[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 2213 Reported in Senate (RS)]





                                                       Calendar No. 570

105th CONGRESS

  2d Session

                                S. 2213

                          [Report No. 105-327]

_______________________________________________________________________

                                 A BILL

 To allow all States to participate in activities under the Education 
               Flexibility Partnership Demonstration Act.

_______________________________________________________________________

                           September 14, 1998

                       Reported with an amendment
                                                       Calendar No. 570
105th CONGRESS
  2d Session
                                S. 2213

                          [Report No. 105-327]

 To allow all States to participate in activities under the Education 
               Flexibility Partnership Demonstration Act.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 24, 1998

 Mr. Frist (for himself, Mr. Wyden, Mr. Kerrey, Mr. DeWine, Mr. Glenn, 
   Mr. Kempthorne, Mr. Ford, Mr. Helms, Mr. Grassley, Mr. Roth, Ms. 
Collins, Mr. Smith of Oregon, Mr. Levin, Mr. McConnell, Mr. Hagel, Mrs. 
Hutchison, Mr. Domenici, Mr. Bennett, and Mr. Thompson) introduced the 
 following bill; which was read twice and referred to the Committee on 
                       Labor and Human Resources

                           September 14, 1998

              Reported by Mr. Jeffords, with an amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

_______________________________________________________________________

                                 A BILL


 
 To allow all States to participate in activities under the Education 
               Flexibility Partnership Demonstration Act.

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

<DELETED>SECTION 1. SHORT TITLE.</DELETED>

<DELETED>    This Act may be cited as the ``Education Flexibility 
Amendments of 1998''.</DELETED>

<DELETED>SEC. 2. FINDINGS.</DELETED>

<DELETED>    Congress makes the following findings:</DELETED>
        <DELETED>    (1) States differ substantially in demographics, 
        in level of urbanization, in geography, and in school 
        governance. The administrative and funding mechanisms that help 
        schools in 1 State improve may not prove successful in other 
        States.</DELETED>
        <DELETED>    (2) State and local educational agencies are 
        required to complete numerous reporting requirements 
        established by Federal rule or regulation. States and schools 
        need flexibility, with respect to Federal and State rules and 
        regulations, to devise the best way in differing situations to 
        achieve the goals of Federal and State education 
        laws.</DELETED>
        <DELETED>    (3) To achieve the State goals for the education 
        of children in the State, the focus must be on results, not 
        process.</DELETED>
        <DELETED>    (4) Activities assisted under the Education 
        Flexibility Partnership Demonstration Act, as implemented by 12 
        States--</DELETED>
                <DELETED>    (A) represent a significant step in 
                focusing on results not process; and</DELETED>
                <DELETED>    (B) give States substantial flexibility in 
                exchange for accountability.</DELETED>

<DELETED>SEC. 3. EXPANSION OF THE EDUCATION FLEXIBILITY PARTNERSHIP 
              DEMONSTRATION ACT.</DELETED>

<DELETED>    (a) In General.--Section 311(e) of the Goals 2000: Educate 
America Act (20 U.S.C. 5891(e)) is amended--</DELETED>
        <DELETED>    (1) in paragraph (2)--</DELETED>
                <DELETED>    (A) by amending subparagraph (A) to read 
                as follows:</DELETED>
                <DELETED>    ``(A) In general.--The Secretary may carry 
                out an education demonstration program under which the 
                Secretary authorizes--</DELETED>
                        <DELETED>    ``(i) a State educational agency 
                        that serves an eligible State to waive 
                        statutory or regulatory requirements applicable 
                        to 1 or more programs or Acts described in 
                        subsection (b), other than requirements 
                        described in subsection (c), for the State 
                        educational agency or any local educational 
                        agency or school within the State; 
                        and</DELETED>
                        <DELETED>    ``(ii) a State educational agency 
                        that serves an eligible State and participated 
                        in the program under this subsection prior to 
                        the date of enactment of the Education 
                        Flexibility Amendments of 1998 to waive 
                        statutory or regulatory requirements applicable 
                        to 1 or more programs or Acts described in 
                        subsection (b), title III of the Elementary and 
                        Secondary Education Act of 1965, or the Adult 
                        Education Act, other than requirements 
                        described in subsection (c), for the State 
                        educational agency or any local educational 
                        agency or school within the State.'';</DELETED>
                <DELETED>    (B) by striking subparagraph (B); 
                and</DELETED>
                <DELETED>    (C) by redesignating subparagraph (C) as 
                subparagraph (B); and</DELETED>
        <DELETED>    (2) in paragraph (3)--</DELETED>
                <DELETED>    (A) in subparagraph (A), by inserting 
                ``(i)'' after ``(A)'';</DELETED>
                <DELETED>    (B) in subparagraph (B), by striking the 
                period and inserting ``; or'';</DELETED>
                <DELETED>    (C) by redesignating subparagraph (B) (as 
                amended by subparagraph (B)) as clause (ii); 
                and</DELETED>
                <DELETED>    (D) by adding at the end the 
                following:</DELETED>
                <DELETED>    ``(B) has a consolidated State plan or a 
                consolidated State application approved by the 
                Secretary under section 14302 of the Elementary and 
                Secondary Education Act of 1965.''.</DELETED>
<DELETED>    (b) Funding.--Section 311(e) of the Goals 2000: Educate 
America Act (20 U.S.C. 5891(e)) is amended further by adding at the end 
the following:</DELETED>
<DELETED>    ``(h) Funding.--Notwithstanding any other provision of law 
and using any funds available to the Secretary, the Secretary shall 
make available such funds as are necessary to carry out this subsection 
for each of the fiscal years 1999 through 2003.''.</DELETED>

                     TITLE I--EDUCATION FLEXIBILITY

SEC. 101. SHORT TITLE.

    This title may be cited as the ``Education Flexibility Amendments 
of 1998''.

SEC. 102. FINDINGS.

    Congress makes the following findings:
            (1) States differ substantially in demographics, in school 
        governance, and in school finance and funding. The 
        administrative and funding mechanisms that help schools in 1 
        State improve may not prove successful in other States.
            (2) Although the Elementary and Secondary Education Act of 
        1965 and other Federal education statutes afford flexibility to 
        State and local educational agencies in implementing Federal 
        programs, certain requirements of Federal education statutes or 
        regulations may impede local efforts to reform and improve 
        education.
            (3) By granting waivers of certain statutory and regulatory 
        requirements, the Federal Government can remove impediments for 
        local educational agencies in implementing educational reforms 
        and raising the achievement levels of all children.
            (4) State educational agencies are closer to local school 
        systems, implement statewide educational reforms with both 
        Federal and State funds, and are responsible for maintaining 
        accountability for local activities consistent with State 
        standards and assessment systems. Therefore, State educational 
        agencies are often in the best position to align waivers of 
        Federal and State requirements with State and local 
        initiatives.
            (5) The Education Flexibility Partnership Demonstration Act 
        allows State educational agencies the flexibility to waive 
        certain Federal requirements, along with related State 
        requirements, but allows only 12 States to qualify for such 
        waivers.
            (6) Expansion of the waiver authority under such Act will 
        allow for the waiver of statutory and regulatory requirements 
        that impede implementation of State and local educational 
        improvement plans, or that unnecessarily burden program 
        administration, while maintaining the intent and purposes of 
        affected programs, and maintaining such fundamental 
        requirements as those relating to civil rights, educational 
        equity, and accountability.
            (7) To achieve the State goals for the education of 
        children in the State, the focus must be on results in raising 
        the achievement of all students, not process.

SEC. 103. EXPANSION OF THE EDUCATION FLEXIBILITY PARTNERSHIP 
              DEMONSTRATION ACT.

    (a) In General.--Section 311(e) of the Goals 2000: Educate America 
Act (20 U.S.C. 5891(e)) is amended--
            (1) in paragraph (2)--
                    (A) by amending subparagraph (A) to read as 
                follows:
                    ``(A) In general.--The Secretary may carry out an 
                education flexibility demonstration program under which 
                the Secretary authorizes a State educational agency 
                that serves an eligible State to waive statutory or 
                regulatory requirements applicable to 1 or more 
                programs or Acts described in subsection (b) or 1 or 
                more programs described in subpart 2 of part A of title 
                III of the Elementary and Secondary Education Act of 
                1965 (except section 3136 of such Act), other than 
                requirements described in subsection (c) of this Act 
                and section 14401(c) of the Elementary and Secondary 
                Education Act of 1965, for the State educational agency 
                or any local educational agency or school within the 
                State.'';
                    (B) by striking subparagraph (B); and
                    (C) by redesignating subparagraph (C) as 
                subparagraph (B); and
            (2) in paragraph (3), by amending subparagraph (A) to read 
        as follows:
                    ``(A)(i) has--
                            ``(I) developed and implemented the 
                        challenging State content standards, 
                        challenging State student performance 
                        standards, and aligned assessments described in 
                        section 1111(b) of the Elementary and Secondary 
                        Education Act of 1965, including the 
                        requirements of that section relating to 
                        disaggregation of data, and for which local 
                        educational agencies in the State are producing 
                        the individual school performance profiles 
                        required by section 1116(a) of such Act; or
                            ``(II) made substantial progress, as 
                        determined by the Secretary, toward developing 
                        and implementing the standards and assessments, 
                        and toward having local educational agencies in 
                        the State produce the profiles, described in 
                        subclause (I); and
                    ``(ii) holds local educational agencies and schools 
                accountable for meeting the educational goals described 
                in the local applications submitted under paragraph 
                (5), and for taking corrective actions, consistent with 
                section 1116 of the Elementary and Secondary Education 
                Act of 1965, for the local educational agencies that do 
                not meet the goals; and''.
    (b) Authority To Issue Waivers.--Section 311(e) of the Goals 2000: 
Educate America Act (20 U.S.C. 5891(e)) is amended further by adding at 
the end the following:
            ``(8) Authority To Issue Waivers.--Notwithstanding any 
        other provision of law, the Secretary is authorized to carry 
        out the education flexibility demonstration program under this 
        subsection for each of the fiscal years 1999 through 2003.''.
    (c) Accountability.--Section 311(f) of the Goals 2000: Educate 
America Act (20 U.S.C. 5891(f)) is amended by adding at the end the 
following: ``In the case of deciding whether to extend a State 
educational agency's authority to issue waivers under subsection (e), 
the Secretary also shall review the progress of the State educational 
agency to determine if such agency--
            (1) has established procedures for increasing the 
        percentage of elementary school and secondary school teachers 
        in the State who have demonstrated, by traditional or 
        alternative routes, the subject matter knowledge and 
        pedagogical skill necessary to provide effective instruction in 
        the content area or areas in which the teachers provide 
        instruction; and
            (2) has decreased the percentage of elementary school and 
        secondary school teachers teaching in high poverty elementary 
        schools and secondary schools who do not demonstrate such 
        knowledge and skills.''.
    (d) Transition Rules.--
            (1) Construction.--Nothing in this title or the amendments 
        made by this title shall be construed to affect the authority 
        of a State educational agency that has been granted waiver 
        authority under the following provisions of law:
                    (A) Section 311(e) of the Goals 2000: Educate 
                America Act as such section was in effect on the day 
                before the date of enactment of this Act.
                    (B) The proviso referring to such section 311(e) 
                under the heading ``education reform'' in the 
                Department of Education Appropriations Act, 1996 
                (Public Law 104-134; 110 Stat. 1321-229).
            (2) Eligibility.--A State educational agency that has been 
        granted waiver authority under a provision of law described in 
        subparagraph (A) or (B) of paragraph (1) prior to the date of 
        enactment of this Act shall be eligible to apply for waiver 
        authority under section 311(e) of the Goals 2000: Educate 
        America Act as such section is in effect on the date of 
        enactment of this Act.

TITLE II--OREGON INSTITUTE OF PUBLIC SERVICE AND CONSTITUTIONAL STUDIES

SEC. 201. DEFINITIONS.

    In this title:
            (1) Endowment fund.--The term ``endowment fund'' means a 
        fund established by Portland State University for the purpose 
        of generating income for the support of the Institute.
            (2) Institute.--The term ``Institute'' means the Oregon 
        Institute of Public Service and Constitutional Studies 
        established under this title.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.

SEC. 202. OREGON INSTITUTE OF PUBLIC SERVICE AND CONSTITUTIONAL 
              STUDIES.

    From the funds appropriated under section 206, the Secretary is 
authorized to award a grant to Portland State University at Portland, 
Oregon, for the establishment of an endowment fund to support the 
Oregon Institute of Public Service and Constitutional Studies at the 
Mark O. Hatfield School of Government at Portland State University.

SEC. 203. DUTIES.

    In order to receive a grant under this title the Portland State 
University shall establish the Institute. The Institute shall have the 
following duties:
            (1) To generate resources, improve teaching, enhance 
        curriculum development, and further the knowledge and 
        understanding of students of all ages about public service, the 
        United States Government, and the Constitution of the United 
        States of America.
            (2) To increase the awareness of the importance of public 
        service, to foster among the youth of the United States greater 
        recognition of the role of public service in the development of 
        the United States, and to promote public service as a career 
        choice.
            (3) To establish a Mark O. Hatfield Fellows program for 
        students of government, public policy, public health, 
        education, or law who have demonstrated a commitment to public 
        service through volunteer activities, research projects, or 
        employment.
            (4) To create library and research facilities for the 
        collection and compilation of research materials for use in 
        carrying out programs of the Institute.
            (5) To support the professional development of elected 
        officials at all levels of government.

SEC. 204. ADMINISTRATION.

    (a) Leadership Council.--
            (1) In general.--In order to receive a grant under this 
        title Portland State University shall ensure that the Institute 
        operates under the direction of a Leadership Council (in this 
        title referred to as the ``Leadership Council'') that--
                    ``(A) consists of 15 individuals appointed by the 
                President of Portland State University; and
                    ``(B) is established in accordance with this 
                section.
            (2) Appointments.--Of the individuals appointed under 
        paragraph (1)(A)--
                    (A) Portland State University, Willamette 
                University, the Constitution Project, George Fox 
                University, Warner Pacific University, and Oregon 
                Health Sciences University shall each have a 
                representative;
                    (B) at least 1 shall represent Mark O. Hatfield, 
                his family, or a designee thereof;
                    (C) at least 1 shall have expertise in elementary 
                and secondary school social sciences or governmental 
                studies;
                    (D) at least 2 shall be representative of business 
                or government and reside outside of Oregon;
                    (E) at least 1 shall be an elected official; and
                    (F) at least 3 shall be leaders in the private 
                sector.
            (3) Ex-officio member.--The Director of the Mark O. 
        Hatfield School of Government at Portland State University 
        shall serve as an ex-officio member of the Leadership Council.
    (b) Chairperson.--
            (1) In general.--The President of Portland State University 
        shall designate 1 of the individuals first appointed to the 
        Leadership Council under subsection (a) as the Chairperson of 
        the Leadership Council. The individual so designated shall 
        serve as Chairperson for 1 year.
            (2) Requirement.--Upon the expiration of the term of the 
        Chairperson of the individual designated as Chairperson under 
        paragraph (1), or the term of the Chairperson elected under 
        this paragraph, the members of the Leadership Council shall 
        elect a Chairperson of the Leadership Council from among the 
        members of the Leadership Council.

SEC. 205. ENDOWMENT FUND.

    (a) Management.--The endowment fund shall be managed in accordance 
with the standard endowment policies established by the Oregon 
University System.
    (b) Use of Interest and Investment Income.--Interest and other 
investment income earned (on or after the date of enactment of this 
subsection) from the endowment fund may be used to carry out the duties 
of the Institute under section 203.
    (c) Distribution of Interest and Investment Income.--Funds realized 
from interest and other investment income earned (on or after the date 
of enactment of this subsection) shall be spent by Portland State 
University in collaboration with Willamette University, George Fox 
University, the Constitution Project, Warner Pacific University, Oregon 
Health Sciences University, and other appropriate educational 
institutions or community-based organizations. In expending such funds, 
the Leadership Council shall encourage programs to establish 
partnerships, to leverage private funds, and to match expenditures from 
the endowment fund.

SEC. 206. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this title 
$3,000,000 for fiscal year 1999.

             TITLE III--PAUL SIMON PUBLIC POLICY INSTITUTE

SEC. 301. DEFINITIONS.

    In this title:
            (1) Endowment fund.--The term ``endowment fund'' means a 
        fund established by the University for the purpose of 
        generating income for the support of the Institute.
            (2) Endowment fund corpus.--The term ``endowment fund 
        corpus'' means an amount equal to the grant or grants awarded 
        under this title plus an amount equal to the matching funds 
        required under section 302(d).
            (3) Endowment fund income.--The term ``endowment fund 
        income'' means an amount equal to the total value of the 
        endowment fund minus the endowment fund corpus.
            (4) Institute.--The term ``Institute'' means the Paul Simon 
        Public Policy Institute described in section 302.
            (5) Secretary.--The term ``Secretary'' means the Secretary 
        of Education.
            (6) University.--The term ``University'' means Southern 
        Illinois University at Carbondale, Illinois.

SEC. 302. PROGRAM AUTHORIZED.

    (a) Grants.--From the funds appropriated under section 306, the 
Secretary is authorized to award a grant to Southern Illinois 
University for the establishment of an endowment fund to support the 
Paul Simon Public Policy Institute. The Secretary may enter into 
agreements with the University and include in any agreement made 
pursuant to this title such provisions as are determined necessary by 
the Secretary to carry out this title.
    (b) Duties.--In order to receive a grant under this title, the 
University shall establish the Institute. The Institute, in addition to 
recognizing more than 40 years of public service to Illinois, to the 
Nation, and to the world, shall engage in research, analysis, debate, 
and policy recommendations affecting world hunger, mass media, foreign 
policy, education, and employment.
    (c) Deposit Into Endowment Fund.--The University shall deposit the 
proceeds of any grant received under this section into the endowment 
fund.
    (d) Matching Funds Requirement.--The University may receive a grant 
under this section only if the University has deposited in the 
endowment fund established under this title an amount equal to one-
third of such grant and has provided adequate assurances to the 
Secretary that the University will administer the endowment fund in 
accordance with the requirements of this title. The source of the funds 
for the University match shall be derived from State, private 
foundation, corporate, or individual gifts or bequests, but may not 
include Federal funds or funds derived from any other federally 
supported fund.
    (e) Duration; Corpus Rule.--The period of any grant awarded under 
this section shall not exceed 20 years, and during such period the 
University shall not withdraw or expend any of the endowment fund 
corpus. Upon expiration of the grant period, the University may use the 
endowment fund corpus, plus any endowment fund income for any 
educational purpose of the University.

SEC. 303. INVESTMENTS.

    (a) In General.--The University shall invest the endowment fund 
corpus and endowment fund income in those low-risk instruments and 
securities in which a regulated insurance company may invest under the 
laws of the State of Illinois, such as federally insured bank savings 
accounts or comparable interest bearing accounts, certificates of 
deposit, money market funds, or obligations of the United States.
    (b) Judgment and Care.--The University, in investing the endowment 
fund corpus and endowment fund income, shall exercise the judgment and 
care, under circumstances then prevailing, which a person of prudence, 
discretion, and intelligence would exercise in the management of the 
person's own business affairs.

SEC. 304. WITHDRAWALS AND EXPENDITURES.

    (a) In General.--The University may withdraw and expend the 
endowment fund income to defray any expenses necessary to the operation 
of the Institute, including expenses of operations and maintenance, 
administration, academic and support personnel, construction and 
renovation, community and student services programs, technical 
assistance, and research. No endowment fund income or endowment fund 
corpus may be used for any type of support of the executive officers of 
the University or for any commercial enterprise or endeavor. Except as 
provided in subsection (b), the University shall not, in the aggregate, 
withdraw or expend more than 50 percent of the total aggregate 
endowment fund income earned prior to the time of withdrawal or 
expenditure.
    (b) Special Rule.--The Secretary is authorized to permit the 
University to withdraw or expend more than 50 percent of the total 
aggregate endowment fund income whenever the University demonstrates 
such withdrawal or expenditure is necessary because of--
            (1) a financial emergency, such as a pending insolvency or 
        temporary liquidity problem;
            (2) a life-threatening situation occasioned by a natural 
        disaster or arson; or
            (3) another unusual occurrence or exigent circumstance.
    (c) Repayment.--
            (1) Income.--If the University withdraws or expends more 
        than the endowment fund income authorized by this section, the 
        University shall repay the Secretary an amount equal to one-
        third of the amount improperly expended (representing the 
        Federal share thereof).
            (2) Corpus.--Except as provided in section 302(e)--
                    (A) the University shall not withdraw or expend any 
                endowment fund corpus; and
                    (B) if the University withdraws or expends any 
                endowment fund corpus, the University shall repay the 
                Secretary an amount equal to one-third of the amount 
                withdrawn or expended (representing the Federal share 
                thereof) plus any endowment fund income earned thereon.

SEC. 305. ENFORCEMENT.

    (a) In General.--After notice and an opportunity for a hearing, the 
Secretary is authorized to terminate a grant and recover any grant 
funds awarded under this section if the University--
            (1) withdraws or expends any endowment fund corpus, or any 
        endowment fund income in excess of the amount authorized by 
        section 304, except as provided in section 302(e);
            (2) fails to invest the endowment fund corpus or endowment 
        fund income in accordance with the investment requirements 
        described in section 303; or
            (3) fails to account properly to the Secretary, or the 
        General Accounting Office if properly designated by the 
        Secretary to conduct an audit of funds made available under 
        this title, pursuant to such rules and regulations as may be 
        proscribed by the Comptroller General of the United States, 
        concerning investments and expenditures of the endowment fund 
        corpus or endowment fund income.
    (b) Termination.--If the Secretary terminates a grant under 
subsection (a), the University shall return to the Treasury of the 
United States an amount equal to the sum of the original grant or 
grants under this title, plus any endowment fund income earned thereon. 
The Secretary may direct the University to take such other appropriate 
measures to remedy any violation of this title and to protect the 
financial interest of the United States.

SEC. 306. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this title 
$3,000,000 for fiscal year 1999. Funds appropriated under this section 
shall remain available until expended.