[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6 Enrolled Bill (ENR)]

        H.R.6

                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE SECOND SESSION

          Begun and held at the City of Washington on Tuesday,
 the twenty-fifth day of January, one thousand nine hundred and ninety-
                                  four


                                 An Act

  
 
  To extend for five years the authorizations of appropriations for the 
programs under the Elementary and Secondary Education Act of 1965, and 
for certain 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 ``Improving America's Schools Act of 
1994''.

SEC. 2. ORGANIZATION OF THE ACT.

    This Act is organized into the following titles:

  TITLE I--AMENDMENTS TO THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 
                                  1965

      TITLE II--AMENDMENTS TO THE GENERAL EDUCATION PROVISIONS ACT

                   TITLE III--AMENDMENTS TO OTHER ACTS

                 TITLE IV--NATIONAL EDUCATION STATISTICS

                         TITLE V--MISCELLANEOUS

SEC. 3. EFFECTIVE DATES; TRANSITION.

    (a) Effective Dates.--
        (1) Title i.--
            (A) Title I and the amendment made by title I of this Act 
        shall take effect July 1, 1995, except that those provisions of 
        title I that apply to programs under title VIII (Impact Aid) of 
        the Elementary and Secondary Education Act of 1965, as amended 
        by this Act, and to programs under such Act that are conducted 
        on a competitive basis, shall be effective with respect to 
        appropriations for use under such programs for fiscal year 1995 
        and for subsequent fiscal years.
            (B) Title VIII of the Elementary and Secondary Education 
        Act of 1965, as amended by title I of this Act, shall take 
        effect on the date of the enactment of this Act.
        (2) Title ii.--Title II of this Act and the amendments made by 
    title II of this Act shall take effect on the date of enactment of 
    this Act, except that section 236 (equity for students, teachers, 
    and other program beneficiaries) of such title shall be effective--
            (A) July 1, 1995 for noncompetitive programs in which funds 
        are allocated on the basis of a formula; and
            (B) for programs that are conducted on a competitive basis, 
        with respect to appropriations for use under such programs in 
        fiscal year 1995 and in subsequent fiscal years.
        (3) Title iii.--(A) Parts A and B of title III of this Act and 
    the amendments made by such parts shall take effect on July 1, 
    1995.
        (B) Part C of title III of this Act and the amendments made by 
    such part shall take effect on October 1, 1994.
    (b) Transition.--Notwithstanding any other provision of law, a 
recipient of funds under the Elementary and Secondary Education Act of 
1965, as such Act was in effect on the day preceding the date of 
enactment of this Act, may use funds available to such recipient under 
such predecessor authority to carry out necessary and reasonable 
planning and transition activities in order to ensure a smooth 
implementation of programs authorized by this Act.

 TITLE I--AMENDMENTS TO THE ELEMENTARY AND SECONDARY EDUCATION ACT OF 
                                  1965

    SEC. 101. AMENDMENTS TO THE ELEMENTARY AND SECONDARY EDUCATION ACT 
      OF 1965.
    The Elementary and Secondary Education Act of 1965 (20 U.S.C. 2701 
et seq.) is amended to read as follows:

``SECTION 1. TABLE OF CONTENTS.

    ``This Act may be cited as the `Elementary and Secondary Education 
Act of 1965'.

     ``TITLE I--HELPING DISADVANTAGED CHILDREN MEET HIGH STANDARDS

``SEC. 1001. DECLARATION OF POLICY AND STATEMENT OF PURPOSE.

    ``(a) Statement of Policy.--
        ``(1) In general.--The Congress declares it to be the policy of 
    the United States that a high-quality education for all individuals 
    and a fair and equal opportunity to obtain that education are a 
    societal good, are a moral imperative, and improve the life of 
    every individual, because the quality of our individual lives 
    ultimately depends on the quality of the lives of others.
        ``(2) Additional policy.--The Congress further declares it to 
    be the policy of the United States to expand the program authorized 
    by this title over the fiscal years 1996 through 1999 by increasing 
    funding for this title by at least $750,000,000 over baseline each 
    fiscal year and thereby increasing the percentage of eligible 
    children served in each fiscal year with the intent of serving all 
    eligible children by fiscal year 2004.
    ``(b) Recognition of Need.--The Congress recognizes that--
        ``(1) although the achievement gap between disadvantaged 
    children and other children has been reduced by half over the past 
    two decades, a sizable gap remains, and many segments of our 
    society lack the opportunity to become well educated;
        ``(2) the most urgent need for educational improvement is in 
    schools with high concentrations of children from low-income 
    families and achieving the National Education Goals will not be 
    possible without substantial improvement in such schools;
        ``(3) educational needs are particularly great for low-
    achieving children in our Nation's highest-poverty schools, 
    children with limited English proficiency, children of migrant 
    workers, children with disabilities, Indian children, children who 
    are neglected or delinquent, and young children and their parents 
    who are in need of family-literacy services;
        ``(4) while title I and other programs funded under this Act 
    contribute to narrowing the achievement gap between children in 
    high-poverty and low-poverty schools, such programs need to become 
    even more effective in improving schools in order to enable all 
    children to achieve high standards; and
        ``(5) in order for all students to master challenging standards 
    in core academic subjects as described in the third National 
    Education Goal described in section 102(3) of the Goals 2000: 
    Educate America Act, students and schools will need to maximize the 
    time spent on teaching and learning the core academic subjects.
    ``(c) What Has Been Learned Since 1988.--To enable schools to 
provide all children a high-quality education, this title builds upon 
the following learned information:
        ``(1) All children can master challenging content and complex 
    problem-solving skills. Research clearly shows that children, 
    including low-achieving children, can succeed when expectations are 
    high and all children are given the opportunity to learn 
    challenging material.
        ``(2) Conditions outside the classroom such as hunger, unsafe 
    living conditions, homelessness, unemployment, violence, inadequate 
    health care, child abuse, and drug and alcohol abuse can adversely 
    affect children's academic achievement and must be addressed 
    through the coordination of services, such as health and social 
    services, in order for the Nation to meet the National Education 
    Goals.
        ``(3) Use of low-level tests that are not aligned with schools' 
    curricula fails to provide adequate information about what children 
    know and can do and encourages curricula and instruction that focus 
    on the low-level skills measured by such tests.
        ``(4) Resources are more effective when resources are used to 
    ensure that children have full access to effective high-quality 
    regular school programs and receive supplemental help through 
    extended-time activities.
        ``(5) Intensive and sustained professional development for 
    teachers and other school staff, focused on teaching and learning 
    and on helping children attain high standards, is too often not 
    provided.
        ``(6) Insufficient attention and resources are directed toward 
    the effective use of technology in schools and the role technology 
    can play in professional development and improved teaching and 
    learning.
        ``(7) All parents can contribute to their children's success by 
    helping at home and becoming partners with teachers so that 
    children can achieve high standards.
        ``(8) Decentralized decisionmaking is a key ingredient of 
    systemic reform. Schools need the resources, flexibility, and 
    authority to design and implement effective strategies for bringing 
    their children to high levels of performance.
        ``(9) Opportunities for students to achieve high standards can 
    be enhanced through a variety of approaches such as public school 
    choice and public charter schools.
        ``(10) Attention to academics alone cannot ensure that all 
    children will reach high standards. The health and other needs of 
    children that affect learning are frequently unmet, particularly in 
    high-poverty schools, thereby necessitating coordination of 
    services to better meet children's needs.
        ``(11) Resources provided under this title can be better 
    targeted on the highest-poverty local educational agencies and 
    schools that have children most in need.
        ``(12) Equitable and sufficient resources, particularly as such 
    resources relate to the quality of the teaching force, have an 
    integral relationship to high student achievement.
    ``(d) Statement of Purpose.--The purpose of this title is to enable 
schools to provide opportunities for children served to acquire the 
knowledge and skills contained in the challenging State content 
standards and to meet the challenging State performance standards 
developed for all children. This purpose shall be accomplished by--
        ``(1) ensuring high standards for all children and aligning the 
    efforts of States, local educational agencies, and schools to help 
    children served under this title to reach such standards;
        ``(2) providing children an enriched and accelerated 
    educational program, including, when appropriate, the use of the 
    arts, through schoolwide programs or through additional services 
    that increase the amount and quality of instructional time so that 
    children served under this title receive at least the classroom 
    instruction that other children receive;
        ``(3) promoting schoolwide reform and ensuring access of 
    children (from the earliest grades) to effective instructional 
    strategies and challenging academic content that includes intensive 
    complex thinking and problem-solving experiences;
        ``(4) significantly upgrading the quality of instruction by 
    providing staff in participating schools with substantial 
    opportunities for professional development;
        ``(5) coordinating services under all parts of this title with 
    each other, with other educational services, and, to the extent 
    feasible, with health and social service programs funded from other 
    sources;
        ``(6) affording parents meaningful opportunities to participate 
    in the education of their children at home and at school;
        ``(7) distributing resources, in amounts sufficient to make a 
    difference, to areas and schools where needs are greatest;
        ``(8) improving accountability, as well as teaching and 
    learning, by using State assessment systems designed to measure how 
    well children served under this title are achieving challenging 
    State student performance standards expected of all children; and
        ``(9) providing greater decisionmaking authority and 
    flexibility to schools and teachers in exchange for greater 
    responsibility for student performance.

``SEC. 1002. AUTHORIZATION OF APPROPRIATIONS.

     ``(a) Local Educational Agency Grants.--For the purpose of 
carrying out part A, other than section 1120(e), there are authorized 
to be appropriated $7,400,000,000 for fiscal year 1995 and such sums as 
may be necessary for each of the four succeeding fiscal years.
     ``(b) Even Start.--For the purpose of carrying out part B, there 
are authorized to be appropriated $118,000,000 for fiscal year 1995 and 
such sums as may be necessary for each of the four succeeding fiscal 
years.
     ``(c) Education of Migratory Children.--For the purpose of 
carrying out part C, there are authorized to be appropriated 
$310,000,000 for fiscal year 1995 and such sums as may be necessary for 
each of the four succeeding fiscal years.
     ``(d) Prevention and Intervention Programs for Youth Who Are 
Neglected, Delinquent, or at Risk of Dropping Out.--For the purpose of 
carrying out part D, there are authorized to be appropriated 
$40,000,000 for fiscal year 1995 and such sums as may be necessary for 
each of the four succeeding fiscal years.
     ``(e) Capital Expenses.--For the purpose of carrying out section 
1120(e), there are authorized to be appropriated $41,434,000 for fiscal 
year 1995 and such sums as may be necessary for each of the four 
succeeding fiscal years.
    ``(f) Additional Assistance for School Improvement.--For the 
purpose of providing additional needed assistance to carry out sections 
1116 and 1117, there are authorized to be appropriated such sums as may 
be necessary for fiscal year 1996 and each of the three succeeding 
fiscal years.
     ``(g) Federal Activities.--
        ``(1) Section 1501.--For the purpose of carrying out section 
    1501, there are authorized to be appropriated $9,000,000 for fiscal 
    year 1995 and such sums as may be necessary for each of the four 
    succeeding fiscal years.
        ``(2) Sections 1502 and 1503.--For the purpose of carrying out 
    sections 1502 and 1503, there are authorized to be appropriated 
    $50,000,000 for fiscal year 1995 and such sums as may be necessary 
    for each of the four succeeding fiscal years.

``SEC. 1003. RESERVATION AND ALLOCATION FOR SCHOOL IMPROVEMENT.

    ``(a) Payment for School Improvement.--
        ``(1) In general.--Except as provided in paragraph (3), each 
    State may reserve for the proper and efficient performance of its 
    duties under subsections (c)(5) and (d) of section 1116, and 
    section 1117, one-half of 1 percent of the funds allocated to the 
    State under subsections (a), (c), and (d), of section 1002 for 
    fiscal year 1995 and each succeeding fiscal year.
        ``(2) Minimum.--The total amount that may be reserved by each 
    State, other than the outlying areas, under this subsection for any 
    fiscal year, when added to amounts appropriated for such fiscal 
    year under section 1002(f) that are allocated to the State under 
    subsection (b), if any, may not be less than $200,000. The total 
    amount that may be reserved by each outlying area under this 
    subsection for any fiscal year, when added to amounts appropriated 
    for such fiscal year under section 1002(f) that are allocated under 
    subsection (b) to the outlying area, if any, may not be less than 
    $25,000.
        ``(3) Special rule.--If the amount reserved under paragraph (1) 
    when added to the amount made available under section 1002(f) for a 
    State is less than $200,000 for any fiscal year, then such State 
    may reserve such additional funds under subsections (a), (c), and 
    (d) of section 1002 as are necessary to make $200,000 available to 
    such State.
    ``(b) Additional State Allocations for School Improvement.--From 
the amount appropriated under section 1002(f) for any fiscal year, each 
State shall be eligible to receive an amount that bears the same ratio 
to the amount appropriated as the amount allocated to the State under 
this part (other than section 1120(e)) bears to the total amount 
allocated to all States under this part (other than section 1120(e)).

   ``PART A--IMPROVING BASIC PROGRAMS OPERATED BY LOCAL EDUCATIONAL 
                                AGENCIES

                ``Subpart 1--Basic Program Requirements

``SEC. 1111. STATE PLANS.

    ``(a) Plans Required.--
        ``(1) In general.--Any State desiring to receive a grant under 
    this part shall submit to the Secretary a plan, developed in 
    consultation with local educational agencies, teachers, pupil 
    services personnel, administrators, other staff, and parents, that 
    satisfies the requirements of this section and that is coordinated 
    with other programs under this Act, the Goals 2000: Educate America 
    Act, and other Acts, as appropriate, consistent with section 14306.
        ``(2) Consolidation plan.--A State plan submitted under 
    paragraph (1) may be submitted as part of a consolidation plan 
    under section 14302.
    ``(b) Standards and Assessments.--
        ``(1) Challenging standards.--(A) Each State plan shall 
    demonstrate that the State has developed or adopted challenging 
    content standards and challenging student performance standards 
    that will be used by the State, its local educational agencies, and 
    its schools to carry out this part, except that a State shall not 
    be required to submit such standards to the Secretary.
        ``(B) If a State has State content standards or State student 
    performance standards developed under title III of the Goals 2000: 
    Educate America Act and an aligned set of assessments for all 
    students developed under such title, or, if not developed under 
    such title, adopted under another process, the State shall use such 
    standards and assessments, modified, if necessary, to conform with 
    the requirements of subparagraphs (A) and (D) of this paragraph, 
    and paragraphs (2) and (3).
        ``(C) If a State has not adopted State content standards and 
    State student performance standards for all students, the State 
    plan shall include a strategy and schedule for developing State 
    content standards and State student performance standards for 
    elementary and secondary school children served under this part in 
    subjects as determined by the State, but including at least 
    mathematics and reading or language arts by the end of the one-year 
    period described in paragraph (6), which standards shall include 
    the same knowledge, skills, and levels of performance expected of 
    all children.
        ``(D) Standards under this paragraph shall include--
            ``(i) challenging content standards in academic subjects 
        that--
                ``(I) specify what children are expected to know and be 
            able to do;
                ``(II) contain coherent and rigorous content; and
                ``(III) encourage the teaching of advanced skills;
            ``(ii) challenging student performance standards that--
                ``(I) are aligned with the State's content standards;
                ``(II) describe two levels of high performance, 
            proficient and advanced, that determine how well children 
            are mastering the material in the State content standards; 
            and
                ``(III) describe a third level of performance, 
            partially proficient, to provide complete information about 
            the progress of the lower performing children toward 
            achieving to the proficient and advanced levels of 
            performance.
        ``(E) For the subjects in which students will be served under 
    this part, but for which a State is not required by subparagraphs 
    (A), (B), and (C) to develop, and has not otherwise developed such 
    standards, the State plan shall describe a strategy for ensuring 
    that such students are taught the same knowledge and skills and 
    held to the same expectations as are all children.
        ``(2) Yearly progress.--
            ``(A) Each State plan shall demonstrate, based on 
        assessments described under paragraph (3), what constitutes 
        adequate yearly progress of--
                ``(i) any school served under this part toward enabling 
            children to meet the State's student performance standards; 
            and
                ``(ii) any local educational agency that received funds 
            under this part toward enabling children in schools 
            receiving assistance under this part to meet the State's 
            student performance standards.
            ``(B) Adequate yearly progress shall be defined in a 
        manner--
                ``(i) that is consistent with guidelines established by 
            the Secretary that result in continuous and substantial 
            yearly improvement of each local educational agency and 
            school sufficient to achieve the goal of all children 
            served under this part meeting the State's proficient and 
            advanced levels of performance, particularly economically 
            disadvantaged and limited English proficient children; and
                ``(ii) that links progress primarily to performance on 
            the assessments carried out under this section while 
            permitting progress to be established in part through the 
            use of other measures.
        ``(3) Assessments.--Each State plan shall demonstrate that the 
    State has developed or adopted a set of high-quality, yearly 
    student assessments, including assessments in at least mathematics 
    and reading or language arts, that will be used as the primary 
    means of determining the yearly performance of each local 
    educational agency and school served under this part in enabling 
    all children served under this part to meet the State's student 
    performance standards. Such assessments shall--
            ``(A) be the same assessments used to measure the 
        performance of all children, if the State measures the 
        performance of all children;
            ``(B) be aligned with the State's challenging content and 
        student performance standards and provide coherent information 
        about student attainment of such standards;
            ``(C) be used for purposes for which such assessments are 
        valid and reliable, and be consistent with relevant, nationally 
        recognized professional and technical standards for such 
        assessments;
            ``(D) measure the proficiency of students in the academic 
        subjects in which a State has adopted challenging content and 
        student performance standards and be administered at some time 
        during--
                ``(i) grades 3 through 5;
                ``(ii) grades 6 through 9; and
                ``(iii) grades 10 through 12;
            ``(E) involve multiple up-to-date measures of student 
        performance, including measures that assess higher order 
        thinking skills and understanding;
            ``(F) provide for--
                ``(i) the participation in such assessments of all 
            students;
                ``(ii) the reasonable adaptations and accommodations 
            for students with diverse learning needs, necessary to 
            measure the achievement of such students relative to State 
            content standards; and
                ``(iii) the inclusion of limited English proficient 
            students who shall be assessed, to the extent practicable, 
            in the language and form most likely to yield accurate and 
            reliable information on what such students know and can do, 
            to determine such students' mastery of skills in subjects 
            other than English;
            ``(G) include students who have attended schools in a local 
        educational agency for a full academic year but have not 
        attended a single school for a full academic year, however the 
        performance of students who have attended more than one school 
        in the local educational agency in any academic year shall be 
        used only in determining the progress of the local educational 
        agency;
            ``(H) provide individual student interpretive and 
        descriptive reports, which shall include scores, or other 
        information on the attainment of student performance standards; 
        and
            ``(I) enable results to be disaggregated within each State, 
        local educational agency, and school by gender, by each major 
        racial and ethnic group, by English proficiency status, by 
        migrant status, by students with disabilities as compared to 
        nondisabled students, and by economically disadvantaged 
        students as compared to students who are not economically 
        disadvantaged.
        ``(4) Special rule.--Assessment measures that do not meet the 
    requirements of paragraph (3)(C) may be included as one of the 
    multiple measures, if a State includes in the State plan 
    information regarding the State's efforts to validate such 
    measures.
        ``(5) Language assessments.--Each State plan shall identify the 
    languages other than English that are present in the participating 
    student population and indicate the languages for which yearly 
    student assessments are not available and are needed. The State 
    shall make every effort to develop such assessments and may request 
    assistance from the Secretary if linguistically accessible 
    assessment measures are needed. Upon request, the Secretary shall 
    assist with the identification of appropriate assessment measures 
    in the needed languages through the Office of Bilingual Education 
    and Minority Languages Affairs.
        ``(6) Standard and assessment development.--(A) A State that 
    does not have challenging State content standards and challenging 
    State student performance standards, in at least mathematics and 
    reading or language arts, shall develop such standards within one 
    year of receiving funds under this part after the first fiscal year 
    for which such State receives such funds after the date of 
    enactment of the Improving America's Schools Act of 1994.
        ``(B) A State that does not have assessments that meet the 
    requirements of paragraph (3) in at least mathematics and reading 
    or language arts shall develop and test such assessments within 
    four years (one year of which shall be used for field testing such 
    assessment), of receiving funds under this part after the first 
    fiscal year for which such State receives such funds after the date 
    of enactment of the Improving America's Schools Act of 1994 and 
    shall develop benchmarks of progress toward the development of such 
    assessments that meet the requirements of paragraph (3), including 
    periodic updates.
        ``(C) The Secretary may extend for one additional year the time 
    for testing new assessments under subparagraph (B) upon the request 
    of the State and the submission of a strategy to correct problems 
    identified in the field testing of such new assessments.
        ``(D) If, after the one-year period described in subparagraph 
    (A), a State does not have challenging State content and 
    challenging student performance standards in at least mathematics 
    and reading or language arts, a State shall adopt a set of 
    standards in these subjects such as the standards and assessments 
    contained in other State plans the Secretary has approved.
        ``(E) If, after the four-year period described in subparagraph 
    (B), a State does not have assessments, in at least mathematics and 
    reading or language arts, that meet the requirement of paragraph 
    (3), and is denied an extension under subparagraph (C), a State 
    shall adopt an assessment that meets the requirement of paragraph 
    (3) such as one contained in other State plans the Secretary has 
    approved.
        ``(7) Transitional assessments.--(A) If a State does not have 
    assessments that meet the requirements of paragraph (3) and 
    proposes to develop such assessments under paragraph (6)(B), the 
    State may propose to use a transitional set of yearly statewide 
    assessments that will assess the performance of complex skills and 
    challenging subject matter.
        ``(B) For any year in which a State uses transitional 
    assessments, the State shall devise a procedure for identifying 
    local educational agencies under paragraphs (3) and (7) of section 
    1116(d), and schools under paragraphs (1) and (7) of section 
    1116(c), that rely on accurate information about the academic 
    progress of each such local educational agency and school.
        ``(8) Requirement.--Each State plan shall describe--
            ``(A) how the State educational agency will help each local 
        educational agency and school affected by the State plan 
        develop the capacity to comply with each of the requirements of 
        sections 1112(c)(1)(D), 1114(b), and 1115(c) that is applicable 
        to such agency or school; and
            ``(B) such other factors the State deems appropriate (which 
        may include opportunity-to-learn standards or strategies 
        developed under the Goals 2000: Educate America Act) to provide 
        students an opportunity to achieve the knowledge and skills 
        described in the challenging content standards adopted by the 
        State.
    ``(c) Other Provisions To Support Teaching and Learning.--Each 
State plan shall contain assurances that--
        ``(1)(A) the State educational agency will implement a system 
    of school support teams under section 1117(c), including provision 
    of necessary professional development for those teams;
        ``(B) the State educational agency will work with other 
    agencies, including educational service agencies or other local 
    consortia, and institutions to provide technical assistance to 
    local educational agencies and schools to carry out the State 
    educational agency's responsibilities under this part, including 
    technical assistance in providing professional development under 
    section 1119 and technical assistance under section 1117; and
        ``(C)(i) where educational service agencies exist, the State 
    educational agency will consider providing professional development 
    and technical assistance through such agencies; and
        ``(ii) where educational service agencies do not exist, the 
    State educational agency will consider providing professional 
    development and technical assistance through other cooperative 
    agreements such as through a consortium of local educational 
    agencies;
        ``(2) the State educational agency will notify local 
    educational agencies and the public of the standards and 
    assessments developed under this section, and of the authority to 
    operate schoolwide programs, and will fulfill the State educational 
    agency's responsibilities regarding local educational agency 
    improvement and school improvement under section 1116, including 
    such corrective actions as are necessary;
        ``(3) the State educational agency will provide the least 
    restrictive and burdensome regulations for local educational 
    agencies and individual schools participating in a program assisted 
    under this part;
        ``(4) the State educational agency will encourage the use of 
    funds from other Federal, State, and local sources for schoolwide 
    reform in schoolwide programs under section 1114;
        ``(5) the Committee of Practitioners established under section 
    1603(b) will be substantially involved in the development of the 
    plan and will continue to be involved in monitoring the plan's 
    implementation by the State; and
        ``(6) the State will coordinate activities funded under this 
    part with school-to-work, vocational education, cooperative 
    education and mentoring programs, and apprenticeship programs 
    involving business, labor, and industry, as appropriate.
    ``(d) Peer Review and Secretarial Approval.--
        ``(1) In general.--The Secretary shall--
            ``(A) establish a peer review process to assist in the 
        review and recommendations for revision of State plans;
            ``(B) appoint individuals to the peer review process who 
        are representative of State educational agencies, local 
        educational agencies, teachers, and parents;
            ``(C) following an initial peer review, approve a State 
        plan the Secretary determines meets the requirements of 
        subsections (a), (b), and (c);
            ``(D) if the Secretary determines that the State plan does 
        not meet the requirements of subsection (a), (b), or (c), 
        immediately notify the State of such determination and the 
        reasons for such determination;
            ``(E) not decline to approve a State's plan before--
                ``(i) offering the State an opportunity to revise its 
            plan;
                ``(ii) providing technical assistance in order to 
            assist the State to meet the requirements under subsections 
            (a), (b), and (c); and
                ``(iii) providing a hearing; and
            ``(F) have the authority to disapprove a State plan for not 
        meeting the requirements of this part, but shall not have the 
        authority to require a State, as a condition of approval of the 
        State plan, to include in, or delete from, such plan one or 
        more specific elements of the State's content standards or to 
        use specific assessment instruments or items.
        ``(2) Withholding.--The Secretary may withhold funds for State 
    administration and activities under section 1117 until the 
    Secretary determines that the State plan meets the requirements of 
    this section.
    ``(e) Duration of the Plan.--
        ``(1) In general.--Each State plan shall--
            ``(A) remain in effect for the duration of the State's 
        participation under this part; and
            ``(B) be periodically reviewed and revised by the State, as 
        necessary, to reflect changes in the State's strategies and 
        programs under this part.
        ``(2) Additional information.--If the State makes significant 
    changes in its plan, such as the adoption of new State content 
    standards and State student performance standards, new assessments, 
    or a new definition of adequate progress, the State shall submit 
    such information to the Secretary.
    ``(f) Limitation on Conditions.--Nothing in this part shall be 
construed 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 content or student performance 
standards and assessments, opportunity-to-learn standards or 
strategies, curriculum, or program of instruction, as a condition of 
eligibility to receive funds under this part.
    ``(g) Prohibition.--Nothing in this Act shall be construed to 
require any State educational agency, local educational agency, or 
school, to implement opportunity-to-learn standards or strategies 
developed by such State under the Goals 2000: Educate America Act.
    ``(h) Special Rule.--If the aggregate State expenditure by a State 
educational agency for the operation of elementary and secondary 
education programs in the State is less than such agency's aggregate 
Federal expenditure for the State operation of all Federal elementary 
and secondary education programs, then the State plan shall include 
assurances and specific provisions that such State will provide State 
expenditures for the operation of elementary and secondary education 
programs equal to or exceeding the level of Federal expenditures for 
such operation by October 1, 1998.

``SEC. 1112. LOCAL EDUCATIONAL AGENCY PLANS.

    ``(a) Plans Required.--
        ``(1) Subgrants.--A local educational agency may receive a 
    subgrant under this part for any fiscal year only if such agency 
    has on file with the State educational agency a plan, approved by 
    the State educational agency, that is coordinated with other 
    programs under this Act, the Goals 2000: Educate America Act, and 
    other Acts, as appropriate, as specified in section 14306.
        ``(2) Consolidated application.--The plan may be submitted as 
    part of a consolidated application under section 14304.
    ``(b) Plan Provisions.--Each local educational agency plan shall 
include--
        ``(1) a description of additional high-quality student 
    assessments, if any, other than the assessments described in the 
    State plan under section 1111, that the local educational agency 
    and schools served under this part will use to--
            ``(A) determine the success of children served under this 
        part in meeting the State's student performance standards and 
        provide information to teachers, parents, and students on the 
        progress being made toward meeting the State student 
        performance standards described in section 1111(b)(1)(D)(ii);
            ``(B) assist in diagnosis, teaching, and learning in the 
        classroom in ways that best enable children served under this 
        part to meet State standards and do well in the local 
        curriculum; and
            ``(C) determine what revisions are needed to projects under 
        this part so that such children will meet the State's student 
        performance standards;
        ``(2) at the local educational agency's discretion, a 
    description of any other indicators that will be used in addition 
    to the assessments described in paragraph (1) for the uses 
    described in such paragraph;
        ``(3) a description of the strategy the local educational 
    agency will use to provide professional development for teachers, 
    and, where appropriate, pupil services personnel, administrators, 
    parents and other staff, including local educational agency level 
    staff in accordance with section 1119;
        ``(4) a description of how the local educational agency will 
    coordinate and integrate services provided under this part with 
    other educational services at the local educational agency or 
    individual school level, such as--
            ``(A) Even Start, Head Start, and other preschool programs, 
        including plans for the transition of participants in such 
        programs to local elementary school programs, vocational 
        education programs, and school-to-work transition programs; and
            ``(B) services for children with limited English 
        proficiency or with disabilities, migratory children served 
        under part C or who were formerly eligible for services under 
        part C in the two-year period preceding the date of the 
        enactment of the Improving America's School Act of 1994, 
        neglected or delinquent youth and youth at risk of dropping out 
        served under part D, homeless children, and immigrant children 
        in order to increase program effectiveness, eliminate 
        duplication, and reduce fragmentation of the instructional 
        program;
        ``(5) a description of the poverty criteria that will be used 
    to select school attendance areas under section 1113;
        ``(6) a description of how teachers, in consultation with 
    parents, administrators, and pupil services personnel, in targeted 
    assistance schools under section 1115, will identify the eligible 
    children most in need of services under this part;
        ``(7) a general description of the nature of the programs to be 
    conducted by such agency's schools under sections 1114 and 1115 
    and, where appropriate, educational services outside such schools 
    for children living in local institutions for neglected or 
    delinquent children, for neglected and delinquent children in 
    community day school programs, and for eligible homeless children;
        ``(8) a description of how the local educational agency will 
    ensure that migratory children and formerly migratory children who 
    are eligible to receive services under this part are selected to 
    receive such services on the same basis as other children who are 
    selected to receive services under this part;
        ``(9) where appropriate, a description of how the local 
    educational agency will use funds under this part to support 
    preschool programs for children, particularly children 
    participating in a Head Start or Even Start program, which services 
    may be provided directly by the local educational agency or through 
    a subcontract with the local Head Start agency designated by the 
    Secretary of Health and Human Services under section 641 of the 
    Head Start Act, agencies operating Even Start programs, or another 
    comparable public early childhood development program.
    ``(c) Assurances.--
        ``(1) In general.--Each local educational agency plan shall 
    provide assurances that the local educational agency will--
            ``(A) inform eligible schools and parents of schoolwide 
        project authority;
            ``(B) provide technical assistance and support to 
        schoolwide programs;
            ``(C) work in consultation with schools as the schools 
        develop the schools' plans pursuant to section 1114 and assist 
        schools as the schools implement such plans or undertake 
        activities pursuant to section 1115 so that each school can 
        make adequate yearly progress toward meeting the State content 
        standards and State student performance standards;
            ``(D) fulfill such agency's school improvement 
        responsibilities under section 1116, including taking 
        corrective actions under section 1116(c)(4);
            ``(E) coordinate and collaborate, to the extent feasible 
        and necessary as determined by the local educational agency, 
        with other agencies providing services to children, youth, and 
        families, including health and social services;
            ``(F) provide services to eligible children attending 
        private elementary and secondary schools in accordance with 
        section 1120, and timely and meaningful consultation with 
        private school officials regarding such services;
            ``(G) take into account the experience of model programs 
        for the educationally disadvantaged, and the findings of 
        relevant research indicating that services may be most 
        effective if focused on students in the earliest grades at 
        schools that receive funds under this part; and
            ``(H) beginning in fiscal year 1997 and in the case that a 
        local educational agency chooses to use funds under this part 
        to provide early childhood development services to low-income 
        children below the age of compulsory school attendance, ensure 
        that such services comply with the performance standards 
        established under section 641A(a) of the Head Start Act or 
        under section 651 of such Act, as such section 651 was in 
        effect on the day preceding the date of enactment of the Human 
        Services Amendments of 1994.
        ``(2) Special rule.--In carrying out subparagraph (H) of 
    paragraph (1) the Secretary--
            ``(A) in fiscal year 1995, shall consult with the Secretary 
        of Health and Human Services on the implementation of such 
        subparagraph and shall establish procedures (taking into 
        consideration existing State and local laws, and local teacher 
        contracts) to assist local educational agencies to comply with 
        such subparagraph; and
            ``(B) in fiscal year 1996, shall disseminate to local 
        educational agencies the Head Start Performance Standards 
        revised pursuant to section 641A(a) of the Head Start Act, and 
        such agencies effected by such subparagraph shall plan for the 
        implementation of such subparagraph (taking into consideration 
        existing State and local laws, and local teacher contracts), 
        including pursuing the availability of other Federal, State, 
        and local funding sources to assist in compliance with such 
        subparagraph.
        ``(3) Inapplicability.--The provisions of this subsection shall 
    not apply to preschool programs using the Even Start model or to 
    Even Start programs which are expanded through the use of funds 
    under this part.
    ``(d) Plan Development and Duration.--Each local educational agency 
plan shall--
        ``(1) be developed in consultation with teachers, including 
    vocational teachers, and pupil services personnel, where 
    appropriate, and parents of children in schools served under this 
    part; and
        ``(2)(A) remain in effect for the duration of the local 
    educational agency's participation under this part; and
        ``(B) periodically be reviewed and revised, as necessary, to 
    reflect changes in the local educational agency's strategies and 
    programs.
    ``(e) State Approval.--
        ``(1) In general.--Each local educational agency plan shall be 
    filed according to a schedule established by the State educational 
    agency, except that a local educational agency shall have not more 
    than one year after the date of enactment of the Improving 
    America's Schools Act of 1994 to have such plan provisionally 
    approved by the State educational agency and not more than two 
    years after the date of enactment of such Act to have such plan 
    finally approved by the State educational agency.
        ``(2) Approval.--The State educational agency shall approve a 
    local educational agency's plan only if the State educational 
    agency determines that the local educational agency's plan will 
    enable schools served under this part to substantially help all 
    children served under this part meet the standards expected of all 
    children described in section 1111(b)(1).
        ``(3) Review.--The State educational agency shall review the 
    local educational agency's plan to determine if such agency's 
    professional development activities are in accordance with section 
    1119.
    ``(f) Program Responsibility.--The local educational agency plan 
shall reflect the shared responsibility of schools, teachers, and the 
local educational agency in making decisions regarding activities under 
sections 1114 and 1115.

``SEC. 1113. ELIGIBLE SCHOOL ATTENDANCE AREAS.

    ``(a) Determination.--
        ``(1) In general.--A local educational agency shall use funds 
    received under this part only in eligible school attendance areas.
        ``(2) Eligible school attendance areas.--For the purposes of 
    this part--
            ``(A) the term `school attendance area' means, in relation 
        to a particular school, the geographical area in which the 
        children who are normally served by that school reside; and
            ``(B) the term `eligible school attendance area' means a 
        school attendance area in which the percentage of children from 
        low-income families is at least as high as the percentage of 
        children from low-income families in the local educational 
        agency as a whole.
        ``(3) Ranking order.--If funds allocated in accordance with 
    subsection (c) are insufficient to serve all eligible school 
    attendance areas, a local educational agency shall--
            ``(A) annually rank, without regard to grade spans, such 
        agency's eligible school attendance areas in which the 
        concentration of children from low-income families exceeds 75 
        percent from highest to lowest according to the percentage of 
        children from low-income families; and
            ``(B) serve such eligible school attendance areas in rank 
        order.
        ``(4) Remaining funds.--If funds remain after serving all 
    eligible school attendance areas under paragraph (3), a local 
    educational agency shall--
            ``(A) annually rank such agency's remaining eligible school 
        attendance areas from highest to lowest either by grade span or 
        for the entire local educational agency according to the 
        percentage of children from low-income families; and
            ``(B) serve such eligible school attendance areas in rank 
        order either within each grade-span grouping or within the 
        local educational agency as a whole.
        ``(5) Measures.--The local educational agency shall use the 
    same measure of poverty, which measure shall be the number of 
    children ages 5 through 17 in poverty counted in the most recent 
    census data approved by the Secretary, the number of children 
    eligible for free and reduced priced lunches under the National 
    School Lunch Act, the number of children in families receiving 
    assistance under the Aid to Families with Dependent Children 
    program, or the number of children eligible to receive medical 
    assistance under the Medicaid program, or a composite of such 
    indicators, with respect to all school attendance areas in the 
    local educational agency--
            ``(A) to identify eligible school attendance areas;
            ``(B) to determine the ranking of each area; and
            ``(C) to determine allocations under subsection (c).
        ``(6) Exception.--This subsection shall not apply to a local 
    educational agency with a total enrollment of less than 1,000 
    children.
        ``(7) Waiver for desegregation plans.--The Secretary may 
    approve a local educational agency's written request for a waiver 
    of the requirements of subsections (a) and (c), and permit such 
    agency to treat as eligible, and serve, any school that children 
    attend with a State-ordered or a court-ordered school desegregation 
    plan or a plan that continues to be implemented in accordance with 
    a State-ordered or court-ordered desegregation plan, if (A) the 
    number of economically disadvantaged children enrolled in the 
    school is at least 25 percent of the school's total enrollment; and 
    (B) the Secretary determines on the basis of a written request from 
    such agency and in accordance with such criteria as the Secretary 
    establishes, that approval of that request would further the 
    purposes of this part.
    ``(b) Local Educational Agency Discretion.--
        ``(1) In general.--Notwithstanding subsection (a)(2), a local 
    educational agency may--
            ``(A) designate as eligible any school attendance area or 
        school in which at least 35 percent of the children are from 
        low-income families;
            ``(B) use funds received under this part in a school that 
        is not in an eligible school attendance area, if the percentage 
        of children from low-income families enrolled in the school is 
        equal to or greater than the percentage of such children in a 
        participating school attendance area of such agency; and
            ``(C) elect not to serve an eligible school attendance area 
        or eligible school that has a higher percentage of children 
        from low-income families if--
                ``(i) the school meets the comparability requirements 
            of section 1120A(c);
                ``(ii) the school is receiving supplemental funds from 
            other State or local sources that are spent according to 
            the requirements of section 1114 or 1115; and
                ``(iii) the funds expended from such other sources 
            equal or exceed the amount that would be provided under 
            this part.
        ``(2) Special rule.--Notwithstanding paragraph (1)(C), the 
    number of children attending private elementary and secondary 
    schools who are to receive services, and the assistance such 
    children are to receive under this part, shall be determined 
    without regard to whether the public school attendance area in 
    which such children reside is assisted under paragraph (1).
    ``(c) Allocations.--
        ``(1) In general.--A local educational agency shall allocate 
    funds received under this part to eligible school attendance areas 
    or eligible schools, identified under subsection (a) or (b), in 
    rank order, on the basis of the total number of children from low-
    income families in each area or school.
        ``(2) Special rule.--(A) Except as provided in subparagraph 
    (B), the per pupil amount of funds allocated to each school 
    attendance area or school under paragraph (1) shall be at least 125 
    percent of the per pupil amount of funds a local educational agency 
    received for that year under the poverty criteria described by the 
    local educational agency in the plan submitted under section 1112, 
    except that this paragraph shall not apply to a local educational 
    agency that only serves schools in which the percentage of such 
    children is 35 percent or greater.
        ``(B) A local educational agency may reduce the amount of funds 
    allocated under subparagraph (A) for a school attendance area or 
    school by the amount of any supplemental State and local funds 
    expended in that school attendance area or school for programs that 
    meet the requirements of section 1114 or 1115.
        ``(3) Reservation.--A local educational agency shall reserve 
    such funds as are necessary under this part to provide services 
    comparable to those provided to children in schools funded under 
    this part to serve--
            ``(A) where appropriate, eligible homeless children who do 
        not attend participating schools, including providing 
        educationally related support services to children in shelters;
            ``(B) children in local institutions for neglected or 
        delinquent children; and
            ``(C) where appropriate, neglected and delinquent children 
        in community day school programs.

``SEC. 1114. SCHOOLWIDE PROGRAMS.

    ``(a) Use of Funds for Schoolwide Programs.--
        ``(1) In general.--A local educational agency may use funds 
    under this part, in combination with other Federal, State, and 
    local funds, in order to upgrade the entire educational program in 
    a school described in subparagraph (A) or (B) if, for the initial 
    year of the schoolwide program, the school meets either of the 
    following criteria:
            ``(A) For the school year 1995-1996--
                ``(i) the school serves an eligible school attendance 
            area in which not less than 60 percent of the children are 
            from low-income families; or
                ``(ii) not less than 60 percent of the children 
            enrolled in the school are from such families.
            ``(B) For the school year 1996-1997 and subsequent years--
                ``(i) the school serves an eligible school attendance 
            area in which not less than 50 percent of the children are 
            from low-income families; or
                ``(ii) not less than 50 percent of the children 
            enrolled in the school are from such families.
        ``(2) State assurances.--(A) A local educational agency may 
    start new schoolwide programs under this section only after the 
    State educational agency provides written information to each local 
    educational agency in the State that demonstrates that such State 
    agency has established the statewide system of support and 
    improvement required by subsections (c)(1) and (e) of section 1117.
        ``(B) A school that desires to initiate a schoolwide program 
    under this section prior to the establishment of the statewide 
    system of support and improvement required in subsections (c)(1) 
    and (e) of section 1117 shall demonstrate to the local educational 
    agency that such school has received high quality technical 
    assistance and support from other providers of assistance such as 
    comprehensive technical assistance centers, regional laboratories, 
    institutions of higher education, educational service agencies, or 
    other local consortia.
        ``(3) Identification.--(A) No school participating in a 
    schoolwide program shall be required to identify particular 
    children under this part as eligible to participate in a schoolwide 
    program or to provide supplemental services to such children.
        ``(B) A school participating in a schoolwide program shall use 
    funds available to carry out this section only to supplement the 
    amount of funds that would, in the absence of funds under this 
    part, be made available from non-Federal sources for the school, 
    including funds needed to provide services that are required by law 
    for children with disabilities and children with limited English 
    proficiency.
        ``(4) Special rule.--(A) Except as provided in subsection (b), 
    the Secretary may, through publication of a notice in the Federal 
    Register, exempt schoolwide programs under this section from 
    statutory or regulatory provisions of any other noncompetitive 
    formula grant program administered by the Secretary, or any 
    discretionary grant program administered by the Secretary (other 
    than formula or discretionary grant programs under the Individuals 
    with Disabilities Education Act), to support schoolwide programs, 
    if the intent and purposes of such other programs are met.
        ``(B) A school that chooses to use funds from such other 
    programs shall not be relieved of the requirements relating to 
    health, safety, civil rights, gender equity, student and parental 
    participation and involvement, services to private school children, 
    maintenance of effort, comparability of services, uses of Federal 
    funds to supplement, not supplant non-Federal funds, or the 
    distribution of funds to State or local educational agencies that 
    apply to the receipt of funds from such programs.
        ``(5) Professional development.--Each school receiving funds 
    under this part for any fiscal year shall devote sufficient 
    resources to effectively carry out the activities described in 
    subsection (b)(1)(D) in accordance with section 1119 for such 
    fiscal year, except that a school may enter into a consortium with 
    another school to carry out such activities.
    ``(b) Components of a Schoolwide Program.--
        ``(1) In general.--A schoolwide program shall include the 
    following components:
            ``(A) A comprehensive needs assessment of the entire school 
        that is based on information on the performance of children in 
        relation to the State content standards and the State student 
        performance standards described in section 1111(b)(1).
            ``(B) Schoolwide reform strategies that--
                ``(i) provide opportunities for all children to meet 
            the State's proficient and advanced levels of student 
            performance described in section 1111(b)(1)(D);
                ``(ii) are based on effective means of improving the 
            achievement of children;
                ``(iii) use effective instructional strategies, which 
            may include the integration of vocational and academic 
            learning (including applied learning and team teaching 
            strategies), that--

                    ``(I) increase the amount and quality of learning 
                time, such as providing an extended school year and 
                before- and after-school and summer programs and 
                opportunities, and help provide an enriched and 
                accelerated curriculum; and
                    ``(II) include strategies for meeting the 
                educational needs of historically underserved 
                populations, including girls and women;

                ``(iv)(I) address the needs of all children in the 
            school, but particularly the needs of children who are 
            members of the target population of any program that is 
            included in the schoolwide program, which may include--

                    ``(aa) counseling, pupil services, and mentoring 
                services;
                    ``(bb) college and career awareness and 
                preparation, such as college and career guidance, 
                comprehensive career development, occupational 
                information, enhancement of employability skills and 
                occupational skills, personal finance education, job 
                placement services, and innovative teaching methods 
                which may include applied learning and team teaching 
                strategies;
                    ``(cc) services to prepare students for the 
                transition from school to work, including the formation 
                of partnerships between elementary, middle, and 
                secondary schools and local businesses, and the 
                integration of school-based and work-based learning; 
                and
                    ``(dd) incorporation of gender-equitable methods 
                and practices; and

                ``(II) address how the school will determine if such 
            needs have been met; and
                ``(vii) are consistent with, and are designed to 
            implement, the State and local improvement plans, if any, 
            approved under title III of the Goals 2000: Educate America 
            Act.
            ``(C) Instruction by highly qualified professional staff.
            ``(D) In accordance with section 1119 and subsection 
        (a)(5), professional development for teachers and aides, and, 
        where appropriate, pupil services personnel, parents, 
        principals, and other staff to enable all children in the 
        school to meet the State's student performance standards.
            ``(E) Strategies to increase parental involvement, such as 
        family literary services.
            ``(F) Plans for assisting preschool children in the 
        transition from early childhood programs, such as Head Start, 
        Even Start, or a State-run preschool program, to local 
        elementary school programs.
            ``(G) Measures to include teachers in the decisions 
        regarding the use of assessments described in section 
        1112(b)(1) in order to provide information on, and to improve, 
        the performance of individual students and the overall 
        instructional program.
            ``(H) Activities to ensure that students who experience 
        difficulty mastering any of the standards required by section 
        1111(b) during the course of the school year shall be provided 
        with effective, timely additional assistance, which shall 
        include--
                ``(i) measures to ensure that students' difficulties 
            are identified on a timely basis and to provide sufficient 
            information on which to base effective assistance;
                ``(ii) to the extent the school determines feasible 
            using funds under this part, periodic training for teachers 
            in how to identify such difficulties and to provide 
            assistance to individual students; and
                ``(iii) for any student who has not met such standards, 
            teacher-parent conferences, at which time the teacher and 
            parents shall discuss--

                    ``(I) what the school will do to help the student 
                meet such standards;

                    ``(II) what the parents can do to help the student 
                improve the student's performance; and
                    ``(III) additional assistance which may be 
                available to the student at the school or elsewhere in 
                the community.

        ``(2) Plan.--(A) Any eligible school that desires to operate a 
    schoolwide program shall first develop (or amend a plan for such a 
    program that was in existence before the date of enactment of the 
    Improving America's Schools Act of 1994), in consultation with the 
    local educational agency and its school support team or other 
    technical assistance provider under subsections (c)(1) and (e) of 
    section 1117, a comprehensive plan for reforming the total 
    instructional program in the school that--
            ``(i) incorporates the components described in paragraph 
        (1);
            ``(ii) describes how the school will use resources under 
        this part and from other sources to implement those components;
            ``(iii) includes a list of State and local educational 
        agency programs and other Federal programs under subsection 
        (a)(4) that will be included in the schoolwide program;
            ``(iv) describes how the school will provide individual 
        student assessment results, including an interpretation of 
        those results, to the parents of a child who participates in 
        the assessment required by section 1111(b)(3);
            ``(v) provides for the collection of data on the 
        achievement and assessment results of students disaggregated by 
        gender, major ethnic or racial groups, limited English 
        proficiency status, migrant students, and by children with 
        disabilities as compared to other students, and by economically 
        disadvantaged students as compared to students who are not 
        economically disadvantaged;
            ``(vi) seeks to produce statistically sound results for 
        each category for which assessment results are disaggregated 
        through the use of oversampling or other means; and
            ``(vii) provides for the public reporting of disaggregated 
        data only when such reporting is statistically sound.
        ``(B) Plans developed before a State has adopted standards and 
    a set of assessments that meet the criteria in paragraphs (1) and 
    (3) of section 1111(b) shall be based on an analysis of available 
    data on the achievement of students in the school and effective 
    instructional and school improvement practices.
        ``(C) The comprehensive plan shall be--
            ``(i) developed during a one-year period, unless--
                ``(I) the local educational agency, after considering 
            the recommendation of the technical assistance providers 
            under subsections (c) and (e) of section 1117, determines 
            that less time is needed to develop and implement the 
            schoolwide program; or
                ``(II) the school is operating a schoolwide program on 
            the day preceding the date of enactment of the Improving 
            America's Schools Act of 1994, in which case such school 
            may continue to operate such program, but shall develop a 
            new plan during the first year of assistance under such Act 
            to reflect the provisions of this section;
            ``(ii) developed with the involvement of the community to 
        be served and individuals who will carry out such plan, 
        including teachers, principals, other staff, and, where 
        appropriate, pupil services personnel, and parents, and, if the 
        plan relates to a secondary school, students from such school;
            ``(iii) in effect for the duration of the school's 
        participation under this part and reviewed and revised, as 
        necessary, by the school;
            ``(iv) available to the local educational agency, parents, 
        and the public, and the information contained in such plan 
        shall be translated, to the extent feasible, into any language 
        that a significant percentage of the parents of participating 
        children in the school speak as their primary language; and
            ``(v) where appropriate, developed in coordination with 
        programs under the School-to-Work Opportunities Act of 1994, 
        the Carl D. Perkins Vocational and Applied Technology Education 
        Act, and the National and Community Service Act of 1990.
    ``(c) Accountability.--A schoolwide program under this section 
shall be subject to the school improvement provisions of section 1116.

``SEC. 1115. TARGETED ASSISTANCE SCHOOLS.

    ``(a) In General.--In all schools selected to receive funds under 
section 1113(c) that are ineligible for a schoolwide program under 
section 1114, or that choose not to operate such a schoolwide program, 
a local educational agency may use funds received under this part only 
for programs that provide services to eligible children under 
subsection (b) identified as having the greatest need for special 
assistance.
    ``(b) Eligible Children.--
        ``(1) Eligible population.--(A) The eligible population for 
    services under this part is--
            ``(i) children not older than age 21 who are entitled to a 
        free public education through grade 12; and
            ``(ii) children who are not yet at a grade level where the 
        local educational agency provides a free public education, yet 
        are of an age at which such children can benefit from an 
        organized instructional program provided in a school or other 
        educational setting.
        ``(B) From the population described in subparagraph (A), 
    eligible children are children identified by the school as failing, 
    or most at risk of failing, to meet the State's challenging student 
    performance standards on the basis of multiple, educationally 
    related, objective criteria established by the local educational 
    agency and supplemented by the school, except that children from 
    preschool through grade two shall be selected solely on the basis 
    of such criteria as teacher judgment, interviews with parents, and 
    developmentally appropriate measures.
        ``(2) Children included.--(A)(i) Children who are economically 
    disadvantaged, children with disabilities, migrant children or 
    limited English proficient children, are eligible for services 
    under this part on the same basis as other children selected to 
    receive services under this part.
        ``(ii) Funds received under this part may not be used to 
    provide services that are otherwise required by law to be made 
    available to such children but may be used to coordinate or 
    supplement such services.
        ``(B) A child who, at any time in the two years preceding the 
    year for which the determination is made, participated in a Head 
    Start or Even Start program, is eligible for services under this 
    part.
        ``(C)(i) A child who, at any time in the two years preceding 
    the year for which the determination is made, received services 
    under the program for youth who are neglected, delinquent, or at 
    risk of dropping out under part D (or its predecessor authority) 
    may be eligible for services under this part.
        ``(ii) A child in a local institution for neglected or 
    delinquent children or attending a community day program for such 
    children may be eligible for services under this part.
        ``(D) A child who is homeless and attending any school in the 
    local educational agency may be eligible for services under this 
    part.
    ``(c) Components of a Targeted Assistance School Program.--
        ``(1) In general.--To assist targeted assistance schools and 
    local educational agencies to meet their responsibility to provide 
    for all their students served under this part the opportunity to 
    meet the State's student performance standards in subjects as 
    determined by the State, each targeted assistance program under 
    this section shall--
            ``(A) use such program's resources under this part to help 
        participating children meet such State student performance 
        standards expected for all children;
            ``(B) be based on effective means for improving achievement 
        of children;
            ``(C) ensure that planning for students served under this 
        part is incorporated into existing school planning;
            ``(D) use effective instructional strategies that--
                ``(i) give primary consideration to providing extended 
            learning time such as an extended school year, before- and 
            after-school, and summer, programs and opportunities;
                ``(ii) help provide an accelerated, high-quality 
            curriculum, including applied learning; and
                ``(iii) minimize removing children from the regular 
            classroom during regular school hours for instruction 
            provided under this part;
            ``(E) coordinate with and support the regular education 
        program, which may include--
                ``(i) counseling, mentoring, and other pupil services;
                ``(ii) college and career awareness and preparation, 
            such as college and career guidance, comprehensive career 
            development, occupational information, enhancement of 
            employability skills and occupational skills, personal 
            finance education, job placement services, and innovative 
            teaching methods which may include applied learning and 
            team teaching strategies;
                ``(iii) services to prepare students for the transition 
            from school to work, including the formation of 
            partnerships between elementary, middle, and secondary 
            schools and local businesses, and the integration of 
            school-based and work-based learning; and
                ``(iv) services to assist preschool children in the 
            transition from early childhood programs to elementary 
            school programs;
            ``(F) provide instruction by highly qualified staff;
            ``(G) in accordance with subsection (e)(3) and section 
        1119, provide opportunities for professional development with 
        resources provided under this part, and from other sources to 
        the extent feasible, for administrators and for teachers and 
        other school staff who work with participating children in 
        programs under this section or in the regular education 
        program; and
            ``(H) provide strategies to increase parental involvement, 
        such as family literary services.
        ``(2) Requirements.--Each school conducting a program under 
    this section shall assist participating children selected in 
    accordance with subsection (b) to meet the State's proficient and 
    advanced levels of performance by--
            ``(A) the coordination of resources provided under this 
        part with other resources to enable the children served to meet 
        the State content standards and State student performance 
        standards; and
            ``(B) reviewing, on an ongoing basis, the progress of 
        participating children and revising the targeted assistance 
        program, if necessary, to provide additional assistance to 
        enable such children to meet the State's challenging student 
        performance standards, such as an extended school year, before- 
        and after-school, and summer, programs and opportunities, 
        training for teachers regarding how to identify students that 
        require additional assistance, and training for teachers 
        regarding how to implement student performance standards in the 
        classroom.
    ``(d) Assignment of Personnel.--To promote the integration of staff 
supported with funds under this part and children served under this 
part into the regular school program and overall school planning and 
improvement efforts, public school personnel who are paid with funds 
received under this part may--
        ``(1) assume limited duties that are assigned to similar 
    personnel who are not so paid, including duties beyond classroom 
    instruction or that do not benefit participating children, so long 
    as the amount of time spent on such duties is the same proportion 
    of total work time as prevails with respect to similar personnel at 
    the same school;
        ``(2) participate in general professional development and 
    school planning activities; and
        ``(3) collaboratively teach with regular classroom teachers, if 
    such collaborative teaching directly benefits participating 
    children.
    ``(e) Special Rules.--
        ``(1) Simultaneous service.--Nothing in this section shall be 
    construed to prohibit a school from serving students served under 
    this section simultaneously with students with similar educational 
    needs, in the same educational settings where appropriate.
        ``(2) Comprehensive services.--If health, nutrition, and other 
    social services are not otherwise available to eligible children in 
    a targeted assistance school and such school, if appropriate, has 
    engaged in a comprehensive needs assessment and established a 
    collaborative partnership with local service providers, and if 
    funds are not reasonably available from other public or private 
    sources to provide services under this part, then a portion of the 
    funds provided under this part may be used as a last resort to 
    provide such services, including--
            ``(A) the provision of basic medical equipment, such as 
        eyeglasses and hearing aids;
            ``(B) compensation of a coordinator; and
            ``(C) professional development necessary to assist 
        teachers, pupil services personnel, other staff, and parents in 
        identifying and meeting the comprehensive needs of eligible 
        children.
        ``(3) Professional development.--Each school receiving funds 
    under this part for any fiscal year shall devote sufficient 
    resources to effectively carry out the professional development 
    activities described in subparagraph (G) of subsection (c)(1) in 
    accordance with section 1119, for such fiscal year, except that a 
    school may enter into a consortium with another school to carry out 
    such activities.

``SEC. 1115A. SCHOOL CHOICE.

    ``(a) Choice Programs.--A local educational agency may use funds 
under this part, in combination with State, local, and private funds, 
to develop and implement choice programs, for children eligible for 
assistance under this part, which permit parents to select the public 
school that their children will attend.
    ``(b) Choice Plan.--A local educational agency that chooses to 
implement a school choice plan shall first develop a comprehensive plan 
that includes assurances that--
        ``(1) all eligible students across grade levels will have equal 
    access to the program;
        ``(2) the program does not include schools which follow a 
    racially discriminatory policy;
        ``(3) describe how the school will use resources under this 
    part and from other sources to implement the plan;
        ``(4) describe how the school will provide individual student 
    assessment results, including an interpretation of such results, to 
    the parents of a child who participates in the assessment required 
    by section 1111(b)(3);
        ``(5) the plan will be developed with the involvement of the 
    community to be served and individuals who will carry out the plan, 
    including teachers, principals, and other staff, parents, and, if 
    the plan relates to a secondary school, students from the school;
        ``(6) the plan will be made available to parents and the 
    public;
        ``(7) the program will not include schools that do not receive 
    funds under this part;
        ``(8) the program will not use funds under this part to pay for 
    transportation costs;
        ``(9) both the sending and receiving schools agree to the 
    student transfer; and
        ``(10) such local educational agency will comply with the other 
    requirements of this part.
``SEC. 1116. ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL 
IMPROVEMENT.
    ``(a) Local Review.--Each local educational agency receiving funds 
under this part shall--
        ``(1) use the State assessments described in the State plan;
        ``(2) use any additional measures or indicators described in 
    the local educational agency's plan to review annually the progress 
    of each school served under this part to determine whether the 
    school is meeting, or making adequate progress as defined in 
    section 1111(b)(2)(A)(i) toward enabling its students to meet the 
    State's student performance standards described in the State plan;
        ``(3) publicize and disseminate to teachers and other staff, 
    parents, students, and the community, the results of the annual 
    review under paragraph (2) of all schools served under this part in 
    individual school performance profiles that include statistically 
    sound disaggregated results as required by section 1111(b)(3)(I); 
    and
        ``(4) provide the results of the local annual review to schools 
    so that the schools can continually refine the program of 
    instruction to help all children served under this part in those 
    schools meet the State's student performance standards.
    ``(b) Designation of Distinguished Schools.--Each State educational 
agency and local educational agency receiving funds under this part 
shall designate distinguished schools in accordance with section 1117.
    ``(c) School Improvement.--
        ``(1) In general.--A local educational agency shall identify 
    for school improvement any school served under this part that--
            ``(A) has been in program improvement under section 1020 of 
        the Elementary and Secondary Education Act of 1965 (as such 
        section was in effect on the day preceding the date of 
        enactment of the Improving America's Schools Act of 1994), for 
        at least two consecutive school years prior to such day;
            ``(B) has not made adequate progress as defined in the 
        State's plan under section 1111(b)(2)(A)(i) for two consecutive 
        school years, except that--
                ``(i) this subparagraph shall not apply to a school if 
            almost every student in such school is meeting the State's 
            advanced level of performance; or
                ``(ii) in the case of a targeted assistance school, 
            such school may be reviewed on the progress of only those 
            students that have been or are served under this part; or
            ``(C) has failed to meet the criteria established by the 
        State through the State's transitional procedure under section 
        1111(b)(7)(B) for two consecutive years.
        ``(2) Requirement.--(A) Each school identified under paragraph 
    (1) shall--
            ``(i) in consultation with parents, the local educational 
        agency, and the school support team, develop or revise a school 
        plan in ways that have the greatest likelihood of improving the 
        performance of participating children in meeting the State's 
        student performance standards, which may include reviewing the 
        schools' plan in the context of the opportunity-to-learn 
        standards or strategies developed by such State under the Goals 
        2000: Educate America Act; and
            ``(ii) submit the plan or revised plan to the local 
        educational agency for approval.
        ``(B) Before identifying a school for school improvement under 
    paragraph (1), the local educational agency shall provide the 
    school with an opportunity to review the school-level data, 
    including assessment data, on which such identification is based. 
    If the school believes that such identification for school 
    improvement is in error for statistical or other substantive 
    reasons, such school may provide evidence to the local educational 
    agency to support such belief.
        ``(C) During the first year immediately following such 
    identification, the school shall implement such school's plan or 
    revised plan.
        ``(3) Professional development.--(A) Each school identified 
    under paragraph (1) shall, as part of the school plan under 
    paragraph (2), improve the skills of its staff by providing 
    effective professional development activities. A school shall 
    demonstrate such school's compliance with this paragraph by--
            ``(i) devoting to such activities, over two consecutive 
        years, an amount equivalent to at least 10 percent of the funds 
        received by the school under this part during one fiscal year; 
        or
            ``(ii) otherwise demonstrating that such school is 
        effectively carrying out professional development activities.
        ``(B) A school may use funds from any source to meet the 
    requirements of this subsection.
        ``(C) Decisions about how to use the funds made available under 
    this part which the school makes available for professional 
    development shall be made by teachers, principals, and other school 
    staff in that school.
        ``(4) Technical assistance.--(A) For each school identified 
    under paragraph (1), the local educational agency shall provide 
    technical or other assistance as the school develops and implements 
    such school's plan or revised plan, such as a joint plan between 
    the local educational agency and school that addresses specific 
    elements of student performance problems and that specifies school 
    and local educational agency responsibilities under the plan, and 
    waivers or modifications of requirements of local educational 
    agency policy or regulation that impede the ability of the school 
    to educate students.
        ``(B) Such technical assistance may be provided directly by the 
    local educational agency, through mechanisms authorized under 
    section 1117, or with the local educational agency's approval, by 
    an institution of higher education, a private nonprofit 
    organization, an educational service agency, a comprehensive 
    regional assistance center under part A of title XIII, or other 
    entities with experience in helping schools improve achievement.
        ``(5) Corrective action.--(A) Except as provided in 
    subparagraph (C), after providing technical assistance pursuant to 
    paragraph (4) and taking other remediation measures, the local 
    educational agency may take corrective action at any time against a 
    school that has been identified under paragraph (1), but, during 
    the third year following identification under paragraph (1), shall 
    take such action against any school that still fails to make 
    adequate progress.
        ``(B)(i) Corrective actions are those, consistent with State 
    and local law, determined and made public and disseminated by the 
    local educational agency, which may include--
            ``(I) withholding funds;
            ``(II) interagency collaborative agreements between the 
        school and other public agencies to provide health, counseling, 
        and other social services needed to remove barriers to 
        learning;
            ``(III) revoking authority for a school to operate a 
        schoolwide program;
            ``(IV) decreasing decisionmaking authority at the school 
        level;
            ``(V) making alternative governance arrangements such as 
        the creation of a public charter school;
            ``(VI) reconstituting the school staff;
            ``(VII) authorizing students to transfer, including 
        transportation costs, to other public schools served by the 
        local educational agency; and
            ``(VIII) implementing opportunity-to-learn standards or 
        strategies developed by such State under the Goals 2000: 
        Educate America Act.
        ``(ii) Notwithstanding clause (i), corrective actions taken 
    pursuant to this part shall not include the actions described in 
    subclause (I), (III), (IV), (VI), or (VII) of clause (i) until the 
    State has developed assessments that meet the requirements of 
    subparagraph (C) of section 1111(b)(3).
        ``(C) Prior to implementing any corrective action, the local 
    educational agency may refrain from such corrective action for one 
    additional year to the extent that the failure to make progress can 
    be attributed to extenuating circumstances as determined by the 
    local educational agency.
        ``(D) A school that is no longer operating its schoolwide 
    program due to a corrective action may not resume operation of such 
    a program until the local educational agency determines that the 
    school has adequately reformed its schoolwide program plan to 
    enable the school to make adequate progress toward meeting the 
    State's challenging student performance standards.
        ``(6) State educational agency responsibilities.--The State 
    educational agency shall--
            ``(A) make technical assistance under section 1117 
        available to the schools farthest from meeting the State's 
        challenging student performance standards, if requested by the 
        school or local educational agency; and
            ``(B) if such agency determines that a local educational 
        agency failed to carry out the local educational agency's 
        responsibilities under paragraphs (4) and (5), take such 
        corrective actions as the State educational agency deems 
        appropriate and which are in compliance with State law.
        ``(7) Special rule.--Schools that, for at least two of the 
    three years following identification under paragraph (1), make 
    adequate progress toward meeting the State's proficient and 
    advanced levels of performance shall no longer need to be 
    identified for school improvement.
    ``(d) State Review and Local Educational Agency Improvement.--
        ``(1) In general.--A State educational agency shall--
            ``(A) annually review the progress of each local 
        educational agency receiving funds under this part to determine 
        whether schools receiving assistance under this part are making 
        adequate progress as defined in section 1111(b)(2)(A)(ii) 
        toward meeting the State's student performance standards; and
            ``(B) publicize and disseminate to local educational 
        agencies, teachers and other staff, parents, students, and the 
        community the results of the State review, including 
        statistically sound disaggregated results, as required by 
        section 1111(b)(3)(I).
        ``(2) Rewards.--In the case of a local educational agency that 
    for three consecutive years has met or exceeded the State's 
    definition of adequate progress as defined in section 
    1111(b)(2)(A)(ii), the State may make institutional and individual 
    rewards of the kinds described for individual schools in paragraph 
    (2) of section 1117(c).
        ``(3) Identification.--(A) A State educational agency shall 
    identify for improvement any local educational agency that--
            ``(i) for two consecutive years, is not making adequate 
        progress as defined in section 1111(b)(2)(A)(ii) in schools 
        served under this part toward meeting the State's student 
        performance standards, except that schools served by the local 
        educational agency that are operating targeted assistance 
        programs may be reviewed on the basis of the progress of only 
        those students served under this part; or
            ``(ii) has failed to meet the criteria established by the 
        State through such State's transitional procedure under section 
        1111(b)(7)(B) for two consecutive years.
        ``(B) Before identifying a local educational agency for 
    improvement under paragraph (1), the State educational agency shall 
    provide the local educational agency with an opportunity to review 
    the school-level data, including assessment data, on which such 
    identification is based. If the local educational agency believes 
    that such identification for improvement is in error due to 
    statistical or other substantive reasons, such local educational 
    agency may provide evidence to the State educational agency to 
    support such belief.
        ``(4) Local educational agency revisions.--(A) Each local 
    educational agency identified under paragraph (3) shall, in 
    consultation with schools, parents, and educational experts, revise 
    its local educational agency plan under section 1112 in ways that 
    have the greatest likelihood of improving the performance of 
    schools served by the local educational agency under this part in 
    meeting the State's student performance standards.
        ``(B) Such revision shall include determining why the local 
    educational agency's plan failed to bring about increased 
    achievement, and may include reviewing the local educational 
    agency's plan in the context of the opportunity-to-learn standards 
    or strategies developed by such State under the Goals 2000: Educate 
    America Act.
        ``(5) State educational agency responsibility.--(A) For each 
    local educational agency identified under paragraph (3), the State 
    educational agency shall--
            ``(i) provide technical or other assistance, if requested, 
        as authorized under section 1117, to better enable the local 
        educational agency to--
                ``(I) develop and implement the local educational 
            agency's revised plan; and
                ``(II) work with schools needing improvement; and
            ``(ii) make available to the local educational agencies 
        farthest from meeting the State's standards, if requested, 
        assistance under section 1117.
        ``(B) Technical or other assistance may be provided by the 
    State educational agency directly, or by an institution of higher 
    education, a private nonprofit organization, an educational service 
    agency or other local consortium, a technical assistance center, or 
    other entities with experience in assisting local educational 
    agencies improve achievement, and may include--
            ``(i) interagency collaborative agreements between the 
        local educational agency and other public agencies to provide 
        health, pupil services, and other social services needed to 
        remove barriers to learning; and
            ``(ii) waivers or modification of requirements of State law 
        or regulation (in States in which such waivers are permitted) 
        that impede the ability of a local educational agency to 
        educate students.
        ``(6) Corrective action.--(A) Except as provided in 
    subparagraph (C), after providing technical assistance pursuant to 
    paragraph (5) and taking other remediation measures, the State 
    educational agency may take corrective action at any time against a 
    local educational agency that has been identified under paragraph 
    (3), but, during the fourth year following identification under 
    paragraph (3), shall take such action against any local educational 
    agency that still fails to make adequate progress.
        ``(B)(i) Corrective actions are those actions, consistent with 
    State law, determined and made public and disseminated by the State 
    educational agency, which may include--
            ``(I) the withholding of funds;
            ``(II) reconstitution of school district personnel;
            ``(III) removal of particular schools from the jurisdiction 
        of the local educational agency and establishment of 
        alternative arrangements for public governance and supervision 
        of such schools;
            ``(IV) implementation of the opportunity-to-learn standards 
        or strategies developed by such State under the Goals 2000: 
        Educate America Act;
            ``(V) appointment by the State educational agency of a 
        receiver or trustee to administer the affairs of the local 
        educational agency in place of the superintendent and school 
        board;
            ``(VI) the abolition or restructuring of the local 
        educational agency;
            ``(VII) the authorizing of students to transfer from a 
        school operated by one local educational agency to a school 
        operated by another local educational agency; and
            ``(VIII) a joint plan between the State and the local 
        educational agency that addresses specific elements of student 
        performance problems and that specifies State and local 
        responsibilities under the plan.
        ``(ii) Notwithstanding clause (i), corrective actions taken 
    pursuant to this part shall not include the actions described in 
    subclauses (I), (II), and (III) of clause (i) until the State has 
    developed assessments that meet the requirements of paragraph 
    (3)(C) of section 1111(b).
        ``(C) Prior to implementing any corrective action, the State 
    educational agency shall provide due process and a hearing (if 
    State law provides for such due process and a hearing) to any local 
    educational agency identified under paragraph (3) and may refrain 
    from such corrective action for one year after the four-year period 
    described in subparagraph (A) to the extent that the failure to 
    make progress can be attributed to such extenuating circumstances 
    as determined by the State educational agency.
        ``(7) Special rule.--Local educational agencies that for at 
    least two of the three years following identification under 
    paragraph (3) make adequate progress toward meeting the State's 
    standards no longer need to be identified for local educational 
    agency improvement.
    ``(e) Construction.--Nothing in this section shall be construed to 
alter or otherwise affect the rights, remedies, and procedures afforded 
school or school district employees under Federal, State, or local laws 
(including applicable regulations or court orders) or under the terms 
of collective bargaining agreements, memoranda of understanding, or 
other agreements between such employees and their employers.

``SEC. 1117. STATE ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

    ``(a) System for Support.--
        ``(1) State support.--Each State educational agency shall 
    establish a statewide system of intensive and sustained support and 
    improvement for schools receiving funds under this part, including 
    schoolwide programs and schools in need of program improvement, in 
    order to increase the opportunity for all students in such schools 
    to meet the State's content standards and student performance 
    standards.
        ``(2) Meeting requirements.--Funds reserved under section 
    1003(a) or appropriated under section 1002(f) shall be used to meet 
    the requirements of this section. In addition to such funds a State 
    educational agency may use State administrative funds reserved 
    under section 1603(c) to meet such requirements.
    ``(b) Regional Centers.--Such a statewide system shall work with 
and receive support and assistance from the comprehensive regional 
technical assistance centers under part A of title XIII and the 
educational regional laboratories under section 941(h) of the 
Educational Research, Development, Dissemination, and Improvement Act 
of 1994.
    ``(c) Provisions.--The system shall include at a minimum, the 
following:
        ``(1) School support teams.--
            ``(A) Each State educational agency, in consultation with 
        local educational agencies and schools, shall establish a 
        system of school support teams to provide information and 
        assistance to schoolwide programs and to assist such programs 
        in providing an opportunity to all students to meet the State's 
        student performance standards.
            ``(B) If funds are sufficient, school support teams shall 
        provide information and assistance to--
                ``(i) schools--

                    ``(I) in which the number of students in poverty is 
                equal to or greater than 75 percent of the total number 
                of students enrolled in such school; and
                    ``(II) identified as in need of improvement under 
                section 1116(c)(1); and

                ``(ii) other schools in need of improvement.
            ``(C) Each such team shall be composed of persons, 
        including teachers, pupil services personnel, representatives 
        of organizations knowledgeable about successful schoolwide 
        projects or comprehensive school reform (especially 
        distinguished educators described in paragraph (3)), and other 
        persons who are knowledgeable about research and practice on 
        teaching and learning, particularly about strategies for 
        improving the educational opportunities for low-achieving 
        students (including alternative and applied learning), such as 
        representatives of institutions of higher education, regional 
        educational laboratories or research centers, and outside 
        consultant groups.
            ``(D) A school support team shall work cooperatively with 
        each school and make recommendations as the school develops the 
        school's schoolwide program plan or school improvement plan, 
        review each plan, and make recommendations to the school and 
        the local educational agency.
            ``(E) During the operation of the schoolwide program or 
        during school improvement activities, a school support team 
        shall--
                ``(i) periodically review the progress of the school in 
            enabling children in the school to meet the State's student 
            performance standards under this part;
                ``(ii) identify problems in the design and operation of 
            the instructional program; and
                ``(iii) make recommendations for improvement to the 
            school and the local educational agency.
        ``(2) Distinguished schools.--
            ``(A) Each State shall designate as a distinguished school 
        any school served under this part which, for three consecutive 
        years, has exceeded the State's definition of adequate progress 
        as defined in section 1111(b)(2)(A)(i), and, any school in 
        which--
                ``(i) virtually all students have met the State's 
            advanced level of student performance; and
                ``(ii) equity in participation and achievement of 
            students by sex has been achieved or significantly 
            improved.
            ``(B) Schools designated under this paragraph may serve as 
        models and provide support to other schools, especially 
        schoolwide programs and schools in school improvement, to 
        assist such schools in meeting the State's student performance 
        standards.
            ``(C) States shall use funds reserved under section 1003(a) 
        and funds made available under section 1002(f) to allow schools 
        identified under this paragraph to carry out the activities 
        described in subparagraph (B) and may use such funds to provide 
        awards to such schools to further such school's education 
        programs under this part, provide additional incentives for 
        continued success, and reward individuals or groups in the 
        school for exemplary performance.
            ``(D) A local educational agency may also recognize the 
        success of a distinguished school by providing additional 
        institutional and individual rewards, such as greater 
        decisionmaking authority at the school building level, 
        increased access to resources or supplemental services such as 
        summer programs that may be used to sustain or increase 
        success, additional professional development opportunities, 
        opportunities to participate in special projects, and 
        individual financial bonuses.
        ``(3) Distinguished educators.--
            ``(A) In order to provide assistance to schools and local 
        educational agencies identified as needing improvement and 
        schools participating in schoolwide programs, each State, in 
        consultation with local educational agencies and using funds 
        reserved under section 1003(a) and made available under section 
        1002(f), shall establish a corps of distinguished educators.
            ``(B) When possible, distinguished educators shall be 
        chosen from schools served under this part that have been 
        especially successful in enabling children to meet or make 
        outstanding progress toward meeting the State's student 
        performance standards, such as the schools described in 
        paragraph (2).
            ``(C) Distinguished educators shall provide, as part of the 
        statewide system, intensive and sustained assistance to the 
        schools and local educational agencies farthest from meeting 
        the State's student performance standards and to schoolwide 
        programs as such programs develop and implement their plans, 
        including participation in the support teams described in 
        paragraph (1).
    ``(d) Implementation.--In order to implement this section funds 
reserved under section 1003(a) and funds made available under section 
1002(f) may be used by a State for release time for teachers and 
administrators, travel, training, and other related costs.
    ``(e) Alternatives.--The State may devise additional approaches to 
providing the assistance described in paragraphs (1) and (3) of 
subsection (c), such as providing assistance through institutions of 
higher education and educational service agencies or other local 
consortia, and the State may seek approval from the Secretary to use 
funds reserved under section 1003 and funds made available under 
section 1002(f) for such approaches as part of the State plan.

``SEC. 1118. PARENTAL INVOLVEMENT.

    ``(a) Local Educational Agency Policy.--
        ``(1) In general.--A local educational agency may receive funds 
    under this part only if such agency implements programs, 
    activities, and procedures for the involvement of parents in 
    programs assisted under this part consistent with the provisions of 
    this section. Such activities shall be planned and implemented with 
    meaningful consultation with parents of participating children.
        ``(2) Written policy.--Each local educational agency that 
    receives funds under this part shall develop jointly with, agree 
    upon with, and distribute to, parents of participating children a 
    written parent involvement policy that is incorporated into the 
    local educational agency's plan developed under section 1112, 
    establishes the expectations for parent involvement, and describes 
    how the local educational agency will--
            ``(A) involve parents in the joint development of the plan 
        under section 1112, and the process of school review and 
        improvement under section 1116;
            ``(B) provide the coordination, technical assistance, and 
        other support necessary to assist participating schools in 
        planning and implementing effective parent involvement;
            ``(C) build the schools' and parents' capacity for strong 
        parent involvement as described in subsection (e);
            ``(D) coordinate and integrate parental involvement 
        strategies under this part with parental involvement strategies 
        under other programs, such as Head Start, Even Start, the 
        Parents as Teachers Program, the Home Instruction Program for 
        Preschool Youngsters, and State-run preschool programs;
            ``(E) conduct, with the involvement of parents, an annual 
        evaluation of the content and effectiveness of the parental 
        involvement policy developed under this section--
                ``(i) to determine the effectiveness of the policy in 
            increasing the participation of parents; and
                ``(ii) to identify barriers to greater participation by 
            parents in activities authorized by this section, giving 
            particular attention to parents who are economically 
            disadvantaged, are disabled, have limited English 
            proficiency, have limited literacy, or are of any racial or 
            ethnic minority background; and
            ``(F) use the findings of the evaluations described in 
        subparagraph (E) in designing strategies for school improvement 
        and revising, if necessary, the parental involvement policies 
        described in this subsection and subsection (b)(1).
        ``(3) Reservation.--(A) Each local educational agency shall 
    reserve not less than 1 percent of such agency's allocation under 
    this part to carry out this section, including family literacy and 
    parenting skills, except that this paragraph shall not apply if 1 
    percent of such agency's allocation under this part (other than 
    funds allocated under section 1002(e)) for the fiscal year for 
    which the determination is made is $5,000 or less.
        ``(B) Parents of children receiving services under this part 
    shall be involved in the decisions regarding how funds reserved 
    under subparagraph (A) are allotted for parental involvement 
    activities.
    ``(b) School Parental Involvement Policy.--
        ``(1) In general.--Each school served under this part shall 
    jointly develop with, and distribute to, parents of participating 
    children a written parental involvement policy, agreed upon by such 
    parents, that shall describe the means for carrying out the 
    requirements of subsections (c) through (f). Such policy shall be 
    updated periodically to meet the changing needs of parents and the 
    school.
        ``(2) Special rule.--If the school has a parental involvement 
    policy that applies to all parents, such school may amend that 
    policy, if necessary, to meet the requirements of this subsection.
        ``(3) Amendment.--If the local educational agency has a school 
    district-level parental involvement policy that applies to all 
    parents, such agency may amend that policy, if necessary, to meet 
    the requirements of this subsection.
        ``(4) Parental comments.--If the plan under section 1112 is not 
    satisfactory to the parents of participating children, the local 
    educational agency shall submit any parent comments with such plan 
    when such local educational agency submits the plan to the State.
    ``(c) Policy Involvement.--Each school served under this part 
shall--
        ``(1) convene an annual meeting, at a convenient time, to which 
    all parents of participating children shall be invited and 
    encouraged to attend, to inform parents of their school's 
    participation under this part and to explain this part, its 
    requirements, and their right to be involved;
        ``(2) offer a flexible number of meetings, such as meetings in 
    the morning or evening, and may provide, with funds provided under 
    this part, transportation, child care, or home visits, as such 
    services relate to parental involvement;
        ``(3) involve parents, in an organized, ongoing, and timely 
    way, in the planning, review, and improvement of programs under 
    this part, including the school parental involvement policy and the 
    joint development of the schoolwide program plan under section 
    1114(b), except that if a school has in place a process for 
    involving parents in the joint planning and design of its programs, 
    the school may use that process, if such process includes an 
    adequate representation of parents of participating children;
        ``(4) provide parents of participating children--
            ``(A) timely information about programs under this part;
            ``(B) school performance profiles required under section 
        1116(a)(3) and their child's individual student assessment 
        results, including an interpretation of such results, as 
        required under section 1111(b)(3)(H);
            ``(C) a description and explanation of the curriculum in 
        use at the school, the forms of assessment used to measure 
        student progress, and the proficiency levels students are 
        expected to meet;
            ``(D) opportunities for regular meetings to formulate 
        suggestions, share experiences with other parents, and 
        participate as appropriate in decisions relating to the 
        education of their children if such parents so desire; and
            ``(E) timely responses to parents' suggestions under 
        subparagraph (D); and
        ``(5) if the schoolwide program plan under section 1114(b)(2) 
    is not satisfactory to the parents of participating children, 
    submit any parent comments on the plan when the school makes the 
    plan available to the local educational agency.
    ``(d) Shared Responsibilities for High Student Performance.--As a 
component of the school-level parental involvement policy developed 
under subsection (b), each school served under this part shall jointly 
develop with parents for all children served under this part a school-
parent compact that outlines how parents, the entire school staff, and 
students will share the responsibility for improved student achievement 
and the means by which the school and parents will build and develop a 
partnership to help children achieve the State's high standards. Such 
compact shall--
        ``(1) describe the school's responsibility to provide high-
    quality curriculum and instruction in a supportive and effective 
    learning environment that enables the children served under this 
    part to meet the State's student performance standards, and the 
    ways in which each parent will be responsible for supporting their 
    children's learning, such as monitoring attendance, homework 
    completion, and television watching; volunteering in their child's 
    classroom; and participating, as appropriate, in decisions relating 
    to the education of their children and positive use of 
    extracurricular time; and
        ``(2) address the importance of communication between teachers 
    and parents on an ongoing basis through, at a minimum--
            ``(A) parent-teacher conferences in elementary schools, at 
        least annually, during which the compact shall be discussed as 
        the compact relates to the individual child's achievement;
            ``(B) frequent reports to parents on their children's 
        progress; and
            ``(C) reasonable access to staff, opportunities to 
        volunteer and participate in their child's class, and 
        observation of classroom activities.
    ``(e) Building Capacity for Involvement.--To ensure effective 
involvement of parents and to support a partnership among the school, 
parents, and the community to improve student achievement, each school 
and local educational agency--
        ``(1) shall provide assistance to participating parents in such 
    areas as understanding the National Education Goals, the State's 
    content standards and State student performance standards, the 
    provisions of section 1111(b)(8), State and local assessments, the 
    requirements of this part, and how to monitor a child's progress 
    and work with educators to improve the performance of their 
    children as well as information on how parents can participate in 
    decisions relating to the education of their children;
        ``(2) shall provide materials and training, such as--
            ``(A) coordinating necessary literacy training from other 
        sources to help parents work with their children to improve 
        their children's achievement; and
            ``(B) training to help parents to work with their children 
        to improve their children's achievement;
        ``(3) shall educate teachers, pupil services personnel, 
    principals and other staff, with the assistance of parents, in the 
    value and utility of contributions of parents, and in how to reach 
    out to, communicate with, and work with parents as equal partners, 
    implement and coordinate parent programs, and build ties between 
    home and school;
        ``(4) shall coordinate and integrate parent involvement 
    programs and activities with Head Start, Even Start, the Home 
    Instruction Programs for Preschool Youngsters, the Parents as 
    Teachers Program, and public preschool programs and other programs, 
    to the extent feasible and appropriate;
        ``(5) shall develop appropriate roles for community-based 
    organizations and businesses in parent involvement activities, 
    including providing information about opportunities for 
    organizations and businesses to work with parents and schools, and 
    encouraging the formation of partnerships between elementary, 
    middle, and secondary schools and local businesses that include a 
    role for parents;
        ``(6) shall conduct other activities, as appropriate and 
    feasible, such as parent resource centers and providing 
    opportunities for parents to learn about child development and 
    child rearing issues beginning at the birth of a child, that are 
    designed to help parents become full partners in the education of 
    their children;
        ``(7) shall ensure, to the extent possible, that information 
    related to school and parent programs, meetings, and other 
    activities is sent to the homes of participating children in the 
    language used in such homes;
        ``(8) may involve parents in the development of training for 
    teachers, principals, and other educators to improve the 
    effectiveness of such training in improving instruction and 
    services to the children of such parents;
        ``(9) may provide necessary literacy training from funds 
    received under this part if the local educational agency has 
    exhausted all other reasonably available sources of funding for 
    such activities;
        ``(10) may pay reasonable and necessary expenses associated 
    with local parental involvement activities, including 
    transportation and child care costs, to enable parents to 
    participate in school-related meetings and training sessions;
        ``(11) may train and support parents to enhance the involvement 
    of other parents;
        ``(12) may arrange meetings at a variety of times, such as in 
    the mornings and evenings, in order to maximize the opportunities 
    for parents to participate in school related activities;
        ``(13) may arrange for teachers or other educators, who work 
    directly with participating children, to conduct in-home 
    conferences with parents who are unable to attend such conferences 
    at school;
        ``(14) may adopt and implement model approaches to improving 
    parental involvement, such as Even Start; and
        ``(15) shall provide such other reasonable support for parental 
    involvement activities under this section as parents may request.
    ``(f) Accessibility.--In carrying out the parental involvement 
requirements of this part, local educational agencies and schools, to 
the extent practicable, shall provide full opportunities for the 
participation of parents with limited English proficiency or with 
disabilities, including providing information and school profiles in a 
language and form such parents understand.
    ``(g) Parental Information and Resource Centers.--In States where 
parental information and resource centers have been established 
pursuant to section 401 of the Goals 2000: Educate America Act of 1994 
(to provide training, information, and support to parents and 
individuals who work with parents), local educational agencies and 
schools receiving assistance under this part shall assist parents and 
parent organizations by informing such parents and organizations of the 
existence and purpose of such centers, providing such parents and 
organizations with a description of the services and programs provided 
by such centers, advising parents on how to use such centers, and 
helping parents to contact such centers.

``SEC. 1119. PROFESSIONAL DEVELOPMENT.

    ``(a) Program Requirements.--
        ``(1) In general.--Each local educational agency receiving 
    assistance under this part shall provide high-quality professional 
    development that will improve the teaching of the academic 
    subjects, consistent with the State content standards, in order to 
    enable all children to meet the State's student performance 
    standards.
        ``(2) Program design.--Such professional development activities 
    shall be designed by principals, teachers, and other school staff 
    in schools receiving assistance under this part.
    ``(b) Professional Development Activities.--
        ``(1) Required activities.--Such professional development 
    activities shall--
            ``(A) support instructional practices that are geared to 
        challenging State content standards and create a school 
        environment conducive to high achievement in the academic 
        subjects;
            ``(B) support local educational agency plans under section 
        1112 and school plans under section 1114;
            ``(C) draw on resources available under this part, title 
        III of the Goals 2000: Educate America Act, title II of this 
        Act, and from other sources;
            ``(D) where appropriate, as determined by the local 
        educational agency, include strategies for developing curricula 
        and teaching methods that integrate academic and vocational 
        instruction (including applied learning and team teaching 
        strategies); and
            ``(E) include strategies for identifying and eliminating 
        gender and racial bias in instructional materials, methods, and 
        practices.
        ``(2) Optional activities.--Such professional development 
    activities may include--
            ``(A) instruction in the use of assessments;
            ``(B) instruction in ways that teachers, principals, pupil 
        services personnel, and school administrators may work more 
        effectively with parents;
            ``(C) the forming of partnerships with institutions of 
        higher education to establish school-based teacher training 
        programs that provide prospective teachers and novice teachers 
        with an opportunity to work under the guidance of experienced 
        teachers and college faculty;
            ``(D) instruction in the use of technology;
            ``(E) the creation of career ladder programs for 
        paraprofessionals (assisting teachers under this part) to 
        obtain the education necessary for such paraprofessionals to 
        become licensed and certified teachers;
            ``(F) instruction in ways to teach special needs children;
            ``(G) instruction in gender-equitable education methods, 
        techniques, and practices;
            ``(H) joint professional development activities involving 
        programs under this part, Head Start, Even Start, or State-run 
        preschool program personnel; and
            ``(I) instruction in experiential-based teaching methods 
        such as service learning.
    ``(c) Program Participation.--Each local educational agency 
receiving assistance under this part is encouraged to design 
professional development programs so that--
        ``(1) all school staff in schools participating in a schoolwide 
    program under section 1114 can participate in professional 
    development activities; and
        ``(2) all school staff in targeted assistance schools may 
    participate in professional development activities if such 
    participation will result in better addressing the needs of 
    students served under this part.
    ``(d) Parental Participation.--Parents may participate in 
professional development activities under this part if the school 
determines that parental participation is appropriate.
    ``(e) Consortia.--In carrying out such professional development 
programs, local educational agencies may provide services through 
consortia arrangements with other local educational agencies, 
educational service agencies or other local consortia, institutions of 
higher education, or other public or private institutions or 
organizations.
    ``(f) Effective Teaching Strategies.--Knowledge of effective 
teaching strategies that is gained through professional development 
activities under this section may be shared with teachers who are not 
participating in targeted assistance programs under this part.
    ``(g) Combinations of Funds.--Funds provided under this part that 
are used for professional development purposes may be combined with 
funds provided under title II of this Act, title III of the Goals 2000: 
Educate America Act, and other sources.
    ``(h) State Review.--
        ``(1) In general.--The State educational agency shall review 
    the local educational agency's plan under section 1112(b) to 
    determine if such agency's professional development activities--
            ``(A) are tied to challenging State student content and 
        student performance standards;
            ``(B) reflect research on teaching and learning where 
        possible;
            ``(C) are designed to have a positive impact on the 
        teacher's performance in the classroom;
            ``(D) contribute to continuous improvement in the classroom 
        or throughout the school;
            ``(E) include methods to teach children with special needs;
            ``(F) are developed with the extensive participation of 
        teachers; and
            ``(G) include gender-equitable education methods, 
        techniques, and practices.
        ``(2) Technical assistance.--If a local educational agency's 
    plan for professional development does not include the activities 
    described in paragraph (1), the State educational agency shall 
    provide technical assistance to such local educational agencies to 
    enable such agencies to make progress toward inclusion of such 
    activities in the local educational agency's professional 
    development activities.
        ``(3) Special rule.--No State educational agency shall require 
    a school or a local educational agency to expend a specific amount 
    of funds for professional development activities under this part, 
    except that this paragraph shall not apply with respect to 
    requirements under section 1116(d)(6).
    ``(i) Instructional Aides.--
        ``(1) In general.--If a local educational agency uses funds 
    received under this part to employ instructional aides, the local 
    educational agency shall ensure that such aides--
            ``(A) possess the knowledge and skills sufficient to assist 
        participating children in meeting the educational goals of this 
        part;
            ``(B) have a secondary school diploma, or its recognized 
        equivalent, or earn either within two years of employment, 
        except that a local educational agency may employ an 
        instructional aide that does not meet the requirement of this 
        subparagraph if such aide possesses proficiency in a language 
        other than English that is needed to enhance the participation 
        of children in programs under this part; and
            ``(C) are under the direct supervision of a teacher who has 
        primary responsibility for providing instructional services to 
        eligible children.
        ``(2) Inclusion in activities.--Each local educational agency 
    receiving funds under this part, when feasible, shall include 
    instructional aides in professional development activities.
``SEC. 1120. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.
    ``(a) General Requirement.--
        ``(1) In general.--To the extent consistent with the number of 
    eligible children identified under section 1115(b) in a local 
    educational agency who are enrolled in private elementary and 
    secondary schools, a local educational agency shall, after timely 
    and meaningful consultation with appropriate private school 
    officials, provide such children, on an equitable basis, special 
    educational services or other benefits under this part (such as 
    dual enrollment, educational radio and television, computer 
    equipment and materials, other technology, and mobile educational 
    services and equipment).
        ``(2) Secular, neutral, nonideological.--Such educational 
    services or other benefits, including materials and equipment, 
    shall be secular, neutral, and nonideological.
        ``(3) Equity.--Educational services and other benefits for such 
    private school children shall be equitable in comparison to 
    services and other benefits for public school children 
    participating under this part.
        ``(4) Expenditures.--Expenditures for educational services and 
    other benefits to eligible private school children shall be equal 
    to the proportion of funds allocated to participating school 
    attendance areas based on the number of children from low-income 
    families who attend private schools.
        ``(5) Provision of services.--The local educational agency may 
    provide such services directly or through contracts with public and 
    private agencies, organizations, and institutions.
    ``(b) Consultation.--
        ``(1) In general.--To ensure timely and meaningful 
    consultation, a local educational agency shall consult with 
    appropriate private school officials during the design and 
    development of such agency's programs under this part, on issues 
    such as--
            ``(A) how the children's needs will be identified;
            ``(B) what services will be offered;
            ``(C) how and where the services will be provided;
            ``(D) how the services will be assessed; and
            ``(E) the size and scope of the equitable services to be 
        provided to the eligible private school children, and what is 
        the proportion of funds allocated under subsection (a)(4) for 
        such services.
        ``(2) Timing.--Such consultation shall occur before the local 
    educational agency makes any decision that affects the 
    opportunities of eligible private school children to participate in 
    programs under this part.
        ``(3) Discussion.--Such consultation shall include a discussion 
    of service delivery mechanisms a local educational agency can use 
    to provide equitable services to eligible private school children.
    ``(c) Public Control of Funds.--
        ``(1) In general.--The control of funds provided under this 
    part, and title to materials, equipment, and property purchased 
    with such funds, shall be in a public agency, 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, or organization.
        ``(B) In the provision of such services, such employee, person, 
    association, agency, or organization 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 agency.
    ``(d) Standards for a Bypass.--If a local educational agency is 
prohibited by law from providing for the participation on an equitable 
basis of eligible children enrolled in private elementary and secondary 
schools or if the Secretary determines that a local educational agency 
has substantially failed or is unwilling to provide for such 
participation, as required by this section, the Secretary shall--
        ``(1) waive the requirements of this section for such local 
    educational agency; and
        ``(2) arrange for the provision of services to such children 
    through arrangements that shall be subject to the requirements of 
    this section and sections 14505 and 14506.
    ``(e) Capital Expenses.--
        ``(1) In general.--(A) From the amount appropriated for this 
    subsection under section 1002(e) for any fiscal year, each State is 
    eligible to receive an amount that bears the same ratio to the 
    amount so appropriated as the number of private school children who 
    received services under this part in the State in the most recent 
    year for which data satisfactory to the Secretary are available 
    bears to the number of such children in all States in that same 
    year.
        ``(B) The Secretary shall reallocate any amounts allocated 
    under subparagraph (A) that are not used by a State for the purpose 
    of this subsection to other States on the basis of their respective 
    needs, as determined by the Secretary.
        ``(2) Capital expenses.--(A) A local educational agency may 
    apply to the State educational agency for payments for capital 
    expenses consistent with this subsection.
        ``(B) State educational agencies shall distribute such funds 
    under this subsection to local educational agencies based on the 
    degree of need set forth in their respective applications for 
    assistance under this subsection.
        ``(3) Uses of funds.--Any funds appropriated to carry out this 
    subsection shall be used only for capital expenses incurred to 
    provide equitable services for private school children under this 
    section.
        ``(4) Definition.--For the purpose of this subsection, the term 
    `capital expenses' means--
            ``(A) expenditures for noninstructional goods and services, 
        such as the purchase, lease, or renovation of real and personal 
        property, including mobile educational units and leasing of 
        neutral sites or spaces;
            ``(B) insurance and maintenance costs;
            ``(C) transportation; and
            ``(D) other comparable goods and services.

``SEC. 1120A. FISCAL REQUIREMENTS.

    ``(a) Maintenance of Effort.--A local educational agency may 
receive funds under this part for any fiscal year only if the State 
educational agency finds that the local educational agency has 
maintained its fiscal effort in accordance with section 14501 of this 
Act.
    ``(b) Federal Funds To Supplement, Not Supplant, Non-Federal 
Funds.--
        ``(1) In general.--(A) Except as provided in subparagraph (B), 
    a State or local educational agency shall use funds received under 
    this part only to supplement the amount of funds that would, in the 
    absence of such Federal funds, be made available from non-Federal 
    sources for the education of pupils participating in programs 
    assisted under this part, and not to supplant such funds.
        ``(B) For the purpose of complying with subparagraph (A), a 
    State or local educational agency may exclude supplemental State 
    and local funds expended in any eligible school attendance area or 
    school for programs that meet the requirements of section 1114 or 
    1115.
        ``(2) Special rule.--No local educational agency shall be 
    required to provide services under this part through a particular 
    instructional method or in a particular instructional setting in 
    order to demonstrate such agency's compliance with paragraph (1).
    ``(c) Comparability of Services.--
        ``(1) In general.--(A) Except as provided in paragraphs (4) and 
    (5), a local educational agency may receive funds under this part 
    only if State and local funds will be used in schools served under 
    this part to provide services that, taken as a whole, are at least 
    comparable to services in schools that are not receiving funds 
    under this part.
        ``(B) If the local educational agency is serving all of such 
    agency's schools under this part, such agency may receive funds 
    under this part only if such agency will use State and local funds 
    to provide services that, taken as a whole, are substantially 
    comparable in each school.
        ``(C) A local educational agency may meet the requirements of 
    subparagraphs (A) and (B) on a grade-span by grade-span basis or a 
    school-by-school basis.
        ``(2) Written assurance.--(A) A local educational agency shall 
    be considered to have met the requirements of paragraph (1) if such 
    agency has filed with the State educational agency a written 
    assurance that such agency has established and implemented--
            ``(i) a local educational agency-wide salary schedule;
            ``(ii) a policy to ensure equivalence among schools in 
        teachers, administrators, and other staff; and
            ``(iii) a policy to ensure equivalence among schools in the 
        provision of curriculum materials and instructional supplies.
        ``(B) For the purpose of subparagraph (A), in the determination 
    of expenditures per pupil from State and local funds, or 
    instructional salaries per pupil from State and local funds, staff 
    salary differentials for years of employment shall not be included 
    in such determinations.
        ``(C) A local educational agency need not include unpredictable 
    changes in student enrollment or personnel assignments that occur 
    after the beginning of a school year in determining comparability 
    of services under this subsection.
        ``(3) Procedures and records.--Each local educational agency 
    assisted under this part shall--
            ``(A) develop procedures for compliance with this 
        subsection; and
            ``(B) maintain records that are updated biennially 
        documenting such agency's compliance with this subsection.
        ``(4) Inapplicability.--This subsection shall not apply to a 
    local educational agency that does not have more than one building 
    for each grade span.
        ``(5) Compliance.--For the purpose of determining compliance 
    with paragraph (1), a local educational agency may exclude State 
    and local funds expended for--
            ``(A) bilingual education for children of limited English 
        proficiency; and
            ``(B) excess costs of providing services to children with 
        disabilities as determined by the local educational agency.

``SEC. 1120B. COORDINATION REQUIREMENTS.

    ``(a) In General.--Each local educational agency receiving 
assistance under this part shall carry out the activities described in 
subsection (b) to the extent feasible and appropriate to the 
circumstances, including the extent to which such local educational 
agency is able to secure the cooperation of parents and local Head 
Start agencies and, if feasible, other early childhood development 
programs.
    ``(b) Activities.--The activities referred to in subsection (a) are 
activities that increase coordination between the local educational 
agency and a Head Start agency, and, if feasible, other early childhood 
development programs, serving children who will attend the schools of 
such agency, including--
        ``(1) developing and implementing a systematic procedure for 
    receiving records regarding such children transferred with parental 
    consent from a Head Start program or, where applicable, other early 
    childhood development programs;
        ``(2) establishing channels of communication between school 
    staff and their counterparts in such Head Start agencies (including 
    teachers, social workers, and health staff) or other early 
    childhood development programs, as appropriate, to facilitate 
    coordination of programs;
        ``(3) conducting meetings involving parents, kindergarten or 
    elementary school teachers, and Head Start teachers or, if 
    appropriate, teachers from other early childhood development 
    programs, to discuss the developmental and other needs of 
    individual children; and
        ``(4) organizing and participating in joint transition related 
    training of school staff, Head Start staff, and, where appropriate, 
    other early childhood staff.
    ``(c) Coordination of Regulations.--The Secretary shall work with 
the Secretary of Health and Human Services to coordinate regulations 
promulgated under this part with regulations promulgated under the Head 
Start Act Amendments of 1994.

                        ``Subpart 2--Allocations

``SEC. 1121. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE 
              INTERIOR.

    ``(a) Reservation of Funds.--From the amount appropriated for 
payments to States for any fiscal year under section 1002(a), the 
Secretary shall reserve a total of 1 percent to provide assistance to--
        ``(1) the outlying areas on the basis of their respective need 
    for such assistance according to such criteria as the Secretary 
    determines will best carry out the purpose of this part; and
        ``(2) the Secretary of the Interior in the amount necessary to 
    make payments pursuant to subsection (c).
    ``(b) Assistance to the Outlying Areas.--
        ``(1) In general.--From amounts made available under subsection 
    (a) in each fiscal year the Secretary shall make grants to local 
    educational agencies in the outlying areas (other than the outlying 
    areas assisted under paragraph (3)).
        ``(2) Competitive grants.--(A) The Secretary shall reserve 
    $5,000,000 from the amounts made available under subsection (a) in 
    each fiscal year to award grants on a competitive basis, to local 
    educational agencies in the Federated States of Micronesia, the 
    Republic of the Marshall Islands, and the Republic of Palau. The 
    Secretary shall award such grants according to the recommendations 
    of the Pacific Region Educational Laboratory which shall conduct a 
    competition for such grants.
        ``(B) Except as provided in subparagraph (D), grant funds 
    awarded under this part only may be used for programs described in 
    this Act, including teacher training, curriculum development, 
    instructional materials, or general school improvement and reform.
        ``(C) Grant funds awarded under this paragraph only may be used 
    to provide direct educational services.
        ``(D) The Secretary may provide 5 percent of the amount made 
    available for grants under this paragraph to pay the administrative 
    costs of the Pacific Region Educational Laboratory regarding 
    activities assisted under this paragraph.
    ``(c) Allotment to the Secretary of the Interior.--
        ``(1) In general.--The amount allotted for payments to the 
    Secretary of the Interior under subsection (a)(2) for any fiscal 
    year shall be, as determined pursuant to criteria established by 
    the Secretary, the amount necessary to meet the special educational 
    needs of--
            ``(A) Indian children on reservations served by elementary 
        and secondary schools for Indian children operated or supported 
        by the Department of the Interior; and
            ``(B) out-of-State Indian children in elementary and 
        secondary schools in local educational agencies under special 
        contracts with the Department of the Interior.
        ``(2) Payments.--From the amount allotted for payments to the 
    Secretary of the Interior under subsection (a)(2), the Secretary of 
    the Interior shall make payments to local educational agencies, 
    upon such terms as the Secretary determines will best carry out the 
    purposes of this part, with respect to out-of-State Indian children 
    described in paragraph (1). The amount of such payment may not 
    exceed, for each such child, the greater of--
            ``(A) 40 percent of the average per pupil expenditure in 
        the State in which the agency is located; or
            ``(B) 48 percent of such expenditure in the United States.

``SEC. 1122. ALLOCATIONS TO STATES.

    ``(a) In General.--
        ``(1) Fiscal year 1995.--For fiscal year 1995, appropriations 
    for this part shall be allocated according to the provisions of 
    sections 1005, except subsection (a)(3), and 1006, part A of 
    chapter 1 of title I, Elementary and Secondary Education Act of 
    1965, as in effect on September 30, 1994, except that the State 
    minimum for section 1005 shall be the lesser of 0.25 percent of 
    total appropriations or the average of 0.25 percent of total 
    appropriations and 150 percent of the national average grant per 
    child counted for grants under section 1005 multiplied by the 
    State's number of children counted for such grants, and for grants 
    under section 1006, the State minimum shall be the lesser of--
            ``(A) 0.25 percent of total appropriations; and
            ``(B) the average of--
                ``(i) 0.25 percent of total appropriations; and
                ``(ii) the greater of 150 percent of the national 
            average grant per child counted for grants under such 
            section 1006 multiplied by the State total number of such 
            children, or $340,000.
        ``(2) Succeeding fiscal years.--For fiscal years 1996 through 
    1999, an amount of the appropriations for this part equal to the 
    appropriation for fiscal year 1995 for section 1005, shall be 
    allocated in accordance with section 1124, and an amount equal to 
    the appropriation for fiscal year 1995 for section 1006 shall be 
    allocated in accordance with section 1124A. Any additional 
    appropriations under section 1002(a) for any fiscal year, after 
    application of the preceding sentence, shall be allocated in 
    accordance with section 1125.
    ``(b) Adjustments Where Necessitated by Appropriations.--
        ``(1) In general.--If the sums available under this part for 
    any fiscal year are insufficient to pay the full amounts that all 
    local educational agencies in States are eligible to receive under 
    sections 1124, 1124A, and 1125 for such year, the Secretary shall 
    ratably reduce the allocations to such local educational agencies, 
    subject to subsections (c) and (d) of this section.
        ``(2) Additional funds.--If additional funds become available 
    for making payments under sections 1124, 1124A, and 1125 for such 
    fiscal year, allocations that were reduced under paragraph (1) 
    shall be increased on the same basis as they were reduced.
    ``(c) Hold-Harmless Amounts.--
        ``(1) In general.--For fiscal year 1995, notwithstanding 
    subsection (b) and without regard to amounts available for 
    delinquent children under subpart 2 of part D, the amount made 
    available to each local educational agency under such section 1005 
    shall be at least 85 percent of the amount such local educational 
    agency received for the preceding year under such section 1005.
        ``(2) Fiscal year 1996.--Notwithstanding subsection (b) and 
    without regard to amounts available for delinquent children under 
    subpart 2 of part D, for fiscal year 1996 the total amount made 
    available to each local educational agency under each of sections 
    1124 and 1124A for any fiscal year shall be at least 100 percent of 
    the total amount such local educational agency was allocated under 
    such sections (or their predecessor authorities) for the preceding 
    fiscal year.
        ``(3) Fiscal years 1997-1999.--For fiscal years 1997 through 
    1999, notwithstanding subsection (b) and without regard to amounts 
    available for delinquent children under subpart 2 of part D, the 
    amount made available to each local educational agency under each 
    of sections 1124 and 1125 shall be at least 95 percent of the 
    previous year's amount if the number of children counted for grants 
    under section 1124 is at least 30 percent of the total number of 
    children aged 5 to 17 years, inclusive, in the local educational 
    agency, 90 percent of the previous year amount if this percentage 
    is between 15 percent and 30 percent, and 85 percent if this 
    percentage is below 15 percent. For fiscal years 1997 and 1998, in 
    calculating grants on the basis of population data for counties, 
    the Secretary shall apply the hold-homeless percentages in the 
    preceding sentence to counties. For fiscal years 1996 through 1998, 
    if the Secretary's allocation for a county is not sufficient to 
    meet the hold-harmless requirements of this paragraph for every 
    local educational agency within that county, then the State 
    educational agency shall reallocate funds proportionately from all 
    other local educational agencies in the State that are receiving 
    funds in excess of the hold-harmless amounts specified in this 
    paragraph.
    ``(d) Ratable Reductions.--
        ``(1) In general.--If the sums made available under this part 
    for any fiscal year are insufficient to pay the full amounts that 
    all States are eligible to receive under subsection (c) for such 
    year, the Secretary shall ratably reduce such amounts for such 
    year.
        ``(2) Additional funds.--If additional funds become available 
    for making payments under subsection (c) for such fiscal year, 
    amounts that were reduced under paragraph (1) shall be increased on 
    the same basis as such amounts reduced.
    ``(e) Definition.--For the purpose of this section and sections 
1124 and 1125, the term State means each of the 50 States, the District 
of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 1124. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Amount of Grants.--
        ``(1) Grants for local educational agencies and puerto rico.--
    The grant which a local educational agency in a State is eligible 
    to receive under this subpart for a fiscal year shall (except as 
    provided in section 1126), be determined by multiplying the number 
    of children counted under subsection (c) by 40 percent of the 
    amount determined under the next sentence. The amount determined 
    under this sentence shall be the average per pupil expenditure in 
    the State except that--
            ``(A) if the average per pupil expenditure in the State is 
        less than 80 percent of the average per pupil expenditure in 
        the United States, such amount shall be 80 percent of the 
        average per pupil expenditure in the United States; or
            ``(B) if the average per pupil expenditure in the State is 
        more than 120 percent of the average per pupil expenditure in 
        the United States, such amount shall be 120 percent of the 
        average per pupil expenditure in the United States.
        ``(2) Basis for calculating grants.--For fiscal years 1995 
    through 1998, grants shall be calculated by the Secretary on the 
    basis of the number of children counted under subsection (c) for 
    counties, and State educational agencies shall suballocate county 
    amounts to local educational agencies, in accordance with 
    regulations published by the Secretary. In any State in which a 
    large number of local educational agencies overlap county 
    boundaries, the State educational agency may apply to the Secretary 
    for authority during any particular fiscal year to make the 
    allocations under this part (other than section 1124A) directly to 
    local educational agencies without regard to the counties. If the 
    Secretary approves an application of a State educational agency for 
    a particular year under this subparagraph, the State educational 
    agency shall provide assurances that--
            ``(A) such allocations will be made using precisely the 
        same factors for determining a grant as are used under this 
        part;
            ``(B) such allocations will be made using alternative data 
        approved by the Secretary that the State determines best 
        reflects the distribution of children in poor families and is 
        adjusted to be equivalent in proportion to the number of 
        children determined in accordance with subsection (c); or
            ``(C) such allocations will be made using data that the 
        State educational agency submits to the Secretary for approval 
        that more accurately target poverty.
    In addition, the State educational agency shall provide assurances 
    that a procedure will be established through which local 
    educational agencies dissatisfied with the determinations made by 
    the State educational agency may appeal directly to the Secretary 
    for a final determination. Beginning in fiscal year 1999, grants 
    shall be calculated by the Secretary on the basis of population 
    data compiled for local educational agencies, unless the Secretary 
    and the Secretary of Commerce determine that use of the updated 
    population data would be inappropriate or unreliable taking into 
    consideration the recommendations of the study to be conducted by 
    the National Academy of Sciences. If the Secretary and the 
    Secretary of Commerce determine that some or all of the data 
    referred to in this paragraph are inappropriate or unreliable, the 
    Secretaries shall jointly issue a report setting forth their 
    reasons in detail. In years when grants are calculated by the 
    Secretary on the basis of local educational agency data, for each 
    local educational agency serving an area with a total population of 
    at least 20,000 persons, the grant under this section shall be the 
    amount determined by the Secretary. For local educational agencies 
    serving areas with total populations of fewer than 20,000 persons, 
    the State educational agency may either--
            ``(i) distribute to such local educational agencies grants 
        under this section equal to the amounts determined by the 
        Secretary; and
            ``(ii) use an alternative method, approved by the 
        Secretary, to distribute the share of the State's total grants 
        under this section that is based on local educational agencies 
        with total populations of fewer than 20,000 persons. Such an 
        alternative method of distributing grants under this section 
        among a State's local educational agencies serving areas with 
        total populations of fewer than 20,000 persons shall be based 
        upon population data that the State educational agency 
        determines best reflect the current distribution of children in 
        poor families among the State's local educational agencies 
        serving areas with total populations of fewer than 20,000 
        persons. If a local educational agency serving an area with 
        total population of less than 20,000 persons is dissatisfied 
        with the determination of its grant by the State education 
        agency, then such local educational agency may appeal this 
        determination to the Secretary. The Secretary must respond to 
        this appeal within 45 days of receipt.
        ``(3) Puerto rico.--For each fiscal year, the Secretary shall 
    determine the percentage which the average per pupil expenditure in 
    the Commonwealth of Puerto Rico is of the lowest average per pupil 
    expenditure of any of the 50 States. The grant which the 
    Commonwealth of Puerto Rico shall be eligible to receive under this 
    section for a fiscal year shall be the amount arrived at by 
    multiplying the number of children counted under subsection (c) for 
    the Commonwealth of Puerto Rico by the product of--
            ``(A) the percentage determined under the preceding 
        sentence; and
            ``(B) 32 percent of the average per pupil expenditure in 
        the United States.
        ``(4) Definition.--For purposes of this subsection, the term 
    `State' does not include Guam, American Samoa, the Virgin Islands, 
    the Northern Mariana Islands, and Palau.
    ``(b) Minimum Number of Children To Qualify.--Subject to the 
succeeding sentence, a local educational agency shall be eligible for a 
basic grant for a fiscal year under this subpart only if the number of 
children counted under subsection (c) in the school district of such 
local educational agency is at least 10. Beginning in fiscal year 1996, 
no local educational agency shall be eligible for a grant under this 
section if the number of children counted for grants under this section 
is equal to 2 percent or less of the total school age population in the 
local educational agency. For fiscal years 1996 through 1998, grants 
not made as a result of applying the preceding sentence shall be 
reallocated by the State educational agency to other eligible local 
educational agencies in the State in proportion to the distribution of 
other funds under this section.
    ``(c) Children To Be Counted.--
        ``(1) Categories of children.--The number of children to be 
    counted for purposes of this section is the aggregate of--
            ``(A) the number of children aged 5 to 17, inclusive, in 
        the school district of the local educational agency from 
        families below the poverty level as determined under paragraph 
        (2);
            ``(B) the number of children aged 5 to 17, inclusive, in 
        the school district of such agency from families above the 
        poverty level as determined under paragraph (5); and
            ``(C) the number of children aged 5 to 17, inclusive, in 
        the school district of such agency in institutions for 
        neglected and delinquent children (other than such institutions 
        operated by the United States), but not counted pursuant to 
        subpart 1 of part D for the purposes of a grant to a State 
        agency, or being supported in foster homes with public funds.
        ``(2) Determination of number of children.--For the purposes of 
    this section, the Secretary shall determine the number of children 
    aged 5 to 17, inclusive, from families below the poverty level on 
    the basis of the most recent satisfactory data, described in 
    paragraph (3), available from the Department of Commerce. For 
    fiscal year 1999 and beyond, the District of Columbia and the 
    Commonwealth of Puerto Rico shall be treated as individual local 
    educational agencies. If a local educational agency contains two or 
    more counties in their entirety, then each county will be treated 
    as if such county were a separate local educational agency for 
    purposes of calculating grants under this part. The total of grants 
    for such counties shall be allocated to such a local educational 
    agency, which local educational agency shall distribute to schools 
    in each county within such agency a share of the local educational 
    agency's total grant that is no less than the county's share of the 
    population counts used to calculate the local educational agency's 
    grant.
        ``(3) Population updates.--In fiscal year 1997 and every 2 
    years thereafter, the Secretary shall use updated data on the 
    number of children, aged 5 to 17, inclusive, from families below 
    the poverty level for counties or local educational agencies, 
    published by the Department of Commerce, unless the Secretary and 
    the Secretary of Commerce determine that use of the updated 
    population data would be inappropriate or unreliable, taking into 
    consideration the recommendations of the study to be conducted by 
    the National Academy of Sciences. If the Secretary and the 
    Secretary of Commerce determine that some or all of the data 
    referred to in this paragraph are inappropriate or unreliable, they 
    shall jointly issue a report setting forth their reasons in detail. 
    In determining the families which are below the poverty level, the 
    Secretary shall utilize the criteria of poverty used by the Bureau 
    of the Census in compiling the most recent decennial census, in 
    such form as those criteria have been updated by increases in the 
    Consumer Price Index for all urban consumers, published by the 
    Bureau of Labor Statistics.
        ``(4) Study.--(A) The Secretary of Education shall, within 30 
    days after the date of enactment of the Improving America's 
    School's Act of 1994, contract with the National Academy of 
    Sciences (hereafter in this section referred to as the `Academy') 
    to study the program to produce intercensal poverty data for small 
    geographic areas and certain age cohorts being developed by the 
    Bureau of the Census.
        ``(B) In conducting its study, the Academy shall consider such 
    matters as--
            ``(i) the methodology used to produce and publish 
        intercensal poverty data, and possible alternative methods to 
        improve the usefulness of the data for Federal program 
        purposes;
            ``(ii) the availability of alternative indicators of 
        poverty for small geographic areas, against which the poverty 
        data produced and published by the Bureau of the Census could 
        be compared;
            ``(iii) the reliability of the poverty data produced and 
        published by the Bureau of the Census, particularly for less 
        populous geographic areas;
            ``(iv) the reliability of intercensal poverty data produced 
        and published by the Bureau of the Census, as compared over 
        time to similar data produced by the Bureau of the Census 
        during the most recent decennial census; and
            ``(v) the usefulness of poverty data produced and published 
        by the Bureau of the Census for Federal programs that allocate 
        funds to State and sub-State areas based, in whole or in part, 
        on such data.
        ``(C) The Academy shall submit to the Secretary and the 
    Secretary of Commerce, as well as to the Committee on Education and 
    Labor and the Committee on Post Office and Civil Service of the 
    House of Representatives and the Committee on Labor and Human 
    Resources and the Committee on Governmental Affairs of the Senate--
            ``(i) not later than 18 months after the date on which a 
        contract is entered into under subsection (a), and not later 
        than every 18 months thereafter, such interim reports on the 
        Academy's activities under this Act that the Academy deems 
        appropriate, including a detailed statement of the Academy's 
        findings and conclusions with respect to any poverty data which 
        the Bureau of the Census publishes and produces, within 90 days 
        of such publication; and
            ``(ii) not later than December 31, 1998, a final report 
        which shall include a more detailed statement of the Academy's 
        findings and conclusions with respect to the use of any 
        intercensal poverty data produced and published by the Bureau 
        of the Census as the basis for allocating Federal funds under 
        this Act.
        ``(D) Of the funds appropriated under section 1002(f) of this 
    Act, the Secretary shall use such sums as are necessary in each of 
    fiscal years 1995, 1996, 1997, 1998, and 1999 to carry out the 
    provisions of this paragraph.
        ``(5) Other children to be counted.--For purposes of this 
    section, the Secretary shall determine the number of children aged 
    5 to 17, inclusive, from families above the poverty level on the 
    basis of the number of such children from families receiving an 
    annual income, in excess of the current criteria of poverty, from 
    payments under the program of aid to families with dependent 
    children under a State plan approved under title IV of the Social 
    Security Act; and in making such determinations the Secretary shall 
    utilize the criteria of poverty used by the Bureau of the Census in 
    compiling the most recent decennial census for a family of 4 in 
    such form as those criteria have been updated by increases in the 
    Consumer Price Index for all urban consumers, published by the 
    Bureau of Labor Statistics. The Secretary shall determine the 
    number of such children and the number of children of such ages 
    living in institutions for neglected or delinquent children, or 
    being supported in foster homes with public funds, on the basis of 
    the caseload data for the month of October of the preceding fiscal 
    year (using, in the case of children described in the preceding 
    sentence, the criteria of poverty and the form of such criteria 
    required by such sentence which were determined for the calendar 
    year preceding such month of October) or, to the extent that such 
    data are not available to the Secretary before January of the 
    calendar year in which the Secretary's determination is made, then 
    on the basis of the most recent reliable data available to the 
    Secretary at the time of such determination. The Secretary of 
    Health and Human Services shall collect and transmit the 
    information required by this subparagraph to the Secretary not 
    later than January 1 of each year.
        ``(6) Estimate.--When requested by the Secretary, the Secretary 
    of Commerce shall make a special updated estimate of the number of 
    children of such ages who are from families below the poverty level 
    (as determined under subparagraph (A) of this paragraph) in each 
    school district, and the Secretary is authorized to pay (either in 
    advance or by way of reimbursement) the Secretary of Commerce the 
    cost of making this special estimate. The Secretary of Commerce 
    shall give consideration to any request of the chief executive of a 
    State for the collection of additional census information. For 
    purposes of this section, the Secretary shall consider all children 
    who are in correctional institutions to be living in institutions 
    for delinquent children.
    ``(d) State Minimum.--Notwithstanding subsection (b)(1) or (d) of 
section 1122, the aggregate amount allotted for all local educational 
agencies within a State may not be less than the lesser of--
        ``(1) 0.25 percent of total grants under this section; or
        ``(2) the average of--
            ``(A) one-quarter of 1 percent of the total amount 
        available for such fiscal year under this section; and
            ``(B) the number of children in such State counted under 
        subsection (c) in the fiscal year multiplied by 150 percent of 
        the national average per pupil payment made with funds 
        available under this section for that year.
``SEC. 1124A. CONCENTRATION GRANTS TO LOCAL EDUCATIONAL AGENCIES.
    ``(a) Eligibility for and Amount of Grants.--
        ``(1) In general.--(A) Except as otherwise provided in this 
    paragraph, each local educational agency, in a State other than 
    Guam, American Samoa, the Virgin Islands, the Commonwealth of the 
    Northern Mariana Islands, and Palau, which is eligible for a grant 
    under this part for any fiscal year shall be eligible for an 
    additional grant under this section for that fiscal year if--
            ``(i) the number of children counted under section 1124(c) 
        in the county (for fiscal years 1996 through 1998), or local 
        educational agency (for fiscal years beginning with 1999) for 
        the fiscal year exceeds 6,500; or
            ``(ii) the number of children counted under section 1124(c) 
        exceeds 15 percent of the total number of children aged 5 to 
        17, inclusive, in the county (for fiscal years 1996 through 
        1998), or local educational agency (for fiscal years beginning 
        with 1999) in that fiscal year.
        ``(B) Notwithstanding such subsections (b)(1) and (d) of 
    section 1122, no State described in subparagraph (A) shall receive 
    less than the lesser of--
            ``(i) 0.25 percent of total grants; or
            ``(ii) the average of--
                ``(I) one-quarter of 1 percent of the sums available to 
            carry out this section for such fiscal year; and
                ``(II) the greater of--

                    ``(aa) $340,000; or
                    ``(bb) the number of children in such State counted 
                for purposes of this section in that fiscal year 
                multiplied by 150 percent of the national average per 
                pupil payment made with funds available under this 
                section for that year.

        ``(2) Special rule.--For each county or local educational 
    agency eligible to receive an additional grant under this section 
    for any fiscal year the Secretary shall determine the product of--
            ``(A) the number of children counted under section 1124(c) 
        for that fiscal year; and
            ``(B) the quotient resulting from the division of the 
        amount determined for those agencies under section 1124(a)(1) 
        for the fiscal year for which the determination is being made 
        divided by the total number of children counted under section 
        1124(c) for that agency for fiscal year.
        ``(3) Amount.--The amount of the additional grant for which an 
    eligible local educational agency or county is eligible under this 
    section for any fiscal year shall be an amount which bears the same 
    ratio to the amount available to carry out this section for that 
    fiscal year as the product determined under paragraph (2) for such 
    local educational agency for that fiscal year bears to the sum of 
    such products for all local educational agencies in the United 
    States for that fiscal year.
        ``(4) Suballocation.--For fiscal years 1996 through 1998, 
    county amounts shall be suballocated to local educational agencies 
    meeting the criteria of paragraph (1)(A) by State educational 
    agencies, in accordance with regulations published by the 
    Secretary. For fiscal years 1995 through 1998, grants shall be 
    calculated by the Secretary on the basis of the number of children 
    counted under section 1124(c) for counties, and State educational 
    agencies shall suballocate county amounts to local educational 
    agencies, in accordance with regulations published by the 
    Secretary. In any State in which a large number of local 
    educational agencies overlap county boundaries, the State 
    educational agency may apply to the Secretary for authority during 
    any particular fiscal year to make the allocations under this part 
    (other than this section) directly to local educational agencies 
    without regard to the counties. If the Secretary approves an 
    application of a State educational agency for a particular year 
    under this paragraph, the State educational agency shall provide 
    assurances that--
            ``(A) such allocations will be made using precisely the 
        same factors for determining a grant as are used under this 
        part;
            ``(B) such allocations will be made using alternative data 
        approved by the Secretary that the State determines best 
        reflects the distribution of children in poor families and is 
        adjusted to be equivalent in proportion to the number of 
        children determined in accordance with section 1124(c); or
            ``(C) such allocations will be made using data that the 
        State educational agency submits to the Secretary for approval 
        that more accurately target poverty.
    In addition, the State educational agency shall provide assurances 
    that a procedure will be established through which local 
    educational agencies dissatisfied with the determinations made by 
    the State educational agency may appeal directly to the Secretary 
    for a final determination. A State may reserve not more than 2 
    percent of its allocations in fiscal years 1996 through 1998 under 
    this section for the purpose of making grants to local educational 
    agencies that meet the criteria of clause (i) or (ii) of paragraph 
    (1)(A), but are in ineligible counties. For fiscal years beginning 
    with 1999, for each local educational agency serving an area with a 
    total population of at least 20,000 persons, the grant under this 
    section shall be the amount determined by the Secretary. For local 
    educational agencies serving areas with total populations of fewer 
    than 20,000 persons, the State educational agency may either (i) 
    distribute to such local educational agencies grants under this 
    section equal to the amounts determined by the Secretary; or (ii) 
    use an alternative method, approved by the Secretary, to distribute 
    the share of the State's total grants under this section that is 
    based on local educational agencies with total populations of fewer 
    than 20,000 persons. Such an alternative method of distributing 
    grants under this section among a State's local educational 
    agencies serving areas with total populations of fewer than 20,000 
    persons shall be based upon population data that the State 
    educational agency determines best reflects the current 
    distribution of children in poor families among the State's local 
    educational agencies serving areas with total populations of fewer 
    than 20,000 persons and meeting the eligibility criteria of 
    paragraph (1)(A). If a local educational agency serving an area 
    with total population of less than 20,000 persons is dissatisfied 
    with the determination of its grant by the State educational 
    agency, then such local educational agency may appeal this 
    determination to the Secretary. The Secretary shall respond to this 
    appeal within 45 days of receipt. The Secretary shall consult with 
    the Secretary of Commerce regarding whether available data on 
    population for local educational agencies serving areas with total 
    populations of fewer than 20,000 persons are sufficiently reliable 
    to be used to determine final grants to such areas meeting the 
    eligibility criteria of paragraph (1)(A).
    ``(b) Reservation of Funds.--Of the total amount of funds available 
for this section and sections 1124 and 1125, an amount equal to the 
appropriation for fiscal year 1995 for section 1006 of this Act (as 
such section was in effect on the day preceding the date of enactment 
of this Act) shall be available to carry out this section.
    ``(c) Ratable Reduction Rule.--If the sums available under 
subsection (b) for any fiscal year for making payments under this 
section are not sufficient to pay in full the total amounts which all 
States are eligible to receive under subsection (a) for such fiscal 
year, the maximum amounts which all States are eligible to receive 
under subsection (a) for such fiscal year shall be ratably reduced. In 
the case that additional funds become available for making such 
payments for any fiscal year during which the preceding sentence is 
applicable, such reduced amounts shall be increased on the same basis 
as they were reduced.
    ``(d) States Receiving Minimum Grants.--In States that receive the 
minimum grant under subsection (a)(1)(B), the State educational agency 
shall allocate such funds among the local educational agencies in each 
State either--
        ``(1) in accordance with paragraphs (2) and (4) of subsection 
    (a); or
        ``(2) based on their respective concentrations and numbers of 
    children counted under section 1124(c), except that only those 
    local educational agencies with concentrations or numbers of 
    children counted under section 1124(c) that exceed the statewide 
    average percentage of such children or the statewide average number 
    of such children shall receive any funds on the basis of this 
    paragraph.

``SEC. 1125. TARGETED GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Eligibility of Local Educational Agencies.--A local 
educational agency in a State is eligible to receive a targeted grant 
under this section for any fiscal year if the number of children in the 
local educational agency counted under subsection 1124(c), before 
application of the weighting factor described in subsection (c), is at 
least 10, and if the number of children counted for grants under 
section 1124 is at least 5 percent of the total population aged 5 to 17 
years, inclusive, in the local educational agency. Funds made available 
as a result of applying this subsection shall be reallocated by the 
State educational agency to other eligible local educational agencies 
in the State in proportion to the distribution of other funds under 
this section.
    ``(b) Grants for Local Educational Agencies, the District of 
Columbia, and Puerto Rico.--
        ``(1) In general.--The amount of the grant that a local 
    educational agency in a State or that the District of Columbia is 
    eligible to receive under this section for any fiscal year shall be 
    the product of--
            ``(A) the weighted child count determined under subsection 
        (c); and
            ``(B) the amount in the second sentence of subparagraph 
        1124(a)(1)(A).
        ``(2) Puerto rico.--For each fiscal year, the amount of the 
    grant for which the Commonwealth of Puerto Rico is eligible under 
    this section shall be equal to the number of children counted under 
    subsection (c) for Puerto Rico, multiplied by the amount determined 
    in subparagraph 1124(a)(3).
    ``(c) Weighted Child Count.--
        ``(1) Fiscal years 1966-1998.--
            ``(A) In general.--The weighted child count used to 
        determine a county's allocation under this section is the 
        larger of the two amounts determined under clause (i) or (ii), 
        as follows:
                ``(i) By percentage of children.--This amount is 
            determined by adding--

                    ``(I) the number of children determined under 
                section 1124(c) for that county constituting up to 
                12.20 percent, inclusive, of the county's total 
                population aged 5 to 17, inclusive, multiplied by 1.0;
                    ``(II) the number of such children constituting 
                more than 12.20 percent, but not more than 17.70 
                percent, of such population, multiplied by 1.75;
                    ``(III) the number of such children constituting 
                more than 17.70 percent, but not more than 22.80 
                percent, of such population, multiplied by 2.5;

                    ``(IV) the number of such children constituting 
                more than 22.80 percent, but not more than 29.70 
                percent, of such population, multiplied by 3.25; and
                    ``(V) the number of such children constituting more 
                than 29.70 percent of such population, multiplied by 
                4.0.

                ``(ii) By number of children.--This amount is 
            determined by adding--

                    ``(I) the number of children determined under 
                section 1124(c) constituting up to 1,917, inclusive, of 
                the county's total population aged 5 to 17, inclusive, 
                multiplied by 1.0;
                    ``(II) the number of such children between 1,918 
                and 5,938, inclusive, in such population, multiplied by 
                1.5;
                    ``(III) the number of such children between 5,939 
                and 20,199, inclusive, in such population, multiplied 
                by 2.0;
                    ``(IV) the number of such children between 20,200 
                and 77,999, inclusive, in such population, multiplied 
                by 2.5; and
                    ``(V) the number of such children in excess of 
                77,999 in such population, multiplied by 3.0.

            ``(B) Puerto rico.--Notwithstanding subparagraph (A), the 
        weighting factor for Puerto Rico under this paragraph shall not 
        be greater than the total number of children counted under 
        subsection 1124(c) multiplied by 1.72.
        ``(2) Fiscal years after 1999.--
            ``(A) In general.--For each fiscal year beginning with 
        fiscal year 1999 for which the Secretary uses local educational 
        agency data, the weighted child count used to determine a local 
        educational agency's grant under this section is the larger of 
        the two amounts determined under clauses (i) and (ii), as 
        follows:
                ``(i) By percentage of children.--This amount is 
            determined by adding--

                    ``(I) the number of children determined under 
                section 1124(c) for that local educational agency 
                constituting up to 14.265 percent, inclusive, of the 
                agency's total population aged 5 to 17, inclusive, 
                multiplied by 1.0;
                    ``(II) the number of such children constituting 
                more than 14.265 percent, but not more than 21.553 
                percent, of such population, multiplied by 1.75;
                    ``(III) the number of such children constituting 
                more than 21.553 percent, but not more than 29.223 
                percent, of such population, multiplied by 2.5;
                    ``(IV) the number of such children constituting 
                more than 29.223 percent, but not more than 36.538 
                percent, of such population, multiplied by 3.25; and
                    ``(V) the number of such children constituting more 
                than 36.538 percent of such population, multiplied by 
                4.0.

                ``(ii) By number of children.--This amount is 
            determined by adding--

                    ``(I) the number of children determined under 
                section 1124(c) constituting up to 575, inclusive, of 
                the agency's total population aged 5 to 17, inclusive, 
                multiplied by 1.0;
                    ``(II) the number of such children between 576 and 
                1,870, inclusive, in such population, multiplied by 
                1.5;
                    ``(III) the number of such children between 1,871 
                and 6,910, inclusive, in such population, multiplied by 
                2.0;
                    ``(IV) the number of such children between 6,911 
                and 42,000, inclusive, in such population, multiplied 
                by 2.5; and

                    ``(V) the number of such children in excess of 
                42,000 in such population, multiplied by 3.0.

            ``(B) Puerto rico.--Notwithstanding subparagraph (A), the 
        weighting factor for Puerto Rico under this paragraph shall not 
        be greater than the total number of children counted under 
        section 1124(c) multiplied by 1.72.
    ``(d) Local Educational Agency Allocations.--For fiscal years 1995 
through 1998, grants shall be calculated by the Secretary on the basis 
of the number of children counted under section 1124 for counties, and 
State educational agencies shall suballocate county amounts to local 
educational agencies, in accordance with regulations published by the 
Secretary. In any State in which a large number of local educational 
agencies overlap county boundaries, the State educational agency may 
apply to the Secretary for authority during any particular fiscal year 
to make the allocations under this part (other than section 1124A) 
directly to local educational agencies without regard to the counties. 
If the Secretary approves an application of a State educational agency 
for a particular year under this subparagraph, the State educational 
agency shall provide assurances that--
        ``(1) such allocations will be made using precisely the same 
    factors for determining a grant as are used under this part;
        ``(2) such allocations will be made using alternative data 
    approved by the Secretary that the State determines best reflects 
    the distribution of children in poor families and is adjusted to be 
    equivalent in proportion to the number of children determined in 
    accordance with section 1124(c); or
        ``(3) such allocations will be made using data that the State 
    educational agency submits to the Secretary for approval that more 
    accurately target poverty.
In addition, the State educational agency shall provide assurances that 
a procedure will be established through which local educational 
agencies dissatisfied with the determinations made by the State 
educational agency may appeal directly to the Secretary for a final 
determination. For fiscal years beginning in 1999, for each local 
educational agency serving an area with a total population of at least 
20,000 persons, the grant under this section shall be the amount 
determined by the Secretary. For local educational agencies serving 
areas with total populations of fewer than 20,000 persons, the State 
educational agency may either (1) distribute to such local educational 
agencies grants under this section equal to the amounts determined by 
the Secretary; or (2) use an alternative method, approved by the 
Secretary, to distribute the share of the State's total grants under 
this section that is based on local educational agencies with total 
populations of fewer than 20,000 persons. Such an alternative method of 
distributing grants under this section among a State's local 
educational agencies serving areas with total populations of fewer than 
20,000 persons shall be based upon population data that the State 
educational agency determines best reflects the current distribution of 
children in poor families among the State's local educational agencies 
serving areas with total populations of fewer than 20,000 persons. If a 
local educational agency serving an area with total populations of less 
than 20,000 persons is dissatisfied with the determination of its grant 
by the State educational agency, then the local educational agency may 
appeal this determination to the Secretary. The Secretary shall respond 
to this appeal within 45 days of receipt.
    ``(e) State Minimum.--Notwithstanding any other provision of this 
section or subsection (b)(1) or (d) of section 1122, from the total 
amount available for any fiscal year to carry out this section, each 
State shall be allotted at least the lesser of--
        ``(1) 0.25 percent of total appropriations; or
        ``(2) the average of--
            ``(A) one-quarter of 1 percent of the total amount 
        available to carry out this section; and
            ``(B) 150 percent of the national average grant under this 
        section per child described in section 1124(c), without 
        application of a weighting factor, multiplied by the State's 
        total number of children described in section 1124(c), without 
        application of a weighting factor.

``SEC. 1125A. EDUCATION FINANCE INCENTIVE PROGRAM.

    ``(a) Grants.--The Secretary is authorized to make grants to States 
from the sums appropriated pursuant to subsection (e) to carry out the 
purposes of this part.
    ``(b) Distribution Based Upon Fiscal Effort and Equity.--
        ``(1) In general.--Funds appropriated pursuant to subsection 
    (e) shall be allotted to each State based upon the number of 
    children aged 5 to 17, inclusive, of such State multiplied by the 
    product of--
            ``(A) such State's effort factor described in paragraph 
        (2); multiplied by
            ``(B) 1.30 minus such State's equity factor described in 
        paragraph (3),
    except that for each fiscal year no State shall receive less than 
    one-quarter of 1 percent of the total amount appropriated pursuant 
    to subsection (e) for such fiscal year.
        ``(2) Effort factor.--(A) Except as provided in subparagraph 
    (B), the effort factor for a State shall be determined in 
    accordance with the succeeding sentence, except that such factor 
    shall not be less than .95 nor greater than 1.05. The effort factor 
    determined under this sentence shall be a fraction the numerator of 
    which is the product of the three-year average per-pupil 
    expenditure in the State multiplied by the three-year average per 
    capita income in the United States and the denominator of which is 
    the product of the three-year average per capita income in such 
    State multiplied by the three-year average per-pupil expenditure in 
    the United States.
        ``(B) The effort factor for the Commonwealth of Puerto Rico 
    shall be equal to the lowest effort factor calculated under 
    subparagraph (A) for any State.
        ``(3) Equity factor.--(A)(i) Except as provided in subparagraph 
    (B), the Secretary shall determine the equity factor under this 
    section for each State in accordance with clause (ii).
        ``(ii)(I) For each State, the Secretary shall compute a 
    weighted coefficient of variation for the per-pupil expenditures of 
    local educational agencies in accordance with subclauses (II), 
    (III), (IV), and (V).
        ``(II) In computing coefficients of variation, the Secretary 
    shall weigh the variation between per-pupil expenditures in each 
    local educational agency and the average per-pupil expenditures in 
    the State according to the number of pupils in the local 
    educational agency.
        ``(III) In determining the number of pupils under this 
    paragraph in each local educational agency and each State, the 
    Secretary shall multiply the number of children from low-income 
    families by 1.4 under this paragraph.
        ``(IV) In computing coefficients of variation, the Secretary 
    shall include only those local educational agencies with an 
    enrollment of more than 200 students.
        ``(V) The Secretary shall compute separate coefficients of 
    variation for elementary, secondary, and unified local educational 
    agencies and shall combine such coefficients into a single weighted 
    average coefficient for the State by multiplying each coefficient 
    by the total enrollments of the local educational agencies in each 
    group, adding such products, and dividing such sum by the total 
    enrollments of the local educational agencies in the State.
        ``(B) The equity factor for a State that meets the disparity 
    standard described in section 222.63 of title 34, Code of Federal 
    Regulations (as such section was in effect on the day preceding the 
    date of enactment of this Act) or a State with only one local 
    educational agency shall be not greater than .10.
        ``(C) The Secretary may revise each State's equity factor as 
    necessary based on the advice of independent education finance 
    scholars to reflect other need-based costs of local educational 
    agencies in addition to low-income student enrollment, such as 
    differing geographic costs, costs associated with students with 
    disabilities, children with limited-English proficiency or other 
    meaningful educational needs, which deserve additional support. In 
    addition and also with the advice of independent education finance 
    scholars, the Secretary may revise each State's equity factor to 
    incorporate other valid and accepted methods to achieve adequacy of 
    educational opportunity that may not be reflected in a coefficient 
    of variation method.
    ``(c) Use of Funds.--All funds awarded to each State under this 
section shall be allocated to local educational agencies and schools on 
a basis consistent with the distribution of other funds to such 
agencies and schools under sections 1124, 1124A, and 1125 to carry out 
activities under this part.
    ``(d) Maintenance of Effort.--
        ``(1) In general.--Except as provided in paragraph (2), a State 
    is entitled to receive its full allotment of funds under this part 
    for any fiscal year if the Secretary finds that either the combined 
    fiscal effort per student or the aggregate expenditures within the 
    State with respect to the provision of free public education for 
    the fiscal year preceding the fiscal year for which the 
    determination is made was not less than 90 percent of such combined 
    fiscal effort or aggregate expenditures for the second fiscal year 
    preceding the fiscal year for which the determination is made.
        ``(2) Reduction of funds.--The Secretary shall reduce the 
    amount of the of funds awarded to any State under this section in 
    any fiscal year in the exact proportion to which the State fails to 
    meet the requirements of paragraph (1) by falling below 90 percent 
    of both the fiscal effort per student and aggregate expenditures 
    (using the measure most favorable to the State), and no such lesser 
    amount shall be used for computing the effort required under 
    paragraph (1) for subsequent years.
        ``(3) Waivers.--The Secretary may waive, for one fiscal year 
    only, the requirements of this subsection if the Secretary 
    determines that such a waiver would be equitable due to exceptional 
    or uncontrollable circumstances such as a natural disaster or a 
    precipitous and unforeseen decline in the financial resources of 
    the State.
    ``(e) Authorization of Appropriations.--For the purpose of making 
grants under this section, there are authorized to be appropriated 
$200,000,000 for fiscal year 1996 and such sums as may be necessary for 
each of the three succeeding fiscal years.

``SEC. 1126. SPECIAL ALLOCATION PROCEDURES.

    ``(a) Allocations for Neglected Children.--
        ``(1) In general.--If a State educational agency determines 
    that a local educational agency in the State is unable or unwilling 
    to provide for the special educational needs of children who are 
    living in institutions for neglected children as described in 
    subparagraph 1124(c)(1)(C), the State educational agency shall, if 
    such agency assumes responsibility for the special educational 
    needs of such children, receive the portion of such local 
    educational agency's allocation under sections 1124, 1124A, and 
    1125 that is attributable to such children.
        ``(2) Special rule.--If the State educational agency does not 
    assume such responsibility, any other State or local public agency 
    that does assume such responsibility shall receive that portion of 
    the local educational agency's allocation.
    ``(b) Allocations Among Local Educational Agencies.--The State 
educational agency may allocate the amounts of grants under sections 
1124, 1124A, and 1125 among the affected local educational agencies--
        ``(1) if two or more local educational agencies serve, in whole 
    or in part, the same geographical area;
        ``(2) if a local educational agency provides free public 
    education for children who reside in the school district of another 
    local educational agency; or
        ``(3) to reflect the merger, creation, or change of boundaries 
    of one or more local educational agencies.
    ``(c) Reallocation.--If a State educational agency determines that 
the amount of a grant a local educational agency would receive under 
sections 1124, 1124A, and 1125 is more than such local agency will use, 
the State educational agency shall make the excess amount available to 
other local educational agencies in the State that need additional 
funds in accordance with criteria established by the State educational 
agency.

``SEC. 1127. CARRYOVER AND WAIVER.

    ``(a) Limitation on Carryover.--Notwithstanding section 421 of the 
General Education Provisions Act or any other provision of law, not 
more than 15 percent of the funds allocated to a local educational 
agency for any fiscal year under this subpart (but not including funds 
received through any reallocation under this subpart) may remain 
available for obligation by such agency for one additional fiscal year.
    ``(b) Waiver.--A State educational agency may, once every three 
years, waive the percentage limitation in subsection (a) if--
        ``(1) the agency determines that the request of a local 
    educational agency is reasonable and necessary; or
        ``(2) supplemental appropriations for this subpart become 
    available.
    ``(c) Exclusion.--The percentage limitation under subsection (a) 
shall not apply to any local educational agency that receives less than 
$50,000 under this subpart for any fiscal year.

             ``PART B--EVEN START FAMILY LITERACY PROGRAMS

``SEC. 1201. STATEMENT OF PURPOSE.

    ``It is the purpose of this part to help break the cycle of poverty 
and illiteracy by improving the educational opportunities of the 
Nation's low-income families by integrating early childhood education, 
adult literacy or adult basic education, and parenting education into a 
unified family literacy program, to be referred to as `Even Start'. The 
program shall--
        ``(1) be implemented through cooperative projects that build on 
    existing community resources to create a new range of services;
        ``(2) promote achievement of the National Education Goals; and
        ``(3) assist children and adults from low-income families to 
    achieve to challenging State content standards and challenging 
    State student performance standards.

``SEC. 1202. PROGRAM AUTHORIZED.

    ``(a) Reservation for Migrant Programs, Outlying Areas, and Indian 
Tribes.--
        ``(1) In general.--For each fiscal year, the Secretary shall 
    reserve 5 percent of the amount appropriated under section 1002(b) 
    for programs, under such terms and conditions as the Secretary 
    shall establish, that are consistent with the purpose of this part, 
    and according to their relative needs, for--
            ``(A) children of migratory workers;
            ``(B) the outlying areas; and
            ``(C) Indian tribes and tribal organizations.
        ``(2) Special rule.--If the amount of funds made available 
    under this subsection exceeds $4,600,000, the Secretary shall award 
    a grant, on a competitive basis, of sufficient size and for a 
    period of sufficient duration to demonstrate the effectiveness of a 
    family literacy program in a prison that houses women and their 
    preschool age children and that has the capability of developing a 
    program of high quality.
    ``(b) Reservation for Federal Activities.--From amounts 
appropriated under section 1002(b), the Secretary may reserve not more 
than three percent of such amounts or the amount reserved to carry out 
the activities described in paragraphs (1) and (2) of subsection (a) 
for the fiscal year 1994, whichever is greater, for purposes of--
        ``(1) carrying out the evaluation required by section 1209; and
        ``(2) providing, through grants or contracts with eligible 
    organizations, technical assistance, program improvement, and 
    replication activities.
    ``(c) Reservation for Grants.--
        ``(1) Grants authorized.--In any fiscal year in which the 
    amount appropriated to carry out this part exceeds the amount 
    appropriated to carry out this part for the preceding fiscal year, 
    the Secretary may reserve such funds in excess of the amount 
    appropriated for such preceding fiscal years as do not exceed 
    $1,000,000 to award grants, on a competitive basis, to States to 
    enable such States to plan and implement, statewide family literacy 
    initiatives to coordinate and integrate existing Federal, State, 
    and local literacy resources consistent with the purposes of this 
    part. Such coordination and integration shall include funds 
    available under the Adult Education Act, Head Start, Even Start, 
    and the Family Support Act of 1988.
        ``(2) Matching requirement.--The Secretary shall not make a 
    grant to a State under paragraph (1) unless the State agrees that, 
    with respect to the costs to be incurred by the eligible consortium 
    in carrying out the activities for which the grant was awarded, the 
    State will make available non-Federal contributions in an amount 
    equal to not less than the Federal funds provided under the grant.
    ``(d) State Allocation.--
        ``(1) In general.--From amounts appropriated under section 
    1002(b) and not reserved under subsections (a), (b), and (c), the 
    Secretary shall make grants to States from allocations under 
    paragraph (2).
        ``(2) Allocations.--Except as provided in paragraph (3), from 
    the total amount available for allocation to States in any fiscal 
    year, each State shall be eligible to receive a grant under 
    paragraph (1) in an amount that bears the same ratio to such total 
    amount as the amount allocated under part A to that State bears to 
    the total amount allocated under that section to all the States.
        ``(3) Minimum.--No State shall receive a grant under paragraph 
    (1) in any fiscal year in an amount which is less than $250,000, or 
    one-half of 1 percent of the amount appropriated under section 
    1002(b) and not reserved under subsections (a), (b), and (c) for 
    such year, whichever is greater.
    ``(e) Definitions.--For the purpose of this part--
        ``(1) the term `eligible entity' means a partnership composed 
    of both--
            ``(A) a local educational agency; and
            ``(B) a nonprofit community-based organization, a public 
        agency other than a local educational agency, an institution of 
        higher education, or a public or private nonprofit organization 
        other than a local educational agency, of demonstrated quality;
        ``(2) the term `eligible organization' means any public or 
    private nonprofit organization with a record of providing effective 
    services to family literacy providers, such as the National Center 
    for Family Literacy, Parents as Teachers, Inc., the Home 
    Instruction Program for Preschool Youngsters, and the Home and 
    School Institute, Inc.;
        ``(3) the terms `Indian tribe' and `tribal organization' have 
    the meanings given such terms in section 4 of the Indian Self-
    Determination and Education Assistance Act; and
        ``(4) the term `State' includes each of the 50 States, the 
    District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 1203. STATE PROGRAMS.

    ``(a) State Level Activities.--Each State that receives a grant 
under section 1202(d)(1) may use not more than 5 percent of the grant 
funds for the costs of--
        ``(1) administration; and
        ``(2) providing, through one or more subgrants or contracts, 
    technical assistance for program improvement and replication, to 
    eligible entities that receive subgrants under subsection (b).
    ``(b) Subgrants for Local Programs.--
        ``(1) In general.--Each State shall use the grant funds 
    received under section 1202(d)(1) and not reserved under subsection 
    (a) to award subgrants to eligible entities to carry out Even Start 
    programs.
        ``(2) Minimum.--No State shall award a subgrant under paragraph 
    (1) in an amount less than $75,000, except that a State may award 
    one subgrant in each fiscal year of sufficient size, scope, and 
    quality to be effective in an amount less than $75,000 if, after 
    awarding subgrants under paragraph (1) for such fiscal year in 
    amounts of $75,000 or greater, less than $75,000 is available to 
    the State to award such subgrants.

``SEC. 1204. USES OF FUNDS.

    ``(a) In General.--In carrying out an Even Start program under this 
part, a recipient of funds under this part shall use such funds to pay 
the Federal share of the cost of providing family-centered education 
programs that involve parents and children, from birth through age 
seven, in a cooperative effort to help parents become full partners in 
the education of their children and to assist children in reaching 
their full potential as learners.
    ``(b) Federal Share Limitation.--
        ``(1) In general.--(A) Except as provided in paragraph (2), the 
    Federal share under this part may not exceed--
            ``(i) 90 percent of the total cost of the program in the 
        first year that such program receives assistance under this 
        part or its predecessor authority;
            ``(ii) 80 percent in the second such year;
            ``(iii) 70 percent in the third such year;
            ``(iv) 60 percent in the fourth such year; and
            ``(v) 50 percent in any subsequent such year.
        ``(B) The remaining cost of a program assisted under this part 
    may be provided in cash or in kind, fairly evaluated and may be 
    obtained from any source, including other Federal funds under this 
    Act.
        ``(2) Waiver.--The State educational agency may waive, in whole 
    or in part, the cost-sharing requirement described in paragraph (1) 
    for an eligible entity if such entity--
            ``(A) demonstrates that such entity otherwise would not be 
        able to participate in the program assisted under this part; 
        and
            ``(B) negotiates an agreement with the State educational 
        agency with respect to the amount of the remaining cost to 
        which the waiver will be applicable.
        ``(3) Prohibition.--Federal funds provided under this part may 
    not be used for the indirect costs of a program assisted under this 
    part, except that the Secretary may waive this paragraph if an 
    eligible recipient of funds reserved under section 1202(a)(1)(C) 
    demonstrates to the Secretary's satisfaction that such recipient 
    otherwise would not be able to participate in the program assisted 
    under this part.

``SEC. 1205. PROGRAM ELEMENTS.

    ``Each program assisted under this part shall--
        ``(1) include the identification and recruitment of families 
    most in need of services provided under this part, as indicated by 
    a low level of income, a low level of adult literacy or English 
    language proficiency of the eligible parent or parents, and other 
    need-related indicators;
        ``(2) include screening and preparation of parents, including 
    teenage parents and children to enable such parents to participate 
    fully in the activities and services provided under this part, 
    including testing, referral to necessary counselling, other 
    developmental and support services, and related services;
        ``(3) be designed to accommodate the participants' work 
    schedule and other responsibilities, including the provision of 
    support services, when such services are unavailable from other 
    sources, necessary for participation in the activities assisted 
    under this part, such as--
            ``(A) scheduling and locating of services to allow joint 
        participation by parents and children;
            ``(B) child care for the period that parents are involved 
        in the program provided under this part; and
            ``(C) transportation for the purpose of enabling parents 
        and their children to participate in programs authorized by 
        this part;
        ``(4) include high-quality instructional programs that promote 
    adult literacy and empower parents to support the educational 
    growth of their children, developmentally appropriate early 
    childhood educational services, and preparation of children for 
    success in regular school programs;
        ``(5) include special training of staff, including child care 
    staff, to develop the skills necessary to work with parents and 
    young children in the full range of instructional services offered 
    through this part;
        ``(6) provide and monitor integrated instructional services to 
    participating parents and children through home-based programs;
        ``(7) operate on a year-round basis, including the provision of 
    some program services, instructional or enrichment, during the 
    summer months;
        ``(8) be coordinated with--
            ``(A) programs assisted under other parts of this title and 
        this Act;
            ``(B) any relevant programs under the Adult Education Act, 
        the Individuals with Disabilities Education Act, and the Job 
        Training Partnership Act; and
            ``(C) the Head Start program, volunteer literacy programs, 
        and other relevant programs;
        ``(9) ensure that the programs will serve those families most 
    in need of the activities and services provided by this part; and
        ``(10) provide for an independent evaluation of the program.

``SEC. 1206. ELIGIBLE PARTICIPANTS.

    ``(a) In General.--Except as provided in subsection (b), eligible 
participants in an Even Start program are--
        ``(1) a parent or parents--
            ``(A) who are eligible for participation in an adult basic 
        education program under the Adult Education Act; or
            ``(B) who are within the State's compulsory school 
        attendance age range, so long as a local educational agency 
        provides (or ensures the availability of) the basic education 
        component required under this part; and
        ``(2) the child or children, from birth through age seven, of 
    any individual described in paragraph (1).
    ``(b) Eligibility for Certain Other Participants.--
        ``(1) In general.--Family members of eligible participants 
    described in subsection (a) may participate in activities and 
    services provided under this part, when appropriate to serve the 
    purpose of this part.
        ``(2) Special rule.--Any family participating in a program 
    assisted under this part that becomes ineligible for such 
    participation as a result of one or more members of the family 
    becoming ineligible for such participation may continue to 
    participate in the program until all members of the family become 
    ineligible for such participation, which--
            ``(A) in the case of a family in which ineligibility was 
        due to the child or children of such family attaining the age 
        of eight, shall be in two years or when the parent or parents 
        become ineligible due to educational advancement, whichever 
        occurs first; and
            ``(B) in the case of a family in which ineligibility was 
        due to the educational advancement of the parent or parents of 
        such family, shall be when all children in the family attain 
        the age of eight.

``SEC. 1207. APPLICATIONS.

    ``(a) Submission.--To be eligible to receive a subgrant under this 
part, an eligible entity shall submit an application to the State 
educational agency in such form and containing or accompanied by such 
information as the State educational agency shall require.
    ``(b) Required Documentation.--Each application shall include 
documentation, satisfactory to the State educational agency, that the 
eligible entity has the qualified personnel needed--
        ``(1) to develop, administer, and implement an Even Start 
    program under this part; and
        ``(2) to provide access to the special training necessary to 
    prepare staff for the program, which may be offered by an eligible 
    organization.
    ``(c) Plan.--
        ``(1) In general.--Such application shall also include a plan 
    of operation for the program which shall include--
            ``(A) a description of the program goals;
            ``(B) a description of the activities and services that 
        will be provided under the program, including a description of 
        how the program will incorporate the program elements required 
        by section 1205;
            ``(C) a description of the population to be served and an 
        estimate of the number of participants to be served;
            ``(D) as appropriate, a description of the applicant's 
        collaborative efforts with institutions of higher education, 
        community-based organizations, the State educational agency, 
        private elementary schools, or other eligible organizations in 
        carrying out the program for which assistance is sought;
            ``(E) a statement of the methods that will be used--
                ``(i) to ensure that the programs will serve families 
            most in need of the activities and services provided by 
            this part;
                ``(ii) to provide services under this part to 
            individuals with special needs, such as individuals with 
            limited English proficiency and individuals with 
            disabilities; and
                ``(iii) to encourage participants to remain in the 
            program for a time sufficient to meet the program's 
            purpose; and
            ``(F) a description of how the plan is integrated with 
        other programs under this Act, the Goals 2000: Educate America 
        Act, or other Acts, as appropriate, consistent with section 
        14306.
        ``(2) Duration of the plan.--Each plan submitted under 
    paragraph (1)(A) shall--
            ``(A) remain in effect for the duration of the eligible 
        entity's participation under this part; and
            ``(B) be periodically reviewed and revised by the eligible 
        entity as necessary.
    ``(d) Consolidated Application.--The plan described in subsection 
(c)(1)(F) may be submitted as part of a consolidated application under 
section 14302.

``SEC. 1208. AWARD OF SUBGRANTS.

    ``(a) Selection Process.--
        ``(1) In general.--The State educational agency shall establish 
    a review panel in accordance with paragraph (3) that will approve 
    applications that--
            ``(A) are most likely to be successful in--
                ``(i) meeting the purpose of this part; and
                ``(ii) effectively implementing the program elements 
            required under section 1205;
            ``(B) demonstrate that the area to be served by such 
        program has a high percentage or a large number of children and 
        families who are in need of such services as indicated by high 
        levels of poverty, illiteracy, unemployment, limited-English 
        proficiency, or other need-related indicators, including a high 
        percentage of children to be served by the program who reside 
        in a school attendance area eligible for participation in 
        programs under part A;
            ``(C) provide services for at least a three-year age range, 
        which may begin at birth;
            ``(D) demonstrate the greatest possible cooperation and 
        coordination between a variety of relevant service providers in 
        all phases of the program;
            ``(E) include cost-effective budgets, given the scope of 
        the application;
            ``(F) demonstrate the applicant's ability to provide the 
        Federal share required by section 1204(b);
            ``(G) are representative of urban and rural regions of the 
        State; and
            ``(H) show the greatest promise for providing models that 
        may be adopted by other local educational agencies.
        ``(2) Priority for subgrants.--The State educational agency 
    shall give priority for subgrants under this subsection to 
    applications that--
            ``(A) target services primarily to families described in 
        paragraph (1)(B); or
            ``(B) are located in areas designated as empowerment zones 
        or enterprise communities.
        ``(3) Review panel.--A review panel shall consist of at least 
    three members, including one early childhood professional, one 
    adult education professional, and one or more of the following 
    individuals:
            ``(A) A representative of a parent-child education 
        organization.
            ``(B) A representative of a community-based literacy 
        organization.
            ``(C) A member of a local board of education.
            ``(D) A representative of business and industry with a 
        commitment to education.
            ``(E) An individual who has been involved in the 
        implementation of programs under this title in the State.
    ``(b) Duration.--
        ``(1) In general.--Subgrants under this part may be awarded for 
    a period not to exceed four years.
        ``(2) Startup period.--The State educational agency may provide 
    subgrant funds to an eligible recipient, at such recipient's 
    request, for a three- to six-month startup period during the first 
    year of the four-year grant period, which may include staff 
    recruitment and training, and the coordination of services, before 
    requiring full implementation of the program.
        ``(3) Continuing eligibility.--In awarding subgrant funds to 
    continue a program under this part for the second, third, or fourth 
    year, the State educational agency shall review the progress being 
    made toward meeting the objectives of the program after the 
    conclusion of the startup period, if any.
        ``(4) Insufficient progress.--The State educational agency may 
    refuse to award subgrant funds if such agency finds that sufficient 
    progress has not been made toward meeting such objectives, but only 
    after affording the applicant notice and an opportunity for a 
    hearing.
        ``(5) Grant renewal.--(A) An eligible entity that has 
    previously received a subgrant under this part may reapply under 
    this part for additional subgrants. An eligible recipient may 
    receive funds under this part for a period not to exceed eight 
    years.
        ``(B) The Federal share of any subgrant renewed under 
    subparagraph (A) shall not exceed 50 percent in any fiscal year.

``SEC. 1209. EVALUATION.

    ``From funds reserved under section 1202(b)(1), the Secretary shall 
provide for an independent evaluation of programs assisted under this 
part--
        ``(1) to determine the performance and effectiveness of 
    programs assisted under this part; and
        ``(2) to identify effective Even Start programs assisted under 
    this part that can be duplicated and used in providing technical 
    assistance to Federal, State, and local programs.

``SEC. 1210. CONSTRUCTION.

    ``Nothing in this part shall be construed to prohibit a recipient 
of funds under this part from serving students participating in Even 
Start simultaneously with students with similar educational needs, in 
the same educational settings where appropriate.

               ``PART C--EDUCATION OF MIGRATORY CHILDREN

``SEC. 1301. PROGRAM PURPOSE.

    ``It is the purpose of this part to assist States to--
        ``(1) support high-quality and comprehensive educational 
    programs for migratory children to help reduce the educational 
    disruptions and other problems that result from repeated moves;
        ``(2) ensure that migratory children are provided with 
    appropriate educational services (including supportive services) 
    that address their special needs in a coordinated and efficient 
    manner;
        ``(3) ensure that migratory children have the opportunity to 
    meet the same challenging State content standards and challenging 
    State student performance standards that all children are expected 
    to meet;
        ``(4) design programs to help migratory children overcome 
    educational disruption, cultural and language barriers, social 
    isolation, various health-related problems, and other factors that 
    inhibit the ability of such children to do well in school, and to 
    prepare such children to make a successful transition to 
    postsecondary education or employment; and
        ``(5) ensure that migratory children benefit from State and 
    local systemic reforms.

``SEC. 1302. PROGRAM AUTHORIZED.

    ``In order to carry out the purpose of this part, the Secretary 
shall make grants to State educational agencies, or combinations of 
such agencies, to establish or improve, directly or through local 
operating agencies, programs of education for migratory children in 
accordance with this part.

``SEC. 1303. STATE ALLOCATIONS.

    ``(a) State Allocations.--Each State (other than the Commonwealth 
of Puerto Rico) is entitled to receive under this part, for each fiscal 
year, an amount equal to--
        ``(1) the sum of the estimated number of migratory children 
    aged three through 21 who reside in the State full time and the 
    full-time equivalent of the estimated number of migratory children 
    aged three through 21 who reside in the State part time, as 
    determined in accordance with subsection (e); multiplied by
        ``(2) 40 percent of the average per-pupil expenditure in the 
    State, except that the amount determined under this paragraph shall 
    not be less than 32 percent, nor more than 48 percent, of the 
    average expenditure per pupil in the United States.
    ``(b) Allocation to Puerto Rico.--For each fiscal year, the amount 
for which the Commonwealth of Puerto Rico is eligible under this 
section shall be equal to--
        ``(1) the number of migratory children in Puerto Rico, 
    determined under subsection (a)(1); multiplied by
        ``(2) the product of--
            ``(A) the percentage that the average per-pupil expenditure 
        in Puerto Rico is of the lowest average per-pupil expenditure 
        of any of the 50 States; and
            ``(B) 32 percent of the average per-pupil expenditure in 
        the United States.
    ``(c) Ratable Reductions; Reallocations.--
        ``(1) In general.--(A) If, after the Secretary reserves funds 
    under section 1308(c), the amount appropriated to carry out this 
    part for any fiscal year is insufficient to pay in full the amounts 
    for which all States are eligible, the Secretary shall ratably 
    reduce each such amount.
        ``(B) If additional funds become available for making such 
    payments for any fiscal year, the Secretary shall allocate such 
    funds to States in amounts that the Secretary determines will best 
    carry out the purpose of this part.
        ``(2) Special rule.--(A) The Secretary shall further reduce the 
    amount of any grant to a State under this part for any fiscal year 
    if the Secretary determines, based on available information on the 
    numbers and needs of migratory children in the State and the 
    program proposed by the State to address such needs, that such 
    amount exceeds the amount required under section 1304.
        ``(B) The Secretary shall reallocate such excess funds to other 
    States whose grants under this part would otherwise be insufficient 
    to provide an appropriate level of services to migratory children, 
    in such amounts as the Secretary determines are appropriate.
    ``(d) Consortium Arrangements.--
        ``(1) In general.--In the case of a State that receives a grant 
    of $1,000,000 or less under this section, the Secretary shall 
    consult with the State educational agency to determine whether 
    consortium arrangements with another State or other appropriate 
    entity would result in delivery of services in a more effective and 
    efficient manner.
        ``(2) Proposals.--Any State, regardless of the amount of such 
    State's allocation, may submit a consortium arrangement to the 
    Secretary for approval.
        ``(3) Approval.--The Secretary shall approve a consortium 
    arrangement under paragraph (1) or (2) if the proposal demonstrates 
    that the arrangement will--
            ``(A) reduce administrative costs or program function costs 
        for State programs; and
            ``(B) make more funds available for direct services to add 
        substantially to the welfare or educational attainment of 
        children to be served under this part.
    ``(e) Determining Numbers of Eligible Children.--In order to 
determine the estimated number of migratory children residing in each 
State for purposes of this section, the Secretary shall--
        ``(1) use such information as the Secretary finds most 
    accurately reflects the actual number of migratory children;
        ``(2) develop and implement a procedure for more accurately 
    reflecting cost factors for different types of summer and 
    intersession program designs;
        ``(3) adjust the full-time equivalent number of migratory 
    children who reside in each State to take into account--
            ``(A) the special needs of those children participating in 
        special programs provided under this part that operate during 
        the summer and intersession periods; and
            ``(B) the additional costs of operating such programs; and
        ``(4) conduct an analysis of the options for adjusting the 
    formula so as to better direct services to the child whose 
    education has been interrupted.

``SEC. 1304. STATE APPLICATIONS; SERVICES.

    ``(a) Application Required.--Any State desiring to receive a grant 
under this part for any fiscal year shall submit an application to the 
Secretary at such time and in such manner as the Secretary may require.
    ``(b) Program Information.--Each such application shall include--
        ``(1) a description of how, in planning, implementing, and 
    evaluating programs and projects assisted under this part, the 
    State and its local operating agencies will ensure that the special 
    educational needs of migratory children, including preschool 
    migratory children, are identified and addressed through a 
    comprehensive plan for needs assessment and service delivery that 
    meets the requirements of section 1306;
        ``(2) a description of the steps the State is taking to provide 
    all migratory students with the opportunity to meet the same 
    challenging State content standards and challenging State student 
    performance standards that all children are expected to meet;
        ``(3) a description of how the State will use funds received 
    under this part to promote interstate and intrastate coordination 
    of services for migratory children, including how, consistent with 
    procedures the Secretary may require, the State will provide for 
    educational continuity through the timely transfer of pertinent 
    school records, including information on health, when children move 
    from one school to another, whether or not such move occurs during 
    the regular school year;
        ``(4) a description of the State's priorities for the use of 
    funds received under this part, and how such priorities relate to 
    the State's assessment of needs for services in the State;
        ``(5) a description of how the State will determine the amount 
    of any subgrants the State will award to local operating agencies, 
    taking into account the requirements of paragraph (1); and
        ``(6) such budgetary and other information as the Secretary may 
    require.
    ``(c) Assurances.--Each such application shall also include 
assurances, satisfactory to the Secretary, that--
        ``(1) funds received under this part will be used only--
            ``(A) for programs and projects, including the acquisition 
        of equipment, in accordance with section 1306(b)(1); and
            ``(B) to coordinate such programs and projects with similar 
        programs and projects within the State and in other States, as 
        well as with other Federal programs that can benefit migratory 
        children and their families;
        ``(2) such programs and projects will be carried out in a 
    manner consistent with the objectives of section 1114, subsections 
    (b) and (d) of section 1115, section 1120, and subsections (b) and 
    (c) of section 1120A, and part F;
        ``(3) in the planning and operation of programs and projects at 
    both the State and local operating agency level, there is 
    appropriate consultation with parent advisory councils for programs 
    of one school year in duration, and that all such programs and 
    projects are carried out, to the extent feasible, in a manner 
    consistent with section 1118;
        ``(4) in planning and carrying out such programs and projects, 
    there has been, and will be, adequate provision for addressing the 
    unmet education needs of preschool migratory children;
        ``(5) the effectiveness of such programs and projects will be 
    determined, where feasible, using the same approaches and standards 
    that will be used to assess the performance of students, schools, 
    and local educational agencies under part A;
        ``(6) to the extent feasible, such programs and projects will 
    provide for--
            ``(A) advocacy and outreach activities for migratory 
        children and their families, including informing such children 
        and families of, or helping such children and families gain 
        access to, other education, health, nutrition, and social 
        services;
            ``(B) professional development programs, including 
        mentoring, for teachers and other program personnel;
            ``(C) family literacy programs, including such programs 
        that use models developed under Even Start;
            ``(D) the integration of information technology into 
        educational and related programs; and
            ``(E) programs to facilitate the transition of secondary 
        school students to postsecondary education or employment; and
        ``(7) the State will assist the Secretary in determining the 
    number of migratory children under section 1303(e), through such 
    procedures as the Secretary may require.
    ``(d) Priority for Services.--In providing services with funds 
received under this part, each recipient of such funds shall give 
priority to migratory children who are failing, or most at risk of 
failing, to meet the State's challenging State content standards and 
challenging State student performance standards, and whose education 
has been interrupted during the regular school year.
    ``(e) Continuation of Services.--Notwithstanding any other 
provision of this part--
        ``(1) a child who ceases to be a migratory child during a 
    school term shall be eligible for services until the end of such 
    term;
        ``(2) a child who is no longer a migratory child may continue 
    to receive services for one additional school year, but only if 
    comparable services are not available through other programs; and
        ``(3) secondary school students who were eligible for services 
    in secondary school may continue to be served through credit 
    accrual programs until graduation.

``SEC. 1305. SECRETARIAL APPROVAL; PEER REVIEW.

    ``(a) Secretarial Approval.--The Secretary shall approve each State 
application that meets the requirements of this part.
    ``(b) Peer Review.--The Secretary may review any such application 
with the assistance and advice of State officials and other individuals 
with relevant expertise.
``SEC. 1306. COMPREHENSIVE NEEDS ASSESSMENT AND SERVICE-DELIVERY PLAN; 
AUTHORIZED ACTIVITIES.
    ``(a) Comprehensive Plan.--
        ``(1) In general.--Each State that receives assistance under 
    this part shall ensure that the State and its local operating 
    agencies identify and address the special educational needs of 
    migratory children in accordance with a comprehensive State plan 
    that--
            ``(A) is integrated with other programs under this Act, the 
        Goals 2000: Educate America Act, or other Acts, as appropriate, 
        consistent with section 14306;
            ``(B) may be submitted as a part of consolidated 
        application under section 14302;
            ``(C) provides that migratory children will have an 
        opportunity to meet the same challenging State content 
        standards and challenging State student performance standards, 
        set out in such plans, that all children are expected to meet;
            ``(D) specifies measurable program goals and outcomes;
            ``(E) encompasses the full range of services that are 
        available for migratory children from appropriate local, State, 
        and Federal educational programs;
            ``(F) is the product of joint planning among such local, 
        State, and Federal programs, including programs under part A, 
        early childhood programs, and bilingual education programs 
        under part A of title VII; and
            ``(G) provides for the integration of services available 
        under this part with services provided by such other programs.
        ``(2) Duration of the plan.--Each such comprehensive State plan 
    shall--
            ``(A) remain in effect for the duration of the State's 
        participation under this part; and
            ``(B) be periodically reviewed and revised by the State, as 
        necessary, to reflect changes in the State's strategies and 
        programs under this part.
    ``(b) Authorized Activities.--
        ``(1) In general.--In implementing the comprehensive plan 
    described in subsection (a), each local operating agency shall have 
    the flexibility to determine the activities to be provided with 
    funds made available under this part, except that--
            ``(A) before funds under this part are used to provide 
        services described in subparagraph (B), such funds shall be 
        used to meet the identified needs of migratory children that--
                ``(i) result from the effects of their migratory 
            lifestyle, or are needed to permit migratory children to 
            participate effectively in school; and
                ``(ii) are not addressed by services provided under 
            other programs, including programs under part A; and
            ``(B) all migratory children who are eligible to receive 
        services under part A shall receive such services with funds 
        provided under this part or under part A.
        ``(2) Construction.--Nothing in this part shall be construed to 
    prohibit a local operating agency from serving migrant students 
    simultaneously with students with similar educational needs, in the 
    same educational settings where appropriate.
        ``(3) Special rule.--Notwithstanding section 1114, a school 
    that receives funds under this part shall continue to address the 
    identified needs described in paragraph (1)(A).

``SEC. 1307. BYPASS.

    ``The Secretary may use all or part of any State's allocation under 
this part to make arrangements with any public or private nonprofit 
agency to carry out the purpose of this part in such State if the 
Secretary determines that--
        ``(1) the State is unable or unwilling to conduct educational 
    programs for migratory children;
        ``(2) such arrangements would result in more efficient and 
    economic administration of such programs; or
        ``(3) such arrangements would add substantially to the welfare 
    or educational attainment of such children.

``SEC. 1308. COORDINATION OF MIGRANT EDUCATION ACTIVITIES.

    ``(a) Improvement of Coordination.--
        ``(1) In general.--The Secretary, in consultation with the 
    States, may make grants to, or enter into contracts with, State 
    educational agencies, local educational agencies, institutions of 
    higher education, and other public and private nonprofit entities 
    to improve the interstate and intrastate coordination among such 
    agencies' educational programs, including the establishment or 
    improvement of programs for credit accrual and exchange, available 
    to migratory students.
        ``(2) Duration.--Grants under this subpart may be awarded for 
    not more than five years.
    ``(b) Assistance and Reporting.--
        ``(1) Student records.--(A) The Secretary shall solicit 
    information on how student records are transferred from one school 
    to another and shall solicit recommendations on whether new 
    procedures and technologies for record transfer should be employed 
    to better meet the needs of the migrant population.
        ``(B) The Secretary shall also seek recommendations on the most 
    effective means for determining the number of students or full-time 
    equivalent students in each State for the purpose of allocating 
    funds under this part.
        ``(2) Report to congress.--(A) Not later than April 30, 1995, 
    the Secretary shall report to the Committee on Labor and Human 
    Resources of the Senate and the Committee on Education and Labor of 
    the House of Representatives the Secretary's findings and 
    recommendations, and shall include in this report, recommendations 
    for interim measures that may be taken to ensure continuity of 
    services in this program.
        ``(B) The Secretary shall assist States in developing effective 
    methods for the transfer of student records and in determining the 
    number of students or full-time equivalent students in each State 
    if such interim measures are required.
    ``(c) Availability of Funds.--For the purpose of carrying out this 
section in any fiscal year, the Secretary shall reserve not more than 
$6,000,000 of the amount appropriated to carry out this part for such 
year.
    ``(d) Incentive Grants.--
        ``(1) In general.--From the amounts made available to carry out 
    this section, the Secretary shall reserve not more than $1,500,000 
    to award, on a competitive basis, grants in the amount of not more 
    than $250,000 to State educational agencies with consortium 
    agreements under section 1303(d).
        ``(2) Limitation.--Not less than 10 of such grants shall be 
    awarded to States which receive allocations of less than $1,000,000 
    if such States have approved agreements.

``SEC. 1309. DEFINITIONS.

    ``As used in this part:
        ``(1) Local operating agency.--The term `local operating 
    agency' means--
            ``(A) a local educational agency to which a State 
        educational agency makes a subgrant under this part;
            ``(B) a public or nonprofit private agency with which a 
        State educational agency or the Secretary makes an arrangement 
        to carry out a project under this part; or
            ``(C) a State educational agency, if the State educational 
        agency operates the State's migrant education program or 
        projects directly.
        ``(2) Migratory child.--The term `migratory child' means a 
    child who is, or whose parent, spouse, or guardian is, a migratory 
    agricultural worker, including a migratory dairy worker, or a 
    migratory fisher, and who, in the preceding 36 months, in order to 
    obtain, or accompany such parent, spouse, or guardian in order to 
    obtain, temporary or seasonal employment in agricultural or fishing 
    work--
            ``(A) has moved from one school district to another;
            ``(B) in a State that is comprised of a single school 
        district, has moved from one administrative area to another 
        within such district; or
            ``(C) resides in a school district of more than 15,000 
        square miles, and migrates a distance of 20 miles or more to a 
        temporary residence to engage in a fishing activity.

 ``PART D--PREVENTION AND INTERVENTION PROGRAMS FOR CHILDREN AND YOUTH 
       WHO ARE NEGLECTED, DELINQUENT, OR AT RISK OF DROPPING OUT

``SEC. 1401. FINDINGS; PURPOSE; PROGRAM AUTHORIZED.

    ``(a) Findings.--Congress finds the following:
        ``(1) A large percentage of youth in the juvenile justice 
    system have poor academic achievement, are a year or more behind 
    grade level, and have dropped out of school.
        ``(2) There is a strong correlation between academic failure 
    and involvement in delinquent activities.
        ``(3) Preventing students from dropping out of local schools 
    and addressing the educational needs of delinquent youth can help 
    reduce the dropout rate and involvement in delinquent activities at 
    the same time.
        ``(4) Many schools and correctional facilities fail to 
    communicate regarding a youth's academic needs and students often 
    return to their home school ill-prepared to meet current curriculum 
    requirements.
        ``(5) Schools are often reluctant to deal with youth returning 
    from facilities and receive no funds to deal with the unique 
    educational and other needs of such youth.
        ``(6) A continuing need exists for activities and programs to 
    reduce the incidence of youth dropping out of school.
        ``(7) Federal dropout prevention programs have demonstrated 
    effectiveness in keeping children and youth in school.
        ``(8) Pregnant and parenting teens are a high at-risk group for 
    dropping out of school and should be targeted by dropout prevention 
    programs.
        ``(9) Such youth need a strong dropout prevention program which 
    provides such youth with high level skills and which provides 
    supports to youth returning from correctional facilities in order 
    to keep such youth in school.
    ``(b) Purpose.--It is the purpose of this part--
        ``(1) to improve educational services to children in local and 
    State institutions for neglected or delinquent children and youth 
    so that such children and youth have the opportunity to meet the 
    same challenging State content standards and challenging State 
    student performance standards that all children in the State will 
    be expected to meet;
        ``(2) to provide such children and youth the services needed to 
    make a successful transition from institutionalization to further 
    schooling or employment; and
        ``(3) to prevent at-risk youth from dropping out of school and 
    to provide dropouts and youth returning from institutions with a 
    support system to ensure their continued education.
    ``(c) Program Authorized.--In order to carry out the purpose of 
this part the Secretary shall make grants to State educational agencies 
to enable such agencies to award subgrants to State agencies and local 
educational agencies to establish or improve programs of education for 
neglected or delinquent children and youth at risk of dropping out of 
school before graduation.

``SEC. 1402. PAYMENTS FOR PROGRAMS UNDER THIS PART.

    ``(a) Agency Subgrants.--Based on the allocation amount computed 
under section 1412, the Secretary shall allocate to each State 
educational agency amounts necessary to make subgrants to State 
agencies.
    ``(b) Local Subgrants.--Each State shall retain, for purposes of 
subpart 2, funds generated throughout the State under part A based on 
youth residing in local correctional facilities, or attending community 
day programs for delinquent children and youth.
    ``(c) Use of Remaining Funds.--Each State shall use any funds 
remaining after allocations are made under subsection (a).

                   ``Subpart 1--State Agency Programs

``SEC. 1411. ELIGIBILITY.

    ``A State agency is eligible for assistance under this subpart if 
such State agency is responsible for providing free public education 
for children--
        ``(1) in institutions for neglected or delinquent children;
        ``(2) attending community day programs for neglected or 
    delinquent children; or
        ``(3) in adult correctional institutions.

``SEC. 1412. ALLOCATION OF FUNDS.

    ``(a) Subgrants to State Agencies.--
        ``(1) In general.--Each State agency described in section 1411 
    (other than an agency in the Commonwealth of Puerto Rico) is 
    eligible to receive a subgrant under this part, for each fiscal 
    year, an amount equal to the product of--
            ``(A) the number of neglected or delinquent children and 
        youth described in section 1411 who--
                ``(i) are enrolled for at least 15 hours per week in 
            education programs in adult correctional institutions; and
                ``(ii) are enrolled for at least 20 hours per week--

                    ``(I) in education programs in institutions for 
                neglected or delinquent children; or
                    ``(II) in community day programs for neglected or 
                delinquent children; and

            ``(B) 40 percent of the average per-pupil expenditure in 
        the State, except that the amount determined under this 
        paragraph shall not be less than 32 percent, or more than 48 
        percent, of the average per-pupil expenditure in the United 
        States.
        ``(2) Special rule.--The number of neglected or delinquent 
    children and youth determined under paragraph (1) shall--
            ``(A) be determined by the State agency by a deadline set 
        by the Secretary, except that no State agency shall be required 
        to determine the number of such children on a specific date set 
        by the Secretary; and
            ``(B) be adjusted, as the Secretary determines is 
        appropriate, to reflect the relative length of such agency's 
        annual programs.
    ``(b) Subgrants to State Agencies in Puerto Rico.--For each fiscal 
year, the amount of the subgrant for which a State agency in the 
Commonwealth of Puerto Rico is eligible under this part shall be equal 
to--
        ``(1) the number of children and youth counted under subsection 
    (a)(1) for the Commonwealth of Puerto Rico; multiplied by
        ``(2) the product of--
            ``(A) the percentage that the average per-pupil expenditure 
        in the Commonwealth of Puerto Rico is of the lowest average 
        per-pupil expenditure of any of the 50 States; and
            ``(B) 32 percent of the average per-pupil expenditure in 
        the United States.
    ``(c) Ratable Reductions in Case of Insufficient Appropriations.--
If the amount appropriated for any fiscal year for subgrants under 
subsections (a) and (b) is insufficient to pay the full amount for 
which all agencies are eligible under such subsections, the Secretary 
shall ratably reduce each such amount.

``SEC. 1413. STATE REALLOCATION OF FUNDS.

    ``If a State educational agency determines that a State agency does 
not need the full amount of the subgrant for which such State agency is 
eligible under this part for any fiscal year, the State educational 
agency may reallocate the amount that will not be needed to other 
eligible State agencies that need additional funds to carry out the 
purpose of this part, in such amounts as the State educational agency 
shall determine.

``SEC. 1414. STATE PLAN AND STATE AGENCY APPLICATIONS.

    ``(a) State Plan.--
        ``(1) In general.--Each State educational agency that desires 
    to receive a grant under this part shall submit, for approval by 
    the Secretary, a plan for meeting the needs of neglected and 
    delinquent youth and, where applicable, youth at risk of dropping 
    out of school which is integrated with other programs under this 
    Act, the Goals 2000: Educate America Act, or other Acts, as 
    appropriate, consistent with section 14306.
        ``(2) Contents.--Each such State plan shall--
            ``(A) describe the program goals, objectives, and 
        performance measures established by the State that will be used 
        to assess the effectiveness of the program in improving 
        academic and vocational skills of children in the program;
            ``(B) provide that, to the extent feasible, such children 
        will have the same opportunities to learn as such children 
        would have if such children were in the schools of local 
        educational agencies in the State; and
            ``(C) contain assurances that the State educational agency 
        will--
                ``(i) ensure that programs assisted under this part 
            will be carried out in accordance with the State plan 
            described in this subsection;
                ``(ii) carry out the evaluation requirements of section 
            1416;
                ``(iii) ensure that the State agencies receiving 
            subgrants under this subpart comply with all applicable 
            statutory and regulatory requirements; and
                ``(iv) provide such other information as the Secretary 
            may reasonably require.
        ``(3) Duration of the plan.--Each such State plan shall--
            ``(A) remain in effect for the duration of the State's 
        participation under this part; and
            ``(B) be periodically reviewed and revised by the State, as 
        necessary, to reflect changes in the State's strategies and 
        programs under this part.
    ``(b) Secretarial Approval; Peer Review.--
        ``(1) In general.--The Secretary shall approve each State plan 
    that meets the requirements of this part.
        ``(2) Peer review.--The Secretary may review any State plan 
    with the assistance and advice of individuals with relevant 
    expertise.
    ``(c) State Agency Applications.--Any State agency that desires to 
receive funds to carry out a program under this part shall submit an 
application to the State educational agency that--
        ``(1) describes the procedures to be used, consistent with the 
    State plan under section 1111, to assess the educational needs of 
    the children to be served;
        ``(2) provides assurances that in making services available to 
    youth in adult correctional facilities, priority will be given to 
    such youth who are likely to complete incarceration within a 2-year 
    period;
        ``(3) describes the program, including a budget for the first 
    year of the program, with annual updates to be provided to the 
    State educational agency;
        ``(4) describes how the program will meet the goals and 
    objectives of the State plan under this subpart;
        ``(5) describes how the State agency will consult with experts 
    and provide the necessary training for appropriate staff, to ensure 
    that the planning and operation of institution-wide projects under 
    section 1416 are of high quality;
        ``(6) describes how the agency will carry out the evaluation 
    requirements of section 14701 and how the results of the most 
    recent evaluation are used to plan and improve the program;
        ``(7) includes data showing that the agency has maintained 
    fiscal effort required of a local educational agency, in accordance 
    with section 14501 of this title;
        ``(8) describes how the programs will be coordinated with other 
    appropriate State and Federal programs, such as programs under the 
    Job Training Partnership Act, vocational education programs, State 
    and local dropout prevention programs, and special education 
    programs;
        ``(9) describes how appropriate professional development will 
    be provided to teachers and other staff;
        ``(10) designates an individual in each affected institution to 
    be responsible for issues relating to the transition of children 
    and youth from the institution to locally operated programs;
        ``(11) describes how the agency will, endeavor to coordinate 
    with businesses for training and mentoring for participating youth;
        ``(12) provides assurances that the agency will assist in 
    locating alternative programs through which students can continue 
    their education if students are not returning to school after 
    leaving the correctional facility;
        ``(13) provides assurances that the agency will work with 
    parents to secure parents' assistance in improving the educational 
    achievement of their children and preventing their children's 
    further involvement in delinquent activities;
        ``(14) provides assurances that the agency works with special 
    education youth in order to meet an existing individualized 
    education program and an assurance that the agency will notify the 
    youth's local school if such youth--
            ``(A) is identified as in need of special education 
        services while the youth is in the facility; and
            ``(B) intends to return to the local school;
        ``(15) provides assurances that the agency will work with youth 
    who dropped out of school before entering the facility to encourage 
    the youth to reenter school once the term of the youth has been 
    completed or provide the youth with the skills necessary to gain 
    employment, continue the education of the youth, or achieve a 
    secondary school diploma or the recognized equivalent if the youth 
    does not intend to return to school;
        ``(16) provides assurances that teachers and other qualified 
    staff are also trained to work with children with disabilities and 
    other students with special needs taking into consideration the 
    unique needs of such students;
        ``(17) describes any additional services provided to youth, 
    such as career counseling, and assistance in securing student loans 
    and grants; and
        ``(18) provides assurances that the program under this subpart 
    will be coordinated with any programs operated under the Juvenile 
    Justice and Delinquency Prevention Act of 1974 or other comparable 
    programs, if applicable.

``SEC. 1415. USE OF FUNDS.

    ``(a) In General.--
        ``(1) Uses.--A State agency shall use funds received under this 
    subpart only for programs and projects that--
            ``(A) are consistent with the State plan under section 
        1414(a); and
            ``(B) concentrate on providing participants with the 
        knowledge and skills needed to make a successful transition to 
        secondary school completion, further education, or employment.
        ``(2) Programs and projects.--Such programs and projects--
            ``(A) may include the acquisition of equipment;
            ``(B) shall be designed to support educational services 
        that--
                ``(i) except for institution-wide projects under 
            section 1416, are provided to children identified by the 
            State agency as failing, or most at risk of failing, to 
            meet the State's challenging State content standards and 
            challenging State student performance standards;
                ``(ii) supplement and improve the quality of the 
            educational services provided to such children by the State 
            agency; and
                ``(iii) afford such children an opportunity to learn to 
            such challenging State standards;
            ``(C) shall be carried out in a manner consistent with 
        section 1120A and part F of this title; and
            ``(D) may include the costs of meeting the evaluation 
        requirements of section 14701.
    ``(b) Supplement, Not Supplant.--A program under this subpart that 
supplements the number of hours of instruction students receive from 
State and local sources shall be considered to comply with the 
supplement, not supplant requirement of section 1120A without regard to 
the subject areas in which instruction is given during those hours.

``SEC. 1416. INSTITUTION-WIDE PROJECTS.

    ``A State agency that provides free public education for children 
and youth in an institution for neglected or delinquent children (other 
than an adult correctional institution) or attending a community-day 
program for such children may use funds received under this part to 
serve all children in, and upgrade the entire educational effort of, 
that institution or program if the State agency has developed, and the 
State educational agency has approved, a comprehensive plan for that 
institution or program that--
        ``(1) provides for a comprehensive assessment of the 
    educational needs of all youth in the institution or program 
    serving juveniles;
        ``(2) provides for a comprehensive assessment of the 
    educational needs of youth aged 20 and younger in adult facilities 
    who are expected to complete incarceration within a two-year 
    period;
        ``(3) describes the steps the State agency has taken, or will 
    take, to provide all children under age 21 with the opportunity to 
    meet challenging State content standards and challenging State 
    student performance standards in order to improve the likelihood 
    that the students will complete secondary school, attain secondary 
    diploma or its recognized equivalent, or find employment after 
    leaving the institution;
        ``(4) describes the instructional program, pupil services, and 
    procedures that will be used to meet the needs described in 
    paragraph (1), including, to the extent feasible, the provision of 
    mentors for students;
        ``(5) specifically describes how such funds will be used;
        ``(6) describes the measures and procedures that will be used 
    to assess student progress;
        ``(7) describes how the agency has planned, and will implement 
    and evaluate, the institution-wide or program-wide project in 
    consultation with personnel providing direct instructional services 
    and support services in institutions or community-day programs for 
    neglected or delinquent children and personnel from the State 
    educational agency; and
        ``(8) includes an assurance that the State agency has provided 
    for appropriate training for teachers and other instructional and 
    administrative personnel to enable such teachers and personnel to 
    carry out the project effectively.

``SEC. 1417. THREE-YEAR PROGRAMS OR PROJECTS.

    ``If a State agency operates a program or project under this 
subpart in which individual children are likely to participate for more 
than one year, the State educational agency may approve the State 
agency's application for a subgrant under this part for a period of not 
more than three years.

``SEC. 1418. TRANSITION SERVICES.

    ``(a) Transition Services.--Each State agency shall reserve not 
more than 10 percent of the amount such agency receives under this 
subpart for any fiscal year to support projects that facilitate the 
transition of children from State-operated institutions to local 
educational agencies.
    ``(b) Conduct of Projects.--A project supported under this section 
may be conducted directly by the State agency, or through a contract or 
other arrangement with one or more local educational agencies, other 
public agencies, or private nonprofit organizations.
    ``(c) Limitation.--Any funds reserved under subsection (a) shall be 
used only to provide transitional educational services, which may 
include pupil services and mentoring, to neglected and delinquent 
children in schools other than State-operated institutions.
    ``(d) Construction.--Nothing in this section shall be construed to 
prohibit a school that receives funds under subsection (a) from serving 
neglected and delinquent children simultaneously with students with 
similar educational needs, in the same educational settings where 
appropriate.

                   ``Subpart 2--Local Agency Programs

``SEC. 1421. PURPOSE.

    ``The purpose of this subpart is to support the operation of local 
educational agency programs which involve collaboration with locally 
operated correctional facilities to--
        ``(1) carry out high quality education programs to prepare 
    youth for secondary school completion, training, and employment, or 
    further education;
        ``(2) provide activities to facilitate the transition of such 
    youth from the correctional program to further education or 
    employment; and
        ``(3) operate dropout prevention programs in local schools for 
    youth at risk of dropping out of school and youth returning from 
    correctional facilities.
``SEC. 1422. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.
    ``(a) Local Subgrants.--With funds retained made available under 
section 1402(b), the State educational agency shall award subgrants to 
local educational agencies with high numbers or percentages of youth 
residing in locally operated (including county operated) correctional 
facilities for youth (including facilities involved in day programs).
    ``(b) Special Rule.--A local educational agency which includes a 
correctional facility that operates a school is not required to operate 
a dropout prevention program if more than 30 percent of the youth 
attending such facility will reside outside the boundaries of the local 
educational agency upon leaving such facility.
    ``(c) Notification.--A State educational agency shall notify local 
educational agencies within the State of the eligibility of such 
agencies to receive a subgrant under this subpart.

``SEC. 1423. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

    ``Eligible local educational agencies desiring assistance under 
this section shall submit an application to the State educational 
agency, containing such information as the State educational agency may 
require. Each such application shall include--
        ``(1) a description of the program to be assisted;
        ``(2) a description of formal agreements between--
            ``(A) the local educational agency; and
            ``(B) correctional facilities and alternative school 
        programs serving youth involved with the juvenile justice 
        system to operate programs for delinquent youth;
        ``(3) as appropriate, a description of how participating 
    schools will coordinate with facilities working with delinquent 
    youth to ensure that such youth are participating in an education 
    program comparable to one operating in the local school such youth 
    would attend;
        ``(4) as appropriate, a description of the dropout prevention 
    program operated by participating schools and the types of services 
    such schools will provide to at-risk youth in participating schools 
    and youth returning from correctional facilities;
        ``(5) as appropriate, a description of the youth expected to be 
    served by the dropout prevention program and how the school will be 
    coordinating existing educational programs to meet unique education 
    needs;
        ``(6) as appropriate, a description of how schools will 
    coordinate with existing social and health services to meet the 
    needs of students at risk of dropping out of school and other 
    participating students, including prenatal health care and 
    nutrition services related to the health of the parent and child, 
    parenting and child development classes, child care, targeted re-
    entry and outreach programs, referrals to community resources, and 
    scheduling flexibility;
        ``(7) as appropriate, a description of any partnerships with 
    local businesses to develop training and mentoring services for 
    participating students;
        ``(8) as appropriate, a description of how the program will 
    involve parents in efforts to improve the educational achievement 
    of their children, assist in dropout prevention activities, and 
    prevent the involvement of their children in delinquent activities;
        ``(9) a description of how the program under this subpart will 
    be coordinated with other Federal, State, and local programs, such 
    as programs under the Job Training and Partnership Act and 
    vocational education programs serving this at-risk population of 
    youth;
        ``(10) a description of how the program will be coordinated 
    with programs operated under the Juvenile Justice and Delinquency 
    Prevention Act of 1974 and other comparable programs, if 
    applicable;
        ``(11) as appropriate, a description of how schools will work 
    with probation officers to assist in meeting the needs of youth 
    returning from correctional facilities;
        ``(12) a description of efforts participating schools will make 
    to ensure correctional facilities working with youth are aware of a 
    child's existing individualized education program; and
        ``(13) as appropriate, a description of the steps participating 
    schools will take to find alternative placements for youth 
    interested in continuing their education but unable to participate 
    in a regular public school program.

``SEC. 1424. USES OF FUNDS.

    ``Funds provided to local educational agencies under this subpart 
may be used, where appropriate, for--
        ``(1) dropout prevention programs which serve youth at 
    educational risk, including pregnant and parenting teens, youth who 
    have come in contact with the juvenile justice system, youth at 
    least one year behind their expected grade level, migrant youth, 
    immigrant youth, students with limited-English proficiency and gang 
    members;
        ``(2) the coordination of health and social services for such 
    individuals if there is a likelihood that the provision of such 
    services, including day care and drug and alcohol counseling, will 
    improve the likelihood such individuals will complete their 
    education; and
        ``(3) programs to meet the unique education needs of youth at 
    risk of dropping out of school, which may include vocational 
    education, special education, career counseling, and assistance in 
    securing student loans or grants.

``SEC. 1425. PROGRAM REQUIREMENTS FOR CORRECTIONAL FACILITIES RECEIVING 
              FUNDS UNDER THIS SECTION.

    ``Each correctional facility entering into an agreement with a 
local educational agency under section 1422(a) to provide services to 
youth under this section shall--
        ``(1) where feasible, ensure educational programs in juvenile 
    facilities are coordinated with the student's home school, 
    particularly with respect to special education students with an 
    individualized education program;
        ``(2) notify the local school of a youth if the youth is 
    identified as in need of special education services while in the 
    facility;
        ``(3) where feasible, provide transition assistance to help the 
    youth stay in school, including coordination of services for the 
    family, counseling, assistance in accessing drug and alcohol abuse 
    prevention programs, tutoring, and family counseling;
        ``(4) provide support programs which encourage youth who have 
    dropped out to reenter school once their term has been completed or 
    provide such youth with the skills necessary for such youth to gain 
    employment or seek a secondary school diploma or its recognized 
    equivalent;
        ``(5) work to ensure such facilities are staffed with teachers 
    and other qualified staff who are trained to work with children 
    with disabilities and other students with special needs taking into 
    consideration the unique needs of such children and students;
        ``(6) ensure educational programs in correctional facilities 
    are related to assisting students meet high educational standards;
        ``(7) use, to the extent possible, technology to assist in 
    coordinating educational programs between the juvenile facility and 
    the community school;
        ``(8) where feasible, involve parents in efforts to improve the 
    educational achievement of their children and prevent the further 
    involvement of such children in delinquent activities;
        ``(9) coordinate funds received under this program with other 
    local, State, and Federal funds available to provide services to 
    participating youth, such as funds under the Job Training 
    Partnership Act, and vocational education funds;
        ``(10) coordinate programs operated under this subpart with 
    activities funded under the Juvenile Justice and Delinquency 
    Prevention Act of 1974 and other comparable programs, if 
    applicable; and
        ``(11) if appropriate, work with local businesses to develop 
    training and mentoring programs for participating youth.

``SEC. 1426. ACCOUNTABILITY.

    ``The State educational agency may--
        ``(1) reduce or terminate funding for projects under this 
    section if a local educational agency does not show progress in 
    reducing dropout rates for male students and for female students 
    over a 3-year period; and
        ``(2) require juvenile facilities to demonstrate, after 
    receiving assistance under this subpart for 3 years, that there has 
    been an increase in the number of youth returning to school, 
    obtaining a secondary school diploma or its recognized equivalent, 
    or obtaining employment after such youth are released.

                    ``Subpart 3--General Provisions

``SEC. 1431. PROGRAM EVALUATIONS.

    ``(a) Scope of Evaluation.--Each State agency or local educational 
agency that conducts a program under subpart 1 or 2 shall evaluate the 
program, disaggregating data on participation by sex, and if feasible, 
by race, ethnicity, and age, not less than once every three years to 
determine the program's impact on the ability of participants to--
        ``(1) maintain and improve educational achievement;
        ``(2) accrue school credits that meet State requirements for 
    grade promotion and secondary school graduation;
        ``(3) make the transition to a regular program or other 
    education program operated by a local educational agency; and
        ``(4) complete secondary school (or secondary school 
    equivalency requirements) and obtain employment after leaving the 
    institution.
    ``(b) Evaluation Measures.--In conducting each evaluation under 
subsection (a), a State agency or local educational agency shall use 
multiple and appropriate measures of student progress.
    ``(c) Evaluation Results.--Each State agency and local educational 
agency shall--
        ``(1) submit evaluation results to the State educational 
    agency; and
        ``(2) use the results of evaluations under this section to plan 
    and improve subsequent programs for participating children and 
    youth.

``SEC. 1432. DEFINITIONS.

    ``For the purpose of this part:
        ``(1) The term `adult correctional institution' means a 
    facility in which persons are confined as a result of a conviction 
    for a criminal offense, including persons under 21 years of age.
        ``(2) The term `at-risk youth' means school aged youth who are 
    at risk of academic failure, have drug or alcohol problems, are 
    pregnant or are parents, have come into contact with the juvenile 
    justice system in the past, are at least one year behind the 
    expected grade level for the age of the youth, have limited-English 
    proficiency, are gang members, have dropped out of school in the 
    past, or have high absenteeism rates at school.
        ``(3) The term `community day program' means a regular program 
    of instruction provided by a State agency at a community day school 
    operated specifically for neglected or delinquent children.
        ``(4) The term `institution for delinquent children and youth' 
    means a public or private residential facility for the care of 
    children who have been adjudicated to be delinquent or in need of 
    supervision.
        ``(5) The term `institution for neglected children' means a 
    public or private residential facility, other than a foster home, 
    that is operated for the care of children who have been committed 
    to the institution or voluntarily placed in the institution under 
    applicable State law, due to abandonment, neglect, or death of 
    their parents or guardians.

 ``PART E--FEDERAL EVALUATIONS, DEMONSTRATIONS, AND TRANSITION PROJECTS

``SEC. 1501. EVALUATIONS.

    ``(a) National Assessment.--
        ``(1) In general.--The Secretary shall conduct a national 
    assessment of programs assisted under this title, in coordination 
    with the ongoing National Evaluation under subsection (b) that 
    shall be planned, reviewed, and conducted in consultation with an 
    independent panel of researchers, State practitioners, local 
    practitioners, and other appropriate individuals.
        ``(2) Examination.--The assessment shall examine how well 
    schools, local educational agencies, and States are--
            ``(A) progressing toward the goal of all children served 
        under this title reaching the State's challenging State content 
        standards and challenging State student performance standards; 
        and
            ``(B) accomplishing the purpose set forth in section 
        1001(d) to achieve the goal described in paragraph (1), 
        including--
                ``(i) ensuring challenging State content standards and 
            challenging State student performance standards for all 
            children served under this title and aligning the efforts 
            of States, local educational agencies, and schools to help 
            such children reach such standards;
                ``(ii) providing children served under this title an 
            enriched and accelerated educational program through 
            schoolwide programs or through additional services that 
            increase the amount and quality of instructional time that 
            such children receive;
                ``(iii) promoting schoolwide reform and access for all 
            children served under this title to effective instructional 
            strategies and challenging academic content;
                ``(iv) significantly upgrading the quality of the 
            curriculum and instruction by providing staff in 
            participating schools with substantial opportunities for 
            professional development;
                ``(v) using and evaluating the usefulness of 
            opportunity-to-learn standards or strategies in improving 
            learning in schools receiving assistance under this part;
                ``(vi) coordinating services provided under all parts 
            of this title with each other, with other educational and 
            pupil services, including preschool services, and, to the 
            extent feasible, with health and social service programs 
            funded from other sources;
                ``(vii) affording parents of children served under this 
            title meaningful opportunities to participate in the 
            education of their children at home and at school, such as 
            the provision of family literacy services;
                ``(viii) distributing resources to areas where needs 
            are greatest;
                ``(ix) improving accountability, as well as teaching 
            and learning, by making assessments under this title 
            congruent with State assessment systems; and
                ``(x) providing greater decisionmaking authority and 
            flexibility to schools in exchange for greater 
            responsibility for student performance.
        ``(3) NAEP information.--Where feasible, the Secretary shall 
    use information gathered from a variety of sources, including the 
    National Assessment of Educational Progress, State evaluations, and 
    available research studies, in carrying out this subsection.
        ``(4) Interim and final reports.--The Secretary shall submit to 
    the President and the appropriate committees of the Congress an 
    interim report by January 1, 1996, summarizing the preliminary 
    findings of the assessment and a final report of the findings of 
    the assessment by January 1, 1998.
    ``(b) Studies and Data Collection.--
        ``(1) In general.--The Secretary may collect such data, as 
    necessary, at the State, local, and school levels and conduct 
    studies and evaluations, including national studies and 
    evaluations, to assess on an ongoing basis the effectiveness of 
    programs under this title and to report on such effectiveness on a 
    periodic basis. The Secretary shall report not later than December 
    31, 1997 to the Committee on Education and Labor of the House of 
    Representatives and the Committee on Labor and Human Resources of 
    the Senate on how schoolwide programs are meeting the needs of 
    children from migratory families.
        ``(2) Minimum information.--At a minimum, the Secretary shall 
    collect trend information on the effect of programs under this 
    title. Such data shall complement the data collected and reported 
    under subsections (a) and (c).
    ``(c) National Evaluation of Part A of Title I.--
        ``(1) In general.--The Secretary shall carry out an ongoing 
    evaluation of the program assisted under part A of title I in order 
    to provide the public, the Congress, and educators involved in such 
    program, an accurate description of the short- and long-term 
    effectiveness of such program and to provide information that can 
    be used to improve such program's effectiveness in enabling 
    students to meet challenging State content standards and 
    challenging State student performance standards, graduate from 
    secondary school, and make successful transitions to postsecondary 
    education and work. Such evaluation shall--
            ``(A) have a longitudinal design that tracks cohorts of 
        students within schools of differing poverty concentrations for 
        at least three years which, when the cohorts are taken as a 
        whole, provides a picture of such program's effectiveness over 
        the elementary and secondary grades;
            ``(B) be separate and independent from State and local 
        assessments and evaluations as required under this title;
            ``(C) utilize the highest available content standards that 
        are generally accepted as national in scope;
            ``(D) provide information on all students, students served 
        under part A, and, if funds are sufficient, information on 
        students from low-income families, limited-English-proficient 
        students, and students with disabilities; and
            ``(E) when feasible, collect, cross-tabulate, and report 
        data by sex within race or ethnicity and socioeconomic status.
        ``(2) Use.--The Secretary shall use the results of the 
    evaluation described in paragraph (1) as part of the national 
    assessment required by subsection (a) and shall report the data 
    from such evaluation to the Congress and the public at least as 
    frequently as reports are made under subsection (a)(4).
    ``(d) Developmentally Appropriate Measures.--In conducting the 
national assessment under subsection (a) and the national ongoing 
evaluation under subsection (c), the Secretary shall use 
developmentally appropriate measures to assess student performance and 
progress.
    ``(e) Parental Involvement, Study, Report and Dissemination.--
        ``(1) In general.--The Secretary, through the Office of 
    Education Research and Improvement, shall conduct a study to 
    identify and describe--
            ``(A) common barriers to effective parental involvement in 
        the education of participating children; and
            ``(B) successful local policies and programs which improve 
        parental involvement and the performance of participating 
        children.
        ``(2) Duties of secretary.--The Secretary shall--
            ``(A) complete such study by December 31, 1996;
            ``(B) report the findings of such study to the Committee on 
        Education and Labor of the House of Representatives and to the 
        Committee on Labor and Human Resources of the Senate; and
            ``(C) disseminate the findings, relating to the successful 
        local policies and programs which improve parental involvement 
        and the performance of participating children, to local 
        educational agencies.

``SEC. 1502. DEMONSTRATIONS OF INNOVATIVE PRACTICES.

    ``(a) Demonstration Programs To Improve Achievement.--
        ``(1) In general.--From the funds appropriated for any fiscal 
    year under section 1002(g)(2), the Secretary may make grants to 
    State educational agencies, local educational agencies, other 
    public agencies, nonprofit organizations, public or private 
    partnerships involving business and industry organizations, and 
    consortia of such entities to carry out demonstration projects that 
    show the most promise of enabling children served under this title 
    to meet challenging State content standards and challenging State 
    student performance standards. Such projects shall include 
    promising strategies such as--
            ``(A) accelerated curricula, the application of new 
        technologies to improve teaching and learning, extended 
        learning time, and a safe and enriched full-day environment for 
        children to provide children the opportunity to reach such 
        standards;
            ``(B) integration of education services with each other and 
        with health, family, and other social services such as 
        mentoring programs, particularly in empowerment zones and 
        enterprise communities;
            ``(C) effective approaches to whole school reform;
            ``(D) programs that have been especially effective with 
        limited-English-proficient children, migratory children and 
        other highly mobile students, children leaving institutions for 
        neglected or delinquent children and returning to school, and 
        homeless children and youth;
            ``(E) programs which are especially effective in 
        recruiting, inducting, and retaining highly qualified teachers 
        for service in schools with low student achievement; and
            ``(F) programs that are built upon partnerships developed 
        between elementary and middle schools, employers, and the 
        community, which emphasize the integration of high quality 
        academic and vocational learning, stress excellence and high 
        expectations for success in academic subjects, instill 
        responsibility, decisionmaking, problem solving, interpersonal 
        skills, and other compentencies in students, and make school 
        relevant to the workplace and the community, through applied 
        and interactive teaching methodologies, team teaching 
        strategies, learning opportunities connecting school, the 
        workplace, and the community, and career exploration, 
        awareness, and career guidance opportunities.
        ``(2) Evaluation.--The Secretary shall evaluate the 
    demonstration projects supported under this title, using rigorous 
    methodological designs and techniques, including control groups and 
    random assignment, to the extent feasible, to produce reliable 
    evidence of effectiveness.
    ``(b) Partnerships.--From funds appropriated under section 
1002(g)(2) for any fiscal year, the Secretary may, directly or through 
grants or contracts, work in partnership with State educational 
agencies, local educational agencies, other public agencies, and 
nonprofit organizations to disseminate and use the highest quality 
research and knowledge about effective practices to improve the quality 
of teaching and learning in schools assisted under this title.
``SEC. 1503. INNOVATIVE ELEMENTARY SCHOOL TRANSITION PROJECTS.
    ``(a) In General.--From the amount appropriated under section 
1002(g)(2), the Secretary shall provide not less than $10,000,000, but 
not more than $40,000,000 to support innovative transition projects in 
elementary schools authorized under this section.
    ``(b) Grants.--
        ``(1) Local programs.--The Secretary shall award grants to 
    local educational agencies (including such agencies that operate 
    Follow Through programs, Even Start, and other comparable programs) 
    that have formed consortia with early childhood programs (including 
    Head Start, where available) for the purpose of supporting 
    projects, for children from low-income families who previously 
    attended a Head Start program, Even Start program, or similar 
    preschool program, which provide education and other services in 
    early elementary grades.
        ``(2) Purposes of projects.--The purposes of projects assisted 
    under this section are to--
            ``(A) assist eligible children and their families in making 
        a successful transition from preschool through the early 
        elementary grades;
            ``(B) enable eligible children to achieve challenging 
        academic standards through a model, developmentally 
        appropriate, instructional program; and
            ``(C) support the active involvement of parents in the 
        education of their children.
        ``(3) Components.--A program assisted under this subsection--
            ``(A) shall provide transition to elementary school 
        activities, such as--
                ``(i) development of a transition plan for each child 
            which provides for instruction, support, and assistance 
            through the third grade;
                ``(ii) transfer of each child's preschool records to 
            the elementary school (with parental consent);
                ``(iii) formal meetings between a child's parent, 
            preschool teacher, and kindergarten or first grade teacher; 
            and
                ``(iv) kindergarten visits and other orientation 
            activities for preschool children prior to enrollment in 
            elementary school;
            ``(B) shall use an instructional approach which--
                ``(i) has been shown to be effective in providing 
            transition services; or
                ``(ii) shows promise of providing effective transition 
            services;
            ``(C) shall provide for the direct participation of the 
        parents of such children in the development, operation, and 
        evaluation of such program;
            ``(D) shall provide directly or through referral 
        comprehensive educational, health, nutritional, social, and 
        other services that aid in the continued development of 
        eligible children to their full potential;
            ``(E) shall ensure that each supportive services team 
        developed pursuant to subsection (c)(8) includes a sufficient 
        number of family service coordinators to adequately meet the 
        needs of eligible children and their families; and
            ``(F) may provide for the use of mentors who are secondary 
        school students to assist elementary and secondary students who 
        were formerly enrolled in Head Start or Even Start programs.
    ``(c) Applications.--An application for a grant under subsection 
(b) shall--
        ``(1) describe the goals which the applicant plans to achieve;
        ``(2) describe the instructional approach the applicant will 
    use, and the manner in which the applicant will implement such 
    approach;
        ``(3) describe the transition to elementary school activities 
    for which assistance is sought;
        ``(4) describe the members of the consortium required by 
    subsection (b)(1);
        ``(5) shall include evidence that the consortium members each 
    have performed assessments of their programs to ensure that such 
    members have the capacity to address the health, immunization, 
    mental health, nutrition, parenting education, literacy, social 
    service (including substance abuse, education, and prevention), and 
    educational needs of low-income students and their families whom 
    the consortium members plan to serve;
        ``(6) describe how the project will be coordinated with title 
    I, title VII, and other programs under this Act;
        ``(7) provide evidence that the proposed transition activities, 
    instruction, and other services to be provided by the applicant 
    have been specifically designed to build upon, and coordinate with, 
    the services provided to eligible children and their parents by 
    local Head Start, Even Start, and other similar preschool programs;
        ``(8) include--
            ``(A) a plan for the development of a support services 
        team, including a family service coordinator, to--
                ``(i) assist families, administrators, and teachers to 
            respond to health, immunization, mental health, nutrition, 
            social service, and educational needs of eligible students;
                ``(ii) conduct home visits and help students and their 
            families to obtain health, immunization, mental health, 
            nutrition, parenting education, literacy, education 
            (including tutoring and remedial services), and social 
            services (including substance abuse treatment, education, 
            and prevention), for which students and their families are 
            eligible;
                ``(iii) coordinate a family outreach and support 
            program, including a plan for involving parents in the 
            management of the program under subsection (b), in 
            cooperation with parental involvement efforts undertaken 
            pursuant to this part, the Head Start Act, and the 
            Individuals with Disabilities Education Act, including 
            school-parent compacts, parent volunteer activities, parent 
            education services and training such as the services and 
            training provided through the Even Start program, and 
            regular meetings; and
                ``(iv) assist families, administrators, and teachers in 
            enhancing developmental continuity between the programs 
            assisted under the Head Start Act, other early childhood 
            development programs, and elementary school classes; or
            ``(B) a description of the comprehensive, coordinated 
        services currently provided to children eligible for services 
        under this section;
        ``(9) designate a member of the support services team described 
    in paragraph (8) who will serve as the supervisor of such support 
    services team;
        ``(10) contain assurances that State agencies, local agencies, 
    and community-based organizations that provide support services to 
    low-income students served by the local educational agency 
    consortium have been consulted in the preparation of the plan 
    described in paragraph (8);
        ``(11) contain assurances that State agencies, local agencies, 
    and community-based organizations served by the local educational 
    agency consortium will designate an individual who will act as a 
    liaison to the support services team described in paragraph (8);
        ``(12) describe the target population to be served by the 
    support services team described in paragraph (8), including 
    families previously served under part C of the Head Start Act, or 
    other comparable early childhood development program;
        ``(13) describe the support services to be provided, directly 
    or through referral;
        ``(14) describe the Federal and non-Federal resources that will 
    be used to carry out the program;
        ``(15) contain assurances that the support services described 
    in paragraph (8) will be equipped to assist children and families 
    with limited-English proficiency or with disabilities;
        ``(16) include a plan describing how the program assisted under 
    this section will be sustained, with funding received under part A 
    or other Federal and non-Federal funding sources, after the grant 
    has expired; and
        ``(17) contain such other information as the Secretary may 
    reasonably require.
    ``(d) National Activities.--
        ``(1) In general.--Of the amount provided under subsection (a) 
    to carry out this section, the Secretary shall use not less than 
    $3,000,000 but not more than $5,000,000 to carry out national 
    activities to evaluate and improve the use of innovative transition 
    programs.
        ``(2) Technical assistance and training.-- Of the amount 
    reserved under paragraph (1), the Secretary shall use not less than 
    $3,000,000 to award grants to public and private nonprofit 
    agencies, institutions, and organizations to provide to consortia 
    which receive grants under subsection (b)(1) and, to the extent 
    feasible, to schools that are designated schoolwide programs under 
    section 1114--
            ``(A) technical assistance in the implementation and 
        expanded use of model transition and instructional approaches, 
        including the use of appropriate pedagogy, efforts to increase 
        parental involvement and providing access to coordinated 
        services; and
            ``(B) training in conjunction with the implementation and 
        operation of such model approaches.
        ``(3) Coordination and dissemination.--The Secretary, in 
    cooperation with the Secretary of Health and Human Services, may 
    promote coordination of activities assisted under this section with 
    the projects funded under the Head Start Transition Projects Act, 
    including a process to--
            ``(A) collect information on program activities and 
        results; and
            ``(B) disseminate information on successful transition 
        programs.
        ``(4) Evaluation.--(A) The Secretary, in cooperation with the 
    Secretary of Health and Human Services, is authorized to award 
    grants, or enter into contracts or cooperative agreements, to 
    provide for the evaluation of the programs assisted under this 
    section.
        ``(B) To the extent practicable, such evaluations shall be 
    conducted jointly with evaluations of Head Start Transition 
    Projects.
        ``(5) Other activities.--The Secretary may undertake other 
    activities to promote the replication of successful transition 
    programs.
    ``(e) Coordination of Regulations.--The Secretary shall work with 
the Secretary of Health and Human Services to coordinate regulations 
promulgated under this section with regulations promulgated under the 
Head Start Act Amendments of 1994.
    ``(f) General Provisions.--
        ``(1) Priority.--In awarding grants under subsection (b)(1), 
    the Secretary shall give priority to applicants that--
            ``(A) will operate a project under this section at a school 
        designated as a schoolwide program under section 1114;
            ``(B) serve local educational agencies that have the 
        highest numbers or percentages of poor children; and
            ``(C) demonstrate a significant commitment by the community 
        to the proposed program, as evidenced by the level of 
        resources, both cash and in-kind, from other public and private 
        sources available to the consortium.
        ``(2) Supplement.--An application for assistance under this 
    section may not be approved unless the Secretary is satisfied that 
    the services to be provided by the applicant will supplement, and 
    not supplant, services that previously provided other Federal 
    assistance.
        ``(3) Sufficient size.--A grant under subsection (b)(1) shall 
    be of sufficient size and scope to enable the grantee to operate a 
    project which meets the requirements of this section.
        ``(4) Urban and rural grants.--To the extent practicable, the 
    Secretary shall award grants under subsection (b)(1) to consortia 
    in both urban and rural areas.
        ``(5) Renewal grant.--To be eligible to renew a grant under the 
    section, an applicant that received assistance under subsection 
    (b)(1) shall demonstrate that the project achieved the purposes 
    described in subsection (b)(2).
    ``(g) Definitions.--As used in this section:
        ``(1) Family services coordinator.--The term `family services 
    coordinator' means an individual who has the skills necessary to 
    assist families in obtaining support services and may be an 
    existing employee of a local educational agency or Head Start 
    agency.
        ``(2) Head start agency.--The term `Head Start agency' means 
    any agency designated as a Head Start agency under the Head Start 
    Act (42 U.S.C. 9831 et seq.).
        ``(3) Support services.--The term `support services' means 
    services that enhance the physical, social, emotional, and 
    intellectual development of low-income children, including the 
    provision of necessary support to the parents and other family 
    members of such children.

                      ``PART F--GENERAL PROVISIONS

``SEC. 1601. FEDERAL REGULATIONS.

    ``(a) In General.--The Secretary is authorized to issue such 
regulations as are necessary to reasonably ensure that there is 
compliance with this title.
    ``(b) Negotiated Rulemaking Process.--
        ``(1) In general.--Prior to publishing in the Federal Register 
    proposed regulations to carry out this title, the Secretary shall 
    obtain the advice and recommendations of representatives of 
    Federal, State, and local administrators, parents, teachers, and 
    members of local boards of education involved with the 
    implementation and operation of programs under this title.
        ``(2) Meetings and electronic exchange.--Such advice and 
    recommendation may be obtained through such mechanisms as regional 
    meetings and electronic exchanges of information.
        ``(3) Proposed regulations.--After obtaining such advice and 
    recommendations, and prior to publishing proposed regulations, the 
    Secretary shall--
            ``(A) establish a negotiated rulemaking process on a 
        minimum of two key issues, including--
                ``(i) schoolwide programs; and
                ``(ii) standards and assessment;
            ``(B) select individuals to participate in such process 
        from among individuals or groups which provided advice and 
        recommendations, including representation from all geographic 
        regions of the United States; and
            ``(C) prepare a draft of proposed policy options that shall 
        be provided to the individuals selected by the Secretary under 
        subparagraph (A) not less than 15 days prior to the first 
        meeting under such process.
        ``(4) Process.--Such process--
            ``(A) shall be conducted in a timely manner to ensure that 
        final regulations are issued by the Secretary not later than 
        July 1, 1995; and
            ``(B) shall not be subject to the Federal Advisory 
        Committee Act but shall otherwise follow the provisions of the 
        Negotiated Rulemaking Act of 1990 (5 U.S.C. 561 et seq.).
        ``(5) Emergency situation.--In an emergency situation in which 
    regulations to carry out this title must be issued with a very 
    limited time to assist State and local educational agencies with 
    the operation of a program under this title, the Secretary may 
    issue proposed regulations without following such process but 
    shall, immediately thereafter and prior to issuing final 
    regulations, conduct regional meetings to review such proposed 
    regulations.
    ``(c) Limitation.--Regulations to carry out this part may not 
require local programs to follow a particular instructional model, such 
as the provision of services outside the regular classroom or school 
program.

``SEC. 1602. COORDINATION OF FEDERAL, STATE, AND LOCAL ADMINISTRATION.

    ``(a) Program Assistance Manual.--The Secretary shall, not later 
than six months after the publication of final regulations under this 
title, prepare and distribute to State educational agencies, State 
agencies operating programs under parts C and D, and local educational 
agencies, and shall make available to parents and other interested 
individuals, organizations, and agencies, a manual for this title to--
        ``(1) assist such agencies in--
            ``(A) enhancing the quality, increasing the depth, or 
        broadening the scope of activities for programs under this 
        title;
            ``(B) applying for program funds under this title; and
            ``(C) meeting the program objectives under this title;
        ``(2) assist State educational agencies in achieving proper and 
    efficient administration of programs funded under this title;
        ``(3) assist parents to become involved in the planning for, 
    and implementation and evaluation of, programs and projects under 
    this title; and
        ``(4) ensure that officers and employees of the Department, 
    including officers and employees of the Secretary and officers and 
    employees of the Department charged with auditing programs carried 
    on under this title, uniformly interpret, apply, and enforce 
    requirements under this title throughout the United States.
    ``(b) Contents of Policy Manual.--The policy manual shall, with 
respect to programs carried out under this title, contain descriptions, 
statements, procedural and substantive rules, opinions, policy 
statements and interpretations and indices to and amendments of the 
foregoing, and in particular, whether or not such descriptions, 
statements, procedural and substantive rules, opinions, policy 
statements and interpretations and indices are required under section 
552 of title 5, United States Code, to be published or made available. 
The manual shall include--
        ``(1) a statement of the requirements applicable to the 
    programs carried out under this title, including such requirements 
    contained in this title, the General Education Provisions Act, 
    other applicable statutes, and regulations issued under the 
    authority of such statutes;
        ``(2) an explanation of the purpose of each requirement and its 
    interrelationship with other applicable requirements; and
        ``(3) model forms and instructions developed by the Secretary 
    for use by State and local educational agencies, at the discretion 
    of such agencies, including, application forms, application review 
    checklists, and instruments for monitoring programs under this 
    title.
    ``(c) Response to Inquiries.--The Secretary shall respond with 
written guidance not later than 90 days after any written request 
(return receipt requested) from a State or local educational agency 
regarding a policy, question, or interpretation under this title is 
received. In the case of a request from a local educational agency, 
such agency is required to address its request to the State educational 
agency first.

``SEC. 1603. STATE ADMINISTRATION.

    ``(a) Rulemaking.--
        ``(1) In general.--Each State that receives funds under this 
    title shall--
            ``(A) ensure that any State rules, regulations, and 
        policies relating to this title conform to the purposes of this 
        title and provide any such proposed rules, regulations, and 
        policies to the committee of practitioners under subsection (b) 
        for their review and comment;
            ``(B) minimize such rules, regulations, and policies to 
        which their local educational agencies and schools are subject; 
        and
            ``(C) identify any such rule, regulation, or policy as a 
        State-imposed requirement.
        ``(2) Support and facilitation.--State rules, regulations, and 
    policies under this title shall support and facilitate local 
    educational agency and school-level systemic reform designed to 
    enable all children to meet the challenging State content standards 
    and challenging State student performance standards.
    ``(b) Committee of Practitioners.--
        ``(1) In general.--Each State educational agency shall create a 
    State committee of practitioners to advise the State in carrying 
    out its responsibilities under this title.
        ``(2) Membership.--Each such committee shall include--
            ``(A) as a majority of its members, representatives from 
        local educational agencies;
            ``(B) administrators;
            ``(C) teachers, including vocational educators;
            ``(D) parents;
            ``(E) members of local boards of education;
            ``(F) representatives of private school children; and
            ``(G) pupil services personnel.
        ``(3) Duties.--The duties of such committee shall include a 
    review, prior to publication, of any proposed or final State rule 
    or regulation pursuant to this title. In an emergency situation 
    where such rule or regulation must be issued within a very limited 
    time to assist local educational agencies with the operation of the 
    program under this title, the State educational agency may issue a 
    regulation without prior consultation, but shall immediately 
    thereafter convene the State committee of practitioners to review 
    the emergency regulation prior to issuance in final form.
    ``(c) Payment for State Administration.--Each State may reserve for 
the proper and efficient performance of its duties under this title the 
greater of--
        ``(1) 1.00 percent of the funds received under subsections (a), 
    (c), and (d) of section 1002; or
        ``(2) $400,000, or $50,000 in the case of the outlying areas.

``SEC. 1604. CONSTRUCTION.

    ``(a) Prohibition of Federal Mandates, Direction, or Control.--
Nothing in this title shall be construed 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 
content or pupil performance standards and assessments, curriculum, or 
program of instruction as a condition of eligibility to receive funds 
under this title.
    ``(b) Equalized Spending.--Nothing in this title shall be construed 
to mandate equalized spending per pupil for a State, local educational 
agency, or school.
    ``(c) Building Standards.--Nothing in this title shall be construed 
to mandate national school building standards for a State, local 
educational agency, or school.

   ``TITLE II--DWIGHT D. EISENHOWER PROFESSIONAL DEVELOPMENT PROGRAM

``SEC. 2001. FINDINGS.

    ``The Congress finds as follows:
        ``(1) Reaching the National Education Goals, particularly the 
    third, fourth, and fifth National Education Goals, requires a 
    comprehensive educational reform strategy that involves parents, 
    schools, government, communities, and other public and private 
    organizations at all levels.
        ``(2) A crucial component of the strategy for achieving such 
    goals is ensuring, through sustained and intensive high-quality 
    professional development, that all teachers will provide 
    challenging learning experiences in the core academic subjects for 
    their students.
        ``(3) Decisionmaking as to what activities a State or local 
    educational agency should undertake to improve teaching and 
    learning are best made by individuals in the schools closest to the 
    classroom and most knowledgeable about the needs of schools and 
    students.
        ``(4) The potential positive impact of high-quality 
    professional development is underscored by recent research findings 
    that--
            ``(A) professional development must be focused on teaching 
        and learning in order to improve the opportunities of all 
        students to achieve higher standards;
            ``(B) effective professional development focuses on 
        discipline-based knowledge and effective subject-specific 
        pedagogical skills, involves teams of teachers, and, where 
        appropriate, administrators and pupil services personnel, in a 
        school and, through professional networks of teachers, and, 
        where appropriate, teacher educators, administrators, pupil 
        services personnel, and parents, is interactive and 
        collaborative, motivates by its intrinsic content and 
        relationship to practice, builds on experience and learning-by-
        doing, and becomes incorporated into the everyday life of the 
        school;
            ``(C) professional development can dramatically improve 
        classroom instruction and learning when teachers, and, where 
        appropriate, administrators, pupil services personnel, and 
        parents, are partners in the development and implementation of 
        such professional development; and
            ``(D) new and innovative strategies for teaching to high 
        standards will require time for teachers, outside of the time 
        spent teaching, for instruction, practice, and collegial 
        collaboration.
        ``(5) Special attention must be given in professional 
    development activities to ensure that education professionals are 
    knowledgeable of, and make use of, strategies for serving 
    populations that historically have lacked access to equal 
    opportunities for advanced learning and career advancement.
        ``(6) Professional development is often a victim of budget 
    reductions in fiscally difficult times.
        ``(7) The Federal Government has a vital role in helping States 
    and local educational agencies to make sustained and intensive 
    high-quality professional development in the core academic subjects 
    become an integral part of the elementary and secondary education 
    system.
        ``(8) Professional development activities must prepare 
    teachers, pupil services personnel, paraprofessionals and other 
    staff in the collaborative skills needed to appropriately teach 
    children with disabilities, in the core academic subjects.
        ``(9) Parental involvement is an important aspect of school 
    reform and improvement. There is a need for special attention to 
    ensure the effective involvement of parents in the education of 
    their children. Professional development should include methods and 
    strategies to better prepare teachers and, where appropriate, 
    administrators, to enable parents to participate fully and 
    effectively in their children's education.

``SEC. 2002. PURPOSES.

    ``The purposes of this title are to provide assistance to State and 
local educational agencies and to institutions of higher education with 
teacher education programs so that such agencies and institutions can 
determine how best to improve the teaching and learning of all students 
by--
        ``(1) helping to ensure that teachers, and, where appropriate, 
    other staff and administrators, have access to sustained and 
    intensive high-quality professional development that is aligned to 
    challenging State content standards and challenging State student 
    performance standards, and to support the development and 
    implementation of sustained and intensive high-quality professional 
    development activities in the core academic subjects; and
        ``(2) helping to ensure that teachers, and, where appropriate, 
    administrators, other staff, pupil services personnel, and parents, 
    have access to professional development that--
            ``(A) is tied to challenging State content standards and 
        challenging State student performance standards;
            ``(B) reflects recent research on teaching and learning;
            ``(C) includes strong academic content and pedagogical 
        components;
            ``(D) incorporates effective strategies, techniques, 
        methods, and practices for meeting the educational needs of 
        diverse student populations, including females, minorities, 
        individuals with disabilities, limited-English-proficient 
        individuals, and economically disadvantaged individuals, in 
        order to ensure that all students have the opportunity to 
        achieve challenging State student performance standards;
            ``(E) is of sufficient intensity and duration to have a 
        positive and lasting impact on the teacher's performance in the 
        classroom; and
            ``(F) is part of the everyday life of the school and 
        creates an orientation toward continuous improvement throughout 
        the school.
``SEC. 2003. AUTHORIZATION OF APPROPRIATIONS; ALLOCATION BETWEEN PARTS.
    ``(a) Authorization of Appropriations.--For the purpose of carrying 
out this title, there are authorized to be appropriated $800,000,000 
for fiscal year 1995 and such sums as may be necessary for each of the 
four succeeding fiscal years.
    ``(b) Allocation Between Parts.--Of the amounts appropriated to 
carry out this title for any fiscal year, the Secretary shall make 
available--
        ``(1) 5 percent of such amounts to carry out subpart 1, of 
    which 5 percent of such 5 percent shall be available to carry out 
    section 2103;
        ``(2) 94 percent of such amounts to carry out part B; and
        ``(3) 1 percent of such amounts to carry out part C except that 
    such 1 percent shall not exceed $3,200,000 in any fiscal year.

                      ``PART A--FEDERAL ACTIVITIES

``SEC. 2101. PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to make grants to, 
and enter into contracts and cooperative agreements with, local 
educational agencies, educational service agencies, State educational 
agencies, State agencies for higher education, institutions of higher 
education, and other public and private agencies, organizations, and 
institutions to--
        ``(1) support activities of national significance that the 
    Secretary determines will contribute to the development and 
    implementation of high-quality professional development activities 
    in the core academic subjects; and
        ``(2) evaluate activities carried out under this part and parts 
    B and C, in accordance with section 14701.
    ``(b) Requirements.--In carrying out the activities described in 
subsection (a), the Secretary shall coordinate professional development 
programs within the Department, particularly with those programs within 
the Office of Educational Research and Improvement and the Office of 
Special Education and Rehabilitative Services, and shall consult and 
coordinate with the National Science Foundation, the National Endowment 
for the Humanities, the National Endowment for the Arts, the Institute 
of Museum Services, and other appropriate Federal agencies and 
entities.

``SEC. 2102. AUTHORIZED ACTIVITIES.

    ``(a) Activities.--The Secretary shall use funds available to carry 
out this part for--
        ``(1) providing seed money to the entities described in section 
    2101(a) to develop the capacity of such entities to offer sustained 
    and intensive high-quality professional development;
        ``(2) awarding a grant or contract, in consultation with the 
    Director of the National Science Foundation, to establish an 
    Eisenhower National Clearinghouse for Mathematics and Science 
    Education (hereafter in this section referred to as the 
    `Clearinghouse'); and
        ``(3) evaluating programs assisted under this part and parts B 
    and C, in accordance with section 14701.
    ``(b) Clearinghouse.--
        ``(1) Application and award basis.--Each entity desiring to 
    establish and operate the Clearinghouse authorized by subsection 
    (a)(2) shall submit an application to the Secretary at such time, 
    in such manner, and accompanied by such information as the 
    Secretary may reasonably require. The grant or contract awarded 
    pursuant to subsection (a)(2) shall be made on a competitive, merit 
    basis.
        ``(2) Duration.--The grant or contract awarded under subsection 
    (a)(2) shall be awarded for a period of five years and shall be 
    reviewed by the Secretary not later than 30 months from the date 
    the grant or contract is awarded.
        ``(3) Use of funds.--The grant or contract awarded under 
    subsection (a)(2) shall be used to--
            ``(A) maintain a permanent repository of mathematics and 
        science education instructional materials and programs for 
        elementary and secondary schools, including middle schools 
        (including, to the extent practicable, all materials and 
        programs developed with Federal and non-Federal funds, such as 
        instructional materials developed by the Department, materials 
        developed by State and national mathematics and science 
        programs assisted under this part, and other instructional 
        materials) for use by the regional consortia established under 
        part C of title XIII and by the general public;
            ``(B) compile information on all mathematics and science 
        education programs administered by each Federal agency or 
        department;
            ``(C) disseminate information, programs, and instructional 
        materials to the public, dissemination networks, and the 
        regional consortia established under part C of title XIII;
            ``(D) coordinate with identifiable and existing data bases 
        containing mathematics and science curriculum and instructional 
        materials, including Federal, non-Federal, and, where feasible, 
        international, data bases;
            ``(E) participate in collaborative meetings of 
        representatives of the Clearinghouse and the regional consortia 
        established under part C of title XIII to discuss issues of 
        common interest and concern, to foster effective collaboration 
        and cooperation in acquiring and distributing curriculum 
        materials and programs, and to coordinate computer network 
        access to the Clearinghouse and the resources of the regional 
        consortia, except that not more than 3 percent of the funds 
        awarded under subsection (a)(2) shall be used to carry out this 
        subparagraph; and
            ``(F) gather qualitative and evaluative data on submissions 
        to the Clearinghouse.
        ``(4) Submission to clearinghouse.--Each Federal agency or 
    department which develops mathematics or science education 
    instructional material or programs, including the National Science 
    Foundation and the Department, shall submit to the Clearinghouse 
    copies of such material or programs.
        ``(5) Peer review.--The Secretary shall establish a peer review 
    process to select the recipient of the award under subsection 
    (a)(2).
        ``(6) Steering committee.--The Secretary may appoint a steering 
    committee to recommend policies and activities for the 
    Clearinghouse.
        ``(7) Application of copyright laws.--Nothing in this 
    subsection shall be construed to allow the use or copying, in any 
    media, of any material collected by the Clearinghouse that is 
    protected under the copyright laws of the United States unless the 
    permission of the owner of the copyright is obtained. The 
    Clearinghouse, in carrying out the provisions of this subsection, 
    shall ensure compliance with title 17, United States Code.
        ``(8) Dissemination of information.--The Secretary shall 
    disseminate information concerning the grant or contract awarded 
    under this section to State and local educational agencies and 
    institutions of higher education. Such dissemination of information 
    shall include examples of exemplary national programs in 
    mathematics and science instruction and necessary technical 
    assistance for the establishment of similar programs.
    ``(c) Uses of Funds.--The Secretary may use funds available to 
carry out this part for--
        ``(1) the development and maintenance of national 
    clearinghouses for core academic subjects as the Secretary 
    determines are needed and which shall be administered as adjunct 
    clearinghouses of the Educational Resources Information Center 
    Clearinghouses system of clearinghouses supported by the Office of 
    Educational Research and Improvement;
        ``(2) professional development institutes that provide teachers 
    or teams of teachers, and, where appropriate, administrators, pupil 
    services personnel and other staff, from individual schools, with 
    professional development that contains strong and integrated 
    disciplinary and pedagogical components;
        ``(3) encouraging the development of local and national 
    professional networks, such as the Teacher Research Dissemination 
    Demonstration Program under section 941(j) of the Educational 
    Research, Development, Dissemination, and Improvement Act of 1994, 
    that provide a forum for interaction among teachers of the core 
    academic subjects and that allow the exchange of information on 
    advances in content and pedagogy;
        ``(4) efforts to train teachers in the innovative uses and 
    applications of technology to enhance student learning;
        ``(5) the development and dissemination of model teaching 
    standards in the core academic subjects;
        ``(6) disseminating standards in the core academic subjects, 
    including information on voluntary national content standards and 
    voluntary national student performance standards and related models 
    of high-quality professional development;
        ``(7) the dissemination of information about voluntary national 
    content standards, State content standards, voluntary national 
    student performance standards and State student performance 
    standards, and related models of high-quality professional 
    development;
        ``(8) efforts to train teachers in innovative instructional 
    methodologies designed to meet the diverse learning needs of 
    individual students, including methodologies which integrate 
    academic and vocational learning and applied learning, interactive, 
    interdisciplinary team teaching, and other alternative teaching 
    strategies, such as service learning, experiential learning, 
    career-related education, and environmental education, that 
    integrate real world applications into the core academic subjects;
        ``(9) disseminating models of high-quality professional 
    development activities that train educators in strategies, 
    techniques, methods, and practices for meeting the educational 
    needs of historically underserved populations, including females, 
    minorities, individuals with disabilities, limited-English-
    proficient individuals, and economically disadvantaged individuals, 
    in order to ensure that all students have the opportunity to 
    achieve challenging State student performance standards;
        ``(10) promoting the transferability of licensure and 
    certification of teachers and administrators among State and local 
    jurisdictions;
        ``(11) supporting the National Board for Professional Teaching 
    Standards;
        ``(12) developing activities to prepare teachers, and, where 
    appropriate, paraprofessionals, pupil services personnel, and other 
    staff in the collaborative skills needed to appropriately teach 
    children with disabilities in the core academic subjects;
        ``(13) encouraging the development of innovative models for 
    recruitment, induction, retention, and assessment of new, highly 
    qualified teachers, especially such teachers from historically 
    underrepresented groups; and
        ``(14) joint activities with other Federal agencies and 
    entities engaged in or supporting similar professional development 
    efforts.

``SEC. 2103. NATIONAL TEACHER TRAINING PROJECT.

    ``(a) Short Title; Findings; Definitions.--
        ``(1) Short title.--This section may be cited as the `National 
    Teacher Training Project Act of 1994'.
        ``(2) Findings.--The Congress finds that--
            ``(A) teachers must be major players in educational reform 
        in the United States;
            ``(B) teachers are isolated from their peers and have 
        virtually no time during the school day to consult with other 
        teachers;
            ``(C) there is a shortage of sustained, year-round 
        professional development programs for teachers;
            ``(D) successful teaching methods are not adequately shared 
        among teachers;
            ``(E) teachers are the best teachers of other teachers 
        because practicing classroom teachers have experience that no 
        outside consultant can match;
            ``(F) it is important for universities and schools to 
        collaborate on teacher development programs if teaching and 
        learning are to be improved;
            ``(G) pertinent research is not shared among teachers in a 
        professional setting;
            ``(H) exemplary teachers should be recognized for their 
        abilities and contributions and encouraged to refine their 
        teaching methods;
            ``(I) each State should support a nationally based teacher 
        training program, that is modeled after the National Writing 
        Project, for teachers of early childhood education, and for 
        teachers of core academic subjects including teachers of 
        mathematics, science, English, civics and government, foreign 
        languages, and arts;
            ``(J) the National Writing Project is a nationally 
        recognized and honored nonprofit organization that recognizes 
        there are teachers in every region of the United States who 
        have developed successful methods for teaching writing and that 
        such teachers can be trained and encouraged to train other 
        teachers;
            ``(K) the National Writing Project is a collaborative 
        university-school program which offers summer and school year 
        inservice teacher training programs and a dissemination network 
        to inform and teach teachers regarding developments in the 
        field of writing;
            ``(L) each year, over 125,000 teachers voluntarily seek 
        training in National Writing Project intensive summer 
        institutes and workshops and school year inservice programs 
        through one of the 155 sites located within the United States, 
        and in 18 sites located outside of the United States;
            ``(M) in the 20 years of its existence, over 1,100,000 
        teachers, administrators, and parents have participated in 
        National Writing Project programs;
            ``(N) less than $16 per teacher was the average cost in 
        Federal dollars for all teacher training at writing projects in 
        academic year 1991-1992;
            ``(O) for every dollar in Federal support, the National 
        Writing Project provides over $5 in matching funds from States, 
        local universities and schools, and the private sector;
            ``(P) private foundation resources, although generous in 
        the past concerning National Writing Project programs, are 
        inadequate to fund all of the National Teacher Training Project 
        sites needed, and the future of the program is in jeopardy 
        without secure financial support;
            ``(Q) the National Writing Project has become a model for 
        programs in other fields, such as science, mathematics, 
        history, literature, foreign languages, and the performing 
        arts, and the development of programs in other fields should 
        continue with the support of Federal funds; and
            ``(R) each of the 50 States should participate in the 
        National Teacher Training Project by establishing regional 
        teacher training sites in early childhood development, 
        mathematics, science, English, civics and government, foreign 
        languages, and arts to serve all teachers within the State.
        ``(3) Definitions.--For the purpose of this section--
            ``(A) the term `contractor' means--
                ``(i) a local educational agency;
                ``(ii) an educational service agency; or
                ``(iii) an institution of higher education that awards 
            a bachelor's degree; and
            ``(B) the term `eligible recipient' means a nonprofit 
        educational organization which has as its primary purpose the 
        improvement of student learning in one of the core academic 
        subjects described in subsection (b)(2).
    ``(b) Grants Authorized.--
        ``(1) Grants to eligible recipients.--The Secretary is 
    authorized to award a grant to an eligible recipient to enable such 
    recipient--
            ``(A) to support and promote the establishment of teacher 
        training programs in early childhood development and one of the 
        nine core subject areas described in paragraph (2), including 
        the dissemination of effective practices and research findings 
        regarding teacher training, and administrative activities;
            ``(B) to support classroom research on effective teaching 
        practices in such area; and
            ``(C) to pay the Federal share of the cost of such programs 
        and research.
        ``(2) Core subject areas.--To the extent feasible, the 
    Secretary shall award a grant under paragraph (1) for the 
    establishment of a National Teacher Training Project in early 
    childhood development and each of the following core subject areas:
            ``(A) Mathematics.
            ``(B) Science.
            ``(C) English.
            ``(D) Civics and government.
            ``(E) Foreign languages.
            ``(F) Arts.
            ``(G) Geography.
            ``(H) History.
            ``(I) Economics.
        ``(3) Number of grants and eligible recipients.--The Secretary 
    shall award not more than ten grants under paragraph (1) to ten 
    different eligible recipients.
        ``(4) Equitable distribution.--The Secretary shall award grants 
    under paragraph (1) to eligible recipients from different 
    geographic areas of the United States.
        ``(5) Special rule.--Each grant under paragraph (1) shall be of 
    sufficient size, scope, and quality to be effective.
        ``(6) Administrative costs and technical assistance.--Each 
    eligible recipient receiving a grant under paragraph (1) may use 
    not more than a total of 5 percent of the grant funds for 
    administrative costs and the costs of providing technical 
    assistance to a contractor.
    ``(c) Grant Requirements.--Each eligible recipient receiving a 
grant under subsection (b) shall--
        ``(1) enter into a contract with a contractor under which such 
    contractor agrees--
            ``(A) to establish, operate, and provide the non-Federal 
        share of the cost of teacher training programs in effective 
        approaches and processes for the teaching of the core academic 
        subjects for which such eligible recipient was awarded a grant, 
        including approaches and processes to obtain parental 
        involvement in a child's education; and
            ``(B) to use funds received from the eligible recipient to 
        pay the Federal share of the cost of establishing and operating 
        teacher training programs described in subparagraph (A);
        ``(2) to submit annual reports to the Secretary and be 
    responsible for oversight of the funds expended at each teacher 
    training program described in subparagraph (A); and
        ``(3) meet such other conditions and standards as the Secretary 
    determines to be necessary to ensure compliance with this section 
    and provide such technical assistance as may be necessary to carry 
    out this section.
    ``(d) Teacher Training Programs.--The teacher training programs 
described in subsection (b) shall--
        ``(1) be conducted during the school year and during the summer 
    months;
        ``(2) train teachers who teach grades kindergarten through 
    college;
        ``(3) select teachers to become members of a National Teacher 
    Training Project, which members shall conduct inservice workshops 
    for other teachers in the area subject matter served by the 
    National Teacher Training Project site;
        ``(4) use teacher training principles and receive technical 
    assistance from the National Writing Project; and
        ``(5) encourage teachers from all disciplines to participate in 
    such teacher training programs.
    ``(e) Federal Share.--The term `Federal share' means, with respect 
to the costs of teacher training programs described in subsection (b), 
50 percent of such costs to the contractor.
    ``(f) Application.--Each eligible recipient desiring a grant under 
this section shall submit an application to the Secretary at such time, 
in such manner, and accompanied by such information as the Secretary 
may reasonably require.
    ``(g) Participants and Selection Process.--The selection process 
for participation in a teacher training program described in subsection 
(b) shall--
        ``(1) reward exemplary teachers with varying levels of teaching 
    experience who are nominated by other teachers and administrators;
        ``(2) involve an application process to select participants for 
    a summer program;
        ``(3) ensure the selection of a geographically and ethnically 
    diverse group of teachers by soliciting applications from teachers 
    of both public and private institutions in rural, urban, and 
    suburban settings in each State; and
        ``(4) automatically offer a place in a summer program to the 
    `Teacher of the Year' chosen pursuant to a Federal or State teacher 
    recognition program.
    ``(h) Limitation.--A contractor entering into a contract under 
subsection (c)(1) shall not spend more than 5 percent of funds received 
under the contract for administrative costs.

                  ``PART B--STATE AND LOCAL ACTIVITIES

``SEC. 2201. PROGRAM AUTHORIZED.

    ``The Secretary is authorized to make grants to State educational 
agencies for the improvement of teaching and learning through sustained 
and intensive high-quality professional development activities in the 
core academic subjects at the State and local levels.

``SEC. 2202. ALLOCATION OF FUNDS.

    ``(a) Reservation of Funds.--From the amount available to carry out 
this part for any fiscal year, the Secretary shall reserve--
        ``(1) \1/2\ of 1 percent for the outlying areas, to be 
    distributed among the outlying areas on the basis of their relative 
    need, as determined by the Secretary in accordance with the 
    purposes of this part; and
        ``(2) \1/2\ of 1 percent for the Secretary of the Interior for 
    programs under this part for professional development activities 
    for teachers, other staff, and administrators in schools operated 
    or funded by the Bureau of Indian Affairs.
    ``(b) State Allocations.--The Secretary shall allocate the amount 
available to carry out this part and not reserved under subsection (a) 
to each of the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico as follows, except that no State shall 
receive less than \1/2\ of 1 percent of such amount:
        ``(1) Fifty percent shall be allocated among such jurisdictions 
    on the basis of their relative populations of individuals aged five 
    through 17, as determined by the Secretary on the basis of the most 
    recent satisfactory data.
        ``(2) Fifty percent shall be allocated among such jurisdictions 
    in accordance with the relative amounts such jurisdictions received 
    under part A of title I for the preceding fiscal year, or for 
    fiscal year 1995 only, such part's predecessor authority.
    ``(c) Reallocation.--If any jurisdiction does not apply for an 
allotment under subsection (b) for any fiscal year, the Secretary shall 
reallocate such amount to the remaining jurisdictions in accordance 
with such subsection.

``SEC. 2203. WITHIN-STATE ALLOCATIONS.

    ``Of the amounts received by a State under this part for any fiscal 
year--
        ``(1) 84 percent shall be available for local allowable 
    activities under section 2210(b), of which--
            ``(A) not more than 5 percent may be used for the 
        administrative costs of the State educational agency and for 
        State-level activities described in section 2207; and
            ``(B) of the remaining amount--
                ``(i) 50 percent shall be distributed to local 
            educational agencies--

                    ``(I) for use in accordance with section 2210; and
                    ``(II) in accordance with the relative enrollments 
                in public and private nonprofit elementary and 
                secondary schools within the boundaries of such 
                agencies; and

                ``(ii) 50 percent of such amount shall be distributed 
            to local educational agencies--

                    ``(I) for use in accordance with section 2210; and
                    ``(II) in accordance with the relative amount such 
                agencies received under part A of title I or for fiscal 
                year 1995 for the preceding fiscal year, such part's 
                predecessor authority; and

        ``(2) 16 percent shall be available to the State agency for 
    higher education for activities under section 2211, of which not 
    more than 5 percent may be used for the administrative costs of the 
    State agency for higher education.

``SEC. 2204. CONSORTIUM REQUIREMENT.

    ``(a) In General.--A local educational agency receiving a grant 
under this part of less than $10,000 shall form a consortium with 
another local educational agency or an educational service agency 
serving another local educational agency to be eligible to participate 
in programs assisted under this part.
    ``(b) Waiver.--The State educational agency may waive the 
application of paragraph (1) in the case of any local educational 
agency that demonstrates that the amount of its allocation under this 
part is sufficient to provide a program of sufficient size, scope, and 
quality to be effective. In granting waivers under the preceding 
sentence, the State educational agency shall--
        ``(1) give special consideration to local educational agencies 
    serving rural areas if distances or traveling time between schools 
    make formation of the consortium more costly or less effective; and
        ``(2) consider cash or in-kind contributions provided from 
    State or local sources that may be combined with the local 
    educational agency's allocation for the purpose of providing 
    services under this part.
    ``(c) Special Rule.--Each consortium shall rely, as much as 
possible, on technology or other arrangements to provide staff 
development programs tailored to the needs of each school or school 
district participating in a consortium described in subsection (a).

``SEC. 2205. STATE APPLICATIONS.

    ``(a) Applications Required.--Each State educational agency that 
wishes to receive an allotment under this part for any fiscal year 
shall submit an application to the Secretary at such time, in such 
form, and containing such information as the Secretary may require.
    ``(b) State Plan To Improve Teaching and Learning.--
        ``(1) In general.--Each application under this section shall 
    include a State plan that is coordinated with the State's plan 
    under other programs assisted under this Act, the Goals 2000: 
    Educate America Act, and other Acts, as appropriate, consistent 
    with the provisions of section 14306.
        ``(2) Contents.--Each such State plan shall--
            ``(A) be developed in conjunction with the State agency for 
        higher education, community-based and other nonprofit 
        organizations of demonstrated effectiveness, institutions of 
        higher education or schools of education, and with the 
        extensive participation of local teachers, administrators and 
        pupil services personnel and show the role of each such entity 
        in implementation of the plan;
            ``(B) be designed to give teachers, and, where appropriate, 
        administrators and pupil services personnel in the State, the 
        knowledge and skills necessary to provide all students the 
        opportunity to meet challenging State content standards and 
        challenging State student performance standards;
            ``(C) include an assessment of State and local needs for 
        professional development specifically related to subparagraph 
        (B);
            ``(D) include a description of how the plan has assessed 
        the needs of local educational agencies serving rural and urban 
        areas, and what actions are planned to meet such needs;
            ``(E) include a description of how the activities assisted 
        under this part will address the needs of teachers in schools 
        receiving assistance under part A of title I;
            ``(F) a description of how programs in all core academic 
        subjects, but especially in mathematics and science, will take 
        into account the need for greater access to, and participation 
        in, such disciplines by students from historically 
        underrepresented groups, including females, minorities, 
        individuals with limited English proficiency, the economically 
        disadvantaged, and individuals with disabilities, by 
        incorporating pedagogical strategies and techniques which meet 
        such individuals' educational needs;
            ``(G) be consistent with the State's needs assessment under 
        subparagraph (C), and describe how the State will work with 
        teachers, including teachers in schools receiving assistance 
        under part A of title I, administrators, parents, local 
        educational agencies, schools, educational service agencies, 
        institutions of higher education, and nonprofit organizations 
        of demonstrated effectiveness, to ensure that such individuals 
        develop the capacity to support sustained and intensive, high-
        quality professional development programs in the core academic 
        subjects;
            ``(H) describe how the State requirements for licensure of 
        teachers and administrators, including certification and 
        recertification, support challenging State content standards 
        and challenging State student performance standards and whether 
        such requirements are aligned with such standards;
            ``(I) address the need for improving teaching and learning 
        through teacher development beginning with recruitment, 
        preservice, and induction, and continuing throughout the 
        professional teaching career, taking into account the need, as 
        determined by the State, for greater access to and 
        participation in the teaching profession by individuals from 
        historically underrepresented groups;
            ``(J) describe how the State will prepare all teachers to 
        teach children with diverse learning needs, including children 
        with disabilities;
            ``(K) describe how the State will prepare teachers, and, 
        where appropriate, paraprofessionals, pupil services personnel, 
        and other staff in the collaborative skills needed to 
        appropriately teach children with disabilities, in the core 
        academic subjects;
            ``(L) describe how the State will use technology, including 
        the emerging national information infrastructure, to enhance 
        the professional development of teachers, and, where 
        appropriate, administrators and pupil services personnel;
            ``(M) describe how the State will provide incentives to 
        teachers and administrators to focus their professional 
        development on preparing such teachers and administrators to 
        provide instruction consistent with challenging State content 
        standards and challenging State student performance standards;
            ``(N) set specific performance indicators for professional 
        development; and
            ``(O) describe how parents can be involved in professional 
        development programs to enhance the participation of parents in 
        the education of their children.
        ``(3) Duration of the plan.--Each such State plan shall--
            ``(A) remain in effect for the duration of the State's 
        participation under this part; and
            ``(B) be periodically reviewed and revised by the State, as 
        necessary, to reflect changes in the State's strategies and 
        programs under this part.
    ``(c) Additional Material.--Each State application shall include--
        ``(1) a description of how the activities assisted under this 
    part will be coordinated, as appropriate, with--
            ``(A) other activities conducted with Federal funds, 
        especially activities supported under part A of title I of this 
        Act and the Individuals with Disabilities Education Act;
            ``(B) programs supported by State and local funds;
            ``(C) resources from business and industry, museums, 
        libraries, educational television stations, and public and 
        private nonprofit organizations of demonstrated experience; and
            ``(D) funds received from other Federal agencies, such as 
        the National Science Foundation, the Departments of Commerce, 
        Energy, and Health and Human Services, the National Endowment 
        for the Arts, the Institute of Museum Services, and the 
        National Endowment for the Humanities; and
        ``(2) a description of the activities to be sponsored under the 
    State-level activities under section 2207 and the higher education 
    activities under section 2211.
    ``(d) Peer Review and Secretarial Approval.--
        ``(1) In general.--The Secretary shall approve an application 
    of a State educational agency under this section if such 
    application meets the requirements of this section and holds 
    reasonable promise of achieving the purposes of this part.
        ``(2) Review.--In reviewing applications under this section, 
    the Secretary shall obtain the advice of non-Federal experts on 
    education in the core academic subjects and on teacher education, 
    including teachers and administrators.

``SEC. 2206. PRIORITY FOR PROFESSIONAL DEVELOPMENT IN MATHEMATICS AND 
              SCIENCE.

    ``(a) Appropriation of Less Than $250,000,000.--In any fiscal year 
for which the amount appropriated for this title is less than 
$250,000,000, each State shall ensure that all funds distributed in 
accordance with section 2203(1)(C) are used for professional 
development in mathematics and science.
    ``(b) Appropriation Equal To or Above $250,000,000.--In any fiscal 
year for which the amount appropriated for this title is equal to or 
exceeds $250,000,000, each State and local educational agency shall use 
for professional development activities in mathematics and science the 
amount of funds that would have been made available to each such agency 
in accordance with sections 2202 and 2203 if the amount appropriated 
was $250,000,000, consistent with subsection (a), and are permitted and 
encouraged to use the amount of funds in excess of $250,000,000 that is 
made available in accordance with sections 2202 and 2203 for 
professional development activities in mathematics and science.

``SEC. 2207. STATE-LEVEL ACTIVITIES.

    ``Each State may use funds made available under section 2203(1)(A) 
to carry out activities described in the plan under section 2205(b), 
such as--
        ``(1) reviewing and reforming State requirements for teacher 
    and administrator licensure, including certification and 
    recertification, to align such requirements with the State's 
    challenging State content standards and ensure that teachers and 
    administrators have the knowledge and skills necessary to help 
    students meet challenging State student performance standards;
        ``(2) developing performance assessments and peer review 
    procedures, as well as other methods, for licensing teachers and 
    administrators;
        ``(3) providing technical assistance to schools and local 
    educational agencies, especially schools and local educational 
    agencies that receive assistance under part A of title I, to help 
    such schools and agencies provide effective professional 
    development in the core academic subjects;
        ``(4) developing or supporting professional development 
    networks, either within a State or in a regional consortium of 
    States, that provide a forum for interaction among teachers and 
    that allow exchange of information on advances in content and 
    pedagogy;
        ``(5) supporting partnerships between schools, consortia of 
    schools, or local educational agencies and institutions of higher 
    education, including schools of education, which encourage--
            ``(A) teachers to participate in intensive, ongoing 
        professional development programs, both academic and 
        pedagogical, at institutions of higher education; and
            ``(B) students at institutions of higher education studying 
        to become teachers to have direct, practical experience at the 
        schools;
        ``(6) providing professional development in the effective use 
    of educational technology as an instructional tool for increasing 
    student understanding of the core academic subjects, including 
    efforts to train teachers in methods of achieving gender equity 
    both in students' access to computers and other educational 
    technology and in teaching practices used in the application of 
    educational technology;
        ``(7) providing incentives for teachers to be involved in 
    assessment, curriculum development, and technical assistance 
    processes for teachers and students;
        ``(8) providing professional development to enable teachers, 
    and, where appropriate, pupil services personnel, and other school 
    staff, to ensure that girls and young women, minorities, limited 
    English proficient students, individuals with disabilities, and 
    economically disadvantaged students have the full opportunity to 
    achieve challenging State content standards and challenging State 
    student performance standards in the core academic subjects by, for 
    example, encouraging girls and young women and minorities to pursue 
    advanced courses in mathematics and science;
        ``(9) professional development and recruitment activities 
    designed to increase the numbers of minorities, individuals with 
    disabilities, and women teaching in the core academic subjects in 
    which such individuals are underrepresented;
        ``(10) providing financial or other incentives for teachers to 
    become certified by nationally recognized professional teacher 
    enhancement organizations;
        ``(11) providing professional development activities which 
    prepare teachers, and where appropriate, pupil services personnel, 
    paraprofessionals, and other staff in the collaborative skills 
    needed to appropriately teach children with disabilities, in the 
    core academic subjects;
        ``(12) identifying, developing, or supporting professional 
    development strategies to better equip parents to assist their 
    children in raising their children's achievement in the core 
    academic subjects; and
        ``(13) professional development activities designed to increase 
    the number of women and other underrepresented groups in the 
    administration of schools.
``SEC. 2208. LOCAL PLAN AND APPLICATION FOR IMPROVING TEACHING AND 
LEARNING.
    ``(a) Local Application.--
        ``(1) In general.--Each local educational agency that wishes to 
    receive a subgrant under this part shall submit an application 
    (singly or as a consortium as described in section 2204) to the 
    State educational agency at such time as the State educational 
    agency shall require, but not less frequently than every three 
    years, that is coordinated with other programs under this Act, the 
    Goals 2000: Educate America Act, or other Acts, as appropriate, 
    consistent with the provisions of section 14306.
        ``(2) Indicators.--A local educational agency shall set 
    specific performance indicators for improving teaching and learning 
    through professional development.
    ``(b) Needs Assessment.--
        ``(1) In general.--A local educational agency that wishes to 
    receive a subgrant under this part shall include in its application 
    an assessment of local needs for professional development as 
    identified by the local educational agency and school staff.
        ``(2) Requirements.--Such needs assessment shall be carried out 
    with the involvement of teachers, including teachers in schools 
    receiving assistance under part A of title I, and shall take into 
    account what activities need to be conducted in order to give 
    teachers and, where appropriate, administrators, the means, 
    including the knowledge and skills, to provide students with the 
    opportunity to meet challenging State or local student performance 
    standards.
    ``(c) Application Contents.--Each application under this section 
shall include the local educational agency's plan for professional 
development that--
        ``(1) focuses on teaching and learning in the core academic 
    subjects; and
        ``(2) has been developed with the extensive participation of 
    administrators, staff, and pupil services personnel, which teachers 
    shall also be representative of the grade spans within schools to 
    be served and of schools which receive assistance under part A of 
    title I.
    ``(d) Plan Contents.--
        ``(1) In general.--Based on the needs assessment required under 
    subsection (b), the local educational agency's plan shall--
            ``(A) include a description of how the plan contributes to 
        the local educational agency's overall efforts for school 
        reform and educational improvement;
            ``(B) include a description of how the activities funded 
        under this section will address the needs of teachers in 
        schools receiving assistance under part A of title I;
            ``(C) be aligned with the State's challenging State content 
        standards and challenging State student performance standards;
            ``(D) describe a strategy, tied to challenging State 
        content standards and challenging State student performance 
        standards, consistent with the needs assessment under 
        subsection (b);
            ``(E) be of sufficient intensity and duration to have a 
        positive and lasting impact on the student's performance in the 
        classroom;
            ``(F) describe how programs in all core academic subjects, 
        but especially in mathematics and science, will take into 
        account the need for greater access to, and participation in, 
        such disciplines by students from historically underrepresented 
        groups, including girls and women, minorities, individuals with 
        limited English proficiency, the economically disadvantaged, 
        and individuals with disabilities, by incorporating pedagogical 
        strategies and techniques which meet such individuals' 
        educational need;
            ``(G) contain an assurance that the activities conducted 
        with funds received under this part will be assessed at least 
        every three years using the performance indicators;
            ``(H) describe how the program funded under this part will 
        be coordinated, as appropriate, with--
                ``(i) activities conducted under section 2131 and other 
            services of institutions of higher education;
                ``(ii) similar State and local activities;
                ``(iii) resources provided under part A of title I and 
            other provisions of this Act;
                ``(iv) resources from business, industry, public and 
            private nonprofit organizations (including museums, 
            libraries, educational television stations, community-based 
            organizations, professional organizations and associations 
            specializing in, or with a demonstrated expertise in the 
            core academic subjects);
                ``(v) funds or programming from other Federal agencies, 
            such as the National Science Foundation, the Department of 
            Energy, the Department of Health and Human Services, the 
            Institute of Museum Services, the National Endowment for 
            the Humanities, and the National Endowment for the Arts;
                ``(vi) services of educational service agencies; and
                ``(vii) resources provided under the Individuals with 
            Disabilities Education Act;
            ``(I) identify the sources of funding that will provide the 
        local educational agency's contribution under section 2209; and
            ``(J) describe the professional development strategies to 
        be employed to more fully and effectively involve parents in 
        the education of their children.
        ``(2) Duration of the plan.--Each local plan described in 
    subsection (b)(1) shall--
            ``(A) remain in effect for the duration of the local 
        educational agency's participation under this part; and
            ``(B) be periodically reviewed and revised by the local 
        educational agency, as necessary, to reflect changes in the 
        local educational agency's strategies and programs under this 
        part.

``SEC. 2209. LOCAL COST-SHARING.

    ``(a) In General.--Each local educational agency shall provide not 
less than 33 percent of the cost of the activities assisted under this 
part, excluding the cost of services provided to private school 
teachers.
    ``(b) Available Resources for Cost-Sharing.--
        ``(1) In general.--A local educational agency may meet the 
    requirement of subsection (a) through one or more of the following:
            ``(A) Cash expenditures from non-Federal sources, including 
        private contributions, directed toward professional development 
        activities.
            ``(B) Release time for teachers participating in 
        professional development assisted under this part.
            ``(C) Funds received under one or more of the following 
        programs, so long as such funds are used for professional 
        development activities consistent with this part and the 
        statutes under which such funds were received, and are used to 
        benefit students and teachers in schools that otherwise would 
        have been served with such funds:
                ``(i) Helping disadvantaged children meet high 
            standards under part A of title I.
                ``(ii) The Safe and Drug-Free Schools and Communities 
            program under title IV.
                ``(iii) Bilingual Education Programs under part A of 
            title VII.
                ``(iv) Programs under the Women's Educational Equity 
            Act of 1994.
                ``(v) Programs under title III of the Goals 2000: 
            Educate America Act.
                ``(vi) Programs that are related to the purposes of 
            this Act that are administered by other Federal agencies, 
            including the National Science Foundation, the National 
            Endowment for the Humanities, the National Endowment for 
            the Arts, the Institute of Museum Services, and the 
            Department of Energy.
                ``(vii) Programs under the Individuals with 
            Disabilities Education Act.
        ``(2) Special rule.--A local educational agency may meet the 
    requirement of subsection (a) through contributions described in 
    paragraph (1) that are provided in cash or in kind, fairly 
    evaluated.
    ``(c) Waiver.--The State educational agency may approve an 
application which has not fully met the requirements of subsection (a) 
and waive the requirements of subsection (a) if a local educational 
agency can demonstrate that such agency is unable to meet the 
requirements of subsection (a) due to economic hardship and that 
compliance with such requirements would preclude such agency's 
participation in the program.

``SEC. 2210. LOCAL ALLOCATION OF FUNDS AND ALLOWABLE ACTIVITIES.

    ``(a) Local Allocation of Funds.--Each local educational agency 
that receives funds under this part for any fiscal year--
        ``(1) shall use not less than 80 percent of such funds for 
    professional development of teachers, and, where appropriate, 
    administrators, and, where appropriate, pupil services personnel, 
    parents, and other staff of individual schools in a manner that--
            ``(A) is determined by such teachers and staff;
            ``(B) to the extent practicable, takes place at the 
        individual school site; and
            ``(C) is consistent with the local educational agency's 
        application under section 2208, any school plan under part A of 
        title I, and any other plan for professional development 
        carried out with Federal, State, or local funds that emphasizes 
        sustained, ongoing activities; and
        ``(2) may use not more than 20 percent of such funds for school 
    district-level professional development activities, including, 
    where appropriate, the participation of administrators, 
    policymakers, and parents, if such activities directly support 
    instructional personnel.
    ``(b) Authorized Activities.--
        ``(1) In general.--Each local educational agency and school 
    that receives funds under this part shall use such funds for 
    activities that give teachers and administrators the knowledge and 
    skills to provide students with the opportunity to meet challenging 
    State or local content standards and student performance standards.
        ``(2) Professional development activities.--Professional 
    development activities funded under this part shall--
            ``(A) be tied to challenging State content standards or 
        challenging local content standards, and challenging State 
        student performance standards or challenging local student 
        performance standards;
            ``(B) take into account recent research on teaching and 
        learning;
            ``(C) provide professional development which incorporates 
        effective strategies, techniques, methods, and practices for 
        meeting the educational needs of diverse groups of students, 
        including girls and women, minorities, individuals with 
        disabilities, limited English proficient individuals, and 
        economically disadvantaged individuals;
            ``(D) include strong academic content and pedagogical 
        components; and
            ``(E) be of sufficient intensity and duration to have a 
        positive and lasting impact on the teacher's performance in the 
        classroom.
        ``(3) Activities.--Funds under this part may be used for 
    professional development activities such as--
            ``(A) professional development for teams of teachers, and, 
        where appropriate, administrators, pupil services personnel, or 
        other staff from individual schools, to support teaching 
        consistent with challenging State content standards and 
        challenging State student performance standards;
            ``(B) support and time, which in the case of teachers may 
        include release time with pay, for teachers, and, where 
        appropriate, pupil services personnel and other school staff to 
        enable such teachers, personnel, and staff to participate in 
        professional development in the core academic subjects that are 
        offered through professional associations, universities, 
        community-based organizations, and other providers, such as 
        educational partnership organizations, science centers, and 
        museums;
            ``(C) activities that provide followup for teachers who 
        have participated in professional development activities that 
        are designed to ensure that the knowledge and skills learned by 
        the teacher are implemented in the classroom;
            ``(D) support for partnerships between schools, consortia 
        of schools, or local educational agencies, and institutions of 
        higher education, including schools of education, which 
        partnerships shall encourage--
                ``(i) teachers to participate in intensive, ongoing 
            professional development programs, both academic and 
            pedagogical, at institutions of higher education; and
                ``(ii) students at institutions of higher education 
            studying to become teachers to have direct, practical 
            experience at schools;
            ``(E) the establishment and maintenance of local 
        professional networks that provide a forum for interaction 
        among teachers and that allow exchange of information on 
        advances in content and pedagogy;
            ``(F) preparing teachers in the effective use of 
        educational technology and assistive technology as 
        instructional tools for increasing student understanding of the 
        core academic subjects;
            ``(G) professional development to enable teachers, and, 
        where appropriate, pupil services personnel and other school 
        staff, to ensure that girls and young women, minorities, 
        limited English proficient students, individuals with 
        disabilities, and the economically disadvantaged have full 
        opportunity to achieve the challenging State content standards 
        and challenging State student performance standards in the core 
        academic subjects;
            ``(H) professional development and recruitment activities 
        designed--
                ``(i) to increase the number of minorities, individuals 
            with disabilities, and females teaching in the core 
            academic subjects in which such individuals are 
            underrepresented; and
                ``(ii) to increase the numbers of women and members of 
            other underrepresented groups who are science and 
            mathematics teachers, through such programs as career 
            ladder programs that assist educational paraprofessionals 
            to obtain teaching credentials in the core academic 
            subjects;
            ``(I) providing financial or other incentives for teachers 
        to become certified by nationally recognized professional 
        teacher enhancement programs;
            ``(J) support and time for teachers, and, where 
        appropriate, pupil services personnel, and other school staff 
        to learn and implement effective collaboration for the 
        instruction of children with disabilities in the core academic 
        subject areas;
            ``(K) preparing teachers, and, where appropriate, pupil 
        services personnel to work with parents and families on 
        fostering student achievement in the core academic subjects;
            ``(L) professional development activities and other support 
        for new teachers as such teachers move into the classroom to 
        provide such teachers with practical support and to increase 
        the retention of such teachers;
            ``(M) professional development for teachers, parents, early 
        childhood educators, administrators, and other staff to support 
        activities and services related to preschool transition 
        programs to raise student performance in the core academic 
        subjects;
            ``(N) professional development activities to train teachers 
        in innovative instructional methodologies designed to meet the 
        diverse learning needs of individual students, including 
        methodologies which integrate academic and vocational learning 
        and applied learning, interactive and interdisciplinary team 
        teaching, and other alternative teaching strategies such as 
        service learning, experiential learning, career-related 
        education, and environmental education, that integrate real 
        world applications into the core academic subjects;
            ``(O) developing professional development strategies and 
        programs to more effectively involve parents in helping their 
        children achieve in the core academic subjects;
            ``(P) professional development activities designed to 
        increase the number of women and other underrepresented groups 
        in the administration of schools; and
            ``(Q) release time with pay for teachers.

``SEC. 2211. HIGHER EDUCATION ACTIVITIES.

    ``(a) Activities.--
        ``(1) In general.--From amounts made available under section 
    2203(2), the State agency for higher education, working in 
    conjunction with the State educational agency (if such agencies are 
    separate), shall make grants to, or enter into contracts or 
    cooperative agreements with, institutions of higher education and 
    nonprofit organizations of demonstrated effectiveness, including 
    museums and educational partnership organizations, which must work 
    in conjunction with a local educational agency, consortium of local 
    educational agencies, or schools, for--
            ``(A) professional development activities in the core 
        academic subjects that contribute to the State plan for 
        professional development;
            ``(B) developing and providing assistance to local 
        educational agencies, and the teachers and staff of each such 
        agency, for sustained, high-quality professional development 
        activities; and
            ``(C) improving teacher education programs in order to 
        promote further innovation in teacher education programs within 
        an institution of higher education and to better meet the needs 
        of the local educational agencies for well-prepared teachers.
        ``(2) Competitive basis.--Each grant, contract, or cooperative 
    agreement described in paragraph (1) shall be awarded on a 
    competitive basis.
        ``(3) Special rule.--No institution of higher education may 
    receive assistance under (a)(1) of this subsection unless the 
    institution enters into an agreement with a local educational 
    agency, or consortium of such agencies, to provide sustained, high-
    quality professional development for the elementary and secondary 
    school teachers in the schools of each such agency.
        ``(4) Joint efforts.--Each activity assisted under this 
    section, where applicable, shall involve the joint effort of the 
    institution of higher education's school or department of 
    education, if any, and the schools or departments in the specific 
    disciplines in which such professional development will be 
    provided.
    ``(b) Allowable Activities.--A recipient of funds under this 
section shall use such funds for--
        ``(1) sustained and intensive high-quality professional 
    development for teams of teachers, or teachers, and, where 
    appropriate, pupil services personnel and administrators from 
    individual schools or school districts;
        ``(2) other sustained and intensive professional development 
    activities related to achievement of the State plan for 
    professional development; and
        ``(3) preservice training activities.
    ``(c) Partnerships.--Each institution of higher education receiving 
a grant under this section may also enter into a partnership with a 
private industry, museum, library, educational television station, or 
public or private nonprofit organization of demonstrated experience to 
carry out professional development activities assisted under this 
section.

        ``PART C--PROFESSIONAL DEVELOPMENT DEMONSTRATION PROJECT

``SEC. 2301. FINDINGS AND PURPOSE.

    ``(a) Findings.--The Congress finds that--
        ``(1) underlying the standards-driven framework of the Goals 
    2000: Educate America Act and the high academic standards for 
    eligible students under title I is a widespread need to prepare 
    teachers to teach to higher standards;
        ``(2) prospective and current teachers need knowledge and 
    skills beyond what such teachers currently possess;
        ``(3) while both the Goals 2000: Educate America Act and titles 
    I and II of this Act have extensive references to professional 
    development of teachers, there are no provisions to incorporate 
    `on-the-ground' planning and implementation to serve as models for 
    local educational agencies across the Nation; and
        ``(4) better prepared teachers can lead to improved student 
    achievement, especially for students who are furthest from reaching 
    high standards.
    ``(b) Purpose.--It is the purpose of this part--
        ``(1) to address the need for professional development with a 
    primary focus on teachers;
        ``(2) to provide both prospective teachers and current teachers 
    opportunities to learn both the content and the pedagogy needed to 
    teach to high standards; and
        ``(3) to build models, in a few cities and States, that 
    demonstrate new organizational arrangements and deep investments in 
    teachers necessary to better prepare teachers for new standards and 
    assessments.

``SEC. 2302. DEMONSTRATION PROGRAM AUTHORIZED.

    ``(a) General Authority.--
        ``(1) In general.--The Secretary shall carry out a 
    demonstration project under which the Secretary awards grants in 
    accordance with this part to eligible partnerships to enable such 
    partnerships to plan and implement professional development 
    programs.
        ``(2) Program requirements.--The programs described in 
    paragraph (1)--
            ``(A) shall focus on increasing teachers' knowledge and 
        understanding of content by providing teachers opportunities to 
        improve their knowledge and to improve their classroom practice 
        in order to help students meet high academic standards;
            ``(B) shall include teachers at all career stages, from 
        student teachers or interns through senior team leaders or 
        department chairs; and
            ``(C) may incorporate professional development for 
        principals, pupil services personnel, aides, other school-based 
        staff, and parents.
    ``(b) Eligible Partnerships.--For the purpose of this part, the 
term `eligible partnership' means a partnership consisting of--
        ``(1) a local educational agency, a subunit of such agency, or 
    a consortium of such agencies, in which not less than 50 percent of 
    the schools served by such agency, subunit, or consortium are 
    eligible to participate in schoolwide programs under section 1114; 
    or
        ``(2) other partners that--
            ``(A) shall include, at a minimum, a teachers' union (if 
        appropriate), one or more institutions of higher education 
        which may include faculty from schools of education and faculty 
        from schools of arts and sciences, and a local parent or 
        community council; and
            ``(B) may include a business partner or a nonprofit 
        organization with a demonstrated record in staff development.

``SEC. 2303. GRANTS.

    ``(a) Authority.--
        ``(1) In general.--The Secretary shall award grants for 
    planning, and grants for the implementation of, professional 
    development programs under this part.
        ``(2) Distribution.--The Secretary shall award not less than 75 
    percent of the funds available for grants under this part to 
    eligible partnerships serving the schools with the greatest number 
    of poor students. To the extent possible, such grants shall be 
    awarded to eligible partnerships serving both rural and urban 
    school districts and in a manner that reflects geographic and 
    racial diversity.
        ``(3) Number of grants.--In the first year that the Secretary 
    awards grants under this part, the Secretary shall award at least 
    twice as many planning grants as implementation grants in order to 
    receive well-developed plans for long-term funding under this part.
    ``(b) Grant Requirements.--
        ``(1) Duration.--The Secretary shall award--
            ``(A) planning grants under this part for a period of not 
        less than six months and not more than nine months; and
            ``(B) implementation grants under this part for a period of 
        four fiscal years.
        ``(2) Amount.--The Secretary shall award grants under this part 
    in an amount determined on the basis of the size of the program and 
    the level of investment the eligible partnership is making in 
    teacher development in the area served by the eligible partnership, 
    including local, State, and Federal funds and existing higher 
    education resources, except that no grant under this part shall 
    exceed $500,000 in any one fiscal year.

``SEC. 2304. PLAN.

    ``Each eligible partnership desiring assistance under this part 
shall develop a plan for the program to be assisted under this part. 
Such plan shall--
        ``(1) identify clearly how such plan will support an overall 
    systemic reform strategy giving special attention to the role of 
    teacher preparation for new standards and assessment;
        ``(2) describe the eligible partnership's instructional 
    objectives and how the professional development activities will 
    support such objectives;
        ``(3) specify the organizational arrangements and delivery 
    strategies to be used, such as teacher centers, professional 
    development schools, teacher networks, and academic alliances, as 
    well as the curriculum for teachers;
        ``(4) specify the commitments the local educational agencies, 
    teacher's union, institutions of higher education, or any other 
    entity participating in such partnership are prepared to make, not 
    only to support program activities such as release time, 
    contractual flexibility, support for interns or student teachers if 
    applicable, but also to sustain the central aspects of the plan 
    after the expiration of the grant; and
        ``(5) describe how the activities described under this part 
    will lead to districtwide policy and budget changes.

``SEC. 2305. TECHNICAL ASSISTANCE.

    ``The Secretary is authorized to enter into an arrangement with an 
intermediary organization to enable such organization to provide 
technical assistance to eligible partnerships receiving assistance 
under this part.

``SEC. 2306. MATCHING FUNDS.

    ``The Secretary shall give special priority to awarding grants 
under this part to eligible partnerships that demonstrate such 
partnership's ability to raise matching funds from private sources.

                      ``PART D--GENERAL PROVISIONS

``SEC. 2401. REPORTING AND ACCOUNTABILITY.

    ``(a) States.--Each State that receives funds under this part shall 
submit a report to the Secretary every three years, beginning with 
fiscal year 1997, on the State's progress toward the performance 
indicators identified in such State's plan, as well as on the 
effectiveness of State and local activities assisted under this part.
    ``(b) Local Educational Agencies.--Each local educational agency 
that receives funds under this part shall submit a report to the State 
every three years, beginning with fiscal year 1997, regarding the 
progress of such agency toward performance indicators identified in 
such agency's local plan, as well as on the effectiveness of such 
agency's activities under this part.
    ``(c) Federal Evaluation.--The Secretary shall report to the 
President and the Congress on the effectiveness of programs and 
activities assisted under this part in accordance with section 14701.
    ``(d) Prohibition on Funds Being Used for Construction or 
Renovation.--Funds received under this part shall not be used for 
construction or renovation of buildings, rooms, or any other 
facilities.

``SEC. 2402. DEFINITIONS.

    ``As used in this part--
        ``(1) the term `core academic subjects' means those subjects 
    listed in the State plan under title III of the Goals 2000: Educate 
    America Act or under the third National Education Goal as set forth 
    in section 102(3) of such Act;
        ``(2) the term `performance indicators' means measures of 
    specific outcomes that the State or local educational agency 
    identifies as assessing progress toward the goal of ensuring that 
    all teachers have the knowledge and skills necessary to assist 
    their students to meet challenging State content standards and 
    challenging State student performance standards in the core 
    academic subjects, such as--
            ``(A) the degree to which licensure requirements are tied 
        to challenging State content standards and challenging State 
        student performance standards;
            ``(B) specific increases in the number of elementary and 
        secondary teachers with strong content backgrounds in the core 
        academic subjects;
            ``(C) incorporating effective strategies, techniques, 
        methods, and practices for meeting the educational needs of 
        diverse students, including females, minorities, individuals 
        with disabilities, limited English proficient individuals, and 
        economically disadvantaged individuals, in order to ensure that 
        all students have the opportunity to achieve challenging 
        student performance standards;
            ``(D) specific increases in the number of teachers who are 
        certified by the National Board for Professional Teaching 
        Standards or other nationally recognized professional teacher 
        enhancement organizations; and
            ``(E) specific increases in the number of teachers licensed 
        in each core academic subject;
        ``(3) the term `sustained and intensive high-quality 
    professional development' means professional development activities 
    that--
            ``(A) are tied to challenging State content standards, 
        challenging State student performance standards, voluntary 
        national content standards or voluntary national student 
        performance standards;
            ``(B) reflect up-to-date research in teaching and learning 
        and include integrated content and pedagogical components 
        appropriate for students with diverse learning needs;
            ``(C) incorporate effective strategies, techniques, 
        methods, and practices for meeting the educational needs of 
        diverse students, including females, minorities, individuals 
        with disabilities, limited English proficient individuals, and 
        economically disadvantaged individuals, in order to ensure that 
        all students have the opportunity to achieve challenging 
        student performance standards;
            ``(D) are of sufficient intensity and duration to have a 
        positive and lasting impact on the teacher's performance in the 
        classroom or the administrator's performance on the job; and
            ``(E) recognize teachers as an important source of 
        knowledge that should inform and help shape professional 
        development; and
        ``(4) the term `local', when used with respect to standards, 
    means challenging content and student performance standards in the 
    core academic subjects (in addition to challenging State content 
    and student performance standards approved by the State for title 
    I).

                 ``TITLE III--TECHNOLOGY FOR EDUCATION

``SEC. 3101. SHORT TITLE.

    ``This title may be cited as the `Technology for Education Act of 
1994'.

           ``PART A--TECHNOLOGY FOR EDUCATION OF ALL STUDENTS

``SEC. 3111. FINDINGS.

    ``The Congress finds that--
        ``(1) technology can produce far greater opportunities for all 
    students to learn to high standards, promote efficiency and 
    effectiveness in education, and help propel our Nation's school 
    systems into very immediate and dramatic reform, without which our 
    Nation will not meet the National Education Goals by the target 
    year 2000;
        ``(2) the use of technology as a tool in the teaching and 
    learning process is essential to the development and maintenance of 
    a technologically literate citizenry and an internationally 
    competitive workforce;
        ``(3) the acquisition and use of technology in education 
    throughout the United States has been inhibited by--
            ``(A) the absence of Federal leadership;
            ``(B) the inability of many State and local educational 
        agencies to invest in and support needed technologies;
            ``(C) the limited exposure of students and teachers to the 
        power of technology as a cost-effective tool to improve student 
        learning and achievement;
            ``(D) the lack of appropriate electrical and telephone 
        connections in the classroom; and
            ``(E) the limited availability of appropriate technology-
        enhanced curriculum, instruction, professional development, and 
        administrative support resources and services in the 
        educational marketplace;
        ``(4) policies at the Federal, State, and local levels 
    concerning technology in education must address disparities in the 
    availability of technology to different groups of students, give 
    priority to serving students in greatest need, and recognize that 
    educational telecommunications and technology can address 
    educational equalization concerns and school restructuring needs by 
    providing universal access to high-quality teaching and programs, 
    particularly in urban and rural areas;
        ``(5) the increasing use of new technologies and 
    telecommunications systems in business has increased the gap 
    between schooling and work force preparation, and underscores the 
    need for technology policies at the Federal, State, tribal, and 
    local levels that address preparation for school-to-work 
    transitions;
        ``(6) technology can enhance the ongoing professional 
    development of teachers and administrators by providing constant 
    access to updated research in teaching and learning by means of 
    telecommunications, and, through exposure to technology 
    advancements, keep teachers and administrators excited and 
    knowledgeable about unfolding opportunities for the classroom;
        ``(7) planned and creative uses of technology, combined with 
    teachers adequately trained in the use of technology, can reshape 
    our Nation's traditional method of providing education and empower 
    teachers to create an environment in which students are challenged 
    through rigorous, rich classroom instruction provided at a pace 
    suited to each student's learning style, and in which students have 
    increased opportunities to develop higher order thinking and 
    technical skills;
        ``(8) schools need new ways of financing the acquisition and 
    maintenance of educational technology;
        ``(9) the needs for educational technology differ from State to 
    State;
        ``(10) technology can provide students, parents, teachers, 
    other education professionals, communities, and industry with 
    increased opportunities for partnerships and with increased access 
    to information, instruction, and educational services in schools 
    and other settings, including homes, libraries, preschool and 
    child-care facilities, adult and family education programs, and 
    postsecondary institutions;
        ``(11) the Department, consistent with the overall national 
    technology policy established by the President, must assume a vital 
    leadership and coordinating role in developing the national vision 
    and strategy to infuse advanced technology throughout all 
    educational programs;
        ``(12) Federal support can ease the burden at the State and 
    local levels by enabling the acquisition of advanced technology and 
    initiating the development of teacher training and support as well 
    as new educational products;
        ``(13) leadership at the Federal level should consider 
    guidelines to ensure that educational technology is accessible to 
    all users with maximum interoperability nationwide;
        ``(14) the rapidly changing nature of technology requires 
    coordination and flexibility in Federal leadership; and
        ``(15) technology has the potential to assist and support the 
    improvement of teaching and learning in schools and other settings.

``SEC. 3112. STATEMENT OF PURPOSE.

    ``The purpose of this part is 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 to 
improve the delivery of educational services. Such system shall 
include--
        ``(1) national leadership with respect to the need for, and the 
    provision of, appropriate technology-enhanced curriculum, 
    instruction, and administrative programs to improve learning in the 
    United States, and to promote equal access for all students to 
    educational opportunities in order to achieve the National 
    Education Goals by the year 2000;
        ``(2) funding mechanisms which will support the development, 
    interconnection, implementation, improvement, and maintenance of an 
    effective educational technology infrastructure, including 
    activities undertaken by State and local educational agencies to 
    promote and provide equipment, training for teachers and school 
    library and media personnel, and technical support;
        ``(3) support for technical assistance, professional 
    development, information and resource dissemination, in order to 
    help States, local educational agencies, teachers, school library 
    and media personnel, and administrators successfully integrate 
    technology into kindergarten through 12th grade classrooms and 
    library media centers;
        ``(4) support for the development of educational and 
    instructional programming in core subject areas, which shall 
    address the National Education Goals;
        ``(5) strengthening and building upon, but not duplicating, 
    existing telecommunications infrastructures dedicated to 
    educational purposes;
        ``(6) development and evaluation of new and emerging 
    educational technologies, telecommunications networks, and state-
    of-the-art educational technology products that promote the use of 
    advanced technologies in the classroom and school library media 
    center;
        ``(7) assessment data regarding state-of-the-art uses of 
    technologies in United States education upon which commercial and 
    noncommercial telecommunications entities, and governments can rely 
    for decisionmaking about the need for, and provision of, 
    appropriate technologies for education in the United States;
        ``(8) ensuring that uses of educational technology are 
    consistent with the overall national technology policy established 
    by the President, and ensuring that Federal technology-related 
    policies and programs will facilitate the use of technology in 
    education;
        ``(9) ensuring that activities supported under this part will 
    form the basis for sound State and local decisions about investing 
    in, sustaining, and expanding uses of technology in education;
        ``(10) establishing working guidelines to ensure maximum 
    interoperability nationwide and ease of access for the emerging 
    technologies so that no school system will be excluded from the 
    technological revolution;
        ``(11) ensuring that, as technological advances are made, the 
    educational uses of these advances are considered and their 
    applications are developed; and
        ``(12) encouragement of collaborative relationships among the 
    State agency for higher education, the State library administrative 
    agency, the State telecommunications agency, and the State 
    educational agency, in the area of technology support to strengthen 
    the system of education.

``SEC. 3113. DEFINITIONS.

    ``For purposes of this title--
        ``(1) the term `adult education' has the same meaning given 
    such term by section 312 of the Adult Education Act;
        ``(2) the term `all students' means students from a broad range 
    of backgrounds and circumstances, including disadvantaged students, 
    students with diverse racial, ethnic, and cultural backgrounds, 
    students with disabilities, students with limited English 
    proficiency, students who have dropped out of school, and 
    academically talented students;
        ``(3) the term `information infrastructure' means a network of 
    communication systems designed to exchange information among all 
    citizens and residents of the United States;
        ``(4) the term `instructional programming' means the full range 
    of audio and video data, text, graphics, or additional state-of-
    the-art communications, including multimedia based resources 
    distributed through interactive, command and control, or passive 
    methods for the purpose of education and instruction;
        ``(5) the terms `interoperable' and `interoperability' mean the 
    ability to exchange easily data with, and connect to, other 
    hardware and software in order to provide the greatest 
    accessibility for all students and other users;
        ``(6) the term `Office' means the Office of Educational 
    Technology;
        ``(7) the term `public telecommunications entity' has the same 
    meaning given to such term by section 397(12) of the Communications 
    Act of 1934;
        ``(8) the term `regional educational laboratory' means a 
    regional educational laboratory supported under section 941(h) of 
    the Educational, Research, Development, Dissemination, and 
    Improvement Act of 1994;
        ``(9) the term `State educational agency' includes the Bureau 
    of Indian Affairs for purposes of serving schools funded by the 
    Bureau of Indian Affairs in accordance with this part;
        ``(10) the term `State library administrative agency' has the 
    same meaning given to such term in section 3 of the Library 
    Services and Construction Act; and
        ``(11) the term `technology' means state-of-the-art technology 
    products and services, such as closed circuit television systems, 
    educational television and radio programs and services, cable 
    television, satellite, copper and fiber optic transmission, 
    computer hardware and software, video and audio laser and CD-ROM 
    discs, and video and audio tapes.

``SEC. 3114. AUTHORIZATION OF APPROPRIATIONS; FUNDING RULE.

    ``(a) Authorization of Appropriations.--
        ``(1) Subparts 1, 2, and 3.--There are authorized to be 
    appropriated $200,000,000 for fiscal year 1995 and such sums as may 
    be necessary for each of the four succeeding fiscal years to carry 
    out subparts 1, 2, and 3, of which--
            ``(A)(i) $3,000,000 shall be available to carry out subpart 
        1 (National Programs for Technology in Education) for any such 
        year for which the amount appropriated under this subsection is 
        less than $75,000,000; and
            ``(ii) $5,000,000 shall be available to carry out subpart 1 
        for any such year for which the amount appropriated under this 
        subsection is equal to or greater than $75,000,000;
            ``(B) $10,000,000 shall be available to carry out subpart 3 
        (Regional Technical Support and Professional Development) for 
        each such year; and
            ``(C) the remainder shall be available to carry out subpart 
        2 (State and Local Programs for School Technology Resources) 
        for each such year.
        ``(2) Subpart 4.--For the purpose of carrying out subpart 4, 
    there are authorized to be appropriated $50,000,000 for fiscal year 
    1995 and such sums as may be necessary for each of the four 
    succeeding fiscal years.
    ``(b) Funding Rule.--
        ``(1) Appropriations of less than $75,000,000.--For any fiscal 
    year for which the amount appropriated under subsection (a)(1) is 
    less than $75,000,000, from the remainder of funds made available 
    under subsection (a)(1)(C) the Secretary shall award grants for the 
    National Challenge Grants in accordance with section 3136.
        ``(2) Appropriations equal to or greater than $75,000,000.--For 
    any fiscal year for which the amount appropriated under subsection 
    (a)(1) is equal to or greater than $75,000,000, from the remainder 
    of funds made available under subsection (a)(1)(C) the Secretary 
    shall award grants to State educational agencies from allotments 
    under section 3131, except that the Secretary may reserve, from 
    such remainder, such funds as the Secretary determines necessary to 
    meet outstanding obligations for such fiscal year to continue the 
    National Challenge Grants for Technology awarded under section 
    3136.

``SEC. 3115. LIMITATION ON COSTS.

    ``Not more than 5 percent of the funds under this part that are 
made available to a recipient of funds under this part for any fiscal 
year may be used by such recipient for administrative costs or 
technical assistance.

       ``Subpart 1--National Programs for Technology in Education

``SEC. 3121. NATIONAL LONG-RANGE TECHNOLOGY PLAN.

    ``(a) In General.--The Secretary shall develop and publish not 
later than 12 months after the date of the enactment of the Improving 
America's Schools Act of 1994, and update when the Secretary determines 
appropriate, a national long-range plan that supports the overall 
national technology policy and carries out the purposes of this part.
    ``(b) Plan Requirements.--The Secretary shall--
        ``(1) develop the national long-range plan in consultation with 
    other Federal departments or agencies, State and local education 
    practitioners and policymakers, experts in technology and the 
    applications of technology to education, representatives of 
    distance learning consortia, representatives of telecommunications 
    partnerships receiving assistance under the Star Schools Act, and 
    providers of technology services and products;
        ``(2) transmit such plan to the President and to the 
    appropriate committees of the Congress; and
        ``(3) publish such plan in a form that is readily accessible to 
    the public.
    ``(c) Contents of the Plan.--The national long-range plan shall 
describe the Secretary's activities to promote the purposes of this 
title, including--
        ``(1) how the Secretary will encourage the effective use of 
    technology to provide all students the opportunity to achieve State 
    content standards and State student performance standards, 
    especially through programs administered by the Department;
        ``(2) joint activities in support of the overall national 
    technology policy with other Federal departments or agencies, such 
    as the Office of Science and Technology Policy, the National 
    Endowment for the Humanities, the National Endowment for the Arts, 
    the National Institute for Literacy, the National Aeronautics and 
    Space Administration, the National Science Foundation, the Bureau 
    of Indian Affairs, and the Departments of Commerce, Energy, Health 
    and Human Services, and Labor--
            ``(A) to promote the use of technology in education, 
        training, and lifelong learning, including plans for the 
        educational uses of a national information infrastructure; and
            ``(B) to ensure that the policies and programs of such 
        departments or agencies facilitate the use of technology for 
        educational purposes, to the extent feasible;
        ``(3) how the Secretary will work with educators, State and 
    local educational agencies, and appropriate representatives of the 
    private sector to facilitate the effective use of technology in 
    education;
        ``(4) how the Secretary will promote--
            ``(A) higher achievement of all students through the 
        integration of technology into the curriculum;
            ``(B) increased access to the benefits of technology for 
        teaching and learning for schools with a high number or 
        percentage of children from low-income families;
            ``(C) the use of technology to assist in the implementation 
        of State systemic reform strategies;
            ``(D) the application of technological advances to use in 
        education;
            ``(E) increased access to high quality adult and family 
        education services through the use of technology for 
        instruction and professional development; and
            ``(F) increased opportunities for the professional 
        development of teachers in the use of new technologies;
        ``(5) how the Secretary will determine, in consultation with 
    appropriate individuals, organizations, industries, and agencies, 
    the feasibility and desirability of establishing guidelines to 
    facilitate an easy exchange of data and effective use of technology 
    in education;
        ``(6) how the Secretary will promote the exchange of 
    information among States, local educational agencies, schools, 
    consortia, and other entities concerning the effective use of 
    technology in education;
        ``(7) how the Secretary will utilize the outcomes of the 
    evaluation undertaken pursuant to section 3123 to promote the 
    purposes of this part; and
        ``(8) the Secretary's long-range measurable goals and 
    objectives relating to the purposes of this part.

``SEC. 3122. FEDERAL LEADERSHIP.

    ``(a) Program Authorized.--In order to provide Federal leadership 
in promoting the use of technology in education, the Secretary, in 
consultation with the National Science Foundation, the Department of 
Commerce, the United States National Commission on Libraries and 
Information Sciences, and other appropriate Federal agencies, may carry 
out activities designed to achieve the purposes of this part directly 
or by awarding grants or contracts competitively and pursuant to a peer 
review process to, or entering into contracts with, State educational 
agencies, local educational agencies, institutions of higher education, 
or other public and private nonprofit or for-profit agencies and 
organizations.
    ``(b) Assistance.--
        ``(1) In general.--The Secretary shall provide assistance to 
    the States to enable such States to plan effectively for the use of 
    technology in all schools throughout the State in accordance with 
    the purpose and requirements of section 317 of the Goals 2000: 
    Educate America Act.
        ``(2) Other federal agencies.--For the purpose of carrying out 
    coordinated or joint activities consistent with the purposes of 
    this part, the Secretary may accept funds from, and transfer funds 
    to, other Federal agencies.
    ``(c) Uses of Funds.--The Secretary shall use funds made available 
to carry out this section for activities designed to carry out the 
purpose of this part, such as--
        ``(1) providing assistance to technical assistance providers to 
    enable such providers to improve substantially the services such 
    providers offer to educators regarding the uses of technology for 
    education, including professional development;
        ``(2) providing development grants to technical assistance 
    providers, to enable such providers to improve substantially the 
    services such providers offer to educators on the educational uses 
    of technology, including professional development;
        ``(3) consulting with representatives of industry, elementary 
    and secondary education, higher education, adult and family 
    education, and appropriate experts in technology and educational 
    applications of technology in carrying out activities under this 
    subpart;
        ``(4) research on, and the development of, guidelines to 
    facilitate maximum interoperability, efficiency and easy exchange 
    of data for effective use of technology in education;
        ``(5) research on, and the development of, applications for 
    education of the most advanced and newly emerging technologies 
    which research shall be coordinated, when appropriate, with the 
    Office of Educational Research and Improvement, and other Federal 
    agencies;
        ``(6) the development, demonstration, and evaluation of the 
    educational aspects of high performance computing and 
    communications technologies and of the national information 
    infrastructure, in providing professional development for teachers, 
    school librarians, and other educators; enriching academic 
    curricula for elementary and secondary schools; facilitating 
    communications among schools, local educational agencies, 
    libraries, parents, and local communities and in other such areas 
    as the Secretary deems appropriate;
        ``(7) the development, demonstration, and evaluation of 
    applications of existing technology in preschool education, 
    elementary and secondary education, training and lifelong learning, 
    and professional development of educational personnel;
        ``(8) the development and evaluation of software and other 
    products, including multimedia television programming, that 
    incorporate advances in technology and help achieve the National 
    Education Goals, State content standards and State student 
    performance standards;
        ``(9) the development, demonstration, and evaluation of model 
    strategies for preparing teachers and other personnel to use 
    technology effectively to improve teaching and learning;
        ``(10) the development of model programs that demonstrate the 
    educational effectiveness of technology in urban and rural areas 
    and economically distressed communities;
        ``(11) research on, and the evaluation of, the effectiveness 
    and benefits of technology in education;
        ``(12) a biennial assessment of, and report to the public 
    regarding, the uses of technology in elementary and secondary 
    education throughout the United States upon which private 
    businesses and Federal, State, tribal, and local governments may 
    rely for decisionmaking about the need for, and provision of, 
    appropriate technologies in schools, which assessment and report 
    shall use, to the extent possible, existing information and 
    resources;
        ``(13) conferences on, and dissemination of information 
    regarding, the uses of technology in education;
        ``(14) the development of model strategies to promote gender 
    equity concerning access to, and the use of, technology in the 
    classroom;
        ``(15) encouraging collaboration between the Department and 
    other Federal agencies in the development, implementation, 
    evaluation and funding of applications of technology for education, 
    as appropriate; and
        ``(16) such other activities as the Secretary determines will 
    meet the purposes of this subpart.
    ``(d) Non-Federal Share.--
        ``(1) In general.--Subject to paragraphs (2) and (3), the 
    Secretary may require any recipient of a grant or contract under 
    this section to share in the cost of the activities assisted under 
    such grant or contract, which non-Federal share shall be announced 
    through a notice in the Federal Register and may be in the form of 
    cash or in-kind contributions, fairly valued.
        ``(2) Increase.--The Secretary may increase the non-Federal 
    share that is required of a recipient of a grant or contract under 
    this section after the first year such recipient receives funds 
    under such grant or contract.
        ``(3) Maximum.--The non-Federal share required under this 
    section shall not exceed 50 percent of the cost of the activities 
    assisted pursuant to a grant or contract under this section.

``SEC. 3123. STUDY, EVALUATION AND REPORT OF FUNDING ALTERNATIVES.

    ``The Secretary, through the Office of Educational Technology, 
shall conduct a study to evaluate, and report to the Congress on, the 
feasibility of several alternative models for providing sustained and 
adequate funding for schools throughout the United States so that such 
schools are able to acquire and maintain technology-enhanced 
curriculum, instruction, and administrative support resources and 
services. Such report shall be submitted to the Congress not later than 
one year after the date of enactment of the Improving America's Schools 
Act of 1994.

 ``Subpart 2--State and Local Programs for School Technology Resources

``SEC. 3131. ALLOTMENT AND REALLOTMENT.

    ``(a) Allotment.--
        ``(1) In general.--Except as provided in paragraph (2), each 
    State educational agency shall be eligible to receive a grant under 
    this subpart for a fiscal year in an amount which bears the same 
    relationship to the amount made available under section 
    3114(a)(1)(C) for such year as the amount such State received under 
    part A of title I for such year bears to the amount received for 
    such year under such part by all States.
        ``(2) Minimum.--No State educational agency shall be eligible 
    to receive a grant under paragraph (1) in any fiscal year in an 
    amount which is less than one-half of one percent of the amount 
    made available under section 3115(a)(1)(C) for such year.
    ``(b) Reallotment of Unused Funds.--
        ``(1) In general.--The amount of any State educational agency's 
    allotment under subsection (a) for any fiscal year which the 
    Secretary determines will not be required for such fiscal year to 
    carry out this subpart shall be available for reallotment from time 
    to time, on such dates during such year as the Secretary may 
    determine, to other State educational agencies in proportion to the 
    original allotments to such State educational agencies under 
    subsection (a) for such year, but with such proportionate amount 
    for any of such other State educational agencies being reduced to 
    the extent such amount exceeds the sum the Secretary estimates such 
    State needs and will be able to use for such year.
        ``(2) Other reallotments.--The total of reductions under 
    paragraph (1) shall be similarly reallotted among the State 
    educational agencies whose proportionate amounts were not so 
    reduced. Any amounts reallotted to a State educational agency under 
    this subsection during a year shall be deemed a subpart of such 
    agencies allotment under subsection (a) for such year.

``SEC. 3132. SCHOOL TECHNOLOGY RESOURCE GRANTS.

    ``(a) Grants to States.--
        ``(1) In general.--From amounts made available under section 
    3131, the Secretary, through the Office of Educational Technology, 
    shall award grants to State educational agencies having 
    applications approved under section 3133.
        ``(2) Use of grants.--(A) Each State educational agency 
    receiving a grant under paragraph (1) shall use such grant funds to 
    award grants, on a competitive basis, to local educational agencies 
    to enable such local educational agencies to carry out the 
    activities described in section 3134.
        ``(B) In awarding grants under subparagraph (A), each State 
    educational agency shall ensure that each such grant is of 
    sufficient duration, and of sufficient size, scope, and quality, to 
    carry out the purposes of this part effectively.
    ``(b) Technical Assistance.--Each State educational agency 
receiving a grant under paragraph (1) shall--
        ``(1) identify the local educational agencies served by the 
    State educational agency that--
            ``(A) have the highest number or percentage of children in 
        poverty; and
            ``(B) demonstrate to such State educational agency the 
        greatest need for technical assistance in developing the 
        application under section 3133; and
        ``(2) offer such technical assistance to such local educational 
    agencies.

``SEC. 3133. STATE APPLICATION.

    ``To receive funds under this subpart, each State educational 
agency shall submit a statewide educational technology plan which may 
include plans submitted under the Goals 2000: Educate America Act or 
other statewide technology plans which meet the requirements of this 
section. Such application shall be submitted to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may reasonably require. Each such application shall contain a 
systemic statewide plan that--
        ``(1) outlines long-term strategies for financing technology 
    education in the State and describes how business, industry, and 
    other public and private agencies, including libraries, library 
    literacy programs, and institutions of higher education, can 
    participate in the implementation, ongoing planning, and support of 
    the plan; and
        ``(2) meets such other criteria as the Secretary may establish 
    in order to enable such agency to provide assistance to local 
    educational agencies that have the highest numbers or percentages 
    of children in poverty and demonstrate the greatest need for 
    technology, in order to enable such local educational agencies, for 
    the benefit of school sites served by such local educational 
    agencies, to carry out activities such as--
            ``(A) purchasing quality technology resources;
            ``(B) installing various linkages necessary to acquire 
        connectivity;
            ``(C) integrating technology into the curriculum in order 
        to improve student learning and achievement;
            ``(D) providing teachers and library media personnel with 
        training or access to training;
            ``(E) providing administrative and technical support and 
        services that improve student learning through enriched 
        technology-enhanced resources, including library media 
        resources;
            ``(F) promoting in individual schools the sharing, 
        distribution, and application of educational technologies with 
        demonstrated effectiveness;
            ``(G) assisting schools in promoting parent involvement;
            ``(H) assisting the community in providing literacy-related 
        services;
            ``(I) establishing partnerships with private or public 
        educational providers or other entities to serve the needs of 
        children in poverty; and
            ``(J) providing assurances that financial assistance 
        provided under this part shall supplement, not supplant, State 
        and local funds.

``SEC. 3134. LOCAL USES OF FUNDS.

    ``Each local educational agency, to the extent possible, shall use 
the funds made available under section 3132(a)(2) for--
        ``(1) developing, adapting, or expanding existing and new 
    applications of technology to support the school reform effort;
        ``(2) funding projects of sufficient size and scope to improve 
    student learning and, as appropriate, support professional 
    development, and provide administrative support;
        ``(3) acquiring connectivity linkages, resources, and services, 
    including the acquisition of hardware and software, for use by 
    teachers, students and school library media personnel in the 
    classroom or in school library media centers, in order to improve 
    student learning by supporting the instructional program offered by 
    such agency to ensure that students in schools will have meaningful 
    access on a regular basis to such linkages, resources and services;
        ``(4) providing ongoing professional development in the 
    integration of quality educational technologies into school 
    curriculum and long-term planning for implementing educational 
    technologies;
        ``(5) acquiring connectivity with wide area networks for 
    purposes of accessing information and educational programming 
    sources, particularly with institutions of higher education and 
    public libraries; and
        ``(6) providing educational services for adults and families.

``SEC. 3135. LOCAL APPLICATIONS.

    ``Each local educational agency desiring assistance from a State 
educational agency under section 3132(a)(2) shall submit an 
application, consistent with the objectives of the systemic statewide 
plan, to the State educational agency at such time, in such manner and 
accompanied by such information as the State educational agency may 
reasonably require. Such application, at a minimum, shall--
        ``(1) include a strategic, long-range (three- to five-year), 
    plan that includes--
            ``(A) a description of the type of technologies to be 
        acquired, including specific provisions for interoperability 
        among components of such technologies and, to the extent 
        practicable, with existing technologies;
            ``(B) an explanation of how the acquired technologies will 
        be integrated into the curriculum to help the local educational 
        agency enhance teaching, training, and student achievement;
            ``(C) an explanation of how programs will be developed in 
        collaboration with existing adult literacy services providers 
        to maximize the use of such technologies;
            ``(D)(i) a description of how the local educational agency 
        will ensure ongoing, sustained professional development for 
        teachers, administrators, and school library media personnel 
        served by the local educational agency to further the use of 
        technology in the classroom or library media center; and
            ``(ii) a list of the source or sources of ongoing training 
        and technical assistance available to schools, teachers and 
        administrators served by the local educational agency, such as 
        State technology offices, intermediate educational support 
        units, regional educational laboratories or institutions of 
        higher education;
            ``(E) a description of the supporting resources, such as 
        services, software and print resources, which will be acquired 
        to ensure successful and effective use of technologies acquired 
        under this section;
            ``(F) the projected timetable for implementing such plan in 
        schools;
            ``(G) the projected cost of technologies to be acquired and 
        related expenses needed to implement such plan; and
            ``(H) a description of how the local educational agency 
        will coordinate the technology provided pursuant to this 
        subpart with other grant funds available for technology from 
        State and local sources;
        ``(2) describe how the local educational agency will involve 
    parents, public libraries, business leaders and community leaders 
    in the development of such plan;
        ``(3) describe how the acquired instructionally based 
    technologies will help the local educational agency--
            ``(A) promote equity in education in order to support State 
        content standards and State student performance standards that 
        may be developed; and
            ``(B) provide access for teachers, parents and students to 
        the best teaching practices and curriculum resources through 
        technology; and
        ``(4) describe a process for the ongoing evaluation of how 
    technologies acquired under this section--
            ``(A) will be integrated into the school curriculum; and
            ``(B) will affect student achievement and progress toward 
        meeting the National Education Goals and any challenging State 
        content standards and State student performance standards that 
        may be developed.
    ``(d) Formation of Consortia.--A local educational agency for any 
fiscal year may apply for financial assistance as part of a consortium 
with other local educational agencies, institutions of higher 
education, intermediate educational units, libraries, or other 
educational entities appropriate to provide local programs. The State 
educational agency may assist in the formation of consortia among local 
educational agencies, providers of educational services for adults and 
families, institutions of higher education, intermediate educational 
units, libraries, or other appropriate educational entities to provide 
services for the teachers and students in a local educational agency at 
the request of such local educational agency.
    ``(e) Coordination of Application Requirements.--If a local 
educational agency submitting an application for assistance under this 
section has developed a comprehensive education improvement plan, in 
conjunction with requirements under this Act or the Goals 2000: Educate 
America Act, the State educational agency may approve such plan, or a 
component of such plan, notwithstanding the requirements of subsection 
(e) if the State educational agency determines that such approval would 
further the purposes of this subpart.

``SEC. 3136. NATIONAL CHALLENGE GRANTS FOR TECHNOLOGY IN EDUCATION.

    ``(a) Grants Authorized.--
        ``(1) In general.--From amounts made available under section 
    3115(b)(1) for any fiscal year the Secretary is authorized to award 
    grants, on a competitive basis, to consortia having applications 
    approved under subsection (d), which consortia shall include at 
    least one local educational agency with a high percentage or number 
    of children living below the poverty line and may include other 
    local educational agencies, State educational agencies, 
    institutions of higher education, businesses, academic content 
    experts, software designers, museums, libraries, or other 
    appropriate entities.
        ``(2) Duration.--Grants under this section shall be awarded for 
    a period of 5 years.
    ``(b) Use of Grants.--Grants awarded under subsection (a) shall be 
used for activities similar to the activities described in section 
3134.
    ``(c) Priority.--In awarding grants under this section, the 
Secretary shall give priority to consortia which demonstrate in the 
application submitted under subsection (d) that--
        ``(1) the project for which assistance is sought is designed to 
    serve areas with a high number or percentage of disadvantaged 
    students or the greatest need for educational technology;
        ``(2) the project will directly benefit students by, for 
    example, integrating the acquired technologies into curriculum to 
    help the local educational agency enhance teaching, training, and 
    student achievement;
        ``(3) the project will ensure ongoing, sustained professional 
    development for teachers, administrators, and school library media 
    personnel served by the local educational agency to further the use 
    of technology in the classroom or library media center;
        ``(4) the project will ensure successful, effective, and 
    sustainable use of technologies acquired under this subsection; and
        ``(5) members of the consortia or other appropriate entities 
    will contribute substantial financial and other resources to 
    achieve the goals of the project.
    ``(d) Application.--Each local educational agency desiring a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may reasonably require.

``SEC. 3137. FEDERAL ADMINISTRATION.

    ``(a) Evaluation Procedures.--The Secretary shall develop 
procedures for State and local evaluations of the programs under this 
subpart.
    ``(b) Evaluation Summary.--The Secretary shall submit to the 
Congress four years after the enactment of the Improving America's 
Schools Act of 1994 a summary of the State evaluations of programs 
under this subpart in accordance with the provisions of section 14701.

   Subpart 3--Regional Technical Support and Professional Development

``SEC. 3141. REGIONAL TECHNICAL SUPPORT AND PROFESSIONAL DEVELOPMENT.
    ``(a) Grants Authorized.--
        ``(1) Authority.--The Secretary, through the Office of 
    Educational Technology, shall make grants in accordance with the 
    provisions of this section, to regional entities such as the 
    Eisenhower Mathematics and Science Regional Consortia under part C 
    of title XIII, the regional education laboratories, the 
    comprehensive regional assistance centers, or such other regional 
    entities as may be designated or established by the Secretary. In 
    awarding grants under this section, the Secretary shall give 
    priority to such consortia and shall ensure that each geographic 
    region of the United States shall be served by such a consortium.
        ``(2) Requirements.--Each consortium receiving a grant under 
    this section shall--
            ``(A) be composed of State educational agencies, 
        institutions of higher education, nonprofit organizations, or a 
        combination thereof;
            ``(B) in cooperation with State and local educational 
        agencies, develop a regional program that addresses 
        professional development, technical assistance, and information 
        resource dissemination, with special emphasis on meeting the 
        documented needs of educators and learners in the region; and
            ``(C) foster regional cooperation and resource and 
        coursework sharing.
    ``(b) Functions.--
        ``(1) Technical assistance.--Each consortium receiving a grant 
    under this section shall, to the extent practicable--
            ``(A) collaborate with State educational agencies and local 
        educational agencies requesting collaboration, particularly in 
        the development of strategies for assisting those schools with 
        the highest numbers or percentages of disadvantaged students 
        with little or no access to technology in the classroom;
            ``(B) provide information, in coordination with information 
        available from the Secretary, to State educational agencies, 
        local educational agencies, schools and adult education 
        programs, on the types and features of various educational 
        technology equipment and software available, evaluate and make 
        recommendations on equipment and software that support the 
        National Education Goals and are suited for a school's 
        particular needs, and compile and share information regarding 
        creative and effective applications of technology in the 
        classroom and school library media centers in order to support 
        the purposes of this part;
            ``(C) collaborate with such State educational agencies, 
        local educational agencies, or schools requesting to 
        participate in the tailoring of software programs and other 
        supporting materials to meet challenging State content 
        standards or challenging State student performance standards 
        that may be developed; and
            ``(D) provide technical assistance to facilitate use of the 
        electronic dissemination networks by State and local 
        educational agencies and schools throughout the region.
        ``(2) Professional development.--Each consortium receiving a 
    grant under this section shall, to the extent practicable--
            ``(A) develop and implement, in collaboration with State 
        educational agencies and institutions of higher education, 
        technology-specific, ongoing professional development, such 
        as--
                ``(i) intensive school year and summer workshops that 
            use teachers, school librarians, and school library 
            personnel to train other teachers, school librarians, and 
            other school library media personnel; and
                ``(ii) distance professional development, including--

                    ``(I) interactive training tele-courses using 
                researchers, educators, and telecommunications 
                personnel who have experience in developing, 
                implementing, or operating educational and 
                instructional technology as a learning tool;
                    ``(II) onsite courses teaching teachers to use 
                educational and instructional technology and to develop 
                their own instructional materials for effectively 
                incorporating technology and programming in their own 
                classrooms;
                    ``(III) methods for successful integration of 
                instructional technology into the curriculum in order 
                to improve student learning and achievement;
                    ``(IV) video conferences and seminars which offer 
                professional development through peer interaction with 
                experts as well as other teachers using technologies in 
                their classrooms; and
                    ``(V) mobile education technology and training 
                resources;

            ``(B) develop training resources that--
                ``(i) are relevant to the needs of the region and 
            schools within the region;
                ``(ii) are relevant to the needs of adult literacy 
            staff and volunteers, including onsite courses on how to--

                    ``(I) use instructional technology; and
                    ``(II) develop instructional materials for adult 
                learning; and

                ``(iii) are aligned with the needs of teachers and 
            administrators in the region;
            ``(C) establish a repository of professional development 
        and technical assistance resources;
            ``(D) identify and link technical assistance providers to 
        State and local educational agencies, as needed;
            ``(E) ensure that training, professional development, and 
        technical assistance meet the needs of educators, parents, and 
        students served by the region;
            ``(F) assist colleges and universities within the region to 
        develop and implement preservice training programs for students 
        enrolled in teacher education programs; and
            ``(G) assist local educational agencies and schools in 
        working with community members and parents to develop support 
        from communities and parents for educational technology 
        programs and projects.
        ``(3) Information and resource dissemination.--Each consortium 
    receiving a grant under this section shall, to the extent 
    practicable--
            ``(A) assist State and local educational agencies in the 
        identification and procurement of financial, technological and 
        human resources needed to implement technology plans;
            ``(B) provide outreach and, at the request of a State or 
        local educational agency, work with such agency to assist in 
        the development and validation of instructionally based 
        technology education resources; and
            ``(C) coordinate activities and establish partnerships with 
        organizations and institutions of higher education that 
        represent the interests of the region as such interests pertain 
        to the application of technology in teaching, learning, 
        instructional management, dissemination, collection and 
        distribution of educational statistics, and the transfer of 
        student information.
        ``(4) Coordination.--Each consortium receiving a grant under 
    this section shall work collaboratively, and coordinate the 
    services the consortium provides, with appropriate regional and 
    other entities assisted in whole or in part by the Department.

                    ``Subpart 4--Product Development

``SEC. 3151. EDUCATIONAL TECHNOLOGY PRODUCT DEVELOPMENT.

    ``(a) Purpose.--It is the purpose of this subpart to--
        ``(1) support development of curriculum-based learning 
    resources using state-of-the-art technologies and techniques 
    designed to improve student learning; and
        ``(2) support development of long-term comprehensive 
    instructional programming and associated support resources that 
    ensure maximum access by all educational institutions.
    ``(b) Federal Assistance Authorized.--
        ``(1) In general.--The Secretary shall provide assistance, on a 
    competitive basis, to eligible consortia to enable such entities to 
    develop, produce, and distribute state-of-the-art technology-
    enhanced instructional resources and programming for use in the 
    classroom or to support professional development for teachers.
        ``(2) Grants and loans authorized.--In carrying out the 
    purposes of this section, the Secretary is authorized to pay the 
    Federal share of the cost of the development, production, and 
    distribution of state-of-the-art technology enhanced instructional 
    resources and programming--
            ``(A) by awarding grants to, or entering into contracts or 
        cooperative agreements with, eligible consortia; or
            ``(B) by awarding loans to eligible consortia which--
                ``(i) shall be secured in such manner and be repaid 
            within such period, not exceeding 20 years, as may be 
            determined by the Secretary;
                ``(ii) shall bear interest at a rate determined by the 
            Secretary which shall be not more than the total of one-
            quarter of 1 percent per annum added to the rate of 
            interest paid by the Secretary on funds obtained from the 
            Secretary of the Treasury; and
                ``(iii) may be forgiven by the Secretary, in an amount 
            not to exceed 25 percent of the total loan, under such 
            terms and conditions as the Secretary may consider 
            appropriate.
        ``(3) Matching requirement.--The Secretary may require any 
    recipient of a grant or contract under this subpart to share in the 
    cost of the activities assisted under such grant or contract, which 
    non-Federal share shall be announced through a notice in the 
    Federal Register and may be in the form of cash or in-kind 
    contributions, fairly valued.
        ``(4) Eligible consortium.--For the purpose of this subsection, 
    the term `eligible consortium' means a consortium--
            ``(A) that shall include--
                ``(i) a State or local educational agency; and
                ``(ii) a business, industry, or telecommunications 
            entity; and
            ``(B) that may include--
                ``(i) a public or private nonprofit organization; or
                ``(ii) a postsecondary institution.
        ``(5) Priorities.--In awarding assistance under this section, 
    the Secretary shall give priority to applications describing 
    programs or systems that--
            ``(A) promote the acquisition of higher-order thinking 
        skills and promise to raise the achievement levels of all 
        students, particularly disadvantaged students who are not 
        realizing their potential;
            ``(B) are aligned with challenging State content standards 
        and State and local curriculum frameworks;
            ``(C) may be adapted and applied nationally at a reasonable 
        cost over a broad technology platform;
            ``(D) convert technology resources developed with support 
        from the Department of Defense and other Federal agencies for 
        effective use in the classroom;
            ``(E) show promise of reducing the costs of providing high-
        quality instruction;
            ``(F) show promise of expanding access to high-quality 
        instruction in content areas which would otherwise not be 
        available to students in rural and urban communities or who are 
        served by other educational agencies with limited financial 
        resources;
            ``(G) are developed in consultation with classroom 
        teachers;
            ``(H) are developed through consultation and collaboration 
        with appropriate education entities in designing the product to 
        ensure relevance to the voluntary national content standards, 
        the voluntary national student performance standards and State 
        curriculum frameworks; and
            ``(I) are developed so that the product can be adapted for 
        use by adults in need of literacy services, including English 
        as a second language and preparation for a secondary school 
        diploma or its recognized equivalent.
        ``(6) Requirements for federal assistance.--Each eligible 
    consortium desiring Federal assistance under this section shall 
    submit an application to the Secretary at such time and in such 
    manner as the Secretary may prescribe. Each application shall 
    include--
            ``(A) a description of how the product will improve the 
        achievement levels of students;
            ``(B) a description of how the activities assisted under 
        this section will promote professional development of teachers 
        and administrators in the uses and applications of the product, 
        including the development of training materials;
            ``(C) a description of design, development, field testing, 
        evaluation, and distribution of products, where appropriate;
            ``(D) an assurance that the product shall effectively serve 
        a significant number or percentage of economically 
        disadvantaged students;
            ``(E) plans for dissemination of products to a wide 
        audience of learners;
            ``(F) a description of how the product can be adapted for 
        use by students with disabilities including provisions for 
        closed captioning or descriptive video, where appropriate;
            ``(G) a description of how ownership and rights to the use 
        and marketing of any product developed by the consortium, 
        including intellectual property rights, will be allocated among 
        consortium participants; and
            ``(H) a description of the contributions, including 
        services and funds, to be made by each member of the 
        consortium, and how any revenues derived from the sale of any 
        product developed by the consortium shall be distributed.
    ``(c) Consumer Report.--The Secretary shall provide for the 
independent evaluation of products developed under this section and 
shall disseminate information about products developed pursuant to 
provisions of this section to State and local educational agencies, and 
other organizations or individuals that the Secretary determines to be 
appropriate, through print and electronic media that are accessible to 
the education community at large.
    ``(d) Proceeds.--The Secretary shall not prohibit an eligible 
consortium or any of the members of such consortium from receiving 
financial benefits from the distribution of any products resulting from 
the assistance received under this section. Notwithstanding any other 
provision of law, any profits or royalties received by a State 
educational agency, local educational agency, or other nonprofit member 
of an eligible consortium receiving assistance under this section shall 
be used to support further development of curriculum-based learning 
resources, services, and programming or to provide access to such 
products for a wider audience.

                     ``PART B--STAR SCHOOLS PROGRAM

``SEC. 3201. SHORT TITLE.

    ``This part may be cited as the `Star Schools Act'.

``SEC. 3202. FINDINGS.

    ``The Congress finds that--
        ``(1) the Star Schools program has helped to encourage the use 
    of distance learning strategies to serve multi-State regions 
    primarily by means of satellite and broadcast television;
        ``(2) in general, distance learning programs have been used 
    effectively to provide students in small, rural, and isolated 
    schools with courses and instruction, such as science and foreign 
    language instruction, that the local educational agency is not 
    otherwise able to provide; and
        ``(3) distance learning programs may also be used to--
            ``(A) provide students of all ages in all types of schools 
        and educational settings with greater access to high-quality 
        instruction in the full range of core academic subjects that 
        will enable such students to meet challenging, internationally 
        competitive, educational standards;
            ``(B) expand professional development opportunities for 
        teachers;
            ``(C) contribute to achievement of the National Education 
        Goals; and
            ``(D) expand learning opportunities for everyone.

``SEC. 3203. PURPOSE.

    ``It is the purpose of this part to encourage improved instruction 
in mathematics, science, and foreign languages as well as other 
subjects, such as literacy skills and vocational education, and to 
serve underserved populations, including the disadvantaged, illiterate, 
limited-English proficient, and individuals with disabilities, through 
a star schools program under which grants are made to eligible 
telecommunication partnerships to enable such partnerships to--
        ``(1) develop, construct, acquire, maintain and operate 
    telecommunications audio and visual facilities and equipment;
        ``(2) develop and acquire educational and instructional 
    programming; and
        ``(3) obtain technical assistance for the use of such 
    facilities and instructional programming.

``SEC. 3204. GRANTS AUTHORIZED.

    ``(a) Authority.--The Secretary, through the Office of Educational 
Technology, is authorized to make grants, in accordance with the 
provisions of this part, to eligible entities to pay the Federal share 
of the cost of--
        ``(1) the development, construction, acquisition, maintenance 
    and operation of telecommunications facilities and equipment;
        ``(2) the development and acquisition of live, interactive 
    instructional programming;
        ``(3) the development and acquisition of preservice and 
    inservice teacher training programs based on established research 
    regarding teacher-to-teacher mentoring, effective skill transfer, 
    and ongoing, in-class instruction;
        ``(4) the establishment of teleconferencing facilities and 
    resources for making interactive training available to teachers;
        ``(5) obtaining technical assistance; and
        ``(6) the coordination of the design and connectivity of 
    telecommunications networks to reach the greatest number of 
    schools.
    ``(b) Duration.--
        ``(1) In general.--The Secretary shall award grants pursuant to 
    subsection (a) for a period of 5 years.
        ``(2) Renewal.--Grants awarded pursuant to subsection (a) may 
    be renewed for one additional three-year period.
    ``(c) Authorization of Appropriations.--
        ``(1) In general.--There are authorized to be appropriated 
    $35,000,000 for fiscal year 1995, and such sums as may be necessary 
    for each of the four succeeding fiscal years, to carry out this 
    part.
        ``(2) Availability.--Funds appropriated pursuant to the 
    authority of subsection (a) shall remain available until expended.
    ``(d) Limitations.--
        ``(1) In general.--A grant under this section shall not 
    exceed--
            ``(A) five years in duration; and
            ``(B) $10,000,000 in any one fiscal year.
        ``(2) Instructional programming.--Not less than 25 percent of 
    the funds available to the Secretary in any fiscal year under this 
    part shall be used for the cost of instructional programming.
        ``(3) Special rule.--Not less than 50 percent of the funds 
    available in any fiscal year under this part shall be used for the 
    cost of facilities, equipment, teacher training or retraining, 
    technical assistance, or programming, for local educational 
    agencies which are eligible to receive assistance under part A of 
    title I.
    ``(e) Federal Share.--
        ``(1) In general.--The Federal share of the cost of projects 
    funded under this section shall not exceed--
            ``(A) 75 percent for the first and second years for which 
        an eligible telecommunications partnership receives a grant 
        under this part;
            ``(B) 60 percent for the third and fourth such years; and
            ``(C) 50 percent for the fifth such year.
        ``(2) Reduction or waiver.--The Secretary may reduce or waive 
    the requirement of the non-Federal share under paragraph (1) upon a 
    showing of financial hardship.
    ``(f) Authority To Accept Funds From Other Agencies.--The Secretary 
is authorized to accept funds from other Federal departments or 
agencies to carry out the purposes of this section, including funds for 
the purchase of equipment.
    ``(g) Coordination.--The Department, the National Science 
Foundation, the Department of Agriculture, the Department of Commerce, 
and any other Federal department or agency operating a 
telecommunications network for educational purposes, shall coordinate 
the activities assisted under this part with the activities of such 
department or agency relating to a telecommunications network for 
educational purposes.
    ``(h) Closed Captioning and Descriptive Video.--Each entity 
receiving funds under this part is encouraged to provide--
        ``(1) closed captioning of the verbal content of such program, 
    where appropriate, to be broadcast by way of line 21 of the 
    vertical blanking interval, or by way of comparable successor 
    technologies; and
        ``(2) descriptive video of the visual content of such program, 
    as appropriate.

``SEC. 3205. ELIGIBLE ENTITIES.

    ``(a) Eligible Entities.--
        ``(1) Required participation.--The Secretary may make a grant 
    under section 3204 to any eligible entity, if at least one local 
    educational agency is participating in the proposed project.
        ``(2) Eligible entity.--For the purpose of this part, the term 
    `eligible entity' may include--
            ``(A) a public agency or corporation established for the 
        purpose of developing and operating telecommunications networks 
        to enhance educational opportunities provided by educational 
        institutions, teacher training centers, and other entities, 
        except that any such agency or corporation shall represent the 
        interests of elementary and secondary schools that are eligible 
        to participate in the program under part A of title I; or
            ``(B) a partnership that will provide telecommunications 
        services and which includes 3 or more of the following 
        entities, at least 1 of which shall be an agency described in 
        clause (i) or (ii):
                ``(i) a local educational agency that serves a 
            significant number of elementary and secondary schools that 
            are eligible for assistance under part A of title I, or 
            elementary and secondary schools operated or funded for 
            Indian children by the Department of the Interior eligible 
            under section 1121(b)(2);
                ``(ii) a State educational agency;
                ``(iii) adult and family education programs;
                ``(iv) an institution of higher education or a State 
            higher education agency;
                ``(v) a teacher training center or academy that--

                    ``(I) provides teacher pre-service and in-service 
                training; and
                    ``(II) receives Federal financial assistance or has 
                been approved by a State agency;

                ``(vi) (I) a public or private entity with experience 
            and expertise in the planning and operation of a 
            telecommunications network, including entities involved in 
            telecommunications through satellite, cable, telephone, or 
            computer; or
                ``(II) a public broadcasting entity with such 
            experience; or
                ``(vii) a public or private elementary or secondary 
            school.
    ``(b) Special Rule.--An eligible entity receiving assistance under 
this part shall be organized on a statewide or multistate basis.

``SEC. 3206. APPLICATIONS.

    ``(a) Applications Required.--Each eligible entity which desires to 
receive a grant under section 3204 shall submit an application to the 
Secretary, at such time, in such manner, and containing or accompanied 
by such information as the Secretary may reasonably require.
    ``(b) Star School Award Applications.--Each application submitted 
pursuant to subsection (a) shall--
        ``(1) describe how the proposed project will assist in 
    achieving the National Education Goals, how such project will 
    assist all students to have an opportunity to learn to challenging 
    State standards, how such project will assist State and local 
    educational reform efforts, and how such project will contribute to 
    creating a high quality system of lifelong learning;
        ``(2) describe the telecommunications facilities and equipment 
    and technical assistance for which assistance is sought, which may 
    include--
            ``(A) the design, development, construction, acquisition, 
        maintenance and operation of State or multistate educational 
        telecommunications networks and technology resource centers;
            ``(B) microwave, fiber optics, cable, and satellite 
        transmission equipment or any combination thereof;
            ``(C) reception facilities;
            ``(D) satellite time;
            ``(E) production facilities;
            ``(F) other telecommunications equipment capable of serving 
        a wide geographic area;
            ``(G) the provision of training services to instructors who 
        will be using the facilities and equipment for which assistance 
        is sought, including training in using such facilities and 
        equipment and training in integrating programs into the 
        classroom curriculum; and
            ``(H) the development of educational and related 
        programming for use on a telecommunications network;
        ``(3) in the case of an application for assistance for 
    instructional programming, describe the types of programming which 
    will be developed to enhance instruction and training and provide 
    assurances that such programming will be designed in consultation 
    with professionals (including classroom teachers) who are experts 
    in the applicable subject matter and grade level;
        ``(4) describe how the eligible entity has engaged in 
    sufficient survey and analysis of the area to be served to ensure 
    that the services offered by the eligible entity will increase the 
    availability of courses of instruction in English, mathematics, 
    science, foreign languages, arts, history, geography, or other 
    disciplines;
        ``(5) describe the professional development policies for 
    teachers and other school personnel to be implemented to ensure the 
    effective use of the telecommunications facilities and equipment 
    for which assistance is sought;
        ``(6) describe the manner in which historically underserved 
    students (such as students from low-income families, limited 
    English proficient students, students with disabilities, or 
    students who have low literacy skills) and their families, will 
    participate in the benefits of the telecommunications facilities, 
    equipment, technical assistance, and programming assisted under 
    this part;
        ``(7) describe how existing telecommunications equipment, 
    facilities, and services, where available, will be used;
        ``(8) provide assurances that the financial interest of the 
    United States in the telecommunications facilities and equipment 
    will be protected for the useful life of such facilities and 
    equipment;
        ``(9) provide assurances that a significant portion of any 
    facilities and equipment, technical assistance, and programming for 
    which assistance is sought for elementary and secondary schools 
    will be made available to schools or local educational agencies 
    that have a high number or percentage of children eligible to be 
    counted under part A of title I;
        ``(10) provide assurances that the applicant will use the funds 
    provided under this part to supplement and not supplant funds 
    otherwise available for the purposes of this part;
        ``(11) if any member of the consortia receives assistance under 
    subpart 3 of part A, describe how funds received under this part 
    will be coordinated with funds received for educational technology 
    in the classroom under such section;
        ``(12) describe the activities or services for which assistance 
    is sought, such as--
            ``(A) providing facilities, equipment, training services, 
        and technical assistance;
            ``(B) making programs accessible to students with 
        disabilities through mechanisms such as closed captioning and 
        descriptive video services;
            ``(C) linking networks around issues of national importance 
        (such as elections) or to provide information about employment 
        opportunities, job training, or student and other social 
        service programs;
            ``(D) sharing curriculum resources between networks and 
        development of program guides which demonstrate cooperative, 
        cross-network listing of programs for specific curriculum 
        areas;
            ``(E) providing teacher and student support services 
        including classroom and training support materials which permit 
        student and teacher involvement in the live interactive 
        distance learning telecasts;
            ``(F) incorporating community resources such as libraries 
        and museums into instructional programs;
            ``(G) providing professional development for teachers, 
        including, as appropriate, training to early childhood 
        development and Head Start teachers and staff and vocational 
        education teachers and staff, and adult and family educators;
            ``(H) providing programs for adults to maximize the use of 
        telecommunications facilities and equipment;
            ``(I) providing teacher training on proposed or established 
        voluntary national content standards in mathematics and science 
        and other disciplines as such standards are developed; and
            ``(J) providing parent education programs during and after 
        the regular school day which reinforce a student's course of 
        study and actively involve parents in the learning process;
        ``(13) describe how the proposed project as a whole will be 
    financed and how arrangements for future financing will be 
    developed before the project expires;
        ``(14) provide an assurance that a significant portion of any 
    facilities, equipment, technical assistance, and programming for 
    which assistance is sought for elementary and secondary schools 
    will be made available to schools in local educational agencies 
    that have a high percentage of children counted for the purpose of 
    part A of title I;
        ``(15) provide an assurance that the applicant will provide 
    such information and cooperate in any evaluation that the Secretary 
    may conduct under this part; and
        ``(16) include such additional assurances as the Secretary may 
    reasonably require.
    ``(c) Priorities.--The Secretary, in approving applications for 
grants authorized under section 3204, shall give priority to 
applications describing projects that--
        ``(1) propose high-quality plans to assist in achieving one or 
    more of the National Education Goals, will provide instruction 
    consistent with State content standards, or will otherwise provide 
    significant and specific assistance to States and local educational 
    agencies undertaking systemic education reform;
        ``(2) will provide services to programs serving adults, 
    especially parents, with low levels of literacy;
        ``(3) will serve schools with significant numbers of children 
    counted for the purposes of part A of title I;
        ``(4) ensure that the eligible entity will--
            ``(A) serve the broadest range of institutions, programs 
        providing instruction outside of the school setting, programs 
        serving adults, especially parents, with low levels of 
        literacy, institutions of higher education, teacher training 
        centers, research institutes, and private industry;
            ``(B) have substantial academic and teaching capabilities, 
        including the capability of training, retraining, and inservice 
        upgrading of teaching skills and the capability to provide 
        professional development;
            ``(C) provide a comprehensive range of courses for 
        educators to teach instructional strategies for students with 
        different skill levels;
            ``(D) provide training to participating educators in ways 
        to integrate telecommunications courses into existing school 
        curriculum;
            ``(E) provide instruction for students, teachers, and 
        parents;
            ``(F) serve a multistate area; and
            ``(G) give priority to the provision of equipment and 
        linkages to isolated areas; and
        ``(5) involve a telecommunications entity (such as a satellite, 
    cable, telephone, computer, or public or private television 
    stations) participating in the eligible entity and donating 
    equipment or in-kind services for telecommunications linkages.
    ``(d) Geographic Distribution.--In approving applications for 
grants authorized under section 3204, the Secretary shall, to the 
extent feasible, ensure an equitable geographic distribution of 
services provided under this part.

``SEC. 3207. LEADERSHIP AND EVALUATION ACTIVITIES.

    ``(a) Reservation.--From the amount appropriated pursuant to the 
authority of section 3204(c)(1) in each fiscal year, the Secretary may 
reserve not more than 5 percent of such amount for national leadership, 
evaluation, and peer review activities.
    ``(b) Method of Funding.--The Secretary may fund the activities 
described in subsection (a) directly or through grants, contracts, and 
cooperative agreements.
    ``(c) Uses of Funds.--
        ``(1) Leadership.--Funds reserved for leadership activities 
    under subsection (a) may be used for--
            ``(A) disseminating information, including lists and 
        descriptions of services available from grant recipients under 
        this part; and
            ``(B) other activities designed to enhance the quality of 
        distance learning activities nationwide.
        ``(2) Evaluation.--Funds reserved for evaluation activities 
    under subsection (a) may be used to conduct independent evaluations 
    of the activities assisted under this part and of distance learning 
    in general, including--
            ``(A) analyses of distance learning efforts, including such 
        efforts that are assisted under this part and such efforts that 
        are not assisted under this part; and
            ``(B) comparisons of the effects, including student 
        outcomes, of different technologies in distance learning 
        efforts.
        ``(3) Peer review.--Funds reserved for peer review activities 
    under subsection (a) may be used for peer review of--
            ``(A) applications for grants under this part; and
            ``(B) activities assisted under this part.

``SEC. 3208. DEFINITIONS.

    ``As used in this part--
        ``(1) the term `educational institution' means an institution 
    of higher education, a local educational agency, or a State 
    educational agency;
        ``(2) the term `instructional programming' means courses of 
    instruction and training courses for elementary and secondary 
    students, teachers, and others, and materials for use in such 
    instruction and training that have been prepared in audio and 
    visual form on tape, disc, film, or live, and presented by means of 
    telecommunications devices; and
        ``(3) the term `public broadcasting entity' has the same 
    meaning given such term in section 397 of the Communications Act of 
    1934.

``SEC. 3209. ADMINISTRATIVE PROVISIONS.

    ``(a) Continuing Eligibility.--
        ``(1) In general.--In order to be eligible to receive a grant 
    under section 3204 for a second 3-year grant period an eligible 
    entity shall demonstrate in the application submitted pursuant to 
    section 3206 that such partnership shall--
            ``(A) continue to provide services in the subject areas and 
        geographic areas assisted with funds received under this part 
        for the previous 5-year grant period; and
            ``(B) use all grant funds received under this part for the 
        second 3-year grant period to provide expanded services by--
                ``(i) increasing the number of students, schools or 
            school districts served by the courses of instruction 
            assisted under this part in the previous fiscal year;
                ``(ii) providing new courses of instruction; and
                ``(iii) serving new populations of underserved 
            individuals, such as children or adults who are 
            disadvantaged, have limited-English proficiency, are 
            individuals with disabilities, are illiterate, or lack 
            secondary school diplomas or their recognized equivalent.
        ``(2) Special rule.--Grant funds received pursuant to paragraph 
    (1) shall be used to supplement and not supplant services provided 
    by the grant recipient under this part in the previous fiscal year.
    ``(b) Federal Activities.--The Secretary may assist grant 
recipients under section 3204 in acquiring satellite time, where 
appropriate, as economically as possible.

``SEC. 3210. OTHER ASSISTANCE.

    ``(a) Special Statewide Network.--
        ``(1) In general.--The Secretary, through the Office of 
    Educational Technology, may provide assistance to a statewide 
    telecommunications network under this subsection if such network--
            ``(A) provides 2-way full motion interactive video and 
        audio communications;
            ``(B) links together public colleges and universities and 
        secondary schools throughout the State; and
            ``(C) meets any other requirements determined appropriate 
        by the Secretary.
        ``(2) State contribution.--A statewide telecommunications 
    network assisted under paragraph (1) shall contribute, either 
    directly or through private contributions, non-Federal funds equal 
    to not less than 50 percent of the cost of such network.
    ``(b) Special Local Network.--
        ``(1) In general.--The Secretary may provide assistance, on a 
    competitive basis, to a local educational agency or consortium 
    thereof to enable such agency or consortium to establish a high 
    technology demonstration program.
        ``(2) Program requirements.--A high technology demonstration 
    program assisted under paragraph (1) shall--
            ``(A) include 2-way full motion interactive video, audio 
        and text communications;
            ``(B) link together elementary and secondary schools, 
        colleges, and universities;
            ``(C) provide parent participation and family programs;
            ``(D) include a staff development program; and
            ``(E) have a significant contribution and participation 
        from business and industry.
        ``(3) Special rule.--Each high technology demonstration program 
    assisted under paragraph (1) shall be of sufficient size and scope 
    to have an effect on meeting the National Education Goals.
        ``(4) Matching requirement.--A local educational agency or 
    consortium receiving a grant under paragraph (1) shall provide, 
    either directly or through private contributions, non-Federal 
    matching funds equal to not less than 50 percent of the amount of 
    the grant.
    ``(c) Telecommunications Programs for Continuing Education.--
        ``(1) Authority.--The Secretary is authorized to award grants, 
    on a competitive basis, to eligible entities to enable such 
    partnerships to develop and operate one or more programs which 
    provide on-line access to educational resources in support of 
    continuing education and curriculum requirements relevant to 
    achieving a secondary school diploma or its recognized equivalent. 
    The program authorized by this section shall be designed to advance 
    adult literacy, secondary school completion and the acquisition of 
    specified competency by the end of the 12th grade, as envisioned by 
    the Goals 2000: Educate America Act.
        ``(2) Application.--Each eligible entity desiring a grant under 
    this section shall submit an application to the Secretary. Each 
    such application shall--
            ``(A) demonstrate that the applicant will use publicly 
        funded or free public telecommunications infrastructure to 
        deliver video, voice and data in an integrated service to 
        support and assist in the acquisition of a secondary school 
        diploma or its recognized equivalent;
            ``(B) assure that the content of the materials to be 
        delivered is consistent with the accreditation requirements of 
        the State for which such materials are used;
            ``(C) incorporate, to the extent feasible, materials 
        developed in the Federal departments and agencies and under 
        appropriate federally funded projects and programs;
            ``(D) assure that the applicant has the technological and 
        substantive experience to carry out the program; and
            ``(E) contain such additional assurances as the Secretary 
        may reasonably require.

                  ``PART C--READY-TO-LEARN TELEVISION

``SEC. 3301. READY-TO-LEARN.

    ``(a) In General.--The Secretary is authorized to award grants to 
or enter into contracts or cooperative agreements with eligible 
entities described in section 3302(b) to develop, produce, and 
distribute educational and instructional video programming for 
preschool and elementary school children and their parents in order to 
facilitate the achievement of the National Education Goals.
    ``(b) Availability.--In making such grants, contracts, or 
cooperative agreements, the Secretary shall ensure that recipients make 
programming widely available with support materials as appropriate to 
young children, their parents, child care workers, and Head Start 
providers to increase the effective use of such programming.

``SEC. 3302. EDUCATIONAL PROGRAMMING.

    ``(a) Awards.--The Secretary shall award grants, contracts, or 
cooperative agreements to eligible entities to--
        ``(1) facilitate the development directly or through contracts 
    with producers of children and family educational television 
    programming, educational programming for preschool and elementary 
    school children, and accompanying support materials and services 
    that promote the effective use of such programming; and
        ``(2) enable such entities to contract with entities (such as 
    public telecommunications entities and those funded under the Star 
    Schools Act) so that programs developed under this section are 
    disseminated and distributed to the widest possible audience 
    appropriate to be served by the programming by the most appropriate 
    distribution technologies.
    ``(b) Eligible Entities.--To be eligible to receive a grant, 
contract, or cooperative agreement under subsection (a), an entity 
shall be--
        ``(1) a nonprofit entity (including a public telecommunications 
    entity) able to demonstrate a capacity for the development and 
    distribution of educational and instructional television 
    programming of high quality for preschool and elementary school 
    children; and
        ``(2) able to demonstrate a capacity to contract with the 
    producers of children's television programming for the purpose of 
    developing educational television programming of high quality for 
    preschool and elementary school children.
    ``(c) Cultural Experiences.--Programming developed under this 
section shall reflect the recognition of diverse cultural experiences 
and the needs and experiences of both boys and girls in engaging and 
preparing young children for schooling.

``SEC. 3303. DUTIES OF SECRETARY.

    ``The Secretary is authorized--
        ``(1) to establish and administer a Special Projects of 
    National Significance program to award grants, contracts, or 
    cooperative agreements to public and nonprofit private entities, or 
    local public television stations or such public television stations 
    that are part of a consortium with one or more State educational 
    agencies, local educational agencies, local schools, institutions 
    of higher education, or community-based organizations of 
    demonstrated effectiveness, for the purpose of--
            ``(A) addressing the learning needs of young children in 
        limited English proficient households, and developing 
        appropriate educational and instructional television 
        programming to foster the school readiness of such children;
            ``(B) developing programming and support materials to 
        increase family literacy skills among parents to assist parents 
        in teaching their children and utilizing educational television 
        programming to promote school readiness; and
            ``(C) identifying, supporting, and enhancing the effective 
        use and outreach of innovative programs that promote school 
        readiness;
        ``(2) to establish within the Department a clearinghouse to 
    compile and provide information, referrals and model program 
    materials and programming obtained or developed under this part to 
    parents, child care providers, and other appropriate individuals or 
    entities to assist such individuals and entities in accessing 
    programs and projects under this part; and
        ``(3) to develop and disseminate training materials, 
    including--
            ``(A) interactive programs and programs adaptable to 
        distance learning technologies that are designed to enhance 
        knowledge of children's social and cognitive skill development 
        and positive adult-child interactions; and
            ``(B) support materials to promote the effective use of 
        materials developed under paragraph (2);
    among parents, Head Start providers, in-home and center based day 
    care providers, early childhood development personnel, and 
    elementary school teachers, public libraries, and after school 
    program personnel caring for preschool and elementary school 
    children;
        ``(4) coordinate activities with the Secretary of Health and 
    Human Services in order to--
            ``(A) maximize the utilization of quality educational 
        programming by preschool and elementary school children, and 
        make such programming widely available to federally funded 
        programs serving such populations; and
            ``(B) provide information to recipients of funds under 
        Federal programs that have major training components for early 
        childhood development, including Head Start, Even Start, and 
        State training activities funded under the Child Care 
        Development Block Grant Act of 1990 regarding the availability 
        and utilization of materials developed under paragraph (3) to 
        enhance parent and child care provider skills in early 
        childhood development and education.

``SEC. 3304. APPLICATIONS.

    ``Each eligible entity desiring a grant, contract, or cooperative 
agreement under section 3301 or 3303 shall submit an application to the 
Secretary at such time, in such manner, and accompanied by such 
information as the Secretary may reasonably require.

``SEC. 3305. REPORTS AND EVALUATION.

    ``(a) Annual Report to Secretary.--An entity receiving funds under 
section 3301 shall prepare and submit to the Secretary an annual report 
which contains such information as the Secretary may require. At a 
minimum, the report shall describe the program activities undertaken 
with funds received under this section, including--
        ``(1) the programming that has been developed directly or 
    indirectly by the entity, and the target population of the programs 
    developed;
        ``(2) the support materials that have been developed to 
    accompany the programming, and the method by which such materials 
    are distributed to consumers and users of the programming;
        ``(3) the means by which programming developed under this 
    section has been distributed, including the distance learning 
    technologies that have been utilized to make programming available 
    and the geographic distribution achieved through such technologies; 
    and
        ``(4) the initiatives undertaken by the entity to develop 
    public-private partnerships to secure non-Federal support for the 
    development and distribution and broadcast of educational and 
    instructional programming.
    ``(b) Report to Congress.--The Secretary shall prepare and submit 
to the relevant committees of Congress a biannual report which 
includes--
        ``(1) a summary of the information made available under section 
    3302(a); and
        ``(2) a description of the training materials made available 
    under section 3303(3), the manner in which outreach has been 
    conducted to inform parents and child care providers of the 
    availability of such materials, and the manner in which such 
    materials have been distributed in accordance with such section.

``SEC. 3306. ADMINISTRATIVE COSTS.

    ``With respect to the implementation of section 3302, entities 
receiving a grant, contract, or cooperative agreement from the 
Secretary may use not more than 5 percent of the amounts received under 
such section for the normal and customary expenses of administering the 
grant, contract, or cooperative agreement.

``SEC. 3307. DEFINITION.

    ``For the purposes of this part, the term `distance learning' means 
the transmission of educational or instructional programming to 
geographically dispersed individuals and groups via telecommunications.

``SEC. 3308. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this part, $30,000,000 for fiscal year 1995, and such sums as may 
be necessary for each of the four succeeding fiscal years. Not less 
than 60 percent of the amounts appropriated under this subsection for 
each fiscal year shall be used to carry out section 3302.
    ``(b) Special Projects.--Of the amount appropriated under 
subsection (b) for each fiscal year, at least 10 percent of such amount 
shall be used for each such fiscal year for activities under section 
3303(1)(C).

   ``PART D--TELECOMMUNICATIONS DEMONSTRATION PROJECT FOR MATHEMATICS

``SEC. 3401. PROJECT AUTHORIZED.

    ``The Secretary is authorized to make grants to a nonprofit 
telecommunications entity, or partnership of such entities, for the 
purpose of carrying out a national telecommunications-based 
demonstration project to improve the teaching of mathematics. The 
demonstration project authorized by this part shall be designed to 
assist elementary and secondary school teachers in preparing all 
students for achieving State content standards.

``SEC. 3402. APPLICATION REQUIRED.

    ``(a) In General.--Each nonprofit telecommunications entity, or 
partnership of such entities, desiring a grant under this part shall 
submit an application to the Secretary. Each such application shall--
        ``(1) demonstrate that the applicant will use the existing 
    publicly funded telecommunications infrastructure to deliver video, 
    voice and data in an integrated service to train teachers in the 
    use of new standards-based curricula materials and learning 
    technologies;
        ``(2) assure that the project for which assistance is sought 
    will be conducted in cooperation with appropriate State educational 
    agencies, local educational agencies, State or local nonprofit 
    public telecommunications entities, and a national mathematics 
    education professional association that has developed content 
    standards;
        ``(3) assure that a significant portion of the benefits 
    available for elementary and secondary schools from the project for 
    which assistance 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
        ``(4) contain such additional assurances as the Secretary may 
    reasonably require.
    ``(b) Approval of Applications; Number of Demonstration Sites.--In 
approving applications under this section, the Secretary shall assure 
that the demonstration project authorized by this part is conducted at 
elementary and secondary school sites in at least 15 States.

``SEC. 3403. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part, 
$5,000,000 for the fiscal year 1995, and such sums as may be necessary 
for each of the four succeeding fiscal years.

     ``PART E--ELEMENTARY MATHEMATICS AND SCIENCE EQUIPMENT PROGRAM

``SEC. 3501. SHORT TITLE.

    ``This part may be cited as the `Elementary Mathematics and Science 
Equipment Act'.

``SEC. 3502. STATEMENT OF PURPOSE.

    ``It is the purpose of this part to raise the quality of 
instruction in mathematics and science in the Nation's elementary 
schools by providing equipment and materials necessary for hands-on 
instruction through assistance to State and local educational agencies.

``SEC. 3503. PROGRAM AUTHORIZED.

    ``The Secretary is authorized to make allotments to State 
educational agencies under section 3504 to enable such agencies to 
award grants to local educational agencies for the purpose of providing 
equipment and materials to elementary schools to improve mathematics 
and science education in such schools.

``SEC. 3504. ALLOTMENTS OF FUNDS.

    ``(a) In General.--From the amount appropriated under section 3509 
for any fiscal year, the Secretary shall reserve--
        ``(1) not more than one-half of 1 percent for allotment among 
    Guam, American Samoa, the Virgin Islands, and the Northern Mariana 
    Islands according to their respective needs for assistance under 
    this part; and
        ``(2) one-half of 1 percent for programs for Indian students 
    served by schools funded by the Secretary of the Interior which are 
    consistent with the purposes of this part.
    ``(b) Allotment.--
        ``(1) In general.--The remainder of the amount so appropriated 
    (after meeting requirements in subsection (a)) shall be allotted 
    among State educational agencies so that--
            ``(A) one-half of such remainder shall be distributed by 
        allotting to each State educational agency an amount which 
        bears the same ratio to such one-half 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; and
            ``(B) one-half of such remainder shall be distributed 
        according to each State's share of allocations under part A of 
        title I.
        ``(2) Minimum.--Except as provided in paragraph (3), no State 
    educational agency shall receive an allotment under this subsection 
    for any fiscal year in an amount that is--
            ``(A) less than one-half of 1 percent of the amount made 
        available under this subsection for such fiscal year; or
            ``(B) less than the amount allotted to such State for 
        fiscal year 1988 under title II of the Education for Economic 
        Security Act.
        ``(3) Ratable reductions.--(A) If the sums made available under 
    this part for any fiscal year are insufficient to pay the full 
    amounts that all State educational agencies are eligible to receive 
    under paragraph (2)(B) for such year, the Secretary shall ratably 
    reduce the allotment to such agencies for such year.
        ``(B) If additional funds become available for making payments 
    under paragraph (2)(B) for such fiscal year, allotments that were 
    reduced under subparagraph (A) shall be increased on the same basis 
    as such allotments were reduced.
    ``(c) Reallotment of Unused Funds.--The amount of any State 
educational agency's allotment under subsection (b) for any fiscal year 
to carry out this part which the Secretary determines will not be 
required for that fiscal year to carry out this part shall be available 
for reallotment from time to time, on such dates during that year as 
the Secretary may determine, to other State educational agencies in 
proportion to the original allotments to those State educational 
agencies under subsection (b) for that year but with such proportionate 
amount for any of those other State educational agencies being reduced 
to the extent it exceeds the sum the Secretary estimates that the State 
educational agency needs and will be able to use for that year, and the 
total of those reductions shall be similarly reallotted among the State 
educational agencies whose proportionate amounts were not so reduced. 
Any amounts reallotted to a State educational agency under this 
subsection during a year shall be deemed a part of the State 
educational agency's allotment under subsection (b) for that year.
    ``(d) Definition.--For the purposes of this part the term `State' 
means each of the 50 States, the District of Columbia, and the 
Commonwealth of Puerto Rico.
    ``(e) Data.--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.

``SEC. 3505. STATE APPLICATION.

    ``(a) Application.--Each State educational agency desiring to 
receive an allotment under this part shall file an application with the 
Secretary which covers a period of 5 fiscal years. Such application 
shall be filed at such time, in such manner, and containing or 
accompanied by such information as the Secretary may reasonably 
require.
    ``(b) Contents of Application.--Each application described in 
subsection (a) shall--
        ``(1) provide assurances that--
            ``(A) the State educational agency shall use the allotment 
        provided under this part to award grants to local educational 
        agencies within the State to enable such local educational 
        agencies to provide assistance to schools served by such agency 
        to carry out the purpose of this part;
            ``(B) the State educational agency will provide such fiscal 
        control and funds accounting as the Secretary may require;
            ``(C) every public elementary school in the State is 
        eligible to receive assistance under this part once over the 5-
        year duration of the program assisted under this part;
            ``(D) funds provided under this part will supplement, not 
        supplant, State and local funds made available for activities 
        authorized under this part;
            ``(E) during the 5-year period described in the 
        application, the State educational agency will evaluate its 
        standards and programs for teacher preparation and inservice 
        professional development for elementary mathematics and 
        science;
            ``(F) the State educational agency will take into account 
        the needs for greater access to and participation in 
        mathematics and science by students and teachers from 
        historically underrepresented groups, including females, 
        minorities, individuals with limited English proficiency, the 
        economically disadvantaged, and individuals with disabilities; 
        and
            ``(G) that the needs of teachers and students in areas with 
        high concentrations of low-income students and sparsely 
        populated areas will be given priority in awarding assistance 
        under this part;
        ``(2) provide, if appropriate, a description of how funds paid 
    under this part will be coordinated with State and local funds and 
    other Federal resources, particularly with respect to programs for 
    the professional development and inservice training of elementary 
    school teachers in science and mathematics; and
        ``(3) describe procedures--
            ``(A) for submitting applications for programs described in 
        section 3506 for distribution of assistance under this part 
        within the State; and
            ``(B) for approval of applications by the State educational 
        agency, including appropriate procedures to assure that such 
        agency will not disapprove an application without notice and 
        opportunity for a hearing.
    ``(c) State Administration.--Not more than 5 percent of the funds 
allotted to each State educational agency under this part shall be used 
for the administrative costs of such agency associated with carrying 
out the program assisted under this part.

``SEC. 3506. LOCAL APPLICATION.

    ``(a) Application.--A local educational agency that desires to 
receive a grant under this part shall submit an application to the 
State educational agency. Each such application shall contain 
assurances that each school served by the local educational agency 
shall be eligible for assistance under this part only once.
    ``(b) Contents of Application.--Each application described in 
subsection (a) shall--
        ``(1) describe how the local educational agency plans to set 
    priorities on the use and distribution among schools of grant funds 
    received under this part to meet the purpose of this part;
        ``(2) include assurances that the local educational agency has 
    made every effort to match on a dollar-for-dollar basis from 
    private or public sources the funds received under this part, 
    except that no such application shall be penalized or denied 
    assistance under this part based on failure to provide such 
    matching funds;
        ``(3) describe, if applicable, how funds under this part will 
    be coordinated with State, local, and other Federal resources, 
    especially with respect to programs for the professional 
    development and inservice training of elementary school teachers in 
    science and mathematics; and
        ``(4) describe the process which will be used to determine 
    different levels of assistance to be awarded to schools with 
    different needs.
    ``(c) Priority.--In awarding grants under this part, the State 
educational agency shall give priority to applications that--
        ``(1) assign highest priority to providing assistance to 
    schools which--
            ``(A) are most seriously underequipped; or
            ``(B) serve large numbers or percentages of economically 
        disadvantaged students;
        ``(2) are attentive to the needs of underrepresented groups in 
    science and mathematics;
        ``(3) demonstrate how science and mathematics equipment will be 
    part of a comprehensive plan of curriculum planning or 
    implementation and teacher training supporting hands-on laboratory 
    activities; and
        ``(4) assign priority to providing equipment and materials for 
    students in grades 1 through 6.

``SEC. 3507. PROGRAM REQUIREMENTS.

    ``(a) Coordination.--Each State educational agency receiving an 
allotment under this part shall--
        ``(1) disseminate information to school districts and schools, 
    including private nonprofit elementary schools, regarding the 
    program assisted under this part;
        ``(2) evaluate applications of local educational agencies;
        ``(3) award grants to local educational agencies based on the 
    priorities described in section 3506(c); and
        ``(4) evaluate local educational agencies' end-of-year 
    summaries and submit such evaluation to the Secretary.
    ``(b) Limitations on Use of Funds.--
        ``(1) In general.--Except as provided in paragraph (2), grant 
    funds and matching funds under this part only shall be used to 
    purchase science equipment, science materials, or mathematical 
    manipulative materials and shall not be used for computers, 
    computer peripherals, software, textbooks, or staff development 
    costs.
        ``(2) Capital improvements.--Grant funds under this part may 
    not be used for capital improvements. Not more than 50 percent of 
    any matching funds provided by the local educational agency may be 
    used for capital improvements of classroom science facilities to 
    support the hands-on instruction that this part is intended to 
    support, such as the installation of electrical outlets, plumbing, 
    lab tables or counters, or ventilation mechanisms.

``SEC. 3508. FEDERAL ADMINISTRATION.

    ``(a) Technical Assistance and Evaluation Procedures.--The 
Secretary shall provide technical assistance and, in consultation with 
State and local representatives of the program assisted under this 
part, shall develop procedures for State and local evaluations of the 
programs assisted under this part.
    ``(b) Report.--The Secretary shall report to the Congress each year 
on the program assisted under this part in accordance with section 
10701.

``SEC. 3509. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $30,000,000 for fiscal 
year 1995, and such sums as may be necessary for each of the four 
succeeding fiscal years, to carry out this part.

   ``PART F--ELEMENTARY AND SECONDARY SCHOOL LIBRARY MEDIA RESOURCES 
                                PROGRAM

``SEC. 3601. PROGRAM AUTHORIZED.

    ``The Secretary shall award grants or make allocations in 
accordance with section 3602 for the acquisition of school library 
media resources for the use of students, library media specialists, and 
teachers in elementary and secondary schools in accordance with this 
part.

``SEC. 3602. ALLOCATION TO STATES.

    ``(a) From the amount appropriated pursuant to section 3605 in each 
fiscal year, the Secretary shall award funds to each State having an 
approved plan under section 3603 as follows:
        ``(1) Amounts below $50,000,000.--If the amount made available 
    under subsection (a) for a fiscal year is less than $50,000,000, 
    then the Secretary shall award grants to States, on a competitive 
    basis, taking into account such factors as age and condition of 
    existing school library media collections and the relative economic 
    need of the students to be served.
        ``(2) Amounts equal to or exceeding $50,000,000.--If the amount 
    made available under subsection (a) for a fiscal year equals or 
    exceeds $50,000,000, then the Secretary shall allocate to each 
    State an amount which bears the same relationship to such amount as 
    the amount such State received under title II for such year bears 
    to the amount all States received under such title for such year.

``SEC. 3603. STATE PLANS.

    ``(a) In General.--In order for a State to receive a grant or an 
allocation of funds under this part for any fiscal year, such State 
shall have in effect for such fiscal year a State plan. Such plan 
shall--
        ``(1) designate the State educational agency as the State 
    agency responsible for the administration of the program assisted 
    under this part;
        ``(2) set forth a program under which funds paid to the State 
    in accordance with section 3602 will be expended solely for--
            ``(A) acquisition of school library media resources, 
        including books and foreign language resources, for the use of 
        students, school library media specialists, and teachers in 
        elementary and secondary schools in the United States; and
            ``(B) administration of the State plan, including 
        development and revision of standards, relating to school 
        library media resources, except that the amount used for 
        administration of the State plan in any fiscal year shall not 
        exceed three percent of the amount available to such State 
        under section 3602 for such fiscal year; and
        ``(3) set forth criteria to be used in allotting funds for 
    school library media resources among the local educational agencies 
    of the State, which allotment shall take into consideration the 
    relative need of the students, school media specialists, and 
    teachers to be served.
    ``(b) Plan Submission.--The State plan may be submitted as part of 
a consolidated application under section 14302.

``SEC. 3604. DISTRIBUTION OF ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

    ``From the funds allocated to a State under section 3602(2) in each 
fiscal year, such State shall distribute not less than 97 percent of 
such funds in such year to local educational agencies within such State 
according to the relative enrollment of students in elementary and 
secondary schools within the school districts of such State, adjusted 
to provide higher per pupil allotments to local educational agencies 
that have the greatest number or percentages of students whose 
education imposes a higher than average cost per child, such as those 
students--
        ``(1) living in areas with high concentrations of low-income 
    families;
        ``(2) from low-income families; and
        ``(3) living in sparsely populated areas.

``SEC. 3605. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$200,000,000 for fiscal year 1995 and such sums as may be necessary for 
each of the four succeeding fiscal years.

         ``TITLE IV--SAFE AND DRUG-FREE SCHOOLS AND COMMUNITIES

``SEC. 4001. SHORT TITLE.

    ``This title may be cited as the `Safe and Drug-Free Schools and 
Communities Act of 1994'.

``SEC. 4002. FINDINGS.

    ``The Congress finds as follows:
        ``(1) The seventh National Education Goal provides that by the 
    year 2000, all schools in America will be free of drugs and 
    violence and the unauthorized presence of firearms and alcohol, and 
    offer a disciplined environment that is conducive to learning.
        ``(2) The widespread illegal use of alcohol and other drugs 
    among the Nation's secondary school students, and increasingly by 
    students in elementary schools as well, constitutes a grave threat 
    to such students' physical and mental well-being, and significantly 
    impedes the learning process. For example, data show that students 
    who drink tend to receive lower grades and are more likely to miss 
    school because of illness than students who do not drink.
        ``(3) Our Nation's schools and communities are increasingly 
    plagued by violence and crime. Approximately 3,000,000 thefts and 
    violent crimes occur in or near our Nation's schools every year, 
    the equivalent of more than 16,000 incidents per school day.
        ``(4) Violence that is linked to prejudice and intolerance 
    victimizes entire communities leading to more violence and 
    discrimination.
        ``(5) The tragic consequences of violence and the illegal use 
    of alcohol and drugs by students are felt not only by students and 
    such students' families, but by such students' communities and the 
    Nation, which can ill afford to lose such students' skills, 
    talents, and vitality.
        ``(6) While use of illegal drugs is a serious problem among a 
    minority of teenagers, alcohol use is far more widespread. The 
    proportion of high school students using alcohol, though lower than 
    a decade ago, remains unacceptably high. By the 8th grade, 70 
    percent of youth report having tried alcohol and by the 12th grade, 
    about 88 percent have used alcohol. Alcohol use by young people can 
    and does have adverse consequences for users, their families, 
    communities, schools, and colleges.
        ``(7) Alcohol and tobacco are widely used by young people. Such 
    use can, and does, have adverse consequences for young people, 
    their families, communities, schools, and colleges. Drug prevention 
    programs for youth that address only controlled drugs send an 
    erroneous message that alcohol and tobacco do not present 
    significant problems, or that society is willing to overlook their 
    use. To be credible, messages opposing illegal drug use by youth 
    should address alcohol and tobacco as well.
        ``(8) Every day approximately 3,000 children start smoking. 
    Thirty percent of all secondary school seniors are smokers. Half of 
    all new smokers begin smoking before the age of 14, 90 percent of 
    such smokers begin before the age of 21, and the average age of the 
    first use of smokeless tobacco is under the age of 10. Use of 
    tobacco products has been linked to serious health problems. Drug 
    education and prevention programs that include tobacco have been 
    effective in reducing teenage use of tobacco.
        ``(9) Drug and violence prevention programs are essential 
    components of a comprehensive strategy to promote school safety and 
    to reduce the demand for and use of drugs throughout the Nation. 
    Schools and local organizations in communities throughout the 
    Nation have a special responsibility to work together to combat the 
    growing epidemic of violence and illegal drug use and should 
    measure the success of their programs against clearly defined goals 
    and objectives.
        ``(10) Students must take greater responsibility for their own 
    well-being, health, and safety if schools and communities are to 
    achieve the goals of providing a safe, disciplined, and drug-free 
    learning environment.

``SEC. 4003. PURPOSE.

    ``The purpose of this title is to support programs to meet the 
seventh National Education Goal by preventing violence in and around 
schools and by strengthening programs that prevent the illegal use of 
alcohol, tobacco, and drugs, involve parents, and are coordinated with 
related Federal, State, and community efforts and resources, through 
the provision of Federal assistance to--
        ``(1) States for grants to local educational agencies and 
    educational service agencies and consortia of such agencies to 
    establish, operate, and improve local programs of school drug and 
    violence prevention, early intervention, rehabilitation referral, 
    and education in elementary and secondary schools (including 
    intermediate and junior high schools);
        ``(2) States for grants to, and contracts with, community-based 
    organizations and other public and private nonprofit agencies and 
    organizations for programs of drug and violence prevention, early 
    intervention, rehabilitation referral, and education;
        ``(3) States for development, training, technical assistance, 
    and coordination activities;
        ``(4) public and private nonprofit organizations to conduct 
    training, demonstrations, and evaluation, and to provide 
    supplementary services for the prevention of drug use and violence 
    among students and youth; and
        ``(5) institutions of higher education to establish, operate, 
    expand, and improve programs of school drug and violence 
    prevention, education, and rehabilitation referral for students 
    enrolled in colleges and universities.

``SEC. 4004. FUNDING.

    ``There are authorized to be appropriated--
        ``(1) $630,000,000 for fiscal year 1995, and such sums as may 
    be necessary for each of the four succeeding fiscal years, for 
    State grants under subpart 1; and
        ``(2) $25,000,000 for fiscal year 1995, and such sums as may be 
    necessary for each of the four succeeding fiscal years, for 
    national programs under subpart 2.

    ``PART A--STATE GRANTS FOR DRUG AND VIOLENCE PREVENTION PROGRAMS

  ``Subpart 1--State Grants for Drug and Violence Prevention Programs

``SEC. 4011. RESERVATIONS AND ALLOTMENTS.

    ``(a) Reservations.--From the amount made available under section 
4004(a) to carry out this subpart for each fiscal year, the Secretary--
        ``(1) shall reserve 1 percent of such amount for grants under 
    this subpart to Guam, American Samoa, the Virgin Islands, and the 
    Commonwealth of the Northern Mariana Islands, to be allotted in 
    accordance with the Secretary's determination of their respective 
    needs;
        ``(2) shall reserve 1 percent of such amount for the Secretary 
    of the Interior to carry out programs under this part for Indian 
    youth;
        ``(3) may reserve not more than $1,000,000 for the national 
    impact evaluation required by section 4117(a); and
        ``(4) shall reserve 0.2 percent of such amount for programs for 
    Native Hawaiians under section 4118.
    ``(b) State Allotments.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    Secretary shall, for each fiscal year, allocate among the States--
            ``(A) one-half of the remainder not reserved under 
        subsection (a) according to the ratio between the school-aged 
        population of each State and the school-aged population of all 
        the States; and
            ``(B) one-half of such remainder according to the ratio 
        between the amount each State received under part A of title I 
        for the preceding year (or, for fiscal year 1995 only, sections 
        1005 and 1006 of this Act as such sections were in existence on 
        the day preceding the date of enactment of the Improving 
        America's Schools Act of 1994) and the sum of such amounts 
        received by all the States.
        ``(2) Minimum.--For any fiscal year, no State shall be allotted 
    under this subsection an amount that is less than one-half of 1 
    percent of the total amount allotted to all the States under this 
    subsection.
        ``(3) Reallotment.--The Secretary may reallot any amount of any 
    allotment to a State if the Secretary determines that the State 
    will be unable to use such amount within two years of such 
    allotment. Such reallotments shall be made on the same basis as 
    allotments are made under paragraph (1).
        ``(4) Definitions.--For the purpose of this subsection--
            ``(A) the term `State' means each of the 50 States, the 
        District of Columbia, and the Commonwealth of Puerto Rico; and
            ``(B) the term `local educational agency' includes 
        educational service agencies and consortia of such agencies.

``SEC. 4112. STATE APPLICATIONS.

    ``(a) In General.--In order to receive an allotment under section 
4111 for any fiscal year, a State shall submit to the Secretary, at 
such time as the Secretary may require, an application that--
        ``(1) describes how funds under this subpart will be 
    coordinated with programs under this Act, the Goals 2000: Educate 
    America Act, and other Acts, as appropriate, in accordance with the 
    provisions of section 14306;
        ``(2) contains the results of the State's needs assessment for 
    drug and violence prevention programs, which shall be based on the 
    results of on-going State evaluation activities, including data on 
    the prevalence of drug use and violence by youth in schools and 
    communities;
        ``(3) contains assurances that the sections of the application 
    concerning the funds provided to the chief executive officer and 
    the State educational agency were developed separately by such 
    officer or agency, respectively, but in consultation and 
    coordination with appropriate State officials and others, including 
    the chief State school officer, the chief executive officer, the 
    head of the State alcohol and drug abuse agency, the heads of the 
    State health and mental health agencies, the head of the State 
    criminal justice planning agency, the head of the State child 
    welfare agency, the head of the State board of education, or their 
    designees, and representatives of parents, students, and community-
    based organizations;
        ``(4) contains an assurance that the State will cooperate with, 
    and assist, the Secretary in conducting a national impact 
    evaluation of programs required by section 4117(a); and
        ``(5) includes any other information the Secretary may require.
    ``(b) State Educational Agency Funds.--A State's application under 
this section shall also contain a comprehensive plan for the use of 
funds under section 4113(a) by the State educational agency that 
includes--
        ``(1) a statement of the State educational agency's measurable 
    goals and objectives for drug and violence prevention and a 
    description of the procedures such agency will use for assessing 
    and publicly reporting progress toward meeting those goals and 
    objectives;
        ``(2) a plan for monitoring the implementation of, and 
    providing technical assistance regarding, the drug and violence 
    prevention programs conducted by local educational agencies in 
    accordance with section 4116;
        ``(3) a description of how the State educational agency will 
    use funds under section 4113(b);
        ``(4) a description of how the State educational agency will 
    coordinate such agency's activities under this subpart with the 
    chief executive officer's drug and violence prevention programs 
    under this subpart and with the prevention efforts of other State 
    agencies;
        ``(5) an explanation of the criteria the State educational 
    agency will use to identify which local educational agencies 
    receive supplemental funds under section 4113(d)(2)(A)(ii) and how 
    the supplemental funds will be allocated among such local 
    educational agencies; and
        ``(6) a description of the procedures the State educational 
    agency will use to review applications from local educational 
    agencies under section 4115.
    ``(c) Governor's Funds.--A State's application under this section 
shall also contain a comprehensive plan for the use of funds under 
section 4114(a) by the chief executive officer that includes--
        ``(1) a statement of the chief executive officer's measurable 
    goals and objectives for drug and violence prevention and a 
    description of the procedures to be used for assessing and publicly 
    reporting progress toward meeting such goals and objectives;
        ``(2) a description of how the chief executive officer will 
    coordinate such officer's activities under this part with the State 
    educational agency and other State agencies and organizations 
    involved with drug and violence prevention efforts;
        ``(3) a description of how funds reserved under section 4114(a) 
    will be used so as not to duplicate the efforts of the State 
    educational agency and local educational agencies with regard to 
    the provision of school-based prevention efforts and services and 
    how those funds will be used to serve populations not normally 
    served by the State educational agency, such as school dropouts and 
    youth in detention centers;
        ``(4) a description of how the chief executive officer will 
    award funds under section 4114(a) and a plan for monitoring the 
    performance of, and providing technical assistance to, recipients 
    of such funds;
        ``(5) a description of the special outreach activities that 
    will be carried out to maximize the participation of community-
    based organizations of demonstrated effectiveness which provide 
    services in low-income communities; and
        ``(6) a description of how funds will be used to support 
    community-wide comprehensive drug and violence prevention planning.
    ``(d) Peer Review.--The Secretary shall use a peer review process 
in reviewing State applications under this section.
    ``(e) Interim Application.--Notwithstanding any other provisions of 
this section, a State may submit for fiscal year 1995 a one-year 
interim application and plan for the use of funds under this subpart 
that are consistent with the requirements of this section and contain 
such information as the Secretary may specify in regulations. The 
purpose of such interim application and plan shall be to afford the 
State the opportunity to fully develop and review such State's 
application and comprehensive plan otherwise required by this section. 
A State may not receive a grant under this subpart for a fiscal year 
subsequent to fiscal year 1995 unless the Secretary has approved such 
State's application and comprehensive plan in accordance with this 
subpart.

``SEC. 4113. STATE AND LOCAL EDUCATIONAL AGENCY PROGRAMS.

    ``(a) Use of Funds.--
        ``(1) In general.--Except as provided in paragraph (2), an 
    amount equal to 80 percent of the total amount allocated to a State 
    under section 4111 for each fiscal year shall be used by the State 
    educational agency and its local educational agencies for drug and 
    violence prevention activities in accordance with this section.
        ``(2) Exception.--(A) If a State has, on or before January 1, 
    1994, established an independent State agency for the purpose of 
    administering all of the funds described in section 5121 of this 
    Act (as such section was in effect on the day preceding the date of 
    the enactment of the Improving America's Schools Act of 1994), 
    then--
            ``(i) an amount equal to 80 percent of the total amount 
        allocated to such State under section 4111 for each fiscal year 
        shall be used by the State educational agency and its local 
        educational agencies for drug and violence prevention 
        activities in accordance with this section; and
            ``(ii) an amount equal to 20 percent of such total amount 
        shall be used by such independent State agency for drug and 
        violence prevention activities in accordance with this section.
        ``(B) Not more than 5 percent of the amount reserved under 
    subparagraph (A)(ii) may be used for administrative costs of the 
    independent State agency incurred in carrying out the activities 
    described in such subparagraph.
        ``(C) For purposes of this paragraph, the term `independent 
    State agency' means an independent agency with a board of directors 
    or a cabinet level agency whose chief executive officer is 
    appointed by the chief executive officer of the State and confirmed 
    with the advice and consent of the senate of such State.
    ``(b) State Level Programs.--
        ``(1) In general.--A State educational agency shall use not 
    more than 5 percent of the amount available under subsection (a) 
    for activities such as--
            ``(A) training and technical assistance concerning drug and 
        violence prevention for local educational agencies and 
        educational service agencies, including teachers, 
        administrators, coaches and athletic directors, other staff, 
        parents, students, community leaders, health service providers, 
        local law enforcement officials, and judicial officials;
            ``(B) the development, identification, dissemination, and 
        evaluation of the most readily available, accurate, and up-to-
        date curriculum materials (including videotapes, software, and 
        other technology-based learning resources), for consideration 
        by local educational agencies;
            ``(C) making available to local educational agencies cost 
        effective programs for youth violence and drug abuse 
        prevention;
            ``(D) demonstration projects in drug and violence 
        prevention;
            ``(E) training, technical assistance, and demonstration 
        projects to address violence associated with prejudice and 
        intolerance;
            ``(F) financial assistance to enhance resources available 
        for drug and violence prevention in areas serving large numbers 
        of economically disadvantaged children or sparsely populated 
        areas, or to meet other special needs consistent with the 
        purposes of this subpart; and
            ``(G) the evaluation of activities carried out within the 
        State under this part.
        ``(2) Special rule.--A State educational agency may carry out 
    activities under this subsection directly, or through grants or 
    contracts.
    ``(c) State Administration.--A State educational agency may use not 
more than 4 percent of the amount reserved under subsection (a) for the 
administrative costs of carrying out its responsibilities under this 
part.
    ``(d) Local Educational Agency Programs.--
        ``(1) In general.--A State educational agency shall distribute 
    not less than 91 percent of the amount made available under 
    subsection (a) for each fiscal year to local educational agencies 
    in accordance with this subsection.
        ``(2) Distribution.--(A) Of the amount distributed under 
    paragraph (1), a State educational agency shall distribute--
            ``(i) 70 percent of such amount to local educational 
        agencies, based on the relative enrollments in public and 
        private nonprofit elementary and secondary schools within the 
        boundaries of such agencies; and
            ``(ii) 30 percent of such amount to local educational 
        agencies that the State educational agency determines have the 
        greatest need for additional funds to carry out drug and 
        violence prevention programs authorized by this subpart.
        ``(B) Where appropriate and to the extent consistent with the 
    needs assessment conducted by the State, not less than 25 percent 
    of the amount distributed under subparagraph (A)(ii) for a fiscal 
    year shall be distributed to local educational agencies located in 
    rural and urban areas.
        ``(C)(i) A State educational agency shall distribute funds 
    under subparagraph (A)(ii) to not more than 10 percent of the local 
    educational agencies in the State, or five such agencies, whichever 
    is greater.
        ``(ii) In determining which local educational agencies have the 
    greatest need for additional funds, the State educational agency 
    shall consider objective data such as--
            ``(I) high rates of alcohol or drug use among youth;
            ``(II) high rates of victimization of youth by violence and 
        crime;
            ``(III) high rates of arrests and convictions of youth for 
        violent or drug- or alcohol-related crime;
            ``(IV) the extent of illegal gang activity;
            ``(V) high incidence of violence associated with prejudice 
        and intolerance;
            ``(VI) high rates of referrals of youths to drug and 
        alcohol abuse treatment and rehabilitation programs;
            ``(VII) high rates of referrals of youths to juvenile 
        court;
            ``(VIII) high rates of expulsions and suspensions of 
        students from schools; and
            ``(IX) high rates of reported cases of child abuse and 
        domestic violence.
    ``(e) Reallocation of Funds.--If a local educational agency chooses 
not to apply to receive the amount allocated to such agency under 
subsection (d), or if such agency's application under section 4115 is 
disapproved by the State educational agency, the State educational 
agency shall reallocate such amount to one or more of the local 
educational agencies determined by the State educational agency under 
subsection (d)(2)(C)(ii) to have the greatest need for additional 
funds.
    ``(f) Return of Funds to State Educational Agency; Reallocation.--
        ``(1) Return.--Except as provided in paragraph (2), upon the 
    expiration of the 1-year period beginning on the date that a local 
    educational agency or educational service agency under this title 
    receives its allocation under this title--
            ``(A) such agency shall return to the State educational 
        agency any funds from such allocation that remain unobligated; 
        and
            ``(B) the State educational agency shall reallocate any 
        such amount to local educational agencies or educational 
        service agencies that have plans for using such amount for 
        programs or activities on a timely basis.
        ``(2) Reallocation.--In any fiscal year, a local educational 
    agency, may retain for obligation in the succeeding fiscal year--
            ``(A) an amount equal to not more than 25 percent of the 
        allocation it receives under this title for such fiscal year; 
        or
            ``(B) upon a demonstration of good cause by such agency or 
        consortium, a greater amount approved by the State educational 
        agency.

``SEC. 4114. GOVERNOR'S PROGRAMS.

    ``(a) Use of Funds.--
        ``(1) In general.--An amount equal to 20 percent of the total 
    amount allocated to a State under section 4111(1) for each fiscal 
    year shall be used by the chief executive officer of such State for 
    drug and violence prevention programs and activities in accordance 
    with this section.
        ``(2) Law enforcement education partnerships.--A chief 
    executive officer shall use not less than 10 percent of the 20 
    percent of the total amount described in paragraph (1) for each 
    fiscal year for law enforcement education partnerships in 
    accordance with subsection (d).
        ``(3) Administrative costs.--A chief executive officer may use 
    not more than 5 percent of the 20 percent of the total amount 
    described in paragraph (1) for the administrative costs incurred in 
    carrying out the duties of such officer under this section.
    ``(b) Programs Authorized.--
        ``(1) In general.--A chief executive officer shall use funds 
    made available under subsection (a)(1) for grants to or contracts 
    with parent groups, community action and job training agencies, 
    community-based organizations, and other public entities and 
    private nonprofit organizations and consortia thereof. In making 
    such grants and contracts, a chief executive officer shall give 
    priority to programs and activities described in subsection (c) 
    for--
            ``(A) children and youth who are not normally served by 
        State or local educational agencies; or
            ``(B) populations that need special services or additional 
        resources (such as preschoolers, youth in juvenile detention 
        facilities, runaway or homeless children and youth, pregnant 
        and parenting teenagers, and school dropouts).
        ``(2) Peer review.--Grants or contracts awarded under this 
    subsection shall be subject to a peer review process.
    ``(c) Authorized Activities.--Grants and contracts under subsection 
(b) shall be used for programs and activities such as--
        ``(1) disseminating information about drug and violence 
    prevention;
        ``(2) training parents, law enforcement officials, judicial 
    officials, social service providers, health service providers and 
    community leaders about drug and violence prevention, comprehensive 
    health education, early intervention, pupil services, or 
    rehabilitation referral;
        ``(3) developing and implementing comprehensive, community-
    based drug and violence prevention programs that link community 
    resources with schools and integrate services involving education, 
    vocational and job skills training and placement, law enforcement, 
    health, mental health, community service, mentoring, and other 
    appropriate services;
        ``(4) planning and implementing drug and violence prevention 
    activities that coordinate the efforts of State agencies with 
    efforts of the State educational agency and its local educational 
    agencies;
        ``(5) activities to protect students traveling to and from 
    school;
        ``(6) before-and-after school recreational, instructional, 
    cultural, and artistic programs that encourage drug- and violence-
    free lifestyles;
        ``(7) activities that promote the awareness of and sensitivity 
    to alternatives to violence through courses of study that include 
    related issues of intolerance and hatred in history;
        ``(8) developing and implementing activities to prevent and 
    reduce violence associated with prejudice and intolerance;
        ``(9) developing and implementing strategies to prevent illegal 
    gang activity;
        ``(10) coordinating and conducting community-wide violence and 
    safety assessments and surveys;
        ``(11) service-learning projects that encourage drug- and 
    violence-free lifestyles; and
        ``(12) evaluating programs and activities assisted under this 
    section.
    ``(d) Law Enforcement Education Partnerships.--A chief executive 
officer shall use funds under subsection (a)(2) to award grants to 
State, county or local law enforcement agencies (including district 
attorneys) in consortium with local educational agencies or community-
based agencies for the purposes of carrying out drug abuse and violence 
prevention activities, such as--
        ``(1) Project Drug Abuse Resistance Education and other 
    programs which provide classroom instruction by uniformed law 
    enforcement officials that is designed to teach students to 
    recognize and resist pressures to experiment that influence such 
    children to use controlled substances or alcohol;
        ``(2) Project Legal Lives and other programs in which district 
    attorneys provide classroom instruction in the law and legal system 
    which emphasizes interactive learning techniques, such as mock 
    trial competitions;
        ``(3) partnerships between law enforcement and child guidance 
    professionals; and
        ``(4) before- and after-school activities.

``SEC. 4115. LOCAL APPLICATIONS.

    ``(a) Application Required.--
        ``(1) In general.--In order to be eligible to receive a 
    distribution under section 4113(d) for any fiscal year, a local 
    educational agency shall submit, at such time as the State 
    educational agency requires, an application to the State 
    educational agency for approval. Such an application shall be 
    amended, as necessary, to reflect changes in the local educational 
    agency's program.
        ``(2) Development.--(A) A local educational agency shall 
    develop its application under subsection (a)(1) in consultation 
    with a local or substate regional advisory council that includes, 
    to the extent possible, representatives of local government, 
    business, parents, students, teachers, pupil services personnel, 
    appropriate State agencies, private schools, the medical 
    profession, law enforcement, community-based organizations, and 
    other groups with interest and expertise in drug and violence 
    prevention.
        ``(B) In addition to assisting the local educational agency to 
    develop an application under this section, the advisory council 
    established or designated under subparagraph (A) shall, on an 
    ongoing basis--
            ``(i) disseminate information about drug and violence 
        prevention programs, projects, and activities conducted within 
        the boundaries of the local educational agency;
            ``(ii) advise the local educational agency regarding--
                ``(I) how best to coordinate such agency's activities 
            under this subpart with other related programs, projects, 
            and activities; and
                ``(II) the agencies that administer such programs, 
            projects, and activities; and
            ``(iii) review program evaluations and other relevant 
        material and make recommendations to the local educational 
        agency on how to improve such agency's drug and violence 
        prevention programs.
    ``(b) Contents of Applications.--An application under this section 
shall contain--
        ``(1) an objective analysis of the current use (and 
    consequences of such use) of alcohol, tobacco, and controlled, 
    illegal, addictive or harmful substances as well as the violence, 
    safety, and discipline problems among students who attend the 
    schools of the applicant (including private school students who 
    participate in the applicant's drug and violence prevention 
    program) that is based on ongoing local assessment or evaluation 
    activities;
        ``(2) a detailed explanation of the local educational agency's 
    comprehensive plan for drug and violence prevention, which shall 
    include a description of--
            ``(A) how the plan will be coordinated with programs under 
        this Act, the Goals 2000: Educate America Act, and other Acts, 
        as appropriate, in accordance with the provisions of section 
        14306;
            ``(B) the local educational agency's measurable goals for 
        drug and violence prevention, and a description of how such 
        agency will assess and publicly report progress toward 
        attaining these goals;
            ``(C) how the local educational agency will use its 
        distribution under this subpart;
            ``(D) how the local educational agency will coordinate such 
        agency's programs and projects with community-wide efforts to 
        achieve such agency's goals for drug and violence prevention; 
        and
            ``(E) how the local educational agency will coordinate such 
        agency's programs and projects with other Federal, State, and 
        local programs for drug-abuse prevention, including health 
        programs; and
        ``(3) such other information and assurances as the State 
    educational agency may reasonably require.
    ``(c) Review of Application.--
        ``(1) In general.--In reviewing local applications under this 
    section, a State educational agency shall use a peer review process 
    or other methods of assuring the quality of such applications.
        ``(2) Considerations.--(A) In determining whether to approve 
    the application of a local educational agency under this section, a 
    State educational agency shall consider the quality of the local 
    educational agency's comprehensive plan under subsection (b)(2) and 
    the extent to which such plan is coordinated with programs under 
    this Act, the Goals 2000: Educate America Act, in accordance with 
    the provisions of section 14306.
        ``(B) A State educational agency may disapprove a local 
    educational agency application under this section in whole or in 
    part and may withhold, limit, or place restrictions on the use of 
    funds allotted to such a local educational agency in a manner the 
    State educational agency determines will best promote the purposes 
    of this part, except that a local educational agency shall be 
    afforded an opportunity to appeal any such disapproval.

``SEC. 4116. LOCAL DRUG AND VIOLENCE PREVENTION PROGRAMS.

    ``(a) Program Requirements.--A local educational agency shall use 
funds received under this subpart to adopt and carry out a 
comprehensive drug and violence prevention program which shall--
        ``(1) be designed, for all students and employees, to--
            ``(A) prevent the use, possession, and distribution of 
        tobacco, alcohol, and illegal drugs by students and to prevent 
        the illegal use, possession, and distribution of such 
        substances by employees;
            ``(B) prevent violence and promote school safety; and
            ``(C) create a disciplined environment conducive to 
        learning; and
        ``(2) include activities to promote the involvement of parents 
    and coordination with community groups and agencies, including the 
    distribution of information about the local educational agency's 
    needs, goals, and programs under this subpart.
    ``(b) Authorized Activities.--A comprehensive drug and violence 
prevention program carried out under this subpart may include--
        ``(1) age-appropriate, developmentally based drug prevention 
    and education programs for all students, from the preschool level 
    through grade 12, that address the legal, social, personal and 
    health consequences of the use of illegal drugs, promote a sense of 
    individual responsibility, and provide information about effective 
    techniques for resisting peer pressure to use illegal drugs;
        ``(2) programs of drug prevention, comprehensive health 
    education, early intervention, pupil services, mentoring, or 
    rehabilitation referral, which emphasize students' sense of 
    individual responsibility and which may include--
            ``(A) the dissemination of information about drug 
        prevention;
            ``(B) the professional development of school personnel, 
        parents, students, law enforcement officials, judicial 
        officials, health service providers and community leaders in 
        prevention, education, early intervention, pupil services or 
        rehabilitation referral; and
            ``(C) the implementation of strategies, including 
        strategies to integrate the delivery of services from a variety 
        of providers, to combat illegal alcohol, tobacco and drug use, 
        such as--
                ``(i) family counseling;
                ``(ii) early intervention activities that prevent 
            family dysfunction, enhance school performance, and boost 
            attachment to school and family; and
                ``(iii) activities, such as community service and 
            service-learning projects, that are designed to increase 
            students' sense of community;
        ``(3) age-appropriate, developmentally based violence 
    prevention and education programs for all students, from the 
    preschool level through grade 12, that address the legal, health, 
    personal, and social consequences of violent and disruptive 
    behavior, including sexual harassment and abuse, and victimization 
    associated with prejudice and intolerance, and that include 
    activities designed to help students develop a sense of individual 
    responsibility and respect for the rights of others, and to resolve 
    conflicts without violence;
        ``(4) violence prevention programs for school-aged youth, which 
    emphasize students' sense of individual responsibility and may 
    include--
            ``(A) the dissemination of information about school safety 
        and discipline;
            ``(B) the professional development of school personnel, 
        parents, students, law enforcement officials, judicial 
        officials, and community leaders in designing and implementing 
        strategies to prevent school violence;
            ``(C) the implementation of strategies, such as conflict 
        resolution and peer mediation, student outreach efforts against 
        violence, anti-crime youth councils (which work with school and 
        community-based organizations to discuss and develop crime 
        prevention strategies), and the use of mentoring programs, to 
        combat school violence and other forms of disruptive behavior, 
        such as sexual harassment and abuse; and
            ``(D) the development and implementation of character 
        education programs, as a component of a comprehensive drug or 
        violence prevention program, that are tailored by communities, 
        parents and schools; and
            ``(E) comprehensive, community-wide strategies to prevent 
        or reduce illegal gang activities;
        ``(5) supporting `safe zones of passage' for students between 
    home and school through such measures as Drug- and Weapon-Free 
    School Zones, enhanced law enforcement, and neighborhood patrols;
        ``(6) acquiring and installing metal detectors and hiring 
    security personnel;
        ``(7) professional development for teachers and other staff and 
    curricula that promote the awareness of and sensitivity to 
    alternatives to violence through courses of study that include 
    related issues of intolerance and hatred in history;
        ``(8) the promotion of before-and-after school recreational, 
    instructional, cultural, and artistic programs in supervised 
    community settings;
        ``(9) drug abuse resistance education programs, designed to 
    teach students to recognize and resist pressures to use alcohol or 
    other drugs, which may include activities such as classroom 
    instruction by uniformed law enforcement officers, resistance 
    techniques, resistance to peer pressure and gang pressure, and 
    provision for parental involvement; and
        ``(10) the evaluation of any of the activities authorized under 
    this subsection.
    ``(c) Limitations.--
        ``(1) In general.--Not more than 20 percent of the funds made 
    available to a local educational agency under this subpart may be 
    used to carry out the activities described in paragraphs (5) and 
    (6) of subsection (b).
        ``(2) Special rule.--A local educational agency shall only be 
    able to use funds received under this subpart for activities 
    described in paragraphs (5) and (6) of subsection (b) if funding 
    for such activities is not received from other Federal agencies.
    ``(d) Administrative Provisions.--Notwithstanding any other 
provisions of law, any funds expended prior to July 1, 1995, under part 
B of the Drug-Free Schools and Communities Act of 1986 (as in effect 
prior to enactment of the Improving America's Schools Act) for the 
support of a comprehensive school health program shall be deemed to 
have been authorized by part B of such Act.

``SEC. 4117. EVALUATION AND REPORTING.

    ``(a) National Impact Evaluation.--
        ``(1) Biennial evaluation.--The Secretary, in consultation with 
    the Secretary of Health and Human Services, the Director of the 
    Office of National Drug Control Policy, and the Attorney General, 
    shall conduct an independent biennial evaluation of the national 
    impact of programs assisted under this subpart and of other recent 
    and new initiatives to combat violence in schools and submit a 
    report of the findings of such evaluation to the President and the 
    Congress.
        ``(2) Data collection.--(A) The National Center for Education 
    Statistics shall collect data to determine the frequency, 
    seriousness, and incidence of violence in elementary and secondary 
    schools in the States. The Secretary shall collect the data using, 
    wherever appropriate, data submitted by the States pursuant to 
    subsection (b)(2)(B).
        ``(B) Not later than January 1, 1998, the Secretary shall 
    submit to the Congress a report on the data collected under this 
    subsection, together with such recommendations as the Secretary 
    determines appropriate, including estimated costs for implementing 
    any recommendation.
    ``(b) State Report.--
        ``(1) In general.--By October 1, 1997, and every third year 
    thereafter, the chief executive officer of the State, in 
    cooperation with the State educational agency, shall submit to the 
    Secretary a report--
            ``(A) on the implementation and outcomes of State programs 
        under section 4114 and section 4113(b) and local educational 
        agency programs under section 4113(d), as well as an assessment 
        of their effectiveness; and
            ``(B) on the State's progress toward attaining its goals 
        for drug and violence prevention under subsections (b)(1) and 
        (c)(1) of section 4112.
        ``(2) Special rule.--The report required by this subsection 
    shall be--
            ``(A) in the form specified by the Secretary;
            ``(B) based on the State's ongoing evaluation activities, 
        and shall include data on the prevalence of drug use and 
        violence by youth in schools and communities; and
            ``(C) made readily available to the public.
    ``(c) Local Educational Agency Report.--Each local educational 
agency receiving funds under this subpart shall submit to the State 
educational agency such information, and at such intervals, that the 
State requires to complete the State report required by subsection (b), 
including information on the prevalence of drug use and violence by 
youth in the schools and the community. Such information shall be made 
readily available to the public.

``SEC. 4118. PROGRAMS FOR NATIVE HAWAIIANS.

    ``(a) General Authority.--From the funds made available pursuant to 
section 4111(a)(4) to carry out this section, the Secretary shall make 
grants to or enter into cooperative agreements or contracts with 
organizations primarily serving and representing Native Hawaiians which 
are recognized by the Governor of the State of Hawaii to plan, conduct, 
and administer programs, or portions thereof, which are authorized by 
and consistent with the provisions of this title for the benefit of 
Native Hawaiians.
    ``(b) Definition of Native Hawaiian.--For the purposes of this 
section, the term `Native Hawaiian' means any individual any of whose 
ancestors were natives, prior to 1778, of the area which now comprises 
the State of Hawaii.

                     ``Subpart 2--National Programs

``SEC. 4121. FEDERAL ACTIVITIES.

    ``(a) Program Authorized.--From funds made available to carry out 
this subpart under section 4004(2), the Secretary, in consultation with 
the Secretary of Health and Human Services, the Director of the Office 
of National Drug Control Policy, the Chair of the Ounce of Prevention 
Council, and the Attorney General, shall carry out programs to prevent 
the illegal use of drugs and violence among, and promote safety and 
discipline for, students at all educational levels from preschool 
through the postsecondary level. The Secretary shall carry out such 
programs directly, or through grants, contracts, or cooperative 
agreements with public and private nonprofit organizations and 
individuals, or through agreements with other Federal agencies, and 
shall coordinate such programs with other appropriate Federal 
activities. Such programs may include--
        ``(1) the development and demonstration of innovative 
    strategies for training school personnel, parents, and members of 
    the community, including the demonstration of model preservice 
    training programs for prospective school personnel;
        ``(2) demonstrations and rigorous evaluations of innovative 
    approaches to drug and violence prevention;
        ``(3) the provision of information on drug abuse education and 
    prevention to the Secretary of Health and Human Services for 
    dissemination by the clearinghouse for alcohol and drug abuse 
    information established under section 501(d)(16) of the Public 
    Health Service Act;
        ``(4) the development of curricula related to child abuse 
    prevention and education and the training of personnel to teach 
    child abuse education and prevention to elementary and secondary 
    schoolchildren;
        ``(5) program evaluations in accordance with section 14701 that 
    address issues not addressed under section 4117(a);
        ``(6) direct services to schools and school systems afflicted 
    with especially severe drug and violence problems;
        ``(7) activities in communities designated as empowerment zones 
    or enterprise communities that will connect schools to community-
    wide efforts to reduce drug and violence problems;
        ``(8) developing and disseminating drug and violence prevention 
    materials, including video-based projects and model curricula;
        ``(9) developing and implementing a comprehensive violence 
    prevention strategy for schools and communities, that may include 
    conflict resolution, peer mediation, the teaching of law and legal 
    concepts, and other activities designed to stop violence;
        ``(10) the implementation of innovative activities, such as 
    community service projects, designed to rebuild safe and healthy 
    neighborhoods and increase students' sense of individual 
    responsibility;
        ``(11) grants to noncommercial telecommunications entities for 
    the production and distribution of national video-based projects 
    that provide young people with models for conflict resolution and 
    responsible decisionmaking;
        ``(12) the development of education and training programs, 
    curricula, instructional materials, and professional training and 
    development for preventing and reducing the incidence of crimes and 
    conflicts motivated by hate in localities most directly affected by 
    hate crimes; and
        ``(13) other activities that meet unmet national needs related 
    to the purposes of this title.
    ``(b) Peer Review.--The Secretary shall use a peer review process 
in reviewing applications for funds under this section.

``SEC. 4122. GRANTS TO INSTITUTIONS OF HIGHER EDUCATION.

    ``(a) In General.--From funds made available to carry out this 
subpart under section 4004(2), the Secretary is authorized to make 
grants to, or enter into contracts with, institutions of higher 
education, or consortia of such institutions, for drug and violence 
prevention programs under this section. Awards under this section shall 
support the development, implementation, validation, and dissemination 
of--
        ``(1) model programs and strategies to promote the safety of 
    students attending institutions of higher education by preventing 
    violent behavior and the illegal use of alcohol and other drugs by 
    such students; and
        ``(2) such model programs and strategies shall be coordinated 
    with the report required under section 204(a)(4)(B) of the Student 
    Right-to-Know and Campus Security Act on policies, procedures and 
    practices which have proven effective in the reduction of campus 
    crime.
    ``(b) Applications.--An institution of higher education, or 
consortium of such institutions, that desires to receive an award under 
this section shall submit an application to the Secretary at such time, 
in such manner, and containing such information as the Secretary may 
reasonably require. The Secretary shall use a peer review process for 
reviewing applications for funds under this section.
    ``(c) Equitable Participation.--The Secretary shall make every 
reasonable effort to ensure the equitable participation in the 
activities assisted under this section of private and public 
institutions of higher education (including community and junior 
colleges), institutions of limited enrollment, and institutions in 
different geographic regions.

``SEC. 4123. HATE CRIME PREVENTION.

    ``(a) Grant Authorization.--From funds made available to carry out 
this subpart under section 4004(1) the Secretary may make grants to 
local educational agencies and community-based organizations for the 
purpose of providing assistance to localities most directly affected by 
hate crimes.
    ``(b) Use of Funds.--
        ``(1) Program development.--Grants under this section may be 
    used to improve elementary and secondary educational efforts, 
    including--
            ``(A) development of education and training programs 
        designed to prevent and to reduce the incidence of crimes and 
        conflicts motivated by hate;
            ``(B) development of curricula for the purpose of improving 
        conflict or dispute resolution skills of students, teachers, 
        and administrators;
            ``(C) development and acquisition of equipment and 
        instructional materials to meet the needs of, or otherwise be 
        part of, hate crime or conflict programs; and
            ``(D) professional training and development for teachers 
        and administrators on the causes, effects, and resolutions of 
        hate crimes or hate-based conflicts.
        ``(2) In general.--In order to be eligible to receive a grant 
    under this section for any fiscal year, a local educational agency, 
    or a local educational agency in conjunction with a community-based 
    organization, shall submit an application to the Secretary in such 
    form and containing such information as the office may reasonably 
    require.
        ``(3) Requirements.--Each application under paragraph (2) shall 
    include--
            ``(A) a request for funds for the purposes described in 
        this section;
            ``(B) a description of the schools and communities to be 
        served by the grants; and
            ``(C) assurances that Federal funds received under this 
        section shall be used to supplement, not supplant, non-Federal 
        funds.
        ``(4) Comprehensive plan.--Each application shall include a 
    comprehensive plan that contains--
            ``(A) a description of the hate crime or conflict problems 
        within the schools or the community targeted for assistance;
            ``(B) a description of the program to be developed or 
        augmented by such Federal and matching funds;
            ``(C) assurances that such program or activity shall be 
        administered by or under the supervision of the applicant;
            ``(D) proper and efficient administration of such program; 
        and
            ``(E) fiscal control and fund accounting procedures as may 
        be necessary to ensure prudent use, proper disbursement, and 
        accurate accounting of funds received under this section.
    ``(c) Award of Grants.--
        ``(1) Selection of recipients.--The Secretary shall consider 
    the incidence of crimes and conflicts motivated by bias in the 
    targeted schools and communities in awarding grants under this 
    section.
        ``(2) Geographic distribution.--The Secretary shall attempt, to 
    the extent practicable, to achieve an equitable geographic 
    distribution of grant awards.
        ``(3) Dissemination of information.--The Secretary shall 
    attempt, to the extent practicable, to make available information 
    regarding successful hate crime prevention programs, including 
    programs established or expanded with grants under this section.
    ``(d) Reports.--The Secretary shall submit to the Congress a report 
every two years which shall contain a detailed statement regarding 
grants and awards, activities of grant recipients, and an evaluation of 
programs established under this section.

                    ``Subpart 3--General Provisions

``SEC. 4131. DEFINITIONS.

    ``For the purposes of this part:
        ``(1) Community-based organization.--The term `community-based 
    organization' means a private nonprofit organization which is 
    representative of a community or significant segments of a 
    community and which provides educational or related services to 
    individuals in the community.
        ``(2) 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 alcohol and the use of controlled, illegal, 
        addictive, or harmful substances, including inhalants and 
        anabolic steroids;
            ``(B) prevention, early intervention, smoking cessation 
        activities, or education, related to the use of tobacco by 
        children and youth eligible for services under this title; and
            ``(C) with respect to violence, the promotion of school 
        safety, such that students and school personnel are free from 
        violent and disruptive acts, including sexual harassment and 
        abuse, and victimization associated with prejudice and 
        intolerance, 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 
        fosters individual responsibility and respect for the rights of 
        others.
        ``(3) Hate crime.--The term `hate crime' means a crime as 
    described in section 1(b) of the Hate Crime Statistics Act of 1990.
        ``(4) Nonprofit.--The term `nonprofit', as applied to a school, 
    agency, organization, or institution means a school, agency, 
    organization, or institution owned and operated by one or more 
    nonprofit corporations or associations, no part of the net earnings 
    of which inures, or may lawfully inure, to the benefit of any 
    private shareholder or individual.
        ``(5) School-aged population.--The term `school-aged 
    population' means the population aged five through 17, as 
    determined by the Secretary on the basis of the most recent 
    satisfactory data available from the Department of Commerce.
        ``(6) School personnel.--The term `school personnel' includes 
    teachers, administrators, guidance counselors, social workers, 
    psychologists, nurses, librarians, and other support staff who are 
    employed by a school or who perform services for the school on a 
    contractual basis.

``SEC. 4132. MATERIALS.

    ``(a) `Wrong and Harmful' Message.--Drug prevention programs 
supported under this part shall convey a clear and consistent message 
that the illegal use of alcohol and other drugs is wrong and harmful.
    ``(b) Curriculum.--The Secretary shall not prescribe the use of 
specific curricula for programs supported under this part, but may 
evaluate the effectiveness of such curricula and other strategies in 
drug and violence prevention.

``SEC. 4133. 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); and
        ``(2) medical services, drug treatment or rehabilitation, 
    except for pupil services or referral to treatment for students who 
    are victims of or witnesses to crime or who use alcohol, tobacco, 
    or drugs.''.

                      ``TITLE V--PROMOTING EQUITY

                  ``PART A--MAGNET SCHOOLS ASSISTANCE

``SEC. 5101. FINDINGS.

    ``The Congress finds that--
        ``(1) magnet schools are a significant part of our Nation's 
    effort to achieve voluntary desegregation in our Nation's schools;
        ``(2) the use of magnet schools has increased dramatically 
    since the date of enactment of the Magnet Schools Assistance 
    program, with approximately 1,400,000 students nationwide now 
    attending such schools, of which more than 60 percent of the 
    students are nonwhite;
        ``(3) magnet schools offer a wide range of distinctive programs 
    that have served as models for school improvement efforts;
        ``(4) in administering the Magnet Schools Assistance program, 
    the Federal Government has learned that--
            ``(A) where magnet programs are implemented for only a 
        portion of a school's student body, special efforts must be 
        made to discourage the isolation of--
                ``(i) magnet school students from other students in the 
            school; and
                ``(ii) students by racial characteristics;
            ``(B) local educational agencies can maximize their 
        effectiveness in achieving the purposes of the Magnet Schools 
        Assistance program if such agencies have more flexibility in 
        the administration of such program in order to serve students 
        attending a school who are not enrolled in the magnet school 
        program;
            ``(C) local educational agencies must be creative in 
        designing magnet schools for students at all academic levels, 
        so that school districts do not skim off only the highest 
        achieving students to attend the magnet schools;
            ``(D) consistent with desegregation guidelines, local 
        educational agencies must seek to enable participation in 
        magnet school programs by students who reside in the 
        neighborhoods where the programs operate; and
            ``(E) in order to ensure that magnet schools are sustained 
        after Federal funding ends, the Federal Government must assist 
        school districts to improve their capacity to continue to 
        operate magnet schools at a high level of performance; and
        ``(5) it is in the best interest of the Federal Government to--
            ``(A) continue the Federal Government's support of school 
        districts implementing court-ordered desegregation plans and 
        school districts seeking to foster meaningful interaction among 
        students of different racial and ethnic backgrounds, beginning 
        at the earliest stage of such students' education;
            ``(B) ensure that all students have equitable access to 
        quality education that will prepare such students to function 
        well in a culturally diverse, technologically oriented, and 
        highly competitive, global community; and
            ``(C) maximize the ability of local educational agencies to 
        plan, develop, implement and continue effective and innovative 
        magnet schools that contribute to State and local systemic 
        reform.

``SEC. 5102. STATEMENT OF PURPOSE.

    ``The purpose of this part is to assist in the desegregation of 
schools served by local educational agencies by providing financial 
assistance to eligible local educational agencies for--
        ``(1) the elimination, reduction, or prevention of minority 
    group isolation in elementary and secondary schools with 
    substantial proportions of minority students;
        ``(2) the development and implementation of magnet school 
    projects that will assist local educational agencies in achieving 
    systemic reforms and providing all students the opportunity to meet 
    challenging State content standards and challenging State student 
    performance standards;
        ``(3) the development and design of innovative educational 
    methods and practices; and
        ``(4) courses of instruction within magnet schools that will 
    substantially strengthen the knowledge of academic subjects and the 
    grasp of tangible and marketable vocational skills of students 
    attending such schools.

``SEC. 5103. PROGRAM AUTHORIZED.

    ``The Secretary, in accordance with this part, is authorized to 
make grants to eligible local educational agencies, and consortia of 
such agencies where appropriate, to carry out the purpose of this part 
for magnet schools that are--
        ``(1) part of an approved desegregation plan; and
        ``(2) designed to bring students from different social, 
    economic, ethnic, and racial backgrounds together.

``SEC. 5104. DEFINITION.

    ``For the purpose of this part, the term `magnet school' means a 
public elementary or secondary school or public elementary or secondary 
education center that offers a special curriculum capable of attracting 
substantial numbers of students of different racial backgrounds.

``SEC. 5105. ELIGIBILITY.

    ``A local educational agency, or consortium of such agencies where 
appropriate, is eligible to receive assistance under this part to carry 
out the purposes of this part if such agency or consortium--
        ``(1) is implementing a plan undertaken pursuant to a final 
    order issued by a court of the United States, or a court of any 
    State, or any other State agency or official of competent 
    jurisdiction, that requires the desegregation of minority-group-
    segregated children or faculty in the elementary and secondary 
    schools of such agency; or
        ``(2) without having been required to do so, has adopted and is 
    implementing, or will, if assistance is made available to such 
    local educational agency or consortium of such agencies under this 
    part, adopt and implement a plan that has been approved by the 
    Secretary as adequate under title VI of the Civil Rights Act of 
    1964 for the desegregation of minority-group-segregated children or 
    faculty in such schools.

``SEC. 5106. APPLICATIONS AND REQUIREMENTS.

    ``(a) Applications.--An eligible local educational agency or 
consortium of such agencies desiring to receive assistance under this 
part shall submit an application to the Secretary at such time, in such 
manner, and containing such information and assurances as the Secretary 
may reasonably require.
    ``(b) Information and Assurances.--Each such application shall 
include--
        ``(1) a description of--
            ``(A) how assistance made available under this part will be 
        used to promote desegregation, including how the proposed 
        magnet school project will increase interaction among students 
        of different social, economic, ethnic, and racial backgrounds;
            ``(B) the manner and extent to which the magnet school 
        project will increase student achievement in the instructional 
        area or areas offered by the school;
            ``(C) how an applicant will continue the magnet school 
        project after assistance under this part is no longer 
        available, including, if applicable, an explanation of why 
        magnet schools established or supported by the applicant with 
        funds under this part cannot be continued without the use of 
        funds under this part;
            ``(D) how funds under this part will be used to implement 
        services and activities that are consistent with other programs 
        under this Act, the Goals 2000: Educate America Act, and other 
        Acts, as appropriate, in accordance with the provisions of 
        section 14306; and
            ``(E) the criteria to be used in selecting students to 
        attend the proposed magnet school projects; and
        ``(2) assurances that the applicant will--
            ``(A) use funds under this part for the purposes specified 
        in section 5102;
            ``(B) employ State certified or licensed teachers in the 
        courses of instruction assisted under this part to teach or 
        supervise others who are teaching the subject matter of the 
        courses of instruction;
            ``(C) not engage in discrimination based on race, religion, 
        color, national origin, sex, or disability in--
                ``(i) the hiring, promotion, or assignment of employees 
            of the agency or other personnel for whom the agency has 
            any administrative responsibility;
                ``(ii) the assignment of students to schools, or to 
            courses of instruction within the school, of such agency, 
            except to carry out the approved plan; and
                ``(iii) designing or operating extracurricular 
            activities for students;
            ``(D) carry out a high-quality education program that will 
        encourage greater parental decisionmaking and involvement; and
            ``(E) give students residing in the local attendance area 
        of the proposed magnet school projects equitable consideration 
        for placement in those projects.
    ``(c) Special Rule.--No application may be approved under this 
section unless the Assistant Secretary of Education for Civil Rights 
determines that the assurances described in subsection (b)(2)(C) will 
be met.

``SEC. 5107. PRIORITY.

    ``In approving applications under this part, the Secretary shall 
give priority to applicants that--
        ``(1) demonstrate the greatest need for assistance, based on 
    the expense or difficulty of effectively carrying out an approved 
    desegregation plan and the projects for which assistance is sought;
        ``(2) propose to carry out new magnet school projects, or 
    significantly revise existing magnet school projects;
        ``(3) propose to select students to attend magnet school 
    projects by methods such as lottery, rather than through academic 
    examination;
        ``(4) propose to implement innovative educational approaches 
    that are consistent with the State's and local educational agency's 
    approved systemic reform plans, if any, under title III of the 
    Goals 2000: Educate America Act; and
        ``(5) propose to draw on comprehensive community involvement 
    plans.

``SEC. 5108. USE OF FUNDS.

    ``(a) In General.--Grant funds made available under this part may 
be used by an eligible local educational agency or consortium of such 
agencies--
        ``(1) for planning and promotional activities directly related 
    to the development, expansion, continuation, or enhancement of 
    academic programs and services offered at magnet schools;
        ``(2) for the acquisition of books, materials, and equipment, 
    including computers and the maintenance and operation thereof, 
    necessary for the conduct of programs in magnet schools;
        ``(3) for the payment, or subsidization of the compensation, of 
    elementary and secondary school teachers who are certified or 
    licensed by the State, and instructional staff where applicable, 
    who are necessary for the conduct of programs in magnet schools; 
    and
        ``(4) with respect to a magnet school program offered to less 
    than the entire student population of a school, for instructional 
    activities that--
            ``(A) are designed to make available the special curriculum 
        that is offered by the magnet school project to students who 
        are enrolled in the school but who are not enrolled in the 
        magnet school program; and
            ``(B) further the purposes of this part.
    ``(b) Special Rule.--Grant funds under this part may be used in 
accordance with paragraphs (2) and (3) of subsection (a) only if the 
activities described in such paragraphs are directly related to 
improving the students' reading skills or knowledge of mathematics, 
science, history, geography, English, foreign languages, art, or music, 
or to improving vocational skills.

``SEC. 5109. PROHIBITIONS.

    ``(a) Transportation.--Grants under this part may not be used for 
transportation or any activity that does not augment academic 
improvement.
    ``(b) Planning.--A local educational agency shall not expend funds 
under this part after the third year that such agency receives funds 
under this part for such project.

``SEC. 5110. LIMITATIONS.

    ``(a) Duration of Awards.--A grant under this part shall be awarded 
for a period that shall not exceed three fiscal years.
    ``(b) Limitation on Planning Funds.--A local educational agency may 
expend for planning not more than 50 percent of the funds received 
under this part for the first year of the project, 15 percent of such 
funds for the second such year, and 10 percent of such funds for the 
third such year.
    ``(c) Amount.--No local educational agency or consortium awarded a 
grant under this part shall receive more than $4,000,000 under this 
part in any one fiscal year.
    ``(d) Timing.--To the extent practicable, the Secretary shall award 
grants for any fiscal year under this part not later than June 1 of the 
applicable fiscal year.

``SEC. 5111. INNOVATIVE PROGRAMS.

    ``(a) In General.--From amounts reserved under subsection (d) for 
each fiscal year, the Secretary shall award grants to local educational 
agencies or consortia of such agencies described in section 5105 to 
enable such agencies or consortia to conduct innovative programs that--
        ``(1) carry out the purpose of this part; and
        ``(2) involve strategies other than magnet schools, such as 
    neighborhood or community model schools--
            ``(A) organized around a special emphasis, theme or 
        concept; and
            ``(B) involving extensive parent and community involvement.
    ``(b) Applicability.--Sections 5103, 5106, 5107, and 5108, shall 
not apply to grants awarded under subsection (a).
    ``(c) Applications.--Each local educational agency or consortia of 
such agencies desiring a grant under this section shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information and assurances as the Secretary may 
reasonably require.
    ``(d) Innovative Programs.--The Secretary shall reserve not more 
than 5 percent of the funds appropriated under section 5113(a) for each 
fiscal year to award grants under this section.

``SEC. 5112. EVALUATIONS.

    ``(a) Reservation.--The Secretary may reserve not more than two 
percent of the funds appropriated under section 5113(a) for any fiscal 
year to carry out evaluations of projects assisted under this part.
    ``(b) Contents.--Each evaluation described in subsection (a), at a 
minimum, shall address--
        ``(1) how and the extent to which magnet school programs lead 
    to educational quality and improvement;
        ``(2) the extent to which magnet school programs enhance 
    student access to quality education;
        ``(3) the extent to which magnet school programs lead to the 
    elimination, reduction, or prevention of minority group isolation 
    in elementary and secondary schools with substantial proportions of 
    minority students; and
        ``(4) the extent to which magnet school programs differ from 
    other school programs in terms of the organizational 
    characteristics and resource allocations of such magnet school 
    programs.

``SEC. 5113. AUTHORIZATION OF APPROPRIATIONS; RESERVATION.

    ``(a) Authorization.--For the purpose of carrying out this part, 
there are authorized to be appropriated $120,000,000 for fiscal year 
1995 and such sums as may be necessary for each of the 4 succeeding 
fiscal years.
    ``(b) Availability of Funds for Grants to Agencies Not Previously 
Assisted.--In any fiscal year for which the amount appropriated 
pursuant to subsection (a) exceeds $75,000,000, the Secretary shall 
give priority to using such amounts in excess of $75,000,000 to award 
grants to local educational agencies or consortia of such agencies that 
did not receive a grant under this part in the preceding fiscal year.

                  ``PART B--WOMEN'S EDUCATIONAL EQUITY

``SEC. 5201. SHORT TITLE; FINDINGS.

    ``(a) Short Title.--This part may be cited as the `Women's 
Educational Equity Act of 1994'.
    ``(b) Findings.--The Congress finds that--
        ``(1) since the enactment of title IX of the Education 
    Amendments of 1972, women and girls have made strides in 
    educational achievement and in their ability to avail themselves of 
    educational opportunities;
        ``(2) because of funding provided under the Women's Educational 
    Equity Act, more curricula, training, and other educational 
    materials concerning educational equity for women and girls are 
    available for national dissemination;
        ``(3) teaching and learning practices in the United States are 
    frequently inequitable as such practices relate to women and girls, 
    for example--
            ``(A) sexual harassment, particularly that experienced by 
        girls, undermines the ability of schools to provide a safe and 
        equitable learning or workplace environment;
            ``(B) classroom textbooks and other educational materials 
        do not sufficiently reflect the experiences, achievements, or 
        concerns of women and, in most cases, are not written by women 
        or persons of color;
            ``(C) girls do not take as many mathematics and science 
        courses as boys, girls lose confidence in their mathematics and 
        science ability as girls move through adolescence, and there 
        are few women role models in the sciences; and
            ``(D) pregnant and parenting teenagers are at high risk for 
        dropping out of school and existing dropout prevention programs 
        do not adequately address the needs of such teenagers;
        ``(4) efforts to improve the quality of public education also 
    must include efforts to ensure equal access to quality education 
    programs for all women and girls;
        ``(5) Federal support should address not only research and 
    development of innovative model curricula and teaching and learning 
    strategies to promote gender equity, but should also assist schools 
    and local communities implement gender equitable practices;
        ``(6) Federal assistance for gender equity must be tied to 
    systemic reform, involve collaborative efforts to implement 
    effective gender practices at the local level, and encourage 
    parental participation; and
        ``(7) excellence in education, high educational achievements 
    and standards, and the full participation of women and girls in 
    American society, cannot be achieved without educational equity for 
    women and girls.

``SEC. 5202. STATEMENT OF PURPOSES.

    ``It is the purpose of this part--
        ``(1) to promote gender equity in education in the United 
    States;
        ``(2) to provide financial assistance to enable educational 
    agencies and institutions to meet the requirements of title IX of 
    the Educational Amendments of 1972; and
        ``(3) to promote equity in education for women and girls who 
    suffer from multiple forms of discrimination based on sex, race, 
    ethnic origin, limited-English proficiency, disability, or age.

``SEC. 5203. PROGRAMS AUTHORIZED.

    ``(a) In General.--The Secretary is authorized--
        ``(1) to promote, coordinate, and evaluate gender equity 
    policies, programs, activities and initiatives in all Federal 
    education programs and offices;
        ``(2) to develop, maintain, and disseminate materials, 
    resources, analyses, and research relating to education equity for 
    women and girls;
        ``(3) to provide information and technical assistance to assure 
    the effective implementation of gender equity programs;
        ``(4) to coordinate gender equity programs and activities with 
    other Federal agencies with jurisdiction over education and related 
    programs;
        ``(5) to assist the Assistant Secretary of the Office of 
    Educational Research and Improvement in identifying research 
    priorities related to education equity for women and girls; and
        ``(6) to perform any other activities consistent with achieving 
    the purposes of this part.
    ``(b) Grants Authorized.--
        ``(1) In general.--The Secretary is authorized to make grants 
    to, and enter into contracts and cooperative agreements with, 
    public agencies, private nonprofit agencies, organizations, 
    institutions, student groups, community groups, and individuals, 
    for a period not to exceed four years, to--
            ``(A) provide grants to develop model equity programs; and
            ``(B) provide funds for the implementation of equity 
        programs in schools throughout the Nation.
        ``(2) Support and technical assistance.--To achieve the 
    purposes of this part, the Secretary is authorized to provide 
    support and technical assistance--
            ``(A) to implement effective gender-equity policies and 
        programs at all educational levels, including--
                ``(i) assisting educational agencies and institutions 
            to implement policies and practices to comply with title IX 
            of the Education Amendments of 1972;
                ``(ii) training for teachers, counselors, 
            administrators, and other school personnel, especially 
            preschool and elementary school personnel, in gender 
            equitable teaching and learning practices;
                ``(iii) leadership training for women and girls to 
            develop professional and marketable skills to compete in 
            the global marketplace, improve self-esteem, and benefit 
            from exposure to positive role models;
                ``(iv) school-to-work transition programs, guidance and 
            counseling activities, and other programs to increase 
            opportunities for women and girls to enter a 
            technologically demanding workplace and, in particular, to 
            enter highly skilled, high paying careers in which women 
            and girls have been underrepresented;
                ``(v) enhancing educational and career opportunities 
            for those women and girls who suffer multiple forms of 
            discrimination, based on sex and on race, ethnic origin, 
            limited-English proficiency, disability, socioeconomic 
            status, or age;
                ``(vi) assisting pregnant students and students rearing 
            children to remain in or to return to secondary school, 
            graduate, and prepare their preschool children to start 
            school;
                ``(vii) evaluating exemplary model programs to assess 
            the ability of such programs to advance educational equity 
            for women and girls;
                ``(viii) introduction into the classroom of textbooks, 
            curricula, and other materials designed to achieve equity 
            for women and girls;
                ``(ix) programs and policies to address sexual 
            harassment and violence against women and girls and to 
            ensure that educational institutions are free from threats 
            to the safety of students and personnel;
                ``(x) nondiscriminatory tests of aptitude and 
            achievement and of alternative assessments that eliminate 
            biased assessment instruments from use;
                ``(xi) programs to increase educational opportunities, 
            including higher education, vocational training, and other 
            educational programs for low-income women, including 
            underemployed and unemployed women, and women receiving Aid 
            to Families with Dependent Children benefits;
                ``(xii) programs to improve representation of women in 
            educational administration at all levels; and
                ``(xiii) planning, development and initial 
            implementation of--

                    ``(I) comprehensive institution- or districtwide 
                evaluation to assess the presence or absence of gender 
                equity in educational settings;
                    ``(II) comprehensive plans for implementation of 
                equity programs in State and local educational agencies 
                and institutions of higher education; including 
                community colleges; and
                    ``(III) innovative approaches to school-community 
                partnerships for educational equity.

            ``(B) for research and development, which shall be 
        coordinated with each of the research institutes of the Office 
        of Educational Research and Improvement to avoid duplication of 
        research efforts, designed to advance gender equity nationwide 
        and to help make policies and practices in educational agencies 
        and institutions, and local communities, gender equitable, 
        including--
                ``(i) research and development of innovative strategies 
            and model training programs for teachers and other 
            education personnel;
                ``(ii) the development of high quality and challenging 
            assessment instruments that are nondiscriminatory;
                ``(iii) the development and evaluation of model 
            curricula, textbooks, software, and other educational 
            materials to ensure the absence of gender stereotyping and 
            bias;
                ``(iv) the development of instruments and procedures 
            that employ new and innovative strategies to assess whether 
            diverse educational settings are gender equitable;
                ``(v) the development of instruments and strategies for 
            evaluation, dissemination, and replication of promising or 
            exemplary programs designed to assist local educational 
            agencies in integrating gender equity in their educational 
            policies and practices;
                ``(vi) updating high quality educational materials 
            previously developed through awards made under this part;
                ``(vii) the development of policies and programs to 
            address and prevent sexual harassment and violence to 
            ensure that educational institutions are free from threats 
            to safety of students and personnel;
                ``(viii) the development and improvement of programs 
            and activities to increase opportunity for women, including 
            continuing educational activities, vocational education, 
            and programs for low-income women, including underemployed 
            and unemployed women, and women receiving Aid to Families 
            with Dependent Children; and
                ``(ix) the development of guidance and counseling 
            activities, including career education programs, designed 
            to ensure gender equity.

``SEC. 5204. APPLICATIONS.

    ``An application under this part shall--
        ``(1) set forth policies and procedures that will ensure a 
    comprehensive evaluation of the activities assisted under this 
    part, including an evaluation of the practices, policies, and 
    materials used by the applicant and an evaluation or estimate of 
    the continued significance of the work of the project following 
    completion of the award period;
        ``(2) where appropriate, demonstrate how funds received under 
    this part will be used to promote the attainment of one or more of 
    the National Education Goals;
        ``(3) demonstrate how the applicant will address perceptions of 
    gender roles based on cultural differences or stereotypes;
        ``(4) where appropriate, describe how funds under this part 
    will be used in a manner that is consistent with programs under the 
    School-to-Work Opportunities Act of 1994;
        ``(5) for applications for assistance under section 5203(b)(1), 
    demonstrate how the applicant will foster partnerships and, where 
    applicable, share resources with State educational agencies, local 
    educational agencies, institutions of higher education, community-
    based organizations (including organizations serving women), 
    parent, teacher, and student groups, businesses or other recipients 
    of Federal educational funding which may include State literacy 
    resource centers;
        ``(6) for applications for assistance under section 5203(b)(1), 
    demonstrate how parental involvement in the project will be 
    encouraged; and
        ``(7) for applications for assistance under section 5203(b)(1), 
    describe plans for continuation of the activities assisted under 
    this part with local support following completion of the grant 
    period and termination of Federal support under this part.

``SEC. 5205. CRITERIA AND PRIORITIES.

    ``(a) Criteria and Priorities.--
        ``(1) In general.--The Secretary shall establish separate 
    criteria and priorities for awards under paragraphs (1) and (2) of 
    section 5203(b) to ensure that funds under this part are used for 
    programs that most effectively will achieve the purposes of this 
    part.
        ``(2) Criteria.--The criteria described in subsection (a) may 
    include the extent to which the activities assisted under this 
    part--
            ``(A) address the needs of women and girls of color and 
        women and girls with disabilities;
            ``(B) meet locally defined and documented educational 
        equity needs and priorities, including compliance with title IX 
        of the Education Amendments of 1972;
            ``(C) are a significant component of a comprehensive plan 
        for educational equity and compliance with title IX of the 
        Education Amendments of 1972 in the particular school district, 
        institution of higher education, vocational-technical 
        institution, or other educational agency or institution; and
            ``(D) implement an institutional change strategy with long-
        term impact that will continue as a central activity of the 
        applicant after the grant under this part has terminated.
    ``(b) Priorities.--In approving applications under this part, the 
Secretary may give special consideration to applications--
        ``(1) submitted by applicants that have not received assistance 
    under this part or under part C of title IX of this Act (as such 
    part was in effect on October 1, 1988);
        ``(2) for projects that will contribute significantly to 
    directly improving teaching and learning practices in the local 
    community; and
        ``(3) for projects that will--
            ``(A) provide for a comprehensive approach to enhancing 
        gender equity in educational institutions and agencies;
            ``(B) draw on a variety of resources, including the 
        resources of local educational agencies, community-based 
        organizations, institutions of higher education, and private 
        organizations;
            ``(C) implement a strategy with long-term impact that will 
        continue as a central activity of the applicant after the grant 
        under this part has terminated;
            ``(D) address issues of national significance that can be 
        duplicated; and
            ``(E) address the educational needs of women and girls who 
        suffer multiple or compound discrimination based on sex and on 
        race, ethnic origin, disability, or age.
    ``(c) Special Rule.--To the extent feasible, the Secretary shall 
ensure that grants awarded under this part for each fiscal year 
address--
        ``(1) all levels of education, including preschool, elementary 
    and secondary education, higher education, vocational education, 
    and adult education;
        ``(2) all regions of the United States; and
        ``(3) urban, rural, and suburban educational institutions.
    ``(d) Coordination.--Research activities supported under this 
part--
        ``(1) shall be carried out in consultation with the Office of 
    Educational Research and Improvement to ensure that such activities 
    are coordinated with and enhance the research and development 
    activities supported by the Office; and
        ``(2) may include collaborative research activities which are 
    jointly funded and carried out with the Office of Educational 
    Research and Improvement.
    ``(e) Limitation.--Nothing in this part shall be construed as 
prohibiting men and boys from participating in any programs or 
activities assisted with funds under this part.

``SEC. 5206. REPORT.

    ``The Secretary, not later than January 1, 1999, shall submit to 
the President and the Congress a report on the status of educational 
equity for girls and women in the Nation.

``SEC. 5207. ADMINISTRATION.

    ``(a) Evaluation and Dissemination.--The Secretary shall evaluate 
in accordance with section 14701, and disseminate, materials and 
programs developed under this part and shall report to the Congress 
regarding such evaluation materials and programs not later than January 
1, 1998.
    ``(b) Program Operations.--The Secretary shall ensure that the 
activities assisted under this part are administered within the 
Department by a person who has recognized professional qualifications 
and experience in the field of gender equity education.

``SEC. 5208. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this part, there are authorized 
to be appropriated $5,000,000 for fiscal year 1995 and such sums as may 
be necessary for each of the four succeeding fiscal years, of which not 
less than two-thirds of the amount appropriated under this section for 
each fiscal year shall be available to carry out the activities 
described in section 5203(b)(1).

        ``PART C--ASSISTANCE TO ADDRESS SCHOOL DROPOUT PROBLEMS

``SEC. 5301. SHORT TITLE.

    ``This part may be cited as the `School Dropout Assistance Act'.

``SEC. 5302. PURPOSE.

    ``The purpose of this part is to reduce the number of children who 
do not complete their elementary and secondary education by providing 
grants to local educational agencies to establish--
        ``(1) effective programs to identify potential student 
    dropouts, including pregnant and parenting teenagers, and prevent 
    such students from dropping out of school;
        ``(2) effective programs to identify and encourage children who 
    have already dropped out to reenter school and complete their 
    elementary and secondary education;
        ``(3) effective early intervention programs designed to 
    identify at-risk students in elementary and secondary schools; and
        ``(4) model systems for collecting and reporting information to 
    local school officials on the number, ages, sex, race or ethnicity, 
    and grade levels of the children not completing their elementary 
    and secondary education and the reasons why such children have 
    dropped out of school.

``SEC. 5303. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Allotment to Categories of Local Educational Agencies.--From 
the amount appropriated under section 5308 for any fiscal year, the 
Secretary shall first reserve not more than $2,000,000 for the purposes 
of evaluating programs carried out with assistance under this part in 
accordance with section 14701. From the remaining amount, the Secretary 
shall allot the following percentages to each of the following 
categories of local educational agencies:
        ``(1) Local educational agencies administering schools with a 
    total enrollment of 100,000 or more elementary and secondary school 
    students shall be allotted 25 percent of such remaining amount.
        ``(2) Local educational agencies administering schools with a 
    total enrollment of at least 20,000 but less than 100,000 
    elementary and secondary school students shall be allotted 40 
    percent of such remaining amount.
        ``(3) Local educational agencies administering schools with a 
    total enrollment of less than 20,000 elementary and secondary 
    school students shall be allotted 30 percent of such remaining 
    amount. Grants may be made under this paragraph to educational 
    service agencies and consortia of not more than 5 local educational 
    agencies in any case in which the total enrollment of the largest 
    such local educational agency is less than 20,000 elementary and 
    secondary students. Such agencies and consortia may also apply for 
    assistance under this part in conjunction with the State 
    educational agency. Not less than 20 percent of funds available 
    under this paragraph shall be awarded to local educational agencies 
    administering schools with a total enrollment of less than 2,000 
    elementary and secondary school students.
        ``(4) Community-based organizations shall be allotted 5 percent 
    of such remaining amount. Grants under this paragraph shall be made 
    after consultation between the community-based organization and the 
    local educational agency that is to benefit from such a grant.
    ``(b) Special Consideration.--
        ``(1) In general.--The Secretary shall give special 
    consideration to awarding funds available for each category 
    described in paragraphs (1), (2), and (3) of subsection (a) to 
    local educational agencies participating in an educational 
    partnership.
        ``(2) Educational partnerships.--For the purpose of this part 
    the term `educational partnerships' means a partnership between--
            ``(A) a local educational agency; and
            ``(B) a business concern or business organization, 
        community-based organization, nonprofit private organization, 
        institution of higher education, State educational agency, 
        State or local public agency, private industry council 
        (established under the Job Training Partnership Act), museum, 
        library, or educational television or broadcasting station.
    ``(c) Award of Grant.--
        ``(1) In general.--From the amount allotted for any fiscal year 
    to a category of local educational agencies under subsection (a), 
    the Secretary shall award as many grants as practicable within each 
    such category to local educational agencies and educational 
    partnerships whose applications have been approved by the Secretary 
    for such fiscal year under section 5304 and whose applications 
    propose a program of sufficient size, scope, and quality to be 
    effective.
        ``(2) Additional funds.--Any local educational agency or 
    educational partnership that has received a grant under this part 
    shall be eligible for additional funds as provided under subsection 
    (d).
        ``(3) Terms and conditions.--Grants under this part shall be 
    made under such terms and conditions as the Secretary shall 
    prescribe.
    ``(d) Use of Funds When Not Fully Allotted to Categories Under 
Subsection (a).--
        ``(1) In general.--Whenever the Secretary determines that the 
    full amount of the sums allotted under any category set forth under 
    subsection (a) will not be required for applications of the local 
    educational agencies in the case of categories described in 
    paragraphs (1), (2), or (3) of subsection (a), the Secretary shall 
    make the amount not so required available to another category under 
    subsection (a). In carrying out the provisions of this subsection, 
    the Secretary shall assure that the transfer of amounts from one 
    category to another is made to a category in which there is the 
    greatest need for funds.
        ``(2) Peer review.--In order to transfer funds under this 
    subsection, the Secretary shall use a peer review process to 
    determine that such excess funds are not needed to fund projects in 
    particular categories and shall prepare a list of the categories in 
    which funds were not fully expended and the reasons therefor, and 
    make such list available to local educational agencies and 
    educational partnerships upon request. The Secretary may use the 
    peer review process to determine grant recipients of funds 
    transferred in accordance with this subsection.
    ``(e) Federal Share.--
        ``(1) Federal share.--The Federal share of a grant under this 
    part may not exceed--
            ``(A) 90 percent of the total cost of a project for the 
        first year for which the project receives assistance under this 
        part; and
            ``(B) 75 percent of such cost in each such succeeding 
        fiscal year.
        ``(2) Remaining costs.--The remaining cost of a project that 
    receives assistance under this part may be paid from any source 
    other than funds made available under this part, except that not 
    more than 10 percent of the remaining cost in any fiscal year may 
    be provided from Federal sources other than this part.
        ``(3) Non-federal share.--The share of payments from sources 
    other than funds made available under this part may be in cash or 
    in kind fairly evaluated, including plant, equipment or services.

``SEC. 5404. APPLICATION.

    ``(a) Application Required.--
        ``(1) In general.--A grant under this part may be made only to 
    a local educational agency or an educational partnership which 
    submits an application to the Secretary containing such information 
    as may be required by the Secretary by regulation.
        ``(2) Duration.--Each such application shall be for a three-
    year period.
    ``(b) Contents.--Each such application shall--
        ``(1) provide documentation of--
            ``(A) the number of children who were enrolled in the 
        schools to be served by the applicant for the five academic 
        years prior to the date application is made who have not 
        completed their elementary or secondary education and who are 
        classified as school dropouts; and
            ``(B) the percentage that such number of children is of the 
        total school-age population in the applicant's schools;
        ``(2) include a plan for the development and implementation of 
    a school dropout information collection and reporting system for 
    documenting the extent and nature of the dropout problem, which 
    system shall collect and cross tabulate data, where feasible, by 
    sex according to race or ethnicity and socioeconomic status;
        ``(3) include a plan for coordinated activities involving not 
    less than one secondary school and its feeder junior high or middle 
    schools and elementary schools for local educational agencies that 
    have feeder systems;
        ``(4) when applicable, describe how programs assisted under 
    this part will be coordinated with, and not duplicate, programs 
    assisted under title I;
        ``(5) include a description of how the program assisted under 
    this part is consistent with the second National Education Goal, 
    relating to school completion, and other Federal programs as 
    appropriate; and
        ``(6) contain such other information as the Secretary considers 
    necessary to determine the nature of the local needs, the quality 
    of the proposed project, and the capability of the applicant to 
    carry out the project.
    ``(c) Priority.--The Secretary shall, in approving applications 
under this section, give priority to applications which--
        ``(1) demonstrate the replication of successful programs 
    conducted in other local educational agencies or the expansion of 
    successful programs within a local educational agency; and
        ``(2) reflect very high numbers or very high percentages of 
    school dropouts in the schools of the applicant in each category 
    described in section 5303(a).
    ``(d) Special Consideration.--The Secretary shall give additional 
special consideration to applications that include--
        ``(1) provisions which emphasize early intervention services 
    designed to identify at-risk students in elementary or early 
    secondary schools; and
        ``(2) provisions for significant parental involvement.
    ``(e) Grants for New Grantees.--In awarding grants under this part 
the Secretary shall use only the priorities and special considerations 
described in subsections (c) and (d).
    ``(f) Continuation of Assistance.--For the two fiscal years 
beginning after the date of enactment of the Improving America's 
Schools Act of 1994, the Secretary shall approve an application under 
this section for a local educational agency which received funding in 
fiscal year 1994 under the School Dropout Demonstration Assistance Act 
of 1988 (20 U.S.C. 3241 et seq.) and which--
        ``(1) satisfies the requirements of this section;
        ``(2) qualifies for special consideration or priority under--
            ``(A) section 5303(b); and
            ``(B) subsections (c) and (d) of this section; and
        ``(3) provides evidence that the program for which such agency 
    is seeking assistance is effective in--
            ``(A) providing early intervention services to at-risk 
        students in elementary and secondary schools;
            ``(B) identifying potential student dropouts; and
            ``(C) preventing students from dropping out of school.

``SEC. 5305. AUTHORIZED ACTIVITIES.

    ``Grants under this part shall be used to carry out activities and 
services described in applications approved under section 5304. In 
addition, grants may be used for educational, occupational, and basic 
skills testing services and activities, including--
        ``(1) the establishment of systemwide or school-level policies, 
    procedures, and plans for dropout prevention and school reentry;
        ``(2) the development and implementation of activities, 
    including extended day or summer programs, designed to address poor 
    achievement, basic skills deficiencies, language deficiencies, or 
    course failures, in order to assist students at risk of dropping 
    out of school and students reentering school, including youth 
    returning to school from a correctional or other facility operated 
    for delinquent youth;
        ``(3) the establishment or expansion of work-study, apprentice, 
    or internship programs;
        ``(4) the use of resources of the community, including 
    contracting with public or private entities or community-based 
    organizations of demonstrated performance, to provide services to 
    the grant recipient or the target population;
        ``(5) the evaluation and revision of program placement of 
    students at risk;
        ``(6) the evaluation of program effectiveness of dropout 
    programs;
        ``(7) the development and implementation of programs for 
    traditionally underserved groups of students;
        ``(8) the implementation of activities which will improve 
    student motivation and the school learning environment;
        ``(9) the provision of training for school personnel on 
    strategies and techniques designed to--
            ``(A) identify children at risk of dropping out of school;
            ``(B) intervene in the instructional program for such 
        children with support and remedial services;
            ``(C) develop realistic expectations for student 
        performance; and
            ``(D) improve student-staff interactions;
        ``(10) the study of the relationship between drugs and school 
    dropouts and between youth gangs and school dropouts, and the 
    coordination of dropout prevention and reentry programs with 
    appropriate drug prevention and community organizations for the 
    prevention of youth gangs;
        ``(11) the study of the relationship between disabling 
    conditions and student dropouts;
        ``(12) the study of the relationship between the dropout rate 
    for gifted and talented students compared to the dropout rate for 
    the general student enrollment;
        ``(13) the use of educational telecommunications and 
    broadcasting technologies and educational materials designed to 
    extend, motivate, and reinforce school, community, and home dropout 
    prevention and reentry activities;
        ``(14) the development and implementation of efforts to 
    identify and address factors in a student's decision to drop out of 
    school that are related to gender and family roles, including 
    activities and services designed to meet the needs of pregnant and 
    parenting teenagers;
        ``(15) the provision of other educational, occupational and 
    testing services and activities which directly relate to the 
    purpose of this part;
        ``(16) activities which offer jobs and college admissions for 
    successful completion of the program for which assistance is 
    sought;
        ``(17) summer employment programs;
        ``(18) occupational training programs;
        ``(19) career opportunity and skills counseling;
        ``(20) job placement services;
        ``(21) the development of skill employment competency testing 
    programs;
        ``(22) special school staff training projects; and
        ``(23) mentoring programs.

``SEC. 5306. DISTRIBUTION OF ASSISTANCE; LIMITATION ON COSTS.

    ``(a) Distribution of Assistance.--The Secretary shall ensure that, 
to the extent practicable, in approving grant applications under this 
part--
        ``(1) grants are equitably distributed on a geographic basis 
    within each category set forth in section 5303(a);
        ``(2) the amount of a grant to a local educational agency or an 
    educational partnership for a fiscal year is proportionate to the 
    extent and severity of the local school dropout problem;
        ``(3) not less than 30 percent of the amount available for 
    grants in each fiscal year is used for activities relating to 
    school dropout prevention; and
        ``(4) not less than 30 percent of the amount available for 
    grants in each fiscal year is used for activities relating to 
    persuading school dropouts to return to school and assisting former 
    school dropouts with specialized services once school dropouts 
    return to school.
    ``(b) Administrative Costs.--Not more than five percent of any 
grant made under this part may be used for administrative costs.

``SEC. 5307. REPORTS.

    ``(a) Annual Reports.--The Secretary shall submit to the Congress a 
report by January 1 of each year, beginning on January 1, 1995, which 
sets forth the progress of the Commissioner of Education Statistics, 
established under section 403(b) of the National Education Statistics 
Act of 1994, to implement a definition and data collection process for 
school dropouts in elementary and secondary schools, including 
statistical information for the number and percentage of elementary and 
secondary school students by gender, race, and ethnic origin who drop 
out of school each year, including dropouts--
        ``(1) throughout the Nation by rural and urban location as 
    defined by the Secretary; and
        ``(2) in each of the individual States and the District of 
    Columbia.
    ``(b) Recommendations.--The report under subsection (a) shall also 
contain recommendations on ways in which the Federal Government, States 
and localities can further support the implementation of an effective 
methodology to accurately measure school dropout and retention rates on 
the national, State, and local levels.

``SEC. 5308. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $50,000,000 for fiscal 
year 1995, and such sums as may be necessary for each of the 4 
succeeding fiscal years, to carry out this part.

          ``TITLE VI--INNOVATIVE EDUCATION PROGRAM STRATEGIES

``SEC. 6001. FINDINGS AND STATEMENT OF PURPOSE.

    ``(a) Findings.--The Congress finds that chapter 2 of title I of 
this Act (as such chapter was in effect on the day preceding the date 
of enactment of the Improving America's Schools Act of 1994) has been 
successful in achieving the goals of increasing local flexibility, 
reducing administrative burden, providing services for private school 
students, encouraging innovation, and contributing to the improvement 
of elementary and secondary educational programs.
    ``(b) Statement of Purpose.--It is the purpose of programs under 
this title--
        ``(1) to support local education reform efforts which are 
    consistent with and support statewide reform efforts under Goals 
    2000: Educate America Act;
        ``(2) to support State and local efforts to accomplish the 
    National Education Goals;
        ``(3) to provide funding to enable State and local educational 
    agencies to implement promising educational reform programs;
        ``(4) to provide a continuing source of innovation, and 
    educational improvement, including support for library services and 
    instructional and media materials; and
        ``(5) to meet the special educational needs of at risk and high 
    cost students.
    ``(c) State and Local Responsibility.--The basic responsibility for 
the administration of funds made available under this title is within 
the State educational agencies, but it is the intent of Congress that 
the responsibility be carried out with a minimum of paperwork and that 
the responsibility for the design and implementation of programs 
assisted under this title will be mainly that of local educational 
agencies, school superintendents and principals, and classroom teachers 
and supporting personnel, because such agencies and individuals have 
the most direct contact with students and are most likely to be able to 
design programs to meet the educational needs of students in their own 
school districts.
``SEC. 6002. AUTHORIZATION OF APPROPRIATIONS; DURATION OF ASSISTANCE.
    ``(a) Authorization.--To carry out the purposes of this title, 
there are authorized to be appropriated $370,000,000 for fiscal year 
1995 and such sums as may be necessary for each of the four succeeding 
fiscal years.
    ``(b) Duration of Assistance.--During the period beginning October 
1, 1994, and ending September 30, 1999, the Secretary shall, in 
accordance with the provisions of this title, make payments to State 
educational agencies for the purpose of this title.

``SEC. 6003. DEFINITION.

    ``For the purposes of this title the term `effective schools 
programs' means school-based programs that may encompass preschool 
through secondary school levels and that have the objectives of (1) 
promoting school-level planning, instructional improvement, and staff 
development, (2) increasing the academic achievement levels of all 
children and particularly educationally disadvantaged children, and (3) 
achieving as ongoing conditions in the school the following factors 
identified through effective schools research as distinguishing 
effective from ineffective schools:
        ``(A) Strong and effective administrative and instructional 
    leadership that creates consensus on instructional goals and 
    organizational capacity for instructional problem solving.
        ``(B) Emphasis on the acquisition of basic and higher order 
    skills.
        ``(C) A safe and orderly school environment that allows 
    teachers and pupils to focus their energies on academic 
    achievement.
        ``(D) A climate of expectation that virtually all children can 
    learn under appropriate conditions.
        ``(E) Continuous assessment of students and programs to 
    evaluate the effects of instruction.

                   ``PART A--STATE AND LOCAL PROGRAMS

``SEC. 6101. ALLOTMENT TO STATES.

    ``(a) Reservations.--From the sums appropriated to carry out this 
title in any fiscal year, the Secretary shall reserve not to exceed one 
percent for payments to outlying areas to be allotted in accordance 
with their respective needs.
    ``(b) Allotment.--From the remainder of such sums, the Secretary 
shall allot to each State an amount which bears the same ratio to the 
amount of such remainder as the school-age population of the State 
bears to the school-age population of all States, except that no State 
shall receive less than an amount equal to one-half of one percent of 
such remainder.
    ``(c) Definitions.--For purposes of this part:
        ``(1) The term `school-age population' means the population 
    aged 5 through 17.
        ``(2) The term `States' includes the 50 States, the District of 
    Columbia, and the Commonwealth of Puerto Rico.

``SEC. 6102. ALLOCATION TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) Distribution Rule.--From the sums made available each year to 
carry out this title, the State educational agency shall distribute not 
less than 85 percent to local educational agencies within such State 
according to the relative enrollments in public and private, nonprofit 
schools within the school districts of such agencies, adjusted, in 
accordance with criteria approved by the Secretary, to provide higher 
per pupil allocations to local educational agencies which have the 
greatest numbers or percentages of children whose education imposes a 
higher than average cost per child, such as--
        ``(1) children living in areas with high concentrations of low-
    income families;
        ``(2) children from low-income families; and
        ``(3) children living in sparsely populated areas.
    ``(b) Calculation of Enrollments.--
        ``(1) In general.--The calculation of relative enrollments 
    under subsection (a) shall be on the basis of the total of--
            ``(A) the number of children enrolled in public schools; 
        and
            ``(B) the number of children enrolled in private nonprofit 
        schools that desire that their children participate in programs 
        or projects assisted under this title, for the fiscal year 
        preceding the fiscal year for which the determination is made.
        ``(2) Construction.--Nothing in this subsection shall diminish 
    the responsibility of local educational agencies to contact, on an 
    annual basis, appropriate officials from private nonprofit schools 
    within the areas served by such agencies in order to determine 
    whether such schools desire that their children participate in 
    programs assisted under this part.
        ``(3) Adjustments.--(A) Relative enrollments under subsection 
    (a) shall be adjusted, in accordance with criteria approved by the 
    Secretary under subparagraph (B), to provide higher per pupil 
    allocations only to local educational agencies which serve the 
    greatest numbers or percentages of--
            ``(i) children living in areas with high concentrations of 
        low-income families;
            ``(ii) children from low-income families; or
            ``(iii) children living in sparsely populated areas.
        ``(B) The Secretary shall review criteria submitted by a State 
    educational agency for adjusting allocations under paragraph (1) 
    and shall approve such criteria only if the Secretary determines 
    that such criteria are reasonably calculated to produce an adjusted 
    allocation that reflects the relative needs within the State's 
    local educational agencies based on the factors set forth in 
    subparagraph (A).
    ``(c) Payment of Allocations.--
        ``(1) Distribution.--From the funds paid to a State educational 
    agency pursuant to section 6002 for a fiscal year, a State 
    educational agency shall distribute to each eligible local 
    educational agency which has submitted an application as required 
    in section 6202 the amount of such local educational agency 
    allocation as determined under subsection (a).
        ``(2) Additional funds.--(A) Additional funds resulting from 
    higher per pupil allocations provided to a local educational agency 
    on the basis of adjusted enrollments of children described in 
    subsection (a), may, at the discretion of the local educational 
    agency, be allocated for expenditures to provide services for 
    children enrolled in public and private nonprofit schools in direct 
    proportion to the number of children described in subsection (a) 
    and enrolled in such schools within the local educational agency.
        ``(B) In any fiscal year, any local educational agency that 
    elects to allocate such additional funds in the manner described in 
    subparagraph (A) shall allocate all additional funds to schools 
    within the local educational agency in such manner.
        ``(C) The provisions of subparagraphs (A) and (B) may not be 
    construed to require any school to limit the use of such additional 
    funds to the provision of services to specific students or 
    categories of students.

                        ``PART B--STATE PROGRAMS

``SEC. 6201. STATE USES OF FUNDS.

    ``(a) Authorized Activities.--A State educational agency may use 
funds made available for State use under this title only for--
        ``(1) State administration of programs under this title 
    including--
            ``(A) supervision of the allocation of funds to local 
        educational agencies;
            ``(B) planning, supervision, and processing of State funds; 
        and
            ``(C) monitoring and evaluation of programs and activities 
        under this title; and
        ``(2) technical assistance and direct grants to local 
    educational agencies and statewide education reform activities 
    including effective schools programs which assist local educational 
    agencies to provide targeted assistance.
    ``(b) Limitations and Requirements.--Not more than 25 percent of 
funds available for State programs under this title in any fiscal year 
may be used for State administration under subsection (a)(1).

``SEC. 6202. STATE APPLICATIONS.

    ``(a) Application Requirements.--Any State which desires to receive 
assistance under this part shall submit to the Secretary an application 
which--
        ``(1) designates the State educational agency as the State 
    agency responsible for administration and supervision of programs 
    assisted under this title;
        ``(2)(A) provides for a biennial submission of data on the use 
    of funds, the types of services furnished, and the students served 
    under this title; and
        ``(B) in fiscal year 1998 provides for an evaluation of the 
    effectiveness of programs assisted under this title;
        ``(3) sets forth the allocation of such funds required to 
    implement section 6402;
        ``(4) provides that the State educational agency will keep such 
    records and provide such information to the Secretary as may be 
    required for fiscal audit and program evaluation (consistent with 
    the responsibilities of the Secretary under this section);
        ``(5) provides assurance that, apart from technical and 
    advisory assistance and monitoring compliance with this title, the 
    State educational agency has not exercised and will not exercise 
    any influence in the decisionmaking processes of local educational 
    agencies as to the expenditure made pursuant to an application 
    under section 6303;
        ``(6) contains assurances that there is compliance with the 
    specific requirements of this title; and
        ``(7) provides for timely public notice and public 
    dissemination of the information provided pursuant to paragraph 
    (2).
    ``(b) Period of Application.--An application filed by the State 
under subsection (a) shall be for a period not to exceed three years, 
and may be amended annually as may be necessary to reflect changes 
without filing a new application.
    ``(c) Audit Rule.--Local educational agencies receiving less than 
an average of $5,000 each under this title shall not be audited more 
frequently than once every five years.

             ``PART C--LOCAL INNOVATIVE EDUCATION PROGRAMS

``SEC. 6301. TARGETED USE OF FUNDS.

    ``(a) General Rule.--Funds made available to local educational 
agencies under section 6102 shall be used for innovative assistance 
described in subsection (b).
    ``(b) Innovative Assistance.--The innovative assistance programs 
referred to in subsection (a) include--
        ``(1) technology related to the implementation of school-based 
    reform programs, including professional development to assist 
    teachers and other school officials regarding how to use 
    effectively such equipment and software;
        ``(2) programs for the acquisition and use of instructional and 
    educational materials, including library services and materials 
    (including media materials), assessments, reference materials, 
    computer software and hardware for instructional use, and other 
    curricular materials which are tied to high academic standards and 
    which will be used to improve student achievement and which are 
    part of an overall education reform program;
        ``(3) promising education reform projects, including effective 
    schools and magnet schools;
        ``(4) programs to improve the higher order thinking skills of 
    disadvantaged elementary and secondary school students and to 
    prevent students from dropping out of school;
        ``(5) programs to combat illiteracy in the student and adult 
    population, including parent illiteracy;
        ``(6) programs to provide for the educational needs of gifted 
    and talented children;
        ``(7) school reform activities that are consistent with the 
    Goals 2000: Educate America Act; and
        ``(8) school improvement programs or activities under sections 
    1116 and 1117.

``SEC. 6302. ADMINISTRATIVE AUTHORITY.

    ``In order to conduct the activities authorized by this title, each 
State or local educational agency may use funds reserved for this title 
to make grants to and to enter into contracts with local educational 
agencies, institutions of higher education, libraries, museums, and 
other public and private nonprofit agencies, organizations, and 
institutions.

``SEC. 6303. LOCAL APPLICATIONS.

    ``(a) Contents of Application.--A local educational agency or 
consortium of such agencies may receive an allocation of funds under 
this title for any year for which an application is submitted to the 
State educational agency and such application is certified to meet the 
requirements of this section. The State educational agency shall 
certify any such application if such application--
        ``(1)(A) sets forth the planned allocation of funds among 
    innovative assistance programs described in section 6301 and 
    describes the programs, projects, and activities designed to carry 
    out such innovative assistance which the local educational agency 
    intends to support, together with the reasons for the selection of 
    such programs, projects, and activities; and
        ``(B) sets forth the allocation of such funds required to 
    implement section 6402;
        ``(2) describes how assistance under this title will contribute 
    to meeting the National Education Goals and improving student 
    achievement or improving the quality of education for students;
        ``(3) provide assurances of compliance with the provisions of 
    this title, including the participation of children enrolled in 
    private, nonprofit schools in accordance with section 6402;
        ``(4) agrees to keep such records, and provide such information 
    to the State educational agency as reasonably may be required for 
    fiscal audit and program evaluation, consistent with the 
    responsibilities of the State agency under this title; and
        ``(5) provides in the allocation of funds for the assistance 
    authorized by this title, and in the design, planning and 
    implementation of such programs, for systematic consultation with 
    parents of children attending elementary and secondary schools in 
    the area served by the local educational agency, with teachers and 
    administrative personnel in such schools, and with other groups 
    involved in the implementation of this title (such as librarians, 
    school counselors, and other pupil services personnel) as may be 
    considered appropriate by the local educational agency.
    ``(b) Period of Application.--An application filed by a local 
educational agency under subsection (a) shall be for a period not to 
exceed three fiscal years, may provide for the allocation of funds to 
programs for a period of three years, and may be amended annually as 
may be necessary to reflect changes without filing a new application.
    ``(c) Local Educational Agency Discretion.--Subject to the 
limitations and requirements of this title, a local educational agency 
shall have complete discretion in determining how funds under this part 
shall be divided among the areas of targeted assistance. In exercising 
such discretion, a local educational agency shall ensure that 
expenditures under this part carry out the purposes of this title and 
are used to meet the educational needs within the schools of such local 
educational agency.

              ``PART D--GENERAL ADMINISTRATIVE PROVISIONS

``SEC. 6401. MAINTENANCE OF EFFORT; FEDERAL FUNDS SUPPLEMENTARY.
    ``(a) Maintenance of Effort.--
        ``(1) In general.--Except as provided in paragraph (2), a State 
    is entitled to receive its full allocation of funds under this part 
    for any fiscal year if the Secretary finds that either the combined 
    fiscal effort per student or the aggregate expenditures within the 
    State with respect to the provision of free public education for 
    the fiscal year preceding the fiscal year for which the 
    determination is made was not less than 90 percent of such combined 
    fiscal effort or aggregate expenditures for the second fiscal year 
    preceding the fiscal year for which the determination is made.
        ``(2) Reduction of funds.--The Secretary shall reduce the 
    amount of the allocation of funds under this part in any fiscal 
    year in the exact proportion to which the State fails to meet the 
    requirements of paragraph (1) by falling below 90 percent of both 
    the fiscal effort per student and aggregate expenditures (using the 
    measure most favorable to the State), and no such lesser amount 
    shall be used for computing the effort required under paragraph (1) 
    for subsequent years.
        ``(3) Waivers.--The Secretary may waive, for one fiscal year 
    only, the requirements of this section if the Secretary determines 
    that such a waiver would be equitable due to exceptional or 
    uncontrollable circumstances such as a natural disaster or a 
    precipitous and unforeseen decline in the financial resources of 
    the State.
    ``(b) Federal Funds Supplementary.--A State or local educational 
agency may use and allocate funds received under this part only so as 
to supplement and, to the extent practical, increase the level of funds 
that would, in the absence of Federal funds made available under this 
part, be made available from non-Federal sources, and in no case may 
such funds be used so as to supplant funds from non-Federal sources.
``SEC. 6402. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.
    ``(a) Participation on Equitable Basis.--
        ``(1) In general.--To the extent consistent with the number of 
    children in the school district of a local educational agency which 
    is eligible to receive funds under this title or which serves the 
    area in which a program or project assisted under this title is 
    located who are enrolled in private nonprofit elementary and 
    secondary schools, or with respect to instructional or personnel 
    training programs funded by the State educational agency from funds 
    made available for State use, such agency, after consultation with 
    appropriate private school officials, shall provide for the benefit 
    of such children in such schools secular, neutral, and 
    nonideological services, materials, and equipment, including the 
    participation of the teachers of such children (and other 
    educational personnel serving such children) in training programs, 
    and the repair, minor remodeling, or construction of public 
    facilities as may be necessary for their provision (consistent with 
    subsection (c) of this section), or, if such services, materials, 
    and equipment are not feasible or necessary in one or more such 
    private schools as determined by the local educational agency after 
    consultation with the appropriate private school officials, shall 
    provide such other arrangements as will assure equitable 
    participation of such children in the purposes and benefits of this 
    title.
        ``(2) Other provisions for services.--If no program or project 
    is carried out under paragraph (1) in the school district of a 
    local educational agency, the State educational agency shall make 
    arrangements, such as through contracts with nonprofit agencies or 
    organizations, under which children in private schools in such 
    district are provided with services and materials to the extent 
    that would have occurred if the local educational agency had 
    received funds under this title.
        ``(3) Application of requirements.--The requirements of this 
    section relating to the participation of children, teachers, and 
    other personnel serving such children shall apply to programs and 
    projects carried out under this title by a State or local 
    educational agency, whether directly or through grants to or 
    contracts with other public or private agencies, institutions, or 
    organizations.
    ``(b) Equal Expenditures.--Expenditures for programs pursuant to 
subsection (a) shall be equal (consistent with the number of children 
to be served) to expenditures for programs under this title for 
children enrolled in the public schools of the local educational 
agency, taking into account the needs of the individual children and 
other factors which relate to such expenditures, and when funds 
available to a local educational agency under this title are used to 
concentrate programs or projects on a particular group, attendance 
area, or grade or age level, children enrolled in private schools who 
are included within the group, attendance area, or grade or age level 
selected for such concentration shall, after consultation with the 
appropriate private school officials, be assured equitable 
participation in the purposes and benefits of such programs or 
projects.
    ``(c) Funds.--
        ``(1) Administration of funds and property.--The control of 
    funds provided under this title, and title to materials, equipment, 
    and property repaired, remodeled, or constructed with such funds, 
    shall be in a public agency for the uses and purposes provided in 
    this title, and a public agency shall administer such funds and 
    property.
        ``(2) Provision of services.--The provision of services 
    pursuant to this title shall be provided by employees of a public 
    agency or through contract by such public agency with a person, an 
    association, agency, or corporation who or which, in the provision 
    of such services, is independent of such private school and of any 
    religious organizations, and such employment or contract shall be 
    under the control and supervision of such public agency, and the 
    funds provided under this title shall not be commingled with State 
    or local funds.
    ``(d) State Prohibition Waiver.--If by reason of any provision of 
law a State or local educational agency is prohibited from providing 
for the participation in programs of children enrolled in private 
elementary and secondary schools, as required by this section, the 
Secretary shall waive such requirements and shall arrange for the 
provision of services to such children through arrangements which shall 
be subject to the requirements of this section.
    ``(e) Waiver and Provision of Services.--
        ``(1) Failure to comply.--If the Secretary determines that a 
    State or a local educational agency has substantially failed or is 
    unwilling to provide for the participation on an equitable basis of 
    children enrolled in private elementary and secondary schools as 
    required by this section, the Secretary may waive such requirements 
    and shall arrange for the provision of services to such children 
    through arrangements which shall be subject to the requirements of 
    this section.
        ``(2) Withholding of allocation.--Pending final resolution of 
    any investigation or complaint that could result in a determination 
    under this subsection or subsection (d), 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.
    ``(f) Determination.--Any determination by the Secretary under this 
section shall continue in effect until the Secretary determines that 
there will no longer be any failure or inability on the part of the 
State or local educational agency to meet the requirements of 
subsections (a) and (b).
    ``(g) Payment From State Allotment.--When the Secretary arranges 
for services pursuant to this section, the Secretary shall, after 
consultation with the appropriate public and private school officials, 
pay the cost of such services, including the administrative costs of 
arranging for those services, from the appropriate allotment of the 
State under this title.
    ``(h) Review.--
        ``(1) Written objections.--The Secretary shall not take any 
    final action under this section until the State educational agency 
    and the local educational agency affected by such action have had 
    an opportunity, for not less than 45 days after receiving written 
    notice thereof, to submit written objections and to appear before 
    the Secretary or the Secretary's designee to show cause why that 
    action should not be taken.
        ``(2) Court action.--If a State or local educational agency is 
    dissatisfied with the Secretary's final action after a proceeding 
    under paragraph (1), such agency may, not later than 60 days after 
    notice of such action, file with the United States court of appeals 
    for the circuit in which such State is located a petition for 
    review of that action. A copy of the petition shall be transmitted 
    by the clerk of the court to the Secretary. The Secretary thereupon 
    shall file in the court the record of the proceedings on which the 
    Secretary based this action, as provided in section 2112 of title 
    28, United States Code.
        ``(3) Remand to secretary.--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 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. Such new or modified findings of fact 
    shall likewise be conclusive if supported by substantial evidence.
        ``(4) Court review.--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. 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.
    ``(i) Prior Determination.--Any bypass determination by the 
Secretary under chapter 2 of title I of this Act (as such chapter was 
in effect on the day preceding the date of enactment of the Improving 
America's Schools Act of 1994) shall, to the extent consistent with the 
purposes of this title, apply to programs under this title.

``SEC. 6403. FEDERAL ADMINISTRATION.

    ``(a) Technical Assistance.--The Secretary, upon request, shall 
provide technical assistance to State and local educational agencies 
under this title.
    ``(b) Rulemaking.--The Secretary shall issue regulations under this 
title only to the extent that such regulations are necessary to ensure 
that there is compliance with the specific requirements and assurances 
required by this title.
    ``(c) Availability of Appropriations.--Notwithstanding any other 
provision of law, unless expressly in limitation of this subsection, 
funds appropriated in any fiscal year to carry out activities under 
this title shall become available for obligation on July 1 of such 
fiscal year and shall remain available for obligation until the end of 
the subsequent fiscal year.

 ``TITLE VII--BILINGUAL EDUCATION, LANGUAGE ENHANCEMENT, AND LANGUAGE 
                          ACQUISITION PROGRAMS

                     ``PART A--BILINGUAL EDUCATION

``SEC. 7101. SHORT TITLE.

    ``This part may be cited as the `Bilingual Education Act'.

``SEC. 7102. FINDINGS, POLICY, AND PURPOSE.

    ``(a) Findings.--The Congress finds that--
        ``(1) language-minority Americans speak virtually all world 
    languages plus many that are indigenous to the United States;
        ``(2) there are large and growing numbers of children and youth 
    of limited-English proficiency, many of whom have a cultural 
    heritage that differs from that of their English-proficient peers;
        ``(3) the presence of language-minority Americans is related in 
    part to Federal immigration policies;
        ``(4) many language-minority Americans are limited in their 
    English proficiency, and many have limited education and income;
        ``(5) limited English proficient children and youth face a 
    number of challenges in receiving an education that will enable 
    such children and youth to participate fully in American society, 
    including--
            ``(A) segregated education programs;
            ``(B) disproportionate and improper placement in special 
        education and other special programs due to the use of 
        inappropriate evaluation procedures;
            ``(C) the limited-English proficiency of their own parents, 
        which hinders the parents' ability to fully participate in the 
        education of their children; and
            ``(D) a shortage of teachers and other staff who are 
        professionally trained and qualified to serve such children and 
        youth;
        ``(6) Native Americans and Native American languages (as such 
    terms are defined in section 103 of the Native American Languages 
    Act), including native residents of the outlying areas, have a 
    unique status under Federal law that requires special policies 
    within the broad purposes of this Act to serve the education needs 
    of language minority students in the United States;
        ``(7) institutions of higher education can assist in preparing 
    teachers, administrators and other school personnel to understand 
    and build upon the educational strengths and needs of language-
    minority and culturally diverse student enrollments;
        ``(8) it is the purpose of this title to help ensure that 
    limited English proficient students master English and develop high 
    levels of academic attainment in content areas;
        ``(9) quality bilingual education programs enable children and 
    youth to learn English and meet high academic standards including 
    proficiency in more than one language;
        ``(10) as the world becomes increasingly interdependent and as 
    international communication becomes a daily occurrence in 
    government, business, commerce, and family life, multilingual 
    skills constitute an important national resource which deserves 
    protection and development;
        ``(11) educational technology has the potential for improving 
    the education of language-minority and limited English proficient 
    students and their families, and the Federal Government should 
    foster this development;
        ``(12) parent and community participation in bilingual 
    education programs contributes to program effectiveness;
        ``(13) research, evaluation, and data-collection capabilities 
    in the field of bilingual education need to be strengthened so that 
    educators and other staff can better identify and promote those 
    programs, program implementation strategies, and instructional 
    practices that result in effective education of limited English 
    proficient children;
        ``(14) the use of a child or youth's native language and 
    culture in classroom instruction can--
            ``(A) promote self-esteem and contribute to academic 
        achievement and learning English by limited English proficient 
        children and youth;
            ``(B) benefit English-proficient children and youth who 
        also participate in such programs; and
            ``(C) develop our Nation's national language resources, 
        thus promoting our Nation's competitiveness in the global 
        economy;
        ``(15) the Federal Government, as exemplified by title VI of 
    the Civil Rights Act of 1964 and section 204(f) of the Equal 
    Education Opportunities Act of 1974, has a special and continuing 
    obligation to ensure that States and local school districts take 
    appropriate action to provide equal educational opportunities to 
    children and youth of limited English proficiency; and
        ``(16) the Federal Government also, as exemplified by the 
    Federal Government's efforts under this title, has a special and 
    continuing obligation to assist States and local school districts 
    in developing the capacity to provide programs of instruction that 
    offer limited English proficient children and youth an equal 
    educational opportunity.
    ``(b) Policy.--The Congress declares it to be the policy of the 
United States, in order to ensure equal educational opportunity for all 
children and youth and to promote educational excellence, to assist 
State and local educational agencies, institutions of higher education 
and community-based organizations to build their capacity to establish, 
implement, and sustain programs of instruction for children and youth 
of limited English proficiency.
    ``(c) Purpose.--The purpose of this part is to educate limited 
English proficient children and youth to meet the same rigorous 
standards for academic performance expected of all children and youth, 
including meeting challenging State content standards and challenging 
State student performance standards in academic areas by--
        ``(1) developing systemic improvement and reform of educational 
    programs serving limited English proficient students through the 
    development and implementation of exemplary bilingual education 
    programs and special alternative instruction programs;
        ``(2) developing bilingual skills and multicultural 
    understanding;
        ``(3) developing the English of such children and youth and, to 
    the extent possible, the native language skills of such children 
    and youth;
        ``(4) providing similar assistance to Native Americans with 
    certain modifications relative to the unique status of Native 
    American languages under Federal law;
        ``(5) developing data collection and dissemination, research, 
    materials development, and technical assistance which is focused on 
    school improvement for limited English proficient students; and
        ``(6) developing programs which strengthen and improve the 
    professional training of educational personnel who work with 
    limited English proficient students.

``SEC. 7103. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--For the purpose of carrying out this part, there 
are authorized to be appropriated $215,000,000 for the fiscal year 1995 
and such sums as may be necessary for each of the four succeeding 
fiscal years.
    ``(b) Distribution.--From the sums appropriated under subsection 
(a) for any fiscal year, the Secretary shall reserve not less than 25 
percent of such funds for such year to carry out subpart 3.
``SEC. 7104. NATIVE AMERICAN AND ALASKA NATIVE CHILDREN IN SCHOOL.
    ``(a) Eligible Entities.--For the purpose of carrying out programs 
under this part for individuals served by elementary, secondary, and 
postsecondary schools operated predominately for Native American or 
Alaska Native children and youth, an Indian tribe, a tribally 
sanctioned educational authority, a Native Hawaiian or Native American 
Pacific Islander native language education organization, or an 
elementary or secondary school that is operated or funded by the Bureau 
of Indian Affairs shall be considered to be a local educational agency 
as such term is used in this part, subject to the following 
qualifications:
        ``(1) Indian tribe.--The term `Indian tribe' means any Indian 
    tribe, band, nation, or other organized group or community, 
    including any Alaska Native village or regional or village 
    corporation as defined in or established pursuant to the Alaska 
    Native Claims Settlement Act (43 U.S.C. 1601 et seq.), that is 
    recognized for the special programs and services provided by the 
    United States to Indians because of their status as Indians.
        ``(2) Tribally sanctioned educational authority.--The term 
    `tribally sanctioned educational authority' means--
            ``(A) any department or division of education operating 
        within the administrative structure of the duly constituted 
        governing body of an Indian tribe; and
            ``(B) any nonprofit institution or organization that is--
                ``(i) chartered by the governing body of an Indian 
            tribe to operate any such school or otherwise to oversee 
            the delivery of educational services to members of that 
            tribe; and
                ``(ii) approved by the Secretary for the purpose of 
            this section.
    ``(b) Eligible Entity Application.--Notwithstanding any other 
provision of this part, each eligible entity described in subsection 
(a) shall submit any application for assistance under this part 
directly to the Secretary along with timely comments on the need for 
the proposed program.
``SEC. 7105. RESIDENTS OF THE TERRITORIES AND FREELY ASSOCIATED 
NATIONS.
    ``For the purpose of carrying out programs under this part in the 
outlying areas, the term `local educational agency' shall include 
public institutions or agencies whose mission is the preservation and 
maintenance of native languages.

   ``Subpart 1--Bilingual Education Capacity and Demonstration Grants

``SEC. 7111. FINANCIAL ASSISTANCE FOR BILINGUAL EDUCATION.

    ``The purpose of this subpart is to assist local educational 
agencies, institutions of higher education, and community-based 
organizations, through the grants authorized under sections 7112, 7113, 
7114, and 7115 to--
        ``(1) develop and enhance their capacity to provide high-
    quality instruction through bilingual education or special 
    alternative instruction programs to children and youth of limited 
    English proficiency; and
        ``(2) to help such children and youth--
            ``(A) develop proficiency in English, and to the extent 
        possible, their native language; and
            ``(B) meet the same challenging State content standards and 
        challenging State student performance standards expected for 
        all children and youth as required by section 1111(b).

``SEC. 7112. PROGRAM DEVELOPMENT AND IMPLEMENTATION GRANTS.

    ``(a) Purpose.--The purpose of this section is to develop and 
implement new comprehensive, coherent, and successful bilingual 
education or special alternative instructional programs for limited 
English proficient students, including programs of early childhood 
education, kindergarten through twelfth grade education, gifted and 
talented education, and vocational and applied technology education.
    ``(b) Program Authorized.--
        ``(1) Authority.--(A) The Secretary is authorized to award 
    grants to eligible entities having applications approved under 
    section 7116 to enable such entities to carry out activities 
    described in paragraph (2).
        ``(B) Each grant under this section shall be awarded for a 
    period of three years.
        ``(2) Authorized activities.--(A) Grants awarded under this 
    section shall be used to improve the education of limited English 
    proficient students and their families by--
            ``(i) developing and implementing comprehensive preschool, 
        elementary, or secondary bilingual education or special 
        alternative instructional programs that are coordinated with 
        other relevant programs and services to meet the full range of 
        educational needs of limited English proficient students; and
            ``(ii) providing inservice training to classroom teachers, 
        administrators, and other school or community-based 
        organizational personnel to improve the instruction and 
        assessment of language-minority and limited English proficient 
        students.
        ``(B) Grants under this section may be used to improve the 
    education of limited English proficient students and their families 
    by--
            ``(i) implementing family education programs and parent 
        outreach and training activities designed to assist parents to 
        become active participants in the education of their children;
            ``(ii) improving the instructional program for limited 
        English proficient students by identifying, acquiring, and 
        upgrading curriculum, instructional materials, educational 
        software and assessment procedures and, if appropriate, 
        applying educational technology;
            ``(iii) compensating personnel, including teacher aides who 
        have been specifically trained, or are being trained, to 
        provide services to children and youth of limited English 
        proficiency;
            ``(iv) providing tutorials and academic or career 
        counseling for children and youth of limited-English 
        proficiency; and
            ``(v) providing such other activities, related to the 
        purposes of this part, as the Secretary may approve.
    ``(c) Eligible Entity.--For the purpose of this section the term 
`eligible entity' means--
        ``(1) one or more local educational agencies;
        ``(2) one or more local educational agencies in collaboration 
    with an institution of higher education, community-based 
    organization or local or State educational agency; or
        ``(3) a community-based organization or an institution of 
    higher education which has an application approved by the local 
    educational agency to develop and implement early childhood 
    education or family education programs or to conduct an 
    instructional program which supplements the educational services 
    provided by a local educational agency.
    ``(d) Due Consideration.--In awarding grants under this section, 
the Secretary shall give due consideration to the need for early 
childhood education, elementary education, and secondary education 
programs.

``SEC. 7113. PROGRAM ENHANCEMENT PROJECTS.

    ``(a) Purpose.--The purpose of this section is to carry out highly 
focused, innovative, locally designed projects to expand or enhance 
existing bilingual education or special alternative instructional 
programs for limited English proficient students.
    ``(b) Program Authorized.--
        ``(1) Authority.--(A) The Secretary is authorized to award 
    grants to eligible entities having applications approved under 
    section 7116 to enable such entities to carry out activities 
    described in paragraph (2).
        ``(B) Each grant under this section shall be awarded for a 
    period of two years.
        ``(2) Authorized activities.--(A) Grants under this section 
    shall be used for providing inservice training to classroom 
    teachers, administrators, and other school or community-based 
    organization personnel to improve the instruction and assessment of 
    language-minority and limited English proficient students.
        ``(B) Grants under this section may be used for--
            ``(i) implementing family education programs and parent 
        outreach and training activities designed to assist parents to 
        become active participants in the education of their children;
            ``(ii) improving the instructional program for limited 
        English proficient students by identifying, acquiring, and 
        upgrading curriculum, instructional materials, educational 
        software and assessment procedures and, if appropriate, 
        applying educational technology;
            ``(iii) compensating personnel, including teacher aides who 
        have been specifically trained, or are being trained, to 
        provide services to children and youth of limited-English 
        proficiency;
            ``(iv) providing tutorials and academic or career 
        counseling for children and youth of limited-English 
        proficiency;
            ``(v) providing intensified instruction; and
            ``(vi) providing such other activities, related to the 
        purposes of this part, as the Secretary may approve.
    ``(c) Eligible Entity.--For the purpose of this section the term 
`eligible entity' means--
        ``(1) one or more local educational agencies;
        ``(2) one or more local educational agencies in collaboration 
    with an institution of higher education, community-based 
    organization or local or State educational agency; or
        ``(3) a community-based organization or an institution of 
    higher education which has an application approved by the local 
    educational agency to enhance early childhood education or family 
    education programs or to conduct an instructional program which 
    supplements the educational services provided by a local 
    educational agency.

``SEC. 7114. COMPREHENSIVE SCHOOL GRANTS.

    ``(a) Purpose.--The purpose of this section is to provide financial 
assistance to eligible entities to implement schoolwide bilingual 
education programs or special alternative instruction programs for 
reforming, restructuring, and upgrading all relevant programs and 
operations, within an individual school, that serve all (or virtually 
all) children and youth of limited-English proficiency in schools with 
significant concentrations of such children and youth.
    ``(b) Program Authorized.--
        ``(1) Authority.--(A) The Secretary is authorized to award 
    grants to eligible entities having applications approved under 
    section 7116 to enable such entities to carry out activities 
    described in paragraph (3).
        ``(B) Each grant under this section shall be awarded for five 
    years.
        ``(2) Termination.--The Secretary shall terminate grants to 
    eligible entities under this section if the Secretary determines 
    that--
            ``(A) the program evaluation required by section 7123 
        indicates that students in the schoolwide program are not being 
        taught to and are not making adequate progress toward achieving 
        challenging State content standards and challenging State 
        student performance standards; or
            ``(B) in the case of a program to promote dual language 
        facility, such program is not promoting such facility.
        ``(3) Authorized activities.--Grants under this section may be 
    used to improve the education of limited English proficient 
    students and their families by--
            ``(A) implementing family education programs and parent 
        outreach and training activities designed to assist parents to 
        become active participants in the education of their children;
            ``(B) improving the instructional program for limited 
        English proficient students by identifying, acquiring and 
        upgrading curriculum, instructional materials, educational 
        software and assessment procedures and, if appropriate, 
        applying educational technology;
            ``(C) compensating personnel, including teacher aides who 
        have been specifically trained, or are being trained, to 
        provide services to children and youth of limited English 
        proficiency;
            ``(D) providing tutorials and academic or career counseling 
        for children and youth of limited-English proficiency;
            ``(E) providing intensified instruction; and
            ``(F) providing such other activities, related to the 
        purposes of this part, as the Secretary may approve.
        ``(4) Special rule.--A grant recipient, before carrying out a 
    program assisted under this section, shall plan, train personnel, 
    develop curriculum, and acquire or develop materials.
    ``(c) Eligible Entities.--For the purpose of this section the term 
`eligible entity' means--
        ``(1) one or more local educational agencies; or
        ``(2) one or more local educational agencies in collaboration 
    with an institution of higher education, community-based 
    organizations or a local or State educational agency.

``SEC. 7115. SYSTEMWIDE IMPROVEMENT GRANTS.

    ``(a) Purpose.--The purpose of this section is to implement 
districtwide bilingual education programs or special alternative 
instruction programs to improve, reform, and upgrade relevant programs 
and operations, within an entire local educational agency, that serve a 
significant number of children and youth of limited English proficiency 
in local educational agencies with significant concentrations of such 
children and youth.
    ``(b) Program Authorized.--
        ``(1) Authority.--(A) The Secretary is authorized to award 
    grants to eligible entities having applications approved under 
    section 7116 to enable such entities to carry out activities 
    described in paragraphs (3) and (4).
        ``(B) Each grant under this section shall be awarded for 5 
    years.
        ``(2) Termination.--The Secretary shall terminate grants to 
    eligible entities under this section if the Secretary determines 
    that--
            ``(A) the program evaluation required by section 7123 
        indicates that students in the program are not being taught to 
        and are not making adequate progress toward achieving 
        challenging State content standards and challenging State 
        student performance standards; or
            ``(B) in the case of a program to promote dual language 
        facility, such program is not promoting such facility.
        ``(3) Preparation.--Grants under this section may be used 
    during the first 12 months exclusively for activities preparatory 
    to the delivery of services.
        ``(4) Uses.--Grants under this section may be used to improve 
    the education of limited English proficient students and their 
    families by reviewing, restructuring, and upgrading--
            ``(A) educational goals, curriculum guidelines and content, 
        standards and assessments;
            ``(B) personnel policies and practices including 
        recruitment, certification, staff development, and assignment;
            ``(C) student grade-promotion and graduation requirements;
            ``(D) student assignment policies and practices;
            ``(E) family education programs and parent outreach and 
        training activities designed to assist parents to become active 
        participants in the education of their children;
            ``(F) the instructional program for limited English 
        proficient students by identifying, acquiring and upgrading 
        curriculum, instructional materials, educational software and 
        assessment procedures and, if appropriate, applying educational 
        technology;
            ``(G) tutorials and academic or career counseling for 
        children and youth of limited-English proficiency; and
            ``(H) such other activities, related to the purposes of 
        this part, as the Secretary may approve.
    ``(c) Eligible Entities.--For the purpose of this section the term 
`eligible entity' means--
        ``(1) one or more local educational agencies; or
        ``(2) one or more local educational agencies in collaboration 
    with an institution of higher education, community-based 
    organizations or a local or State educational agency.

``SEC. 7116. APPLICATIONS.

    ``(a) In General.--
        ``(1) Secretary.--To receive a grant under this subpart, an 
    eligible entity shall submit an application to the Secretary at 
    such time, in such form, and containing such information as the 
    Secretary may require.
        ``(2) State educational agency.--An eligible entity, with the 
    exception of schools funded by the Bureau of Indian Affairs, shall 
    submit a copy of its application under this section to the State 
    educational agency.
    ``(b) State Review and Comments.--
        ``(1) Deadline.--The State educational agency, not later than 
    45 days after receipt of an application under this section, shall 
    review the application and transmit such application to the 
    Secretary.
        ``(2) Comments.--(A) Regarding any application submitted under 
    this title, the State educational agency shall--
            ``(i) submit to the Secretary written comments regarding 
        all such applications; and
            ``(ii) submit to each eligible entity the comments that 
        pertain to such entity.
        ``(B) For purposes of this subpart, such comments shall address 
    how the eligible entity--
            ``(i) will further the academic achievement of limited 
        English proficient students served pursuant to a grant received 
        under this subpart; and
            ``(ii) how the grant application is consistent with the 
        State plan submitted under section 1111.
    ``(c) Eligible Entity Comments.--An eligible entity may submit to 
the Secretary comments that address the comments submitted by the State 
educational agency.
    ``(d) Comment Consideration.--In making grants under this subpart 
the Secretary shall take into consideration comments made by a State 
educational agency.
    ``(e) Waiver.--Notwithstanding subsection (b), the Secretary is 
authorized to waive the review requirement of subsection (b) if a State 
educational agency can demonstrate that such review requirement may 
impede such agency's ability to fulfill the requirements of 
participation in the State grant program, particularly such agency's 
data collection efforts and such agency's ability to provide technical 
assistance to local educational agencies not receiving funds under this 
Act.
    ``(f) Required Documentation.--Such application shall include 
documentation that the applicant has the qualified personnel required 
to develop, administer, and implement the proposed program.
    ``(g) Contents.--
        ``(1) In general.--An application for a grant under this 
    subpart shall contain the following:
            ``(A) A description of the need for the proposed program, 
        including data on the number of children and youth of limited-
        English proficiency in the school or school district to be 
        served and the characteristics of such children and youth, such 
        as language spoken, dropout rates, proficiency in English and 
        the native language, academic standing in relation to the 
        English-proficient peers of such children and youth, and, where 
        applicable, the recency of immigration.
            ``(B) A description of the program to be implemented and 
        how such program's design--
                ``(i) relates to the linguistic and academic needs of 
            the children and youth of limited-English proficiency to be 
            served;
                ``(ii) is coordinated with other programs under this 
            Act, the Goals 2000: Educate America Act and other Acts, as 
            appropriate, in accordance with section 14306;
                ``(iii) involves the parents of the children and youth 
            of limited-English proficiency to be served;
                ``(iv) ensures accountability in achieving high 
            academic standards; and
                ``(v) promotes coordination of services for the 
            children and youth of limited-English proficiency to be 
            served and their families.
            ``(C) A description, if appropriate, of the applicant's 
        collaborative activities with institutions of higher education, 
        community-based organizations, local or State educational 
        agencies, private schools, nonprofit organizations, or 
        businesses in carrying out the proposed program.
            ``(D) An assurance that the applicant will not reduce the 
        level of State and local funds that the applicant expends for 
        bilingual education or special alternative instruction programs 
        if the applicant receives an award under this subpart.
            ``(E) An assurance that the applicant will employ teachers 
        in the proposed program that, individually or in combination, 
        are proficient in English, including written, as well as oral, 
        communication skills.
            ``(F) A budget for grant funds.
        ``(2) Additional information.--Each application for a grant 
    under section 7114 or 7115 shall--
            ``(A) describe--
                ``(i) current services the applicant provides to 
            children and youth of limited-English proficiency;
                ``(ii) what services children and youth of limited-
            English proficiency will receive under the grant that such 
            children or youth will not otherwise receive;
                ``(iii) how funds received under this subpart will be 
            integrated with all other Federal, State, local, and 
            private resources that may be used to serve children and 
            youth of limited-English proficiency;
                ``(iv) specific achievement and school retention goals 
            for the children and youth to be served by the proposed 
            program and how progress toward achieving such goals will 
            be measured; and
                ``(v) current family education programs if applicable; 
            and
            ``(B) provide assurances that--
                ``(i) the program funded will be integrated with the 
            overall educational program; and
                ``(ii) the application has been developed in 
            consultation with an advisory council, the majority of 
            whose members are parents and other representatives of the 
            children and youth to be served in such programs.
    ``(h) Approval of Applications.--An application for a grant under 
this subpart may be approved only if the Secretary determines that--
        ``(1) the program will use qualified personnel, including 
    personnel who are proficient in the language or languages used for 
    instruction;
        ``(2) in designing the program for which application is made, 
    the needs of children in nonprofit private elementary and secondary 
    schools have been taken into account through consultation with 
    appropriate private school officials and, consistent with the 
    number of such children enrolled in such schools in the area to be 
    served whose educational needs are of the type and whose language 
    and grade levels are of a similar type to those which the program 
    is intended to address, after consultation with appropriate private 
    school officials, provision has been made for the participation of 
    such children on a basis comparable to that provided for public 
    school children;
        ``(3) student evaluation and assessment procedures in the 
    program are valid, reliable, and fair for limited English 
    proficient students, and that limited English proficient students 
    who are disabled are identified and served in accordance with the 
    requirements of the Individuals with Disabilities Education Act;
        ``(4) Federal funds made available for the project or activity 
    will be used so as to supplement the level of State and local funds 
    that, in the absence of such Federal funds, would have been 
    expended for special programs for children of limited English 
    proficient individuals and in no case to supplant such State and 
    local funds, except that nothing in this paragraph shall be 
    construed to preclude a local educational agency from using funds 
    under this title for activities carried out under an order of a 
    court of the United States or of any State respecting services to 
    be provided such children, or to carry out a plan approved by the 
    Secretary as adequate under title VI of the Civil Rights Act of 
    1964 with respect to services to be provided such children;
        ``(5) the assistance provided under the application will 
    contribute toward building the capacity of the applicant to provide 
    a program on a regular basis, similar to that proposed for 
    assistance, which will be of sufficient size, scope, and quality to 
    promise significant improvement in the education of students of 
    limited-English proficiency, and that the applicant will have the 
    resources and commitment to continue the program when assistance 
    under this subpart is reduced or no longer available; and
        ``(6) the applicant provides for utilization of the State and 
    national dissemination sources for program design and in 
    dissemination of results and products.
    ``(i) Priorities and Special Rules.--
        ``(1) Priority.--The Secretary shall give priority to 
    applications which provide for the development of bilingual 
    proficiency both in English and another language for all 
    participating students.
        ``(2) Special alternative instructional program.--Grants for 
    special alternative instructional programs under this subpart shall 
    not exceed 25 percent of the funds provided for any type of grant 
    under any section, or of the total funds provided, under this 
    subpart for any fiscal year.
        ``(3) Special rule.--Notwithstanding paragraph (2), the 
    Secretary may award grants under this subpart for special 
    alternative instructional programs if an applicant has demonstrated 
    that the applicant cannot develop and implement a bilingual 
    education program for the following reasons:
            ``(A) Where the diversity of the limited English proficient 
        students' native languages and the small number of students 
        speaking each respective language makes bilingual education 
        impractical.
            ``(B) Where, despite documented efforts, the applicant has 
        not been able to hire qualified instructional personnel who are 
        able to communicate in the students' native language.
        ``(4) Consideration.--In approving applications under this 
    subpart, the Secretary shall give consideration to the degree to 
    which the program for which assistance is sought involves the 
    collaborative efforts of institutions of higher education, 
    community-based organizations, the appropriate local and State 
    educational agency, or businesses.
        ``(5) Due consideration.--The Secretary shall give due 
    consideration to applications providing training for personnel 
    participating in or preparing to participate in the program which 
    will assist such personnel in meeting State and local certification 
    requirements and that, to the extent possible, describe how college 
    or university credit will be awarded for such training.

``SEC. 7117. INTENSIFIED INSTRUCTION.

    ``In carrying out this subpart, each grant recipient may intensify 
instruction for limited English proficient students by--
        ``(1) expanding the educational calendar of the school in which 
    such student is enrolled to include programs before and after 
    school and during the summer months;
        ``(2) expanding the use of professional and volunteer aids;
        ``(3) applying technology to the course of instruction; and
        ``(4) providing intensified instruction through supplementary 
    instruction or activities, including educationally enriching 
    extracurricular activities, during times when school is not 
    routinely in session.

``SEC. 7118. CAPACITY BUILDING.

    ``Each recipient of a grant under this subpart shall use the grant 
in ways that will build such recipient's capacity to continue to offer 
high-quality bilingual and special alternative education programs and 
services to children and youth of limited-English proficiency once 
Federal assistance is reduced or eliminated.

``SEC. 7119. SUBGRANTS.

    ``A local educational agency that receives a grant under this 
subpart may, with the approval of the Secretary, make a subgrant to, or 
enter into a contract with, an institution of higher education, a 
nonprofit organization, or a consortium of such entities to carry out 
an approved program, including a program to serve out-of-school youth.

``SEC. 7120. PRIORITY ON FUNDING.

    ``The Secretary shall give priority to applications under this 
subpart that describe a program that--
        ``(1) enrolls a large percentage or large number of limited 
    English proficient students;
        ``(2) takes into account significant increases in limited 
    English proficient children and youth, including such children and 
    youth in areas with low concentrations of such children and youth; 
    and
        ``(3) ensures that activities assisted under this subpart 
    address the needs of school systems of all sizes and geographic 
    areas, including rural and urban schools.

``SEC. 7121. COORDINATION WITH OTHER PROGRAMS.

    ``In order to secure the most flexible and efficient use of Federal 
funds, any State receiving funds under this subpart shall coordinate 
its program with other programs under this Act, the Goals 2000: Educate 
America Act, and other Acts, as appropriate, in accordance with section 
14306.

``SEC. 7122. PROGRAMS FOR NATIVE AMERICANS AND PUERTO RICO.

    ``Programs authorized under this part that serve Native American 
children, Native Pacific Island children, and children in the 
Commonwealth of Puerto Rico, notwithstanding any other provision of 
this part, may include programs of instruction, teacher training, 
curriculum development, evaluation, and testing designed for Native 
American children and youth learning and studying Native American 
languages and children and youth of limited-Spanish proficiency, except 
that one outcome of such programs serving Native American children 
shall be increased English proficiency among such children.

``SEC. 7123. EVALUATIONS.

    ``(a) Evaluation.--Each recipient of funds under this subpart shall 
provide the Secretary with an evaluation, in the form prescribed by the 
Secretary, of such recipient's program every two years.
    ``(b) Use of Evaluation.--Such evaluation shall be used by a grant 
recipient--
        ``(1) for program improvement;
        ``(2) to further define the program's goals and objectives; and
        ``(3) to determine program effectiveness.
    ``(c) Evaluation Components.--Evaluations shall include--
        ``(1) how students are achieving the State student performance 
    standards, if any, including data comparing children and youth of 
    limited-English proficiency with nonlimited English proficient 
    children and youth with regard to school retention, academic 
    achievement, and gains in English (and, where applicable, native 
    language) proficiency;
        ``(2) program implementation indicators that provide 
    information for informing and improving program management and 
    effectiveness, including data on appropriateness of curriculum in 
    relationship to grade and course requirements, appropriateness of 
    program management, appropriateness of the program's staff 
    professional development, and appropriateness of the language of 
    instruction;
        ``(3) program context indicators that describe the relationship 
    of the activities funded under the grant to the overall school 
    program and other Federal, State, or local programs serving 
    children and youth of limited English proficiency; and
        ``(4) such other information as the Secretary may require.

``SEC. 7124. CONSTRUCTION.

    ``Nothing in this part shall be construed to prohibit a local 
educational agency from serving limited English proficient children and 
youth simultaneously with students with similar educational needs, in 
the same educational settings where appropriate.

          ``Subpart 2--Research, Evaluation, and Dissemination

``SEC. 7131. AUTHORITY.

    ``(a) In General.--The Secretary is authorized to conduct data 
collection, dissemination, research, and ongoing program evaluation 
activities in accordance with the provisions of this subpart for the 
purpose of improving bilingual education and special alternative 
instruction programs for children and youth of limited English 
proficiency.
    ``(b) Competitive Awards.--Research and program evaluation 
activities carried out under this subpart shall be supported through 
competitive grants, contracts and cooperative agreements awarded 
institutions of higher education, nonprofit organizations, and State 
and local educational agencies.
    ``(c) Administration.--The Secretary shall conduct data collection, 
dissemination, and ongoing program evaluation activities authorized by 
this subpart through the Office of Bilingual Education and Minority 
Language Affairs.

``SEC. 7132. RESEARCH.

    ``(a) Administration.--The Secretary shall conduct research 
activities authorized by this subpart through the Office of Educational 
Research and Improvement in coordination and collaboration with the 
Office of Bilingual Education and Minority Language Affairs.
    ``(b) Requirements.--Such research activities--
        ``(1) shall have a practical application to teachers, 
    counselors, paraprofessionals, school administrators, parents, and 
    others involved in improving the education of limited English 
    proficient students and their families;
        ``(2) may include research on effective instructional practices 
    for multilingual classes, and on effective instruction strategies 
    to be used by teachers and other staff who do not know the native 
    language of a limited English proficient child or youth in their 
    classrooms;
        ``(3) may include establishing (through the National Center for 
    Education Statistics in consultation with experts in bilingual 
    education, second language acquisition, and English-as-a-second-
    language) a common definition of `limited English proficient 
    student' for purposes of national data collection; and
        ``(4) shall be administered by individuals with expertise in 
    bilingual education and the needs of limited English proficient 
    students and their families.
    ``(c) Field-Initiated Research.--
        ``(1) In general.--The Secretary shall reserve not less than 5 
    percent of the funds made available to carry out this section for 
    field-initiated research conducted by current or recent recipients 
    of grants under subpart 1 or 2 who have received such grants within 
    the previous five years. Such research may provide for longitudinal 
    studies of students or teachers in bilingual education, monitoring 
    the education of such students from entry in bilingual education 
    through secondary school completion.
        ``(2) Applications.--Applicants for assistance under this 
    subsection may submit an application for such assistance to the 
    Secretary at the same time as applications are submitted under 
    subpart 1 or 2. The Secretary shall complete a review of such 
    applications on a timely basis to allow research and program grants 
    to be coordinated when recipients are awarded two or more such 
    grants.
    ``(d) Consultation.--The Secretary shall consult with agencies and 
organizations that are engaged in bilingual education research and 
practice, or related research, and bilingual education researchers and 
practitioners to identify areas of study and activities to be funded 
under this section.
    ``(e) Data Collection.--The Secretary shall provide for the 
continuation of data collection on limited English proficient students 
as part of the data systems operated by the Department.

``SEC. 7133. ACADEMIC EXCELLENCE AWARDS.

    ``(a) Awards.--The Secretary may make grants to, and enter into 
contracts and cooperative agreements with, State and local educational 
agencies, nonprofit organizations, and institutions of higher education 
to promote the adoption and implementation of bilingual education, 
special alternative instruction programs, and professional development 
programs that demonstrate promise of assisting children and youth of 
limited English proficiency to meet challenging State standards.
    ``(b) Applications.--
        ``(1) In general.--Each entity desiring an award under this 
    section shall submit an application to the Secretary in such form, 
    at such time, and containing such information and assurances as the 
    Secretary may reasonably require.
        ``(2) Peer review.--The Secretary shall use a peer review 
    process, using effectiveness criteria that the Secretary shall 
    establish, to review applications under this section.
    ``(c) Use of Funds.--Funds under this section shall be used to 
enhance the capacity of States and local education agencies to provide 
high quality academic programs for children and youth of limited 
English proficiency, which may include--
        ``(1) completing the development of such programs;
        ``(2) professional development of staff participating in 
    bilingual education programs;
        ``(3) sharing strategies and materials; and
        ``(4) supporting professional networks.
    ``(d) Coordination.--Recipients of funds under this section shall 
coordinate the activities assisted under this section with activities 
carried out by comprehensive regional assistance centers assisted under 
part A of title XIII.

``SEC. 7134. STATE GRANT PROGRAM.

    ``(a) State Grant Program.--The Secretary is authorized to make an 
award to a State educational agency that demonstrates, to the 
satisfaction of the Secretary, that such agency, through such agency's 
own programs and other Federal education programs, effectively provides 
for the education of children and youth of limited English proficiency 
within the State.
    ``(b) Payments.--The amount paid to a State educational agency 
under subsection (a) shall not exceed 5 percent of the total amount 
awarded to local educational agencies within the State under subpart 1 
for the previous fiscal year, except that in no case shall the amount 
paid by the Secretary to any State educational agency under this 
subsection for any fiscal year be less than $100,000.
    ``(c) Use of Funds.--
        ``(1) In general.--A State educational agency shall use funds 
    awarded under this section for programs authorized by this section 
    to--
            ``(A) assist local educational agencies in the State with 
        program design, capacity building, assessment of student 
        performance, and program evaluation; and
            ``(B) collect data on the State's limited English 
        proficient populations and the educational programs and 
        services available to such populations.
        ``(2) Exception.--States which do not, as of the date of 
    enactment of the Improving America's Schools Act of 1994, have in 
    place a system for collecting the data described in subparagraph 
    (B) of paragraph (1) for all students in such State, are not 
    required to meet the requirement of such subparagraph. In the event 
    such State develops a system for collecting data on the educational 
    programs and services available to all students in the State, then 
    such State shall comply with the requirement of paragraph (1)(B).
        ``(3) Training.--The State educational agency may also use 
    funds provided under this section for the training of State 
    educational agency personnel in educational issues affecting 
    limited English proficient children and youth.
        ``(4) Special rule.--Recipients of funds under this section 
    shall not restrict the provision of services under this section to 
    federally funded programs.
    ``(d) State Consultation.--A State educational agency receiving 
funds under this section shall consult with recipients of grants under 
this title and other individuals or organizations involved in the 
development or operation of programs serving limited English proficient 
children or youth to ensure that such funds are used in a manner 
consistent with the requirements of this title.
    ``(e) Applications.--A State educational agency desiring to receive 
funds under this section shall submit an application to the Secretary 
in such form, at such time, and containing such information and 
assurances as the Secretary may require.
    ``(f) Supplement Not Supplant.--Funds made available under this 
section for any fiscal year shall be used by the State educational 
agency to supplement and, to the extent practical, to increase to the 
level of funds that would, in the absence of such funds, be made 
available by the State for the purposes described in this section, and 
in no case to supplant such funds.
    ``(g) Report to the Secretary.--State educational agencies 
receiving awards under this section shall provide for the annual 
submission of a summary report to the Secretary describing such State's 
use of such funds.

``SEC. 7135. NATIONAL CLEARINGHOUSE FOR BILINGUAL EDUCATION.

    ``(a) Establishment.--The Secretary shall establish and support the 
operation of a National Clearinghouse for Bilingual Education, which 
shall collect, analyze, synthesize, and disseminate information about 
bilingual education and related programs.
    ``(b) Functions.--The National Clearinghouse for Bilingual 
Education shall--
        ``(1) be administered as an adjunct clearinghouse of the 
    Educational Resources Information Center Clearinghouses system of 
    clearinghouses supported by the Office of Educational Research and 
    Improvement;
        ``(2) coordinate its activities with Federal data and 
    information clearinghouses and dissemination networks and systems;
        ``(3) develop a data base management and monitoring system for 
    improving the operation and effectiveness of federally funded 
    bilingual education programs; and
        ``(4) develop, maintain, and disseminate, through comprehensive 
    regional assistance centers described in part A of title XIII if 
    appropriate, a listing by geographical area of education 
    professionals, parents, teachers, administrators, community members 
    and others who are native speakers of languages other than English 
    for use as a resource by local educational agencies and schools in 
    the development and implementation of bilingual education programs.

``SEC. 7136. INSTRUCTIONAL MATERIALS DEVELOPMENT.

    ``The Secretary may provide grants for the development, 
publication, and dissemination of high-quality instructional materials 
in Native American and Native Hawaiian languages and the language of 
Native Pacific Islanders and natives of the outlying areas for which 
instructional materials are not readily available. The Secretary shall 
give priority to the development of instructional materials in 
languages indigenous to the United States or the outlying areas. The 
Secretary shall also accord priority to applications for assistance 
under this section which provide for developing and evaluating 
materials in collaboration with activities assisted under subparts 1 
and 2 and which are consistent with voluntary national content 
standards and challenging State content standards.

                 ``Subpart 3--Professional Development

``SEC. 7141. PURPOSE.

    ``The purpose of this subpart is to assist in preparing educators 
to improve the educational services for limited English proficient 
children and youth by supporting professional development programs and 
the dissemination of information on appropriate instructional practices 
for such children and youth.

``SEC. 7142. TRAINING FOR ALL TEACHERS PROGRAM.

    ``(a) Purpose.--The purpose of this section is to provide for the 
incorporation of courses and curricula on appropriate and effective 
instructional and assessment methodologies, strategies and resources 
specific to limited English proficient students into preservice and 
inservice professional development programs for teachers, pupil 
services personnel, administrators and other education personnel in 
order to prepare such individuals to provide effective services to 
limited English proficient students.
    ``(b) Authorization.--
        ``(1) Authority.--The Secretary is authorized to award grants 
    to institutions of higher education, local educational agencies, 
    and State educational agencies or to nonprofit organizations which 
    have entered into consortia arrangements with one of such 
    institutions or agencies.
        ``(2) Duration.--Each grant under this section shall be awarded 
    for a period of not more than five years.
    ``(c) Permissible Activities.--Activities conducted under this 
section may include the development of training programs in 
collaboration with other programs such as programs authorized under 
titles I and II of this Act, and under the Head Start Act.
``SEC. 7143. BILINGUAL EDUCATION TEACHERS AND PERSONNEL GRANTS.
    ``(a) Purpose.--The purpose of this section is to provide for--
        ``(1) preservice and inservice professional development for 
    bilingual education teachers, administrators, pupil services 
    personnel, and other educational personnel who are either involved 
    in, or preparing to be involved in, the provision of educational 
    services for children and youth of limited-English proficiency; and
        ``(2) national professional development institutes that assist 
    schools or departments of education in institutions of higher 
    education to improve the quality of professional development 
    programs for personnel serving, preparing to serve, or who may 
    serve, children and youth of limited-English proficiency.
    ``(b) Priority.--The Secretary shall give priority in awarding 
grants under this section to institutions of higher education, in 
consortia with local or State educational agencies, that offer degree 
programs which prepare new bilingual education teachers in order to 
increase the availability of educators to provide high-quality 
education to limited English proficient students.
    ``(c) Authorization.--
        ``(1) The Secretary is authorized to award grants for not more 
    than five years to institutions of higher education which have 
    entered into consortia arrangements with local or State educational 
    agencies to achieve the purposes of this section.
        ``(2) The Secretary is authorized to make grants for not more 
    than five years to State and local educational agencies for 
    inservice professional development programs.

``SEC. 7144. BILINGUAL EDUCATION CAREER LADDER PROGRAM.

    ``(a) Purpose.--The purpose of this section is--
        ``(1) to upgrade the qualifications and skills of noncertified 
    educational personnel, especially educational paraprofessionals, to 
    meet high professional standards, including certification and 
    licensure as bilingual education teachers and other educational 
    personnel who serve limited English proficient students, through 
    collaborative training programs operated by institutions of higher 
    education and local and State educational agencies; and
        ``(2) to help recruit and train secondary school students as 
    bilingual education teachers and other educational personnel to 
    serve limited English proficient students.
    ``(b) Authorization.--
        ``(1) In general.--The Secretary is authorized to award grants 
    for bilingual education career ladder programs to institutions of 
    higher education applying in consortia with local or State 
    educational agencies, which consortia may include community-based 
    organizations or professional education organizations.
        ``(2) Duration.--Each grant under this section shall be awarded 
    for a period of not more than five years.
    ``(c) Permissive Activities.--Grants awarded under this section may 
be used--
        ``(1) for the development of bilingual education career ladder 
    program curricula appropriate to the needs of the consortium 
    participants;
        ``(2) to provide assistance for stipends and costs related to 
    tuition, fees and books for enrolling in courses required to 
    complete the degree and certification requirements to become 
    bilingual education teachers; and
        ``(3) for programs to introduce secondary school students to 
    careers in bilingual education teaching that are coordinated with 
    other activities assisted under this section.
    ``(d) Special Consideration.--The Secretary shall give special 
consideration to applications under this section which provide for--
        ``(1) participant completion of baccalaureate and master's 
    degree teacher education programs, and certification requirements 
    and may include effective employment placement activities;
        ``(2) development of teacher proficiency in English a second 
    language, including demonstrating proficiency in the instructional 
    use of English and, as appropriate, a second language in classroom 
    contexts;
        ``(3) coordination with the Federal TRIO programs under chapter 
    1 of part A of title IV of the Higher Education Act of 1965, the 
    National Mini Corps under subpart 1 of part F of title V of such 
    Act, the Teacher Corps program under subpart 3 of part C of title V 
    of such Act, and the National Community and Service Trust Act of 
    1993 programs, and other programs for the recruitment and retention 
    of bilingual students in secondary and postsecondary programs to 
    train to become bilingual educators; and
        ``(4) the applicant's contribution of additional student 
    financial aid to participating students.
``SEC. 7145. GRADUATE FELLOWSHIPS IN BILINGUAL EDUCATION PROGRAM.
    ``(a) Authorization.--
        ``(1) In general.--The Secretary may award fellowships for 
    masters, doctoral, and post-doctoral study related to instruction 
    of children and youth of limited-English proficiency in such areas 
    as teacher training, program administration, research and 
    evaluation, and curriculum development, and for the support of 
    dissertation research related to such study.
        ``(2) Number.--For fiscal year 1994 not less than 500 
    fellowships leading to a master's or doctorate degree shall be 
    awarded under this section.
        ``(3) Information.--The Secretary shall include information on 
    the operation and the number of fellowships awarded under the 
    fellowship program in the evaluation required under section 7149.
    ``(b) Fellowship Requirements.--
        ``(1) In general.--Any person receiving a fellowship under this 
    section shall agree to--
            ``(A) work in an activity related to the program or in an 
        activity such as an activity authorized under this part, 
        including work as a bilingual education teacher, for a period 
        of time equivalent to the period of time during which such 
        person receives assistance under this section; or
            ``(B) repay such assistance.
        ``(2) Regulations.--The Secretary shall establish in 
    regulations such terms and conditions for such agreement as the 
    Secretary deems reasonable and necessary and may waive the 
    requirement of paragraph (1) in extraordinary circumstances.
    ``(c) Priority.--In awarding fellowships under this section the 
Secretary may give priority to institutions of higher education that 
demonstrate experience in assisting fellowship recipients find 
employment in the field of bilingual education.

``SEC. 7146. APPLICATION.

    ``(a) In General.--
        ``(1) Secretary.--To receive an award under this subpart, an 
    eligible entity shall submit an application to the Secretary at 
    such time, in such form, and containing such information as the 
    Secretary may require.
        ``(2) Consultation and assessment.--Each such application shall 
    contain a description of how the applicant has consulted with, and 
    assessed the needs of, public and private schools serving children 
    and youth of limited-English proficiency to determine such school's 
    need for, and the design of, the program for which funds are 
    sought.
        ``(3) Special rule.--(A) An application for a grant under 
    subsection (a) from an applicant who proposes to conduct a 
    master's- or doctoral-level program with funds received under this 
    section shall provide an assurance that such program will include, 
    as a part of the program, a training practicum in a local school 
    program serving children and youth of limited-English proficiency.
        ``(B) A recipient of a grant under subsection (a) may waive the 
    requirement of a training practicum for a degree candidate with 
    significant experience in a local school program serving children 
    and youth of limited-English proficiency.
        ``(4) State educational agency.--An eligible entity, with the 
    exception of schools funded by the Bureau of Indian Affairs, shall 
    submit a copy of the application under this subsection to the State 
    educational agency.
    ``(b) State Review and Comments.--
        ``(1) Deadline.--The State educational agency, not later than 
    45 days after receipt of such application copy, shall review the 
    application and transmit such application to the Secretary.
        ``(2) Comments.--(A) Regarding any application submitted under 
    this subpart, the State educational agency shall--
            ``(i) submit to the Secretary written comments regarding 
        all such applications; and
            ``(ii) submit to each eligible entity the comments that 
        pertain to such entity.
        ``(B) For purposes of this subpart, comments shall address how 
    the eligible entity--
            ``(i) will further the academic achievement of limited 
        English proficient students served pursuant to a grant received 
        under this subpart; and
            ``(ii) how the grant application is consistent with the 
        State plan submitted under section 1111.
        ``(3) Waiver.--Notwithstanding paragraphs (1) and (2), the 
    Secretary is authorized to waive the review requirement if a State 
    educational agency can demonstrate that such review requirement may 
    impede such agency's ability to fulfill the requirements of 
    participation in the State grant program, particularly such 
    agency's data collection efforts and such agency's ability to 
    provide technical assistance to local educational agencies not 
    receiving funds under this Act.
    ``(c) Eligible Entity Comments.--An eligible entity may submit to 
the Secretary comments that address the comments submitted by the State 
educational agency.
    ``(d) Comment Consideration.--In making awards under this subpart 
the Secretary shall take into consideration comments made by a State 
educational agency.
    ``(e) Special Rule.--
        ``(1) Outreach and technical assistance.--The Secretary shall 
    provide for outreach and technical assistance to institutions of 
    higher education eligible for assistance under title III of the 
    Higher Education Act of 1965 and institutions of higher education 
    that are operated or funded by the Bureau of Indian Affairs to 
    facilitate the participation of such institutions in activities 
    under this part.
        ``(2) Distribution rule.--In making awards under this subpart, 
    the Secretary, consistent with subsection (d), shall ensure 
    adequate representation of Hispanic-serving institutions that 
    demonstrate competence and experience in the programs and 
    activities authorized under this subpart and are otherwise 
    qualified.

``SEC. 7147. PROGRAM REQUIREMENTS.

    ``Activities conducted under this subpart shall assist educational 
personnel in meeting State and local certification requirements for 
bilingual education and, wherever possible, shall lead toward the 
awarding of college or university credit.

``SEC. 7148. STIPENDS.

    ``The Secretary shall provide for the payment of such stipends 
(including allowances for subsistence and other expenses for such 
persons and their dependents), as the Secretary determines to be 
appropriate, to persons participating in training programs under this 
subpart.

``SEC. 7149. PROGRAM EVALUATIONS.

    ``Each recipient of funds under this subpart shall provide the 
Secretary with an evaluation of the program assisted under this subpart 
every two years. Such evaluation shall include data on--
        ``(1) post-program placement of persons trained in a program 
    assisted under this subpart;
        ``(2) how the training relates to the employment of persons 
    served by the program;
        ``(3) program completion; and
        ``(4) such other information as the Secretary may require.

``SEC. 7150. USE OF FUNDS FOR SECOND LANGUAGE COMPETENCE.

    ``Awards under this subpart may be used to develop a program 
participant's competence in a second language for use in instructional 
programs.

                        ``Subpart 4--Transition

``SEC. 7161. SPECIAL RULE.

    ``Notwithstanding any other provision of law, no recipient of a 
grant under title VII of this Act (as such title was in effect on the 
day preceding the date of enactment of the Improving America's Schools 
Act of 1994) shall be eligible for fourth- and fifth-year renewals 
authorized by section 7021(d)(1)(C) of such title (as such section was 
in effect on the day preceding the date of enactment of such Act).

             ``PART B--FOREIGN LANGUAGE ASSISTANCE PROGRAM

``SEC. 7201. SHORT TITLE.

    ``This part may be cited as the `Foreign Language Assistance Act of 
1994'.

``SEC. 7202. FINDINGS.

    ``The Congress finds as follows:
        ``(1) Foreign language proficiency is crucial to our Nation's 
    economic competitiveness and national security. Significant 
    improvement in the quantity and quality of foreign language 
    instruction offered in our Nation's elementary and secondary 
    schools is necessary.
        ``(2) All Americans need a global perspective. To understand 
    the world around us, we must acquaint ourselves with the languages, 
    cultures, and history of other nations.
        ``(3) Proficiency in two or more languages should be promoted 
    for all American students. Multilingualism enhances cognitive and 
    social growth, competitiveness in the global marketplace, national 
    security, and understanding of diverse people and cultures.
        ``(4) The United States lags behind other developed countries 
    in offering foreign language study to elementary and secondary 
    school students.
        ``(5) Four out of five new jobs in the United States are 
    created from foreign trade.
        ``(6) The optimum time to begin learning a second language is 
    in elementary school, when children have the ability to learn and 
    excel in several foreign language acquisition skills, including 
    pronunciation, and when children are most open to appreciating and 
    valuing a culture other than their own.
        ``(7) Foreign language study can increase childrens' capacity 
    for critical and creative thinking skills and children who study a 
    second language show greater cognitive development in areas such as 
    mental flexibility, creativity, tolerance, and higher order 
    thinking skills.
        ``(8) Children who have studied a foreign language in 
    elementary school achieve expected gains and score higher on 
    standardized tests of reading, language arts, and mathematics than 
    children who have not studied a foreign language.

``SEC. 7203. PROGRAM AUTHORIZED.

    ``(a) Program Authority.--
        ``(1) In general.--The Secretary shall make grants, on a 
    competitive basis, to State educational agencies or local 
    educational agencies to pay the Federal share of the cost of 
    innovative model programs providing for the establishment, 
    improvement or expansion of foreign language study for elementary 
    and secondary school students.
        ``(2) Duration.--Each grant under paragraph (1) shall be 
    awarded for a period of three years.
    ``(b) Requirements.--
        ``(1) Grants to state educational agencies.--In awarding a 
    grant under subsection (a) to a State educational agency, the 
    Secretary shall support programs that promote systemic approaches 
    to improving foreign language learning in the State.
        ``(2) Grants to local educational agencies.--In awarding a 
    grant under subsection (a) to a local educational agency, the 
    Secretary shall support programs that--
            ``(A) show the promise of being continued beyond the grant 
        period;
            ``(B) demonstrate approaches that can be disseminated and 
        duplicated in other local educational agencies; and
            ``(C) may include a professional development component.
    ``(c) Federal Share.--
        ``(1) In general.--The Federal share for each fiscal year shall 
    be 50 percent.
        ``(2) Waiver.--The Secretary may waive the requirement of 
    paragraph (1) for any local educational agency which the Secretary 
    determines does not have adequate resources to pay the non-Federal 
    share of the cost of the activities assisted under this part.
        ``(3) Special rule.--Not less than three-fourths of the funds 
    appropriated under section 7206 shall be used for the expansion of 
    foreign language learning in the elementary grades.
        ``(4) Reservation.--The Secretary may reserve not more than 5 
    percent of funds appropriated under section 7206 to evaluate the 
    efficacy of programs under this part.

``SEC. 7204. APPLICATIONS.

    ``(a) In General.--Any State educational agency or local 
educational agency desiring a grant under this part shall submit an 
application to the Secretary at such time, in such form, and containing 
such information and assurances as the Secretary may require.
    ``(b) Special Consideration.--The Secretary shall give special 
consideration to applications describing programs that--
        ``(1) include intensive summer foreign language programs for 
    professional development;
        ``(2) link non-native English speakers in the community with 
    the schools in order to promote two-way language learning; or
        ``(3) promote the sequential study of a foreign language for 
    students, beginning in elementary schools.
``SEC. 7205. ELEMENTARY SCHOOL FOREIGN LANGUAGE INCENTIVE PROGRAM.
    ``(a) Incentive Payments.--From amounts appropriated under section 
7206 the Secretary shall make an incentive payment for each fiscal year 
to each public elementary school that provides to students attending 
such school a program designed to lead to communicative competency in a 
foreign language.
    ``(b) Amount.--The Secretary shall determine the amount of the 
incentive payment under subsection (a) for each public elementary 
school for each fiscal year on the basis of the number of students 
participating in a program described in such subsection at such school 
for such year compared to the total number of such students at all such 
schools in the United States for such year.
    ``(c) Requirement.--The Secretary shall consider a program to be 
designed to lead to communicative competency in a foreign language if 
such program is comparable to a program that provides not less than 45 
minutes of instruction in a foreign language not less than four days 
per week throughout an academic year.

``SEC. 7206. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $35,000,000 for the 
fiscal year 1995, and such sums as may be necessary for each of the 
four succeeding fiscal years, to carry out this part, of which not more 
than $20,000,000 may be used in each fiscal year to carry out section 
7205.

            ``PART C--EMERGENCY IMMIGRANT EDUCATION PROGRAM

``SEC. 7301. FINDINGS AND PURPOSE.

    ``(a) Findings.--The Congress finds that--
        ``(1) the education of our Nation's children and youth is one 
    of the most sacred government responsibilities;
        ``(2) local educational agencies have struggled to fund 
    adequately education services;
        ``(3) in the case of Plyler v. Doe, the Supreme Court held that 
    States have a responsibility under the Equal Protection Clause of 
    the Constitution to educate all children, regardless of immigration 
    status; and
        ``(4) immigration policy is solely a responsibility of the 
    Federal Government.
    ``(b) Purpose.--The purpose of this part is to assist eligible 
local educational agencies that experience unexpectedly large increases 
in their student population due to immigration to--
        ``(1) provide high-quality instruction to immigrant children 
    and youth; and
        ``(2) help such children and youth--
            ``(A) with their transition into American society; and
            ``(B) meet the same challenging State performance standards 
        expected of all children and youth.

``SEC. 7302. STATE ADMINISTRATIVE COSTS.

    ``For any fiscal year, a State educational agency may reserve not 
more than 1.5 percent of the amount allocated to such agency under 
section 7304 to pay the costs of performing such agency's 
administrative functions under this part.

``SEC. 7303. WITHHOLDING.

    ``Whenever the Secretary, after providing reasonable notice and 
opportunity for a hearing to any State educational agency, finds that 
there is a failure to meet the requirement of any provision of this 
part, the Secretary shall notify that agency that further payments will 
not be made to the agency under this part, or in the discretion of the 
Secretary, that the State educational agency shall not make further 
payments under this part to specified local educational agencies whose 
actions cause or are involved in such failure until the Secretary is 
satisfied that there is no longer any such failure to comply. Until the 
Secretary is so satisfied, no further payments shall be made to the 
State educational agency under this part, or payments by the State 
educational agency under this part shall be limited to local 
educational agencies whose actions did not cause or were not involved 
in the failure, as the case may be.

``SEC. 7304. STATE ALLOCATIONS.

    ``(a) Payments.--The Secretary shall, in accordance with the 
provisions of this section, make payments to State educational agencies 
for each of the fiscal years 1995 through 1999 for the purpose set 
forth in section 7301(b).
    ``(b) Allocations.--
        ``(1) In general.--Except as provided in subsections (c) and 
    (d), of the amount appropriated for each fiscal year for this part, 
    each State participating in the program assisted under this part 
    shall receive an allocation equal to the proportion of such State's 
    number of immigrant children and youth who are enrolled in public 
    elementary or secondary schools under the jurisdiction of each 
    local educational agency described in paragraph (2) within such 
    State, and in nonpublic elementary or secondary schools within the 
    district served by each such local educational agency, relative to 
    the total number of immigrant children and youth so enrolled in all 
    the States participating in the program assisted under this part.
        ``(2) Eligible local educational agencies.--The local 
    educational agencies referred to in paragraph (1) are those local 
    educational agencies in which the sum of the number of immigrant 
    children and youth who are enrolled in public elementary or 
    secondary schools under the jurisdiction of such agencies, and in 
    nonpublic elementary or secondary schools within the districts 
    served by such agencies, during the fiscal year for which the 
    payments are to be made under this part, is equal to--
            ``(A) at least 500; or
            ``(B) at least 3 percent of the total number of students 
        enrolled in such public or nonpublic schools during such fiscal 
        year,
    whichever number is less.
    ``(c) Determinations of Number of Children and Youth.--
        ``(1) In general.--Determinations by the Secretary under this 
    section for any period with respect to the number of immigrant 
    children and youth shall be made on the basis of data or estimates 
    provided to the Secretary by each State educational agency in 
    accordance with criteria established by the Secretary, unless the 
    Secretary determines, after notice and opportunity for a hearing to 
    the affected State educational agency, that such data or estimates 
    are clearly erroneous.
        ``(2) Special rule.--No such determination with respect to the 
    number of immigrant children and youth shall operate because of an 
    underestimate or overestimate to deprive any State educational 
    agency of the allocation under this section that such State would 
    otherwise have received had such determination been made on the 
    basis of accurate data.
    ``(d) Reallocation.--Whenever the Secretary determines that any 
amount of a payment made to a State under this part for a fiscal year 
will not be used by such State for carrying out the purpose for which 
the payment was made, the Secretary shall make such amount available 
for carrying out such purpose to one or more other States to the extent 
the Secretary determines that such other States will be able to use 
such additional amount for carrying out such purpose. Any amount made 
available to a State from any appropriation for a fiscal year in 
accordance with the preceding sentence shall, for purposes of this 
part, be regarded as part of such State's payment (as determined under 
subsection (b)) for such year, but shall remain available until the end 
of the succeeding fiscal year.
    ``(e) Reservation of Funds.--
        ``(1) In general.--Notwithstanding any other provision of this 
    part, if the amount appropriated to carry out this part exceeds 
    $50,000,000 for a fiscal year, a State educational agency may 
    reserve not more than 20 percent of such agency's payment under 
    this part for such year to award grants, on a competitive basis, to 
    local educational agencies within the State as follows:
            ``(A) At least one-half of such grants shall be made 
        available to eligible local educational agencies (as described 
        in subsection (b)(2)) within the State with the highest numbers 
        and percentages of immigrant children and youth.
            ``(B) Funds reserved under this paragraph and not made 
        available under subparagraph (A) may be distributed to local 
        educational agencies within the State experiencing a sudden 
        influx of immigrant children and youth which are otherwise not 
        eligible for assistance under this part.
        ``(2) Use of grant funds.--Each local educational agency 
    receiving a grant under paragraph (1) shall use such grant funds to 
    carry out the activities described in section 7307.
        ``(3) Information.--Local educational agencies with the highest 
    number of immigrant children and youth receiving funds under 
    paragraph (1) may make information available on serving immigrant 
    children and youth to local educational agencies in the State with 
    sparse numbers of such children.

``SEC. 7305. STATE APPLICATIONS.

    ``(a) Submission.--No State educational agency shall receive any 
payment under this part for any fiscal year unless such agency submits 
an application to the Secretary at such time, in such manner, and 
containing or accompanied by such information, as the Secretary may 
reasonably require. Each such application shall--
        ``(1) provide that the educational programs, services, and 
    activities for which payments under this part are made will be 
    administered by or under the supervision of the agency;
        ``(2) provide assurances that payments under this part will be 
    used for purposes set forth in sections 7301 and 7307, including a 
    description of how local educational agencies receiving funds under 
    this part will use such funds to meet such purposes and will 
    coordinate with other programs assisted under this Act, the Goals 
    2000: Educate America Act, and other Acts as appropriate;
        ``(3) provide an assurance that local educational agencies 
    receiving funds under this part will coordinate the use of such 
    funds with programs assisted under part A or title I;
        ``(4) provide assurances that such payments, with the exception 
    of payments reserved under section 7304(e), will be distributed 
    among local educational agencies within that State on the basis of 
    the number of immigrant children and youth counted with respect to 
    each such local educational agency under section 7304(b)(1);
        ``(5) provide assurances that the State educational agency will 
    not finally disapprove in whole or in part any application for 
    funds received under this part without first affording the local 
    educational agency submitting an application for such funds 
    reasonable notice and opportunity for a hearing;
        ``(6) provide for making such reports as the Secretary may 
    reasonably require to perform the Secretary's functions under this 
    part;
        ``(7) provide assurances--
            ``(A) that to the extent consistent with the number of 
        immigrant children and youth enrolled in the nonpublic 
        elementary or secondary schools within the district served by a 
        local educational agency, such agency, after consultation with 
        appropriate officials of such schools, shall provide for the 
        benefit of such children and youth secular, neutral, and 
        nonideological services, materials, and equipment necessary for 
        the education of such children and youth;
            ``(B) that the control of funds provided under this part to 
        any materials, equipment, and property repaired, remodeled, or 
        constructed with those funds shall be in a public agency for 
        the uses and purposes provided in this part, and a public 
        agency shall administer such funds and property; and
            ``(C) that the provision of services pursuant to this 
        paragraph shall be provided by employees of a public agency or 
        through contract by such public agency with a person, 
        association, agency, or corporation who or which, in the 
        provision of such services, is independent of such nonpublic 
        elementary or secondary school and of any religious 
        organization, and such employment or contract shall be under 
        the control and supervision of such public agency, and the 
        funds provided under this paragraph shall not be commingled 
        with State or local funds;
        ``(8) provide that funds reserved under subsection (e) of 
    section 7304 be awarded on a competitive basis based on merit and 
    need in accordance with such subsection; and
        ``(9) provide an assurance that State and local educational 
    agencies receiving funds under this part will comply with the 
    requirements of section 1120(b).
    ``(b) Application Review.--
        ``(1) In general.--The Secretary shall review all applications 
    submitted pursuant to this section by State educational agencies.
        ``(2) Approval.--The Secretary shall approve any application 
    submitted by a State educational agency that meets the requirements 
    of this section.
        ``(3) Disapproval.--The Secretary shall disapprove any 
    application submitted by a State educational agency which does not 
    meet the requirements of this section, but shall not finally 
    disapprove an application except after providing reasonable notice, 
    technical assistance, and an opportunity for a hearing to the 
    State.

``SEC. 7306. ADMINISTRATIVE PROVISIONS.

    ``(a) Notification of Amount.--The Secretary, not later than June 1 
of each year, shall notify each State educational agency that has an 
application approved under section 7305 of the amount of such agency's 
allocation under section 7304 for the succeeding year.
    ``(b) Services to Children Enrolled in Nonpublic Schools.--If by 
reason of any provision of law a local educational agency is prohibited 
from providing educational services for children enrolled in elementary 
and secondary nonpublic schools, as required by section 7305(a)(7), or 
if the Secretary determines that a local educational agency has 
substantially failed or is unwilling to provide for the participation 
on an equitable basis of children enrolled in such schools, the 
Secretary may waive such requirement and shall arrange for the 
provision of services, subject to the requirements of this part, to 
such children. Such waivers shall be subject to consultation, 
withholding, notice, and judicial review requirements in accordance 
with the provisions of title I.

``SEC. 7307. USES OF FUNDS.

    ``(a) Use of Funds.--Funds awarded under this part shall be used to 
pay for enhanced instructional opportunities for immigrant children and 
youth, which may include--
        ``(1) family literacy, parent outreach, and training activities 
    designed to assist parents to become active participants in the 
    education of their children;
        ``(2) salaries of personnel, including teacher aides who have 
    been specifically trained, or are being trained, to provide 
    services to immigrant children and youth;
        ``(3) tutorials, mentoring, and academic or career counseling 
    for immigrant children and youth;
        ``(4) identification and acquisition of curricular materials, 
    educational software, and technologies to be used in the program;
        ``(5) basic instructional services which are directly 
    attributable to the presence in the school district of immigrant 
    children, including the costs of providing additional classroom 
    supplies, overhead costs, costs of construction, acquisition or 
    rental of space, costs of transportation, or such other costs as 
    are directly attributable to such additional basic instructional 
    services; and
        ``(6) such other activities, related to the purposes of this 
    part, as the Secretary may authorize.
    ``(b) Consortia.--A local educational agency that receives a grant 
under this part may collaborate or form a consortium with one or more 
local educational agencies, institutions of higher education, and 
nonprofit organizations to carry out the program described in an 
application approved under this part.
    ``(c) Subgrants.--A local educational agency that receives a grant 
under this part may, with the approval of the Secretary, make a 
subgrant to, or enter into a contract with, an institution of higher 
education, a nonprofit organization, or a consortium of such entities 
to carry out a program described in an application approved under this 
part, including a program to serve out-of-school youth.
    ``(d) Construction.--Nothing in this part shall be construed to 
prohibit a local educational agency from serving immigrant children 
simultaneously with students with similar educational needs, in the 
same educational settings where appropriate.

``SEC. 7308. REPORTS.

    ``(a) Biennial Report.--Each State educational agency receiving 
funds under this part shall submit, once every two years, a report to 
the Secretary concerning the expenditure of funds by local educational 
agencies under this part. Each local educational agency receiving funds 
under this part shall submit to the State educational agency such 
information as may be necessary for such report.
    ``(b) Report to Congress.--The Secretary shall submit, once every 
two years, a report to the appropriate committees of the Congress 
concerning programs assisted under this part in accordance with section 
14701.

``SEC. 7309. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this part, there are authorized 
to be appropriated $100,000,000 for fiscal year 1995 and such sums as 
may be necessary for each of the four succeeding fiscal years.

                        ``PART D--ADMINISTRATION

``SEC. 7401. RELEASE TIME.

    ``The Secretary shall allow professional development programs 
funded under part A to use funds provided under part A for professional 
release time to enable individuals to participate in programs assisted 
under part A.

``SEC. 7402. EDUCATION TECHNOLOGY.

    ``Funds made available under part A may be used to provide for the 
acquisition or development of education technology or instructional 
materials, including authentic materials in languages other than 
English, access to and participation in electronic networks for 
materials, training and communications, and incorporation of such 
resources in curricula and programs such as those funded under this 
title.

``SEC. 7403. NOTIFICATION.

    ``The State educational agency, and when applicable, the State 
board for postsecondary education, shall be notified within three 
working days of the date an award under part A is made to an eligible 
entity within the State.

``SEC. 7404. CONTINUED ELIGIBILITY.

    ``Entities receiving grants under this title shall remain eligible 
for grants for subsequent activities which extend or expand and do not 
duplicate those activities supported by a previous grant under this 
title. In considering applications for grants under this title, the 
Secretary shall take into consideration the applicant's record of 
accomplishments under previous grants under this title.

``SEC. 7405. COORDINATIONS AND REPORTING REQUIREMENTS.

    ``(a) Coordination With Related Programs.--In order to maximize 
Federal efforts aimed at serving the educational needs of children and 
youth of limited-English proficiency, the Secretary shall coordinate 
and ensure close cooperation with other programs serving language-
minority and limited English proficient students that are administered 
by the Department and other agencies. The Secretary shall consult with 
the Secretary of Labor, the Secretary of Health and Human Services, the 
Secretary of Agriculture, the Attorney General and the heads of other 
relevant agencies to identify and eliminate barriers to appropriate 
coordination of programs that affect language-minority and limited 
English proficient students and their families. The Secretary shall 
provide for continuing consultation and collaboration, between the 
Office and relevant programs operated by the Department, including 
programs under title I and other programs under this Act, in planning, 
contracts, providing joint technical assistance, providing joint field 
monitoring activities and in other relevant activities to ensure 
effective program coordination to provide high quality education 
opportunities to all language-minority and limited English proficient 
students.
    ``(b) Data.--The Secretary shall, to the extent feasible, ensure 
that all data collected by the Department shall include the collection 
and reporting of data on limited English proficient students.
    ``(c) Publication of Proposals.--The Secretary shall publish and 
disseminate all requests for proposals for programs funded under part 
A.
    ``(d) Report.--The Director shall prepare and, not later than 
February 1 of every other year, shall submit to the Secretary and to 
the Committee on Labor and Human Resources of the Senate and to the 
Committee on Education and Labor of the House of Representatives a 
report on--
        ``(1) the activities carried out under this title and the 
    effectiveness of such activities in improving the education 
    provided to limited English proficient children and youth;
        ``(2) a critical synthesis of data reported by the States 
    pursuant to section 7134;
        ``(3) an estimate of the number of certified bilingual 
    education personnel in the field and an estimate of the number of 
    bilingual education teachers which will be needed for the 
    succeeding five fiscal years;
        ``(4) the major findings of research carried out under this 
    title; and
        ``(5) recommendations for further developing the capacity of 
    our Nation's schools to educate effectively limited English 
    proficient students.

                      ``PART E--GENERAL PROVISIONS

``SEC. 7501. DEFINITIONS; REGULATIONS.

    ``Except as otherwise provided, for purposes of this title--
        ``(1) Bilingual education program.--The term `bilingual 
    education program' means an educational program for limited English 
    proficient students that--
            ``(A) makes instructional use of both English and a 
        student's native language;
            ``(B) enables limited English proficient students to 
        achieve English proficiency and academic mastery of subject 
        matter content and higher order skills, including critical 
        thinking, so as to meet age-appropriate grade-promotion and 
        graduation standards in concert with the National Education 
        Goals;
            ``(C) may also develop the native language skills of 
        limited English proficient students, or ancestral languages of 
        American Indians, Alaska Natives, Native Hawaiians and native 
        residents of the outlying areas; and
            ``(D) may include the participation of English-proficient 
        students if such program is designed to enable all enrolled 
        students to become proficient in English and a second language.
        ``(2) Children and youth.--The term `children and youth' means 
    individuals aged 3 through 21.
        ``(3) Community-based organization.--The term `community-based 
    organization' means a private nonprofit organization of 
    demonstrated effectiveness or Indian tribe or tribally sanctioned 
    educational authority which is representative of a community or 
    significant segments of a community and which provides educational 
    or related services to individuals in the community. Such term 
    includes Native Hawaiian organizations including Native Hawaiian 
    Educational Organizations as such term is defined in section 4009 
    of the Augustus F. Hawkins-Robert T. Stafford Elementary and 
    Secondary School Improvement Amendments of 1988 (20 U.S.C. 4901 et 
    seq.), as such Act was in effect on the day preceding the date of 
    enactment of the Improving America's Schools Act of 1994.
        ``(4) Community college.--The term `community college' means an 
    institution of higher education as defined in section 1201(a) of 
    the Higher Education Act of 1965 which provides not less than a 
    two-year program which is acceptable for full credit toward a 
    bachelor's degree, including institutions receiving assistance 
    under the Tribally Controlled Community College Assistance Act of 
    1978.
        ``(5) Director.--The term `Director' means the Director of the 
    Office of Bilingual Education and Minority Languages Affairs 
    established under section 210 of the Department of Education 
    Organization Act.
        ``(6) Family education program.--(A) The term `family education 
    program' means a bilingual education or special alternative 
    instructional program that--
            ``(i) is designed--
                ``(I) to help limited English proficient adults and 
            out-of-school youths achieve proficiency in the English 
            language; and
                ``(II) to provide instruction on how parents and family 
            members can facilitate the educational achievement of their 
            children;
            ``(ii) when feasible, uses instructional programs such as 
        the models developed under the Even Start Family Literacy 
        Programs, which promote adult literacy and train parents to 
        support the educational growth of their children and the 
        Parents as Teachers Program and the Home Instruction Program 
        for Preschool Youngsters; and
            ``(iii) gives preference to participation by parents and 
        immediate family members of children attending school.
        ``(B) Such term may include programs that provide instruction 
    to facilitate higher education and employment outcomes.
        ``(7) Immigrant children and youth.--The term `immigrant 
    children and youth' means individuals who--
            ``(A) are aged 3 through 21;
            ``(B) were not born in any State; and
            ``(C) have not been attending one or more schools in any 
        one or more States for more than three full academic years.
        ``(8) Limited english proficiency and limited english 
    proficient.--The terms `limited English proficiency' and `limited 
    English proficient', when used with reference to an individual, 
    mean an individual--
            ``(A) who--
                ``(i) was not born in the United States or whose native 
            language is a language other than English and comes from an 
            environment where a language other than English is 
            dominant; or
                ``(ii) is a Native American or Alaska Native or who is 
            a native resident of the outlying areas and comes from an 
            environment where a language other than English has had a 
            significant impact on such individual's level of English 
            language proficiency; or
                ``(iii) is migratory and whose native language is other 
            than English and comes from an environment where a language 
            other than English is dominant; and
            ``(B) who has sufficient difficulty speaking, reading, 
        writing, or understanding the English language and whose 
        difficulties may deny such individual the opportunity to learn 
        successfully in classrooms where the language of instruction is 
        English or to participate fully in our society.
        ``(9) Native american and native american language.--The terms 
    `Native American' and `Native American language' shall have the 
    same meaning given such terms in section 103 of the Native American 
    Languages Act of 1990.
        ``(10) Native hawaiian or native american pacific islander 
    native language educational organization.--The term `Native 
    Hawaiian or Native American Pacific Islander native language 
    educational organization' means a nonprofit organization with a 
    majority of its governing board and employees consisting of fluent 
    speakers of the traditional Native American languages used in their 
    educational programs and with not less than five years successful 
    experience in providing educational services in traditional Native 
    American languages.
        ``(11) Native language.--The term `native language', when used 
    with reference to an individual of limited-English proficiency, 
    means the language normally used by such individual, or in the case 
    of a child or youth, the language normally used by the parents of 
    the child or youth.
        ``(12) Office.--The term `Office' means the Office of Bilingual 
    Education and Minority Languages Affairs.
        ``(13) Other programs for persons of limited-english 
    proficiency.--The term `other programs for persons of limited-
    English proficiency' means any programs administered by the 
    Secretary that serve persons of limited-English proficiency.
        ``(14) Paraprofessional.--The term `paraprofessional' means an 
    individual who is employed in preschool, elementary or secondary 
    school under the supervision of a certified or licensed teacher, 
    including individuals employed in bilingual education, special 
    education and migrant education.
        ``(15) Special alternative instructional program.--The term 
    `special alternative instructional program' means an educational 
    program for limited English proficient students that--
            ``(A) utilizes specially designed English language 
        curricula and services but does not use the student's native 
        language for instructional purposes;
            ``(B) enables limited English proficient students to 
        achieve English proficiency and academic mastery of subject 
        matter content and higher order skills, including critical 
        thinking so as to meet age-appropriate grade-promotion and 
        graduation standards in concert with the National Education 
        Goals; and
            ``(C) is particularly appropriate for schools where the 
        diversity of the limited English proficient students' native 
        languages and the small number of students speaking each 
        respective language makes bilingual education impractical and 
        where there is a critical shortage of bilingual education 
        teachers.

``SEC. 7502. REGULATIONS AND NOTIFICATION.

    ``(a) Regulation Rule.--In developing regulations under this title, 
the Secretary shall consult with State and local educational agencies, 
organizations representing limited English proficient individuals, and 
organizations representing teachers and other personnel involved in 
bilingual education.
    ``(b) Parental Notification.--
        ``(1) In general.--Parents of children and youth participating 
    in programs assisted under part A shall be informed of--
            ``(A) a student's level of English proficiency, how such 
        level was assessed, the status of a student's academic 
        achievement and the implications of a student's educational 
        strengths and needs for age and grade appropriate academic 
        attainment, promotion, and graduation;
            ``(B) what programs are available to meet the student's 
        educational strengths and needs and how the programs differ in 
        content and instructional goals, and in the case of a student 
        with a disability, how the program meets the objectives of a 
        student's individualized education program; and
            ``(C) the instructional goals of the bilingual education or 
        special alternative instructional program, and how the program 
        will specifically help the limited English proficient student 
        acquire English and meet age-appropriate standards for grade-
        promotion and graduation, including--
                ``(i) the benefits, nature, and past academic results 
            of the bilingual educational program and of the 
            instructional alternatives; and
                ``(ii) the reasons for the selection of their child as 
            being in need of bilingual education.
        ``(2) Option to decline.--(A) Such parents shall also be 
    informed that such parents have the option of declining enrollment 
    of their children and youth in such programs and shall be given an 
    opportunity to so decline if such parents so choose.
        ``(B) A local educational agency shall not be relieved of any 
    of its obligations under title VI of the Civil Rights Act of 1964 
    because parents choose not to enroll their children in bilingual 
    education programs.
        ``(3) Receipt of information.--Such parents shall receive, in a 
    manner and form understandable to such parents, including, if 
    necessary and to the extent feasible, in the native language of 
    such parents, the information required by this subsection. At a 
    minimum, such parents shall receive--
            ``(A) timely information about projects funded under part 
        A; and
            ``(B) if the parents of participating children so desire, 
        notice of opportunities for regular meetings for the purpose of 
        formulating and responding to recommendations from such 
        parents.
        ``(4) Special rule.--Students shall not be admitted to or 
    excluded from any federally assisted education program merely on 
    the basis of a surname or language-minority status.

                        ``TITLE VIII--IMPACT AID

``SEC. 8001. PURPOSE.

    ``In order to fulfill the Federal responsibility to assist with the 
provision of educational services to federally connected children, 
because certain activities of the Federal Government place a financial 
burden on the local educational agencies serving areas where such 
activities are carried out, and to help such children meet challenging 
State standards, it is the purpose of this title to provide financial 
assistance to local educational agencies that--
        ``(1) experience a substantial and continuing financial burden 
    due to the acquisition of real property by the United States;
        ``(2) educate children who reside on Federal property and whose 
    parents are employed on Federal property;
        ``(3) educate children of parents who are in the military 
    services and children who live in low-rent housing;
        ``(4) educate heavy concentrations of children whose parents 
    are civilian employees of the Federal Government and do not reside 
    on Federal property;
        ``(5) experience sudden and substantial increases or decreases 
    in enrollments because of military realignments; or
        ``(6) need special assistance with capital expenditures for 
    construction activities because of the enrollments of substantial 
    numbers of children who reside on Federal lands.
``SEC. 8002. PAYMENTS RELATING TO FEDERAL ACQUISITION OF REAL PROPERTY.
    ``(a) In General.--Where the Secretary, after consultation with any 
local educational agency and with the appropriate State educational 
agency, determines for a fiscal year ending prior to October 1, 1999--
        ``(1) that the United States owns Federal property in the local 
    educational agency, and that such property--
            ``(A) has been acquired by the United States since 1938;
            ``(B) was not acquired by exchange for other Federal 
        property in the local educational agency which the United 
        States owned before 1939; and
            ``(C) had an assessed value (determined as of the time or 
        times when so acquired) aggregating 10 percent or more of the 
        assessed value of--
                ``(i) all real property in the local educational agency 
            (similarly determined as of the time or times when such 
            Federal property was so acquired); or
                ``(ii) all real property in the local educational 
            agency as assessed in the first year preceding or 
            succeeding acquisition, whichever is greater, only if--

                    ``(I) the assessment of all real property in the 
                local educational agency is not made at the same time 
                or times that such Federal property was so acquired and 
                assessed; and
                    ``(II) State law requires an assessment be made of 
                property so acquired; and

        ``(2) that such agency is not being substantially compensated 
    for the loss in revenue resulting from such ownership by increases 
    in revenue accruing to the agency from the conduct of Federal 
    activities with respect to such Federal property,
then such agency shall be eligible to receive the amount described in 
subsection (b).
    ``(b) Amount.--
        ``(1) In general.--(A)(i) The amount that a local educational 
    agency shall be paid under subsection (a) for a fiscal year shall 
    be calculated in accordance with paragraph (2), except that such 
    amount shall be reduced by the Secretary by an amount equal to the 
    amount of revenue, if any, that such agency received during the 
    previous fiscal year from activities conducted on such Federal 
    property.
        ``(ii) For purposes of clause (i), the amount of revenue that a 
    local educational agency receives during the previous fiscal year 
    from activities conducted on Federal property shall not include 
    payments received by the agency from the Secretary of Defense to 
    support--
            ``(I) the operation of a domestic dependent elementary or 
        secondary school; or
            ``(II) the provision of a free public education to 
        dependents of members of the Armed Forces residing on or near a 
        military installation.
        ``(B) If funds appropriated under section 8014(a) are 
    insufficient to pay the amount determined under subparagraph (A), 
    the Secretary shall ratably reduce the payment to each eligible 
    local educational agency.
        ``(C) Notwithstanding any other provision of this subsection, a 
    local educational agency may not be paid an amount under this 
    section that, when added to the amount such agency receives under 
    section 8003(b), exceeds the maximum amount that such agency is 
    eligible to receive for such fiscal year under section 
    8003(b)(1)(C).
        ``(2) Application of current levied real property tax rate.--In 
    calculating the amount that a local educational agency is eligible 
    to receive for a fiscal year, the Secretary shall apply the current 
    levied real property tax rate for current expenditures levied by 
    fiscally independent local educational agencies, or imputed for 
    fiscally dependent local educational agencies, to the current 
    annually determined aggregate assessed value of such acquired 
    Federal property.
        ``(3) Determination of aggregate assessed value.--Such 
    aggregate assessed value of such acquired Federal property shall be 
    determined on the basis of the highest and best use of property 
    adjacent to such acquired Federal property as of the time such 
    value is determined, and provided to the Secretary, by the local 
    official responsible for assessing the value of real property 
    located in the jurisdiction of such local educational agency for 
    the purpose of levying a property tax.
    ``(c) Applicability to Tennessee Valley Authority Act.--For the 
purpose of this section, any real property with respect to which 
payments are being made under section 13 of the Tennessee Valley 
Authority Act of 1933 shall not be regarded as Federal property.
    ``(d) Ownership by United States.--The United States shall be 
deemed to own Federal property for the purposes of this Act, where--
        ``(1) prior to the transfer of Federal property, the United 
    States owned Federal property meeting the requirements of 
    subparagraphs (A), (B), and (C) of subsection (a)(1); and
        ``(2) the United States transfers a portion of the property 
    referred to in paragraph (1) to another nontaxable entity, and the 
    United States--
            ``(A) restricts some or any construction on such property;
            ``(B) requires that the property be used in perpetuity for 
        the public purposes for which the property was conveyed;
            ``(C) requires the grantee of the property to report to the 
        Federal Government (or its agent) regarding information on the 
        use of the property;
            ``(D) except with the approval of the Federal Government 
        (or its agent), prohibits the sale, lease, assignment, or other 
        disposal of the property unless such sale, lease, assignment, 
        or other disposal is to another eligible government agency; and
            ``(E) reserves to the Federal Government a right of 
        reversion at any time the Federal Government (or its agent) 
        deems it necessary for the national defense.
    ``(e) Local Educational Agency Containing Forest Service Land and 
Serving Certain Counties.--Beginning with fiscal year 1995, a local 
educational agency shall be deemed to meet the requirements of 
subsection (a)(1)(C) if such local educational agency meets the 
following requirements:
        ``(1) Acreage and acquisition by the forest service.--The local 
    educational agency serves a school district that contains between 
    20,000 and 60,000 acres of land that has been acquired by the 
    Forest Service of the Department of Agriculture between 1915 and 
    1990, as demonstrated by written evidence from the Forest Service 
    satisfactory to the Secretary.
        ``(2) County charter.--The local educational agency serves a 
    county chartered under State law in 1875 or 1890.
    ``(f) Special Rule.--Beginning with fiscal year 1994, and 
notwithstanding any other provision of law limiting the period during 
which fiscal year 1994 funds may be obligated, the Secretary shall 
treat the local educational agency serving the Wheatland R-II School 
District, Wheatland, Missouri, as meeting the eligibility requirements 
of section 2(a)(1)(C) of the Act of September 30, 1950 (Public Law 874, 
81st Congress) (as such section was in effect on the day preceding the 
date of enactment of the Improving America's Schools Act of 1994) (20 
U.S.C. 237(a)(1)(C)) or subsection (a)(1)(C).
``SEC. 8003. PAYMENTS FOR ELIGIBLE FEDERALLY CONNECTED CHILDREN.
    ``(a) Computation of Payment.--
        ``(1) In general.--For the purpose of computing the amount that 
    a local educational agency is eligible to receive under subsection 
    (b), (d), or (f) for any fiscal year, the Secretary shall determine 
    the number of children who were in average daily attendance in the 
    schools of such agency, and for whom such agency provided free 
    public education, during the preceding school year and who, while 
    in attendance at such schools--
            ``(A)(i) resided on Federal property with a parent employed 
        on Federal property situated in whole or in part within the 
        boundaries of the school district of such agency; or
            ``(ii) resided on Federal property with a parent who is an 
        official of, and accredited by, a foreign government and is a 
        foreign military officer;
            ``(B) resided on Federal property and had a parent on 
        active duty in the uniformed services (as defined in section 
        101 of title 37, United States Code);
            ``(C) resided on Indian lands;
            ``(D)(i) had a parent on active duty in the uniformed 
        services (as defined by section 101 of title 37, United States 
        Code) but did not reside on Federal property; or
            ``(ii) had a parent who is an official of, and has been 
        accredited by, a foreign government and is a foreign military 
        officer but did not reside on Federal property;
            ``(E) resided in low-rent housing;
            ``(F) resided on Federal property and is not described in 
        subparagraph (A) or (B); or
            ``(G) resided with a parent employed on Federal property 
        situated--
                ``(i) in whole or in part in the county in which such 
            agency is located, or in whole or in part in such agency if 
            such agency is located in more than one county; or
                ``(ii) if not in such county, in whole or in part in 
            the same State as such agency.
        ``(2) Determination of weighted student units.--For the purpose 
    of computing the basic support payment under subsection (b), the 
    Secretary shall calculate the total number of weighted student 
    units for a local educational agency by adding together the results 
    obtained by the following computations:
            ``(A) Multiply the number of children described in 
        subparagraphs (A) and (B) of paragraph (1) by a factor of 1.0.
            ``(B) Multiply the number of children described in 
        paragraph (1)(C) by a factor of 1.25.
            ``(C) Multiply the number of children described in 
        subparagraphs (A) and (B) of paragraph (1) by a factor of .35 
        if the local educational agency has--
                ``(i) a number of such children described in such 
            subparagraphs which exceeds 6,500; and
                ``(ii) an average daily attendance for all children 
            which exceeds 100,000.
            ``(D) Multiply the number of children described in 
        subparagraphs (D) and (E) of paragraph (1) by a factor of .10.
            ``(E) Multiply the number of children described in 
        subparagraphs (F) and (G) of paragraph (1) by a factor of .05.
        ``(3) Special rule.--The Secretary shall only compute a payment 
    for a local educational agency for children described in 
    subparagraph (F) or (G) of paragraph (1) if the number of such 
    children equals or exceeds 2,000 and such number equals or exceeds 
    15 percent of the total number of students in average daily 
    attendance in the schools of such agency.
    ``(b) Basic Support Payments and Payments With Respect to Fiscal 
Years in Which Insufficient Funds Are Appropriated.--
        ``(1) Basic support payments.--
            ``(A) In general.--From the amount appropriated under 
        section 8014(b) for a fiscal year, the Secretary is authorized 
        to make basic support payments to eligible local educational 
        agencies with children described in subsection (a).
            ``(B) Eligibility.--A local educational agency is eligible 
        to receive a basic support payment under subparagraph (A) for a 
        fiscal year with respect to a number of children determined 
        under subsection (a)(1) only if the number of children so 
        determined with respect to such agency amounts to the lesser 
        of--
                ``(i) at least 400 such children; or
                ``(ii) a number of such children which equals at least 
            3 percent of the total number of children who were in 
            average daily attendance, during such year, at the schools 
            of such agency and for whom such agency provided free 
            public education.
            ``(C) Maximum amount.--The maximum amount that a local 
        educational agency is eligible to receive under this subsection 
        for any fiscal year is the sum of the total weighted student 
        units, as computed under subsection (a)(2), multiplied by the 
        greater of--
                ``(i) one-half of the average per-pupil expenditure of 
            the State in which the local educational agency is located 
            for the third fiscal year preceding the fiscal year for 
            which the determination is made;
                ``(ii) one-half of the average per-pupil expenditure of 
            all of the States for the third fiscal year preceding the 
            fiscal year for which the determination is made;
                ``(iii) the comparable local contribution rate 
            certified by the State, as determined under regulations 
            prescribed to carry out the Act of September 30, 1950 
            (Public Law 874, 81st Congress), as such regulations were 
            in effect on January 1, 1994; or
                ``(iv) the average per-pupil expenditure of the State 
            in which the local educational agency is located, 
            multiplied by the local contribution percentage.
        ``(2) Payments with respect to fiscal years in which 
    insufficient funds are appropriated.--
            ``(A) In general.--For any fiscal year in which the sums 
        appropriated under section 8014(b) are insufficient to pay to 
        each local educational agency the full amount computed under 
        paragraph (1), the Secretary shall make payments in accordance 
        with this paragraph.
            ``(B) Learning opportunity threshold payments.--(i) For 
        fiscal years described in subparagraph (A), the Secretary shall 
        compute a learning opportunity threshold payment (hereafter in 
        this title referred to as the `threshold payment') by 
        multiplying the amount obtained under paragraph (1)(C) by the 
        total percentage obtained by adding--
                ``(I) the percentage of federally connected children 
            for each local educational agency determined by calculating 
            the fraction, the numerator of which is the total number of 
            children described under subsection (a)(1) and the 
            denominator of which is the total number of children in 
            average daily attendance at the schools served by such 
            agency; and
                ``(II) the percentage that funds under paragraph (1)(C) 
            represent of the total budget of the local educational 
            agency, determined by calculating the fraction, the 
            numerator of which is the total amount of funds calculated 
            for each local educational agency under this paragraph (not 
            including amounts received under subsection (f)), and the 
            denominator of which is the total current expenditures for 
            such agency in the second preceding fiscal year for which 
            the determination is made.
            ``(ii) Such total percentage used to calculate threshold 
        payments under paragraph (1) shall not exceed 100.
            ``(iii) For the purpose of determining the percentages 
        described in subclauses (I) and (II) of clause (i) that are 
        applicable to the local educational agency providing free 
        public education to students in grades 9 through 12 residing on 
        Hanscom Air Force Base, Massachusetts, the Secretary shall 
        consider only that portion of such agency's total enrollment of 
        students in grades 9 through 12 when calculating the percentage 
        under such subclause (I) and only that portion of the total 
        current expenditures attributed to the operation of grades 9 
        through 12 in such agency when calculating the percentage under 
        subclause (II).
            ``(C) Ratable distribution.--For fiscal years described in 
        subparagraph (A), the Secretary shall make payments as a 
        ratable distribution based upon the computation made under 
        subparagraph (B).
    ``(c) Prior Year Data.--
        ``(1) In general.--Except as provided in paragraph (2) and 
    subsection (f), all calculations under this section shall be based 
    on data for each local educational agency from not later than the 
    fiscal year preceding the fiscal year for which the agency is 
    making application for payment.
        ``(2) Exception.--Calculations for a local educational agency 
    that is newly established by a State shall, for the first year of 
    operation of such agency, be based on data from the fiscal year for 
    which the agency is making application for payment.
    ``(d) Children With Disabilities.--
        ``(1) In general.--From the amount appropriated under section 
    8014(c) for a fiscal year, the Secretary shall pay to each eligible 
    local educational agency, on a pro rata basis, the amounts 
    determined by--
            ``(A) multiplying the number of children described in 
        subparagraphs (A)(ii), (B) and (C) of subsection (a)(1) who are 
        eligible to receive services under the Individuals with 
        Disabilities Education Act (20 U.S.C. 1400 et seq.) by a factor 
        of 1.0; and
            ``(B) multiplying the number of children described in 
        subparagraph (D) of subsection (a)(1) who are eligible to 
        receive services under such Act by a factor of 0.5.
        ``(2) Use of funds.--A local educational agency that receives 
    funds under paragraph (1) shall use such funds to provide a free 
    appropriate public education to children described in paragraph (1) 
    in accordance with the Individuals with Disabilities Education Act 
    (20 U.S.C. 1400 et seq.).
    ``(e) Hold-Harmless Amounts.--
        ``(1) In general.--(A) Except as provided in paragraph (4)(A), 
    the total amount that the Secretary shall pay a local educational 
    agency under subsection (b) shall not be less than 85 percent of 
    the amount such agency received for the preceding fiscal year--
            ``(i) in the case of fiscal year 1995 only, under 
        subsections (a) and (b) of section 3 of the Act of September 
        30, 1950 (Public Law 874, 81st Congress) (as such section was 
        in effect on the day preceding the date of enactment of the 
        Improving America's Schools Act of 1994); or
            ``(ii) in the case of fiscal years 1996, 1997, 1998, or 
        1999, under such subsection (b).
        ``(B) For fiscal year 1995 only, the Secretary shall pay, to 
    each local educational agency that is not eligible for a payment 
    under subsection (b) but that received a payment under section 3 of 
    the Act of September 30, 1950 (Public Law 874, 81st Congress) (as 
    such Act was in effect on the day preceding the date of enactment 
    of the Improving America's Schools Act of 1994) for fiscal year 
    1994, an amount which is not less than 85 percent of the payment 
    such agency received under such section 3 for fiscal year 1994.
        ``(2) Two-year applicability.--Paragraph (1)(A) shall apply to 
    any one local educational agency for a maximum of two consecutive 
    fiscal years.
        ``(3) Phase-out payment.--A local educational agency which 
    received a payment under section 3(e) of the Act of September 30, 
    1950 (Public Law 874, 81st Congress) (as such section was in effect 
    on the day preceding the date of enactment of the Improving 
    America's Schools Act of 1994) for fiscal year 1994 is eligible to 
    receive a payment, under subsection (b) for fiscal year 1995, in an 
    amount which is not less than 85 percent of the amount received by 
    such agency in fiscal year 1994 under such section 3(e).
        ``(4) Ratable reductions.--(A)(i) If necessary in order to make 
    payments to local educational agencies in accordance with 
    paragraphs (1) and (2), the Secretary first shall ratably reduce 
    payments under subsection (b) to local educational agencies that do 
    not receive a payment under this subsection.
        ``(ii) If additional funds become available for making payments 
    under subsection (b) for such fiscal year, payments that were 
    reduced under clause (i) shall be increased on the same basis as 
    such payments were reduced.
        ``(B)(i) If the sums made available under this title for any 
    fiscal year are insufficient to pay the full amounts that all local 
    educational agencies in all States are eligible to receive under 
    paragraphs (1) and (2) after the application of subparagraph (A) 
    for such year, the Secretary shall ratably reduce payments to all 
    such agencies for such year.
        ``(ii) If additional funds become available for making payments 
    under paragraphs (1) and (2) for such fiscal year, payments that 
    were reduced under clause (i) shall be increased on the same basis 
    as such payments were reduced.
    ``(f) Additional Assistance for Heavily Impacted Local Educational 
Agencies.--
        ``(1) Reservation.--From amounts appropriated under section 
    8014(b) for a fiscal year, the Secretary shall provide additional 
    assistance to meet special circumstances relating to the provision 
    of education in local educational agencies eligible to receive 
    assistance under this section.
        ``(2) Eligibility.--(A) A local educational agency is eligible 
    to receive additional assistance under this subsection only if such 
    agency--
            ``(i)(I) has an enrollment of federally connected children 
        described in subsection (a)(1) which constitutes a percentage 
        of the total student enrollment of such agency which is not 
        less than 50 percent if such agency receives a payment on 
        behalf of children described in subparagraphs (F) and (G) of 
        such subsection, or not less than 40 percent if such agency 
        does not receive a payment on behalf of such children; and
            ``(II) has a tax rate for general fund purposes which is at 
        least 95 percent of the average tax rate for general fund 
        purposes of comparable local educational agencies in the State;
            ``(ii)(I) has an enrollment of federally connected children 
        described in subsection (a)(1) which constitutes at least 35 
        percent of the total student enrollment of such agency; and
            ``(II) has a tax rate for general fund purposes which is at 
        least 125 percent of the average tax rate for general fund 
        purposes of comparable local educational agencies in the State; 
        or
            ``(iii) is a local educational agency whose boundaries are 
        the same as a Federal military installation.
        ``(B) If the current expenditures in those local educational 
    agencies which the Secretary has determined to be generally 
    comparable to the local educational agency for which a computation 
    is made under subsection (b)(1)(C) are not reasonably comparable 
    because of unusual geographical factors which affect the current 
    expenditures necessary to maintain, in such agency, a level of 
    education equivalent to that maintained in such other agencies, 
    then the Secretary shall increase the local contribution rate for 
    such agency by such an amount which the Secretary determines will 
    compensate such agency for the increase in current expenditures 
    necessitated by such unusual geographical factors. The amount of 
    any such supplementary payment may not exceed the per-pupil share 
    (computed with regard to all children in average daily attendance), 
    as determined by the Secretary, of the increased current 
    expenditures necessitated by such unusual geographic factors.
        ``(C) Any local educational agency determined eligible under 
    clause (iii) of subparagraph (A) shall be deemed to have met the 
    tax effort requirements for eligibility under clause (i)(II) or 
    (ii)(II) of such subparagraph.
        ``(3) Maximum payments.--
            ``(A) In general.--Subject to subparagraph (B), the 
        Secretary shall determine the maximum amount that a local 
        educational agency may receive under this subsection in 
        accordance with the following computations:
                ``(i) The Secretary shall first determine the greater 
            of--

                    ``(I) the average per-pupil expenditure of the 
                State in which the local educational agency is located 
                or the average per-pupil expenditure of all the States;
                    ``(II) the average per-pupil expenditure of 
                generally comparable local educational agencies located 
                in the State of the local educational agency, as 
                defined in regulations issued by the Secretary; or
                    ``(III) the average per-pupil expenditure of three 
                generally comparable local educational agencies located 
                in the State of the local educational agency, as 
                defined in regulations issued by the Secretary.

                ``(ii) The Secretary shall next subtract from the 
            amount determined under clause (i) the average amount of 
            State aid per pupil received by the local educational 
            agency.
                ``(iii) The Secretary shall next multiply the amount 
            determined under clause (ii) by the total number of 
            students in average daily attendance at the schools of the 
            local educational agency as determined by the Secretary 
            under subsection (a)(1).
                ``(iv) If the tax rate used by the local educational 
            agency is greater than 95 percent, but less than 100 
            percent, of the tax rate of comparable local educational 
            agencies, the Secretary shall next multiply the amount 
            determined under clause (iii) by the percentage that the 
            tax rate of the local educational agency is of--

                    ``(I) the average tax rate of its generally 
                comparable local educational agencies; or
                    ``(II) the average tax rate of all the local 
                educational agencies in the State in which the local 
                educational agency is located.

                ``(v) The Secretary shall next subtract the total 
            amount of payments received by a local educational agency 
            under subsections (b) and (d) for a fiscal year from the 
            amount determined under clause (iii) or clause (iv), as the 
            case may be.
            ``(B) Special rule.--With respect to payments under this 
        subsection for a local educational agency described in clause 
        (ii) or (iii) of paragraph (2)(A), the maximum amount of such 
        payments shall be computed by taking the product of the average 
        per-pupil expenditure in all States multiplied by 0.7, except 
        that such amount may not exceed 125 percent of the average per-
        pupil expenditure in all local educational agencies in the 
        State.
        ``(4) Current year data.--The Secretary shall, for purposes of 
    providing assistance under this subsection, use--
            ``(A) student and revenue data from the fiscal year for 
        which the local educational agency is applying for assistance 
        under this subsection; and
            ``(B) the most recent data available which is adjusted to 
        such fiscal year.
        ``(5) Reduction in payments.--If funds appropriated to carry 
    out this subsection are insufficient to pay in full the amounts 
    determined under paragraph (3), the Secretary shall ratably reduce 
    the payment to each eligible local educational agency.
    ``(g) Additional Payments for Local Educational Agencies With High 
Concentrations of Children With Severe Disabilities.--
        ``(1) In general.--If any local educational agency receives 
    Federal funds from sources other than this title to carry out the 
    purposes of this title for any fiscal year due to the enrollment of 
    children described under subsection (a), then the Secretary shall 
    consider such funds as a payment to such agency under this part for 
    such fiscal year.
        ``(2) Special rule.--Notwithstanding any other provision of 
    law, if funds appropriated pursuant to section 8014(b) for payments 
    under subsection (b) to such agency for a fiscal year which, when 
    added to the funds described in paragraph (1) received by such 
    agency for such fiscal year, exceed the maximum amount described 
    under subsection (b)(1)(C), then the Secretary shall make available 
    from the funds appropriated under section 8014(b) for such fiscal 
    year such excess amounts to any local educational agency serving 
    two or more children described under subparagraph (B) or (D) of 
    subsection (a)(1) who have a severe disability and a parent serving 
    in the uniformed services (as defined by section 101 of title 37, 
    United States Code) who is assigned to a particular permanent duty 
    station for compassionate reasons (compassionate post assignment) 
    for the total costs associated with such children who are provided 
    an educational program provided outside the schools of such agency.
        ``(3) Remaining funds.--If funds remain after payments are made 
    under paragraph (2) for any fiscal year, then such remaining funds 
    shall be made available for expenditures under subsection (d) in 
    such fiscal year on a pro rata basis consistent with the 
    requirements of such subsection.
        ``(4) Ratable reductions.--If amounts available to carry out 
    paragraph (2) for any fiscal year are insufficient to pay in full 
    the total payment that all eligible local educational agencies are 
    eligible to receive under such paragraph for such year, then the 
    Secretary shall ratably reduce such payments to such agencies for 
    such year.
    ``(h) Other Funds.--Notwithstanding any other provision of law, a 
local educational agency receiving funds under this section may also 
receive funds under section 6 of the Act of September 30, 1950 (Public 
Law 874, 81st Congress) (as such section was in effect on the day 
preceding the date of enactment of the Improving America's Schools Act 
of 1994) or such section's successor authority.
    ``(i) Maintenance of Effort.--A local educational agency may 
receive funds under sections 8002 and 8003(b) for any fiscal year only 
if the State educational agency finds that either the combined fiscal 
effort per student or the aggregate expenditures of that agency and the 
State with respect to the provision of free public education by that 
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.
``SEC. 8004. POLICIES AND PROCEDURES RELATING TO CHILDREN RESIDING ON 
INDIAN LANDS.
    ``(a) In General.--A local educational agency that claims children 
residing on Indian lands for the purpose of receiving funds under 
section 8003 shall establish policies and procedures to ensure that--
        ``(1) such children participate in programs and activities 
    supported by such funds on an equal basis with all other children;
        ``(2) parents of such children and Indian tribes are afforded 
    an opportunity to present their views on such programs and 
    activities, including an opportunity to make recommendations on the 
    needs of those children and how the local educational agency may 
    help such children realize the benefits of such programs and 
    activities;
        ``(3) parents and Indian tribes are consulted and involved in 
    planning and developing such programs and activities;
        ``(4) relevant applications, evaluations, and program plans are 
    disseminated to the parents and Indian tribes; and
        ``(5) parents and Indian tribes are afforded an opportunity to 
    present their views to such agency regarding such agency's general 
    educational program.
    ``(b) Records.--A local educational agency that claims children 
residing on Indian lands for the purpose of receiving funds under 
section 8003 shall maintain records demonstrating such agency's 
compliance with the requirements contained in subsection (a).
    ``(c) Waiver.--A local educational agency that claims children 
residing on Indian lands for the purpose of receiving funds under 
section 8003 shall not be required to comply with the requirements of 
subsections (a) and (b) for any fiscal year with respect to any Indian 
tribe from which such agency has received a written statement that the 
agency need not comply with those subsections because the tribe is 
satisfied with the provision of educational services by such agency to 
such children.
    ``(d) Technical Assistance and Enforcement.--The Secretary shall--
        ``(1) provide technical assistance to local educational 
    agencies, parents, and Indian tribes to enable such agencies, 
    parents, and tribes to carry out this section; and
        ``(2) enforce this section through such actions, which may 
    include the withholding of funds, as the Secretary determines to be 
    appropriate, after affording the affected local educational agency, 
    parents, and Indian tribe an opportunity to present their views.
    ``(e) Complaints.--
        ``(1) In general.--(A) Any tribe, or its designee, which has 
    students in attendance at a local educational agency may, in its 
    discretion and without regard to the requirements of any other 
    provision of law, file a written complaint with the Secretary 
    regarding any action of a local educational agency taken pursuant 
    to, or relevant to, the requirements of this section.
        ``(B) Within ten working days from receipt of a complaint, the 
    Secretary shall--
            ``(i) designate a time and place for a hearing into the 
        matters relating to the complaint at a location in close 
        proximity to the local educational agency involved, or if the 
        Secretary determines there is good cause, at some other 
        location convenient to both the tribe, or its designee, and the 
        local educational agency;
            ``(ii) designate a hearing examiner to conduct the hearing; 
        and
            ``(iii) notify the affected tribe or tribes and the local 
        educational agency involved of the time, place, and nature of 
        the hearing and send copies of the complaint to the local 
        educational agency and the affected tribe or tribes.
        ``(2) Hearing.--The hearing shall be held within 30 days of the 
    designation of a hearing examiner and shall be open to the public. 
    A record of the proceedings shall be established and maintained.
        ``(3) Evidence; recommendations; cost.--The complaining tribe, 
    or its designee, and the local educational agency shall be entitled 
    to present evidence on matters relevant to the complaint and to 
    make recommendations concerning the appropriate remedial actions. 
    Each party to the hearing shall bear only its own costs in the 
    proceedings.
        ``(4) Findings and recommendations.--Within 30 days of the 
    completion of the hearing, the hearing examiner shall, on the basis 
    of the record, make written findings of fact and recommendations 
    concerning appropriate remedial action, if any, which should be 
    taken. The hearing examiner's findings and recommendations, along 
    with the hearing record, shall be forwarded to the Secretary.
        ``(5) Written determination.--Within 30 days of the Secretary's 
    receipt of the findings, recommendations, and record, the Secretary 
    shall, on the basis of the record, make a written determination of 
    the appropriate remedial action, if any, to be taken by the local 
    educational agency, the schedule for completion of the remedial 
    action, and the reasons for the Secretary's decision.
        ``(6) Copies provided.--Upon completion of the Secretary's 
    final determination, the Secretary shall provide the complaining 
    tribe, or its designee, and the local educational agency with 
    copies of the hearing record, the hearing examiner's findings and 
    recommendations, and the Secretary's final determination. The final 
    determination of the Secretary shall be subject to judicial review.
        ``(7) Consolidation.--In all actions under this subsection, the 
    Secretary shall have discretion to consolidate complaints involving 
    the same tribe or local educational agency.
        ``(8) Withholding.--If the local educational agency rejects the 
    determination of the Secretary, or if the remedy required is not 
    undertaken within the time established and the Secretary determines 
    that an extension of the time established will not effectively 
    encourage the remedy required, the Secretary shall withhold payment 
    of all moneys to which such local agency is eligible under section 
    8003 until such time as the remedy required is undertaken, except 
    where the complaining tribe or its designee formally requests that 
    such funds be released to the local educational agency, except that 
    the Secretary may not withhold such moneys during the course of the 
    school year if the Secretary determines that such withholding would 
    substantially disrupt the educational programs of the local 
    educational agency.
        ``(9) Rejection of determination.--If the local educational 
    agency rejects the determination of the Secretary and a tribe 
    exercises the option under section 1101(d) of the Education 
    Amendments of 1978, to have education services provided either 
    directly by the Bureau of Indian Affairs or by contract with the 
    Bureau of Indian Affairs, any Indian students affiliated with that 
    tribe who wish to remain in attendance at the local educational 
    agency against whom the complaint which led to the tribal action 
    under such subsection (d) was lodged may be counted with respect to 
    that local educational agency for the purpose of receiving funds 
    under section 8003. In such event, funds under such section shall 
    not be withheld pursuant to paragraph (8) and no further complaints 
    with respect to such students may be filed under paragraph (1).
    ``(f) Construction.--This section is based upon the special 
relationship between the Indian nations and the United States and 
nothing in this section shall be construed to relieve any State of any 
duty with respect to any citizens of that State.

``SEC. 8005. APPLICATION FOR PAYMENTS UNDER SECTIONS 8002 AND 8003.

    ``(a) In General.--A local educational agency desiring to receive a 
payment under section 8002 or 8003 shall--
        ``(1) submit an application for such payment to the Secretary; 
    and
        ``(2) provide a copy of such application to the State 
    educational agency.
    ``(b) Contents.--Each such application shall be submitted in such 
form and manner, and shall contain such information, as the Secretary 
may require, including--
        ``(1) information to determine the eligibility of the local 
    educational agency for a payment and the amount of such payment; 
    and
        ``(2) where applicable, an assurance that such agency is in 
    compliance with section 8004 (relating to children residing on 
    Indian lands).
    ``(c) Deadline for Submission.--The Secretary shall establish 
deadlines for the submission of applications under this section.
    ``(d) Approval.--
        ``(1) In general.--The Secretary shall approve an application 
    submitted under this section that--
            ``(A) except as provided in paragraph (2), is filed by the 
        deadline established under subsection (c); and
            ``(B) otherwise meets the requirements of this title.
        ``(2) Reduction in payment.--The Secretary shall approve an 
    application filed not more than 60 days after a deadline 
    established under subsection (c) that otherwise meets the 
    requirements of this title, except that, notwithstanding section 
    8003(e), the Secretary shall reduce the payment based on such late 
    application by 10 percent of the amount that would otherwise be 
    paid.
        ``(3) Late applications.--The Secretary shall not accept or 
    approve any application that is filed more than 60 days after a 
    deadline established under subsection (c).
        ``(4) State application authority.--Notwithstanding any other 
    provision of law, a State educational agency that had been accepted 
    as an applicant for funds under section 3 of the Act of September 
    30, 1950 (Public Law 874, 81st Congress) (as such section was in 
    effect on the day preceding the date of enactment of the Improving 
    America's Schools Act of 1994) in fiscal year 1994 shall be 
    permitted to continue as an applicant under the same conditions by 
    which such agency made application during such fiscal year only if 
    such State educational agency distributes all funds received for 
    the students for which application is being made by such State 
    educational agency to the local educational agencies providing 
    educational services to such students.
``SEC. 8006. PAYMENTS FOR SUDDEN AND SUBSTANTIAL INCREASES IN 
ATTENDANCE OF MILITARY DEPENDENTS.
    ``(a) Eligibility.--A local educational agency is eligible for a 
payment under this section if--
        ``(1) the number of children in average daily attendance during 
    the school year for which the determination is made is at least 10 
    percent or 100 more than the number of children in average daily 
    attendance in the school year preceding the school year for which 
    the determination is made; and
        ``(2) the number of children in average daily attendance with a 
    parent on active duty (as defined in section 101(18) of title 37, 
    United States Code) in the Armed Forces who are in attendance at 
    such agency because of the assignment of their parent to a new duty 
    station between May 15 and September 30, inclusive, of the fiscal 
    year for which the determination is made, as certified by an 
    appropriate local official of the Department of Defense, is at 
    least 10 percent or 100 more than the number of children in average 
    daily attendance in the preceding school year.
    ``(b) Application.--A local educational agency that wishes to 
receive a payment under this section shall file an application with the 
Secretary by October 15 of the school year for which payment is 
requested, in such manner and containing such information as the 
Secretary may prescribe, including information demonstrating that such 
agency is eligible for such a payment.
    ``(c) Children To Be Counted.--For each eligible local educational 
agency that applies for a payment under this section, the Secretary 
shall determine the lesser of--
        ``(1) the increase in the number of children in average daily 
    attendance from the school year preceding the fiscal year for which 
    the determination is made; and
        ``(2) the number of children described in subsection (a)(2).
    ``(d) Payments.--
        ``(1) In general.--Except as provided in paragraph (2), from 
    the amount appropriated for a fiscal year under section 8014(d), 
    the Secretary shall pay each local educational agency with an 
    approved application an amount equal to one-half of the national 
    average per-pupil expenditure multiplied by the number of such 
    children determined under subsection (c) for that local educational 
    agency.
        ``(2) Ratable reduction.--(A) If the amount appropriated to 
    carry out this section for any fiscal year is insufficient to pay 
    the full payment that all eligible local educational agencies are 
    eligible to receive under this section for such year, then the 
    Secretary shall ratably reduce the payments to such agencies for 
    such year.
        ``(B) If additional funds become available for making payments 
    under paragraph (1) for such fiscal year, payments that were 
    reduced under subparagraph (A) shall be increased on the same basis 
    as such payments were reduced.
    ``(e) Notification Process.--
        ``(1) Establishment.--The Secretary shall establish, with the 
    Secretary of Defense, a notification process relating to the 
    closure of Department of Defense facilities, or the adjustment of 
    personnel levels assigned to such facilities, which may 
    substantially affect the student enrollment levels of local 
    educational agencies which receive or may receive payments under 
    this title.
        ``(2) Information.--Such process shall provide timely 
    information regarding such closures and such adjustments--
            ``(A) by the Secretary of Defense to the Secretary; and
            ``(B) by the Secretary to the affected local educational 
        agencies.

``SEC. 8007. CONSTRUCTION.

    ``(a) Payments Authorized.--From the amount appropriated for each 
fiscal year under section 8014(e), the Secretary shall make payments to 
each local educational agency--
        ``(1) that receives a basic payment under section 8003(b); and
        ``(2)(A) in which the number of children determined under 
    section 8003(a)(1)(C) constituted at least 50 percent of the number 
    of children who were in average daily attendance in the schools of 
    such agency during the preceding school year;
        ``(B) in which the number of children determined under 
    subparagraphs (B) and (D)(i) of section 8003(a)(1) constituted at 
    least 50 percent of the number of children who were in average 
    daily attendance in the schools of such agency during the school 
    year preceding the school year for which the determination is made 
    and in which the agency at any 2 times during the four fiscal years 
    preceding the date of enactment of the Improving America's Schools 
    Act of 1994 was denied by a vote of the agency's eligible voters a 
    bond referendum for the purposes of school construction or 
    renovation;
        ``(C) that receives assistance under section 8003(f); or
        ``(D) that receives assistance under section 8006.
    ``(b) Amount of Payments.--The amount of a payment to each such 
agency for a fiscal year shall be equal to--
        ``(1) the amount appropriated under section 8014(e) for such 
    year; divided by
        ``(2) the number of children determined under section 
    8003(a)(2) for all local educational agencies described in 
    subsection (a), but not including any children attending a school 
    assisted or provided by the Secretary under section 8008 or section 
    10 of the Act of September 23, 1950 (Public Law 815, 81st Congress) 
    (as such Act was in effect on the day preceding the date of 
    enactment of the Improving America's Schools Act of 1994); 
    multiplied by
        ``(3) the number of such children determined for such agency.
    ``(c) Use of Funds.--Any local educational agency that receives 
funds under this section shall use such funds for construction, as 
defined in section 8013(3).

``SEC. 8008. FACILITIES.

    ``(a) Current Facilities.--From the amount appropriated for any 
fiscal year under section 8014(f), the Secretary may continue to 
provide assistance for school facilities that were supported by the 
Secretary under section 10 of the Act of September 23, 1950 (Public Law 
815, 81st Congress) (as such Act was in effect on the day preceding the 
date of the enactment of the Improving America's Schools Act of 1994).
    ``(b) Transfer of Facilities.--
        ``(1) In general.--The Secretary shall, as soon as practicable, 
    transfer to the appropriate local educational agency or another 
    appropriate entity all the right, title, and interest of the United 
    States in and to each facility provided under section 10 of the Act 
    of September 23, 1950 (Public Law 815, 81st Congress), or under 
    section 204 or 310 of the Act of September 30, 1950 (Public Law 
    874, 81st Congress) (as such Acts were in effect on January 1, 
    1958).
        ``(2) Other requirements.--Any such transfer shall be without 
    charge to such agency or entity, and prior to such transfer, the 
    transfer shall be consented to by the local educational agency or 
    other appropriate entity, and may be made on such terms and 
    conditions as the Secretary deems appropriate to carry out the 
    purposes of this title.
``SEC. 8009. STATE CONSIDERATION OF PAYMENTS IN PROVIDING STATE AID.
    ``(a) General Prohibition.--Except as provided in subsection (b), a 
State may not--
        ``(1) consider payments under this title or under the Act of 
    September 30, 1950 (Public Law 874, 81st Congress) (as such Act was 
    in effect on the day preceding the date of enactment of the 
    Improving America's Schools Act of 1994) in determining for any 
    fiscal year--
            ``(A) the eligibility of a local educational agency for 
        State aid for free public education; or
            ``(B) the amount of such aid; or
        ``(2) make such aid available to local educational agencies in 
    a manner that results in less State aid to any local educational 
    agency that is eligible for such payment than such agency would 
    receive if such agency were not so eligible.
    ``(b) State Equalization Plans.--
        ``(1) In general.--A State may reduce State aid to a local 
    educational agency that receives a payment under section 8002 or 
    8003(b) (except the amount calculated in excess of 1.0 under 
    subparagraph (B) of section 8003(a)(2)) or under the Act of 
    September 30, 1950 (Public Law 874, 81st Congress) as such Act was 
    in effect on the day preceding the date of enactment of the 
    Improving America's Schools Act of 1994 (other than an increase in 
    payments described in paragraphs (2)(B), (2)(C), (2)(D), or 
    (3)(B)(ii) of section 3(d) of such Act of September 30, 1950) for 
    any fiscal year if the Secretary determines, and certifies under 
    subsection (c)(3)(A), that such State has in effect a program of 
    State aid that equalizes expenditures for free public education 
    among local educational agencies in such State.
        ``(2) Computation.--
            ``(A) In general.--For purposes of paragraph (1), a program 
        of State aid equalizes expenditures among local educational 
        agencies if, in the second fiscal year preceding the fiscal 
        year for which the determination is made, the amount of per-
        pupil expenditures made by, or per-pupil revenues available to, 
        the local educational agency in the State with the highest such 
        per-pupil expenditures or revenues did not exceed the amount of 
        such per-pupil expenditures made by, or per-pupil revenues 
        available to, the local educational agency in the State with 
        the lowest such expenditures or revenues by more than--
                ``(i) 25 percent for fiscal year 1995, 1996, or 1997; 
            and
                ``(ii) 20 percent for fiscal year 1998 or 1999.
            ``(B) Other factors.--In making a determination under this 
        subsection, the Secretary shall--
                ``(i) disregard local educational agencies with per-
            pupil expenditures or revenues above the 95th percentile or 
            below the 5th percentile of such expenditures or revenues 
            in the State; and
                ``(ii) take into account the extent to which a program 
            of State aid reflects the additional cost of providing free 
            public education in particular types of local educational 
            agencies, such as those that are geographically isolated, 
            or to particular types of students, such as children with 
            disabilities.
        ``(3) Exception.--Notwithstanding paragraph (2), if the 
    Secretary determines that the State has substantially revised its 
    program of State aid, the Secretary may certify such program for 
    any fiscal year only if--
            ``(A) the Secretary determines, on the basis of projected 
        data, that the State's program will meet the disparity standard 
        described in paragraph (2) for the fiscal year for which the 
        determination is made; and
            ``(B) the State provides an assurance to the Secretary 
        that, if final data do not demonstrate that the State's program 
        met such standard for the fiscal year for which the 
        determination is made, the State will pay to each affected 
        local educational agency the amount by which the State reduced 
        State aid to the local educational agency.
    ``(c) Procedures for Review of State Equalization Plans.--
        ``(1) Written notice.--
            ``(A) In general.--Any State that wishes to consider 
        payments described in subsection (b)(1) in providing State aid 
        to local educational agencies shall submit to the Secretary, 
        not later than 120 days before the beginning of the State's 
        fiscal year, a written notice of such State's intention to do 
        so.
            ``(B) Contents.--Such notice shall be in the form and 
        contain the information the Secretary requires, including 
        evidence that the State has notified each local educational 
        agency in the State of such State's intention to consider such 
        payments in providing State aid.
        ``(2) Opportunity to present views.--Before making a 
    determination under subsection (b), the Secretary shall afford the 
    State, and local educational agencies in the State, an opportunity 
    to present their views.
        ``(3) Qualification procedures.--If the Secretary determines 
    that a program of State aid qualifies under subsection (b), the 
    Secretary shall--
            ``(A) certify the program and so notify the State; and
            ``(B) afford an opportunity for a hearing, in accordance 
        with section 8011(a), to any local educational agency adversely 
        affected by such certification.
        ``(4) Non-qualification procedures.--If the Secretary 
    determines that a program of State aid does not qualify under 
    subsection (b), the Secretary shall--
            ``(A) so notify the State; and
            ``(B) afford an opportunity for a hearing, in accordance 
        with section 8011(a), to the State, and to any local 
        educational agency adversely affected by such determination.
    ``(d) Treatment of State Aid.--
        ``(1) In general.--If a State has in effect a program of State 
    aid for free public education for any fiscal year, which is 
    designed to equalize expenditures for free public education among 
    the local educational agencies of that State, payments under this 
    title or under the Act of September 30, 1950 (Public Law 874, 81st 
    Congress) (as such Act was in effect on the day preceding the date 
    of enactment of the Improving America's Schools Act of 1994) for 
    any fiscal year may be taken into consideration by such State in 
    determining the relative--
            ``(A) financial resources available to local educational 
        agencies in that State; and
            ``(B) financial need of such agencies for the provision of 
        free public education for children served by such agency, 
        except that a State may consider as local resources funds 
        received under this title or under the Act of September 30, 
        1950 (Public Law 874, 81st Congress) (as such Act was in effect 
        on the day preceding the date of enactment of the Improving 
        America's Schools Act of 1994) only in proportion to the share 
        that local tax revenues covered under a State equalization 
        program are of total local tax revenues.
        ``(2) Prohibition.--A State may not take into consideration 
    payments under this title or under the Act of September 30, 1950 
    (Public Law 874, 81st Congress) (as such Act was in effect on the 
    day preceding the date of enactment of the Improving America's 
    Schools Act of 1994) before such State's program of State aid has 
    been certified by the Secretary under subsection (c)(3).
    ``(e) Remedies for State Violations.--
        ``(1) In general.--The Secretary or any aggrieved local 
    educational agency may, not earlier than 150 days after an adverse 
    determination by the Secretary against a State for violation of 
    subsections (a) or (d)(2) or for failure to carry out an assurance 
    under subsection (b)(3)(B), and if an administrative proceeding has 
    not been concluded within such time, bring an action in a United 
    States district court against such State for such violations or 
    failure.
        ``(2) Immunity.--A State shall not be immune under the 11th 
    amendment to the Constitution of the United States from an action 
    described in paragraph (1).
        ``(3) Relief.--The court shall grant such relief as the court 
    determines is appropriate.

``SEC. 8010. FEDERAL ADMINISTRATION.

    ``(a) Payments in Whole Dollar Amounts.--The Secretary shall round 
any payments under this title to the nearest whole dollar amount.
    ``(b) Other Agencies.--Each Federal agency administering Federal 
property on which children reside, and each agency principally 
responsible for an activity that may occasion assistance under this 
title, shall, to the maximum extent practicable, comply with requests 
of the Secretary for information the Secretary may require to carry out 
this title.
    ``(c) Special Rules.--
        ``(1) Certain children eligible under subsection (a) or (b)  of 
    section 3 of public law 81-874.--Notwithstanding any other 
    provision of law, for any fiscal year before fiscal year 1995, the 
    Secretary shall treat as eligible under subsection (a) or (b) of 
    section 3 of the Act of September 30, 1950 (Public Law 874, 81st 
    Congress) (as such subsection was in effect on the day preceding 
    the date of enactment of the Improving America's Schools Act of 
    1994), and shall forgive the obligation of a local educational 
    agency to repay any amounts that such agency received under such 
    section for such fiscal year based on, any child who would be 
    eligible under such subsections except that such child does not 
    meet the requirements of subsection (a)(1)(B) or (b)(2)(B), 
    respectively, of such section 3, if such child meets the 
    requirements of paragraph (3) of this subsection.
        ``(2) Certain children eligible under subparagraphs (a) and 
    (g)(ii) of section 8003(a)(1).--(A) The Secretary shall treat as 
    eligible under subparagraph (A) of section 8003(a)(1) any child who 
    would be eligible under such subparagraph except that the Federal 
    property on which the child resides or on which the child's parent 
    is employed is not in the same State in which the child attends 
    school, if such child meets the requirements of paragraph (3) of 
    this subsection.
        ``(B) The Secretary shall treat as eligible under subparagraph 
    (G) of section 8003(a)(1) any child who would be eligible under 
    such subparagraph except that such child does not meet the 
    requirements of clause (ii) of such subparagraph, if such child 
    meets the requirements of paragraph (3) of this subsection.
        ``(3) Requirements.--A child meets the requirements of this 
    paragraph if--
            ``(A) such child resides--
                ``(i) in a State adjacent to the State in which the 
            local educational agency serving the school such child 
            attends is located; or
                ``(ii) with a parent employed on Federal property in a 
            State adjacent to the State in which such agency is 
            located;
            ``(B) the schools of such agency are within a more 
        reasonable commuting distance of such child's home than the 
        schools of the local educational agency that serves the school 
        attendance area where such child resides;
            ``(C) attending the schools of the local educational agency 
        that serves the school attendance area where such child resides 
        will impose a substantial hardship on such child;
            ``(D) the State in which such child attends school provides 
        funds for the education of such child on the same basis as all 
        other public school children in the State, unless otherwise 
        permitted under section 5(d)(2) of the Act of September 30, 
        1950 (Public Law 874, 81st Congress) (as such section was in 
        effect on the day preceding the date of enactment of the 
        Improving America's Schools Act of 1994) or section 8009(b) of 
        this title; and
            ``(E) such agency received a payment for fiscal year 1994 
        under section 8003(b) (or such section's predecessor authority) 
        on behalf of children described in paragraph (2).

``SEC. 8011. ADMINISTRATIVE HEARINGS AND JUDICIAL REVIEW.

    ``(a) Administrative Hearings.--A local educational agency and a 
State that is adversely affected by any action of the Secretary under 
this title or under the Act of September 30, 1950 (Public Law 874, 81st 
Congress) (as such Act was in effect on the day preceding the date of 
enactment of the Improving America's Schools Act of 1994) shall be 
entitled to a hearing on such action in the same manner as if such 
agency were a person under chapter 5 of title 5, United States Code.
    ``(b) Judicial Review of Secretarial Action.--
        ``(1) In general.--A local educational agency or a State 
    aggrieved by the Secretary's final decision following an agency 
    proceeding under subsection (a) may, within 60 days after receiving 
    notice of such decision, file with the United States court of 
    appeals for the circuit in which such agency or State is located a 
    petition for review of that action. The clerk of the court shall 
    promptly transmit a copy of the petition to the Secretary. The 
    Secretary shall then file in the court the record of the 
    proceedings on which the Secretary's action was based, as provided 
    in section 2112 of title 28, United States Code.
        ``(2) Findings of fact.--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. The Secretary may thereupon 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. Such new or modified findings of fact shall likewise 
    be conclusive if supported by substantial evidence.
        ``(3) Review.--The court shall have exclusive jurisdiction to 
    affirm the action of the Secretary or to set it aside, in whole or 
    in part. 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.

``SEC. 8012. FORGIVENESS OF OVERPAYMENTS.

    ``Notwithstanding any other provision of law, the Secretary may 
forgive the obligation of a local educational agency to repay, in whole 
or in part, the amount of any overpayment received under this title, or 
under the Act of September 30, 1950 (Public Law 874, 81st Congress) or 
the Act of September 23, 1950 (Public Law 815, 81st Congress) (as such 
Acts were in effect on the day preceding the date of enactment of the 
Improving America's Schools Act of 1994), if the Secretary determines 
that the overpayment was made as a result of an error made by--
        ``(1) the Secretary; or
        ``(2) the local educational agency and repayment of the full 
    amount of the overpayment will result in an undue financial 
    hardship on the agency and seriously harm the agency's educational 
    program.

``SEC. 8013. DEFINITIONS.

    ``For purposes of this title:
        ``(1) Armed forces.--The term `Armed Forces' means the Army, 
    Navy, Air Force, and Marine Corps.
        ``(2) Average per-pupil expenditure.--The term `average per-
    pupil expenditure' means--
            ``(A) the aggregate current expenditures of all local 
        educational agencies in the State; divided by
            ``(B) the total number of children in average daily 
        attendance for whom such agencies provided free public 
        education.
        ``(3) Construction.--The term `construction' means--
            ``(A) the preparation of drawings and specifications for 
        school facilities;
            ``(B) erecting, building, acquiring, altering, remodeling, 
        repairing, or extending school facilities;
            ``(C) inspecting and supervising the construction of school 
        facilities; and
            ``(D) debt service for such activities.
        ``(4) Current expenditures.--The term `current expenditures' 
    means expenditures for free public education, including 
    expenditures for administration, instruction, attendance and health 
    services, pupil transportation services, operation and maintenance 
    of plant, fixed charges, and net expenditures to cover deficits for 
    food services and student body activities, but does not include 
    expenditures for community services, capital outlay, and debt 
    service, or any expenditures made from funds awarded under part A 
    of title I and title VI. The determination of whether an 
    expenditure for the replacement of equipment is considered a 
    current expenditure or a capital outlay shall be determined in 
    accordance with generally accepted accounting principles as 
    determined by the State.
        ``(5) Federal property.--
            ``(A) In general.--Except as provided in subparagraphs (B) 
        through (F), the term `Federal property' means real property 
        that is not subject to taxation by any State or any political 
        subdivision of a State due to Federal agreement, law, or 
        policy, and that is--
                ``(i) owned by the United States or leased by the 
            United States from another entity;
                ``(ii)(I) held in trust by the United States for 
            individual Indians or Indian tribes;
                ``(II) held by individual Indians or Indian tribes 
            subject to restrictions on alienation imposed by the United 
            States;
                ``(III) conveyed at any time under the Alaska Native 
            Claims Settlement Act to a Native individual, Native group, 
            or village or regional corporation;
                ``(IV) public land owned by the United States that is 
            designated for the sole use and benefit of individual 
            Indians or Indian tribes; or
                ``(V) used for low-rent housing, as described in 
            paragraph (10), that is located on land described in 
            subclause (I), (II), (III), or (IV) of this clause or on 
            land that met one of those descriptions immediately before 
            such property's use for such housing;
                ``(iii)(I) part of a low-rent housing project assisted 
            under the United States Housing Act of 1937; or
                ``(II) used to provide housing for homeless children at 
            closed military installations pursuant to section 501 of 
            the Stewart B. McKinney Homeless Assistance Act; or
                ``(iv) owned by a foreign government or by an 
            international organization.
            ``(B) Schools providing flight training to members of air 
        force.--The term `Federal property' includes, so long as not 
        subject to taxation by any State or any political subdivision 
        of a State, and whether or not that tax exemption is due to 
        Federal agreement, law, or policy, any school providing flight 
        training to members of the Air Force under contract with the 
        Air Force at an airport owned by a State or political 
        subdivision of a State.
            ``(C) Non-federal easements, leases, licenses, permits, 
        improvements, and certain other real property.--The term 
        `Federal property' includes, whether or not subject to taxation 
        by a State or a political subdivision of a State--
                ``(i) any non-Federal easement, lease, license, permit, 
            or other such interest in Federal property as otherwise 
            described in this paragraph, but not including any non-
            Federal fee-simple interest;
                ``(ii) any improvement on Federal property as otherwise 
            described in this paragraph; and
                ``(iii) real property that, immediately before its sale 
            or transfer to a non-Federal party, was owned by the United 
            States and otherwise qualified as Federal property 
            described in this paragraph, but only for one year beyond 
            the end of the fiscal year of such sale or transfer.
            ``(D) Certain postal service property and pipelines and 
        utility lines.--Notwithstanding any other provision of this 
        paragraph, the term `Federal property' does not include--
                ``(i) any real property under the jurisdiction of the 
            United States Postal Service that is used primarily for the 
            provision of postal services; or
                ``(ii) pipelines and utility lines.
            ``(E) Property with respect to which state or local tax 
        revenues may not be expended, allocated, or available for free 
        public education.--Notwithstanding any other provision of this 
        paragraph, `Federal property' does not include any property on 
        which children reside that is otherwise described in this 
        paragraph if--
                ``(i) no tax revenues of the State or of any political 
            subdivision of the State may be expended for the free 
            public education of children who reside on that Federal 
            property; or
                ``(ii) no tax revenues of the State are allocated or 
            available for the free public education of such children.
            ``(F) Property located in the state of oklahoma owned by 
        indian housing authority for low-income housing.--The term 
        `Federal property' includes any real property located in the 
        State of Oklahoma that--
                ``(i) is owned by an Indian housing authority and used 
            for low-income housing (including housing assisted under 
            the mutual help ownership opportunity program under section 
            202 of the United States Housing Act of 1937); and
                ``(ii) at any time--

                    ``(I) was designated by treaty as tribal land; or
                    ``(II) satisfied the definition of Federal property 
                under section 403(1)(A) of the Act of September 30, 
                1950 (Public Law 874, 81st Congress) (as such Act was 
                in effect on the day preceding the date of enactment of 
                the Improving America's Schools Act of 1994).

        ``(6) Free public education.--The term `free public education' 
    means education that is provided--
            ``(A) at public expense, under public supervision and 
        direction, and without tuition charge; and
            ``(B) as elementary or secondary education, as determined 
        under State law, except that, notwithstanding State law, such 
        term--
                ``(i) includes preschool education; and
                ``(ii) does not include any education provided beyond 
            grade 12.
        ``(7) Indian lands.--The term `Indian lands' means any Federal 
    property described in paragraph (5)(A)(ii) or (5)(F).
        ``(8) Local contribution percentage.--
            ``(A) In general.--The term `local contribution percentage' 
        means the percentage of current expenditures in the State 
        derived from local and intermediate sources, as reported to and 
        verified by the National Center for Education Statistics.
            ``(B) Hawaii and district of columbia.--Notwithstanding 
        subparagraph (A), the local contribution percentage for Hawaii 
        and for the District of Columbia shall be the average local 
        contribution percentage for all States.
        ``(9) Local educational agency.--
            ``(A) In general.--Except as provided in subparagraph (B), 
        the term `local educational agency'--
                ``(i) means a board of education or other legally 
            constituted local school authority having administrative 
            control and direction of free public education in a county, 
            township, independent school district, or other school 
            district; and
                ``(ii) includes any State agency that directly operates 
            and maintains facilities for providing free public 
            education.
            ``(B) Exception.--The term `local educational agency' does 
        not include any agency or school authority that the Secretary 
        determines on a case-by-case basis--
                ``(i) was constituted or reconstituted primarily for 
            the purpose of receiving assistance under this title or the 
            Act of September 30, 1950 (Public Law 874, 81st Congress) 
            (as such Act was in effect on the day preceding the date of 
            enactment of the Improving America's Schools Act of 1994) 
            or increasing the amount of such assistance; or
                ``(ii) is not constituted or reconstituted for 
            legitimate educational purposes.
        ``(10) Low-rent housing.--The term `low-rent housing' means 
    housing located on property that is described in paragraph 
    (5)(A)(iii).
        ``(11) Revenue derived from local sources.--The term `revenue 
    derived from local sources' means--
            ``(A) revenue produced within the boundaries of a local 
        educational agency and available to such agency for such 
        agency's use; or
            ``(B) funds collected by another governmental unit, but 
        distributed back to a local educational agency in the same 
        proportion as such funds were collected as a local revenue 
        source.
        ``(12) School facilities.--The term `school facilities' 
    includes--
            ``(A) classrooms and related facilities; and
            ``(B) equipment, machinery, and utilities necessary or 
        appropriate for school purposes.

``SEC. 8014. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Payments for Federal Acquisition of Real Property.--For the 
purpose of making payments under section 8002, there are authorized to 
be appropriated $16,750,000 for fiscal year 1995 and such sums as may 
be necessary for each of the four succeeding fiscal years.
    ``(b) Basic Payments; Payments for Heavily Impacted Local 
Educational Agencies.--For the purpose of making payments under 
subsections (b) and (f) of section 8003, there are authorized to be 
appropriated $775,000,000 for fiscal year 1995 and such sums as may be 
necessary for each of the four succeeding fiscal years, of which 6 
percent shall be available, until expended, for each such fiscal year 
to carry out section 8003(f).
    ``(c) Payments for Children With Disabilities.--For the purpose of 
making payments under section 8003(d), there are authorized to be 
appropriated $45,000,000 for fiscal year 1995 and such sums as may be 
necessary for each of the four succeeding fiscal years.
    ``(d) Payments for Increases in Military Children.--For the purpose 
of making payments under section 8006, there are authorized to be 
appropriated $2,000,000 for fiscal year 1995 and such sums as may be 
necessary for each of the four succeeding fiscal years.
    ``(e) Construction.--For the purpose of carrying out section 8007, 
there are authorized to be appropriated $25,000,000 for fiscal year 
1995 and such sums as may be necessary for each of the four succeeding 
fiscal years.
    ``(f) Facilities Maintenance.--For the purpose of carrying out 
section 8008, there are authorized to be appropriated $2,000,000 for 
fiscal year 1995 and such sums as may be necessary for each of the four 
succeeding fiscal years.

    ``TITLE IX--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

                       ``PART A--INDIAN EDUCATION

``SEC. 9101. FINDINGS.

    ``The Congress finds that--
        ``(1) the Federal Government has a special responsibility to 
    ensure that educational programs for all American Indian and Alaska 
    Native children and adults--
            ``(A) are based on high-quality, internationally 
        competitive content standards and student performance standards 
        and build on Indian culture and the Indian community;
            ``(B) assist local educational agencies, Indian tribes, and 
        other entities and individuals in providing Indian students the 
        opportunity to achieve such standards; and
            ``(C) meet the special educational and culturally related 
        academic needs of American Indian and Alaska Native students;
        ``(2) since the date of enactment of the initial Indian 
    Education Act in 1972, the level of involvement of Indian parents 
    in the planning, development, and implementation of educational 
    programs that affect such parents and their children has increased 
    significantly, and schools should continue to foster such 
    involvement;
        ``(3) although the number of Indian teachers, administrators, 
    and university professors has increased since 1972, teacher 
    training programs are not recruiting, training, or retraining a 
    sufficient number of Indian individuals as educators to meet the 
    needs of a growing Indian student population in elementary, 
    secondary, vocational, adult, and higher education;
        ``(4) the dropout rate for Indian students is unacceptably 
    high, for example, 9 percent of Indian students who were eighth 
    graders in 1988 had already dropped out of school by 1990;
        ``(5) during the period from 1980 to 1990, the percentage of 
    Indian individuals living at or below the poverty level increased 
    from 24 percent to 31 percent, and the readiness of Indian children 
    to learn is hampered by the high incidence of poverty, 
    unemployment, and health problems among Indian children and their 
    families; and
        ``(6) research related specifically to the education of Indian 
    children and adults is very limited, and much of the research is of 
    poor quality or is focused on limited local or regional issues.

``SEC. 9102. PURPOSE.

    ``(a) Purpose.--It is the purpose of this part to support the 
efforts of local educational agencies, Indian tribes and organizations, 
postsecondary institutions, and other entities to meet the special 
educational and culturally related academic needs of American Indians 
and Alaska Natives, so that such students can achieve to the same 
challenging State performance standards expected of all students.
    ``(b) Programs.--This part carries out the purpose described in 
subsection (a) by authorizing programs of direct assistance for--
        ``(1) meeting the special educational and culturally related 
    academic needs of American Indians and Alaska Natives;
        ``(2) the education of Indian children and adults;
        ``(3) the training of Indian persons as educators and 
    counselors, and in other professions serving Indian people; and
        ``(4) research, evaluation, data collection, and technical 
    assistance.

       ``Subpart 1--Formula Grants to Local Educational Agencies

``SEC. 9111. PURPOSE.

    ``It is the purpose of this subpart to support local educational 
agencies in their efforts to reform elementary and secondary school 
programs that serve Indian students in order to ensure that such 
programs--
        ``(1) are based on challenging State content standards and 
    State student performance standards that are used for all students; 
    and
        ``(2) are designed to assist Indian students meet those 
    standards and assist the Nation in reaching the National Education 
    Goals.

``SEC. 9112. GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    ``(a) In General.--
        ``(1) Enrollment requirements.--A local educational agency 
    shall be eligible for a grant under this subpart for any fiscal 
    year if the number of Indian children eligible under section 9116 
    and who were enrolled in the schools of the agency, and to whom the 
    agency provided free public education, during the preceding fiscal 
    year--
            ``(A) was at least 10; and
            ``(B) constituted not less than 25 percent of the total 
        number of individuals enrolled in the schools of such agency.
        ``(2) Exclusion.--The requirement of paragraph (1) shall not 
    apply in Alaska, California, or Oklahoma, or with respect to any 
    local educational agency located on, or in proximity to, a 
    reservation.
    ``(b) Indian Tribes.--
        ``(1) In general.--If a local educational agency that is 
    eligible for a grant under this subpart does not establish a parent 
    committee under section 9114(c)(4) for such grant, an Indian tribe 
    that represents no less than one-half of the eligible Indian 
    children who are served by such local educational agency may apply 
    for such grant.
        ``(2) Special rule.--The Secretary shall treat each Indian 
    tribe applying for a grant pursuant to paragraph (1) as if such 
    Indian tribe were a local educational agency for purposes of this 
    subpart.

``SEC. 9113. AMOUNT OF GRANTS.

    ``(a) Amount of Grant Awards.--
        ``(1) In general.--Except as provided in subsection (b) and 
    paragraph (2), the Secretary shall allocate to each local 
    educational agency which has an approved application under this 
    subpart an amount equal to the product of--
            ``(A) the number of Indian children who are eligible under 
        section 9116 and served by such agency; and
            ``(B) the greater of--
                ``(i) the average per-pupil expenditure of the State in 
            which such agency is located; or
                ``(ii) 80 percent of the average per-pupil expenditure 
            in the United States.
        ``(2) Reduction.--The Secretary shall reduce the amount of each 
    allocation determined under paragraph (1) in accordance with 
    subsection (e).
    ``(b) Minimum Grant.--
        ``(1) In general.--Notwithstanding subsection (e) of this 
    section, a local educational agency or an Indian tribe (as 
    authorized under section 9112(b)) that is eligible for a grant 
    under section 9112, and a school that is operated or supported by 
    the Bureau of Indian Affairs that is eligible for a grant under 
    subsection (d), that submits an application that is approved by the 
    Secretary, shall, subject to appropriations, receive a grant under 
    this subpart in an amount that is not less than $3,000.
        ``(2) Consortia.--Local educational agencies may form a 
    consortium for the purpose of obtaining grants under this Act.
        ``(3) Increase.--The Secretary may increase the minimum grant 
    under paragraph (1) to not more than $4,000 for all grantees if the 
    Secretary determines such increase is necessary to ensure quality 
    programs.
    ``(c) Definition.--For the purpose of this section, the term 
`average per-pupil expenditure of a State' means an amount equal to--
        ``(1) the sum of the aggregate current expenditures of all the 
    local educational agencies in the State, plus any direct current 
    expenditures by the State for the operation of such agencies, 
    without regard to the sources of funds from which such local or 
    State expenditures were made, during the second fiscal year 
    preceding the fiscal year for which the computation is made; 
    divided by
        ``(2) the aggregate number of children who were included in 
    average daily attendance for whom such agencies provided free 
    public education during such preceding fiscal year.
    ``(d) Schools Operated or Supported by the Bureau of Indian 
Affairs.--In addition to the grants awarded under subsection (a), and 
subject to paragraph (2), the Secretary shall allocate to the Secretary 
of the Interior an amount equal to the product of--
        ``(1) the total number of Indian children enrolled in schools 
    that are operated by--
            ``(A) the Bureau of Indian Affairs; or
            ``(B) an Indian tribe, or an organization controlled or 
        sanctioned by an Indian tribal government, for the children of 
        such tribe under a contract with, or grant from, the Department 
        of the Interior under the Indian Self-Determination Act or the 
        Tribally Controlled Schools Act of 1988 (part B of title V of 
        the Augustus F. Hawkins-Robert T. Stafford Elementary and 
        Secondary School Improvement Amendments of 1988); and
        ``(2) the greater of--
            ``(A) the average per-pupil expenditure of the State in 
        which the school is located; or
            ``(B) 80 percent of the average per-pupil expenditure in 
        the United States.
    ``(e) Ratable Reductions.--If the sums appropriated for any fiscal 
year under section 9162(a) are insufficient to pay in full the amounts 
determined for local educational agencies under subsection (a)(1) and 
for the Secretary of the Interior under subsection (d), each of those 
amounts shall be ratably reduced.

``SEC. 9114. APPLICATIONS.

    ``(a) Application Required.--Each local educational agency that 
desires to receive a grant under this subpart shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may reasonably require.
    ``(b) Comprehensive Program Required.--Each application submitted 
under subsection (a) shall include a comprehensive program for meeting 
the needs of Indian children served by the local educational agency, 
including the language and cultural needs of the children, that--
        ``(1) provides programs and activities to meet the culturally 
    related academic needs of American Indian and Alaska Native 
    students;
        ``(2)(A) is consistent with, and promotes the goals in, the 
    State and local improvement plans, either approved or being 
    developed, under title III of the Goals 2000: Educate America Act 
    or, if such plans are not approved or being developed, with the 
    State and local plans under sections 1111 and 1112 of this Act; and
        ``(B) includes academic content and student performance goals 
    for such children, and benchmarks for attaining such goals, that 
    are based on the challenging State standards adopted under title I 
    for all children;
        ``(3) explains how Federal, State, and local programs, 
    especially under title I, will meet the needs of such students;
        ``(4) demonstrates how funds made available under this subpart 
    will be used for activities described in section 9115;
        ``(5) describes the professional development opportunities that 
    will be provided, as needed, to ensure that--
            ``(A) teachers and other school professionals who are new 
        to the Indian community are prepared to work with Indian 
        children; and
            ``(B) all teachers who will be involved in programs 
        assisted under this subpart have been properly trained to carry 
        out such programs; and
        ``(6) describes how the local educational agency--
            ``(A) will periodically assess the progress of all Indian 
        children enrolled in the schools of the local educational 
        agency, including Indian children who do not participate in 
        programs assisted under this subpart, in meeting the goals 
        described in paragraph (2);
            ``(B) will provide the results of each assessment referred 
        to in subparagraph (A) to--
                ``(i) the committee of parents described in subsection 
            (c)(4); and
                ``(ii) the community served by the local educational 
            agency; and
            ``(C) is responding to findings of any previous assessments 
        that are similar to the assessments described in subparagraph 
        (A).
    ``(c) Assurances.--Each application submitted under subsection (a) 
shall include assurances that--
        ``(1) the local educational agency will use funds received 
    under this subpart only to supplement the level of funds that, in 
    the absence of the Federal funds made available under this subpart, 
    such agency would make available for the education of Indian 
    children, and not to supplant such funds;
        ``(2) the local educational agency will submit such reports to 
    the Secretary, in such form and containing such information, as the 
    Secretary may require to--
            ``(A) carry out the functions of the Secretary under this 
        subpart; and
            ``(B) determine the extent to which funds provided to the 
        local educational agency under this subpart are effective in 
        improving the educational achievement of Indian students served 
        by such agency;
        ``(3) the program for which assistance is sought--
            ``(A) is based on a local assessment and prioritization of 
        the special educational and culturally related academic needs 
        of the American Indian and Alaska Native students for whom the 
        local educational agency is providing an education;
            ``(B) will use the best available talents and resources, 
        including individuals from the Indian community; and
            ``(C) was developed by such agency in open consultation 
        with parents of Indian children and teachers, and, if 
        appropriate, Indian students from secondary schools, including 
        public hearings held by such agency to provide the individuals 
        described in this subparagraph a full opportunity to understand 
        the program and to offer recommendations regarding the program; 
        and
        ``(4) the local educational agency developed the program with 
    the participation and written approval of a committee--
            ``(A) that is composed of, and selected by--
                ``(i) parents of Indian children in the local 
            educational agency's schools and teachers; and
                ``(ii) if appropriate, Indian students attending 
            secondary schools;
            ``(B) the membership of which is at least more than one-
        half parents of Indian children;
            ``(C) that sets forth such policies and procedures, 
        including policies and procedures relating to the hiring of 
        personnel, as will ensure that the program for which assistance 
        is sought will be operated and evaluated in consultation with, 
        and with the involvement of, parents of the children, and 
        representatives of the area, to be served;
            ``(D) with respect to an application describing a 
        schoolwide program in accordance with section 9115(c), has--
                ``(i) reviewed in a timely fashion the program; and
                ``(ii) determined that the program will not diminish 
            the availability of culturally related activities for 
            American Indians and Alaskan Native students; and
            ``(E) has adopted reasonable bylaws for the conduct of the 
        activities of the committee and abides by such bylaws.

``SEC. 9115. AUTHORIZED SERVICES AND ACTIVITIES.

    ``(a) General Requirements.--Each local educational agency that 
receives a grant under this subpart shall use the grant funds, in a 
manner consistent with the purpose specified in section 9111, for 
services and activities that--
        ``(1) are designed to carry out the comprehensive plan of the 
    local educational agency for Indian students, and described in the 
    application of the local educational agency submitted to the 
    Secretary under section 9114(b);
        ``(2) are designed with special regard for the language and 
    cultural needs of the Indian students; and
        ``(3) supplement and enrich the regular school program of such 
    agency.
    ``(b) Particular Activities.--The services and activities referred 
to in subsection (a) may include--
        ``(1) culturally related activities that support the program 
    described in the application submitted by the local educational 
    agency;
        ``(2) early childhood and family programs that emphasize school 
    readiness;
        ``(3) enrichment programs that focus on problem-solving and 
    cognitive skills development and directly support the attainment of 
    challenging State content standards and State student performance 
    standards;
        ``(4) integrated educational services in combination with other 
    programs that meet the needs of Indian children and their families;
        ``(5) school-to-work transition activities to enable Indian 
    students to participate in programs such as the programs supported 
    by the School-to-Work Opportunities Act of 1994 and the Carl D. 
    Perkins Vocational and Applied Technology Education Act, including 
    programs for tech-prep, mentoring, and apprenticeship;
        ``(6) activities to educate individuals concerning substance 
    abuse and to prevent substance abuse; and
        ``(7) the acquisition of equipment, but only if the acquisition 
    of the equipment is essential to meet the purpose described in 
    section 9111.
    ``(c) Schoolwide Programs.--Notwithstanding any other provision of 
law, a local educational agency may use funds made available to such 
agency under this subpart to support a schoolwide program under section 
1114 if--
        ``(1) the committee composed of parents established pursuant to 
    section 9114(c)(4) approves the use of the funds for the schoolwide 
    program; and
        ``(2) the schoolwide program is consistent with the purpose 
    described in section 9111.

``SEC. 9116. STUDENT ELIGIBILITY FORMS.

    ``(a) In General.--The Secretary shall require that, as part of an 
application for a grant under this subpart, each applicant shall 
maintain a file, with respect to each Indian child for whom the local 
educational agency provides a free public education, that contains a 
form that sets forth information establishing the status of the child 
as an Indian child eligible for assistance under this subpart and that 
otherwise meets the requirements of subsection (b).
    ``(b) Forms.--
        ``(1) In general.--The form described in subsection (a) shall 
    include--
            ``(A) either--
                ``(i)(I) the name of the tribe or band of Indians (as 
            defined in section 9161(4)) with respect to which the child 
            claims membership;
                ``(II) the enrollment number establishing the 
            membership of the child (if readily available); and
                ``(III) the name and address of the organization that 
            maintains updated and accurate membership data for such 
            tribe or band of Indians; or
                ``(ii) if the child is not a member of a tribe or band 
            of Indians, the name, the enrollment number (if readily 
            available), and the organization (and address thereof) 
            responsible for maintaining updated and accurate membership 
            rolls of any parent or grandparent of the child from whom 
            the child claims eligibility;
            ``(B) a statement of whether the tribe or band of Indians 
        with respect to which the child, parent or grandparent of the 
        child claims membership is federally recognized;
            ``(C) the name and address of the parent or legal guardian 
        of the child;
            ``(D) a signature of the parent or legal guardian of the 
        child that verifies the accuracy of the information supplied; 
        and
            ``(E) any other information that the Secretary considers 
        necessary to provide an accurate program profile.
        ``(2) Minimum information.--In order for a child to be eligible 
    to be counted for the purpose of computing the amount of a grant 
    award made under section 9113, an eligibility form prepared 
    pursuant to this section for a child shall include--
            ``(A) the name of the child;
            ``(B) the name of the tribe or band of Indians (as defined 
        in section 9161(4)) with respect to which the child claims 
        eligibility; and
            ``(C) the dated signature of the parent or guardian of the 
        child.
        ``(3) Failure.--The failure of an applicant to furnish any 
    information described in this subsection other than the information 
    described in paragraph (2) with respect to any child shall have no 
    bearing on the determination of whether the child is an eligible 
    Indian child for the purposes of determining the amount of a grant 
    award made under section 9113.
    ``(c) Statutory Construction.--Nothing in this section shall be 
construed to affect a definition contained in section 9161.
    ``(d) Forms and Standards of Proof.--The forms and the standards of 
proof (including the standard of good faith compliance) that were in 
use during the 1985-1986 academic year to establish the eligibility of 
a child for entitlement under the Indian Elementary and Secondary 
School Assistance Act shall be the forms and standards of proof used--
        ``(1) to establish such eligibility; and
        ``(2) to meet the requirements of subsection (a).
    ``(e) Documentation.--For purposes of determining whether a child 
is eligible to be counted for the purpose of computing the amount of a 
grant under section 9113, the membership of the child, or any parent or 
grandparent of the child, in a tribe or band of Indians may be 
established by proof other than an enrollment number, notwithstanding 
the availability of an enrollment number for a member of such tribe or 
band. Nothing in subsection (b) shall be construed to require the 
furnishing of an enrollment number.
    ``(f) Monitoring and Evaluation Review.--
        ``(1) In general.--(A) For each fiscal year, in order to 
    provide such information as is necessary to carry out the 
    responsibility of the Secretary to provide technical assistance 
    under this subpart, the Secretary shall conduct a monitoring and 
    evaluation review of a sampling of the recipients of grants under 
    this subpart. The sampling conducted under this subparagraph shall 
    take into account size of the local educational agency and the 
    geographic location of such agency.
        ``(B) A local educational agency may not be held liable to the 
    United States or be subject to any penalty, by reason of the 
    findings of an audit that relates to the date of completion, or the 
    date of submission, of any forms used to establish, before April 
    28, 1988, the eligibility of a child for entitlement under the 
    Indian Elementary and Secondary School Assistance Act.
        ``(2) False information.--Any local educational agency that 
    provides false information in an application for a grant under this 
    subpart shall--
            ``(A) be ineligible to apply for any other grant under this 
        subpart; and
            ``(B) be liable to the United States for any funds that 
        have not been expended.
        ``(3) Excluded children.--A student who provides false 
    information for the form required under subsection (d) shall not be 
    counted for the purpose of computing the amount of a grant under 
    section 9113.
    ``(g) Distribution.--For the purposes of the distribution of funds 
under this subpart to schools that receive funding from the Bureau of 
Indian Affairs pursuant to--
        ``(1) section 1130 of the Education Amendments of 1978; and
        ``(2) the Act of April 16, 1934 (48 Stat. 596, chapter 147),
the Secretary shall, in lieu of meeting the requirements of this 
section for counting Indian children, use a count of the number of 
students in such schools certified by the Bureau of Indian Affairs.

``SEC. 9117. PAYMENTS.

    ``(a) In General.--Subject to subsections (b) and (c), the 
Secretary shall pay to each local educational agency that submits an 
application that is approved by the Secretary under this subpart the 
amount determined under section 9113. The Secretary shall notify the 
local educational agency of the amount of the payment not later than 
June 1 of the year for which the Secretary makes the payment.
    ``(b) Payments Taken Into Account by the State.--The Secretary may 
not make a grant under this subpart to a local educational agency for a 
fiscal year if, for such fiscal year, the State in which the local 
educational agency is located takes into consideration payments made 
under this subpart (or under subpart 1 of the Indian Education Act of 
1988) in determining the eligibility of the local educational agency 
for State aid, or the amount of the State aid, with respect to the free 
public education of children during such fiscal year or the preceding 
fiscal year.
    ``(c) Reduction of Payment for Failure To Maintain Fiscal Effort.--
        ``(1) In general.--The Secretary may not pay a local 
    educational agency the full amount of a grant award determined 
    under section 9113 for any fiscal year unless the State educational 
    agency notifies the Secretary, and the Secretary determines, that 
    with respect to the provision of free public education by the local 
    educational agency for the preceding fiscal year, that the combined 
    fiscal effort of the local educational agency and the State, 
    computed on either a per student or aggregate expenditure basis was 
    not less than 90 percent of the amount of the combined fiscal 
    effort, computed on the same basis, for the second preceding fiscal 
    year.
        ``(2) Failure.--If, for any fiscal year, the Secretary 
    determines that a local educational agency failed to maintain the 
    fiscal effort of such agency at the level specified in paragraph 
    (1), the Secretary shall--
            ``(A) reduce the amount of the grant that would otherwise 
        be made to such agency under this subpart in the exact 
        proportion of such agency's failure to maintain its fiscal 
        effort at such level; and
            ``(B) not use the reduced amount of the agency's 
        expenditures for the preceding year to determine compliance 
        with paragraph (1) for any succeeding fiscal year, but shall 
        use the amount of expenditures that would have been required to 
        comply with paragraph (1).
        ``(3) Waiver.--(A) The Secretary may waive the requirement of 
    paragraph (1), for not more than one year at a time, if the 
    Secretary determines that the failure to comply with such 
    requirement is due to exceptional or uncontrollable circumstances, 
    such as a natural disaster or a precipitous and unforeseen decline 
    in the agency's financial resources.
        ``(B) The Secretary shall not use the reduced amount of such 
    agency's expenditures for the fiscal year preceding the fiscal year 
    for which a waiver is granted to determine compliance with 
    paragraph (1) for any succeeding fiscal year, but shall use the 
    amount of expenditures that would have been required to comply with 
    paragraph (1) in the absence of the waiver.
    ``(d) Reallocations.--The Secretary may reallocate, in a manner 
that the Secretary determines will best carry out the purpose of this 
subpart, any amounts that--
        ``(1) based on estimates made by local educational agencies or 
    other information, the Secretary determines will not be needed by 
    such agencies to carry out approved programs under this subpart; or
        ``(2) otherwise become available for reallocation under this 
    subpart.

``SEC. 9118. STATE EDUCATIONAL AGENCY REVIEW.

    ``(a) Application.--Each entity desiring assistance under this 
subpart shall submit an application to the Secretary at such time, in 
such manner and accompanied by such information as the Secretary may 
reasonably require except that this subsection shall not apply to 
Bureau-funded schools.
    ``(b) Special Rule.--Before submitting an application under 
subsection (a) to the Secretary, the entity shall submit its 
application to the State educational agency. The State educational 
agency may comment on such application, however if such agency comments 
on such application such agency shall comment on all applications 
submitted by entities within the State and shall provide such comments 
to the appropriate local educational agency, which local educational 
agency shall be given an opportunity to respond to such comments.

   ``Subpart 2--Special Programs and Projects To Improve Educational 
                   Opportunities for Indian Children

``SEC. 9121. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR INDIAN 
              CHILDREN.

    ``(a) Purpose.--
        ``(1) In general.--It is the purpose of this section to support 
    projects to develop, test, and demonstrate the effectiveness of 
    services and programs to improve educational opportunities and 
    achievement of Indian children.
        ``(2) Coordination.--The Secretary shall take such actions as 
    are necessary to achieve the coordination of activities assisted 
    under this subpart with--
            ``(A) other programs funded under this Act; and
            ``(B) other Federal programs operated for the benefit of 
        American Indian and Alaska Native children.
    ``(b) Eligible Entities.--For the purpose of this section, the term 
`eligible entity' means a State educational agency, local educational 
agency, Indian tribe, Indian organization, federally supported 
elementary and secondary school for Indian students, Indian 
institution, including an Indian institution of higher education, or a 
consortium of such institutions.
    ``(c) Grants Authorized.--
        ``(1) In general.--The Secretary shall award grants to eligible 
    entities to enable such entities to carry out activities that meet 
    the purpose specified in subsection (a)(1), including--
            ``(A) innovative programs related to the educational needs 
        of educationally deprived children;
            ``(B) educational services that are not available to such 
        children in sufficient quantity or quality, including remedial 
        instruction, to raise the achievement of Indian children in one 
        or more of the core academic subjects of English, mathematics, 
        science, foreign languages, art, history, and geography;
            ``(C) bilingual and bicultural programs and projects;
            ``(D) special health and nutrition services, and other 
        related activities, that address the special health, social, 
        and psychological problems of Indian children;
            ``(E) special compensatory and other programs and projects 
        designed to assist and encourage Indian children to enter, 
        remain in, or reenter school, and to increase the rate of 
        secondary school graduation;
            ``(F) comprehensive guidance, counseling, and testing 
        services;
            ``(G) early childhood and kindergarten programs, including 
        family-based preschool programs that emphasize school readiness 
        and parental skills, and the provision of services to Indian 
        children with disabilities;
            ``(H) partnership projects between local educational 
        agencies and institutions of higher education that allow 
        secondary school students to enroll in courses at the 
        postsecondary level to aid such students in the transition from 
        secondary school to postsecondary education;
            ``(I) partnership projects between schools and local 
        businesses for school-to-work transition programs designed to 
        provide Indian youth with the knowledge and skills the youth 
        need to make an effective transition from school to a first job 
        in a high-skill, high-wage career;
            ``(J) programs designed to encourage and assist Indian 
        students to work toward, and gain entrance into, an institution 
        of higher education; or
            ``(K) other services that meet the purpose described in 
        subsection (a)(1).
        ``(2) Preservice or inservice training.--Preservice or 
    inservice training of professional and paraprofessional personnel 
    may be a part of any program assisted under this section.
    ``(d) Grant Requirements and Applications.--
        ``(1) Grant requirements.--(A) The Secretary may make multiyear 
    grants under this section for the planning, development, pilot 
    operation, or demonstration of any activity described in subsection 
    (c) for a period not to exceed 5 years.
        ``(B) In making multiyear grants under this section, the 
    Secretary shall give priority to applications that present a plan 
    for combining two or more of the activities described in subsection 
    (c) over a period of more than 1 year.
        ``(C) The Secretary shall make a grant payment to an eligible 
    entity after the initial year of the multiyear grant only if the 
    Secretary determines that the eligible entity has made substantial 
    progress in carrying out the activities assisted under the grant in 
    accordance with the application submitted under paragraph (2) and 
    any subsequent modifications to such application.
        ``(D)(i) In addition to awarding the multiyear grants described 
    in subparagraph (A), the Secretary may award grants to eligible 
    entities for the dissemination of exemplary materials or programs 
    assisted under this section.
        ``(ii) The Secretary may award a dissemination grant under this 
    subparagraph if, prior to awarding the grant, the Secretary 
    determines that the material or program to be disseminated has been 
    adequately reviewed and has a demonstrated--
            ``(I) educational merit; and
            ``(II) the ability to be replicated.
        ``(2) Application.--(A) Any eligible entity that desires to 
    receive a grant under this subsection shall submit an application 
    to the Secretary at such time and in such manner as the Secretary 
    may require.
        ``(B) Each application submitted to the Secretary under 
    subparagraph (A) shall contain--
            ``(i) a description of how parents of Indian children and 
        representatives of Indian tribes have been, and will be, 
        involved in developing and implementing the activities for 
        which assistance is sought;
            ``(ii) assurances that the applicant will participate, at 
        the request of the Secretary, in any national evaluation of 
        activities assisted under this section; and
            ``(iii) such other assurances and information as the 
        Secretary may reasonably require.

``SEC. 9122. PROFESSIONAL DEVELOPMENT.

    ``(a) Purposes.--The purposes of this section are--
        ``(1) to increase the number of qualified Indian individuals in 
    professions that serve Indian people;
        ``(2) to provide training to qualified Indian individuals to 
    enable such individuals to become teachers, administrators, teacher 
    aides, social workers, and ancillary educational personnel; and
        ``(3) to improve the skills of qualified Indian individuals who 
    serve in the capacities described in paragraph (2).
    ``(b) Eligible Entities.--For the purpose of this section, the term 
`eligible entity' means--
        ``(1) an institution of higher education, including an Indian 
    institution of higher education;
        ``(2) a State or local educational agency, in consortium with 
    an institution of higher education; and
        ``(3) an Indian tribe or organization, in consortium with an 
    institution of higher education.
    ``(c) Program Authorized.--The Secretary is authorized to award 
grants to eligible entities having applications approved under this 
section to enable such entities to carry out the activities described 
in subsection (d).
    ``(d) Authorized Activities.--
        ``(1) In general.--Grant funds under this section shall be used 
    to provide support and training for Indian individuals in a manner 
    consistent with the purposes of this section. Such activities may 
    include but are not limited to, continuing programs, symposia, 
    workshops, conferences, and direct financial support.
        ``(2) Special rules.--(A) For education personnel, the training 
    received pursuant to a grant under this section may be inservice or 
    preservice training.
        ``(B) For individuals who are being trained to enter any field 
    other than education, the training received pursuant to a grant 
    under this section shall be in a program that results in a graduate 
    degree.
    ``(e) Application.--
        ``(1) In general.--Each eligible entity desiring a grant under 
    this section shall submit an application to the Secretary at such 
    time, in such manner and accompanied by such information, as the 
    Secretary may reasonably require.
        ``(2) Preference.--In awarding grants under this section, the 
    Secretary shall give preference to applications describing programs 
    that train Indian individuals.
    ``(f) Special Rule.--In making grants under this section, the 
Secretary--
        ``(1) shall consider the prior performance of the eligible 
    entity; and
        ``(2) may not limit eligibility to receive a grant under this 
    section on the basis of--
            ``(A) the number of previous grants the Secretary has 
        awarded such entity; or
            ``(B) the length of any period during which such entity 
        received such grants.
    ``(g) Grant Period.--Each grant under this section shall be awarded 
for a program of not more than 5 years.
    ``(h) Service Obligation.--
        ``(1) In general.--The Secretary shall require, by regulation, 
    that an individual who receives training pursuant to a grant made 
    under this section--
            ``(A) perform work--
                ``(i) related to the training received under this 
            section; and
                ``(ii) that benefits Indian people; or
            ``(B) repay all or a prorated part of the assistance 
        received.
        ``(2) Reporting.--The Secretary shall establish, by regulation, 
    a reporting procedure under which a grant recipient under this 
    section shall, not later than 12 months after the date of 
    completion of the training, and periodically thereafter, provide 
    information concerning the compliance of such recipient with the 
    work requirement under paragraph (1).

``SEC. 9123. FELLOWSHIPS FOR INDIAN STUDENTS.

    ``(a) Fellowships.--
        ``(1) Authority.--The Secretary is authorized to award 
    fellowships to Indian students to enable such students to study in 
    graduate and professional programs at institutions of higher 
    education.
        ``(2) Requirements.--The fellowships described in paragraph (1) 
    shall be awarded to Indian students to enable such students to 
    pursue a course of study--
            ``(A) of not more than 4 academic years; and
            ``(B) that leads--
                ``(i) toward a postbaccalaureate degree in medicine, 
            clinical psychology, psychology, law, education, and 
            related fields; or
                ``(ii) to an undergraduate or graduate degree in 
            engineering, business administration, natural resources, 
            and related fields.
    ``(b) Stipends.--The Secretary shall pay to Indian students awarded 
fellowships under subsection (a) such stipends (including allowances 
for subsistence of such students and dependents of such students) as 
the Secretary determines to be consistent with prevailing practices 
under comparable federally supported programs.
    ``(c) Payments to Institutions in Lieu of Tuition.--The Secretary 
shall pay to the institution of higher education at which a fellowship 
recipient is pursuing a course of study, in lieu of tuition charged 
such recipient, such amounts as the Secretary may determine to be 
necessary to cover the cost of education provided such recipient.
    ``(d) Special Rules.--
        ``(1) In general.--If a fellowship awarded under subsection (a) 
    is vacated prior to the end of the period for which the fellowship 
    is awarded, the Secretary may award an additional fellowship for 
    the unexpired portion of the period of the fellowship.
        ``(2) Written notice.--Not later than 45 days before the 
    commencement of an academic term, the Secretary shall provide to 
    each individual who is awarded a fellowship under subsection (a) 
    for such academic term written notice of--
            ``(A) the amount of the fellowship; and
            ``(B) any stipends or other payments that will be made 
        under this section to, or for the benefit of, the individual 
        for the academic term.
        ``(3) Priority.--Not more than 10 percent of the fellowships 
    awarded under subsection (a) shall be awarded, on a priority basis, 
    to persons receiving training in guidance counseling with a 
    speciality in the area of alcohol and substance abuse counseling 
    and education.
    ``(e) Service Obligation.--
        ``(1) In general.--The Secretary shall require, by regulation, 
    that an individual who receives financial assistance under this 
    section--
            ``(A) perform work--
                ``(i) related to the training for which the individual 
            receives assistance under this section; and
                ``(ii) that benefits Indian people; or
            ``(B) repay all or a prorated portion of such assistance.
        ``(2) Reporting procedure.--The Secretary shall establish, by 
    regulation, a reporting procedure under which the recipient of 
    training assistance under this section, not later than 12 months 
    after the date of completion of the training and periodically 
    thereafter, shall provide information concerning the compliance of 
    such recipient with the work requirement under paragraph (1).
    ``(f) Administration of Fellowships.--The Secretary may administer 
the fellowships authorized under this section through a grant to, or 
contract or cooperative agreement with, an Indian organization with 
demonstrated qualifications to administer all facets of the program 
assisted under this section.

``SEC. 9124. GIFTED AND TALENTED.

    ``(a) Program Authorized.--The Secretary is authorized to--
        ``(1) establish two centers for gifted and talented Indian 
    students at tribally controlled community colleges in accordance 
    with this section; and
        ``(2) support demonstration projects described in subsection 
    (c).
    ``(b) Eligible Entities.--The Secretary shall make grants to, or 
enter into contracts, for the activities described in subsection (a), 
with--
        ``(1) two tribally controlled community colleges that--
            ``(A) are eligible for funding under the Tribally 
        Controlled Community College Assistance Act of 1978; and
            ``(B) are fully accredited; or
        ``(2) if the Secretary does not receive applications that the 
    Secretary determines to be approvable from two colleges that meet 
    the requirements of paragraph (1), the American Indian Higher 
    Education Consortium.
    ``(c) Use of Funds.--
        ``(1) In general.--The grants made, or contracts entered into, 
    by the Secretary under subsection (a) shall be used for--
            ``(A) the establishment of centers described in subsection 
        (a); and
            ``(B) carrying out demonstration projects designed to--
                ``(i) address the special needs of Indian students in 
            elementary and secondary schools who are gifted and 
            talented; and
                ``(ii) provide such support services to the families of 
            the students described in clause (i) as are needed to 
            enable such students to benefit from the projects.
        ``(2) Subcontracts.--Each recipient of a grant or contract 
    under subsection (a) may enter into a contract with any other 
    entity, including the Children's Television Workshop, to carry out 
    the demonstration project under this subsection.
        ``(3) Demonstration projects.--Demonstration projects assisted 
    under subsection (a) may include--
            ``(A) the identification of the special needs of gifted and 
        talented Indian students, particularly at the elementary school 
        level, giving attention to--
                ``(i) the emotional and psychosocial needs of such 
            students; and
                ``(ii) providing such support services to the families 
            of such students as are needed to enable such students to 
            benefit from the project;
            ``(B) the conduct of educational, psychosocial, and 
        developmental activities that the Secretary determines holds a 
        reasonable promise of resulting in substantial progress toward 
        meeting the educational needs of such gifted and talented 
        children, including but not limited to--
                ``(i) demonstrating and exploring the use of Indian 
            languages and exposure to Indian cultural traditions; and
                ``(ii) mentoring and apprenticeship programs;
            ``(C) the provision of technical assistance and the 
        coordination of activities at schools that receive grants under 
        subsection (d) with respect to the activities assisted under 
        such grants, the evaluation of programs assisted under such 
        grants, or the dissemination of such evaluations;
            ``(D) the use of public television in meeting the special 
        educational needs of such gifted and talented children;
            ``(E) leadership programs designed to replicate programs 
        for such children throughout the United States, including 
        disseminating information derived from the demonstration 
        projects conducted under subsection (a); and
            ``(F) appropriate research, evaluation, and related 
        activities pertaining to the needs of such children and to the 
        provision of such support services to the families of such 
        children that are needed to enable such children to benefit 
        from the project.
        ``(4) Application.--Each entity desiring a grant under 
    subsection (a) shall submit an application to the Secretary at such 
    time and in such manner as the Secretary may prescribe.
    ``(d) Additional Grants.--
        ``(1) In general.--The Secretary, in consultation with the 
    Secretary of the Interior, shall award 5 grants to schools funded 
    by the Bureau of Indian Affairs (hereafter in this section referred 
    to as `Bureau schools') for program research and development and 
    the development and dissemination of curriculum and teacher 
    training material, regarding--
            ``(A) gifted and talented students;
            ``(B) college preparatory studies (including programs for 
        Indian students with an interest in pursuing teaching careers);
            ``(C) students with special culturally related academic 
        needs, including students with social, lingual, and cultural 
        needs; or
            ``(D) mathematics and science education.
        ``(2) Applications.--Each Bureau school desiring a grant to 
    conduct one or more of the activities described in paragraph (1) 
    shall submit an application to the Secretary in such form and at 
    such time as the Secretary may prescribe.
        ``(3) Special rule.--Each application described in paragraph 
    (2) shall be developed, and each grant under this subsection shall 
    be administered, jointly by the supervisor of the Bureau school and 
    the local educational agency serving such school.
        ``(4) Requirements.--In awarding grants under paragraph (1), 
    the Secretary shall achieve a mixture of the programs described in 
    paragraph (1) that ensures that Indian students at all grade levels 
    and in all geographic areas of the United States are able to 
    participate in a program assisted under this subsection.
        ``(5) Grant period.--Subject to the availability of 
    appropriations, grants under paragraph (1) shall be awarded for a 
    3-year period and may be renewed by the Secretary for additional 3-
    year periods if the Secretary determines that the performance of 
    the grant recipient has been satisfactory.
        ``(6) Dissemination.--(A) The dissemination of any materials 
    developed from activities assisted under paragraph (1) shall be 
    carried out in cooperation with entities that receive funds 
    pursuant to subsection (b).
        ``(B) The Secretary shall report to the Secretary of the 
    Interior and to the Congress any results from activities described 
    in paragraph (3)(B).
        ``(7) Evaluation costs.--(A) The costs of evaluating any 
    activities assisted under paragraph (1) shall be divided between 
    the Bureau schools conducting such activities and the recipients of 
    grants or contracts under subsection (b) who conduct demonstration 
    projects under such subsection.
        ``(B) If no funds are provided under subsection (b) for--
            ``(i) the evaluation of activities assisted under paragraph 
        (1);
            ``(ii) technical assistance and coordination with respect 
        to such activities; or
            ``(iii) the dissemination of the evaluations referred to in 
        clause (i),
    then the Secretary shall make such grants, or enter into such 
    contracts, as are necessary to provide for the evaluations, 
    technical assistance, and coordination of such activities, and the 
    dissemination of the evaluations.
    ``(e) Information Network.--The Secretary shall encourage each 
recipient of a grant or contract under this section to work 
cooperatively as part of a national network to ensure that the 
information developed by the grant or contract recipient is readily 
available to the entire educational community.
``SEC. 9125. GRANTS TO TRIBES FOR EDUCATION ADMINISTRATIVE PLANNING AND 
DEVELOPMENT.
    ``(a) In General.--The Secretary may make grants to Indian tribes, 
and tribal organizations approved by Indian tribes, to plan and develop 
a centralized tribal administrative entity to--
        ``(1) coordinate all education programs operated by the tribe 
    or within the territorial jurisdiction of the tribe;
        ``(2) develop education codes for schools within the 
    territorial jurisdiction of the tribe;
        ``(3) provide support services and technical assistance to 
    schools serving children of the tribe; and
        ``(4) perform child-find screening services for the preschool-
    aged children of the tribe to--
            ``(A) ensure placement in appropriate educational 
        facilities; and
            ``(B) coordinate the provision of any needed special 
        services for conditions such as disabilities and English 
        language skill deficiencies.
    ``(b) Period of Grant.--Each grant under this section may be 
awarded for a period of not more than 3 years, except that such grant 
may be renewed upon the termination of the initial period of the grant 
if the grant recipient demonstrates to the satisfaction of the 
Secretary that renewing the grant for an additional 3-year period is 
necessary to carry out the objectives of the grant described in 
subsection (c)(2)(A).
    ``(c) Application for Grant.--
        ``(1) In general.--Each Indian tribe and tribal organization 
    desiring a grant under this section shall submit an application to 
    the Secretary at such time, in such manner, containing such 
    information, and consistent with such criteria, as the Secretary 
    may prescribe in regulations.
        ``(2) Contents.--Each application described in paragraph (1) 
    shall contain--
            ``(A) a statement describing the activities to be 
        conducted, and the objectives to be achieved, under the grant; 
        and
            ``(B) a description of the method to be used for evaluating 
        the effectiveness of the activities for which assistance is 
        sought and determining whether such objectives are achieved.
        ``(3) Approval.--The Secretary may approve an application 
    submitted by a tribe or tribal organization pursuant to this 
    section only if the Secretary is satisfied that such application, 
    including any documentation submitted with the application--
            ``(A) demonstrates that the applicant has consulted with 
        other education entities, if any, within the territorial 
        jurisdiction of the applicant who will be affected by the 
        activities to be conducted under the grant;
            ``(B) provides for consultation with such other education 
        entities in the operation and evaluation of the activities 
        conducted under the grant; and
            ``(C) demonstrates that there will be adequate resources 
        provided under this section or from other sources to complete 
        the activities for which assistance is sought, except that the 
        availability of such other resources shall not be a basis for 
        disapproval of such application.
    ``(d) Restriction.--A tribe may not receive funds under this 
section if such tribe receives funds under section 1144 of the Indian 
Education Amendments of 1978.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Department of Education $3,000,000 for each of the 
fiscal years 1995 through 1999 to carry out this section.

 ``Subpart 3--Special Programs Relating to Adult Education for Indians

``SEC. 9131. IMPROVEMENT OF EDUCATIONAL OPPORTUNITIES FOR ADULT 
INDIANS.
    ``(a) In General.--The Secretary shall award grants to State and 
local educational agencies, and to Indian tribes, institutions, and 
organizations--
        ``(1) to support planning, pilot, and demonstration projects 
    that are designed to test and demonstrate the effectiveness of 
    programs for improving employment and educational opportunities for 
    adult Indians;
        ``(2) to assist in the establishment and operation of programs 
    that are designed to stimulate--
            ``(A) basic literacy opportunities for all nonliterate 
        Indian adults; and
            ``(B) the provision of opportunities to all Indian adults 
        to qualify for a secondary school diploma, or its recognized 
        equivalent, in the shortest period of time feasible;
        ``(3) to support a major research and development program to 
    develop more innovative and effective techniques for achieving 
    literacy and secondary school equivalency for Indians;
        ``(4) to provide for basic surveys and evaluations to define 
    accurately the extent of the problems of illiteracy and lack of 
    secondary school completion among Indians; and
        ``(5) to encourage the dissemination of information and 
    materials relating to, and the evaluation of, the effectiveness of 
    education programs that may offer educational opportunities to 
    Indian adults.
    ``(b) Educational Services.--The Secretary may make grants to 
Indian tribes, institutions, and organizations to develop and establish 
educational services and programs specifically designed to improve 
educational opportunities for Indian adults.
    ``(c) Information and Evaluation.--The Secretary may make grants 
to, and enter into contracts with, public agencies and institutions and 
Indian tribes, institutions, and organizations, for--
        ``(1) the dissemination of information concerning educational 
    programs, services, and resources available to Indian adults, 
    including evaluations of the programs, services, and resources; and
        ``(2) the evaluation of federally assisted programs in which 
    Indian adults may participate to determine the effectiveness of the 
    programs in achieving the purposes of the programs with respect to 
    Indian adults.
    ``(d) Applications.--
        ``(1) In general.--Each entity desiring a grant under this 
    section shall submit to the Secretary an application at such time, 
    in such manner, containing such information, and consistent with 
    such criteria, as the Secretary may prescribe in regulations.
        ``(2) Contents.--Each application described in paragraph (1) 
    shall contain--
            ``(A) a statement describing the activities to be 
        conducted, and the objectives to be achieved, under the grant; 
        and
            ``(B) a description of the method to be used for evaluating 
        the effectiveness of the activities for which assistance is 
        sought and determining whether the objectives of the grant are 
        achieved.
        ``(3) Approval.--The Secretary shall not approve an application 
    described in paragraph (1) unless the Secretary determines that 
    such application, including any documentation submitted with the 
    application, indicates--
            ``(A) there has been adequate participation, by the 
        individuals to be served and appropriate tribal communities, in 
        the planning and development of the activities to be assisted; 
        and
            ``(B) the individuals and tribal communities referred to in 
        subparagraph (A) will participate in the operation and 
        evaluation of the activities to be assisted.
        ``(4) Priority.--In approving applications under paragraph (1), 
    the Secretary shall give priority to applications from Indian 
    educational agencies, organizations, and institutions.

               ``Subpart 4--National Research Activities

``SEC. 9141. NATIONAL ACTIVITIES.

    ``(a) Authorized Activities.--The Secretary may use funds made 
available under section 9162(b) for each fiscal year to--
        ``(1) conduct research related to effective approaches for the 
    education of Indian children and adults;
        ``(2) evaluate federally assisted education programs from which 
    Indian children and adults may benefit;
        ``(3) collect and analyze data on the educational status and 
    needs of Indians; and
        ``(4) carry out other activities that are consistent with the 
    purpose of this part.
    ``(b) Eligibility.--The Secretary may carry out any of the 
activities described in subsection (a) directly or through grants to, 
or contracts or cooperative agreements with Indian tribes, Indian 
organizations, State educational agencies, local educational agencies, 
institutions of higher education, including Indian institutions of 
higher education, and other public and private agencies and 
institutions.
    ``(c) Coordination.--Research activities supported under this 
section--
        ``(1) shall be carried out in consultation with the Office of 
    Educational Research and Improvement to assure that such activities 
    are coordinated with and enhance the research and development 
    activities supported by the Office; and
        ``(2) may include collaborative research activities which are 
    jointly funded and carried out by the Office of Indian Education 
    and the Office of Educational Research and Improvement.

                  ``Subpart 5--Federal Administration

``SEC. 9151. NATIONAL ADVISORY COUNCIL ON INDIAN EDUCATION.

    ``(a) Membership.--There is established a National Advisory Council 
on Indian Education (hereafter in this section referred to as the 
`Council'), which shall--
        ``(1) consist of 15 Indian members, who shall be appointed by 
    the President from lists of nominees furnished, from time to time, 
    by Indian tribes and organizations; and
        ``(2) represent different geographic areas of the United 
    States.
    ``(b) Duties.--The Council shall--
        ``(1) advise the Secretary concerning the funding and 
    administration (including the development of regulations and 
    administrative policies and practices) of any program, including 
    any program established under this part--
            ``(A) with respect to which the Secretary has jurisdiction; 
        and
            ``(B)(i) that includes Indian children or adults as 
        participants; or
            ``(ii) that may benefit Indian children or adults;
        ``(2) make recommendations to the Secretary for filling the 
    position of Director of Indian Education whenever a vacancy occurs; 
    and
        ``(3) submit to the Congress, not later than June 30 of each 
    year, a report on the activities of the Council, including--
            ``(A) any recommendations that the Council considers 
        appropriate for the improvement of Federal education programs 
        that include Indian children or adults as participants, or that 
        may benefit Indian children or adults; and
            ``(B) recommendations concerning the funding of any program 
        described in subparagraph (A).

``SEC. 9152. PEER REVIEW.

    ``The Secretary may use a peer review process to review 
applications submitted to the Secretary under subpart 2, 3, or 4.

``SEC. 9153. PREFERENCE FOR INDIAN APPLICANTS.

    ``In making grants under subpart 2, 3, or 4, the Secretary shall 
give a preference to Indian tribes, organizations, and institutions of 
higher education under any program with respect to which Indian tribes, 
organizations, and institutions are eligible to apply for grants.

``SEC. 9154. MINIMUM GRANT CRITERIA.

    ``The Secretary may not approve an application for a grant under 
subpart 2 or 3 unless the application is for a grant that is--
        ``(1) of sufficient size, scope, and quality to achieve the 
    purpose or objectives of such grant; and
        ``(2) based on relevant research findings.

       ``Subpart 6--Definitions; Authorizations of Appropriations

``SEC. 9161. DEFINITIONS.

    ``As used in this part:
        ``(1) Adult.--The term `adult' means an individual who--
            ``(A) has attained the age of 16 years; or
            ``(B) has attained an age that is greater than the age of 
        compulsory school attendance under an applicable State law.
        ``(2) Adult education.--The term `adult education' has the 
    meaning given such term in section 312(2) of the Adult Education 
    Act.
        ``(3) Free public education.--The term `free public education' 
    means education that is--
            ``(A) provided at public expense, under public supervision 
        and direction, and without tuition charge; and
            ``(B) provided as elementary or secondary education in the 
        applicable State or to preschool children.
        ``(4) Indian.--The term `Indian' means an individual who is--
            ``(A) a member of an Indian tribe or band, as membership is 
        defined by the tribe or band, including--
                ``(i) any tribe or band terminated since 1940; and
                ``(ii) any tribe or band recognized by the State in 
            which the tribe or band resides;
            ``(B) a descendant, in the first or second degree, of an 
        individual described in subparagraph (A);
            ``(C) considered by the Secretary of the Interior to be an 
        Indian for any purpose; 
            ``(D) an Eskimo, Aleut, or other Alaska Native; or
            ``(E) a member of an organized Indian group that received a 
        grant under the Indian Education Act of 1988 as it was in 
        effect the day preceding the date of enactment of the Act 
        entitled the `Improving America's Schools Act of 1994'.

``SEC. 9162. AUTHORIZATIONS OF APPROPRIATIONS.

    ``(a) Subpart 1.--For the purpose of carrying out subpart 1 of this 
part, there are authorized to be appropriated to the Department of 
Education $61,300,000 for fiscal year 1995 and such sums as may be 
necessary for each of the four succeeding fiscal years.
    ``(b) Subparts 2 Through 4.--For the purpose of carrying out 
subparts 2, 3, and 4 of this part, there are authorized to be 
appropriated to the Department of Education $26,000,000 for fiscal year 
1995 and such sums as may be necessary for each of the four succeeding 
fiscal years.
    ``(c) Subpart 5.--For the purpose of carrying out subpart 5 of this 
part, there are authorized to be appropriated to the Department of 
Education $3,775,000 for fiscal year 1995 and such sums as may be 
necessary for each of the four succeeding fiscal years.

                       ``PART B--NATIVE HAWAIIANS

``SEC. 9201. SHORT TITLE.

    ``This part may be cited as the `Native Hawaiian Education Act'.

``SEC. 9202. FINDINGS.

    ``The Congress finds and declares as follows:
        ``(1) Native Hawaiians are a distinct and unique indigenous 
    people with a historical continuity to the original inhabitants of 
    the Hawaiian archipelago, whose society was organized as a nation 
    and internationally recognized as such by the United States, 
    Britain, France, and Japan, as evidenced by treaties governing 
    friendship, commerce, and navigation.
        ``(2) At the time of the arrival of the first non-indigenous 
    people in Hawai`i in 1778, the Native Hawaiian people lived in a 
    highly organized, self-sufficient subsistence social system based 
    on a communal land tenure system with a sophisticated language, 
    culture, and religion.
        ``(3) A unified monarchial government of the Hawaiian Islands 
    was established in 1810 under Kamehameha I, the first King of 
    Hawai`i.
        ``(4) From 1826 until 1893, the United States recognized the 
    sovereignty and independence of the Kingdom of Hawai`i, which was 
    established in 1810 under Kamehameha I, extended full and complete 
    diplomatic recognition to the Kingdom of Hawai`i, and entered into 
    treaties and conventions with the Kingdom of Hawai`i to govern 
    friendship, commerce and navigation in 1826, 1842, 1849, 1875, and 
    1887.
        ``(5) In 1893, the sovereign, independent, internationally 
    recognized, and indigenous government of Hawai`i, the Kingdom of 
    Hawai`i, was overthrown by a small group of non-Hawaiians, 
    including United States citizens, who were assisted in their 
    efforts by the United States Minister, a United States naval 
    representative, and armed naval forces of the United States. 
    Because of the participation of United States agents and citizens 
    in the overthrow of the Kingdom of Hawai`i, the Congress, on behalf 
    of the people of the United States, apologized to Native Hawaiians 
    for the overthrow and the deprivation of the rights of Native 
    Hawaiians to self-determination through Public Law 103-150 (107 
    Stat. 1510).
        ``(6) In 1898, the joint resolution entitled `A Joint 
    Resolution to provide for annexing the Hawaiian Islands to the 
    United States', approved July 7, 1898 (30 Stat. 750), ceded 
    absolute title of all lands held by the Republic of Hawai`i, 
    including the government and crown lands of the former Kingdom of 
    Hawai`i, to the United States, but mandated that revenue generated 
    from these lands be used `solely for the benefit of the inhabitants 
    of the Hawaiian Islands for educational and other public purposes'.
        ``(7) By 1919, the Native Hawaiian population had declined from 
    an estimated 1,000,000 in 1778 to an alarming 22,600, and in 
    recognition of this severe decline, the Congress in 1921 enacted 
    the Hawaiian Homes Commission Act, 1920, which designated 
    approximately 200,000 acres of ceded public lands for homesteading 
    by Native Hawaiians.
        ``(8) Through the enactment of the Hawaiian Homes Commission 
    Act, 1920, the Congress affirmed the special relationship between 
    the United States and the Native Hawaiians, as expressed by then 
    Secretary of the Interior Franklin K. Lane, who was quoted in the 
    committee report for the Hawaiian Homes Commission Act, 1920, as 
    saying: `One thing that impressed me . . . was the fact that the 
    natives of the island who are our wards, I should say, and for whom 
    in a sense we are trustees, are falling off rapidly in numbers and 
    many of them are in poverty.'.
        ``(9) In 1938, the United States Congress again acknowledged 
    the unique status of the Hawaiian people by including in the Act of 
    June 20, 1938 (52 Stat. 781 et seq.), a provision to lease lands 
    within the National Parks extension to Native Hawaiians and to 
    permit fishing in the area `only by native Hawaiian residents of 
    said area or of adjacent villages and by visitors under their 
    guidance.'.
        ``(10) Under the Act entitled `An Act to provide for the 
    admission of the State of Hawai`i into the Union' approved March 
    18, 1959 (73 Stat. 4), the United States transferred responsibility 
    for the administration of the Hawaiian Home Lands to the State of 
    Hawai`i but reaffirmed the trust relationship which existed between 
    the United States and the Hawaiian people by retaining the 
    exclusive power to enforce the trust, including the power to 
    approve land exchanges and legislative amendments affecting the 
    rights of beneficiaries under such Act.
        ``(11) In 1959, under the Act entitled `An Act to provide for 
    the admission of the State of Hawai`i into the Union', approved 
    March 18, 1959 (73 Stat. 4), the United States ceded to the State 
    of Hawai`i title to the public lands formerly held by the United 
    States, but mandated that such lands be held by the State `in 
    public trust' and reaffirmed the special relationship which existed 
    between the United States and the Hawaiian people by retaining the 
    legal responsibility to enforce the public trust responsibility of 
    the State of Hawai`i for the betterment of the conditions of Native 
    Hawaiians, as defined in section 201(a) of the Hawaiian Homes 
    Commission Act, 1920.
        ``(12) The United States assumed special responsibilities for 
    Native Hawaiian lands and resources at the time of the annexation 
    of the Territory in 1898, upon adoption of the Hawaiian Homes 
    Commission Act, 1920, and upon admission of the State of Hawai`i 
    into the Union in 1959, and has retained certain of those 
    responsibilities.
        ``(13) In recognition of the special relationship which exists 
    between the United States and the Native Hawaiian people, the 
    Congress has extended to Native Hawaiians the same rights and 
    privileges accorded to American Indian, Alaska Native, Eskimo, and 
    Aleut communities under the Native American Programs Act of 1974, 
    the American Indian Religious Freedom Act, the National Museum of 
    the American Indian Act, the Native American Graves Protection and 
    Repatriation Act, the National Historic Preservation Act, and the 
    Native American Languages Act.
        ``(14) In recognition of the special relationship which exists 
    between the United States and the Native Hawaiian people, the 
    Congress has enacted numerous special provisions of law for the 
    benefit of Native Hawaiians in the areas of health, education, 
    labor, and housing.
        ``(15) In 1981, the Senate instructed the Office of Education 
    to submit to the Congress a comprehensive report on Native Hawaiian 
    education. The report, entitled the `Native Hawaiian Educational 
    Assessment Project', was released in 1983 and documented that 
    Native Hawaiians scored below parity with national norms on 
    standardized achievement tests, were disproportionately represented 
    in many negative social and physical statistics, indicative of 
    special educational needs, and had educational needs which were 
    related to their unique cultural situation, such as different 
    learning styles and low self-image.
        ``(16) In recognition of the educational needs of Native 
    Hawaiians, in 1988, the Congress enacted title IV of the Augustus 
    F. Hawkins-Robert T. Stafford Elementary and Secondary School 
    Improvement Amendments of 1988 to authorize and develop 
    supplemental educational programs to benefit Native Hawaiians.
        ``(17) In 1993, the Kamehameha Schools Bishop Estate released a 
    ten-year update of the Native Hawaiian Educational Assessment 
    Project, which found that despite the successes of the programs 
    established under title IV of the Augustus F. Hawkins-Robert T. 
    Stafford Elementary and Secondary School Improvement Amendments of 
    1988, many of the same educational needs still exist for Native 
    Hawaiians. For example--
            ``(A) educational risk factors continue to start even 
        before birth for many Native Hawaiian children, including--
                ``(i) late or no prenatal care;
                ``(ii) half of Native Hawaiian women who give birth are 
            unmarried; and
                ``(iii) high rates of births to teenage parents;
            ``(B) Native Hawaiian students continue to begin their 
        school experience lagging behind other students in terms of 
        readiness factors such as vocabulary test scores;
            ``(C) Native Hawaiian students continue to score below 
        national norms on standardized education achievement tests at 
        all grade levels;
            ``(D) both public and private schools continue to show a 
        pattern of lower percentages of Native Hawaiian students in the 
        uppermost achievement levels and in gifted and talented 
        programs;
            ``(E) Native Hawaiian students continue to be 
        overrepresented among students qualifying for special education 
        programs provided to students with learning disabilities, mild 
        mental retardation, emotional impairment, and other such 
        disabilities;
            ``(F) Native Hawaiians continue to be underrepresented in 
        institutions of higher education and among adults who have 
        completed four or more years of college;
            ``(G) Native Hawaiians continue to be disproportionately 
        represented in many negative social and physical statistics, 
        indicative of special educational needs, for example--
                ``(i) Native Hawaiian students are more likely to be 
            retained in grade level and to be excessively absent in 
            secondary school;
                ``(ii) Native Hawaiian students are the highest users 
            of drugs and alcohol in the State of Hawai`i; and
                ``(iii) Native Hawaiian children continue to be 
            disproportionately victimized by child abuse and neglect; 
            and
            ``(H) Native Hawaiians now comprise over 23 percent of the 
        students served by the State of Hawai`i Department of Education 
        and there are and will continue to be geographically rural, 
        isolated areas with a high Native Hawaiian population density.
        ``(18) The findings described in paragraphs (1) through (17) 
    are contrary to the high rate of literacy and integration of 
    traditional culture and Western education achieved by Native 
    Hawaiians through a Hawaiian language-based public school system 
    established in 1840 by Kamehameha III.
        ``(19) After the overthrow of the Kingdom of Hawai`i in 1893, 
    Hawaiian medium schools were banned. After annexation, throughout 
    the territorial and statehood period, and until 1986, use of 
    Hawaiian as a medium of education in public schools was declared 
    unlawful, thereby causing incalculable harm to a culture that 
    placed a very high value on the power of language, as exemplified 
    in the traditional saying: `I ka `olelo no ke ola; I ka `olelo no 
    ka make. In the language rests life; In the language rests death.'.
        ``(20) Despite the consequences of over 100 years of 
    nonindigenous influence, the Native Hawaiian people are determined 
    to preserve, develop, and transmit to future generations their 
    ancestral territory, and their cultural identity in accordance with 
    their own spiritual and traditional beliefs, customs, practices, 
    language, and social institutions.
        ``(21) The State of Hawai`i, in the constitution and statutes 
    of the State of Hawai`i--
            ``(A) reaffirms and protects the unique right of the Native 
        Hawaiian people to practice and perpetuate their culture and 
        religious customs, beliefs, practices, and language; and
            ``(B) recognizes the traditional language of the Native 
        Hawaiian people as an official language of the State of 
        Hawai`i, which may be used as the language of instruction for 
        all subjects and grades in the public school system.

``SEC. 9203. PURPOSE.

    ``It is the purpose of this part to--
        ``(1) authorize and develop supplemental educational programs 
    to assist Native Hawaiians in reaching the National Education 
    Goals;
        ``(2) provide direction and guidance to appropriate Federal, 
    State, and local agencies to focus resources, including resources 
    made available under this part, on Native Hawaiian education, 
    through the establishment of a Native Hawaiian Education Council, 
    and five island councils;
        ``(3) supplement and expand existing programs and authorities 
    in the area of education to further the purposes of the title; and
        ``(4) encourage the maximum participation of Native Hawaiians 
    in planning and management of Native Hawaiian Education Programs.

``SEC. 9204. NATIVE HAWAIIAN EDUCATION COUNCIL AND ISLAND COUNCILS.

    ``(a) Establishment of Native Hawaiian Education Council.--In order 
to better effectuate the purposes of this part through the coordination 
of educational and related services and programs available to Native 
Hawaiians, including those programs receiving funding under this part, 
the Secretary is authorized to establish a Native Hawaiian Education 
Council (hereafter in this part referred to as the `Education 
Council').
    ``(b) Composition of Education Council.--The Education Council 
shall consist of not more than 25 members, including a representative 
of--
        ``(1) each recipient of funds from the Secretary under this 
    part;
        ``(2) the State of Hawai`i Department of Education;
        ``(3) the State of Hawai`i Office of Hawaiian Affairs;
        ``(4) Native Hawaiian educational organizations, such as Alu 
    Like, Inc., Kamehameha Schools Bishop Estate, Hawaiian Language 
    Immersion Advisory Council, Aha Punana Leo, and the Queen 
    Lili`uokalani Trust and Children's Center; and
        ``(5) each Native Hawaiian education island council established 
    under subsection (f).
    ``(c) Conditions and Terms.--At least three-fourths of the members 
of the Education Council shall be Native Hawaiians. Members of the 
Education Council shall be appointed for three-year terms.
    ``(d) Administrative Grant for the Education Council.--The 
Secretary shall make a direct grant to the Education Council in order 
to enable the Education Council to--
        ``(1) coordinate the educational and related services and 
    programs available to Native Hawaiians, including the programs 
    assisted under this part, and assess the extent to which such 
    services and programs meet the needs of Native Hawaiians; and
        ``(2) provide direction and guidance, through the issuance of 
    reports and recommendations, to appropriate Federal, State, and 
    local agencies in order to focus and improve the use of resources, 
    including resources made available under this part, on Native 
    Hawaiian education.
    ``(e) Additional Duties of the Education Council.--
        ``(1) In general.--The Education Council shall provide copies 
    of any reports and recommendations issued by the Education Council 
    to the Secretary, the Committee on Indian Affairs of the Senate, 
    and the Committee on Education and Labor of the House of 
    Representatives, including any information that the Education 
    Council provides to the Secretary pursuant to subsection (i).
        ``(2) Annual report.--The Education Council shall present to 
    the Secretary an annual report on the Education Council's 
    activities.
        ``(3) Island council support and assistance.--The Education 
    Council shall provide such administrative support and financial 
    assistance to the island councils established pursuant to 
    subsection (f) as the Secretary deems appropriate.
    ``(f) Establishment of Island Councils.--
        ``(1) In general.--In order to better effectuate the purposes 
    of this part and to ensure the adequate representation of island 
    and community interests within the Education Council, the Office of 
    Hawaiian Affairs of the State of Hawai`i is authorized to 
    facilitate the establishment of Native Hawaiian education island 
    councils (hereafter in this part referred to as `island councils') 
    for the following islands:
            ``(A) Hawai`i.
            ``(B) Maui and Lana`i.
            ``(C) Moloka`i.
            ``(D) Kaua`i and Ni`ihau.
            ``(E) O`ahu.
        ``(2) Composition of island councils.--Each island council 
    shall consist of parents, students, and other community members who 
    have an interest in the education of Native Hawaiians, and shall be 
    representative of the educational needs of all age groups, from 
    preschool through adulthood. At least three-fourths of the members 
    of each island council shall be Native Hawaiians
    ``(g) Administrative Provisions Relating to Education Council and 
Island Councils.--The Education Council and each island council shall 
meet at the call of the chairperson of the respective council, or upon 
the request of the majority of the members of the respective council, 
but in any event not less than four times during each calendar year. 
The provisions of the Federal Advisory Committee Act shall not apply to 
the Education Council and each island council.
    ``(h) Compensation.--Members of the Education Council and each 
island council shall not receive any compensation for services on the 
Education Council and each island council, respectively.
    ``(i) Report.--Not later than four years after the date of the 
enactment of the Improving America's Schools Act of 1994, the Secretary 
shall prepare and submit to the Committee on Indian Affairs of the 
Senate, and the Committee on Education and Labor of the House of 
Representatives, a report which summarizes the annual reports of the 
Education Council, describes the allocation and utilization of funds 
under this part, and contains recommendations for changes in Federal, 
State, and local policy to advance the purposes of this part.
    ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated $500,000 for fiscal year 1995, and such sums as may be 
necessary for each of the 4 succeeding fiscal years, to carry out this 
section. Funds appropriated under the authority of this subsection 
shall remain available until expended.

``SEC. 9205. NATIVE HAWAIIAN FAMILY-BASED EDUCATION CENTERS.

    ``(a) General Authority.--The Secretary is authorized to make 
direct grants, to Native Hawaiian educational organizations or 
educational entities with experience in developing or operating Native 
Hawaiian programs or programs of instruction conducted in the Native 
Hawaiian language, to expand the operation of Family-Based Education 
Centers throughout the Hawaiian Islands. The programs of such centers 
may be conducted in the Hawaiian language, the English language, or a 
combination thereof, and shall include--
        ``(1) parent-infant programs for prenatal through three-year-
    olds;
        ``(2) preschool programs for four- and five-year-olds;
        ``(3) continued research and development; and
        ``(4) a long-term followup and assessment program, which may 
    include educational support services for Native Hawaiian language 
    immersion programs or transition to English speaking programs.
    ``(b) Administrative Costs.--Not more than 7 percent of the funds 
appropriated to carry out the provisions of this section for any fiscal 
year may be used for administrative purposes.
    ``(c) Authorization of Appropriations.--In addition to any other 
amount authorized to be appropriated for the centers described in 
subsection (a), there are authorized to be appropriated $6,000,000 for 
fiscal year 1995, and such sums as may be necessary for each of the 
four succeeding fiscal years, to carry out this section. Funds 
appropriated under the authority of this subsection shall remain 
available until expended.

``SEC. 9206. NATIVE HAWAIIAN HIGHER EDUCATION PROGRAM.

    ``(a) General Authority.--
        ``(1) In general.--The Secretary is authorized to make direct 
    grants, to Native Hawaiian educational organizations or educational 
    entities with experience in developing or operating Native Hawaiian 
    programs or programs of instruction conducted in the Native 
    Hawaiian language, to enable such organizations or entities to 
    provide a program of baccalaureate and post-baccalaureate 
    fellowship assistance to Native Hawaiian students.
        ``(2) Activities.--Such program may include--
            ``(A) full or partial fellowship support for Native 
        Hawaiian students enrolled at two- or four-year degree granting 
        institutions of higher education with awards to be based on 
        academic potential and financial need; and
            ``(B) full or partial fellowship support for Native 
        Hawaiian students enrolled at post-baccalaureate degree 
        granting institutions of higher education with priority given 
        to providing fellowship support for professions in which Native 
        Hawaiians are underrepresented and with fellowship awards to be 
        based on academic potential and financial need;
            ``(C) counseling and support services for students 
        receiving fellowship assistance under paragraph (1);
            ``(D) college preparation and guidance counseling at the 
        secondary school level for students who may be eligible for 
        fellowship support pursuant to subsection (a)(2)(A);
            ``(E) appropriate research and evaluation of the activities 
        authorized by this section; and
            ``(F) implementation of faculty development programs for 
        the improvement and matriculation of Native Hawaiian students.
    ``(b) Special Conditions Required.--For the purpose of fellowships 
awarded under subsection (a), fellowship conditions shall be 
established whereby fellowship recipients obtain an enforceable 
contract obligation to provide their professional services, either 
during the fellowship period or upon completion of a baccalaureate or 
post-baccalaureate degree program, to the Native Hawaiian community.
    ``(c) Special Rule.--No policy shall be made in implementing this 
section to prevent a Native Hawaiian student enrolled at an accredited 
two- or four-year degree granting institution of higher education 
outside of the State of Hawai`i from receiving a fellowship pursuant to 
subsections (a) and (b) of this section.
    ``(d) Administrative Costs.--Not more than 7 percent of the funds 
appropriated to carry out the provisions of this section for any fiscal 
year may be used for administrative purposes.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated $2,000,000 for fiscal year 1995, and such sums as may be 
necessary for each of the four succeeding fiscal years, to carry out 
this section. Funds appropriated under the authority of this subsection 
shall remain available until expended.

``SEC. 9207. NATIVE HAWAIIAN GIFTED AND TALENTED PROGRAM.

    ``(a) General Authority.--The Secretary is authorized to make a 
grant, to a Native Hawaiian educational organization or an educational 
entity with experience in developing or operating Native Hawaiian 
programs or programs of instruction conducted in the Native Hawaiian 
language, for a gifted and talented program designed to--
        ``(1) address the special needs of Native Hawaiian elementary 
    and secondary school students who are gifted and talented students; 
    and
        ``(2) provide those support services to the families of such 
    students that are needed to enable such students to benefit from 
    the program.
    ``(b) Uses of Funds.--The program funded under this section may 
include--
        ``(1) the identification of the special needs of Native 
    Hawaiian gifted and talented students, particularly with respect 
    to--
            ``(A) the emotional and psychosocial needs of such 
        students; and
            ``(B) the provision of those support services to the 
        families of such students that are needed to enable such 
        students to benefit from the program;
        ``(2) the conduct of educational, psychosocial, and 
    developmental activities which hold reasonable promise of resulting 
    in substantial progress toward meeting the educational needs of 
    such students, including demonstrating and exploring the use of the 
    Native Hawaiian language and exposure to Native Hawaiian cultural 
    traditions;
        ``(3) leadership programs designed to--
            ``(A) replicate programs throughout the State of Hawai`i 
        for gifted and talented students who are not served under this 
        section; and
            ``(B) coordinate with other Native American gifted and 
        talented leadership programs, including the dissemination of 
        information derived from the program conducted under this 
        section; and
        ``(4) appropriate research, evaluation, and related activities 
    pertaining to--
            ``(A) the needs of such students; and
            ``(B) the provision of those support services to the 
        families of such students that are needed to enable such 
        students to benefit from the program.
    ``(c) Information Provision.--The Secretary is authorized to 
facilitate the establishment of a national network of Native Hawaiian 
and American Indian Gifted and Talented Centers, and ensure that the 
information developed by these centers shall be readily available to 
the educational community at large.
    ``(d) Administrative Costs.--Not more than 7 percent of the funds 
appropriated to carry out the provisions of this section for any fiscal 
year may be used for administrative purposes.
    ``(e) Authorization of Appropriations.--In addition to any other 
amount authorized to be appropriated for the program described in this 
section, there are authorized to be appropriated $1,500,000 for fiscal 
year 1995, and such sums as may be necessary for each of the 4 
succeeding fiscal years, to carry out this section. Funds appropriated 
under the authority of this subsection shall remain available until 
expended.

``SEC. 9208. NATIVE HAWAIIAN SPECIAL EDUCATION PROGRAM.

    ``(a) General Authority.--The Secretary is authorized to make 
grants to, or enter into contracts with, Native Hawaiian educational 
organizations or educational entities with experience in developing or 
operating Native Hawaiian programs or programs of instruction conducted 
in the Native Hawaiian language, to operate a program to address the 
special education needs of Native Hawaiian students. Such program may 
include--
        ``(1) the identification of Native Hawaiian students with 
    disabilities or who are otherwise in need of special educational 
    services;
        ``(2) the identification of the special education needs of such 
    students, particularly with respect to--
            ``(A) the emotional and psychosocial needs of such 
        students; and
            ``(B) the provision of those support services to the 
        families of such students that are needed to enable such 
        students to benefit from the program;
        ``(3) the conduct of educational activities consistent with 
    part B of the Education of Individuals with Disabilities Education 
    Act which hold reasonable promise of resulting in substantial 
    progress toward meeting the educational needs of such students;
        ``(4) the conduct of educational, psychosocial, and 
    developmental activities which hold reasonable promise of resulting 
    in substantial progress toward meeting the educational needs of 
    such students, including demonstrating and exploring the use of the 
    Native Hawaiian language and exposure to Native Hawaiian cultural 
    traditions; and
        ``(5) appropriate research, evaluation, and related activities 
    pertaining to--
            ``(A) the needs of such students;
            ``(B) the provision of those support services to the 
        families of such students that are needed to enable such 
        student to benefit from the program; and
            ``(C) the outcomes and benefits of activities assisted 
        under this section upon such students.
    ``(b) Administrative Costs.--Not more than 7 percent of the funds 
appropriated to carry out the provisions of this section for any fiscal 
year may be used for administrative purposes.
    ``(c) Authorization of Appropriations.--In addition to any other 
amount authorized to be appropriated for the program described in this 
section, there are authorized to be appropriated $2,000,000 for fiscal 
year 1995, and such sums as may be necessary for each of the four 
succeeding fiscal years, to carry out this section. Funds appropriated 
under the authority of this subsection shall remain available until 
expended.

``SEC. 9209. NATIVE HAWAIIAN CURRICULUM DEVELOPMENT, TEACHER TRAINING 
              AND RECRUITMENT PROGRAM.

    ``(a) General Authority.--The Secretary is authorized to make 
direct grants, to Native Hawaiian educational organizations or 
educational entities with experience in developing or operating Native 
Hawaiian programs or programs of instruction conducted in the Native 
Hawaiian language, for the following purposes:
        ``(1) Curricula.--The development of curricula to address the 
    needs of Native Hawaiian students, particularly elementary and 
    secondary school students, which may include programs of 
    instruction conducted in the Native Hawaiian language, and 
    mathematics and science curricula incorporating the relevant 
    application of Native Hawaiian culture and traditions.
        ``(2) Preteacher training.--The development and implementation 
    of preteacher training programs in order to ensure that student 
    teachers within the State of Hawai`i, particularly student teachers 
    who are likely to be employed in schools with a high concentration 
    of Native Hawaiian students, are prepared to better address the 
    unique needs of Native Hawaiian students, within the context of 
    Native Hawaiian culture, language and traditions.
        ``(3) Inservice teacher training.--The development and 
    implementation of inservice teacher training programs, in order to 
    ensure that teachers, particularly teachers employed in schools 
    with a high concentration of Native Hawaiian students, are prepared 
    to better address the unique needs of Native Hawaiian students, 
    within the context of Native Hawaiian culture, language and 
    traditions.
        ``(4) Teacher recruitment.--The development and implementation 
    of teacher recruitment programs to meet the objectives of--
            ``(A) enhancing teacher recruitment within communities with 
        a high concentration of Native Hawaiian students; and
            ``(B) increasing the numbers of teachers who are of Native 
        Hawaiian ancestry.
    ``(b) Priority.--In awarding grants under this section, the 
Secretary shall give priority to awarding grants for activities 
described in subsection (a) that--
        ``(1) focus on the needs of at-risk youth; or
        ``(2) employ a program of instruction conducted in the Native 
    Hawaiian language, except that entities receiving grants awarded 
    pursuant to subsection (a)(2) shall coordinate in the development 
    of new curricula.
    ``(c) Administrative Costs.--Not more than 7 percent of the funds 
appropriated to carry out the provisions of this section for any fiscal 
year may be used for administrative purposes.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated $2,000,000 for fiscal year 1995, and such sums as may be 
necessary for each of the four succeeding fiscal years, to carry out 
this section. Funds appropriated under the authority of this subsection 
shall remain available until expended.

``SEC. 9210. NATIVE HAWAIIAN COMMUNITY-BASED EDUCATION LEARNING 
              CENTERS.

    ``(a) General Authority.--The Secretary is authorized to make 
direct grants, to collaborative efforts between community-based Native 
Hawaiian organizations and community colleges, to develop, establish, 
and operate a minimum of three community-based education learning 
centers.
    ``(b) Purpose.--The learning centers described in subsection (a) 
shall meet the needs of families and communities through 
interdepartmental and interagency coordination of new and existing 
public and private programs and services, which may include--
        ``(1) preschool programs;
        ``(2) after-school programs; and
        ``(3) vocational and adult education programs.
    ``(c) Administrative Costs.--Not more than 7 percent of the funds 
appropriated to carry out the provisions of this section for any fiscal 
year may be used for administrative purposes.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated $1,000,000 for fiscal year 1995, and such sums as may be 
necessary for each of the four succeeding fiscal years, to carry out 
this section. Funds appropriated under the authority of this subsection 
shall remain available until expended.

``SEC. 9211. ADMINISTRATIVE PROVISIONS.

    ``(a) Application Required.--No grant may be made under this part, 
nor any contract be entered into under this part, unless an application 
is submitted to the Secretary in such form, in such manner, and 
containing such information as the Secretary may determine necessary to 
carry out the provisions of this title.
    ``(b) Special Rule.--Each application submitted under this title 
shall be accompanied by the comments of each local educational agency 
serving students who will participate in the project for which 
assistance is sought.

``SEC. 9212. DEFINITIONS.

    ``For the purposes of this part--
        ``(1) The term `Native Hawaiian' means any individual who is--
            ``(A) a citizen of the United States; and
            ``(B) a descendant of the aboriginal people, who prior to 
        1778, occupied and exercised sovereignty in the area that now 
        comprises the State of Hawai`i, as evidenced by--
                ``(i) genealogical records;
                ``(ii) Kupuna (elders) or Kama`aina (long-term 
            community residents) verification; or
                ``(iii) certified birth records.
        ``(2) The term `Native Hawaiian educational organization' means 
    a private nonprofit organization that--
            ``(A) serves the interests of Native Hawaiians;
            ``(B) has Native Hawaiians in substantive and policymaking 
        positions within the organization;
            ``(C) has a demonstrated expertise in the education of 
        Native Hawaiian youth; and
            ``(D) has demonstrated expertise in research and program 
        development.
        ``(3) The term `Native Hawaiian Organization' means a private 
    nonprofit organization that--
            ``(A) serves the interests of Native Hawaiians;
            ``(B) has Native Hawaiians in substantive and policymaking 
        positions within the organizations; and
            ``(C) is recognized by the Governor of Hawai`i for the 
        purpose of planning, conducting, or administering programs (or 
        portions of programs) for the benefit of Native Hawaiians.
        ``(4) The term `Native Hawaiian language' means the single 
    Native American language indigenous to the original inhabitants of 
    the State of Hawai`i.
        ``(5) The term `Office of Hawaiian Affairs' means the Office of 
    Hawaiian Affairs established by the Constitution of the State of 
    Hawai`i.
        ``(6) The term `Native Hawaiian community-based organization' 
    means any organization which is composed primarily of Native 
    Hawaiians from a specific community and which assists in the 
    social, cultural and educational development of Native Hawaiians in 
    that community.

                   ``PART C--ALASKA NATIVE EDUCATION

``SEC. 9301. SHORT TITLE.

    ``This part may be cited as the `Alaska Native Educational Equity, 
Support and Assistance Act'.

``SEC. 9302. FINDINGS.

    ``The Congress finds and declares:
        ``(1) The attainment of educational success is critical to the 
    betterment of the conditions, long-term well-being and preservation 
    of the culture of Alaska Natives.
        ``(2) It is the policy of the Federal Government to encourage 
    the maximum participation by Alaska Natives in the planning and the 
    management of Alaska Native education programs.
        ``(3) Alaska Native children enter and exit school with serious 
    educational handicaps.
        ``(4) The educational achievement of Alaska Native children is 
    far below national norms. In addition to low Native performance on 
    standardized tests, Native student dropout rates are high, and 
    Natives are significantly underrepresented among holders of 
    baccalaureate degrees in the State of Alaska. As a result, Native 
    students are being denied their opportunity to become full 
    participants in society by grade school and high school educations 
    that are condemning an entire generation to an underclass status 
    and a life of limited choices.
        ``(5) The programs authorized herein, combined with expanded 
    Head Start, infant learning and early childhood education programs, 
    and parent education programs are essential if educational 
    handicaps are to be overcome.
        ``(6) The sheer magnitude of the geographic barriers to be 
    overcome in delivering educational services in rural and village 
    Alaska should be addressed through the development and 
    implementation of innovative, model programs in a variety of areas.
        ``(7) Congress finds that Native children should be afforded 
    the opportunity to begin their formal education on a par with their 
    non-Native peers. The Federal Government should lend support to 
    efforts developed by and undertaken within the Alaska Native 
    community to improve educational opportunity for all students.

``SEC. 9303. PURPOSE.

    ``It is the purpose of this part to--
        ``(1) recognize the unique educational needs of Alaska Natives;
        ``(2) authorize the development of supplemental educational 
    programs to benefit Alaska Natives;
        ``(3) supplement existing programs and authorities in the area 
    of education to further the purposes of this part; and
        ``(4) provide direction and guidance to appropriate Federal, 
    State and local agencies to focus resources, including resources 
    made available under this part, on meeting the educational needs of 
    Alaska Natives.
``SEC. 9304. ALASKA NATIVE EDUCATIONAL PLANNING, CURRICULUM 
DEVELOPMENT, TEACHER TRAINING AND RECRUITMENT PROGRAM.
    ``(a) General Authority.--The Secretary shall make direct grants to 
Alaska Native organizations or educational entities with experience in 
developing or operating Alaska Native programs or programs of 
instruction conducted in Alaska Native languages, or to partnerships 
involving Alaska Native organizations, for the following purposes:
        ``(1) Educational planning.--The consolidation of existing 
    educational plans, recommendations and research into implementation 
    methods and strategies to improve schooling for Alaska Natives.
        ``(2) Implementation of educational plans.--The adoption and 
    implementation of specific educational plans developed under 
    subsection (1) above.
        ``(3) Curricula.--The development of curricula to address the 
    needs of Alaska Native students, particularly elementary and 
    secondary school students, which may include innovative programs 
    and pilot and demonstration programs to develop and introduce 
    curriculum materials that reflect cultural diversities or the 
    contributions of Alaska Native people, programs of instruction 
    conducted in Native languages, and the development of networks to 
    introduce successful techniques, programs and curriculum materials 
    to rural and urban schools, including:
            ``(A) multimedia social studies curricula which fully and 
        accurately portray the role of Native Americans historically 
        and contemporarily; and
            ``(B) curricula and teaching materials for instructions in 
        Native languages.
        ``(4) Preteacher training.--The development and implementation 
    of preteacher training programs in order to ensure that student 
    teachers within the State of Alaska, particularly student teachers 
    who are likely to be employed in schools with a high concentration 
    of Alaska Native students, are prepared to better address the 
    cultural diversity and unique needs of Alaska Native students;
        ``(5) Teacher recruitment.--The development and implementation 
    of teacher recruitment programs to meet the objectives of--
            ``(A) increasing the numbers of teachers who are Alaska 
        Natives;
            ``(B) enhancing teacher recruitment within communities with 
        a high concentration of Alaska Native students; and
            ``(C) improving the teacher selection processes in order to 
        recruit teachers who are more positively responsive to rural 
        conditions and who are suited for effective cross-cultural 
        instruction.
        ``(6) Inservice teacher training.--The development and 
    implementation of inservice teacher training programs in order to 
    ensure that teachers are prepared to better address the unique 
    needs of Alaska Native students.
    ``(b) Administrative Costs.--Not more than 10 percent of the funds 
appropriated to carry out the provisions of this section for any fiscal 
year may be used for administrative purposes.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated $5,000,000 for fiscal year 1995, and such sums as may be 
necessary for each of the four succeeding fiscal years, to carry out 
this section. Funds appropriated under the authority of this subsection 
shall remain available until expended.
``SEC. 9305. ALASKA NATIVE HOME BASED EDUCATION FOR PRESCHOOL CHILDREN.
    ``(a) General Authority.--The Secretary shall make direct grants to 
Alaska Native organizations or educational entities with experience in 
developing or operating Alaska Native programs, or to partnerships 
involving Alaska Native organizations, to implement home instruction 
programs for Alaska Native preschool youngsters. The objective of such 
programs shall be to develop parents as educators for their children 
and to assure the active involvement of parents in the education of 
their children from the earliest ages.
    ``(b) Program Elements.--Home based education programs for Alaska 
Native children shall include--
        ``(1) parent-infant programs for prenatal through three-year 
    olds;
        ``(2) preschool programs for four- and five-year olds;
        ``(3) training, education and support programs to teach parents 
    skills in observation, reading readiness, story telling and 
    critical thinking;
        ``(4) continued research and development; and
        ``(5) a long-term followup and assessment program.
    ``(c) Eligibility of HIPPY Programs.--Programs based on the HIPPY 
(Home Instruction Program for Preschool Youngsters) model shall be 
eligible for funding under this section.
    ``(d) Administrative Costs.--Not more than 10 percent of the funds 
appropriated to carry out the provisions of this section for any fiscal 
year may be used for administrative purposes.
    ``(e) Authorization of Appropriations.--There is authorized to be 
appropriated $2,000,000 for fiscal year 1995, and such sums as may be 
necessary for each of the four succeeding fiscal years, to carry out 
this section. Funds appropriated under the authority of this subsection 
shall remain available until expended.

``SEC. 9306. ALASKA NATIVE STUDENT ENRICHMENT PROGRAMS.

    ``(a) General Authority.--The Secretary shall make a grant or 
grants to Alaska Native educational organizations or educational 
entities with experience in developing or operating Alaska Native 
programs, or to partnerships including Alaska Native organizations, for 
enrichment programs for Alaska Native students in the areas of science 
and mathematics education. The programs shall be designed to--
        ``(1) prepare qualified students from rural areas who are 
    preparing to enter village high schools to excel in science and 
    mathematics; and
        ``(2) provide those support services to the families of such 
    students that are needed to enable such students to benefit from 
    the program.
    ``(b) Uses of Funds.--The program funded under this section may 
include--
        ``(1) the identification of the students eligible to 
    participate in the program;
        ``(2) the conduct of educational, psychosocial, and 
    developmental activities which hold reasonable promise of resulting 
    in substantial enrichment of the educational performance of the 
    participating students;
        ``(3) leadership programs designed to provide for the 
    replication of the program in other subject matter areas and the 
    dissemination of information derived from the program; and
        ``(4) appropriate research, evaluation and related activities 
    pertaining to the benefits of such enrichment programs.
    ``(c) Administrative Costs.--Not more than 10 percent of the funds 
appropriated to carry out the provisions of this section for any fiscal 
year may be used for administrative purposes.
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated $1,000,000 for fiscal year 1995, and such sums as may be 
necessary for each of the four succeeding fiscal years, to carry out 
this section. Funds appropriated under the authority of this subsection 
shall remain available until expended.

``SEC. 9307. ADMINISTRATIVE PROVISIONS.

    ``(a) Application Required.--No grant may be made under this part, 
nor any contract be entered into under this part, unless an application 
is submitted to the Secretary in such form, in such manner, and 
containing such information as the Secretary may determine necessary to 
carry out the provisions of this part.
    ``(b) Applications by Local School Districts or State Educational 
Entities.--Local school districts or State educational entities shall 
apply for funding under this part in partnership with Alaska Native 
organizations.
    ``(c) Consultation Required.--Each applicant for funding shall 
provide for ongoing advice from and consultation with representatives 
of the Alaska Native community.
    ``(d) Local Educational Agency Coordination.--Each local 
educational agency serving students who will participate in the program 
for which assistance is sought shall be informed regarding each 
application submitted under this part, except that approval by or 
concurrence from such local educational agency shall not be required.
    ``(e) Implementation of Authorities.--The Secretary shall 
expeditiously obligate funds appropriated as provided in this part.

``SEC. 9308. DEFINITIONS.

    ``For purposes of this part--
        ``(1) the term `Alaska Native' has the same meaning as the term 
    `Native' has in section 3(b) of the Alaska Native Claims Settlement 
    Act; and
        ``(2) the term `Alaska Native organization' means a federally 
    recognized tribe, consortium of tribes, regional nonprofit Native 
    association, and other Alaska Native organizations that--
            ``(A) has or commits to acquire expertise in the education 
        of Alaska Natives; and
            ``(B) has Alaska Natives in substantive and policy-making 
        positions within the organization.

              ``TITLE X--PROGRAMS OF NATIONAL SIGNIFICANCE

            ``PART A--FUND FOR THE IMPROVEMENT OF EDUCATION

``SEC. 10101. FUND FOR THE IMPROVEMENT OF EDUCATION.

    ``(a) Fund Authorized.--From funds appropriated under subsection 
(d), the Secretary is authorized to support nationally significant 
programs and projects to improve the quality of education, assist all 
students to meet challenging State content standards and challenging 
State student performance standards, and contribute to achievement of 
the National Education Goals. The Secretary is authorized to carry out 
such programs and projects directly or through grants to, or contracts 
with, State and local educational agencies, institutions of higher 
education, and other public and private agencies, organizations, and 
institutions.
    ``(b) Uses of Funds.--
        ``(1) In general.--Funds under this section may be used for--
            ``(A) activities that will promote systemic education 
        reform at the State and local levels, such as--
                ``(i) research and development related to challenging 
            State content and challenging State student performance 
            standards and opportunity-to-learn standards or strategies 
            for student learning;
                ``(ii) the development and evaluation of model 
            strategies for--

                    ``(I) assessment of student learning;
                    ``(II) professional development for teachers and 
                administrators;
                    ``(III) parent and community involvement; and
                    ``(IV) other aspects of systemic reform;

                ``(iii) developing and evaluating strategies for 
            eliminating ability-grouping practices, and developing 
            policies and programs that place all students on a college-
            preparatory path of study, particularly in academic fields 
            such as mathematics, science, English, and social studies, 
            including comprehensive inservice programs for teachers and 
            pupil services personnel and academic enrichment programs 
            that supplement regular courses for students;
                ``(iv) developing and evaluating programs that directly 
            involve parents and family members in the academic progress 
            of their children;
                ``(v) developing and evaluating strategies for 
            integrating instruction and assessment such that teachers 
            and administrators can focus on what students should know 
            and be able to do at particular grade levels, which 
            instruction shall promote the synthesis of knowledge, 
            encourage the development of problem-solving skills drawing 
            on a vast range of disciplines, and promote the development 
            of higher order thinking by all students; and
                ``(vi) developing and evaluating strategies for 
            supporting professional development for teachers across all 
            disciplines and for pupil services personnel, guidance 
            counselors, and administrators, including inservice 
            training that improves the skills of pupil services 
            personnel, counselors and administrators for working with 
            students from diverse populations;
            ``(B) demonstrations at the State and local levels that are 
        designed to yield nationally significant results, including 
        approaches to public school choice and school-based 
        decisionmaking;
            ``(C) joint activities with other agencies to assist the 
        effort to achieve the National Education Goals, including 
        activities related to improving the transition from preschool 
        to school and from school to work, as well as activities 
        related to the integration of education and health and social 
        services;
            ``(D) activities to promote and evaluate counseling and 
        mentoring for students, including intergenerational mentoring;
            ``(E) activities to promote and evaluate coordinated pupil 
        services programs;
            ``(F) activities to promote comprehensive health education;
            ``(G) activities to promote environmental education;
            ``(H) activities to promote consumer, economic, and 
        personal finance education, such as saving, investing, and 
        entrepreneurial education;
            ``(I) activities to promote programs to assist students to 
        demonstrate competence in foreign languages;
            ``(J) studies and evaluation of various education reform 
        strategies and innovations being pursued by the Federal 
        Government, States, and local educational agencies;
            ``(K) activities to promote metric education;
            ``(L) the identification and recognition of exemplary 
        schools and programs, such as Blue Ribbon Schools;
            ``(M) programs designed to promote gender equity in 
        education by evaluating and eliminating gender bias in 
        instruction and educational materials, identifying, and 
        analyzing gender inequities in educational practices, and 
        implementing and evaluating educational policies and practices 
        designed to achieve gender equity;
            ``(N) programs designed to reduce excessive student 
        mobility, retain students who move within a school district at 
        the same school, educate parents about the effect of mobility 
        on a child's education and encourage parents to participate in 
        school activities;
            ``(O) experiential-based learning, such as service-
        learning;
            ``(P) the development and expansion of public-private 
        partnership programs which extend the learning experience, via 
        computers, beyond the classroom environment into student homes 
        through such programs as the Buddy System Computer Project;
            ``(Q) other programs and projects that meet the purposes of 
        this section;
            ``(R) activities to promote child abuse education and 
        prevention programs;
            ``(S) activities to raise standards and expectations for 
        academic achievement among all students, especially 
        disadvantaged students traditionally underserved in schools;
            ``(T) activities to provide the academic support, 
        enrichment and motivation to enable all students to reach such 
        standards;
            ``(U) demonstrations relating to the planning and 
        evaluations of the effectiveness of projects under which local 
        educational agencies or schools contract with private 
        management organizations to reform a school or schools;
            ``(V) demonstrations that are designed to test whether 
        prenatal and counseling provided to pregnant students may have 
        a positive effect on pregnancy outcomes, with such education 
        and counseling emphasizing the importance of prenatal care, the 
        value of sound diet and nutrition habits, and the harmful 
        effects of smoking, alcohol, and substance abuse on fetal 
        development;
            ``(W) programs under section 10102;
            ``(X) programs under section 10103;
            ``(Y) programs under section 10104; and
            ``(Z) programs under section 10105;
        ``(2) Additional uses.--The Secretary may also use funds under 
    this section to complete the project periods for direct grants or 
    contracts awarded under the provisions of this Act, the Fund for 
    the Improvement and Reform of Schools and Teaching Act, or title 
    III of the Education for Economic Security Act, as such Acts were 
    in effect on the day preceding the date of the enactment of the 
    Improving America's Schools Act of 1994.
        ``(3) Special rule.--The Secretary shall not make available 
    more than $1,000,000 to carry out paragraph (1)(R), nor more than 
    $1,000,000 to carry out paragraph (1)(V) during the period 
    beginning on October 1, 1994, through September 30, 1999.
    ``(c) Awards.--
        ``(1) In general.--The Secretary may--
            ``(A) make awards under this section on the basis of 
        competitions announced by the Secretary; and
            ``(B) support meritorious unsolicited proposals.
        ``(2) Special rule.--The Secretary shall ensure that programs, 
    projects, and activities supported under this section are designed 
    so that the effectiveness of such programs, projects, and 
    activities is readily ascertainable.
        ``(3) Peer review.--The Secretary shall use a peer review 
    process in reviewing applications for assistance under this section 
    and may use funds appropriated under subsection (d) for the cost of 
    such peer review.
    ``(d) Authorization.--For the purpose of carrying out this section, 
there are authorized to be appropriated $50,000,000 for fiscal year 
1995 and such sums as may be necessary for each of the four succeeding 
fiscal years.

``SEC. 10102. ELEMENTARY SCHOOL COUNSELING DEMONSTRATION.

    ``(a) Counseling Demonstration.--
        ``(1) In General.--The Secretary may award grants under this 
    section to establish or expand elementary school counseling 
    programs.
        ``(2) Priority.--In awarding grants under this section, the 
    Secretary shall give special consideration to applications 
    describing programs that--
            ``(A) demonstrate the greatest need for new or additional 
        counseling services among the children in the elementary 
        schools served by the applicant;
            ``(B) propose the most promising and innovative approaches 
        for initiating or expanding elementary school counseling; and
            ``(C) show the greatest potential for replication and 
        dissemination.
        ``(3) Equitable distribution.--In awarding grants under this 
    section, the Secretary shall ensure an equitable geographic 
    distribution among the regions of the United States and among 
    urban, suburban, and rural areas.
        ``(4) Duration.--A grant under this section shall be awarded 
    for a period not to exceed three years.
        ``(5) Maximum grant.--A grant under this section shall not 
    exceed $400,000 for any fiscal year.
    ``(b) Applications.--
        ``(1) In general.--Each local educational agency desiring a 
    grant under this section shall submit an application to the 
    Secretary at such time, in such manner, and accompanied by such 
    information as the Secretary may reasonably require.
        ``(2) Contents.--Each application for a grant under this 
    section shall--
            ``(A) describe the elementary school population to be 
        targeted by the program, the particular personal, social, 
        emotional, educational, and career development needs of such 
        population, and the current school counseling resources 
        available for meeting such needs;
            ``(B) describe the activities, services, and training to be 
        provided by the program and the specific approaches to be used 
        to meet the needs described in subparagraph (A);
            ``(C) describe the methods to be used to evaluate the 
        outcomes and effectiveness of the program;
            ``(D) describe the collaborative efforts to be undertaken 
        with institutions of higher education, businesses, labor 
        organizations, community groups, social service agencies, and 
        other public or private entities to enhance the program and 
        promote school-linked services integration;
            ``(E) describe collaborative efforts with institutions of 
        higher education which specifically seek to enhance or improve 
        graduate programs specializing in the preparation of elementary 
        school counselors, school psychologists, and school social 
        workers;
            ``(F) document that the applicant has the personnel 
        qualified to develop, implement, and administer the program;
            ``(G) describe how any diverse cultural populations, if 
        applicable, would be served through the program;
            ``(H) assure that the funds made available under this part 
        for any fiscal year will be used to supplement and, to the 
        extent practicable, increase the level of funds that would 
        otherwise be available from non-Federal sources for the program 
        described in the application, and in no case supplant such 
        funds from non-Federal sources; and
            ``(I) assure that the applicant will appoint an advisory 
        board composed of parents, school counselors, school 
        psychologists, school social workers, other pupil services 
        personnel, teachers, school administrators, and community 
        leaders to advise the local educational agency on the design 
        and implementation of the program.
    ``(c) Use of Funds.--
        ``(1) In general.--Grant funds under this section shall be used 
    to initiate or expand elementary school counseling programs that 
    comply with the requirements in paragraph (2).
        ``(2) Program requirements.--Each program assisted under this 
    section shall--
            ``(A) be comprehensive in addressing the personal, social, 
        emotional, and educational needs of all students;
            ``(B) use a developmental, preventive approach to 
        counseling;
            ``(C) increase the range, availability, quantity, and 
        quality of counseling services in the elementary schools of the 
        local educational agency;
            ``(D) expand counseling services only through qualified 
        school counselors, school psychologists, and school social 
        workers;
            ``(E) use innovative approaches to increase children's 
        understanding of peer and family relationships, work and self, 
        decisionmaking, academic and career planning, or to improve 
        social functioning;
            ``(F) provide counseling services that are well-balanced 
        among classroom group and small group counseling, individual 
        counseling, and consultation with parents, teachers, 
        administrators, and other pupil services personnel;
            ``(G) include inservice training for school counselors, 
        school social workers, school psychologists, other pupil 
        services personnel, teachers, and instructional staff;
            ``(H) involve parents of participating students in the 
        design, implementation, and evaluation of a counseling program;
            ``(I) involve collaborative efforts with institutions of 
        higher education, businesses, labor organizations, community 
        groups, social service agencies, or other public or private 
        entities to enhance the program and promote school-linked 
        services integration; and
            ``(J) evaluate annually the effectiveness and outcomes of 
        the counseling services and activities assisted under this 
        section.
        ``(3) Report.--The Secretary shall issue a report evaluating 
    the programs assisted pursuant to each grant under this subsection 
    at the end of each grant period in accordance with section 14701, 
    but in no case later than January 30, 1998.
        ``(4) Dissemination.--The Secretary shall make the programs 
    assisted under this section available for dissemination, either 
    through the National Diffusion Network or other appropriate means.
        ``(5) Limit on administration.--Not more than five percent of 
    the amounts made available under this section in any fiscal year 
    shall be used for administrative costs to carry out this section.
    ``(d) Definitions.--For purposes of this section--
        ``(1) the term `school counselor' means an individual who has 
    documented competence in counseling children and adolescents in a 
    school setting and who--
            ``(A) possesses State licensure or certification 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 organization; or
            ``(C) holds a minimum of a master's degree in school 
        counseling from a program accredited by the Council for 
        Accreditation of Counseling and Related Educational Programs or 
        the equivalent;
        ``(2) the term `school psychologist' means an individual who--
            ``(A) possesses a minimum of 60 graduate semester hours in 
        school psychology from an institution of higher education and 
        has completed 1,200 clock hours in a supervised school 
        psychology internship, of which 600 hours shall be in the 
        school setting;
            ``(B) possesses State licensure or certification 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 
    holds a master's degree in social work and is licensed or certified 
    by the State in which services are provided or holds a school 
    social work specialist credential; and
        ``(4) the term `supervisor' means an individual who has the 
    equivalent number of years of professional experience in such 
    individual's respective discipline as is required of teaching 
    experience for the supervisor or administrative credential in the 
    State of such individual.
``SEC. 10103. PARTNERSHIPS IN CHARACTER EDUCATION PILOT PROJECT.
    ``(a) Program Authorized.--
        ``(1) In general.--The Secretary is authorized to make up to a 
    total of ten grants annually to partnerships of State educational 
    agencies and local educational agencies for the design and 
    implementation of character education programs that incorporate the 
    elements of character listed in subsection (d), as well as other 
    character elements identified by applicants.
        ``(2) Maximum amount of grant.--No State educational agency 
    shall receive more than a total of $1,000,000 in grants under this 
    part.
        ``(3) Duration.--Each grant under this section shall be awarded 
    for a period not to exceed five years, of which the State 
    educational agency shall not use more than one year for planning 
    and program design.
    ``(b) State Educational Agency Applications.--
        ``(1) Requirement.--Each State educational agency desiring a 
    grant under this section shall submit an application to the 
    Secretary at such time and in such manner as the Secretary may 
    require.
        ``(2) Partnerships.--Each State educational agency desiring a 
    grant under this section shall form a partnership with at least one 
    local educational agency to be eligible for funding. The 
    partnership shall pursue State and local initiatives to meet the 
    objectives of this section.
        ``(3) Application.--Each application under this section shall 
    include--
            ``(A) a list of the local educational agencies entering 
        into the partnership with the State educational agency;
            ``(B) a description of the goals of the partnership;
            ``(C) a description of activities that will be pursued by 
        the participating local educational agencies, including--
                ``(i) how parents, students, and other members of the 
            community, including members of private and nonprofit 
            organizations, will be involved in the design and 
            implementation of the program;
                ``(ii) curriculum and instructional practices;
                ``(iii) methods of teacher training and parent 
            education that will be used or developed; and
                ``(iv) examples of activities that will be carried out 
            under this part;
            ``(D) a description of how the State educational agency 
        will provide technical and professional assistance to its local 
        educational agency partners in the development and 
        implementation of character education programs;
            ``(E) a description of how the State educational agency 
        will evaluate the success of local programs and how local 
        educational agencies will evaluate the progress of their own 
        programs;
            ``(F) a description of how the State educational agency 
        will assist other interested local educational agencies that 
        are not members of the original partnership in designing and 
        establishing programs;
            ``(G) a description of how the State educational agency 
        will establish a clearinghouse for information on model 
        programs, materials, and other information the State and local 
        educational agencies determine to be appropriate;
            ``(H) an assurance that the State educational agency will 
        annually provide to the Secretary such information as may be 
        required to determine the effectiveness of the program; and
            ``(I) any other information that the Secretary may require.
        ``(4) Non-partner local educational agencies.--Any local 
    educational agency that was not a partner with the State when the 
    application was submitted may become a partner by submitting an 
    application for partnership to the State educational agency, 
    containing such information that the State educational agency may 
    require.
    ``(c) Evaluation and Program Development.--
        ``(1) Requirement.--Each State educational agency receiving a 
    grant under this section shall submit to the Secretary a 
    comprehensive evaluation of the program assisted under this part, 
    including the impact on students, teachers, administrators, 
    parents, and others--
            ``(A) by the mid-term of the program; and
            ``(B) not later than one year after completion of such 
        program.
        ``(2) Contracts for evaluation.--Each State educational agency 
    receiving a grant under this section may contract with outside 
    sources, including institutions of higher education, and private 
    and nonprofit organizations, for purposes of evaluating their 
    program and measuring the success of the program toward fostering 
    in students the elements of character listed in subsection (b).
        ``(3) Factors.--Factors which may be considered in evaluating 
    the success of the program may include--
            ``(A) discipline problems;
            ``(B) students' grades;
            ``(C) participation in extracurricular activities;
            ``(D) parental and community involvement;
            ``(E) faculty and administration involvement; and
            ``(F) student and staff morale.
        ``(4) Materials and program development.--Local educational 
    agencies, after consulting with the State educational agency, may 
    contract with outside sources, including institutions of higher 
    education, and private and nonprofit organizations, for assistance 
    in developing curriculum, materials, teacher training, and other 
    activities related to character education.
    ``(d) Elements of Character.--
        ``(1) In general.--Applicants desiring funding under this part 
    shall develop character education programs that incorporate the 
    following elements of character:
            ``(A) Caring.
            ``(B) Civic virtue and citizenship.
            ``(C) Justice and fairness.
            ``(D) Respect.
            ``(E) Responsibility.
            ``(F) Trustworthiness.
            ``(G) Any other elements deemed appropriate by the members 
        of the partnership.
        ``(2) Additional elements of character.--A local educational 
    agency participating under this section may, after consultation 
    with schools and communities of such agency, define additional 
    elements of character that the agency determines to be important to 
    the schools and communities of such agency.
    ``(e) Use of Funds.--Of the total funds received by a State 
educational agency in any fiscal year under this section--
        ``(1) not more than 30 percent of such funds may be retained by 
    the State educational agency, of which--
            ``(A) not more than 10 percent of such funds may be used 
        for administrative purposes; and
            ``(B) the remainder of such funds may be used for--
                ``(i) collaborative initiatives with local educational 
            agencies;
                ``(ii) the establishment of the clearinghouse, 
            preparation of materials, teacher training; and
                ``(iii) other appropriate activities; and
        ``(2) the remaining of such funds shall be used to award 
    subgrants to local educational agencies, of which--
            ``(A) not more than 10 percent of such funds may be 
        retained for administrative purposes; and
            ``(B) the remainder of such funds may be used to--
                ``(i) award subgrants to schools within the local 
            educational agency; and
                ``(ii) pursue collaborative efforts with the State 
            educational agency.
    ``(f) Selection of Grantees.--
        ``(1) Criteria.--The Secretary shall select, through peer 
    review, partnerships to receive grants under this section on the 
    basis of the quality of the applications submitted under subsection 
    (b), taking into consideration such factors as--
            ``(A) the quality of the activities proposed by local 
        educational agencies;
            ``(B) the extent to which the program fosters in students 
        the elements of character;
            ``(C) the extent of parental, student, and community 
        involvement;
            ``(D) the number of local educational agencies involved in 
        the effort;
            ``(E) the quality of the plan for measuring and assessing 
        success; and
            ``(F) the likelihood that the goals of the program will be 
        realistically achieved.
        ``(2) Diversity of projects.--The Secretary shall approve 
    applications under this section in a manner that ensures, to the 
    extent practicable, that programs assisted under this section--
            ``(A) serve different areas of the Nation, including urban, 
        suburban, and rural areas; and
            ``(B) serve schools that serve minorities, Native 
        Americans, students of limited-English proficiency, and 
        disadvantaged students.

``SEC. 10104. PROMOTING SCHOLAR-ATHLETE COMPETITIONS.

    ``(a) In General.--The Secretary is authorized to award a grant to 
a nonprofit organization to reimburse such organizations for the costs 
of conducting scholar-athlete games to be held in 1995.
    ``(b) Priority.--In awarding the grant under subsection (a), the 
Secretary shall give priority to a nonprofit organization that--
        ``(1) is described in section 501(c)(3) of, and exempt from 
    taxation under section 501(a) of, the Internal Revenue Code of 
    1986, and is affiliated with a university capable of hosting a 
    large educational, cultural, and athletic event that will serve as 
    a national model;
        ``(2) has the capability and experience in administering 
    federally funded scholar-athlete games;
        ``(3) has the ability to provide matching funds, on a dollar-
    for-dollar basis, from foundations and the private sector for the 
    purpose of conducting a scholar-athlete program;
        ``(4) has the organizational structure and capability to 
    administer a model scholar-athlete program in the summer of 1995;
        ``(5) has the organizational structure and expertise to 
    replicate the scholar-athlete program in various venues throughout 
    the United States in 1996 and thereafter, as well as replicate such 
    program internationally; and
        ``(6) has plans for conducting scholar-athlete games after 1995 
    without Federal assistance.

``SEC. 10105. SMALLER LEARNING COMMUNITIES.

    ``(a) In General.--Each local educational agency desiring a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may require. Each such application shall describe--
        ``(1) strategies and methods the applicant will use to create 
    the smaller learning community or communities;
        ``(2) curriculum and instructional practices, including any 
    particular themes or emphases, to be used in the learning 
    environment;
        ``(3) the extent of involvement of teachers and other school 
    personnel in investigating, designing, implementing and sustaining 
    the smaller learning community or communities;
        ``(4) the process to be used for involving students, parents 
    and other stakeholders in the development and implementation of the 
    smaller learning community or communities;
        ``(5) any cooperation or collaboration among community 
    agencies, organizations, businesses, and others to develop or 
    implement a plan to create the smaller learning community or 
    communities;
        ``(6) the training and professional development activities that 
    will be offered to teachers and others involved in the activities 
    assisted under this part;
        ``(7) the goals and objectives of the activities assisted under 
    this part, including a description of how such activities will 
    better enable all students to reach challenging State content 
    standards and State student performance standards;
        ``(8) the methods by which the applicant will assess progress 
    in meeting such goals and objectives;
        ``(9) if the smaller learning community or communities exist as 
    a school-within-a-school, the relationship, including governance 
    and administration, of the smaller learning community to the rest 
    of the school;
        ``(10) a description of the administrative and managerial 
    relationship between the local educational agency and the smaller 
    learning community or communities, including how such agency will 
    demonstrate a commitment to the continuity of the smaller learning 
    community or communities, including the continuity of student and 
    teacher assignment to a particular learning community;
        ``(11) how the applicant will coordinate or use funds provided 
    under this part with other funds provided under this Act or other 
    Federal laws;
        ``(12) grade levels or ages of students who will participate in 
    the smaller learning community or communities; and
        ``(13) the method of placing students in the smaller learning 
    community or communities, such that students are not placed 
    according to ability, performance or any other measure, so that 
    students are placed at random or by their own choice, not pursuant 
    to testing or other judgments.
    ``(b) Authorized Activities.--Funds under this section may be 
used--
        ``(1) to study the feasibility of creating the smaller learning 
    community or communities as well as effective and innovative 
    organizational and instructional strategies that will be used in 
    the smaller learning community or communities;
        ``(2) to research, develop and implement strategies for 
    creating the smaller learning community or communities, as well as 
    effective and innovative changes in curriculum and instruction, 
    geared to high State content standards and State student 
    performance standards;
        ``(3) to provide professional development for school staff in 
    innovative teaching methods that challenge and engage students to 
    be used in the smaller learning community or communities; and
        ``(4) to develop and implement strategies to include parents, 
    business representatives, local institutions of higher education, 
    community-based organizations, and other community members in the 
    smaller learning communities, as facilitators of activities that 
    enable teachers to participate in professional development 
    activities, as well as to provide links between students and their 
    community.

``SEC. 10106. NATIONAL STUDENT AND PARENT MOCK ELECTION.

    ``(a) In General.--The Secretary is authorized to award grants to 
national nonprofit, nonpartisan organizations that work to promote 
voter participation in American elections to enable such organizations 
to carry out voter education activities for students and their parents. 
Such activities shall--
        ``(1) be limited to simulated national elections that permit 
    participation by students and parents from all 50 States in the 
    United States; and
        ``(2) consist of--
            ``(A) school forums and local cable call-in shows on the 
        national issues to be voted upon in an `issue forum';
            ``(B) speeches and debates before students and parents by 
        local candidates or stand-ins for such candidates;
            ``(C) quiz team competitions, mock press conferences and 
        speechwriting competitions;
            ``(D) weekly meetings to follow the course of the campaign; 
        or
            ``(E) school and neighborhood campaigns to increase voter 
        turnout, including newsletters, posters, telephone chains, and 
        transportation.
    ``(b) Requirement.--Each organization receiving a grant under this 
section shall present awards to outstanding student and parent mock 
election projects.

``SEC. 10107. MODEL PROJECTS.

    ``(a) Program Authorized.--The Secretary is authorized to award 
grants to cultural institutions to enable such institutions to develop 
and expand model projects of outreach activities for at-risk children 
in the communities served by such institutions, including activities 
which integrate such institution's cultural programming with other 
disciplines, including environmental, mathematics, and science 
programs.
    ``(b) Priority.--In awarding grants under this section the 
Secretary shall give priority to activities that are part of an overall 
State, local, and private commitment, seek to improve learning for at-
risk youth, and are substantially funded by State, local, or private 
funds.

                 ``PART B--GIFTED AND TALENTED CHILDREN

``SEC. 10201. SHORT TITLE.

    ``This part may be cited as the `Jacob K. Javits Gifted and 
Talented Students Education Act of 1994'.

``SEC. 10202. FINDINGS AND PURPOSES.

    ``(a) Findings.--The Congress finds and declares that--
        ``(1) all students can learn to high standards and must develop 
    their talents and realize their potential if the United States is 
    to prosper;
        ``(2) gifted and talented students are a national resource 
    vital to the future of the Nation and its security and well-being;
        ``(3) too often schools fail to challenge students to do their 
    best work, and students who are not challenged will not learn to 
    challenging State content standards and challenging State student 
    performance standards, fully develop their talents, and realize 
    their potential;
        ``(4) unless the special abilities of gifted and talented 
    students are recognized and developed during such students' 
    elementary and secondary school years, much of such students' 
    special potential for contributing to the national interest is 
    likely to be lost;
        ``(5) gifted and talented students from economically 
    disadvantaged families and areas, and students of limited-English 
    proficiency are at greatest risk of being unrecognized and of not 
    being provided adequate or appropriate educational services;
        ``(6) State and local educational agencies and private 
    nonprofit schools often lack the necessary specialized resources to 
    plan and implement effective programs for the early identification 
    of gifted and talented students and for the provision of 
    educational services and programs appropriate to their special 
    needs;
        ``(7) the Federal Government can best carry out the limited but 
    essential role of stimulating research and development and 
    personnel training and providing a national focal point of 
    information and technical assistance that is necessary to ensure 
    that the Nation's schools are able to meet the special educational 
    needs of gifted and talented students, and thereby serve a profound 
    national interest; and
        ``(8) the experience and knowledge gained in developing and 
    implementing programs for gifted and talented students can and 
    should be used as a basis to--
            ``(A) develop a rich and challenging curriculum for all 
        students; and
            ``(B) provide all students with important and challenging 
        subject matter to study and encourage the habits of hard work.
    ``(b) Statement of Purpose.--It is the purpose of this part--
        ``(1) to provide financial assistance to State and local 
    educational agencies, institutions of higher education, and other 
    public and private agencies and organizations, to initiate a 
    coordinated program of research, demonstration projects, personnel 
    training, and similar activities designed to build a nationwide 
    capability in elementary and secondary schools to meet the special 
    educational needs of gifted and talented students;
        ``(2) to encourage the development of rich and challenging 
    curricula for all students through the appropriate application and 
    adaptation of materials and instructional methods developed under 
    this part; and
        ``(3) to supplement and make more effective the expenditure of 
    State and local funds, for the education of gifted and talented 
    students.

``SEC. 10203. CONSTRUCTION.

    ``Nothing in this part shall be construed to prohibit a recipient 
of funds under this part from serving gifted and talented students 
simultaneously with students with similar educational needs, in the 
same educational settings where appropriate.

``SEC. 10204. AUTHORIZED PROGRAMS.

    ``(a) Establishment of Program.--
        ``(1) In general.--From the sums appropriated under section 
    10207 in any fiscal year the Secretary (after consultation with 
    experts in the field of the education of gifted and talented 
    students) shall make grants to or enter into contracts with State 
    educational agencies, local educational agencies, institutions of 
    higher education, or other public agencies and private agencies and 
    organizations (including Indian tribes and Indian organizations (as 
    such terms are defined by the Indian Self-Determination and 
    Education Assistance Act) and Native Hawaiian organizations) to 
    assist such agencies, institutions, and organizations which submit 
    applications in carrying out programs or projects authorized by 
    this part that are designed to meet the educational needs of gifted 
    and talented students, including the training of personnel in the 
    education of gifted and talented students and in the use, where 
    appropriate, of gifted and talented services, materials, and 
    methods for all students.
        ``(2) Application.--Each entity desiring assistance under this 
    part shall submit an application to the Secretary at such time, in 
    such manner, and containing such information as the Secretary may 
    reasonably require. Each such application shall describe how--
            ``(A) the proposed gifted and talented services, materials, 
        and methods can be adapted, if appropriate, for use by all 
        students; and
            ``(B) the proposed programs can be evaluated.
    ``(b) Uses of Funds.--Programs and projects assisted under this 
section may include--
        ``(1) professional development (including fellowships) for 
    personnel (including leadership personnel) involved in the 
    education of gifted and talented students;
        ``(2) establishment and operation of model projects and 
    exemplary programs for serving gifted and talented students, 
    including innovative methods for identifying and educating students 
    who may not be served by traditional gifted and talented programs, 
    summer programs, mentoring programs, service learning programs, and 
    cooperative programs involving business, industry, and education;
        ``(3) training of personnel and parents involved in gifted and 
    talented programs with respect to the impact of gender role 
    socialization on the educational needs of gifted and talented 
    children and in gender equitable education methods, techniques and 
    practices;
        ``(4) implementing innovative strategies, such as cooperative 
    learning, peer tutoring and service learning;
        ``(5) strengthening the capability of State educational 
    agencies and institutions of higher education to provide leadership 
    and assistance to local educational agencies and nonprofit private 
    schools in the planning, operation, and improvement of programs for 
    the identification and education of gifted and talented students 
    and the appropriate use of gifted and talented programs and methods 
    to serve all students;
        ``(6) programs of technical assistance and information 
    dissemination, including how gifted and talented programs and 
    methods, where appropriate, may be adapted for use by all students; 
    and
        ``(7) carrying out--
            ``(A) research on methods and techniques for identifying 
        and teaching gifted and talented students, and for using gifted 
        and talented programs and methods to serve all students; and
            ``(B) program evaluations, surveys, and the collection, 
        analysis, and development of information needed to accomplish 
        the purposes of this part.
    ``(c) Establishment of National Center.--
        ``(1) In general.--The Secretary (after consultation with 
    experts in the field of the education of gifted and talented 
    students) shall establish a National Center for Research and 
    Development in the Education of Gifted and Talented Children and 
    Youth through grants to or contracts with one or more institutions 
    of higher education or State educational agency, or a combination 
    or consortium of such institutions and agencies, for the purpose of 
    carrying out activities described in paragraph (7) of subsection 
    (b).
        ``(2) Director.--Such National Center shall have a Director. 
    The Secretary may authorize the Director to carry out such 
    functions of the National Center as may be agreed upon through 
    arrangements with other institutions of higher education, State or 
    local educational agencies, or other public or private agencies and 
    organizations.
    ``(d) Limitation.--Not more than 30 percent of the funds available 
in any fiscal year to carry out the programs and projects authorized by 
this section may be used to conduct activities pursuant to subsection 
(b)(7) or (c).
    ``(e) Coordination.--Research activities supported under this 
section--
        ``(1) shall be carried out in consultation with the Office of 
    Educational Research and Improvement to ensure that such activities 
    are coordinated with and enhance the research and development 
    activities supported by such Office; and
        ``(2) may include collaborative research activities which are 
    jointly funded and carried out with such Office.

``SEC. 10205. PROGRAM PRIORITIES.

    ``(a) General Priority.--In the administration of this part the 
Secretary shall give highest priority--
        ``(1) to the identification of and the provision of services to 
    gifted and talented students who may not be identified and served 
    through traditional assessment methods (including economically 
    disadvantaged individuals, individuals of limited-English 
    proficiency, and individuals with disabilities); and
        ``(2) to programs and projects designed to develop or improve 
    the capability of schools in an entire State or region of the 
    Nation through cooperative efforts and participation of State and 
    local educational agencies, institutions of higher education, and 
    other public and private agencies and organizations (including 
    business, industry, and labor), to plan, conduct, and improve 
    programs for the identification of and service to gifted and 
    talented students, such as mentoring and apprenticeship programs.
    ``(b) Service Priority.--In approving applications for assistance 
under section 10204(a)(2), the Secretary shall assure that in each 
fiscal year at least one-half of the applications approved under such 
section address the priority described in subsection (a)(1).

``SEC. 10206. GENERAL PROVISIONS.

    ``(a) Participation of Private School Children and Teachers.--In 
making grants and entering into contracts under this part, the 
Secretary shall ensure, where appropriate, that provision is made for 
the equitable participation of students and teachers in private 
nonprofit elementary and secondary schools, including the participation 
of teachers and other personnel in professional development programs 
serving such children.
    ``(b) Review, Dissemination, and Evaluation.--The Secretary shall--
        ``(1) use a peer review process in reviewing applications under 
    this part;
        ``(2) ensure that information on the activities and results of 
    programs and projects funded under this part is disseminated to 
    appropriate State and local agencies and other appropriate 
    organizations, including nonprofit private organizations; and
        ``(3) evaluate the effectiveness of programs under this part in 
    accordance with section 14701, both in terms of the impact on 
    students traditionally served in separate gifted and talented 
    programs and on other students, and submit the results of such 
    evaluation to Congress not later than January 1, 1998.
    ``(c) Program Operations.--The Secretary shall ensure that the 
programs under this part are administered within the Department by a 
person who has recognized professional qualifications and experience in 
the field of the education of gifted and talented students and who 
shall--
        ``(1) administer the programs authorized by this part;
        ``(2) coordinate all programs for gifted and talented students 
    administered by the Department;
        ``(3) serve as a focal point of national leadership and 
    information on the educational needs of gifted and talented 
    students and the availability of educational services and programs 
    designed to meet such needs; and
        ``(4) assist the Assistant Secretary of the Office of 
    Educational Research and Improvement in identifying research 
    priorities which reflect the needs of gifted and talented students.

``SEC. 10207. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $10,000,000 for fiscal 
year 1995 and such sums as may be necessary for each of the four 
succeeding fiscal years to carry out the provisions of this part.

                    ``PART C--PUBLIC CHARTER SCHOOLS

``SEC. 10301. FINDINGS AND PURPOSE.

    ``(a) Findings.--The Congress finds that--
        ``(1) enhancement of parent and student choices among public 
    schools can assist in promoting comprehensive educational reform 
    and give more students the opportunity to learn to challenging 
    State content standards and challenging State student performance 
    standards, if sufficiently diverse and high-quality choices, and 
    genuine opportunities to take advantage of such choices, are 
    available to all students;
        ``(2) useful examples of such choices can come from States and 
    communities that experiment with methods of offering teachers and 
    other educators, parents, and other members of the public the 
    opportunity to design and implement new public schools and to 
    transform existing public schools;
        ``(3) charter schools are a mechanism for testing a variety of 
    educational approaches and should, therefore, be exempted from 
    restrictive rules and regulations if the leadership of such schools 
    commits to attaining specific and ambitious educational results for 
    educationally disadvantaged students consistent with challenging 
    State content standards and challenging State student performance 
    standards for all students;
        ``(4) charter schools, as such schools have been implemented in 
    a few States, can embody the necessary mixture of enhanced choice, 
    exemption from restrictive regulations, and a focus on learning 
    gains;
        ``(5) charter schools, including charter schools that are 
    schools-within-schools, can help reduce school size, which 
    reduction can have a significant effect on student achievement;
        ``(6) the Federal Government should test, evaluate, and 
    disseminate information on a variety of charter school models in 
    order to help demonstrate the benefits of this promising 
    educational reform; and
        ``(7) there is a strong documented need for cash-flow 
    assistance to charter schools that are starting up, because State 
    and local operating revenue streams are not immediately available.
    ``(b) Purpose.--It is the purpose of this part to increase national 
understanding of the charter schools model by--
        ``(1) providing financial assistance for the design and initial 
    implementation of charter schools; and
        ``(2) evaluating the effects of such schools, including the 
    effects on students, student achievement, staff, and parents.

``SEC. 10302. PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary may award grants to State 
educational agencies having applications approved pursuant to section 
10303 to enable such agencies to conduct a charter school grant program 
in accordance with this part.
    ``(b) Special Rule.--If a State educational agency elects not to 
participate in the program authorized by this part or does not have an 
application approved under section 10303, the Secretary may award a 
grant to an eligible applicant that serves such State and has an 
application approved pursuant to section 10303(c).
    ``(c) Program Periods.--
        ``(1) Grants to states.--Grants awarded to State educational 
    agencies under this part shall be awarded for a period of not more 
    than 3 years.
        ``(2) Grants to eligible applicants.--Grants awarded by the 
    Secretary to eligible applicants or subgrants awarded by State 
    educational agencies to eligible applicants under this part shall 
    be awarded for a period of not more than 3 years, of which the 
    eligible applicant may use--
            ``(A) not more than 18 months for planning and program 
        design; and
            ``(B) not more than 2 years for the initial implementation 
        of a charter school.
    ``(d) Limitation.--The Secretary shall not award more than one 
grant and State educational agencies shall not award more than one 
subgrant under this part to support a particular charter school.

``SEC. 10303. APPLICATIONS.

    ``(a) Applications From State Agencies.--Each State educational 
agency desiring a grant from the Secretary under this part shall submit 
to the Secretary an application at such time, in such manner, and 
containing or accompanied by such information as the Secretary may 
require.
    ``(b) Contents of a State Educational Agency Application.--Each 
application submitted pursuant to subsection (a) shall--
        ``(1) describe the objectives of the State educational agency's 
    charter school grant program and a description of how such 
    objectives will be fulfilled, including steps taken by the State 
    educational agency to inform teachers, parents, and communities of 
    the State educational agency's charter school grant program;
        ``(2) contain assurances that the State educational agency will 
    require each eligible applicant desiring to receive a subgrant to 
    submit an application to the State educational agency containing--
            ``(A) a description of the educational program to be 
        implemented by the proposed charter school, including--
                ``(i) how the program will enable all students to meet 
            challenging State student performance standards;
                ``(ii) the grade levels or ages of children to be 
            served; and
                ``(iii) the curriculum and instructional practices to 
            be used;
            ``(B) a description of how the charter school will be 
        managed;
            ``(C) a description of--
                ``(i) the objectives of the charter school; and
                ``(ii) the methods by which the charter school will 
            determine its progress toward achieving those objectives;
            ``(D) a description of the administrative relationship 
        between the charter school and the authorized public chartering 
        agency;
            ``(E) a description of how parents and other members of the 
        community will be involved in the design and implementation of 
        the charter school;
            ``(F) a description of how the authorized public chartering 
        agency will provide for continued operation of the school once 
        the Federal grant has expired, if such agency determines that 
        the school has met the objectives described in subparagraph 
        (C)(i);
            ``(G) a request and justification for waivers of any 
        Federal statutory or regulatory provisions that the applicant 
        believes are necessary for the successful operation of the 
        charter school, and a description of any State or local rules, 
        generally applicable to public schools, that will be waived 
        for, or otherwise not apply to, the school;
            ``(H) a description of how the subgrant funds or grant 
        funds, as appropriate, will be used, including a description of 
        how such funds will be used in conjunction with other Federal 
        programs administered by the Secretary;
            ``(I) a description of how students in the community will 
        be--
                ``(i) informed about the charter school; and
                ``(ii) given an equal opportunity to attend the charter 
            school;
            ``(J) an assurance that the eligible applicant will 
        annually provide the Secretary and the State educational agency 
        such information as may be required to determine if the charter 
        school is making satisfactory progress toward achieving the 
        objectives described in subparagraph (C)(i);
            ``(K) an assurance that the applicant will cooperate with 
        the Secretary and the State educational agency in evaluating 
        the program assisted under this part; and
            ``(L) such other information and assurances as the 
        Secretary and the State educational agency may require.
    ``(c) Contents of Eligible Applicant Application.--Each eligible 
applicant desiring a grant pursuant to section 10302(e)(1) or 10302(b) 
shall submit an application to the State educational agency or 
Secretary, respectively, at such time, in such manner, and accompanied 
by such information as the State educational agency or Secretary, 
respectively, may reasonably require.
    ``(d) Contents of Application.--Each application submitted pursuant 
to subsection (c) shall contain--
        ``(1) the information and assurances described in subparagraphs 
    (A) through (L) of subsection (b)(3), except that for purposes of 
    this subsection subparagraphs (I), (J), and (K) of such subsection 
    shall be applied by striking `and the State educational agency' 
    each place such term appears; and
        ``(2) assurances that the State educational agency--
            ``(A) will grant, or will obtain, waivers of State 
        statutory or regulatory requirements; and
            ``(B) will assist each subgrantee in the State in receiving 
        a waiver under section 10304(e).

``SEC. 10304. ADMINISTRATION.

    ``(a) Selection Criteria for State Educational Agencies.--The 
Secretary shall award grants to State educational agencies under this 
part on the basis of the quality of the applications submitted under 
section 10303(b), after taking into consideration such factors as--
        ``(1) the contribution that the charter schools grant program 
    will make to assisting educationally disadvantaged and other 
    students to achieving State content standards and State student 
    performance standards and, in general, a State's education 
    improvement plan;
        ``(2) the degree of flexibility afforded by the State 
    educational agency to charter schools under the State's charter 
    schools law;
        ``(3) the ambitiousness of the objectives for the State charter 
    school grant program;
        ``(4) the quality of the strategy for assessing achievement of 
    those objectives; and
        ``(5) the likelihood that the charter school grant program will 
    meet those objectives and improve educational results for students.
    ``(b) Selection Criteria for Eligible Applicants.--The Secretary 
shall award grants to eligible applicants under this part on the basis 
of the quality of the applications submitted under section 10303(c), 
after taking into consideration such factors as--
        ``(1) the quality of the proposed curriculum and instructional 
    practices;
        ``(2) the degree of flexibility afforded by the State 
    educational agency and, if applicable, the local educational agency 
    to the charter school;
        ``(3) the extent of community support for the application;
        ``(4) the ambitiousness of the objectives for the charter 
    school;
        ``(5) the quality of the strategy for assessing achievement of 
    those objectives; and
        ``(6) the likelihood that the charter school will meet those 
    objectives and improve educational results for students.
    ``(c) Peer Review.--The Secretary, and each State educational 
agency receiving a grant under this part, shall use a peer review 
process to review applications for assistance under this part.
    ``(d) Diversity of Projects.--The Secretary and each State 
educational agency receiving a grant under this part, shall award 
subgrants under this part in a manner that, to the extent possible, 
ensures that such grants and subgrants--
        ``(1) are distributed throughout different areas of the Nation 
    and each State, including urban and rural areas; and
        ``(2) will assist charter schools representing a variety of 
    educational approaches, such as approaches designed to reduce 
    school size.
    ``(e) Waivers.--The Secretary may waive any statutory or regulatory 
requirement over which the Secretary exercises administrative authority 
except any such requirement relating to the elements of a charter 
school described in section 10306(1), if--
        ``(1) the waiver is requested in an approved application under 
    this part; and
        ``(2) the Secretary determines that granting such a waiver will 
    promote the purpose of this part.
    ``(f) Use of Funds.--
        ``(1) State educational agencies.--Each State educational 
    agency receiving a grant under this part shall use such grant funds 
    to award subgrants to one or more eligible applicants in the State 
    to enable such applicant to plan and implement a charter school in 
    accordance with this part.
        ``(2) Eligible applicants.--Each eligible applicant receiving 
    funds from the Secretary or a State educational agency shall use 
    such funds to plan and implement a charter school in accordance 
    with this part.
        ``(3) Allowable activities.--An eligible applicant receiving a 
    grant or subgrant under this part may use the grant or subgrant 
    funds only for--
            ``(A) post-award planning and design of the educational 
        program, which may include--
                ``(i) refinement of the desired educational results and 
            of the methods for measuring progress toward achieving 
            those results; and
                ``(ii) professional development of teachers and other 
            staff who will work in the charter school; and
            ``(B) initial implementation of the charter school, which 
        may include--
                ``(i) informing the community about the school;
                ``(ii) acquiring necessary equipment and educational 
            materials and supplies;
                ``(iii) acquiring or developing curriculum materials; 
            and
                ``(iv) other initial operational costs that cannot be 
            met from State or local sources.
        ``(4) Administrative expenses.--Each State educational agency 
    receiving a grant pursuant to this part may reserve not more than 5 
    percent of such grant funds for administrative expenses associated 
    with the charter school grant program assisted under this part.
        ``(5) Revolving loan funds.--Each State educational agency 
    receiving a grant pursuant to this part may reserve not more than 
    20 percent of the grant amount for the establishment of a revolving 
    loan fund. Such fund may be used to make loans to eligible 
    applicants that have received a subgrant under this part, under 
    such terms as may be determined by the State educational agency, 
    for the initial operation of the charter school grant program of 
    such recipient until such time as the recipient begins receiving 
    ongoing operational support from State or local financing sources.

``SEC. 10305. NATIONAL ACTIVITIES.

    ``The Secretary may reserve not more than ten percent of the funds 
available to carry out this part for any fiscal year for--
        ``(1) peer review of applications under section 10304(c);
        ``(2) an evaluation of the impact of charter schools on student 
    achievement, including those assisted under this part; and
        ``(3) other activities designed to enhance the success of the 
    activities assisted under this part, such as--
            ``(A) development and dissemination of model State charter 
        school laws and model contracts or other means of authorizing 
        and monitoring the performance of charter schools; and
            ``(B) collection and dissemination of information on 
        successful charter schools.

``SEC. 10306. DEFINITIONS.

    ``As used in this part:
        ``(1) The term `charter school' means a public school that--
            ``(A) in accordance with an enabling State statute, is 
        exempted from significant State or local rules that inhibit the 
        flexible operation and management of public schools, but not 
        from any rules relating to the other requirements of this 
        paragraph;
            ``(B) is created by a developer as a public school, or is 
        adapted by a developer from an existing public school, and is 
        operated under public supervision and direction;
            ``(C) operates in pursuit of a specific set of educational 
        objectives determined by the school's developer and agreed to 
        by the authorized public chartering agency;
            ``(D) provides a program of elementary or secondary 
        education, or both;
            ``(E) is nonsectarian in its programs, admissions policies, 
        employment practices, and all other operations, and is not 
        affiliated with a sectarian school or religious institution;
            ``(F) does not charge tuition;
            ``(G) complies with the Age Discrimination Act of 1975, 
        title VI of the Civil Rights Act of 1964, title IX of the 
        Education Amendments of 1972, section 504 of the Rehabilitation 
        Act of 1973, and part B of the Individuals with Disabilities 
        Education Act;
            ``(H) admits students on the basis of a lottery, if more 
        students apply for admission than can be accommodated;
            ``(I) agrees to comply with the same Federal and State 
        audit requirements as do other elementary and secondary schools 
        in the State, unless such requirements are specifically waived 
        for the purpose of this program;
            ``(J) meets all applicable Federal, State, and local health 
        and safety requirements; and
            ``(K) operates in accordance with State law.
        ``(2) The term `developer' means an individual or group of 
    individuals (including a public or private nonprofit organization), 
    which may include teachers, administrators and other school staff, 
    parents, or other members of the local community in which a charter 
    school project will be carried out.
        ``(3) The term `eligible applicant' means an authorized public 
    chartering agency participating in a partnership with a developer 
    to establish a charter school in accordance with this part.
        ``(4) The term `authorized public chartering agency' means a 
    State educational agency, local educational agency, or other public 
    entity that has the authority pursuant to State law and approved by 
    the Secretary to authorize or approve a charter school.

``SEC. 10307. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this part, there are authorized 
to be appropriated $15,000,000 for fiscal year 1995 and such sums as 
may be necessary for each of the four succeeding fiscal years.

                      ``PART D--ARTS IN EDUCATION

                      ``Subpart 1--Arts Education

``SEC. 10401. SUPPORT FOR ARTS EDUCATION.

    ``(a) Findings.--The Congress finds that--
        ``(1) the arts are forms of understanding and ways of knowing 
    that are fundamentally important to education;
        ``(2) the arts are important to excellent education and to 
    effective school reform;
        ``(3) the most significant contribution of the arts to 
    education reform is the transformation of teaching and learning;
        ``(4) such transformation is best realized in the context of 
    comprehensive, systemic education reform;
        ``(5) demonstrated competency in the arts for American students 
    is among the National Education Goals;
        ``(6) participation in performing arts activities has proven to 
    be an effective strategy for promoting the inclusion of persons 
    with disabilities in mainstream settings;
        ``(7) opportunities in the arts have enabled persons of all 
    ages with disabilities to participate more fully in school and 
    community activities;
        ``(8) the arts can motivate at-risk students to stay in school 
    and become active participants in the educational process; and
        ``(9) arts education should be an integral part of the 
    elementary and secondary school curriculum.
    ``(b) Purposes.--The purposes of this subpart are to--
        ``(1) support systemic education reform by strengthening arts 
    education as an integral part of the elementary and secondary 
    school curriculum;
        ``(2) help ensure that all students have the opportunity to 
    learn to challenging State content standards and challenging State 
    student performance standards in the arts; and
        ``(3) support the national effort to enable all students to 
    demonstrate competence in the arts in accordance with the National 
    Education Goals.
    ``(c) Eligible Recipients.--In order to carry out the purposes of 
this subpart, the Secretary is authorized to award grants to, or enter 
into contracts or cooperative agreements with--
        ``(1) State educational agencies;
        ``(2) local educational agencies;
        ``(3) institutions of higher education;
        ``(4) museums and other cultural institutions; and
        ``(5) other public and private agencies, institutions, and 
    organizations.
    ``(d) Authorized Activities.--Funds under this subpart may be used 
for--
        ``(1) research on arts education;
        ``(2) the development of, and dissemination of information 
    about, model arts education programs;
        ``(3) the development of model arts education assessments based 
    on high standards;
        ``(4) the development and implementation of curriculum 
    frameworks for arts education;
        ``(5) the development of model preservice and inservice 
    professional development programs for arts educators and other 
    instructional staff;
        ``(6) supporting collaborative activities with other Federal 
    agencies or institutions involved in arts education, such as the 
    National Endowment for the Arts, the Institute of Museum Services, 
    the John F. Kennedy Center for the Performing Arts, Very Special 
    Arts, and the National Gallery of Art;
        ``(7) supporting model projects and programs in the performing 
    arts for children and youth through arrangements made with the John 
    F. Kennedy Center for the Performing Arts;
        ``(8) supporting model projects and programs by Very Special 
    Arts which assure the participation in mainstream settings in arts 
    and education programs of individuals with disabilities;
        ``(9) supporting model projects and programs to integrate arts 
    education into the regular elementary and secondary school 
    curriculum; and
        ``(10) other activities that further the purposes of this 
    subpart.
    ``(e) Coordination.--
        ``(1) In general.--A recipient of funds under this subpart 
    shall, to the extent possible, coordinate projects assisted under 
    this subpart with appropriate activities of public and private 
    cultural agencies, institutions, and organizations, including 
    museums, arts education associations, libraries, and theaters.
        ``(2) Special rule.--In carrying out this subpart, the 
    Secretary shall coordinate with the National Endowment for the 
    Arts, the Institute of Museum Services, the John F. Kennedy Center 
    for the Performing Arts, Very Special Arts, and the National 
    Gallery of Art.
    ``(f) Authorization.--
        ``(1) In general.--For the purpose of carrying out this 
    subpart, there are authorized to be appropriated $11,000,000 for 
    fiscal year 1995 and such sums as may be necessary for each of the 
    four succeeding fiscal years.
        ``(2) Special rule.--If the amount appropriated under paragraph 
    (1) for any fiscal year is $9,000,000 or less, then such amount 
    shall only be available to carry out the activities described in 
    paragraphs (7) and (8) of subsection (d).

   ``Subpart 2--Cultural Partnerships for At-Risk Children and Youth

``SEC. 10411. FINDINGS AND PURPOSE.

    ``(a) Findings.--The Congress finds:
        ``(1) With local school budget cuts there are inadequate arts 
    and cultural programs available for children and youth in schools, 
    especially at the elementary school level.
        ``(2) The arts promote progress in academic subjects as shown 
    by research conducted by the National Endowment for the Arts.
        ``(3) Children and youth who receive instruction in the arts 
    and humanities, or who are involved in cultural activities, remain 
    in school longer and are more successful than children who do not 
    receive such instruction.
        ``(4) Learning in the arts and humanities promotes progress in 
    other academic subjects, and generates positive self-esteem and a 
    greater sense of accomplishment in young people.
        ``(5) School-university and school-cultural institution 
    partnerships that upgrade teacher training in the arts and 
    humanities have significantly contributed to improved instruction 
    and achievement levels of school-aged children.
        ``(6) Museum outreach, cultural activities and informal 
    education for at-risk children and youth have contributed 
    significantly to the educational achievement and enhanced interest 
    in learning of at-risk children and youth.
        ``(7) The Goals 2000: Educate America Act, other legislation 
    and local, State and national resources support the integration of 
    the arts and humanities into the regular curriculum and school day 
    for all children.
        ``(8) While all children benefit from instruction in the arts 
    and the humanities, at-risk children and youth have a special, 
    additional need for arts and cultural programs both in school and 
    after school.
    ``(b) Purpose.--The purpose of this subpart is to make 
demonstration grants to eligible entities to improve the educational 
performance and future potential of at-risk children and youth by 
providing comprehensive and coordinated educational and cultural 
services.

``SEC. 10412. PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award grants to 
eligible entities to pay the Federal share of the costs of the 
activities described in section 10413.
    ``(b) Special Requirements.--
        ``(1) In general.--The Secretary shall award grants under this 
    subpart only to programs designed to--
            ``(A) promote and enhance educational and cultural 
        activities;
            ``(B) provide multi-year services to at-risk children and 
        youth and to integrate community cultural resources into in-
        school and after-school educational programs;
            ``(C) provide integration of community cultural resources 
        into the regular curriculum and school day;
            ``(D) focus school and cultural resources in the community 
        on coordinated cultural services to address the needs of at-
        risk children and youth;
            ``(E) provide effective cultural programs to facilitate the 
        transition from preschool programs to elementary school 
        programs, including programs under the Head Start Act and part 
        H of the Individuals with Disabilities Education Act;
            ``(F) facilitate school-to-work transition from secondary 
        schools and alternative schools to job training, higher 
        education and employment through educational programs and 
        activities that utilize school resources;
            ``(G) increase parental and community involvement in the 
        educational, social, and cultural development of at-risk 
        children and youth; or
            ``(H)(i) develop programs and strategies that provide high-
        quality coordinated educational and cultural services; and
            ``(ii) provide a model to replicate such services in other 
        schools and communities.
        ``(2) Partnership.--An interagency partnership comprised of the 
    Secretary of Education, the Chairman of the National Endowment for 
    the Humanities, the Chairman of the National Endowment for the 
    Arts, and the Director of the Institute of Museum Services, or 
    their designees, shall establish criteria and procedures for 
    awarding grants, including the establishment of panels to review 
    the applications, and shall administer the grants program 
    authorized by this section. The Secretary shall publish such 
    criteria and procedures in the Federal Register.
        ``(3) Coordination.--Grants may only be awarded under this 
    subpart to eligible entities that agree to coordinate activities 
    carried out under other Federal, State, and local grants, received 
    by the members of the partnership for purposes and target 
    populations described in this subpart, into an integrated service 
    delivery system located at a school, cultural, or other community-
    based site accessible to and utilized by at-risk youth.
        ``(4) Eligible entities.--For purposes of this subpart, the 
    term `eligible entity' means a partnership between--
            ``(A) a local educational agency or an individual school 
        that is eligible to participate in a schoolwide program under 
        section 1114; and
            ``(B) at least one institution of higher education, museum, 
        local arts agency, or cultural entity that is accessible to 
        individuals within the school district of such local 
        educational agency or school, and that has a history of 
        providing quality services to the community, which may 
        include--
                ``(i) nonprofit institutions of higher education, 
            museums, libraries, performing, presenting and exhibiting 
            arts organizations, literary arts organizations, State and 
            local arts organizations, cultural institutions, and 
            zoological and botanical organizations; or
                ``(ii) private for-profit entities with a history of 
            training children and youth in the arts.
        ``(5) Geographic distribution.--In awarding grants under this 
    subpart the Secretary, to the extent feasible, shall ensure an 
    equitable geographic distribution of such grants.
        ``(6) Duration.--Grants made under this subpart may be 
    renewable for a maximum of five years if the Secretary determines 
    that the eligible recipient has made satisfactory progress toward 
    the achievement of the program objectives described in the 
    application.
        ``(7) Models.--The Secretary, in consultation with the Chairman 
    of the National Endowment for the Humanities, the Chairman of the 
    National Endowment for the Arts and the Director of the Institute 
    of Museum Services, or their designees, shall submit successful 
    models under this title to the National Diffusion Network for 
    review.
    ``(c) Target Population.--To be eligible for a grant under this 
subpart, an eligible entity shall serve--
        ``(1) students enrolled in schools participating in a 
    schoolwide program under section 1114 and the families of such 
    students to the extent practicable;
        ``(2) out-of-school children and youth at risk of disadvantages 
    resulting from teenage parenting, substance abuse, recent 
    migration, disability, limited-English proficiency, illiteracy, 
    being the child of a teenage parent, living in a single parent 
    household, or dropping out of school; or
        ``(3) any combination of in-school and out-of-school at-risk 
    children and youth.

``SEC. 10413. AUTHORIZED ACTIVITIES.

    ``(a) In General.--Grants awarded under this subpart may be used--
        ``(1) to plan, develop, acquire, expand, and improve school-
    based or community-based coordinated educational and cultural 
    programs to strengthen the educational performance and future 
    potential of in-school or out-of-school at-risk children and youth 
    through grants, cooperative agreements, contracts for services, or 
    administrative coordination;
        ``(2) to provide at-risk students with integrated cultural 
    activities designed to develop a love of learning that fosters the 
    smooth transition of preschool children to elementary school;
        ``(3) to design collaborative cultural activities for students 
    in secondary or alternative schools that ensure the smooth 
    transition to job training, higher education, or full employment;
        ``(4) to provide child care for children of at-risk students 
    who would not otherwise be able to participate in the program;
        ``(5) to provide transportation necessary for participation in 
    the program;
        ``(6) to work with existing school personnel to develop 
    curriculum materials and programs in the arts;
        ``(7) to work with existing school personnel on staff 
    development activities that encourage the integration of the arts 
    into the curriculum;
        ``(8) for stipends that allow local artists to work with at-
    risk children and youth in schools;
        ``(9) for training individuals who are not trained to work with 
    children and youth;
        ``(10) for cultural programs that encourage the active 
    participation of parents in the education of their children;
        ``(11) for programs that use the arts and culture to reform 
    current school practices, including lengthening the school day or 
    academic year;
        ``(12) for equipment or supplies that the Secretary determines 
    appropriate; and
        ``(13) for evaluation, administration, and supervision.
    ``(b) Planning Grants.--
        ``(1) Application.--An eligible entity may submit an 
    application to the Secretary for a planning grant for an amount not 
    to exceed $50,000. Such grants shall be for periods of not more 
    than one year.
        ``(2) Limit on planning grants.--Not more than 10 percent of 
    the amounts appropriated in each fiscal year under this subpart 
    shall be used for grants under this subsection, and an eligible 
    entity may receive not more than one such planning grant.
    ``(c) General Provisions.--
        ``(1) In general.--Each eligible entity desiring a grant under 
    this subpart shall submit an application to the Secretary at such 
    time, in such manner, and accompanied by such information as the 
    Secretary may reasonably require.
        ``(2) Contents.--Each application submitted pursuant to 
    paragraph (1) shall--
            ``(A) describe the cultural entity or entities that will 
        participate in the partnership;
            ``(B) describe the target population to be served;
            ``(C) describe the services to be provided;
            ``(D) describe a plan for evaluating the success of the 
        program;
            ``(E) in the case of each local educational agency or 
        school participating in the eligible recipient partnership, 
        describe how the activities assisted under this subpart will be 
        perpetuated beyond the duration of the grant;
            ``(F) describe the manner in which the eligible entity will 
        improve the educational achievement or future potential of at-
        risk youth through more effective coordination of cultural 
        services in the community;
            ``(G) describe the overall and operational goals of the 
        program;
            ``(H) describe the nature and location of all planned sites 
        where services will be delivered and a description of services 
        which will be provided at each site; and
            ``(I) describe training that will be provided to 
        individuals who are not trained to work with children and 
        youth, and how teachers will be involved.
``SEC. 10414. PAYMENTS; AMOUNTS OF AWARD; COST SHARE; LIMITATIONS.
    ``(a) Payments.--
        ``(1) In general.--The Secretary shall pay to each eligible 
    recipient having an application approved under section 10413(c) the 
    Federal share of the cost of the activities described in the 
    application.
        ``(2) Special rule.--(A) Grants awarded under this subpart 
    shall be of sufficient size, scope, and quality to be effective.
        ``(B) The Secretary shall award grants under this subpart so as 
    to ensure nonduplication of services provided by grant recipients 
    and services provided by--
            ``(i) the National Endowment for the Humanities;
            ``(ii) the National Endowment for the Arts; and
            ``(iii) the Institute of Museum Services.
    ``(b) Cost Share.--
        ``(1) Federal share.--The Federal share of a grant under this 
    subpart shall be 80 percent of the cost of carrying out the 
    activities described in the application.
        ``(2) Non-federal share.--The non-Federal share of a grant 
    under this subpart shall be 20 percent of the cost of carrying out 
    the activities described in the application and may be in cash or 
    in kind, fairly evaluated, including the provision of equipment, 
    services, or facilities.
    ``(c) Limitations.--
        ``(1) Noninstructional services.--Not more than 25 percent of 
    the grant funds provided in any fiscal year under this subpart may 
    be used for noninstructional activities such as the activities 
    described in paragraphs (4), (5), and (12) of section 10413(a).
        ``(2) Supplement and not supplant.--Grant funds awarded under 
    this part shall be used to supplement not supplant the amount of 
    funds made available from non-Federal sources, for the activities 
    assisted under this subpart, in amounts that exceed the amounts 
    expended for such activities in the year preceding the year for 
    which the grant is awarded.
        ``(3) Administrative costs.--(A) The Secretary may reserve not 
    more than five percent of the grant funds received under this 
    subpart in each fiscal year for the costs of administration.
        ``(B) Each eligible recipient may reserve not more than 5 
    percent of any grant funds received under this subpart in each 
    fiscal year for the costs of administration.

``SEC. 10415. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subpart, $45,000,000 for fiscal year 1995, and such sums as may be 
necessary for each of the four succeeding fiscal years.

            ``PART E--INEXPENSIVE BOOK DISTRIBUTION PROGRAM

``SEC. 10501. INEXPENSIVE BOOK DISTRIBUTION PROGRAM FOR READING 
MOTIVATION.
    ``(a) Authorization.--The Secretary is authorized to enter into a 
contract with Reading is Fundamental (RIF) (hereafter in this section 
referred to as `the contractor') to support and promote programs, which 
include the distribution of inexpensive books to students, that 
motivate children to read.
    ``(b) Requirements of Contract.--Any contract entered into under 
subsection (a) shall--
        ``(1) provide that the contractor will enter into subcontracts 
    with local private nonprofit groups or organizations, or with 
    public agencies, under which each subcontractor will agree to 
    establish, operate, and provide the non-Federal share of the cost 
    of reading motivation programs that include the distribution of 
    books, by gift, to the extent feasible, or loan, to children from 
    birth through secondary school age, including those in family 
    literacy programs;
        ``(2) provide that funds made available to subcontractors will 
    be used only to pay the Federal share of the cost of such programs;
        ``(3) provide that in selecting subcontractors for initial 
    funding, the contractor will give priority to programs that will 
    serve a substantial number or percentage of children with special 
    needs, such as--
            ``(A) low-income children, particularly in high-poverty 
        areas;
            ``(B) children at risk of school failure;
            ``(C) children with disabilities;
            ``(D) foster children;
            ``(E) homeless children;
            ``(F) migrant children;
            ``(G) children without access to libraries;
            ``(H) institutionalized or incarcerated children; and
            ``(I) children whose parents are institutionalized or 
        incarcerated;
        ``(4) provide that the contractor will provide such technical 
    assistance to subcontractors as may be necessary to carry out the 
    purpose of this section;
        ``(5) provide that the contractor will annually report to the 
    Secretary the number of, and describe, programs funded under 
    paragraph (3); and
        ``(6) include such other terms and conditions as the Secretary 
    determines to be appropriate to ensure the effectiveness of such 
    programs.
    ``(c) Restriction on Payments.--The Secretary shall make no payment 
of the Federal share of the cost of acquiring and distributing books 
under any contract under this section unless the Secretary determines 
that the contractor or subcontractor, as the case may be, has made 
arrangements with book publishers or distributors to obtain books at 
discounts at least as favorable as discounts that are customarily given 
by such publisher or distributor for book purchases made under similar 
circumstances in the absence of Federal assistance.
    ``(d) Definition of `Federal Share'.--For the purpose of this 
section, the term `Federal share' means, with respect to the cost to a 
subcontractor of purchasing books to be paid under this section, 75 
percent of such costs to the subcontractor, except that the Federal 
share for programs serving children of migrant or seasonal farmworkers 
shall be 100 percent of such costs to the subcontractor.
    ``(e) Authorization of Appropriations.--For the purpose of carrying 
out this section, there are authorized to be appropriated $10,300,000 
for fiscal year 1995 and such sums as may be necessary for each of the 
four succeeding fiscal years.

                       ``PART F--CIVIC EDUCATION

``SEC. 10601. INSTRUCTION ON THE HISTORY AND PRINCIPLES OF DEMOCRACY IN 
THE UNITED STATES.
    ``(a) General Authority.--
        ``(1) Program established.--(A) The Secretary is authorized to 
    carry out a program to enhance the attainment of the third and 
    sixth National Education Goals by educating students about the 
    history and principles of the Constitution of the United States, 
    including the Bill of Rights, and to foster civic competence and 
    responsibility.
        ``(B) Such program shall be known as `We the People . . . The 
    Citizen and the Constitution'.
        ``(2) Educational activities.--The program required by 
    paragraph (1) shall--
            ``(A) continue and expand the educational activities of the 
        `We the People . . . The Citizen and the Constitution' program 
        administered by the Center for Civic Education; and
            ``(B) enhance student attainment of challenging content 
        standards in civics and government.
        ``(3) Contract or grant authorized.--The Secretary is 
    authorized to award a grant or enter into a contract with the 
    Center for Civic Education to carry out the program described in 
    paragraph (1).
    ``(b) Program Content.--The education program authorized by this 
section shall provide--
        ``(1) a course of instruction on the basic principles of our 
    Nation's constitutional democracy and the history of the 
    Constitution and the Bill of Rights;
        ``(2) at the request of a participating school, school and 
    community simulated congressional hearings following the course of 
    study; and
        ``(3) an annual national competition of simulated congressional 
    hearings for secondary students who wish to participate in such 
    program.
    ``(c) Availability of Program.--The education program authorized by 
this section shall be made available to public and private elementary 
and secondary schools in the 435 congressional districts, the 
Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, 
and the District of Columbia.
    ``(d) Special Rule.--After the provisions of subsection (b) have 
been implemented, funds provided under this section may be used for--
        ``(1) advanced training of teachers about the United States 
    Constitution and the political system the United States created; or
        ``(2) a course of instruction at the middle school level on the 
    roles of State and local governments in the Federal system 
    established by the Constitution, which course shall provide for--
            ``(A) optional school and community simulated State 
        legislative hearings;
            ``(B) an annual competition of simulated legislative 
        hearings at the State legislative district, State, and national 
        levels for middle school students who wish to participate in 
        the program; and
            ``(C) participation by public and private middle schools in 
        the 50 States, the District of Columbia, the Commonwealth of 
        Puerto Rico, Guam, American Samoa, the Virgin Islands, and the 
        Commonwealth of the Northern Mariana Islands.

``SEC. 10602. INSTRUCTION IN CIVICS, GOVERNMENT, AND THE LAW.

    ``(a) Program Established.--The Secretary is authorized to carry 
out a program of awarding grants and contracts to assist State and 
local educational agencies and other public and private nonprofit 
agencies, organizations, and institutions to enhance--
        ``(1) attainment by students of challenging State content 
    standards and challenging State student performance standards in 
    civics, government, and the law; and
        ``(2) attainment by the Nation of the third and the sixth 
    National Education Goals.
    ``(b) Authorized Activities.--Assistance under this section may 
support new and ongoing programs in elementary and secondary schools 
that provide for--
        ``(1) the development and implementation of curricular programs 
    that enhance student understanding of--
            ``(A) the values and principles which underlie, and the 
        institutions and processes which comprise, our Nation's system 
        of government;
            ``(B) the role of law in our constitutional democracy, 
        including activities to promote--
                ``(i) legal literacy;
                ``(ii) a dedication by students to the use of 
            nonviolent means of conflict resolution such as 
            arbitration, mediation, negotiation, trials, and appellate 
            hearings; and
                ``(iii) respect for cultural diversity and acceptance 
            of cultural differences; and
            ``(C) the rights and responsibilities of citizenship;
        ``(2) professional development for teachers, including 
    preservice and inservice training;
        ``(3) outside-the-classroom learning experiences for students, 
    including community service activities;
        ``(4) the active participation of community leaders, from the 
    public and private sectors, in the schools; and
        ``(5) the provision of technical assistance to State and local 
    educational agencies and other institutions and organizations 
    working to further the progress of the Nation in attaining the 
    third and sixth National Education Goals regarding civics and 
    government.
    ``(c) Applications, Peer Review and Priority.--
        ``(1) Submission of applications.--A State or local educational 
    agency, other public or private nonprofit agency, organization, or 
    institution that desires to receive a grant or enter into a 
    contract under this section shall submit an application to the 
    Secretary at such time, in such manner, and containing or 
    accompanied by such information as the Secretary may reasonably 
    require.
        ``(2) Peer review.--(A) The Secretary shall convene a panel of 
    individuals for purpose of reviewing and rating applications 
    submitted under paragraph (1).
        ``(B) Such individuals shall have experience with education 
    programs in civics, government, and the law.
        ``(3) Priority.--In awarding grants or awarding contracts under 
    this section, the Secretary shall give priority consideration to 
    applications which propose the operation of statewide programs.
    ``(d) Duration of Grants and Exception.--
        ``(1) Duration.--Except as provided in paragraph (2), the 
    Secretary shall award grants and contracts under this section for 
    periods of two or three years.
        ``(2) Exception.--The Secretary may award a grant or a contract 
    under this section for a period of less than 2 years if the 
    Secretary determines that special circumstances exist which warrant 
    a 1-year grant or contract award.

``SEC. 10603. REPORT; AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Report.--The Secretary shall report, on a biennial basis to 
the Committee on Education and Labor of the House of Representatives 
and to the Committee on Labor and Human Resources of the Senate 
regarding the distribution and use of funds authorized under this part.
    ``(b) Authorization of Appropriations.--
        ``(1) General.--There are authorized to be appropriated to 
    carry out this part $15,000,000 for fiscal year 1995 and such sums 
    as may be necessary for each of the four succeeding fiscal years.
        ``(2) Allocation.--Except as provided in paragraph (3), from 
    the amount appropriated under subsection (a), the Secretary shall 
    allocate--
            ``(A) 40 percent of such amount to carry out section 10601; 
        and
            ``(B) 60 percent of such amount to carry out section 10602.
        ``(3) Special rule.--From funds appropriated under paragraph 
    (1), the Secretary shall make available for fiscal year 1995 and 
    each succeeding fiscal year thereafter for the programs under 
    sections 16101 and 16102 not less than the amount made available 
    for fiscal year 1994 to carry out such programs under sections 4609 
    and 1562, respectively, of this Act (as such sections were in 
    effect on the day preceding the date of enactment of the Improving 
    America's Schools Act of 1994).

             ``PART G--ALLEN J. ELLENDER FELLOWSHIP PROGRAM

``SEC. 10701. FINDINGS.

    ``The Congress finds as follows:
        ``(1) It is a worthwhile goal to ensure that all students in 
    America are prepared for responsible citizenship and that all 
    students should have the opportunity to be involved in activities 
    that promote and demonstrate good citizenship.
        ``(2) It is a worthwhile goal to ensure that America's 
    educators have access to programs for the continued improvement of 
    their professional skills.
        ``(3) Allen J. Ellender, a Senator from Louisiana and President 
    pro tempore of the United States Senate, had a distinguished career 
    in public service characterized by extraordinary energy and real 
    concern for young people. Senator Ellender provided valuable 
    support and encouragement to the Close Up Foundation, a 
    nonpartisan, nonprofit foundation promoting knowledge and 
    understanding of the Federal Government among young people and 
    educators. Therefore, it is a fitting and appropriate tribute to 
    Senator Ellender to provide fellowships in his name to students of 
    limited economic means, the teachers who work with such students, 
    and older Americans, so that such students, teachers, and older 
    Americans may participate in the programs supported by the Close Up 
    Foundation.

     ``Subpart 1--Program for Middle and Secondary School Students

``SEC. 10711. ESTABLISHMENT.

    ``(a) General Authority.--The Secretary is authorized to make 
grants in accordance with the provisions of this subpart to the Close 
Up Foundation of Washington, District of Columbia, a nonpartisan, 
nonprofit foundation, for the purpose of assisting the Close Up 
Foundation in carrying out its programs of increasing understanding of 
the Federal Government among middle and secondary school students.
    ``(b) Use of Funds.--Grants under this subpart shall be used only 
to provide financial assistance to economically disadvantaged students 
who participate in the program described in subsection (a). Financial 
assistance received pursuant to this subpart by such students shall be 
known as Allen J. Ellender fellowships.

``SEC. 10712. APPLICATIONS.

    ``(a) Application Required.--No grant under this subpart may be 
made except upon an application at such time, in such manner, and 
accompanied by such information as the Secretary may reasonably 
require.
    ``(b) Contents of Application.--Each such application shall contain 
provisions to assure--
        ``(1) that fellowship grants are made to economically 
    disadvantaged middle and secondary school students;
        ``(2) that every effort will be made to ensure the 
    participation of students from rural and small town areas, as well 
    as from urban areas, and that in awarding fellowships to 
    economically disadvantaged students, special consideration will be 
    given to the participation of students with special educational 
    needs, including student with disabilities, ethnic minority 
    students, and gifted and talented students; and
        ``(3) the proper disbursement of the funds received under this 
    subpart.

     ``Subpart 2--Program for Middle and Secondary School Teachers

``SEC. 10721. ESTABLISHMENT.

    ``(a) General Authority.--The Secretary is authorized to make 
grants in accordance with the provisions of this subpart to the Close 
Up Foundation of Washington, District of Columbia, a nonpartisan, 
nonprofit foundation, for the purpose of assisting the Close Up 
Foundation in carrying out its programs of teaching skills enhancement 
for middle and secondary school teachers.
    ``(b) Use of Funds.--Grants under this subpart shall be used only 
for financial assistance to teachers who participate in the program 
described in subsection (a). Financial assistance received pursuant to 
this subpart by such individuals shall be known as Allen J. Ellender 
fellowships.

``SEC. 10722. APPLICATIONS.

    ``(a) Application Required.--No grant under this subpart may be 
made except upon an application at such time, in such manner, and 
accompanied by such information as the Secretary may reasonably 
require.
    ``(b) Contents of Application.--Each such application shall contain 
provisions to assure--
        ``(1) that fellowship grants are made only to teachers who have 
    worked with at least one student from such teacher's school who 
    participates in the programs described in section 10711(a);
        ``(2) that not more than one teacher in each school 
    participating in the programs provided for in section 10711(a) may 
    receive a fellowship in any fiscal year; and
        ``(3) the proper disbursement of the funds received under this 
    subpart.

   ``Subpart 3--Programs for Recent Immigrants, Students of Migrant 
                      Parents and Older Americans

``SEC. 10731. ESTABLISHMENT.

    ``(a) General Authority.--
        ``(1) In general.--The Secretary is authorized to make grants 
    in accordance with the provisions of this subpart to the Close Up 
    Foundation of Washington, District of Columbia, a nonpartisan, 
    nonprofit foundation, for the purpose of assisting the Close Up 
    Foundation in carrying out its programs of increasing understanding 
    of the Federal Government among economically disadvantaged older 
    Americans, recent immigrants and students of migrant parents.
        ``(2) Definition.--For the purpose of this subpart, the term 
    `older American' means an individual who has attained 55 years of 
    age.
    ``(b) Use of Funds.--Grants under this subpart shall be used for 
financial assistance to economically disadvantaged older Americans, 
recent immigrants and students of migrant parents who participate in 
the program described in subsection (a). Financial assistance received 
pursuant to this subpart by such individuals shall be known as Allen J. 
Ellender fellowships.

``SEC. 10732. APPLICATIONS.

    ``(a) Application Required.--No grant under this subpart may be 
made except upon application at such time, in such manner, and 
accompanied by such information as the Secretary may reasonably 
require.
    ``(b) Contents of Application.--Except such application shall 
contain provisions to assure--
        ``(1) that fellowship grants are made to economically 
    disadvantaged older Americans, recent immigrants and students of 
    migrant parents;
        ``(2) that every effort will be made to ensure the 
    participation of older Americans, recent immigrants and students of 
    migrant parents from rural and small town areas, as well as from 
    urban areas, and that in awarding fellowships, special 
    consideration will be given to the participation of older 
    Americans, recent immigrants and students of migrant parents with 
    special needs, including individuals with disabilities, ethnic 
    minorities, and gifted and talented students;
        ``(3) that activities permitted by subsection (a) are fully 
    described; and
        ``(4) the proper disbursement of the funds received under this 
    subpart.

                    ``Subpart 4--General Provisions

``SEC. 10741. ADMINISTRATIVE PROVISIONS.

    ``(a) General Rule.--Payments under this part may be made in 
installments, in advance, or by way of reimbursement, with necessary 
adjustments on account of underpayment or overpayment.
    ``(b) Audit Rule.--The Comptroller General of the United States or 
any of the Comptroller General's duly authorized representatives shall 
have access for the purpose of audit and examination to any books, 
documents, papers, and records that are pertinent to any grant under 
this part.

``SEC. 10742. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out the provisions of subparts 1, 2, and 3 of this part $4,400,000 for 
fiscal year 1995 and such sums as may be necessary of each of the four 
succeeding fiscal years.
    ``(b) Special Rule.--Of the funds appropriated pursuant to 
subsection (a), not more than 30 percent may be used for teachers 
associated with students participating in the programs described in 
section 10711(a).

      ``PART H--DE LUGO TERRITORIAL EDUCATION IMPROVEMENT PROGRAM

``SEC. 10801. FINDINGS AND PURPOSES.

    ``(a) Findings.--The Congress finds that--
        ``(1) the attainment of a high quality education is important 
    to a society and to each individual;
        ``(2) it is the policy of the United States that all citizens 
    have a fair opportunity to receive a high quality education;
        ``(3) such opportunity should extend to United States citizens 
    and nationals residing in the outlying areas;
        ``(4) reports show that the outlying areas have repeatedly 
    placed last in national education tests which measure knowledge in 
    core subject areas;
        ``(5) all students must realize their potential if the United 
    States is to prosper; and
        ``(6) students in the outlying areas require additional 
    assistance if such students are to obtain the high standards 
    established for all students in the United States.
    ``(b) Purposes.--The purpose of this part is to authorize an 
education improvement program for the outlying areas which will assist 
in developing programs which will enhance student learning, increase 
the standard of education, and improve the performance levels of all 
students.

``SEC. 10802. GRANT AUTHORIZATION.

    ``The Secretary is authorized to make grants to the outlying areas 
to fund innovative education improvement programs which will increase 
student learning.

``SEC. 10803. CONSTRUCTION.

    ``No funds from a grant under section 10802 may be used for 
construction.

``SEC. 10804. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this subpart 
$3,000,000 for each of the fiscal years 1994 through 1999.

           ``PART I--21ST CENTURY COMMUNITY LEARNING CENTERS

``SEC. 10901. SHORT TITLE.

    ``This part may be cited as the `21st Century Community Learning 
Centers Act'.

``SEC. 10902. FINDINGS.

    ``The Congress finds that--
        ``(1) a local public school often serves as a center for the 
    delivery of education and human resources for all members of a 
    community;
        ``(2) public schools, primarily in rural and inner city 
    communities, should collaborate with other public and nonprofit 
    agencies and organizations, local businesses, educational entities 
    (such as vocational and adult education programs, school-to-work 
    programs, community colleges, and universities), recreational, 
    cultural, and other community and human service entities, for the 
    purpose of meeting the needs of, and expanding the opportunities 
    available to, the residents of the communities served by such 
    schools;
        ``(3) by using school facilities, equipment, and resources, 
    communities can promote a more efficient use of public education 
    facilities, especially in rural and inner city areas where limited 
    financial resources have enhanced the necessity for local public 
    schools to become social service centers;
        ``(4) the high technology, global economy of the 21st century 
    will require lifelong learning to keep America's workforce 
    competitive and successful, and local public schools should provide 
    centers for lifelong learning and educational opportunities for 
    individuals of all ages; and
        ``(5) 21st Century Community Learning Centers enable the entire 
    community to develop an education strategy that addresses the 
    educational needs of all members of local communities.

``SEC. 10903. PROGRAM AUTHORIZATION.

    ``(a) Grants by the Secretary.--The Secretary is authorized, in 
accordance with the provisions of this part, to award grants to rural 
and inner-city public elementary or secondary schools, or consortia of 
such schools, to enable such schools or consortia to plan, implement, 
or to expand projects that benefit the educational, health, social 
service, cultural, and recreational needs of a rural or inner-city 
community.
    ``(b) Equitable Distribution.--In awarding grants under this part, 
the Secretary shall assure an equitable distribution of assistance 
among the States, among urban and rural areas of the United States, and 
among urban and rural areas of a State.
    ``(c) Grant Period.--The Secretary shall award grants under this 
part for a period not to exceed 3 years.
    ``(d) Amount.--The Secretary shall not award a grant under this 
part in any fiscal year in an amount less than $35,000.

``SEC. 10904. APPLICATION REQUIRED.

    ``(a) Application.--To be eligible to receive a grant under this 
part, an elementary or secondary school or consortium shall submit an 
application to the Secretary at such time, in such manner, and 
accompanied by such information as the Secretary may reasonably 
prescribe. Each such application shall include--
        ``(1) a comprehensive local plan that enables the school or 
    consortium to serve as a center for the delivery of education and 
    human resources for members of a community;
        ``(2) an evaluation of the needs, available resources, and 
    goals and objectives for the proposed project in order to determine 
    which activities will be undertaken to address such needs; and
        ``(3) a description of the proposed project, including--
            ``(A) a description of the mechanism that will be used to 
        disseminate information in a manner that is understandable and 
        accessible to the community;
            ``(B) identification of Federal, State, and local programs 
        to be merged or coordinated so that public resources may be 
        maximized;
            ``(C) a description of the collaborative efforts to be 
        undertaken by community-based organizations, related public 
        agencies, businesses, or other appropriate organizations;
            ``(D) a description of how the school or consortium will 
        serve as a delivery center for existing and new services, 
        especially for interactive telecommunication used for education 
        and professional training; and
            ``(E) an assurance that the school or consortium will 
        establish a facility utilization policy that specifically 
        states--
                ``(i) the rules and regulations applicable to building 
            and equipment use; and
                ``(ii) supervision guidelines.
    ``(b) Priority.--The Secretary shall give priority to applications 
describing projects that offer a broad selection of services which 
address the needs of the community.

``SEC. 10905. USES OF FUNDS.

    ``Grants awarded under this part may be used to plan, implement, or 
expand community learning centers which include not less than four of 
the following activities:
        ``(1) Literacy education programs.
        ``(2) Senior citizen programs.
        ``(3) Children's day care services.
        ``(4) Integrated education, health, social service, 
    recreational, or cultural programs.
        ``(5) Summer and weekend school programs in conjunction with 
    recreation programs.
        ``(6) Nutrition and health programs.
        ``(7) Expanded library service hours to serve community needs.
        ``(8) Telecommunications and technology education programs for 
    individuals of all ages.
        ``(9) Parenting skills education programs.
        ``(10) Support and training for child day care providers.
        ``(11) Employment counseling, training, and placement.
        ``(12) Services for individuals who leave school before 
    graduating from secondary school, regardless of the age of such 
    individual.
        ``(13) Services for individuals with disabilities.

``SEC. 10906. DEFINITION.

    ``For the purpose of this part, the term `community learning 
center' means an entity within a public elementary or secondary school 
building that--
        ``(1) provides educational, recreational, health, and social 
    service programs for residents of all ages within a local 
    community; and
        ``(2) is operated by a local educational agency in conjunction 
    with local governmental agencies, businesses, vocational education 
    programs, institutions of higher education, community colleges, and 
    cultural, recreational, and other community and human service 
    entities.

``SEC. 10907. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $20,000,000 for fiscal 
year 1995, and such sums as may be necessary for each of the four 
succeeding fiscal years, to carry out this part.

             ``PART J--URBAN AND RURAL EDUCATION ASSISTANCE

``SEC. 10951. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Demonstration Grants.--
        ``(1) In general.--There are authorized to be appropriated 
    $125,000,000 for fiscal year 1995, and such sums as may be 
    necessary for each of the four succeeding fiscal years, to carry 
    out subparts 1 and 2 (other than section 10975).
        ``(2) Reservation for subpart 1.--The Secretary shall reserve 
    50 percent of the amount appropriated under paragraph (1) to carry 
    out subpart 1.
        ``(3) Reservation for subpart 2.--The Secretary shall reserve 
    50 percent of the amount appropriated under paragraph (1) to carry 
    out subpart 2 (other than section 10975).
    ``(b) Higher Education Grants.--There are authorized to be 
appropriated $25,000,000 for fiscal year 1995 and such sums as may be 
necessary for each of the four succeeding fiscal years to carry out 
section 10975.
    ``(c) Federal Funds To Supplement Not Supplant Non-Federal Funds.--
An eligible local educational agency may use funds received under this 
part only to supplement and, to the extent practicable, increase the 
level of funds that would, in the absence of such Federal funds, be 
made available from non-Federal sources for the education of students 
participating in activities assisted under this part, and in no such 
case may such funds be used to supplant funds from non-Federal sources.

``SEC. 10952. DEFINITIONS.

    ``Except as otherwise provided, for the purposes of this part:
        ``(1) Central city.--The term `central city' has the same 
    meaning used by the Bureau of the Census.
        ``(2) Metropolitan statistical area.--The term `metropolitan 
    statistical area' has the same meaning used by the Bureau of the 
    Census.
        ``(3) Poverty level.--The term `poverty level' means the 
    criteria of poverty used by the Bureau of the Census in compiling 
    the most recent decennial census.
        ``(4) Rural eligible local educational agency.--The term `rural 
    eligible local educational agency' means a local educational 
    agency--
            ``(A)(i) in which at least 15 percent of the children 
        enrolled in the schools served by such agency are eligible to 
        be counted under part A of title I; and
            ``(ii) which is not in a metropolitan statistical area; or
            ``(B) in which the total enrollment in the schools served 
        by such agency is less than 2,500 students and that does not 
        serve schools located in a metropolitan statistical area.
        ``(5) Urban eligible local educational agency.--The term `urban 
    eligible local educational agency' means a local educational agency 
    that--
            ``(A) serves the largest central city in a State;
            ``(B) enrolls more than 30,000 students and serves a 
        central city with a population of at least 200,000 in a 
        metropolitan statistical area; or
            ``(C) enrolls between 25,000 and 30,000 students and serves 
        a central city with a population of at least 140,000 in a 
        metropolitan statistical area.

           ``Subpart 1--Urban Education Demonstration Grants

``SEC. 10961. FINDINGS.

    ``The Congress finds that--
        ``(1) the ability of the Nation's major urban public school 
    systems to meet the Nation's educational goals will determine the 
    country's economic competitiveness and academic standing in the 
    world community;
        ``(2) the quality of public education in the Nation's major 
    urban areas has a direct effect on the economic development of the 
    Nation's inner-cities;
        ``(3) the success of urban public schools in boosting the 
    achievement of its minority youth attending such schools will 
    determine the ability of the Nation to close the gap between the 
    `haves and the have-nots' in society;
        ``(4) the cost to America's businesses to provide remedial 
    education to high school graduates is approximately $21,000,000,000 
    per year;
        ``(5) approximately one-third of the Nation's workforce will be 
    members of minority groups by the year 2000;
        ``(6) urban schools enroll a disproportionately large share of 
    the Nation's poor and `at-risk' youth;
        ``(7) urban schools enroll approximately one-third of the 
    Nation's poor, 40 percent of the Nation's African American 
    children, and 30 percent of the Nation's Hispanic youth;
        ``(8) nearly 20 percent of the Nation's limited-English-
    proficient children and 15 percent of the Nation's disabled youth 
    are enrolled in urban public schools;
        ``(9) the academic performance of students in the average 
    inner-city public school system is below that of students in most 
    other kinds of school systems;
        ``(10) urban public school systems have higher dropout rates, 
    more problems with health care, and less parental participation 
    than other kinds of school systems;
        ``(11) urban preschoolers have one-half the access to early 
    childhood development programs as do other children;
        ``(12) shortages of teachers in urban public school systems are 
    2.5 times greater than such shortages in other kinds of school 
    systems;
        ``(13) declining numbers of urban minority high school 
    graduates are pursuing postsecondary educational opportunities;
        ``(14) urban public school systems have greater problems with 
    teenage pregnancy, discipline, drug abuse, and gangs than do other 
    kinds of school systems;
        ``(15) 75 percent of urban public school buildings are over 25 
    years old, 33 percent of such buildings are over 50 years old, and 
    such buildings are often in serious disrepair and create poor and 
    demoralizing working and learning conditions;
        ``(16) solving the challenges facing our Nation's urban schools 
    will require the concerted and collaborative efforts of all levels 
    of government and all sectors of the community;
        ``(17) Federal and State funding of urban public schools has 
    not adequately reflected need; and
        ``(18) Federal funding that is well-targeted, flexible, and 
    accountable would contribute significantly to addressing the 
    comprehensive needs of inner-city public schools.

``SEC. 10962. PURPOSE.

    ``It is the purpose of this subpart to provide financial assistance 
to--
        ``(1) assist urban public schools in meeting the National 
    Education Goals;
        ``(2) improve the educational and social well-being of urban 
    public school children;
        ``(3) close the achievement gap between urban and nonurban 
    public school children, while improving the achievement level of 
    all children nationally;
        ``(4) conduct coordinated research on urban public education 
    problems, solutions, and promising practices;
        ``(5) improve the Nation's global economic and educational 
    competitiveness by improving the Nation's urban schools; and
        ``(6) encourage community, parental, and business collaboration 
    in the improvement of urban schools.

``SEC. 10963. URBAN SCHOOL GRANTS.

    ``(a) Authority.--The Secretary is authorized to make grants to 
eligible local educational agencies serving an urban area or State 
educational agencies in the case where the State educational agency is 
the local educational agency for activities designed to assist in local 
school improvement efforts and school reform, and to assist the schools 
of such agencies in meeting the National Education Goals.
    ``(b) Authorized Activities.--Funds under this section may be used 
to--
        ``(1) increase the academic achievement of urban public school 
    children to at least the national average, such as--
            ``(A) effective public schools programs;
            ``(B) tutoring, mentoring, and other activities to improve 
        academic achievement directly;
            ``(C) activities designed to increase the participation of 
        minority and female students in entry level and advanced 
        courses in mathematics and science;
            ``(D) supplementary academic instruction;
            ``(E) efforts to improve problem-solving and higher-order 
        thinking skills;
            ``(F) programs to increase student motivation for learning; 
        and
            ``(G) efforts to lengthen the school day or school year, or 
        to reduce class sizes;
        ``(2) ensure the readiness of all urban public school children 
    for school, such as--
            ``(A) full workday, full calendar-year comprehensive early 
        childhood development programs;
            ``(B) parenting classes and parent involvement activities;
            ``(C) activities designed to coordinate prekindergarten and 
        child care programs;
            ``(D) efforts to integrate developmentally appropriate 
        prekindergarten services into the overall public school 
        program;
            ``(E) upgrading the qualifications of early childhood 
        education staff and standards for programs;
            ``(F) collaborative efforts with health and social service 
        agencies to provide comprehensive services and to facilitate 
        the transition from home to school;
            ``(G) establishment of comprehensive child care centers in 
        public secondary schools for students who are parents and their 
        children; and
            ``(H) augmenting early childhood development programs to 
        meet the special educational and cultural needs of limited-
        English-proficient preschool children;
        ``(3) increase the graduation rates of urban public school 
    students to at least the national average, such as--
            ``(A) dropout prevention activities and support services 
        for public school students at-risk of dropping out of school;
            ``(B) reentry, outreach, and support activities to recruit 
        students who have dropped out of school to return to school;
            ``(C) development of systemwide policies and practices that 
        encourage students to stay in school;
            ``(D) efforts to provide individualized student support, 
        such as mentoring programs;
            ``(E) collaborative activities between schools, parents, 
        community groups, agencies, and institutions of higher 
        education aimed at preventing individuals from dropping out of 
        school;
            ``(F) programs to increase student attendance; and
            ``(G) alternative programs for students, especially 
        bilingual and special education students, who have dropped out 
        of school or are at risk of dropping out of school;
        ``(4) prepare urban public school students to enter higher 
    education, pursue careers, and exercise their responsibilities as 
    citizens, such as--
            ``(A) activities designed to increase the number and 
        percentages of students, particularly minority students, 
        enrolling in postsecondary educational institutions after 
        graduation from public secondary schools;
            ``(B) in-school youth employment, vocational education, and 
        career education programs that improve the transition from 
        school to work;
            ``(C) activities designed in collaboration with colleges 
        and universities to assist urban public school graduates in 
        completing higher education;
            ``(D) efforts to increase voter registration among eligible 
        public secondary school students;
            ``(E) activities designed to promote community service and 
        volunteerism among students, parents, teachers, and the 
        community; and
            ``(F) civic education and other programs designed to 
        enhance responsible citizenship and understanding of the 
        political process;
        ``(5) recruit and retain qualified teachers, such as--
            ``(A) school-based management projects and activities;
            ``(B) programs designed to test efforts to increase the 
        professionalization of teachers or to bring teachers up to 
        national voluntary standards;
            ``(C) alternative routes to certification for qualified 
        individuals from business, the military, and other fields;
            ``(D) efforts to recruit and retain teachers, particularly 
        minority teachers, specializing in critical shortage areas, 
        including early childhood teachers, mathematics and science 
        teachers, and special education and bilingual teachers;
            ``(E) upgrading the skills of teacher aides and 
        paraprofessionals to permit such individuals to become 
        certified teachers;
            ``(F) activities specifically designed to increase the 
        number of minority teachers in urban schools;
            ``(G) incentives for teachers to work in inner-city public 
        schools; and
            ``(H) collaborative activities with urban universities to 
        revise and upgrade teacher training programs;
        ``(6) provide for ongoing staff development to increase the 
    professional capacities of the teaching staff and the skills of 
    teacher aides and paraprofessionals;
        ``(7) decrease the use of drugs and alcohol among urban public 
    school students and enhance the physical and emotional health of 
    such students, such as--
            ``(A) activities designed to improve the self-esteem and 
        self-worth of urban public school students;
            ``(B) the provision of health care services and other 
        social services and the coordination of such services with 
        other health care providers;
            ``(C) programs designed to improve safety and discipline 
        and reduce in-school violence, vandalism, and gang activity;
            ``(D) activities that begin in the early grades and are 
        designed to prevent drug and alcohol abuse and smoking among 
        students and teachers;
            ``(E) collaborative activities with other agencies, 
        businesses, and community groups to discourage the 
        advertisement and glorification of drugs and alcohol;
            ``(F) efforts to enhance health education and nutrition 
        education; and
            ``(G) alternative public schools, and schools-within-
        schools programs, including bilingual and special education 
        programs for public school students with special needs; or
        ``(8) plan, develop, operate, or expand programs and activities 
    that are designed to assist urban public schools in meeting the 
    National Education Goals, including--
            ``(A) training of teachers and other educational personnel 
        in subject areas, or in instructional technology and methods 
        that will improve the delivery of services in urban settings 
        and assist in the achievement of the National Education Goals, 
        including staff development efforts that emphasize 
        multicultural and gender and disability bias-free curricula;
            ``(B) coordination and collaboration with other municipal 
        agencies, child care organizations, universities, or the 
        private sector;
            ``(C) parental involvement and outreach efforts and other 
        activities designed to enhance parental encouragement of 
        student learning;
            ``(D) pupil services and other support services that 
        contribute to progress in achieving National Education Goals;
            ``(E) efforts to acquire and improve access to educational 
        technology;
            ``(F) assist the schools most in need of services by 
        replicating successful efforts of other urban local educational 
        agencies and expanding successful programs within the eligible 
        agency; or
            ``(G) efforts to improve and strengthen the curriculum and 
        coordinate services across grade levels.
    ``(c) Applications.--
        ``(1) In general.--An eligible local educational agency 
    desiring to receive a grant under this section shall submit an 
    application to the Secretary at such time, in such manner, and 
    accompanied by such information as the Secretary may reasonably 
    require, consistent with this section.
        ``(2) Duration.--An application submitted pursuant to paragraph 
    (1) may be for a period of not more than five years.
    ``(d) Payments.--The Secretary shall make an award only to urban 
eligible local educational agencies that--
        ``(1) comply with the provisions of section 10966; and
        ``(2) demonstrate to the satisfaction of the Secretary that the 
    data submitted pursuant to section 10961 shows progress toward 
    meeting National Education Goals.
    ``(e) Administrative Costs.--Not more than five percent of any 
award made under this subpart may be used for administrative costs.

``SEC. 10964. SPECIAL RULES.

    ``(a) Special Consideration.--In making awards under this subpart, 
the Secretary shall give special consideration to urban eligible local 
educational agencies in which there is--
        ``(1) low achievement;
        ``(2) high poverty; and
        ``(3) racial isolation.
    ``(b) Flexibility.--Each urban eligible local educational agency 
shall have the flexibility to serve homeless children, children in 
schools undergoing desegregation, immigrants, migrants, or other highly 
mobile populations within the program assisted under this subpart.

           ``Subpart 2--Rural Education Demonstration Grants

``SEC. 10971. FINDINGS.

    ``The Congress finds that--
        ``(1) the ability of America's rural public school systems to 
    meet the National Education Goals will contribute to the economic 
    competitiveness and academic standing of the Nation in the world 
    community;
        ``(2) approximately 60 percent of the Nation's public school 
    districts are rural with a population of less than 2,500;
        ``(3) about 1 out of every 4 of America's rural school children 
    are living below the poverty line;
        ``(4) the quality of public education in the rural areas of the 
    Nation has a direct effect on the economic development of the rural 
    communities of the Nation;
        ``(5) the success of rural public schools in boosting the 
    achievement of minority youth attending such schools will determine 
    the ability of the Nation to close the gap between the haves and 
    the have-nots in society;
        ``(6) the academic performance of students in the average rural 
    school system is below that of students in most other suburban 
    school systems;
        ``(7) the average age of rural public school buildings is more 
    than 45 years old and such buildings are often in serious 
    disrepair, creating poor and demoralizing working and learning 
    conditions;
        ``(8) shortages of teachers for rural public school systems is 
    greater than in other kinds of school systems;
        ``(9) solving the challenges facing the Nation's rural public 
    schools will require the concerted and collaborative efforts of all 
    levels of government and all sectors of the community;
        ``(10) additional Federal funding would contribute 
    significantly to addressing the comprehensive needs of rural 
    schools;
        ``(11) rural public schools enroll a disproportionately large 
    share of the Nation's poor and at-risk youth;
        ``(12) a declining number of rural public secondary school 
    graduates are pursuing postsecondary education opportunities;
        ``(13) rural preschoolers have less access to early childhood 
    development programs than other children; and
        ``(14) Federal and State funding of rural public schools has 
    not adequately reflected need.

``SEC. 10972. PURPOSE.

    ``It is the purpose of this subpart to provide financial assistance 
to rural public schools most in need, to encourage the comprehensive 
restructuring of America's rural schools, the appropriate use of 
telecommunications technologies for learning, and to support innovative 
programs which improve performance through programs and projects 
designed to--
        ``(1) assist rural public schools in meeting National Education 
    Goals;
        ``(2) encourage rural public schools to engage in school 
    reform;
        ``(3) develop pilot projects that experiment with innovative 
    ways to teach rural public school children more effectively;
        ``(4) improve the educational and social well-being of rural 
    public school children;
        ``(5) close the achievement gap between children attending 
    rural public schools and other children, while improving the 
    achievement level of all children nationally;
        ``(6) conduct coordinated research on rural education problems, 
    solutions, promising practices, and distance learning technologies;
        ``(7) improve the Nation's global economic and educational 
    competitiveness by improving the Nation's rural public schools;
        ``(8) encourage community, parental, and business collaboration 
    in the improvement of rural public schools;
        ``(9) encourage rural school consortia for the purpose of 
    increasing efficiency and course offerings;
        ``(10) encourage a positive role for rural public schools in 
    local rural entrepreneurship and the identification of rural 
    community economic development opportunities;
        ``(11) encourage community-as-school concepts, which include 
    the role public schools can play to assist with rural community 
    economic revitalization; and
        ``(12) provide for the recruitment and meaningful inservice 
    opportunities for rural public school teachers.

``SEC. 10973. RURAL SCHOOL GRANTS.

    ``(a) Authority.--The Secretary is authorized to make grants to 
rural eligible local educational agencies, or State educational 
agencies in the case where the State educational agency is the local 
educational agency, for activities designed to assist in local school 
improvement efforts.
    ``(b) Award Rules.--
        ``(1) Less than $50,000,000.--If the amount made available to 
    carry out this subpart for any fiscal year is less than 
    $50,000,000, the Secretary shall award grants under this section on 
    a competitive basis.
        ``(2) Equal to or greater than $50,000,000.--If the amount made 
    available to carry out this subpart for any fiscal year is equal to 
    or greater than $50,000,000, the Secretary shall award grants under 
    this section so that a rural eligible local educational agency in 
    each State receives such a grant.
    ``(c) Administrative Costs.--Not more than five percent of a grant 
awarded under section 10573 shall be used for administrative costs.
    ``(d) Duration.--Each grant under this section shall be awarded for 
a period of not more than five years.

``SEC. 10974. USES OF FUNDS.

    ``(a) In General.--Grant funds made available under section 10973 
may be used by rural eligible local educational agencies to meet the 
National Education Goals through programs designed to--
        ``(1) increase the academic achievement of rural public school 
    children to at least the national average of such achievement, 
    including education reform initiatives, such as--
            ``(A) effective public schools programs;
            ``(B) tutoring, mentoring, and other activities to improve 
        academic achievement directly;
            ``(C) supplementary academic instruction;
            ``(D) efforts to improve problem-solving and higher-order 
        critical thinking skills; and
            ``(E) efforts to lengthen the school day, school year, or 
        reduce class sizes;
        ``(2) develop pilot projects that experiment with innovative 
    ways to teach rural public school children more effectively;
        ``(3) encourage the formation of rural school consortia for the 
    purpose of increasing efficiency and course offerings;
        ``(4) provide meaningful inservice training opportunities for 
    rural public school teachers;
        ``(5) assist rural schools in acquiring and improving access to 
    educational technology, including distance learning technologies;
        ``(6) ensure the readiness of all rural children for school, 
    such as--
            ``(A) full workday, full calendar-year comprehensive early 
        childhood development programs;
            ``(B) parenting classes, including parenting classes for 
        teenage parents, and parent involvement activities;
            ``(C) activities designed to coordinate prekindergarten and 
        child care programs;
            ``(D) efforts to integrate developmentally appropriate 
        prekindergarten services into the overall public school 
        program;
            ``(E) improving the skills of early childhood education 
        staff and standards for programs;
            ``(F) collaborative efforts with health and social service 
        agencies to provide comprehensive services and to facilitate 
        the transition from home to school;
            ``(G) establishment of comprehensive child care centers in 
        public secondary schools for student parents and their 
        children; and
            ``(H) augmenting early childhood development programs to 
        meet the special educational and cultural needs of limited-
        English proficient children, children with disabilities, and 
        migrant preschool children;
        ``(7) increase the graduation rates of rural public school 
    students to at least the national average of such rate, when funds 
    are used to serve secondary schools, such as--
            ``(A) dropout prevention activities and support services 
        for students at-risk of dropping out of school;
            ``(B) reentry, outreach and support activities to recruit 
        students who have dropped out of school to return to school;
            ``(C) development of systemwide policies and practices that 
        encourage students to stay in school;
            ``(D) efforts to provide individualized student support;
            ``(E) collaborative activities between schools, parents, 
        community groups, agencies, and institutions of higher 
        education aimed at preventing individuals from dropping out of 
        school;
            ``(F) programs to increase student attendance; and
            ``(G) alternative programs for students, especially 
        bilingual, special education, and migrant students, who have 
        dropped out of school or are at risk of dropping out of school;
        ``(8) prepare rural public school students to enter higher 
    education, pursue careers, and exercise their responsibilities as 
    citizens, such as--
            ``(A) activities designed to increase the number and 
        percentages of students, enrolling in postsecondary educational 
        institutions after graduation from secondary schools;
            ``(B) in-school youth employment, vocational education, and 
        career education programs that improve the transition from 
        school to work;
            ``(C) activities designed in collaboration with colleges 
        and universities to assist rural public school graduates in 
        completing higher education;
            ``(D) activities designed in conjunction with community 
        colleges to provide a kindergarten through grade 14 experience 
        for rural public school secondary school students;
            ``(E) efforts to increase voter registration among eligible 
        public secondary school students attending schools served by 
        rural eligible local educational agencies;
            ``(F) activities designed to promote community service and 
        volunteerism among students, parents, teachers, and the 
        community;
            ``(G) civic education, law-related education, and other 
        programs designed to enhance responsible citizenship and 
        understanding of the political process; and
            ``(H) encouraging a positive role for rural public schools 
        in local rural entrepreneurship and the identification of rural 
        community economic development opportunities;
        ``(9) recruit and retain qualified teachers, such as--
            ``(A) school-based management projects and activities;
            ``(B) programs designed to increase the status of the 
        teaching profession;
            ``(C) alternative routes to certification for qualified 
        individuals from business, the military, and other fields;
            ``(D) efforts to recruit and retain teachers in critical 
        shortage areas, including early childhood teachers, mathematics 
        and science teachers, foreign language teachers, and special 
        education and bilingual teachers;
            ``(E) upgrading the skills of existing classroom teachers 
        through the use of year-round, systematic, comprehensive 
        inservice training programs;
            ``(F) upgrading the skills of teacher aides and 
        paraprofessionals to assist such individuals in becoming 
        certified teachers;
            ``(G) efforts specifically designed to increase the number 
        of minority teachers in rural public schools;
            ``(H) programs designed to encourage parents and students 
        to enter the teaching profession;
            ``(I) incentives for teachers to work in rural public 
        schools;
            ``(J) collaborative activities with colleges and 
        universities to revise and upgrade teacher training programs to 
        meet the needs of rural public school students; and
            ``(K) training activities for the purpose of incorporating 
        distance learning technologies; or
        ``(10) decrease the use of drugs and alcohol among rural public 
    school students, and to enhance the physical and emotional health 
    of such students, such as--
            ``(A) activities designed to improve the self-esteem and 
        self-worth of rural students;
            ``(B) the provision of health care services and other 
        social services and the coordination of such services with 
        other health care providers;
            ``(C) programs designed to improve safety and discipline 
        and reduce in-school violence and vandalism;
            ``(D) activities that begin in the early grades and are 
        designed to prevent drug and alcohol abuse and smoking among 
        students;
            ``(E) collaborative activities with other agencies, 
        businesses, and community groups;
            ``(F) efforts to enhance health education and nutrition 
        education; and
            ``(G) alternative public schools, and schools-within-
        schools programs, including bilingual, migrant, and special 
        education programs for students with special needs.
    ``(b) Applications.--Each eligible entity desiring a grant under 
section 10973 shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may reasonably require. Each grant awarded under section 
10973 shall be of sufficient size and scope to achieve significant 
rural school improvement.

``SEC. 10975. HIGHER EDUCATION GRANTS.

    ``(a) Grants.--The Secretary is authorized to make grants to 
institutions of higher education, consortia of such institutions, or 
partnerships between institutions of higher education and local 
educational agencies to assist rural schools and rural eligible local 
educational agencies in undertaking local school improvement 
activities.
    ``(b) Authorized Activities.--Grant funds under this section may be 
used to--
        ``(1) assist rural schools in meeting National Education Goals;
        ``(2) assist in the recruitment and training of teachers in 
    rural schools;
        ``(3) assist rural schools in the development of appropriate 
    innovative school improvement initiatives;
        ``(4) provide inservice training opportunities for teachers in 
    rural schools; and
        ``(5) provide technical assistance in the use and installation 
    of innovative telecommunications technology.
    ``(c) Applications.--Each eligible entity desiring a grant under 
this section shall submit an application to the Secretary at such time, 
in such manner, and accompanied by such information as the Secretary 
may reasonably require.

                  ``Subpart 3--White House Conferences

``SEC. 10981. WHITE HOUSE CONFERENCE ON URBAN EDUCATION.

    ``(a) Authorization To Call Conference.--
        ``(1) In general.--The President is authorized to call and 
    conduct a White House Conference on Urban Education (referred to in 
    this section as the `Conference') which shall be held not earlier 
    than November 1, 1995, and not later than October 30, 1996.
        ``(2) Purpose.--The purpose of the Conference shall be to--
            ``(A) develop recommendations and strategies for the 
        improvement of urban education;
            ``(B) marshal the forces of the private sector, 
        governmental agencies at all levels, parents, teachers, 
        communities, and education officials to assist urban public 
        schools in achieving National Education Goals; and
            ``(C) conduct the initial planning for a permanent national 
        advisory commission on urban education.
    ``(b) Composition of Conference.--
        ``(1) In general.--The Conference shall be comprised of 12 
    individuals, including--
            ``(A) representatives of urban public school systems, 
        including members of the governing body of local educational 
        agencies, and school superintendents;
            ``(B) representatives of the Congress, the Department of 
        Education, and other Federal agencies;
            ``(C) State elected officials and representatives from 
        State educational agencies; and
            ``(D) individuals with special knowledge of and expertise 
        in urban education.
        ``(2) Selection.--The President shall select one-third of the 
    participants of the Conference, the majority leader of the Senate, 
    in consultation with the minority leader of the Senate, shall 
    select one-third of such participants, and the Speaker of the House 
    of Representatives, in consultation with the minority leader of the 
    House, shall select the remaining one-third of such participants.
        ``(3) Representation.--In selecting the participants of the 
    Conference, the President, the majority leader of the Senate, and 
    the Speaker of the House of Representatives shall ensure that the 
    participants are as representative of the ethnic, racial, and 
    linguistic diversity of cities as is practicable.
    ``(c) Report.--
        ``(1) In general.--Not later than 120 days following the 
    termination of the Conference, a final report of the Conference, 
    containing such findings and recommendations as may be made by the 
    Conference, shall be submitted to the President. The final report 
    shall be made public and, not later than 90 days after receipt by 
    the President, transmitted to the Congress together with a 
    statement of the President containing recommendations for 
    implementing the report.
        ``(2) Publication and distribution.--The Conference is 
    authorized to publish and distribute the report described in this 
    section. Copies of the report shall be provided to the Federal 
    depository libraries and made available to local urban public 
    school leaders.

``SEC. 10982. WHITE HOUSE CONFERENCE ON RURAL EDUCATION.

    ``(a) Authorization To Call Conference.--
        ``(1) In general.--The President is authorized to call and 
    conduct a White House Conference on Rural Education (hereafter in 
    this section referred to as the `Conference').
        ``(2) Date.--The Conference shall be held not earlier than 
    November 1, 1995, and not later than October 30, 1996.
        ``(3) Purpose.--The purposes of the Conference shall be to--
            ``(A) develop recommendations and strategies for the 
        improvement of rural public education;
            ``(B) marshal the forces of the private sector, 
        governmental agencies at all levels, parents, teachers, 
        communities, and education officials to assist rural public 
        schools in achieving National Education Goals, and make 
        recommendations on the roles rural public schools can play to 
        assist with local rural community economic revitalization; and
            ``(C) conduct the initial planning for a permanent national 
        commission on rural public education.
    ``(b) Composition of Conference.--
        ``(1) In general.--The Conference shall be comprised of--
            ``(A) representatives of eligible public school systems, 
        including members of the governing body of local educational 
        agencies, school superintendents, and classroom teachers;
            ``(B) representatives of the Congress, the Department, and 
        other Federal agencies;
            ``(C) State elected officials and representatives from 
        State educational agencies;
            ``(D) individuals with special knowledge of, and expertise 
        in, rural education, including individuals involved with rural 
        postsecondary education; and
            ``(E) individuals with special knowledge of, and expertise 
        in, rural business.
        ``(2) Selection.--The President shall select one-third of the 
    participants of the Conference, the majority leader of the Senate, 
    in consultation with the minority leader of the Senate, shall 
    select one-third of such participants, and the Speaker of the House 
    of Representatives, in consultation with the minority leader of the 
    House, shall select the remaining one-third of such participants.
        ``(3) Representation.--In selecting the participants of the 
    Conference, the President, the majority leader of the Senate, and 
    the Speaker of the House of Representatives shall ensure that the 
    participants are as representative of the ethnic, racial, and 
    language diversity of rural areas as is practicable.
    ``(c) Report.--
        ``(1) In general.--Not later than 120 days following the 
    termination of the Conference, a final report of the Conference, 
    containing such findings and recommendations as may be made by the 
    Conference, shall be submitted to the President. The final report 
    shall be made public and, not later than 90 days after receipt by 
    the President, transmitted to the Congress together with a 
    statement of the President containing recommendations for 
    implementing the report.
        ``(2) Publication and distribution.--The Conference is 
    authorized to publish and distribute the report described in this 
    section. Copies of the report shall be provided to the Federal 
    depository libraries and made available to local rural school 
    leaders and teachers.

                   ``PART K--NATIONAL WRITING PROJECT

``SEC. 10991. FINDINGS.

    ``The Congress finds that--
        ``(1) the United States faces a crisis in writing in schools 
    and in the workplace;
        ``(2) the writing problem has been magnified by the rapidly 
    changing student populations and the growing number of at-risk 
    students due to limited English proficiency;
        ``(3) over the past two decades, universities and colleges 
    across the country have reported increasing numbers of entering 
    freshmen who are unable to write at a level equal to the demands of 
    college work;
        ``(4) American businesses and corporations are concerned about 
    the limited writing skills of entry-level workers, and a growing 
    number of executives are reporting that advancement was denied to 
    them due to inadequate writing abilities;
        ``(5) the writing problem has been magnified by the rapidly 
    changing student populations in the Nation's schools and the 
    growing number of students who are at risk because of limited 
    English proficiency;
        ``(6) writing and reading are both fundamental to learning, yet 
    writing has been historically neglected in the schools and 
    colleges, and most teachers in the United States elementary 
    schools, secondary schools, and colleges have not been trained to 
    teach writing;
        ``(7) since 1973, the only national program to address the 
    writing problem in the Nation's schools has been the National 
    Writing Project, a network of collaborative university-school 
    programs whose goal is to improve the quality of student writing 
    and the teaching of writing at all grade levels and to extend the 
    uses of writing as a learning process through all disciplines;
        ``(8) the National Writing Project offers summer and school 
    year inservice teacher training programs and a dissemination 
    network to inform and teach teachers of developments in the field 
    of writing;
        ``(9) the National Writing Project is a nationally recognized 
    and honored nonprofit organization that recognizes that there are 
    teachers in every region of the country who have developed 
    successful methods for teaching writing and that such teachers can 
    be trained and encouraged to train other teachers;
        ``(10) the National Writing Project has become a model for 
    programs to improve teaching in such other fields as mathematics, 
    science, history, literature, performing arts, and foreign 
    languages;
        ``(11) the National Writing Project teacher-teaching-teachers 
    program identifies and promotes what is working in the classrooms 
    of the Nation's best teachers;
        ``(12) the National Writing Project teacher-teaching-teachers 
    project is a positive program that celebrates good teaching 
    practices and good teachers and through its work with schools 
    increases the Nation's corps of successful classroom teachers;
        ``(13) evaluations of the National Writing Project document the 
    positive impact the project has had on improving the teaching of 
    writing, student performance, and student thinking and learning 
    ability;
        ``(14) the National Writing Project programs offer career-long 
    education to teachers, and teachers participating in the National 
    Writing Project receive graduate academic credit;
        ``(15) each year over 100,000 teachers voluntarily seek 
    training in National Writing Project intensive summer institutes 
    and workshops and school year in-service programs through one of 
    the 154 regional sites located in 45 States, the Commonwealth of 
    Puerto Rico, and in 4 sites that serve United States teachers in 
    United States dependent and independent schools;
        ``(16) 250 National Writing Project sites are needed to 
    establish regional sites to serve all teachers;
        ``(17) private foundation resources, although generous in the 
    past, are inadequate to fund all of the National Writing Project 
    sites needed and the future of the program is in jeopardy without 
    secure financial support;
        ``(18) independent evaluation studies have found the National 
    Writing Project to be highly cost effective compared to other 
    professional development programs for teachers; and
        ``(19) during 1991, the first year of Federal support for the 
    National Writing Project, the National Writing Project matched the 
    $1,951,975 in Federal support with $9,485,504 in matching funds 
    from State, local, and other sources.

``SEC. 10992. NATIONAL WRITING PROJECT.

    ``(a) Authorization.--The Secretary is authorized to make a grant 
to the National Writing Project (hereafter in this section referred to 
as the `grantee'), a nonprofit educational organization which has as 
its primary purpose the improvement of the quality of student writing 
and learning, and the teaching of writing as a learning process in the 
Nation's classrooms--
        ``(1) to support and promote the establishment of teacher 
    training programs, including the dissemination of effective 
    practices and research findings regarding the teaching of writing 
    and administrative activities;
        ``(2) to support classroom research on effective teaching 
    practice and to document student performance;
        ``(3) to coordinate activities assisted under this section with 
    activities assisted under title II; and
        ``(4) to pay the Federal share of the cost of such programs.
    ``(b) Requirements of Grant.--The grant shall provide that--
        ``(1) the grantee will enter into contracts with institutions 
    of higher education or other nonprofit educational providers 
    (hereafter in this section referred to as `contractors') under 
    which the contractors will agree to establish, operate, and provide 
    the non-Federal share of the cost of teacher training programs in 
    effective approaches and processes for the teaching of writing;
        ``(2) funds made available by the Secretary to the grantee 
    pursuant to any contract entered into under this section will be 
    used to pay the Federal share of the cost of establishing and 
    operating teacher training programs as provided in paragraph (1); 
    and
        ``(3) the grantee will meet such other conditions and standards 
    as the Secretary determines to be necessary to assure compliance 
    with the provisions of this section and will provide such technical 
    assistance as may be necessary to carry out the provisions of this 
    section.
    ``(c) Teacher Training Programs.--The teacher training programs 
authorized in subsection (a) shall--
        ``(1) be conducted during the school year and during the summer 
    months;
        ``(2) train teachers who teach grades kindergarten through 
    college;
        ``(3) select teachers to become members of a National Writing 
    Project teacher network whose members will conduct writing 
    workshops for other teachers in the area served by each National 
    Writing Project site; and
        ``(4) encourage teachers from all disciplines to participate in 
    such teacher training programs.
    ``(d) Federal Share.--
        ``(1) In general.--Except as provided in paragraph (2) or (3) 
    and for purposes of subsection (a), the term `Federal share' means, 
    with respect to the costs of teacher training programs authorized 
    in subsection (a), 50 percent of such costs to the contractor.
        ``(2) Waiver.--The Secretary may waive the provisions of 
    paragraph (1) on a case-by-case basis if the National Advisory 
    Board described in subsection (f) determines, on the basis of 
    financial need, that such waiver is necessary.
        ``(3) Maximum.--The Federal share of the costs of teacher 
    training programs conducted pursuant to subsection (a) may not 
    exceed $40,000 for any one contractor, or $200,000 for a statewide 
    program administered by any one contractor in at least five sites 
    throughout the State.
    ``(e) Classroom Teacher Grants.--
        ``(1) In general.--The National Writing Project may reserve an 
    amount not to exceed 5 percent of the amount appropriated pursuant 
    to the authority of this section to make grants, on a competitive 
    basis, to elementary and secondary school teachers to pay the 
    Federal share of the cost of enabling such teachers to--
            ``(A) conduct classroom research;
            ``(B) publish models of student writing;
            ``(C) conduct research regarding effective practices to 
        improve the teaching of writing; and
            ``(D) conduct other activities to improve the teaching and 
        uses of writing.
        ``(2) Supplement and not supplant.--Grants awarded pursuant to 
    paragraph (1) shall be used to supplement and not supplant State 
    and local funds available for the purposes set forth in paragraph 
    (1).
        ``(3) Maximum grant amount.--Each grant awarded pursuant to 
    this subsection shall not exceed $2,000.
        ``(4) Federal share.--For the purpose of this subsection the 
    term `Federal share' means, with respect to the costs of activities 
    assisted under this subsection, 50 percent of such costs to the 
    elementary or secondary school teacher.
    ``(f) National Advisory Board.--
        ``(1) Establishment.--The National Writing Project shall 
    establish and operate a National Advisory Board.
        ``(2) Composition.--The National Advisory Board established 
    pursuant to paragraph (1) shall consist of--
            ``(A) national educational leaders;
            ``(B) leaders in the field of writing; and
            ``(C) such other individuals as the National Writing 
        Project deems necessary.
        ``(3) Duties.--The National Advisory Board established pursuant 
    to paragraph (1) shall--
            ``(A) advise the National Writing Project on national 
        issues related to student writing and the teaching of writing;
            ``(B) review the activities and programs of the National 
        Writing Project; and
            ``(C) support the continued development of the National 
        Writing Project.
    ``(g) Evaluation.--
        ``(1) In general.--The Secretary shall conduct an independent 
    evaluation by grant or contract of the teacher training programs 
    administered pursuant to this Act in accordance with section 14701. 
    Such evaluation shall specify the amount of funds expended by the 
    National Writing Project and each contractor receiving assistance 
    under this section for administrative costs. The results of such 
    evaluation shall be made available to the appropriate committees of 
    the Congress.
        ``(2) Funding limitation.--The Secretary shall reserve not more 
    than $150,000 from the total amount appropriated pursuant to the 
    authority of subsection (i) for fiscal year 1994 and the four 
    succeeding fiscal years to conduct the evaluation described in 
    paragraph (1).
    ``(h) Application Review.--
        ``(1) Review board.--The National Writing Project shall 
    establish and operate a National Review Board that shall consist 
    of--
            ``(A) leaders in the field of research in writing; and
            ``(B) such other individuals as the National Writing 
        Project deems necessary.
        ``(2) Duties.--The National Review Board shall--
            ``(A) review all applications for assistance under this 
        subsection; and
            ``(B) recommend applications for assistance under this 
        subsection for funding by the National Writing Project.
    ``(i) Authorization of Appropriations.--There are authorized to be 
appropriated for the grant to the National Writing Project, $4,000,000 
for fiscal year 1995, and such sums as may be necessary for each of the 
four succeeding fiscal years, to carry out the provisions of this 
section.

    ``PART L--THE EXTENDED TIME FOR LEARNING AND LONGER SCHOOL YEAR

``SEC. 10993. THE EXTENDED TIME FOR LEARNING AND LONGER SCHOOL YEAR.
    ``(a) Findings.--The Congress finds that--
        ``(1) the Commission on Time and Learning has found that--
            ``(A) realizing the third National Education Goal, that 
        states all students will leave grades four, eight and twelve 
        having demonstrated competency in challenging subject matter, 
        including English, mathematics, science, foreign languages, 
        civics and government, economics, arts, history, and geography, 
        will require considerably more common core learning time than 
        most students now receive;
            ``(B) ensuring that all students learn to high standards 
        will require flexibility and innovation in the use of common 
        core learning time, as well as the rest of the time students 
        spend both during and beyond the school day;
            ``(C) teachers need regular, sustained time for lesson 
        development, collegial collaboration and other professional 
        development;
            ``(D) schools, businesses, community-based organizations, 
        tribal leaders, and other community agencies and members should 
        work together to foster effective learning and enrichment 
        programs and activities for students, including programs that 
        operate outside of the regular school day or year;
            ``(E) for most students in the United States, the school 
        year is 180 days long. In Japan students go to school 243 days 
        per year, in Germany students go to school 240 days per year, 
        in Austria students go to school 216 days per year, in Denmark 
        students go to school 200 days per year, and in Switzerland 
        students go to school 195 days per year; and
            ``(F) in the final four years of schooling, students in 
        schools in the United States are required to spend a total of 
        1,460 hours on core academic subjects, less than half of the 
        3,528 hours so required in Germany, the 3,280 hours so required 
        in France, and the 3,170 hours so required in Japan;
        ``(2) increasing the amount and duration of intensive, engaging 
    and challenging learning activities geared to high standards can 
    increase student motivation and achievement;
        ``(3) the benefits of extending learning time, including common 
    core instructional time, can be maximized by concurrent changes in 
    curriculum and instruction, such as accelerated learning, and 
    engaging, interactive instruction based on challenging content;
        ``(4) maximizing the benefit of increased common core and other 
    learning time will require the collaboration and cooperation of 
    teachers and administrators, students, parents, community members 
    and organizations, businesses and others to develop strategies to 
    meet the needs of students during and beyond the school day and 
    year;
        ``(5) a competitive world economy requires that students in the 
    United States receive education and training that is at least as 
    rigorous and high-quality as the education and training received by 
    students in competitor countries;
        ``(6) despite our Nation's transformation from a farm-based 
    economy to one based on manufacturing and services, the school year 
    is still based on the summer needs of an agrarian economy;
        ``(7) American students' lack of formal schooling is not 
    counterbalanced with more homework. The opposite is true, as half 
    of all European students report spending at least two hours on 
    homework per day, compared to only 29 percent of American students. 
    Twenty-two percent of American students watch five or more hours of 
    television per day, while less than eight percent of European 
    students watch that much television;
        ``(8) more than half of teachers surveyed in the United States 
    cite `children who are left on their own after school' as a major 
    problem;
        ``(9) over the summer months, disadvantaged students not only 
    fail to advance academically, but many forget much of what such 
    students had learned during the previous school year;
        ``(10) funding constraints as well as the strong pull of 
    tradition have made extending the school year difficult for most 
    States and school districts; and
        ``(11) experiments with extended and multi-track school years 
    have been associated with both increased learning and more 
    efficient use of school facilities.
    ``(b) Purposes.--It is the purpose of this part to--
        ``(1) provide seed money to schools and local educational 
    agencies to enable such agencies to devise and implement strategies 
    and methods for upgrading the quality of, and extending, 
    challenging, engaging learning time geared to high standards for 
    all students; and
        ``(2) allow the Secretary to provide financial incentives and 
    assistance to States or local educational agencies to enable such 
    States or agencies to substantially increase the amount of time 
    that students spend participating in quality academic programs, and 
    to promote flexibility in school scheduling.
    ``(c) Program Authorized.--
        ``(1) In general.--The Secretary is authorized to award grants 
    to local educational agencies having applications approved under 
    subsection (d) to enable such agencies to carry out the authorized 
    activities described in subsection (e) in public elementary and 
    secondary schools.
        ``(2) Amount.--The Secretary shall, to the extent practicable, 
    provide an equitable distribution of grants under this section.
        ``(3) Duration.--Each grant under subsection (a) shall be 
    awarded for a period of not more than three years.
        ``(4) Priority.--The Secretary shall give priority to awarding 
    grants under this part to local educational agencies that serve 
    schools with high percentages of students in poverty.
    ``(d) Application.--Each local educational agency desiring a grant 
under this section shall submit an application to the Secretary at such 
time, in such manner, and accompanied by such information as the 
Secretary may require. Each such application shall describe--
        ``(1) the activities for which assistance is sought;
        ``(2) any study or other information-gathering project for 
    which funds will be used;
        ``(3) strategies and methods the applicant will use to enrich 
    and extend learning time for all students and to maximize the 
    percentage of common core learning time in the school day, such as 
    block scheduling, team teaching, longer school days or years, and 
    extending learning time through new distance-learning technologies;
        ``(4) the strategies and methods the applicant will use, 
    including changes in curriculum and instruction, to challenge and 
    engage students and to maximize the productiveness of common core 
    learning time, as well as the total time students spend in school 
    and in school-related enrichment activities;
        ``(5) the strategies and methods the applicant intends to 
    employ to provide continuing financial support for the 
    implementation of any extended school day or school year;
        ``(6) with respect to any application seeking assistance for 
    activities described under subsection (e)(4), a description of any 
    feasibility or other studies demonstrating the sustainability of a 
    longer school year;
        ``(7) the extent of involvement of teachers and other school 
    personnel in investigating, designing, implementing and sustaining 
    the activities assisted under this part;
        ``(8) the process to be used for involving parents and other 
    stakeholders in the development and implementation of the 
    activities assisted under this part;
        ``(9) any cooperation or collaboration among public housing 
    authorities, libraries, businesses, museums, community-based 
    organizations, and other community groups and organizations to 
    extend engaging, high-quality, standards-based learning time 
    outside of the school day or year, at the school or at some other 
    site;
        ``(10) the training and professional development activities 
    that will be offered to teachers and others involved in the 
    activities assisted under this part;
        ``(11) the goals and objectives of the activities assisted 
    under this part, including a description of how such activities 
    will assist all students to reach State standards;
        ``(12) the methods by which the applicant will assess progress 
    in meeting such goals and objectives; and
        ``(13) how the applicant will use funds provided under this 
    part in coordination with other funds provided under this Act or 
    other Federal laws.
    ``(e) Authorized Activities.--Funds under this section may be 
used--
        ``(1) to study the feasibility of, and effective methods for, 
    extending learning time within or beyond the school day or year, 
    including consultation with other schools or local educational 
    agencies that have designed or implemented extended learning time 
    programs;
        ``(2) to conduct outreach to and consult with community 
    members, including parents, students, and other stakeholders, such 
    as tribal leaders, to develop a plan to extend learning time within 
    or beyond the school day or year;
        ``(3) to develop and implement an outreach strategy that will 
    encourage collaboration with public housing authorities, libraries, 
    businesses, museums, community-based organizations, and other 
    community groups and organizations to coordinate challenging, high-
    quality educational activities outside of the school day or year;
        ``(4) to support public school improvement efforts that include 
    expansion of time devoted to core academic subjects and the 
    extension of the school year to 210 days;
        ``(5) to research, develop and implement strategies, including 
    changes in curriculum and instruction, for maximizing the quality 
    and percentage of common core learning time in the school day and 
    extending learning time during or beyond the school day or year;
        ``(6) to provide professional development for school staff in 
    innovative teaching methods that challenge and engage students, and 
    also increase the productivity of extended learning time; and
        ``(7) to develop strategies to include parents, business 
    representatives, and other community members in the extended time 
    activities, especially as facilitators of activities that enable 
    teachers to have more time for planning, individual student 
    assistance, and professional development activities.
    ``(f) Definitions.--For the purpose of this section the term 
`common core learning time' means high-quality, engaging instruction in 
challenging content in each of the following core academic subjects 
described in the third National Education Goal:
        ``(1) English.
        ``(2) Mathematics.
        ``(3) Science.
        ``(4) Foreign languages.
        ``(5) Civics and government.
        ``(6) Economics.
        ``(7) Arts.
        ``(8) History.
        ``(9) Geography.
    ``(g) Administration.--
        ``(1) Peer review.--The Secretary shall award grants under this 
    section pursuant to a peer review process.
        ``(2) Diversity.--In awarding grants under this section the 
    Secretary shall ensure that such grants are awarded to a diversity 
    of local educational agencies, including such agencies that serve 
    rural and urban areas.
    ``(h) Appropriations Authorization.--
        ``(1) In general.--For the purpose of carrying out this section 
    there are authorized to be appropriated $90,000,000 for fiscal year 
    1995 and such sums as may be necessary for each of the four 
    succeeding fiscal years.
        ``(2) Limitation.--Not less than 80 percent of any amount 
    appropriated under paragraph (1) shall be made available to 
    applicants seeking to extend their school year to not fewer than 
    210 days.

                    ``PART M--TERRITORIAL ASSISTANCE

``SEC. 10995. GENERAL ASSISTANCE FOR THE VIRGIN ISLANDS.

    ``There are authorized to be appropriated $5,000,000 for fiscal 
year 1995 and for each of the 4 succeeding fiscal years, for the 
purpose of providing general assistance to improve public education in 
the Virgin Islands.

                    ``TITLE XI--COORDINATED SERVICES

``SEC. 11001. FINDINGS AND PURPOSE.

    ``(a) Findings.--The Congress finds the following:
        ``(1) Growing numbers of children are negatively affected by 
    influences outside of the classroom which increase such children's 
    risk of academic failure.
        ``(2) Factors such as poor nutrition, unsafe living conditions, 
    physical and sexual abuse, family and gang violence, inadequate 
    health care, unemployment, lack of child care, and substance abuse, 
    adversely affect family relationships and the ability of a child to 
    learn.
        ``(3) Parents and other caregivers in today's high pressure 
    society often face demands which place restraints on such parents' 
    and caregivers' time and affect such parents' and caregivers' 
    ability to adequately provide for the needs of the families of such 
    parents and caregivers.
        ``(4) Access to health and social service programs can address 
    the basic physical and emotional needs of children so that children 
    can fully participate in the learning experiences offered children 
    in school.
        ``(5) Services for at-risk students need to be more convenient, 
    and less fragmented, regulated and duplicative, in order to meet 
    the needs of children and their families.
        ``(6) School personnel, parents, and support service providers 
    often lack knowledge of, and access to, available services for at-
    risk students and their families in the community, and have few 
    resources to coordinate services and make services accessible.
        ``(7) Service providers, such as teachers, social workers, 
    health care and child care providers, juvenile justice workers and 
    others, are often trained in separate disciplines that provide 
    little support for the coordination of services.
        ``(8) Coordination of services is more cost effective because 
    such coordination substitutes prevention for expensive crisis 
    intervention.
        ``(9) Coordinating health and social services with education 
    can help the Nation meet the National Education Goals by ensuring 
    better outcomes for children.
    ``(b) Purpose of Coordinating Services.--The purpose of this title 
is to provide elementary and secondary school students and their 
families better access to the social, health and education services 
necessary for students to succeed in school and for their families to 
take an active role in ensuring that such students receive the best 
possible education.

``SEC. 11002. DEFINITIONS.

    ``For the purpose of this title--
        ``(1) the term `coordinated services project' means a 
    comprehensive approach to meeting the educational, health, social 
    service, and other needs of children and their families, including 
    foster children and their foster families, through a communitywide 
    partnership that links public and private agencies providing such 
    services or access to such services through a coordination site at 
    or near a school; and
        ``(2) the term `eligible entity' means a local educational 
    agency, school, or a consortium of schools.

``SEC. 11003. AUTHORITY.

    ``In order to use funds made available under section 14206(b) for 
the development, or the implementation or expansion, of a coordinated 
service project an eligible entity shall have an application approved 
under subsection (b) or (c), respectively, of section 11004.

``SEC. 11004. PROJECT DEVELOPMENT AND IMPLEMENTATION.

    ``(a) Applications.--Each eligible entity desiring to use funds 
made available under section 14206(b) shall submit an application to 
the Secretary at such time, in such manner and accompanied by such 
information as the Secretary may reasonably require.
    ``(b) Project Development Plan.--The application for the 
development of the coordinated services project under this title shall 
cover a period of not more than 1 year and shall include a plan that--
        ``(1) demonstrates that an assessment will be performed of the 
    economic, social, and health barriers to educational achievement 
    experienced by children and families, including foster children and 
    their foster families, in the community, and the local, State, 
    Federal, and privately funded services available to meet such 
    needs;
        ``(2) identifies the measures that will be taken to establish a 
    communitywide partnership that links public and private agencies 
    providing services to children and families; and
        ``(3) identifies any other measures that will be taken to 
    develop a comprehensive plan for the implementation or expansion of 
    a coordinated services project.
    ``(c) Project Implementation or Expansion Plan.--The application 
for the implementation or expansion of a coordinated services project 
under this title shall contain a plan that includes--
        ``(1) the results of a children and families needs assessment, 
    which shall include an assessment of the needs of foster children;
        ``(2) a description of the entities operating the coordinated 
    services project;
        ``(3) a description of the proposed coordinated services 
    project, the objectives of such project, where such project will be 
    located, and the staff that will be used to carry out such project;
        ``(4) a description of how the success of the coordinated 
    services project will be evaluated;
        ``(5) a description of the training to be provided to teachers 
    and appropriate personnel;
        ``(6) information regarding whether a sliding scale fee for 
    services will be employed, and if not, an explanation of why such 
    scale is not feasible; and
        ``(7) when applicable, strategies to ensure that the health and 
    welfare needs of migratory families are addressed.

``SEC. 11005. USES OF FUNDS.

    ``(a) Uses.--
        ``(1) In general.--Funds made available under section 14206(b) 
    may be used for planning for, or the implementation or expansion 
    of, activities which include--
            ``(A) hiring a services coordinator;
            ``(B) making minor renovations to existing buildings;
            ``(C) purchasing basic operating equipment;
            ``(D) improving communications and information-sharing 
        among entities participating in the coordinated services 
        project;
            ``(E) providing training to teachers and appropriate 
        personnel concerning such teacher's and personnel's role in a 
        coordinated services project; or
            ``(F) conducting the needs assessment required in section 
        11004(b)(1).
        ``(2) Prohibition.--Funds made available under section 14206(b) 
    shall not be used for the direct provision of any health or health-
    related services.
    ``(b) Federal Funds To Supplement, Not Supplant, Non-Federal 
Funds.--An eligible entity shall use funds received under this title 
only to supplement the amount of funds that would, in the absence of 
such Federal funds, be made available from non-Federal sources for 
coordinated services, and not to supplant such funds.

``SEC. 11006. CONTINUING AUTHORITY.

    ``The Secretary shall prohibit an eligible entity from using funds 
made available under section 14206(b) if the Secretary determines that 
the coordinated services project assisted under this title is not 
achieving effective coordination after two years of implementation of 
such project.

``SEC. 11007. FEDERAL AGENCY COORDINATION.

    ``(a) Agency Coordination.--The Secretaries of Education, Health 
and Human Services, Labor, Housing and Urban Development, Treasury, and 
Agriculture, and the Attorney General shall review the programs 
administered by their agencies to identify barriers to service 
coordination.
    ``(b) Report to Congress.--Such Secretaries and the Attorney 
General shall submit jointly a report to the Congress not later than 
two years after the date of the enactment of the Improving America's 
Schools Act of 1994, based on the review required under subsection (a) 
recommending legislative and regulatory action to address such 
barriers, and during the time preceding the submission of such report, 
shall use waiver authorities authorized under this and other Acts to 
address such barriers.

     ``TITLE XII--SCHOOL FACILITIES INFRASTRUCTURE IMPROVEMENT ACT

``SEC. 12001. SHORT TITLE.

    ``This title may be cited as the `Education Infrastructure Act of 
1994'.

``SEC. 12002. FINDINGS.

    ``The Congress finds the following:
        ``(1) According to a 1991 survey conducted by the American 
    Association of School Administrators, 74 percent of all public 
    school buildings in the United States need to be replaced.
        ``(2) Almost one-third of such buildings were built prior to 
    World War II.
        ``(3) It is estimated that one of every four public school 
    buildings in the United States is in inadequate condition, and of 
    such buildings, 61 percent need maintenance or major repairs, 43 
    percent are obsolete, 42 percent contain environmental hazards, 25 
    percent are overcrowded, and 13 percent are structurally unsound.
        ``(4) Large numbers of local educational agencies have 
    difficulties securing financing for school facility improvement, 
    including school libraries, media centers, and facilities.
        ``(5) Improving the quality of public elementary and secondary 
    schools will help our Nation meet the National Education Goals.
        ``(6) The challenges facing our Nation's public elementary and 
    secondary schools require the concerted and collaborative efforts 
    of all levels of government and all sectors of the community.

``SEC. 12003. PURPOSE.

    ``The purpose of this title is to help the Nation meet the National 
Education Goals through the provision of Federal funds to enable local 
educational agencies to meet the costs associated with the improvement 
of schools within their jurisdiction.
``SEC. 12004. IMPROVEMENT OF PUBLIC ELEMENTARY AND SECONDARY EDUCATION 
FACILITIES PROGRAM AUTHORIZED.
    ``(a) Program Authority.--
        ``(1) In general.--From amounts appropriated under section 
    12013 for any fiscal year, the Secretary shall award grants to 
    eligible local educational agencies with applications approved 
    under section 12005 to carry out the authorized activities 
    described in section 12007.
        ``(2) Special rule.--The Secretary may reserve not more than 1 
    percent of the amount appropriated under section 12013 to provide 
    assistance to Indian schools in accordance with this title.
    ``(b) Award Categories.--
        ``(1) In general.--From the funds appropriated to carry out 
    this title for each fiscal year, the Secretary shall award grants 
    to eligible local educational agencies in each of the following 
    categories:
            ``(A) Eligible local educational agencies in which the 
        number of students enrolled is less than 2,500.
            ``(B) Such agencies in which such number is 2,500 or 
        greater but less than 5,000.
            ``(C) Such agencies in which such number is 5,000 or 
        greater but less than 10,000.
            ``(D) Such agencies in which such number is 10,000 or 
        greater but less than 25,000.
            ``(E) Such agencies in which such number is 25,000 or 
        greater but less than 50,000.
            ``(F) Such agencies in which such number is 50,000 or 
        greater.
    ``(c) Maximum Award Amounts.--The Secretary shall annually set the 
maximum award amounts for each category described in subsection (b)(1).

``SEC. 12005. AWARD OF GRANTS.

    ``(a) Criteria.--The Secretary shall award grants under this title 
on the basis of--
        ``(1) high numbers or percentages of the total number of 
    children aged 5 to 17, inclusive, residing in the geographic area 
    served by an eligible local educational agency who are counted 
    under subpart 2 of part A of title I;
        ``(2) the extent to which the eligible local educational agency 
    lacks the fiscal capacity, including the ability to raise funds 
    through the full use of such agency's bonding capacity and 
    otherwise, to undertake the project without Federal assistance;
        ``(3) the threat of the condition of the physical plant poses 
    to the safety and well-being of students;
        ``(4) the demonstrated need for the construction, 
    reconstruction, or renovation based on the condition of the 
    facility;
        ``(5) the age of the facility to be renovated or replaced; and
        ``(6) such other criteria as the Secretary may prescribe by 
    regulation.
    ``(b) Allocation Among Categories.--The Secretary shall allocate 
funds under this title among each of the categories described in 
paragraph (1) on such basis as the Secretary determines is appropriate, 
including--
        ``(1) the relative numbers or percentages of students counted 
    under subpart 2 of part A of title I; and
        ``(2) the relative costs of carrying out activities under this 
    title in eligible local educational agencies in each such category.
    ``(c) Frequency of Awards.--No local educational agency may receive 
more than one grant under this title in any five-year period.
    ``(d) Special Rule.--The Secretary shall only award grants under 
this title if the Secretary determines that sufficient funds will be 
provided under this title or from other sources, such as the issuance 
of bonds, or savings generated from performance contracting, to carry 
out the activities for which assistance is sought.

``SEC. 12006. APPLICATIONS.

    ``(a) Applications Required.--Each eligible local educational 
agency desiring to receive a grant under this title shall submit an 
application to the Secretary.
    ``(b) Application Contents.--Each application described in 
subsection (a) shall contain--
        ``(1) an assurance that the application was developed in 
    consultation with parents and classroom teachers;
        ``(2) a description of each architectural, civil, structural, 
    mechanical, or electrical deficiency to be corrected with funds 
    provided under this title, including the priority for the repair of 
    the deficiency;
        ``(3) a description of the criteria used by the applicant to 
    determine the type of corrective action necessary to meet the 
    purpose of this title;
        ``(4) a description of the improvement to be supported with 
    funds provided under this title;
        ``(5) a cost estimate of the proposed improvement;
        ``(6) an identification of other resources, such as unused 
    bonding capacity, that are available to carry out the activities 
    for which funds are requested under this title;
        ``(7) a description of how activities supported with funds 
    provided under this title will promote energy conservation; and
        ``(8) such other information and assurances as the Secretary 
    may reasonably require.

``SEC. 12007. AUTHORIZED ACTIVITIES.

    ``(a) In General.--Each eligible local educational agency receiving 
a grant under this title shall use the grant funds only to ensure the 
health and safety of students through the repair, renovation, 
alteration, and construction of a public elementary or secondary school 
library, media center, or facility, used for academic or vocational 
instruction.
    ``(b) Particular Activities.--Subject to subsection (a), each 
eligible local educational agency receiving a grant under this title 
may use the grant funds to meet the requirements of section 504 of the 
Rehabilitation Act of 1973 and the Americans with Disabilities Act of 
1990.

``SEC. 12008. GENERAL PROVISIONS.

    ``(a) Budget and Accounting.--In the performance of, and with 
respect to, the functions, powers, and duties under this title, the 
Secretary, notwithstanding the provisions of any other law, shall--
        ``(1) prepare annually and submit a budget program as provided 
    for wholly owned Government corporations by chapter 91 of title 31, 
    United States Code; and
        ``(2) maintain a set of accounts which shall be audited by the 
    Comptroller General in accordance with the provisions of chapter 35 
    of title 31, United States Code, but such financial transactions of 
    the Secretary, as the making of loans and vouchers approved by the 
    Secretary, in connection with such financial transactions shall be 
    final and conclusive upon all officers of the Government.
    ``(b) Use of Funds.--Funds made available to the Secretary pursuant 
to the provisions of this title shall be deposited in a checking 
account or accounts with the Treasurer of the United States. Receipts 
and assets obtained or held by the Secretary in connection with the 
performance of functions under this title, and all funds available for 
carrying out the functions of the Secretary under this title (including 
appropriations therefor, which are hereby authorized), shall be 
available, in such amounts as may from year to year be authorized by 
the Congress, for the administrative expenses of the Secretary in 
connection with the performance of such functions.
    ``(c) Legal Powers.--In the performance of, and with respect to, 
the functions, powers, and duties under this title, the Secretary, 
notwithstanding the provisions of any other law, may--
        ``(1) prescribe such rules and regulations as may be necessary 
    to carry out the purposes of this title;
        ``(2) sue and be sued;
        ``(3) foreclose on any property or commence any action to 
    protect or enforce any right conferred upon the Secretary by any 
    law, contract, or other agreement, and bid for and purchase at any 
    foreclosure or any other sale any property in connection with which 
    the Secretary has made a loan pursuant to this part;
        ``(4) in the event of any such acquisition, notwithstanding any 
    other provision of law relating to the acquisition, handling, or 
    disposal of real property by the United States, complete, 
    administer, remodel and convert, dispose of, lease, and otherwise 
    deal with, such property, but any such acquisition of real property 
    shall not deprive any State or political subdivision of such State 
    civil or criminal jurisdiction in and over such property or impair 
    the civil rights under the State or local laws of the inhabitants 
    on such property;
        ``(5) sell or exchange at public or private sale, or lease, 
    real or personal property, and sell or exchange any securities or 
    obligations, upon such terms as the Secretary may fix;
        ``(6) obtain insurance against loss in connection with property 
    and other assets held; and
        ``(7) include in any contract or instrument made pursuant to 
    this title such other covenants, conditions, or provisions as may 
    be necessary to assure that the purposes of this title will be 
    achieved.
    ``(d) Contracts for Supplies or Services.--Section 3709 of the 
Revised Statutes shall not apply to any contract for services or 
supplies on account of any property acquired pursuant to this subtitle 
if the amount of such contract does not exceed $1,000.
    ``(e) Applicability of Government Corporation Control Act.--The 
provisions of section 9107(a) of title 31, United States Code, which 
are applicable to corporations or agencies subject to chapter 91 of 
such title, shall also be applicable to the activities of the Secretary 
under this title.

``SEC. 12009. FAIR WAGES.

    ``All laborers and mechanics employed by contractors or 
subcontractors in the performance of any contract and subcontract for 
the repair, renovation, alteration, or construction, including painting 
and decorating, of any building or work that is financed in whole or in 
part by a grant under this title, shall be paid wages not less than 
those determined by the Secretary of Labor in accordance with the Act 
of March 3, 1931 (commonly known as the Davis-Bacon Act); as amended 
(40 U.S.C. 276a-276a-5). The Secretary of Labor shall have the 
authority and functions set forth in reorganization plan of No. 14 of 
1950 (15 FR 3176; 64 Stat. 1267) and section 2 of the Act of June 1, 
1934 (commonly known as the Copeland Anti-Kickback Act) as amended (40 
U.S.C. 276c, 48 Stat. 948).

``SEC. 12010. REQUIREMENTS.

    ``(a) Special Rules.--
        ``(1) Maintenance of effort.--An eligible local educational 
    agency may receive a grant under this title for any fiscal year 
    only if the Secretary finds that either the combined fiscal effort 
    per student or the aggregate expenditures of that agency and the 
    State with respect to the provision of free public education by 
    such local educational agency for the preceding fiscal year was not 
    less than 90 percent of such combined fiscal effort or aggregate 
    expenditures for the fiscal year for which the determination is 
    made.
        ``(2) Supplement not supplant.--An eligible local educational 
    agency shall use funds received under this title only to supplement 
    the amount of funds that would, in the absence of such Federal 
    funds, be made available from non-Federal sources for the repair, 
    renovation, alteration, and construction of school facilities used 
    for educational purposes, and not to supplant such funds.
    ``(b) General Limitations.--
        ``(1) Real property.--No part of any grant funds under this 
    title shall be used for the acquisition of any interest in real 
    property.
        ``(2) Maintenance.--Nothing in this title shall be construed to 
    authorize the payment of maintenance costs in connection with any 
    projects constructed in whole or in part with Federal funds 
    provided under this title.
        ``(3) Environmental safeguards.--All projects carried out with 
    Federal funds provided under this title shall comply with all 
    relevant Federal, State, and local environmental laws and 
    regulations.
        ``(4) Athletic and similar facilities.--No funds received under 
    this title shall be used for stadiums or other facilities that are 
    primarily used for athletic contests or exhibitions or other events 
    for which admission is charged to the general public.

``SEC. 12011. FEDERAL ASSESSMENT.

    ``The Secretary shall reserve not more than 1 percent of funds 
appropriated for each fiscal year under section 15013--
        ``(1) to collect such data as the Secretary determines 
    necessary at the school, local, and State levels;
        ``(2) to conduct studies and evaluations, including national 
    studies and evaluations, in order to--
            ``(A) monitor the progress of projects supported with funds 
        provided under this title; and
            ``(B) evaluate the state of United States public elementary 
        and secondary school libraries, media centers, and facilities; 
        and
        ``(3) to report to the Congress by July 1, 1997, regarding the 
    findings of the studies and evaluations described in paragraph (2).

``SEC. 12012. DEFINITIONS.

    ``For the purpose of this title--
        ``(1) the term `construction' means the alteration or 
    renovation of a building, structure, or facility, including--
            ``(A) the concurrent installation of equipment; and
            ``(B) the complete or partial replacement of an existing 
        facility, but only if such replacement is less expensive and 
        more cost-effective than alteration, renovation, or repair of 
        the facility;
        ``(2) the term `school' means a public structure suitable for 
    use as a classroom, laboratory, library, media center, or related 
    facility, the primary purpose of which is the instruction of public 
    elementary and secondary school students; and
        ``(3) the term `eligible local educational agency' means a 
    local educational agency in which--
            ``(A) not less than 15 percent of the children that reside 
        in the geographic area served by such agency are eligible to be 
        counted under subpart 2 of part A of title I of this Act; or
            ``(B) the United States owns Federal property described in 
        section 8015(5), that has an assessed value (determined as of 
        the time or times when acquired) aggregating 90 percent or more 
        of the assessed value of all real property in such agency 
        (determined as of the time or times when so acquired); and
            ``(C) demonstrates in the application submitted under 
        section 12006 that such agency has urgent repair, renovation, 
        alteration and construction needs for its public elementary or 
        secondary schools used for academic or vocational instruction.

``SEC. 12013. AUTHORIZATION.

    ``There are authorized to be appropriated to carry out this title 
$200,000,000 for fiscal year 1995 and such sums as may be necessary for 
each of the four succeeding fiscal years.

   ``TITLE XIII--SUPPORT AND ASSISTANCE PROGRAMS TO IMPROVE EDUCATION

``SEC. 13001. FINDINGS.

    ``The Congress finds that--
        ``(1) high-quality technical assistance can enhance the 
    improvements in teaching and learning achieved through the 
    implementation of programs under this Act;
        ``(2) comprehensive technical assistance and effective program 
    dissemination are essential ingredients of the overall strategy of 
    the Improving America's Schools Act of 1994 to improve programs and 
    provide all children opportunities to meet challenging State 
    content standards and challenging State student performance 
    standards;
        ``(3) States, local educational agencies, tribes, and schools 
    serving students with special needs, such as students with limited-
    English proficiency and students with disabilities, have great need 
    for comprehensive technical assistance in order to use funds under 
    this Act to provide such students with opportunities to learn to 
    challenging State content standards and challenging State student 
    performance standards;
        ``(4) current technical assistance and dissemination efforts 
    are fragmented and categorical in nature, and thus fail to address 
    adequately the needs of States, local educational agencies and 
    tribes for help in integrating into a coherent strategy for 
    improving teaching and learning the various programs under this Act 
    with State and local programs and other education reform efforts;
        ``(5) too little creative use is made of technology as a means 
    of providing information and assistance in a cost-effective way;
        ``(6) comprehensive technical assistance can help schools and 
    school systems focus on improving opportunities for all children to 
    meet challenging State content standards and challenging State 
    student performance standards, as such schools and systems 
    implement programs under this Act;
        ``(7) comprehensive technical assistance will provide 
    coordinated assistance to help States, local educational agencies, 
    tribes, participating colleges and universities, and schools 
    integrate Federal, State, and local education programs in ways that 
    contribute to improving schools and entire school systems;
        ``(8) technical assistance in support of programs under this 
    Act should be coordinated with the Department's regional offices, 
    the regional educational laboratories, State Literacy Resource 
    Centers, vocational resource centers, and other technical 
    assistance efforts supported by the Department; and
        ``(9) technical assistance providers should prioritize 
    assistance for local educational agencies and schools.

``SEC. 13002. PURPOSE.

    ``The purpose of this title is to create a national technical 
assistance and dissemination system to make available to States, local 
educational agencies, tribes, schools, and other recipients of funds 
under this Act technical assistance in--
        ``(1) administering and implementing programs under this Act;
        ``(2) implementing school reform programs in a manner that 
    improves teaching and learning for all students;
        ``(3) coordinating such programs with other Federal, State, and 
    local education plans and activities, so that all students, 
    particularly students at risk of educational failure, are provided 
    opportunities to meet challenging State content standards and 
    challenging State student performance standards; and
        ``(4) adopting, adapting, and implementing promising and proven 
    practices for improving teaching and learning.

          ``PART A--COMPREHENSIVE REGIONAL ASSISTANCE CENTERS

``SEC. 13101. PROGRAM AUTHORIZED.

    ``(a) Comprehensive Regional Assistance Centers.--
        ``(1) In general.--The Secretary is authorized to award grants 
    to, or enter into contracts or cooperative agreements with, public 
    or private nonprofit entities or consortia of such entities in 
    order to establish a networked system of 15 comprehensive regional 
    assistance centers to provide comprehensive training and technical 
    assistance, related to administration and implementation of 
    programs under this Act, to States, local educational agencies, 
    schools, tribes, community-based organizations, and other 
    recipients of funds under this Act.
        ``(2) Consideration.--In establishing comprehensive regional 
    assistance centers and allocating resources among the centers, the 
    Secretary shall consider--
            ``(A) the geographic distribution of students assisted 
        under title I;
            ``(B) the geographic and linguistic distribution of 
        students of limited-English proficiency;
            ``(C) the geographic distribution of Indian students;
            ``(D) the special needs of students living in urban and 
        rural areas; and
            ``(E) the special needs of States and outlying areas in 
        geographic isolation.
        ``(3) Special rule.--The Secretary shall establish 1 
    comprehensive regional assistance center under this section in 
    Hawaii.
    ``(b) Service to Indians and Alaska Natives.--The Secretary shall 
ensure that each comprehensive regional assistance center that serves a 
region with a significant population of Indian or Alaska Native 
students shall--
        ``(1) be awarded to a consortium which includes a tribally 
    controlled community college or other Indian organization; and
        ``(2) assist in the development and implementation of 
    instructional strategies, methods and materials which address the 
    specific cultural and other needs of Indian or Alaska Native 
    students.
    ``(c) Accountability.--To ensure the quality and effectiveness of 
the networked system of comprehensive regional assistance centers 
supported under this part, the Secretary shall--
        ``(1) develop, in consultation with the Assistant Secretary for 
    Elementary and Secondary Education, the Director of Bilingual 
    Education and Minority Languages Affairs, and the Assistant 
    Secretary for Educational Research and Improvement, a set of 
    performance indicators that assesses whether the work of the 
    centers assists in improving teaching and learning under this Act 
    for all children, particularly children at risk of educational 
    failure;
        ``(2) conduct surveys every two years of populations to be 
    served under this Act to determine if such populations are 
    satisfied with the access to and quality of such services;
        ``(3) collect, as part of the Department's reviews of programs 
    under this Act, information about the availability and quality of 
    services provided by the centers, and share that information with 
    the centers; and
        ``(4) take whatever steps are reasonable and necessary to 
    ensure that each center performs its responsibilities in a 
    satisfactory manner, which may include--
            ``(A) termination of an award under this part (if the 
        Secretary concludes that performance has been unsatisfactory) 
        and the selection of a new center; and
            ``(B) whatever interim arrangements the Secretary 
        determines are necessary to ensure the satisfactory delivery of 
        services under this part to an affected region.
    ``(d) Duration.--Grants, contracts or cooperative agreements under 
this section shall be awarded for a period of 5 years.
``SEC. 13102. REQUIREMENTS OF COMPREHENSIVE REGIONAL ASSISTANCE 
CENTERS.
    ``(a) In General.--Each comprehensive regional assistance center 
established under section 13101(a) shall--
        ``(1) maintain appropriate staff expertise and provide support, 
    training, and assistance to State educational agencies, tribal 
    divisions of education, local educational agencies, schools, and 
    other grant recipients under this Act, in--
            ``(A) improving the quality of instruction, curricula, 
        assessments, and other aspects of school reform, supported with 
        funds under title I;
            ``(B) implementing effective schoolwide programs under 
        section 1114;
            ``(C) meeting the needs of children served under this Act, 
        including children in high-poverty areas, migratory children, 
        immigrant children, children with limited-English proficiency, 
        neglected or delinquent children, homeless children and youth, 
        Indian children, children with disabilities, and, where 
        applicable, Alaska Native children and Native Hawaiian 
        children;
            ``(D) implementing high-quality professional development 
        activities for teachers, and where appropriate, administrators, 
        pupil services personnel and other staff;
            ``(E) improving the quality of bilingual education, 
        including programs that emphasize English and native language 
        proficiency and promote multicultural understanding;
            ``(F) creating safe and drug-free environments, especially 
        in areas experiencing high levels of drug use and violence in 
        the community and school;
            ``(G) implementing educational applications of technology;
            ``(H) coordinating services and programs to meet the needs 
        of students so that students can fully participate in the 
        educational program of the school;
            ``(I) expanding the involvement and participation of 
        parents in the education of their children;
            ``(J) reforming schools, school systems, and the governance 
        and management of schools;
            ``(K) evaluating programs; and
            ``(L) meeting the special needs of students living in urban 
        and rural areas and the special needs of local educational 
        agencies serving urban and rural areas;
        ``(2) ensure that technical assistance staff have sufficient 
    training, knowledge, and expertise in how to integrate and 
    coordinate programs under this Act with each other, as well as with 
    other Federal, State, and local programs and reforms;
        ``(3) provide technical assistance using the highest quality 
    and most cost-effective strategies possible;
        ``(4) coordinate services, work cooperatively, and regularly 
    share information with, the regional educational laboratories, the 
    Eisenhower regional consortia under part C, research and 
    development centers, State literacy centers authorized under the 
    National Literacy Act of 1991, and other entities engaged in 
    research, development, dissemination, and technical assistance 
    activities which are supported by the Department as part of a 
    Federal technical assistance system, to provide a broad range of 
    support services to schools in the region while minimizing the 
    duplication of such services;
        ``(5) work collaboratively with the Department's regional 
    offices;
        ``(6) consult with representatives of State educational 
    agencies, local educational agencies, and populations served under 
    this Act;
        ``(7) provide services to States, local educational agencies, 
    tribes, and schools, in coordination with the National Diffusion 
    Network State Facilitators activities under section 13201, in order 
    to better implement the purposes of this part and provide the 
    support and assistance diffusion agents need to carry out such 
    agents' mission effectively; and
        ``(8) provide professional development services to State 
    educational agencies, local educational agencies, and the National 
    Diffusion Network State Facilitators to increase the capacity of 
    such entities to provide high-quality technical assistance in 
    support of programs under this Act.
    ``(b) Priority.--Each comprehensive regional assistance center 
assisted under this part shall give priority to servicing--
        ``(1) schoolwide programs under section 1114; and
        ``(2) local educational agencies and Bureau-funded schools with 
    the highest percentages or numbers of children in poverty.
``SEC. 13103. MAINTENANCE OF SERVICE AND APPLICATION REQUIREMENTS.
    ``(a) Maintenance of Service.--The Secretary shall ensure that the 
comprehensive regional assistance centers funded under this part 
provide technical assistance services that address the needs of 
educationally disadvantaged students, including students in urban and 
rural areas, and bilingual, migrant, immigrant, and Indian students, 
that are at least comparable to the level of such technical assistance 
services provided under programs administered by the Secretary on the 
day preceding the date of enactment of the Improving America's Schools 
Act of 1994.
    ``(b) Application Requirements.--Each entity or consortium desiring 
assistance under this part shall submit an application to the Secretary 
at such time, in such manner and accompanied by such information, as 
the Secretary may require. Each such application shall--
        ``(1) demonstrate how the comprehensive regional assistance 
    center will provide expertise and services in the areas described 
    in section 13102;
        ``(2) demonstrate how such centers will work with the National 
    Diffusion Network under section 13201 to conduct outreach to local 
    educational agencies receiving priority under section 13401;
        ``(3) demonstrate support from States, local educational 
    agencies and tribes in the area to be served;
        ``(4) demonstrate how such centers will ensure a fair 
    distribution of services to urban and rural areas; and
        ``(5) provide such other information as the Secretary may 
    require.

``SEC. 13104. TRANSITION.

    ``(a) In General.--The Secretary shall use funds appropriated to 
carry out this part for fiscal years 1995 and 1996 in order to ensure 
an orderly transition and phase in of the comprehensive regional 
assistance centers assisted under this part.
    ``(b) Extension of Previous Centers.--
        ``(1) In general.--The Secretary shall, notwithstanding any 
    other provision of law, use funds appropriated under section 13105 
    to extend or continue contracts and grants for existing categorical 
    technical assistance centers assisted under this Act (as such Act 
    was in effect on the day preceding the date of enactment of the 
    Improving America's Schools Act of 1994) through fiscal year 1996, 
    and take other necessary steps to ensure a smooth transition of 
    services provided under this part and that such services will not 
    be interrupted, curtailed, or substantially diminished.
        ``(2) Staff expertise.--In planning for the competition for the 
    new comprehensive regional assistance centers under this part, the 
    Secretary may draw on the expertise of staff from existing 
    categorical assistance centers assisted under this Act prior to the 
    date of enactment of the Improving America's Schools Act of 1994.

``SEC. 13105. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this part, there are authorized 
to be appropriated $70,000,000 for fiscal year 1995 and such sums as 
may be necessary for each of the four succeeding fiscal years.

                  ``PART B--NATIONAL DIFFUSION NETWORK

``SEC. 13201. PROGRAM AUTHORIZED.

    ``(a) Authority.--
        ``(1) In general.--In order to implement the purposes of this 
    title, the Secretary is authorized to establish the National 
    Diffusion Network (hereafter referred to in this Act as `NDN') to 
    carry out a State-based outreach, consultation, training, and 
    dissemination program.
        ``(2) Program requirements.--In carrying out the program under 
    this part, the Secretary shall award grants and contracts to 
    National Diffusion Network State Facilitators in each State and 
    outlying area, and to the Bureau of Indian Affairs, in order to 
    assist State and local educational agencies, schools, and other 
    appropriate educational entities--
            ``(A) to identify and secure appropriate, high-quality 
        technical assistance from the comprehensive regional assistance 
        centers under part A and other sources; and
            ``(B) to identify and implement exemplary or promising 
        educational programs and practices.
    ``(b) Eligible Entities.--The Secretary shall award grants and 
contracts under this section to public or private nonprofit 
organizations or institutions with demonstrated expertise in the areas 
of applied education research and program dissemination.
    ``(c) Administration.--The program under this part shall be 
administered through the Office of Reform Assistance and Dissemination 
established under section 941(b) of the Educational Research, 
Development, Dissemination, and Improvement Act of 1994.
    ``(d) Coordination.--The National Diffusion Network State 
Facilitators shall work in close cooperation, and coordinate their 
activities, with the comprehensive regional assistance centers 
established under part A.
    ``(e) State Facilitator Activities.--The National Diffusion Network 
State Facilitators shall provide professional development and technical 
assistance services to assist State educational agencies, local 
educational agencies, tribal divisions of education, schools, family 
and adult literacy programs, and other entities assisted under this 
Act, in--
        ``(1) defining such entities' technical assistance needs and 
    aligning such needs with school reform under title I, professional 
    development, and technology plans;
        ``(2) securing the technical assistance and professional 
    development services that can best fulfill such needs by utilizing 
    the services of the comprehensive regional assistance centers, the 
    regional education laboratories, the Eisenhower regional consortia, 
    State Literacy Resource Centers authorized under the National 
    Literacy Act of 1991 and other technical assistance providers, 
    including local providers of professional development services;
        ``(3) identifying educational technology needs and securing the 
    necessary technical assistance to address such needs in 
    coordination with the Eisenhower regional consortia under part C 
    and the regional technical assistance and professional development 
    consortia under subpart 3 of title III; and
        ``(4) utilizing technology, including regional and national 
    electronic networks, to increase such entities' access to technical 
    assistance, professional development services, and dissemination of 
    effective programs and promising practices.
    ``(f) Additional Duties.--In addition, National Diffusion PNetwork 
State Facilitators shall--
        ``(1) disseminate information about school reform and effective 
    and promising practices, and help local educational Pagencies and 
    schools adapt such reform and practices to such agencies' needs;
        ``(2) identify educational programs and practices for possible 
    dissemination throughout the State and Nation;
        ``(3) promote and facilitate teacher networks throughout the 
    State;
        ``(4) develop and implement an aggressive outreach plan for 
    reaching the local educational agencies and schools receiving 
    priority under section 13401; and
        ``(5) provide such other outreach, coordination, and 
    dissemination services as may be necessary to achieve the purposes 
    of this title.
    ``(g) National Diffusion Network Effective Programs and Promising 
Practices System.--
        ``(1) In general.--The Secretary shall develop a system of 
    validating effective programs and promising practices for 
    dissemination through the National Diffusion Network. Such system 
    may include exemplary programs funded through any office of the 
    Department, the National Science Foundation, or other Federal 
    agencies and shall be coordinated, aligned with, and administered 
    by, the Office of Reform Assistance and Dissemination established 
    under section 941(b) of the PEducational Research, Development, 
    Dissemination, and Improvement Act of 1994.
        ``(2) Priority.--The Secretary shall give priority to 
    identifying, validating, and disseminating effective schoolwide 
    projects, programs addressing the needs of high poverty schools, 
    and programs with the capacity to offer high-quality, sustained 
    technical assistance. The Office of Educational Research and 
    Improvement Office of Reform Assistance and Dissemination shall 
    also administer a grant program for the purpose of dissemination 
    and the provision of technical assistance regarding such system.
        ``(3) Priority of services.--The National Diffusion Network 
    State Facilitators shall give priority in providing the services 
    described in this section to--
            ``(A) schoolwide program under section 1114; and
            ``(B) local educational agencies and Bureau-funded schools 
        with the highest percentages or numbers of children in poverty.

``SEC. 13202. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this part, there are authorized 
to be appropriated $25,000,000 for fiscal year 1995 and such sums as 
may be necessary for each of the four succeeding fiscal years.

    ``PART C--EISENHOWER REGIONAL MATHEMATICS AND SCIENCE EDUCATION 
                               CONSORTIA

``SEC. 13301. PROGRAM ESTABLISHED.

    ``(a) In General.--
        ``(1) Grants authorized.--The Secretary, in consultation with 
    the Director of the National Science Foundation, is authorized to 
    award grants or contracts to eligible entities to enable such 
    entities to establish and operate regional mathematics and science 
    education consortia for the purpose of--
            ``(A) disseminating exemplary mathematics and science 
        education instructional materials; and
            ``(B) providing technical assistance for the implementation 
        of teaching methods and assessment tools for use by elementary 
        and secondary school students, teachers and administrators.
        ``(2) Number.--The Secretary, in accordance with the provisions 
    of this section, shall award at least one grant or contract to an 
    eligible entity in each region.
        ``(3) Special rule.--In any fiscal year, if the amount made 
    available pursuant to section 13308 is less than $4,500,000, then 
    the Secretary may waive the provisions of paragraph (2) and award 
    grants or contracts of sufficient size, scope, and quality to carry 
    out this section.
        ``(4) Designation.--Each regional consortium assisted under 
    this section shall be known as an `Eisenhower regional consortium'.
    ``(b) Grant Term and Review.--Grants or contracts under this part 
shall be awarded for a period of not more than five years and shall be 
reviewed before the end of the 30-month period beginning on the date 
the grant or contract is awarded. Grants or contracts under this part 
shall be awarded before the end of the 12-month period beginning on the 
date of the enactment of an Act making appropriations to carry out this 
part.
    ``(c) Amount.--In awarding grants or contracts under this part, the 
Secretary shall ensure that there is a relatively equal distribution of 
the funds made available among the regions, except that the Secretary 
may award additional funds to a regional consortium on the basis of 
population and geographical conditions of the region being served.

``SEC. 13302. USE OF FUNDS.

    ``Funds provided under this part may be used by a regional 
consortium, under the direction of a regional board established under 
section 13304, to--
        ``(1) work cooperatively with the other regional consortia, the 
    Eisenhower National Clearinghouse for Science and Mathematics 
    Education established under section 2102(b) and federally funded 
    technical assistance providers to more effectively accomplish the 
    activities described in this section;
        ``(2) assist, train and provide technical assistance to 
    classroom teachers, administrators, and other educators to 
    identify, implement, assess or adapt the instructional materials, 
    teaching methods and assessment tools described in section 
    13301(a)(1);
        ``(3) provide for the training of classroom teachers to enable 
    such teachers to instruct other teachers, administrators, and 
    educators in the use of the instructional materials, teaching 
    methods and assessment tools described in section 13301(a)(1) in 
    the classroom;
        ``(4) when necessary, provide financial assistance to enable 
    teachers and other educators to attend and participate in the 
    activities of the regional consortium;
        ``(5) implement programs and activities designed to meet the 
    needs of groups that are underrepresented in, and underserved by, 
    mathematics and science education;
        ``(6) assist State and local educational agencies in 
    identifying science equipment needs and help such agencies or 
    consortia thereof assess the need for and desirability of regional 
    mathematics and science academies;
        ``(7) develop and disseminate early childhood education 
    mathematics and science instructional materials;
        ``(8) disseminate information regarding informal mathematics 
    and science education activities and programs offered by Federal 
    agencies and private or public agencies and institutions within the 
    region;
        ``(9) collect data on activities assisted under this part in 
    order to evaluate the effectiveness of the activities of the 
    regional consortia;
        ``(10) identify exemplary teaching practices and materials from 
    within the region and communicate such practices and materials to 
    the Eisenhower National Clearinghouse for Mathematics and Science 
    Education;
        ``(11) communicate, on a regular basis, with entities within 
    the region who are delivering services to students and teachers of 
    mathematics and science;
        ``(12) assist in the development and evaluation of State and 
    regional plans and activities that hold promise of bringing about 
    systemic reform in student performance in mathematics and science; 
    and
        ``(13) increase the use of informal education entities (such as 
    science technology centers, museums, libraries, Saturday academies, 
    and 4H programs) for educational purposes to expand student 
    knowledge and understanding.

``SEC. 13303. APPLICATION AND REVIEW.

    ``(a) In General.--Each eligible entity desiring a grant or 
contract under this part shall submit an application to the Secretary 
at such time, in such manner, and accompanied by such additional 
information as the Secretary may reasonably require. Each such 
application shall--
        ``(1) demonstrate that the eligible entity has demonstrated 
    expertise in the fields of mathematics and science education;
        ``(2) demonstrate that the eligible entity shall implement and 
    disseminate mathematics and science education instructional 
    materials, teaching methods, and assessment tools through a 
    consortium of the region's mathematics and science education 
    organizations and agencies;
        ``(3) demonstrate that the eligible entity shall carry out the 
    functions of the regional consortium;
        ``(4) demonstrate that emphasis will be given to programs and 
    activities designed to meet the needs of groups that are 
    underrepresented in, and underserved by, mathematics and science 
    education;
        ``(5) demonstrate that the business community in the region 
    served by the regional consortium will play an integral role in 
    designing and supporting the regional consortium's work;
        ``(6) demonstrate that the eligible entity will consider the 
    resources of telecommunications partnerships assisted under the 
    Star Schools Program Assistance Act (as such Act was in effect on 
    the day preceding the date of enactment of the Improving America's 
    Schools Act of 1994) in carrying out the provisions of this part, 
    where appropriate; and
        ``(7) assure that the entity will conduct its activities and 
    supervise its personnel in a manner that effectively ensures 
    compliance with the copyright laws of the United States under title 
    17, United States Code.
    ``(b) Approval of Application.--
        ``(1) In general.--The Secretary shall approve or disapprove 
    applications submitted pursuant to subsection (a) in accordance 
    with the criteria and procedures established under paragraph (2).
        ``(2) Procedures and criteria.--The Secretary shall develop 
    procedures and criteria designed to ensure that grants or contracts 
    are competitively awarded on the basis of merit determined under a 
    peer review process.
        ``(3) National panel.--(A) The Secretary, in consultation with 
    the Director, shall establish a national panel, or to the extent 
    necessary, panels, to submit to the Secretary recommendations for 
    awards of grants or contracts under this part. The Secretary shall 
    appoint the members of such panel or panels.
        ``(B) Each panel appointed under subparagraph (A) shall include 
    participation, to the extent feasible, from each region.

``SEC. 13304. REGIONAL BOARDS.

    ``(a) In General.--Each eligible entity receiving a grant or 
contract under this part shall establish a regional board to oversee 
the administration and establishment of program priorities for the 
regional consortium established by such eligible entity. Such regional 
board shall be broadly representative of the agencies and organizations 
participating in the regional consortium.
    ``(b) Prohibition on Use of Federal Funds.--No Federal funds may be 
used for the establishment or operation of a regional board required by 
subsection (a), except that at the discretion of a regional board, 
Federal funds may be used to provide assistance such as travel and 
accommodations for board members who could not otherwise afford to 
participate as members of the board.

``SEC. 13305. PAYMENTS; FEDERAL SHARE; NON-FEDERAL SHARE.

    ``(a) Payments.--The Secretary shall pay to each eligible entity 
having an application approved under section 13303 the Federal share of 
the cost of the activities described in the application.
    ``(b) Federal Share.--For the purpose of subsection (a), the 
Federal share shall be 80 percent.
    ``(c) Non-Federal Share.--The non-Federal share of the cost of 
activities described in the application submitted under section 13303 
may be in cash or in kind, fairly evaluated. At least 10 percent of 
such non-Federal share shall be from sources other than the Federal 
Government, or State or local government.

``SEC. 13306. EVALUATION.

    ``(a) Evaluation Required.--The Secretary, through the Office of 
Educational Research and Improvement and in accordance with section 
14701, shall collect sufficient data on, and evaluate the effectiveness 
of, the activities of each regional consortium.
    ``(b) Assessment.--The evaluations described in paragraph (1) shall 
include an assessment of the effectiveness of the regional consortium 
in meeting the needs of the schools, teachers, administrators and 
students in the region.
    ``(c) Report.--At the end of each grant or contract period, the 
Secretary shall submit to the Congress a report on the effectiveness of 
the programs conducted at each regional consortium.

``SEC. 13307. DEFINITIONS.

    ``For purposes of this part:
        ``(1) The term `eligible entity' means--
            ``(A) a private nonprofit organization of demonstrated 
        effectiveness;
            ``(B) an institution of higher education;
            ``(C) an elementary or secondary school;
            ``(D) a State or local educational agency;
            ``(E) a regional educational laboratory in consortium with 
        the research and development center established under section 
        931(c)(1)(B)(i) of the Educational Research, Development, 
        Dissemination, and Improvement Act of 1994; or
            ``(F) any combination of the entities described in 
        subparagraphs (A) through (E),
    with demonstrated expertise in mathematics and science education.
        ``(2) The terms `mathematics' and `science' include the 
    technology education associated with mathematics and science, 
    respectively.
        ``(3) The term `region' means a region of the United States 
    served by a regional education laboratory that is supported by the 
    Secretary pursuant to section 405(d)(4)(A)(i) of the General 
    Education Provisions Act (as such section was in existence on the 
    day preceding the date of enactment of the Goals 2000: Educate 
    America Act).
        ``(4) The term `regional consortium' means each regional 
    mathematics and science education consortium established pursuant 
    to section 13301.
        ``(5) The term `State agency for higher education' means the 
    State board of higher education or other agency or officer 
    primarily responsible for the State supervision of higher 
    education, or, if there is no such officer or agency, an officer or 
    agency designated for the purpose of carrying out this part by the 
    Governor or by State law.

``SEC. 13308. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated $23,000,000 for fiscal 
year 1995, and such sums as may be necessary for each of the 4 
succeeding fiscal years, to carry out this part.

            ``PART D--TECHNOLOGY-BASED TECHNICAL ASSISTANCE

``SEC. 13401. TECHNOLOGY-BASED TECHNICAL ASSISTANCE.

    ``The Secretary is authorized to provide a technology-based 
technical assistance service that will--
        ``(1) support the administration and implementation of programs 
    under this Act by providing information, including legal and 
    regulatory information, and technical guidance and information, 
    about best practices; and
        ``(2) be accessible to all States, local educational agencies, 
    schools, community-based organizations and others who are 
    recipients of funds under this Act.

                    ``TITLE XIV--GENERAL PROVISIONS

                         ``PART A--DEFINITIONS

``SEC. 14101. 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 conversion 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 child in a school located in another school district, the 
    Secretary shall, for purposes of this Act--
            ``(i) consider the child to be in attendance at a school of 
        the agency making such payment; and
            ``(ii) not consider the child to be in attendance at a 
        school of the agency receiving such payment.
        ``(D) If a local educational agency makes a tuition payment to 
    a private school or to a public school of another local educational 
    agency for a child with disabilities, as defined in section 
    602(a)(1) of the Individuals with Disabilities Education Act, the 
    Secretary shall, for the purposes of this Act, consider such child 
    to be in attendance 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 expenditures, during the 
            third fiscal year preceding the fiscal year for which the 
            determination 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 preceding year.
        ``(3) Child.--The term `child' means any person within the age 
    limits for which the State provides free public education.
        ``(4) Community-based organization.--The term `community-based 
    organization' means a public or private nonprofit organization of 
    demonstrated effectiveness that--
            ``(A) is representative of a community or significant 
        segments of a community; and
            ``(B) provides educational or related services to 
        individuals in the community.
        ``(5) Consolidated local application.--The term `consolidated 
    local application' means an application submitted by a local 
    educational agency pursuant to section 14302.
        ``(6) Consolidated local plan.--The term `consolidated local 
    plan' means a plan submitted by a local educational agency pursuant 
    to section 14302.
        ``(7) Consolidated state application.--The term `consolidated 
    State application' means an application submitted by a State 
    educational agency pursuant to section 14302.
        ``(8) Consolidated state plan.--The term `consolidated State 
    plan' means a plan submitted by a State educational agency pursuant 
    to section 14302.
        ``(9) County.--The term `county' means one of the divisions of 
    a State used by the Secretary of Commerce in compiling and 
    reporting data regarding counties.
        ``(10) Covered program.--The term `covered program' means each 
    of the programs authorized by--
            ``(A) part A of title I;
            ``(B) part C of title I;
            ``(C) title II (other than section 2103 and part C);
            ``(D) subpart 2 of part A of title III;
            ``(E) part A of title IV (other than section 4114); and
            ``(F) title VI.
        ``(11) The term `current expenditures' means expenditures for 
    free public education--
            ``(A) including expenditures for administration, 
        instruction, attendance and health services, pupil 
        transportation 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 community services, 
        capital outlay, and debt service, or any expenditures made from 
        funds received under title I and title VI.
        ``(12) Department.--The term `Department' means the Department 
    of Education.
        ``(13) Educational service agency.--The term `educational 
    service agency' means a regional public multiservice agency 
    authorized by State statute to develop, manage, and provide 
    services or programs to local educational agencies.
        ``(14) Elementary school.--The term `elementary school' means a 
    nonprofit institutional day or residential school that provides 
    elementary education, as determined under State law.
        ``(15) Free public education.--The term `free public education' 
    means education that is provided--
            ``(A) at public expense, under public supervision 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.
        ``(16) Gifted and talented.--The term `gifted and talented', 
    when used with respect to students, children or youth, means 
    students, children or youth who give evidence of high performance 
    capability 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.
        ``(17) Institution of higher education.--The term `institution 
    of higher education' has the meaning given that term in section 
    1201(a) of the Higher Education Act of 1965.
        ``(18) Local educational agency.--(A) The term `local 
    educational agency' means a public board of education or other 
    public authority legally constituted within a State for either 
    administrative control or direction of, or to perform a service 
    function 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 elementary or secondary schools.
        ``(B) The term includes any other public institution or agency 
    having administrative control and direction of a public elementary 
    or secondary school.
        ``(C) The term includes an elementary or secondary school 
    funded by the Bureau of Indian Affairs 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 educational agency other 
    than the Bureau of Indian Affairs.
        ``(19) Mentoring.--The term `mentoring' means a program in 
    which an adult works with a child or youth on a P1-to-1 basis, 
    establishing a supportive relationship, providing academic 
    assistance, and introducing the child or youth to new experiences 
    that enhance the child or youth's ability to excel in school and 
    become a responsible citizen.
        ``(20) Other staff.--The term `other staff' means pupil 
    services personnel, librarians, career guidance and counseling 
    personnel, education aides, and other instructional and 
    administrative personnel.
        ``(21) Outlying area.--The term `outlying area' means the 
    Virgin Islands, Guam, American Samoa, the Commonwealth of the 
    Northern Mariana Islands, and for the purpose of section 1121 and 
    any other discretionary grant program under this Act, the Republic 
    of the Marshall Islands, the Federated States of Micronesia, and 
    the Republic of Palau.
        ``(22) Parent.--The term `parent' includes a legal guardian or 
    other person standing in loco parentis.
        ``(23) Public telecommunication entity.--The term `public 
    telecommunication entity' has the same meaning given to such term 
    in section 397(12) of the Communications Act of 1934.
        ``(24) 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, diagnosis, counseling, 
    educational, therapeutic, and other necessary services (including 
    related services as such term is defined in section 602(a)(17) of 
    the Individuals with Disabilities Education Act) as part of a 
    comprehensive program to meet student needs.
        ``(B) The term `pupil services' means the services provided by 
    pupil services personnel.
        ``(25) Secondary school.--The term `secondary school' means a 
    nonprofit institutional day or residential school that provides 
    secondary education, as determined under State law, except that 
    such term does not include any education beyond grade 12.
        ``(26) Secretary.--The term `Secretary' means the Secretary of 
    Education.
        ``(27) State.--The term `State' means each of the 50 States, 
    the District of Columbia, the Commonwealth of Puerto Rico, and each 
    of the outlying areas.
        ``(28) State educational agency.--The term `State educational 
    agency' means the agency primarily responsible for the State 
    supervision of public elementary and secondary schools.
        ``(29) Technology.--The term `technology' means the latest 
    state-of-the-art technology products and services, such as closed 
    circuit television systems, educational television or radio 
    programs and services, cable television, satellite, copper fiber 
    optic transmission, computer hardware and software, video and audio 
    laser and CD-ROM disks, video and audio tapes, including 
    interactive forms of such products and services, or other 
    technologies.

``SEC. 14102. APPLICABILITY OF THIS TITLE.

    ``Parts B, C, D, E, and F of this title do not apply to title VIII 
of this Act.

``SEC. 14103. 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 Indian Affairs, a school 
operated under a contract or grant with the Bureau of Indian Affairs in 
consortia with another contract or grant school or tribal or community 
organization, or a Bureau of Indian Affairs school in consortia 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. 14201. 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 available to such agency for State 
    administration under one or more of the programs specified under 
    paragraph (2) if such State educational agency can demonstrate that 
    the majority of such agency's resources come from non-Federal 
    sources.
        ``(2) Applicability.--This section applies to programs under 
    title I, those covered programs described in subparagraphs (C), 
    (D), (E), and (F) of section 14101(10), and administrative funds 
    under section 308(c) of the Goals 2000: Educate America Act.
    ``(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 section for administrative activities 
    designed to enhance the effective and coordinated use of funds 
    under the programs 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 regarding model 
        programs and practices; and
            ``(E) technical assistance under programs specified in 
        subsection (a)(2).
    ``(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 administration of programs included in the consolidation under 
subsection (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 administration.
    ``(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 of availability as funds available under one or more 
programs included in the consolidation under subsection (a).
    ``(f) Consolidation of Funds for Standards and Assessment 
Development.--In order to develop challenging State standards and 
assessments, a State educational agency may consolidate the amounts 
made available to such agency for such purposes under title I of this 
Act and title III of the Goals 2000: Educate America Act.

``SEC. 14202. 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. 14203. CONSOLIDATION OF FUNDS FOR LOCAL ADMINISTRATION.

    ``(a) General Authority.--In accordance with regulations of the 
Secretary, a local educational agency, with the approval of its State 
educational agency, may consolidate and use for the administration of 
one or more covered programs for any fiscal year not more than the 
percentage, established in each covered program, of the total amount 
available to the local educational agency under such covered programs.
    ``(b) State Procedures.--Within one year from the date of enactment 
of the Improving America's Schools Act of 1994, a State educational 
agency shall, in collaboration with local educational agencies in the 
State, establish procedures for responding to requests from local 
educational agencies to consolidate administrative funds under 
subsection (a) and for establishing limitations on the amount of funds 
under covered programs that may be used for administration 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 covered programs and for 
the uses described in section 14201(b)(2).
    ``(e) Records.--A local educational agency that consolidates 
administrative funds under this section shall not be required to keep 
separate records, by individual covered program, to account for costs 
relating to the administration of covered programs included in the 
consolidation.

``SEC. 14204. ADMINISTRATIVE FUNDS STUDIES.

    ``(a) Federal Funds Study.--
        ``(1) In general.--The Secretary shall conduct a study of the 
    use of funds under this Act for the administration, by State and 
    local educational agencies, of all covered programs, including the 
    percentage of grant funds used for such purpose in all covered 
    programs.
        ``(2) State data.--Beginning in fiscal year 1995 and each 
    succeeding fiscal year thereafter, each State educational agency 
    which receives funds under title I shall submit to the Secretary a 
    report on the use of title I funds for the State administration of 
    activities assisted under title I. Such report shall include the 
    proportion of State administrative funds provided under section 
    1603 that are expended for--
            ``(A) basic program operation and compliance monitoring;
            ``(B) statewide program services such as development of 
        standards and assessments, curriculum development, and program 
        evaluation; and
            ``(C) technical assistance and other direct support to 
        local educational agencies and schools.
        ``(3) Federal funds report.--The Secretary shall complete the 
    study conducted under this section not later than July 1, 1997, and 
    shall submit to the President and the appropriate committees of the 
    Congress a report regarding such study within 30 days of the 
    completion of such study.
        ``(4) Results.--Based on the results of the study described in 
    subsection (a)(1), which may include collection and analysis of the 
    data under paragraph (2) and section 410(b) of the Improving 
    America's Schools Act of 1994, the Secretary shall--
            ``(A) develop a definition of what types of activities 
        constitute the administration of programs under this Act by 
        State and local educational agencies; and
            ``(B) within one year of the completion of such study, 
        promulgate final regulations or guidelines regarding the use of 
        funds for administration under all programs, including the use 
        of such funds on a consolidated basis and limitations on the 
        amount of such funds that may be used for administration where 
        such limitation is not otherwise specified in law.
    ``(b) General Administrative Funds Study and Report.--Upon the date 
of completion of the pilot model data system described in section 
410(b) of the Improving America's Schools Act of 1994, the Secretary 
shall study the information obtained through the use of such data 
system and other relevant information, as well as any other data 
systems which are in use on such date that account for administrative 
expenses at the school, local educational agency, and State educational 
agency level, and shall report to the Congress not later than July 1, 
1997, regarding--
        ``(1) the potential for the reduction of administrative 
    expenses at the school, local educational agency, and State 
    educational agency levels;
        ``(2) the potential usefulness of such data system to reduce 
    such administrative expenses;
        ``(3) any other methods which may be employed by schools, local 
    educational agencies or State educational agencies to reduce 
    administrative expenses and maximize the use of funds for functions 
    directly affecting student learning; and
        ``(4) if appropriate, steps which may be taken to assist 
    schools, local educational agencies and State educational agencies 
    to account for and reduce administrative expenses.
``SEC. 14205. 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 programs under part A of title IX of this Act, and 
    the education for homeless children and youth program under 
    subtitle B of title VII of the Stewart B. McKinney Homeless 
    Assistance Act, the amounts allotted to the Department of the 
    Interior under those programs.
        ``(2) Agreement.--(A) The Secretary and the Secretary of the 
    Interior shall enter into an agreement, consistent with the 
    requirements of the programs specified in paragraph (1), for the 
    distribution and use of those program funds under terms that the 
    Secretary determines best meet the purposes of those programs.
        ``(B) The agreement shall--
            ``(i) set forth the plans of the Secretary of the Interior 
        for the use of the amount transferred, the steps to be taken to 
        achieve the National Education Goals, and performance measures 
        to assess program effectiveness, including measurable goals and 
        objectives; and
            ``(ii) be developed in consultation with Indian tribes.
    ``(b) Administration.--The Department of the Interior may use not 
more than 1.5 percent of the funds consolidated under this section for 
such department's costs related to the administration of the funds 
transferred under this section.
``SEC. 14206. AVAILABILITY OF UNNEEDED PROGRAM FUNDS.
    ``(a) Unneeded Program Funds.--With the approval of its State 
educational agency, a local educational agency that determines for any 
fiscal year that funds under a covered program (other than part A of 
title I) are not needed for the purpose of that covered program, may 
use such funds, not to exceed five percent of the total amount of such 
local educational agency's funds under that covered program, for the 
purpose of another covered program.
    ``(b) Coordination of Services.--A local educational agency, 
individual school, or consortium of schools may use a total of not more 
than five percent of the funds such agency, school, or consortium, 
respectively, receives under this Act for the establishment and 
implementation of a coordinated services project in accordance with the 
requirements of title XI of this Act.

``PART C--COORDINATION OF PROGRAMS; CONSOLIDATED STATE AND LOCAL PLANS 
                            AND APPLICATIONS

``SEC. 14301. PURPOSE.

    ``It is the purpose of this part to improve teaching and learning 
by encouraging greater cross-program coordination, planning, and 
service delivery under this Act and enhanced integration of programs 
under this Act with educational activities carried out with State and 
local funds.
``SEC. 14302. OPTIONAL CONSOLIDATED STATE PLANS OR APPLICATIONS.
    ``(a) General Authority.--
        ``(1) Simplification.--In order to simplify application 
    requirements and reduce the burden for State educational agencies 
    under this Act, the Secretary, in accordance with subsection (b), 
    shall establish procedures and criteria under which a State 
    educational agency may submit a consolidated State plan or a 
    consolidated State application meeting the requirements of this 
    section for--
            ``(A) each of the covered programs in which the State 
        participates; and
            ``(B) the additional programs described in paragraph (2).
        ``(2) Additional programs.--A State educational agency may also 
    include in its consolidated State plan or consolidated State 
    application--
            ``(A) the Even Start program under part B of title I;
            ``(B) the Prevention and Intervention Programs for Youth 
        Who Are Neglected, Delinquent, or At-Risk of Dropping Out under 
        part D of title I;
            ``(C) programs under part A of title II of the Carl D. 
        Perkins Vocational and Applied Technology Education Act;
            ``(D) programs under the Goals 2000: Educate America Act;
            ``(E) programs under the School-to-Work Opportunities Act 
        of 1994; and
            ``(F) such other programs as the Secretary may designate.
        ``(3) Consolidated applications and plans.--A State educational 
    agency that submits a consolidated State plan or a consolidated 
    State application under this section shall not be required to 
    submit separate State plans or applications under any of the 
    programs to which the consolidated State plan or consolidated State 
    application under this section applies.
    ``(b) Collaboration.--
        ``(1) In general.--In establishing criteria and procedures 
    under this section, the Secretary shall collaborate with State 
    educational agencies and, as appropriate, with other State 
    agencies, local educational agencies, public and private nonprofit 
    agencies, organizations, and institutions, private schools, and 
    representatives of parents, students, and teachers.
        ``(2) Contents.--Through the collaborative process described in 
    subsection (b)(1), the Secretary shall establish, for each program 
    under the Act to which this section applies, the descriptions, 
    information, assurances, and other material required to be included 
    in a consolidated State plan or consolidated State application.
        ``(3) Necessary materials.--The Secretary shall require only 
    descriptions, information, assurances, and other materials that are 
    absolutely necessary for the consideration of the consolidated 
    State plan or consolidated State application.
``SEC. 14303. GENERAL APPLICABILITY OF STATE EDUCATIONAL AGENCY 
ASSURANCES.
    ``(a) Assurances.--A State educational agency that submits a 
consolidated State plan or consolidated State application under this 
Act, whether separately or under section 14302, shall have on file with 
the Secretary a single set of assurances, 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 
    organization, or in an Indian tribe if the law authorizing the 
    program provides for assistance to such entities; and
        ``(B) the public agency, nonprofit private agency, institution, 
    or organization, or Indian tribe will administer such funds and 
    property to the extent required by the authorizing law;
        ``(3) the State will adopt and use proper methods of 
    administering each such program, including--
            ``(A) the enforcement of any obligations imposed by law on 
        agencies, institutions, organizations, and other recipients 
        responsible for carrying out each program;
            ``(B) the correction of deficiencies in program operations 
        that are identified through audits, monitoring, or evaluation; 
        and
            ``(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 program; and
            ``(B) maintain such records, provide such information to 
        the Secretary, and afford access to the records as the 
        Secretary may find necessary to carry out the Secretary's 
        duties; and
        ``(7) before the plan or application was submitted to the 
    Secretary, the State has afforded a reasonable opportunity for 
    public comment on the plan or application and has considered such 
    comment.
    ``(b) GEPA Provision.--Section 441 of the General Education 
Provisions Act shall not apply to programs under this Act.

``SEC. 14304. ADDITIONAL COORDINATION.

    ``(a) Additional Coordination.--In order to explore ways for State 
educational agencies to reduce administrative burdens and promote the 
coordination of the education services of this Act with other health 
and social service programs administered by such agencies, the 
Secretary is directed to seek agreements with other Federal agencies 
(including the Departments of Health and Human Services, Justice, Labor 
and Agriculture) for the purpose of establishing procedures and 
criteria under which a State educational agency would submit a 
consolidated State plan or consolidated State application that meets 
the requirements of the covered programs.
    ``(b) Report.--The Secretary shall report to the relevant 
committees 6 months after the date of enactment of the Improving 
America's Schools Act of 1994.

``SEC. 14305. CONSOLIDATED LOCAL PLANS OR APPLICATIONS.

    ``(a) General Authority.--A local educational agency receiving 
funds under more than one covered program may submit plans or 
applications to the State educational agency under such programs on a 
consolidated basis.
    ``(b) Required Consolidated Plans or Applications.--A State 
educational agency that has submitted and had approved a consolidated 
State plan or application under section 14302 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 consolidated local plans or applications under 
such programs.
    ``(c) Collaboration.--A State educational agency shall collaborate 
with local educational agencies in the State in establishing procedures 
for the submission of the consolidated State plans or consolidated 
State applications under this section.
    ``(d) Necessary Materials.--The State educational agency shall 
require only descriptions, information, assurances, and other material 
that are absolutely necessary for the consideration of the local 
educational agency plan or application.

``SEC. 14306. OTHER GENERAL ASSURANCES.

    ``(a) Assurances.--Any applicant other than a State educational 
agency that submits a plan or application under this Act, whether 
separately or pursuant to section 14304, shall have on file with the 
State educational agency 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 agency, institution, 
    or organization, or Indian tribe will administer such funds and 
    property to the extent required by the authorizing statutes;
        ``(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, organizations, and other recipients 
        responsible for carrying out each program; and
            ``(B) the correction of deficiencies in program operations 
        that are identified through audits, 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 proper disbursement of, and 
    accounting for, Federal funds paid to such applicant under each 
    such program;
        ``(6) the applicant will--
            ``(A) make reports to the 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
            ``(B) maintain such records, provide such information, and 
        afford access to the records as the State educational agency or 
        the Secretary may find necessary to carry out the State 
        educational agency's or the Secretary's duties; and
        ``(7) before the application was submitted, the applicant 
    afforded a reasonable opportunity for public comment on the 
    application and has considered such comment.
    ``(b) GEPA Provision.--Section 442 of the General Education 
Provisions Act does not apply to programs under this Act.
``SEC. 14307. RELATIONSHIP OF STATE AND LOCAL PLANS TO PLANS UNDER THE 
GOALS 2000: EDUCATE AMERICA ACT.
    ``(a) State Plans.--
        ``(1) In general.--Each State plan submitted under the 
    following programs shall be integrated with each other and the 
    State's improvement plan, if any, either approved or being 
    developed, under title III of the Goals 2000: Educate America Act, 
    the School-to-Work Opportunities Act of 1994, and the Carl D. 
    Perkins Vocational and Applied Technology Education Act:
            ``(A) Part A of title I (helping disadvantaged children 
        meet high standards).
            ``(B) Part C of title I (education of migratory children).
            ``(C) Part D of title I (education of neglected, 
        delinquent, and at-risk youth).
            ``(D) Title II (professional development).
            ``(E) Title IV (safe and drug-free schools).
            ``(F) Title VI (innovative education program strategies).
            ``(G) Subpart 4 of part A of title IX (Indian education).
        ``(2) Special rule.--Notwithstanding any other provision of 
    this Act, if a requirement relating to a State plan referred to in 
    paragraph (1) is already satisfied by the approved State 
    improvement plan for such State under title III of the Goals 2000: 
    Educate America Act, the State plan referred to in paragraph (1) 
    need not separately address that requirement.
        ``(3) Amendment.--Any State plan referred to in paragraph (1) 
    may, if necessary, be submitted as an amendment to the State 
    improvement plan for such State under title III of the Goals 2000: 
    Educate America Act.
    ``(b) Local Plans.--
        ``(1) In general.--Each local educational agency plan submitted 
    under the following programs shall be integrated with each other 
    and its local improvement plan, if any, either approved or being 
    developed, under title III of the Goals 2000: Educate America Act:
            ``(A) Part A of title I (helping disadvantaged children 
        meet high standards).
            ``(B) Title II (professional development).
            ``(C) Title IV (safe and drug-free schools).
            ``(D) Subpart 4 of part A of title IX (Indian education).
            ``(E) Subpart 1 of part A of title VII (bilingual 
        education).
            ``(F) Title VI (innovative education program strategies).
            ``(G) Part C of title VII (emergency immigrant education).
        ``(2) Plan of operation.--Each plan of operation included in an 
    application submitted by an eligible entity under part B of title I 
    (Even Start) shall be consistent with, and promote the goals of, 
    the State and local improvement plans, either approved or being 
    developed, under title III of the Goals 2000: Educate America Act 
    or, if those plans are not approved or being developed, with the 
    State and local plans under sections 1111 and 1112.
        ``(3) Special rule.--Notwithstanding any other provision of 
    this Act, if a requirement relating to a local plan referred to in 
    paragraph (1) is already satisfied by the local educational 
    agency's approved local improvement plan under title III of the 
    Goals 2000: Educate America Act, the local plan referred to in 
    paragraph (1) need not separately address that requirement.
        ``(4) Submission.--Any local plan referred to in paragraph (1) 
    may, if necessary, be submitted as an amendment to the local 
    educational agency's improvement plan under title III of the Goals 
    2000: Educate America Act.

                           ``PART D--WAIVERS

``SEC. 14401. WAIVERS OF STATUTORY AND REGULATORY REQUIREMENTS.
    ``(a) In General.--Except as provided in subsection (c), the 
Secretary may waive any statutory or regulatory requirement of this Act 
for a State educational 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.--
        ``(1) In general.--A State educational agency, local 
    educational agency, or Indian tribe which desires a waiver shall 
    submit a waiver request to the Secretary that--
            ``(A) identifies the Federal programs affected by such 
        requested waiver;
            ``(B) describes which Federal requirements are to be waived 
        and how the waiving of such requirements will--
                ``(i) increase the quality of instruction for students; 
            or
                ``(ii) improve the academic performance of students;
            ``(C) if applicable, describes which similar State and 
        local requirements will be waived and how the waiving of such 
        requirements will assist the local educational agencies, Indian 
        tribes or schools, as appropriate, to achieve the objectives 
        described in clauses (i) and (ii) of subparagraph (B);
            ``(D) describes specific, measurable educational 
        improvement goals and expected outcomes for all affected 
        students;
            ``(E) describes the methods to be used to measure progress 
        in meeting such goals and outcomes; and
            ``(F) describes how schools will continue to provide 
        assistance to the same populations served by programs for which 
        waivers are requested.
        ``(2) Additional information.--Such requests--
            ``(A) may provide for waivers of requirements applicable to 
        State educational agencies, local educational agencies, Indian 
        tribes, and schools; and
            ``(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 Secretary; or
                ``(ii) by Indian tribes (on behalf of schools operated 
            by such tribes) to the Secretary.
        ``(3) General requirements.--(A) In the case of a waiver 
    request submitted by a State educational agency acting in its own 
    behalf, the State educational agency shall--
            ``(i) provide all interested local educational agencies in 
        the State with notice and a reasonable opportunity to comment 
        on the request;
            ``(ii) submit the comments to the Secretary; and
            ``(iii) provide notice and information to the public 
        regarding the waiver request in the manner that the applying 
        agency customarily provides similar notices and information to 
        the public.
        ``(B) In the case of a waiver request submitted by a local 
    educational agency that receives funds under this Act--
            ``(i) such request shall be reviewed by the State 
        educational agency and be accompanied 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 customarily provides 
        similar notices and information to the public.
    ``(c) Restrictions.--The Secretary shall not waive under this 
section any statutory or regulatory requirements 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;
        ``(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 C of 
    title X; or
        ``(9) the prohibitions regarding--
            ``(A) State aid in section 14502; or
            ``(B) use of funds for religious worship or instruction in 
        section 14507.
    ``(d) Duration and Extension of Waiver.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    duration of a waiver approved by the Secretary under this section 
    may be for a period not to exceed three years.
        ``(2) Extension.--The Secretary may extend the period described 
    in paragraph (1) if the Secretary determines that--
            ``(A) the waiver has been effective in enabling the State 
        or affected recipients to carry out the activities for which 
        the waiver was requested and the waiver has contributed to 
        improved student performance; and
            ``(B) such extension is in the public interest.
    ``(e) Reports.--
        ``(1) Local waiver.--A local educational agency that receives a 
    waiver under this section shall at the end of the second year for 
    which a waiver is received 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 instruction or the academic 
        performance of students.
        ``(2) State waiver.--A State educational agency that receives 
    reports required under paragraph (1) shall annually submit a report 
    to the Secretary that is based on such reports and contains such 
    information as the Secretary may require.
        ``(3) Indian tribe waiver.--An Indian tribe that receives a 
    waiver under this section shall annually 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 fiscal year 1997 and 
    each subsequent year, the Secretary shall submit to the Committee 
    on Education and Labor of the House of Representatives and the 
    Committee on Labor and Human Resources 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 instruction to students; 
            or
                ``(ii) improved the academic performance of students.
    ``(f) Termination of Waivers.--The Secretary shall terminate a 
waiver under this section if the Secretary determines that the 
performance of the State or other recipient affected by the waiver has 
been inadequate to justify a continuation of the waiver or if the 
waiver is no longer necessary to achieve its original purposes.
    ``(g) Publication.--A notice of the Secretary's decision 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 educational agencies, interested parties, including 
educators, parents, students, advocacy and civil rights organizations, 
and the public.

                      ``PART E--UNIFORM PROVISIONS

``SEC. 14501. 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 expenditures 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 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) 
    by falling below 90 percent of both the combined fiscal effort per 
    student and aggregate expenditures (using the measure most 
    favorable to such local agency).
        ``(2) Special rule.--No such lesser amount shall be used for 
    computing the effort required under subsection (a) for subsequent 
    years.
    ``(c) Waiver.--The Secretary may waive the requirements 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 resources of the 
    local educational agency.

``SEC. 14502. PROHIBITION REGARDING STATE AID.

    ``A State shall not take into consideration payments under this Act 
(other than under title VIII) 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.
``SEC. 14503. PARTICIPATION BY PRIVATE SCHOOL CHILDREN AND TEACHERS.
    ``(a) Private School Participation.--
        ``(1) In general.--Except as otherwise provided in this Act, to 
    the extent consistent with the number of eligible children in a 
    State educational agency, local educational agency, or educational 
    service agency or consortium of such agencies receiving financial 
    assistance under a program specified in subsection (b), who are 
    enrolled in private elementary and secondary schools in such agency 
    or consortium, such agency or consortium shall, after timely and 
    meaningful consultation with appropriate private school officials, 
    provide such children and their teachers or other educational 
    personnel, on an equitable basis, special educational services or 
    other benefits under such program.
        ``(2) Secular, neutral, and nonideological 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 educational personnel shall be equitable in 
    comparison to services and other benefits for public school 
    children, teachers, and other educational personnel participating 
    in such program.
        ``(4) Expenditures.--Expenditures for educational 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 or consortium 
    described in subsection (a)(1) 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 programs under--
            ``(A) part C of title I (migrant education);
            ``(B) title II (other than section 2103 and part C of such 
        title);
            ``(C) title VII;
            ``(D) title III (other than part B of such title) (Star 
        Schools); and
            ``(E) part A of title IV (other than section 4114).
        ``(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 or consortium of such agencies 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 identified;
            ``(B) what services will be offered;
            ``(C) how and where the services will be provided; and
            ``(D) how the services will be assessed.
        ``(2) Timing.--Such consultation shall occur before the agency 
    or consortium makes any decision that affects the opportunities of 
    eligible private school children, teachers, and other educational 
    personnel to participate in programs under this Act.
        ``(3) Discussion required.--Such consultation shall include a 
    discussion of service delivery mechanisms that the agency or 
    consortium could use to provide equitable services to eligible 
    private 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, or organization.
        ``(B) In the provision of such services, such employee, person, 
    association, agency, or organization 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 agency.
        ``(C) Funds used to provide services under this section shall 
    not be commingled with non-Federal funds.

``SEC. 14504. STANDARDS FOR BY-PASS.

    ``If, by reason of any provision of law, a State educational 
agency, local educational agency, educational service agency or 
consortium of such agencies is prohibited from providing for the 
participation in programs of children enrolled in, or teachers or other 
educational personnel from, private elementary and secondary schools, 
on an equitable basis, or if the Secretary determines that such agency 
or consortium has substantially failed or is unwilling to provide for 
such participation, as required by section 14503, the Secretary shall--
        ``(1) waive the requirements of that section for such agency or 
    consortium; and
        ``(2) arrange for the provision of equitable services to such 
    children, teachers, or other educational personnel through 
    arrangements that shall be subject to the requirements of this 
    section and of sections 14503, 14505, and 14506.
``SEC. 14505. COMPLAINT PROCESS FOR PARTICIPATION OF PRIVATE SCHOOL 
CHILDREN.
    ``(a) Procedures for Complaints.--The Secretary shall develop and 
implement written procedures for receiving, investigating, and 
resolving complaints from parents, teachers, or other individuals and 
organizations concerning violations of section 14503 by a State 
educational agency, local educational agency, educational service 
agency, or consortium of such agencies. Such individual or organization 
shall submit such complaint to the State educational agency for a 
written resolution by the State educational agency within a reasonable 
period of time.
    ``(b) Appeals to the Secretary.--Such resolution may be appealed by 
an interested party to the Secretary not later than 30 days after the 
State educational agency resolves the complaint or fails to resolve the 
complaint within a reasonable period of time. Such appeal shall be 
accompanied by a copy of the State educational agency's resolution, and 
a complete statement of the reasons supporting the appeal. The 
Secretary shall investigate and resolve each such appeal not later than 
120 days after receipt of the appeal.

``SEC. 14506. BY-PASS DETERMINATION PROCESS.

    ``(a) Review.--
        ``(1) In general.--(A) The Secretary shall not take any final 
    action under section 14504 until the State educational agency, 
    local educational agency, educational service agency, or consortium 
    of such agencies 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 Secretary to 
    show cause why that action should not be taken.
        ``(B) Pending final resolution of any investigation or 
    complaint that could result in a determination 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 or 
    consortium is dissatisfied with the Secretary's final action after 
    a proceeding under paragraph (1), such agency or consortium may, 
    within 60 days after notice of such action, file with the 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 forthwith 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 
    Secretary 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 substantial evidence.
        ``(4) Jurisdiction.--(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 agency or consortium and representatives of the 
affected private school children, teachers, or other educational 
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 14503 or any other provision of this Act.
    ``(c) Payment From State Allotment.--When the Secretary arranges 
for services pursuant to this section, the Secretary shall, after 
consultation with the appropriate public and private school officials, 
pay the cost of such services, including the administrative costs of 
arranging for those services, from the appropriate allocation or 
allocations under this Act.
    ``(d) Prior Determination.--Any by-pass determination by the 
Secretary under this Act as in effect on the day preceding the date of 
enactment of the Improving America's Schools Act of 1994 shall remain 
in effect to the extent the Secretary determines that such 
determination is consistent with the purpose of this section.
``SEC. 14507. 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. 14508. APPLICABILITY TO HOME SCHOOLS.

    ``Nothing in this Act shall be construed to affect home schools.
``SEC. 14509. GENERAL PROVISION REGARDING NONRECIPIENT NONPUBLIC 
SCHOOLS.
    ``Nothing in this Act shall be construed to permit, allow, 
encourage, or authorize any Federal control over any aspect 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 participation in programs or services under this Act.

``SEC. 14510. SCHOOL PRAYER.

    ``Any State or local educational agency that is adjudged by a 
Federal court of competent jurisdiction to have willfully violated a 
Federal court order mandating that such local educational agency remedy 
a violation of the constitutional right of any student with respect to 
prayer in public schools, in addition to any other judicial remedies, 
shall be ineligible to receive Federal funds under this Act until such 
time as the local educational agency complies with such order. Funds 
that are withheld under this section shall not be reimbursed for the 
period during which the local educational agency was in willful 
noncompliance.

``SEC. 14511. GENERAL PROHIBITIONS.

    ``(a) Prohibition.--None of the funds authorized under this Act 
shall be used--
        ``(1) to develop or distribute materials, or operate programs 
    or courses of instruction directed at 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 prevention education in 
    schools unless such instruction is age appropriate and includes the 
    health benefits of abstinence; or
        ``(4) to operate a program of condom distribution in schools.
    ``(b) Local Control.--Nothing in this section shall be construed 
to--
        ``(1) authorize an officer or employee of the Federal 
    Government to mandate, direct, review, or control a State, local 
    educational agency, or schools' instructional content, curriculum, 
    and related activities;
        ``(2) limit the application of the General Education Provisions 
    Act;
        ``(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.
``SEC. 14512. PROHIBITION ON FEDERAL MANDATES, DIRECTION, AND CONTROL.
    ``Nothing in this Act shall be construed to authorize an officer or 
employee of the Federal Government to mandate, direct, or control a 
State, local educational agency, or school's curriculum, program of 
instruction, or allocation of State or local resources, or mandate a 
State or any subdivision thereof to spend any funds or incur any costs 
not paid for under this Act.

``SEC. 14513. REPORT.

    ``The Secretary shall report to the Congress not later than 180 
days after the date of enactment of the Improving America's Schools Act 
of 1994 regarding how the Secretary shall ensure that audits conducted 
by Department employees of activities assisted under this Act comply 
with changes to this Act made by the Improving America's Schools Act of 
1994, particularly with respect to permitting children with similar 
educational needs to be served in the same educational settings, where 
appropriate.

``SEC. 14514. REQUIRED PARTICIPATION PROHIBITED.

    ``Notwithstanding any other provision of law, no State shall be 
required to participate in any program under the Goals 2000: Educate 
America Act, or to have content standards or student performance 
standards approved or certified under such Act, in order to receive 
assistance under this Act.

                        ``PART F--GUN POSSESSION

``SEC. 14601. GUN-FREE REQUIREMENTS.

    ``(a) Short Title.--This section may be cited as the `Gun-Free 
Schools Act of 1994'.
    ``(b) Requirements.--
        ``(1) In general.--Except as provided in paragraph (3), each 
    State receiving Federal funds under this Act shall have in effect a 
    State law requiring local educational agencies to expel from school 
    for a period of not less than one year a student who is determined 
    to have brought a weapon to a school under the jurisdiction of 
    local educational agencies 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.
        ``(2) Construction.--Nothing in this title shall be construed 
    to prevent a State from allowing a local educational agency that 
    has expelled a student from such a student's regular school setting 
    from providing educational services to such student in an 
    alternative setting.
        ``(3) Special rule.--(A) Any State that has a law in effect 
    prior to the date of enactment of the Improving America's Schools 
    Act of 1994 which is in conflict with the not less than one year 
    expulsion requirement described in paragraph (1) shall have the 
    period of time described in subparagraph (B) to comply with such 
    requirement.
        ``(B) The period of time shall be the period beginning on the 
    date of enactment of the Improving America's Schools Act and ending 
    one year after such date.
        ``(4) Definition.--For the purpose of this section, the term 
    `weapon' means a firearm as such term is defined in section 921 of 
    title 18, United States Code.
    ``(c) Special Rule.--The provisions of this section shall be 
construed in a manner consistent with the Individuals with Disabilities 
Education Act.
    ``(d) 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 Passistance--
        ``(1) an assurance that such local educational agency is in 
    compliance with the State law required by subsection (b); and
        ``(2) a description of the circumstances surrounding any 
    expulsions imposed under the State law required by subsection (b), 
    including--
            ``(A) the name of the school concerned;
            ``(B) the number of students expelled from such school; and
            ``(C) the type of weapons concerned.
    ``(e) Reporting.--Each State shall report the information described 
in subsection (c) to the Secretary on an annual basis.
    ``(f) Report to Congress.--Two years after the date of enactment of 
the Improving America's Schools Act of 1994, the Secretary shall report 
to Congress if any State is not in compliance with the requirements of 
this title.
``SEC. 14602. POLICY REGARDING CRIMINAL JUSTICE SYSTEM REFERRAL.
    ``(a) In General.--No funds shall be made available under this Act 
to any local educational agency unless such agency has a policy 
requiring referral to the criminal justice or juvenile delinquency 
system of any student who brings a firearm or weapon to a school served 
by such agency.
    ``(b) Definitions.--For the purpose of this section, the terms 
`firearm' and `school' have the same meaning given to such terms by 
section 921(a) of title 18, United States Code.

``SEC. 14603. DATA AND POLICY DISSEMINATION UNDER IDEA.

    ``The Secretary shall--
        ``(1) widely disseminate the policy of the Department in effect 
    on the date of enactment of the Improving America's Schools Act of 
    1994 with respect to disciplining children with disabilities;
        ``(2) collect data on the incidence of children with 
    disabilities (as such term is defined in section 602(a)(1) of the 
    Individuals With Disabilities Education Act) engaging in life 
    threatening behavior or bringing weapons to schools; and
        ``(3) submit a report to Congress not later than January 31, 
    1995, analyzing the strengths and problems with the current 
    approaches regarding disciplining children with disabilities.

                         ``PART G--EVALUATIONS

``SEC. 14701. EVALUATIONS.

    ``(a) Evaluations.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    Secretary is authorized to reserve not more than 0.50 percent of 
    the amount appropriated to carry out each program authorized under 
    this Act--
            ``(A) to carry out comprehensive evaluations of categorical 
        programs and demonstration projects, and studies of program 
        effectiveness, under this Act, and the administrative impact of 
        such programs on schools and local educational agencies in 
        accordance with subsection (b);
            ``(B) to evaluate the aggregate short- and long-term 
        effects and cost efficiencies across Federal programs under 
        this Act and related Federal preschool, elementary and 
        secondary programs under other Federal law; and
            ``(C) to strengthen the usefulness of grant recipient 
        evaluations for continuous program progress through improving 
        the quality, timeliness, efficiency, and utilization of program 
        information on program performance.
        ``(2) Special rule.--(A) Paragraph (1) shall not apply to any 
    program under title I.
        ``(B) If funds are made available under any program assisted 
    under this Act (other than a program under title I) for evaluation 
    activities, then the Secretary shall reserve no additional funds 
    pursuant to the authority in subsection (a)(1) to evaluate such 
    program, but shall coordinate the evaluation of such program with 
    the national evaluation described in subsection (b).
    ``(b) National Evaluations.--
        ``(1) In general.--The Secretary shall use the funds made 
    available under subsection (a) to carry out--
            ``(A) independent studies of categorical and demonstration 
        programs under this Act and the administrative impact of such 
        programs on schools and local educational agencies, that are 
        coordinated with research supported through the Office of 
        Educational Research and Improvement, using rigorous 
        methodological designs and techniques, including longitudinal 
        designs, control groups, and random assignment, as appropriate, 
        to determine--
                ``(i) the success of such programs in meeting the 
            measurable goals and objectives, through appropriate 
            targeting, quality services, and efficient administration, 
            and in contributing to achieving the National Education 
            Goals, with a priority on assessing program impact on 
            student performance;
                ``(ii) the short- and long-term effects of program 
            participation on program participants, as appropriate;
                ``(iii) the cost and efficiency of such programs;
                ``(iv) to the extent feasible, the cost of serving all 
            students eligible to be served under such programs;
                ``(v) specific intervention strategies and 
            implementation of such strategies that, based on theory, 
            research and evaluation, offer the promise of improved 
            achievement of program objectives;
                ``(vi) promising means of identifying and disseminating 
            effective management and educational practices;
                ``(vii) the effect of such programs on school and local 
            educational agencies' administrative responsibilities and 
            structure, including the use of local and State resources, 
            with particular attention to schools and agencies serving a 
            high concentration of disadvantaged students; and
                ``(viii) the effect of Federal categorical programs at 
            the elementary and secondary levels on the proliferation of 
            State categorical education aid programs and regulations, 
            including an evaluation of the State regulations that are 
            developed in response to Federal education laws;
            ``(B) in collaboration with the national assessment 
        conducted pursuant to section 1601, a comprehensive evaluation 
        of how the Federal Government has assisted the States to reform 
        their educational systems through the various education laws 
        enacted during the 103d Congress, which evaluation shall--
                ``(i) encompass the changes made in Federal programs 
            pursuant to the Improving America's Schools Act of 1994 as 
            well as in any other law enacted during the 103d Congress 
            that amended a Federal program assisting preschool, 
            elementary, or secondary education;
                ``(ii) encompass new initiatives such as initiatives 
            under the Goals 2000: Educate America Act, and the School-
            to-Work Opportunities Act of 1994, and be coordinated with 
            evaluations of such Acts;
                ``(iii) include a comprehensive review of the programs 
            developed under the Acts described in clauses (i) and (ii) 
            to determine such programs' overall effect on--

                    ``(I) the readiness of children for schooling;
                    ``(II) the improvement in educational attainment of 
                students in elementary and secondary education; and
                    ``(III) the improvement in skills needed by 
                students to obtain employment or pursue further 
                education upon completion of secondary school or 
                further education;

                ``(iv) include a comprehensive review of the programs 
            under the Acts described in clauses (i) and (ii) to 
            determine such programs' overall effect--

                    ``(I) on school reform efforts undertaken by 
                States;
                    ``(II) on efforts by States to adopt educational 
                standards to improve schooling for all children, to 
                align their curricula, teacher training, and 
                assessments with such standards, and to bring 
                flexibility to the rules governing how education is to 
                be provided; and
                    ``(III) on student populations that have been the 
                traditional beneficiaries of Federal assistance in 
                order to determine whether such population's 
                educational attainment has been improved as a result of 
                such programs;

                ``(v) evaluate how the National Assessment Governing 
            Board, the Advisory Council on Education Statistics, the 
            National Education Goals Panel, and the National Education 
            Statistics and Improvement Council (and any other Federal 
            board established to analyze, address, or approve education 
            standards and assessments) coordinate, interact, or 
            duplicate efforts to assist the States in reforming the 
            educational systems of States; and
                ``(vi) include a review of the programs under the Acts 
            described in clauses (i) and (ii) in such detail as the 
            Secretary deems appropriate, and may involve cooperation 
            with other Federal departments and agencies in order to 
            incorporate evaluations and recommendations of such 
            departments and agencies; and
            ``(C) a study of the waivers granted under section 14401, 
        which study shall include--
                ``(i) data on the total number of waiver requests that 
            were granted and the total number of such requests that 
            were denied, disaggregated by the statutory or regulatory 
            requirement for which the waivers were requested; and
                ``(ii) an analysis of the effect of waivers on 
            categorical program requirements and other flexibility 
            provisions in this Act, the School-to-Work Opportunities 
            Act of 1994, and the Goals 2000: Educate America Act, on 
            improvement in educational achievement of participating 
            students and on school and local educational agency 
            administrative responsibilities, structure, and resources 
            based on an appropriate sample of State educational 
            agencies, local educational agencies, schools, and tribes 
            receiving waivers.
            ``(D) a study of the waivers provided under section 1114 to 
        support schoolwide programs which shall include--
                ``(i) the extent to which schoolwide programs are 
            meeting the intent and purposes of any program for which 
            provisions were waived; and
                ``(ii) the extent to which the needs of all students 
            are being served by such programs particularly students who 
            would be eligible for assistance under any provisions 
            waived.
        ``(2) Independent panel.--The Secretary shall appoint an 
    independent panel to review the plan for the evaluation described 
    in paragraph (1), to advise the Secretary on such evaluation's 
    progress, and to comment, if the panel so wishes, on the final 
    report described in paragraph (3).
        ``(3) Report.--The Secretary shall submit a final report on the 
    evaluation described in this subsection by January 1, 1998, to the 
    Committee on Education and Labor of the House of Representatives 
    and to the Committee on Labor and Human Resources of the Senate.
    ``(c) Recipient Evaluation and Quality Assurance Improvement.--The 
Secretary is authorized to provide guidance, technical assistance, and 
model programs to recipients of assistance under this Act to strengthen 
information for quality assurance and performance information feedback 
at State and local levels. Such guidance and assistance shall promote 
the development, measurement and reporting of valid, reliable, timely 
and consistent performance indicators within a program in order to 
promote continuous program improvement. Nothing in this subsection 
shall be construed to establish a national data system.

                    ``PART H--SENSE OF THE CONGRESS

``SEC. 14801. SENSE OF CONGRESS TO INCREASE THE TOTAL SHARE OF FEDERAL 
SPENDING ON EDUCATION.
    ``(a) Findings.--The Congress finds that--
        ``(1) in order to increase our Nation's standard of living and 
    to increase the number of good jobs, the United States must 
    increase its productivity and ability to compete in the 
    international marketplace by improving the educational level of our 
    workforce;
        ``(2) although efforts are being made to establish higher 
    educational standards and goals, there is a substantial shortage of 
    resources to meet such standards and goals;
        ``(3) States and local communities are finding it increasingly 
    difficult to meet ever higher educational standards and goals, and 
    States will not be able to fund needed changes without Federal help 
    to reach such standards and goals;
        ``(4) the Federal Government has established many educational 
    programs but failed to provide adequate funding for such programs, 
    for example one such program provides education to our Nation's 
    disabled students and was established with a promise of 40 percent 
    Federal funding but currently receives only eight percent Federal 
    funding;
        ``(5) the annual shortfall in Federal education programs is 
    approximately half of the promised funding;
        ``(6) many needed educational improvements will not need 
    Federal funds, however, other suggested changes such as lengthened 
    school years, better pay, after-school activities, mentoring for 
    students at risk, programs for gifted students, and replacing 
    substandard buildings, will require substantial Federal assistance; 
    and
        ``(7) the Federal contribution to education is less than two 
    percent of the total Federal budget, and in order to make education 
    a national priority, the total percentage of Federal educational 
    funding should be increased by one percent each year over the next 
    eight years to reach 10 percent of the total Federal budget.
    ``(b) Sense of the Congress.--It is the sense of the Congress that 
the total share of the Federal spending on education should increase by 
at least one percent each year until such share reaches 10 percent of 
the total Federal budget.
``SEC. 14802. SENSE OF CONGRESS; REQUIREMENT REGARDING NOTICE.
    ``(a) Purchase of American-Made Equipment and Products.--In the 
case of any equipment or products that may be authorized to be 
purchased with financial assistance provided under this Act, it is the 
sense of the Congress that entities receiving such assistance should, 
in expending the assistance, purchase only American-made equipment and 
products.
    ``(b) Notice to Recipients of Assistance.--In providing financial 
assistance under this Act, the head of each Federal agency shall 
provide to each recipient of the assistance a notice describing the 
statement made in subsection (a) by the Congress.''.

      TITLE II--AMENDMENTS TO THE GENERAL EDUCATION PROVISIONS ACT

     PART A--APPLICABILITY OF THE GENERAL EDUCATION PROVISIONS ACT

SEC. 211. TITLE; APPLICABILITY; DEFINITIONS.

    Section 400 of the General Education Provisions Act (20 U.S.C. 1221 
et seq.) (hereafter in this title (other than part F) referred to as 
the ``Act'') is amended to read as follows:


                ``short title; applicability; definitions

    ``Sec. 400. (a) This title may be cited as the `General Education 
Provisions Act'.
    ``(b)(1) Except as otherwise provided, this title applies to each 
applicable program of the Department of Education.
    ``(2) Except as otherwise provided, this title does not apply to 
any contract made by the Department of Education.
    ``(c) As used in this title, the following terms have the following 
meanings:
        ``(1) The term `applicable program' means any program for which 
    the Secretary or the Department has administrative responsibility 
    as provided by law or by delegation of authority pursuant to law. 
    The term includes each program for which the Secretary or the 
    Department has administrative responsibility under the Department 
    of Education Organization Act or under Federal law effective after 
    the effective date of that Act.
        ``(2) The term `applicable statute' means--
            ``(A) the Act or the title, part, section, or any other 
        subdivision of an Act, as the case may be, that authorizes the 
        appropriation for an applicable program;
            ``(B) this title; and
            ``(C) any other statute that by its terms expressly 
        controls the administration of an applicable program.
        ``(3) The term `Department' means the Department of Education.
        ``(4) The term `Secretary' means the Secretary of Education.
    ``(d) Nothing in this title shall be construed to affect the 
applicability of title VI of the Civil Rights Act of 1964, title IX of 
the Education Amendments of 1972, title V of the Rehabilitation Act of 
1973, the Age Discrimination Act, or other statutes prohibiting 
discrimination, to any applicable program.''.

SEC. 212. REPEAL AND REDESIGNATION.

    (a) Repeals.--
        (1) Sections.--Sections 400A, 401, 402, 403, 406, 406A, 406B, 
    406C, 407, 413, 416, 419, 421, 423, 424, 426A, and 429 of the Act 
    are repealed.
        (2) Part.--Part D of the Act is repealed.
    (b) Redesignations.--
        (1) Sections.--Sections 408, 409, 411, 412, 414, 415, 417, 420, 
    421A, 422, 425, 426, 427, 428, 430, 431, 432, 433, 434, 435, 436, 
    437, 438, 439, and 440 of the Act are redesignated as sections 410, 
    411, 420, 421, 422, 423, 425, 426, 430, 431, 432, 433, 434, 435, 
    436, 437, 438, 439, 440, 441, 442, 443, 444, 445, and 446 of the 
    Act, respectively.
        (2) Part.--Part E of the Act is redesignated as part D of the 
    Act.
        (3) Cross references.--(A) Paragraph (6) of section 441(b) (as 
    redesignated by paragraph (1)) (20 U.S.C. 1232d(b)(6)) is amended 
    by striking ``437'' and inserting ``443''.
        (B) Paragraph (4) of section 442(b) of the Act (as redesignated 
    by paragraph (1)) (20 U.S.C. 1232e(b)(4)) is amended by striking 
    ``437'' and inserting ``443''.
        (C) Subsection (a) of section 446 of the Act (as redesignated 
    by paragraph (1)) (20 U.S.C. 1232i(a)) is amended by striking 
    ``438(b)(1)(D)'' and inserting ``444(b)(1)(D)''.
        (D) Subsection (a) of section 458 of the Act (20 U.S.C. 
    1234g(a)) is amended by striking ``435(a)'' and inserting 
    ``441(a)''.

                  PART B--THE DEPARTMENT OF EDUCATION

SEC. 221. NEW HEADING FOR PART A.

    The heading for part A of the Act is amended to read as follows:

         ``Part A--Functions of the Department of Education''.

SEC. 222. GENERAL AUTHORITY OF THE SECRETARY.

    Section 410 of the Act (as redesignated by section 212(b)(1)) (20 
U.S.C. 1221e-3) is amended to read as follows:


                   ``general authority of the secretary

    ``Sec. 410. The Secretary, in order to carry out functions 
otherwise vested in the Secretary by law or by delegation of authority 
pursuant to law, and subject to limitations as may be otherwise imposed 
by law, is authorized to make, promulgate, issue, rescind, and amend 
rules and regulations governing the manner of operation of, and 
governing the applicable programs administered by, the Department.''.

                 PART C--APPROPRIATIONS AND EVALUATIONS

SEC. 231. FORWARD FUNDING.

    Section 420 of the Act (as redesignated by section 212(b)(1)) (20 
U.S.C. 1223) is amended to read as follows:


                            ``forward funding

    ``Sec. 420. (a) To the end of affording the responsible Federal, 
State, and local officers adequate notice of available Federal 
financial assistance for carrying out ongoing education activities and 
projects, appropriations for grants, contracts, or other payments under 
any applicable program are authorized to be included in the 
appropriations Act for the fiscal year preceding the fiscal year during 
which such activities and projects shall be carried out.
    ``(b) In order to effect a transition to the timing of 
appropriation action authorized by subsection (a), the application of 
this section may result in the enactment, in a fiscal year, of separate 
appropriations for an applicable program (whether in the same 
appropriations Act or otherwise) for two consecutive fiscal years.''.

SEC. 232. AVAILABILITY OF APPROPRIATIONS.

    (a) Amendment to Heading.--The heading for section 421 of the Act 
(as redesignated by section 212(b)(1)) (20 U.S.C. 1225) is amended to 
read as follows:


   ``availability of appropriations on academic or school-year basis; 
              additional period for obligation of funds''.

    (b) Amendment to Text.--Section 421 of the Act (20 U.S.C. 1225) is 
further amended--
        (1) in subsection (a)--
            (A) by striking ``to educational agencies or 
        institutions'';
            (B) by striking ``expenditure'' and inserting 
        ``obligation''; and
            (C) by striking ``agency or institution concerned'' and 
        inserting ``recipient'';
        (2) in subsection (b), by striking ``(b) Notwithstanding'' and 
    inserting ``(b)(1) Notwithstanding''; and
        (3) in subsection (c), by striking ``section 3679(d)(2) of the 
    Revised Statutes'' and inserting ``section 1341(a) of title 31, 
    United States Code''.

SEC. 233. CONTINGENT EXTENSION OF PROGRAMS.

    Section 422 of the Act (as redesignated by section 212(b)(1)) (20 
U.S.C. 1226a) is amended to read as follows:


                    ``contingent extension of programs

    ``Sec. 422. (a) The authorization of appropriations for, or 
duration of, an applicable program shall be automatically extended for 
one additional fiscal year unless Congress, in the regular session that 
ends prior to the beginning of the terminal fiscal year of such 
authorization or duration, has passed legislation that becomes law and 
extends or repeals the authorization or duration of such program.
    ``(b) The amount authorized to be appropriated for the period of 
automatic extension under subsection (a) of an applicable program shall 
be the amount authorized to be appropriated for such program for the 
terminal fiscal year of the applicable program.
    ``(c) If the Secretary is required, in the terminal fiscal year of 
an applicable program, to carry out certain acts or make certain 
determinations that are necessary for the continuation of such program, 
such acts or determinations shall be required to be carried out or made 
during the period of automatic extension under subsection (a).
    ``(d) This section shall not apply to the authorization of 
appropriations for a commission, council, or committee which is 
required by an applicable statute to terminate on a date certain.''.

SEC. 234. STATE REPORTS.

    Subpart 2 of part B of the Act (20 U.S.C. 1226b et seq.) is amended 
by inserting before section 425 (as redesignated by section 212(b)(1)) 
the following new section:


            ``responsibility of states to furnish information

    ``Sec. 424. (a) Each State educational agency shall submit to the 
Secretary a report on or before March 15 of every second year. Each 
such report shall include--
        ``(1) information with respect to the uses of Federal funds in 
    such State in the two preceding fiscal years under any applicable 
    program under the jurisdiction of the State educational agency; and
        ``(2) information with respect to the uses of Federal funds in 
    such State in the two preceding fiscal years under any Federal 
    program administered by the State that provided grants or contracts 
    to a local educational agency in the State.
    ``(b) Each report submitted under subsection (a) shall--
        ``(1) list, with respect to each program for which information 
    is provided, all grants made to and contracts entered into with 
    local educational agencies and other public and private agencies 
    and institutions within the State during each fiscal year 
    concerned;
        ``(2) analyze the information included in the report by local 
    educational agency and by program;
        ``(3) include the total amount of funds available to the State 
    under each such program for each fiscal year concerned; and
        ``(4) be made readily available by the State to local 
    educational agencies and institutions within the State and to the 
    public.
    ``(c) If the Secretary does not receive a report by the date 
required under subsection (a), or receives an incomplete report, the 
Secretary, not later than 30 days after such report is required to be 
submitted, shall take all reasonable measures to obtain the delinquent 
or incomplete information from the State educational agency.
    ``(d) When the Secretary receives a report required under 
subsection (a), the Secretary shall provide such information to the 
National Center for Education Statistics, and shall make such 
information available, at a reasonable cost, to any individual who 
requests such information.
    ``(e) The Secretary shall consult with the Speaker and Minority 
Leader of the House of Representatives and the Majority and Minority 
Leaders of the Senate regarding the costs and feasibility of making the 
information described in subsection (a) available as part of a 
telecommunications network that is readily accessible to every member 
of Congress and other interested parties.
    ``(f) On or before August 15 of each year in which reports are 
submitted under subsection (a), the Secretary shall submit a report to 
the Committee on Education and Labor of the House of Representatives 
and the Committee on Labor and Human Resources of the Senate. Such 
report shall include--
        ``(1) an analysis of the content and data quality of such 
    reports;
        ``(2) a compilation of statistical data derived from such 
    reports; and
        ``(3) information obtained by the Secretary with respect to--
            ``(A) direct grants made to local educational agencies by 
        the Federal Government; and
            ``(B) contracts entered into between such agencies and the 
        Federal Government.''.

SEC. 235. BIENNIAL EVALUATION REPORT.

    Section 425 of the Act (as redesignated by section 212(b)(1)) (20 
U.S.C. 1226c) is amended to read as follows:


                       ``biennial evaluation report

    ``Sec. 425. Not later than March 31, 1995, and every two years 
after such date, the Secretary shall transmit to the Committee on 
Education and Labor of the House of Representatives and the Committee 
on Labor and Human Resources of the Senate an evaluation report on the 
effectiveness of applicable programs in achieving such programs' 
legislated intent and purposes during the two preceding fiscal years. 
Such report shall--
        ``(1) contain program profiles that include legislative 
    citations, multiyear funding histories, and legislated purposes;
        ``(2) contain recent information on the progress being made 
    toward the achievement of program objectives, including listings of 
    program performance indicators, data from performance measurement 
    based on the indicators, and information on the costs and benefits 
    of the applicable programs being evaluated;
        ``(3) address significant program activities, such as 
    initiatives for program improvement, regulations, and program 
    monitoring and evaluation;
        ``(4) list the principal analyses and studies supporting the 
    major conclusions in such report;
        ``(5) be prepared in concise summary form with necessary 
    detailed data and appendixes, including available data to indicate 
    the effectiveness of the programs and projects by the race, sex, 
    disability and age of beneficiaries of such programs and projects; 
    and
        ``(6) include the results of the program evaluations conducted 
    in accordance with section 14701 of the Elementary and Secondary 
    Education Act of 1965.''.
    SEC. 236. EQUITY FOR STUDENTS, TEACHERS, AND OTHER PROGRAM 
      BENEFICIARIES.
    Subpart 2 of part B of the Act (20 U.S.C. 1226b et seq.) is further 
amended by inserting after section 426 (as redesignated by section 
212(b)(1)) the following new section:


     ``EQUITY FOR STUDENTS, TEACHERS, AND OTHER PROGRAM BENEFICIARIES

    ``Sec. 427. (a) The purpose of this section is to assist the 
Department in implementing the Department's mission to ensure equal 
access to education and to promote educational excellence throughout 
the Nation, by--
        ``(1) ensuring equal opportunities to participate for all 
    eligible students, teachers, and other program beneficiaries in any 
    project or activity carried out under an applicable program; and
        ``(2) promoting the ability of such students, teachers, and 
    beneficiaries to meet high standards.
    ``(b) The Secretary shall require each applicant for assistance 
under an applicable program (other than an individual) to develop and 
describe in such applicant's application the steps such applicant 
proposes to take to ensure equitable access to, and equitable 
participation in, the project or activity to be conducted with such 
assistance, by addressing the special needs of students, teachers, and 
other program beneficiaries in order to overcome barriers to equitable 
participation, including barriers based on gender, race, color, 
national origin, disability, and age.
    ``(c) The Secretary may establish criteria and provide technical 
assistance for meeting the requirements of this section.
    ``(d) Nothing in this section shall be construed to alter in any 
way the rights or responsibilities established under the laws cited in 
section 400(d) of this Act.''.

SEC. 237. COORDINATION.

    Subpart 2 of part B of the Act (20 U.S.C. 1226b et seq.) is further 
amended by adding at the end the following new section:


                              ``coordination

    ``Sec. 428. The National Assessment Governing Board, the Advisory 
Council on Education Statistics, the National Education Goals Panel, 
the National Education Standards and Improvement Council, and any other 
board established to analyze, address, or approve education content or 
student performance standards and assessments shall coordinate and 
interact with one another in order to ensure that each such entity does 
not duplicate activities to assist the States in reforming their 
educational systems.''.

SEC. 238. DISCLOSURE REQUIREMENTS.

    Subpart 2 of part B of the Act (20 U.S.C. 1226b) is further amended 
by inserting after section 428 (as added by section 237) the following 
new section:


                        ``disclosure requirements

    ``Sec. 429. (a) In General.--Each educational organization, prior 
to enrolling a minor and prior to accepting funds for the cost of a 
minor's participation in an educational program operated by such 
organization, shall disclose the following information in written form 
to the minor or the minor's parent.
        ``(1) Method of solicitation and selection.--The method of 
    solicitation and selection of participants in the educational 
    program, including--
            ``(A) the origin of any mailing list used for such 
        solicitation and selection;
            ``(B) any recruitment through a local school official, 
        teacher, or school personnel, including any compensation or 
        other benefit offered to such official, teacher, or personnel 
        for the recommendation of a minor for participation in the 
        educational program;
            ``(C) any open enrollment activity, including the method of 
        outreach; and
            ``(D) any cooperation with, or sponsorship by, a membership 
        organization, including a description of the cooperation or 
        sponsorship and the name of each such organization.
        ``(2) Cost and fees.--Information regarding the cost of the 
    educational program and information regarding the distribution of 
    any enrollment fee, including--
            ``(A) the amount paid for, and the percentage of the total 
        educational program cost of, each feature of the educational 
        program, including--
                ``(i) food;
                ``(ii) lodging;
                ``(iii) transportation;
                ``(iv) program staffing;
                ``(v) textbooks, syllabi, or other scholastic 
            educational program materials;
                ``(vi) speaker fees; and
                ``(vii) administrative expenses, including expenses 
            related to--

                    ``(I) the preparation of nonscholastic educational 
                program materials;

                    ``(II) the provision of financial assistance;
                    ``(III) mailing list rental or other recruitment 
                activity; and
                    ``(IV) administrative salaries and consulting fees;

            ``(B) the identity of the organization or business 
        providing each of the features described in clauses (i) through 
        (vii) of subparagraph (A); and
            ``(C) the nature of any relationship of any board member, 
        officer, or employee of the educational organization to any 
        organization or business described in subparagraph (B), 
        including the salary or other compensation paid by such 
        organization or business to such board member, officer, or 
        employee.
    ``(b) Nondiscriminatory Enrollment and Service Policy.--
        ``(1) In general.--Each educational organization shall include 
    a verifiable statement in all enrollment or recruitment material 
    that the educational organization does not--
            ``(A) fail or refuse to hire, or discharge, any individual, 
        or otherwise discriminate against any individual with respect 
        to compensation, terms, conditions, or privileges of 
        employment; or
            ``(B) exclude any student from participation in an 
        educational program, discriminate against any student in 
        providing the benefits associated with such program (including 
        any scholarship or financial assistance, and use of any 
        facility), or subject the student to discrimination under such 
        program, on the basis of race, disability, or residence in a 
        low-income area.
        ``(2) Construction.--Nothing in this subsection shall be 
    construed to entitle a student to--
            ``(A) participation in an educational program or any 
        benefit associated with such program; or
            ``(B) a waiver of any fee charged for such participation or 
        benefit.
    ``(c) Enforcement.--The Secretary shall--
        ``(1)(A) widely disseminate information about the requirements 
    of this section to State and local school officials and parents; 
    and
        ``(B) require educational organizations to submit appropriate 
    information or assurances regarding such organizations' compliance 
    with this section; and
        ``(2) take whatever other steps the Secretary determines are 
    appropriate to enforce this section, including--
            ``(A) promulgating regulations;
            ``(B) establishing a complaint process;
            ``(C) referring complaints to the relevant Federal, State, 
        or local authorities for appropriate action;
            ``(D) alerting educational agencies, schools, and parents 
        to the practices of educational organizations that violate the 
        provisions of this section; and
            ``(E) imposing civil fines (not to exceed $1,000 per 
        violation) on educational organizations that knowingly violate 
        this section.
    ``(d) Definitions.--As used in this section:
        ``(1) Disability.--The term `disability' has the same meaning 
    given to such term by section 3(2) of the Americans with 
    Disabilities Act of 1990.
        ``(2) Educational organization.--(A) Except as provided in 
    subparagraphs (B) and (C), the term `educational organization' 
    means any organization or entity that--
            ``(i) provides an educational program for a fee; and
            ``(ii) recruits students through means such as commercial 
        media, direct mailings, school recruitment programs, school 
        administrators, teachers or staff, or current or former 
        participants in an educational program offered by such 
        organization or entity.
        ``(B) The definition in subparagraph (A) shall not include--
            ``(i) a local educational agency, State educational agency, 
        a State department of education, or an elementary or secondary 
        school as defined by the Elementary and Secondary Education Act 
        of 1965;
            ``(ii) an institution of higher education as defined by 
        section 1201(a) of the Higher Education Act of 1965; or
            ``(iii) a local organization sponsored by an elementary or 
        secondary school, a recreational organization, an entertainment 
        organization, a local sports activity group, or a social club.
        ``(C) For the purpose of subsection (a) only, such term does 
    not include an organization or entity that provides an educational 
    program if such organization or entity--
            ``(i) recruits, for participation in such program, solely 
        through a local school official; and
            ``(ii) does not offer a local school official, teacher, or 
        other school personnel compensation (other than compensation 
        for actual expenses incurred in performing chaperon activities 
        or for participating in separate, professionally-staffed 
        teacher training and technical assistance seminars and 
        workshops related to such program) or any other benefit for 
        such recruitment.
        ``(3) Educational program.--(A) Except as provided in 
    subparagraph (B), the term `educational program' means a special 
    honors program, seminar, citizenship experience, government study 
    program, educational vacation, student exchange program, or other 
    educational experience or honor--
            ``(i) that is generally directed toward minors or secondary 
        school students;
            ``(ii) for which a tuition or enrollment fee is charged;
            ``(iii) that is offered away from a student's regular place 
        of school attendance;
            ``(iv) that includes not less than one supervised night 
        away from home; and
            ``(v) that is intended to enhance a student's regular 
        course of study.
        ``(B) Such term does not include a recreational program, or a 
    social or religious activity.
        ``(4) Local school official.--The term `local school official' 
    means the highest administrative official serving a school 
    district, or such individual's designee.
        ``(5) Minor.--The term `minor' means an individual who has not 
    attained the age of 18 years.
        ``(6) Membership organization.--The term `membership 
    organization' includes any organization that maintains a membership 
    list or collects dues or membership fees from its members.
        ``(7) Recreational organization.--The term `recreational 
    organization' includes any organization or entity that has as its 
    primary function pleasure, amusement, or sports activities.
        ``(8) Recreational program.--The term `recreational program' 
    includes any activity or service that is intended as an 
    entertainment pastime.''.

              PART D--ADMINISTRATION OF EDUCATION PROGRAMS

SEC. 241. JOINT FUNDING OF PROGRAMS.

    Section 430 of the Act (as redesignated by section 212(b)(1)) (20 
U.S.C. 1231) is amended to read as follows:


                       ``joint funding of programs

    ``Sec. 430. (a)(1) The Secretary is authorized to enter into 
arrangements with other Federal agencies to jointly carry out projects 
of common interest, to transfer to such agencies funds appropriated 
under any applicable program, and to receive and use funds from such 
agencies, for projects of common interest.
    ``(2) Funds transferred or received pursuant to paragraph (1) shall 
be used only in accordance with the statutes authorizing the 
appropriation of such funds, and shall be made available by contract or 
grant only to recipients eligible to receive such funds under such 
statutes.
    ``(3) If the Secretary enters into an agreement under this 
subsection for the administration of a project, the agency 
administering the project shall use such agency's procedures to award 
contracts or grants and to administer such awards, unless the parties 
to the agreement specify the use of procedures of another agency that 
is a party to the agreement.
    ``(4) If the Secretary has entered into an agreement authorized 
under this subsection and the Secretary and the heads of the other 
agencies participating in the agreement determine that joint funding is 
necessary to address a special need consistent with the purposes and 
authorized activities of each program that provides funding under the 
joint project, the Secretary and the heads of the other participating 
agencies may develop a single set of criteria for the jointly funded 
project and require each applicant for such project to submit a single 
application for review by the participating agencies.
    ``(b) The Secretary may develop the criteria for, and require the 
submission of, joint applications under two or more applicable programs 
under which funds are awarded on a competitive basis, and may jointly 
review and approve such applications separately from other applications 
under such programs, when the Secretary determines that such joint 
awards are necessary to address a special need consistent with the 
purposes and authorized activities of each such program. Any applicant 
for such a joint award shall meet the eligibility requirements of each 
such program.
    ``(c) The Secretary may not construe the provisions of this section 
to take precedence over a limitation on joint funding contained in an 
applicable statute.
    ``(d)(1) The Secretary shall provide notice to the Committee on 
Education and Labor of the House of Representatives and to the 
Committee on Labor and Human Resources of the Senate of each joint 
funding agreement made with other Federal agencies not later than 60 
days after the making of such agreements.
    ``(2) Such notice shall include--
        ``(A) a description of the purpose and objectives of the joint 
    funding arrangement;
        ``(B) the amounts and sources, by program, of the funds 
    dedicated to such arrangement; and
        ``(C) the criteria developed to govern the award of contracts 
    and grants.''.

SEC. 242. COLLECTION AND DISSEMINATION OF INFORMATION.

    Section 431 of the Act (as redesignated by section 212(b)(1)) (20 
U.S.C. 1231a) is amended to read as follows:


              ``COLLECTION AND DISSEMINATION OF INFORMATION

    ``Sec. 422. The Secretary shall--
        ``(1) prepare and disseminate to State and local educational 
    agencies and institutions information concerning applicable 
    programs, and cooperate with other Federal officials who administer 
    programs affecting education in disseminating information 
    concerning such programs;
        ``(2) inform the public regarding federally supported education 
    programs; and
        ``(3) collect data and information on applicable programs for 
    the purpose of obtaining objective measurements of the 
    effectiveness of such programs in achieving the intended purposes 
    of such programs.''.

SEC. 243. REVIEW OF APPLICATIONS.

    Section 432 of the Act (as redesignated by section 212(b)(1)) (20 
U.S.C. 1231b-2) is amended--
        (1) in subsection (a)--
            (A) by striking ``Commissioner'' and inserting 
        ``Secretary'';
            (B) by striking ``and in the case of the program provided 
        for in title I of the Elementary and Secondary Education Act of 
        1965,'';
            (C) in the third sentence by inserting a comma after ``the 
        hearing''; and
            (D) in the fourth sentence--
                (i) by striking the comma after ``guidelines''; and
                (ii) by inserting a comma after ``program'';
        (2) in subsection (b), by striking ``Commissioner'' each place 
    such term appears and inserting ``Secretary''; and
        (3) in subsection (d)--
            (A) by striking ``Commissioner'' each place such term 
        appears and inserting ``Secretary''; and
            (B) by inserting before the period ``or issue such other 
        orders as the Secretary may deem appropriate to achieve such 
        compliance''.

SEC. 244. PARENTAL INVOLVEMENT AND DISSEMINATION.

    The matter preceding paragraph (1) of section 434 of the Act (as 
redesignated by section 212(b)(1)) (20 U.S.C. 1231d) is amended--
        (1) in the first sentence--
            (A) by striking ``Commissioner'' and inserting 
        ``Secretary''; and
            (B) by striking ``he'' and inserting ``the Secretary''; and
        (2) in the second sentence by inserting ``is made'' after 
    ``such determination''.

SEC. 245. USE OF FUNDS WITHHELD.

    Section 435 of the Act (as redesignated by section 212(b)(1)) (20 
U.S.C. 1231e) is amended to read as follows:


                         ``USE OF FUNDS WITHHELD

    ``Sec. 435. (a) At any time that the Secretary makes an allotment 
or reallotment to any State under any applicable program, the Secretary 
shall reduce such allotment or reallotment by such amount as the 
Secretary determines such allotment or reallotment would have been 
reduced, had the data on which such allotment or reallotment is based 
excluded all data relating to local educational agencies of the State 
that, on the date of the Secretary's action, are ineligible to receive 
the Federal financial assistance involved because of failure to comply 
with title VI of the Civil Rights Act of 1964, title IX of the 
Education Amendments of 1972, section 504 of the Rehabilitation Act of 
1973, or the Age Discrimination Act of 1975.
    ``(b) The Secretary may use any funds withheld under subsection 
(a)--
        ``(1) to increase the allotments or reallotments of local 
    educational agencies within the State that are not described in 
    subsection (a), or the allotments or reallotment of all States, in 
    accordance with the Federal law governing the program; or
        ``(2) for grants to local educational agencies of that State in 
    accordance with section 405 of the Civil Rights Act of 1964, or for 
    any other program administered by the Department that is designed 
    to enhance equity in education or redress discrimination on the 
    basis of race, color, national origin, sex, age, or disability.''.

SEC. 246. APPLICATIONS.

    Section 436 of the Act (as redesignated by section 212(b)(1)) (20 
U.S.C. 1231g) is amended--
        (1) in subsection (a), by striking ``for three fiscal years'' 
    and inserting ``for more than one fiscal year''; and
        (2) by striking ``Commissioner'' each place such term appears 
    and inserting ``Secretary''.

SEC. 247. REGULATIONS.

    Section 437 of the Act (as redesignated by section 212(b)(1)) (20 
U.S.C. 1232) is amended to read as follows:


                              ``regulations

    ``Sec. 437. (a) For the purpose of this section, the term 
`regulation' means any generally applicable rule, regulation, 
guideline, interpretation, or other requirement that--
        ``(1) is prescribed by the Secretary or the Department; and
        ``(2) has legally binding effect in connection with, or 
    affecting, the provision of financial assistance under any 
    applicable program.
    ``(b) Regulations shall contain, immediately following each 
substantive provision of such regulations, citations to the particular 
section or sections of statutory law or other legal authority on which 
such provision is based.
    ``(c) All regulations shall be uniformly applied and enforced 
throughout the 50 States.
    ``(d) The exemption for public property, loans, grants and benefits 
in section 553(a)(2) of title 5, United States Code, shall apply only 
to regulations--
        ``(1) that govern the first grant competition under a new or 
    substantially revised program authority as determined by the 
    Secretary; or
        ``(2) where the Secretary determines that the requirements of 
    this subsection will cause extreme hardship to the intended 
    beneficiaries of the program affected by such regulations.
    ``(e) Not later than 60 days after the date of enactment of any 
Act, or any portion of any Act, affecting the administration of any 
applicable program, the Secretary shall submit to the Committee on 
Education and Labor of the House of Representatives and the Committee 
on Labor and Human Resources of the Senate a schedule in accordance 
with which the Secretary plans to promulgate final regulations that the 
Secretary determines are necessary to implement such Act or portion of 
such Act. Such schedule shall provide that all such final regulations 
shall be promulgated within 360 days after the date of enactment of 
such Act or portion of such Act.
    ``(f) Concurrently with the publication of any final regulations, 
the Secretary shall transmit a copy of such final regulations to the 
Speaker of the House of Representatives and the President pro tempore 
of the Senate.''.

SEC. 248. RECORDS; REDUCTION IN RETENTION REQUIREMENTS.

    Section 443 of the Act (as redesignated by section 212(b)(1)) (20 
U.S.C. 1232f) is amended--
        (1) in subsection (a)--
            (A) by striking ``grant, subgrant, contract, subcontract, 
        loan, or other arrangement (other than procurement contracts 
        awarded by an administrative head of an educational agency)'' 
        and inserting ``grant, subgrant, cooperative agreement, loan, 
        or other arrangement'';
            (B) by inserting ``financial or programmatic'' before 
        ``audit.''; and
            (C) in the last sentence, by striking ``five'' and 
        inserting ``three''; and
        (2) in subsection (b), by striking ``to any records of a 
    recipient which may be related, or pertinent to, the grants, 
    subgrants, contracts, subcontracts, loans, or other arrangements'' 
    and inserting ``to any records maintained by a recipient that may 
    be related, or pertinent to, grants, subgrants, cooperative 
    agreements, loans, or other arrangements''.

SEC. 249. PRIVACY RIGHTS.

    Section 444 of the Act (as redesignated by section 212(b)(1)) (20 
U.S.C. 1232g) is amended--
        (1) in subsection (a)--
            (A) in paragraph (1)--
                (i) by redesignating subparagraphs (B) and (C) as 
            subparagraphs (C) and (D), respectively;
                (ii) by inserting after subparagraph (A) the following 
            new subparagraph:
            ``(B) No funds under any applicable program shall be made 
        available to any State educational agency (whether or not that 
        agency is an educational agency or institution under this 
        section) that has a policy of denying, or effectively prevents, 
        the parents of students the right to inspect and review the 
        education records maintained by the State educational agency on 
        their children who are or have been in attendance at any school 
        of an educational agency or institution that is subject to the 
        provisions of this section.'';
                (iii) in clause (iii) of subparagraph (C) (as 
            redesignated by clause (i)), by striking ``(C)'' and 
            inserting ``(D)''; and
                (iv) in subparagraph (D) (as redesignated by clause 
            (i)), by striking ``(B)'' and inserting ``(C)''; and
            (B) in paragraph (2), by striking ``or other rights'' and 
        inserting ``rights'';
        (2) in subsection (b)--
            (A) in paragraph (1)--
                (i) in subparagraph (A), by inserting ``, including the 
            educational interests of the child for whom consent would 
            otherwise be required'' before the semicolon;
                (ii) by amending subparagraph (E) to read as follows:
        ``(E) State and local officials or authorities to whom such 
    information is specifically allowed to be reported or disclosed 
    pursuant to State statute adopted--
            ``(i) before November 19, 1974, if the allowed reporting or 
        disclosure concerns the juvenile justice system and such 
        system's ability to effectively serve the student whose records 
        are released, or
            ``(ii) after November 19, 1974, if--
                ``(I) the allowed reporting or disclosure concerns the 
            juvenile justice system and such system's ability to 
            effectively serve, prior to adjudication, the student whose 
            records are released; and
                ``(II) the officials and authorities to whom such 
            information is disclosed certify in writing to the 
            educational agency or institution that the information will 
            not be disclosed to any other party except as provided 
            under State law without the prior written consent of the 
            parent of the student.'';
                (iii) in subparagraph (H), by striking ``and'' after 
            the semicolon;
                (iv) in subparagraph (I), by striking the period and 
            inserting ``; and''; and
                (v) by adding at the end the following new 
            subparagraph:
            ``(J)(i) the entity or persons designated in a Federal 
        grand jury subpoena, in which case the court shall order, for 
        good cause shown, the educational agency or institution (and 
        any officer, director, employee, agent, or attorney for such 
        agency or institution) on which the subpoena is served, to not 
        disclose to any person the existence or contents of the 
        subpoena or any information furnished to the grand jury in 
        response to the subpoena; and
            ``(ii) the entity or persons designated in any other 
        subpoena issued for a law enforcement purpose, in which case 
        the court or other issuing agency may order, for good cause 
        shown, the educational agency or institution (and any officer, 
        director, employee, agent, or attorney for such agency or 
        institution) on which the subpoena is served, to not disclose 
        to any person the existence or contents of the subpoena or any 
        information furnished in response to the subpoena.'';
            (B) in paragraph (2)--
                (i) in the matter preceding subparagraph (A), by 
            striking the period and inserting ``, unless--''; and
                (ii) in subparagraph (B), by inserting ``except as 
            provided in paragraph (1)(J),'' before ``such 
            information''; and
            (C) in subparagraph (B) of paragraph (4), by adding at the 
        end the following new sentence: ``If a third party outside the 
        educational agency or institution permits access to information 
        in violation of paragraph (2)(A), or fails to destroy 
        information in violation of paragraph (1)(F), the educational 
        agency or institution shall be prohibited from permitting 
        access to information from education records to that third 
        party for a period of not less than five years.'';
        (3) in subsection (c), by striking ``The Secretary shall adopt 
    appropriate regulations to'' and inserting ``Not later than 240 
    days after the date of enactment of the Improving America's Schools 
    Act of 1994, the Secretary shall adopt appropriate regulations or 
    procedures, or identify existing regulations or procedures, 
    which'';
        (4) in subsection (e), by inserting ``effectively'' before 
    ``informs''; and
        (5) by adding at the end the following new subsection:
    ``(h) Nothing in this section shall prohibit an educational agency 
or institution from--
        ``(1) including appropriate information in the education record 
    of any student concerning disciplinary action taken against such 
    student for conduct that posed a significant risk to the safety or 
    well-being of that student, other students, or other members of the 
    school community; or
        ``(2) disclosing such information to teachers and school 
    officials, including teachers and school officials in other 
    schools, who have legitimate educational interests in the behavior 
    of the student.''.

SEC. 250. ENFORCEMENT.

    (a) Recovery of Funds.--Section 452 of the Act (20 U.S.C. 1234a) is 
amended--
        (1) in the first sentence of paragraph (2) of subsection (a), 
    by striking ``stating'' and all that follows through the end of 
    such sentence and inserting ``establishing a prima facie case for 
    the recovery of funds, including an analysis reflecting the value 
    of the program services actually obtained in a determination of 
    harm to the Federal interest.'';
        (2) in the first sentence of paragraph (1) of subsection (b), 
    by striking ``30'' and inserting ``60''; and
        (3) in subsection (d), by--
            (A) striking ``(d) Upon'' and inserting ``(d)(1) Upon''; 
        and
            (B) adding at the end the following new paragraph:
     ``(2) During the conduct of such review, there shall not be any ex 
parte contact between the Secretary and individuals representing the 
Department or the recipient.''.
    (b) Use of Recovered Funds.--Section 459 of the Act (20 U.S.C. 
1234h) is amended--
        (1) in paragraph (1) of subsection (a), by inserting ``, 
    provided that the recipient was notified of any noncompliance with 
    such requirements and given a reasonable period of time to remedy 
    such noncompliance'' before the semicolon; and
        (2) by amending subsection (c) to read as follows:
    ``(c) Notwithstanding any other provisions of law, the funds made 
available under this section shall remain available for expenditure for 
a period of time deemed reasonable by the Secretary, but in no case to 
exceed more than three fiscal years following the later of--
        ``(1) the fiscal year in which final agency action under 
    section 452(e) is taken; or
        ``(2) if such recipient files a petition for judicial review, 
    the fiscal year in which final judicial action under section 458 is 
    taken.''.

              PART E--TECHNICAL AND CONFORMING AMENDMENTS

SEC. 261. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Payments.--Section 423 of the Act (as redesignated by section 
212(b)(1)) (20 U.S.C. 1226a-1) is amended by striking ``Commissioner'' 
and inserting ``Secretary''.
    (b) Program Planning and Evaluation.--Section 426 of the Act (as 
redesignated by section 212(b)(1)) (20 U.S.C. 1228) is amended--
        (1) by striking ``title I of'' and all that follows through 
    ``Congress)'' and inserting ``title VIII of the Elementary and 
    Secondary Education Act of 1965''; and
        (2) by striking ``subparagraph (C) of section 3(d)(2) or 
    section 403(1)(C) of that Act'' and inserting ``subsections (d) and 
    (g) of section 8003 of such Act or residing on property described 
    in section 8013(10) of such Act''.
    (c) Heading for Part C.--The heading for part C of the Act (20 
U.S.C. 1230 et seq.) is amended by striking ``Commissioner of 
Education'' and inserting ``Secretary''.
    (d) Section 439.--Section 439 of the Act (as redesignated by 
section 212(b)(1)) (20 U.S.C. 1232b) is amended by striking ``Except 
for emergency relief under section 7 of the Act of September 30, 1950 
(Public Law 874, Eighty-first Congress), all laborers'' and inserting 
``All laborers''.
    (e) Section 440.--
        (1) Amendment to heading.--The heading for section 440 of the 
    Act (as redesignated by section 212(b)(1)) (20 U.S.C. 1232c) is 
    amended by striking ``Educational''.
        (2) Amendment to text.--Section 440 of the Act (as redesignated 
    by section 212(b)(1)) (20 U.S.C. 1232c) is amended--
            (A) by striking ``Commissioner'' each place such term 
        appears and inserting ``Secretary'';
            (B) by redesignating the matter following paragraph (3) of 
        subsection (b) as subsection (c); and
            (C) in subsection (c) (as redesignated by subparagraph 
        (B)), by striking ``paragraph (3)'' and inserting ``subsection 
        (b)(3)''.
    (f) Section 441.--Section 441 of the Act (as redesignated by 
section 212(b)(1)) (20 U.S.C. 1232d) is amended--
        (1) by striking ``Commissioner'' each place such term appears 
    and inserting ``Secretary''; and
        (2) in the first sentence of subsection (a)--
            (A) by striking the comma after ``submits a plan'';
            (B) by striking ``, in the case of programs under chapter 1 
        and chapter 2 of title I of the Elementary and Secondary 
        Education Act of 1965,''; and
            (C) by striking ``title V of such Act'' and inserting 
        ``part C of title V of the Elementary and Secondary Education 
        Act of 1965''.
    (g) Section 442.--Section 442 of the Act (as redesignated by 
section 212(b)(1)) (20 U.S.C. 1232e) is amended--
        (1) in subsection (a), by striking ``that local education 
    agency'' and inserting ``that local educational agency''; and
        (2) in subsection (b)--
            (A) in paragraph (2), by inserting a comma after 
        ``program'';
            (B) in paragraph (4), by striking ``Commissioner'' each 
        place such term appears and inserting ``Secretary''; and
            (C) in subparagraph (B) of paragraph (7), by striking 
        ``handicapped individuals'' and inserting ``individuals with 
        disabilities''.
    (h) Section 444.--Section 444 of the Act (as redesignated by 
section 212(b)(1) and amended by section 249) (20 U.S.C. 1232g) is 
further amended--
        (1) in clause (ii) of subsection (a)(4)(B), by striking the 
    period and inserting a semicolon;
        (2) in subsection (b)--
            (A) in subparagraph (C) of paragraph (1), by striking 
        ``(iii) an administrative head of an education agency (as 
        defined in section 408(c)), or (iv)'' and inserting ``or 
        (iii)'';
            (B) in subparagraph (H) of paragraph (1), by striking 
        ``1954'' and inserting ``1986''; and
            (C) in paragraph (3)--
                (i) by striking ``(C) an administrative head of an 
            education agency or (D)'' and inserting ``or (C)''; and
                (ii) by striking ``education program'' and inserting 
            ``education programs'';
        (3) in subsection (d), by inserting a comma after 
    ``education'';
        (4) in subsection (f)--
            (A) by striking ``, or an administrative head of an 
        education agency,'';
            (B) by striking ``enforce provisions of this section'' and 
        inserting ``enforce this section'';
            (C) by striking ``according to the provisions of'' and 
        inserting ``in accordance with''; and
            (D) by striking ``comply with the provisions of this 
        section'' and inserting ``comply with this section''; and
        (5) in subsection (g)--
            (A) by striking ``of Health, Education, and Welfare''; and
            (B) by striking ``the provisions of''.
    (i) Conforming Amendment and Cross References.--
        (1) Carl d. perkins vocational and applied technology education 
    act.--Subsection (b) of section 504 of the Carl D. Perkins 
    Vocational and Applied Technology Education Act (20 U.S.C. 
    2466a(b)) is amended--
            (A) by striking ``240-day'' and inserting ``360-day''; and
            (B) by striking ``431(g)'' and inserting ``437(e)''.
        (2) Higher education act of 1965.--Subsection (c) of section 
    556 of the Higher Education Act of 1965 (20 U.S.C. 1108d(c)) is 
    amended by striking ``435 and 436'' and inserting ``441 and 442''.
        (3) Education and training for a competitive america act of 
    1988.--Paragraph (1) of section 6144 of the Education and Training 
    for a Competitive America Act of 1988 (20 U.S.C. 5124(1)) is 
    amended by striking ``405(d)(4)(A)(i) of the General Education 
    Provisions Act (20 U.S.C. 1221e(d)(4)(A)(i))'' and inserting 
    ``section 941(h) of the Educational Research, Development, 
    Dissemination, and Improvement Act of 1994 (20 U.S.C. 6041(h))''.

                PART F--RELATED AMENDMENTS TO OTHER ACTS

SEC. 271. DEPARTMENT OF EDUCATION ORGANIZATION ACT.

    (a) Repeals and Redesignations.--
        (1) Repeals.--Section 427 of the Department of Education 
    Organization Act (20 U.S.C. 3487) (hereafter in this part referred 
    to as the ``Act'') is repealed.
        (2) Redesignation.--Sections 209, 210, 211, 212, 214, 303, 304, 
    305, 306, 307, and 428 of the Act are redesignated as sections 208, 
    209, 210, 211, 212, 302, 303, 304, 305, 306, and 427 of the Act, 
    respectively.
        (3) Cross references.--(A) Paragraph (2) of section 401(b) of 
    the Act (20 U.S.C. 3461(b)(2)) is amended by striking ``209'' and 
    inserting ``208''.
        (B) Paragraph (9) of section 912(l) of the Educational 
    Research, Development, Dissemination, and Improvement Act of 1994 
    (20 U.S.C. 6011(l)(9)) is amended by striking ``209'' and inserting 
    ``208''.
    (b) Gender Equity.--Subsection (b) of section 202 of the Act (20 
U.S.C. 3412) is amended by inserting after paragraph (2) the following 
new paragraph:
    ``(3) There shall be in the Department, a Special Assistant for 
Gender Equity who shall be appointed by the Secretary. The Special 
Assistant shall promote, coordinate, and evaluate gender equity 
programs, including the dissemination of information, technical 
assistance, and coordination of research activities. The Special 
Assistant shall advise the Secretary and Deputy Secretary on all 
matters relating to gender equity.''.
    (c) Office of Non-public Education.--Title II of the Act (20 U.S.C. 
3411 et seq.) is amended by adding immediately before section 215 the 
following new section:


                     ``OFFICE OF NON-PUBLIC EDUCATION

    ``Sec. 214. There shall be in the Department an Office of Non-
Public Education to ensure the maximum potential participation of non-
public school students in all Federal educational programs for which 
such students are eligible.''.
    (d) Rules; Acquisition and Maintenance of Property.--Part B of 
title IV of the Act (20 U.S.C. 3471 et seq.) is amended--
        (1) in section 414 (20 U.S.C. 1226a)--
            (A) by striking ``(a)''; and
            (B) by striking subsection (b); and
        (2) in section 421 (20 U.S.C. 1230), by inserting ``and to 
    accept donations of services,'' after ``personal,''.
    (e) Table of Contents.--The table of contents contained in section 
1 of the Act (20 U.S.C. 3401 note) is amended to read as follows:

                           ``TABLE OF CONTENTS

``Sec. 1. Short title; table of contents.

                      ``TITLE I--GENERAL PROVISIONS

``Sec. 101. Findings.
``Sec. 102. Purposes.
``Sec. 103. Federal-State Relationships.
``Sec. 104. Definitions.

               ``TITLE II--ESTABLISHMENT OF THE DEPARTMENT

``Sec. 201. Establishment.
``Sec. 202. Principal officers.
``Sec. 203. Office for Civil Rights.
``Sec. 204. Office of Elementary and Secondary Education.
``Sec. 205. Office of Postsecondary Education.
``Sec. 206. Office of Vocational and Adult Education.
``Sec. 207. Office of Special Education and Rehabilitative Services.
``Sec. 208. Office of Educational Research and Improvement.
``Sec. 209. Office of Bilingual Education and Minority Languages 
          Affairs.
``Sec. 210. Office of General Counsel.
``Sec. 211. Office of Inspector General.
``Sec. 212. Office of Non-Public Education.
``Sec. 213. Office of Indian Education.
``Sec. 214. Office of Non-Public Education.
``Sec. 215. Office of Indian Education.
``Sec. 216. Office of Bilingual Education and Minority Languages 
          Affairs.
``Sec. 217. Federal Interagency Committee on Education.

            ``TITLE III--TRANSFERS OF AGENCIES AND FUNCTIONS

``Sec. 301. Transfers from the Department of Health, Education, and 
          Welfare.
``Sec. 302. Transfers from the Department of Labor.
``Sec. 303. Transfers of programs from the National Science Foundation.
``Sec. 304. Transfers from the Department of Justice.
``Sec. 305. Transfers from the Department of Housing and Urban 
          Development.
``Sec. 306. Effect of transfers.

                  ``TITLE IV--ADMINISTRATIVE PROVISIONS

                     ``Part A--Personnel Provisions

``Sec. 401. Officers and employees.
``Sec. 402. Experts and consultants.
``Sec. 403. Personnel reduction and annual limitations.

               ``Part B--General Administrative Provisions

``Sec. 411. General authority.
``Sec. 412. Delegation.
``Sec. 413. Reorganization.
``Sec. 414. Rules.
``Sec. 415. Contracts.
``Sec. 416. Regional and field offices.
``Sec. 417. Acquisition and maintenance of property.
``Sec. 418. Facilities at remote locations.
``Sec. 419. Use of facilities.
``Sec. 420. Copyrights and patents.
``Sec. 421. Gifts and bequests.
``Sec. 422. Technical advice.
``Sec. 423. Working capital fund.
``Sec. 424. Funds transfer.
``Sec. 425. Seal of department.
``Sec. 426. Annual report.
``Sec. 427. Authorization of appropriations.

       ``TITLE V--TRANSITIONAL, SAVINGS, AND CONFORMING PROVISIONS

``Sec. 501. Transfer and allocation of appropriations and personnel.
``Sec. 502. Effect on personnel.
``Sec. 503. Agency terminations.
``Sec. 504. Incidental transfers.
``Sec. 505. Savings provisions.
``Sec. 506. Separability.
``Sec. 507. Reference.
``Sec. 508. Amendments.
``Sec. 509. Redesignation.
``Sec. 510. Coordination of programs affecting handicapped individuals.
``Sec. 511. Transition.

           ``TITLE VI--EFFECTIVE DATE AND INTERIM APPOINTMENTS

``Sec. 601. Effective date.
``Sec. 602. Interim appointments.''.

SEC. 272. THE REHABILITATION ACT OF 1973.

    Section 9 of the Rehabilitation Act of 1973 (29 U.S.C. 706) is 
repealed.

                  TITLE III--AMENDMENTS TO OTHER ACTS

 PART A--AMENDMENTS TO THE INDIVIDUALS WITH DISABILITIES EDUCATION ACT

SEC. 311. ALLOCATIONS UNDER SECTION 611.

    (a) Maximum Amount.--Subsection (a) of section 611 of the 
Individuals with Disabilities Education Act (hereafter in this part 
referred to as the ``Act'') (20 U.S.C. 1411(a)) is amended--
        (1) by amending paragraph (1) to read as follows:
        ``(1) Except as provided in paragraph (5), the maximum amount 
    of the grant for which a State is entitled under this section for 
    any fiscal year is--
            ``(A) the sum of--
                ``(i) the number of children with disabilities in the 
            State, aged 6 through 21, who are receiving special 
            education and related services, as determined under 
            paragraph (3); and
                ``(ii) if the State is eligible for a grant under 
            section 619, the number of such children in the State, aged 
            3 through 5; multiplied by
            ``(B) 40 percent of the average per-pupil expenditure in 
        public elementary and secondary schools in the United 
        States.'';
        (2) by amending paragraph (2) to read as follows:
        ``(2) For the purpose of this section, the term `State' means 
    each of the 50 States, the District of Columbia, and the 
    Commonwealth of Puerto Rico.''; and
        (3) in subparagraph (A) of paragraph (5)--
            (A) in clause (i)--
                (i) by striking ``and the State'' and inserting ``, or 
            the combined percentage of such children counted by the 
            Secretary for the purpose of making fiscal year 1994 
            allocations under this section and under subpart 2 of part 
            D of chapter 1 of title I of the Elementary and Secondary 
            Education Act of 1965 (as such subpart was in effect on the 
            day preceding the date of enactment of the Improving 
            America's Schools Act of 1994), whichever is greater, if 
            the State''; and
                (ii) by inserting ``and'' after the comma at the end;
            (B) in clause (ii)--
                (i) by striking ``and the State'' and inserting ``, or 
            the combined percentage of such children counted by the 
            Secretary for the purpose of making fiscal year 1994 
            allocations under this section and under subpart 2 of part 
            D of chapter 1 of title I of the Elementary and Secondary 
            Education Act of 1965 (as such subpart was in effect on the 
            day preceding the date of enactment of the Improving 
            America's Schools Act of 1994), whichever is greater, if 
            the State''; and
                (ii) by striking ``; and'' and inserting a period; and
            (C) by striking clause (iii).
    (b) State Uses.--Subsection (b) of section 611 of the Act (20 
U.S.C. 1411(b)) is amended to read as follows:
    ``(b)(1) Notwithstanding subsections (a) and (g), no State shall 
receive an amount under this section for any of the fiscal years 1995 
through 1999 that is less than the sum of the amount such State 
received for fiscal year 1994 under--
        ``(A) this section; and
        ``(B) subpart 2 of part D of chapter 1 of title I of the 
    Elementary and Secondary Education Act of 1965 (as such subpart was 
    in effect on the day preceding the date of enactment of the 
    Improving America's Schools Act of 1994) for children with 
    disabilities aged 3 through 21.
    ``(2) If, for fiscal year 1998 or 1999, the number of children 
determined under subsection (a)(3) for any State is less than the total 
number of children with disabilities, aged 3 through 21, counted for 
that State's fiscal year 1994 grants under this section and under 
subpart 2 of part D of chapter 1 of title I of the Elementary and 
Secondary Education Act of 1965 (as such subpart was in effect on the 
day preceding the date of enactment of the Improving America's Schools 
Act of 1994), then the amount determined under paragraph (1) for that 
State shall be reduced by the same percentage by which the number of 
those children so declined.
    ``(3)(A) If the sums made available under this part for any fiscal 
year are insufficient to pay the full amounts that all States are 
eligible to receive under paragraphs (1) and (2) for such year, the 
Secretary shall ratably reduce the allocations to such States for such 
year.
    ``(B) If additional funds become available for making payments 
under paragraphs (1) and (2) for such fiscal year, allocations that 
were reduced under subparagraph (A) shall be increased on the same 
basis as such allocations were reduced.''.
    (c) Distribution.--Subsection (c) of section 611 of the Act (20 
U.S.C. 1411(c)) is amended--
        (1) by amending paragraph (1) to read as follows:
        ``(1) Of the funds received under subsection (a) by any State 
    for any fiscal year--
            ``(A) a State may use not more than 25 percent of such 
        funds in accordance with paragraph (2); and
            ``(B) except as provided in paragraph (4), the State shall 
        distribute at least 75 percent of such funds to local 
        educational agencies and intermediate educational units, in 
        accordance with subsection (d), for use in accordance with 
        priorities established under section 612(3).''; and
        (2) in paragraph (2), by amending subparagraph (A) to read as 
    follows:
            ``(A) From the funds that any State may use under paragraph 
        (1)(A) for any fiscal year, the State--
                ``(i) may use 5 percent of the funds received under 
            this section or $450,000, whichever is greater, for 
            administrative costs related to carrying out sections 612 
            and 613; and
                ``(ii) shall use the remainder--

                    ``(I) to provide support services and direct 
                services, subject to subparagraph (B), in accordance 
                with priorities established under section 612(3); and
                    ``(II) for the administrative costs of monitoring 
                and complaint investigation, but only to the extent 
                that such costs exceed the costs of administration 
                incurred during fiscal year 1985.''.

    (d) Formula.--Subsection (d) of section 611 of the Act (20 U.S.C. 
1411(d)) is amended to read as follows:
    ``(d)(1) From the total amount of funds available for any fiscal 
year under subsection (c)(1)(B), the State shall provide to each local 
educational agency or intermediate educational unit an amount that 
bears the same ratio to such total amount as the number of children, 
aged 3 through 21, determined under subsection (a)(3) for such agency 
or unit bears to the total number of such children determined for all 
such agencies and units that apply for such funds.
    ``(2)(A) To the extent necessary, the State--
        ``(i) shall use funds available under subsection (c)(2)(A)(ii) 
    to ensure that each State agency that received funds for fiscal 
    year 1994 under subpart 2 of part D of chapter 1 of title I of the 
    Elementary and Secondary Education Act of 1965 (as such subpart was 
    in effect on the day preceding the date of enactment of the 
    Improving America's Schools Act of 1994) receives, from the sum of 
    such funds and funds provided under paragraph (1), an amount equal 
    to--
            ``(I) the number of children, aged 6 through 21, determined 
        under subsection (a)(3) for such agency; multiplied by
            ``(II) the per-child amount provided under such subpart for 
        fiscal year 1994; and
        ``(ii) may use such funds to ensure that each local educational 
    agency that received for fiscal year 1994 under such subpart for 
    children who had transferred from a State-owned, State-operated, or 
    State-supported school or program assisted under such subpart 
    receives, from the sum of such funds and funds provided under 
    paragraph (1), an amount for each such child, aged 3 through 21, 
    determined under subsection (a)(3) for such agency, equal to the 
    per-child amount the agency received under such subpart for fiscal 
    year 1994.
    ``(B) For the purpose of subparagraph (A), the number of children 
determined under subsection (a)(3) for any State agency or local 
educational agency shall not exceed the number of children aged 3 
through 21 for whom such agency received funds under such subpart for 
such fiscal year.''.
    (e) Jurisdictions.--Paragraph (1) of section 611(e) of the Act (20 
U.S.C. 1411(e)(1)) is amended to read as follows:
        ``(1) The jurisdictions to which this subsection applies are 
    Guam, American Samoa, the Virgin Islands, the Commonwealth of the 
    Northern Mariana Islands, and Palau (until the Compact of Free 
    Association with the Government of Palau takes effect).''.
    (f) Insufficient Appropriations.--Subsection (g) of section 611 of 
the Act (20 U.S.C. 1411(g)) is amended to read as follows:
    ``(g)(1)(A) If the sums appropriated under subsection (h) for any 
fiscal year are not sufficient to pay in full the total of the amounts 
that all States are eligible to receive under subsection (a), each such 
amount shall be ratably reduced.
    ``(B) If additional funds become available for making such payments 
for any fiscal year, such reduced amounts shall be increased on the 
same basis as such payments were reduced.
    ``(C) Any State that receives any such additional funds shall 
distribute such funds in accordance with this section, except that any 
State that has used funds available under subsection (c)(2)(A)(ii) for 
the purposes described in subsection (d)(2) may--
        ``(i) deduct, from the amount that the State would otherwise be 
    required to make available to local educational agencies and 
    intermediate educational units, the same amount of such additional 
    funds as the State so used; and
        ``(ii) use such funds in accordance with subsection 
    (c)(2)(A)(ii).
    ``(2)(A) In any fiscal year for which payments have been reduced 
and additional funds have not been made available under paragraph (1) 
to pay in full the amounts for which all States are eligible under this 
section, each State educational agency shall fix dates by which each 
local educational agency or intermediate educational unit shall report 
to the State agency the amount of funds available to such agency under 
this section that such agency estimates such agency will expend.
    ``(B) The State educational agency shall, in accordance with this 
section, reallocate any funds that the State educational agency 
determines will not be used during the period of availability by local 
educational agencies and intermediate educational units, and by any 
such agency or unit to which such funds would be available if such 
agency or unit applied for such funds under this part, to those local 
educational agencies and intermediate educational units that the State 
educational agency determines will need, and be able to use, additional 
funds to carry out approved programs.''.

SEC. 312. TREATMENT OF CHAPTER 1 STATE AGENCIES.

    Part B of the Act (20 U.S.C. 1411 et seq.) is further amended by 
inserting after section 614 the following new section:


                 ``TREATMENT OF CHAPTER 1 STATE AGENCIES

    ``Sec. 614A. (a) For the purpose of making payments under sections 
611 and 619 of this Act, any State agency that received funds for 
fiscal year 1994 under subpart 2 of part D of chapter 1 of title I of 
the Elementary and Secondary Education Act of 1965 (as such subpart was 
in existence on the day preceding the date of enactment of the 
Improving America's Schools Act of 1994) shall be treated as if the 
State agency were a local educational agency.
    ``(b) Any State agency which desires to receive payments under 
section 611(d) and section 619(c)(3) for any fiscal year shall submit 
an application to the State educational agency. Such application 
shall--
        ``(1) include an assurance that all children with disabilities 
    who are participating in programs and projects funded under this 
    part receive a free appropriate public education, and that such 
    children and their parents are provided all the rights and 
    procedural safeguards described in this part; and
        ``(2) meet those requirements of section 614 that the Secretary 
    finds appropriate.
    ``(c) Section 611(c)(4) shall not apply with respect to a State 
agency that is eligible for a payment under this part by application of 
this section.''.

SEC. 313. INFANTS AND TODDLERS WITH DISABILITIES.

    (a) Amendment.--Subsection (c) of section 684 of the Act (20 U.S.C. 
1484) is amended--
        (1) by redesignating paragraph (2) as paragraph (6);
        (2) by amending paragraph (1) to read as follows:
        ``(1) Except as provided in paragraphs (3), (4), and (5) from 
    the funds remaining for each fiscal year after the reservation and 
    payments under subsections (a) and (b), the Secretary shall first 
    allot to each State an amount that bears the same ratio to the 
    amount of such remainder as the number of infants and toddlers in 
    the State bears to the number of infants and toddlers in all 
    States.''; and
        (3) by inserting after paragraph (1) the following new 
    paragraphs:
        ``(2) For fiscal year 1995 only, the Secretary shall allot 
    $34,000,000 of the remaining funds described in paragraph (1) among 
    the States in proportion to their relative numbers of infants and 
    toddlers with disabilities who--
            ``(A) are counted on December 1, 1994; and
            ``(B) would have been eligible to be counted under section 
        1221(c)(1) of the Elementary and Secondary Education Act of 
        1965 (as such section was in effect on the day preceding the 
        date of the enactment of the Improving America's Schools Act of 
        1994).
        ``(3) Except as provided in paragraphs (4) and (5), no State 
    shall receive an amount under this section for any fiscal year that 
    is less than the greater of--
            ``(A) one-half of one percent of the remaining amount 
        described in paragraph (1), excluding any amounts allotted 
        under paragraph (2); or
            ``(B) $500,000.
        ``(4)(A) Except as provided in paragraph (5), no State shall 
    receive an amount under this section for any of the fiscal years 
    1995 through 1999 that is less than the sum of the amount such 
    State received for fiscal year 1994 under--
            ``(i) this part; and
            ``(ii) subpart 2 of part D of chapter 1 of title I of the 
        Elementary and Secondary Education Act of 1965 (as such subpart 
        was in existence on the day preceding the date of enactment of 
        the Improving America's Schools Act of 1994) for children with 
        disabilities from birth through age 2.
        ``(B) If, for fiscal year 1998 or 1999, the number of infants 
    and toddlers in any State, as determined under paragraph (1), is 
    less than the number of infants and toddlers so determined for 
    fiscal year 1994, the amount determined under subparagraph (A) for 
    that State shall be reduced by the same percentage by which the 
    number of those infants and toddlers so declined.
        ``(5)(A) If the sums made available under this part for any 
    fiscal year are insufficient to pay the full amounts that all 
    States are eligible to receive under this subsection for such year, 
    the Secretary shall ratably reduce the allocations to such States 
    for such year.
        ``(B) If additional funds become available for making payments 
    under this subsection for such fiscal year, allocations that were 
    reduced under subparagraph (A) shall be increased on the same basis 
    as such allocations were reduced.''.
    (b) Effective Date.--Subsection (a) and the amendments made by 
subsection (a) shall take effect on October 1, 1994.

SEC. 314. LOCAL CONTROL OVER VIOLENCE.

    (a) Amendments.--
        (1) In general.--Paragraph (3) of section 615(e) of the Act (20 
    U.S.C. 1415(e)(3)) is amended--
            (A) by striking ``During'' and inserting ``(A) Except as 
        provided in subparagraph (B), during''; and
            (B) by adding at the end the following new subparagraph:
        ``(B)(i) Except as provided in clause (iii), if the proceedings 
    conducted pursuant to this section involve a child with a 
    disability who is determined to have brought a weapon to school 
    under the jurisdiction of such agency, then the child may be placed 
    in an interim alternative educational setting, in accordance with 
    State law, for not more than 45 days.
        ``(ii) The interim alternative educational setting described in 
    clause (i) shall be decided by the individuals described in section 
    602(a)(20).
        ``(iii) If a parent or guardian of a child described in clause 
    (i) requests a due process hearing pursuant to paragraph (2) of 
    subsection (b), then the child shall remain in the alternative 
    educational setting described in such clause during the pendency of 
    any proceedings conducted pursuant to this section, unless the 
    parents and the local educational agency agree otherwise.
        ``(iv) For the purpose of this section, the term `weapon' means 
    a firearm as such term is defined in section 921 of title 18, 
    United States Code.''.
        (2) Effective date.--Paragraph (1) and the amendments made by 
    paragraph (1) shall be effective during the period beginning on the 
    date of enactment of this Act and ending on the date of enactment 
    of an Act (enacted after the date of the enactment of this Act) 
    that reauthorizes the Individuals with Disabilities Education Act.
    (b) Limitation.--Nothing in the Individuals with Disabilities 
Education Act shall supersede the provisions of section 14601 of the 
Elementary and Secondary Education Act if a child's behavior is 
unrelated to such child's disability, except that this section shall be 
interpreted in a manner that is consistent with the Department's final 
guidance concerning State and local responsibilities under the Gun-Free 
Schools Act of 1994.
    SEC. 315. FAMILY SUPPORT FOR FAMILIES OF CHILDREN WITH 
      DISABILITIES.
    The Individuals with Disabilities Education Act (20 U.S.C. 1400 et 
seq.) is amended by adding at the end the following new part:

                        ``PART I--FAMILY SUPPORT

``SEC. 701. SHORT TITLE.

    ``This part may be cited as the `Families of Children With 
Disabilities Support Act of 1994'.

``SEC. 702. FINDINGS, PURPOSES, AND POLICY.

    ``(a) Findings.--The Congress makes the following findings:
        ``(1) It is in the best interest of our Nation to preserve, 
    strengthen, and maintain the family.
        ``(2) Families are the greatest natural resource available to 
    their children and are the major providers of support, care, and 
    training of their children.
        ``(3) Families of children with disabilities enrich the lives 
    of all citizens through the contributions of such families to the 
    economic, health, and social fabric of their community, State, and 
    Nation.
        ``(4) A growing number of families are searching for ways to 
    empower themselves to raise their children with disabilities at 
    home and in their communities. Supporting such families to enable 
    them to care for their children with disabilities at home is 
    efficient and can be cost-effective.
        ``(5) Children, including children with disabilities, benefit 
    from enduring family relationships in a nurturing home environment.
        ``(6) Many families experience exceptionally high financial 
    outlays and significant physical and emotional challenges in 
    meeting the special needs of their children with disabilities.
        ``(7) There are financial disincentives for families to care 
    for their children with disabilities at home.
        ``(8) Most families of children with disabilities do not have 
    access to family-centered and family-directed services to support 
    such families in their efforts to care for their children with 
    disabilities at home.
        ``(9) There is a need in each State for a comprehensive, 
    coordinated, interagency system of family support for families of 
    children with disabilities that is family-centered and family-
    directed, is easily accessible, avoids duplication, uses existing 
    resources more efficiently, and prevents gaps in services to 
    families in all areas of the State.
        ``(10) The goals of the Nation properly include the goal of 
    providing families of children with disabilities the family support 
    necessary to accomplish the following:
            ``(A) To support the family.
            ``(B) To enable families of children with disabilities to 
        nurture and enjoy their children at home.
            ``(C) To enable families of children with disabilities to 
        make informed choices and decisions regarding the nature of 
        services, supports, and resources made available to such 
        families.
    ``(b) Purposes.--The purposes of this part are as follows:
        ``(1) To provide financial assistance to the States to support 
    systems change activities designed to assist each State to develop 
    and implement, or expand and enhance, a family-centered and family-
    directed, culturally competent, community-centered, comprehensive, 
    statewide system of family support for families of children with 
    disabilities that is designed to--
            ``(A) ensure the full participation, choice and control of 
        families of children with disabilities in decisions related to 
        the provision of such family support for their family;
            ``(B) ensure the active involvement of families of children 
        with disabilities in the planning, development, implementation, 
        and evaluation of such a statewide system;
            ``(C) increase the availability of, funding for, access to, 
        and provision of family support for families of children with 
        disabilities;
            ``(D) promote training activities that are family-centered 
        and family-directed and that enhance the ability of family 
        members of children with disabilities to increase 
        participation, choice, and control in the provision of family 
        support for families of children with disabilities;
            ``(E) increase and promote interagency coordination among 
        State agencies, and between State agencies and private entities 
        that are involved in carrying out activities under section 708; 
        and
            ``(F) increase the awareness of laws, regulations, 
        policies, practices, procedures, and organizational structures, 
        which facilitate or impede the availability or provision of 
        family support for families of children with disabilities.
        ``(2) To enhance the ability of the Federal Government to--
            ``(A) identify Federal policies that facilitate or impede 
        family support for families of children with disabilities, and 
        that are consistent with the principles in subsection (c);
            ``(B) provide States with technical assistance and 
        information relating to the provision of family support for 
        families of children with disabilities;
            ``(C) conduct an evaluation of the program of grants to 
        States; and
            ``(D) provide funding for model demonstration and 
        innovation projects.
    ``(c) Policy.--It is the policy of the United States that all 
programs, projects, and activities receiving assistance under this part 
shall be family-centered and family-directed and shall be carried out 
in a manner consistent with the following principles:
        ``(1) Family support for families of children with disabilities 
    must focus on the needs of the entire family.
        ``(2) Families of children with disabilities should be 
    supported in determining their needs and in making decisions 
    concerning necessary, desirable, and appropriate services.
        ``(3) Families should play decisionmaking roles in policies and 
    programs that affect the lives of such families.
        ``(4) Family needs change over time and family support for 
    families of children with disabilities must offer options that are 
    flexible and responsive to the unique needs and strengths and 
    cultural values of individual families.
        ``(5) Family support for families of children with disabilities 
    is proactive and not solely in response to a crisis.
        ``(6) Families must be supported in their efforts to promote 
    the integration and inclusion of their children with disabilities 
    into all aspects of community life.
        ``(7) Family support for families of children with disabilities 
    should promote the use of existing social networks, strengthen 
    natural sources of support, and help build connections to existing 
    community resources and services.
        ``(8) Youth with disabilities should be involved in 
    decisionmaking about their own lives, consistent with the unique 
    strengths, resources, priorities, concerns, abilities, and 
    capabilities of each such youth.
        ``(9) Services and supports must be provided in a manner that 
    demonstrates respect for individual dignity, personal 
    responsibility, self-determination, personal preferences, and 
    cultural differences of families.
    ``(d) Rule of Construction.--Nothing in this part shall be 
construed to prevent families from choosing an out-of-home placement 
for their children with disabilities, including institutional placement 
for such children.

``SEC. 703. DEFINITIONS.

    ``For the purposes of this part, only the following definitions 
shall apply:
        ``(1) Child with a disability.--The term `child with a 
    disability' means an individual who from birth through 21 years of 
    age meets the definition of disability under paragraph (4).
        ``(2) Council.--The term `Council' means an existing Council, 
    or a new Council, which is considered as a State Policy Council for 
    Families of Children with Disabilities under section 707.
        ``(3) Culturally competent.--The term `culturally competent' 
    means services, supports, or other assistance that is conducted or 
    provided in a manner that--
            ``(A) is responsive to the beliefs, interpersonal styles, 
        attitudes, language, and behaviors of those individuals 
        receiving services; and
            ``(B) has the greatest likelihood of ensuring maximum 
        participation of such individuals.
        ``(4) Disability.--The term `disability' means--
            ``(A) in the case of an individual 6 years of age or older, 
        a significant physical or mental impairment as defined pursuant 
        to State policy to the extent that such policy is established 
        without regard to type of disability; and
            ``(B) in the case of infants and young children, birth to 
        age 5, inclusive, a substantial developmental delay or specific 
        congenital or acquired conditions with a high probability of 
        resulting in a disability if services are not provided.
        ``(5) Existing council.--The term `existing Council' means an 
    entity or a committee of an entity that--
            ``(A) is established by a State prior to the date on which 
        the State submits an application for funding under this part;
            ``(B) has authority to advise the State with respect to 
        family support for families of children with disabilities; and
            ``(C) may have the authority to carry out other 
        responsibilities and duties.
        ``(6) Family.--The term `family' means a group of 
    interdependent persons residing in the same household that consists 
    of a child with a disability and one or more of the following:
            ``(A) A mother, father, brother, sister or any combination.
            ``(B) Extended blood relatives, such as a grandparent, 
        aunt, or uncle.
            ``(C) An adoptive parent.
            ``(D) One or more persons to whom legal custody of a child 
        with a disability has been given by a court.
            ``(E) A person providing short-term foster care that 
        includes a family reunification plan with the biological 
        family.
            ``(F) A person providing long-term foster care for a child 
        with a disability.
    The term does not include employees who, acting in their paid 
    employment capacity, provide services to children with disabilities 
    in out-of-home settings such as hospitals, nursing homes, personal 
    care homes, board and care homes, group homes, or other facilities.
        ``(7) Family-centered and family-directed.--The term `family-
    centered and family-directed' means, with respect to a service or 
    program, that the service or program--
            ``(A) facilitates the full participation, choice, and 
        control by families of children with disabilities in--
                ``(i) decisions relating to the supports that will meet 
            the priorities of the family; and
                ``(ii) the planning, development, implementation, and 
            evaluation of the statewide system of family support for 
            families of children with disabilities;
            ``(B) responds to the needs of the entire family of a child 
        with a disability in a timely and appropriate manner; and
            ``(C) is easily accessible to and usable by families of 
        children with disabilities.
        ``(8) Family satisfaction.--The term `family satisfaction' 
    means the extent to which a service or support meets a need, solves 
    a problem, or adds value for a family, as determined by the 
    individual family.
        ``(9) Family support for families of children with 
    disabilities.--The term `family support for families of children 
    with disabilities'--
            ``(A) means supports, resources, services, and other 
        assistance provided to families of children with disabilities 
        that are designed to--
                ``(i) support families in the efforts of such families 
            to raise their children with disabilities in the family 
            home;
                ``(ii) strengthen the role of the family as primary 
            caregiver;
                ``(iii) prevent inappropriate and unwanted out-of-the-
            home placement and maintain family unity; and
                ``(iv) reunite families with children with disabilities 
            who have been placed out of the home, whenever possible; 
            and
            ``(B) includes--
                ``(i) service coordination that includes individualized 
            planning and brokering for services with families in 
            control of decisionmaking;
                ``(ii) goods and services, which may include 
            specialized diagnosis and evaluation, adaptive equipment, 
            respite care (in and out of the home), personal assistance 
            services, homemaker or chore services, behavioral supports, 
            assistive technology services and devices, permanency or 
            future planning, home and vehicle modifications and 
            repairs, equipment and consumable supplies, transportation, 
            specialized nutrition and clothing, counseling services and 
            mental health services for family members, family education 
            or training services, communication services, crisis 
            intervention, day care and child care for a child with a 
            disability, supports and services for integrated and 
            inclusive community activities, parent or family member 
            support groups, peer support, sitter service or companion 
            service, and education aids; and
                ``(iii) financial assistance, which may include 
            discretionary cash subsidies, allowances, voucher or 
            reimbursement systems, low-interest loans, or lines of 
            credit.
        ``(10) Integration and inclusion.--The term `integration and 
    inclusion' with respect to children with disabilities and their 
    families means--
            ``(A) the use of the same community resources that are used 
        by and available to other individuals and families;
            ``(B) the full and active participation in the same 
        community activities and utilization of the same community 
        resources as individuals without disabilities, living, 
        learning, working, and enjoying life in regular contact with 
        individuals without disabilities; and
            ``(C) having friendships and relationships with individuals 
        and families of their own choosing.
        ``(11) Lead entity.--The term `lead entity' means an office or 
    entity described in section 706.
        ``(12) New council.--The term `new Council' means a council 
    that is established by a State, and considered as the State Policy 
    Council for Families of Children with Disabilities, under section 
    707(a).
        ``(13) Secretary.--The term `Secretary' means the Secretary of 
    Health and Human Services.
        ``(14) Service coordination.--The term `service coordination'--
            ``(A) means those family-centered and family-directed 
        activities that assist and enable families to receive rights 
        and procedural safeguards and to gain access to social, 
        medical, legal, educational, and other supports and services; 
        and
            ``(B) includes--
                ``(i) follow-along services that assure, through a 
            continuing relationship between a family of a child with a 
            disability and an individual or entity, that the changing 
            needs of the child and family are recognized and 
            appropriately met;
                ``(ii) the coordination and monitoring of services 
            provided to children with disabilities and their families;
                ``(iii) the provision of information to children with 
            disabilities and their families about the availability of 
            services and assistance to such children and their families 
            in obtaining appropriate services; and
                ``(iv) the facilitation and organization of existing 
            social networks, and natural sources of support, and 
            community resources and services.
        ``(15) Statewide system of family support.--The term `statewide 
    system of family support for families of children with 
    disabilities' means a family-centered and family-directed, 
    culturally competent, community-centered, comprehensive, statewide 
    system of family support for families of children with disabilities 
    developed and implemented by a State under this part that--
            ``(A) addresses the needs of all families of children with 
        disabilities, including unserved and underserved populations; 
        and
            ``(B) addresses such needs without regard to the age, type 
        of disability, race, ethnicity, or gender of such children or 
        the particular major life activity for which such children need 
        the assistance.
        ``(16) Systems change activities.--The term `systems change 
    activities' means efforts that result in laws, regulations, 
    policies, practices, or organizational structures--
            ``(A) that are family-centered and family-directed;
            ``(B) that facilitate and increase access to, provision of, 
        and funding for, family support services for families of 
        children with disabilities; and
            ``(C) that otherwise accomplish the purposes of this part.
        ``(17) Unserved and underserved populations.--The term 
    `unserved and underserved populations' includes populations such as 
    individuals from racial and ethnic minority backgrounds, 
    economically disadvantaged individuals, individuals with limited-
    English proficiency, individuals from underserved geographic areas 
    (rural or urban), and specific groups of individuals within the 
    population of individuals with disabilities, including individuals 
    with disabilities attributable to physical impairment, mental 
    impairment, or a combination of physical and mental impairments.

``SEC. 704. GRANTS TO STATES.

    ``(a) In General.--The Secretary shall make grants to States on a 
competitive basis, in accordance with the provisions of this part, to 
support systems change activities designed to assist States to develop 
and implement, or expand and enhance, a statewide system of family 
support for families of children with disabilities that accomplishes 
the purposes described in section 702.
    ``(b) Award Period and Grant Limitation.--No grant shall be awarded 
for a period greater than 3 years. A State shall be eligible for not 
more than one grant.
    ``(c) Amount of Grants.--
        ``(1) Grants to states.--
            ``(A) Federal matching share.--From amounts appropriated 
        under section 716(a), the Secretary shall pay to each State 
        that has an application approved under section 705, for each 
        year of the grant period, an amount that is--
                ``(i) equal to 75 percent of the cost of the systems 
            change activities to be carried out by the State; and
                ``(ii) not less than $200,000 and not more than 
            $500,000.
            ``(B) Non-Federal Share.--The non-Federal share of payments 
        under this paragraph may be in cash or in kind fairly 
        evaluated, including planned equipment or services.
        ``(2) Grants to territories.--From amounts appropriated under 
    section 716(a) for any fiscal year, the Secretary shall pay to each 
    territory that has an application approved under section 705 not 
    more than $100,000.
        ``(3) Calculation of amounts.--The Secretary shall calculate a 
    grant amount described in paragraph (1) or (2) on the basis of the 
    following:
            ``(A) The amounts available for making grants under this 
        section.
            ``(B) The child population of the State or territory 
        concerned.
        ``(4) Definitions.--As used in this subsection:
            ``(A) State.--The term `State' means each of the 50 States 
        of the United States, the District of Columbia, and the 
        Commonwealth of Puerto Rico.
            ``(B) Territory.--The term `territory' means the United 
        States Virgin Islands, Guam, American Samoa, the Commonwealth 
        of the Northern Mariana Islands, or the Republic of Palau (upon 
        the entry into force and effect of the Compact of Free 
        Association between the United States and the Republic of 
        Palau).
    ``(d) Priority for Previously Participating States.--Amounts 
appropriated for purposes of carrying out the provisions of this 
section in each of the 2 fiscal years succeeding the fiscal year in 
which amounts are first appropriated for such purposes shall first be 
made available to a State that--
        ``(1) received a grant under this section during the fiscal 
    year preceding the fiscal year concerned; and
        ``(2) is making significant progress in accordance with section 
    710.
    ``(e) Priorities for Distribution.--To the extent practicable, the 
Secretary shall award grants to States under this section in a manner 
that--
        ``(1) is geographically equitable; and
        ``(2) distributes the grants among States that have differing 
    levels of development of statewide systems of family support for 
    families of children with disabilities.

``SEC. 705. APPLICATION.

    ``A State that desires to receive a grant under this part shall 
submit an application to the Secretary that contains the following 
information and assurances:
        ``(1) Family-centered and family-directed approach.--An 
    assurance that the State will use funds made available under this 
    part to accomplish the purposes described in section 702 and the 
    goals, objectives, and family-centered outcomes described in 
    section 709(b) by carrying out systems change activities in 
    partnership with families and in a manner that is family-centered 
    and family-directed.
        ``(2) Designation of the lead entity.--Information identifying 
    the lead entity, and evidence documenting the abilities of such 
    entity.
        ``(3) State policy council for families of children with 
    disabilities.--An assurance of the following:
            ``(A) The State has designated or established Council that 
        meets the criteria set forth in section 707.
            ``(B) The lead entity will seek and consider on a regular 
        and ongoing basis advice from the Council regarding the 
        development and implementation of the strategic plan under 
        section 709, and other policies and procedures of general 
        applicability pertaining to the provision of family support for 
        families of children with disabilities in the State.
            ``(C) The lead entity will include, in its annual progress 
        reports, a summary of advice provided by the Council, including 
        recommendations from the annual report of the Council and the 
        response of the lead entity to such advice and recommendations.
            ``(D) The lead entity will transmit to the Council any 
        other plans, reports, and other information required under this 
        part.
        ``(4) Family involvement.--A description of the following:
            ``(A) The nature and extent of the involvement of families 
        of children with disabilities and individuals with disabilities 
        in the development of the application.
            ``(B) Strategies for actively involving families of 
        children with disabilities and individuals with disabilities in 
        the development, implementation, and evaluation of the 
        statewide system of family support for families of children 
        with disabilities.
            ``(C) Strategies and special outreach activities that will 
        be undertaken to ensure the active involvement of families of 
        children with disabilities who are members of unserved and 
        underserved populations.
            ``(D) Strategies for actively involving families of 
        children with disabilities who use family support services in 
        decisions relating to such services.
        ``(5) Agency involvement.--A description of the nature and 
    extent of involvement of various State agencies or units within 
    State agencies in the preparation of the application and the 
    continuing role of each agency in the statewide system of family 
    support for families of children with disabilities.
        ``(6) State resources.--A description of the State resources 
    and other resources that are available to commit to the statewide 
    system of family support for families of children with 
    disabilities.
        ``(7) Unmet needs.--A description of unmet needs for family 
    support for families of children with disabilities within the 
    State.
        ``(8) Preliminary plan.--A preliminary plan that contains 
    information on the program to be carried out under the grant with 
    respect to the goals and objectives of the State for the program 
    and the activities that the State plans to carry out under the 
    program (including the process for appointing individuals to the 
    Council) and that is consistent with the purposes of this part.
        ``(9) Activities.--An assurance that, except for the first year 
    of the grant, the State shall expend not less than 65 percent of 
    the funds made available to a State under this part for grants and 
    contracts to conduct the activities described in section 708.
        ``(10) Limit on administrative costs.--An assurance that the 
    lead entity that receives funding under this part in any fiscal 
    year shall use not more than 5 percent of such funds in such year 
    for administrative expenses. Such administrative expenses shall not 
    include expenses related to the activities of the Council.
        ``(11) Strategic plan.--A description of the measures that will 
    be taken by the State to develop a strategic plan in accordance 
    with section 709.
        ``(12) Evaluation.--An assurance that the State will conduct an 
    annual evaluation of the statewide system of family support for 
    families of children with disabilities in accordance with section 
    710.
        ``(13) Coordination with state and local councils.--An 
    assurance that the lead entity will coordinate the activities 
    funded through a grant made under this part with the activities 
    carried out by other relevant councils within the State.
        ``(14) Supplement other funds.--An assurance, with respect to 
    amounts received under a grant, of the following:
            ``(A) Such grant will be used to supplement and not 
        supplant amounts available from other sources that are expended 
        for programs of family support for families of children with 
        disabilities, including the provision of family support.
            ``(B) Such grant will not be used to pay a financial 
        obligation for family support for families of children with 
        disabilities that would have been paid with amounts available 
        from other sources if amounts under such grant had not been 
        available.
        ``(15) Other information and assurances.--Such other 
    information and assurances as the Secretary may reasonably require.

``SEC. 706. DESIGNATION OF THE LEAD ENTITY.

    ``(a) Designation.--The Chief Executive Officer of a State that 
desires to receive a grant under section 704, shall designate the 
office or entity (referred to in this part as the ``lead entity'') 
responsible for--
        ``(1) submitting the application under section 705 on behalf of 
    the State;
        ``(2) administering and supervising the use of the amounts made 
    available under the grant;
        ``(3) coordinating efforts related to and supervising the 
    preparation of the application;
        ``(4) coordinating the planning, development, implementation 
    (or expansion and enhancement), and evaluation of a statewide 
    system of family support services for families of children with 
    disabilities among public agencies and between public agencies and 
    private agencies, including coordinating efforts related to 
    entering into interagency agreements; and
        ``(5) coordinating efforts related to the meaningful 
    participation by families in activities carried out under a grant 
    awarded under this part.
    ``(b) Qualifications.--In designating the lead entity, the Chief 
Executive Officer may designate--
        ``(1) an office of the Chief Executive Officer;
        ``(2) a commission appointed by the Chief Executive Officer;
        ``(3) a public agency;
        ``(4) a council established under Federal or State law; or
        ``(5) another appropriate office, agency, or entity.
    ``(c) Capabilities of the Lead Entity.--The State shall provide, in 
accordance with the requirements of section 705, evidence that the lead 
entity has the capacity--
        ``(1) to promote a statewide system of family support for 
    families of children with disabilities throughout the State;
        ``(2) to promote and implement systems change activities;
        ``(3) to maximize access to public and private funds for family 
    support services for families of children with disabilities;
        ``(4) to implement effective strategies for capacity building, 
    family and professional training, and access to and funding for 
    family support services for families of children with disabilities 
    across agencies;
        ``(5) to promote and facilitate the implementation of family 
    support services for families of children with disabilities that 
    are family-centered and family-directed, and flexible, and that 
    provide families with the greatest possible decisionmaking 
    authority and control regarding the nature and use of services and 
    supports;
        ``(6) to promote leadership by families in planning, policy 
    development, implementation, and evaluation of family support 
    services for families of children with disabilities, and parent-
    professional partnerships; and
        ``(7) to promote and develop interagency coordination and 
    collaboration.

``SEC. 707. STATE POLICY COUNCIL FOR FAMILY SUPPORT FOR FAMILIES OF 
              CHILDREN WITH DISABILITIES.

    ``(a) Designation or Establishment.--A State that desires to 
receive financial assistance under this part shall, prior to the 
receipt of funds under this part, designate an existing Council, or 
establish a new Council, to be considered as a State Policy Council for 
Families of Children with Disabilities.
    ``(b) Use of Existing Council.--
        ``(1) In general.--To the extent that a State has an existing 
    Council, the existing Council shall be considered in compliance 
    with this section if the existing Council meets the requirements 
    under paragraph (2).
        ``(2) Requirements.--An existing Council shall--
            ``(A) include a majority of members who are family members 
        of children with disabilities and who are children with 
        disabilities (from age 18 to 21);
            ``(B) in the case in which the existing Council does not 
        represent the full range of families and individuals described 
        in subsection (d)(1), adopt strategies that will ensure the 
        full participation of such families and individuals in all 
        activities carried out by the Council; and
            ``(C) carry out functions and authorities that are 
        comparable to the functions and authorities described in 
        subsections (e) through (h).
        ``(3) Documentation of compliance.--Any State that has an 
    existing Council shall include in a grant application submitted 
    under section 705 and in subsequent annual progress reports 
    submitted to the Secretary under section 710, a description of the 
    measures that are being taken or that are planned, to ensure that 
    the existing Council of the State complies with this section.
    ``(c) Appointments to New Council.--
        ``(1) Members.--To the extent that a State establishes a new 
    Council, members of the new Council shall be appointed by the Chief 
    Executive Officer of the State or the appropriate official within 
    the State responsible for making appointments in accordance with 
    subsection (d). The appointing authority shall select members after 
    soliciting recommendations from the State Developmental 
    Disabilities Council, parent or family organizations, and other 
    organizations representing the full range of disabilities covered 
    under this part. The appointing authority shall ensure that the 
    membership of the new Council reasonably represents the population 
    of the State and shall establish guidelines for the terms of the 
    members of the new Council.
        ``(2) Chairperson.--The new Council shall elect a member of the 
    new Council to serve as the Chairperson of the new Council. The 
    Chairperson shall be a family member, as described in subsection 
    (d)(1).
    ``(d) Composition.--The new Council shall be composed of--
        ``(1) a majority of members who are--
            ``(A) individuals who are family members of children with 
        disabilities, are eligible for family support, and represent 
        the diversity of families within the State, including those 
        families from unserved and underserved populations; and
            ``(B) children with disabilities, from age 18 to 21, and 
        are representative of the demographics of the State;
        ``(2) members--
            ``(A) who are from State agencies with significant 
        responsibility for the provision of, or payment for, family 
        support services to families of children with disabilities, and 
        who have sufficient authority to engage in policy planning and 
        implementation on behalf of such agencies; and
            ``(B) who are from the office of the Chief Executive 
        Officer of the State with responsibility with respect to budget 
        and finance; and
        ``(3) such additional members as the appointing authority 
    considers appropriate.
    ``(e) Functions.--The new Council shall--
        ``(1) establish formal policies regarding the operation of the 
    new Council;
        ``(2) advise and assist the lead entity in the performance of 
    responsibilities described in section 706(a), particularly the 
    promotion of interagency agreements and the promotion of meaningful 
    participation by families in all aspects of the statewide system of 
    family support for families of children with disabilities;
        ``(3) advise and assist State agencies in the development of 
    policies and procedures relating to the provision of family support 
    for families of children with disabilities in the State;
        ``(4) advise and assist the lead entity in the development of 
    all aspects of a strategic plan under section 709, including--
            ``(A) the mission, purpose, and principles of the statewide 
        system of family support for families of children with 
        disabilities;
            ``(B) the statement of family-centered outcomes;
            ``(C) the goals, objectives, and activities;
            ``(D) the quality improvement or quality enhancement 
        system;
            ``(E) the appeals process;
            ``(F) the eligibility criteria to be used for all programs, 
        projects, and activities carried out under this part;
            ``(G) the analysis of the extent to which family support 
        for families of children with disabilities is defined as a 
        benefit and not as income; and
            ``(H) the approach to the evaluation of the statewide 
        system of family support for families of children with 
        disabilities;
        ``(5) advise and assist the lead entity in the implementation 
    of systems change activities;
        ``(6) advise and assist the lead entity in assessing family 
    satisfaction with the statewide system of family support for 
    families of children with disabilities;
        ``(7) review, analyze, and comment on the strategic plan and 
    updates to the plan, progress reports, and annual budgets;
        ``(8) advise and assist the lead entity in the identification 
    of Federal and State barriers that impede the development of a 
    statewide system of family support for families of children with 
    disabilities; and
        ``(9) prepare and submit to the Chief Executive Officer of the 
    State, the State legislature, and to the Secretary an annual report 
    on the status of family support services for families of children 
    with disabilities, and make such report available to the public.
    ``(f) Hearings and Forums.--The new Council is authorized to hold 
such hearings and forums as the new Council may determine to be 
necessary to carry out the duties of the new Council.
    ``(g) Conflict of Interest.--No member of the new Council shall 
cast a vote on any matter that would provide direct financial benefit 
to such member or otherwise give the appearance of a conflict of 
interest under applicable State law.
    ``(h) Compensation and Expenses.--The new Council may, consistent 
with State law, use such resources to reimburse members of the new 
Council for reasonable and necessary expenses of attending the new 
Council meetings and performing Council duties (including child care 
and personal assistance services), and to pay compensation to a member 
of the new Council, if such member is not employed or must forfeit 
wages from other employment, for each day the member is engaged in 
performing Council duties.

``SEC. 708. AUTHORIZED ACTIVITIES.

    ``(a) In General.--A State that receives a grant under section 704 
may use the funds made available through the grant to carry out systems 
change activities, which accomplish the purposes described in section 
702, such as the following activities:
        ``(1) Training and technical assistance.--The State may support 
    training and technical assistance activities for family members, 
    service providers, community members, professionals, members of the 
    Council, students and others that will do the following:
            ``(A) Increase family participation, choice, and control in 
        the provision of family support for families of children with 
        disabilities.
            ``(B) Promote partnerships with families of children with 
        disabilities at all levels of the service system.
            ``(C) Develop or strengthen family-centered and family-
        directed approaches to services, including service coordination 
        services, service planning services, and respite care services.
            ``(D) Assist families of children with disabilities in 
        accessing natural and community supports and in obtaining 
        benefits and services.
        ``(2) Interagency coordination.--The State may support 
    activities that conduct the following:
            ``(A) Identification and coordination of Federal and State 
        policies, resources, and services, relating to the provision of 
        family support services for families of children with 
        disabilities, including entering into interagency agreements.
            ``(B) Interagency work groups to enhance public funding 
        options and coordinate access to funding for family support 
        services for families of children with disabilities, with 
        special attention to the issues of family involvement in the 
        identification, planning, use, delivery, and evaluation of such 
        services.
            ``(C) Documentation and dissemination of information about 
        interagency activities that promote coordination with respect 
        to family support services for families of children with 
        disabilities, including evidence of increased participation of 
        State and local health, maternal and child health, social 
        service, mental health, mental retardation and developmental 
        disabilities, child protection, education, early intervention, 
        developmental disabilities councils, agencies, and departments.
        ``(3) Local or regional councils.--The State may support the 
    development or enhancement of local or regional councils to review 
    the status of family support for families of children with 
    disabilities in the local or regional area, to advise and assist 
    with the planning, development, implementation, and evaluation of 
    family support for families of children with disabilities in such 
    local or regional area, and to provide recommendations to the State 
    regarding improvements and plans.
        ``(4) Outreach.--The State may conduct outreach activities to 
    locate families who are eligible for family support for families of 
    children with disabilities and to identify groups who are unserved 
    or underserved. Such activities may involve the creation or 
    maintenance of, support of, or provision of, assistance to 
    statewide and community parent organizations, and organizations 
    that provide family support to families of children with 
    disabilities.
        ``(5) Policy studies.--The State may support policy studies 
    that relate to the development and implementation, or expansion and 
    enhancement, of a statewide system of family support for families 
    of children with disabilities. Such studies may address issues 
    regarding eligibility and access to services.
        ``(6) Hearings and forums.--The State may conduct hearings and 
    forums to solicit input from families of children with disabilities 
    regarding family support programs, policies, and plans for such 
    families. Such hearings and forums may be conducted in 
    collaboration with other statewide councils.
        ``(7) Public awareness and education.--The State may develop 
    and disseminate information relating to family support for families 
    of children with disabilities designed to provide information to 
    such families, parent groups and organizations, public and private 
    agencies that are in contact with children with disabilities and 
    families of such children, students, policymakers, and the public. 
    Such information may relate to the nature, cost, and availability 
    of, and accessibility to, family support for families of children 
    with disabilities, the impact of family support for families of 
    children with disabilities on other benefits, and the efficacy of 
    family support for families of children with disabilities with 
    respect to enhancing the quality of family life.
        ``(8) Needs assessment.--The State may conduct a needs 
    assessment, which may, in part, be based on existing State data.
        ``(9) Program data.--The State may support the compilation and 
    evaluation of appropriate data related to the statewide system of 
    family support for families of children with disabilities.
        ``(10) Pilot demonstration projects.--The State may support 
    pilot demonstration projects to demonstrate new approaches to the 
    provision of family support for families of children with 
    disabilities. Such projects may include the demonstration of 
    family-centered and family-directed service coordination, 
    approaches to improve access to services, including independent 
    service coordination, peer support networks, and voucher programs.
        ``(11) Other activities.--The State may support other systems 
    change activities that accomplish the purposes described in section 
    702.
    ``(b) Special Rule.--In carrying out activities authorized under 
this part, a State shall ensure that such programs and activities 
address the needs of families who are economically disadvantaged.

``SEC. 709. STRATEGIC PLAN.

    ``(a) In General.--Not later than 6 months after the date on which 
assistance is received by a State under this part, the lead entity of 
the State, in conjunction with the Council, shall prepare and submit to 
the Secretary a strategic plan designed to achieve the purposes and 
policy of this part.
    ``(b) Contents.--The strategic plan shall include--
        ``(1) a statement of the mission, purpose, and principles of 
    the statewide system of family support for families of children 
    with disabilities in the State;
        ``(2) a statement of family-centered outcomes to be achieved by 
    the statewide system of family support for families of children 
    with disabilities;
        ``(3) specific goals and objectives for developing and 
    implementing, or expanding and improving, the system for providing 
    family support services for families of children with disabilities, 
    and for achieving the family-centered outcomes;
        ``(4) systemic approaches for accomplishing the objectives and 
    achieving the family-centered outcomes, including interagency 
    coordination and cooperation, that builds upon state-of-the-art 
    practices and research findings;
        ``(5) a description of the specific programs, projects, and 
    activities funded under this part and the manner in which the 
    programs, projects, and activities accomplish the objectives and 
    achieve the family-centered outcomes;
        ``(6) a description of an ongoing quality improvement or 
    quality enhancement system, which utilizes information from ongoing 
    measurements of the extent to which family-centered outcomes are 
    achieved, to improve the system;
        ``(7) a description of an appeals process that will be used in 
    resolving any disputes families of children with disabilities may 
    have regarding the determination of eligibility or the provision of 
    family support services to the family or to the child with a 
    disability;
        ``(8) a description of the eligibility criteria to be used to 
    carry out programs, projects, and activities under this part that 
    includes all eligible families;
        ``(9) an analysis of the extent to which family support for a 
    family of a child with a disability is defined as a benefit and not 
    as income; and
        ``(10) a description of the plan to conduct an annual 
    evaluation of the statewide system of family support for families 
    of children with disabilities, in conjunction with the Council, to 
    improve such statewide system and to document progress as required 
    by section 710.
    ``(c) Period and Updates.--The strategic plan shall cover the 
period of the grant and shall be reviewed and updated on an annual 
basis to reflect actual experience and family satisfaction information 
over the preceding year and input from the Council, families of 
children with disabilities, and other interested parties.
    ``(d) Recommendations.--Prior to developing the strategic plan, the 
State shall solicit input and recommendations from interested members 
of the public, either by holding public hearings or through an 
alternative method or methods determined by the lead entity in 
consultation with the Council. The lead entity shall also obtain the 
comments and recommendations of the Council. The lead entity, in 
conjunction with the Council, shall consider the recommendations and 
attempt to reach a consensus with respect to such recommendations. If 
the lead entity and the Council are unable to reach a consensus, the 
lead entity shall include a written explanation of the reason a 
consensus was not reached in the strategic plan.
    ``(e) Comment.--The State shall develop a procedure for ensuring 
ongoing comment from the Council.
    ``(f) Dissemination.--The State shall widely disseminate the 
strategic plan to families of children with disabilities, parent 
organizations, and other interested persons.
    ``(g) Construction.--Nothing in this section shall be construed to 
prevent a State from using an existing statewide strategic plan or 
parts thereof to meet the requirements of this section as long as such 
plan or the applicable parts thereof are comparable to the 
specifications of this section.

``SEC. 710. PROGRESS CRITERIA AND REPORTS.

    ``(a) Guidelines.--The Secretary shall develop guidelines to be 
used in assessing the extent to which a State that received a grant 
under section 704 is making significant progress in developing and 
implementing, or expanding and enhancing, a statewide system of family 
support for families of children with disabilities consistent with the 
purposes of this part.
    ``(b) Progress Reports.--A State that receives a grant under 
section 704 shall submit annually to the Secretary a report that 
documents progress in developing and implementing, or expanding and 
enhancing, a statewide system of family support for families of 
children with disabilities consistent with this part. Such report shall 
include--
        ``(1) the results of the annual evaluation of the statewide 
    system of family support for families of children with 
    disabilities;
        ``(2) a description of the unanticipated problems with the 
    achievement of the goals, objectives, and family-centered outcomes 
    described in the application or strategic plan and the measures the 
    State has taken to rectify such problems;
        ``(3) for the annual progress report concerning the first year 
    of the grant period, the strategic plan developed by the State 
    during the first year; and
        ``(4) for the annual progress report concerning subsequent 
    years of the grant period, the updated strategic plan.

``SEC. 711. ADMINISTRATIVE PROVISIONS.

    ``(a) Evaluation of Grant Applications.--
        ``(1) Panels.--The Secretary shall convene panels of experts 
    who are competent, by virtue of their training or experience, to 
    evaluate grant applications under this part.
        ``(2) Composition of panels.--Panels shall be composed of a 
    majority of family members of children with disabilities and 
    individuals with disabilities, and may include service providers, 
    State administrative personnel, and professionals. Panels shall 
    include a majority of individuals who are not Federal employees.
        ``(3) Expenses and fees of the panel.--A member of the Panel 
    who is not a Federal employee shall receive travel, per diem and 
    consultant fees not to exceed the rate provided to other 
    consultants used by the Secretary. The Secretary may use funds 
    available under section 716 to pay expenses and fees of a member of 
    a Panel who is not a Federal employee.
    ``(b) Provision of Information.--To assist the Secretary in 
carrying out the responsibilities of the Secretary under this section, 
the Secretary may require States to provide relevant information, 
including recommendations and relevant reports of the Council.
    ``(c) Appeals.--The Secretary shall establish appeals procedures 
for States that are found in noncompliance with the provisions of this 
part as the result of failure to supply information required under 
section 705 or 710. The Secretary shall take into consideration the 
comments of the Council.
    ``(d) Effect on Other Assistance.--This part may not be construed 
as authorizing a Federal or State agency to reduce medical or other 
assistance available, or to alter eligibility, under any Federal law.
    ``(e) Unobligated Funds.--Any amount paid to a State for a fiscal 
year and remaining unobligated at the end of such year shall remain 
available to such State for the next fiscal year for the purposes for 
which such amount was paid.

``SEC. 712. TECHNICAL ASSISTANCE.

    ``(a) In General.--The Secretary shall make grants, or enter into 
contracts or cooperative agreements, with appropriate public or private 
agencies and organizations, including institutions of higher education, 
with documented experience, expertise, and capacity, for the purpose of 
providing technical assistance and information with respect to the 
development and implementation, or expansion and enhancement, of a 
statewide system of family support for families of children with 
disabilities.
    ``(b) Purpose.--With respect to States receiving assistance under 
this part, the technical assistance and information described under 
subsection (a) shall be provided to the State agency designated as the 
lead entity, the Council, family members of children with disabilities, 
organizations, service providers, and policymakers involved with 
children with disabilities and their families. Such technical 
assistance shall also be available to States that do not receive 
assistance under this part. Such technical assistance and information 
shall--
        ``(1) facilitate effective systems change activities;
        ``(2) promote effective approaches to the development and 
    implementation, or expansion and enhancement of, the statewide 
    systems of family support for families of children with 
    disabilities that increase access to, funding for, and awareness of 
    family support for families of children with disabilities;
        ``(3) promote partnerships with families at all levels of the 
    service system;
        ``(4) foster awareness and understanding of Federal, State, and 
    local laws, regulations, policies, practices, procedures, and 
    organizational structures, that facilitate, and overcome barriers 
    to, funding for, and access to family support for families of 
    children with disabilities;
        ``(5) foster the development and replication of effective 
    approaches to strategic plan development, interagency coordination, 
    training, outreach to underserved groups, and public awareness 
    activities;
        ``(6) facilitate service delivery capacity, training, and the 
    improvement of data collection and evaluation systems;
        ``(7) promote effective approaches to the development of 
    family-centered and family-directed services, including approaches 
    to the development and measurement of family-centered outcomes 
    described in section 709(b)(2), and the assessment of family 
    satisfaction; and
        ``(8) coordinate and facilitate an annual meeting of the 
    chairpersons of the Councils.
    ``(c) Request for Technical Assistance.--A request for technical 
assistance by a lead entity in a State receiving assistance under this 
part shall be made in conjunction with the Council.
    ``(d) Reports to the Secretary.--An entity providing the technical 
assistance under this section shall submit periodic reports to the 
Secretary regarding Federal policies and procedures identified within 
the States that facilitate or impede the delivery of family support to 
families of children with disabilities. The report shall include 
recommendations to the Secretary regarding the delivery of services, 
coordination with other programs, and integration of the policies and 
principles described in section 702 in other Federal legislation.

``SEC. 713. EVALUATION.

    ``(a) In General.--The Secretary shall make grants, or enter into 
contracts or cooperative agreements, with appropriate public or private 
agencies and organizations, including institutions of higher education, 
with documented experience, expertise, and capacity for the purpose of 
conducting a national evaluation of the program of grants to States 
authorized by this part.
    ``(b) Purpose.--The purpose of an evaluation under subsection (a) 
shall be to assess the status and effects of State efforts to develop 
and implement, or expand and enhance, statewide systems of family 
support for families of children with disabilities in a manner 
consistent with the provisions of this part, particularly in terms of 
the impact of such efforts on families of children with disabilities, 
and to recommend amendments to this part that are necessary to assist 
States to fully accomplish the purposes of this part. The Secretary or 
recipient of assistance under this section shall work with the States 
to consider and develop an information system designed to report and 
compile, from information provided by the States, including the 
Council, a qualitative and quantitative description of the impact of 
the program of grants to States authorized by this part on--
        ``(1) families of children with disabilities, including 
    families from ethnic and racial minority backgrounds;
        ``(2) access to and funding for family support for families of 
    children with disabilities; and
        ``(3) the involvement of families at all levels of the service 
    system.
    ``(c) Report to Congress.--Not later than 2\1/2\ years after the 
date of enactment of this part, the Secretary shall prepare and submit 
to the appropriate committees of Congress a report concerning the 
results of the evaluation conducted under this section.
    ``(d) Conflict of Interest.--The Secretary shall assure that a 
recipient of a grant, contract, or cooperative agreement under this 
section is independent from, and free from, any financial or personal 
relationships with the recipient of a grant, contract, or cooperative 
agreement selected to provide technical assistance under section 712.

``SEC. 714. PROJECTS OF NATIONAL SIGNIFICANCE.

    ``(a) Study by the Secretary.--The Secretary shall review Federal 
programs to determine the extent to which such programs facilitate or 
impede access to, provision of, and funding for family support for 
families of children with disabilities, consistent with the policies 
described in section 702.
    ``(b) Demonstration and Innovation Projects.--The Secretary shall 
make grants or enter into contracts for projects of national 
significance to support the development of national and State policies 
and practices related to the development and implementation, or 
expansion and enhancement, of family-centered and family-directed 
systems of family support for families of children with disabilities.

``SEC. 715. CONSTRUCTION.

    ``Notwithstanding any other provision of this title, nothing in 
parts A through H of this title shall be construed to apply to this 
part.

``SEC. 716. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this part, $10,000,000 for fiscal year 1995, and such sums as may 
be necessary for each of the fiscal years 1996 and 1997.
    ``(b) Reservation.--
        ``(1) In general.--Except as provided in paragraph (2), the 
    Secretary shall reserve for each fiscal year 10 percent, or 
    $600,000 (whichever is greater), of the amount appropriated 
    pursuant to the authority of subsection (a) to carry out--
            ``(A) section 712, with respect to the provision of 
        technical assistance and information to States;
            ``(B) section 713, with respect to the conduct of the 
        evaluations;
            ``(C) section 711(a), with respect to the evaluation of 
        grant applications; and
            ``(D) section 714, with respect to the conduct of projects 
        of national significance.
        ``(2) Special rule.--The Secretary shall only use funds 
    reserved under paragraph (1) for a fiscal year to carry out section 
    714 for such year if the amount of funds reserved under such 
    paragraph for such fiscal year is $700,000 or greater.''.

           PART B--EDUCATION FOR HOMELESS CHILDREN AND YOUTH

SEC. 321. AMENDMENTS TO TABLE OF CONTENTS.

    The table of contents in section 101(b) of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11301 note) is amended by striking 
subtitles A and B of title VII and inserting the following:

             ``Subtitle A--Adult Education for the Homeless

``Sec. 701. State literacy initiatives.

         ``Subtitle B--Education for Homeless Children and Youth

``Sec. 721. Statement of policy.
``Sec. 722. Grants for State and local activities for the education of 
          homeless children and youth.
``Sec. 723. Local educational agency grants for the education of 
          homeless children and youth.
``Sec. 724. Secretarial responsibilities.
``Sec. 725. Definitions.
``Sec. 726. Authorization of appropriations.''.

SEC. 322. ADULT EDUCATION FOR THE HOMELESS.

    Subtitle A of title VII of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11421 et seq.) is amended to read as follows:

             ``Subtitle A--Adult Education for the Homeless

``SEC. 701. STATE LITERACY INITIATIVES.

    ``(a) General Authority.--
        ``(1) Grants.--The Secretary of Education is authorized to make 
    grants to State educational agencies to enable each such agency to 
    implement, either directly or through contracts and grants, a 
    program of literacy training and academic remediation for adult 
    homeless individuals within the State, which program shall--
            ``(A) include outreach activities; and
            ``(B) be coordinated with other agencies or organizations, 
        such as community-based organizations, nonprofit literacy-
        action organizations, and recipients of funds under the Adult 
        Education Act, title II of the Job Training Partnership Act, 
        the Youth Fair Chance program under part H of title IV of the 
        Job Training Partnership Act, the Volunteers in Service to 
        America program under part A of title I of the Domestic 
        Volunteer Service Act of 1973, part C of this title, or the Job 
        Opportunity and Basic Skills program under part F of title IV 
        of the Social Security Act.
        ``(2) Estimates and amounts.--The Secretary of Education, in 
    awarding grants under this section, shall give special 
    consideration to the estimates submitted in the application 
    submitted under subsection (b) and make such awards in whatever 
    amounts such Secretary determines will best serve the purposes of 
    this section.
    ``(b) Application.--Each State educational agency desiring to 
receive a grant under this section shall submit to the Secretary of 
Education an application at such time, in such manner, and containing 
such information as the Secretary may reasonably require. Each such 
application shall include an estimate of the number of homeless 
individuals in the State and the number of such individuals expected to 
be served.
    ``(c) Authorization of Appropriations.--For the purpose of carrying 
out the adult literacy training and academic remediation programs 
authorized by this section, there are authorized to be appropriated 
such sums as may be necessary for each of the fiscal years 1995 through 
1999.
    ``(d) Definition.--As used in this section, the term `State' means 
each of the 50 States, the District of Columbia, the Commonwealth of 
Puerto Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth 
of the Northern Mariana Islands, and Palau (until the effective date of 
the Compact of Free Association with the Government of Palau).''.

SEC. 323. EDUCATION FOR HOMELESS CHILDREN AND YOUTH.

    Subtitle B of title VII of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11431 et seq.) is amended to read as follows:

        ``Subtitle B--Education for Homeless Children and Youth

``SEC. 721. STATEMENT OF POLICY.

    ``It is the policy of the Congress that--
        ``(1) each State educational agency shall ensure that each 
    child of a homeless individual and each homeless youth has equal 
    access to the same free, appropriate public education, including a 
    public preschool education, as provided to other children and 
    youth;
        ``(2) in any State that has a compulsory residency requirement 
    as a component of the State's compulsory school attendance laws or 
    other laws, regulations, practices, or policies that may act as a 
    barrier to the enrollment, attendance, or success in school of 
    homeless children and youth, the State will review and undertake 
    steps to revise such laws, regulations, practices, or policies to 
    ensure that homeless children and youth are afforded the same free, 
    appropriate public education as provided to other children and 
    youth;
        ``(3) homelessness alone should not be sufficient reason to 
    separate students from the mainstream school environment; and
        ``(4) homeless children and youth should have access to the 
    education and other services that such children and youth need to 
    ensure that such children and youth have an opportunity to meet the 
    same challenging State student performance standards to which all 
    students are held.
``SEC. 722. GRANTS FOR STATE AND LOCAL ACTIVITIES FOR THE EDUCATION OF 
HOMELESS CHILDREN AND YOUTH.
    ``(a) General Authority.--The Secretary is authorized to make 
grants to States in accordance with the provisions of this section to 
enable such States to carry out the activities described in subsections 
(d), (e), (f), and (g).
    ``(b) Application.--No State may receive a grant under this section 
unless the State educational agency submits an application to the 
Secretary at such time, in such manner, and containing or accompanied 
by such information as the Secretary may reasonably require.
    ``(c) Allocation and Reservations.--
        ``(1) In general.--Subject to paragraph (2) and section 724(c), 
    from the amounts appropriated for each fiscal year under section 
    726, the Secretary is authorized to allot to each State an amount 
    that bears the same ratio to the amount appropriated for such year 
    under section 726 as the amount allocated under section 1122 of the 
    Elementary and Secondary Education Act of 1965 to the State for 
    that year bears to the total amount allocated under section 1122 to 
    all States for that year, except that no State shall receive less 
    than $100,000.
        ``(2) Reservation.--(A) The Secretary is authorized to reserve 
    0.1 percent of the amount appropriated for each fiscal year under 
    section 726 to be allocated by the Secretary among the Virgin 
    Islands, Guam, American Samoa, the Commonwealth of the Northern 
    Mariana Islands, and Palau (until the effective date of the Compact 
    of Free Association with the Government of Palau), according to 
    their respective need for assistance under this subtitle, as 
    determined by the Secretary.
        ``(B)(i) The Secretary is authorized to transfer one percent of 
    the amount appropriated for each fiscal year under section 726 to 
    the Department of the Interior for programs for Indian students 
    served by schools funded by the Secretary of the Interior, as 
    determined under the Indian Self-Determination and Education 
    Assistance Act, that are consistent with the purposes of this Act.
        ``(ii) The Secretary and the Secretary of the Interior shall 
    enter into an agreement, consistent with the requirements of this 
    part, for the distribution and use of the funds described in clause 
    (i) under terms that the Secretary determines best meet the 
    purposes of the programs described in such clause. Such agreement 
    shall set forth the plans of the Secretary of the Interior for the 
    use of the amounts transferred, including appropriate goals, 
    objectives, and milestones.
        ``(3) Definition.--As used in this subsection, the term `State' 
    shall not include the Virgin Islands, Guam, American Samoa, the 
    Commonwealth of the Northern Mariana Islands, or Palau.
    ``(d) Activities.--Grants under this section shall be used--
        ``(1) to carry out the policies set forth in section 721 in the 
    State;
        ``(2) to provide activities for, and services to, homeless 
    children, including preschool-aged children, and homeless youth 
    that enable such children and youth to enroll in, attend, and 
    succeed in school, or, if appropriate, in preschool programs;
        ``(3) to establish or designate an Office of Coordinator of 
    Education of Homeless Children and Youth in the State educational 
    agency in accordance with subsection (f);
        ``(4) to prepare and carry out the State plan described in 
    subsection (g); and
        ``(5) to develop and implement professional development 
    programs for school personnel to heighten their awareness of, and 
    capacity to respond to, specific problems in the education of 
    homeless children and youth.
    ``(e) State and Local Grants.--
        ``(1) In general.--(A) Subject to subparagraph (B), if the 
    amount allotted to the State educational agency for any fiscal year 
    under this subtitle exceeds the amount such agency received for 
    fiscal year 1990 under this subtitle, such agency shall provide 
    grants to local educational agencies for purposes of section 723.
        ``(B) The State educational agency may reserve not more than 
    the greater of 5 percent of the amount such agency receives under 
    this subtitle for any fiscal year, or the amount such agency 
    received under this subtitle for fiscal year 1990, to conduct 
    activities under subsection (f) directly or through grants or 
    contracts.
        ``(2) Special rule.--If the amount allotted to a State 
    educational agency for any fiscal year under this subtitle is less 
    than the amount such agency received for fiscal year 1990 under 
    this subtitle, such agency, at such agency's discretion, may 
    provide grants to local educational agencies in accordance with 
    section 723 or may conduct activities under subsection (f) directly 
    or through grants or contracts.
    ``(f) Functions of the Office of Coordinator.--The Coordinator of 
Education of Homeless Children and Youth established in each State 
shall--
        ``(1) estimate the number of homeless children and youth in the 
    State and the number of such children and youth served with 
    assistance provided under the grants or contracts under this 
    subtitle;
        ``(2) gather, to the extent possible, reliable, valid, and 
    comprehensive information on the nature and extent of the problems 
    homeless children and youth have in gaining access to public 
    preschool programs and to public elementary and secondary schools, 
    the difficulties in identifying the special needs of such children 
    and youth, any progress made by the State educational agency and 
    local educational agencies in the State in addressing such problems 
    and difficulties, and the success of the program under this 
    subtitle in allowing homeless children and youth to enroll in, 
    attend, and succeed in, school;
        ``(3) develop and carry out the State plan described in 
    subsection (g);
        ``(4) prepare and submit to the Secretary not later than 
    October 1, 1997, and on October 1 of every third year thereafter, a 
    report on the information gathered pursuant to paragraphs (1) and 
    (2) and such additional information as the Secretary may require to 
    carry out the Secretary's responsibilities under this subtitle;
        ``(5) facilitate coordination between the State educational 
    agency, the State social services agency, and other agencies 
    providing services to homeless children and youth, including 
    homeless children and youth who are preschool age, and families of 
    such children and youth; and
        ``(6) develop relationships and coordinate with other relevant 
    education, child development, or preschool programs and providers 
    of services to homeless children, homeless families, and runaway 
    and homeless youth (including domestic violence agencies, shelter 
    operators, transitional housing facilities, runaway and homeless 
    youth centers, and transitional living programs for homeless 
    youth), to improve the provision of comprehensive services to 
    homeless children and youth and their families.
    ``(g) State Plan.--
        ``(1) In general.--Each State shall submit to the Secretary a 
    plan to provide for the education of homeless children and youth 
    within the State, which plan shall describe how such children and 
    youth are or will be given the opportunity to meet the same 
    challenging State student performance standards all students are 
    expected to meet, shall describe the procedures the State 
    educational agency will use to identify such children and youth in 
    the State and to assess their special needs, and shall--
            ``(A) describe procedures for the prompt resolution of 
        disputes regarding the educational placement of homeless 
        children and youth;
            ``(B) describe programs for school personnel (including 
        principals, attendance officers, teachers and enrollment 
        personnel), to heighten the awareness of such personnel of the 
        specific needs of runaway and homeless youth;
            ``(C) describe procedures that ensure that homeless 
        children and youth who meet the relevant eligibility criteria 
        are able to participate in Federal, State, or local food 
        programs;
            ``(D) describe procedures that ensure that--
                ``(i) homeless children have equal access to the same 
            public preschool programs, administered by the State 
            agency, as provided to other children; and
                ``(ii) homeless children and youth who meet the 
            relevant eligibility criteria are able to participate in 
            Federal, State, or local before- and after-school care 
            programs;
            ``(E) address problems set forth in the report provided to 
        the Secretary under subsection (f)(4);
            ``(F) address other problems with respect to the education 
        of homeless children and youth, including problems caused by--
                ``(i) transportation issues; and
                ``(ii) enrollment delays that are caused by--

                    ``(I) immunization requirements;
                    ``(II) residency requirements;
                    ``(III) lack of birth certificates, school records, 
                or other documentation; or
                    ``(IV) guardianship issues;

            ``(G) demonstrate that the State educational agency and 
        local educational agencies in the State have developed, and 
        will review and revise, policies to remove barriers to the 
        enrollment and retention of homeless children and youth in 
        schools in the State; and
            ``(H) contain an assurance that the State educational 
        agency and local educational agencies in the State will adopt 
        policies and practices to ensure that homeless children and 
        youth are not isolated or stigmatized.
        ``(2) Compliance.--Each plan adopted under this subsection 
    shall also show how the State will ensure that local educational 
    agencies in the State will comply with the requirements of 
    paragraphs (3) through (9).
        ``(3) Local educational agency requirements.--(A) The local 
    educational agency of each homeless child and youth to be assisted 
    under this subtitle shall, according to the child's or youth's best 
    interest, either--
            ``(i) continue the child's or youth's education in the 
        school of origin--
                ``(I) for the remainder of the academic year; or
                ``(II) in any case in which a family becomes homeless 
            between academic years, for the following academic year; or
            ``(ii) enroll the child or youth in any school that 
        nonhomeless students who live in the attendance area in which 
        the child or youth is actually living are eligible to attend.
        ``(B) In determining the best interests of the child or youth 
    under subparagraph (A), the local educational agency shall comply, 
    to the extent feasible, with the request made by a parent or 
    guardian regarding school selection.
        ``(C) For purposes of this paragraph, the term `school of 
    origin' means the school that the child or youth attended when 
    permanently housed, or the school in which the child or youth was 
    last enrolled.
        ``(D) The choice regarding placement shall be made regardless 
    of whether the child or youth lives with the homeless parents or 
    has been temporarily placed elsewhere by the parents.
        ``(4) Comparable services.--Each homeless child or youth to be 
    assisted under this subtitle shall be provided services comparable 
    to services offered to other students in the school selected 
    according to the provisions of paragraph (3), including--
            ``(A) transportation services;
            ``(B) educational services for which the child or youth 
        meets the eligibility criteria, such as services provided under 
        title I of the Elementary and Secondary Education Act of 1965 
        or similar State or local programs, educational programs for 
        children with disabilities, and educational programs for 
        students with limited-English proficiency;
            ``(C) programs in vocational education;
            ``(D) programs for gifted and talented students; and
            ``(E) school meals programs.
        ``(5) Records.--Any record ordinarily kept by the school, 
    including immunization records, academic records, birth 
    certificates, guardianship records, and evaluations for special 
    services or programs, of each homeless child or youth shall be 
    maintained--
            ``(A) so that the records are available, in a timely 
        fashion, when a child or youth enters a new school district; 
        and
            ``(B) in a manner consistent with section 444 of the 
        General Education Provisions Act.
        ``(6) Coordination.--Each local educational agency serving 
    homeless children and youth that receives assistance under this 
    subtitle shall coordinate with local social services agencies and 
    other agencies or programs providing services to such children or 
    youth and their families, including services and programs funded 
    under the Runaway and Homeless Youth Act.
        ``(7) Liaison.--(A) Each local educational agency that receives 
    assistance under this subtitle shall designate a homelessness 
    liaison to ensure that--
            ``(i) homeless children and youth enroll and succeed in the 
        schools of that agency; and
            ``(ii) homeless families, children, and youth receive 
        educational services for which such families, children, and 
        youth are eligible, including Head Start and Even Start 
        programs and preschool programs administered by the local 
        educational agency, and referrals to health care services, 
        dental services, mental health services, and other appropriate 
        services.
        ``(B) State coordinators and local educational agencies shall 
    inform school personnel, service providers, and advocates working 
    with homeless families of the duties of the liaisons.
        ``(8) Review and revisions.--Each State educational agency and 
    local educational agency that receives assistance under this 
    subtitle shall review and revise any policies that may act as 
    barriers to the enrollment of homeless children and youth in 
    schools selected in accordance with paragraph (3). In reviewing and 
    revising such policies, consideration shall be given to issues 
    concerning transportation, immunization, residency, birth 
    certificates, school records, and other documentation, and 
    guardianship. Special attention shall be given to ensuring the 
    enrollment and attendance of homeless children and youth who are 
    not currently attending school.
        ``(9) Coordination.--Where applicable, each State and local 
    educational agency that receives assistance under this subtitle 
    shall coordinate with State and local housing agencies responsible 
    for developing the comprehensive housing affordability strategy 
    described in section 105 of the Cranston-Gonzalez National 
    Affordable Housing Act to minimize educational disruption for 
    children who become homeless.
``SEC. 723. LOCAL EDUCATIONAL AGENCY GRANTS FOR THE EDUCATION OF 
HOMELESS CHILDREN AND YOUTH.
    ``(a) General Authority.--
        ``(1) In general.--The State educational agency shall, in 
    accordance with section 722(e) and from amounts made available to 
    such agency under section 726, make grants to local educational 
    agencies for the purpose of facilitating the enrollment, 
    attendance, and success in school of homeless children and youth.
        ``(2) Services.--Unless otherwise specified, services under 
    paragraph (1) may be provided through programs on school grounds or 
    at other facilities. Where such services are provided through 
    programs to homeless students on school grounds, schools may 
    provide services to other children and youth who are determined by 
    the local educational agency to be at risk of failing in, or 
    dropping out of, schools, in the same setting or classroom. To the 
    maximum extent practicable, such services shall be provided through 
    existing programs and mechanisms that integrate homeless 
    individuals with nonhomeless individuals.
        ``(3) Requirement.--Services provided under this section shall 
    not replace the regular academic program and shall be designed to 
    expand upon or improve services provided as part of the school's 
    regular academic program.
    ``(b) Application.--A local educational agency that desires to 
receive a grant under this section shall submit an application to the 
State educational agency at such time, in such manner, and containing 
or accompanied by such information as the State educational agency may 
reasonably require according to guidelines issued by the Secretary. 
Each such application shall include--
        ``(1) a description of the services and programs for which 
    assistance is sought and the problems to be addressed through the 
    provision of such services and programs;
        ``(2) an assurance that the local educational agency's combined 
    fiscal effort per student or the aggregate expenditures of that 
    agency and the State with respect to the provision of free public 
    education by such agency for the fiscal year preceding the fiscal 
    year for which the determination is made was not less than 90 
    percent of such combined fiscal effort or aggregate expenditures 
    for the second fiscal year preceding the fiscal year for which the 
    determination is made;
        ``(3) an assurance that the applicant complies with, or will 
    use requested funds to come into compliance with, paragraphs (3) 
    through (9) of section 722(g); and
        ``(4) a description of policies and procedures that the agency 
    will implement to ensure that activities carried out by the agency 
    will not isolate or stigmatize homeless children and youth.
    ``(c) Awards.--
        ``(1) In general.--The State educational agency shall, in 
    accordance with section 722(g) and from amounts made available to 
    such agency under section 726, award grants under this section to 
    local educational agencies submitting an application under 
    subsection (b) on the basis of the need of such agencies.
        ``(2) Need.--In determining need under paragraph (1), the State 
    educational agency may consider the number of homeless children and 
    youth enrolled in preschool, elementary, and secondary schools 
    within the area served by the agency, and shall consider the needs 
    of such children and youth and the ability of the agency to meet 
    such needs. Such agency may also consider--
            ``(A) the extent to which the proposed use of funds would 
        facilitate the enrollment, retention, and educational success 
        of homeless children and youth;
            ``(B) the extent to which the application reflects 
        coordination with other local and State agencies that serve 
        homeless children and youth, as well as the State plan required 
        by section 722(g);
            ``(C) the extent to which the applicant exhibits in the 
        application and in current practice a commitment to education 
        for all homeless children and youth; and
            ``(D) such other criteria as the agency determines 
        appropriate.
        ``(3) Duration of grants.--Grants awarded under this section 
    shall be for terms not to exceed three years.
    ``(d) Authorized Activities.--A local educational agency may use 
funds awarded under this section for activities to carry out the 
purpose of this subtitle, including--
        ``(1) the provision of tutoring, supplemental instruction, and 
    enriched educational services that are linked to the achievement of 
    the same challenging State content standards and challenging State 
    student performance standards the State establishes for other 
    children or youth;
        ``(2) the provision of expedited evaluations of the strengths 
    and needs of homeless children and youth, including needs and 
    eligibility for programs and services (such as educational programs 
    for gifted and talented students, children with disabilities, and 
    students with limited-English proficiency, services provided under 
    title I of the Elementary and Secondary Education Act of 1965 or 
    similar State or local programs, programs in vocational education, 
    and school meals programs);
        ``(3) professional development and other activities for 
    educators and pupil services personnel that are designed to 
    heighten the understanding and sensitivity of such personnel to the 
    needs of homeless children and youth, the rights of such children 
    and youth under this Act, and the specific educational needs of 
    runaway and homeless youth;
        ``(4) the provision of referral services to homeless children 
    and youth for medical, dental, mental, and other health services;
        ``(5) the provision of assistance to defray the excess cost of 
    transportation for students pursuant to section 722(g)(4), not 
    otherwise provided through Federal, State, or local funding, where 
    necessary to enable students to attend the school selected under 
    section 722(g)(3);
        ``(6) the provision of developmentally appropriate early 
    childhood education programs, not otherwise provided through 
    Federal, State, or local funding, for preschool-aged children;
        ``(7) the provision of before- and after-school, mentoring, and 
    summer programs for homeless children and youth in which a teacher 
    or other qualified individual provides tutoring, homework 
    assistance, and supervision of educational activities;
        ``(8) where necessary, the payment of fees and other costs 
    associated with tracking, obtaining, and transferring records 
    necessary to enroll homeless children and youth in school, 
    including birth certificates, immunization records, academic 
    records, guardianship records, and evaluations for special programs 
    or services;
        ``(9) the provision of education and training to the parents of 
    homeless children and youth about the rights of, and resources 
    available to, such children and youth;
        ``(10) the development of coordination between schools and 
    agencies providing services to homeless children and youth, 
    including programs funded under the Runaway and Homeless Youth Act;
        ``(11) the provision of pupil services (including violence 
    prevention counseling) and referrals for such services;
        ``(12) activities to address the particular needs of homeless 
    children and youth that may arise from domestic violence;
        ``(13) the adaptation of space and purchase of supplies for 
    nonschool facilities made available under subsection (a)(2) to 
    provide services under this subsection;
        ``(14) the provision of school supplies, including those 
    supplies to be distributed at shelters or temporary housing 
    facilities, or other appropriate locations; and
        ``(15) the provision of other extraordinary or emergency 
    assistance needed to enable homeless children and youth to attend 
    school.

``SEC. 724. SECRETARIAL RESPONSIBILITIES.

    ``(a) Review of Plans.--In reviewing the State plans submitted by 
the State educational agencies under section 722(g), the Secretary 
shall use a peer review process and shall evaluate whether State laws, 
policies, and practices described in such plans adequately address the 
problems of homeless children and youth relating to access to education 
and placement as described in such plans.
    ``(b) Technical Assistance.--The Secretary shall provide support 
and technical assistance to the State educational agencies to assist 
such agencies to carry out their responsibilities under this subtitle.
    ``(c) Evaluation and Dissemination.--The Secretary shall conduct 
evaluation and dissemination activities of programs designed to meet 
the educational needs of homeless elementary and secondary school 
students, and may use funds appropriated under section 726 to conduct 
such activities.
    ``(d) Submission and Distribution.--The Secretary shall require 
applications for grants under this subtitle to be submitted to the 
Secretary not later than the expiration of the 60-day period beginning 
on the date that funds are available for purposes of making such grants 
and shall make such grants not later than the expiration of the 120-day 
period beginning on such date.
    ``(e) Determination by Secretary.--The Secretary, based on the 
information received from the States and information gathered by the 
Secretary under subsection (d), shall determine the extent to which 
State educational agencies are ensuring that each homeless child and 
homeless youth has access to a free appropriate public education as 
described in section 721(1).
    ``(f) Reports.--The Secretary shall prepare and submit a report to 
the Committee on Education and Labor of the House of Representatives 
and the Committee on Labor and Human Resources of the Senate on the 
programs and activities authorized by this subtitle by December 31, 
1997, and every third year thereafter.

``SEC. 725. DEFINITIONS.

    ``For the purpose of this subtitle, unless otherwise stated--
        ``(1) the term `Secretary' means the Secretary of Education; 
    and
        ``(2) the term `State' means each of the 50 States, the 
    District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 726. AUTHORIZATION OF APPROPRIATIONS.

    ``For the purpose of carrying out this subtitle, there are 
authorized to be appropriated $30,000,000 for fiscal year 1995 and such 
sums as may be necessary for each of the fiscal years 1996, 1997, 1998, 
and 1999.''.

                 PART C--REPEAL OF IMPACT AID STATUTES

SEC. 331. REPEAL OF IMPACT AID STATUTES.

    (a) Public Law 81-815.--The Act entitled ``An Act relating to the 
construction of school facilities in areas affected by Federal 
activities, and for other purposes'', approved September 23, 1950 (64 
Stat. 967; 20 U.S.C. 631 et seq.) is repealed.
    (b) Public Law 81-874.--The Act entitled ``An Act to provide 
assistance for local educational agencies in areas affected by Federal 
activities, and for other purposes'', approved September 30, 1950 (64 
Stat. 1100; 20 U.S.C. 236 et seq.) is repealed.

             PART D--AMENDMENTS TO THE ADULT EDUCATION ACT

SEC. 335. AMENDMENTS TO ADULT EDUCATION ACT.

    (a) State Plan.--Paragraph (11) of section 342(c) of the Adult 
Education Act (20 U.S.C. 1206a(c)(11)) is amended by inserting ``Even 
Start,'' after ``1963,''.
    (b) Authorization of Appropriations.--Subsection (n) of section 384 
of the Adult Education Act (20 U.S.C. 1213c(n)) is amended by striking 
``and 1995'' and inserting ``1995, and 1996''.

                        PART E--HIGHER EDUCATION

    SEC. 351. HIGHER EDUCATION AMENDMENTS TO THE CARL D. PERKINS 
      VOCATIONAL AND APPLIED TECHNOLOGY EDUCATION ACT.
    (a) Amendment.--The Carl D. Perkins Vocational and Applied 
Technology Education Act (20 U.S.C. 2301 et seq.) is amended--
        (1) in paragraph (2) of section 232(d)--
            (A) by inserting ``, notwithstanding section 427(b)(2) of 
        the Higher Education Amendments of 1992,'' before ``has''; and
            (B) by inserting ``as such section was in effect on July 
        22, 1992'' before the semicolon; and
        (2) in subparagraph (B) of section 404(a)(4)(B)--
            (A) by inserting ``, notwithstanding section 427(b)(2) of 
        the Higher Education Amendments of 1992,'' before ``has''; and
            (B) by inserting ``as such section was in effect on July 
        22, 1992'' before the period.
    (b) Effective Date.--Subsection (a) and the amendments made by 
subsection (a) shall take effect on the date of enactment of this Act, 
except that a State that, prior to such date, distributed funds under 
section 232 of the Carl D. Perkins Vocational and Applied Technology 
Education Act from funds appropriated for fiscal year 1994 for such 
program to proprietary institutions of higher education, as such term 
is defined in section 481(b) of the Higher Education Act of 1965, may 
continue to distribute such funds to such institutions until July 1, 
1995.

SEC. 352. TECHNICAL AMENDMENT TO THE SECOND MORRILL ACT.

    Section 5 of the Act of August 30, 1890 (26 Stat. 417, chapter 841; 
7 U.S.C. 326a) (commonly known as the ``Second Morrill Act'') is 
amended by striking ``and the Trust Territory of the Pacific Islands or 
its successor governments'' and inserting ``the Federated States of 
Micronesia, the Republic of the Marshall Islands, and the Republic of 
Palau''.

SEC. 353. DEFINITIONS FOR PART A OF TITLE III.

    Paragraph (1) of section 312(b) of the Higher Education Act of 1965 
(20 U.S.C. 1058(b)(1)) is amended--
        (1) by amending subparagraph (C) to read as follows:
            ``(C) which is--
                ``(i) legally authorized to provide, and provides 
            within the State, an educational program for which such 
            institution awards a bachelor's degree;
                ``(ii) a junior or community college; or
                ``(iii) the College of the Marshall Islands, the 
            College of Micronesia/Federated States of Micronesia, and 
            Palau Community College;''.
        (2) in subparagraph (D), by striking ``and'' after the 
    semicolon; and
        (3) by adding after subparagraph (E) the following new 
    subparagraph:
            ``(F) located in a State; and''.

SEC. 353A. PART D HEADING.

    The heading for part D of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1087a et seq.) is amended to read as follows:

        ``PART D--WILLIAM D. FORD FEDERAL DIRECT LOAN PROGRAM''.

    SEC. 354. AUTHORIZATION OF APPROPRIATIONS FOR THE NATIONAL EARLY 
      INTERVENTION SCHOLARSHIP AND PARTNERSHIP PROGRAM.
    Section 404G of the Higher Education Act of 1965 (20 U.S.C. 1070a-
27) is amended by striking the second sentence thereof.

SEC. 355. LENDER-OF-LAST-RESORT PROGRAMS.

    (a) Amendment.--Paragraph (1) of section 428(c) of the Higher 
Education Act of 1965 (20 U.S.C. 1078(c)(1)) is amended by adding at 
the end the following new subparagraph:
            ``(G) Notwithstanding any other provision of this section, 
        the Secretary shall exclude a loan made pursuant to a lender-
        of-last-resort program when making reimbursement payment 
        calculations under subparagraphs (B) and (C).''.
    (b) Effective Date.--Subsection (a) and the amendment made by 
subsection (a) shall take effect on August 10, 1993.

SEC. 356. FEDERAL CONSOLIDATION LOANS.

    Paragraph (4) of section 428C(a) of the Higher Education Act of 
1965 (20 U.S.C. 1078-3(a)(4)) is amended--
        (1) in subparagraph (B), by striking ``or'' after the 
    semicolon;
        (2) in subparagraph (C), by striking the period and inserting 
    ``; or''; and
        (3) by adding at the end the following new subparagraph:
            ``(D) made under subpart II of part B of title VIII of the 
        Public Health Service Act.''.

SEC. 357. DEFINITION OF ECONOMIC HARDSHIP.

    Paragraph (1) of section 435(o) of the Higher Education Act of 1965 
(20 U.S.C. 1085(o)(1)) is amended--
        (1) in clause (ii) of subparagraph (A), by striking ``or'' 
    after the semicolon;
        (2) by redesignating subparagraph (B) as subparagraph (C);
        (3) by inserting after subparagraph (A) the following new 
    subparagraph:
            ``(B) such borrower is working full-time and has a Federal 
        educational debt burden that equals or exceeds 20 percent of 
        such borrower's adjusted gross income, and the difference 
        between such borrower's adjusted gross income minus such burden 
        is less than 220 percent of the greater of--
                ``(i) the annual earnings of an individual earning the 
            minimum wage under section 6 of the Fair Labor Standards 
            Act of 1938; or
                ``(ii) the income official poverty line (as defined by 
            the Office of Management and Budget, and revised annually 
            in accordance with section 673(2) of the Community Services 
            Block Grant Act) applicable to a family of two; or''; and
        (4) in paragraph (2), by striking ``(1)(B)'' and inserting 
    ``(1)(C)''.
    SEC. 358. FACILITIES AUTHORITY OF THE STUDENT LOAN MARKETING 
      ASSOCIATION.
    Section 439 of the Higher Education Act of 1965 (20 U.S.C. 1087-2) 
is amended--
        (1) in subparagraph (C) of subsection (d)(1)--
            (A) in the matter preceding clause (i), by inserting 
        ``(including related equipment, instrumentation, and 
        furnishings)'' after ``materials'';
            (B) in clause (ii), by striking the semicolon and inserting 
        ``, dining halls, student unions, and facilities specifically 
        designed to promote fitness and health for students, faculty, 
        and staff or for physical education courses; and'';
            (C) in clause (iii), by striking ``and'' after the 
        semicolon;
            (D) in the matter following clause (iv)--
                (i) by striking ``15 percent'' and inserting ``30 
            percent''; and
                (ii) by striking ``type'' and inserting ``types''; and
            (E) by striking clause (iv); and
        (2) in subsection (n), by striking ``a report of its operations 
    and activities during each year'' and inserting ``a report of the 
    Association's operations and activities, including a report with 
    respect to all facilities transactions, during each year''.

SEC. 358A. PROGRAM AUTHORITY.

    Section 451 of the Higher Education Act of 1965 (20 U.S.C. 2087a) 
is amended--
        (1) by inserting ``(a) In General.--'' before ``There''; and
        (2) by adding at the end the following new subsection:
    ``(b) Designation.--
        ``(1) Program.--The program established under this part shall 
    be referred to as the `William D. Ford Federal Direct Loan 
    Program'.
        ``(2) Direct loans.--Notwithstanding any other provision of 
    this part, loans made to borrowers under this part that, except as 
    otherwise specified in this part, have the same terms, conditions, 
    and benefits as loans made to borrowers under section 428, shall be 
    known as `Federal Direct Stafford/Ford Loans'.''.

SEC. 359. DEFERMENT ELIGIBILITY.

    Subsection (f) of section 455 of the Higher Education Act of 1965 
(20 U.S.C. 1087e(f)) is amended by adding at the end the following new 
paragraphs:
        ``(3) Definition of borrower.--For the purpose of this 
    subsection, the term ``borrower'' means an individual who is a new 
    borrower on the date such individual applies for a loan under this 
    part for which the first disbursement is made on or after July 1, 
    1993.
        ``(4) Deferments for previous part b loan borrowers.--A 
    borrower of a loan made under this part, who at the time such 
    individual applies for such loan, has an outstanding balance of 
    principal or interest owing on any loan made, insured, or 
    guaranteed under part B of title IV prior to July 1, 1993, shall be 
    eligible for a deferment under section 427(a)(2)(C) or section 
    428(b)(1)(M) as such sections were in effect on July 22, 1992.''.
    SEC. 360. CLOCK AND CREDIT HOUR TREATMENT OF DIPLOMA NURSING 
      SCHOOLS.
    (a) Amendment.--Part G of title IV of the Higher Education Act of 
1965 (20 U.S.C. 1088 et seq.) is amended by inserting after section 481 
the following new section:
``SEC. 481A. CLOCK AND CREDIT HOUR TREATMENT OF DIPLOMA NURSING 
SCHOOLS.
    ``Notwithstanding any other provision of this Act, any regulations 
promulgated by the Secretary concerning the relationship between clock 
hours and semester, trimester, or quarter hours in calculating student 
grant, loan, or work assistance under this title, shall not apply to a 
public or private nonprofit hospital-based school of nursing that 
awards a diploma at the completion of the school's program of 
education.''.
    (b) Effective Date.--Subsection (a) and the amendment made by 
subsection (a) shall take effect on July 1, 1994.

SEC. 360A. ELIGIBILITY FOR STUDENTS FROM PALAU.

    Subsection (j) of section 484 of the Higher Education Act of 1965 
(20 U.S.C. 1091(j)) is amended to read as follows:
    ``(j) Assistance Under Subparts 1, 3, and 6, and Chapter 1 of 
Subpart 2, of Part A, and Part C.--Notwithstanding any other provision 
of law, a student shall be eligible, if otherwise qualified, for 
assistance under subparts 1, 3, and 6, and chapter 1 of subpart 2, of 
part A, and part C, of this title, if the student is otherwise 
qualified and--
        ``(1) is a citizen of the Federated States of Micronesia, the 
    Republic of the Marshall Islands, or the Republic of Palau, and 
    attends an institution of higher education in a State or a public 
    or nonprofit private institution of higher education in the 
    Federated States of Micronesia, the Republic of the Marshall 
    Islands, or the Republic of Palau; or
        ``(2) meets the requirements of subsection (a)(5) and attends a 
    public or nonprofit private institution of higher education in the 
    Federated States of Micronesia, the Republic of the Marshall 
    Islands, or the Republic of Palau.''.
SEC. 360B. DISCLOSURE OF ATHLETIC PROGRAM PARTICIPATION RATES AND 
FINANCIAL SUPPORT DATA.
    (a) Short Title.--This section may be cited as the ``Equity in 
Athletics Disclosure Act''.
    (b) Findings.--The Congress finds that--
        (1) participation in athletic pursuits plays an important role 
    in teaching young Americans how to work on teams, handle challenges 
    and overcome obstacles;
        (2) participation in athletic pursuits plays an important role 
    in keeping the minds and bodies of young Americans healthy and 
    physically fit;
        (3) there is increasing concern among citizens, educators, and 
    public officials regarding the athletic opportunities for young men 
    and women at institutions of higher education;
        (4) a recent study by the National Collegiate Athletic 
    Association found that in Division I-A institutions, only 20 
    percent of the average athletic department operations budget of 
    $1,310,000 is spent on women's athletics; 15 percent of the average 
    recruiting budget of $318,402 is spent on recruiting female 
    athletes; the average scholarship expenses for men is $1,300,000 
    and $505,246 for women; and an average of 143 grants are awarded to 
    male athletes and 59 to women athletes;
        (5) female college athletes receive less than 18 percent of the 
    athletics recruiting dollar and less than 24 percent of the 
    athletics operating dollar;
        (6) male college athletes receive approximately $179,000,000 
    more per year in athletic scholarship grants than female college 
    athletes;
        (7) prospective students and prospective student athletes 
    should be aware of the commitments of an institution to providing 
    equitable athletic opportunities for its men and women students; 
    and
        (8) knowledge of an institution's expenditures for women's and 
    men's athletic programs would help prospective students and 
    prospective student athletes make informed judgments about the 
    commitments of a given institution of higher education to providing 
    equitable athletic benefits to its men and women students.
    (c) Disclosure of Athletic Program.--Section 485 of the Higher 
Education Act of 1965 (20 U.S.C. 1092) is amended by adding at the end 
the following new subsection:
    ``(g) Data Required.--
        ``(1) In general.--Each coeducational institution of higher 
    education that participates in any program under this title, and 
    has an intercollegiate athletic program, shall annually, for the 
    immediately preceding academic year, prepare a report that contains 
    the following information regarding intercollegiate athletics:
            ``(A) The number of male and female full-time 
        undergraduates that attended the institution.
            ``(B) A listing of the varsity teams that competed in 
        intercollegiate athletic competition and for each such team the 
        following data:
                ``(i) The total number of participants, by team, as of 
            the day of the first scheduled contest for the team.
                ``(ii) Total operating expenses attributable to such 
            teams, except that an institution may also report such 
            expenses on a per capita basis for each team and 
            expenditures attributable to closely related teams such as 
            track and field or swimming and diving, may be reported 
            together, although such combinations shall be reported 
            separately for men's and women's teams.
                ``(iii) Whether the head coach is male or female and 
            whether the head coach is assigned to that team on a full-
            time or part-time basis. Graduate assistants and volunteers 
            who serve as head coaches shall be considered to be head 
            coaches for the purposes of this clause.
                ``(iv) The number of assistant coaches who are male and 
            the number of assistant coaches who are female for each 
            team and whether a particular coach is assigned to that 
            team on a full-time or part-time basis. Graduate assistants 
            and volunteers who serve as assistant coaches shall be 
            considered to be assistant coaches for the purposes of this 
            clause.
            ``(C) The total amount of money spent on athletically 
        related student aid, including the value of waivers of 
        educational expenses, separately for men's and women's teams 
        overall.
            ``(D) The ratio of athletically related student aid awarded 
        male athletes to athletically related student aid awarded 
        female athletes.
            ``(E) The total amount of expenditures on recruiting, 
        separately for men's and women's teams overall.
            ``(F) The total annual revenues generated across all men's 
        teams and across all women's teams, except that an institution 
        may also report such revenues by individual team.
            ``(G) The average annual institutional salary of the head 
        coaches of men's teams, across all offered sports, and the 
        average annual institutional salary of the head coaches of 
        women's teams, across all offered sports.
            ``(H) The average annual institutional salary of the 
        assistant coaches of men's teams, across all offered sports, 
        and the average annual institutional salary of the assistant 
        coaches of women's teams, across all offered sports.
        ``(2) Special rule.--For the purposes of subparagraph (G), if a 
    coach has responsibilities for more than one team and the 
    institution does not allocate such coach's salary by team, the 
    institution should divide the salary by the number of teams for 
    which the coach has responsibility and allocate the salary among 
    the teams on a basis consistent with the coach's responsibilities 
    for the different teams.
        ``(3) Disclosure of information to students and public.--An 
    institution of higher education described in paragraph (1) shall 
    make available to students and potential students, upon request, 
    and to the public, the information contained in the report 
    described in paragraph (1), except that all students shall be 
    informed of their right to request such information.
        ``(4) Definition.--For the purposes of this subsection, the 
    term `operating expenses' means expenditures on lodging and meals, 
    transportation, officials, uniforms and equipment.
        ``(5) Regulations and effective date.--The Secretary shall 
    issue final regulations to implement the requirements of this 
    subsection not later than 180 days following the enactment of this 
    subsection. Each institution described in paragraph (1) shall make 
    available its first report pursuant to this section not later than 
    October 1, 1996.''.

SEC. 360C. FEDERAL INSURANCE FOR BONDS.

    Subsection (b) of section 723 of the Higher Education Act of 1965 
(20 U.S.C. 1132c-2(b)) is amended--
        (1) in paragraph (8)--
            (A) in subparagraph (A), by inserting ``, with each 
        eligible institution required to maintain in the escrow account 
        an amount equal to 10 percent of the outstanding principal of 
        all loans made to such institution under this part'' before the 
        semicolon; and
            (B) by amending clause (ii) of subparagraph (B) to read as 
        follows:
                ``(ii) shall be used to return to an eligible 
            institution an amount equal to any remaining portion of 
            such institution's 10 percent deposit of loan proceeds 
            following scheduled repayment of such institution's 
            loan;''; and
        (2) in paragraph (11), by striking ``regulations'' and 
    inserting ``conditions''.
SEC. 360D. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION 
TRAINING FOR INCARCERATED YOUTH OFFENDERS.
    Title X of the Higher Education Act of 1965 (20 U.S.C. 1135 et 
seq.) is amended by adding at the end the following new part:

   ``PART E--GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION 
               TRAINING FOR INCARCERATED YOUTH OFFENDERS

``SEC. 1091. GRANTS TO STATES FOR WORKPLACE AND COMMUNITY TRANSITION 
TRAINING FOR INCARCERATED YOUTH OFFENDERS.
    ``(a) Findings.--The Congress finds the following:
        ``(1) Over 150,000 youth offenders age 21 and younger are 
    incarcerated in the Nation's jails, juvenile facilities, and 
    prisons.
        ``(2) Most youth offenders who are incarcerated have been 
    sentenced as first-time adult felons.
        ``(3) Approximately 75 percent of youth offenders are high 
    school dropouts who lack basic literacy and life skills, have 
    little or no job experience, and lack marketable skills.
        ``(4) The average incarcerated youth has attended school only 
    through grade 10.
        ``(5) Most of these youths can be diverted from a life of crime 
    into productive citizenship with available educational, vocational, 
    work skills, and related service programs.
        ``(6) If not involved with educational programs while 
    incarcerated, almost all of these youths will return to a life of 
    crime upon release.
        ``(7) The average length of sentence for a youth offender is 
    about 3 years. Time spent in prison provides a unique opportunity 
    for education and training.
        ``(8) Even with quality education and training provided during 
    incarceration, a period of intense supervision, support, and 
    counseling is needed upon release to ensure effective reintegration 
    of youth offenders into society.
        ``(9) Research consistently shows that the vast majority of 
    incarcerated youths will not return to the public schools to 
    complete their education.
        ``(10) There is a need for alternative educational 
    opportunities during incarceration and after release.
    ``(b) Definition.--For purposes of this part, the term `youth 
offender' means a male or female offender under the age of 25, who is 
incarcerated in a State prison, including a prerelease facility.
    ``(c) Grant Program.--The Secretary shall establish a program in 
accordance with this section to provide grants to the State 
correctional education agencies to assist and encourage incarcerated 
youths to acquire functional literacy, life, and job skills, through 
the pursuit of a postsecondary education certificate, or an associate 
of arts or bachelor's degree while in prison, and employment counseling 
and other related services which start during incarceration and 
continue through prerelease and while on parole.
    ``(d) Application.--To be eligible for a grant under this section, 
a State correctional education agency shall submit to the Secretary a 
proposal for a youth offender program that--
        ``(1) identifies the scope of the problem, including the number 
    of incarcerated youths in need of postsecondary education and 
    vocational training;
        ``(2) lists the accredited public or private educational 
    institution or institutions that will provide postsecondary 
    educational services;
        ``(3) lists the cooperating agencies, public and private, or 
    businesses that will provide related services, such as counseling 
    in the areas of career development, substance abuse, health, and 
    parenting skills;
        ``(4) describes the evaluation methods and performance measures 
    that the State correctional education agency will employ, provided 
    that such methods and measures are appropriate to meet the goals 
    and objectives of the proposal, and that such methods and measures 
    include measures of--
            ``(A) program completion;
            ``(B) student academic and vocational skill attainment;
            ``(C) success in job placement and retention; and
            ``(D) recidivism;
        ``(5) describes how the proposed programs are to be integrated 
    with existing State correctional education programs (such as adult 
    education, graduate education degree programs, and vocational 
    training) and State industry programs;
        ``(6) addresses the educational needs of youth offenders who 
    are in alternative programs (such as boot camps); and
        ``(7) describes how students will be selected so that only 
    youth offenders eligible under subsection (f) will be enrolled in 
    postsecondary programs.
    ``(e) Program Requirements.--Each State correctional education 
agency receiving a grant under this section shall--
        ``(1) integrate activities carried out under the grant with the 
    objectives and activities of the school-to-work programs of such 
    State, including--
            ``(A) work experience or apprenticeship programs;
            ``(B) transitional worksite job training for vocational 
        education students that is related to the occupational goals of 
        such students and closely linked to classroom and laboratory 
        instruction;
            ``(C) placement services in occupations that the students 
        are preparing to enter;
            ``(D) employment-based learning programs; and
            ``(E) programs that address State and local labor 
        shortages;
        ``(2) annually report to the Secretary and the Attorney General 
    on the results of the evaluations conducted using the methods and 
    performance measures contained in the proposal; and
        ``(3) provide to each State for each student eligible under 
    subsection (f) not more than $1,500 annually for tuition, books, 
    and essential materials, and not more than $300 annually for 
    related services such as career development, substance abuse 
    counseling, parenting skills training, and health education, for 
    each eligible incarcerated youth.
    ``(f) Student Eligibility.--A youth offender shall be eligible for 
participation in a program receiving a grant under this section if the 
youth offender--
        ``(1) is eligible to be released within five years (including a 
    youth offender who is eligible for parole within such time); and
        ``(2) is 25 years of age or younger.
    ``(g) Length of Participation.--A State correctional education 
agency receiving a grant under this section shall provide educational 
and related services to each participating youth offender for a period 
not to exceed 5 years, 1 year of which may be devoted to study in a 
graduate education degree program or to remedial education services for 
students who have obtained a secondary school diploma. Educational and 
related services shall start during the period of incarceration in 
prison or prerelease and may continue during the period of parole.
    ``(h) Education Delivery Systems.--State correctional education 
agencies and cooperating institutions shall, to the extent practicable, 
use high-tech applications in developing programs to meet the 
requirements and goals of this section.
    ``(i) Allocation of Funds.--From the amounts appropriated pursuant 
to subsection (j), the Secretary shall allot to each State an amount 
that bears the same relationship to such funds as the total number of 
students eligible under subsection (f) in such State bears to the total 
number of such students in all States.
    ``(j) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $5,000,000 for fiscal year 1995 
and such sums as may be necessary for fiscal year 1996 and each of the 
four succeeding fiscal years.''.

                           PART F--OTHER ACTS

SEC. 361. GOALS 2000: EDUCATE AMERICA ACT.

    (a) Repeals.--Sections 231, 232, 234, and 235 of the Goals 2000: 
Educate America Act (20 U.S.C. 5861, 5862, 5863, and 5864) are 
repealed.
    (b) Gift Authority.--
        (1) National education goals panel.--Section 204 of the Goals 
    2000: Educate America Act (20 U.S.C. 5824) is amended by adding at 
    the end the following new subsection:
    ``(f) Gifts.--The Goals Panel may accept, administer, and utilize 
gifts or donations of services, money, or property, whether real or 
personal, tangible or intangible.''.
        (2) National education standards and improvement council.--
    Section 215 of the Goals 2000: Educate America Act (20 U.S.C. 5845) 
    is amended by adding at the end the following new subsection:
    ``(f) Gifts.--The Council may accept, administer, and utilize gifts 
or donations of services, money, or property, whether real or personal, 
tangible or intangible.''.
    (c) Local Agency Plan Approval.--Paragraph 4 of section 309(a) of 
the Goals 2000: Educate America Act (20 U.S.C. 5889) is amended by 
inserting ``made by the local educational agency'' after 
``modifications''.
    (d) State Planning for Improving Student Achievement Through 
Integration of Technology Into the Curriculum.--Subsection (b) of 
section 317 of the Goals 2000: Educate America Act (20 U.S.C. 5897(b)) 
is amended by adding at the end the following new paragraph:
        ``(3) Outlying areas.--(A) From the amount appropriated 
    pursuant to the authority of subsection (f) for fiscal year 1995, 
    the Secretary shall reserve a total of 1 percent to provide 
    assistance under this section--
            ``(i) to the outlying areas; and
            ``(ii) for the Secretary of the Interior to conduct 
        directly or through a contract, systemic technology planning 
        for Bureau-funded schools.
        ``(B) The funds reserved under subparagraph (A) shall be 
    distributed among the outlying areas and the Secretary of the 
    Interior by the Secretary according to the relative need of such 
    areas and schools for assistance under this section.''.

SEC. 362. EDUCATION COUNCIL ACT OF 1991.

    Title II of the Education Council Act of 1991 (20 U.S.C. 1221-1 
note) is repealed.
    SEC. 363. AUGUSTUS F. HAWKINS-ROBERT T. STAFFORD ELEMENTARY AND 
      SECONDARY SCHOOL IMPROVEMENT AMENDMENTS OF 1988.
    Title IV of the Augustus F. Hawkins-Robert T. Stafford Elementary 
and Secondary School Improvement Amendments of 1988 (20 U.S.C. 4901 et 
seq.) is repealed.

SEC. 364. STAR SCHOOLS PROGRAM ASSISTANCE ACT.

    The Star Schools Program Assistance Act (20 U.S.C. 4081 et seq.) is 
repealed.
    SEC. 365. FUND FOR THE IMPROVEMENT AND REFORM OF SCHOOLS AND 
      TEACHING ACT.
    The Fund for the Improvement and Reform of Schools and Teaching Act 
(20 U.S.C. 4801) is repealed.
    SEC. 366. TECHNOLOGY-RELATED ASSISTANCE FOR INDIVIDUALS WITH 
      DISABILITIES ACT OF 1988.
    (a) In General.--Part E of title II of the Technology-Related 
Assistance for Individuals With Disabilities Act of 1988 (29 U.S.C. 
2231 et seq.) is repealed.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as if included in the Technology-Related Assistance for 
Individuals With Disabilities Act Amendments of 1994.

SEC. 367. INDIAN EDUCATION ACT OF 1988.

    The Indian Education Act of 1988 (25 U.S.C. 2601 note) is repealed.

SEC. 368. REHABILITATION ACT.

    (a) In General.--Notwithstanding any provision of the 
Rehabilitation Act of 1973, the amount otherwise payable to a State 
under section 111 of such Act shall be reduced for fiscal years 1987, 
1988, and 1989, by the amount by which expenditures from non-Federal 
sources under the State plan under title I of such Act for such year 
are less than the total of such expenditures for fiscal year 1972.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the Rehabilitation Act Amendments of 1992.
    SEC. 369. AMENDMENT TO THE CARL D. PERKINS VOCATIONAL AND APPLIED 
      TECHNOLOGY EDUCATION ACT REGARDING THE TERRITORIES.
    Section 101A of the Carl D. Perkins Vocational and Applied 
Technology Education Act (20 U.S.C. 2311a) is amended to read as 
follows:

``SEC. 101A. THE TERRITORIES.

    ``(a) The Territories.--From funds reserved pursuant to section 
101(a)(1)(C), the Secretary shall--
        ``(1) make a grant in the amount of $500,000 to Guam; and
        ``(2) make a grant in the amount of $190,000 to each of 
    American Samoa and the Commonwealth of the Northern Mariana 
    Islands.
    ``(b) Remainder.--Subject to the provisions of subsection (a), the 
Secretary shall make a grant of the remainder of funds reserved 
pursuant to section 101(a)(1)(C) to the Pacific Region Educational 
Laboratory in Honolulu, Hawaii, to make grants for vocational education 
and training in Guam, American Samoa, the Republic of Palau, the 
Commonwealth of the Northern Mariana Islands, the Federated States of 
Micronesia, and the Republic of the Marshall Islands, for the purpose 
of providing direct educational services, including--
        ``(1) teacher and counselor training and retraining;
        ``(2) curriculum development; and
        ``(3) improving vocational education and training programs in 
    secondary schools and institutions of higher education, or 
    improving cooperative education programs involving both secondary 
    schools and institutions of higher education.
    ``(c) Limitation.--The Pacific Region Educational Laboratory may 
use not more than 5 percent of the funds received pursuant to 
subsection (b) for administrative costs.''.

SEC. 370. FAMILY SUPPORT CENTER PROGRAM.

    (a) Administrative Provisions.--Subsection (f) of section 772 of 
the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11482(f)) is 
amended--
        (1) by amending paragraph (1) to read as follows:
        ``(1) Administrative costs.--Two percent of the amounts 
    appropriated under this title may be used by the Secretary to 
    administer the programs established under this title and three 
    percent of the amounts appropriated under this title may be used by 
    the Secretary to evaluate such programs and to provide technical 
    assistance to entities for the development and submission of 
    applications for grants under this section.'';
        (2) in paragraph (3), by striking ``2 years'' and inserting ``3 
    years''; and
        (3) by adding at the end thereof the following new paragraph:
        ``(4) Minimum amount.--No grant made under subsection (a) may 
    be awarded in an amount that is less than $200,000 per year.''.
    (b) Report.--The matter preceding paragraph (1) of section 777 of 
such Act (42 U.S.C. 11487) is amended by striking ``1992'' and 
inserting ``1995''.
    (c) Authorization for Appropriations.--Section 779 of such Act (42 
U.S.C. 11489) is amended by striking ``for fiscal year 1993'' and 
inserting ``for each of the fiscal years 1993 through 1998''.
    (d) Technical Amendment.--Subsection (a) of section 774 of such Act 
(42 U.S.C. 11484(a)) is amended by striking ``subsection (e)'' and 
inserting ``subsection (d)''.

SEC. 371. THE NATIONAL FOUNDATION ON THE ARTS AND THE HUMANITIES ACT OF 
              1965.

    Subsection (c) of section 11 of the National Foundation on the Arts 
and the Humanities Act of 1965 (20 U.S.C. 960(c)) is amended--
        (1) in the second sentence of paragraph (1)--
            (A) by striking ``any fiscal year'' and inserting ``fiscal 
        year 1995''; and
            (B) by striking ``$50,000'' and inserting ``$100,000''; and
        (2) in the second sentence of paragraph (2)--
            (A) by striking ``any fiscal year'' and inserting ``fiscal 
        year 1995''; and
            (B) by striking ``$50,000'' and inserting ``$100,000''.
    SEC. 372. OFFICE OF INDIAN EDUCATION; OFFICE OF BILINGUAL 
      EDUCATION.
    Title II of the Department of Education Organization Act (20 U.S.C. 
3411 et seq.) is further amended--
        (1) by redesignating section 215 as section 217; and
        (2) by adding after section 214 (as added by section 271(c)) 
    the following new section:

``SEC. 215. OFFICE OF INDIAN EDUCATION.

    ``(a) Office of Indian Education.--There shall be an Office of 
Indian Education (referred to in this section as `the Office') in the 
Department of Education.
    ``(b) Director.--
        ``(1) Appointment and reporting.--The Office shall be under the 
    direction of the Director, who shall be appointed by the Secretary 
    and who shall report directly to the Assistant Secretary for 
    Elementary and Secondary Education.
        ``(2) Duties.--The Director shall--
            ``(A) be responsible for administering this title;
            ``(B) be involved in, and be primarily responsible for, the 
        development of all policies affecting Indian children and 
        adults under programs administered by the Office of Elementary 
        and Secondary Education;
            ``(C) coordinate the development of policy and practice for 
        all programs in the Department relating to Indian persons; and
            ``(D) assist the Assistant Secretary of the Office of 
        Educational Research and Improvement in identifying research 
        priorities related to the education of Indian persons.
    ``(c) Indian Preference in Employment.--
        ``(1) In general.--The Secretary shall give a preference to 
    Indian persons in all personnel actions in the Office.
        ``(2) Implementation.--Such preference shall be implemented in 
    the same fashion as the preference given to any veteran under 
    section 45 of title 25, United States Code.
``SEC. 216. OFFICE OF BILINGUAL EDUCATION AND MINORITY LANGUAGES 
AFFAIRS.
    ``(a) Establishment.--There shall be, in the Department, an Office 
of Bilingual Education and Minority Languages Affairs through which the 
Secretary shall carry out functions relating to bilingual education.
    ``(b) Director.--
        ``(1) In general.--The Office shall be headed by a Director of 
    Bilingual Education and Minority Languages Affairs, appointed by 
    the Secretary, to whom the Secretary shall delegate all delegable 
    functions relating to bilingual education. The Director shall also 
    be assigned responsibility for recommending improvements and 
    providing technical assistance to other Federal programs serving 
    language-minority and limited-English-proficient students and their 
    families and for assisting the Assistant Secretary of the Office of 
    Educational Research and Improvement in identifying research 
    priorities which reflect the needs of language-minority and 
    limited-English language proficient students.
        ``(2) Organization.--The Office shall be organized as the 
    Director determines to be appropriate in order to carry out such 
    functions and responsibilities effectively.
        ``(3) Inclusion.--The Secretary shall ensure that limited-
    English-proficient and language-minority students are included in 
    ways that are valid, reliable, and fair under all standards and 
    assessment development conducted or funded by the Department.''.

       PART G--LIBRARY SERVICES AND CONSTRUCTION REAUTHORIZATION

    SEC. 375. LIBRARY SERVICES AND CONSTRUCTION ACT AUTHORIZATIONS.
    (a) In General.--Subsection (a) of section 4 of the Library 
Services and Construction Act (20 U.S.C. 351b(a)) is amended--
        (1) by striking ``for fiscal year 1990 and such sums as may be 
    necessary for each of the 4 succeeding fiscal years'' each place 
    the phrase appears and inserting ``for fiscal year 1995''; and
        (2) in the matter following paragraph (7), by striking ``each 
    of the fiscal years 1990, 1991, 1992, 1993, and 1994'' and 
    inserting ``fiscal year 1995''.
    (b) Family Learning Centers.--Section 806 (20 U.S.C. 385e) is 
amended to read as follows:


                    ``authorization of appropriations

    ``Sec. 806. There are authorized to be appropriated such sums as 
may be necessary for fiscal year 1995 to carry out this part.''.
    (c) Library Literacy Centers.--Section 818 (20 U.S.C. 386g) is 
amended to read as follows:


                    ``authorization of appropriations

    ``Sec. 818. There are authorized to be appropriated such sums as 
may be necessary for fiscal year 1995 to carry out this part.''.

     PART H--AMENDMENTS TO STATUTES PERTAINING TO INDIAN EDUCATION

SEC. 381. BUREAU OF INDIAN AFFAIRS.

    Part B of title XI of the Education Amendments of 1978 (25 U.S.C. 
2001 et seq.) is amended to read as follows:

              ``PART B--BUREAU OF INDIAN AFFAIRS PROGRAMS

``SEC. 1121. STANDARDS FOR THE BASIC EDUCATION OF INDIAN CHILDREN IN 
BUREAU OF INDIAN AFFAIRS SCHOOLS.
    ``(a)(1) The purpose of the standards developed under this section 
shall be to afford Indian students being served by a Bureau funded 
school with the same opportunities as all other students to achieve the 
National Education Goals embodied in the Goals 2000: Educate America 
Act. Consistent with the provisions of this section and section 1131, 
the Secretary shall take such actions as are necessary to coordinate 
standards developed and implemented under this section with those in 
the State improvement plans developed and implemented pursuant to the 
Goals 2000: Educate America Act for the States in which each Bureau 
funded school operates. In developing and reviewing such standards and 
coordination, the Secretary shall utilize the findings and 
recommendations of the panel established in section 315(b)(4) of such 
Act.
    ``(2) The Secretary shall take immediate steps to encourage school 
boards of Bureau funded schools to engage their communities in adopting 
declarations of purposes of education in their communities, analyzing 
the implications of such purposes for their schools, and determining 
how such purposes may be made to motivate students and faculties and 
otherwise animate their schools by May 1, 1995. Such declarations shall 
represent the aspirations of a community for the kinds of persons such 
community wants its children to increasingly become, and shall include 
such purposes as assuring that all learners are becoming accomplished 
in ways important to themselves and respected by their parents and 
communities, shaping worthwhile and satisfying lives for themselves, 
exemplifying the best values of the community and humankind, and 
becoming increasingly effective in shaping the character and quality of 
the world all learners share.
    ``(b) Within 18 months of the publication of the voluntary national 
content standards described in section 213(a) of the Goals 2000: 
Educate America Act, the Secretary, in consultation with the Secretary 
of Education and Indian organizations and tribes, shall carry out or 
cause to be carried out by contract with an Indian organization such 
studies and surveys, making the fullest use possible of other existing 
studies, surveys, and plans, as are necessary to establish and revise 
standards for the basic education of Indian children attending Bureau 
funded schools. Such studies and surveys shall take into account 
factors such as academic needs, local cultural differences, type and 
level of language skills, geographic isolation, and appropriate 
teacher-student ratios for such children, and shall be directed toward 
the attainment of equal educational opportunity for such children.
    ``(c)(1) The Secretary shall revise the minimum academic standards 
published in the Federal Register of September 9, 1985 (50 Fed. Reg. 
174) for the basic education of Indian children in accordance with the 
purpose described in subsection (a) and the findings of the studies and 
surveys described in subsection (b), and shall publish such revised 
standards in the Federal Register for the purpose of receiving comments 
from the tribes and other interested parties. Within 21 months of the 
date of enactment of the Improving America's Schools Act of 1994, the 
Secretary shall establish final standards, distribute such standards to 
all the tribes and publish such final standards in the Federal 
Register. The Secretary shall revise such final standards periodically 
as necessary. Prior to any revision of such final standards, the 
Secretary shall distribute such proposed revision to all the tribes, 
and publish such proposed revision in the Federal Register, for the 
purpose of receiving comments from the tribes and other interested 
parties.
    ``(2) The standards described in paragraph (1) shall apply to 
Bureau schools, and subject to subsection (f), to contract or grant 
schools, and may also serve as a model for educational programs for 
Indian children in public schools. In establishing and revising such 
standards, the Secretary shall take into account the special needs of 
Indian students and the support and reinforcement of the specific 
cultural heritage of each tribe.
    ``(d) The Secretary shall provide alternative or modified standards 
in lieu of the standards established under subsection (c), where 
necessary, so that the programs of each school shall be in compliance 
with the minimum standards required for accreditation of schools in the 
State where the school is located.
    ``(e) A tribal governing body, or the local school board so 
designated by the tribal governing body, shall have the local authority 
to waive, in part or in whole, the standards established under 
subsection (c) and (d), where such standards are deemed by such body to 
be inappropriate. The tribal governing body or designated school board 
shall, within 60 days thereafter, submit to the Secretary a proposal 
for alternative standards that take into account the specific needs of 
the tribe's children. Such revised standards shall be established by 
the Secretary unless specifically rejected by the Secretary for good 
cause and in writing to the affected tribes or local school board, 
which rejection shall be final and unreviewable.
    ``(f)(1) The Secretary, through contracting and grant-making 
procedures, shall assist school boards of contract or grant schools in 
the implementation of the standards established under subsections (c) 
and (d), if the school boards request that such standards, in part or 
in whole, be implemented. At the request of a contract or grant school 
board, the Secretary shall provide alternative or modified standards 
for the standards established under subsections (c) and (d) to take 
into account the needs of the Indian children and the contract or grant 
school.
    ``(2) Within 1 year of the date of the enactment of the Indian 
Education Technical Amendments Act of 1985, the Bureau shall, either 
directly or through contract with an Indian organization, establish a 
consistent system of reporting standards for fiscal control and fund 
accounting for all contract or grant schools. Such standards shall 
yield data results comparable to those used by Bureau schools.
    ``(g) Subject to subsections (e) and (f), the Secretary shall begin 
to implement the standards established under this section immediately 
upon the date of their establishment. Not later than January 1, 1995, 
and at each time thereafter that the annual budget request for Bureau 
educational services is presented, the Secretary shall submit to the 
appropriate committees of Congress a detailed plan to bring all Bureau 
schools and contract or grant schools up to the level required by the 
applicable standards established under this section. Such plan shall 
include detailed information on the status of each school's educational 
program in relation to the applicable standards established under this 
section, specific cost estimates for meeting such standards at each 
school, and specific time lines for bringing each school up to the 
level required by such standards.
    ``(h)(1) Except as specifically required by statute, no school or 
peripheral dormitory operated by the Bureau on or after January 1, 
1992, may be closed or consolidated or have its program substantially 
curtailed unless done according to the requirements of this subsection, 
except that, in those cases where the tribal governing body, or the 
local school board concerned (if so designated by the tribal governing 
body), requests closure or consolidation, the requirements of this 
subsection shall not apply. The requirements of this subsection shall 
not apply when a temporary closure, consolidation, or substantial 
curtailment is required by plant conditions which constitute an 
immediate hazard to health and safety.
    ``(2) The Secretary shall, by regulation, promulgate standards and 
procedures for the closing, consolidation, or substantial curtailment 
of Bureau schools in accordance with the requirements of this 
subsection.
    ``(3) Whenever closure, transfer to any other authority, 
consolidation, or substantial curtailment of a school is under active 
consideration or review by any division of the Bureau or the Department 
of the Interior, the affected tribe, tribal governing body, and 
designated local school board, will be notified as soon as such 
consideration or review begins, kept fully and currently informed, and 
afforded an opportunity to comment with respect to such consideration 
or review. When a formal decision is made to close, transfer to any 
other authority, consolidate, or substantially curtail a school, the 
affected tribe, tribal governing body, and designated local school 
board shall be notified at least 6 months prior to the end of the 
school year preceding the proposed closure date. Copies of any such 
notices and information shall be transmitted promptly to the Congress 
and published in the Federal Register.
    ``(4) The Secretary shall make a report to Congress, the affected 
tribe, and the designated local school board describing the process of 
the active consideration or review referred to in paragraph (3). At a 
minimum, the report shall include a study of the impact of such action 
on the student population, with every effort to identify those students 
with particular educational and social needs, and to ensure that 
alternative services are available to such students. Such report shall 
include the description of the consultation conducted between the 
potential service provider, current service provider, parents, tribal 
representative and the tribe or tribes involved, and the Director of 
the Office of Indian Education Programs within the Bureau regarding 
such students. No irreversible action may be taken in furtherance of 
any such proposed school closure, transfer to any other authority, 
consolidation, or substantial curtailment (including any action which 
would prejudice the personnel or programs of such school) until the end 
of the first full academic year after such report is made.
    ``(5) The Secretary may terminate, contract, transfer to any other 
authority, or consolidate or substantially curtail the operation or 
facilities of--
        ``(A) any Bureau funded school that is operated on or after 
    April 1, 1987,
        ``(B) any program of such a school that is operated on or after 
    April 1, 1987, or
        ``(C) any school board of a school operated under a grant under 
    the Tribally Controlled Schools Act of 1988,
only if the tribal governing body approves such action.
    ``(i) There are authorized to be appropriated such sums as may be 
necessary, for academic program costs, in order to bring all Bureau 
schools and contract or grant schools up to the level required by the 
applicable standards established under this section.
    ``(j)(1) All Bureau funded schools shall include within their 
curriculum a program of instruction relating to alcohol and substance 
abuse prevention and treatment. The Assistant Secretary shall provide 
the technical assistance necessary to develop and implement such a 
program for students in kindergarten and grades 1 through 12, at the 
request of--
        ``(A) any Bureau school (subject to the approval of the school 
    board of such school);
        ``(B) any school board of a school operating under a contract 
    entered into under the Indian Self-Determination and Education 
    Assistance Act (25 U.S.C. 450 et seq.); or
        ``(C) any school board of a school operating under a grant 
    under the Tribally Controlled Schools Act of 1988.
    ``(2) In schools operated directly by the Bureau, the Secretary 
shall provide for--
        ``(A) accurate reporting of all incidents relating to alcohol 
    and substance abuse; and
        ``(B) individual student crisis intervention.
    ``(3) The programs requested under paragraph (1) shall be developed 
in consultation with the Indian tribe that is to be served by such 
program and health personnel in the local community of such tribe.
    ``(4) Schools requesting program assistance under this subsection 
are encouraged to involve family units and, where appropriate, tribal 
elders and Native healers in such instructions.
    ``(k) For purposes of this section, the term `tribal governing 
body' means, with respect to any school, the tribal governing body, or 
tribal governing bodies, that represent at least 90 percent of the 
students served by such school.
    ``(l)(1)(A)(i) The Secretary shall only consider the factors 
described in subparagraphs (B) and (C) in reviewing--
        ``(I) applications from any tribe for the awarding of a 
    contract or grant for a school that is not a Bureau funded school; 
    and
        ``(II) applications from any tribe or school board of any 
    Bureau funded school for--
            ``(aa) a school which is not a Bureau funded school; or
            ``(bb) the expansion of a Bureau funded school which would 
        increase the amount of funds received by the Indian tribe or 
        school board under section 1127.
    ``(ii) The Secretary shall give consideration to all of the factors 
under clause (i), but none of the applications under clause (i) may be 
denied based primarily upon the geographic proximity of public 
education.
    ``(B) The Secretary shall consider the following factors relating 
to the program that is the subject of an application described in 
subparagraph (A):
        ``(i) The adequacy of facilities or the potential to obtain or 
    provide adequate facilities.
        ``(ii) Geographic and demographic factors in the affected 
    areas.
        ``(iii) Adequacy of the applicant's program plans or, in the 
    case of a Bureau funded school, of projected needs analysis done 
    either by a tribe or by Bureau personnel.
        ``(iv) Geographic proximity of comparable public education.
        ``(v) The stated needs of all affected parties, including 
    students, families, tribal governments at both the central and 
    local levels, and school organizations.
    ``(C) The Secretary shall consider with respect to applications 
described in subparagraph (A) the following factors relating to all the 
educational services available at the time the application is 
considered:
        ``(i) Geographic and demographic factors in the affected areas.
        ``(ii) Adequacy and comparability of programs already 
    available.
        ``(iii) Consistency of available programs with tribal 
    educational codes or tribal legislation on education.
        ``(iv) The history and success of these services for the 
    proposed population to be served, as determined from all factors 
    and not just standardized examination performance.
    ``(2)(A) The Secretary shall make a determination of whether to 
approve any application described in paragraph (1)(A) by not later than 
the date that is 180 days after the day on which such application is 
submitted to the Secretary.
    ``(B) If the Secretary fails to make the determination described in 
subparagraph (A) with respect to an application by the date described 
in subparagraph (A), the application shall be treated as having been 
approved by the Secretary.
    ``(3)(A) Any application described in paragraph (1)(A) may be 
submitted to the Secretary only if--
        ``(i) the application has been approved by the tribal governing 
    body of the students served by (or to be served by) the school or 
    program that is the subject of the application, and
        ``(ii) written evidence of such approval is submitted with the 
    application.
    ``(B) Each application described in paragraph (1)(A)--
        ``(i) shall provide information concerning each of the factors 
    described in paragraph (1)(B), and
        ``(ii) may provide information concerning the factors described 
    in paragraph (1)(C).
    ``(4) Whenever the Secretary makes a determination to deny approval 
of any application described in paragraph (1)(A), the Secretary shall--
        ``(A) state the objections in writing to the applicant by not 
    later than the date that is 180 days after the day on which the 
    application is submitted to the Secretary,
        ``(B) provide assistance to the applicant to overcome stated 
    objections, and
        ``(C) provide the applicant a hearing, under the same rules and 
    regulations pertaining to the Indian Self-Determination and 
    Education Assistance Act, and an opportunity to appeal the 
    objections raised by the Secretary.
    ``(5)(A) Except as otherwise provided in this paragraph, the action 
which is the subject of any application described in paragraph (1)(A) 
that is approved by the Secretary shall become effective with the 
commencement of the academic year succeeding the fiscal year in which 
the application is approved, or at an earlier date determined by the 
Secretary.
    ``(B) If an application is treated as having been approved by the 
Secretary by reason of paragraph (2)(B), the action that is the subject 
of the application shall become effective on the date that is 18 months 
after the date on which the application is submitted to the Secretary, 
or at an earlier date determined by the Secretary.

``SEC. 1122. NATIONAL CRITERIA FOR DORMITORY SITUATIONS.

    ``(a) The Secretary, in consultation with the Secretary of the 
Department of Education, and in consultation with Indian organizations 
and tribes, shall conduct or cause to be conducted by contract with an 
Indian organization, a study of the costs applicable to boarding 
arrangements for Indian students provided in Bureau schools, and 
contract or grant schools, for the purpose of establishing national 
criteria for such dormitory situations. Such criteria shall include 
adult-child ratios, needs for counselors (including special needs 
related to off-reservation boarding arrangements), space, and privacy.
    ``(b) Not later than January 1, 1996, the Secretary shall propose 
such criteria, and shall distribute such proposed criteria to the 
tribes and publish such proposed criteria in the Federal Register for 
the purpose of receiving comments from the tribes and other interested 
parties. Within 18 months of the date of the enactment of the Improving 
America's Schools Act of 1994, the Secretary shall establish final 
criteria, distribute such final criteria to all the tribes, and publish 
such final criteria in the Federal Register. The Secretary shall revise 
such final criteria periodically as necessary. Any revisions to the 
criteria established under this section shall be developed subject to 
requirements established under section 1131.
    ``(c) The Secretary shall begin to implement the criteria 
established under this section immediately upon the date of the 
establishment of such criteria. Not later than January 1, 1997, and at 
each time thereafter that the annual budget request for Bureau 
educational services is presented, the Secretary shall submit to the 
appropriate committees of Congress a detailed plan to bring all Bureau 
contract boarding schools up to the criteria established under this 
section. Such plan shall include predictions for the relative need for 
each boarding school in the future, detailed information on the status 
of each school in relation to the criteria established under this 
section, specific cost estimates for meeting such criteria at each 
school, and specific time lines for bringing each school up to the 
level required by such criteria.
    ``(d)(1) The criteria established under this section may be waived 
in the same manner as the standards provided under section 1121(c) may 
be waived under section 1121(e).
    ``(2) No school in operation on or before January 1, 1987 
(regardless of compliance or noncompliance with the criteria 
established under this section) may be closed, transferred to another 
authority, consolidated or have its program substantially curtailed for 
failure to meet the criteria.
    ``(3) By not later than May 1, 1996, the Secretary shall submit to 
the Congress a report detailing the costs associated with, and the 
actions necessary for, complete compliance with the criteria 
established under this section.
    ``(e) There are authorized to be appropriated such sums as may be 
necessary in order to bring each school up to the level required by the 
criteria established under this section.

``SEC. 1123. REGULATIONS.

    ``(a) The provisions of part 32 of title 25 of the Code of Federal 
Regulations, as in effect on January 1, 1987, are incorporated into 
this Act and shall be treated as though such provisions are set forth 
in this subsection. Accordingly, such provisions may be altered only by 
means of an amendment to this subsection that is contained in an Act or 
joint resolution which is enacted into law. To the extent that such 
provisions of part 32 do not conform with this Act or any statutory 
provision of law enacted before the date of enactment of this Act, the 
provisions of this Act and the provisions of such other statutory law 
shall govern.
    ``(b) The provisions of parts 31, 33, 36, 39, 42, and 43 of title 
25 of the Code of Federal Regulations, as in effect on January 1, 1987, 
shall be applied by the Federal Government and shall not, before July 
1, 1989, be amended, revoked, or altered in any manner. No officer or 
employee of the executive branch shall have the authority to issue any 
other regulations, prior to July 1, 1989, that supersede, supplement, 
or otherwise affect the provisions of such parts. To the extent that 
the provisions of such parts do not conform with this Act or any 
statutory provision of law enacted before the date of enactment of this 
Act, the provisions of this Act and the provisions of such other 
statutory law shall govern.
    ``(c) After June 30, 1989, no regulation prescribed for the 
application of any program provided under this title shall become 
effective unless--
        ``(1) the regulation has been published as a proposed 
    regulation in the Federal Register,
        ``(2) an opportunity of not less than 90 days has been afforded 
    the public to comment on the published proposed regulation, and
        ``(3) the regulation has, after such period for public comment, 
    been published in the Federal Register as a final regulation.
    ``(d) For purposes of this section, the term `regulation' means any 
rules, regulations, guidelines, interpretations, orders, or 
requirements of general applicability prescribed by any officer or 
employee of the executive branch.

``SEC. 1124. SCHOOL BOUNDARIES.

    ``(a) The Secretary shall, in accordance with this section, 
establish separate geographical attendance areas for each Bureau 
school.
    ``(b)(1) Except as provided in paragraph (2), on or after July 1, 
1985, no attendance area shall be changed or established with respect 
to any Bureau funded school unless the tribal governing body or the 
local school board concerned (if so designated by the tribal governing 
body) has been (i) afforded at least six months notice of the intention 
of the Bureau to change or establish such attendance area, and (ii) 
given the opportunity to propose alternative boundaries. Any tribe may 
petition the Secretary for revision of existing attendance area 
boundaries. The Secretary shall accept such proposed alternative or 
revised boundaries unless the Secretary finds, after consultation with 
the affected tribe or tribes, that such revised boundaries do not 
reflect the needs of the Indian students to be served or do not provide 
adequate stability to all of the affected programs.
    ``(2) In any case where there is more than 1 Bureau funded school 
located on an Indian reservation, at the direction of the tribal 
governing body, the relevant school boards of the Bureau funded schools 
on the reservation may, by mutual consent, establish the relevant 
attendance areas for such schools, subject to the approval of the 
tribal governing body. Any such boundaries so established shall be 
accepted by the Secretary.
    ``(c) In any case where there is only 1 Bureau operated program 
located on an Indian reservation, the attendance area for the program 
shall be the boundaries of the reservation served, and those students 
residing near the reservation shall also receive services from such 
program.
    ``(d) The Bureau shall include in the regulations the requirement 
that each appropriate education line officer coordinate and consult 
with the affected tribes and relevant school boards in the 
establishment of such geographic boundaries.

``SEC. 1125. FACILITIES CONSTRUCTION.

    ``(a) The Secretary shall immediately begin to bring all schools, 
dormitories, and other facilities operated by the Bureau or under 
contract or grant with the Bureau in connection with the education of 
Indian children into compliance with all applicable Federal, tribal, or 
State health and safety standards, whichever provide greater protection 
(except that the tribal standards to be applied shall be no greater 
than any otherwise applicable Federal or State standards), with section 
504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), and with the 
Americans with Disabilities Act of 1990, except that nothing in this 
section shall require termination of the operations of any facility 
which does not comply with such provisions and which is in use on the 
date of enactment of the Improving America's Schools Act of 1994.
    ``(b) By January 1, 1996, and at each time thereafter that the 
annual budget request for Bureau educational services is presented, the 
Secretary shall submit to the appropriate committees of Congress a 
detailed plan to bring such facilities into compliance with such 
standards. Such plan shall include detailed information on the status 
of each facility's compliance with such standards, specific cost 
estimates for meeting such standards at each school, and specific time 
lines for bringing each school into compliance with such standards.
    ``(c) Within six months of the date of enactment of this Act, the 
Secretary shall submit to the appropriate committees of Congress, and 
publish in the Federal Register, the system used to establish 
priorities for school construction projects. At the time any budget 
request for school construction is presented, the Secretary shall 
publish in the Federal Register and submit with the budget request the 
current list of all school construction priorities.
    ``(d)(1) A Bureau school may be closed or consolidated, and the 
programs of a Bureau school may be substantially curtailed, by reason 
of plant conditions that constitute an immediate hazard to health and 
safety only if a health and safety officer of the Bureau determines 
that such conditions exist at the Bureau school.
    ``(2)(A) In making determinations described in paragraph (1) before 
July 1, 1989, health and safety officers of the Bureau shall use the 
health and safety guidelines of the Bureau that were in effect on 
January 1, 1988.
    ``(B)(i) If--
        ``(I) the Secretary fails to publish in the Federal Register in 
    final form before July 1, 1989, and
        ``(II) action described in paragraph (1) is taken after June 
    30, 1989, and before the date on which such regulations are 
    published in final form in the Federal Register by reason of the 
    condition of any plant,
an inspection of the condition of such plant shall be conducted by an 
appropriate tribal, county, municipal, or State health and safety 
officer to determine whether conditions at such plant constitute an 
immediate hazard to health and safety. Such inspection shall be 
completed by not later than the date that is 30 days after the date on 
which the action described in paragraph (1) is taken.
    ``(ii) The inspection required under clause (i) shall be conducted 
by a health and safety officer designated jointly by the Secretary and 
the tribes affected by the action described in paragraph (1). If the 
Secretary and such tribes are unable to agree on the designation of the 
health and safety officer, the Secretary shall designate the health and 
safety officer and shall provide notice of such designation to each of 
such tribes before the inspection is conducted by such officer.
    ``(iii) If the health and safety officer conducting an inspection 
of a plant required under clause (i) determines that conditions at the 
plant do not constitute an immediate hazard to health and safety, any 
consolidation or curtailment that was made by reason of conditions at 
the plant shall immediately cease and any school closed by reason of 
conditions at the plant shall be reopened immediately.
    ``(3) If--
        ``(A) a Bureau school is temporarily closed or consolidated, or 
    the programs of a Bureau school are substantially curtailed, by 
    reason of plant conditions that constitute an immediate hazard to 
    health and safety, and
        ``(B) the Secretary estimates that the closure, consolidation, 
    or curtailment will be more than 1 year in duration,
the Secretary shall submit to the Congress, by not later than the date 
that is 6 months after the date on which the closure, consolidation, or 
curtailment is initiated, a report which sets forth the reasons for 
such temporary actions and the actions the Secretary is taking to 
eliminate the conditions that constitute the hazard.
    ``(e) There are authorized to be appropriated such sums as may be 
necessary to carry out subsection (a).

``SEC. 1126. BUREAU OF INDIAN AFFAIRS EDUCATION FUNCTIONS.

    ``(a) The Secretary shall vest in the Assistant Secretary for 
Indian Affairs all functions with respect to formulation and 
establishment of policy and procedure, and supervision of programs and 
expenditures of Federal funds for the purpose of Indian education 
administered by the Bureau. The Assistant Secretary shall carry out 
such functions through the Director of the Office of Indian Education.
    ``(b) The Director of the Office shall direct and supervise the 
operations of all personnel directly and substantially involved with 
provision of education services by the Bureau, including school or 
institution custodial or maintenance personnel. The Assistant Secretary 
for Indian Affairs shall provide for the adequate coordination between 
the affected Bureau Offices and the Office to facilitate the 
consideration of all contract functions relating to education. Except 
as required by section 1129, nothing in this Act shall be construed to 
require the provision of separate support services for Indian 
education.
    ``(c) Education personnel who are under the direction and 
supervision of the Director of the Office in accordance with the first 
sentence of subsection (b) shall--
        ``(1) monitor and evaluate Bureau education programs,
        ``(2) provide all services and support functions for education 
    programs with respect to personnel matters involving staffing 
    actions and functions, and
        ``(3) provide technical and coordinating assistance in areas 
    such as procurement, contracting, budgeting, personnel, and 
    curriculum.
    ``(d)(1) The Assistant Secretary shall submit in the annual Budget 
a plan--
        ``(A) for school facilities to be constructed under the system 
    required by section 1125(c);
        ``(B) for establishing priorities among projects and for the 
    improvement and repair of education facilities, which together 
    shall form the basis for the distribution of appropriated funds; 
    and
        ``(C) including a 5-year plan for capital improvements.
    ``(2)(A) The Assistant Secretary shall establish a program, 
including the distribution of appropriated funds, for the operation and 
maintenance of education facilities. Such program shall include--
        ``(i) a method of computing the amount necessary for each 
    education facility;
        ``(ii) similar treatment of all Bureau funded schools;
        ``(iii) a notice of an allocation of appropriated funds from 
    the Director of the Office directly to the appropriate education 
    line officers; and
        ``(iv) a system for the conduct of routine preventive 
    maintenance.
    ``(B) The appropriate education line officers shall make 
arrangements for the maintenance of education facilities with the local 
supervisors of the Bureau maintenance personnel who are under the 
authority of the agency superintendent or area directors, respectively. 
The local supervisors of Bureau maintenance personnel shall take 
appropriate action to implement the decisions made by the appropriate 
education line officers, except that no funds under this part may be 
authorized for expenditure unless such appropriate education line 
officer is assured that the necessary maintenance has been, or will be, 
provided in a reasonable manner. Subject to the requirements of 
subsection (b) of this section, nothing in this Act shall be construed 
to require the provision of separate operations and maintenance 
personnel for the Office.
    ``(3) The requirements of this subsection shall be implemented not 
later than July 1, 1995.
    ``(e) Notwithstanding any other provision of law, the Director 
shall promulgate guidelines for the establishment of mechanisms for the 
acceptance of gifts and bequests for the use of, and benefit of, 
particular schools or designated Bureau operated education programs, 
including, where appropriate, the establishment and administration of 
trust funds. When a Bureau operated program is the beneficiary of such 
a gift or bequest, the Director shall make provisions for monitoring 
its use, and shall report to the appropriate committees of Congress the 
amount and terms of such gift or bequest, the use to which such gift or 
bequest is put, and any positive results achieved by such action.
    ``(f) For the purpose of this section the term `functions' includes 
powers and duties.

``SEC. 1127. ALLOTMENT FORMULA.

    ``(a)(1) The Secretary shall establish, by regulation adopted in 
accordance with section 1139, a formula for determining the minimum 
annual amount of funds necessary to sustain each Bureau funded school. 
In establishing such formula, the Secretary shall consider--
        ``(A) the number of eligible Indian students served and size of 
    the school;
        ``(B) special cost factors, such as--
            ``(i) the isolation of the school;
            ``(ii) the need for special staffing, transportation, or 
        educational programs;
            ``(iii) food and housing costs;
            ``(iv) maintenance and repair costs associated with the 
        physical condition of the educational facilities;
            ``(v) special transportation and other costs of isolated 
        and small schools;
            ``(vi) the costs of boarding arrangements, where determined 
        necessary by a tribal governing body or designated local school 
        board;
            ``(vii) costs associated with greater lengths of service by 
        educational personnel; and
            ``(viii) special programs for gifted and talented students;
        ``(C) the cost of providing academic services which are at 
    least equivalent to those provided by public schools in the State 
    in which the school is located; and
        ``(D) such other relevant factors as the Secretary determines 
    are appropriate.
    ``(2) Upon the establishment of the standards required by sections 
1121 and 1122, the Secretary shall revise the formula established under 
this subsection to reflect the cost and funding standards so 
established. Prior to January 1, 1996, the Secretary shall review the 
formula established under this section and shall take such steps as may 
be necessary to increase the availability of counseling services for 
students in off-reservation boarding schools and other Bureau operated 
residential facilities. Concurrent with such action, the Secretary 
shall review the standards established under section 1121 to be certain 
that adequate provision is made for parental notification regarding, 
and consent for, such counseling services.
    ``(b) Notwithstanding any other provisions of law, Federal funds 
appropriated for the general local operation of Bureau funded schools 
shall be allotted pro rata in accordance with the formula established 
under subsection (a).
    ``(c)(1) For fiscal year 1990, and for each subsequent fiscal year, 
the Secretary shall adjust the formula established under subsection (a) 
to--
        ``(A) use a weighted unit of 1.2 for each eligible Indian 
    student enrolled in the seventh and eighth grades of the school in 
    considering the number of eligible Indian students served by the 
    school;
        ``(B) consider a school with an enrollment of less than 50 
    eligible Indian students as having an average daily attendance of 
    50 eligible Indian students for purposes of implementing the 
    adjustment factor for small schools; and
        ``(C) take into account the provision of residential services 
    on a less than 9-month basis at a school when the school board and 
    supervisor of the school determine that a less than 9-month basis 
    will be implemented for the school year involved.
    ``(2)(A) The Secretary shall reserve for national school board 
training 0.2 percent of the funds appropriated for each fiscal year for 
distribution under this section. Such training shall be conducted 
through the same organizations through which, and in the same manner in 
which, the training was conducted in fiscal year 1992, except that the 
contracts for distribution of such funds shall require that such funds 
be distributed by the recipient organizations in a manner that assures 
the same pro rata share is made available for training for each school 
board in the system. If the contract for such training is not awarded 
before May 1 of each fiscal year, the contract under which such 
training was provided for the fiscal year preceding such fiscal year 
shall be renewed by the Secretary for such fiscal year. The agenda for 
the training sessions shall be established by the school boards through 
their regional or national organizations.
    ``(B) For each year in which the Secretary uses a weighted unit 
formula established under subsection (a) to fund Bureau schools, a 
Bureau school which generates less than 168 weighted units shall 
receive an additional 2 weighted units to defray school board 
activities.
    ``(C) From the funds allotted in accordance with the formula 
established under subsection (a) for each Bureau school, the local 
school board of such school may reserve an amount which does not exceed 
the greater of--
        ``(i) $5,000, or
        ``(ii) the lesser of--
            ``(I) $15,000, or
            ``(II) 1 percent of such allotted funds,
for school board activities for such school, including and 
notwithstanding any other provision of law, meeting expenses and the 
cost of membership in, and support of, organizations engaged in 
activities on behalf of Indian education.
    ``(3) The Secretary shall adjust the formula established under 
subsection (a) to use a weighted unit of 2.0 for each eligible Indian 
student that--
        ``(A) is gifted and talented, and
        ``(B) is enrolled in the school on a full-time basis,
in considering the number of eligible Indian students served by the 
school.
    ``(4)(A) The Secretary shall adjust the formula established under 
subsection (a) to use a weighted unit of 0.25 for each eligible Indian 
student who is enrolled in a year-long credit course in an Indian or 
Native language as part of the regular curriculum of a school, in 
considering the number of eligible Indian students served by such 
school.
    ``(B) The adjustment required under subparagraph (A) shall be used 
for such school after--
        ``(i) the certification of the Indian or Native language 
    curriculum by the school board of such school to the Secretary, 
    together with an estimate of the number of full-time students 
    expected to be enrolled in the curriculum in the second school year 
    following the school year for which the certification is made; and
        ``(ii) the funds appropriated for allotment under this section 
    are designated by the appropriations Act appropriating such funds 
    as the amount necessary to implement such adjustment at such school 
    without reducing allotments made under this section to any school 
    by virtue of such adjustment.
    ``(d) The Secretary shall reserve from the funds available for 
distribution for each fiscal year under this section an amount which, 
in the aggregate, shall equal 1 percent of the funds available for such 
purpose for that fiscal year. Such funds shall be used, at the 
discretion of the Director of the Office, to meet emergencies and 
unforeseen contingencies affecting the education programs funded under 
this section. Funds reserved under this subsection may only be expended 
for education services or programs at a schoolsite (as defined in 
section 5204(c)(2) of the Tribally Controlled Schools Act of 1988). 
Funds reserved under this subsection shall remain available without 
fiscal year limitation until expended. However, the aggregate amount 
available from all fiscal years may not exceed 1 percent of the current 
year funds. Whenever the Secretary makes funds available under this 
subsection, the Secretary shall report such action to the appropriate 
committees of Congress within the annual budget submission.
    ``(e) Supplemental appropriations enacted to meet increased pay 
costs attributable to school level personnel shall be distributed under 
this section.
    ``(f) For the purpose of this section, the term `eligible Indian 
student' means a student who--
        ``(1) is a member of or is at least a \1/4\ degree Indian blood 
    descendant of a member of an Indian tribe which is eligible for the 
    special programs and services provided by the United States through 
    the Bureau to Indians because of their status as Indians, and
        ``(2) resides on or near an Indian reservation or meets the 
    criteria for attendance at a Bureau off-reservation boarding 
    school.
    ``(g)(1) An eligible Indian student may not be charged tuition for 
attendance at a Bureau school or contract or grant school. A student 
attending a Bureau school under paragraph (2)(C) may not be charged 
tuition.
    ``(2) The Secretary may permit the attendance at a Bureau school of 
a student who is not an eligible Indian student if--
        ``(A) the Secretary determines that the student's attendance 
    will not adversely affect the school's program for eligible Indian 
    students because of cost, overcrowding, or violation of standards,
        ``(B) the school board consents,
        ``(C) the student is a dependent of a Bureau, Indian Health 
    Service, or tribal government, employee who lives on or near the 
    school site, or
        ``(D) a tuition is paid for the student that is not more than 
    that charged by the nearest public school district for out-of-
    district students, is in addition to the school's allocation under 
    this section.
    ``(3) The school board of a contract or grant school may permit 
students who are not eligible Indian students under this subsection to 
attend its contract school or grant school and any tuition collected 
for those students is in addition to funding under this section.
    ``(h) Notwithstanding any other provision of law, at the election 
of the school board of a Bureau school made at any time during the 
fiscal year, a portion equal to not more than 15 percent of the funds 
allocated with respect to a school under this section for any fiscal 
year shall remain available to the school for expenditure without 
fiscal year limitation. The Assistant Secretary shall take steps as may 
be necessary to implement this provision immediately.
    ``(i) Beginning with academic year 1994-1995, tuition for the out-
of-State students boarding at the Richfield Dormitory in Richfield, 
Utah, who attend Sevier County high schools in Richfield, Utah, shall 
be paid from the Indian school equalization program funds authorized in 
this section and section 1130 at a rate not to exceed the amount per 
weighted student unit for that year for the instruction of such 
students. No additional administrative cost funds shall be added to the 
grant.

``SEC. 1128. ADMINISTRATIVE COST GRANTS.

    ``(a)(1) The Secretary shall, subject to the availability of 
appropriated funds, provide grants to each tribe or tribal organization 
operating a contract school or grant school in the amount determined 
under this section with respect to the tribe or tribal organization for 
the purpose of paying the administrative and indirect costs incurred in 
operating contract or grant schools in order to--
        ``(A) enable tribes and tribal organizations operating such 
    schools, without reducing direct program services to the 
    beneficiaries of the program, to provide all related administrative 
    overhead services and operations necessary to meet the requirements 
    of law and prudent management practice, and
        ``(B) carry out other necessary support functions which would 
    otherwise be provided by the Secretary or other Federal officers or 
    employees, from resources other than direct program funds, in 
    support of comparable Bureau operated programs.
    ``(2) Amounts appropriated to fund the grants provided under this 
section shall be in addition to, and shall not reduce, the amounts 
appropriated for the program being administered by the contract or 
grant school.
    ``(b)(1) The amount of the grant provided to each tribe or tribal 
organization under this section for each fiscal year shall be 
determined by applying the administrative cost percentage rate of the 
tribe or tribal organization to the aggregate of the Bureau elementary 
and secondary functions operated by the tribe or tribal organization 
for which funds are received from or through the Bureau. The 
administrative cost percentage rate determined under subsection (c) 
does not apply to other programs operated by the tribe or tribal 
organization.
    ``(2) The Secretary shall--
        ``(A) reduce the amount of the grant determined under paragraph 
    (1) to the extent that payments for administrative costs are 
    actually received by an Indian tribe or tribal organization under 
    any Federal education program included in the direct cost base of 
    the tribe or tribal organization, and
        ``(B) take such actions as may be necessary to be reimbursed by 
    any other department or agency of the Federal Government for the 
    portion of grants made under this section for the costs of 
    administering any program for Indians that is funded by 
    appropriations made to such other department or agency.
    ``(c)(1) For purposes of this section, the administrative cost 
percentage rate for a contract or grant school for a fiscal year is 
equal to the percentage determined by dividing--
        ``(A) the sum of--
            ``(i) the amount equal to--
                ``(I) the direct cost base of the tribe or tribal 
            organization for the fiscal year, multiplied by
                ``(II) the minimum base rate, plus
            ``(ii) the amount equal to--
                ``(I) the standard direct cost base, multiplied by
                ``(II) the maximum base rate, by
        ``(B) the sum of--
            ``(i) the direct cost base of the tribe or tribal 
        organization for the fiscal year, plus
            ``(ii) the standard direct cost base.
    ``(2) The administrative cost percentage rate shall be determined 
to the \1/100\ of a decimal point.
    ``(d)(1)(A) Funds received by a tribe or contract or grant school 
as grants under this section for tribal elementary or secondary 
educational programs may be combined by the tribe or contract or grant 
school into a single administrative cost account without the necessity 
of maintaining separate funding source accounting.
    ``(B) Indirect cost funds for programs at the school which share 
common administrative services with tribal elementary or secondary 
educational programs may be included in the administrative cost account 
described in subparagraph (A).
    ``(2) Funds received as grants under this section with respect to 
tribal elementary or secondary education programs shall remain 
available to the contract or grant school without fiscal year 
limitation and without diminishing the amount of any grants otherwise 
payable to the school under this section for any fiscal year beginning 
after the fiscal year for which the grant is provided.
    ``(3) Funds received as grants under this section for Bureau funded 
programs operated by a tribe or tribal organization under a contract or 
agreement shall not be taken into consideration for purposes of 
indirect cost underrecovery and overrecovery determinations by any 
Federal agency for any other funds, from whatever source derived.
    ``(4) In applying this section and section 105 of the Indian Self-
Determination and Education Assistance Act with respect to an Indian 
tribe or tribal organization that--
        ``(A) receives funds under this section for administrative 
    costs incurred in operating a contract or grant school or a school 
    operated under the Tribally Controlled Schools Act of 1988, and
        ``(B) operates 1 or more other programs under a contract or 
    grant provided under the Indian Self-Determination and Education 
    Assistance Act,
the Secretary shall ensure that the Indian tribe or tribal organization 
is provided with the full amount of the administrative costs, and of 
the indirect costs, that are associated with operating the contract or 
grant school, a school operated under the Tribally Controlled Schools 
Act of 1988, and all of such other programs, except that funds 
appropriated for implementation of this section shall be used only to 
supply the amount of the grant required to be provided by this section.
    ``(e) For purposes of this section:
        ``(1)(A) The term `administrative cost' means the costs of 
    necessary administrative functions which--
            ``(i) the tribe or tribal organization incurs as a result 
        of operating a tribal elementary or secondary educational 
        program,
            ``(ii) are not customarily paid by comparable Bureau 
        operated programs out of direct program funds, and
            ``(iii) are either--
                ``(I) normally provided for comparable Bureau programs 
            by Federal officials using resources other than Bureau 
            direct program funds, or
                ``(II) are otherwise required of tribal self-
            determination program operators by law or prudent 
            management practice.
        ``(B) The term `administrative cost' may include--
            ``(i) contract or grant (or other agreement) 
        administration;
            ``(ii) executive, policy, and corporate leadership and 
        decisionmaking;
            ``(iii) program planning, development, and management;
            ``(iv) fiscal, personnel, property, and procurement 
        management;
            ``(v) related office services and record keeping; and
            ``(vi) costs of necessary insurance, auditing, legal, 
        safety and security services.
        ``(2) The term `Bureau elementary and secondary functions' 
    means--
            ``(A) all functions funded at Bureau schools by the Office;
            ``(B) all programs--
                ``(i) funds for which are appropriated to other 
            agencies of the Federal Government, and
                ``(ii) which are administered for the benefit of 
            Indians through Bureau schools; and
            ``(C) all operation, maintenance, and repair funds for 
        facilities and government quarters used in the operation or 
        support of elementary and secondary education functions for the 
        benefit of Indians, from whatever source derived.
        ``(3)(A) Except as otherwise provided in this subparagraph (B), 
    the direct cost base of a tribe or tribal organization for the 
    fiscal year is the aggregate direct cost program funding for all 
    tribal elementary or secondary educational programs operated by the 
    tribe or tribal organization during--
            ``(i) the second fiscal year preceding such fiscal year, or
            ``(ii) if such programs have not been operated by the tribe 
        or tribal organization during the 2 preceding fiscal years, the 
        first fiscal year preceding such fiscal year.
        ``(B) In the case of Bureau elementary or secondary education 
    functions which have not previously been operated by a tribe or 
    tribal organization under contract, grant, or agreement with the 
    Bureau, the direct cost base for the initial year shall be the 
    projected aggregate direct cost program funding for all Bureau 
    elementary and secondary functions to be operated by the tribe or 
    tribal organization during that fiscal year.
        ``(4) The term `maximum base rate' means 50 percent.
        ``(5) The term `minimum base rate' means 11 percent.
        ``(6) The term `standard direct cost base' means $600,000.
        ``(7) The term `tribal elementary or secondary educational 
    programs' means all Bureau elementary and secondary functions, 
    together with any other Bureau programs or portions of programs 
    (excluding funds for social services that are appropriated to 
    agencies other than the Bureau and are expended through the Bureau, 
    funds for major subcontracts, construction, and other major capital 
    expenditures, and unexpended funds carried over from prior years) 
    which share common administrative cost functions, that are operated 
    directly by a tribe or tribal organization under a contract, grant, 
    or agreement with the Bureau.
    ``(f)(1) Upon the date of enactment of the Indian Education 
Amendments of 1988, the Secretary shall--
        ``(A) conduct such studies as may be needed to establish an 
    empirical basis for determining relevant factors substantially 
    affecting the required administrative costs of tribal elementary 
    and secondary educational programs, using the formula set forth in 
    subsection (c), and
        ``(B) conduct a study to determine--
            ``(i) a maximum base rate which ensures that the amount of 
        the grants provided under this section will provide adequate 
        (but not excessive) funding of the administrative costs of the 
        smallest tribal elementary or secondary educational programs,
            ``(ii) a minimum base rate which ensures that the amount of 
        the grants provided under this section will provide adequate 
        (but not excessive) funding of the administrative costs of the 
        largest tribal elementary or secondary educational programs, 
        and
            ``(iii) a standard direct cost base which is the aggregate 
        direct cost funding level for which the percentage determined 
        under subsection (c) will--
                ``(I) be equal to the median between the maximum base 
            rate and the minimum base rate, and
                ``(II) ensure that the amount of the grants provided 
            under this section will provide adequate (but not 
            excessive) funding of the administrative costs of tribal 
            elementary or secondary educational programs closest to the 
            size of the program.
    ``(2) The studies required under paragraph (1) shall--
        ``(A) be conducted in full consultation (in accordance with 
    section 1131) with--
            ``(i) the tribes and tribal organizations that are affected 
        by the application of the formula set forth in subsection (c), 
        and
            ``(ii) all national and regional Indian organizations of 
        which such tribes and tribal organizations are typically 
        members;
        ``(B) be conducted onsite with a representative statistical 
    sample of the tribal elementary or secondary educational programs 
    under a contract entered into with a nationally reputable public 
    accounting and business consulting firm;
        ``(C) take into account the availability of skilled labor, 
    commodities, business and automatic data processing services, 
    related Indian preference and Indian control of education 
    requirements, and any other market factors found substantially to 
    affect the administrative costs and efficiency of each such tribal 
    elementary or secondary educational program studied in order to 
    assure that all required administrative activities can reasonably 
    be delivered in a cost effective manner for each such program, 
    given an administrative cost allowance generated by the values, 
    percentages, or other factors found in the studies to be relevant 
    in such formula;
        ``(D) identify, and quantify in terms of percentages of direct 
    program costs, any general factors arising from geographic 
    isolation, or numbers of programs administered, independent of 
    program size factors used to compute a base administrative cost 
    percentage in such formula; and
        ``(E) identify any other incremental cost factors substantially 
    affecting the costs of required administrative cost functions at 
    any of the tribal elementary or secondary educational programs 
    studied and determine whether the factors are of general 
    applicability to other such programs, and (if so) how the factors 
    may effectively be incorporated into such formula.
    ``(3) In carrying out the studies required under this subsection, 
the Secretary shall obtain the input of, and afford an opportunity to 
participate to, the Inspector General of the Department of the 
Interior.
    ``(4) Determinations described in paragraph (2)(C) shall be based 
on what is pragmatically possible to do at each location studied, given 
prudent management practice, irrespective of whether required 
administrative services were actually or fully delivered at these 
sites, or other services were delivered instead, during the period of 
the study.
    ``(5) Upon completion of the studies conducted under paragraph (1), 
but in no case later than October 1, 1989, the Secretary shall submit 
to the Congress a report on the findings of the studies, together with 
determinations based upon such findings that would affect the 
definitions of terms used in the formula that is set forth in 
subsection (c).
    ``(6) The Secretary shall include in the Bureau's justification for 
each appropriations request for each fiscal year beginning after fiscal 
year 1989, a projection of the overall costs associated with the 
formula set forth in subsection (c) for all tribal elementary or 
secondary educational programs which the Secretary expects to be funded 
in the fiscal year for which the appropriations are sought.
    ``(7) For purposes of this subsection, the size of tribal 
elementary or secondary educational programs is determined by the 
aggregate direct cost program funding level for all Bureau funded 
programs which share common administrative cost functions.
    ``(g)(1) There are authorized to be appropriated for each fiscal 
year such sums as may be necessary to carry out this section.
    ``(2) If the total amount of funds necessary to provide grants to 
tribes and tribal organizations in the amounts determined under 
subsection (b) for a fiscal year exceeds the amount of funds 
appropriated to carry out this section for such fiscal year, the 
Secretary shall reduce the amount of each grant determined under 
subsection (b) for such fiscal year by an amount that bears the same 
relationship to such excess as the amount of such grant determined 
under subsection (b) bears to the total of all grants determined under 
subsection (b) for all tribes and tribal organizations for such fiscal 
year.
    ``(h)(1) Notwithstanding any other provision of this section, the 
amount of the grants provided under this section for fiscal year 1989 
shall--
        ``(A) in lieu of being determined under subsection (b), be 
    determined for each tribal elementary or secondary educational 
    program on the same basis that indirect costs were determined for 
    such programs for fiscal year 1988, and
        ``(B) be subject to the provisions of subsection (d).
    ``(2) Notwithstanding any other provision of this section, the 
amount of the grant provided under this section for fiscal year 1990 
with respect to each tribal elementary and secondary educational 
program that was operated by a tribe or tribal organization in fiscal 
year 1989 shall be equal to--
        ``(A) if the amount of the grant determined under subsection 
    (b) for fiscal year 1990 with respect to such program exceeds the 
    amount received by the tribe or tribal organization with respect to 
    such program for administrative costs for fiscal year 1988 (or 
    fiscal year 1989 if such program was not operated by the tribe or 
    tribal organization during fiscal year 1988), the sum of--
            ``(i) such amount received, plus
            ``(ii) \1/3\ of the excess of--
                ``(I) such amount determined under subsection (b), over
                ``(II) such amount received, or
        ``(B) if such amount received exceeds such amount determined 
    under subsection (b), the excess of--
            ``(i) such amount received, over
            ``(ii) an amount equal to \1/3\ of the excess of--
                ``(I) such amount received, over
                ``(II) such amount determined under subsection (b).
    ``(3) Notwithstanding any other provision of this section, the 
amount of the grants provided under this section for fiscal year 1991 
with respect to each tribal elementary and secondary educational 
program that was operated by a tribe or tribal organization in fiscal 
year 1989 shall be equal to--
        ``(A) if the amount of the grant determined under subsection 
    (b) for fiscal year 1991 with respect to such program exceeds the 
    amount received by the tribe or tribal organization with respect to 
    such program for administrative costs for fiscal year 1990, the sum 
    of--
            ``(i) such amount received, plus
            ``(ii) \1/2\ of the excess of--
                ``(I) such amount determined under subsection (b), over
                ``(II) such amount received, or
        ``(B) if such amount received exceeds such amount determined 
    under subsection (b), the excess of--
            ``(i) such amount received, over
            ``(ii) an amount equal to \1/2\ of the excess of--
                ``(I) such amount received over,
                ``(II) such amount determined under subsection (b).
    ``(i) The provisions of this section shall also apply to those 
schools operating under the Tribally Controlled Schools Act of 1988.

``SEC. 1129. DIVISION OF BUDGET ANALYSIS.

    ``(a) Within 24 months of the date of enactment of the Improving 
America's Schools Act of 1994, the Secretary shall establish within the 
Office a Division of Budget Analysis (hereinafter referred to as the 
`Division'). Such Division shall be under the direct supervision and 
control of the Director of the Office.
    ``(b) The Division shall have the capacity to conduct such studies, 
surveys, or other activities as are necessary to gather demographic 
information on Bureau-funded schools (current and future) and project 
the amount necessary to provide Indian students in such schools the 
educational program set forth in this part.
    ``(c) The Division shall prepare projections on such amounts, along 
with such other information as the Director of the Office shall 
require, for each fiscal year beginning after October 1, 1996. The 
Director of the Office and the Assistant Secretary for Indian Affairs 
shall use such reports when preparing their annual budget submissions.

``SEC. 1130. UNIFORM DIRECT FUNDING AND SUPPORT.

    ``(a)(1) Within six months after the date of enactment of the 
Improving America's Schools Act of 1994, the Secretary shall establish, 
by regulation adopted in accordance with section 1139, a system for the 
direct funding and support of all Bureau funded schools. Such system 
shall allot funds, in accordance with section 1127. All amounts 
appropriated for distribution under this section may be made available 
under paragraph (2).
    ``(2)(A) For the purpose of affording adequate notice of funding 
available pursuant to the allotments made by section 1127, amounts 
appropriated in an appropriation Act for any fiscal year shall become 
available for obligation by the affected schools on July 1 of the 
fiscal year in which such amounts are appropriated without further 
action by the Secretary, and shall remain available for obligation 
through the succeeding fiscal year.
    ``(B) The Secretary shall, on the basis of the amount appropriated 
in accordance with this paragraph--
        ``(i) publish, on July 1 of the fiscal year for which the funds 
    are appropriated, allotments to each affected school made under 
    section 1127 of 85 percent of such appropriation; and
        ``(ii) publish, not later than September 30 of such fiscal 
    year, the allotments to be made under section 1127 of the remaining 
    15 percent of such appropriation, adjusted to reflect actual 
    student attendance.
    ``(3)(A) Notwithstanding any law or regulation, the supervisor of a 
Bureau school may expend an aggregate of not more than $35,000 of the 
amount allotted the school under section 1127 to acquire supplies and 
equipment for the school without competitive bidding if--
        ``(i) the cost for any single item purchased does not exceed 
    $10,000;
        ``(ii) the school board approves the procurement;
        ``(iii) the supervisor certifies that the cost is fair and 
    reasonable;
        ``(iv) the documents relating to the procurement executed by 
    the supervisor or other school staff cite this paragraph as 
    authority for the procurement; and
        ``(v) the transaction is documented in a journal maintained at 
    the school clearly identifying when the transaction occurred, what 
    was acquired and from whom, the prices paid, the quantities 
    acquired, and any other information the supervisor or school board 
    considers relevant.
    ``(B) The Director shall be responsible for determining the 
application of this paragraph, including the authorization of specific 
individuals to carry out this paragraph, and shall be responsible for 
the provision of guidelines on the use of this paragraph and adequate 
training on such guidelines.
    ``(4) If a sequestration order issued under the Balanced Budget and 
Emergency Deficit Control Act of 1985 reduces the amount of funds 
available for allotment under section 1127 for any fiscal year by more 
than 7 percent of the amount of funds available for allotment under 
such section during the preceding fiscal year--
        ``(A) the Secretary, notwithstanding any other law, may use--
            ``(i) funds appropriated for the operation of any Bureau 
        school that is closed or consolidated, and
            ``(ii) funds appropriated for any program that has been 
        curtailed at any Bureau school,
    to fund allotments made under section 1127, and
        ``(B) the Secretary may waive the application of the provisions 
    of section 1121(h) with respect to the closure or consolidation of 
    a school, or the curtailment of a program at a school, during such 
    fiscal year if the funds described in clauses (i) and (ii) of 
    subparagraph (A) with respect to such school are used to fund 
    allotments made under section 1127 for such fiscal year.
    ``(b) In the case of all Bureau schools, allotted funds shall be 
expended on the basis of local financial plans which shall be prepared 
by the local school supervisor in active consultation with the local 
school board for each school, and the local school board for each 
school shall have the authority to ratify, reject, or amend such 
financial plan, and expenditures thereunder, and, on its own 
determination or in response to the supervisor of the school, to revise 
such financial plan to meet needs not foreseen at the time of 
preparation of the financial plan. The supervisor shall provide the 
appropriate union representative of the education employees with copies 
of proposed draft financial plans and all amendments or modifications 
thereto, at the same time such copies are submitted to the local school 
board. The supervisor of the school may appeal any such action of the 
local school board to the appropriate education line officer of the 
Bureau agency by filing a written statement describing the action and 
the reasons the supervisor believes such action should be overturned. A 
copy of such statement shall be submitted to the local school board and 
such board shall be afforded an opportunity to respond, in writing, to 
such appeal. After reviewing such written appeal and response, the 
appropriate education line officer may, for good cause, overturn the 
action of the local school board. The appropriate line education 
officer shall transmit the determination of such appeal in the form of 
a written opinion to such board and to such supervisor identifying the 
reasons for overturning such action.
    ``(c) Funds for self-determination grants under section 103(a)(2) 
of the Indian Self-Determination and Education Assistance Act shall not 
be used for providing technical assistance and training in the field of 
education by the Bureau unless such services are provided in accordance 
with a plan, agreed to by the tribe or tribes affected and the Bureau, 
under which control of education programs is intended to be transferred 
to such tribe or tribes within a specific period of time negotiated 
under such agreement. The Secretary may approve applications for 
funding tribal divisions of education and the development of tribal 
codes of education from funds appropriated pursuant to section 104(a) 
of such Act.
    ``(d) In the exercise of its authority under this section, a local 
school board may request technical assistance and training from the 
Secretary, and the Secretary shall, to the greatest extent possible, 
provide such services, and make appropriate provisions in the budget of 
the Office for such services.
    ``(e)(1) A financial plan under subsection (b) for a school may 
include, at the discretion of the local administrator and the school 
board of such school, a provision for a summer program of academic and 
support services for students of the school. Any such program may 
include activities related to the prevention of alcohol and substance 
abuse. The Assistant Secretary of Indian Affairs shall provide for the 
utilization of any such school facility during any summer in which such 
utilization is requested.
    ``(2) Notwithstanding any other provision of law, funds authorized 
under the Act of April 16, 1934 (25 U.S.C. 452 et seq.) and this Act 
may be used to augment the services provided in each summer program at 
the option, and under the control, of the tribe or Indian controlled 
school receiving such funds.
    ``(3) The Assistant Secretary of Indian Affairs, acting through the 
Director of the Office, shall provide technical assistance and 
coordination for any program described in paragraph (1) and shall, to 
the extent possible, encourage the coordination of such programs with 
any other summer programs that might benefit Indian youth, regardless 
of the funding source or administrative entity of any such program.
    ``(f)(1) From funds allotted to a Bureau school under section 1127, 
the Secretary shall, if specifically requested by the tribal governing 
body (within the meaning of section 1121(k)), implement any cooperative 
agreement entered into between the tribe, the Bureau school board, and 
the local public school district which meets the requirements of 
paragraph (2) and involves the school. The tribe, the Bureau school 
board, and the local public school district shall determine the terms 
of the agreement. Such agreement may encompass coordination of all or 
any part of the following:
        ``(A) Academic program and curriculum, unless the Bureau school 
    is currently accredited by a State or regional accrediting entity 
    and would not continue to be so accredited.
        ``(B) Support services, including procurement and facilities 
    maintenance.
        ``(C) Transportation.
    ``(2) Each agreement entered into pursuant to the authority 
provided in paragraph (1) shall confer a benefit upon the Bureau school 
commensurate with the burden assumed, though this requirement shall not 
be construed so as to require equal expenditures or an exchange of 
similar services.
    ``(g) Notwithstanding any other provision of law, where there is 
agreement on action between the superintendent and the school board of 
a Bureau funded school, the product or result of a project conducted in 
whole or in major part by a student may be given to that student upon 
the completion of such project.
    ``(h) Notwithstanding any other provision of law, funds received by 
a Bureau funded school under this title shall not be considered Federal 
funds for purposes of meeting a matching funds requirement in any 
Federal program.

``SEC. 1131. POLICY FOR INDIAN CONTROL OF INDIAN EDUCATION.

    ``(a) It shall be the policy of the Secretary and the Bureau, in 
carrying out the functions of the Bureau, to facilitate Indian control 
of Indian affairs in all matters relating to education.
    ``(b)(1) All actions under this Act shall be done with active 
consultation with tribes.
    ``(2) The consultation required under paragraph (1) means a process 
involving the open discussion and joint deliberation of all options 
with respect to potential issues or changes between the Bureau and all 
interested parties. During such discussions and joint deliberations, 
interested parties (including tribes and school officials) shall be 
given an opportunity to present issues including proposals regarding 
changes in current practices or programs which will be considered for 
future action by the Bureau. All interested parties shall be given an 
opportunity to participate and discuss the options presented or to 
present other alternatives, with the views and concerns of the 
interested parties given effect unless the Secretary determines, from 
information educed or presented by the interested parties during 1 or 
more of the discussions and deliberations, that there is a substantial 
reason for another course of action. The Secretary shall submit to any 
Member of Congress, within 18 days of the receipt of a written request 
by such Member, a written explanation of any decision made by the 
Secretary which is not consistent with the views of the interested 
parties.

``SEC. 1132. EDUCATION PERSONNEL.

    ``(a)(1) Chapter 51, subchapter III of chapter 53, and chapter 63 
of title 5, United States Code, relating to classification, pay, and 
leave, respectively, and the sections of such title relating to the 
appointment, promotion, and removal of civil service employees, shall 
not apply to educators or to education positions (as defined in 
subsection (n)).
    ``(2) Paragraph (1) shall take effect 1 year after the date of 
enactment of this Act.
    ``(b) Not later than the effective date of subsection (a)(2), the 
Secretary shall prescribe regulations to carry out this section. Such 
regulations shall govern--
        ``(1) the establishment of education positions,
        ``(2) the establishment of qualifications for educators,
        ``(3) the fixing of basic compensation for educators and 
    education positions,
        ``(4) the appointment of educators,
        ``(5) the discharge of educators,
        ``(6) the entitlement of educators to compensation,
        ``(7) the payment of compensation to educators,
        ``(8) the conditions of employment of educators,
        ``(9) the length of the school year applicable to education 
    positions described in subsection (n)(1)(A),
        ``(10) the leave system for educators, and
        ``(11) such other matters as may be appropriate.
    ``(c)(1) In prescribing regulations to govern the qualifications of 
educators, the Secretary shall require--
        ``(A)(i) that lists of qualified and interviewed applicants for 
    education positions be maintained in each agency and area office of 
    the Bureau from among individuals who have applied at the agency or 
    area level for an education position or who have applied at the 
    national level and have indicated in such application an interest 
    in working in certain areas or agencies; and
        ``(ii) that a list of qualified and interviewed applicants for 
    education positions be maintained in the Office from among 
    individuals who have applied at the national level for an education 
    position and who have expressed interest in working in an education 
    position anywhere in the United States;
        ``(B) that a local school board shall have the authority to 
    waive on a case-by-case basis, any formal education or degree 
    qualifications established by regulation pursuant to subsection 
    (b)(2), in order for a tribal member to be hired in an education 
    position to teach courses on tribal culture and language and that 
    subject to subsection (d)(2)(A), a determination by a school board 
    that such a person be hired shall be followed by the supervisor; 
    and
        ``(C) that it shall not be a prerequisite to the employment of 
    an individual in an education position at the local level that such 
    individual's name appear on the national list maintained pursuant 
    to paragraph (1)(A)(ii) or that such individual has applied at the 
    national level for an education position.
    ``(2) The Secretary may authorize the temporary employment in an 
education position of an individual who has not met the certification 
standards established pursuant to regulations, if the Secretary 
determines that failure to do so would result in that position 
remaining vacant.
    ``(d)(1) In prescribing regulations to govern the appointment of 
educators, the Secretary shall require--
        ``(A)(i) that educators employed in a school (other than the 
    supervisor of the school) shall be hired by the supervisor of the 
    school unless there are no qualified applicants available, in which 
    case the vacant position shall be filled at the national level from 
    the list maintained pursuant to subsection (c)(1)(A)(ii);
        ``(ii) each school supervisor shall be hired by the education 
    line officer of the agency office of the Bureau in which the school 
    is located; and
        ``(iii) educators employed in an agency office of the Bureau 
    shall be hired by the superintendent for education of the agency 
    office;
        ``(B) that before an individual is employed in an education 
    position in a school by the supervisor of a school (or, with 
    respect to the position of supervisor, by the appropriate agency 
    education line officer), the local school board for the school 
    shall be consulted, and that subject to paragraph (2), a 
    determination by the school board that such individual should or 
    should not be so employed shall be followed by the supervisor (or 
    with respect to the position of supervisor, by the agency 
    superintendent for education); and
        ``(C) that before an individual may be employed in an education 
    position at the agency level, the appropriate agency school board 
    shall be consulted, and that, subject to paragraph (3), a 
    determination by such school board that such individual should or 
    should not be employed shall be followed by the agency 
    superintendent for education.
    ``(2)(A) The supervisor of a school may appeal to the appropriate 
agency education line officer any determination by the local school 
board for the school that an individual be employed, or not be 
employed, in an education position in the school (other than that of 
supervisor) by filing a written statement describing the determination 
and the reasons the supervisor believes such determination should be 
overturned. A copy of such statement shall be submitted to the local 
school board and such board shall be afforded an opportunity to 
respond, in writing, to such appeal. After reviewing such written 
appeal and response, the education line officer may, for good cause, 
overturn the determination of the local school board. The education 
line officer shall transmit the determination of such appeal in the 
form of a written opinion to such board and to such supervisor 
identifying the reasons for overturning such determination.
    ``(B) The education line officer of an agency office of the Bureau 
may appeal to the Director of the Office any determination by the local 
school board for the school that an individual be employed, or not be 
employed, as the supervisor of a school by filing a written statement 
describing the determination and the reasons the supervisor believes 
such determination should be overturned. A copy of such statement shall 
be submitted to the local school board and such board shall be afforded 
an opportunity to respond, in writing, to such appeal. After reviewing 
such written appeal and response, the Director may, for good cause, 
overturn the determination of the local school board. The Director 
shall transmit the determination of such appeal in the form of a 
written opinion to such board and to such education line officer 
identifying the reasons for overturning such determination.
    ``(3) The education line officer of an agency office of the Bureau 
may appeal to the Director of the Office any determination by the 
agency school board that an individual be employed, or not be employed, 
in an education position in such agency office by filing a written 
statement describing the determination and the reasons the supervisor 
believes such determination should be overturned. A copy of such 
statement shall be submitted to the agency school board and such board 
shall be afforded an opportunity to respond, in writing, to such 
appeal. After reviewing such written appeal and response, the Director 
may, for good cause, overturn the determination of the agency school 
board. The Director shall transmit the determination of such appeal in 
the form of a written opinion to such board and to such education line 
officer identifying the reasons for overturning such determination.
    ``(4) Any individual who applies at the local level for an 
education position shall state on such individual's application whether 
or not such individual has applied at the national level for an 
education position in the Bureau. If such individual is employed at the 
local level, such individual's name shall immediately be forwarded to 
the Secretary, who shall, as soon as possible but in no event in more 
than 30 days, ascertain the accuracy of the statement made by such 
individual pursuant to the first sentence of this paragraph. If the 
individual's statement is found to have been false, such individual, at 
the Secretary's discretion, may be disciplined or discharged. If the 
individual had applied at the national level for an education position 
in the Bureau, the appointment of such individual at the local level 
shall be conditional for a period of 90 days, during which period the 
Secretary may appoint a more qualified individual (as determined by the 
Secretary) from the list maintained at the national level pursuant to 
subsection (c)(1)(A)(ii) to the position to which such individual was 
appointed.
    ``(5) Except as expressly provided, nothing in this section shall 
be construed as conferring upon local school boards, authority over, or 
control of, educators.
    ``(e)(1) In prescribing regulations to govern the discharge and 
conditions of employment of educators, the Secretary shall require--
        ``(A) that procedures be established for the rapid and 
    equitable resolution of grievances of educators;
        ``(B) that no educator may be discharged without notice of the 
    reasons therefore and opportunity for a hearing under procedures 
    that comport with the requirements of due process; and
        ``(C) educators employed in Bureau schools shall be notified 60 
    days prior to the end of the school year whether their employment 
    contract will be renewed for the following year.
    ``(2) The supervisor of a Bureau school may discharge (subject to 
procedures established under paragraph (1)(B)) for cause (as determined 
under regulations prescribed by the Secretary) any educator employed in 
such school. Upon giving notice of proposed discharge to an educator, 
the supervisor involved shall immediately notify the local school board 
for the school of such action. A determination by the local school 
board that such educator shall not be discharged shall be followed by 
the supervisor. The supervisor shall have the right to appeal such 
action to the education line officer of the appropriate agency office 
of the Bureau. Upon such an appeal, the agency education line officer 
may, for good cause and in writing to the local school board, overturn 
the determination of the local school board with respect to the 
employment of such individual.
    ``(3) Each local school board for a Bureau school shall have the 
right--
        ``(A) to recommend to the supervisor of such school that an 
    educator employed in the school be discharged; and
        ``(B) to recommend to the education line officer of the 
    appropriate agency office of the Bureau and to the Director of the 
    Office, that the supervisor of the school be discharged.
    ``(f)(1) Notwithstanding any provision of the Indian preference 
laws, such laws shall not apply in the case of any personnel action 
within the purview of this section respecting an applicant or employee 
not entitled to Indian preference if each tribal organization concerned 
grants, in writing, a waiver of the application of such laws with 
respect to such personnel action, if such a waiver is in writing deemed 
to be a necessity by the tribal organization, except that this 
paragraph shall in no way relieve the Bureau of the Bureau's 
responsibility to issue timely and adequate announcements and 
advertisements concerning any such personnel action if such action is 
intended to fill a vacancy (no matter how such vacancy is created).
    ``(2) For purposes of this subsection, the term `tribal 
organization' means--
        ``(A) the recognized governing body of any Indian tribe, band, 
    nation, pueblo, or other organized community, including a Native 
    village (as defined in section 3(c) of the Alaska Native Claims 
    Settlement Act (43 U.S.C. 1602(c); 85 Stat. 688)); or
        ``(B) in connection with any personnel action referred to in 
    this subsection, any local school board as defined in section 1146, 
    and which has been delegated by such governing body the authority 
    to grant a waiver under such subsection with respect to such 
    personnel action.
    ``(3) The term `Indian preference laws' means section 12 of the Act 
of June 18, 1934 (25 U.S.C. 472; 48 Stat. 986) or any other provision 
of law granting a preference to Indians in promotions and other 
personnel actions, except that such term shall not be considered to 
include section 7(b) of the Indian Self-Determination and Education 
Assistance Act (25 U.S.C. 450e(b)).
    ``(g) Subject to the authority of the Office of Personnel 
Management to determine finally the applicability of chapter 51 of 
title 5, United States Code, to specific positions and employees in the 
executive branch, the Secretary shall determine in accordance with 
subsection (a)(1) the applicability or inapplicability of such chapter 
to positions and employees in the Bureau.
    ``(h)(1)(A) Except as otherwise provided in this section, the 
Secretary shall fix the basic compensation or annual salary rate for 
educators and education positions at rates comparable to the rates in 
effect under the General Schedule for individuals with comparable 
qualifications, and holding comparable positions, to whom chapter 51 of 
title 5, United States Code, is applicable or on the basis of the 
Federal Wage System schedule in effect for the locality.
    ``(B) By not later than October 28, 1988, the Secretary shall 
establish, for contracts for the 1991-1992 academic year, and 
thereafter, the rates of basic compensation, or annual salary rates, 
for the positions of teachers and counselors (including dormitory 
counselors and home-living counselors) at the rates of basic 
compensation applicable (on the date of enactment of such amendments 
and thereafter) to comparable positions in overseas schools under the 
Defense Department Overseas Teachers Pay and Personnel Practices Act, 
unless the Secretary establishes such rates within such 6-month period 
through collective bargaining with the appropriate union representative 
of the education employees that is recognized by the Bureau.
    ``(C) By not later than October 28, 1988, the Secretary shall 
establish the rates of basic compensation or annual salary rates for 
the positions of teachers and counselors (including dormitory and home-
living counselors)--
        ``(i) for contracts for the 1989-1990 academic year, at rates 
    which reflect \1/3\ of the changes in the rates applicable to such 
    positions on April 28, 1988, that must be made to conform the rates 
    to the rates established under subparagraph (B) for such positions 
    for contracts for the 1991-1992 academic year, and
        ``(ii) for contracts for the 1990-1991 academic year, at rates 
    which reflect \2/3\ of such changes.
    ``(D) The establishment of rates of basic compensation and annual 
salary rates by the Secretary under subparagraphs (B) and (C) shall not 
preclude the use of regulations and procedures used by the Bureau 
before the enactment of the Indian Education Amendments of 1988 in 
making determinations regarding promotions and advancements through 
levels of pay that are based on the merit, education, experience, or 
tenure of the educator.
    ``(E)(i) Except as provided in clause (ii), the establishment of 
rates of basic compensation and annual salary rates by the Secretary 
under subparagraphs (B) and (C) shall not affect the continued 
employment or compensation of an educator who was employed in an 
education position on October 31, 1979, and who did not make the 
election under paragraph (2) of subsection (o).
    ``(ii) Any individual described in clause (i) may, during the 5-
year period beginning on the date on which the Secretary establishes 
rates of basic compensation and annual salary rates under subparagraph 
(B), make an irrevocable election to have the basic compensation rate 
or annual salary rate of such individual determined in accordance with 
this paragraph.
    ``(iii) If an individual makes the election described in clause 
(ii), such election shall not affect the application to the individual 
of the same retirement system and leave system that applies to the 
individual during the fiscal year preceding the fiscal year in which 
such election is made, except that the individual must use leave 
accrued during a contract period by the end of that contract period.
    ``(F) The President shall include with the budget submitted under 
section 1105 of title 31, United States Code, for each of the fiscal 
years 1990, 1991, and 1992 a written statement by the Secretary which 
specifies--
        ``(i) the amount of funds the Secretary needs to pay basic 
    compensation and the annual salaries of educators for such fiscal 
    year, and
        ``(ii) the amount of funds the Secretary estimates would be 
    needed to pay basic compensation and the annual salaries of 
    educators for such fiscal year if the amendments made to this 
    paragraph by the Indian Education Amendments of 1988 had not been 
    enacted.
    ``(2) Each educator employed in an education position in Alaska 
shall be paid a cost-of-living allowance equal to 25 percent of the 
rate of basic compensation to which such educator is entitled.
    ``(3)(A) The Secretary may pay a postdifferential not to exceed 25 
percent of the rate of basic compensation, on the basis of conditions 
of environment or work which warrant additional pay as a recruitment 
and retention incentive.
    ``(B)(i) Upon the request of the supervisor and the local school 
board of a Bureau school, the Secretary shall grant the supervisor of 
the school authorization to provide 1 or more post differentials under 
subparagraph (A) unless the Secretary determines for clear and 
convincing reasons (and advises the board in writing of those reasons) 
that certain of the requested post differentials should be disapproved 
or decreased because there is no disparity of compensation for the 
involved employees or positions in the Bureau school, as compared with 
the nearest public school, that is either--
        ``(I) at least 5 percent, or
        ``(II) less than 5 percent and affects the recruitment or 
    retention of employees at the school.
    ``(ii) The request under clause (i) shall be deemed granted as 
requested at the end of the 60th day after the request is received in 
the Central Office of the Bureau unless before that time the request is 
approved, approved with modification, or disapproved by the Secretary.
    ``(iii) The Secretary or the supervisor of a Bureau school may 
discontinue or decrease a post differential authorized by reason of 
this subparagraph at the beginning of a school year after either--
        ``(I) the local school board requests that such differential be 
    discontinued or decreased, or
        ``(II) the Secretary or the supervisor determines for clear and 
    convincing reasons (and advises the board in writing of those 
    reasons) that there is no disparity of compensation that would 
    affect the recruitment or retention of employees at the school 
    after the differential is discontinued or decreased.
    ``(iv) On or before February 1 of each year, the Secretary shall 
submit to Congress a report describing the requests and grants of 
authority under this subparagraph during the previous fiscal year and 
listing the positions contracted under those grants of authority.
    ``(i) Any individual--
        ``(1) who on the date of enactment of this Act is holding a 
    position which is determined under subsection (f) to be an 
    education position and who elects under subsection (o)(2) to be 
    covered under the provisions of this section, or
        ``(2) who is an employee of the Federal Government or the 
    municipal government of the District of Columbia and is 
    transferred, promoted, or reappointed, without break in service, 
    from a position under a different leave system to an education 
    position,
shall be credited for the purpose of the leave system provided under 
regulations prescribed pursuant to subsection (b)(10), with the annual 
and sick leave to such individual's credit immediately before the 
effective date of such election, transfer, promotion, or reappointment.
    ``(j) Upon termination of employment with the Bureau, any annual 
leave remaining to the credit of an individual within the purview of 
this section shall be liquidated in accordance with sections 5551(a) 
and 6306 of title 5, United States Code, except that leave earned or 
accrued under regulations prescribed pursuant to subsection (b)(10) 
shall not be so liquidated.
    ``(k) In the case of any educator who is transferred, promoted, or 
reappointed, without break in service, to a position in the Federal 
Government under a different leave system, any remaining leave to the 
credit of such person earned or credited under the regulations 
prescribed pursuant to subsection (b)(10) shall be transferred to such 
person's credit in the employing agency on an adjusted basis in 
accordance with regulations which shall be prescribed by the Office of 
Personnel Management.
    ``(l) An educator who voluntarily terminates employment with the 
Bureau before the expiration of the existing employment contract 
between such educator and the Bureau shall not be eligible to be 
employed in another education position in the Bureau during the 
remainder of the term of such contract.
    ``(m) In the case of any educator employed in an education position 
described in subsection (n)(1)(A) who--
        ``(1) is employed at the close of a school year,
        ``(2) agrees in writing to serve in such a position for the 
    next school year, and
        ``(3) is employed in another position during the recess period 
    immediately preceding such next school year, or during such recess 
    period receives additional compensation referred to in section 5533 
    of title 5, United States Code, relating to dual compensation, 
    shall not apply to such educator by reason of any such employment 
    during a recess period for any such receipt of additional 
    compensation.
    ``(n) For the purpose of this section--
        ``(1) The term `education position' means a position in the 
    Bureau the duties and responsibilities of which--
            ``(A) are performed on a school-year basis principally in a 
        Bureau school and involve--
                ``(i) classroom or other instruction or the supervision 
            or direction of classroom or other instruction;
                ``(ii) any activity (other than teaching) which 
            requires academic credits in educational theory and 
            practice equal to the academic credits in educational 
            theory and practice required for a bachelor's degree in 
            education from an accredited institution of higher 
            education;
                ``(iii) any activity in or related to the field of 
            education notwithstanding that academic credits in 
            educational theory and practice are not a formal 
            requirement for the conduct of such activity; or
                ``(iv) support services at, or associated with, the 
            site of the school; or
            ``(B) are performed at the agency level of the Bureau and 
        involve the implementation of education-related programs other 
        than the position for agency superintendent for education.
        ``(2) The term `educator' means an individual whose services 
    are required, or who is employed, in an education position.
    ``(o)(1) Subsections (a) through (n) of this section apply to an 
educator hired after November 1, 1979 (and to an educator who elected 
application under paragraph (2)) and to the position in which such 
individual is employed. Subject to paragraph (2), the enactment of this 
Act shall not affect the continued employment of an individual employed 
on October 31, 1979 in an education position, or such individual's 
right to receive the compensation attached to such position.
    ``(2) Any individual employed in an education position on October 
31, 1979, may, not later than November 1, 1983, make an irrevocable 
election to be covered under the provisions of subsections (a) through 
(n) of this section.
    ``(p)(1) An educator who was employed in an education position on 
October 31, 1979, who was eligible to make an election under paragraph 
(2) of subsection (o) at that time, and who did not make the election 
under paragraph (2) of subsection (o), may not be placed on furlough 
(within the meaning of section 7511(a)(5) of title 5, United States 
Code) without the consent of such educator for an aggregate of more 
than 4 weeks within the same calendar year, unless--
        ``(A) the supervisor, with the approval of the local school 
    board (or of the education line officer upon appeal under paragraph 
    (2)), of the Bureau school at which such educator provides services 
    determines that a longer period of furlough is necessary due to an 
    insufficient amount of funds available for personnel compensation 
    at such school, as determined under the financial plan process as 
    determined under section 1130(b) of this Act, and
        ``(B) all educators (other than principals and clerical 
    employees) providing services at such Bureau school are placed on 
    furloughs of equal length, except that the supervisor, with the 
    approval of the local school board (or of the agency education line 
    officer upon appeal under paragraph (2)), may continue 1 or more 
    educators in pay status if--
            ``(i) such educators are needed to operate summer programs, 
        attend summer training sessions, or participate in special 
        activities including curriculum development committees; and
            ``(ii) such educators are selected based upon such 
        educator's qualifications, after public notice of the minimum 
        qualifications reasonably necessary and without discrimination 
        as to supervisory, nonsupervisory, or other status of the 
        educators who apply.
    ``(2) The supervisor of a Bureau school may appeal to the 
appropriate agency education line officer any refusal by the local 
school board to approve any determination of the supervisor that is 
described in paragraph (1)(A) by filing a written statement describing 
the determination and the reasons the supervisor believes such 
determination should be approved. A copy of such statement shall be 
submitted to the local school board and such board shall be afforded an 
opportunity to respond, in writing, to such appeal. After reviewing 
such written appeal and response, the education line officer may, for 
good cause, approve the determination of the supervisor. The 
educational line officer shall transmit the determination of such 
appeal in the form of a written opinion to such local school board and 
to the supervisor identifying the reasons for approving such 
determination.

``SEC. 1133. MANAGEMENT INFORMATION SYSTEM.

    ``The Secretary shall establish within the Office, within 1 year 
after the date of the enactment of the Indian Education Amendments of 
1984, a computerized management information system, which shall provide 
information to the Office. Such information shall include--
        ``(1) student enrollment;
        ``(2) curriculum;
        ``(3) staff;
        ``(4) facilities;
        ``(5) community demographics;
        ``(6) student assessment information; and
        ``(7) information on the administrative and program costs 
    attributable to each Bureau program, divided into discreet 
    elements.

``SEC. 1134. BUREAU EDUCATION POLICIES.

    ``Within 180 days of the date of enactment of this Act, the 
Secretary shall develop, publish in the Federal Register, and submit to 
all agency and area offices of the Bureau, all tribal governments, and 
the appropriate committees of the Congress, a draft set of education 
policies, procedures, and practices for education-related action of the 
Bureau. The Secretary shall, within 1 year of the date of enactment of 
this Act, provide that such uniform policies, procedures, and practices 
shall be finalized and promulgated. Thereafter, such policies, 
procedures, and practices and their periodic revisions, shall serve as 
the foundation for future Bureau actions in education.

``SEC. 1135. UNIFORM EDUCATION PROCEDURES AND PRACTICES.

    ``The Secretary shall cause the various divisions of the Bureau to 
formulate uniform procedures and practices with respect to such 
concerns of those divisions as relate to education, and shall report 
such practices and procedures to the Congress.

``SEC. 1136. RECRUITMENT OF INDIAN EDUCATORS.

    ``The Secretary shall institute a policy for the recruitment of 
qualified Indian educators and a detailed plan to promote employees 
from within the Bureau. Such plan shall include opportunities for 
acquiring work experience prior to actual work assignment.

``SEC. 1137. ANNUAL REPORT.

    ``(a) The Secretary shall submit to each appropriate committee of 
the Congress a detailed annual report on the state of education within 
the Bureau and any problems encountered in the field of education 
during the year. Such report shall contain suggestions for improving 
the Bureau educational system and increasing local Indian control of 
such system. Such report shall also include the current status of 
tribally controlled community colleges. The annual budget submission 
for the Bureau's education programs shall, among other things, 
include--
        ``(1) information on the funds provided previously private 
    schools under section 208 of the Indian Self-Determination and 
    Education Assistance Act (25 U.S.C. 458d) and recommendations with 
    respect to the future use of such funds;
        ``(2) the needs and costs of operation and maintenance of 
    tribally controlled community colleges eligible for assistance 
    under the Tribally Controlled Community College Assistance Act of 
    1978 (25 U.S.C. 1801 et seq.) and recommendations with respect to 
    meeting such needs and costs; and
        ``(3) the plans required by sections 1121(g), 1122(c), and 
    1125(b), of this Act.
    ``(b) The Inspector General of the Department of the Interior shall 
establish a system to ensure that financial and compliance audits are 
conducted of each Bureau school at least once in every three years. 
Audits of Bureau schools shall be based upon the extent to which such 
school has complied with its local financial plan under section 1129.

``SEC. 1138. RIGHTS OF INDIAN STUDENTS.

    ``Within six months of the date of enactment of this Act, the 
Secretary shall prescribe such rules and regulations as are necessary 
to ensure the constitutional and civil rights of Indian students 
attending Bureau schools, including such students' right to privacy 
under the laws of the United States, such students' right to freedom of 
religion and expression and such students' right to due process in 
connection with disciplinary actions, suspensions, and expulsions.

``SEC. 1139. REGULATIONS.

    ``Regulations required to be adopted under sections 1126 through 
1138 and any revisions of the standards developed under section 1121 or 
1122 shall be deemed rules of general applicability prescribed for the 
administration of an applicable program for the purposes of section 437 
of the General Education Provisions Act and shall be promulgated, 
submitted for congressional review, and take effect in accordance with 
the provisions of such section. Such regulations shall contain, 
immediately following each substantive provision of such regulations, 
citations to the particular section or sections of statutory law or 
other legal authority upon which such provision is based.

``SEC. 1140. VOLUNTARY SERVICES.

    ``Notwithstanding section 1342 of title 31, United States Code, the 
Secretary may, subject to the approval of the local school board 
concerned, accept voluntary services on behalf of Bureau schools. 
Nothing in this title shall be construed to require Federal employees 
to work without compensation or to allow the use of volunteer services 
to displace or replace Federal employees. An individual providing 
volunteer services under this section is a Federal employee only for 
purposes of chapter 81 of title 5, United States Code, and chapter 171 
of title 28, United States Code.

``SEC. 1141. PRORATION OF PAY.

    ``(a) Notwithstanding any other provision of law, including laws 
relating to dual compensation, the Secretary, at the election of the 
employee, shall prorate the salary of an employee employed in an 
education position for the academic school year over the entire 12-
month period. Each educator employed for the academic school year shall 
annually elect to be paid on a 12-month basis or for those months while 
school is in session. No educator shall suffer a loss of pay or 
benefits, including benefits under unemployment or other Federal or 
federally assisted programs, because of such election.
    ``(b) During the course of such year the employee may change 
election once.
    ``(c) That portion of the employee's pay which would be paid 
between academic school years may be paid in lump sum at the election 
of the employee.
    ``(d) For the purposes of this section the terms `educator' and 
`education position' have the meaning contained in paragraphs (1) and 
(2) of section 1132(n). This section applies to those individuals 
employed under the provisions of section 1132 of this title or title 5, 
United States Code.

``SEC. 1142. EXTRACURRICULAR ACTIVITIES.

    ``(a) Notwithstanding any other provision of law, the Secretary may 
provide, for each Bureau area, a stipend in lieu of overtime premium 
pay or compensatory time off. Any employee of the Bureau who performs 
additional activities to provide services to students or otherwise 
support the school's academic and social programs may elect to be 
compensated for all such work on the basis of the stipend. Such stipend 
shall be paid as a supplement to the employee's base pay.
    ``(b) If an employee elects not to be compensated through the 
stipend established by this section, the appropriate provisions of 
title 5, United States Code, shall apply.
    ``(c) This section applies to all Bureau employees, whether 
employed under section 1132 of this title or title 5, United States 
Code.

``SEC. 1143. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

    ``(a) The Secretary shall provide grants to tribes, tribal 
organizations, and consortia of tribes and tribal organizations to fund 
early childhood development programs that are operated by such tribes, 
organizations, or consortia.
    ``(b)(1) The total amount of the grants provided under subsection 
(a) with respect to each tribe, tribal organization, or consortium of 
tribes or tribal organizations for each fiscal year shall be equal to 
the amount which bears the same relationship to the total amount 
appropriated under the authority of subsection (f) for such fiscal year 
(less amounts provided under subsection (e)) as--
        ``(A) the total number of children under 6 years of age who are 
    members of--
            ``(i) such tribe,
            ``(ii) the tribe that authorized such tribal organization, 
        or
            ``(iii) any tribe that--
                ``(I) is a member of such consortium, or
                ``(II) authorizes any tribal organization that is a 
            member of such consortium, bears to
        ``(B) the total number of all children under 6 years of age who 
    are members of any tribe that--
            ``(i) is eligible to receive funds under subsection (a),
            ``(ii) is a member of a consortium that is eligible to 
        receive such funds, or
            ``(iii) authorizes a tribal organization that is eligible 
        to receive such funds.
    ``(2) No grant may be provided under subsection (a)--
        ``(A) to any tribe that has less than 500 members,
        ``(B) to any tribal organization which is authorized--
            ``(i) by only 1 tribe that has less than 500 members, or
            ``(ii) by 1 or more tribes that have a combined total 
        membership of less than 500 members, or
        ``(C) to any consortium composed of tribes, or tribal 
    organizations authorized by tribes, that have a combined total 
    tribal membership of less than 500 members.
    ``(c)(1) A grant may be provided under subsection (a) to a tribe, 
tribal organization, or consortia of tribes and tribal organizations 
only if the tribe, organization or consortia submits to the Secretary 
an application for the grant at such time and in such form as the 
Secretary shall prescribe.
    ``(2) Applications submitted under paragraph (1) shall set forth 
the early childhood development program that the applicant desires to 
operate.
    ``(d) The early childhood development programs that are funded by 
grants provided under subsection (a)--
        ``(1) shall coordinate existing programs and may provide 
    services that meet identified needs of parents and children under 6 
    years of age which are not being met by existing programs, 
    including--
            ``(A) prenatal care,
            ``(B) nutrition education,
            ``(C) health education and screening,
            ``(D) educational testing, and
            ``(E) other educational services,
        ``(2) may include instruction in the language, art, and culture 
    of the tribe, and
        ``(3) shall provide for periodic assessment of the program.
    ``(e) The Secretary shall, out of funds appropriated under the 
authority of subsection (f), include in the grants provided under 
subsection (a) amounts for administrative costs incurred by the tribe 
or tribal organization in establishing and maintaining the early 
childhood development program.
    ``(f) For the purpose of carrying out the provisions of this 
section, there are authorized to be appropriated $10,000,000 for fiscal 
year 1995 and such sums as may be necessary for each of the fiscal 
years 1996, 1997, 1998, and 1999.

``SEC. 1144. TRIBAL DEPARTMENTS OF EDUCATION.

    ``(a) Subject to the availability of appropriations, the Secretary 
shall provide grants and technical assistance to tribes for the 
development and operation of tribal departments of education for the 
purpose of planning and coordinating all educational programs of the 
tribe.
    ``(b) Grants provided under this section shall--
        ``(1) be based on applications from the governing body of the 
    tribe,
        ``(2) reflect factors such as geographic and population 
    diversity,
        ``(3) facilitate tribal control in all matters relating to the 
    education of Indian children on Indian reservations and on former 
    Indian reservations in Oklahoma,
        ``(4) provide for the development of coordinated educational 
    programs on Indian reservations (including all preschool, 
    elementary, secondary, and higher or vocational educational 
    programs funded by tribal, Federal, or other sources) by 
    encouraging tribal administrative support of all Bureau funded 
    educational programs as well as encouraging tribal cooperation and 
    coordination with all educational programs receiving financial 
    support from State agencies, other Federal agencies, or private 
    entities,
        ``(5) provide for the development and enforcement of tribal 
    educational codes, including tribal educational policies and tribal 
    standards applicable to curriculum, personnel, students, 
    facilities, and support programs, and
        ``(6) otherwise comply with regulations for grants under 
    section 103(a) of the Indian Self-Determination and Educational 
    Assistance Act (25 U.S.C. 450h) that are in effect on the date 
    application for such grants are made.
    ``(c)(1) In approving and funding applications for grants under 
this section, the Secretary shall give priority to any application 
that--
        ``(A) includes assurances from the majority of Bureau funded 
    schools located within the boundaries of the reservation of the 
    applicant that the tribal department of education to be funded 
    under this section will provide coordinating services and technical 
    assistance to all of such schools, including the submission to each 
    applicable agency of a unified application for funding for all of 
    such schools which provides that--
            ``(i) no administrative costs other than those attributable 
        to the individual programs of such schools will be associated 
        with the unified application, and
            ``(ii) the distribution of all funds received under the 
        unified application will be equal to the amount of funds 
        provided by the applicable agency to which each of such schools 
        is entitled under law,
        ``(B) includes assurances from the tribal governing body that 
    the tribal department of education funded under this section will 
    administer all contracts or grants (except those covered by the 
    other provisions of this title and the Tribally Controlled 
    Community College Assistance Act of 1978) for education programs 
    administered by the tribe and will coordinate all of the programs 
    to the greatest extent possible,
        ``(C) includes assurances for the monitoring and auditing by or 
    through the tribal department of education of all education 
    programs for which funds are provided by contract or grant to 
    ensure that the programs meet the requirements of law, and
        ``(D) provides a plan and schedule for--
            ``(i) the assumption over the term of the grant by the 
        tribal department of education of all assets and functions of 
        the Bureau agency office associated with the tribe, insofar as 
        those responsibilities relate to education, and
            ``(ii) the termination by the Bureau of such operations and 
        office at the time of such assumption,
    except that when mutually agreeable between the tribal governing 
    body and the Assistant Secretary, the period in which such 
    assumption is to occur may be modified, reduced, or extended after 
    the initial year of the grant.
    ``(2) Subject to the availability of appropriated funds, grants 
provided under this section shall be provided for a period of 3 years 
and the grant may, if performance by the grantee is satisfactory to the 
Secretary, be renewed for additional 3-year terms.
    ``(d) The Secretary shall not impose any terms, conditions, or 
requirements on the provision of grants under this section that are not 
specified in this section.
    ``(e) For the purpose of carrying out the provisions of this 
section, there are authorized to be appropriated $2,000,000 for fiscal 
year 1995 and such sums as may be necessary for each of the fiscal 
years 1996, 1997, 1998, and 1999.

``SEC. 1145. PAYMENTS.

    ``(a)(1) Except as otherwise provided in this subsection, the 
Secretary shall make payments to grantees under this part in 2 
payments--
        ``(A) one payment to be made not later than July 15 of each 
    year in an amount equal to one-half of the amount which the grantee 
    was entitled to receive during the preceding academic year, and
        ``(B) the second payment, consisting of the remainder to which 
    the grantee is entitled for the academic year, shall be made not 
    later than December 1 of each year.
    ``(2) For any school for which no payment was made from Bureau 
funds in the preceding academic year, full payment of the amount 
computed for the first academic year of eligibility under this part 
shall be made not later than December 1 of the academic year.
    ``(3) With regard to funds for grantees that become available for 
obligation on October 1 of the fiscal year for which such funds are 
appropriated, the Secretary shall make payments to grantees not later 
than December 1 of the fiscal year.
    ``(4) The provisions of chapter 39 of title 31, United States Code, 
shall apply to the payments required to be made by paragraphs (1), (2), 
and (3) of this subsection.

``SEC. 1146. DEFINITIONS.

    ``For the purpose of this part, unless otherwise specified--
        ``(1) the term `agency school board' means a body, the members 
    of which are appointed by the school boards of the schools located 
    within such agency, and the number of such members shall be 
    determined by the Secretary in consultation with the affected 
    tribes, except that, in agencies serving a single school, the 
    school board of such school shall fulfill these duties;
        ``(2) the term `Bureau' means the Bureau of Indian Affairs of 
    the Department of the Interior;
        ``(3) the term `Bureau funded school' means--
            ``(A) a Bureau school;
            ``(B) a contract school; or
            ``(C) a school for which assistance is provided under the 
        Tribally Controlled Schools Act of 1988;
        ``(4) the term `Bureau school' means a Bureau operated 
    elementary or secondary day or boarding school or a Bureau operated 
    dormitory for students attending a school other than a Bureau 
    school;
        ``(5) the term `contract or grant school' means an elementary 
    or secondary school or a dormitory which receives financial 
    assistance for its operation under a contract, grant, or agreement 
    with the Bureau under section 102, 103(a), or 208 of the Indian 
    Self-Determination and Education Assistance Act (25 U.S.C. 450f, 
    450h(a), and 458d) or under the Tribally Controlled Schools Act of 
    1988 (25 U.S.C. 2504);
        ``(6) the term `education line officer' means education 
    personnel under the supervision of the Director, whether located in 
    central, area, or agency offices;
        ``(7) the term `financial plan' means a plan of services to be 
    provided by each Bureau school;
        ``(8) the term `Indian organization' means any group, 
    association, partnership, corporation, or other legal entity owned 
    or controlled by a federally recognized Indian tribe or tribes, or 
    a majority of whose members are members of federally recognized 
    Indian tribes;
        ``(9) the term `local educational agency' means a board of 
    education or other legally constituted local school authority 
    having administrative control and direction of free public 
    education in a county, township, independent, or other school 
    district located within a State, and includes any State agency 
    which directly operates and maintains facilities for providing free 
    public education;
        ``(10) the term `local school board', when used with respect to 
    a Bureau school, means a body chosen in accordance with the laws of 
    the tribe to be served or, in the absence of such laws, elected by 
    the parents of the Indian children attending the school, except 
    that in schools serving a substantial number of students from 
    different tribes, the members shall be appointed by the governing 
    bodies of the tribes affected, and the number of such members shall 
    be determined by the Secretary in consultation with the affected 
    tribes;
        ``(11) the term `Office' means the Office of Indian Education 
    Programs within the Bureau;
        ``(12) the term `Secretary' means the Secretary of the 
    Interior;
        ``(13) the term `supervisor' means the individual in the 
    position of ultimate authority at a Bureau school; and
        ``(14) the term `tribe' means any Indian tribe, band, nation, 
    or other organized group or community, including any Alaska Native 
    village or regional or village corporation as defined in or 
    established pursuant to the Alaska Native Claims Settlement Act (43 
    U.S.C. 1801 et seq.) which is recognized as eligible for the 
    special programs and services provided by the United States to 
    Indians because of their status as Indians.''.

SEC. 382. TRIBALLY CONTROLLED SCHOOLS ACT OF 1988.

    (a) New Construction.--The second sentence of paragraph (4) of 
section 5205(b) of the Tribally Controlled Schools Act of 1988 (25 
U.S.C. 2504(b)(4)) is amended by striking ``were received.'' and 
inserting ``were received, except that a school receiving a grant under 
this part for facilities improvement and repair may use such grant 
funds for new construction if the tribal government or other 
organization provides funding for the new construction equal to at 
least one-fourth of the total cost of such new construction.''.
    (b) Composition of Grants.--Subsection (b) of section 5205 of the 
Tribally Controlled Schools Act of 1988 (25 U.S.C. 2504(b)) is further 
amended by adding at the end the following new paragraph:
        ``(5) If the Secretary fails to make a determination within 180 
    days of a request filed by an Indian tribe or tribal organization 
    to include in such tribe or organization's grant the funds 
    described in subsection (a)(2), the Secretary shall be deemed to 
    have approved such request and the Secretary shall immediately 
    amend the grant accordingly. Such tribe or organization may enforce 
    its rights under subsection (a)(2) and this paragraph, including 
    any denial of or failure to act on such tribe or organization's 
    request, pursuant to the disputes authority described in section 
    5209(e).''.
    (c) Payments.--Subsection (a) of section 5208 of the Tribally 
Controlled Schools Act of 1988 (25 U.S.C. 2507(a)) is amended to read 
as follows:
    ``(a) Payments.--
        ``(1) Except as otherwise provided in this subsection, the 
    Secretary shall make payments to grantees under this part in 2 
    payments, of which--
            ``(A) the first payment shall be made not later than July 
        15 of each year in an amount equal to one-half of the amount 
        which the grantee was entitled to receive during the preceding 
        academic year; and
            ``(B) the second payment, consisting of the remainder to 
        which the grantee is entitled for the academic year, shall be 
        made not later than December 1 of each year.
        ``(2) For any school for which no payment under this part was 
    made from Bureau funds in the preceding academic year, full payment 
    of the amount computed for the first academic year of eligibility 
    under this part shall be made not later than December 1 of the 
    academic year.
        ``(3) With regard to funds for grantees that become available 
    for obligation on October 1 of the fiscal year for which such funds 
    are appropriated, the Secretary shall make payments to grantees not 
    later than December 1 of the fiscal year.
        ``(4) The provisions of chapter 39 of title 31, United States 
    Code, shall apply to the payments required to be made by paragraphs 
    (1), (2), and (3).
        ``(5) Paragraphs (1), (2), and (3) shall be subject to any 
    restriction on amounts of payments under this part that are imposed 
    by a continuing resolution or other Act appropriating the funds 
    involved.''.
    (d) Applicability.--Subsection (a) of section 5209 of the Tribally 
Controlled Schools Act of 1988 (25 U.S.C. 2508(a)) is amended to read 
as follows:
    ``(a) Certain Provisions To Apply to Grants.--All provisions of 
sections 5, 6, 7, 104, 105(f), 106(f), 109, and 111 of the Indian Self-
Determination and Education Assistance Act, except those provisions 
relating to indirect costs and length of contract, shall apply to 
grants provided under this part.
    (e) Exceptions, Problems, and Disputes.--Subsection (e) of section 
5209 of the Tribally Controlled Schools Act of 1988 (25 U.S.C. 2508(e)) 
is amended--
        (1) by striking ``the amount of a grant under section 5205 (and 
    the amount of any funds referred to in that section), and payments 
    to be made under section 5208 of this Act,'' and inserting ``a 
    grant authorized to be made pursuant to this part or any amendment 
    to such grant,'';
        (2) by striking ``the amount of, or payment of, the 
    administrative grant'' and inserting ``an administrative cost 
    grant''; and
        (3) by adding at the end the following new sentence: ``The 
    Equal Access to Justice Act shall apply to administrative appeals 
    filed after September 8, 1988, by grantees regarding a grant under 
    this part, including an administrative cost grant.''.

SEC. 383. ENDOWMENT FUNDS.

    Section 302 of the Tribally Controlled Community College Assistance 
Act of 1978 (25 U.S.C. 1832) is amended--
        (1) in subsection (a), by striking ``section 333'' and 
    inserting in lieu thereof ``section 331''; and
        (2) in subsection (b)--
            (A) by amending paragraph (1) to read as follows:
        ``(1) provides for the investment and maintenance of a trust 
    fund, the corpus and earnings of which shall be invested in the 
    same manner as funds are invested under paragraph (2) of section 
    331(c) of the Higher Education Act of 1965, except that for 
    purposes of this paragraph, the term `trust fund' means a fund 
    established by an institution of higher education or by a 
    foundation that is exempt from taxation and is maintained for the 
    purpose of generating income for the support of the institution, 
    and may include real estate;''; and
            (B) in paragraph (3) by striking ``same'' the first time 
        such term appears.

SEC. 384. GOALS 2000: EDUCATE AMERICA ACT.

    (a) Section 315 of the Goals 2000: Educate America Act (20 U.S.C. 
5895) is amended--
        (1) by amending subsection (c) to read as follows:
    ``(c) Bureau of Indian Affairs Cost Analysis and Studies.--
        ``(1) In general.--The Secretary of the Interior shall reserve 
    from the funds received pursuant to section 304(a)(1)(B) in the 
    first and second fiscal year for which the Secretary of the 
    Interior receives such funds an amount not to exceed $500,000 for 
    each such year to provide, through a contract executed, after open 
    solicitation, with an organization or institution having extensive 
    experience in school finance, for an analysis of--
            ``(A) the costs associated with meeting the academic, home-
        living, and residential standards of the Bureau for each Bureau 
        funded school and annual projections of such costs; and
            ``(B) the feasibility and desirability of changing the 
        method of financing for Bureau funded schools from the weighted 
        student unit formula method in effect on the date of enactment 
        of this Act to a school-based budget system or other 
        alternative system of financial support.
        ``(2) Cost analysis purpose.--The purpose of the cost analysis 
    provided for in paragraph (1)(A) shall be to provide the Bureau and 
    the panel described in subsection (b)(4) with baseline data 
    regarding the current state of operations funded by the Bureau and 
    to provide a framework for the implementation of opportunity-to-
    learn standards or strategies. Such analysis shall evaluate the 
    costs of providing a program in each school operated or supported 
    by the Bureau for the next succeeding academic year and shall be 
    based on--
            ``(A) the standards either published in the Federal 
        Register and effective for schools funded by the Bureau on the 
        date of enactment of the Improving America's Schools Act of 
        1994, or the State or regional standards in effect on such date 
        for a Bureau funded school;
            ``(B) the best projections of student counts and 
        demographics as provided by the Bureau and as independently 
        reviewed by the organization or institution selected by the 
        Secretary to perform the analysis described in this section; 
        and
            ``(C) the pay and benefit schedules and other personnel 
        requirements for each school operated by the Bureau, as such 
        pay and benefit schedules and requirements existed on the date 
        of enactment of the Improving America's Schools Act of 1994.
        ``(3) Feasibility study purpose.--(A) The purpose of the 
    feasibility analysis provided for in paragraph (1)(B) shall be to 
    determine whether it is feasible and desirable for the Bureau to 
    replace or modify the weighted student unit formula system in 
    effect on the date of enactment of this Act.
        ``(B) For the purposes of the feasibility analysis described in 
    paragraph (1)(B), the term `school-based budget system' means a 
    system based upon an initial determination, at each school site, of 
    the number of students who shall be served at the site, the needs 
    of those students, the standards which will best meet those needs 
    (including any standards or conditions reflecting local community 
    input and such community's program), the personnel profile 
    necessary to establish such program and the cost (determined on an 
    actual basis) of funding such a program. Such a system shall 
    include procedures to aggregate the determinations for each school 
    site to determine the amount needed to fund all Bureau funded 
    schools, to prepare a budget submission based upon such aggregate, 
    and to provide for a mechanism for distributing such sums as may be 
    appropriated based upon the determination at each school site.
        ``(4) Results report.--The contractor selected shall be 
    required to report the results of analyses provided for in this 
    section, in aggregate and school-specific form to the chairpersons 
    and ranking minority members of the Committee on Education and 
    Labor and the Committee on Appropriations of the House of 
    Representatives and the Committee on Indian Affairs and the 
    Committee on Appropriations of the Senate, and to the Secretary of 
    the Interior, not later than six months after the date of enactment 
    of the Improving America's Schools Act of 1994. The contractor 
    shall also be required to provide an estimate of the costs of 
    meeting the academic and residential standards of the Bureau for 
    each Bureau funded school for each of the three succeeding forward-
    funded fiscal years following the date of submission of such 
    report. The contractor shall provide an estimate of such costs to 
    such persons and members not later than January 1 of each 
    succeeding fiscal year.''; and
        (2) by adding at the end the following new subsections:
    ``(e) Grants.--The Secretary of the Interior may use not more than 
one percent of the funds received pursuant to section 304(a)(1)(B) in 
the first and second fiscal year for which the Secretary of the 
Interior receives such funds for the purpose of providing grants, if 
requested by Bureau funded school boards, to enable such school boards 
to carry out activities of reform planning as such activities are 
described for States in section 308(b)(2)(J), including the feasibility 
of becoming a contract school pursuant to the Indian Self-Determination 
and Education Assistance Act (25 U.S.C. 450 et seq.), or a grant school 
pursuant to section 5204 of the Tribally Controlled Schools Act of 
1988.
    ``(f) Study.--In cooperation with the panel established in 
subsection (b)(4), the Secretary of the Interior shall conduct a study 
to evaluate the feasibility of contracting with a private management 
firm for the operation of one or more Bureau operated schools to 
facilitate the achievement of the National Education Goals and the 
efficient use of funds in the education of Indian children, and to 
report to the persons identified in subsection (c)(4) and to the panel 
described in subsection (b)(4) not later than 12 months after the date 
of enactment of the Improving America's Schools Act of 1994.''.
    SEC. 386. AMERICAN INDIAN AND ALASKA NATIVE CULTURE AND ARTS 
      DEVELOPMENT.
    (a) Staff of the Institute.--Subsection (f) of section 1509 of the 
Higher Education Amendments of 1986 (20 U.S.C. 4416(f)) is amended to 
read as follows:
    ``(f) Applicability.--
        ``(1) This section shall apply to any individual appointed 
    after October 17, 1986, for employment in the Institute. Except as 
    provided in subsections (d) and (g), the enactment of this title 
    shall not affect--
            ``(A) the continued employment of any individual employed 
        before October 17, 1986; or
            ``(B) such individual's right to receive the compensation 
        attached to such position.
        ``(2) This section shall not apply to an individual whose 
    services are procured by the Institute pursuant to a written 
    procurement contract.
        ``(3) This section shall not apply to employees of an entity 
    performing services pursuant to a written contract with the 
    Institute.''.
    (b) Endowment Program.--Section 1518 of the Higher Education 
Amendments of 1986 (20 U.S.C. 4425) is amended--
        (1) in subsection (b), by adding at the end the following new 
    paragraph:
        ``(6) For the purpose of complying with the contribution 
    requirement in this subsection, the Institute may use funds or in-
    kind contributions of real or personal property. For the purposes 
    of this paragraph, all contributions, in-kind and real estate, 
    which are held by the Institute beginning on November 29, 1990, and 
    which were received after June 2, 1988, but which have not been 
    included in their entirety in computations under this section shall 
    be eligible for matching Federal funds appropriated in any year.''; 
    and
        (2) in subsection (c), by amending paragraph (1) to read as 
    follows:
        ``(1) Funds in the trust funds described in subsections (a) and 
    (b) shall be invested under the same conditions and limitations as 
    funds are invested under section 331(c)(2) of the Higher Education 
    Act of 1965 and the regulations implementing such section (as such 
    regulations were in effect at the time the funds are invested).''.

           PART I--CROSS REFERENCES AND CONFORMING AMENDMENTS

SEC. 391. CROSS REFERENCES.

    (a) Refugee Education Assistance Act of 1980.--(1) Paragraph (1) of 
section 101 of the Refugee Education Assistance Act of 1980 (8 U.S.C. 
1522 note) is amended by striking ``section 198(a)'' and inserting 
``section 14101''.
    (2) Paragraph (2) of section 201(b) of the Refugee Education 
Assistance Act of 1980 (8 U.S.C. 1522 note) is amended by striking 
``(other than section 303 of the Elementary and Secondary Education Act 
of 1965)''.
    (3) Paragraph (3) of section 301(b) of the Refugee Education 
Assistance Act of 1980 (8 U.S.C. 1522 note) is amended by striking ``, 
except that no reduction under this paragraph shall be made for any 
funds made available to the State under section 303 of the Elementary 
and Secondary Education Act of 1965''.
    (4) Paragraph (2) of section 401(b) of the Refugee Education 
Assistance Act of 1980 (8 U.S.C. 1522 note) is amended by striking 
``(other than section 303 of the Elementary and Secondary Education Act 
of 1965)''.
    (b) Title 10.--(1) Subparagraph (A) of section 1151(b)(2) of title 
10, United States Code, is amended by striking ``chapter 1 of''.
    (2) Subparagraph (A) of section 1151(b)(3) of title 10, United 
States Code, is amended by striking ``chapter 1 of''.
    (3) Subparagraph (A) of section 1598(a)(2) of title 10, United 
States Code, is amended by striking ``chapter 1 of''.
    (4) Section 2194 of title 10, United States Code, is amended--
        (A) in subsection (a), by striking ``education agencies'' and 
    inserting ``educational agency''; and
        (B) in subsection (e)--
            (i) by striking ``education agency'' and inserting 
        ``educational agency'';
            (ii) by striking ``section 1471(12)'' and inserting 
        ``section 14101''; and
            (iii) by striking ``(20 U.S.C. 1058(b)''.
    (5) Subparagraph (A) of section 2410j(a)(2) of title 10, United 
States Code, is amended by striking ``chapter 1 of''.
    (c) Toxic Substances Control Act.--(1) Subparagraph (A) of section 
202(7) of the Toxic Substances Control Act (15 U.S.C. 2642(7)(A)) is 
amended--
        (A) by striking ``section 198'' and inserting ``section 
    14101''; and
        (B) by striking ``(20 U.S.C. 3381)''.
    (2) Paragraph (9) of section 202 of the Toxic Substances Control 
Act (15 U.S.C. 2642(9)) is amended--
        (A) by striking ``section 198'' and inserting ``section 
    14101''; and
        (B) by striking ``(20 U.S.C. 2854)''.
    (3) Paragraph (12) of section 202 of the Toxic Substances Control 
Act (15 U.S.C. 2642(12)) is amended--
        (A) by striking ``section 198'' and inserting ``section 
    14101''; and
        (B) by striking ``(20 U.S.C. 2854)''.
    (4) Section 302(1) of the Toxic Substances Control Act (15 U.S.C. 
2662(1)(A)) is amended--
        (A) in subparagraph (A)--
            (i) by striking ``section 198'' and inserting ``section 
        14101''; and
            (ii) by striking ``(20 U.S.C. 3381)''; and
        (B) in subparagraph (C), by inserting ``or successor 
    authority'' after ``1107)''.
    (d) National Defense Authorization Act for Fiscal Year 1993.--
Paragraph (1) of section 386(h) of the National Defense Authorization 
Act for Fiscal Year 1993 (20 U.S.C. 238 note) is amended--
        (1) by striking ``section 1471(12)'' and inserting ``section 
    14101''; and
        (2) by striking ``(20 U.S.C. 2891(12))''.
    (e) Higher Education Act of 1965.--(1) Clause (ii) of section 
418A(b)(1)(B) of the Higher Education Act of 1965 (20 U.S.C. 1070d-
2(b)(1)(B)(ii)) is amended by striking ``subpart 1 of part D of chapter 
1'' and inserting ``part C''.
    (2) Subparagraph (A) of section 418A(c)(1) of the Higher Education 
Act of 1965 (20 U.S.C. 1070d-2(c)(1)(A)) is amended--
        (A) by striking ``subpart 1 of part D of chapter 1'' and 
    inserting ``part C''; and
        (B) by inserting ``(or such part's predecessor authority)'' 
    after ``1965''.
    (3) Subparagraph (A) of section 465(a)(2) of the Higher Education 
Act of 1965 (20 U.S.C. 1087ee(a)(2)(A)) is amended by striking 
``chapter 1 of the Education Consolidation and Improvement Act of 
1981'' and inserting ``title I of the Elementary and Secondary 
Education Act of 1965''.
    (4) Subsection (a) of section 469 of the Higher Education Act of 
1965 (20 U.S.C. 1087ii(a)) is amended by striking ``chapter 1 of''.
    (5) Subsection (b) of section 572 of the Higher Education Act of 
1965 (20 U.S.C. 1111a(b)) is amended by striking ``of chapter 1''.
    (6) Paragraph (1) of section 581(b) of the Higher Education Act of 
1965 (20 U.S.C. 1113(b)(1)) is amended by striking ``part A or subpart 
1 of part D of chapter 1'' and inserting ``part A or C''.
    (7) Paragraph (3) of section 581(c) of the Higher Education Act of 
1965 (20 U.S.C. 1113(c)(3)) is amended by striking ``chapter 1 of''.
    (8) Subparagraph (C) of section 586(d)(1) of the Higher Education 
Act of 1965 (20 U.S.C. 1114(d)(1)(C)) is amended by striking ``chapter 
1 of''.
    (9) Subparagraph (D) of section 586(d)(1) of the Higher Education 
Act of 1965 (20 U.S.C. 1114(d)(1)(D)) is amended by striking ``chapter 
1 of''.
    (10) Subclause (I) of section 1144(b)(1)(B)(iv) of the Higher 
Education Act of 1965 (20 U.S.C. 1138c(b)(1)(B)(iv)(I)) is amended by 
striking ``chapter 1 of''.
    (f) Individuals With Disabilities Education Act.--(1) Clause (ii) 
of section 602(a)(21)(A) of the Individuals with Disabilities Education 
Act (20 U.S.C. 1401(a)(21)(A)(ii)) is amended by striking ``chapter 1 
of''.
    (2) Paragraph (2) of section 613(a) of the Individuals with 
Disabilities Education Act (20 U.S.C. 1413(a)(2)) is amended by 
striking ``, including subpart 2 of part D of chapter 1 of title I of 
the Elementary and Secondary Education Act of 1965,''.
    (3) Subparagraph (B) of section 622(c)(2) of the Individuals with 
Disabilities Education Act (20 U.S.C. 1422(c)(2)) is amended by 
striking ``and subpart 2 of part D of chapter 1 of title I of the 
Elementary and Secondary Education Act of 1965''.
    (g) Education Amendments of 1972.--Subparagraph (B) of section 
908(2) of the Education Amendments of 1972 (20 U.S.C. 1687(2)(B)) is 
amended by striking ``section 198(a)(10)'' and inserting ``section 
14101''.
    (h) Department of Education Organization Act.--Section 204 of the 
Department of Education Organization Act (20 U.S.C. 3414) is amended by 
striking ``subpart 1 of part B'' and inserting ``part C''.
    (i) Education and Training for a Competitive America Act of 1988.--
The Education and Training for a Competitive America Act of 1988 (20 
U.S.C. 5001 et seq.) is repealed.
    (j) Educational Partnerships Act of 1988.--The Educational 
Partnerships Act of 1988 (20 U.S.C. 5031 et seq.) is repealed.
    (k) Secondary Schools Basic Skills Demonstration Assistance Act of 
1988.--The Secondary Schools Basic Skills Demonstration Assistance Act 
of 1988 (20 U.S.C. 5061 et seq.) is repealed.
    (l) Excellence in Mathematics, Science and Engineering Education 
Act of 1990.--The Excellence in Mathematics, Science and Engineering 
Education Act of 1990 (20 U.S.C. 5311 et seq.) is repealed.
    (m) National Environmental Education Act.--Paragraph (5) of section 
3 of the National Environmental Education Act (20 U.S.C. 5502(5)) is 
amended--
        (1) by striking ``local education'' and inserting ``local 
    educational''; and
        (2) by striking ``section 198'' and inserting ``section 
    14101''.
    (n) Job Training Partnership Act.--(1) Paragraph (23) of section 4 
of the Job Training Partnership Act (29 U.S.C. 1503(23)) is amended by 
striking ``section 1471(23)'' and inserting ``section 14101''.
    (2) Subparagraph (B) of section 263(a)(2) of the Job Training 
Partnership Act (29 U.S.C. 1643(a)(2)(B)) is amended by striking 
``chapter 1 of''.
    (3) Subparagraph (B) of section 263(g)(1) of the Job Training 
Partnership Act (29 U.S.C. 1643(g)(1)(B)) is amended by striking 
``chapter 1 of''.
    (4) Paragraph (2) of section 265(b) of the Job Training Partnership 
Act (29 U.S.C. 1645(b)(2)) is amended by striking ``parts A through D 
of chapter 1'' and inserting ``parts A through C''.
    (o) National Defense Authorization Act for Fiscal Year 1993.--
Paragraph (3) of section 1091(l) of the National Defense Authorization 
Act for Fiscal Year 1993 (32 U.S.C. 501 note) is amended by inserting 
``(as such section was in effect on the day preceding the date of 
enactment of this Act)'' after ``1965''.
    (p) Safe Drinking Water Act.--Section 1461 of the Safe Drinking 
Water Act (42 U.S.C. 300j-21(6)) is amended--
        (1) in subparagraph (A) of paragraph (3)--
            (A) by striking ``section 198'' and inserting ``section 
        14101''; and
            (B) by striking ``(20 U.S.C. 3381)''; and
        (2) in paragraph (6)--
            (A) by striking ``section 198'' and inserting ``section 
        14101''; and
            (B) by striking ``(20 U.S.C. 2854)''.
    (q) Civil Rights Act of 1964.--Subparagraph (B) of section 606(2) 
of the Civil Rights Act of 1964 (42 U.S.C. 2000d-4a(2)(B)) is amended 
by striking ``section 198(a)(10)'' and inserting ``section 14101''.
    (r) Older Americans Act of 1965.--(1) Section 338A of the Older 
Americans Act of 1965 (42 U.S.C. 3030g-12(a)(1)) is Pamended--
        (A) in paragraph (1) of subsection (a)--
            (i) by striking ``section 1471'' and inserting ``section 
        14101''; and
            (ii) by striking ``(20 U.S.C. 2891)''; and
        (B) in paragraph (3) of subsection (b)--
            (i) by striking ``projects under section 1015'' and 
        inserting ``programs under section 1114''; and
            (ii) by striking (20 U.S.C. 2025)''.
    (2) Subparagraph (B) of section 363(5) of the Older Americans Act 
of 1965 (42 U.S.C. 3030o(5)(B)) is amended--
        (A) by striking ``section 1471'' and inserting ``section 
    14101''; and
        (B) by striking ``(20 U.S.C. 2891)''.
    (s) Carl D. Perkins Vocational and Applied Technology Education 
Act.--(1) Subsection (d) of section 111 of the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 U.S.C. 2321(d)) is 
amended by striking ``chapter 1 of''.
    (2) Paragraph (14) of section 113(b) of the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 U.S.C. 2323(b)(14)) 
is amended by striking ``chapter 1 of''.
    (3) Subsection (a) of section 115 of the Carl D. Perkins Vocational 
and Applied Technology Education Act (20 U.S.C. 2325(a)) is amended--
        (A) by striking ``chapter 1 of''; and
        (B) by inserting ``of 1965'' after ``Secondary Education Act''.
    (4) Paragraph (1) of section 231(a) of the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 U.S.C. 2341(a)(1)) 
is amended by striking ``section 1005'' and inserting ``section 1124 or 
such section's predecessor authority''.
    (5) Clause (iv) of section 231(d)(3)(A) of the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 U.S.C. 
2341(d)(3)(A)(iv)) is amended by striking ``chapter 1 of''.
    (6) Paragraph (3) of section 420(a) of the Carl D. Perkins 
Vocational and Applied Technology Education Act (20 U.S.C. 2420(a)(3)) 
is amended by striking ``section 1562'' and inserting ``part B of title 
XIII''.
    (7) Paragraph (20) of section 521 of the Carl D. Perkins Vocational 
and Applied Technology Education Act (20 U.S.C. 2471(20)) is amended by 
striking ``section 1471(5)'' and inserting ``section 14101''.
    (8) Paragraph (21) of section 521 of the Carl D. Perkins Vocational 
and Applied Technology Education Act (20 U.S.C. 2471(21)) is amended by 
striking ``section 703(a)(1)'' and inserting ``section 7004(a)''.
    (t) Juvenile Justice and Delinquency Prevention Act of 1974.--
Paragraph (2) of section 288E(a) of the Juvenile Justice and 
Delinquency Prevention Act of 1974 (42 U.S.C. 5667e-5(a)(2)) is amended 
by striking ``chapter 1 of''.
    (u) Age Discrimination Act of 1975.--Clause (ii) of section 
309(4)(B) of the Age Discrimination Act of 1975 (42 U.S.C. 
6107(4)(B)(ii)) is amended by striking ``section 198(a)(10),'' and 
inserting ``section 14101''.
    (v) Head Start Transitional Project Act.--(1) Paragraph (4) of 
section 132 of the Head Start Transition Project Act (42 U.S.C. 
9855(4)) is amended by striking ``section 1471(12)'' and inserting 
``section 14101''.
    (2) Subsection (a) of section 134 of the Head Start Transition 
Project Act (42 U.S.C. 9855b(a)) is amended by striking ``of chapter 
1''.
    (3) Subsection (b) of section 134 of the Head Start Transition 
Project Act (42 U.S.C. 9855b(b)) is amended by striking ``of chapter 
1''.
    (4) Subsection (d) of section 135 of the Head Start Transition 
Project Act (42 U.S.C. 9855c(d)) is amended by striking ``schoolwide 
project under section 1015(a)'' and inserting ``schoolwide program 
under section 1114''.
    (5) Subparagraph (C) of section 136(a)(4) of the Head Start 
Transition Project Act (42 U.S.C. 9855d(a)(4)(C)) is amended--
        (A) by striking ``the Follow Through Act, chapter 1 of''; and
        (B) by striking ``, part B of chapter 1 of title I of the 
    Elementary and Secondary Education Act of 1965 (Even Start)''.
    (6) Paragraph (8) of section 136(a) of the Head Start Transition 
Project Act (42 U.S.C. 9855d(a)(8)) is amended by striking ``part B of 
chapter 1'' and inserting ``part B''.
    (7) Paragraph (10) of section 136(a) of the Head Start Transition 
Project Act (42 U.S.C. 9855d(a)(10)) is amended by striking ``part B of 
chapter 1'' and inserting ``part B''.
    (w) Follow Through Act.--The Follow Through Act (42 U.S.C. 9861 et 
seq.) is repealed.
    (x) Comprehensive Child Development Act.--Paragraph (5) of section 
670S of the Comprehensive Child Development Act (42 U.S.C. 9886(5)) is 
amended by striking ``section 1471(12)'' and inserting ``section 
14101''.
    (y) National and Community Service Act of 1990.--Subparagraph (B) 
of section 112(b)(2) of the National and Community Service Act of 1990 
(42 U.S.C. 12524(b)(2)(B)) is amended by striking ``chapter 1 of''.
    (z) Training Technology Transfer Act of 1988.--Paragraph (1) of 
section 6144 of the Training Technology Transfer Act of 1988 (20 U.S.C. 
5124(1)) is amended by striking ``section 405(d)(4)(A)(i) of the 
General Education Provisions Act (20 U.S.C. 1221e(d)(4)(A)(i))'' and 
inserting ``section 941(h) of the Educational Research, Development, 
Dissemination, and Improvement Act of 1994''.

SEC. 392. ADDITIONAL REPEALS AND TECHNICAL AND CONFORMING AMENDMENTS 
              REGARDING IMPACT AID.

    (a) Additional Repeals.--
        (1) Omnibus budget reconciliation act of 1981.--Subsection (c) 
    of section 505 of the Omnibus Budget Reconciliation Act of 1981 is 
    repealed.
        (2) Education amendments of 1984.--Section 302 of the Education 
    Amendments of 1984 is repealed.
        (3) Department of education appropriations act, 1991.--Section 
    306 of the Department of Education Appropriations Act, 1991, is 
    repealed.
        (4) National assessment of chapter 1 act.--Paragraph (2) of 
    section 3(a) of the 1992 National Assessment of Chapter 1 Act is 
    repealed.
        (5) Public law 92-277.--Section 2 of Public Law 92-277 (86 
    Stat. 124) is repealed.
    (b) Technical and Conforming Amendments.--
        (1) Elementary and secondary education amendments of 1966.--
    Section 182 of the Elementary and Secondary Education Amendments of 
    1966 is amended by striking ``by the Act of September 23, 1950 
    (Public Law 815, 81st Congress),''.
        (2) Toxic substances control act.--Subparagraph (C) of section 
    302(1) of the Toxic Substances Control Act (15 U.S.C. 2662(1)(C)) 
    is amended by inserting ``as in effect before enactment of the 
    Improving America's Schools Act of 1994'' after ``section 6 of the 
    Act of September 30, 1950 (64 Stat. 1107),''.

SEC. 393. INDIAN EDUCATION.

    (a) Adult Education Act.--Paragraph (4) of section 322(a) of the 
Adult Education Act (20 U.S.C. 1203a(a)) is amended by striking ``the 
Indian Education Act'' and inserting ``title IX of the Elementary and 
Secondary Education Act of 1965''.
    (b) Education Amendments of 1978.--Paragraph (3) of section 1128(c) 
of the Education Amendments of 1978 (25 U.S.C. 2008(c)(3)) is amended--
        (1) in clause (i) of subparagraph (A), by striking ``(as 
    determined pursuant to section 5324 of the Indian Education Act of 
    1988)''; and
        (2) in subparagraph (B)--
            (A) by striking ``the later of the following'' and all that 
        follows through ``(ii)''; and
            (B) by inserting ``, and for each fiscal year thereafter'' 
        before the period at the end thereof.
    (c) Indian Education Assistance Act.--Section 209 of the Indian 
Education Assistance Act (25 U.S.C. 458e) is amended by striking 
``title IV of the Act of June 23, 1972 (86 Stat. 235)'' and inserting 
``title IX of the Elementary and Secondary Education Act of 1965''.
    (d) Johnson-O'Malley Act.--Subsection (a) of section 5 of the Act 
of April 16, 1934, commonly known as the ``Johnson-O'Malley Act'' (25 
U.S.C. 456(a)) is amended by striking ``section 305(b)(2)(B)(ii) of the 
Act of June 23, 1972 (86 Stat. 235)'' and inserting ``section 
9104(c)(4) of the Elementary and Secondary Education Act of 1965''.

SEC. 394. OTHER TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Adult Education Act.--Paragraph (7) of section 342(c) of the 
Adult Education Act (20 U.S.C. 1206a(c)) is amended by striking 
``section 7004(a) of title VII'' and inserting ``section 7004(a)''.
    (b) Anti-Drug Abuse Act of 1988.--Subparagraph (A) of section 
3521(d)(8) of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 
11841(d)(8)(A)) is amended by striking ``the Drug-Free Schools and 
Communities Act of 1986'' and inserting ``title IV of the Elementary 
and Secondary Education Act of 1965''.
    (c) Asbestos School Hazard Abatement Act.--Section 511 of the 
Asbestos School Hazard Abatement Act of 1984 (20 U.S.C. 4020) is 
amended--
        (1) in subparagraph (A) of paragraph (4), by striking ``section 
    198(a)(10)'' and inserting ``section 14101''; and
        (2) in subparagraph (A) of paragraph (5), by striking ``section 
    198(a)(7)'' and inserting ``section 14101''.
    (d) Cranston-Gonzalez National Affordable Housing Act.--Paragraph 
(10) of section 457 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12899f(10)) is amended by striking ``section 
7003 of the Bilingual Education Act'' and inserting ``section 7004(a) 
of the Elementary and Secondary Education Act of 1965''.
    (e) Family and Medical Leave Act of 1993.--Subparagraph (A) of 
section 108(a)(1) of the Family and Medical Leave Act of 1993 (29 
U.S.C. 2618(a)(1)(A)) is amended by striking ``section 1471(12)'' and 
inserting ``section 14101''.
    (f) Goals 2000: Educate America Act.--The Goals 2000: Educate 
America Act is amended--
        (1) in section 3--
            (A) in subsection (a)--
                (i) in paragraph (6), by striking ``section 1471'' and 
            inserting ``section 14101''; and
                (ii) in paragraph (10), by striking ``section 602'' and 
            inserting ``section 602(a)(17)''; and
            (B) in paragraph (1) of subsection (b), by striking 
        ``section 1471'' and inserting ``section 14101'';
        (2) in paragraph (7) of section 231, by striking ``chapter 1 
    of'';
        (3) in subsection (b) of section 232--
            (A) in subparagraph (A) of paragraph (2), by striking 
        ``Star Schools Program Assistance Act'' and inserting ``Star 
        Schools program authorized by part B of title III of the 
        Elementary and Secondary Education Act of 1965''; and
            (B) in subparagraph (F) of paragraph (3), by striking ``the 
        evaluation undertaken pursuant to section 908 of the Star 
        Schools Program Assistance Act'' and inserting ``any evaluation 
        of the Star School program undertaken by the Secretary'';
        (4) in subsection (b) of section 310, by striking ``section 
    1017'' and inserting ``sections 1020 and 14503''; and
        (5) in subsection (b) of section 311, by amending paragraphs 
    (1) through (6) to read as follows:
        ``(1) Title I of the Elementary and Secondary Education Act of 
    1965.
        ``(2) Part A of title II of the Elementary and Secondary 
    Education Act of 1965.
        ``(3) Part A of title V of the Elementary and Secondary 
    Education Act of 1965.
        ``(4) Title VIII of the Elementary and Secondary Education Act 
    of 1965.
        ``(5) Part B of title IX of the Elementary and Secondary 
    Education Act of 1965.
        ``(6) The Carl D. Perkins Vocational and Applied Technology 
    Education Act.''.
    (g) Immigration and Nationality Act.--Subparagraph (D) of section 
245A(h)(4) of the Immigration and Nationality Act (8 U.S.C. 
1255a(h)(4)(D)) is amended to read as follows:
            ``(D) Title I of the Elementary and Secondary Education Act 
        of 1965.''.
    (h) National and Community Service Act of 1990.--The National and 
Community Service Act of 1990 is amended--
        (1) in section 101--
            (A) in paragraph (8), by striking ``section 1471(8) of the 
        Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        2891(8))'' and inserting ``section 14101 of the Elementary and 
        Secondary Education Act of 1965'';
            (B) in paragraph (14), by striking ``section 1471(12) of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        2891(12))'' and inserting ``section 14101 of the Elementary and 
        Secondary Education Act of 1965;
            (C) in paragraph (22), by striking ``section 1471(21) of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        2891(21))'' and inserting ``section 14101 of the Elementary and 
        Secondary Education Act of 1965''; and
            (D) in paragraph (28), by striking ``section 1471(23) of 
        the Elementary and Secondary Education Act of 1965 (20 U.S.C. 
        2891(23))'' and inserting ``section 14101 of the Elementary and 
        Secondary Education Act of 1965'';
        (2) in subparagraph (B) of section 112(b)(2), by inserting ``or 
    its successor authority'' after ``(20 U.S.C. 2711 et seq.)''; and
        (3) in subsection (b) of section 115A, by inserting ``, as in 
    effect on the day preceding the date of enactment of the Improving 
    America's Schools Act of 1994'' after ``(20 U.S.C. 2727(b))''.
    (i) Rehabilitation Act of 1973.--The Rehabilitation Act of 1973 is 
amended--
        (1) in section 202(b)(4)(A)(i), by striking ``paragraphs (8) 
    and (21), respectively, of section 1471 of the Elementary and 
    Secondary Education Act of 1965 (20 U.S.C. 2891 (8) and (21))'' and 
    inserting ``section 14101 of the Elementary and Secondary Education 
    Act of 1965''; and
        (2) in subparagraph (B) of section 504(b)(2), by striking 
    ``section 1471(12)'' and inserting ``section 14101''.
    (j) School-To-Work Opportunities Act of 1994.--The School-to-Work 
Opportunities Act of 1994 is amended--
        (1) in paragraph (15) of section 4, by striking ``section 
    602(17)'' and inserting ``section 602(a)(17)''; and
        (2) in subsection (b) of section 502, by amending paragraphs 
    (1) through (6) to read as follows:
        ``(1) title I of the Elementary and Secondary Education Act of 
    1965;
        ``(2) part A of title II of the Elementary and Secondary 
    Education Act of 1965;
        ``(3) part A of title V of the Elementary and Secondary 
    Education Act of 1965;
        ``(4) part B of title IX of the Elementary and Secondary 
    Education Act of 1965;
        ``(5) title XIII of the Elementary and Secondary Education Act 
    of 1965; and
        ``(6) the Carl D. Perkins Vocational and Applied Technology 
    Education Act.''.
    (k) Social Security Act.--Paragraph (7) of section 402(g) of the 
Social Security Act (42 U.S.C. 602(g)(7)) is amended by striking 
``chapter 1 of the Education Consolidation and Improvement Act of 
1981'' and inserting ``title I of the Elementary and Secondary 
Education Act of 1965''.
    (l) State Dependent Care Development Grants Act.--Section 670G of 
the State Dependent Care Development Grants Act (42 U.S.C. 9877) is 
amended--
        (1) in paragraph (6), by striking ``section 198(a)(10)'' and 
    inserting ``section 14101 of the Elementary and Secondary Education 
    Act of 1965''; and
        (2) in paragraph (11), by striking ``section 198(a)(17)'' and 
    inserting ``section 14101''.
    (m) Tribally Controlled Schools Act of 1988.--The Tribally 
Controlled Schools Act of 1988 is amended--
        (1) in subparagraph (C) of section 5204(a)(3), by striking 
    ``chapter 1 of''; and
        (2) in section 5205--
            (A) in subparagraph (A) of subsection (a)(3), by striking 
        ``chapter 1 of''; and
            (B) in subsection (b)--
                (i) in subparagraph (A) of paragraph (2), by striking 
            ``chapter 1 of''; and
                (ii) in clause (i) of paragraph (3)(A), by striking 
            ``chapter 1 of''.

                TITLE IV--NATIONAL EDUCATION STATISTICS

SEC. 401. SHORT TITLE.

    This title may be cited as the ``National Education Statistics Act 
of 1994''.

SEC. 402. FINDINGS; PURPOSE; DEFINITIONS.

    (a) Findings.--The Congress finds that--
        (1) a Department of Education was established in 1867 ``for the 
    purpose of collecting such statistics and facts as shall show the 
    condition and progress of education in the several States and 
    territories, and of diffusing such information respecting the 
    organization and management of schools and school systems and 
    methods of teaching as shall aid the people of the United States in 
    the establishment and maintenance of efficient school systems, and 
    otherwise promote the cause of education throughout the United 
    States'';
        (2) today, while the role of the current Department of 
    Education is much broader, the National Center for Education 
    Statistics within the Office of Educational Research and 
    Improvement continues to perform those crucial original purposes; 
    and
        (3) looking to the 21st century, the National Center for 
    Education Statistics must be able to design and undertake, 
    effectively and efficiently, statistical activities that will aid 
    in the reform of the Nation's educational systems.
    (b) Purpose.--It is the purpose of this title to ensure the 
continuation of an effective mechanism for collecting and reporting 
statistics and information showing the condition and progress of 
education in the United States and other nations in order to promote 
and accelerate the improvement of American education.
    (c) Definitions.--For the purpose of this title and unless 
otherwise specified--
        (1) the term ``Assistant Secretary'' means the Assistant 
    Secretary for Educational Research and Improvement established 
    under section 202(b)(1)(E) of the Department of Education 
    Organization Act;
        (2) the term ``Department'' means the Department of Education;
        (3) the term ``institution of higher education'' has the same 
    meaning given such term in section 1201(a) of the Higher Education 
    Act of 1965;
        (4) the term ``local educational agency'' has the same meaning 
    given such term in section 14101 of the Elementary and Secondary 
    Education Act of 1965;
        (5) the term ``Secretary'' means the Secretary of Education;
        (6) the term ``State educational agency'' has the same meaning 
    given such term in section 14101 of the Elementary and Secondary 
    Education Act of 1965; and
        (7) the terms ``State'' and ``United States''--
            (A) other than for the purpose of section 411, mean each of 
        the 50 States, the District of Columbia, and the Commonwealth 
        of Puerto Rico; and
            (B) for the purpose of section 411, have the same meaning 
        given such terms in subparagraph (A), except that such terms 
        include Guam, American Samoa, the Virgin Islands, the 
        Commonwealth of the Northern Mariana Islands, the Republic of 
        the Marshall Islands, the Federated States of Micronesia, and 
        Palau.

SEC. 403. NATIONAL CENTER FOR EDUCATION STATISTICS.

    (a) Establishment.--There is established, within the Office of 
Educational Research and Improvement established under section 208 of 
the Department of Education Organization Act, a National Center for 
Education Statistics (hereafter in this title referred to as the 
``Center'').
    (b) Commissioner and Associate Commissioners.--
        (1) Commissioner.--The Center shall be headed by a Commissioner 
    of Education Statistics (hereafter in this title referred to as the 
    ``Commissioner'') who shall be appointed by the President, by and 
    with the advice and consent of the Senate, and who shall--
            (A) have substantial knowledge of programs assisted by the 
        Center;
            (B) be paid in accordance with section 5315 of title 5, 
        United States Code; and
            (C) serve for a term of four years, with the terms to 
        expire every fourth June 21, beginning in 1995.
        (2) Associate commissioners.--The Commissioner may appoint such 
    Associate Commissioners as the Commissioner determines are 
    necessary and appropriate.

SEC. 404. DUTIES OF THE CENTER.

    (a) Duties.--The duties of the Center are to collect, analyze, and 
disseminate statistics and other information related to education in 
the United States and in other nations, including--
        (1) collecting, acquiring, compiling (where appropriate, on a 
    State by State basis), and disseminating full and complete 
    statistics on the condition and progress of education, at the 
    preschool, elementary, secondary, and postsecondary levels in the 
    United States, including data on--
            (A) State and local education reform activities;
            (B) student achievement at all levels of education;
            (C) secondary school completions, dropouts, and adult 
        literacy;
            (D) educational access to and opportunity for postsecondary 
        education, including data on financial aid to postsecondary 
        students;
            (E) teaching, including data on course-taking, instruction, 
        the conditions of the education workplace, and the supply of, 
        and demand for, teachers, which may include data on the 
        proportions of women and men, cross-tabulated by race or 
        ethnicity, teaching in subjects in which such individuals have 
        been historically underrepresented;
            (F) the learning and teaching environment, including data 
        on libraries;
            (G) the incidence, frequency, seriousness, and nature of 
        violence affecting students, school personnel, and other 
        individuals participating in school activities, as well as 
        other indices of school safety;
            (H) the financing and management of education, including 
        data on revenues and expenditures; and
            (I) the social and economic status of children;
        (2) conducting and publishing reports and analyses of the 
    meaning and significance of such statistics;
        (3) conducting longitudinal studies, as well as regular and 
    special surveys and data collections, necessary to report on the 
    condition and progress of education;
        (4) collecting, analyzing, cross-tabulating, and reporting, to 
    the extent feasible, so as to provide information by gender, race, 
    socioeconomic status, limited-English proficiency, and other 
    population characteristics when such disaggregated information 
    would facilitate educational and policy Pdecisionmaking;
        (5) assisting public and private educational agencies, 
    organizations, and institutions in improving and automating 
    statistical and data collection activities; and
        (6) acquiring and disseminating data on educational activities 
    and student achievement in the United States compared with foreign 
    nations.
    (b) Training Program.--The Commissioner may establish a program to 
train employees of public and private educational agencies, 
organizations, and institutions in the use of the Center's standard 
statistical procedures and concepts and may establish a fellows program 
to appoint such employees as temporary fellows at the Center in order 
to assist the Center in carrying out its duties.

SEC. 405. PERFORMANCE OF DUTIES.

    (a) Grants, Contracts, and Cooperative Agreements.--
        (1) In general.--In carrying out the Commissioner's duties 
    under this title, the Commissioner may award grants, and enter into 
    contracts and cooperative agreements.
        (2) Duration.--Notwithstanding any other provision of law, the 
    grants, contracts, and cooperative agreements under this section 
    may be awarded, on a competitive basis, for a period of not more 
    than five years, and may be renewed at the discretion of the 
    Commissioner for an additional period of not more than five years.
    (b) Gathering Information.--
        (1) Sampling.--The Commissioner may use the statistical method 
    known as sampling to carry out the purpose of this title.
        (2) Source of information.--The Commissioner may, as the 
    Commissioner considers appropriate, use information collected--
            (A) from States, local educational agencies, public and 
        private schools, preschools, institutions of higher education, 
        libraries, administrators, teachers, students, the general 
        public, and such other individuals, organizations, agencies, 
        and institutions as the Commissioner may consider appropriate; 
        and
            (B) by other offices within the Department Pand by other 
        Federal departments, agencies, and Pinstrumentalities.
        (3) Collection.--The Commissioner may--
            (A) enter into interagency agreements for the collection of 
        statistics;
            (B) arrange with any agency, organization, or institution 
        for the collection of statistics; and
            (C) assign employees of the Center to any such agency, 
        organization, or institution to assist in such collection.
        (4) Technical assistance and coordination.--In order to 
    maximize the effectiveness of Federal efforts to serve the 
    educational needs of children and youth, the Commissioner shall--
            (A) provide technical assistance to Department offices that 
        gather data for statistical purposes; and
            (B) coordinate closely with other Department offices in the 
        collection of data.

SEC. 406. REPORTS.

    (a) Report on the Condition and Progress of Education.--The 
Commissioner shall, not later than June 1, 1995, and each succeeding 
June 1 thereafter, submit to the President and the Congress a 
statistical report on the condition and progress of education in the 
United States.
    (b) Statistical Reports.--The Commissioner shall issue regular 
statistical reports to the President and Congress on such education 
topics as the Commissioner determines to be appropriate.
    (c) Special Reports.--The Commissioner may, whenever the 
Commissioner considers it appropriate, issue special reports on 
particular education topics.

SEC. 407. ADVISORY COUNCIL ON EDUCATION STATISTICS.

    (a) Establishment.--There is established, within the Center, the 
Advisory Council on Education Statistics (hereafter in this title 
referred to as the ``Council'').
    (b) Membership.--
        (1) Composition.--The Council shall be composed of--
            (A) 18 voting members who are users of education data and 
        who are appointed by the Secretary on the basis of their 
        experience and eminence within the field of education, of whom 
        at least--
                (i) three shall be practicing educators;
                (ii) three shall be education policymakers;
                (iii) three shall be professional statisticians;
                (iv) three shall be education researchers; and
                (v) three shall be experts in educational Pmeasurement;
            (B) three individuals representing the general public, 
        appointed by the Secretary;
            (C) the Director of the Census and the Commissioner of 
        Labor Statistics, as voting, ex officio members; and
            (D) the Assistant Secretary and the Commissioner, as 
        nonvoting, ex officio members.
        (2) Presiding officer.--The Commissioner shall appoint the 
    presiding officer of the Council from among the voting members of 
    the Council.
        (3) Terms.--Members of the Council appointed under paragraph 
    (1)(A) shall be appointed for three-year terms except that, in the 
    case of initial appointments, the Secretary shall make appointments 
    for shorter terms to the extent necessary to avoid the expiration 
    of the terms of more than six members in the same calendar year.
        (4) Meetings.--(A) The Council shall meet in public session at 
    the call of the presiding officer, except that the Council shall 
    meet--
            (i) at least two times during each calendar year; and
            (ii) in addition, whenever ten voting members request in 
        writing that the presiding officer call a meeting.
        (B) Eleven voting members of the Council shall constitute a 
    quorum.
        (5) Special rule.--The Council shall--
            (A) review general policies for the operation of the Center 
        and shall advise the Commissioner on standards to ensure that 
        statistics and other information disseminated by the Center are 
        of high quality and are not subject to partisan political 
        influence; and
            (B) advise the Commissioner and the National Assessment 
        Governing Board on technical and statistical matters related to 
        the National Assessment of Educational Progress.
        (6) Staff.--The Council shall appoint a staff of not more than 
    six individuals with technical expertise to enable the Council to 
    carry out its duties.

SEC. 408. CONFIDENTIALITY.

    (a) Confidentiality Standards.--
        (1) In general.--(A) The Center shall develop and enforce 
    standards designed to protect the confidentiality of persons in the 
    collection, reporting, and publication of data under this title.
        (B) This section shall not be construed to protect the 
    confidentiality of information about institutions, organizations, 
    and agencies that receive grants from, or have contracts or 
    cooperative agreements with, the Federal Government.
        (2) Prohibition.--No person may--
            (A) use any individually identifiable information furnished 
        under this title for any purpose other than a statistical 
        purpose;
            (B) make any publication whereby the data furnished by any 
        particular person under this title can be identified; or
            (C) permit anyone other than the individuals authorized by 
        the Commissioner to examine the individual reports.
    (b) Administration.--
        (1) In general.--No department, bureau, agency, officer, or 
    employee of the Federal Government, except the Commissioner in 
    carrying out the purposes of this title, shall require, for any 
    reason, copies of reports that have been filed under this title 
    with the Center or retained by any individual respondent. Copies of 
    such reports that have been so filed or retained with the Center or 
    any of the Center's employees, contractors, or agents shall be 
    immune from legal process, and shall not, without the consent of 
    the individual concerned, be admitted as evidence or used for any 
    purpose in any action, suit, or other judicial or administrative 
    proceeding. This paragraph shall apply only to individually 
    identifiable information (as defined in paragraph (5)(A)).
        (2) Employee or staff violations.--Whoever, being or having 
    been an employee or staff member of the Department, having taken or 
    subscribed the oath of office, or having sworn to observe the 
    limitations imposed by subsection (a)(2), knowingly publishes or 
    communicates any individually identifiable information (as defined 
    in paragraph (5)(A)), the disclosure of which is prohibited by 
    subsection (a)(2), and that comes into such employee or staff's 
    possession by reason of employment (or otherwise providing 
    services) under this title, shall be found guilty of a class E 
    felony and imprisoned for not more than five years, or fined as 
    specified in section 3571 of title 18, United States Code, or both.
        (3) Temporary staff.--The Commissioner may utilize temporary 
    staff, including employees of Federal, State, or local agencies or 
    instrumentalities (including local educational agencies), and 
    employees of private organizations to assist the Center in 
    performing the Center's responsibilities, but only if such 
    temporary staff are sworn to observe the limitations imposed by 
    this section.
        (4) Information requirements.--No collection of information or 
    data acquisition activity undertaken by the Center shall be subject 
    to any review, coordination, or approval procedure except as 
    required by the Director of the Office of Management and Budget 
    under the rules and regulations established pursuant to chapter 35 
    of title 44, United States Code, except such collection of 
    information or data acquisition activity may be subject to review 
    or coordination if the Commissioner determines that such review or 
    coordination is beneficial.
        (5) Definitions.--For the purposes of this section--
            (A) the term ``individually identifiable information'' 
        means any record, response form, completed survey, or 
        aggregation thereof from which information about particular 
        individuals may be revealed; and
            (B) the term ``report'' means a response provided by or 
        about an individual to an inquiry from the Center and does not 
        include a statistical aggregation from which individually 
        identifiable information cannot be revealed.
        (6) Violations.--Any person who uses any data provided by the 
    Center, in conjunction with any other information or technique, to 
    identify any individual student, teacher, administrator, or other 
    individual and who knowingly discloses, publishes, or uses such 
    data for a purpose other than a statistical purpose, or who 
    otherwise violates subparagraph (A) or (B) of subsection (a)(2), 
    shall be found guilty of a class E felony and imprisoned for not 
    more than five years, or fined as specified in section 3571 of 
    title 18, United States Code, or both.
        (7) Access to reports or records.--Nothing in this section 
    shall restrict the right of the Secretary, the Comptroller General 
    of the United States, the Director of the Congressional Budget 
    Office, and the Librarian of Congress, to gain access to any 
    reports or other records, including information identifying 
    individuals, in the Center's possession, except that the same 
    restrictions on disclosure that apply under paragraphs (1) and (6) 
    shall apply to such individuals.

SEC. 409. DISSEMINATION.

    (a) General Requests.--
        (1) In general.--The Center may furnish transcripts or copies 
    of tables and other statistical records and make special 
    statistical compilations and surveys for State and local officials, 
    public and private organizations, and individuals.
        (2) Compilations.--The Center shall provide State and local 
    educational agencies opportunities to suggest the development of 
    particular compilations of statistics, surveys, and analyses that 
    would assist those educational agencies.
    (b) Congressional Requests.--The Center shall furnish such special 
statistical compilations and surveys as the Congress may request.
    (c) Joint Statistical Projects.--The Secretary may engage in joint 
statistical projects related to the purposes of this title, or other 
statistical purposes authorized by law, with nonprofit organizations or 
agencies, and the cost of such projects shall be shared equitably as 
determined by the Secretary.
    (d) Fees.--
        (1) In general.--Statistical compilations and surveys under 
    this section, other than those carried out pursuant to subsections 
    (b) and (c), may be made subject to the payment of the actual or 
    estimated cost of such work.
        (2) Funds received.--All funds received in payment for work or 
    services described in this subsection may be used to pay directly 
    the costs of such work or services, to repay appropriations that 
    initially bore all or part of such costs, or to refund excess sums 
    when necessary.
    (e) Access.--
        (1) Other agencies.--The Center shall, consistent with section 
    408, cooperate with other Federal agencies having a need for 
    educational data in providing access to educational data received 
    by the Center.
        (2) Interested parties.--The Center shall, in accordance with 
    such terms and conditions as the Secretary may prescribe, provide 
    all interested parties, including public and private agencies and 
    individuals, direct access to data collected by the Center for the 
    purposes of research and acquiring statistical information.

SEC. 410. COOPERATIVE EDUCATION STATISTICS SYSTEMS.

    (a) In General.--The Commissioner may establish one or more 
national cooperative education statistics systems for the purpose of 
producing and maintaining, with the cooperation of the States, 
comparable and uniform information and data on elementary and secondary 
education, postsecondary education, and libraries, that are useful for 
policymaking at the Federal, State, and local levels. In carrying out 
this section, the Commissioner may provide technical assistance, and 
make grants and enter into contracts and cooperative agreements.
    (b) Model Data System.--The Commissioner, working through the 
cooperative education statistics system, shall study, design, and pilot 
a model data system that will yield information about spending for 
administration at the school and local education agency levels.

SEC. 411. NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS.

    (a) Establishment.--The Commissioner shall, with the advice of the 
National Assessment Governing Board established under section 412, and 
with the technical assistance of the Advisory Council established under 
section 407, carry out, through grants, contracts, or cooperative 
agreements with one or more qualified organizations, or consortia 
thereof, a National Assessment of Educational Progress (hereafter in 
this title referred to as the ``National Assessment'').
    (b) Purpose; State Assessments.--
        (1) Purpose.--The purpose of the National Assessment is to 
    provide a fair and accurate presentation of educational achievement 
    in reading, writing, and the other subjects included in the third 
    National Education Goal, regarding student achievement and 
    citizenship. The Commissioner, in carrying out the National 
    Assessment, shall use sampling techniques that produce data that 
    are representative on a national and regional basis, and on a State 
    basis pursuant to paragraph (2). In addition, the Commissioner 
    shall--
            (A) collect and report data on a periodic basis, but at 
        least once every two years, on students at ages 9, 13, and 17 
        and in grades 4, 8, and 12 in public and private schools;
            (B) report achievement data on a basis that ensures valid 
        and reliable trend reporting;
            (C) include information on special groups, including, 
        whenever feasible, information collected, cross-tabulated, 
        analyzed, and reported by sex, race or ethnicity and 
        socioeconomic status; and
            (D) ensure that achievement data are made available on a 
        timely basis following official reporting, in a manner that 
        facilitates further analysis.
        (2) State assessments.--(A)(i) The Commissioner, in carrying 
    out the National Assessment, may conduct State assessments of 
    student achievement in grades 4, 8, and 12.
        (ii) Each such State assessment, in each subject area and at 
    each grade level, shall be conducted on a developmental basis until 
    the Commissioner determines, as the result of an evaluation 
    required by subsection (f), that such assessment produces high 
    quality data that are valid and reliable.
        (B)(i) States wishing to participate in State assessments shall 
    enter into an agreement with the Secretary pursuant to subsection 
    (d)(2).
        (ii) Such agreement shall contain information sufficient to 
    give States full information about the process for consensus 
    decisionmaking on objectives to be tested, and the standards for 
    sampling, test administration, test security, data collection, 
    validation, and reporting.
        (C) A participating State shall review and give permission for 
    the release of results from any test of its students administered 
    as a part of a State assessment prior to the release of such data. 
    Refusal by a State to release its data shall not restrict the 
    release of data from other States that have approved the release of 
    such data.
        (3) Prohibited data.--In carrying out the National Assessment, 
    the Commissioner shall not collect any data that are not directly 
    related to the appraisal of educational performance, achievement, 
    and traditional demographic reporting variables, or to the fair and 
    accurate presentation of such information.
        (4) Technical assistance.--In carrying out the National 
    Assessment, the Commissioner may provide technical assistance to 
    States, localities, and other parties.
    (c) Access.--
        (1) Public access.--Except as provided in paragraph (2), the 
    public shall have access to all data, questions, and test 
    instruments of the National Assessment.
        (2) Personally identifiable information.--(A) The Commissioner 
    shall ensure that all personally identifiable information about 
    students, their educational performance, and their families, and 
    that information with respect to individual schools, remains 
    confidential, in accordance with section 552a of title 5, United 
    States Code.
        (B) Notwithstanding any other provision of law, the 
    Commissioner may decline to make available to the public for a 
    period, not to exceed ten years after initial use, cognitive 
    questions that the Commissioner intends to reuse in the future.
    (d) Participation.--
        (1) National and regional.--Participation in the national and 
    regional assessments by State and local educational agencies shall 
    be voluntary.
        (2) State.--Participation in assessments made on a State basis 
    shall be voluntary. The Commissioner shall enter into an agreement 
    with any State that desires to carry out an assessment for the 
    State under this subsection. Each such agreement shall contain 
    provisions designed to ensure that the State will--
            (A) participate in the assessment; and
            (B) pay from non-Federal sources the non-Federal share of 
        such participation.
        (3) Non-federal share.--(A) For each fiscal year, the non-
    Federal share for the purpose of paragraph (2)(B) shall be--
            (i) the cost of conducting the assessment at the school 
        level for all public schools in the State sample;
            (ii) the cost of coordination within the State; and
            (iii) other reasonable costs specified by the Secretary in 
        the agreement described in paragraph (2), such as the cost of 
        analyzing and reporting the data.
        (B) The non-Federal share of payments under this paragraph may 
    be in cash or in kind, fairly valued.
        (C) The agreement described in paragraph (2) shall describe the 
    manner in which the costs of administering the assessment to 
    private nonprofit schools included in the State sample will be met.
    (e) Student Performance Levels.--
        (1) Performance levels.--The National Assessment Governing 
    Board, established under section 412, shall develop appropriate 
    student performance levels for each age and grade in each subject 
    area to be tested under the National Assessment.
        (2) Development of levels.--(A) Such levels shall be--
            (i) devised through a national consensus approach, 
        providing for active participation of teachers, curriculum 
        specialists, local school administrators, parents, and 
        concerned members of the general public;
            (ii) used on a developmental basis until the Commissioner 
        determines, as the result of an evaluation under subsection 
        (f), that such levels are reasonable, valid, and informative to 
        the public; and
            (iii) updated as appropriate.
        (B) In using such levels on a developmental basis, the 
    Commissioner and the Board shall ensure that reports that use such 
    levels do so in a manner that makes clear the developmental status 
    of such levels.
        (3) Reporting.--After determining that such levels are 
    reasonable, valid, and informative to the public, as the result of 
    an evaluation under subsection (f), the Commissioner shall use such 
    levels or other methods or indicators for reporting results of the 
    National Assessment and State assessments.
    (f) Review of National and State Assessments.--
        (1) In general.--(A) The Secretary shall provide for continuing 
    review of the National Assessment, State assessments, and student 
    performance levels, by one or more nationally recognized evaluation 
    organizations, such as the National Academy of Education and the 
    National Academy of Sciences.
        (B) Such continuing review shall address--
            (i) whether each developmental State assessment is properly 
        administered, produces high quality data that are valid and 
        reliable, and produces data on student achievement that are not 
        otherwise available to the State (other than data comparing 
        participating States to each other and the Nation); and
            (ii) whether developmental student performance levels are 
        reasonable, valid, and informative to the public.
        (2) Report.--The Secretary shall report to the Congress, the 
    President, and the Nation on the findings and recommendations of 
    such reviews.
        (3) Use of findings and recommendations.--The Commissioner 
    shall consider the findings and recommendations of such reviews in 
    designing the competition to select the organization, or 
    organizations, through which the Commissioner carries out the 
    National Assessment.
    (g) Coverage Agreements.--
        (1) Department of defense schools.--The Secretary and the 
    Secretary of Defense may enter into an agreement, including such 
    terms as are mutually satisfactory, to include in the National 
    Assessment elementary and secondary schools operated by the 
    Department of Defense.
        (2) Bureau of indian affairs schools.--The Secretary and the 
    Secretary of the Interior may enter into an agreement, including 
    such terms as are mutually satisfactory, to include in the National 
    Assessment schools for Indian children operated or supported by the 
    Bureau of Indian Affairs.

SEC. 412. NATIONAL ASSESSMENT GOVERNING BOARD.

    (a) Establishment.--There is established the National Assessment 
Governing Board (hereafter in this title referred to as the ``Board''), 
which shall formulate policy guidelines for the National Assessment.
    (b) Membership.--
        (1) Appointment and composition.--The Board shall be appointed 
    by the Secretary and be composed of--
            (A) two Governors, or former Governors, who shall not be 
        members of the same political party;
            (B) two State legislators, who shall not be members of the 
        same political party;
            (C) two chief State school officers;
            (D) one superintendent of a local educational agency;
            (E) one member of a State board of education;
            (F) one member of a local board of education;
            (G) three classroom teachers representing the grade levels 
        at which the National Assessment is conducted;
            (H) one representative of business or industry;
            (I) two curriculum specialists;
            (J) three testing and measurement experts, who shall have 
        training and experience in the field of testing and 
        measurement;
            (K) one nonpublic school administrator or policymaker;
            (L) two school principals, of whom one shall be an 
        elementary school principal and one shall be a secondary school 
        principal; and
            (M) four additional members who are representatives of the 
        general public, including parents.
        (2) Assistant secretary for educational research.--The 
    Assistant Secretary for Educational Research and Improvement shall 
    serve as an ex officio, nonvoting member of the Board.
        (3) Special rule.--The Secretary and the Board shall ensure at 
    all times that the membership of the Board reflects regional, 
    racial, gender, and cultural balance and diversity and that the 
    Board exercises its independent judgment, free from inappropriate 
    influences and special interests.
    (c) Terms.--
        (1) In general.--Terms of service of members of the Board shall 
    be staggered and may not exceed a period of 3 years, as determined 
    by the Secretary.
        (2) Service limitation.--Members of the Board may serve not 
    more than two terms.
        (3) Change of status.--A member of the Board who changes status 
    under subsection (b) during the term of the appointment of the 
    member may continue to serve as a member until the expiration of 
    such term.
    (d) Vacancies.--
        (1) In general.--(A) The Secretary shall appoint new members to 
    fill vacancies on the Board from among individuals who are 
    nominated by organizations representing the type of individuals 
    described in subsection (b)(1) with respect to which the vacancy 
    exists.
        (B) Each organization submitting nominations to the Secretary 
    with respect to a particular vacancy shall nominate for such 
    vacancy six individuals who are qualified by experience or training 
    to fill the particular Board vacancy.
        (C) The Secretary's appointments shall maintain the 
    composition, diversity, and balance of the Board required under 
    subsection (b).
        (2) Additional nominations.--The Secretary may request that 
    each organization described in paragraph (1)(A) submit additional 
    nominations if the Secretary determines that none of the 
    individuals nominated by such organization have appropriate 
    knowledge or expertise.
    (e) Duties.--
        (1) In general.--In carrying out its functions under this 
    section the Board shall--
            (A) select subject areas to be assessed (consistent with 
        section 411(b)(1));
            (B) develop appropriate student performance levels as 
        provided in section 411(e);
            (C) develop assessment objectives and test specifications 
        through a national consensus approach which includes the active 
        participation of teachers, curriculum specialists, local school 
        administrators, parents, and concerned members of the public;
            (D) design the methodology of the assessment, in 
        consultation with appropriate technical experts, including the 
        Advisory Council established under section 407;
            (E) develop guidelines for reporting and disseminating 
        results;
            (F) develop standards and procedures for interstate, 
        regional, and national comparisons; and
            (G) take appropriate actions needed to improve the form and 
        use of the National Assessment.
        (2) Delegation.--The Board may delegate any of the Board's 
    procedural and administrative functions to its staff.
        (3) Cognitive items.--The Board shall have final authority on 
    the appropriateness of cognitive items.
        (4) Prohibition against bias.--The Board shall take steps to 
    ensure that all items selected for use in the National Assessment 
    are free from racial, cultural, gender, or regional bias.
        (5) Technical.--In carrying out the duties required by 
    paragraph (1), the Board may seek technical advice, as appropriate, 
    from the Commissioner and the Advisory Council on Education 
    Statistics and other experts.
        (6) Report.--Not later than 90 days after an evaluation of the 
    student performance levels under section 411(e), the Board shall 
    make a report to the Secretary, the Committee on Education and 
    Labor of the House of Representatives, and the Committee on Labor 
    and Human Resources of the Senate describing the steps the Board is 
    taking to respond to each of the recommendations contained in such 
    evaluation.
    (f) Personnel.--
        (1) In general.--In the exercise of its responsibilities, the 
    Board shall be independent of the Secretary and the other offices 
    and officers of the Department.
        (2) Staff.--(A) The Secretary may appoint, at the request of 
    the Board, such staff as will enable the Board to carry out its 
    responsibilities.
        (B) Such appointments may include, for terms not to exceed 
    three years and without regard to the provisions of title 5, United 
    States Code, governing appointments in the competitive service, not 
    more than six technical employees who may be paid without regard to 
    the provisions of chapter 51 and subchapter III of chapter 53 of 
    such title relating to classification and General Schedule pay 
    rates.
    (g) Coordination.--The Commissioner and the Board shall meet 
periodically--
        (1) to ensure coordination of their duties and activities 
    relating to the National Assessment; and
        (2) for the Commissioner to report to the Board on the 
    Department's actions to implement the decisions of the Board.
    (h) Administration.--Only sections 10, 11, and 12 of the Federal 
Advisory Committee Act shall apply with respect to the Board.

SEC. 413. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated 
$65,000,000 for fiscal year 1995 and such sums as may be necessary for 
each of the four succeeding fiscal years to carry out this title (other 
than sections 411 and 412).
    (b) National Assessment.--There are authorized to be appropriated 
$35,000,000 for fiscal year 1995 and such sums as may be necessary for 
each of the fiscal years 1996 and 1997 to carry out section 411.
    (c) Governing Board.--There are authorized to be appropriated 
$3,000,000 for fiscal year 1995 and such sums as may be necessary for 
each of the fiscal years 1996 and 1997 to carry out section 412.

                   TITLE V--MISCELLANEOUS PROVISIONS

     PART A--ALBERT EINSTEIN DISTINGUISHED EDUCATOR FELLOWSHIP ACT

SEC. 511. SHORT TITLE.

    This part may be cited as the ``Albert Einstein Distinguished 
Educator Fellowship Act of 1994''.

SEC. 512. FINDINGS.

    The Congress finds that--
        (1) the Department of Energy has unique and extensive 
    mathematics and science capabilities that contribute to mathematics 
    and science education programs throughout the Nation;
        (2) a need exists to increase understanding, communication, and 
    cooperation between the Congress, the Department of Energy, other 
    Federal agencies, and the mathematics and science education 
    community;
        (3) elementary and secondary school mathematics and science 
    teachers can provide practical insight to the legislative and 
    executive branches in establishing and operating education 
    programs; and
        (4) a pilot program that placed elementary and secondary school 
    mathematics and science teachers in professional staff positions in 
    the Senate and the House of Representatives has proven successful 
    and demonstrated the value of expanding the program.

SEC. 513. PURPOSE; DESIGNATION.

    (a) Purpose.--The purpose of this part is to establish within the 
Department of Energy a national fellowship program for elementary and 
secondary school mathematics and science teachers.
    (b) Designation.--A recipient of a fellowship under this part shall 
be known as an ``Albert Einstein Fellow''.

SEC. 514. DEFINITIONS.

    As used in this part--
        (1) the term ``elementary school'' has the meaning provided by 
    section 14101 of the Elementary and Secondary Education Act of 
    1965;
        (2) the term ``local educational agency'' has the meaning 
    provided by section 14101 of the Elementary and Secondary Education 
    Act of 1965;
        (3) the term ``secondary school'' has the meaning provided by 
    section 14101 of the Elementary and Secondary Education Act of 
    1965; and
        (4) the term ``Secretary'' means the Secretary of Energy.

SEC. 515. FELLOWSHIP PROGRAM.

    (a) In General.--
        (1) Establishment.--The Secretary shall establish the Albert 
    Einstein Distinguished Educator Fellowship Program (hereafter in 
    this part referred to as the ``Program'') to provide 12 elementary 
    or secondary school mathematics or science teachers with 
    fellowships in each fiscal year in accordance with this part.
        (2) Order of priority.--The Secretary may reduce the number of 
    fellowships awarded under this part for any fiscal year in which 
    the amount appropriated for the Program is insufficient to support 
    12 fellowships. If the number of fellowships awarded under this 
    part is reduced for any fiscal year, then the Secretary shall award 
    fellowships based on the following order of priority:
            (A) Three fellowships in the Department of Energy.
            (B) Two fellowships in the Senate.
            (C) Two fellowships in the House of Representatives.
            (D) One fellowship in each of the following entities:
                (i) The Department of Education.
                (ii) The National Institutes of Health.
                (iii) The National Science Foundation.
                (iv) The National Aeronautics and Space 
            PAdministration.
                (v) The Office of Science and Technology Policy.
        (3) Terms of fellowships.--Each fellowship awarded under this 
    part shall be awarded for a period of ten months that, to the 
    extent practicable, coincide with the academic year.
        (4) Eligibility.--To be eligible for a fellowship under this 
    part, an elementary or secondary school mathematics or science 
    teacher must demonstrate--
            (A) that such teacher would bring unique and valuable 
        contributions to the Program;
            (B) that such teacher is recognized for excellence in 
        mathematics or science education; and
            (C)(i) a sabbatical leave from teaching will be granted in 
        order to participate in the Program; or
            (ii) the teacher will return to a teaching position 
        comparable to the position held prior to participating in the 
        Program.
    (b) Administration.--The Secretary shall--
        (1) provide for the development and administration of an 
    application and selection process for fellowships under the 
    Program, including a process whereby final selections of fellowship 
    recipients are made in accordance with subsection (c);
        (2) provide for the publication of information on the Program 
    in appropriate professional publications, including an invitation 
    for applications from teachers listed in the directories of 
    national and State recognition programs;
        (3) select from the pool of applicants 12 elementary and 
    secondary school mathematics teachers and 12 elementary and 
    secondary school science teachers;
        (4) develop a program of orientation for fellowship recipients 
    under this part; and
        (5) not later than August 31 of each year in which fellowships 
    are awarded, prepare and submit an annual report and evaluation of 
    the Program to the appropriate Committees of the Senate and the 
    House of Representatives.
    (c) Selection.--
        (1) In general.--The Secretary shall arrange for the 24 
    semifinalists to travel to Washington, D.C., to participate in 
    interviews in accordance with the selection process described in 
    paragraph (2).
        (2) Final selection.--(A) Not later than May 1 of each year 
    preceding each year in which fellowships are to be awarded, the 
    Secretary shall select and announce the names of the fellowship 
    recipients.
        (B) The Secretary shall provide for the development and 
    administration of a process to select fellowship recipients from 
    the pool of semifinalists as follows:
            (i) The Secretary shall select three fellowship recipients 
        who shall be assigned to the Department of Energy.
            (ii) The Majority Leader of the Senate and the Minority 
        Leader of the Senate, or their designees, shall each select a 
        fellowship recipient who shall be assigned to the Senate.
            (iii) The Speaker of the House of Representatives and the 
        Minority Leader of the House of Representatives, or their 
        designees, shall each select a fellowship recipient who shall 
        be assigned to the House of Representatives.
            (iv) Each of the following individuals, or their designees, 
        shall select one fellowship recipient who shall be assigned 
        within the department, office, agency, or institute such 
        individual administers:
                (I) The Secretary of Education.
                (II) The Director of the National Institutes of Health.
                (III) The Director of the National Science PFoundation.
                (IV) The Administrator of the National Aeronautics and 
            Space Administration.
                (V) The Director of the Office of Science and 
            Technology Policy.

SEC. 516. FELLOWSHIP AWARDS.

    (a) Fellowship Recipient Compensation.--Each recipient of a 
fellowship under this part shall be paid during the fellowship period 
at a rate of pay that shall not exceed the minimum annual rate payable 
for a position under GS-13 of the General Schedule.
    (b) Local Educational Agency.--The Secretary shall seek to ensure 
that no local educational agency penalizes a teacher who elects to 
participate in the Program.
    SEC. 517. WASTE MANAGEMENT EDUCATION RESEARCH CONSORTIUM (WERC).
    (a) In General.--The Secretary is authorized to establish a 
partnership of Department of Energy laboratories, academic 
Pinstitutions, and private sector industries to conduct 
environmentally-related education programs, including programs 
involving environmentally conscious manufacturing and waste management 
activities that have undergraduate and graduate educational training as 
a component.

SEC. 518. AUTHORIZATION OF APPROPRIATIONS.

    (a) There are authorized to be appropriated for the Program 
$700,000 for fiscal year 1995, and such sums as may be necessary for 
each of the four succeeding fiscal years.
    (b) WERC Program.--There are authorized to be appropriated for the 
WERC program under section 517 such sums as may be necessary for fiscal 
year 1995 and each of the four succeeding fiscal years.

                 PART B--COMMUNITY SCHOOL PARTNERSHIPS

SEC. 521. SHORT TITLE.

    This part may be cited as the ``Community School Partnership Act''.

SEC. 522. FINDINGS.

    The Congress finds that--
        (1) the local community, when properly organized and 
    challenged, is one of the best sources of academic support, 
    motivation toward achievement, and financial resources for aspiring 
    postsecondary students;
        (2) local communities, working to complement or augment 
    services currently being offered by area schools and colleges, can 
    raise the educational expectations and increase the rate of 
    postsecondary attendance of their youth by forming locally based 
    organizations that provide both academic support (including 
    guidance, counseling, mentoring, tutoring, encouragement, and 
    recognition) and tangible, locally raised, effectively targeted, 
    publicly recognized financial assistance;
        (3) proven methods of stimulating these community efforts can 
    be promoted through Federal support for the establishment of area 
    program centers to organize and challenge community efforts to 
    develop educational incentives and support for local students; and
        (4) using Federal funds to leverage private contributions to 
    help students from low-income families attain educational and 
    career goals is an efficient and effective investment of scarce 
    taxpayer-provided resources.

SEC. 523. DEFINITIONS.

    As used in this part:
        (1) Area program center.--The term ``area program center'' 
    means an organization that--
            (A) is part of, responsible to, and overseen by, the 
        national organization; and
            (B) is staffed by professionals trained to create, develop, 
        and sustain local affiliated chapters in towns, cities, and 
        neighborhoods.
        (2) Local affiliated chapter.--The term ``local affiliated 
    chapter'' means an organization that--
            (A) is a nonprofit organization that is described in 
        section 501(c)(3) of the Internal Revenue Code of 1986, and 
        exempt from taxation under section 501(a) of such Code (or 
        shall meet this criteria through affiliation with the national 
        organization described in paragraph (3));
            (B) is formed for the purpose of providing educational 
        scholarships and academic support for residents of the local 
        community served by such organization;
            (C) solicits broad-based community support in its academic 
        support and fund-raising activities;
            (D) is broadly representative of the local community in the 
        structures of its volunteer-operated organization and has a 
        board of directors that includes leaders from local 
        neighborhood organizations and neighborhood residents, such as 
        school or college personnel, parents, students, community 
        agency representatives, and representatives of the business 
        community;
            (E) awards scholarships without regard to age, sex, marital 
        status, race, creed, color, religion, national origin or 
        disability; and
            (F) gives priority in awarding scholarships to students 
        from low-income families in the local community.
        (3) National organization.--The term ``national organization'' 
    means an organization that--
            (A) has the capacity to create, develop and sustain local 
        affiliated chapters;
            (B) has the capacity to sustain newly created local 
        affiliated chapters in towns, cities, and neighborhoods through 
        ongoing training and support programs;
            (C) is described in section 501(c)(3) of the Internal 
        Revenue Code of 1986, and exempt from taxation under section 
        501(a) of such Code;
            (D) is a publicly supported organization within the meaning 
        of section 170(b)(1)(A)(vi) of such Code;
            (E) ensures that each of its local affiliated chapters meet 
        the criteria described in subparagraphs (C) and (D); and
            (F) has a program for or experience in cooperating with 
        secondary and postsecondary institutions in carrying out its 
        scholarship and academic support activities.
        (4) High-poverty area.--The term ``high-poverty area'' means a 
    community with a higher percentage of children in poverty than the 
    national average of such percentage.
        (5) Students from low-income families.--The term ``students 
    from low-income families'' means students determined, pursuant to 
    part F of title IV of the Higher Education Act of 1965, to be 
    eligible for a Federal Pell Grant under subpart 1 of part A of 
    title IV of such Act.

SEC. 524. PURPOSE; ENDOWMENT GRANT AUTHORITY.

    (a) Purpose.--It is the purpose of this part to establish and 
support area program centers to enable such centers to foster the 
development of local affiliated chapters in high-poverty areas that 
promote higher education goals for students from low-income families 
by--
        (1) providing academic support, including guidance, counseling, 
    mentoring, tutoring, and recognition; and
        (2) providing scholarship assistance for the pursuit of 
    postsecondary education.
    (b) Endowment Grant Authority.--From the funds appropriated 
pursuant to the authority of section 527, the Secretary shall award an 
endowment grant, on a competitive basis, to a national organization to 
enable such organization to support the establishment or ongoing work 
of area program centers that foster the development of local affiliated 
chapters in high-poverty areas to improve high school graduation rates 
and postsecondary attendance through the provision of academic support 
services and scholarship assistance for the pursuit of postsecondary 
education.

SEC. 525. GRANT AGREEMENT AND REQUIREMENTS.

    (a) In General.--The Secretary shall award the endowment grant 
described in section 524(b) pursuant to an agreement between the 
Secretary and the national organization. Such agreement shall--
        (1) require the national organization to establish an endowment 
    fund in the amount of the grant, the corpus of which shall remain 
    intact and the interest income from which shall be used to support 
    the activities described in paragraphs (2) and (3);
        (2) require the national organization to use 25 percent of the 
    interest income from the endowment fund in any fiscal year to 
    provide scholarships for students from low-income families, which 
    scholarships shall be matched on a dollar-for-dollar basis from 
    funds raised by local affiliated chapters;
        (3) require the national organization to use 75 percent of the 
    interest income from the endowment fund in any fiscal year to 
    support the establishment or ongoing work of area program centers 
    to enable such centers to work with local communities to establish 
    local affiliated chapters in high-poverty areas and provide ongoing 
    technical assistance, training workshops, and other activities to 
    help ensure the ongoing success of the local affiliated chapters;
        (4) require the area program centers supported by the national 
    organization to give priority to establishing local affiliated 
    chapters that serve high-poverty areas;
        (5) require the national organization to submit, in each fiscal 
    year in which such organization uses the interest from the 
    endowment fund, a report to the Secretary that contains--
            (A) a description of the programs and activities supported 
        by the interest on the endowment fund;
            (B) the audited financial statement of the national 
        organization for the preceding fiscal year;
            (C) a plan for the programs and activities to be supported 
        from the interest on the endowment fund during the five 
        succeeding fiscal years;
            (D) an evaluation of the programs and activities supported 
        by the interest on the endowment fund as the Secretary may 
        require; and
            (E) data indicating the number of students from low-income 
        families who received scholarships from local affiliated 
        chapters, and the amounts of such scholarships;
        (6) contain such assurances as the Secretary may require with 
    respect to the management and operation of the endowment fund;
        (7) require that, in order to continue using the interest from 
    the endowment fund, the national organization will meet the 
    continuing eligibility requirements described in section 526; and
        (8) contain an assurance that if the Secretary determines that 
    such organization is not in substantial compliance with the 
    provisions of this part, then the national organization shall pay 
    to the Secretary an amount equal to the corpus of the endowment 
    fund plus any accrued interest on such fund that is available to 
    the national organization on the date of such determination.
    (b) Returned Funds.--All funds returned to the Secretary pursuant 
to subsection (a)(8) shall be available to the Secretary to carry out 
any scholarship or grant program assisted under title IV of the Higher 
Education Act of 1965.

SEC. 526. CONTINUING ELIGIBILITY.

    The national organization shall be eligible to continue to use the 
interest from the endowment fund in accordance with the provisions of 
this part in the third and each such succeeding fiscal year in which 
such organization uses such interest only if the local affiliated 
chapters associated with all area program centers supported under this 
part distribute to students from low-income families 80 percent of the 
total amount of funds raised by all such chapters in such year.

SEC. 527. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated $10,000,000 for fiscal year 
1996 to carry out this part.

                       PART C--1994 INSTITUTIONS

SEC. 531. SHORT TITLE.

    This part may be cited as the ``Equity in Educational Land-Grant 
Status Act of 1994''.

SEC. 532. DEFINITION.

    As used in this part, the term ``1994 Institutions'' means any one 
of the following colleges:
        (1) Bay Mills Community College.
        (2) Blackfeet Community College.
        (3) Cheyenne River Community College.
        (4) D-Q University.
        (5) Dullknife Memorial College.
        (6) Fond Du Lac Community College.
        (7) Fort Belknap Community College.
        (8) Fort Berthold Community College.
        (9) Fort Peck Community College.
        (10) LacCourte Orielles Ojibwa Community College.
        (11) Little Big Horn Community College.
        (12) Little Hoop Community College.
        (13) Nebraska Indian Community College.
        (14) Northwest Indian College.
        (15) Oglala Lakota College.
        (16) Salish Kootenai College.
        (17) Sinte Gleska University.
        (18) Sisseton Wahpeton Community College.
        (19) Standing Rock College.
        (20) Stonechild Community College.
        (21) Turtle Mountain Community College.
        (22) Navajo Community College.
        (23) United Tribes Technical College.
        (24) Southwest Indian Polytechnic Institute.
        (25) Institute of American Indian and Alaska Native Culture and 
    Arts Development.
        (26) Crownpoint Institute of Technology.
        (27) Haskell Indian Junior College.
        (28) Leech Lake Tribal College.
        (29) College of the Menominee Nation.

SEC. 533. LAND-GRANT STATUS FOR 1994 INSTITUTIONS.

    (a) In General.--
        (1) Status of 1994 institutions.--Except as provided in 
    paragraph (2), 1994 Institutions shall be considered land-grant 
    colleges established for the benefit of agriculture and the 
    mechanic arts in accordance with the provisions of the Act of July 
    2, 1862 (12 Stat. 503; 7 U.S.C. 301 et seq.) (commonly known as the 
    First Morrill Act).
        (2) 1994 institutions.--(A) 1994 Institutions shall not be 
    considered as land-grant colleges that are eligible to receive 
    funding under--
            (i) the Act of March 2, 1887 (24 Stat. 440, chapter 314; 7 
        U.S.C. 361a et seq.);
            (ii) the Act of May 8, 1914 (38 Stat. 373, chapter 79; 7 
        U.S.C. 343), except as provided under section 3(b)(3) of such 
        Act (as added by section 534(b)(1) of this part); or
            (iii) the Act of August 30, 1890 (26 Stat. 417, chapter 
        841; 7 U.S.C. 321 et seq.) (commonly known as the Second 
        Morrill Act).
        (B) In lieu of receiving donations under the provisions of the 
    Act of July 2, 1862 (12 Stat. 503; 7 U.S.C. 301 et seq.) (commonly 
    known as the First Morrill Act), relating to the donations of 
    public land or scrip for the endowment and maintenance of colleges 
    for the benefit of agriculture and the mechanic arts, 1994 
    Institutions shall receive funding pursuant to the authorization 
    under subsection (b).
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated $4,600,000 for each of fiscal years 1996 through 2000. 
Amounts appropriated pursuant to this section shall be held and 
considered to have been granted to 1994 Institutions to establish an 
endowment pursuant to subsection (c).
    (c) Endowment.--
        (1) In general.--In accordance with this subsection, the 
    Secretary of the Treasury shall establish a 1994 Institutions 
    Endowment Fund (hereafter in this subsection referred to as the 
    ``endowment fund''). The Secretary may enter into such agreements 
    as are necessary to carry out this subsection.
        (2) Deposit to the endowment fund.--The Secretary shall deposit 
    in the endowment fund any--
            (A) amounts made available by appropriations pursuant to 
        subsection (b) (hereafter in this subsection referred to as the 
        ``endowment fund corpus''); and
            (B) interest earned on the endowment fund corpus.
        (3) Investments.--The Secretary shall invest the endowment fund 
    corpus and income in interest-bearing obligations of the United 
    States.
        (4) Withdrawals and expenditures.--The Secretary may not make a 
    withdrawal or expenditure from the endowment fund corpus. On the 
    termination of each fiscal year, the Secretary shall withdraw the 
    amount of the income from the endowment fund for the fiscal year, 
    and after making adjustments for the cost of administering the 
    endowment fund, distribute the adjusted income as follows:
            (A) 60 percent of the adjusted income shall be distributed 
        among the 1994 Institutions on a pro rata basis. The 
        proportionate share of the adjusted income received by a 1994 
        Institution under this subparagraph shall be based on the 
        Indian student count (as defined in section 390(3) of the Carl 
        D. Perkins Vocational and Applied Technology Education Act (20 
        U.S.C. 2397h(3)) for each 1994 Institution for the fiscal year.
            (B) 40 percent of the adjusted income shall be distributed 
        in equal shares to the 1994 Institutions.

SEC. 534. APPROPRIATIONS.

    (a) Authorization of Appropriations.--
        (1) In general.--For fiscal year 1996, and for each fiscal year 
    thereafter, there are authorized to be appropriated to the 
    Department of the Treasury an amount equal to--
            (A) $50,000; multiplied by
            (B) the number of 1994 Institutions.
        (2) Payments.--For each fiscal year, the Secretary of the 
    Treasury shall pay to the treasurer of each 1994 Institution an 
    amount equal to--
            (A) the total amount made available by appropriations 
        pursuant to paragraph (1); divided by
            (B) the number of 1994 Institutions.
        (3) Use of funds; requirements.--The amounts authorized to be 
    appropriated under this subsection shall be used in the same manner 
    as is prescribed for colleges under the Act of August 30, 1890 (26 
    Stat. 417, chapter 841; 7 U.S.C. 321 et seq.) (commonly known as 
    the Second Morrill Act), and, except as otherwise provided in this 
    subsection, the requirements of such Act shall apply to 1994 
    Institutions.
    (b) Funding.--Section 3 of the Act of May 8, 1914 (38 Stat. 373, 
chapter 79; 7 U.S.C. 343) is amended--
        (1) in subsection (b), by adding at the end the following new 
    paragraph:
        ``(3) There are authorized to be appropriated for the fiscal 
    year ending June 30, 1996, and for each fiscal year thereafter, for 
    payment on behalf of the 1994 Institutions (as defined in section 
    532 of the Equity in Educational Land-Grant Status Act of 1994), 
    $5,000,000 for the purposes set forth in section 2. Such sums shall 
    be in addition to the sums appropriated for the several States and 
    Puerto Rico, the Virgin Islands, and Guam under the provisions of 
    this section. Such sums shall be distributed on the basis of a 
    competitive application process to be developed and implemented by 
    the Secretary and paid by the Secretary to State institutions 
    established in accordance with the provisions of the Act of July 2, 
    1862 (12 Stat. 503, chapter 130; 7 U.S.C. 301 et seq.) (commonly 
    known as the First Morrill Act) (other than 1994 Institutions) and 
    administered by such institutions through cooperative agreements 
    with 1994 Institutions in the States of the 1994 Institutions in 
    accordance with regulations that the Secretary shall adopt.'';
        (2) by redesignating subsection (f) as subsection (g); and
        (3) by inserting after subsection (e) the following new 
    subsection:
    ``(f) There shall be no matching requirement for funds made 
available pursuant to subsection (b)(3).''.

SEC. 535. INSTITUTIONAL CAPACITY BUILDING GRANTS.

    (a) Definitions.--As used in this section:
        (1) Federal share.--The term ``Federal share'' means, with 
    respect to a grant awarded under subsection (b), the share of the 
    grant that is provided from Federal funds.
        (2) Non-federal share.--The term ``non-Federal share'' means, 
    with respect to a grant awarded under subsection (b), the matching 
    funds paid with funds other than funds referred to in paragraph 
    (1), as determined by the Secretary.
        (3) Secretary.--The term ``Secretary'' means the Secretary of 
    Agriculture.
    (b) In General.--
        (1) Institutional capacity building grants.--For each of fiscal 
    years 1996 through 2000, the Secretary shall make two or more 
    institutional capacity building grants to assist 1994 Institutions 
    with constructing, acquiring, and remodeling buildings, 
    laboratories, and other capital facilities (including fixtures and 
    equipment) necessary to conduct instructional activities more 
    effectively in agriculture and sciences.
        (2) Requirements for grants.--The Secretary shall make grants 
    under this section--
            (A) on the basis of a competitive application process under 
        which appropriate officials of 1994 Institutions may submit 
        applications to the Secretary in such form and manner as the 
        Secretary may prescribe; and
            (B) in such manner as to ensure geographic diversity with 
        respect to the 1994 Institutions that are the subject of the 
        grants.
        (3) Demonstration of need.--The Secretary shall require, as 
    part of an application for a grant under this subsection, a 
    demonstration of need. The Secretary may only award a grant under 
    this subsection to an applicant that demonstrates a failure to 
    obtain funding for a project after making a reasonable effort to 
    otherwise obtain the funding.
        (4) Payment of non-federal share.--A grant awarded under this 
    subsection shall be made only if the recipient of the grant pays a 
    non-Federal share in an amount specified by the Secretary.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Department of Agriculture to carry out this 
section, $1,700,000 for each of fiscal years 1996 through 2000.

              PART D--WORKERS TECHNOLOGY SKILL DEVELOPMENT

SEC. 541. SHORT TITLE.

    This part may be cited as the ``Workers Technology Skill 
Development Act''.

SEC. 542. FINDINGS.

    The Congress finds and declares the following:
        (1) In an increasingly competitive world economy, the companies 
    and nations that lead in the rapid development, commercialization, 
    and application of new and advanced technologies, and in the high-
    quality, competitively priced production of goods and services, 
    will lead in economic growth, employment, and high living 
    standards.
        (2) While the United States remains the world leader in science 
    and invention, it has not done well in rapidly making the 
    transition from achievement in its research laboratories to high-
    quality, competitively priced production of goods and services. 
    This lag and the unprecedented competitive challenge that the 
    United States has faced from abroad have contributed to a drop in 
    real wages and living standards.
        (3) Companies that are successfully competitive in the rapid 
    development, commercialization, application, and implementation of 
    advanced technologies, and in the successful delivery of goods and 
    services, recognize that worker participation and labor-management 
    cooperation in the deployment, application, and implementation of 
    advanced workplace technologies make an important contribution to 
    high-quality, competitively priced production of goods and services 
    and in maintaining and improving real wages for workers.
        (4) The Federal Government has an important role in encouraging 
    and augmenting private sector efforts relating to the development, 
    application, manufacture, and deployment of new and advanced 
    technologies. The role should be to--
            (A) work with private companies, States, worker 
        organizations, nonprofit organizations, and institutions of 
        higher education to ensure the development, application, 
        production, and implementation of new and advanced technologies 
        to promote the improvement of workers' skills, wages, job 
        security, and working conditions, and a healthy environment;
            (B) encourage worker and worker organization participation 
        in the development, commercialization, evaluation, selection, 
        application, and implementation of new and advanced 
        technologies in the workplace; and
            (C) promote the use and integration of new and advanced 
        technologies in the workplace that enhance workers' skills.
        (5) In working with the private sector to promote the 
    technological leadership and economic growth of the United States, 
    the Federal Government has a responsibility to ensure that Federal 
    technology programs help the United States to remain competitive 
    and to maintain and improve living standards and to create and 
    retain secure jobs in economically stable communities.

SEC. 543. PURPOSES.

    The purposes of this part are to--
        (1) improve the ability of workers and worker organizations to 
    recognize, develop, assess, and improve strategies for successfully 
    integrating workers and worker organizations into the process of 
    evaluating, selecting, and implementing advanced workplace 
    technologies, and advanced workplace practices in a manner that 
    creates and maintains stable well-paying jobs for workers; and
        (2) assist workers and worker organizations in developing the 
    expertise necessary for effective participation with employers in 
    the development of strategies and programs for the successful 
    evaluation, selection, and implementation of advanced workplace 
    technologies and advanced workplace practices through the provision 
    of a range of education, training, and related services.

SEC. 544. DEFINITIONS.

    As used in this part:
        (1) Advanced workplace practices.--The term ``advanced 
    workplace practices'' means innovations in work organization and 
    performance, including high-performance workplace systems, flexible 
    production techniques, quality programs, continuous improvement, 
    concurrent engineering, close relationships between suppliers and 
    customers, widely diffused decisionmaking and work teams, and 
    effective integration of production technology, worker skills and 
    training, and workplace organization, and such other 
    characteristics as determined appropriate by the Secretary of 
    Labor, in consultation with the Secretary of Commerce.
        (2) Advanced workplace technologies.--The term ``advanced 
    workplace technologies'' includes--
            (A) numerically controlled machine tools, robots, automated 
        process control equipment, computerized flexible manufacturing 
        systems, associated computer software, and other technology for 
        improving the manufacturing and industrial production of goods 
        and commercial services, which advance the state-of-the-art; or
            (B) novel industrial and commercial techniques and 
        processes not previously generally available that improve 
        quality, productivity, and practices, including engineering 
        design, quality assurance, concurrent engineering, continuous 
        process production technology, inventory management, upgraded 
        worker skills, communications with customers and suppliers, and 
        promotion of sustainable economic growth.
        (3) Department.--The term ``Department'' means the Department 
    of Labor.
        (4) Nonprofit organization.--The term ``nonprofit 
    organization'' means a tax-exempt organization, as described in 
    paragraph (3), (4), or (5) of section 501(c) of the Internal 
    Revenue Code of 1986.
        (5) Secretary.--The term ``Secretary'' means the Secretary of 
    Labor.
        (6) Worker organization.--The term ``worker organization'' 
    means a labor organization within the meaning of section 501(c)(5) 
    of the Internal Revenue Code of 1986.

SEC. 545. GRANTS.

    (a) In General.--The Secretary of Labor, after consultation with 
the Secretary of Commerce, shall, to the extent appropriations are 
available, award grants to eligible entities to carry out the purposes 
described in section 543.
    (b) Eligibility.--To be eligible to receive a grant under this 
section, an entity shall--
        (1) be a nonprofit organization, or a partnership consortium of 
    such organizations;
        (2) prepare and submit to the Secretary an application at such 
    time, in such manner, and containing such information as the 
    Secretary may require, including a description of the activities 
    that the entity will carry out using amounts received under the 
    grant; and
        (3) agree to make available (directly or through donations from 
    public or private entities) non-Federal contributions toward the 
    costs of the activities to be conducted with grant funds, in an 
    amount equal to the amount required under subsection (d).
    (c) Use of Amounts.--An entity shall use amounts received under a 
grant awarded under this section to carry out the purposes described in 
section 543 through activities such as--
        (1) the provision of technical assistance to workers, worker 
    organizations, employers, State economic development agencies, 
    State industrial extension programs, Advanced Technology Centers, 
    and National Manufacturing Technology Centers to identify advanced 
    workplace practices and strategies that enhance the effective 
    evaluation, selection, and implementation of advanced workplace 
    technologies;
        (2) the researching and identification of new and advanced 
    workplace technologies, and advanced workplace practices that 
    promote the improvement of workers' skills, wages, working 
    conditions, and job security, that research the link between 
    advanced workplace practices and long-term corporate performance, 
    and which are consistent with the needs of local communities and 
    the need for a healthy environment; and
        (3) the development and dissemination of training programs and 
    materials to be used for and by workers, worker organizations, 
    employers, State economic development agencies, State industrial 
    extension programs, Advanced Technology Centers, and National 
    Manufacturing Technology Centers relating to the activities and 
    services provided pursuant to paragraphs (1) and (2), and regarding 
    successful practices including practices which address labor-
    management cooperation and the involvement of workers in the 
    design, development, and implementation of workplace practices and 
    technologies.
    (d) Terms of Grants and Non-Federal Shares.--
        (1) Terms.--Grants awarded under this section shall be for a 
    term not to exceed six years.
        (2) Non-federal share.--Amounts required to be contributed by 
    an entity under subsection (b)(3) shall equal--
            (A) an amount equal to 15 percent of the amount provided 
        under the grant in the first year for which the grant is 
        awarded;
            (B) an amount equal to 20 percent of the amount provided 
        under the grant in the second year for which the grant is 
        awarded;
            (C) an amount equal to 33 percent of the amount provided 
        under the grant in the third year for which the grant is 
        awarded;
            (D) an amount equal to 40 percent of the amount provided 
        under the grant in the fourth year for which the grant is 
        awarded; and
            (E) an amount equal to 50 percent of the amount provided 
        under the grant in the fifth and sixth years for which the 
        grant is awarded.
    (e) Evaluation.--The Department shall develop mechanisms for 
evaluating the effectiveness of the use of a grant awarded under this 
section in carrying out the purposes under section 543 and, not later 
than two years after the date of enactment of this Act, and every two 
years thereafter, prepare and submit a report to Congress concerning 
such evaluation.

SEC. 546. IDENTIFICATION AND DISSEMINATION OF BEST PRACTICES.

    (a) In General.--
        (1) Information.--The Secretary, in cooperation and after 
    consultation with the Secretary of Commerce, shall assist workers, 
    worker organizations, and employers in successfully adopting 
    advanced workplace technologies, and advanced workplace practices 
    by identifying, collecting, and disseminating information on best 
    workplace practices and workplace assessment tools, including--
            (A) methods, techniques, and successful models of labor-
        management cooperation and of worker and worker organization 
        participation in the development, evaluation, selection, and 
        implementation of new and advanced workplace technologies, and 
        advanced workplace practices;
            (B) methods, techniques, and successful models for the 
        design and implementation of new and advanced workplace 
        practices;
            (C) methods, techniques, and successful models for the 
        design and implementation of advanced forms of work 
        organization; and
            (D) methods, techniques, and successful models for the 
        assessment of worker skills and training needs relating to the 
        effective development, evaluation, selection, and 
        implementation of advanced workplace technologies, and advanced 
        workplace practices.
        (2) Contents.--Such information on best workplace practices 
    shall include--
            (A) summaries and analyses of best practice cases;
            (B) criteria for assessment of current workplace practices; 
        and
            (C) information on the best available education and 
        training materials and services relating to the development, 
        implementation, and operation of systems utilizing new and 
        advanced workplace technologies, and advanced workplace 
        practices.
    (b) Distribution.--The information and materials developed under 
this section shall be distributed through an appropriate entity 
designated by the Secretary of Commerce to the Regional Centers for the 
Transfer of Manufacturing Technology, to the Manufacturing Outreach 
Center, to other technology training entities, and directly to others 
as determined appropriate by the Secretary of Labor and the Secretary 
of Commerce.

SEC. 547. AUTHORIZATION OF APPROPRIATIONS.

    (a) In General.--There are authorized to be appropriated to carry 
out this part such sums as may be necessary for each of the fiscal 
years 1995 through 1997.
    (b) Availability.--Amounts appropriated under subsection (a) shall 
remain available until expended.

                     PART E--MULTIETHNIC PLACEMENT

                    Subpart 1--Multiethnic Placement

SEC. 551. SHORT TITLE.

    This subpart may be cited as the ``Howard M. Metzenbaum Multiethnic 
Placement Act of 1994''.

SEC. 552. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
        (1) nearly 500,000 children are in foster care in the United 
    States;
        (2) tens of thousands of children in foster care are waiting 
    for adoption;
        (3) 2 years and 8 months is the median length of time that 
    children wait to be adopted;
        (4) child welfare agencies should work to eliminate racial, 
    ethnic, and national origin discrimination and bias in adoption and 
    foster care recruitment, selection, and placement procedures; and
        (5) active, creative, and diligent efforts are needed to 
    recruit foster and adoptive parents of every race, ethnicity, and 
    culture in order to facilitate the placement of children in foster 
    and adoptive homes which will best meet each child's needs.
    (b) Purpose.--It is the purpose of this subpart to promote the best 
interests of children by--
        (1) decreasing the length of time that children wait to be 
    adopted;
        (2) preventing discrimination in the placement of children on 
    the basis of race, color, or national origin; and
        (3) facilitating the identification and recruitment of foster 
    and adoptive families that can meet children's needs.

SEC. 553. MULTIETHNIC PLACEMENTS.

    (a) Activities.--
        (1) Prohibition.--An agency, or entity, that receives Federal 
    assistance and is involved in adoption or foster care placements 
    may not--
            (A) categorically deny to any person the opportunity to 
        become an adoptive or a foster parent, solely on the basis of 
        the race, color, or national origin of the adoptive or foster 
        parent, or the child, involved; or
            (B) delay or deny the placement of a child for adoption or 
        into foster care, or otherwise discriminate in making a 
        placement decision, solely on the basis of the race, color, or 
        national origin of the adoptive or foster parent, or the child, 
        involved.
        (2) Permissible consideration.--An agency or entity to which 
    paragraph (1) applies may consider the cultural, ethnic, or racial 
    background of the child and the capacity of the prospective foster 
    or adoptive parents to meet the needs of a child of this background 
    as one of a number of factors used to determine the best interests 
    of a child.
        (3) Definition.--As used in this subsection, the term 
    ``placement decision'' means the decision to place, or to delay or 
    deny the placement of, a child in a foster care or an adoptive 
    home, and includes the decision of the agency or entity involved to 
    seek the termination of birth parent rights or otherwise make a 
    child legally available for adoptive placement.
    (b) Equitable Relief.--Any individual who is aggrieved by an action 
in violation of subsection (a), taken by an agency or entity described 
in subsection (a), shall have the right to bring an action seeking 
relief in a United States district court of appropriate jurisdiction.
    (c) Federal Guidance.--Not later than 6 months after the date of 
the enactment of this Act, the Secretary of Health and Human Services 
shall publish guidance to concerned public and private agencies and 
entities with respect to compliance with this subpart.
    (d) Deadline for Compliance.--
        (1) In general.--Except as provided in paragraph (2), an agency 
    or entity that receives Federal assistance and is involved with 
    adoption or foster care placements shall comply with this subpart 
    not later than six months after publication of the guidance 
    referred to in subsection (c), or one year after the date of 
    enactment of this Act, whichever occurs first.
        (2) Authority to extend deadline.--If a State demonstrates to 
    the satisfaction of the Secretary that it is necessary to amend 
    State statutory law in order to change a particular practice that 
    is inconsistent with this subpart, the Secretary may extend the 
    compliance date for the State a reasonable number of days after the 
    close of the first State legislative session beginning after the 
    date the guidance referred to in subsection (c) is published.
    (e) Noncompliance Deemed a Civil Rights Violation.--Noncompliance 
with this subpart is deemed a violation of title VI of the Civil Rights 
Act of 1964.
    (f) No Effect on Indian Child Welfare Act of 1978.--Nothing in this 
section shall be construed to affect the application of the Indian 
Child Welfare Act of 1978 (25 U.S.C. 1901 et seq.).
    SEC. 554. REQUIRED RECRUITMENT EFFORTS FOR CHILD WELFARE SERVICES 
      PROGRAMS.
    Section 422(b) of the Social Security Act (42 U.S.C. 622(b)) is 
amended--
        (1) by striking ``and'' at the end of paragraph (7);
        (2) by striking the period at the end of paragraph (8) and 
    inserting ``; and''; and
        (3) by adding at the end the following:
        ``(9) provide for the diligent recruitment of potential foster 
    and adoptive families that reflect the ethnic and racial diversity 
    of children in the State for whom foster and adoptive homes are 
    needed.''.

                       Subpart 2--Other Provision

SEC. 555. EFFECT OF FAILURE TO CARRY OUT STATE PLAN.

    (a) In General.--Part A of title XI of the Social Security Act (42 
U.S.C. 1301-1320b-13) is amended by inserting after section 1122 the 
following:

``SEC. 1123. EFFECT OF FAILURE TO CARRY OUT STATE PLAN.

    ``In an action brought to enforce a provision of the Social 
Security Act, such provision is not to be deemed unenforceable because 
of its inclusion in a section of the Act requiring a State plan or 
specifying the required contents of a State plan. This section is not 
intended to limit or expand the grounds for determining the 
availability of private actions to enforce State plan requirements 
other than by overturning any such grounds applied in Suter v. Artist 
M., 112 S. Ct. 1360 (1992), but not applied in prior Supreme Court 
decisions respecting such enforceability; provided, however, that this 
section is not intended to alter the holding in Suter v. Artist M. that 
section 471(a)(15) of the Act is not enforceable in a private right of 
action.
    (b) Applicability.--The amendment made by subsection (a) shall 
apply to actions pending on the date of the enactment of this Act and 
to actions brought on or after such date of enactment.

                         PART F--MISCELLANEOUS

SEC. 561. BUDGET COMPLIANCE.

    Any authority or requirement to make funds available under this Act 
shall be effective only to the extent provided in appropriations Acts.

SEC. 562. DOCUMENTS TRANSMITTED TO CONGRESS.

    In documents transmitted to Congress explaining the President's 
budget request for the Special Education account, the Department of 
Education shall display amounts included in the request to reflect the 
incorporation of the program for children with disabilities under part 
D of chapter 1 of title I of the Elementary and Secondary Education Act 
of 1965 (as such part was in effect on the day preceding the date of 
enactment of the Improving America's Schools Act of 1994).

SEC. 563. VOCATIONAL EDUCATION REGULATIONS.

    (a) In General.--Notwithstanding any other provision of law, 
beginning on the date of enactment of this Act, and ending on the date 
of enactment of an Act reauthorizing the Carl D. Perkins Vocational and 
Applied Technology Education Act (20 U.S.C. 2301 et seq.) the 
Department of Education's interpretation of the Carl D. Perkins 
Vocational and Applied Technology Act relating to--
        (1) the access or participation of members of special 
    populations in vocational education, including the provision of 
    supplementary services and the cost of such services; and
        (2) the conduct of local evaluations,
that are contained in the final regulations published in the Federal 
Register on August 14, 1992, shall remain in effect.
    (b) Special Rule.--The Secretary of Education may not issue 
additional regulations concerning the final regulations described in 
subsection (a).
    SEC. 564. RATE OF PAY FOR THE DEPUTY DIRECTOR OF THE NATIONAL 
      INSTITUTE ON DISABILITY AND REHABILITATION RESEARCH.
    Notwithstanding section 202(c)(2) of the Rehabilitation Act of 1973 
(29 U.S.C. 761a(c)(2)), the Secretary of Education is authorized to 
compensate any individual appointed during calendar year 1994 to be the 
Deputy Director of the National Institute on Disability and 
Rehabilitation Research at the rate of basic pay for a position at ES-5 
of the Senior Executive Service Schedule.

SEC. 565. STUDY.

    The Secretary of the Interior shall conduct a study, in 
consultation with the board of regents of the Haskell Indian Junior 
College to evaluate the possible need for alternative institutional and 
administrative systems at Haskell Indian Junior College to support the 
transition of such college to a four year university. If the study's 
conclusions require legislation to be implemented, the study shall be 
accompanied by appropriate draft legislation. Such study shall be 
transmitted to the Committee on Indian Affairs of the Senate and the 
Committee on Education and Labor of the House of Representatives by 
June 1, 1995.

SEC. 566. THERAPEUTIC MODEL DEMONSTRATION SCHOOLS.

    (a) Authorization.--
        (1) In general.--The Secretary of the Interior, acting through 
    the Bureau of Indian Affairs, is authorized to establish 
    demonstration schools, based on the therapeutic model described in 
    this section, to provide services necessary to achieve positive 
    changes in the attitudes, behavior, and academic performance of 
    Indian youth attending off-reservation boarding schools.
        (2) Purpose.--The purpose of the therapeutic model 
    demonstration schools is--
            (A) to provide a program, based on an annual written plan, 
        linking clinicians, counselors, and mental health professionals 
        with academic program personnel in a culturally sensitive 
        residential program tailored to the particular needs of Indian 
        students;
            (B) to provide for a continued evaluation of the planning 
        and implementation of the therapeutic model in the designated 
        schools; and
            (C) to determine what steps the Bureau of Indian Affairs 
        must take and what resources are required to transform existing 
        off-reservation boarding schools to meet the needs of 
        chemically dependent, emotionally disturbed, socially troubled, 
        or other at-risk Indian youth who attend such schools.
    (b) Location.--The Secretary shall initiate the therapeutic model 
at two schools during school years 1994 through 1996, and shall give 
priority to--
        (1) one school that is the recipient of a grant under section 
    5204 of the August F. Hawkins-Robert T. Stafford Elementary and 
    Secondary School Improvement Amendments of 1988 during the 1994-
    1995 school year; and
        (2) one school operated by the Bureau of Indian Affairs during 
    the 1995-1996 school year.
    (c) Services.--The demonstration schools shall provide an 
integrated residential environment that may include--
        (1) mental health services;
        (2) education;
        (3) recreation therapy;
        (4) social service programs;
        (5) substance abuse education and prevention; and
        (6) other support services for aftercare.
    (d) Staffing.--The demonstration schools shall be staffed with 
health and social service professionals, and educators, and may 
include--
        (1) clinical psychologists;
        (2) child psychologists;
        (3) substance abuse counselors;
        (4) social workers; and
        (5) health educators.
    (e) Enrollment.--Notwithstanding any other provision of law, the 
Secretary of the Interior may limit the enrollment at the demonstration 
schools.
    (f) Assistance.--The Secretary is authorized to enter into 
agreements with other organizations and agencies, including the Indian 
Health Service, to carry out this section.
    (g) Report.--Not later than July 31 of each year, the Secretary of 
the Interior shall submit a report to the Committee on Indian Affairs 
of the Senate and the Committee on Education and Labor of the House of 
Representatives on the progress of the Department of the Interior in 
the development of the demonstration schools.

SEC. 567. IMPACT AID WAIVER.

    In carrying out section 14(c) of the Act of September 23, 1950 
(Public Law 815, 81st Congress) (20 U.S.C. 644(c)) the Secretary shall 
waive any amount of local effort in excess of $200,000 that would 
otherwise be required under paragraphs (3) and (4) of such section and 
any regulations issued thereunder, in awarding funds to the Winona R-
III School District, Missouri, with respect to its application #MO-86-
C-3601A36.
    SEC. 568. APPLICATION OF THE ANTITRUST LAWS TO AWARD OF NEED-BASED 
      EDUCATIONAL AID.
    (a) Temporary Exemption.--It shall not be unlawful under the 
antitrust laws for 2 or more institutions of higher education at which 
all students admitted are admitted on a need-blind basis, to agree or 
attempt to agree--
        (1) to award such students financial aid only on the basis of 
    demonstrated financial need for such aid;
        (2) to use common principles of analysis for determining the 
    need of such students for financial aid if the agreement to use 
    such principles does not restrict financial aid officers at such 
    institutions in their exercising independent professional judgment 
    with respect to individual applicants for such financial aid;
        (3) to use a common aid application form for need-based 
    financial aid for such students if the agreement to use such form 
    does not restrict such institutions in their requesting from such 
    students, or in their using, data in addition to the data requested 
    on such form; or
        (4) to exchange through an independent third party, before 
    awarding need-based financial aid to any of such students who is 
    commonly admitted to the institutions of higher education involved, 
    data with respect to the student so admitted and the student's 
    family relating to assets, income, expenses, the number of family 
    members, and the number of the student's siblings in college, if 
    each of such institutions is permitted to retrieve such data only 
    once with respect to the student.
    (b) Limitations.--Subsection (a) shall not apply with respect to--
        (1) any financial aid or assistance authorized by the Higher 
    Education Act of 1965 (20 U.S.C. 1001 et seq.); or
        (2) any contract, combination, or conspiracy with respect to 
    the amount or terms of any prospective financial aid award to a 
    specific individual.
    (c) Definitions.--For purposes of this section--
        (1) the term ``alien'' has the meaning given such term in 
    section 101(3) of the Immigration and Nationality Act (8 U.S.C. 
    1101(3));
        (2) the term ``antitrust laws'' has the meaning given such term 
    in subsection (a) of the first section of the Clayton Act (15 
    U.S.C. 12(a)), except that such term includes section 5 of the 
    Federal Trade Commission Act (15 U.S.C. 45) to the extent such 
    section applies to unfair methods of competition;
        (3) the term ``institution of higher education'' has the 
    meaning given such term in section 1201(a) of the Higher Education 
    Act of 1965 (20 U.S.C. 1141(a));
        (4) the term ``lawfully admitted for permanent residence'' has 
    the meaning given such term in section 101(20) of the Immigration 
    and Nationality Act (8 U.S.C. 1101(20));
        (5) the term ``national of the United States'' has the meaning 
    given such term in section 101(22) of the Immigration and 
    Nationality Act (8 U.S.C. 1101(22));
        (6) the term ``on a need-blind basis'' means without regard to 
    the financial circumstances of the student involved or the 
    student's family; and
        (7) the term ``student'' means, with respect to an institution 
    of higher education, a national of the United States or an alien 
    admitted for permanent residence who is admitted to attend an 
    undergraduate program at such institution on a full-time basis.
    (d) Expiration.--Subsection (a) shall expire on September 30, 
1997.0
    (e) Related Amendments.--The Higher Education Amendments of 1992 
(Public Law 102-325) is amended--
        (1) in the table of contents by striking the matter relating to 
    section 1544, and part F of title XV, of such Act; and
        (2) by striking part F of title XV of such Act.

SEC. 569. DETERMINATION FOR FISCAL YEAR 1994.

    Notwithstanding the proviso referring to section 3(d)(2)(B) of 
Public Law 81-874 under the following heading ``IMPACT AID'' under 
title III of the Departments of Labor, Health and Human Services and 
Education, and Related Agencies Appropriations Act of 1994, or any 
provision of paragraph (2) of section 3(d) of such Public Law which is 
consistent with this proviso, determinations regarding the eligibility 
for an amount of payments under section 3(d)(2)(B) of such Public Law 
for fiscal year 1994 shall be made on the basis of 1994 data, and 
related Department regulations in effect during fiscal year 1992 shall 
be used in the tabulation of payments.







                               Speaker of the House of Representatives.







                            Vice President of the United States and    
                                               President of the Senate.