[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2728 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 2728

   To authorize a program of grants to States to improve the use of 
            technology in elementary and secondary schools.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 23, 1993

Mr. Sawyer (for himself and Mr. Kildee) introduced the following bill; 
       which was referred to the Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
   To authorize a program of grants to States to improve the use of 
            technology in elementary and secondary schools.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Technology 
Education Assistance Act of 1993''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title, table of contents.
Sec. 2. Findings.
Sec. 3. Statement of Purpose.
Sec. 4. Definitions.
           TITLE I--STATE AND LOCAL EDUCATIONAL AGENCY GRANTS

Sec. 101. In-State Apportionment.
Sec. 102. Elementary and Secondary Education Programs.
Sec. 103. Higher Education Partnership Programs.
Sec. 104. Library and Literacy Programs.
Sec. 105. State Educational Technology Plan.
Sec. 106. Local Educational Technology Plan.
Sec. 107. Federal Administration.
              TITLE II--EDUCATIONAL TECHNOLOGY GOVERNANCE

Sec. 201. Educational Technology Council.
Sec. 202. Educational Technology Authority.
         TITLE III--REGIONAL SUPPORT, RESEARCH AND DEVELOPMENT

Sec. 301. Regional Educational Technology Assistance Consortia.
Sec. 302. Educational Technology Research and Development Grants.
               TITLE IV--AUTHORIZATION OF APPROPRIATIONS

Sec. 401. Authorization of Appropriations.
Sec. 402. Allocation of Funds.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) the use of technology as a tool in the learning process 
        is essential to the development and maintenance of a 
        technologically literate citizenry and an internationally 
        competitive work force;
            (2) the acquisition and use of technology in education 
        throughout the United States has been inhibited by the absence 
        of Federal leadership, the inability of many State and local 
        educational agencies to invest in and support needed 
        technologies, and the limited availability of appropriate 
        technology-enhanced curriculum, instruction, teacher training, 
        and administrative support resources and services in the 
        educational marketplace;
            (3) educational equalization concerns and school 
        restructuring needs can be addressed through educational 
        telecommunications and technology by offering universal access 
        to high-quality teaching and programs, particularly in urban 
        and rural areas;
            (4) in the absence of appropriate educational technology 
        policies, the disparity between rich and poor students will 
        become even greater in a world where technology and 
        telecommunications increasingly have become an integral part of 
        many households;
            (5) the increasing use of new technologies and 
        telecommunications systems in business and industry has 
        furthered the gap between schooling and work force preparation;
            (6) telecommunications can be a conduit for ongoing teacher 
        training and improved professional development by providing to 
        teachers constant access to updated research in teaching and 
        learning;
            (7) research consistently shows that the planned use of 
        technology combined with teachers who are adequately trained in 
        its use can increase opportunities for more students to develop 
        higher order thinking and technical skills than is possible 
        with traditional instruction;
            (8) technology can--
                    (A) engage students in learning through media with 
                which they are comfortable;
                    (B) prove to be an effective learning tool, 
                particularly when correlated with State and national 
                curriculum standards; and
                    (C) produce benefits to students that far outweigh 
                its costs;
            (9) schools need new ways of financing the acquisition and 
        maintenance of educational technology; and
            (10) the needs for educational technology differ from State 
        to State.

SEC. 3. STATEMENT OF PURPOSE.

    The purpose of this Act is--
            (1) In General.--to support a comprehensive system for the 
        acquisition and use by elementary and secondary schools in the 
        United States of technology and technology-enhanced curricula, 
        instruction, and administrative support resources and services, 
        such system shall include--
                    (A) national leadership with respect to the need 
                for, and the provision of, appropriate technology-
                enhanced curriculum, instruction and administrative 
                programs to improve student learning in the United 
                States;
                    (B) funding mechanisms which will support the 
                development, interconnection, implementation, 
                improvement and maintenance of an effective educational 
                technology infrastructure;
                    (C) information dissemination networks to 
                facilitate access to information on effective learning 
                programs, assessment and evaluation of such programs, 
                research findings, and supporting resources (including 
                instructionally based, technology-enhanced programs, 
                research and resources) by educators throughout the 
                United States;
                    (D) an extensive variety of opportunities for 
                teacher, inservice training, and administrative 
                training and technical assistance with respect to 
                effective uses of technologies in education;
                    (E) consortia for the development, production, 
                distribution, and adaptation of technology and 
                technology-enhanced curricula, instruction and 
                administrative support resources and services with 
                Federal assistance;
                    (F) utilizing and strengthening, not duplicating, 
                existing telecommunications infrastructures dedicated 
                to educational purposes;
                    (G) development and evaluation of new and emerging 
                educational technologies and telecommunications 
                networks; and
                    (H) assessment data regarding state-of-the-art uses 
                of technologies in United States education upon which 
                businesses, noncommercial telecommunications entities, 
                and governments can rely on for decisionmaking about 
                the need for, and provision of, appropriate 
                technologies for education in the United States.
            (2) Specifically to.--
                    (A) authorize grants to States that --
                            (i) improve the academic performance of 
                        students through technology;
                            (ii) strengthen the skills of teachers in 
                        effectively utilizing technology for student 
                        learning;
                            (iii) promote the planned application of 
                        technology in education by those who will use 
                        the technology; and
                            (iv) encourage collaborative relationships 
                        between the State agency for higher education, 
                        the State library administrative agency and the 
                        State agency for education in the area of 
                        technology support to strengthen elementary and 
                        secondary education;
                    (B) establish within the Department of Education, a 
                Council with primary responsibility for--
                            (i) guiding Federal education policy, 
                        including as appropriate national guidelines 
                        for the introduction, use, and upgrading of 
                        technology in schools;
                            (ii) developing policy that will leverage 
                        the knowledge and resources of libraries and of 
                        institutions of higher education for the 
                        purposes of improving education for students at 
                        the local level through the use of technology;
                            (iii) representing the Department of 
                        Education with other agencies and departments 
                        of the Federal government on issues related to 
                        technology;
                            (iv) reducing barriers which may impede the 
                        use of technology in schools and other 
                        appropriate learning environments, for 
                        learning, technical assistance, and information 
                        exchange between schools, libraries, museums, 
                        and other knowledge and information providers 
                        in different localities and States; and
                            (v) reviewing State plans for educational 
                        technology to assure that they address State 
                        needs while supporting national educational 
                        goals;
                    (C) establish the Educational Technology Authority, 
                a non-profit corporation to--
                            (i) work with States and others to develop 
                        a variety of funding mechanisms for education 
                        technology that will enable schools to acquire 
                        educational technology; and
                            (ii) assure the technical and fiscal 
                        feasibility of State plans supported under the 
                        provisions of this Act;
                    (D) establish Regional Educational Technology 
                Assistance Consortia to--
                            (i) support technology planning and 
                        implementation for States, schools, districts, 
                        regional agencies, and institutions of higher 
                        education;
                            (ii) promote interstate coordination of 
                        technology planning and implementation;
                            (iii) assist technology initiatives to 
                        support the national educational goals and 
                        reform strategies; and
                            (iv) provide for professional development 
                        related to educational technology products that 
                        will serve the needs and be accessed by 
                        educators for programs in local schools 
                        throughout all regions of the United States;
                    (E) conduct research to identify and validate 
                effective applications of current and emerging 
                technologies to support student learning; and
                    (F) ensure that students and educators in rural, 
                suburban and urban communities and students with 
                special educational needs and diverse ethnic 
                backgrounds have equal access to the resources provided 
                under this Act by--
                            (i) assuring that all resources under this 
                        Act are equitably accessed by all public 
                        schools throughout the United States;
                            (ii) assuring that all technologies under 
                        this Act are made available in a variety of 
                        formats responding to the needs of students 
                        with disabilities;
                            (iii) assessing the extent to which such 
                        equitable access is delivered; and
                            (iv) assuring that all projects and 
                        programs under this Act provide for the 
                        educational needs of all students regardless of 
                        ethnicity, special education needs, primary 
                        language, socioeconomic status, or geographical 
                        proximity to the resources.

SEC. 4. DEFINITIONS.

    (a) In General.--The terms used in this Act, unless otherwise 
specified, shall have the same meaning given to such terms by section 
1471 of the Elementary and Secondary Act of 1965.
    (b) Additional Definitions.--For the purpose of this Act--
            (1) the terms ``institution of higher education'' and 
        ``State agency for higher education'' shall have the same 
        meaning given to such terms in section 1201(a) and 1201(h) of 
        the Higher Education Act of 1965;
            (2) the terms ``library'' and ``State library 
        administrative agency'' shall have the same meaning given to 
        such terms in section 3 of the Library Services and 
        Construction Act (Public Law 84-579);
            (3) the term ``Deputy Secretary'' means the Deputy 
        Secretary of Education;
            (4) the term ``Council'' means the Council for Educational 
        Technology;
            (5) the term ``Authority'' means the Educational Technology 
        Authority;
            (6) the term ``Fund'' means the Fund for Educational 
        Technology;
            (7) the term ``Regional Education Laboratory'' shall have 
        the same meaning given to such term in sec. 405 of the 
        Department of Education Organization Act, (Public Law 96-88);
            (8) the term ``Consortia'' means the Regional Educational 
        Technology Assistance Consortia;
            (9) the term ``technology'' includes closed circuit 
        television systems, public telecommunications entities, cable 
        television, satellite, copper and fiber optic transmission, 
        computer, video and audio laser and CD ROM disc, video and 
        audio tapes or other technologies;
            (10) the term ``Assistant Secretary'' means the Assistant 
        Secretary for the Office of Educational Research and 
        Improvement;
            (11) the term ``credit enhancement'' means a financial 
        arrangement that enhances the credit quality of the issuer or 
        the financial instrument being used;
            (12) the term ``interoperability'' means the ability to 
        communicate with operating systems developed nationally and 
        internationally using multiple network media;
            (13) the term ``disabilities'' means functional limitations 
        of hearing, vision, movement, manipulation, speech, and 
        interpretation of information;
            (14) the term ``school'' includes a day or residential 
        school which provides special education, as determined under 
        State and Federal law; and
            (15) the term ``student'' means students from a broad range 
        of backgrounds and circumstances, including disadvantaged 
        students, students with diverse racial, ethnic, and cultural 
        backgrounds, American Indians, Alaska Natives, Native 
        Hawaiians, students with disabilities, students with limited 
        English proficiency, and academically talented students.

           TITLE I--STATE AND LOCAL EDUCATIONAL AGENCY GRANTS

SEC. 101. IN-STATE APPORTIONMENT.

    (a) Authorizations.--The Secretary is authorized to make grants to 
States in accordance with the provisions of this title to strengthen 
the skills of teachers and improve student learning through the use of 
technology.
    (b) Elementary and Secondary Education Programs.--(1) For each 
fiscal year, an amount equal to 70 percent of each State's allotment 
under section 402(a)(2) shall be used for elementary and secondary 
education programs by the state education agency in accordance with 
section 102.
    (2) Not less than 90 percent of a State's allotment under this 
subsection shall be available to local educational agencies through 
competitive application--
            (A) not less than 20 percent of the funds available for a 
        project shall be used for professional development during the 
        first two years and not less than 10 percent in succeeding 
        years;
            (B) not less than 7 percent of the funds available for a 
        project shall be used for local planning and evaluation 
        activities; and
            (C) not more than 5 percent of the funds available to the 
        local education agency for any fiscal year may be used for 
        local administration.
    (3) Not more than 10 percent of the amount allocated under 
subsection (a) may be used by the State education agency of which--
            (A) not less than $100,000 shall be used for technical 
        assistance to local education agencies; and
            (B) not less than $20,000 shall be used for program 
        evaluations.
    (c) Higher Education Programs.--(1) For each fiscal year 20 percent 
of each State's allotment under section 402(a) shall be used by the 
State higher education agency designated in the State plan for 
partnership programs between local education agencies and higher 
education institutions in accordance with section 103.
    (2) Not less than 90 percent of the amount available for this 
subsection shall be used by the State for grants to institutions of 
higher education for partnership programs in accordance with the 
provisions of section 103.
    (3) 5 percent of the amount allocated to the State's higher 
education partnership program under this section, or $20,000, whichever 
is greater, shall be used for the costs incurred for the evaluation of 
programs assisted under section 103.
    (4) Not more than 5 percent of the amount allocated to the State's 
higher education partnership program under this subsection may be used 
in any fiscal year for administrative costs of the State's higher 
education agency designated in the State plan.
    (d) Library and Literacy Programs.--(1) For each fiscal year 10 
percent of each State's allocation under section 402(a) shall be used 
by the State library administrative agency to support collaborative 
activities among libraries, literacy programs, and local educational 
agencies in accordance with section 104.
    (2) Not less than 90 percent of the amount available for this 
section shall be used by the State for grants to local public libraries 
and literacy programs in accordance with the provisions of section 104.
    (3) Not more than 5 percent of the amount available under this 
section, or $20,000, whichever is greater, may be used by the State for 
the costs incurred for evaluation of programs assisted under Section 
104.
    (4) Not more than 5 percent of the amount available under this 
subsection may be used in any fiscal year by the State library 
administrative agency for administrative costs.

SEC. 102. ELEMENTARY AND SECONDARY EDUCATION PROGRAMS.

    (a) In General.--The amount apportioned under section 101(b) from 
each State's allotment shall be used by the State education agency to 
strengthen elementary and secondary education programs in accordance 
with the provisions of this section.
    (b) Local Education Agencies.--(1) Each local education agency 
shall use the educational technology funds available under section 
101(b)(2) for--
            (A) developing, adapting, or expanding existing and new 
        technological applications to support the school reform effort; 
        and
            (B) funding projects of sufficient size and scope to 
        improve student learning, support professional development, and 
        provide administrative support.
    (2) To be eligible to receive educational technology funds under 
this section for school or other school managed alternative learning 
environments a local education agency must receive State approval of a 
technology use plan which includes --
            (A) a description of how the local education agency plans 
        to use the financial assistance received under section 
        101(b)(2) to improve the use of technology in instruction, 
        professional development and administration;
            (B) a description of how funds under section 101(b)(2) will 
        be coordinated with other State, local and Federal resources;
            (C) a description of how the school programs will use other 
        resources of the community and involve public agencies, private 
        industry, institutions of higher education, public and private 
        nonprofit organizations, and other appropriate institutions, 
        and how other appropriate learning environments and adult 
        technology, learning and literacy programs might link and share 
        resources;
            (D) assurances that the programs will be evaluated and 
        outcomes reported in terms of the level of implementation of 
        the technology-based resources funded by this Act, the impact 
        on teaching and learning, the changes in the school program, 
        and the extent to which the school will sustain the project 
        after funding is terminated;
            (E) assurances that the plan will be consistent with 
        district level planning for educational technology, and will 
        support local and State curriculum frameworks;
            (F) assurances that the plan will be developed in 
        conjunction with other Federal, State and local policies as 
        appropriate, including chapter 1 and special education;
            (G) provisions to support, as needed, individual teachers 
        to develop and implement technology-based intervention 
        projects, including those which respond to the needs of 
        students with disabilities;
            (H) a description of how the financial assistance will be 
        used for the expansion and improvement of inservice training 
        and retraining and, if appropriate, preservice training, of 
        teachers and other appropriate school personnel regarding the 
        use of technology in schools, including the use of computers, 
        videos, and telecommunications to enhance learning--
                    (i) such training and instruction may be carried 
                out through agreements with public agencies, private 
                industry, institutions of higher education, regional 
                educational laboratories and national research centers, 
                nonprofit organizations, (including museums) libraries, 
                educational television stations, and other appropriate 
                institutions including the Regional Educational 
                Technology Assistance Consortia, established under 
                section 301;
                    (ii) a local education agency may carry out the 
                activities authorized by this paragraph with one or 
                more other local education agencies, State education 
                agencies, or both; and
                    (iii) each local education agency shall assure that 
                programs of training, inservice training and retraining 
                will take into account the need for greater access to 
                and participation in the use of technology;
            (I) a description of how the plan will address the special 
        needs of urban and rural schools;
            (J) a description of a strategy for the enhanced 
        involvement of parents through the use of technology; and
            (K) a description of how the plan will address the needs of 
        students with disabilities.
    (3) A local education agency for any fiscal year may apply for 
financial assistance as part of a consortium with other local education 
agencies, institutions of higher education, intermediate educational 
units or other appropriate education entities to provide local 
programs. The State education agency may assist in the formation of 
consortia between local education agencies, institutions of higher 
education, intermediate educational units or other appropriate 
education entities to provide services for the teachers and students in 
a local education agency at the request of such local education agency.

SEC. 103. HIGHER EDUCATION PROGRAMS.

    (a) In General.--The amount apportioned under section 101(c) from 
each State's allotment shall be used by the State for education 
programs in accordance with the provisions of this section.
    (b) Grants to Institutions of Higher Education.--(1) The State 
agency for higher education, in accordance with the State education 
technology plan filed under section 105, shall make grants available on 
a competitive basis to institutions of higher education in the State 
which form partnerships with one or more local education agencies.
    (2) The State shall make every effort to ensure equitable 
participation of private and public institutions of higher education.
    (3) The amount available under subsection 101(c)(2) shall be used 
for--
            (A) training programs for new teachers in the use of 
        technology as an educational adjunct;
            (B) inservice training for elementary, secondary, and 
        vocational school teachers and training for other appropriate 
        school personnel to improve their ability to use educational 
        technology in their teaching; and
            (C) programs to improve student performance in academic and 
        work skill areas through the use of technology.
    (4) No institution of higher education may receive assistance under 
paragraph (3)(A), (B), and (C) of this subsection unless the 
institution enters into an agreement with a local education agency, or 
consortium of such agencies, to provide inservice training and 
retraining for the elementary and secondary school teachers in the 
public and private schools of the school district of each agency.
    (c) Cooperative Program.--The State higher education agency may use 
funds described in section 101(c)(2) to achieve the objectives of 
section 103(b) by establishing cooperative programs among institutions 
of higher education, private industry, and non-profit organizations, 
that include one or more local education agencies, for the development 
and dissemination of projects to improve student performance in 
academic or work skill areas.
    (d) Reporting.--In accordance with section 101(c), 5 percent of the 
funding available for higher education partnerships shall be used by 
the agency for higher education for reporting the progress of the 
programs funded under this section and such reports shall, be provided 
to the State education agency annually.

SEC. 104. LIBRARY AND LITERACY PROGRAMS.

    (a) In General.--Except as provided in paragraph (2), the amount 
apportioned under section 101(d) from each State's allotment under this 
section shall be used by the State to assist literacy and education 
programs in accordance with the provisions of this section.
    (b) Grants to Local Public Libraries.--(1) In accordance with the 
State education technology plan filed under section 105, the State 
library administrative agency shall make grants available on a 
competitive basis to local public libraries in the State which 
demonstrate involvement of one or more local education agencies and 
literacy programs or organizations in their activities.
    (2) The amount available under section 101(d)(2) shall be used 
for--
            (A) developing programs that help libraries, local 
        education agencies, and literacy programs use technology to 
        share services and resources and develop collaborative 
        activities that improve their performance and that of the 
        students in academic and work skill areas; and
            (B) inservice training for library, literacy, and other 
        appropriate personnel to improve their skills in the use of 
        educational technology and telecommunications.
    (c) Cooperative Program.--The State library administration agency 
may use funds described in section 101(d)(2) to achieve the objectives 
of section 104(b) by establishing cooperative programs among public 
libraries, literacy organizations, private industries, and nonprofit 
education organizations, if such programs include one or more local 
education agencies and literacy programs, for the development and 
dissemination of projects to improve the performance of literacy 
programs and of students in academic or work skill areas.
    (d) Reporting.--In accordance with section 101(d), 5 percent of the 
funding available for library and literacy programs shall be used by 
the library administrative agency for reporting the progress of the 
programs funded under this section and such reports shall be provided 
to the State education agency annually.

SEC. 105. STATE EDUCATIONAL TECHNOLOGY PLAN.

    (a) Application.--Each State education agency which desires to 
receive a grant under this title shall, in consultation with the State 
agency for higher education and the State library administrative 
agency, file a single educational technology plan with the Secretary of 
Education which covers a period of 5 fiscal years. The State education 
agency shall be responsible for funding, supervising, and coordinating 
programs described under this title and shall file the educational 
technology plan at such time, in such manner, and containing or 
accompanied by such financial, educational and technological 
information as this section requires or as the Secretary may reasonably 
require.
    (b) Contents of the Plan.--Each such plan shall include financial 
information (items 1-6 at minimum), educational information (items 7-10 
at minimum), and technological information (items 11-14 at minimum), 
and shall--
            (1) designate the State agency or agencies responsible for 
        administering the elementary and secondary programs under 
        section 102, and the higher education programs under section 
        103 and designate the State library administrative agency to 
        administer the library and literacy programs under section 104 
        in support of improved student learning;
            (2) describe a financial plan developed by the State 
        education agency, which must be approved and recommended to the 
        Secretary by the Educational Technology Authority, established 
        in section 202. The financial plan shall--
                    (A) design financial assistance mechanisms to best 
                fit the technology needs of the State. Such mechanisms, 
                which must be included in the plan, may include, but 
                not be limited to--
                            (i) grants;
                            (ii) matching grants;
                            (iii) loans;
                            (iv) loan guarantees; and
                            (v) other credit enhancements as defined in 
                        section 4(b)(11);
                    (B) describe procedures for submitting applications 
                for programs described in sections 102, 103, and 104 
                for funding assistance under section 101 within the 
                State;
                    (C) describe procedures for approval of 
                applications by the appropriate State administrative 
                agency including appropriate procedures to assure that 
                such administrative agency will not disapprove an 
                application without notice and opportunity for a 
                hearing;
                    (D) delineate processes for auditing and monitoring 
                the use of funds by recipients;
                    (E) determine priorities for awarding funds under 
                various funding mechanisms; and
                    (F) construe nothing in subsection (b)(2) to 
                implicitly or explicitly imply that the funds made 
                available under this subsection, through whatever 
                mechanism is chosen by the State agency, and 
                recommended for approval to the Secretary by the 
                Educational Technology Authority, are backed by the 
                full faith and credit of the Federal Government;
            (3) designate the State education agency or another single 
        agency to carry out the financial plan developed by the State 
        education agency and to allocate funds received under sections 
        101 and 402(a)(2). Such designated agency shall be responsible 
        for--
                    (A) maintaining appropriate records of allocation 
                of funds, and, in the case of loans, adequate 
                collection procedures and records;
                    (B) reporting annually to the Educational 
                Technology Authority, established under section 202, on 
                the use of the funds it has received from the 
                Authority; and
                    (C) reporting annually to the Secretary on the use 
                of funds received under section 402(a)(2);
            (4) describe an implementation strategy to coordinate the 
        expenditure of financial assistance paid under sections 101 and 
        402(a)(2) with other State and local funds, other Federal funds 
        and resources, and any resources and funding made available 
        under section 202(i);
            (5) provide assurances that--
                    (A) financial assistance shall be distributed by 
                the State in accordance with the provisions of section 
                101;
                    (B) the State shall provide such fiscal control and 
                funds accounting as the Secretary may require; and
                    (C) financial assistance provided under section 101 
                shall supplement, not supplant, State and local funds 
                made available for activities authorized under sections 
                102, 103, and 104;
            (6) describe how business, industry, and other public and 
        private agencies including libraries, literacy programs, 
        institutions of higher education, and the Regional Technology 
        Assistance Consortia can participate in the implementation, 
        ongoing planning, and support of the plan;
            (7) delineate educational problems and needs in the State, 
        describe all learning environments supported by the State plan, 
        and specify how the application of technology will address 
        those and other needs including but not limited to the special 
        needs of--
                    (A) urban and rural schools;
                    (B) students with disabilities; and
                    (C) students who are underrepresented in the 
                population at large;
            (8) provide assurances that--
                    (A) during the 5-year period of the plan, the State 
                shall evaluate its standards for teacher preparation in 
                the use of technology; and
                    (B) programs conducted with State funds available 
                under this title shall be evaluated and an evaluation 
                report shall be submitted to the Secretary at the close 
                of the second year of funding and every 2 years 
                thereafter, and such evaluation report shall include, 
                but not be limited to--
                            (i) statistics on the number of students 
                        and teachers involved in these programs, the 
                        use of educational technology, the status of 
                        infrastructure development, and the allocation 
                        of resources for the purposes provided for 
                        under this Act;
                            (ii) progress on meeting the provisions of 
                        section 105(b)(7); and
                            (iii) a summary of the evaluations of 
                        programs funded under sections 102, 103, and 
                        104;
            (9) document how the plan is coordinated with other State 
        educational plans;
            (10) assure that educators involved in the development of 
        the plan represent the ethnic balance and all geographic areas 
        of the State;
            (11) describe how the State educational agency will promote 
        the purchase of equipment by local school districts and schools 
        that, when placed in operation, will provide the greatest 
        accessibility and equity for students and meet the highest 
        level of interoperability and open system design among--
                    (A) telecommunications and technology hardware and 
                software either when used on a stand-alone basis or 
                when connected together within a local area network, a 
                wide area network, or Federal, State and regional 
                networks; and
                    (B) schools within the State;
            (12) describe the State's strategy for ensuring that 
        teachers, administrators and other education personnel have 
        access to the necessary staff development and technical 
        assistance to effectively apply the appropriate technologies to 
        improve teaching, learning, school management, and the 
        electronic transfer of, and access to, information;
            (13) establish a method for continuously gathering and 
        disseminating current and emerging information on all aspects 
        of educational technology to all educators within the State;
            (14) describe how the State's planned use of technology is 
        supportive of the national education goals;
            (15) provide an evaluation method for the State plan; and
            (16) create a planning process through which such plan is 
        reviewed and updated periodically.
    (c) Approval of Plans.--(1) The State education agency shall submit 
a plan for approval to the Secretary, who shall --
            (A) send such plans to the Educational Technology Council, 
        created under section 201, and to the Educational Technology 
        Authority for review; and
            (B) expeditiously approve such State plan upon receiving a 
        favorable review from the Educational Technology Council, and 
        the Educational Technology Authority.
    (2) Any State that submits a plan that is not approved shall 
receive assistance from the Secretary to improve its plan.
    (3) If, after receiving assistance, a State plan fails to receive a 
favorable review, the State shall have the right to appeal to the 
Secretary, who shall convene a hearing to review the plan within 30 
days of receiving the request.
    (4) A State shall be ineligible to have its plans approved or to 
continue to receive funding for an approved plan if within the previous 
24 months it reduced funding for educational technology programs and 
activities within the State by more than 20 percent, unless the State 
can document that funding will be restored to at least 80 percent of 
its previous funding level.

SEC. 106. LOCAL EDUCATIONAL TECHNOLOGY PLAN.

    (a) Application.--A local education agency that desires to receive 
financial assistance under section 102, shall submit to the State 
education agency (singly or in conjunction with other local education 
agencies, institutions of higher education, or an intermediate 
educational unit) a plan which covers a 3-year period.
    (b) Contents of the Plan.--A local education agency plan shall--
            (1) describe how the local education agency will use funds 
        received under this subpart to improve the use of technology in 
        student learning with particular attention to the needs of 
        students with disabilities and students who are 
        underrepresented in the population at large;
            (2) describe how funds received under this Title will be 
        coordinated with State and local and other Federal resources;
            (3) describe how the programs will use other resources of 
        the community, including libraries, and involve public 
        agencies, private industry, institutions of higher education, 
        public and private nonprofit organizations, and other 
        appropriate institutions such as the Regional Educational 
        Technical Assistance Consortia;
            (4) assure that the programs will be evaluated, and 
        outcomes reported in terms of --
                    (A) the level of implementation of the technology-
                based resources funded by this Act;
                    (B) the impact on teaching and learning;
                    (C) the changes in the learning environment or 
                educational program; and
                    (D) the extent to which the school or other 
                appropriate learning environments will sustain the 
                project after funding is terminated;
            (5) be consistent with district level planning for 
        educational technology, and shall support the local and State's 
        curriculum frameworks;
            (6) be developed in concert with Federal, State and local 
        policies, as appropriate, including Chapter 1;
            (7) make provision for technical support and professional 
        development as needed for individual teachers to develop and 
        implement technology-assisted instruction; and
            (8) provide a strategy for the enhanced involvement of 
        parents through the use of technology.
    (c) Continuation of Payments.--The State education agency shall 
make payments to local education agencies in accordance with section 
105(b)(2) to carry out---
            (1) the first and second year activities based upon the 
        application; and
            (2) the third year activities under this section, if the 
        local education agency is making adequate progress toward 
        implementing the plan described in section 106(b).
The State education agency will not disapprove an application and 
discontinue payments without notice.

SEC. 107. FEDERAL ADMINISTRATION.

    (a) Evaluation Procedures.--The Secretary shall, with State and 
local representatives, develop procedures for State and local 
evaluations of the programs under this title.
    (b) Evaluation Summary.--The Secretary shall submit to the Congress 
3 years after the enactment of this Act and every 2 years thereafter a 
summary of the State evaluations of programs under this subpart.

              TITLE II--EDUCATIONAL TECHNOLOGY GOVERNANCE

SEC. 201. EDUCATIONAL TECHNOLOGY COUNCIL.

    Title II of the Department of Education Organization Act (20 U.S.C. 
3411 et seq.) is amended by adding at the end thereof the following new 
section:

``SEC. 205A. EDUCATIONAL TECHNOLOGY COUNCIL.

    ``(a) Purpose.--To establish within the Department of Education a 
council to promote intra- and interagency utilization and coordination 
of technology and educational-technology programs to improve learning, 
to represent public education's technology needs to regulatory agencies 
and to the Nation, and to review the State plans.
    ``(b) Establishment.--
            ``(1) Council established.--The Secretary shall establish 
        within the Department of Education an Educational Technology 
        Council.
            ``(2) Council head.--The Educational Technology Council 
        (herein referred to as the ``Council'') shall be headed by the 
        Deputy Secretary of Education or his or her designee.
    ``(c) Council Membership.--The Deputy Secretary shall appoint 9 
members to the Council, of whom --
            ``(1) five members shall be personnel from within the 
        Department of Education who have demonstrated competencies or 
        expertise in technology systems;
            ``(2) three members shall have past and ongoing experience 
        with education at the State or local school level or shall be 
        representatives of entities or organizations with a direct 
        interest in education technology, such as participants in the 
        Federal education research and development system; and
            ``(3) one member shall be a member of the Board of 
        Directors of the Educational Technology Authority.
    ``(d) Personnel.--In order to carry out the provisions of this 
section, the Deputy Secretary may appoint personnel in accordance with 
title 5, United States Code, and may compensate such personnel in 
accordance with the General Schedule described in section 5332 of title 
5, United States Code.
    ``(e) Functions of the Council.--The Council, through the Deputy 
Secretary, shall--
            ``(1) coordinate educational technology programs and issues 
        within the Department of Education by--
                    ``(A) providing leadership for policy development 
                and the coordination of technology-related education 
                activities;
                    ``(B) reviewing and, if appropriate, recommending 
                for approval State educational technology plans 
                submitted to the Secretary under section 105 for their 
                educational feasibility;
                    ``(C) conducting forums throughout the country on 
                education technology applications;
                    ``(D) providing technical assistance on the 
                educational aspects of technology uses as needed and 
                appropriate to States in the preparation of State plans 
                under section 105;
                    ``(E) making recommendations for wider applications 
                of the use of technology in the Department's education 
                programs;
                    ``(F) collaborating with the Educational Technology 
                Authority to--
                            ``(i) establish priorities related to the 
                        application of technology and technology-based 
                        resources in education;
                            ``(ii) suggest roles for business and 
                        industry to collaborate with educational 
                        entities and agencies at the regional and State 
                        level; and
                            ``(iii) determine the procedures for making 
                        grants under section 202(i);
                    ``(G) coordinating with the Regional Educational 
                Technology Assistance Consortia to ensure that State 
                and local education agencies have access to 
                information, technology programs, inservice programs 
                for teachers, and other resources made possible by this 
                Act;
            ``(2) represent the Department of Education with other 
        agencies and Departments of the Federal Government on 
        technology issues by--
                    ``(A) working with relevant Federal agencies to 
                reduce regulatory barriers and costs which prevent 
                schools from integrating technology into the classroom;
                    ``(B) consulting and cooperating with other Federal 
                agencies to coordinate educational technology programs 
                with analogous programs in other agencies and to 
                initiate interagency agreements for the joint funding 
                of such programs; and
                    ``(C) collaborating with the Regional Educational 
                Technology Assistance Consortia to--
                            ``(i) facilitate the education community's 
                        assessment and effective utilization of 
                        appropriate information resources produced and 
                        distributed electronically by projects of the 
                        Education Department and other Federal 
                        agencies; and
                            ``(ii) establish, in conjunction with the 
                        Federal Coordinating Council on Science, 
                        Engineering and Technology and other Federal 
                        agencies, cost effective integration, 
                        utilization and upgrading of technology in 
                        schools.''.

SEC. 202. EDUCATIONAL TECHNOLOGY AUTHORITY.

    (a) Purpose.--The Congress hereby declares that it is the purpose 
of this section to establish a private, not-for-profit, corporation 
to--
            (1) provide financing and technological system design 
        assistance to educational institutions to enable them to 
        acquire educational technology to improve the productivity of 
        the nation's education sector; and
            (2) assure equal access to educational technologies for all 
        users regardless of age, race, ethnicity, or disability.
    (b) Establishment.--(1) There is hereby established a nonprofit 
corporation to be known as the Educational Technology Authority 
(hereinafter referred to as the ``Authority'') which shall--
            (A) review and, if appropriate, recommend for approval 
        State plans under section 105; and
            (B) receive and allocate private, unrestricted funding and 
        resources to support and augment programs and projects 
        established under the provisions of this Act.
    (2) Such Authority shall maintain its principal office in the 
District of Columbia and shall be deemed, for the purposes of venue and 
jurisdiction in civil actions, to be a resident and citizen thereof.
    (3) Offices may be established by the Authority in such other place 
or places as it may deem necessary or appropriate for the conduct of 
its business.
    (c) Exemption From State and Local Taxes.--The Authority, including 
its franchise, capital, reserves, surplus, mortgages, or other security 
holdings, and income shall be exempt from all taxation now or hereafter 
imposed by any State, territory, possession, Commonwealth, or 
dependency of the United States, or by the District of Columbia, or by 
any county, municipality, or local taxing authority, except that any 
real property of the corporation shall be subject to State, 
territorial, county, municipal, or local taxation to the same extent 
according to its value as other real property is taxed.
    (d) Administrator of the Authority.--The Administrator of the 
Authority shall be appointed by the President for a term of five years.
    (e) Board of Directors.--
            (1) Board membership.--The Authority shall have a Board of 
        Directors which shall consist of 11 persons, 1 of whom shall be 
        designated Chairman by the President, and who shall include--
                    (A) one Director, who shall be the Deputy Secretary 
                of Education;
                    (B) six Directors, who shall be appointed by the 
                President;
                    (C) two Directors, who shall be appointed by the 
                Speaker of the United States House of Representatives; 
                and
                    (D) two Directors, who shall be appointed by the 
                majority leader of the United States Senate.
            (2) Composition of the board.--
                    (A) three directors shall be from representatives 
                of banks or other financial institutions;
                    (B) one director shall be an expert in school 
                finance;
                    (C) two directors shall be representatives of major 
                companies that develop and distribute technology-based 
                products used in the instruction of students from 
                grades K-12;
                    (D) two directors shall be experts in technological 
                system design;
                    (E) one director shall be a representative of local 
                education agencies; and
                    (F) one director shall be a representative of State 
                education agencies.
            (3) Terms of appointed members.--The Directors appointed by 
        the President, the Speaker of the House, and the Majority 
        Leader of the Senate shall serve at the pleasure of the 
        President, the Speaker, or the Majority Leader and until their 
        successors have been appointed and have qualified.
            (4) Meetings.--The Board of Directors shall meet at the 
        call of its Chairman, but at least semiannually.
            (5) Functions of the board.--
                    (A) The Board shall determine the general policies 
                which shall govern the operations of the Authority.
                    (B) The Board shall adopt, amend, and repeal such 
                bylaws, rules and regulations as may be necessary to--
                            (i) conduct its business; and
                            (ii) establish offices of the Authority and 
                        prescribe their executive functions, powers and 
                        duties.
                    (C) The Chairman of the Board shall, with the 
                approval of the Board, select, appoint, and compensate 
                qualified persons to fill the offices of the Authority 
                to discharge all such executive functions, powers, and 
                duties as may be prescribed in the bylaws or by the 
                Board of Directors.
    (f) Duties of the Authority.--The duties of the Authority shall 
include, but not be limited to--
            (1) reviewing and, if appropriate, recommending for 
        approval State plans under section 105 for their fiscal and 
        technological feasibility to determine whether such plans--
                    (A) contribute to the development of an 
                interoperable system that will enable local school 
                districts, schools, classrooms, and students nationwide 
                to communicate via computer systems, visual 
                transmission systems including broadband, closed 
                circuit, cable, fiber optics, microwave, or satellite 
                transmission, the use of video cassettes, video disc, 
                and other systems or devicses which produce visual 
                images, and other technological methods utilizing where 
                needed the Regional Educational Technology Assistance 
                Consortia; and
                    (B) contain a variety of funding procedures that 
                consider the special needs of districts with high 
                proportions of at-risk students or students with 
                disabilities and may include low-interest loans or 
                guarantees for loans for educational institutions to 
                acquire, install, and use learning technologies;
            (2) providing technical assistance to States on the fiscal 
        aspects of the State plan and, in consultation with the 
        Regional Educational Technology Assistance Consortia, provide 
        assistance on the technology aspects of the State plans 
        required under section 105;
            (3) collaborating with the Educational Technology Council 
        to--
                    (A) establish priorities related to the application 
                of technology and technology-based resources in 
                education;
                    (B) suggest roles for business and industry to 
                collaborate with educational entities and agencies at 
                the regional and State level; and
                    (C) determine the procedures for making grants 
                under section 202(i);
            (4) developing strategies for soliciting unrestricted 
        donations of cash, services or property or other assets to be 
        used to provide fiscal assistance for State and local education 
        agency activities which support the purposes of this Act.
    (g) General Corporate Powers.--The Authority shall have the power--
            (1) to sue and be sued, complain and defend, in its 
        corporate name and through its own counsel;
            (2) to adopt, alter, and use the corporate seal, which 
        shall be judicially noticed;
            (3) to adopt, amend, and repeal by its Board of Directors, 
        bylaws, rules, and regulations as may be necessary for the 
        conduct of its business;
            (4) to conduct its business, carry on its operations, and 
        have officers and exercise the power granted by this section in 
        any State without regard to any qualification or similar 
        statute in any State;
            (5) to lease, purchase, or otherwise acquire, own, hold, 
        improve, use, or otherwise deal in and with any property, real, 
        personal, or mixed, tangible or intangible, in aid of any of 
        the purposes of the Authority;
            (6) to accept unrestricted gifts or donations of services, 
        or property, real, personal, or mixed, tangible or intangible, 
        in aid of any of the purposes of the Authority;
            (7) to sell, convey, mortgage, pledge, lease, exchange, and 
        otherwise dispose of its property and assets;
            (8) to appoint such officers, attorneys, employees, and 
        agents as may be required, to determine their qualifications, 
        to define their duties, to fix their salaries, require bonds 
        for them, and fix the penalty thereof;
            (9) to enter into contracts, to execute instruments, to 
        incur liabilities, and to do all things as are necessary or 
        incidental to the proper management of its affairs and the 
        proper conduct of its business; and
            (10) in accordance with the provisions of this section, to 
        manage the fund created under section 202(i) for holding and 
        distributing all funds and assets made available by private 
        non-profit and profit making agencies, businesses, industries, 
        and individuals.
    (h) Accounting, Auditing, and Reporting.--The accounts of the 
Authority shall be audited annually:
            (1) Such audits shall be conducted in accordance with 
        generally accepted auditing standards by independent certified 
        public accountants or by independent licensed public 
        accountants, who are certified or licensed by a regulatory 
        authority of a State or other political subdivision of the 
        United States.
            (2) A report of each such audit shall be furnished to the 
        Secretary.
            (3) The audit shall be conducted at the place or places 
        where the accounts are normally kept.
            (4) Representatives of the Secretary shall --
                    (A) have access to all books, accounts, financial 
                records, reports, files, and all other papers, things, 
                or property belonging to or in use by the Authority and 
                necessary to facilitate the audit; and
                    (B) be afforded full facilities for verifying 
                transactions with the balances or securities held by 
                depositories, fiscal agents, and custodians.
    (i) Educational Technology Fund.--
            (1) There is hereby established in the Department of 
        Education a fund, to be known as the Educational Technology 
        Fund (hereinafter referred to as the ``Fund'') consisting of 
        all funds and assets available from private nonprofit and 
        profit making agencies, businesses, industries, and 
        individuals.
            (2) The assets of the funds shall be available for the 
        Authority to provide grants to State education agencies, local 
        education agencies, or other entities eligible to receive 
        funding under this Act for the purposes of augmenting the 
        programs and projects established under the provisions of this 
        Act.
    (j) Report on Operations and Activities.--The Authority shall, as 
soon as practicable, after the end of each fiscal year, transmit to the 
President, the Secretary, and the Congress a report of its operations 
and activities during such year.

         TITLE III--REGIONAL SUPPORT, RESEARCH, AND DEVELOPMENT

SEC. 301. REGIONAL EDUCATIONAL TECHNOLOGY ASSISTANCE CONSORTIA.

    (a) Purpose.--It is the purpose of this section to establish 
regional educational technology assistance consortia to serve as 
regional educational technology resources to facilitate the 
availability of technology to schools; information dissemination; 
professional development; technical support; evaluation of educational 
technology applications to States, regional educational organizations, 
local educational agencies, and other appropriate learning environments 
and conduct research on appropriate applications of educational 
technology to student learning.
    (b) Grants Authorized.--(1) The Secretary is authorized to make 
grants to the ten regional educational laboratories to establish 
Regional Educational Technology Assistance Consortia in accordance with 
the provisions of this section.
    (2) Funds provided under sections 401 and 402(a), are to be 
allocated to the 10 Regional Educational Technology Assistance 
Consortia based on student population and with consideration of the 
geography and other factors as needed to ensure equitable access to 
resources provided by the Regional Educational Technology Assistance 
Consortia.
    (c) Functions of the Consortia.--The Regional Educational 
Technology Assistance Consortia shall--
            (1) assist the States to ensure that students, including 
        those with special educational needs and of diverse ethnic 
        backgrounds, and educators in rural, suburban, or urban 
        communities have access to the educational benefits provided by 
        the use of technology;
            (2) collaborate with the Council to support the education 
        community in accessing and effectively utilizing--
                    (A) information resources distributed 
                electronically and produced by projects by the 
                Department of Education and other Federal agencies and 
                programs; and
                    (B) information, technology programs, inservice 
                programs for teachers and other resources made possible 
                by this Act;
            (3) provide regional access to educational technology 
        programs, projects, and resources;
            (4) establish, in conjunction with the Council, guidelines 
        for cost effective integration, utilization, maintenance, and 
        upgrading of technology in the schools through collaboration 
        with the Federal Coordinating Council on Science, Engineering 
        and Technology and other Federal agencies;
            (5) support the dissemination of information to local 
        school districts, schools, classrooms, students, and teachers 
        by fostering--
                    (A) in conjunction with the Authority, the 
                development of an interoperable system that will enable 
                local school districts, schools, classrooms, and 
                students to communicate using computer systems, visual 
                transmission systems, including broadband, closed 
                circuit, cable, fiber optics, microwave, or satellite 
                transmission, the use of video cassettes, video disc, 
                and other systems or devices which produce visual 
                images, or other technological methods;
                    (B) the development of activities that encourage 
                the interactive transfer of information and 
                communication on electronic networks that utilize the 
                Internet and other existing and emerging 
                telecommunications networks;
                    (C) the establishment of a coordinated system of 
                distance education combining multiple technologies, as 
                appropriate, that can serve to disseminate information 
                and provide interactive student learning related to new 
                research findings, national educational initiatives, 
                funding and program resources, and educational 
                technology developments and resources appropriate to 
                teaching and learning; and
                    (D) the dissemination of information about 
                technology related resources;
            (6) provide for professional development that will serve 
        the needs of and be accessed by educators in all regions of the 
        United States by--
                    (A) facilitating interactive staff development 
                related to new research findings, national education 
                initiatives, funding and program resources, and 
                educational technology developments and resources 
                appropriate to teaching and learning;
                    (B) facilitating staff development for educators 
                related to educational technology products and 
                practices in conformance with existing national 
                statutes and in collaboration with local and regional 
                programs; and
                    (C) assisting colleges and universities in 
                partnerships with local educational agencies within the 
                region to develop and apply for funding provided to 
                support the programs described under section 103 to 
                implement preservice training programs for students 
                enrolled in teaching programs and inservice training 
                programs for classroom and vocational teachers;
            (7) provide technical support to the States and local 
        education agencies in the development of educational technology 
        plans by--
                    (A) maintaining a registry of appropriate human and 
                technical resources to assist local educational 
                agencies in the application of the resources provided 
                by this statute; and
                    (B) working with the Authority and the Council to 
                provide technical assistance on the technical aspects 
                of the State plans required under section 105;
            (8) assist in the evaluation of educational technology 
        programs by--
                    (A) working with the States and local education 
                agencies in the planning, development, and 
                implementation of evaluation measures to access 
                educational programs, practices, and projects made 
                available by the provisions of this Act in 
                collaboration, as needed, with the United States 
                Department of Education; and
                    (B) conducting periodic reviews of the extent to 
                which the provisions of this statute are implemented 
                and make recommendations to the Secretary regarding the 
                extent of access, level of use, and benefits to 
                students and teachers of the programs and resources 
                made directly and indirectly possibly by this Act;
            (9) conduct applied research to address the needs of the 
        region and make available such results; and
            (10) develop ways to apply the findings of research in 
        educational technology and learning to improve educational 
        practice.

SEC. 302. EDUCATIONAL TECHNOLOGY RESEARCH AND DEVELOPMENT GRANTS.

    (a) Educational Technology Research and Development Grants.--The 
Secretary is authorized to establish Educational Technology Research 
and Development Grants to be administered by the Office of Educational 
Research and Improvement to provide for research and development so 
that education agencies can be continuously informed about the most 
effective applications of technology.
    (b) Purpose.--The purpose of the research and development project 
grants shall be to conduct research to--
            (1) identify and validate effective applications of current 
        and emerging technologies to support student learning; and
            (2) to support general education and to solve educational 
        problems and priorities as identified by the Secretary.
    (c) Eligibility to Receive Awards.--Grants provided under this 
section may be awarded to--
            (1) State education agencies;
            (2) school districts;
            (3) regional educational agencies;
            (4) consortia of districts; and
            (5) other non-profit educational agencies including 
        regional educational laboratories and national research 
        centers.
    (d) Criteria For Grants.--Grants shall be awarded on a competitive 
basis based upon evidence--
            (1) that educators have collaborated in the development and 
        will be involved in the implementation of the project;
            (2) that the proposed project offers an innovative approach 
        for educational improvement;
            (3) that the project has a high probability of being 
        adopted or adapted by other schools in a variety of demographic 
        contexts and within existing resources;
            (4) of commitment from existing and emerging public and 
        private agencies and Regional Educational Technology Assistance 
        Consortia as established in this Act to collaborate in the 
        dissemination and installation of resources identified in the 
        proposed program or project;
            (5) that a comprehensive evaluation of the impact of the 
        services provided will be conducted; and
            (6) that the proposal includes research on how schools 
        could become effective vehicles for improving literacy through 
        the use of technology for populations within the schools and in 
        the community.

               TITLE IV--AUTHORIZATION OF APPROPRIATIONS

SEC. 401. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated for the purposes of this 
Act, $550,000,000 for fiscal year 1994 and such sums as may be 
necessary for each of the 5 succeeding fiscal years.

SEC. 402. ALLOCATION OF FUNDS.

    (a) In General.--(1) From the amount appropriated under section 401 
for any fiscal year, the Secretary shall reserve--
            (A) not more than $2,750,000, or one half of one percent, 
        for allocation among Guam, American Samoa, the Virgin Islands, 
        the Northern Mariana Islands, and the Trust Territory of the 
        Pacific Islands according to their respective needs for 
        assistance under this subpart;
            (B) $2,750,000, or one half of 1 percent for programs for 
        Indian students served by schools funded by the Secretary of 
        the Interior consistent with the purposes of this subpart;
            (C) $1,000,000, or two tenths of 1 percent, for Section 201 
        for salaries and expenses of the Council Office;
            (D) $5,000,000, or nine tenths of 1 percent, for Section 
        202 for salaries and expenses of the Authority;
            (E) $33,500,000, or 6 percent, for Section 301; and
            (F) a minimum of $10,000,000, or 2 percent, for Section 
        302.
    (2) The remainder ($495,000,000, or 90 percent) of the amount so 
appropriated after meeting the requirements of paragraph (1) shall be 
allocated among the States (treating the District of Columbia and 
Puerto Rico as States) with approved state plans under section 105 as 
follows--
            (A) one-half of such remainder shall be allocated among the 
        States by allocating to each State an amount which bears the 
        same ratio to such 1/2 of such remainder as the number of 
        children aged 5 to 17, inclusive, in the State bears to the 
        number of such children in all States;
            (B) one-half of such remainder shall be allocated among the 
        States according to each State's share of allocations under 
        chapter 1 of the Education Consolidation and Improvement Act of 
        1981 or part A of chapter 1 of title I of the Elementary and 
        Secondary Education Act of 1965, whichever program was 
        effective for the previous fiscal year, except that no State 
        shall receive less than 1/2 of 1 percent of the amount 
        available under this subsection in any fiscal year or less than 
        the amount allotted to such State for fiscal year 1988 under 
        title II of the Education for Economic Security Act;
            (C) for the purposes of this subsection, the term ``State'' 
        does not include Guam, American Samoa, the Virgin Islands, the 
        Northern Mariana Islands, or the Trust Territory of the Pacific 
        Islands; and
            (D) the number of children aged 5 to 17, inclusive, in the 
        State and in all States shall be determined by the Secretary on 
        the basis of the most recent satisfactory data available to the 
        Secretary.
    (3) The Secretary shall make payments under paragraphs (1)(A) and 
(1)(B) on whatever terms the Secretary determines will best carry out 
the purposes of title I this Act.
    (b) Reallotment of Unused Funds.--The amount of any State's 
allotment under subsection (a) for any fiscal year which the Secretary 
determines will not be required for that fiscal year to carry out title 
I shall be available for reallotment from time to time, on such dates 
during that year as the Secretary may determine, to other States in 
proportion to the original allotments to those States under subsection 
(a) for that year but with such proportionate amount for any of those 
other States being reduced to the extent it exceeds the sum the 
Secretary estimates that State needs and will be able to use for that 
year; and the total of those reductions shall be similarly reallotted 
among the States whose proportionate amounts were not so reduced. Any 
amounts reallotted to a State under this subsection during a year shall 
be deemed a subpart of its allotment under subsection (a) for that 
year.

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