY-BASED ORGANIZA-
TIONS.— 
Disadvantaged 
"(1) The State educational agency shall give priority for 
persons. 
grants from amounts reserved under section 1103(d)(1)(A) to 
Rural areas. 
community-based organizations that intend to use funds under 
the grant to establish or operate model secondary school 
community education employment centers to meet the edu-
cation needs of inner-city, low-income youths or rural youths by 
awarding grants to eligible recipients to establish community 
education employment centers to provide students with the 
education, skills, support services, and enrichment necessary to 
ensure— 
"(A) graduation from secondary school; 
"(B) successful transition from articulated vocational and 
academic programs to a broad range of post secondary 
institutions; 
"(C) employment, including military service; and 
"(D) integration into America's economic mainstream. 
"(2) Each center that is assisted with a grant under this part 
shall offer— 
"(A) a comprehensive program of confidential guidance 
counseling; 
"(B) professional staff members who demonstrate the 
highest academic, teaching, guidance, or administrative 
standards, as appropriate; and 
"(C) active and informed parental and community partici-
pation.". 
PUBLIC LAW 101-600—NOV. 16, 1990 
104 STAT. 3045 
' 
(e) REPORTS; DEVELOPMENT OF INFORMATION BASE.—Part C of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 2761 et 
seq.) is amended— 
I 
(1) by redesignating sections 1106, 1107, and 1108 as sections 
I 
1108,1109, and 1111, respectively; and 
I 
(2) by inserting after section 1105 the following: 
"SEC. 1106. REPORTS; DEVELOPMENT OF INFORMATION BASE. 
"(a) REPORTS TO STATES.—Each local educational agency or 
individual school that receives assistance under a grant made under 
this part shall annually submit a report to the State describing 
activities carried out with such assistance and progress toward 
increasing the secondary school completion rate achieved as a result 
of such activities. 
"(b) REPORTS TO SECRETARY.—Each State shall annually submit a 
report to the Secretary describing activities carried out with assist-
ance received under this section and progress achieved toward 
increasing the secondary school completion rate as a result of such 
activities. 
"(c) DEVELOPMENT OF INFORMATION BASE.—From information con-
tained in the reports required under subsection (b), the Secretary 
shall create an information base containing information on dropout 
prevention programs for use by State and local educational agencies, 
elementary and secondary schools, and interested community 
organizations in the development or refinement of dropout preven-
tion programs. The Secretary shall ensure that such information 
base is easily accessible to such agencies, schools, and organiza-
tions.". 
(f) COORDINATION AND DISSEMINATION.—Part C of the Elementary 
and Secondary Education Act of 1965 (20 U.S.C. 2761 et seq.) is 
amended by inserting after section 1106 (as inserted by subsection 
(eX2) of this section) the following: 
"SEC. 1107. COORDINATION AND DISSEMINATION. 
"(a) GRANTS TO REGIONAL LABORATORIES.—From an amount equal 
to 65 percent of the amount reserved under section 1102(a)(2), the 
Secretary shall make grants to regional laboratories supported by 
the Secretary under section 405(dX4)(A)(i) of the General Education 
Provisions Act for the purposes o
f
— 
"(1) identifying model programs for dropout prevention and 
reentry in their regions; 
"(2) disseminating such programs; and 
"(3) providing assistance to schools in replicating such pro-
grams. 
"(b) ACTIVITIES OF THE NATIONAL DIFFUSION NETWORK.—The Sec-
retary shall provide an amount equal to 45 percent of the amount 
reserved under section 1102(a)(2) to the National Diffusion Network 
established under section 1562 for the purpose of replicating model 
programs for dropout prevention and reentry.". 
20 use 2766-
2768. 
20 u s e 2765a. 
20 use 2765b. 
104 STAT. 3046 
PUBLIC LAW 101-600—NOV. 16, 1990 
20 u s e 2767a. 
Colleges and 
universities. 
Illinois. 
(g) FISCAL REQUIREMENTS AND COORDINATION PROVISIONS.—Para-
graph (3) of section 1108(a) of the Elementary and Secondary Edu-
cation Act of 1965 (as redesignated by subsection (e)(1) of this 
section) is amended by inserting "and community-based organiza-
tions" after "Local educational agencies". 
(h) DEFINITION ESTABLISHED.—Part C of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 2761 et seq.) is amended 
by inserting after section 1109 (as redesignated by subsection (e)(1) of 
this section) the following: 
"SEC. 1110. DEFINITION OF SECONDARY SCHOOL COMPLETION RATE. 
"The Secretary shall establish a definition for the term 'secondary 
school completion rate' for purposes of this part.". 
SEC. 4. CENTER FOR COMMERCE AND INDUSTRIAL EXPANSION. 
(a) GRANT AUTHORIZED.—(1) The Secretary of Education (hereafter 
in this section referred to as the "Secretary") is authorized to award 
a grant to Loyola University of Chicago located in Chicago, Illinois, 
to pay the Federal share of the cost of construction and related costs 
for the establishment of a Center for Commerce and Industrial 
Expansion at Loyola University of Chicago. 
(2) The Federal share shall not be less than 33 percent. 
(b) APPLICATION.—No grant may be awarded under this section 
unless an application is made at such time, in such manner and 
containing or accompanied by such information, as the Secretary 
may reasonably require. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated such sums, not to exceed $8,000,000, as may be 
necessary to carry out the provisions of this section. Funds appro-
priated pursuant to this section shall remain available until ex-
pended. 
SEC. 5. ASSISTANCE TO PROVIDE BASIC SKILLS IMPROVEMENT. 
Section 6103 of the Secondary Schools Basic Skills Demonstration 
Assistance Act of 1988 (20 U.S.C. 3263) is amended by striking "fiscal 
year 1989" and inserting "each of the fiscal years 1991 and 1992". 
SEC. 6. STATEMENT OF PURPOSE. 
Section 6102(b) of the Training Technology Transfer Act of 1988 
(20 U.S.C. 5092) is amended by striking "education training, and" 
and inserting "education and training of students and teachers and 
the". 
SEC. 7. CENTERS FOR INTERNATIONAL BUSINESS EDUCATION. 
Section 614(a) of the Higher Education Act of 1965 (20 U.S.C. 
1130b(a)) is amended— 
(1) by striking "$5,000,000" and inserting "$7,500,000"; and 
(2) by striking "3 succeeding" and inserting "4 succeeding". 
PUBLIC LAW 101-600-NOV. 16, 1990 
104 STAT. 3047 
SEC. 8. DAKOTA WESLEY 
AN UNIVERSITY. 
South Dakota. 
Notwithstanding the provisions of section 487(c)(2)(B) of the 
Higher Education Act of 1965, the Secretary of Education shall 
reassess the amount owed by the Dakota Wesleyan University, 
located in Mitchell, South Dakota, in the amount of $159,260, plus 
any accrued interest thereon to $16,113. 
Approved November 16, 1990. 
LEGISLATIVE HISTORY—H.R. 5140: 
HOUSE REPORTS: No. 101-574 (Comm. on Education and Labor). 
CONGRESSIONAL RECORD, Vol. 136 (1990): 
July 10, considered and passed House. 
Oct. 24, considered and passed Senate, amended. 
Oct. 26, House concurred in Senate amendment. 
o