[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2 Reported in House (RH)]





                                                 Union Calendar No. 230

106th CONGRESS

  1st Session

                                H. R. 2

                      [Report No. 106-394, Part I]

_______________________________________________________________________

                                 A BILL

 To send more dollars to the classroom and for certain other purposes.

_______________________________________________________________________

                            October 18, 1999

  Reported from the Committee on Education and the Workforce with an 
                               amendment

                            October 18, 1999

   Referral to the Committee on Ways and Means extended for a period 
                 ending not later than October 18, 1999

                            October 18, 1999

 Committee on Ways and Means discharged; committed to the Committee of 
  the Whole House on the State of the Union and ordered to be printed





                                                 Union Calendar No. 230
106th CONGRESS
  1st Session
                                 H. R. 2

                      [Report No. 106-394, Part I]

 To send more dollars to the classroom and for certain other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 11, 1999

  Mr. Goodling (for himself, Mr. Pitts, Mr. Smith of Washington, Mr. 
 Goode, Mr. Castle, Mr. McKeon, and Ms. Pryce of Ohio) introduced the 
 following bill; which was referred to the Committee on Education and 
the Workforce, and in addition to the Committee on Ways and Means, for 
a period to be subsequently determined by the Speaker, in each case for 
consideration of such provisions as fall within the jurisdiction of the 
                          committee concerned

                            October 18, 1999

  Reported from the Committee on Education and the Workforce with an 
                               amendment
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]

                            October 18, 1999

   Referral to the Committee on Ways and Means extended for a period 
                 ending not later than October 18, 1999

                            October 18, 1999

Additional sponsors: Mr. Bliley, Mr. Kuykendall, Mr. Wolf, Mr. Sununu, 
 Mr. Hulshof, Mr. Ballenger, Mr. Hansen, Mr. Jenkins, Mr. Gillmor, Mr. 
        McCollum, Mr. Hill of Montana, and Mr. Lucas of Oklahoma

                            October 18, 1999

 Committee on Ways and Means discharged; committed to the Committee of 
  the Whole House on the State of the Union and ordered to be printed
    [For text of introduced bill, see copy of bill as introduced on 
                           February 11, 1999]

_______________________________________________________________________

                                 A BILL


 
 To send more dollars to the classroom 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Student Results 
Act of 1999''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. References.

                        TITLE I--STUDENT RESULTS

                         Part A--Basic Program

Sec. 101. Low-achieving children meet high standards.
Sec. 102. Purposes and intent.
Sec. 103. Authorization of appropriations.
Sec. 104. Reservation and allocation.
Sec. 105. State plans.
Sec. 106. Local educational agency plans.
Sec. 107. Eligible school attendance areas.
Sec. 108. Schoolwide programs.
Sec. 109. Targeted assistance schools.
Sec. 110. School choice.
Sec. 111. Assessment and local educational agency and school 
                            improvement.
Sec. 112. State assistance for school support and improvement.
Sec. 113. Academic achievement awards program.
Sec. 114. Parental involvement changes.
Sec. 115. Qualifications for teachers and paraprofessionals.
Sec. 116. Professional development.
Sec. 117. Participation of children enrolled in private schools.
Sec. 118. Coordination requirements.
Sec. 119. Grants for the outlying areas and the Secretary of the 
                            Interior.
Sec. 120. Amounts for grants.
Sec. 121. Basic grants to local educational agencies.
Sec. 122. Concentration grants.
Sec. 123. Targeted grants.
Sec. 124. Special allocation procedures.
Sec. 125. Secular, neutral, and nonideological.

                Part B--Education of Migratory Children

Sec. 131. State allocations.
Sec. 132. State applications; services.
Sec. 133. Authorized activities.
Sec. 134. Coordination of migrant education activities.

                 Part C--Neglected or Delinquent Youth

Sec. 141. Neglected or delinquent youth.
Sec. 142. Findings.
Sec. 143. Allocation of funds.
Sec. 144. State plan and State agency applications.
Sec. 145. Use of funds.
Sec. 146. Purpose.
Sec. 147. Transition services.
Sec. 148. Programs operated by local educational agencies.
Sec. 149. Local educational agency applications.
Sec. 150. Uses of funds.
Sec. 151. Program requirements.
Sec. 152. Accountability.
Sec. 153. Program evaluations.

                       Part D--General Provisions

Sec. 161. General provisions.

                  Part E--Comprehensive School Reform

Sec. 171. Comprehensive school reform.

      TITLE II--MAGNET SCHOOLS ASSISTANCE AND PUBLIC SCHOOL CHOICE

Sec. 201. Magnet schools assistance.
Sec. 202. Continuation of awards.

                TITLE III--TEACHER LIABILITY PROTECTION

Sec. 301. Teacher liability protection.

     TITLE IV--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

       Subtitle A--Elementary and Secondary Education Act of 1965

Sec. 401. Amendments.

                   Part B--Native Hawaiian Education

Sec. 402. Native Hawaiian education.

                    Part C--Alaska Native Education

Sec. 403. Alaska Native education.

       Subtitle B--Amendments to the Education Amendments of 1978

Sec. 410. Amendments to the Educations Amendments of 1978.

          Subtitle C--Tribally Controlled Schools Act of 1988

Sec. 420. Tribally controlled schools.

                 TITLE V--GIFTED AND TALENTED CHILDREN

Sec. 501. Amendment to esea relating to gifted and talented children.

                  TITLE VI--RURAL EDUCATION ASSISTANCE

Sec. 601. Rural education.

    TITLE VII--MCKINNEY HOMELESS EDUCATION IMPROVEMENTS ACT OF 1999

Sec. 701. Short title.
Sec. 702. Findings.
Sec. 703. Purpose.
Sec. 704. Education for homeless children and youth.

               TITLE VIII--SCHOOLWIDE PROGRAM ADJUSTMENT

Sec. 801. Schoolwide funds.

SEC. 2. REFERENCES.

    Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or repeal 
of, a title, chapter, part, subpart, section, subsection, or other 
provision, the reference shall be considered to be made to a title, 
chapter, part, subpart, section, subsection, or other provision of the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et 
seq.).

                        TITLE I--STUDENT RESULTS

                         PART A--BASIC PROGRAM

SEC. 101. LOW-ACHIEVING CHILDREN MEET HIGH STANDARDS.

    The heading for title I is amended by striking ``DISADVANTAGED'' 
and inserting ``LOW-ACHIEVING''.

SEC. 102. PURPOSES AND INTENT.

    Section 1001 (20 U.S.C. 6301) is amended to read as follows:

``SEC. 1001. FINDINGS; STATEMENT OF PURPOSE; AND RECOGNITION OF NEED.

    ``(a) Findings.--Congress finds the following:
            ``(1) Schools that enroll high concentrations of children 
        living in poverty face the greatest challenges but effective 
        educational strategies based on scientifically based research 
        can succeed in educating children to high standards.
            ``(2) High-poverty schools are much more likely to be 
        identified as failing to meet State standards for satisfactory 
        progress. As a result, these schools are generally the most in 
        need of additional resources and technical assistance to build 
        the capacity of these schools to address the many needs of 
        their students.
            ``(3) The educational progress of children participating in 
        programs under this title is closely associated with their 
        being taught by a highly qualified staff, particularly in 
        schools with the highest concentrations of poverty, where 
        paraprofessionals, uncertified teachers, and teachers teaching 
        out of field frequently provide instructional services.
            ``(4) Congress and the public would benefit from additional 
        data in order to evaluate the efficacy of the changes made to 
        this title in the Improving America's Schools Act of 1994.
            ``(5) States, local educational agencies, and schools 
        should be given as much flexibility as possible in exchange for 
        greater accountability for improving student achievement.
            ``(6) Programs funded under this part must demonstrate 
        increased effectiveness in improving schools in order to ensure 
        all children achieve to high standards.
    ``(b) Purpose and Intent.--The purpose and intent of this title are 
to ensure that all children have a fair and equal opportunity to obtain 
a high quality education.
    ``(c) Recognition of Need.--The Congress recognizes the following:
            ``(1) 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.
            ``(2) Despite more than 3 decades of Federal assistance, a 
        sizable achievement gap remains between minority and 
        nonminority students, and between disadvantaged students and 
        their more advantaged peers.
            ``(3) Too many students must attend local schools that fail 
        to provide them with a quality education, and are given no 
        alternatives to enable them to receive a quality education.
            ``(4) States, local educational agencies and schools should 
        be held accountable for improving the academic achievement of 
        all students, and for identifying and turning around low-
        performing schools.
            ``(5) Federal education assistance is intended not only to 
        increase pupil achievement overall, but also more specifically 
        and importantly, to help ensure that all pupils, especially the 
        disadvantaged, meet challenging standards for curriculum 
        content and pupil performance. It can only be determined if 
        schools, local educational agencies, and States, are reaching 
        this goal if pupil achievement results are reported 
        specifically by disadvantaged and minority status.''.

SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

    (a) Local Educational Agency Grants.--Subsection (a) of section 
1002 (20 U.S.C. 6302(a)) is amended by striking ``$7,400,000,000 for 
fiscal year 1995'' and inserting ``$8,350,000,000 for fiscal year 
2000''.
    (b) Education of Migratory Children.--Subsection (c) of section 
1002 (20 U.S.C. 6302(c)) is amended by striking ``$310,000,000 for 
fiscal year 1995'' and inserting ``$400,000,000 for fiscal year 2000''.
    (c) Prevention and Intervention Programs for Youth Who Are 
Neglected, Delinquent, or at Risk of Dropping Out.--Subsection (d) of 
section 1002 (20 U.S.C. 6302(d)) is amended by striking ``$40,000,000 
for fiscal year 1995'' and inserting ``$50,000,000 for fiscal year 
2000''.
    (d) Capital Expenses.--Subsection (e) of section 1002 (20 U.S.C. 
6302(e)) is amended to read as follows:
    ``(e) Capital Expenses.--For the purpose of carrying out section 
1120(e), there are authorized to be appropriated $15,000,000 for fiscal 
year 2000, $15,000,000 for fiscal year 2001, and $5,000,000 for fiscal 
year 2002.''.
    (e) Additional Assistance.--Subsection (f) of section 1002 is 
amended to read as follows:
    ``(f) School Improvement.--Each State may reserve for the purpose 
of carrying out its duties under section 1116 and 1117, the greater of 
one half of 1 percent of the amount allocated under this part, or 
$200,000.''.
    (f) State Administration.--Section 1002 is amended by adding at the 
end the following:
    ``(h) State Administration.--
            ``(1) State reservation.--Each State may reserve, from the 
        grants it receives under parts A, C, and D, of this title, an 
        amount equal to the greater of 1 percent of the amount it 
        received under parts A, C, and D, for fiscal year 1999, or 
        $400,000 ($50,000 for each outlying area), to carry out 
        administrative duties assigned under parts A, C, and D.
            ``(2) Authorization of appropriations.--There are 
        authorized to be appropriated $10,000,000 for fiscal year 2000 
        and such sums as may be necessary for each of the 4 succeeding 
        fiscal years for additional State administration grants. Any 
        such additional grants shall be allocated among the States in 
        proportion to the grants received by each State for that fiscal 
        year under parts A, C, and D of this title.
            ``(3) Special rule.--The amount allocated to each State 
        under this subsection may not exceed the amount of State funds 
        expended by the State educational agency to administer 
        elementary and secondary education programs in such State.''.

SEC. 104. RESERVATION AND ALLOCATION.

    Section 1003 (20 U.S.C. 6303) is repealed.

SEC. 105. STATE PLANS.

    Section 1111 (20 U.S.C. 6311) is amended to read as follows:

``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 (including 
        administrators of programs described in other parts of this 
        title), other staff, and parents, that satisfies the 
        requirements of this section and that is coordinated with other 
        programs under this Act, the Individuals with Disabilities 
        Education Act, the Carl D. Perkins Vocational and Technical 
        Education Act of 1998, and the Head Start Act.
            ``(2) Consolidated plan.--A State plan submitted under 
        paragraph (1) may be submitted as part of a consolidated plan 
        under section 14302.
    ``(b) Standards, Assessments, and Accountability.--
            ``(1) Challenging standards.--(A) Each State plan shall 
        demonstrate that the State has 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) The standards required by subparagraph (A) shall be 
        the same standards that the State applies to all schools and 
        children in the State.
            ``(C) The State shall have such standards for elementary 
        and secondary school children served under this part in 
        subjects determined by the State, but including at least 
        mathematics and reading or language arts, which 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, basic, 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) Adequate yearly progress.--
                    ``(A) In general.--Each State plan shall 
                demonstrate, based on assessments described under 
                paragraph (4), what constitutes adequate yearly 
                progress of--
                            ``(i) any school served under this part 
                        toward enabling all children to meet the 
                        State's challenging student performance 
                        standards;
                            ``(ii) any local educational agency that 
                        received funds under this part toward enabling 
                        all children in schools receiving assistance 
                        under this part to meet the State's challenging 
                        student performance standards; and
                            ``(iii) the State in enabling all children 
                        in schools receiving assistance under this part 
                        to meet the State's challenging student 
                        performance standards.
                    ``(B) Definition.--Adequate yearly progress shall 
                be defined in a manner that--
                            ``(i) applies the same high standards of 
                        academic performance to all students in the 
                        State;
                            ``(ii) takes into account the progress of 
                        all students in the State and in each local 
                        educational agency and school served under 
                        section 1114 or 1115;
                            ``(iii) uses the State challenging content 
                        and challenging student performance standards 
                        and assessments described in paragraphs (1) and 
                        (4);
                            ``(iv) compares separately, within each 
                        State, local educational agency, and school, 
                        the performance and progress of students by 
                        gender, each major ethnic and racial 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 (except 
                        that such disaggregation shall not be required 
                        in a case in which the number of students in a 
                        category is insufficient to yield statistically 
                        reliable information or the results would 
                        reveal individually identifiable information 
                        about an individual student);
                            ``(v) compares the proportions of students 
                        at the `basic', `proficient', and `advanced' 
                        levels of performance with the proportions of 
                        students at each of the 3 levels in the same 
                        grade in the previous school year;
                            ``(vi) at the State's discretion, may also 
                        include other academic measures such as 
                        promotion, completion of college preparatory 
                        courses, and high school completion, except 
                        that inclusion of such other measures may not 
                        change which schools or local educational 
                        agencies would otherwise be subject to 
                        improvement or corrective action under section 
                        1116 if the discretionary indicators were not 
                        included;
                            ``(vii) includes annual numerical goals for 
                        improving the performance of all groups 
                        specified in clause (iv) and narrowing gaps in 
                        performance between these groups; and
                            ``(viii) includes a timeline for ensuring 
                        that each group of students described in clause 
                        (iv) meets or exceeds the State's proficient 
                        level of performance on each State assessment 
                        used for the purposes of section 1111 and 
                        section 1116 within 10 years from the date of 
                        enactment of the Student Results Act of 1999.
                    ``(C) Annual improvement for states.--For a State 
                to make adequate yearly progress under subparagraph 
                (A)(iii), not less than 90 percent of the local 
                educational agencies within its jurisdiction shall meet 
                the State's criteria for adequate yearly progress.
                    ``(D) Annual improvement for local educational 
                agencies.--For a local educational agency to make 
                adequate yearly progress under subparagraph (A)(ii), 
                not less than 90 percent of the schools within its 
                jurisdiction must meet the State's criteria for 
                adequate yearly progress.
                    ``(E) Annual improvement for schools.--For a school 
                to make adequate yearly progress under subparagraph 
                (A)(i), not less than 90 percent of each group of 
                students described in subparagraph (A)(iv) who are 
                enrolled in such school are required to take the 
                assessments consistent with section 612(a)(17)(A) of 
                the Individuals with Disabilities Education Act and 
                paragraph (4)(F)(iv) on which adequate yearly progress 
                is based.
                    ``(F) Public notice and comment.--Each State shall 
                ensure that in developing its plan for adequate yearly 
                progress, it diligently seeks public comment from a 
                range of institutions and individuals in the State with 
                an interest in improved student achievement and that 
                the State makes and will continue to make a substantial 
                effort to ensure that information under this part is 
                widely known and understood by the public, parents, 
                teachers, and school administrators throughout the 
                State. Such efforts shall include, at a minimum, 
                publication of such information and explanatory text, 
                broadly to the public through such means as the 
                Internet, the media, and public agencies.
                    ``(G) Review.--The Secretary shall review the 
                information from States on the adequate yearly progress 
                of schools and local educational agencies required 
                under subparagraphs (A) and (B) for the purpose of 
                determining State and local compliance with section 
                1116.
            ``(3) State authority.--If a State educational agency 
        provides evidence, which is satisfactory to the Secretary, that 
        neither the State educational agency nor any other State 
        government official, agency, or entity has sufficient 
        authority, under State law, to adopt curriculum content and 
        student performance standards, and assessments aligned with 
        such standards, which will be applicable to all students 
        enrolled in the State's public schools, then the State 
        educational agency may meet the requirements of this subsection 
        by--
                    ``(A) adopting standards and assessments that meet 
                the requirements of this subsection, on a statewide 
                basis, limiting their applicability to students served 
                under this part; or
                    ``(B) adopting and implementing policies that 
                ensure that each local educational agency in the State 
                which receives grants under this part will adopt 
                curriculum content and student performance standards, 
                and assessments aligned with such standards, which meet 
                all of the criteria in this subsection and any 
                regulations regarding such standards and assessments 
                which the Secretary may publish, and which are 
                applicable to all students served by each such local 
                educational agency.
            ``(4) Assessments.--Each State plan shall demonstrate that 
        the State has implemented a set of high-quality, yearly student 
        assessments that include, at a minimum, assessments in 
        mathematics and reading or language arts, that will be used, 
        starting not later than the 2000-2001 school year, as the 
        primary means of determining the yearly performance of each 
        local educational agency and school served under this title in 
        enabling all children served under this part to meet the 
        State's challenging 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 not less than one or more times 
                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 disabilities 
                        defined under 602(3) of the Individuals with 
                        Disabilities Education Act necessary to measure 
                        the achievement of such students relative to 
                        State content and State student performance 
                        standards;
                            ``(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 in content areas;
                            ``(iv) notwithstanding clause (iii), the 
                        assessment (using tests written in English) of 
                        reading or language arts of any student who has 
                        attended school in the United States (not 
                        including Puerto Rico) for 3 or more 
                        consecutive school years, except if the local 
                        educational agency determines, on a case-by-
                        case individual basis, that assessments in 
                        another language and form would likely yield 
                        more accurate and reliable information on what 
                        such students know and can do, the local 
                        educational agency may assess such students in 
                        the appropriate language other than English for 
                        1 additional year; and
                    ``(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, except that 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 reports, which 
                include assessment 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.
            ``(5) Special rule.--
                    ``(A) In general.--Assessment measures that do not 
                meet the requirements of paragraph (4)(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.
                    ``(B) Student proficiency in grades k-2.--States 
                may measure the proficiency of students in the academic 
                subjects in which a State has adopted challenging 
                content and student performance standards one or more 
                times during grades K-2.
            ``(6) 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, but 
        shall not mandate a specific assessment or mode of instruction.
            ``(7) Assessment development.--A State shall develop, and 
        implement State assessments that are aligned to challenging 
        State content standards that include, at a minimum, mathematics 
        and reading or language arts by the 2000-2001 school year.
            ``(8) Requirement.--Each State plan shall describe--
                    ``(A) how the State educational agency will assist 
                each local educational agency and school affected by 
                the State plan to develop the capacity to comply with 
                each of the requirements of sections 1112(c)(1)(D), 
                1114(c), and 1115(c) that is applicable to such agency 
                or school; and
                    ``(B) such other factors the State considers 
                appropriate 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) 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
            ``(2)(A) where educational service agencies exist, the 
        State educational agency will consider providing professional 
        development and technical assistance through such agencies; and
            ``(B) 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;
            ``(3) the State educational agency will notify local 
        educational agencies and the public of the content and student 
        performance 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;
            ``(4) 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;
            ``(5) the State educational agency will inform the 
        Secretary and the public of how Federal laws, if at all, hinder 
        the ability of States to hold local educational agencies and 
        schools accountable for student academic performance;
            ``(6) the State educational agency will encourage schools 
        to consolidate funds from other Federal, State, and local 
        sources for schoolwide reform in schoolwide programs under 
        section 1114;
            ``(7) the State educational agency will modify or eliminate 
        State fiscal and accounting barriers so that schools can easily 
        consolidate funds from other Federal, State, and local sources 
        for schoolwide programs under section 1114;
            ``(8) the State educational agency has involved the 
        committee of practitioners established under section 1603(b) in 
        developing the plan and monitoring its implementation; and
            ``(9) the State educational agency will inform local 
        educational agencies of the local educational agency's 
        authority to obtain waivers under title XIV and, if the State 
        is an Ed-Flex Partnership State, waivers under the Education 
        Flexibility Partnership Act of 1999 (30 U.S.C. 589a et seq.).
    ``(d) Peer Review and Secretarial Approval.--
            ``(1) Secretarial duties.--The Secretary shall--
                    ``(A) establish a peer review process to assist in 
                the review of State plans;
                    ``(B) approve a State plan after its submission 
                unless the Secretary determines that the plan does not 
                meet the requirements of this section;
                    ``(C) 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;
                    ``(D) 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;
                    ``(E) 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; and
            ``(2) State revisions.--States shall revise their plans if 
        necessary to satisfy the requirements of this section. Revised 
        plans shall be submitted to the Secretary for approval not 
        later than 1 year after the date of the enactment of the 
        Student Results Act of 1999.
    ``(e) Duration of the Plan.--
            ``(1) In general.--Each State plan shall--
                    ``(A) be submitted for the first year for which 
                this part is in effect after the date of the enactment 
                of the Student Results Act of 1999;
                    ``(B) remain in effect for the duration of the 
                State's participation under this part; and
                    ``(C) 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 
        yearly 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, curriculum, or program of instruction, as a 
condition of eligibility to receive funds under this part.
    ``(g) Penalties.--
            ``(1) In general.--If a State fails to meet the statutory 
        deadlines for demonstrating that it has in place challenging 
        content standards and student performance standards and 
        assessments, and a system for measuring and monitoring adequate 
        yearly progress, the State shall be ineligible to receive any 
        administrative funds under section 1002(h) that exceed the 
        amount received by the State for such purpose in the previous 
        year.
            ``(2) Additional funds.--Based on the extent to which such 
        content standards, performance standards, assessments, and 
        monitoring of adequate yearly progress, are not in place, 
        additional administrative funds shall be withheld in such 
        amount as the Secretary determines appropriate, except that for 
        each additional year that the State fails to comply with such 
        requirements, the Secretary shall withhold not less than \1/5\ 
        of the amount the State receives for administrative expenses 
        under section 1002(h).
            ``(3) Waiver.--Notwithstanding title XIV of this Act and 
        the Education Flexibility Partnership Act or any other 
        provision of law, a waiver shall not be granted except that a 
        State may request a 1-time, 1-year waiver to meet the 
        requirements of this section.''.
    ``(h) School Reports.--
            ``(1) In general.--
                    ``(A) Annual report.--Except as provided in 
                subparagraph (C), not later than the beginning of the 
                2001-2002 school year, a State that receives assistance 
                under this Act shall prepare and disseminate an annual 
                report on all schools that receive funds under this 
                part. States and local educational agencies may issue 
                report cards under this section only for local 
                educational agencies and schools receiving funds under 
                this part, except that if a State or local educational 
                agency issues a report card for all students, the State 
                or local educational agency may include the information 
                under this section as part of such report card.
                    ``(B) Implementation.--The State shall ensure the 
                dissemination of this information at all levels. Such 
                information shall be--
                            ``(i) concise; and
                            ``(ii) presented in a format and manner 
                        that parents can understand, and which, to the 
                        extent practicable, shall be in a language the 
                        parents can understand.
                    ``(C) Public dissemination.--In the event the State 
                does not include such information through a report 
                card, the State shall, not later than the beginning of 
                the 2001-2002 school year, publicly report the 
                information described in paragraph (2) through other 
                public means, such as posting on the Internet, 
                distribution to the media, and distribution through 
                public agencies, for all schools that receive funds 
                under this part.
            ``(2) Content of annual state reports.--
                    ``(A) Required information.--The State shall, at a 
                minimum, include in the annual State reports 
                information for the State on each local educational 
                agency and school receiving funds under this part 
                regarding--
                            ``(i) student performance on statewide 
                        assessments for the current and preceding years 
                        in at least reading or language arts and 
                        mathematics, including--
                                    ``(I) a comparison of the 
                                proportions of students who performed 
                                at `basic', `proficient', and 
                                `advanced' levels in each subject area, 
                                for each grade level at which 
                                assessments are required under this 
                                part, with proportions in each of the 
                                same 3 categories at the same grade 
                                levels in the previous school year; and
                                    ``(II) a statement of the 
                                percentage of students not tested and a 
                                listing of categories of the reasons 
                                why they were not tested;
                            ``(ii) retention in grade, completion of 
                        advanced placement courses, and 4-year 
                        graduation rates;
                            ``(iii) the professional qualifications of 
                        teachers in the aggregate, including the 
                        percentage of teachers teaching with emergency 
                        or provisional credentials, and the percentage 
                        of class sections not taught by fully qualified 
                        teachers; and
                            ``(iv) the professional qualifications of 
                        paraprofessionals, the number of 
                        paraprofessionals in the aggregate and the 
                        ratio of paraprofessionals to teachers in the 
                        classroom.
                    ``(B) Student data.--Student data in each report 
                shall contain disaggregated results for the following 
                categories:
                            ``(i) gender;
                            ``(ii) racial and ethnic group;
                            ``(iii) migrant status;
                            ``(iv) students with disabilities, as 
                        compared to students who are not disabled;
                            ``(v) economically disadvantaged students, 
                        as compared to students who are not 
                        economically disadvantaged; and
                            ``(vi) students with limited English 
                        proficiency, as compared to students who are 
                        proficient in English.
                    ``(C) Optional information.--A State may include in 
                its report any other information it determines 
                appropriate to reflect school quality and school 
                achievement, including information on average class 
                size by grade level, and information on school safety, 
                such as the incidence of school violence and drug and 
                alcohol abuse, and the incidence of student suspensions 
                and expulsions.
            ``(3) Content of local educational agencies reports.--
                    ``(A) Minimum requirements.--The State shall ensure 
                that each local educational agency collects appropriate 
                data and includes in its annual report for each school 
                that receives funds under this part, at a minimum--
                            ``(i) the information described in 
                        paragraphs (2)(A) and (2)(B) for each local 
                        educational agency and school--
                                    ``(I) in the case of a local 
                                educational agency--
                                            ``(aa) the number and 
                                        percentage of schools 
                                        identified for school 
                                        improvement, including schools 
                                        identified under section 
                                        1116(c) of this Act;
                                            ``(bb) information that 
                                        shows how students in its 
                                        schools perform on the 
                                        statewide assessment compared 
                                        to students in the State as a 
                                        whole;
                                    ``(II) in the case of a school--
                                            ``(aa) whether it has been 
                                        identified for school 
                                        improvement; and
                                            ``(bb) information that 
                                        shows how its students 
                                        performed on the statewide 
                                        assessment compared to students 
                                        in the local educational agency 
                                        and the State as a whole.
                    ``(B) Other information.--A local educational 
                agency may include in its annual reports any other 
                appropriate information whether or not such information 
                is included in the annual State report.
                    ``(C) Public dissemination.--In the event the local 
                educational agency does not include such information 
                through a report card, the local educational agency 
                shall, not later than the beginning of the 2001-2002 
                school year, publicly report the information described 
                in paragraph (3) through other public means, such as 
                posting on the Internet, distribution to the media, and 
                distribution through public agencies, only for schools 
                that receive funds under this part, except that if a 
                local educational agency issues a report card for all 
                students, the local educational agency may include the 
                information under this section as part of such report.
            ``(4) Dissemination and accessibility of reports.--
                    ``(A) State reports.--State annual reports under 
                paragraph (2) shall be, disseminated to all schools and 
                local educational agencies in the State, and made 
                broadly available to the public through means such as 
                posting on the Internet, distribution to the media, and 
                distribution through public agencies.
                    ``(B) Local educational agency reports.--Local 
                educational agency reports under paragraph (3) shall be 
                disseminated to all schools receiving funds under this 
                part, in the school district and to all parents of 
                students attending these schools and made broadly 
                available to the public through means such as posting 
                on the Internet, distribution to the media, and 
                distribution through public agencies.
            ``(5) Parents Right-to-Know.--
                    ``(A) Qualifications.--A local educational agency 
                that receives funds under this part shall provide, upon 
                request, in an understandable and uniform format, to 
                any parent of a student attending any school receiving 
                funds under this part, information regarding the 
                professional qualifications of the student's classroom 
                teachers, including, at a minimum, the following:
                            ``(i) Whether the teacher has met State 
                        qualification and licensing criteria for the 
                        grade levels and subject areas in which the 
                        teacher provides instruction.
                            ``(ii) Whether the teacher is teaching 
                        under emergency or other provisional status 
                        through which State qualification or licensing 
                        criteria have been waived.
                            ``(iii) The baccalaureate degree major of 
                        the teacher and any other graduate 
                        certification or degree held by the teacher, 
                        and the field of discipline of the 
                        certification or degree.
                            ``(iv) Whether the child is provided 
                        services by paraprofessionals and the 
                        qualifications of such paraprofessional.
                    ``(B) Additional information.--In addition to the 
                information which parents may request under 
                subparagraph (A), and the information provided in 
                subsection (c), a school which receives funds under 
                this part shall provide to each individual parent or 
                guardian--
                            ``(i) information on the level of 
                        performance of the individual student for whom 
                        they are the parent or guardian in each of the 
                        State assessments as required under this part; 
                        and
                            ``(ii) timely notice that the student for 
                        whom they are the parent or guardian has been 
                        assigned or has been taught for 2 or more 
                        consecutive weeks by a substitute teacher or by 
                        a teacher not fully qualified.
            ``(6) Plan content.--A State shall include in its plan 
        under subsection (b) an assurance that it has in effect a 
        policy that meets the requirements of this section.
    ``(i) Privacy.--Information collected under this section shall be 
collected and disseminated in a manner that protects the privacy of 
individuals.''.

SEC. 106. LOCAL EDUCATIONAL AGENCY PLANS.

    (a) Subgrants.--Paragraph (1) of section 1112(a) (20 U.S.C. 
6312(a)(1)) is amended by striking ``the Goals 2000: Educate America 
Act'' and all that follows and inserting the following: ``the 
Individuals with Disabilities Education Act, the Carl D. Perkins 
Vocational and Technical Education Act of 1998, the Head Start Act, and 
other Acts, as appropriate.''.
    (b) Plan Provisions.--Subsection (b) of section 1112 (20 U.S.C. 
6312(b)) is amended--
            (1) by striking ``Each'' in the matter preceding paragraph 
        (1) and inserting ``In order to help low-achieving children 
        achieve to high standards, each'';
            (2) in paragraph (1)--
                    (A) by striking ``part'' each place it appears and 
                inserting ``title'';
                    (B) in subparagraph (B), by inserting ``low-
                achieving'' before ``children'';
                    (C) by striking ``and'' at the end of subparagraph 
                (B);
                    (D) by inserting ``and'' at the end of subparagraph 
                (C); and
                    (E) by adding at the end the following new 
                subparagraph:
                    ``(D) determine the literacy levels of first 
                graders and their need for interventions, and a 
                description of how the local educational agency will 
                ensure that any such assessments--
                            ``(i) are developmentally appropriate; and
                            ``(ii) use multiple measures to provide 
                        information about the variety of skills that 
                        scientifically based research has identified as 
                        leading to early acquisition of reading 
                        skills.'';
            (3) in paragraph (4)--
                    (A) in subparagraph (A), by striking ``, and 
                school-to-work transition programs''; and
                    (B) in subparagraph (B), by striking ``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'' and inserting ``under part C, 
                neglected or delinquent youth, Indian children served 
                under title IX,'';
            (4) in paragraph (7), by striking ``eligible homeless 
        children'' and inserting ``homeless children'';
            (5) by striking the period at the end of paragraph (9) and 
        inserting ``; and''; and
            (6) by adding at the end the following new paragraphs:
            ``(10) a description of the actions the local educational 
        agency will take to assist its low-performing schools, 
        including schools identified under section 1116 as in need of 
        improvement; and
            ``(11) a description of how the agency will promote the use 
        of extended learning time, such as an extended school year and 
        before and after school and summer programs.''.
    (c) Assurances.--Subsection (c) of section 1112 (20 U.S.C. 6312(c)) 
is amended to read as follows:
    ``(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 and the ability of such 
                schools to consolidate funds from Federal, State, and 
                local sources;
                    ``(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 student performance standards;
                    ``(D) fulfill such agency's school improvement 
                responsibilities under section 1116, including taking 
                corrective actions under section 1116(b)(9);
                    ``(E) 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;
                    ``(F) take into account the experience of model 
                programs for the educationally disadvantaged, and the 
                findings of relevant scientifically based research 
                indicating that services may be most effective if 
                focused on students in the earliest grades at schools 
                that receive funds under this part;
                    ``(G) in the case of a local educational agency 
                that 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;
                    ``(H) comply with the requirements of section 1119 
                regarding the qualifications of teachers and 
                paraprofessionals;
                    ``(I) inform eligible schools of the local 
                educational agency's authority to obtain waivers on the 
                school's behalf under title XIV of this Act, and if the 
                State is an Ed-Flex Partnership State, waivers under 
                the Education Flexibility Partnership Act of 1999; and
                    ``(J) 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.
            ``(2) Special rule.--In carrying out subparagraph (G) of 
        paragraph (1) the Secretary--
                    ``(A) 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) upon publication, shall disseminate to local 
                educational agencies the Head Start performance 
                standards as in effect under section 641A(a) of the 
                Head Start Act, and such agencies affected 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.--Section 1112 is amended by 
striking subsection (d) and inserting the following:
    ``(d) Plan Development and Duration.--
            ``(1) Consultation.--Each local educational agency plan 
        shall be developed in consultation with teachers, 
        administrators (including administrators of programs described 
        in other parts of this title), and other appropriate school 
        personnel, and with parents of children in schools served under 
        this part.
            ``(2) Duration.--Each such plan shall be submitted for the 
        first year for which this part is in effect following the date 
        of the enactment of the Student Results Act of 1999 and shall 
        remain in effect for the duration of the agency's participation 
        under this part.
            ``(3) Review.--Each such local educational agency shall 
        periodically review, and as necessary, revise its plan.''.
    (e) State approval.--Section 1112 (20 U.S.C. 6312(e)) is amended by 
striking subsection (e) and inserting the following:
    ``(e) State Approval.--
            ``(1) In general.--Each local educational agency plan shall 
        be filed according to a schedule established 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--
                    ``(A) will enable schools served under this part to 
                substantially help children served under this part meet 
                the standards expected of all children described in 
                section 1111(b)(1); and
                    ``(B) will meet the requirements of this 
                section.''.
    (f) Parental Notification and Consent for English Language 
Instruction.--Section 1112 (20 U.S.C. 6312) is amended by adding at the 
end the following:
    ``(g) Parental Notification and Consent for English Language 
Instruction.--
            ``(1) Notification.--If a local educational agency uses 
        funds under this part to provide English language instruction 
        to limited English proficient children, the agency shall inform 
        a parent or the parents of a child participating in an English 
        language instruction program for limited English proficient 
        children assisted under this part of--
                    ``(A) the reasons for the identification of the 
                child as being in need of English language instruction;
                    ``(B) the child's level of English proficiency, how 
                such level was assessed, and the status of the child's 
                academic achievement; and
                    ``(C) how the English language instruction program 
                will specifically help the child acquire English and 
                meet age-appropriate standards for grade promotion and 
                graduation;
                    ``(D) what the specific exit requirements are for 
                the program;
                    ``(E) the expected rate of graduation from the 
                program into mainstream classes; and
                    ``(F) the expected rate of graduation from high 
                school for the program if funds under this part are 
                used for children in secondary schools.
            ``(2) Consent.--
                    ``(A) Agency requirements.--
                            ``(i) Each local educational agency that 
                        receives funds under this part shall obtain 
                        informed parental consent prior to the 
                        placement of a child in an English language 
                        instruction program for limited English 
                        proficient children funded under this part 
                        which does not include classes which 
                        exclusively or almost exclusively use the 
                        English language in instruction or if 
                        instruction is not tailored for limited English 
                        proficient children.
                            ``(ii) If written consent is not obtained, 
                        the local educational agency shall maintain a 
                        written record that includes the date and the 
                        manner in which such informed consent was 
                        obtained.
                            ``(iii)(I) If a response cannot be obtained 
                        after written notice and a reasonable and 
                        substantial effort has been made to obtain such 
                        consent, the local educational agency shall 
                        document, in writing, that it has given such 
                        written notice and its specific efforts made to 
                        obtain such consent.
                            ``(II) The proof of documentation shall be 
                        mailed or delivered in writing to the parents 
                        or guardian of the child at least 10 business 
                        days prior to providing any services under this 
                        part, and include a final notice requesting 
                        parental consent for such services.
                    ``(B) Parental rights.--A parent or the parents of 
                a child participating in an English language 
                instruction program for limited English proficient 
                children assisted under this Act shall--
                            ``(i) select among methods of instruction, 
                        if more than one method is offered in the 
                        program; and
                            ``(ii) have the right to have their child 
                        immediately removed from the program upon their 
                        request.
            ``(3) Receipt of information.--A parent or the parents of a 
        child identified for participation in an English language 
        instruction program for limited English proficient children 
        assisted under this part shall receive, in a manner and form 
        understandable to the parent or parents, the information 
        required by this subsection. At a minimum, the parent or 
        parents shall receive--
                    ``(A) timely information about English language 
                instruction programs for limited English proficient 
                children assisted under this Act; and
                    ``(B) if a parent of a participating child so 
                desires, notice of opportunities for regular meetings 
                for the purpose of formulating and responding to 
                recommendations from such parents.
            ``(4) Basis for admission or exclusion.--Students shall not 
        be admitted to or excluded from any federally assisted 
        education program on the basis of a surname or language-
        minority status.''.

SEC. 107. ELIGIBLE SCHOOL ATTENDANCE AREAS.

    Section 1113 (20 U.S.C. 6313) is amended to read as follows:

``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) Local educational agency discretion.--
                    ``(A) In general.--Notwithstanding paragraph (2), a 
                local educational agency may--
                            ``(i) designate as eligible any school 
                        attendance area or school in which at least 35 
                        percent of the children are from low-income 
                        families;
                            ``(ii) 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;
                            ``(iii) designate and serve a school 
                        attendance area or school that is not eligible 
                        under subsection (b), but that was eligible and 
                        that was served in the preceding fiscal year, 
                        but only for one additional fiscal year; and
                            ``(iv) 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.
                    ``(B) Special rule.--Notwithstanding subparagraph 
                (A)(iv), 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 
                subparagraph (A).
    ``(b) Ranking Order.--If funds allocated in accordance with 
subsection (f) are insufficient to serve all eligible school attendance 
areas, a local educational agency--
            ``(1) shall annually rank from highest to lowest according 
        to the percentage of children from low-income families in each 
        agency's eligible school attendance areas in the following 
        order--
                    ``(A) eligible school attendance areas in which the 
                concentration of children from low-income families 
                exceeds 75 percent; and
                    ``(B) all remaining eligible school attendance 
                areas in which the concentration of children from low-
                income families is 75 percent or lower either by grade 
                span or for the entire local educational agency;
            ``(2) shall, within each category listed in paragraph (1), 
        serve schools in rank order from highest to lowest according to 
        the ranking assigned under paragraph (1);
            ``(3) notwithstanding paragraph (2), may give priority, 
        within each such category and in rank order from highest to 
        lowest subject to paragraph (4), to eligible school attendance 
        areas that serve children in elementary schools; and
            ``(4) not serve a school described in paragraph (1)(B) 
        before serving a school described in paragraph (1)(A).
    ``(c) Low-Income Measures.--In determining the number of children 
ages 5 through 17 who are from low-income families, the local 
educational agency shall apply the measures described in paragraphs (1) 
and (2) of this subsection:
            ``(1) Allocation to public school attendance areas.--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 
        State program funded under part A of title IV of the Social 
        Security Act, 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 
                (f).
            ``(2) Allocation for equitable service to private school 
        students.--
                    ``(A) Calculation.--A local educational agency 
                shall have the final authority, consistent with section 
                1120 to calculate the number of private school 
                children, ages 5 through 17, who are low-income by--
                            ``(i) using the same measure of low-income 
                        used to count public school children;
                            ``(ii) using the results of a survey that, 
                        to the extent possible, protects the identity 
                        of families of private school students and 
                        allowing such survey results to be extrapolated 
                        if complete actual data are not available; or
                            ``(iii) applying the low-income percentage 
                        of each participating public school attendance 
                        area, determined pursuant to this section, to 
                        the number of private school children who 
                        reside in that attendance area.
                    ``(B) Complaint process.--Any dispute regarding 
                low-income data on private school students shall be 
                subject to the complaint process authorized in section 
                14505.
    ``(d) Exception.--This section (other than subsections (a)(3) and 
(f)) shall not apply to a local educational agency with a total 
enrollment of less than 1,500 children.
    ``(e) 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 (f), and permit such agency to 
treat as eligible, and serve, any school that children attend under a 
desegregation plan ordered by a State or court or approved by the 
Secretary, or such a plan that the agency continues to implement after 
it has expired, if--
            ``(1) the number of economically disadvantaged children 
        enrolled in the school is not less than 25 percent of the 
        school's total enrollment; and
            ``(2) 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.
    ``(f) 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 (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) 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.
            ``(4) School improvement reservation.--A local educational 
        agency shall reserve such funds as are necessary under this 
        part to meet such agency's school improvement responsibilities 
        under section 1116, including taking corrective actions under 
        section 1116(b)(9).
            ``(5) Financial incentives and rewards reservation.--A 
        local educational agency may reserve such funds as are 
        necessary under this part to provide financial incentives and 
        rewards to teachers who serve in eligible schools under 
        subsection (b)(1)(A) and identified for improvement under 
        section 1116(b)(1) for the purpose of attracting and retaining 
        qualified and effective teachers.''.

SEC. 108. SCHOOLWIDE PROGRAMS.

    Section 1114 (20 U.S.C. 6314) is amended to read as follows:

``SEC. 1114. SCHOOLWIDE PROGRAMS.

    ``(a) Purpose.--The purpose of a schoolwide program under this 
section is--
            ``(1) to enable a local educational agency to consolidate 
        funds under this part with other Federal, State, and local 
        funds, to upgrade the entire educational program in a high 
        poverty school; and
            ``(2) to help ensure that all children in such a school 
        meet challenging State standards for student performance, 
        particularly those children who are most at-risk of not meeting 
        those standards.
    ``(b) Use of Funds for Schoolwide Programs.--
            ``(1) In general.--A local educational agency may 
        consolidate funds under this part, together with other Federal, 
        State, and local funds, in order to upgrade the entire 
        educational program of a school that serves an eligible school 
        attendance area in which not less than 50 percent of the 
        children are from low-income families, or not less than 50 
        percent of the children enrolled in the school are from such 
        families.
            ``(2) State assurances.--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 educational agency has established the statewide 
        system of support and improvement required by subsections 
        (c)(1) and (e) of section 1117.
            ``(3) Identification of students not required.--(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) Exemption from statutory and regulatory 
        requirements.--(A) Except as provided in subsection (c), 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 (other than 
        formula or discretionary grant programs under the Individuals 
        with Disabilities Education Act, except as provided in section 
        613(a)(2)(D) of such Act), or any discretionary grant program 
        administered by the Secretary, 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, student and parental 
        participation and involvement, services to private school 
        children, maintenance of effort, 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.
            ``(C)(i) A school that consolidates funds from different 
        Federal programs under this section shall not be required to 
        maintain separate fiscal accounting records, by program, that 
        identify the specific activities supported by those particular 
        funds as long as it maintains records that demonstrate that the 
        schoolwide program, considered as a whole addresses the intent 
        and purposes of each of the Federal programs that were 
        consolidated to support the schoolwide program.
            ``(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 (c)(1)(E) in accordance with section 
        1119A for such fiscal year, except that a school may enter into 
        a consortium with another school to carry out such activities.
    ``(c) 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 (including taking into account the needs 
                of migratory children as defined in section 1309(2)) 
                that is based on information which includes 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) use effective methods and 
                        instructional strategies that are based upon 
                        scientifically based research that--
                                    ``(I) strengthen the core academic 
                                program in the school;
                                    ``(II) 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
                                    ``(III) include strategies for 
                                meeting the educational needs of 
                                historically underserved populations;
                            ``(iii)(I) address the needs of all 
                        children in the school, but particularly the 
                        needs of low-achieving children and those at 
                        risk of not meeting the State student 
                        performance standards who are members of the 
                        target population of any program that is 
                        included in the schoolwide program;
                            ``(II) address how the school will 
                        determine if such needs have been met; and
                            ``(iv) are consistent with, and are 
                        designed to implement, the State and local 
                        improvement plans, if any.
                    ``(D) Instruction by fully qualified (as defined in 
                section 1610) teachers.
                    ``(E) In accordance with section 1119A, high 
                quality and ongoing professional development for 
                teachers and paraprofessionals, 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.
                    ``(F) Strategies to increase parental involvement 
                in accordance with section 1118, such as family 
                literary services.
                    ``(G) 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.
                    ``(H) Measures to include teachers in the decisions 
                regarding the use of assessments described in section 
                1111(b)(4) in order to provide information on, and to 
                improve, the performance of individual students and the 
                overall instructional program.
                    ``(I) Activities to ensure that students who 
                experience difficulty mastering the proficient or 
                advanced levels of performance standards required by 
                section 1111(b) shall be provided with effective, 
                timely additional assistance which shall include 
                measures to ensure that students' difficulties are 
                identified on a timely basis and to provide sufficient 
                information on which to base effective assistance.
            ``(2) Plan.--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 on the day before the date 
        of enactment of the Student Results Act of 1999), a 
        comprehensive plan for reforming the total instructional 
        program in the school that--
                    ``(A) incorporates the components described in 
                paragraph (1);
                    ``(B) describes how the school will use resources 
                under this part and from other sources to implement 
                those components;
                    ``(C) includes a list of State and local 
                educational agency programs and other Federal programs 
                under subsection (b)(4) that will be consolidated in 
                the schoolwide program;
                    ``(D) 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 assessments required by 
                section 1111(b)(4) and in a format and, to the extent 
                practicable, in a language that they can understand; 
                and
                    ``(E) 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, 
                by children with disabilities as compared to other 
                students, and by economically disadvantaged students as 
                compared to students who are not economically 
                disadvantaged, except that such disaggregation shall 
                not be required in a case in which the number of 
                students in a category is insufficient to yield 
                statistically reliable information or the results would 
                reveal individually identifiable information about an 
                individual student.
            ``(3) Plan development.--The comprehensive plan shall be--
                    ``(A) developed during a 1-year period, unless--
                            ``(i) the local educational agency 
                        determines that less time is needed to develop 
                        and implement the schoolwide program; or
                            ``(ii) the school operated a schoolwide 
                        program on the day preceding the date of 
                        enactment of the Student Results Act of 1999, 
                        in which case such school may continue to 
                        operate such program, but shall develop 
                        amendments to its existing plan during the 
                        first year of assistance under such Act to 
                        reflect the provisions of this section;
                    ``(B) developed with the involvement of the 
                community to be served and individuals who will carry 
                out such plan, including teachers, principals, 
                administrators (including administrators of programs 
                described in other parts of this title), if appropriate 
                pupil services personnel, school staff and parents, 
                and, if the plan relates to a secondary school, 
                students from such school;
                    ``(C) in effect for the duration of the school's 
                participation under this part and reviewed and revised, 
                as necessary, by the school;
                    ``(D) available to the local educational agency, 
                parents, and the public, and the information contained 
                in such plan shall be provided in a format, and to the 
                extent practicable, in a language that they can 
                understand; and
                    ``(E) if appropriate, developed in coordination 
                with programs under the Reading Excellence Act, the 
                Carl D. Perkins Vocational and Technical Education Act 
                of 1998, the Head Start Act, and part B of this title.
    ``(d) Accountability.--A schoolwide program under this section 
shall be subject to the school improvement provisions of section 
1116.''.

SEC. 109. TARGETED ASSISTANCE SCHOOLS.

    (a) In General.--Subsection (a) of section 1115 (20 U.S.C. 6315(a)) 
is amended by striking ``section 1113(c)'' and inserting ``section 
1113(f)''.
    (b) Eligible Children.--Subsection (b) of section 1115 (20 U.S.C. 
6315(b)) is amended to read as follows:
    ``(b) Eligible Children.--
            ``(1) Eligible population.--(A) The eligible population for 
        services under this section 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.
            ``(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 
        assessments under this part, and, as appropriate, 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 2 
        may 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 with 
        disabilities, migrant children, and children with limited 
        English proficiency are eligible for services under this part 
        on the same basis as other children.
            ``(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 2 years preceding the 
        year for which the determination is made, participated in a 
        Head Start or Even Start program or in preschool services under 
        this title, is eligible for services under this part.
            ``(C)(i) A child who, at any time in the 2 years preceding 
        the year for which the determination is made, received services 
        under part C is 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 is eligible for services under this part.
            ``(D) A child who is homeless and attending any school in 
        the local educational agency is eligible for services under 
        this part.''.
    (c) Components of Targeted Assistance School Program.--Subsection 
(c) of section 1115 (20 U.S.C. 6315(c)) is amended to read as follows:
    ``(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 title the 
        opportunity to meet the State's challenging 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's 
                challenging student performance standards expected for 
                all children;
                    ``(B) ensure that planning for students served 
                under this part is incorporated into existing school 
                planning;
                    ``(C) use effective methods and instructional 
                strategies that are based upon scientifically based 
                research that strengthens the core academic program of 
                the school and 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;
                    ``(D) coordinate with and support the regular 
                education program, which may include services to assist 
                preschool children in the transition from early 
                childhood programs to elementary school programs;
                    ``(E) provide instruction by fully qualified 
                teacher as defined in section 1610;
                    ``(F) in accordance with subsection (e)(3) and 
                section 1119A, provide opportunities for professional 
                development with resources provided under this part, 
                and, to the extent practicable, from other sources, for 
                teachers, principals, and administrators and other 
                school staff, including, if appropriate, pupil services 
                personnel, who work with participating children in 
                programs under this section or in the regular education 
                program; and
                    ``(G) provide strategies to increase parental 
                involvement in accordance with section 1118, such as 
                family literacy 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; 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) Integration of Professional Development.--Subsection (d) of 
section 1115 (20 U.S.C. 6515(d) is amended to read as follows:
    ``(d) Integration of Professional Development.--To promote the 
integration of staff supported with funds under this part, public 
school personnel who are paid with funds received under this part may 
participate in general professional development and school planning 
activities.''.
    (e) Comprehensive Services.--Paragraph (2) of section 1115(e) (20 
U.S.C. 6315(e)(2)) is amended--
            (1) by inserting ``and'' at the end of subparagraph (A);
            (2) by striking subparagraph (B); and
            (3) by redesignating subparagraph (C) as subparagraph (B).

SEC. 110. SCHOOL CHOICE.

    Section 1115A (20 U.S.C. 6316) is amended to read as follows:

``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 public school choice programs, for children 
eligible for assistance under this part, which permit parents to select 
the public school that their child will attend.
    ``(b) Choice Plan.--A local educational agency that chooses to 
implement a public school choice program shall first develop a plan 
that includes assurances that--
            ``(1) all eligible students across grade levels served 
        under this part will have equal access to the program;
            ``(2) the program does not include schools that 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) the plan will be developed with the involvement of 
        parents and others in the community to be served and 
        individuals who will carry out the plan, including 
        administrators, teachers, principals, and other staff;
            ``(5) parents of eligible students in the local educational 
        agency will be given prompt notice of the existence of the 
        public school choice program and its availability to them, and 
        a clear explanation of how the program will operate;
            ``(6) the program will include charter schools and any 
        other public school and shall not include a school that is or 
        has been identified as a school in school improvement or is or 
        has been in corrective action for the past 2 consecutive years;
            ``(7) transportation services or the costs of 
        transportation may be provided by the local educational agency 
        with funds under this part; and
            ``(8) such local educational agency will comply with the 
        other requirements of this part.''.

SEC. 111. ASSESSMENT AND LOCAL EDUCATIONAL AGENCY AND SCHOOL 
              IMPROVEMENT.

    (a) Local Review.--Section 1116(a) (20 U.S.C. 6317(a)) is amended--
            (1) in paragraph (2), by striking ``1111(b)(2)(A)(i)'' and 
        inserting ``1111(b)(2)(B)'';
            (2) in paragraph (3), by striking ``individual school 
        performance profiles'' and inserting ``school reports'';
            (3) in paragraph (3), by striking ``and'' after the 
        semicolon;
            (4) in paragraph (4), by striking the period at the end and 
        inserting ``; and''; and
            (5) by adding at the end the following:
            ``(5) review the effectiveness of the actions and 
        activities the schools are carrying out under this part with 
        respect to parental involvement assisted under this Act.''.
    (b) School Improvement.--Section 1116 (20 U.S.C. 6317) is amended 
by striking subsection (b) and by redesignating subsections (c) and (d) 
as subsections (b) and (c), respectively, and amending them to read as 
follows:
    ``(b) School Improvement.--
            ``(1) In general.--A local educational agency shall 
        identify for school improvement any school served under this 
        part that--
                    ``(A) for 2 consecutive years failed to make 
                adequate yearly progress as defined in the State's plan 
                under section 1111(b)(2); or
                    ``(B) was in school improvement status under this 
                section on the day preceding the date of the enactment 
                of the Student Results Act of 1999.
            ``(2) Transition.--The 2-year period described in paragraph 
        (1)(A) shall include any continuous period of time immediately 
        preceding the date of the enactment of the Student Results Act 
        of 1999 during which a school did not make adequate yearly 
        progress as defined in the State's plan, as such plan was in 
        effect on the day preceding the date of such enactment.
            ``(3) Targeted assistance schools.--To determine if a 
        school that is conducting a targeted assistance program under 
        section 1115 should be identified as in need of improvement 
        under this subsection, a local educational agency may choose to 
        review the progress of only those students in such school who 
        are served under this part.
            ``(4) Opportunity to review and present evidence.--
                    ``(A) In general.--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 the proposed identification 
                is based.
            ``(B) Supporting evidence.--If the school principal 
        believes that the proposed identification is in error for 
        statistical or other substantive reasons, the principal may 
        provide supporting evidence to the local educational agency, 
        which such agency shall consider before making a final 
        determination.
            ``(5) Notification to parents.--A local educational agency 
        shall, in an easily understandable format, provide in writing 
        to parents of each student in a school identified for school 
        improvement--
                    ``(A) an explanation of what the school improvement 
                identification means and how the school compares in 
                terms of academic performance to other schools in the 
                local educational agency and State;
                    ``(B) the reasons for such identification;
                    ``(C) the data on which such identification is 
                based;
                    ``(D) an explanation of what the school is doing to 
                address the problem of low achievement;
                    ``(E) an explanation of how parents can become 
                involved in upgrading the quality of the school;
                    ``(F) an explanation of the right of parents, 
                pursuant to paragraph (6), to transfer their child to 
                another public school, including a public charter 
                school, that is not in school improvement, and how such 
                transfer shall operate; and
                    ``(G) notification to parents in a format and, to 
                the extent practicable, in a language they can 
                understand.
            ``(6) Public school choice option.--
                    ``(A) Schools identified for improvement.--
                            ``(i) Schools identified on or before 
                        enactment.--Not later than 18 months after the 
                        date of enactment of the Student Results Act of 
                        1999, a local educational agency shall provide 
                        all students enrolled in a school identified 
                        (on or before such date of enactment) for 
                        school improvement with an option to transfer 
                        to any other public school within the local 
                        educational agency or any public school 
                        consistent with subparagraph (B), including a 
                        public charter school that has not been 
                        identified for school improvement, unless such 
                        option to transfer is prohibited by State law, 
                        or local law, which includes school board-
                        approved local educational agency policy.
                            ``(ii) Schools identified after 
                        enactment.--Not later than 18 months after the 
                        date on which a local educational agency 
                        identifies a school for school improvement, the 
                        agency shall provide all students enrolled in 
                        such school with an option described in clause 
                        (i).
            ``(B) Cooperative agreement.--If all public schools in the 
        local educational agency to which a child may transfer to, are 
        identified for school improvement, the agency shall, to the 
        extent practicable, establish a cooperative agreement with 
        other local educational agencies in the area for the transfer.
            ``(C) Transportation.--The local educational agency in 
        which the schools have been identified for improvement may use 
        funds under this part to provide transportation to students 
        whose parents choose to transfer their child or children to a 
        different school.
            ``(D) Continue option.--Once a school is no longer 
        identified for school improvement, the local educational agency 
        shall continue to provide public school choice as an option to 
        students in such school for a period of not less than 2 years.
            ``(7) School plan.--
                    ``(A) In general.--Each school identified under 
                paragraph (1) for school improvement shall, not later 
                than 3 months after being so identified, develop or 
                revise a school plan, in consultation with parents, 
                school staff, the local educational agency, and other 
                outside experts for approval by the local educational 
                agency. Such plan shall--
                    ``(i) incorporate scientifically-based research 
                strategies that strengthen the core academic program in 
                the school;
                    ``(ii) adopt policies that have the greatest 
                likelihood of improving the performance of 
                participating children in meeting the State's student 
                performance standards;
                    ``(iii) address the professional development needs 
                of staff, particularly teachers and principals;
                    ``(iv) establish specific goals and objectives the 
                school will undertake for making adequate yearly 
                progress which include specific numerical performance 
                goals and targets for each of the groups of students 
                identified in the disaggregated data pursuant to 
                section 1111(b)(2);
                    ``(v) identify how the school will provide written 
                notification to parents, in a format and to the extent 
                practicable in a language such parents can understand; 
                and
                    ``(vi) specify the responsibilities of the local 
                educational agency and the school under the plan.
            ``(B) Conditional approval.--A local educational agency may 
        condition approval of a school plan on inclusion of 1 or more 
        of the corrective actions specified in paragraph (9).
            ``(C) Implementation.--A school shall implement its plan or 
        revised plan expeditiously, but not later than the beginning of 
        the school year after which the school has been identified for 
        improvement.
            ``(D) Review.--The local educational agency shall promptly 
        review the plan, work with the school as necessary, and approve 
        the plan if it meets the requirements of this section.
            ``(8) Technical assistance.--
                    ``(A) In general.--For each school identified for 
                school improvement under paragraph (1), the local 
                educational agency shall provide technical assistance 
                as the school develops and implements its plan.
            ``(B) Specific technical assistance.--Such technical 
        assistance--
                    ``(i) shall include effective methods and 
                instructional strategies that are based upon 
                scientifically based research that strengthens the core 
                academic program in the school and addresses the 
                specific elements of student performance problems in 
                the school;
                    ``(ii) 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.
            ``(C) Technical assistance.--Technical assistance provided 
        under this section by the local educational agency or an entity 
        authorized by such agency shall be based upon scientifically 
        based research.
            ``(9) Corrective action.--In order to help students served 
        under this part meet challenging State standards, each local 
        educational agency shall implement a system of corrective 
        action in accordance with the following:
                    ``(A) In general.--After providing technical 
                assistance under paragraph (8) and subject to 
                subparagraph (F), the local educational agency--
                            ``(i) may take corrective action at any 
                        time with respect to a school that has been 
                        identified under paragraph (1);
                            ``(ii) shall take corrective action with 
                        respect to any school that fails to make 
                        adequate yearly progress, as defined by the 
                        State, after the end of the second year 
                        following its identification under paragraph 
                        (1); and
                            ``(iii) shall continue to provide technical 
                        assistance while instituting any corrective 
                        action under clause (i) or (ii).
                    ``(B) Definition.--As used in this paragraph, the 
                term `corrective action' means action, consistent with 
                State and local law, that--
                            ``(i) substantially and directly responds 
                        to the consistent academic failure that caused 
                        the local educational agency to take such 
                        action and to any underlying staffing, 
                        curricular, or other problems in the school; 
                        and
                            ``(ii) is designed to substantially 
                        increase the likelihood that students will 
                        perform at the proficient and advanced 
                        performance levels.
                    ``(C) Certain schools.--In the case of a school 
                described in subparagraph (A)(ii), the local 
                educational agency shall take not less than 1 of the 
                following corrective actions:
                            ``(i) Withhold funds from the school.
                            ``(ii) Decrease decisionmaking authority at 
                        the school level.
                            ``(iii) Make alternative governance 
                        arrangements, including reopening the school as 
                        a public charter school.
                            ``(iv) Reconstitute the school by requiring 
                        each person employed at the school to reapply 
                        for future employment at the same school or for 
                        any position in the local educational agency.
                            ``(v) Authorize students to transfer to 
                        other higher performing public schools served 
                        by the local educational agency, including 
                        public charter schools, and provide such 
                        students transportation (or the costs of 
                        transportation) to such schools in conjunction 
                        with not less than 1 additional action 
                        described under this subparagraph.
                            ``(vi) Institute and fully implement a new 
                        curriculum, including appropriate professional 
                        development for all relevant staff, that is 
                        based upon scientifically based research and 
                        offers substantial promise of improving 
                        educational achievement for low-performing 
                        students.
                    ``(D) Implementation delay.--A local educational 
                agency may delay, for a period not to exceed 1 year, 
                implementation of corrective action only if the failure 
                to make adequate yearly progress was justified due to 
                exceptional or uncontrollable circumstances such as a 
                natural disaster or a precipitous and unforeseen 
                decline in the financial resources of the local 
                educational agency or school.
                    ``(E) Publication.--The local educational agency 
                shall publish, and disseminate to the public and to 
                parents in a format and, to the extent practicable, in 
                a language that they can understand, any corrective 
                action it takes under this paragraph through such means 
                as the Internet, the media, and public agencies.
                    ``(F) Review.--(i) Before taking corrective action 
                with respect to any school under this paragraph, a 
                local educational agency shall provide the school an 
                opportunity to review the school level data, including 
                assessment data, on which the proposed determination is 
                made.
                    ``(ii) If the school believes that the proposed 
                determination is in error for statistical or other 
                substantive reasons, it may provide supporting evidence 
                to the local educational agency, which shall consider 
                such evidence before making a final determination.
            ``(10) State educational agency responsibilities.--If a 
        State educational agency determines that a local educational 
        agency failed to carry out its responsibilities under this 
        section, it shall take such action as it finds necessary, 
        consistent with this section, to improve the affected schools 
        and to ensure that the local educational agency carries out its 
        responsibilities under this section.
            ``(11) Special rule.--Schools that, for at least two of the 
        three years following identification under paragraph (1), make 
        adequate yearly progress toward meeting the State's proficient 
        and advanced levels of performance shall no longer be 
        identified for school improvement.
    ``(c) 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 yearly progress as 
                defined in section 1111(b)(2) 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 consistent with section 1111, including 
                statistically sound disaggregated results, as required 
                by section 1111(b)(2).
            ``(2) Identification of local educational agency for 
        improvement.--A State educational agency shall identify for 
        improvement any local educational agency that--
                    ``(A) for 2 consecutive years failed to make 
                adequate yearly progress as defined in the State's plan 
                under section 1111(b)(2); or
                    ``(B) was in improvement status under this section 
                as this section was in effect on the day preceding the 
                date of enactment of the Student Results Act of 1999.
            ``(3) Transition.--The 2-year period described in paragraph 
        (2)(A) shall include any continuous period of time immediately 
        preceding the date of the enactment of the Student Results Act 
        of 1999, during which a local educational agency did not make 
        adequate yearly progress as defined in the State's plan, as 
        such plan was in effect on the day preceding the date of such 
        enactment.
            ``(4) Targeted assistance schools.--For purposes of 
        targeted assistance schools in a local educational agency, a 
        State educational agency may choose to review the progress of 
        only the students in such schools who are served under this 
        part.
            ``(5) Opportunity to review and present evidence.--
                    ``(A) Review.--Before identifying a local 
                educational agency for improvement under paragraph (2), 
                a State educational agency shall provide the local 
                educational agency with an opportunity to review the 
                local educational agency data, including assessment 
                data, on which that proposed identification is based.
            ``(B) Supporting evidence.--If the local educational agency 
        believes that the proposed identification is in error for 
        statistical or other substantive reasons, it may provide 
        supporting evidence to the State educational agency, which such 
        agency shall consider before making a final determination.
            ``(6) Notification to parents.--The State educational 
        agency shall promptly notify parents in a format, and to the 
        extent practicable in a language they can understand, of each 
        student enrolled in a school in a local educational agency 
        identified for improvement, of the reasons for such agency's 
        identification and how parents can participate in upgrading the 
        quality of the local educational agency.
            ``(7) Local educational agency revisions.--
                    ``(A) Plan.--Each local educational agency 
                identified under paragraph (2) shall, not later than 3 
                months after being so identified, develop or revise a 
                local educational agency plan, in consultation with 
                parents, school staff, and others. Such plan shall--
                    ``(i) incorporate scientifically based research 
                strategies that strengthen the core academic program in 
                the local educational agency;
                    ``(ii) identify specific goals and objectives the 
                local educational agency will undertake to make 
                adequate yearly progress and which--
                            ``(I) have the greatest likelihood of 
                        improving the performance of participating 
                        children in meeting the State's student 
                        performance standards;
                            ``(II) address the professional development 
                        needs of staff; and
                            ``(III) include specific numerical 
                        performance goals and targets for each of the 
                        groups of students identified in the 
                        disaggregated data pursuant to section 
                        1111(b)(2);
                    ``(iii) identify how the local educational agency 
                will provide written notification to parents in a 
                format, and to the extent practicable in a language, 
                that they can understand, pursuant to paragraph (6); 
                and
                    ``(iv) specify the responsibilities of the State 
                educational agency and the local educational agency 
                under the plan.
            ``(B) Implementation.--The local educational agency shall 
        implement its plan or revised plan expeditiously, but not later 
        than the beginning of the school year after which the school 
        has been identified for improvement.
            ``(8) State educational agency responsibility.--
                    ``(A) In general.--For each local educational 
                agency identified under paragraph (2), the State 
                educational agency shall provide technical or other 
                assistance, if requested, as authorized under section 
                1117, to better enable the local educational agency--
                            ``(i) to develop and implement its revised 
                        plan as approved by the State educational 
                        agency consistent with the requirements of this 
                        section; and
                            ``(ii) to work with schools needing 
                        improvement.
                    ``(B) Technical assistance.--Technical assistance 
                provided under this section by the State educational 
                agency or an entity authorized by such agency shall be 
                based upon scientifically based research.
            ``(9) Corrective action.--In order to help students served 
        under this part meet challenging State standards, each State 
        educational agency shall implement a system of corrective 
        action in accordance with the following:
                    ``(A) In general.--After providing technical 
                assistance under paragraph (8) and subject to 
                subparagraph (D), the State educational agency--
                            ``(i) may take corrective action at any 
                        time with respect to a local educational agency 
                        that has been identified under paragraph (2);
                            ``(ii) shall take corrective action with 
                        respect to any local educational agency that 
                        fails to make adequate yearly progress, as 
                        defined by the State, after the end of the 
                        second year following its identification under 
                        paragraph (2); and
                            ``(iii) shall continue to provide technical 
                        assistance while instituting any corrective 
                        action under clause (i) or (ii).
                    ``(B) Definition.--As used in this paragraph, the 
                term `corrective action' means action, consistent with 
                State law, that--
                            ``(i) substantially and directly responds 
                        to the consistent academic failure that caused 
                        the State educational agency to take such 
                        action and to any underlying staffing, 
                        curricular, or other problems in the school; 
                        and
                            ``(ii) is designed to meet the goal of 
                        having all students served under this part 
                        perform at the proficient and advanced 
                        performance levels.
                    ``(C) Certain local educational agencies.--In the 
                case of a local educational agency described in this 
                paragraph, the State educational agency shall take not 
                less than 1 of the following corrective actions:
                            ``(i) Withhold funds from the local 
                        educational agency.
                            ``(ii) Reconstitute school district 
                        personnel.
                            ``(iii) Remove particular schools from the 
                        jurisdiction of the local educational agency 
                        and establish alternative arrangements for 
                        public governance and supervision of such 
                        schools.
                            ``(iv) Appoint, through the State 
                        educational agency, a receiver or trustee to 
                        administer the affairs of the local educational 
                        agency in place of the superintendent and 
                        school board.
                            ``(v) Abolish or restructure the local 
                        educational agency.
                            ``(vi) Authorize students to transfer from 
                        a school operated by a local educational agency 
                        to a higher performing public school operated 
                        by another local educational agency, or to a 
                        public charter school and provide such students 
                        transportation (or the costs of transportation 
                        to such schools, in conjunction with not less 
                        than 1 additional action described under this 
                        paragraph.
                    ``(D) Hearing.--Prior to implementing any 
                corrective action, the State educational agency shall 
                provide due process and a hearing to the affected local 
                educational agency, if State law provides for such 
                process and hearing.
                    ``(E) Publication.--The State educational agency 
                shall publish, and disseminate to parents and the 
                public any corrective action it takes under this 
                paragraph through such means as the Internet, the 
                media, and public agencies.
                    ``(F) Delay.--A local educational agency may delay, 
                for a period not to exceed 1 year, implementation of 
                corrective action if the failure to make adequate 
                yearly progress was justified due to exceptional or 
                uncontrollable circumstances such as a natural disaster 
                or a precipitous and unforeseen decline in the 
                financial resources of the local educational agency or 
                school.
            ``(10) Special rule.--A local educational agency, that, for 
        at least two of the three years following identification under 
        paragraph (2), makes adequate yearly progress toward meeting 
        the State's proficient and advanced levels of performance shall 
        no longer be identified for school improvement.''.

SEC. 112. STATE ASSISTANCE FOR SCHOOL SUPPORT AND IMPROVEMENT.

    Section 1117 (20 U.S.C. 6318) is amended to read as follows:

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

    ``(a) System for Support.--Each State educational agency shall 
establish a statewide system of intensive and sustained support and 
improvement for local educational agencies and schools receiving funds 
under this part, in order to increase the opportunity for all students 
in those agencies and schools to meet the State's content standards and 
student performance standards.
    ``(b) Priorities.--In carrying out this section, a State 
educational agency shall--
            ``(1) first, provide support and assistance to local 
        educational agencies subject to corrective action under section 
        1116 and assist schools, in accordance with section 
        1116(b)(10), for which a local educational agency has failed to 
        carry out its responsibilities under section 1116(b)(8) and 
        (9);
            ``(2) second, provide support and assistance to other local 
        educational agencies identified as in need of improvement under 
        section 1116; and
            ``(3) third, provide support and assistance to other local 
        educational agencies and schools participating under this part 
        that need that support and assistance in order to achieve the 
        purpose of this part.
    ``(c) Approaches.--In order to achieve the purpose described in 
subsection (a), each such system shall provide technical assistance and 
support through such approaches as--
            ``(1) school support teams, composed of individuals who are 
        knowledgeable about scientifically based research and practice 
        on teaching and learning, particularly about strategies for 
        improving educational results for low-achieving children; and
            ``(2) the designation and use of ``Distinguished 
        Educators'', chosen from schools served under this part that 
        have been especially successful in improving academic 
        achievement.
    ``(d) Funds.--Each State educational agency--
            ``(1) shall use funds reserved under section 1002(f); and
            ``(2) may use State administrative funds authorized under 
        section 1002(h) for such purpose.
    ``(e) Alternatives.--The State may devise additional approaches to 
providing the assistance described in paragraphs (1) and (2) 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 made available under section 1002(h) for such approaches as part 
of the State plan.''.

SEC. 113. ACADEMIC ACHIEVEMENT AWARDS PROGRAM.

    Subpart 1 of part A of title I is amended by inserting after 
section 1117 the following:

``SEC. 1117A. ACADEMIC ACHIEVEMENT AWARDS PROGRAM.

    ``(a) Establishment of Academic Achievement Awards Program.--
            ``(1) In general.--Each State receiving a grant under this 
        part may establish a program for making academic achievement 
        awards to recognize and financially reward schools served under 
        this part that have--
                    ``(A) significantly closed the achievement gap 
                between the groups of students defined in section 
                1111(b)(2); or
                    ``(B) exceeded their adequate yearly progress 
                goals, consistent with section 1111(b)(2), for 2 or 
                more consecutive years.
            ``(2) Awards to teachers.--A State program under paragraph 
        (1) may also recognize and provide financial awards to teachers 
        teaching in a school described in such paragraph whose students 
        consistently make significant gains in academic achievement in 
        the areas in which the teacher provides instruction.
    ``(b) Funding.--
            ``(1) Reservation of funds by State.--For the purpose of 
        carrying out this section, each State receiving a grant under 
        this part may reserve, from the amount (if any) by which the 
        funds received by the State under this part for a fiscal year 
        exceed the amount received by the State under this part for the 
        preceding fiscal year, not more than 30 percent of such excess 
        amount.
            ``(2) Use within 3 years.--Notwithstanding any other 
        provision of law, the amount reserved under paragraph (1) by a 
        State for each fiscal year shall remain available to the State 
        until expended for a period not exceeding 3 years.
            ``(3) Special allocation rule for schools in high-poverty 
        areas.--
                    ``(A) In general.--Each State receiving a grant 
                under this part shall distribute at least 50 percent of 
                the amount reserved under paragraph (1) for each fiscal 
                year to schools described in subparagraph (B), or to 
                teachers teaching in such schools.
                    ``(B) Schools described.--A school described in 
                subparagraph (A) is a school whose student population 
                is in the highest quartile of schools statewide in 
                terms of the percentage of children eligible for free 
                and reduced priced lunches under the National School 
                Lunch Act.''.

SEC. 114. PARENTAL INVOLVEMENT CHANGES.

    (a) Local Educational Agency Policy.--Subsection (a) of section 
1118 (20 U.S.C. 6319(a)) is amended--
            (1) in paragraph (1), by striking ``programs, activities, 
        and procedures'' and inserting ``activities and procedures''.
            (2) in paragraph (2) by striking subparagraphs (E) and (F) 
        and inserting the following:
                    ``(E) conduct, with the involvement of parents, an 
                annual evaluation of the content and effectiveness of 
                the parental involvement policy in improving the 
                academic quality of the schools served under this part;
                    ``(F) involve parents in the activities of the 
                schools served under this part; and
                    ``(G) promote consumer friendly environments at the 
                local educational agency and schools served under this 
                part.'';
            (3) in paragraph (3) by adding at the end the following new 
        subparagraph:
            ``(C) Not less than 90 percent of the funds reserved under 
        subparagraph (A) shall be distributed to schools served under 
        this part.''.
    (b) Notice.--Paragraph (1) of section 1118(b) (20 U.S.C. 
6319(b)(1)) is amended by inserting after the first sentence the 
following: ``Parents shall be notified of the policy in a format, and 
to the extent practicable, in a language that they can understand.''.
    (c) Parental Involvement.--Paragraph (4) of section 1118(c) (20 
U.S.C. 6319(c)(4)) is amended--
            (1) in subparagraph (B), by striking ``performance profiles 
        required under section 1116(a)(3)'' and inserting ``school 
        reports required under section 1111'';
            (2) by redesignating subparagraphs (D) and (E) as 
        subparagraphs (F) and (G), respectively;
            (3) by inserting after subparagraph (C) the following new 
        subparagraphs:
                    ``(D) notice of the schools' identification as a 
                school in school improvement under section 1116(b), if 
                applicable, and a clear explanation of what such 
                identification means;
                    ``(E) notice of the corrective action that has been 
                taken against the school under section 1116(b)(9) and 
                1116(c)(9), if applicable, and a clear explanation of 
                what such action means;''; and
            (4) in subparagraph (G) (as so redesignated), by striking 
        ``subparagraph (D)'' and inserting ``subparagraph (F)''.
    (d) Building Capacity for Involvement.--Subsection (e) of section 
1118 (20 U.S.C 6319(e)) is amended to read as follows:
    ``(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 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 conduct other activities, as appropriate and 
        feasible, such as parent resource centers and opportunities for 
        parents to learn how to become full partners in the education 
        of their children;
            ``(6) 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;
            ``(7) shall provide such other reasonable support for 
        parental involvement activities under this section as parents 
        may request;
            ``(8) shall expand the use of electronic communications 
        among teachers, students, and parents, such as through the use 
        of websites and e-mail communications;
            ``(9) 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 in a format, and to 
        the extent practicable, in a language the parent can 
        understand;
            ``(10) 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;
            ``(11) 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;
            ``(12) may train and support parents to enhance the 
        involvement of other parents;
            ``(13) 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;
            ``(14) 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;
            ``(15) may adopt and implement model approaches to 
        improving parental involvement, such as Even Start;
            ``(16) may establish a districtwide parent advisory council 
        to advise on all matters related to parental involvement in 
        programs supported under this part; and
            ``(17) may 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.''.
    (e) Accessibility.--Subsection (f) of section 1118 (20 U.S.C. 
6319(f)) is amended to read as follows:
    ``(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 and parents of migratory children, including providing 
information and school reports required under section 1111 in a format, 
and to the extent practicable, in a language such parents 
understand.''.

SEC. 115. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.

    Section 1119 (20 U.S.C. 6301) is amended to read as follows:

``SEC. 1119. QUALIFICATIONS FOR TEACHERS AND PARAPROFESSIONALS.

    ``(a) Teachers.--
            ``(1) In general.--Each local educational agency receiving 
        assistance under this part shall ensure that all teachers hired 
        on or after the effective date of the Student Results Act of 
        1999 and teaching in a program supported with funds under this 
        part are fully qualified.
            ``(2) Plan.--Each State receiving assistance under this 
        part shall develop and submit to the Secretary a plan to ensure 
        that all teachers teaching within the State are fully qualified 
        not later than December 31, 2003. Such plan shall include an 
        assurance that the State will require each local educational 
        agency and school receiving funds under this part publicly to 
        report their annual progress on the agency's and the school's 
        performance in increasing the percentage of classes in core 
        academic areas taught by fully qualified teachers.
    ``(b) New Paraprofessionals.--
            ``(1) In general.--Each local educational agency receiving 
        assistance under this part shall ensure that all 
        paraprofessionals hired one year or more after the effective 
        date of the Student Results Act of 1999 and working in a 
        program supported with funds under this part shall--
                    ``(A) have completed at least 2 years of study at 
                an institution of higher education;
                    ``(B) have obtained an associate's (or higher) 
                degree; or
                    ``(C) have met a rigorous standard of quality that 
                demonstrates, through a formal assessment--
                            ``(i) knowledge of, and the ability to 
                        assist in instructing reading, writing, and 
                        math; or
                            ``(ii) knowledge of, and the ability to 
                        assist in instructing reading readiness, 
                        writing readiness, and math readiness, as 
                        appropriate.
            ``(2) Clarification.--For purposes of paragraph (1)(C), the 
        receipt of a high school diploma (or its recognized equivalent) 
        shall be necessary but not by itself sufficient to satisfy the 
        requirements of such paragraph.
    ``(c) Existing Paraprofessionals.--Each local educational agency 
receiving assistance under this part shall ensure that all 
paraprofessionals hired before the date that is one year after the 
effective date of the Student Results Act of 1999 and working in a 
program supported with funds under this part shall, not later than 3 
years after such effective date, satisfy the requirements of subsection 
(b).
    ``(d) Exceptions for Translation and Parental Involvement 
Activities.--Subsections (b) and (c) shall not apply to a 
paraprofessional--
                    ``(A) who is proficient in English and a language 
                other than English and who provides services primarily 
                to enhance the participation of children in programs 
                under this part by acting as a translator; or
                    ``(B) whose duties consist solely of conducting 
                parental involvement activities consistent with section 
                1118.
    ``(e) General Requirement for All Paraprofessionals.--Each local 
educational agency receiving assistance under this part shall ensure 
that all paraprofessionals working in a program supported with funds 
under this part, regardless of the paraprofessional's hiring date, 
possess a high school diploma or its recognized equivalent.
    ``(f) Duties of Paraprofessionals.--
            ``(1) In general.--Each local educational agency receiving 
        assistance under this part shall ensure that a paraprofessional 
        working in a program supported with funds under this part is 
        not assigned a duty inconsistent with this subsection.
            ``(2) Responsibilities paraprofessionals may be assigned.--
        A paraprofessional described in paragraph (1) may only be 
        assigned--
                    ``(A) to provide one-on-one tutoring for eligible 
                students, if the tutoring is scheduled at a time when a 
                student would not otherwise receive instruction from a 
                teacher;
                    ``(B) to assist with classroom management, such as 
                organizing instructional and other materials;
                    ``(C) to provide assistance in a computer 
                laboratory;
                    ``(D) to conduct parental involvement activities;
                    ``(E) to provide support in a library or media 
                center;
                    ``(F) to act as a translator; or
                    ``(G) to provide instructional services to 
                students;
            ``(3) Additional limitations.--A paraprofessional described 
        in paragraph (1)--
                    ``(A) may not provide any instructional service to 
                a student unless the paraprofessional is working under 
                the direct supervision of a fully qualified teacher; 
                and
                    ``(B) may not provide instructional services to 
                students in the area of reading, writing, or math 
                unless the paraprofessional has demonstrated, through a 
                State or local assessment, the ability effectively to 
                carry out reading, writing, or math instruction.
    ``(g) Use of Funds.--
            ``(1) Professional development.--A local educational agency 
        receiving funds under this part may use such funds to support 
        ongoing training and professional development to assist 
        teachers and paraprofessionals in satisfying the requirements 
        of this section.
            ``(2) Limitation on use of funds for paraprofessionals.--
                    ``(A) In general.--Beginning on and after the 
                effective date of the Student Results Act of 1999, a 
                local educational agency may not use funds received 
                under this part to fund any paraprofessional hired 
                after such date unless the hiring is to fill a vacancy 
                created by the departure of another paraprofessional 
                funded under this part and such new paraprofessional 
                satisfies the requirements of subsection (b) or (c).
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                for a fiscal year to a local educational agency that 
                can demonstrate to the State that all teachers under 
                the jurisdiction of the agency are fully qualified.
    ``(h) Verification of Compliance.--
            ``(1) In general.--In verifying compliance with this 
        section, each local educational agency at a minimum shall 
        require that the principal of each school operating a program 
        under section 1114 or 1115 annually attest in writing as to 
        whether such school is in compliance with the requirements of 
        this section.
            ``(2) Availability of information.--Copies of attestations 
        under paragraph (1)--
                    ``(A) shall be maintained at each school operating 
                a program under section 1114 or 1115 and at the main 
                office of the local educational agency; and
                    ``(B) shall be available to any member of the 
                general public upon request.''.

SEC. 116. PROFESSIONAL DEVELOPMENT.

    Subpart 1 of part A of title I (20 U.S.C. 6311 et seq.) is amended 
by inserting after section 1119 the following:

``SEC. 1119A. PROFESSIONAL DEVELOPMENT.

    ``(a) Purpose.--The purpose of this section is to assist each local 
educational agency receiving assistance under this part in increasing 
the academic achievement of eligible children (as defined in section 
1115(b)(1)(B)) through improved teacher quality.
    ``(b) Professional Development Activities.--
            ``(1) Required activities.--Professional development 
        activities under this section shall--
                    ``(A) support professional development activities 
                that give teachers, principals, and administrators the 
                knowledge and skills to provide students with the 
                opportunity to meet challenging State or local content 
                standards and student performance standards;
                    ``(B) support the recruiting, hiring, and training 
                of fully qualified teachers, including teachers fully 
                qualified through State and local alternative routes;
                    ``(C) advance teacher understanding of effective 
                instructional strategies based on scientifically-based 
                research for improving student achievement, at a 
                minimum, in reading or language arts and mathematics;
                    ``(D) be directly related to the curriculum and 
                content areas in which the teacher provides 
                instruction;
                    ``(E) be designed to enhance the ability of a 
                teacher to understand and use the State's standards for 
                the subject area in which the teacher provides 
                instruction;
                    ``(F) be tied to scientifically based research 
                demonstrating the effectiveness of such professional 
                development activities or programs in increasing 
                student achievement or substantially increasing the 
                knowledge and teaching skills of teachers;
                    ``(G) be of sufficient intensity and duration (not 
                to include 1-day or short-term workshops and 
                conferences) to have a positive and lasting impact on 
                the teacher's performance in the classroom, except that 
                this paragraph shall not apply to an activity if such 
                activity is one component of a long-term comprehensive 
                professional development plan established by the 
                teacher and the teacher's supervisor based upon an 
                assessment of their needs, their students' needs, and 
                the needs of the local educational agency;
                    ``(H) be developed with extensive participation of 
                teachers, principals, parents, and administrators of 
                schools to be served under this part;
                    ``(I) to the extent appropriate, provide training 
                for teachers in the use of technology so that 
                technology and its applications are effectively used in 
                the classroom to improve teaching and learning in the 
                curriculum and academic content areas in which the 
                teachers provide instruction; and
                    ``(J) as a whole, be regularly evaluated for their 
                impact on increased teacher effectiveness and improved 
                student achievement, with the findings of such 
                evaluations used to improve the quality of professional 
                development.
            ``(2) Optional activities.--Such professional development 
        activities may include--
                    ``(A) instruction in the use of data and 
                assessments to inform and instruct classroom practice;
                    ``(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) 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;
                    ``(E) instruction in ways to teach special needs 
                children;
                    ``(F) joint professional development activities 
                involving programs under this part, Head Start, Even 
                Start, or State-run preschool program personnel;
                    ``(G) instruction in experiential-based teaching 
                methods such as service or applied learning; and
                    ``(H) mentoring programs focusing on changing 
                teacher behaviors and practices to help novice 
                teachers, including teachers who are members of a 
                minority group, develop and gain confidence in their 
                skills, to increase the likelihood that they will 
                continue in the teaching profession, and generally to 
                improve the quality of their teaching.
    ``(c) Program Participation.--Each local educational agency 
receiving assistance under this part may 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) Consolidation of Funds.--Funds provided under this part that 
are used for professional development purposes may be consolidated with 
funds provided under title II of this Act and other sources.
    ``(g) Definition.--The term `fully qualified' has the same meaning 
given such term in section 1610.
    ``(h) 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(c)(9).''.

SEC. 117. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

    (a) General Requirement.--Subsection (a) of section 1120 (20 U.S.C. 
6321(a)) is amended to read as follows:
    ``(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) that address their needs, 
        and shall ensure that teachers and families of these students 
        participate, on an equitable basis, in services and activities 
        developed pursuant to sections 1118 and 1119A.
            ``(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, and shall be provided in a 
        timely manner.
            ``(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, which the local 
        educational agency may determine each year or every 2 years.
            ``(5) Provision of services.--The local educational agency 
        shall provide services under this section directly or through 
        contracts with public and private agencies, organizations, and 
        institutions.''.
    (b) Consultation.--Subsection (b) of section 1120 (20 U.S.C. 
6321(b)) is amended to read as follows:
    ``(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, where, and by whom the services will be 
                provided;
                    ``(D) how the services will be assessed and how the 
                results of that assessment will be used to improve 
                those services;
                    ``(E) the size and scope of the equitable services 
                to be provided to the eligible private school children, 
                and the amount of funds generated by low-income private 
                school children in each participating attendance area;
                    ``(F) the method or sources of data that are used 
                under subsection (a)(4) and section 1113(c)(2) to 
                determine the number of children from low-income 
                families in participating school attendance areas who 
                attend private schools; and
                    ``(G) how and when the agency will make decisions 
                about the delivery of services to such children, 
                including a thorough consideration and analysis of the 
                views of the private school officials on the provision 
                of contract services through potential third party 
                providers. If the local educational agency disagrees 
                with the views of the private school officials on the 
                provision of services, through a contract, the local 
                educational agency shall provide in writing to such 
                private school officials, an analysis of the reasons 
                why the local educational agency has chosen not to use 
                a contractor.
            ``(2) Timing.--Such consultation shall include meetings of 
        agency and private school officials and 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. Such meetings shall 
        continue throughout implementation and assessment of services 
        provided under this section.
            ``(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.
            ``(4) Documentation.--Each local educational agency shall 
        provide to the State educational agency, and maintain in its 
        records, a written affirmation signed by officials of each 
        participating private school that the consultation required by 
        this section has occurred.
            ``(5) Compliance.--Private school officials shall have the 
        right to appeal to the State as to whether the consultation 
        provided for in this section was meaningful and timely, and 
        that due consideration was given to the views of private school 
        officials. If the private school wishes to appeal, the basis of 
        the claim of noncompliance with this section by the local 
        educational agencies shall be provided to the State, and the 
        local educational agency shall forward the documentation 
        provided in subsection (b)(3) to the State.''.
    (c) Standards for Bypass.--Subsection (d) of section 1120 (20 
U.S.C. 6321(d)) is amended to read as follows:
    ``(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;
            ``(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; and
            ``(3) in making the determination, consider one or more 
        factors, including the quality, size, scope, and location of 
        the program and the opportunity of eligible children to 
        participate.''.
    (d) Capital Expenses.--Effective September 30, 2002, subsection (e) 
of section 1120 (20 U.S.C. 6321(e)) is hereby repealed.

SEC. 118. COORDINATION REQUIREMENTS.

    Section 1120B (20 U.S.C. 6323 et seq.) is amended--
            (1) in subsection (a), by striking ``to the extent 
        feasible'' and all that follows through the period and 
        inserting ``with local Head Start agencies, and if feasible, 
        other early childhood development programs.'';
            (2) in subsection (b)--
                    (A) in paragraph (3) by striking ``and'' after the 
                semicolon;
                    (B) in paragraph (4) by striking the period and 
                inserting ``; and''; and
                    (C) by adding at the end, the following:
            ``(5) linking the educational services provided in such 
        local educational agency with the services provided in local 
        Head Start agencies.''.

SEC. 119. GRANTS FOR THE OUTLYING AREAS AND THE SECRETARY OF THE 
              INTERIOR.

    Section 1121 is amended to read as follows:

``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 in the amount determined in 
        accordance with subsection (b); and
            ``(2) the Secretary of the Interior in the amount necessary 
        to make payments pursuant to subsection (d).
    ``(b) Assistance to Outlying Areas.--
            ``(1) Funds reserved.--From the amount made available for 
        any fiscal year under subsection (a), the Secretary shall award 
        grants to the outlying areas.
            ``(2) Competitive grants.--For fiscal years 2000 and 2001, 
        the Secretary shall carry out the competition described in 
        paragraph (3), except that the amount reserved to carry out 
        such competition shall not exceed the amount reserved under 
        this section for the freely associated states for fiscal year 
        1999.
            ``(3) Limitation for competitive grants.--
                    ``(A) Competitive grants.--The Secretary shall use 
                funds described in paragraph (2) to award grants, on a 
                competitive basis, to the outlying areas and freely 
                associated States to carry out the purposes of this 
                part.
                    ``(B) Award basis.--The Secretary shall award 
                grants under subparagraph (A) on a competitive basis, 
                pursuant to the recommendations of the Pacific Region 
                Educational Laboratory in Honolulu, Hawaii.
                    ``(C) Termination of eligibility.--Notwithstanding 
                any other provision of law, the freely associated 
                States shall not receive any funds under this part 
                after September 30, 2001.
                    ``(D) Administrative costs.--The Secretary may 
                provide not more than five percent of the amount 
                reserved for grants under this paragraph to pay the 
                administrative costs of the Pacific Region Educational 
                Laboratory under subparagraph (B).
            ``(4) Special rule.--The provisions of Public Law 95-134, 
        permitting the consolidation of grants by the outlying areas, 
        shall not apply to funds provided to the freely associated 
        States under this section.
    ``(c) Definitions.--For the purposes of subsection (a) and (b)--
            ``(1) the term `freely associated States' means the 
        Republic of the Marshall Islands, the Federated States of 
        Micronesia, and the Republic of Palau; and
            ``(2) the term `outlying area' means the United States 
        Virgin Islands, Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands.
    ``(d) 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. 120. AMOUNTS FOR GRANTS.

    Section 1122 (20 U.S.C. 6332 et seq.) is amended to read as 
follows:

``SEC. 1122. AMOUNTS FOR BASIC GRANTS, CONCENTRATION GRANTS, AND 
              TARGETED GRANTS.

    ``(a) Allocation Formula.--Of the amount authorized to be 
appropriated to carry out this part for each of fiscal years 2000 
through 2004 (referred to in this subsection as the current fiscal 
year)--
            ``(1) an amount equal to the amount appropriated to carry 
        out section 1124 for fiscal year 1999 plus 42.5 percent of the 
        amount, if any, by which the amount appropriated under section 
        1002(a) for the current fiscal year exceeds the amount 
        appropriated under such section for fiscal year 1999 shall be 
        allocated in accordance with section 1124;
            ``(2) an amount equal to the amount appropriated to carry 
        out section 1124A for fiscal year 1999 plus 7.5 percent of the 
        amount, if any, by which the amount appropriated under section 
        1002(a) for the current fiscal year exceeds the amount 
        appropriated under such section for fiscal year 1999 shall be 
        allocated in accordance with section 1124A; and
            ``(3) an amount equal to 50 percent of the amount, if any, 
        by which the amount appropriated under section 1002(a) for the 
        current fiscal year exceeds the amount appropriated under such 
        section for fiscal year 1999 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) Amounts for sections 1124 and 1125.--For each fiscal 
        year, the amount made available to each local educational 
        agency under each of sections 1124 and 1125 shall be--
                    ``(A) not less than 95 percent of the amount made 
                available in the preceding fiscal year if the number of 
                children counted for grants under section 1124 is not 
                less than 30 percent of the total number of children 
                aged 5 to 17 years, inclusive, in the local educational 
                agency;
                    ``(B) not less than 90 percent of the amount made 
                available in the preceding fiscal year if the 
                percentage described in subparagraph (A) is between 15 
                percent and 30 percent; and
                    ``(C) not less than 85 percent of the amount made 
                available in the preceding fiscal year if the 
                percentage described in subparagraph (A) is below 15 
                percent.
            ``(2) Amount for section 1124A.--The amount made available 
        to each local educational agency under section 1124A shall be 
        not less than 85 percent of the amount made available in the 
        preceding fiscal year.
            ``(3) Payments.--If sufficient funds are appropriated, the 
        amounts described in paragraph (2) shall be paid to all local 
        educational agencies that received grants under section 1124A 
        for the preceding fiscal year, regardless of whether the local 
        educational agency meets the minimum eligibility criteria for 
        that fiscal year provided in section 1124A(a)(1)(A) except that 
        a local educational agency that does not meet such minimum 
        eligibility criteria for 4 consecutive years shall no longer be 
        eligible to receive a hold harmless amount referred to in 
        paragraph (2).
            ``(4) Population data.--In any fiscal year for which the 
        Secretary calculates grants on the basis of population data for 
        counties, the Secretary shall apply the hold harmless 
        percentages in paragraphs (1) and (2) to counties, and if the 
        Secretary's allocation for a county is not sufficient to meet 
        the hold-harmless requirements of this subsection for every 
        local educational agency within that county, 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 subsection.
    ``(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 were 
        reduced.
    ``(e) Definition.--For the purpose of this section and sections 
1124, 1124A, and 1125, the term `State' means each of the 50 States, 
the District of Columbia, and the Commonwealth of Puerto Rico.''.

SEC. 121. BASIC GRANTS TO LOCAL EDUCATIONAL AGENCIES.

    Section 1124 (20 U.S.C. 6333 et seq.) is amended to read as 
follows:

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

    ``(a) Amount of Grants.--
            ``(1) Grants for local educational agencies and puerto 
        rico.--Except as provided in paragraph (4) and in section 1126, 
        the grant that a local educational agency is eligible to 
        receive under this section for a fiscal year is the amount 
        determined by multiplying--
                    ``(A) the number of children counted under 
                subsection (c); and
                    ``(B) 40 percent of the average per-pupil 
                expenditure in the State, except that the amount 
                determined under this subparagraph shall not be less 
                than 32 percent or more than 48 percent, of the average 
                per-pupil expenditure in the United States.
            ``(2) Calculation of grants.--
                    ``(A) Allocations to local educational agencies.--
                The Secretary shall calculate grants under this section 
                on the basis of the number of children counted under 
                subsection (c) for local educational agencies, unless 
                the Secretary and the Secretary of Commerce determine 
                that some or all of those data are unreliable or that 
                their use would be otherwise inappropriate, in which 
                case--
                            ``(i) the 2 Secretaries shall publicly 
                        disclose the reasons for their determination in 
                        detail; and
                            ``(ii) paragraph (3) shall apply.
                    ``(B) Allocations to large and small local 
                educational agencies.--(i) For any fiscal year in which 
                this paragraph applies, the Secretary shall calculate 
                grants under this section for each local educational 
                agency.
                    ``(ii) The amount of a grant under this section for 
                each large local educational agency shall be the amount 
                determined under clause (i).
                    ``(iii) For small local educational agencies, the 
                State educational agency may either--
                            ``(I) distribute grants under this section 
                        in amounts determined by the Secretary under 
                        clause (i); or
                            ``(II) use an alternative method approved 
                        by the Secretary to distribute the portion of 
                        the State's total grants under this section 
                        that is based on those small agencies.
                    ``(iv) An alternative method under clause (iii)(II) 
                shall be based on population data that the State 
                educational agency determines best reflect the current 
                distribution of children in poor families among the 
                State's small local educational agencies that meet the 
                eligibility criteria of subsection (b).
                    ``(v) If a small local educational agency is 
                dissatisfied with the determination of its grant by the 
                State educational agency under clause (iii)(II), it may 
                appeal that determination to the Secretary, who shall 
                respond not later than 45 days after receipt of such 
                appeal.
                    ``(vi) As used in this subparagraph--
                            ``(I) the term `large local educational 
                        agency' means a local educational agency 
                        serving an area with a total population of 
                        20,000 or more; and
                            ``(II) the term `small local educational 
                        agency' means a local educational agency 
                        serving an area with a total population of less 
                        than 20,000.
            ``(3) Allocations to counties.--
                    ``(A) Calculation.--For any fiscal year to which 
                this paragraph applies, the Secretary shall calculate 
                grants under this section 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 issued by the Secretary.
            ``(B) Direct allocations.--In any State in which a large 
        number of local educational agencies overlap county boundaries, 
        or for which the State believes it has data that would better 
        target funds than allocating them by county, the State 
        educational agency may apply to the Secretary for authority to 
        make the allocations under this part for a particular fiscal 
        year directly to local educational agencies without regard to 
        counties.
            ``(C) Assurances.--If the Secretary approves the State 
        educational agency's application under subparagraph (B), the 
        State educational agency shall provide the Secretary an 
        assurance that such allocations shall be made--
                    ``(i) using precisely the same factors for 
                determining a grant as are used under this part; or
                    ``(ii) using data that the State educational agency 
                submits to the Secretary for approval that more 
                accurately target poverty.
            ``(D) Appeal.--The State educational agency shall provide 
        the Secretary an assurance that it shall establish a procedure 
        through which a local educational agency that is dissatisfied 
        with its determinations under subparagraph (B) may appeal 
        directly to the Secretary for a final determination.
            ``(4) Puerto rico.--
                    ``(A) In general.--For each fiscal year, the grant 
                which the Commonwealth of Puerto Rico shall be eligible 
                to receive under this section shall be the amount 
                determined by multiplying the number of children 
                counted under subsection (c) for the Commonwealth of 
                Puerto Rico by the product of--
                    ``(i) 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; and
                    ``(ii) 32 percent of the average per pupil 
                expenditure in the United States.
            ``(B) Minimum percentage.--The percentage in subparagraph 
        (A)(i) shall not be less than--
                    ``(i) for fiscal year 2000, 75.0 percent;
                    ``(ii) for fiscal year 2001, 77.5 percent;
                    ``(iii) for fiscal year 2002, 80.0 percent;
                    ``(iv) for fiscal year 2003, 82.5 percent;
                    ``(v) for fiscal year 2004 and succeeding fiscal 
                years, 85.0 percent.
            ``(C) Limitation.--If the application of subparagraph (B) 
        would result in any of the 50 States or the District of 
        Columbia receiving less under this part than it received under 
        this part for the preceding fiscal year, the percentage in 
        subparagraph (A) shall be the greater of the percentage in 
        subparagraph (A)(i) or the percentage used for the preceding 
        fiscal year.
            ``(5) Definition.--For purposes of this subsection, the 
        term `State' does not include Guam, American Samoa, the Virgin 
        Islands, and the Northern Mariana Islands.
    ``(b) Minimum Number of Children To Qualify.--A local educational 
agency is eligible for a basic grant under this section for any fiscal 
year only if the number of children counted under subsection (c) for 
that agency is both--
            ``(1) 10 or more; and
            ``(2) more than 2 percent of the total school-age 
        population in the agency's jurisdiction.
    ``(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); and
                    ``(B) the number of children (determined under 
                paragraph (4) for either the preceding year as 
                described in that paragraph, or for the second 
                preceding year, as the Secretary finds appropriate) 
                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. 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 2001 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 local educational agencies or 
        counties, 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. 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 publicly 
        disclose their reasons. 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) Other children to be counted.--The Secretary shall 
        determine the number of children aged 5 through 17 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 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. For the purpose of this section, the Secretary shall 
        consider all children who are in correctional institutions to 
        be living in institutions for delinquent children.
            ``(5) 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.
    ``(d) State Minimum.--Notwithstanding 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. 122. CONCENTRATION GRANTS.

    Section 1124A (20 U.S.C. 6334 et seq.) is amended to read as 
follows:

``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, and the Commonwealth 
        of the Northern Mariana Islands, which is eligible for a grant 
        under section 1124 for any fiscal year is eligible for an 
        additional grant under this section for that fiscal year if the 
        number of children counted under section 1124(c) in the agency 
        exceeds either--
                    ``(i) 6,500; or
                    ``(ii) 15 percent of the total number of children 
                aged 5 through 17 in the agency.
            ``(B) Notwithstanding 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 that 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) Local allocations.--(A) Grant amounts under this 
        section shall be determined in accordance with section 
        1124(a)(2) and (3).
            ``(B) For any fiscal year for which the Secretary allocates 
        funds under this section on the basis of counties, a State may 
        reserve not more than 2 percent of its allocation under this 
        section to make grants to local educational agencies that meet 
        the criteria of paragraph (1)(A)(i) or (ii) but that are in 
        ineligible counties that do not meet these criteria.
    ``(b) 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. 123. TARGETED GRANTS.

    Section 1125 (20 U.S.C 6335 et seq.) is amended to read as follows:

``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. For each fiscal year 
for which the Secretary uses county population data to calculate 
grants, 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 paragraph 1124(a)(1)(B).
            ``(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)(4).
    ``(c) Weighted Child Count.--
            ``(1) Weights for allocations to counties.--
                    ``(A) In general.--For each fiscal year for which 
                the Secretary uses county population data to calculate 
                grants, 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 weighted child count 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) Weights for allocations to local educational 
        agencies.--
                    ``(A) In general.--For each fiscal year 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 weighted child count 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) Calculation of Grant Amounts.--Grants under this section 
shall be calculated in accordance with section 1124(a)(2) and (3).
    ``(e) State Minimum.--Notwithstanding any other provision of this 
section or 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. 124. SPECIAL ALLOCATION PROCEDURES.

    Section 1126 (20 U.S.C. 6337 et seq.) is amended to read as 
follows:

``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 (B) of section 1124(c)(1), 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. 125. SECULAR, NEUTRAL, AND NONIDEOLOGICAL.

    Part A is amended by adding at the end the following:

``SEC. 1128. SECULAR, NEUTRAL, AND NONIDEOLOGICAL.

    ``Any school that receives funds under this part shall ensure that 
educational services or other benefits provided under this part, 
including materials and equipment, shall be secular, neutral, and 
nonideological.''.

                PART B--EDUCATION OF MIGRATORY CHILDREN

SEC. 131. STATE ALLOCATIONS.

    Section 1303 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6393) is amended--
    (1) by amending subsection (a) to read as follows:
    ``(a) State Allocations.--
            ``(1) Fiscal year 2000.--For fiscal year 2000, each State 
        (other than the Commonwealth of Puerto Rico) is entitled to 
        receive under this part an amount equal to--
                    ``(A) 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
                    ``(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, nor more than 48 percent, of the average 
                expenditure per pupil in the United States.
            ``(2) Subsequent years.--
                    ``(A) Base amount.--
                            ``(i) In general.--Except as provided in 
                        subsection (b) and clause (ii), each State is 
                        entitled to receive under this part, for fiscal 
                        year 2001 and succeeding fiscal years, an 
                        amount equal to--
                                    ``(I) the amount that such State 
                                received under this part for fiscal 
                                year 2000; plus
                                    ``(II) the amount allocated to the 
                                State under subparagraph (B).
                            ``(ii) Nonparticipating states.--In the 
                        case of a State (other than the Commonwealth of 
                        Puerto Rico) that did not receive any funds for 
                        fiscal year 2000 under this part, the State 
                        shall receive, for fiscal year 2001 and 
                        succeeding fiscal years, an amount equal to--
                                    ``(I) the amount that such State 
                                would have received under this part for 
                                fiscal year 2000 if its application 
                                under section 1304 for the year had 
                                been approved; plus
                                    ``(II) the amount allocated to the 
                                State under subparagraph (B).
                    ``(B) Allocation of additional amount.--For fiscal 
                year 2001 and succeeding fiscal years, the amount (if 
                any) by which the funds appropriated to carry out this 
                part for the year exceed such funds for fiscal year 
                2000 shall be allocated to a State (other than the 
                Commonwealth of Puerto Rico) so that the State receives 
                an amount equal to--
                            ``(i) the sum of--
                                    ``(I) the number of identified 
                                eligible migratory children, aged 3 
                                through 21, residing in the State 
                                during the previous year; and
                                    ``(II) the number of identified 
                                eligible migratory children, aged 3 
                                through 21, who received services under 
                                this part in summer or intersession 
                                programs provided by the State during 
                                such year; multiplied by
                            ``(ii) 40 percent of the average per-pupil 
                        expenditure in the State, except that the 
                        amount determined under this clause may not be 
                        less than 32 percent, or more than 48 percent, 
                        of the average expenditure per-pupil in the 
                        United States.'';
            (2) by amending subsection (b) to read as follows:
    ``(b) Allocation to Puerto Rico.--
            ``(1) Fiscal year 2000.--For fiscal year 2000, the grant 
        which the Commonwealth of Puerto Rico shall be eligible to 
        receive under this section shall be the amount determined by 
        multiplying the number of children counted under subsection 
        (a)(1)(A) for the Commonwealth of Puerto Rico by the product 
        of--
                    ``(A) 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; and
                    ``(B) 32 percent of the average per pupil 
                expenditure in the United States.
            ``(2) Subsequent fiscal years.--For each fiscal year after 
        fiscal year 2000, the grant which the Commonwealth of Puerto 
        Rico shall be eligible to receive under this section shall be 
        the amount determined by multiplying the number of children 
        counted under subsection (a)(2)(B)(i)(I) and (a)(2)(B)(i)(II) 
        for the Commonwealth of Puerto Rico during the previous fiscal 
        year, by the product of--
                    ``(A) 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; and
                    ``(B) 32 percent of the average per pupil 
                expenditure in the United States.
            ``(3) Minimum allocation.--
                    ``(A) Fiscal year 2000.--The percentage in 
                paragraph (1)(A) shall not be less than 75.0 percent.
                    ``(B) Subsequent fiscal years.--The percentage in 
                paragraph (2)(A) shall not be less than--
                            ``(i) for fiscal year 2001, 77.5 percent;
                            ``(ii) for fiscal year 2002, 80.0 percent;
                            ``(iii) for fiscal year 2003, 82.5 percent; 
                        and
                            ``(iv) for fiscal year 2004 and succeeding 
                        fiscal years, 85.0 percent.
            ``(4) Special rule.--If the application of paragraph (3) 
        would result in any of the 50 States or the District of 
        Columbia receiving less under this part than it recieved under 
        this part for the preceding fiscal year, the percentage in 
        paragraph (1) or (2), respectively, shall be the greater of the 
        percentage in paragraph (1)(A) or (2)(A) the percentage used 
        for the preceding fiscal year.''; and
            (3) by striking subsections (d) and (e).

SEC. 132. STATE APPLICATIONS; SERVICES.

    (a) Program Information.--Section 1304(b) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6394(b)) is amended--
            (1) in paragraph (1), by striking ``addressed through'' and 
        all that follows through the semicolon at the end and inserting 
        the following:
        ``addressed through--
                    ``(A) the full range of services that are available 
                for migratory children from appropriate local, State, 
                and Federal educational programs;
                    ``(B) joint planning among local, State, and 
                Federal educational programs serving migrant children, 
                including programs under parts A and C of title VII;
                    ``(C) the integration of services available under 
                this part with services provided by those other 
                programs; and
                    ``(D) measurable program goals and outcomes;'';
            (2) in paragraph (5), by striking ``the requirements of 
        paragraph (1); and'' and inserting ``the numbers and needs of 
        migratory children, the requirements of subsection (d), and the 
        availability of funds from other Federal, State, and local 
        programs;'';
            (3) in paragraph (6), by striking the period at the end and 
        inserting ``; and''; and
            (4) by adding at the end the following:
            ``(7) a description of how the State will encourage 
        programs and projects assisted under this part to offer family 
        literacy services if the program or project serves a 
        substantial number of migratory children who have parents who 
        do not have a high school diploma or its recognized equivalent 
        or who have low levels of literacy.''.
    (b) Assurances.--Section 1304(c) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6394(c)) is amended--
            (1) in paragraph (1), by striking ``1306(b)(1);'' and 
        inserting ``1306(a);'';
            (2) in paragraph (3)--
                    (A) by striking ``appropriate'';
                    (B) by striking ``out, to the extent feasible,'' 
                and inserting ``out''; and
                    (C) by striking ``1118;'' and inserting ``1118, 
                unless extraordinary circumstances make implementation 
                consistent with such section impractical;''; and
            (3) in paragraph (7), by striking ``section 1303(e)'' and 
        inserting ``paragraphs (1)(A) and (2)(B)(i) of section 
        1303(a)''.

SEC. 133. AUTHORIZED ACTIVITIES.

    Section 1306 of the Elementary and Secondary Education Act of 1965 
(20 U.S.C. 6396) is amended to read as follows:

``SEC. 1306. AUTHORIZED ACTIVITIES.

    ``(a) In General.--
            ``(1) Flexibility.--Each State educational agency, through 
        its local educational agencies, shall have the flexibility to 
        determine the activities to be provided with funds made 
        available under this part, except that such funds shall first 
        be used to meet the identified needs of migratory children that 
        result from their migratory lifestyle, and to permit these 
        children to participate effectively in school.
            ``(2) Unaddressed needs.--Funds provided under this part 
        shall be used to address the needs of migratory children that 
        are not addressed by services available from other Federal or 
        non-Federal programs, except that migratory children who are 
        eligible to receive services under part A of this title may 
        receive those services through funds provided under that part, 
        or through funds under this part that remain after the agency 
        addresses the needs described in paragraph (1).
    ``(b) Construction.--Nothing in this part shall be construed to 
prohibit a local educational agency from serving migratory children 
simultaneously with students with similar educational needs in the same 
educational settings, where appropriate.
    ``(c) Special Rule.--Notwithstanding section 1114, a school that 
receives funds under this part shall continue to address the identified 
needs described in subsection (a)(1).''.

SEC. 134. COORDINATION OF MIGRANT EDUCATION ACTIVITIES.

    (a) Duration.--Section 1308(a)(2) of the Elementary and Secondary 
Education Act of 1965 (20 U.S.C. 6398(a)(2)) is amended by striking 
``subpart'' and inserting ``subsection''.
    (b) Student Records.--Section 1308(b) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6398(b)) is amended to read 
as follows:
    ``(b) Student Records.--
            ``(1) Assistance.--The Secretary shall assist States in 
        developing effective methods for the transfer of student 
        records and in determining the number of migratory children in 
        each State. The Secretary, in consultation with the States, 
        shall determine the minimum data elements for records to be 
        maintained and transferred when funds under this part are used 
        for such purpose. The Secretary may assist States to implement 
        a system of electronic records maintenance and transfer for 
        migrant students.
            ``(2) No cost for certain transfers.--A State educational 
        agency or local educational agency receiving assistance under 
        this part shall make student records available to another local 
        educational agency that requests the records at no cost to the 
        requesting agency, if the request is made in order to meet the 
        needs of a migratory child.''.
    (c) Availability of Funds.--Section 1308(c) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6398(c)) is amended by 
striking ``$6,000,000'' and inserting ``$10,000,000''.
    (d) Incentive Grants.--Section 1308(d) of the Elementary and 
Secondary Education Act of 1965 (20 U.S.C. 6398(d)) is amended to read 
as follows:
    ``(d) Incentive Grants.--From the amounts made available to carry 
out this section for any fiscal year, the Secretary may reserve not 
more than $3,000,000 to award grants of not more than $250,000 on a 
competitive basis to State educational agencies that propose a 
consortium arrangement with another State or other appropriate entity 
that the Secretary determines, pursuant to criteria that the Secretary 
shall establish, will improve the delivery of services to migratory 
children whose education is interrupted.''.

                 PART C--NEGLECTED OR DELINQUENT YOUTH

SEC. 141. NEGLECTED OR DELINQUENT YOUTH.

    The heading for part D of title I is amended to read as follows:

    ``PART D--PREVENTION AND INTERVENTION PROGRAMS FOR NEGLECTED OR 
                    DELINQUENT CHILDREN AND YOUTH''.

SEC. 142. FINDINGS.

    Section 1401(a) is amended--
            (1) in paragraph (3), by striking the following 
        ``Preventing students from dropping out of local schools and 
        addressing'' and inserting ``Addressing'';
            (2) by striking paragraphs (6) through (9) and adding the 
        following:
            ``(6) Youth returning from correctional facilities need to 
        be involved in programs that provide them with high level 
        skills and other support to help them stay in school and 
        complete their education.''.

SEC. 143. ALLOCATION OF FUNDS.

    Section 1412(b) is amended to read as follows:
    ``(b) Subgrants to State Agencies in Puerto Rico.--
            ``(1) In general.--For each fiscal year, the amount of the 
        subgrant for which a State agency in the Commonwealth of Puerto 
        Rico shall be eligible to receive under this part shall be the 
        amount determined by multiplying the number of children counted 
        under subparagraph (a)(1)(A) for the Commonwealth of Puerto 
        Rico by the product of--
                    ``(A) 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; and
                    ``(B) 32 percent of the average per pupil 
                expenditure in the United States.
            ``(2) Minimum allocation.--The percentage in paragraph 
        (1)(A) shall not be less than--
                    ``(A) for fiscal year 2000, 75.0 percent;
                    ``(B) for fiscal year 2001, 77.5 percent;
                    ``(C) for fiscal year 2002, 80.0 percent;
                    ``(D) for fiscal year 2003, 82.5 percent; and
                    ``(E) for fiscal year 2004 and succeeding fiscal 
                years, 85.0 percent.
            ``(3) Special rule.--If the application of paragraph (2) 
        would result in any of the 50 States or the District of 
        Columbia receiving less under this part than it received under 
        this part for the preceding fiscal year, the percentage in 
        paragraph (1) shall be the greater of the percentage in 
        paragraph (1)(A) or the percentage used for the preceding 
        fiscal year.''.

SEC. 144. STATE PLAN AND STATE AGENCY APPLICATIONS.

    Section 1414 is amended to read as follows:

``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 educational 
        needs of neglected and delinquent youth, for assisting in their 
        transition from institutions to locally operated programs, and 
        which is integrated with other programs under this 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 and technical 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 or title I of the 
        Workforce Investment Act of 1998, vocational and technical 
        education programs, State and local dropout prevention 
        programs, and special education programs;
            ``(9) describes how States will encourage correctional 
        facilities receiving funds under this subpart to coordinate 
        with local educational agencies or alternative education 
        programs attended by incarcerated youth prior to their 
        incarceration to ensure that student assessments and 
        appropriate academic records are shared jointly between the 
        correctional facility and the local educational agency or 
        alternative education program;
            ``(10) describes how appropriate professional development 
        will be provided to teachers and other staff;
            ``(11) 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;
            ``(12) describes how the agency will, endeavor to 
        coordinate with businesses for training and mentoring for 
        participating youth;
            ``(13) 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;
            ``(14) 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;
            ``(15) 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;
            ``(16) 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;
            ``(17) 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;
            ``(18) describes any additional services provided to youth, 
        such as career counseling, distance learning, and assistance in 
        securing student loans and grants; and
            ``(19) 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. 145. USE OF FUNDS.

    Section 1415(a) is amended--
            (1) in paragraph (1)(B), by inserting ``and vocational and 
        technical training'' after ``secondary school completion''; and
            (2) in paragraph (2)(B)--
                    (A) in clause (i), by inserting ``and'' after the 
                semicolon;
                    (B) in clause (ii), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking clause (iii).

SEC. 146. PURPOSE.

    Section 1421 is amended by striking paragraph (3) and inserting the 
following:
            ``(3) operate programs for youth returning from 
        correctional facilities in local schools which may also serve 
        youth at risk of dropping out of school.''.

SEC. 147. TRANSITION SERVICES.

    Section 1418(a) is amended by striking ``10 percent'' and inserting 
``15 percent''.

SEC. 148. PROGRAMS OPERATED BY LOCAL EDUCATIONAL AGENCIES.

    Section 1422 is amended--
            (1) in subsection (a), by striking ``retained''.
            (2) by amending subsection (b) to read as follows:
    ``(b) Special Rule.--A local educational agency which includes a 
correctional facility that operates a school is not required to operate 
a program of support for children returning from such school to a 
school not operated by a correctional agency but served by such local 
educational agency if more than 30 percent of the youth attending the 
school operated by the correctional facility will reside outside the 
boundaries of the local educational agency after leaving such 
facility.''.
            (3) by adding at the end of section 1422 the following:
    ``(d) Transitional and Academic Services.--Transitional and 
supportive programs operated in local educational agencies under this 
subpart shall be designed primarily to meet the transitional and 
academic needs of students returning to local educational agencies or 
alternative education programs from correctional facilities. Services 
to students at risk of dropping out of school shall not have a negative 
impact on meeting the transitional and academic needs of the students 
returning from correctional facilities.''.

SEC. 149. LOCAL EDUCATIONAL AGENCY APPLICATIONS.

    Section 1423 is amended by striking paragraphs (4) through (9) and 
inserting the following:
            ``(4) a description of the program operated by 
        participating schools for children returning from correctional 
        facilities and the types of services that such schools will 
        provide such youth and other at-risk youth;
            ``(5) a description of the youth returning from 
        correctional facilities and, as appropriate, other at-risk 
        youth expected to be served by the program and how the school 
        will coordinate existing educational programs to meet the 
        unique educational needs of such youth;
            ``(6) as appropriate, a description of how schools will 
        coordinate with existing social and other services to meet the 
        needs of students returning from correctional facilities and 
        other participating students;
            ``(7) as appropriate, a description of any partnerships 
        with local businesses to develop training, curriculum-based 
        youth entrepreneurship education and mentoring services for 
        participating students;
            ``(8) as appropriate, a description of how programs will 
        involve parents in efforts to improve the educational 
        achievement of their children, prevent the involvement of their 
        children in delinquent activities, and encourage their children 
        to remain in school and complete their education;
            ``(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 Partnership 
        Act or title I of the Workforce Investment Act of 1998 and 
        vocational and technical education programs serving this at-
        risk population of youth.''.

SEC. 150. USES OF FUNDS.

    Section 1424 is amended by striking paragraphs (1) through (3) and 
inserting the following:
            ``(1) programs that serve youth returning from correctional 
        facilities to local schools to assist in the transition of such 
        youth to the school environment and help them remain in school 
        in order to complete their education;
            ``(2) providing assistance to other youth at risk of 
        dropping out of school;
            ``(3) the coordination of social and other services for 
        participating youth if the provision of such services will 
        improve the likelihood that such youth will complete their 
        education;
            ``(4) special programs to meet the unique academic needs of 
        participating youth, including vocational and technical 
        education, special education, career counseling, curriculum-
        based youth entrepreneurship education, and assistance in 
        securing student loans or grants for postsecondary education; 
        and
            ``(5) programs providing mentoring and peer mediation.''.

SEC. 151. PROGRAM REQUIREMENTS.

    Section 1425 is amended--
            (1) in paragraph (1), by striking ``where feasible, ensure 
        educational programs'' and inserting the following: ``to the 
        extent practicable, ensure that educational programs'';
            (2) in paragraph (3), by striking ``where feasible,'' and 
        inserting the following: ``to the extent practicable,'';
            (3) in paragraph (8), by striking ``where feasible,'' and 
        inserting the following: ``to the extent practicable,'';
            (4) in paragraph (9), by inserting ``and technical'' after 
        ``vocational''; and
            (5) by amending paragraph (11) to read as follows:
            ``(11) if appropriate, work with local businesses to 
        develop training, curriculum-based youth entrepreneurship 
        education, and mentoring programs for youth.''.

SEC. 152. ACCOUNTABILITY.

    Section 1426(1) is amended by striking ``male students and for 
female students'' and inserting ``students''.

SEC. 153. PROGRAM EVALUATIONS.

    Section 1431(a) is amended by striking ``sex, and if feasible,'' 
and inserting ``gender,''.

                       PART D--GENERAL PROVISIONS

SEC. 161. GENERAL PROVISIONS.

    Part F of title I is amended to read as follows:

                      ``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, paraprofessionals, 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 three key issues, including--
                            ``(i) accountability;
                            ``(ii) implementation of assessments;
                            ``(iii) use of paraprofessionals;
                    ``(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 regulations that 
                shall be provided to the individuals selected by the 
                Secretary under subparagraph (B) 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 1 year after the date of the 
                enactment of the Student Results Act of 1999; 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 within 
        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. AGREEMENTS AND RECORDS.

    ``(a) Agreements.--All published proposed regulations shall conform 
to agreements that result from negotiated rulemaking described in 
section 1601 unless the Secretary reopens the negotiated rulemaking 
process or provides a written explanation to the participants involved 
in the process explaining why the Secretary decided to depart from and 
not adhere to such agreements.
    ``(b) Records.--The Secretary shall ensure that an accurate and 
reliable record of agreements reached during the negotiations process 
is maintained.

``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;
                    ``(C) eliminate or modify State and local fiscal 
                accounting requirements in order to facilitate the 
                ability of schools to consolidate funds under 
                schoolwide programs; and
                    (D) 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 
        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, including the administrators 
                of programs described in other parts of this title;
                    ``(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.

``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.

``SEC. 1605. APPLICABILITY TO HOME SCHOOLS.

    ``Nothing in this Act shall be construed to affect home schools.

``SEC. 1606. 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. 1607. LOCAL ADMINISTRATIVE COST LIMITATION.

    ``(a) Local Administrative Cost Limitation.--Each local educational 
agency may use not more than 4 percent of funds received under part A 
for administrative expenses.
    ``(b) Regulations.--The Secretary, after consulting with State and 
local officials and other experts in school finance, shall develop and 
issue regulations that define the term administrative cost for purposes 
of this title. Such definition shall be consistent with generally 
accepted accounting principles. The Secretary shall publish final 
regulations on this section not later than 1 year after the date of 
enactment of the Student Results Act of 1999.

``SEC. 1608. PROHIBITION ON MANDATORY NATIONAL CERTIFICATION OF 
              TEACHERS AND PARAPROFESSIONALS.

    ``(a) Prohibition on Mandatory Testing or Certification.--
Notwithstanding any other provision of law, the Secretary is prohibited 
from using Federal funds to plan, develop, implement, or administer any 
mandatory national teacher or paraprofessional test or certification.
    ``(b) Prohibition on Withholding Funds.--The Secretary is 
prohibited from withholding funds from any State or local educational 
agency if such State or local educational agency fails to adopt a 
specific method of teacher or paraprofessional certification.

``SEC. 1609. GAO STUDIES.

    ``(a) Study on Paraprofessionals.--The General Accounting Office 
shall conduct a study of paraprofessionals under part A of title I.
    ``(b) Study on Portability.--The General Accounting Office shall 
conduct a study regarding how funds made available under this title 
could follow a child from school to school.
    ``(c) Study on Electronic Transfer of Migrant Student Records.--The 
General Accounting Office shall conduct a study on the feasibility of 
electronically transferring and maintaining migrant student records.
    ``(d) Evaluation by General Accounting Office.--Not later than 
October 1, 2001, the Comptroller General shall conduct a comprehensive 
analysis and evaluation regarding the impact on this title of 
individual waivers for schools, local educational agency waivers, and 
statewide waivers granted pursuant to the Education Flexibility 
Partnership Act of 1999 (20 U.S.C. 589a et seq.). The Comptroller 
General shall submit a report to the Committee on Education and the 
Workforce of the House of Representatives. In conducting such analysis 
and evaluation, the Comptroller General shall consider the following 
factors:
            ``(1) Consistency.--The extent to which the State's 
        educational flexibility plan is consistent with 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) State waivers.--Evaluate the effect that waivers of 
        State law have on addressing the needs and the performance of 
        students in schools subject to this title.
            ``(3) Allocation of funds.--The extent to which waivers 
        have affected the allocation of funds to schools, including 
        schools with the highest concentrations of poverty, and schools 
        with the highest educational needs, that are eligible to 
        receive funds under this title.

``SEC. 1610. DEFINITIONS.

    ``For purposes of this title--
            ``(1) The term `Secretary' means the Secretary of 
        Education.
            ``(2) Fully qualified.--The term `fully qualified'--
                    ``(A) when used with respect to a public elementary 
                or secondary school teacher (other than a teacher 
                teaching in a public charter school), means that the 
                teacher has obtained State certification as a teacher 
                (including certification obtained through alternative 
                routes to certification) or passed the State teacher 
                licensing exam and holds a license to teach in such 
                State; and
                    ``(B) when used with respect to --
                            ``(i) an elementary school teacher, means 
                        that the teacher holds a bachelor's degree and 
                        demonstrates knowledge and teaching skills in 
                        reading, writing, mathematics, science, and 
                        other areas of the elementary school 
                        curriculum; or
                            ``(ii) a middle or secondary school 
                        teacher, means that the teacher holds a 
                        bachelor's degree and demonstrates a high level 
                        of competency in all subject areas in which he 
                        or she teaches through--
                                    ``(I) a high level of performance 
                                on a rigorous State or local academic 
                                subject areas test; or
                                    ``(II) completion of an academic 
                                major in each of the subject areas in 
                                which he or she provides instruction.
            ``(3) The term `scientifically-based research'--
                    ``(A) means the application of rigorous, 
                systematic, and objective procedures; and
                    ``(B) shall include research that--
                            ``(i) employs systematic, empirical methods 
                        that draw on observation or experiment;
                            ``(ii) involves rigorous data analyses that 
                        are adequate to test the stated hypotheses and 
                        justify the general conclusions drawn;
                            ``(iii) relies on measurements or 
                        observational methods that provide valid data 
                        across evaluators and observers and across 
                        multiple measurements and observations; and
                            ``(iv) has been accepted by a peer-reviewed 
                        journal or approved by a panel of independent 
                        experts through a comparably rigorous, 
                        objective, and scientific review.

``SEC. 1611. PAPERWORK REDUCTION.

    ``(a) Findings.--The Congress finds that--
            ``(1) instruction and other classroom activities provide 
        the greatest opportunity for students, especially at-risk and 
        disadvantaged students, to attain high standards and achieve 
        academic success;
            ``(2) one of the greatest obstacles to establishing an 
        effective, classroom-centered education system is the cost of 
        paperwork compliance;
            ``(3) paperwork places a burden on teachers and 
        administrators who must complete Federal and State forms to 
        apply for Federal funds and absorbs time and money which 
        otherwise would be spent on students;
            ``(4) the Education at a Crossroads Report released in 1998 
        by the Education Subcommittee on Oversight and Investigations 
        states that requirements by the Department of Education result 
        in more than 48.6 million hours of paperwork per year; and
            ``(5) paperwork distracts from the mission of schools, 
        encumbers teachers and administrators with nonacademic 
        responsibilities, and competes with teaching and classroom 
        activities which promote learning and achievement.
    ``(b) Sense of Congress.--It is the sense of the Congress that 
Federal and State educational agencies should reduce the paperwork 
requirements placed on schools, teachers, principals, and other 
administrators.''.

                  PART E--COMPREHENSIVE SCHOOL REFORM

SEC. 171. COMPREHENSIVE SCHOOL REFORM.

    Title I is amended by adding at the end the following:

                 ``PART G--COMPREHENSIVE SCHOOL REFORM

``SEC. 1701. COMPREHENSIVE SCHOOL REFORM.

    ``(a) Findings and Purpose.--
            ``(1) Findings.--Congress finds the following:
                    ``(A) A number of schools across the country have 
                shown impressive gains in student performance through 
                the use of comprehensive models for schoolwide change 
                that incorporate virtually all aspects of school 
                operations.
                    ``(B) No single comprehensive school reform model 
                may be suitable for every school, however, schools 
                should be encouraged to examine successful, externally 
                developed comprehensive school reform approaches as 
                they undertake comprehensive school reform.
                    ``(C) Comprehensive school reform is an important 
                means by which children are assisted in meeting 
                challenging State student performance standards.
            ``(2) Purpose.--The purpose of this section is to provide 
        financial incentives for schools to develop comprehensive 
        school reforms, based upon scientifically-based research and 
        effective practices that include an emphasis on basic academics 
        and parental involvement so that all children can meet 
        challenging State content and performance standards.
    ``(b) Program Authorized.--
            ``(1) In general.--The Secretary is authorized to provide 
        grants to State educational agencies to provide subgrants to 
        local educational agencies to carry out the purpose described 
        in subsection (a)(2).
            ``(2) Allocation.--
                    ``(A) Reservation.--Of the amount appropriated 
                under this section, the Secretary may reserve--
                            ``(i) not more than 1 percent for schools 
                        supported by the Bureau of Indian Affairs and 
                        in the United States Virgin Islands, Guam, 
                        American Samoa, and the Commonwealth of the 
                        Northern Mariana Islands; and
                            ``(ii) not more than 1 percent to conduct 
                        national evaluation activities described under 
                        subsection (e).
                    ``(B) In general.--Of the amount of funds remaining 
                after the reservation under subparagraph (A), the 
                Secretary shall allocate to each State for a fiscal 
                year, an amount that bears the same ratio to the amount 
                appropriated for that fiscal year as the amount made 
                available under section 1124 to the State for the 
                preceding fiscal year bears to the total amount 
                allocated under section 1124 to all States for that 
                year.
                    ``(C) Reallocation.--If a State does not apply for 
                funds under this section, the Secretary shall 
                reallocate any such funds to other States that the 
                Secretary considers in need of additional funds to 
                carry out the purposes of this section.
    ``(c) State Awards.--
            ``(1) State application.--
                    ``(A) In general.--Each State educational agency 
                that desires to receive a grant under this section 
                shall submit an application to the Secretary at such 
                time, in such manner and containing such other 
                information as the Secretary may reasonably require.
                    ``(B) Contents.--Each State application shall also 
                describe--
                            ``(i) the process and selection criteria by 
                        which the State educational agency, using 
                        expert review, will select local educational 
                        agencies to receive subgrants under this 
                        section.
                            ``(ii) how the agency will ensure that only 
                        comprehensive school reforms that are based on 
                        scientifically-based research receive funds 
                        under this section;
                            ``(iii) how the agency will disseminate 
                        materials regarding information on 
                        comprehensive school reforms that are based on 
                        scientifically-based research;
                            ``(iv) how the agency will evaluate the 
                        implementation of such reforms and measure the 
                        extent to which the reforms resulted in 
                        increased student academic performance; and
                            ``(v) how the agency will provide, upon 
                        request, technical assistance to the local 
                        educational agency in evaluating, developing, 
                        and implementing comprehensive school reform.
            ``(2) Uses of funds.--
                    ``(A) In general.--Except as provided in 
                subparagraph (E), a State educational agency that 
                receives an award under this section shall use such 
                funds to provide competitive grants to local 
                educational agencies receiving funds under part A.
                    ``(B) Grant requirements.--A grant to a local 
                educational agency shall be--
                            ``(i) of sufficient size and scope to 
                        support the initial costs for the particular 
                        comprehensive school reform plan selected or 
                        designed by each school identified in the 
                        application of the local educational agency;
                            ``(ii) in an amount not less than $50,000 
                        to each participating school; and
                            ``(iii) renewable for 2 additional 1-year 
                        periods after the initial 1-year grant is made 
                        if schools are making substantial progress in 
                        the implementation of their reforms.
                    ``(C) Priority.--The State, in awarding grants 
                under this paragraph, shall give priority to local 
                educational agencies that--
                            ``(i) plan to use the funds in schools 
                        identified as being in need of improvement or 
                        corrective action under section 1116(c); and
                            ``(ii) demonstrate a commitment to assist 
                        schools with budget allocation, professional 
                        development, and other strategies necessary to 
                        ensure the comprehensive school reforms are 
                        properly implemented and are sustained in the 
                        future.
                    ``(D) Grant consideration.--In making subgrant 
                awards under this part, the State educational agency 
                shall take into account the equitable distribution of 
                awards to different geographic regions within the 
                State, including urban and rural areas, and to schools 
                serving elementary and secondary students.
                    ``(E) Administrative Costs.--A State educational 
                agency that receives a grant award under this section 
                may reserve not more than 5 percent of such award for 
                administrative, evaluation, and technical assistance 
                expenses.
                    ``(F) Supplement.--Funds made available under this 
                section shall be used to supplement, not supplant, any 
                other Federal, State, or local funds that would 
                otherwise be available to carry out this section.
            ``(3) Reporting.--Each State educational agency that 
        receives an award under this section shall provide to the 
        Secretary such information as the Secretary may require, 
        including the names of local educational agencies and schools 
        selected to receive subgrant awards under this section, the 
        amount of such award, and a description of the comprehensive 
        school reform model selected and in use.
    ``(d) Local Awards.--
            ``(1) In general.--Each local educational agency that 
        applies for a subgrant under this section shall--
                    ``(A) identify which schools eligible for funds 
                under part A plan to implement a comprehensive school 
                reform program, including the projected costs of such a 
                program;
                    ``(B) describe the scientifically-based 
                comprehensive school reforms that such schools will 
                implement;
                    ``(C) describe how the agency will provide 
                technical assistance and support for the effective 
                implementation of the scientifically-based school 
                reforms selected by such schools; and
                    ``(D) describe how the agency will evaluate the 
                implementation of such reforms and measure the results 
                achieved in improving student academic performance.
            ``(2) Components of the program.--A local educational 
        agency that receives a subgrant award under this section shall 
        provide such funds to schools that implement a comprehensive 
        school reform program that--
                    ``(A) employs innovative strategies and proven 
                methods for student learning, teaching, and school 
                management that are based on scientifically-based 
                research and effective practices and have been 
                replicated successfully in schools with diverse 
                characteristics;
                    ``(B) integrates a comprehensive design for 
                effective school functioning, including instruction, 
                assessment, classroom management, professional 
                development, parental involvement, and school 
                management, that aligns the school's curriculum, 
                technology, professional development into a 
                comprehensive reform plan for schoolwide change 
                designed to enable all students to meet challenging 
                State content and challenging student performance 
                standards and addresses needs identified through a 
                school needs assessment;
                    ``(C) provides high-quality and continuous teacher 
                and staff professional development;
                    ``(D) includes measurable goals for student 
                performance and benchmarks for meeting such goals;
                    ``(E) is supported by teachers, principals, 
                administrators, and other professional staff;
                    ``(F) provides for the meaningful involvement of 
                parents and the local community in planning and 
                implementing school improvement activities;
                    ``(G) uses high quality external technical support 
                and assistance from an entity, which may be an 
                institution of higher education, with experience and 
                expertise in schoolwide reform and improvement;
                    ``(H) includes a plan for the evaluation of the 
                implementation of school reforms and the student 
                results achieved; and
                    ``(I) identifies how other resources, including 
                Federal, State, local, and private resources, available 
                to the school will be used to coordinate services to 
                support and sustain the school reform effort.
            ``(3) Special rule.--A school that receives funds to 
        develop a comprehensive school reform program shall not be 
        limited to using the approaches identified or developed by the 
        Department of Education, but may develop its own comprehensive 
        school reform programs for schoolwide change that comply with 
        paragraph (2).
    ``(e) Evaluation and Report.--
            ``(1) In general.--The Secretary shall develop a plan for a 
        national evaluation of the programs developed pursuant to this 
        section.
            ``(2) Evaluation.--This national evaluation shall evaluate 
        the implementation and results achieved by schools after 3 
        years of implementing comprehensive school reforms, and assess 
        the effectiveness of comprehensive school reforms in schools 
        with diverse characteristics.
            ``(3) Reports.--Prior to the completion of a national 
        evaluation, the Secretary shall submit an interim report 
        outlining first year implementation activities to the 
        Committees on Education and the Workforce and Appropriations of 
        the House of Representatives and the Committees on Health, 
        Education, Labor, and Pensions and Appropriations of the 
        Senate.
    ``(f) Definition.--The term `scientifically-based research'--
            ``(1) means the application of rigorous, systematic, and 
        objective procedures in the development of comprehensive school 
        reform models; and
            ``(2) shall include research that--
                    ``(A) employs systematic, empirical methods that 
                draw on observation or experiment;
                    ``(B) involves rigorous data analyses that are 
                adequate to test the stated hypotheses and justify the 
                general conclusions drawn;
                    ``(C) relies on measurements or observational 
                methods that provide valid data across evaluators and 
                observers and across multiple measurements and 
                observations; and
                    ``(D) has been accepted by a peer-reviewed journal 
                or approved by a panel of independent experts through a 
                comparably rigorous, objective, and scientific review.
    ``(g) Authorization of Appropriations.--There are authorized to 
carry out this section $175,000,000 for fiscal year 2000 and such sums 
as may be necessary for each of the 4 succeeding fiscal years.

      TITLE II--MAGNET SCHOOLS ASSISTANCE AND PUBLIC SCHOOL CHOICE

SEC. 201. MAGNET SCHOOLS ASSISTANCE.

    Title V of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7201 et seq.) is amended to read a follows:

     ``TITLE V--MAGNET SCHOOLS ASSISTANCE AND PUBLIC SCHOOL CHOICE

                   ``PART A--MAGNET SCHOOL 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 2,000,000 students nationwide now 
        attending such schools, of which more than 65 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 select 
                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 voluntarily 
                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 technologically oriented 
                society and a highly competitive economy;
                    ``(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; and
                    ``(D) ensure that grant recipients provide adequate 
                data which demonstrates an ability to improve student 
                achievement.

``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 that promote diversity and increase 
        choices in public elementary and secondary schools and 
        educational programs; 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 
        and technical 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 
                improve student academic performance for all students 
                attending the magnet schools; 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 fully qualified teachers (as defined 
                in section 1119) in the courses of instruction assisted 
                under this part;
                    ``(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.

``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; and
            ``(3) propose to select students to attend magnet school 
        projects by methods such as lottery, rather than through 
        academic examination.

``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 fully qualified (as defined in section 1119), and 
        instructional staff where applicable, who are necessary for the 
        conduct of programs in magnet schools;
            ``(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; and
            ``(5) for activities, which may include professional 
        development, that will build the recipient's capacity to 
        operate magnet school programs once the grant period has ended.
    ``(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' academic performance based on the State's 
challenging content standards and challenging student performance 
standards or 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 and 
technical 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 July 1 of the 
applicable fiscal year.

``SEC. 5111. EVALUATIONS.

    ``(a) Reservation.--The Secretary may reserve not more than two 
percent of the funds appropriated under section 5112(a) for any fiscal 
year to carry out evaluations, technical assistance, and dissemination 
projects with respect to magnet school projects and programs 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. 5112. 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 
2000 and such sums as may be necessary for each of fiscal years 2001 
through 2004.
    ``(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--PUBLIC SCHOOL CHOICE

``SEC. 5201. SHORT TITLE.

    ``This part may be cited as the `Public School Choice Act of 1999'.

``SEC. 5202. FINDINGS AND PURPOSE.

    ``(a) Findings.--The Congress finds that--
            ``(1) a wide variety of educational opportunities, options, 
        and choices in the public school system is needed to help all 
        children achieve to high standards;
            ``(2) high-quality public school choice programs that are 
        genuinely open and accessible to all students (including poor, 
        minority, limited English proficient, and disabled students) 
        broaden educational opportunities and promote excellence in 
        education;
            ``(3) current research shows that--
                    ``(A) students learn in different ways, benefiting 
                from different teaching methods and instructional 
                settings; and
                    ``(B) family involvement in a child's education is 
                a key factor supporting student achievement;
            ``(4) public school systems have begun to develop a variety 
        of innovative programs that offer expanded choices to parents 
        and students; and
            ``(5) the Federal Government should support and expand 
        efforts to give students and parents the high-quality public 
        school choices they seek, to help eliminate barriers to 
        effective public school choice, and to disseminate the lessons 
        learned from high-quality choice programs so that all public 
        schools can benefit from these efforts.
    ``(b) Purpose.--It is the purpose of this part to identify and 
support innovative approaches to high-quality public school choice by 
providing financial assistance for the demonstration, development, 
implementation, and evaluation of, and dissemination of information 
about, public school choice projects that stimulate educational 
innovation for all public schools and contribute to standards-based 
school reform efforts.

``SEC. 5203. GRANTS.

    ``(a) In General.--From funds appropriated under section 5206(a) 
and not reserved under section 5206(b), the Secretary is authorized to 
make grants to State and local educational agencies to support programs 
that promote innovative approaches to high-quality public school 
choice.
    ``(b) Duration.--Grants under this part shall not exceed three 
years.

``SEC. 5204. USES OF FUNDS.

    ``(a) In General--
            ``(1) Public school choice.--Funds under this part may be 
        used to demonstrate, develop, implement, evaluate, and 
        disseminate information on innovative approaches to promote 
        public school choice, including the design and development of 
        new public school choice options, the development of new 
        strategies for overcoming barriers to effective public school 
        choice, and the design and development of public school choice 
        systems that promote high standards for all students and the 
        continuous improvement of all public schools.
            ``(2) Innovative approaches.--Such approaches at the 
        school, local educational agency, and State levels may 
        include--
                    ``(A) inter-district approaches to public school 
                choice, including approaches that increase equal access 
                to high-quality educational programs and diversity in 
                schools;
                    ``(B) public elementary and secondary programs that 
                involve partnerships with institutions of higher 
                education and that are located on the campuses of those 
                institutions;
                    ``(C) programs that allow students in public 
                secondary schools to enroll in postsecondary courses 
                and to receive both secondary and postsecondary 
                academic credit;
                    ``(D) worksite satellite schools, in which State or 
                local educational agencies form partnerships with 
                public or private employers, to create public schools 
                at parents' places of employment; and
                    ``(E) approaches to school desegregation that 
                provide students and parents choice through strategies 
                other than magnet schools.
    ``(b) Limitations.--Funds under this part--
            ``(1) shall supplement, and not supplant, non-Federal funds 
        expended for existing programs;
            ``(2) may not be used for transportation; and
            ``(3) may not be used to fund projects that are 
        specifically authorized under part A of title V, or part C of 
        title X.

``SEC. 5205. GRANT APPLICATION; PRIORITIES.

    ``(a) Application Required.--A State or local educational agency 
desiring to receive a grant under this part shall submit an application 
to the Secretary.
    ``(b) Application Contents.--Each application shall include--
            ``(1) a description of the program for which funds are 
        sought and the goals for such program;
            ``(2) a description of how the program funded under this 
        part will be coordinated with, and will complement and enhance, 
        programs under other related Federal and non-Federal projects;
            ``(3) if the program includes partners, the name of each 
        partner and a description of the partner's responsibilities;
            ``(4) a description of the policies and procedures the 
        applicant will use to ensure--
                    ``(A) its accountability for results, including its 
                goals and performance indicators; and
                    ``(B) that the program is open and accessible to, 
                and will promote high academic standards for, all 
                students; and
            ``(5) such other information as the Secretary may require.
    ``(c) Priorities.--
            ``(1) High-poverty agencies.--The Secretary shall give a 
        priority to applications for projects that would serve high-
        poverty local educational agencies.
            ``(2) Partnerships.--The Secretary may give a priority to 
        applications demonstrating that the applicant will carry out 
        its project in partnership with one or more public and private 
        agencies, organizations, and institutions, including 
        institutions of higher education and public and private 
        employers.

``SEC. 5206. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--For the purpose of carrying out this part, there 
are authorized to be appropriated $20,000,000 for fiscal year 2000 and 
such sums as may be necessary for each of the 4 succeeding fiscal 
years.
    ``(b) Reservation for Evaluation, Technical Assistance, and 
Dissemination.--From the amount appropriated under subsection (a) for 
any fiscal year, the Secretary may reserve not more than 5 percent to 
carry out evaluations under subsection (c), to provide technical 
assistance, and to disseminate information.
    ``(c) Evaluations.--The Secretary may use funds reserved under 
subsection (b) to carry out one or more evaluations of programs 
assisted under this part, which shall, at a minimum, address--
            ``(1) how, and the extent to which, the programs supported 
        with funds under this part promote educational equity and 
        excellence; and
            ``(2) the extent to which public schools of choice 
        supported with funds under this part are--
                    ``(A) held accountable to the public;
                    ``(B) effective in improving public education; and
                    ``(C) open and accessible to all students.

``SEC. 5207. DEFINITIONS.

    ``For purposes of this part:
            ``(1) High-poverty local educational agency.--The term 
        `high-poverty local educational agency' means a local 
        educational agency in which--
                    ``(A) the percentage of children, ages 5 to 17, 
                from families with incomes below the 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 (42 U.S.C. 
                9902(2))) applicable to a family of the size involved 
                for the most recent fiscal year for which satisfactory 
                data are available is 20 percent or greater; or
                    ``(B) the number of such children exceeds 10,000.
            ``(2) Other terms.--Other terms used in this part shall 
        have the meaning given such terms in section 14101 (20 U.S.C. 
        8801).''.

SEC. 202. CONTINUATION OF AWARDS.

    Notwithstanding the amendment made by section 201, any local 
educational agency or consortium of such agencies that was awarded a 
grant under section 5111 of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 7211) prior to the date of the enactment of this Act 
shall continue to receive funds in accordance with the terms of such 
award until the date on which the award period terminates under such 
terms.

                TITLE III--TEACHER LIABILITY PROTECTION

SEC. 301. TEACHER LIABILITY PROTECTION.

    The Elementary and Secondary Education Act of 1965 (20 U.S.C 6301 
et seq.) is amended by adding at the end the following:

                ``TITLE XV--TEACHER LIABILITY PROTECTION

``SEC. 15001. SHORT TITLE.

    ``This title may be cited as the `Teacher Liability Protection Act 
of 1999'.

``SEC. 15002. FINDINGS AND PURPOSE.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) The ability of teachers, principals and other school 
        professionals to teach, inspire and shape the intellect of our 
        Nation's elementary and secondary school students is deterred 
        and hindered by frivolous lawsuits and litigation.
            ``(2) Each year more and more teachers, principals and 
        other school professionals face lawsuits for actions undertaken 
        as part of their duties to provide millions of school children 
        quality educational opportunities.
            ``(3) Too many teachers, principals and other school 
        professionals face increasingly severe and random acts of 
        violence in the classroom and in schools.
            ``(4) Providing teachers, principals and other school 
        professionals a safe and secure environment is an important 
        part of the effort to improve and expand educational 
        opportunities.
            ``(5) Clarifying and limiting the liability of teachers, 
        principals and other school professionals who undertake 
        reasonable actions to maintain order, discipline and an 
        appropriate educational environment is an appropriate subject 
        of Federal legislation because--
                    ``(A) the scope of the problems created by the 
                legitimate fears of teachers, principals and other 
                school professionals about frivolous, arbitrary or 
                capricious lawsuits against teachers is of national 
                importance; and
                    ``(B) millions of children and their families 
                across the Nation depend on teachers, principals and 
                other school professionals for the intellectual 
                development of children.
    ``(b) Purpose.--The purpose of this title is to provide teachers, 
principals and other school professionals the tools they need to 
undertake reasonable actions to maintain order, discipline and an 
appropriate educational environment.

``SEC. 15003. PREEMPTION AND ELECTION OF STATE NONAPPLICABILITY.

    ``(a) Preemption.--This title preempts the laws of any State to the 
extent that such laws are inconsistent with this title, except that 
this title shall not preempt any State law that provides additional 
protection from liability relating to teachers.
    ``(b) Election of State Regarding Nonapplicability.--This title 
shall not apply to any civil action in a State court against a teacher 
in which all parties are citizens of the State if such State enacts a 
statute in accordance with State requirements for enacting 
legislation--
            ``(1) citing the authority of this subsection;
            ``(2) declaring the election of such State that this title 
        shall not apply, as of a date certain, to such civil action in 
        the State; and
            ``(3) containing no other provisions.

``SEC. 15004. LIMITATION ON LIABILITY FOR TEACHERS.

    ``(a) Liability Protection for Teachers.--Except as provided in 
subsections (b) and (c), no teacher in a school shall be liable for 
harm caused by an act or omission of the teacher on behalf of the 
school if--
            ``(1) the teacher was acting within the scope of the 
        teacher's employment or responsibilities related to providing 
        educational services;
            ``(2) the actions of the teacher were carried out in 
        conformity with local, state, or federal laws, rules or 
        regulations in furtherance of efforts to control, discipline, 
        expel, or suspend a student or maintain order or control in the 
        classroom or school;
            ``(3) if appropriate or required, the teacher was properly 
        licensed, certified, or authorized by the appropriate 
        authorities for the activities or practice in the State in 
        which the harm occurred, where the activities were or practice 
        was undertaken within the scope of the teacher's 
        responsibilities;
            ``(4) the harm was not caused by willful or criminal 
        misconduct, gross negligence, reckless misconduct, or a 
        conscious, flagrant indifference to the rights or safety of the 
        individual harmed by the teacher; and
            ``(5) the harm was not caused by the teacher operating a 
        motor vehicle, vessel, aircraft, or other vehicle for which the 
        State requires the operator or the owner of the vehicle, craft, 
        or vessel to--
                    ``(A) possess an operator's license; or
                    ``(B) maintain insurance.
    ``(b) Concerning Responsibility of Teachers to Schools and 
Governmental Entities.--Nothing in this section shall be construed to 
affect any civil action brought by any school or any governmental 
entity against any teacher of such school.
    ``(c) Exceptions to Teacher Liability Protection.--If the laws of a 
State limit teacher liability subject to one or more of the following 
conditions, such conditions shall not be construed as inconsistent with 
this section:
            ``(1) A State law that requires a school or governmental 
        entity to adhere to risk management procedures, including 
        mandatory training of teachers.
            ``(2) A State law that makes the school or governmental 
        entity liable for the acts or omissions of its teachers to the 
        same extent as an employer is liable for the acts or omissions 
        of its employees.
            ``(3) A State law that makes a limitation of liability 
        inapplicable if the civil action was brought by an officer of a 
        State or local government pursuant to State or local law.
    ``(d) Limitation on Punitive Damages Based on the Actions of 
Teachers.--
            ``(1) General rule.--Punitive damages may not be awarded 
        against a teacher in an action brought for harm based on the 
        action of a teacher acting within the scope of the teacher's 
        responsibilities to a school or governmental entity unless the 
        claimant establishes by clear and convincing evidence that the 
        harm was proximately caused by an action of such teacher which 
        constitutes willful or criminal misconduct, or a conscious, 
        flagrant indifference to the rights or safety of the individual 
        harmed.
            ``(2) Construction.--Paragraph (1) does not create a cause 
        of action for punitive damages and does not preempt or 
        supersede any Federal or State law to the extent that such law 
        would further limit the award of punitive damages.
    ``(e) Exceptions to Limitations on Liability.--
            ``(1) In general.--The limitations on the liability of a 
        teacher under this title shall not apply to any misconduct 
        that--
                    ``(A) constitutes a crime of violence (as that term 
                is defined in section 16 of title 18, United States 
                Code) or act of international terrorism (as that term 
                is defined in section 2331 of title 18, United States 
                Code) for which the defendant has been convicted in any 
                court;
                    ``(B) involves a sexual offense, as defined by 
                applicable State law, for which the defendant has been 
                convicted in any court;
                    ``(C) involves misconduct for which the defendant 
                has been found to have violated a Federal or State 
                civil rights law; or
                    ``(D) where the defendant was under the influence 
                (as determined pursuant to applicable State law) of 
                intoxicating alcohol or any drug at the time of the 
                misconduct.
            ``(2) Rule of construction.--Nothing in this subsection 
        shall be construed to effect subsection (a)(3) or (d).

``SEC. 15005. LIABILITY FOR NONECONOMIC LOSS.

    ``(a) General Rule.--In any civil action against a teacher, based 
on an action of a teacher acting within the scope of the teacher's 
responsibilities to a school or governmental entity, the liability of 
the teacher for noneconomic loss shall be determined in accordance with 
subsection (b).
    ``(b) Amount of Liability.--
            ``(1) In general.--Each defendant who is a teacher, shall 
        be liable only for the amount of noneconomic loss allocated to 
        that defendant in direct proportion to the percentage of 
        responsibility of that defendant (determined in accordance with 
        paragraph (2)) for the harm to the claimant with respect to 
        which that defendant is liable. The court shall render a 
        separate judgment against each defendant in an amount 
        determined pursuant to the preceding sentence.
            ``(2) Percentage of responsibility.--For purposes of 
        determining the amount of noneconomic loss allocated to a 
        defendant who is a teacher under this section, the trier of 
        fact shall determine the percentage of responsibility of that 
        defendant for the claimant's harm.

``SEC. 15006. DEFINITIONS.

    For purposes of this title:
            ``(1) Economic loss.--The term `economic loss' means any 
        pecuniary loss resulting from harm (including the loss of 
        earnings or other benefits related to employment, medical 
        expense loss, replacement services loss, loss due to death, 
        burial costs, and loss of business or employment opportunities) 
        to the extent recovery for such loss is allowed under 
        applicable State law.
            ``(2) Harm.--The term `harm' includes physical, 
        nonphysical, economic, and noneconomic losses.
            ``(3) Noneconomic losses.--The term `noneconomic losses' 
        means losses for physical and emotional pain, suffering, 
        inconvenience, physical impairment, mental anguish, 
        disfigurement, loss of enjoyment of life, loss of society and 
        companionship, loss of consortium (other than loss of domestic 
        service), hedonic damages, injury to reputation and all other 
        nonpecuniary losses of any kind or nature.
            ``(4) School.--The term `school' means a public or private 
        kindergarten, a public or private elementary school or 
        secondary school (as defined in section 14101, or a home 
        school.
            ``(5) State.--The term `State' means each of the several 
        States of the United States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        Guam, American Samoa, the Commonwealth of the Northern Mariana 
        Islands, any other territory or possession of the United 
        States, or any political subdivision of any such State, 
        territory, or possession.
            ``(6) Teacher.--The term `teacher' means a teacher, 
        instructor, principal, administrator, or other educational 
        professional that works in a school, a local school board and 
        any member of such board, and a local educational agency and 
        any employee of such agency.

``SEC. 15007. EFFECTIVE DATE.

    ``(a) In General.--This title shall take effect 90 days after the 
date of enactment of the Student Results Act of 1999.
    ``(b) Application.--This title applies to any claim for harm caused 
by an act or omission of a teacher if that claim is filed on or after 
the effective date of the Student Results Act of 1999, without regard 
to whether the harm that is the subject of the claim or the conduct 
that caused the harm occurred before such effective date.''.

     TITLE IV--INDIAN, NATIVE HAWAIIAN, AND ALASKA NATIVE EDUCATION

       Subtitle A--Elementary and Secondary Education Act of 1965

SEC. 401. AMENDMENTS.

    Part A of title IX of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7801 et seq.) is amended to read as follows:

                       ``PART A--INDIAN EDUCATION

``SEC. 9101. FINDINGS.

    ``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 unique 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; 9 percent of Indian students who were eighth graders in 
        1988 had 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 unique 
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 other students.
    ``(b) Programs.--This part carries out the purpose described in 
subsection (a) by authorizing programs of direct assistance for--
            ``(1) meeting the unique 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 in meeting 
        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 
        9117 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; or
                    ``(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 not 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, except that any such tribe is not subject to 
        section 9114(c)(4), section 9118(c), or section 9119.

``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 9117 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), 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 
        subpart.
            ``(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 the quality of the programs provided.
    ``(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.--(1) Subject to subsection (e), in addition to the grants 
awarded under subsection (a), the Secretary shall allocate to the 
Secretary of the Interior an amount equal to the product of--
            ``(A) the total number of Indian children enrolled in 
        schools that are operated by--
                    ``(i) the Bureau of Indian Affairs; or
                    ``(ii) an Indian tribe, or an organization 
                controlled or sanctioned by an Indian tribal 
                government, for the children of that 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; and
            ``(B) the greater of--
                    ``(i) the average per-pupil expenditure of the 
                State in which the school is located; or
                    ``(ii) 80 percent of the average per-pupil 
                expenditure in the United States.
    ``(2) Any school described in paragraph (1)(A) that wishes to 
receive an allocation under this subpart shall submit an application in 
accordance with section 9114, and shall otherwise be treated as a local 
educational agency for the purpose of this subpart, except that such 
school shall not be subject to section 9114(c)(4), section 9118(c), or 
section 9119.
    ``(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 State and local plans under 
        other provisions 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 under 
        title I;
            ``(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 comprehensive local assessment 
                and prioritization of the unique educational and 
                culturally related academic needs of the American 
                Indian and Alaska Native students to 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) a majority of whose members are 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 Indian 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 program 
        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) career preparation activities to enable Indian 
        students to participate in programs such as the programs 
        supported by the Carl D. Perkins Vocational and Technical 
        Education Act of 1998, including programs for tech-prep, 
        mentoring, and apprenticeship;
            ``(6) activities to educate individuals concerning 
        substance abuse and to prevent substance abuse;
            ``(7) the acquisition of equipment, but only if the 
        acquisition of the equipment is essential to meet the purposes 
        described in section 9111; and
            ``(8) family literacy services.
    ``(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 
        purposes described in section 9111.
    ``(d) Limitation on Administrative Costs.--Not more than 5 percent 
of the funds provided to a grantee under this subpart for any fiscal 
year may be used for administrative purposes.

``SEC. 9116. INTEGRATION OF SERVICES AUTHORIZED.

    ``(a) Plan.--An entity receiving funds under this subpart may 
submit a plan to the Secretary for the integration of education and 
related services provided to Indian students.
    ``(b) Coordination of Programs.--Upon the receipt of an acceptable 
plan, the Secretary, in cooperation with each Federal agency providing 
grants for the provision of education and related services to the 
applicant, shall authorize the applicant to coordinate, in accordance 
with such plan, its federally funded education and related services 
programs, or portions thereof, serving Indian students in a manner that 
integrates the program services involved into a single, coordinated, 
comprehensive program and reduces administrative costs by consolidating 
administrative functions.
    ``(c) Programs Affected.--The funds that may be consolidated in a 
demonstration project under any such plan referred to in subsection (b) 
shall include any Federal program, or portion thereof, under which the 
applicant is eligible for receipt of funds under a statutory or 
administrative formula for the purposes of providing education and 
related services which would be used to serve Indian students.
    ``(d) Plan Requirements.--For a plan to be acceptable pursuant to 
subsection (b), it shall--
            ``(1) identify the programs or funding sources to be 
        consolidated;
            ``(2) be consistent with the purposes of this section 
        authorizing the services to be integrated in a demonstration 
        project;
            ``(3) describe a comprehensive strategy which identifies 
        the full range of potential educational opportunities and 
        related services to be provided to assist Indian students to 
        achieve the goals set forth in this subpart;
            ``(4) describe the way in which services are to be 
        integrated and delivered and the results expected from the 
        plan;
            ``(5) identify the projected expenditures under the plan in 
        a single budget;
            ``(6) identify the local, State, or tribal agency or 
        agencies to be involved in the delivery of the services 
        integrated under the plan;
            ``(7) identify any statutory provisions, regulations, 
        policies, or procedures that the applicant believes need to be 
        waived in order to implement its plan;
            ``(8) set forth measures of student achievement and 
        performance goals designed to be met within a specified period 
        of time; and
            ``(9) be approved by a parent committee formed in 
        accordance with section 9114(c)(4), if such a committee exists.
    ``(e) Plan Review.--Upon receipt of the plan from an eligible 
entity, the Secretary shall consult with the Secretary of each Federal 
department providing funds to be used to implement the plan, and with 
the entity submitting the plan. The parties so consulting shall 
identify any waivers of statutory requirements or of Federal 
departmental regulations, policies, or procedures necessary to enable 
the applicant to implement its plan. Notwithstanding any other 
provision of law, the Secretary of the affected department or 
departments shall have the authority to waive any regulation, policy, 
or procedure promulgated by that department that has been so identified 
by the applicant or department, unless the Secretary of the affected 
department determines that such a waiver is inconsistent with the 
intent of this subpart or those provisions of the statute from which 
the program involved derives its authority which are specifically 
applicable to Indian students.
    ``(f) Plan Approval.--Within 90 days after the receipt of an 
applicant's plan by the Secretary, the Secretary shall inform the 
applicant, in writing, of the Secretary's approval or disapproval of 
the plan. If the plan is disapproved, the applicant shall be informed, 
in writing, of the reasons for the disapproval and shall be given an 
opportunity to amend its plan or to petition the Secretary to 
reconsider such disapproval.
    ``(g) Responsibilities of Department of Education.--Not later than 
180 days after the date of enactment of the Student Results Act of 
1999, the Secretary of Education, the Secretary of the Interior, and 
the head of any other Federal department or agency identified by the 
Secretary of Education, shall enter into an interdepartmental 
memorandum of agreement providing for the implementation of the 
demonstration projects authorized under this section. The lead agency 
head for a demonstration program under this section shall be--
            ``(1) the Secretary of the Interior, in the case of 
        applicant meeting the definition of contract or grant school 
        under title XI of the Education Amendments of 1978; or
            ``(2) the Secretary of Education, in the case of any other 
        applicant.
    ``(h) Responsibilities of Lead Agency.--The responsibilities of the 
lead agency shall include--
            ``(1) the use of a single report format related to the plan 
        for the individual project which shall be used by an eligible 
        entity to report on the activities undertaken under the 
        project;
            ``(2) the use of a single report format related to the 
        projected expenditures for the individual project which shall 
        be used by an eligible entity to report on all project 
        expenditures;
            ``(3) the development of a single system of Federal 
        oversight for the project, which shall be implemented by the 
        lead agency; and
            ``(4) the provision of technical assistance to an eligible 
        entity appropriate to the project, except that an eligible 
        entity shall have the authority to accept or reject the plan 
        for providing such technical assistance and the technical 
        assistance provider.
    ``(i) Report Requirements.--A single report format shall be 
developed by the Secretary, consistent with the requirements of this 
section. Such report format, together with records maintained on the 
consolidated program at the local level, shall contain such information 
as will allow a determination that the eligible entity has complied 
with the requirements incorporated in its approved plan, including the 
demonstration of student achievement, and will provide assurances to 
each Secretary that the eligible entity has complied with all directly 
applicable statutory requirements and with those directly applicable 
regulatory requirements which have not been waived.
    ``(j) No Reduction in Amounts.--In no case shall the amount of 
Federal funds available to an eligible entity involved in any 
demonstration project be reduced as a result of the enactment of this 
section.
    ``(k) Interagency Fund Transfers Authorized.--The Secretary is 
authorized to take such action as may be necessary to provide for an 
interagency transfer of funds otherwise available to an eligible entity 
in order to further the purposes of this section.
    ``(l) Administration of Funds.--
            ``(1) In general.--Program funds shall be administered in 
        such a manner as to allow for a determination that funds from 
        specific a program or programs are spent on allowable 
        activities authorized under such program, except that the 
        eligible entity shall determine the proportion of the funds 
        granted which shall be allocated to such program.
            ``(2) Separate records not required.--Nothing in this 
        section shall be construed as requiring the eligible entity to 
        maintain separate records tracing any services or activities 
        conducted under its approved plan to the individual programs 
        under which funds were authorized, nor shall the eligible 
        entity be required to allocate expenditures among such 
        individual programs.
    ``(m) Overage.--All administrative costs may be commingled and 
participating entities shall be entitled to the full amount of such 
costs (under each program or department's regulations), and no overage 
shall be counted for Federal audit purposes, provided that the overage 
is used for the purposes provided for under this section.
    ``(n) Fiscal Accountability.--Nothing in this part shall be 
construed so as to interfere with the ability of the Secretary or the 
lead agency to fulfill the responsibilities for the safeguarding of 
Federal funds pursuant to the Single Audit Act of 1984.
    ``(o) Report on Statutory Obstacles to Program Integration.--
            ``(1) Preliminary report.--Not later than 2 years after the 
        date of the enactment of the Student Results Act of 1999, the 
        Secretary of Education shall submit a preliminary report to the 
        Committee on Health, Education, Labor, and Pensions of the 
        Senate and the Committee on Education and the Workforce of the 
        House of Representatives on the status of the implementation of 
        the demonstration program authorized under this section.
            ``(2) Final report.--Not later than 5 years after the date 
        of the enactment of the Student Results Act of 1999, the 
        Secretary of Education shall submit a report to the Committee 
        on Health, Education, Labor, and Pensions of the Senate and the 
        Committee on Education and the Workforce of the House of 
        Representatives on the results of the implementation of the 
        demonstration program authorized under this section. Such 
        report shall identify statutory barriers to the ability of 
        participants to integrate more effectively their education and 
        related services to Indian students in a manner consistent with 
        the purposes of this section.
    ``(p) Definitions.--For the purposes of this section, the term 
`Secretary' means--
            ``(1) the Secretary of the Interior, in the case of 
        applicant meeting the definition of contract or grant school 
        under title XI of the Education Amendments of 1978; or
            ``(2) the Secretary of Education, in the case of any other 
        applicant.

``SEC. 9117. 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 described in section 9161(3)) 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 the tribe 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 
                described in section 9161(3)) 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 the 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 part; 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 (a) shall 
        not be counted for the purpose of computing the amount of a 
        grant under section 9113.
    ``(g) Tribal Grant and Contract Schools.--Notwithstanding any other 
provision of this section, in awarding funds under this subpart to a 
tribal school that receives a grant or contract from the Bureau of 
Indian Affairs, the Secretary shall use only one of the following, as 
selected by the school:
            ``(1) A count of the number of students in those schools 
        certified by the Bureau.
            ``(2) A count of the number of students for whom the school 
        has eligibility forms that comply with this section.
    ``(h) Timing of Child Counts.--For purposes of determining the 
number of children to be counted in calculating the amount of a local 
educational agency's grant under this subpart (other than in the case 
described in subsection (g)(1)), the local educational agency shall--
            ``(1) establish a date on, or a period not longer than 31 
        consecutive days during which, the agency counts those 
        children, so long as that date or period occurs before the 
        deadline established by the Secretary for submitting an 
        application under section 9114; and
            ``(2) determine that each such child was enrolled, and 
        receiving a free public education, in a school of the agency on 
        that date or during that period, as the case may be.

``SEC. 9118. 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 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, 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 to maintain effort.--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 1 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. 9119. STATE EDUCATIONAL AGENCY REVIEW.

    ``Before submitting an application to the Secretary under section 
9114, a local educational agency shall submit the application to the 
State educational agency, which may comment on such application. If the 
State educational agency comments on the application, it shall comment 
on all applications submitted by local educational agencies in the 
State and shall provide those comments to the respective local 
educational agencies, with an opportunity to respond.

   ``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 disadvantaged 
                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 unique 
                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 career preparation programs 
                designed to provide Indian youth with the knowledge and 
                skills such youth need to make an effective transition 
                from school to 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;
                    ``(K) family literacy services; or
                    ``(L) other services that meet the purpose 
                described in subsection (a)(1).
            ``(2) Professional development.--Professional development 
        of teaching professionals and paraprofessional 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 
        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 section 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), other than an application for a dissemination 
        grant under paragraph (1)(D), 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;
                    ``(iii) information demonstrating that the proposed 
                program is either a research-based program (which may 
                be a research-based program that has been modified to 
                be culturally appropriate for the students who will be 
                served);
                    ``(iv) a description of how the applicant will 
                incorporate the proposed services into the ongoing 
                school program once the grant period is over; and
                    ``(v) such other assurances and information as the 
                Secretary may reasonably require.
    ``(e) Administrative Costs.--Not more than 5 percent of the funds 
provided to a grantee under this subpart for any fiscal year may be 
used for administrative purposes.

``SEC. 9122. PROFESSIONAL DEVELOPMENT FOR TEACHERS AND EDUCATION 
              PROFESSIONALS.

    ``(a) Purposes.--The purposes of this section are--
            ``(1) to increase the number of qualified Indian 
        individuals in teaching or other education 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 teaching, the training received pursuant to a 
        grant under this section shall be in a program that results in 
        a graduate degree.
    ``(e) Application.--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.
    ``(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 period 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).

               ``Subpart 3--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 Programs and the Office of Educational Research and 
        Improvement.

                  ``Subpart 4--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 or 3.

``SEC. 9153. PREFERENCE FOR INDIAN APPLICANTS.

    ``In making grants under subpart 2 or 3, 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 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 5--Definitions; Authorizations of Appropriations

``SEC. 9161. DEFINITIONS.

    ``For the purposes of 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) 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.
            ``(3) 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 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 $62,000,000 for fiscal 
year 2000, and such sums as may be necessary for each of fiscal years 
2001 through 2004.
    ``(b) Subparts 2 and 3.--For the purpose of carrying out subparts 2 
and 3 of this part, there are authorized to be appropriated $4,000,000 
for fiscal year 2000, and such sums as may be necessary for each of the 
fiscal years 2001 through 2004.''.

                   PART B--NATIVE HAWAIIAN EDUCATION

SEC. 402. NATIVE HAWAIIAN EDUCATION.

    Part B of title IX of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7901 et seq.) is repealed.

                    PART C--ALASKA NATIVE EDUCATION

SEC. 403. ALASKA NATIVE EDUCATION.

    Part C of title IX of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 7931 et seq.) is amended--
            (1) by repealing sections 9304 through 9306 and inserting 
        the following:

``SEC. 9304. PROGRAM AUTHORIZED.

    ``(a) General Authority.--
            ``(1) Program authorized.--The Secretary is authorized to 
        make grants to, or enter into contracts with, Alaska Native 
        organizations, educational entities with experience in 
        developing or operating Alaska Native programs or programs of 
        instruction conducted in Alaska Native languages, and consortia 
        of such organizations and entities to carry out programs that 
        meet the purpose of this part.
            ``(2) Permissible activities.--Programs under this part may 
        include--
                    ``(A) the development and implementation of plans, 
                methods, and strategies to improve the education of 
                Alaska Natives;
                    ``(B) the development of curricula and educational 
                programs that address the educational needs of Alaska 
                Native students, including--
                            ``(i) curriculum materials that reflect the 
                        cultural diversity or the contributions of 
                        Alaska Natives;
                            ``(ii) instructional programs that make use 
                        of Native Alaskan languages; and
                            ``(iii) networks that introduce successful 
                        programs, materials, and techniques to urban 
                        and rural schools;
                    ``(C) professional development activities for 
                educators, including--
                            ``(i) programs to prepare teachers to 
                        address the cultural diversity and unique needs 
                        of Alaska Native students;
                            ``(ii) in-service programs to improve the 
                        ability of teachers to meet the unique needs of 
                        Alaska Native students; and
                            ``(iii) recruiting and preparing teachers 
                        who are Alaska Natives, reside in communities 
                        with high concentrations of Alaska Native 
                        students, or are likely to succeed as teachers 
                        in isolated, rural communities and engage in 
                        cross-cultural instruction;
                    ``(D) the development and operation of home 
                instruction programs for Alaska Native preschool 
                children, the purpose of which is to ensure the active 
                involvement of parents in their children's education 
                from the earliest ages;
                    ``(E) family Literacy Services;
                    ``(F) the development and operation of student 
                enrichment programs in science and mathematics that--
                            ``(i) are designed to prepare Alaska Native 
                        students from rural areas, who are preparing to 
                        enter high school, to excel in science and 
                        math; and
                            ``(ii) provide appropriate support services 
                        to the families of such students that are 
                        needed to enable such students to benefit from 
                        the program;
                    ``(G) research and data collection activities to 
                determine the educational status and needs of Alaska 
                Native children and adults;
                    ``(H) other research and evaluation activities 
                related to programs under this part; and
                    ``(I) other activities, consistent with the 
                purposes of this part, to meet the educational needs of 
                Alaska Native children and adults.
            ``(3) Home instruction programs.--Home instruction programs 
        for Alaska Native preschool children under paragraph (2)(D) may 
        include--
                    ``(A) programs for parents and their infants, from 
                prenatal through age three;
                    ``(B) preschool programs; and
                    ``(C) training, education, and support for parents 
                in such areas as reading readiness, observation, story-
                telling, and critical thinking.--
    ``(b) Limitation on Administrative Costs.--Not more than 5 percent 
of funds provided to a grantee under this section for any fiscal year 
may be used for administrative purposes.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated $10,000,000 for fiscal year 2000, and such sums as may be 
necessary for each of the fiscal years 2001 through 2004 to carry out 
this part.'';
            (2) in section 9307--
                    (A) by amending subsection (b) to read as follows:
    ``(b) Applications.--State and local educational agencies may apply 
for an award under this part only as part of a consortium involving an 
Alaska Native organization. This consortium may include other eligible 
applicants.'';
                    (B) by amending subsection (d) to read as follows:
    ``(d) Local Educational Agency Coordination.--Each applicant for an 
award under this part shall inform each local educational agency 
serving students who would participate in the project about its 
application.''; and
                    (C) by striking subsection (e); and
            (3) by redesignating sections 9307 and 9308 as sections 
        9305 and 9306, respectively.

       Subtitle B--Amendments to the Education Amendments of 1978

SEC. 410. AMENDMENTS TO THE EDUCATIONS AMENDMENTS OF 1978.

    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. 1120. FINDING AND POLICY.

    ``(a) Finding.--Congress finds and recognizes that the Federal 
Government has the sole responsibility for the operation and financial 
support of the Bureau of Indian Affairs funded school system that it 
has established on or near Indian reservations and Indian trust lands 
throughout the Nation for Indian children.
    ``(b) Policy.--It is the policy of the United States to work in 
full cooperation with Indian tribes toward the goal of assuring that 
the programs of the Bureau of Indian Affairs funded school system are 
of the highest quality and meet the unique educational and cultural 
needs of Indian children.

``SEC. 1121. ACCREDITATION AND STANDARDS FOR THE BASIC EDUCATION OF 
              INDIAN CHILDREN IN BUREAU OF INDIAN AFFAIRS SCHOOLS.

    ``(a) Purpose; Declarations of Purposes.--
            ``(1) Purpose.--The purpose of the standards implemented 
        under this section shall be to afford Indian students being 
        served by a school funded by the Bureau of Indian Affairs the 
        same opportunities as all other students in the United States 
        to achieve the same challenging State performance standards 
        expected of all students.
            ``(2) Declarations of purposes.--Local school boards for 
        schools operated by the Bureau of Indian Affairs, in 
        cooperation and consultation with their tribal governing bodies 
        and their communities, are encouraged to adopt declarations of 
        purposes of education for their communities taking into account 
        the implications of such purposes on education in their 
        communities and for their schools. In adopting such 
        declarations of purpose, the school boards shall consider the 
        effect those declarations may have on the motivation of 
        students and faculties. Such declarations shall represent the 
        aspirations of the community for the kinds of people the 
        community would like its children to become, and shall include 
        assurances that all learners will become accomplished in things 
        and ways important to them 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. These 
        declarations of purpose shall influence the standards for 
        accreditation to be accepted by the schools.
    ``(b) Studies and Surveys Relating to Standards.--Not later than 1 
year after the date of the enactment of the Student Results Act of 
1999, the Secretary, in consultation with the Secretary of Education, 
consortia of education organizations, and Indian organizations and 
tribes, and making the fullest use possible of other existing studies, 
surveys, and plans, shall carry out by contract with an Indian 
organization, studies and surveys 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) Revision of Minimum Academic Standards.--
            ``(1) In general.--Not later than 1 year after the date of 
        the enactment of the Student Results Act of 1999, the Secretary 
        shall--
                    ``(A) propose revisions to the minimum academic 
                standards published in the Federal Register on 
                September 9, 1995 (50 Fed. Reg. 174) for the basic 
                education of Indian children attending Bureau funded 
                schools in accordance with the purpose described in 
                subsection (a) and the findings of the studies and 
                surveys conducted under subsection (b);
                    ``(B) publish such proposed revisions to such 
                standards in the Federal Register for the purpose of 
                receiving comments from the tribes, tribal school 
                boards, Bureau funded schools, and other interested 
                parties; and
                    ``(C) consistent with the provisions of this 
                section and section 1131, take such actions as are 
                necessary to coordinate standards implemented under 
                this section with the Comprehensive School Reform Plan 
                developed by the Bureau and--
                            ``(i) with the standards of the improvement 
                        plans for the States in which any school 
                        operated by the Bureau of Indian Affairs is 
                        located; or
                            ``(ii) in the case where schools operated 
                        by the Bureau are within the boundaries of 
                        reservation land of 1 tribe but within the 
                        boundaries of more than 1 State, with the 
                        standards of the State improvement plan of 1 
                        such State selected by the tribe.
            ``(2) Further revisions.--Not later that 6 months after the 
        close of the comment period, the Secretary shall establish 
        final standards, distribute such standards to all tribes and 
        publish such final standards in the Federal Register. The 
        Secretary shall revise such 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.
            ``(3) Applicability of standards.--Except as provided in 
        subsection (e), the final standards published under paragraph 
        (2) shall apply to all Bureau funded schools not accredited 
        under subsection (f), and may also serve as a model for 
        educational programs for Indian children in public schools.
            ``(4) Considerations when establishing and revising 
        standards.--In establishing and revising such standards, the 
        Secretary shall take into account the unique needs of Indian 
        students and support and reinforcement of the specific cultural 
        heritage of each tribe.
    ``(d) Alternative or Modified Standards.--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 are in compliance with the minimum accreditation 
standards required for schools in the State or region where the school 
is located.
    ``(e) Waiver of Standards; Alternative Standards.--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) if such 
standards are deemed by such body to be inappropriate. The tribal 
governing body or designated school board shall, not later than 60 days 
after a waiver under this subsection, submit to the Secretary a 
proposal for alternative standards that take into account the specific 
needs of the tribe's children. Such alternative 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 not subject to review.
    ``(f) Accreditation and Implementation of Standards.--
            ``(1) Deadline for meeting standards.--Not later the second 
        academic year after publication of the standards, to the extent 
        necessary funding is provided, all Bureau funded schools shall 
        meet the standards established under subsections (c) and (d) or 
        shall be accredited--
                    ``(A) by a tribal accrediting body, if the 
                accreditation standards of the tribal accrediting body 
                have been accepted by formal action of the tribal 
                governing body and are equal to or exceed the 
                accreditation standards of the State or region in which 
                the school is located;
                    ``(B) by a regional accreditation agency; or
                    ``(C) by State accreditation standards for the 
                State in which it is located.
            ``(2) Determination of standards to be applied.--The 
        accreditation type or standards applied for each school shall 
        be determined by the school board of the school, in 
        consultation with the Administrator of the school, provided 
        that in the case where the School Board and the Administrator 
        fail to agree on the type of accreditation and standards to 
        apply, the decision of the school board with the approval of 
        the tribal governing body shall be final.
            ``(3) Assistance to school boards.--The Secretary, through 
        contracts and grants, shall assist school boards of contract or 
        grant schools in 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.
            ``(4) Fiscal control and fund accounting standards.--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 and grant schools. Such standards shall provide data 
        comparable to those used by Bureau operated schools.
    ``(g) Annual Plan for Meeting of Standards.--Except as provided in 
subsections (e) and (f), the Secretary shall begin to implement the 
standards established under this section immediately upon the date of 
their establishment. On an annual basis, the Secretary shall submit to 
the appropriate committees of Congress, all Bureau funded schools, and 
the tribal governing bodies of such schools 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 timelines for bringing each 
school up to the level required by such standards.
    ``(h) Closure or Consolidation of Schools.--
            ``(1) In general.--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.
            ``(2) Exceptions.--This subsection shall not apply--
                    ``(A) 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; or
                    ``(B) when a temporary closure, consolidation, or 
                substantial curtailment is required by plant conditions 
                which constitute an immediate hazard to health and 
                safety.
            ``(3) Regulations.--The Secretary shall, by regulation, 
        promulgate standards and procedures for the closure, transfer 
        to another authority, consolidation, or substantial curtailment 
        of Bureau schools, in accordance with the requirements of this 
        subsection.
            ``(4) Notice.--Whenever closure, transfer to another 
        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 immediately, 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 another authority, consolidate, or 
        substantially curtail a school, the affected tribe, tribal 
        governing body, and designated 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 appropriate 
        committees of Congress and published in the Federal Register.
            ``(5) Report.--The Secretary shall make a report to the 
        appropriate committees of Congress, the affected tribe, and the 
        designated school board describing the process of the active 
        consideration or review referred to in paragraph (4). The 
        report shall include a study of the impact of such action on 
        the student population, identify those students with particular 
        educational and social needs, and 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 representatives and the tribe or tribes 
        involved, and the Director of the Office of Indian Education 
        Programs within the Bureau regarding such students.
            ``(6) Limitation on certain actions.--No irrevocable action 
        may be taken in furtherance of any such proposed school 
        closure, transfer to another authority, consolidation or 
        substantial curtailment (including any action which would 
        prejudice the personnel or programs of such school) prior to 
        the end of the first full academic year after such report is 
        made.
            ``(7) Tribal governing body approval required for certain 
        actions.--The Secretary may terminate, contract, transfer to 
        any other authority, consolidate, or substantially curtail the 
        operation or facilities of--
                    ``(A) any Bureau funded school that is operated on 
                or after of January 1, 1999;
                    ``(B) any program of such a school that is operated 
                on or after January 1, 1999; 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) Application for Contracts or Grants for Non-Bureau Funded 
Schools or Expansion of Bureau Funded Schools.--
            ``(1) In general.--(A)(i) The Secretary shall only consider 
        the factors described in subparagraph (B) 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) With respect to applications described in this 
        subparagraph, the Secretary shall give consideration to all the 
        factors described in subparagraph (B), but no such application 
        shall be denied based primarily upon the geographic proximity 
        of comparable public education.
            ``(B) With respect to applications described in 
        subparagraph (A) the Secretary shall consider the following 
        factors relating to the program and services that are the 
        subject of the application:
                    ``(i) The adequacy of the facilities or the 
                potential to obtain or provide adequate facilities.
                    ``(ii) Geographic and demographic factors in the 
                affected areas.
                    ``(iii) The adequacy of the applicant's program 
                plans or, in the case of a Bureau funded school, of 
                projected needs analysis done either by the tribe or 
                the Bureau.
                    ``(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.
                    ``(vi) Adequacy and comparability of programs 
                already available.
                    ``(vii) Consistency of available programs with 
                tribal educational codes or tribal legislation on 
                education.
                    ``(viii) The history and success of these services 
                for the proposed population to be served, as determined 
                from all factors, including but not limited to 
                standardized examination performance.
            ``(2) Determination on application.--(A) The Secretary 
        shall make a determination of whether to approve any 
        application described in paragraph (1)(A) not later than 180 
        days after such application is submitted to the Secretary.
            ``(B) If the Secretary fails to make the determination with 
        respect to an application by the date described in subparagraph 
        (A), the application shall be treated a having been approved by 
        the Secretary.
            ``(3) Requirements for applications.--(A) Notwithstanding 
        paragraph (2)(B), an application described in paragraph (1)(A) 
        may be approved by 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) shall 
        provide information concerning each of the factors described in 
        paragraph (1)(B).
            ``(4) Denial of applications.--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 not later 180 days after 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) Effective date of a subject application.--(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 at the 
        beginning of the academic year following 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 under 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.
            ``(6) Statutory construction.--Nothing in this section 
        shall be read so as to preclude the expansion of grades and 
        related facilities at a Bureau funded school where such 
        expansion and the maintenance of such expansion is occasioned 
        or paid for with non-Bureau funds.
    ``(j) General Use of Funds.--Funds received by Bureau funded 
schools from the Bureau of Indian Affairs and under any program from 
the Department of Education or any other Federal agency for the purpose 
of providing education or related services may be used for schoolwide 
projects to improve the educational program for all Indian students.
    ``(k) Study on Adequacy of Funds and Formulas.--The Comptroller 
General shall conduct a study, in consultation with Indian tribes and 
local school boards, to determine the adequacy of funding, and formulas 
used by the Bureau to determine funding, for programs operated by 
Bureau funded schools, taking into account unique circumstances 
applicable to Bureau funded schools, as well as expenditures for 
comparable purposes in public schools nationally. Upon completion of 
the study, the Secretary of the Interior shall take such action as 
necessary to ensure distribution of the findings of the study to all 
affected Indian tribes, local school boards, and associations of local 
school boards.

``SEC. 1122. NATIONAL CRITERIA FOR HOME LIVING SITUATIONS.

    ``(a) In General.--The Secretary, in consultation with the 
Secretary of Education, Indian organizations and tribes, and Bureau 
funded schools, shall revise the national standards for home-living 
(dormitory) situations to include such factors as heating, lighting, 
cooling, adult-child ratios, needs for counselors (including special 
needs related to off-reservation home-living (dormitory) situations), 
therapeutic programs, space, and privacy. Such standards shall be 
implemented in Bureau operated schools, and shall serve as minimum 
standards for contract or grant schools. Once established, any 
revisions of such standards shall be developed according to the 
requirements established under section 1138A.
    ``(b) Implementation.--The Secretary shall implement the revised 
standards established under this section immediately upon their 
completion.
    ``(c) Plan.--At the time of each annual budget submission for 
Bureau educational services is presented, the Secretary shall submit to 
the appropriate committees of Congress, the tribes, and the affected 
schools, and publish in the Federal Register, a detailed plan to bring 
all Bureau funded schools that provide home-living (dormitory) 
situations up to the standards established under this section. Such 
plan shall include a statement of the relative needs of each Bureau 
funded home-living (dormitory) school, projected future needs of each 
Bureau funded home-living (dormitory) school, detailed information on 
the status of each school in relation to the standards established 
under this section, specific cost estimates for meeting each standard 
for each such school, aggregate cost estimates for bringing all such 
schools into compliance with the criteria established under this 
section, and specific timelines for bringing each school into 
compliance with such standards.
    ``(d) Waiver.--The criteria established under this section may be 
waived in the same manner as the standards provided under section 
1121(c) may be waived.
    ``(e) Closure for Failure To Meet Standards Prohibited.--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.

``SEC. 1123. REGULATIONS.

    ``(a) Part 32 of Title 25 of Code of Federal Regulations.--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. Such provisions may be altered only by means of an Act of 
Congress. To the extent that such provisions of part 32 do not conform 
with this Act or any statutory provision of law enacted before November 
1, 1978, the provisions of this Act and the provisions of such other 
statutory law shall govern.
    ``(b) Regulation Defined.--For purposes of this part, 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) Establishment by Secretary.--The Secretary shall establish, 
by regulation, separate geographical attendance areas for each Bureau 
funded school.
    ``(b) Establishment by Tribal Body.----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) Boundary Revisions.--
            ``(1) In general.--On or after July 1, 1999, no 
        geographical attendance area shall be revised 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 afforded--
                    ``(A) at least 6 months notice of the intention of 
                the Bureau to revise or establish such attendance area; 
                and
                    ``(B) 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. The Secretary shall 
        cause such revisions to be published in the Federal Register.
            ``(2) Tribal resolution determination.--Nothing in this 
        section shall be interpreted as denying a tribal governing body 
        the authority, on a continuing basis, to adopt a tribal 
        resolution allowing parents the choice of the Bureau funded 
        school their children may attend, regardless of the attendance 
        boundaries established under this section.
    ``(d) Funding Restrictions.--The Secretary shall not deny funding 
to a Bureau funded school for any eligible Indian student attending the 
school solely because that student's home or domicile is outside of the 
geographical attendance area established for that school under this 
section. No funding shall be made available without tribal 
authorization to enable a school to provide transportation for any 
student to or from the school and a location outside the approved 
attendance area of the school.
    ``(e) Reservation as Boundary.--In any case where there is only 1 
Bureau funded program located on an Indian reservation, the attendance 
area for the program shall be the boundaries (established by treaty, 
agreement, legislation, court decisions, or executive decisions and as 
accepted by the tribe) of the reservation served, and those students 
residing near the reservation shall also receive services from such 
program.
    ``(f) Off-Reservation Home-Living (Dormitory) Schools.--
Notwithstanding any geographical attendance areas, attendance at off-
reservation home-living (dormitory) schools shall include students 
requiring special emphasis programs to be implemented at each off-
reservation home-living (dormitory) school. Such attendance shall be 
coordinated between education line officers, the family, and the 
referring and receiving programs.

``SEC. 1125. FACILITIES CONSTRUCTION.

    ``(a) Compliance With Health and Safety Standards.--The Secretary 
shall immediately begin to bring all schools, dormitories, and other 
Indian education-related facilities operated by the Bureau or under 
contract or grant with the Bureau into compliance with all applicable 
tribal, Federal, or State health and safety standards, whichever 
provides 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, 
and with the Americans with Disabilities Act of 1990. 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 Student Results Act of 1999.
    ``(b) Compliance Plan.--At the time 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 facilities covered under subsection (a) of this section into 
compliance with the standards referred to in subsection (a). 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 timelines for bringing each 
school into compliance with such standards.
    ``(c) Construction Priorities.--
            ``(1) System to establish priorities.--On an annual basis 
        the Secretary shall submit to the appropriate committees of 
        Congress and cause to be published in the Federal Register, the 
        system used to establish priorities for replacement and 
        construction projects for Bureau funded schools and home-living 
        schools, including boarding schools and dormitories. At the 
        time any budget request for education is presented, the 
        Secretary shall publish in the Federal Register and submit with 
        the budget request the current list of all Bureau funded school 
        construction priorities.
            ``(2) Long-term construction and replacement list.--In 
        addition to the plan submitted under subsection (b), the 
        Secretary shall--
                    ``(A) not later than 18 months after the date of 
                enactment of the Student Results Act of 1999, establish 
                a long-term construction and replacement list for all 
                Bureau funded schools;
                    ``(B) using the list prepared under subparagraph 
                (A), propose a list for the orderly replacement of all 
                Bureau funded education-related facilities over a 
                period of 40 years to enable planning and scheduling of 
                budget requests;
                    ``(C) cause the list prepared under subsection (B) 
                to be published in the Federal Register and allow a 
                period of not less than 120 days for public comment;
                    ``(D) make such revisions to the list prepared 
                under subparagraph (B) as are appropriate based on the 
                comments received; and
                    ``(E) cause the final list to be published in the 
                Federal Register.
            ``(3) Effect on other list.--Nothing in this section shall 
        be construed as interfering with or changing in any way the 
        construction priority list as it exists on the date of the 
        enactment of the Student Results Act of 1999.
    ``(d) Hazardous Condition at Bureau School.--
            ``(1) Closure or consolidation.--A Bureau funded school may 
        be closed or consolidated, and the programs of a Bureau funded 
        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 funded 
        school.
            ``(2) Inspection.--(A) After making a determination 
        described in paragraph (1), the Bureau health and safety 
        officer shall conduct an inspection of the condition of such 
        plant accompanied by an appropriate tribal, county, municipal, 
        or State health and safety officer in order 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. No further negative 
        action may be taken unless the findings are concurred in by the 
        second, non-Bureau of Indian Affairs inspector.
            ``(B) If the health and safety officer conducting the 
        inspection of a plant required under subparagraph (A) 
        determines that conditions at the plant do not constitute an 
        immediate hazard to health and safety, any consolidation or 
        curtailment that was made under paragraph (1) shall immediately 
        cease and any school closed by reason of conditions at the 
        plant shall be reopened immediately.
            ``(C) If a Bureau funded school is temporarily closed or 
        consolidated or the programs of a Bureau funded school are 
        substantially curtailed under this subsection and the Secretary 
        determines that the closure, consolidation, or curtailment will 
        exceed 1 year, the Secretary shall submit to the Congress, by 
        not later than 6 months after the date on which the closure, 
        consolidation, or curtailment was initiated, a report which 
        sets forth the reasons for such temporary actions, the actions 
        the Secretary is taking to eliminate the conditions that 
        constitute the hazard, and an estimated date by which such 
        actions will be concluded.
    ``(e) Funding Requirement.--
            ``(1) Distribution of funds.--Beginning with the fiscal 
        year following the year of the date of the enactment of the 
        Student Results Act of 1999, all funds appropriated for the 
        operations and maintenance of Bureau funded schools shall be 
        distributed by formula to the schools. No funds from this 
        account may be retained or segregated by the Bureau to pay for 
        administrative or other costs of any facilities branch or 
        office, at any level of the Bureau.
            ``(2) Requirements for certain uses.--No funds shall be 
        withheld from the distribution to the budget of any school 
        operated under contract or grant by the Bureau for maintenance 
        or any other facilities or road related purpose, unless such 
        school has consented, as a modification to the contract or in 
        writing for grants schools, to the withholding of such funds, 
        including the amount thereof, the purpose for which the funds 
        will be used, and the timeline for the services to be provided. 
        The school may, at the end of any fiscal year, cancel an 
        agreement under this paragraph upon giving the Bureau 30 days 
        notice of its intent to do so.
    ``(f) No Reduction in Federal Funding.--Nothing in this section 
shall be construed to diminish any Federal funding due to the receipt 
by the school of funding for facilities improvement or construction 
from a State or any other source.

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

    ``(a) Formulation and Establishment of Policy and Procedure; 
Supervision of Programs and Expenditures.--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 Programs.
    ``(b) Direction and Supervision of Personnel Operations.--Not later 
than 6 months after the date of the enactment of the Student Results 
Act of 1999, the Director of the Office of Indian Education Programs 
shall direct and supervise the operations of all personnel directly and 
substantially involved in the provision of education services by the 
Bureau, including school or institution custodial or maintenance 
personnel, facilities management, contracting, procurement, and finance 
personnel. The Assistant Secretary for Indian Affairs shall coordinate 
the transfer of functions relating to procurement, contracts, 
operation, and maintenance to schools and other support functions to 
the Director.
    ``(c) Evaluation of Programs; Services and Support Functions; 
Technical and Coordinating Assistance.--Education personnel who are 
under the direction and supervision of the Director of the Office of 
Indian Education Programs 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, 
        curriculum, and operation and maintenance of school facilities.
    ``(d) Construction, Improvement, Operation, and Maintenance of 
Facilities.--
            ``(1) Plan for construction.--The Assistant Secretary shall 
        submit in the annual budget a plan--
                    ``(A) for school facilities to be constructed under 
                section 1125(c);
                    ``(B) for establishing priorities among projects 
                and for the improvement and repair of educational 
                facilities, which together shall form the basis for the 
                distribution of appropriated funds; and
                    ``(C) for capital improvements to be made over the 
                5 succeeding years.
            ``(2) Program for operation and maintenance.--
                    ``(A) In general.--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 educational facility;
                            ``(ii) similar treatment of all Bureau 
                        funded schools;
                            ``(iii) a notice of an allocation of 
                        appropriated funds from the Director of the 
                        Office of Indian Education Programs directly to 
                        the education line officers and appropriate 
                        school officials;
                            ``(iv) a method for determining the need 
                        for, and priority of, facilities repair and 
                        maintenance projects, both major and minor. In 
                        making such determination, the Assistant 
                        Secretary shall cause to be conducted a series 
                        of meetings at the agency and area level with 
                        representatives of the Bureau funded schools in 
                        those areas and agencies to receive comment on 
                        the lists and prioritization of such projects; 
                        and
                            ``(v) 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. 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 chapter 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.
            ``(3) Implementation.--The requirements of this subsection 
        shall be implemented as soon as practicable after the date of 
        the enactment of the Student Results Act of 1999.
    ``(e) Acceptance of Gifts and Bequests.--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 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 manner in which such gift or bequest shall be used, and 
any results achieved by such action.
    ``(f) Functions Clarified.--For the purpose of this section, the 
term `functions' includes powers and duties.

``SEC. 1127. ALLOTMENT FORMULA.

    ``(a) Factors Considered; Revision To Reflect Standards.--
            ``(1) Formula.--The Secretary shall establish, by 
        regulation adopted in accordance with section 1138A, 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 total student population 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 home-living (dormitory) 
                        arrangements, where determined necessary by a 
                        tribal governing body or designated school 
                        board;
                            ``(vii) costs associated with greater 
                        lengths of service by education personnel;
                            ``(viii) the costs of therapeutic programs 
                        for students requiring such programs; and
                            ``(ix) special costs 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) Revision of formula.--Upon the establishment of the 
        standards required in sections 1121 and 1122, the Secretary 
        shall revise the formula established under this subsection to 
        reflect the cost of funding such standards. Not later than 
        January 1, 2001, the Secretary shall review the formula 
        established under this section and shall take such steps as are 
        necessary to increase the availability of counseling and 
        therapeutic programs for students in off-reservation home-
        living (dormitory) schools and other Bureau operated 
        residential facilities. Concurrent with such action, the 
        Secretary shall review the standards established under section 
        1122 to be certain that adequate provision is made for parental 
        notification regarding, and consent for, such counseling and 
        therapeutic programs.
    ``(b) Pro Rata Allotment.--Notwithstanding any other provision 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) Annual Adjustment; Reservation of Amount for School Board 
Activities.--
            ``(1) Annual adjustment.--For fiscal year 2001, 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;
                    ``(C) take into account the provision of 
                residential services on less than a 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;
                    ``(D) use a weighted unit of 2.0 for each eligible 
                Indian student that--
                            ``(i) is gifted and talented; and
                            ``(ii) is enrolled in the school on a full-
                        time basis,
                in considering the number of eligible Indian students 
                served by the school; and
                    ``(E) use a weighted unit of 0.25 for each eligible 
                Indian student who is enrolled in a yearlong 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.
        The adjustment required under subparagraph (E) 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 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.
            ``(2) Reservation of amount.--
                    ``(A) In general.--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) $8,000; or
                            ``(ii) the lesser of--
                                    ``(I) $15,000; or
                                    ``(II) 1 percent of such allotted 
                                funds,
                for school board activities for such school, including 
                (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.
                    ``(B) Training.--Each school board shall see that 
                each new member of the school board receives, within 12 
                months of the individual's assuming a position on the 
                school board, 40 hours of training relevant to that 
                individual's service on the board. Such training may 
                include legal issues pertaining to schools funded by 
                the Bureau, legal issues pertaining to school boards, 
                ethics, and other topics deemed appropriate by the 
                school board.
    ``(d) Reservation of Amount for Emergencies.--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 of Indian Education Programs, 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, including emergency repairs of 
educational facilities, at a schoolsite (as defined by 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.--Supplemental appropriations 
enacted to meet increased pay costs attributable to school level 
personnel shall be distributed under this section.
    ``(f) Eligible Indian Student Defined.--For the purpose of this 
section, the term `eligible Indian student' means a student who--
            ``(1) is a member of or is at least \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 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 home-living 
        (dormitory) school.
    ``(g) Tuition.--
            ``(1) In general.--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 for attendance at 
        such a school.
            ``(2) Attendance of non-indian students at bureau 
        schools.--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 or 
                accreditation;
                    ``(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, and shall be in 
                addition to the school's allocation under this section.
            ``(3) Attendance of non-indian students at contract and 
        grant schools.--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 shall be in 
        addition to funding received under this section.
    ``(h) Funds Available Without Fiscal Year Limitation.--
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.
    ``(i) Students at Richfield Dormitory, Richfield, Utah.--Tuition 
for out-of-State Indian students in home-living (dormitory) 
arrangements 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 amounts 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) Grants; Effect Upon Appropriated Amounts.--
            ``(1) Grants.--Subject to the availability of appropriated 
        funds, the Secretary shall 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, provided that no school operated as 
        a stand-alone institution shall receive less than $200,000.00 
        per year for these purposes, 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) Effect upon appropriated amounts.--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) Determination of Grant Amount.--
            ``(1) In general.--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) Direct cost base funds.--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) Administrative Cost Percentage Rate.--
            ``(1) In general.--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) Rounding.--The administrative cost percentage rate 
        shall be determined to the \1/100\ of a decimal point.
    ``(d) Combining Funds.--
            ``(1) In general.--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.
            ``(2) Indirect cost funds.--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 paragraph (1).
    ``(e) Availability of Funds.--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.
    ``(f) Treatment of Funds.--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.
    ``(g) Treatment of Entity Operating Other Programs.--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--
            ``(1) 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
            ``(2) 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 that are 
associated with operating the contract or grant school, and of the 
indirect costs, that are associated with all of such other programs, 
provided 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.
    ``(h) Definitions.--For purposes of this section:
            ``(1) Administrative cost.--(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) Bureau elementary and secondary functions.--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) Direct cost base.--(A) Except as otherwise provided 
        in 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) Maximum base rate.--The term `maximum base rate' 
        means 50 percent.
            ``(5) Minimum base rate.--The term `minimum base rate' 
        means 11 percent.
            ``(6) Standard direct cost base.--The term `standard direct 
        cost base' means $600,000.
            ``(7) Tribal elementary or secondary educational 
        programs.--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.
    ``(i) Studies for Determination of Factors Affecting Costs; Base 
Rates Limits; Standard Direct Cost Base; Report to Congress.--
            ``(1) Studies.--Not later than 120 days after the date of 
        enactment of the Student Results Act of 1999, the Director of 
        the Office of Indian Education Programs shall--
                    ``(A) conduct such studies as may be needed to 
                establish an empirical basis for determining relevant 
                factors substantially affecting required administrative 
                costs of tribal elementary and secondary education 
                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) Guidelines.--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) Consultation with inspector general.--In carrying out 
        the studies required under this subsection, the Director shall 
        obtain the input of, and afford an opportunity to participate 
        to, the Inspector General of the Department of the Interior.
            ``(4) Consideration of delivery of administrative 
        services.--Determinations described in paragraph (2)(C) shall 
        be based on what is practicable at each location studied, given 
        prudent management practice, irrespective of whether required 
        administrative services were actually or fully delivered at 
        these sites, or whether other services were delivered instead, 
        during the period of the study.
            ``(5) Report.--Upon completion of the studies conducted 
        under paragraph (1), the Director shall submit to Congress a 
        report on the findings of the studies, together with 
        determinations based upon such studies that would affect the 
        definitions set forth under subsection (e) that are used in the 
        formula set forth in subsection (c).
            ``(6) Projection of costs.--The Secretary shall include in 
        the Bureau's justification for each appropriations request 
        beginning in the first fiscal year after the completion of the 
        studies conducted under paragraph (1), a projection of the 
        overall costs associated with the formula set forth in 
        subsection (c) for all tribal elementary or secondary education 
        programs which the Secretary expects to be funded in the fiscal 
        year for which the appropriations are sought.
            ``(7) Determination of program size.--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.
    ``(j) Authorization of Appropriations.--
            ``(1) In general.--There are authorized to be appropriated 
        such sums as necessary to carry out this section.
            ``(2) Reductions.--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 grants determined under 
        subsection (b) bears to the total of all grants determined 
        under subsection (b) section for all tribes and tribal 
        organizations for such fiscal year.
    ``(k) Applicability to Schools Operating Under Tribally Controlled 
Schools Act of 1988.--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) Establishment.--Not later than 12 months after the date of 
the enactment of the Student Results Act of 1999, the Secretary shall 
establish within the Office of Indian Education Programs 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) Functions.--In consultation with the tribal governing bodies 
and tribal school boards, the Director of the Office, through the 
Division, shall conduct studies, surveys, or other activities to gather 
demographic information on Bureau funded schools and project the amount 
necessary to provide Indian students in such schools the educational 
program set forth in this part.
    ``(c) Annual Reports.--Not later than the date that the Assistant 
Secretary for Indian Affairs makes the annual budget submission, for 
each fiscal year after the date of the enactment of the Student Results 
Act of 1999, the Director of the Office shall submit to the appropriate 
committees of Congress (including the Appropriations committees), all 
Bureau funded schools, and the tribal governing bodies of such schools, 
a report which shall contain--
            ``(1) projections, based upon the information gathered 
        pursuant to subparagraph (b) and any other relevant 
        information, of amounts necessary to provide Indian students in 
        Bureau funded schools the educational program set forth in this 
        part;
            ``(2) a description of the methods and formulas used to 
        calculate the amounts projected pursuant to paragraph (1); and
            ``(3) such other information as the Director of the Office 
        considers appropriate.
    ``(d) Use of Reports.--The Director of the Office and the Assistant 
Secretary for Indian Affairs shall use the annual report required by 
subsection (c) when preparing their annual budget submissions.

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

    ``(a) Establishment of System and Forward Funding.--
            ``(1) In general.--The Secretary shall establish, by 
        regulation adopted in accordance with section 1138, 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) Timing for use of funds.--(A) For the purposes of 
        affording adequate notice of funding available pursuant to the 
        allotments made under section 1127, amounts appropriated in an 
        appropriations 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, not later than 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 the actual student attendance.
            ``(3) Limitation.--(A) Notwithstanding any other provision 
        of law or regulation, the supervisor of a Bureau funded school 
        may expend an aggregate of not more than $50,000 of the amount 
        allotted the school under section 1127 to acquire materials, 
        supplies, equipment, services, operation, and maintenance for 
        the school without competitive bidding if--
                    ``(i) the cost for any single item purchased does 
                not exceed $15,000;
                    ``(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 price paid, the quantities acquired, and any other 
                information the supervisor or school board considers 
                relevant.
            ``(B) Not later than 6 months after the date of enactment 
        of the Student Results Act of 1999, the Secretary shall cause 
        to be sent to each supervisor of a Bureau operated program and 
        school board chairperson, the education line officer or 
        officers of each agency and area, and the Bureau Division in 
        charge of procurement, at both the local and national levels, 
        notice of this paragraph.
            ``(C) 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) Effect of sequestration order.--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) to fund allotments under section 1127, 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; 
                        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) Local Financial Plans for Expenditure of Funds.--
            ``(1) Plan required.--(A) In the case of all Bureau 
        operated schools, allotted funds shall be expended on the basis 
        of local financial plans which ensure meeting the accreditation 
        requirements or standards for the school established pursuant 
        to section 1121 and which shall be prepared by the local school 
        supervisor in active consultation with the local school board 
        for each school. 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.
            ``(B) The supervisor--
                    ``(i) shall put into effect the decisions of the 
                school board;
                    ``(ii) shall provide the appropriate local 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; and
                    ``(iii) 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 
                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 action.
    ``(c) Use of Self-Determination Grants Funds.--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 development of tribal codes of 
education from funds appropriated pursuant to section 104(a) of such 
Act.
    ``(d) Technical Assistance and Training.--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) Summer Program of Academic and Support Services.--
            ``(1) In general.--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 for Indian Affairs shall provide for the 
        utilization of any such school facility during any summer in 
        which such utilization is requested.
            ``(2) Use of other funds.--Notwithstanding any other 
        provision of law, funds authorized under the Act of April 16, 
        1934, 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) Technical assistance and program coordination.--The 
        Assistant Secretary for 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) Cooperative Agreements.--
            ``(1) In general.--From funds allotted to a Bureau school 
        under section 1127, the Secretary shall, if specifically 
        requested by the tribal governing body (as defined in section 
        1141), 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) Equal benefit and burden.--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) Product or Result of Student Projects.--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) Not Considered Federal Funds for Matching Requirements.--
Notwithstanding any other provision of law, funds received by a Bureau 
funded school under this title shall not be considered Federal funds 
for the purposes of meeting a matching funds requirement for any 
Federal program.

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

    ``(a) Facilitation of Indian Control.--It shall be the policy of 
the Secretary and the Bureau, in carrying out the functions of the 
Bureau, to facilitate tribal control of Indian affairs in all matters 
relating to education.
    ``(b) Consultation With Tribes.--
            ``(1) In general.--All actions under this Act shall be done 
        with active consultation with tribes.
            ``(2) Requirements.--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 alternatives, 
        with the views and concerns of the interested parties given 
        effect unless the Secretary determines, from information 
        available from 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. INDIAN EDUCATION PERSONNEL.

    ``(a) In General.--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, hours of work, and removal of civil service 
employees, shall not apply to educators or to education positions (as 
defined in subsection (p)).
    ``(b) Regulations.--Not later than 60 days after the date of 
enactment of the Student Results Act of 1999, the Secretary shall 
prescribe regulations to carry out this section. Such regulations shall 
include--
            ``(1) the establishment of education positions;
            ``(2) the establishment of qualifications for educators and 
        education personnel;
            ``(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 leave system for educators;
            ``(10) the annual leave and sick leave for educators and
            ``(11) such matters as may be appropriate.
    ``(c) Qualifications of Educators.--
            ``(1) Requirements.--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 (e)(2), a determination by a 
                school board that such a person be hired shall be 
                instituted 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 subparagraph 
                (A)(ii) or that such individual has applied at the 
                national level for an education position.
            ``(2) Exception for certain temporary employment.--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) Hiring of Educators.--
            ``(1) Requirements.--In prescribing regulations to govern 
        the appointment of educators, the Secretary shall require--
                    ``(A)(i) that educators employed in a Bureau 
                operated school (other than the supervisor of the 
                school) shall be hired by the supervisor of the school. 
                In cases where there are no qualified applicants 
                available, such supervisor may consult the national 
                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;
                    ``(iii) educators employed in an agency office of 
                the Bureau shall be hired by the superintendent for 
                education of the agency office; and
                    ``(iv) each education line officer and educators 
                employed in the Office of the Director of Indian 
                Education Programs shall be hired by the Director;
                    ``(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. A 
                determination by such school board that such individual 
                should or should not be so employed shall be instituted 
                by the supervisor (or with respect to the position of 
                supervisor, by the agency superintendent for 
                education);
                    ``(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 a determination by such school board that such 
                individual should or should not be employed shall be 
                instituted by the agency superintendent for education; 
                and
                    ``(D) that before an individual may be employed in 
                an education position in the Office of the Director 
                (other than the position of Director), the national 
                school boards representing all Bureau schools shall be 
                consulted.
            ``(2) Information regarding application at national 
        level.--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 be immediately forwarded to the Secretary, who 
        shall, as soon as practicable 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. 
        Notwithstanding subsection (e), 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 has 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.
            ``(3) Statutory construction.--Except as expressly 
        provided, nothing in this section shall be construed as 
        conferring upon local school boards authority over, or control 
        of, educators at Bureau funded schools or the authority to 
        issue management decisions.
    ``(e) Discharge and Conditions of Employment of Educators.--
            ``(1) Regulations.--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) that educators employed in Bureau schools be 
                notified 30 days prior to the end of the school year 
                whether their employment contract will be renewed for 
                the following year.
            ``(2) Procedures for discharge.--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) Recommendations of school boards for discharge.--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) Applicability of Indian Preference Laws.--
            ``(1) In general.--Notwithstanding any provision of the 
        Indian preference laws, such laws shall not apply in the case 
        of any personnel action under this section respecting an 
        applicant or employee not entitled to Indian preference if each 
        tribal organization concerned grants a written waiver of the 
        application of such laws with respect to such personnel action 
        and states that such waiver is necessary. This paragraph shall 
        not relieve 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) Tribal organization defined.--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); or
                    ``(B) in connection with any personnel action 
                referred to in this subsection, any local school board 
                as defined in section 1141 which has been delegated by 
                such governing body the authority to grant a waiver 
                under this subsection with respect to personnel action.
            ``(3) Indian preference law defined.--The term `Indian 
        preference laws' means section 12 of the Act of June 18, 1934 
        or any other provision of law granting a preference to Indians 
        in promotions and other personnel actions. Such term shall not 
        include section 7(b) of the Indian Self-Determination and 
        Education Assistance Act.
    ``(g) Compensation or Annual Salary.--
            ``(1) In general.--(A) Except as otherwise provided in this 
        section, the Secretary shall fix the basic compensation for 
        educators and education positions at 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, and for the comparable positions, the rates of 
        compensation in effect for the senior executive service.
            ``(B) The Secretary shall establish the rate 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 the Student Results Act 
        of 1999 and thereafter) to comparable positions in the overseas 
        schools under the Defense Department Overseas Teachers Pay Act. 
        The Secretary shall allow the local school boards authority to 
        implement only the aspects of the Defense Department Overseas 
        Teacher pay provisions that are considered essential for 
        recruitment and retention. Implementation of such provisions 
        shall not be construed to require the implementation of the Act 
        in its entirety.
            ``(C)(i) Beginning with the fiscal year following the date 
        of enactment of the Student Results Act of 1999, each school 
        board may set the rate of compensation or annual salary rate 
        for teachers and counselors (including academic counselors) who 
        are new hires at the school and who have not worked at the 
        school on the date of implementation of this provision, at 
        rates consistent with the rates paid for individuals in the 
        same positions, with the same tenure and training, in any other 
        school within whose boundaries the Bureau school lies. In 
        instances where the adoption of such rates cause a reduction in 
        the payment of compensation from that which was in effect for 
        the fiscal year following the date of enactment of the Student 
        Results Act of 1999, the new rate may be applied to the 
        compensation of employees of the school who worked at the 
        school on of the date of enactment of that Act by applying 
        those rates to each contract renewal such that the reduction 
        takes effect in three equal installments. Where adoption of 
        such rates lead to an increase in the payment of compensation 
        from that which was in effect for the fiscal year following the 
        date of enactment of the Student Results Act of 1999, the 
        school board may make such rates applicable at the next 
        contract renewal such that either--
                    ``(I) the increase occurs in its entirety; or
                    ``(II) the increase is applied in 3 equal 
                installments.
            ``(ii) The establishment of rates of basic compensation and 
        annual salary rates under subparagraphs (B) and (C) shall not 
        preclude the use of regulations and procedures used by the 
        Bureau prior to April 28, 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.
            ``(D) The establishment of rates of basic compensation and 
        annual salary rates 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 an election under subsection (p) is in 
        effect on January 1, 1990.
            ``(2) Post-differential rates.--(A) The Secretary may pay a 
        post-differential rate 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) A request under clause (i) shall be deemed granted 
        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 
        under this subparagraph at the beginning of a school year if--
                    ``(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 
        year and listing the positions contracted under those grants of 
        authority.
            ``(h) Liquidation of Remaining Leave Upon Termination.--
        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) of this section shall 
        not be so liquidated.
    ``(i) Transfer of Remaining Sick Leave Upon Transfer, Promotion, or 
Reemployment.--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.
    ``(j) Ineligibility for Employment of Voluntarily Terminated 
Educators.--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.
    ``(k) Dual Compensation.--In the case of any educator employed in 
an education position described in subsection (l)(1)(A) who--
            ``(1) is employed at the close of a school year,
            ``(2) agrees in writing to serve in such 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 receipt of additional compensation.
    ``(l) 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.
    ``(m) Proration of Pay.--
            ``(1) Election of employee.--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.
            ``(2) Change of election.--During the course of such year 
        the employee may change election once.
            ``(3) Lump sum payment.--That portion of the employee's pay 
        which would be paid between academic school years may be paid 
        in a lump sum at the election of the employee.
            ``(4) Definitions.----For purposes of this subsection, the 
        terms `educator' and `education position' have the meanings 
        contained in paragraphs (1) and (2) of subsection (o). This 
        subsection applies to those individuals employed under the 
        provisions of section 1132 of this title or title 5, United 
        States Code.
    ``(n) Extracurricular Activities.--
            ``(1) Stipend.--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.
            ``(2) Election not to receive stipend.--If an employee 
        elects not to be compensated through the stipend established by 
        this subsection, the appropriate provisions of title 5, United 
        States Code, shall apply.
            ``(3) Applicability of subsection.--This subsection applies 
        to all Bureau employees, whether employed under section 1132 of 
        this title or title 5, United States Code.
    ``(o) Definitions.--For the purpose of this section--
            ``(1) Education position.--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) Educator.--The term `educator' means an individual 
        whose services are required, or who is employed, in an 
        education position.
    ``(p) Covered Individuals; Election.--This section shall apply with 
respect to any educator hired after November 1, 1979 (and to any 
educator who elected for coverage under that provision after November 
1, 1979) and to the position in which such individual is employed. The 
enactment of this section shall not affect the continued employment of 
an individual employed on October 31, 1979 in an education position, or 
such person's right to receive the compensation attached to such 
position.

``SEC. 1133. COMPUTERIZED MANAGEMENT INFORMATION SYSTEM.

    ``(a) Establishment of System.--Not later than July 1, 2001, the 
Secretary shall establish within the Office, a computerized management 
information system, which shall provide processing and information to 
the Office. The information provided shall include information 
regarding--
            ``(1) student enrollment;
            ``(2) curriculum;
            ``(3) staffing;
            ``(4) facilities;
            ``(5) community demographics;
            ``(6) student assessment information;
            ``(7) information on the administrative and program costs 
        attributable to each Bureau program, divided into discreet 
        elements;
            ``(8) relevant reports;
            ``(9) personnel records;
            ``(10) finance and payroll; and
            ``(11) such other items as the Secretary deems appropriate.
    ``(b) Implementation of System.--Not later than July 1, 2002, the 
Secretary shall complete implementation of such a system at each field 
office and Bureau funded school.

``SEC. 1134. 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. 1135. 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. 1136. BIENNIAL REPORT; AUDITS.

    ``(a) Biennial Reports.--The Secretary shall submit to each 
appropriate committee of Congress, all Bureau funded schools, and the 
tribal governing bodies of such schools, a detailed biennial report on 
the state of education within the Bureau and any problems encountered 
in Indian education during the 2-year period covered by the report. 
Such report shall contain suggestions for the improvement of the Bureau 
educational system and for increasing tribal or 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 include--
            ``(1) information on the funds provided to previously 
        private schools under section 208 of the Indian Self-
        Determination and Education Assistance Act, and recommendations 
        with respect to the future use of such funds;
            ``(2) the needs and costs of operations and maintenance of 
        tribally controlled community colleges eligible for assistance 
        under the Tribally Controlled Community College Assistance Act 
        of 1978 and recommendations with respect to meeting such needs 
        and costs; and
            ``(3) the plans required by sections 1121 (g), 1122(c), and 
        1125(b).
    ``(b) Financial and Compliance Audits.--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 operated 
school at least once in every 3 years. Audits of Bureau schools shall 
be based upon the extent to which such school has complied with its 
local financial plan under section 1130.

``SEC. 1137. RIGHTS OF INDIAN STUDENTS.

    ``The Secretary shall prescribe such rules and regulations as are 
necessary to ensure the constitutional and civil rights of Indian 
students attending Bureau funded 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. 1138. REGULATIONS.

    ``(a) In General.--The Secretary is authorized to issue only such 
regulations as are necessary to ensure compliance with the specific 
provision of this Act. The Secretary shall publish proposed regulations 
in the Federal Register, shall provide a period of not less than 90 
days for public comment thereon, and shall place in parentheses after 
each regulatory section the citation to any statutory provision 
providing authority to promulgate such regulatory provision.
    ``(b) Miscellaneous.--
            ``(1) Construction.--The provisions of this Act shall 
        supersede any conflicting provisions of law (including any 
        conflicting regulations) in effect on the day before the date 
        of enactment of this Act and the Secretary is authorized to 
        repeal any regulation inconsistent with the provisions of this 
        Act.
            ``(2) General applicability of certain rules; legal 
        authority to be stated.--Regulations required to be adopted 
        under sections 2006 through 2018 and any revisions of the 
        standards developed under section 2001 or 2002 shall be deemed 
        rules of general applicability prescribed for the 
        administrations of an applicable program for the purposes of 
        section 437 of the Elementary and Secondary Education 
        Amendments of 1967 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 provision is 
        based.

``SEC. 1138A. REGIONAL MEETINGS AND NEGOTIATED RULEMAKING.

    ``(a) Meetings.--
            ``(1) In general.--The Secretary shall obtain tribal 
        involvement in the development of proposed regulations under 
        this part and the Tribally Controlled Schools Act of 1988. The 
        Secretary shall obtain the advice of and recommendations from 
        representatives of Indian tribes with Bureau-funded schools on 
        their reservations, Indian tribes whose children attend Bureau 
        funded off-reservation boarding schools, school boards, 
        administrators or employees of Bureau-funded schools, and 
        parents and teachers of students enrolled in Bureau-funded 
        schools.
            ``(2) Issues.--The Secretary shall provide for a 
        comprehensive discussion and exchange of information concerning 
        the implementation of this part and the Tribally Controlled 
        Schools Act of 1988 through such mechanisms as regional 
        meetings and electronic exchanges of information. The Secretary 
        shall take into account the information received through such 
        mechanisms in the development of proposed regulations and shall 
        publish a summary of such information in the Federal Register 
        together with such proposed regulations.
    ``(b) Draft Regulations.--
            ``(1) In general.--After obtaining the advice and 
        recommendations described in subsection (a)(1) and before 
        publishing proposed regulations in the Federal Register, the 
        Secretary shall prepare draft regulations implementing this 
        part and the Tribally Controlled Schools Act of 1988 and shall 
        submit such regulations to a negotiated rulemaking process. 
        Participants in the negotiations process shall be chosen by the 
        Secretary from individuals nominated by the entities described 
        in subsection (a)(1). To the maximum extent possible, the 
        Secretary shall ensure that the tribal representative 
        membership chosen pursuant to the preceding sentence reflects 
        the proportionate share of students from tribes served by the 
        Bureau-funded school system. The negotiation process shall be 
        conducted in a timely manner in order that the final 
        regulations may issued by the Secretary no later than 18 months 
        after enactment of this section, provided that the authority of 
        the Secretary to promulgate regulations under this part and the 
        Tribally Controlled Schools Act of 1988 shall expire if final 
        regulations are not promulgated within the time stated in this 
        sentence. If the Secretary determines that an extension of the 
        deadline in the preceding sentence is necessary, the Secretary 
        may submit proposed legislation to Congress for extension of 
        such deadline.
            ``(2) Expansion of negotiated rulemaking.--All regulations 
        pertaining to this part and the Tribally Controlled Schools Act 
        of 1988 that are promulgated after the date of enactment of 
        this subsection shall be subject to a negotiated rulemaking 
        (including the selection of the regulations to be negotiated), 
        unless the Secretary determines that applying such a 
        requirement with respect to given regulations is impracticable, 
        unnecessary, or contrary to the public interest (within the 
        meaning of section 553(b)(3)(B) of title 5), and publishes the 
        basis for such determination in the Federal Register at the 
        same time as the proposed regulations in question are first 
        published. All published proposed regulations shall conform to 
        agreements resulting from such negotiated rulemaking unless the 
        Secretary reopens the negotiated rulemaking process or provides 
        a written explanation to the participants in that process why 
        the Secretary has decided to depart from such agreements. Such 
        negotiated rulemaking shall be conducted in accordance with the 
        provisions of subsection (a), and the Secretary shall ensure 
        that a clear and reliable record of agreements reached during 
        the negotiation process is maintained.
    ``(c) Applicability of Federal Advisory Committee Act.--The Federal 
Advisory Committee Act shall apply to activities carried out under this 
section.

``SEC. 1139. EARLY CHILDHOOD DEVELOPMENT PROGRAM.

    ``(a) In General.--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) Amount of Grants.--
            ``(1) In general.--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 (g) for such fiscal year (less 
        amounts provided under subsection (f)) 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) Limitation.--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) Application.
            ``(1) In general.--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) Contents.--Applications submitted under paragraph (1) 
        shall set forth the early childhood development program that 
        the applicant desires to operate.
    ``(d) Requirement of Programs Funded.--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) family literacy services;
                    ``(E) educational testing; and
                    ``(F) 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) Coordination of Family Literacy Programs.--Family literacy 
programs operated under this section or other similar programs operated 
by the Bureau shall coordinate with family literacy programs for Indian 
children under part B of title I of the Elementary and Secondary 
Education Act of 1965 in order to avoid duplication and to encourage 
the dissemination of information on quality family literacy programs 
serving Indians.
    ``(f) Administrative Costs.--The Secretary shall, out of funds 
appropriated under subsection (g), include in the grants provided under 
subsection (a) amounts for administrative costs incurred by the tribe, 
tribal organization, or consortium of tribes in establishing and 
maintaining the early childhood development program.
    ``(g) Authorization of Appropriations.--For the purpose of carrying 
out the provisions of this section, there are authorized to be 
appropriated $10,000,000 for fiscal year 2000 and such sums as may be 
necessary for each of the fiscal years 2001, 2002, 2003, and 2004.

``SEC. 1140. TRIBAL DEPARTMENTS OR DIVISIONS OF EDUCATION.

    ``(a) In General.--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.--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 (and on former 
        Indian reservations in Oklahoma) (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 that are in effect on the date that application 
        for such grants are made.
    ``(c) Priorities.--
            ``(1) In general.--In making 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) Time period of grant.--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) Terms, Conditions, or Requirements.--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) Authorization of Appropriations.--For the purpose of carrying 
out the provisions of this section, there are authorized to be 
appropriated $2,000,000 for fiscal year 2000 and such sums as may be 
necessary for each of the fiscal years 2001, 2002, 2003, and 2004.

``SEC. 1141. DEFINITIONS.

    ``For the purposes of this part, unless otherwise specified:
            ``(1) Agency school board.--The term `agency school board' 
        means a body, the members of which are appointed by all of the 
        school boards of the schools located within an agency, 
        including schools operated under contract or grant, 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, and in agencies having schools or a 
        school operated under contract or grant, one such member at 
        least shall be from such a school.
            ``(2) Bureau.--The term `Bureau' means the Bureau of Indian 
        Affairs of the Department of the Interior.
            ``(3) Bureau funded school.--The term `Bureau funded 
        school' means--
                    ``(A) a Bureau school;
                    ``(B) a contract or grant school; or
                    ``(C) a school for which assistance is provided 
                under the Tribally Controlled Schools Act of 1988.
            ``(4) Bureau school.--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) Contract or grant school.--The term `contract or 
        grant school' means an elementary or secondary school or 
        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, or under the Tribally Controlled 
        Schools Act of 1988.
            ``(6) Education line officer.--The term `education line 
        officer' means education personnel under the supervision of the 
        Director, whether located in the central, area, or agency 
        offices.
            ``(7) Financial plan.--The term `financial plan' means a 
        plan of services provided by each Bureau school.
            ``(8) Indian organization.--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 tribes.
            ``(9) Local educational agency.--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) Local school board.--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) Office.--The term `Office' means the Office of 
        Indian Education Programs within the Bureau.
            ``(12) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
            ``(13) Supervisor.--The term `supervisor' means the 
        individual in the position of ultimate authority at a Bureau 
        school.
            ``(14) Tribal governing body.--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.
            ``(15) Tribe.--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, which is recognized as eligible for the special 
        programs and services provided by the United States to Indians 
        because of their status as Indians.''.

          Subtitle C--Tribally Controlled Schools Act of 1988

SEC. 420. TRIBALLY CONTROLLED SCHOOLS.

    Sections 5202 through 5212 of Public Law 100-297 (25 U.S.C. 2501 et 
seq.) are amended to read as follows:

``SEC. 5202. FINDINGS.

    ``Congress, after careful review of the Federal Government's 
historical and special legal relationship with, and resulting 
responsibilities to, Indians, finds that--
            ``(1) the Indian Self-Determination and Education 
        Assistance Act, which was a product of the legitimate 
        aspirations and a recognition of the inherent authority of 
        Indian nations, was and is a crucial positive step towards 
        tribal and community control;
            ``(2) the Bureau of Indian Affairs' administration and 
        domination of the contracting process under such Act has not 
        provided the full opportunity to develop leadership skills 
        crucial to the realization of self-government and has denied 
        Indians an effective voice in the planning and implementation 
        of programs for the benefit of Indians which are responsive to 
        the true needs of Indian communities;
            ``(3) Indians will never surrender their desire to control 
        their relationships both among themselves and with non-Indian 
        governments, organizations, and persons;
            ``(4) true self-determination in any society of people is 
        dependent upon an educational process which will ensure the 
        development of qualified people to fulfill meaningful 
        leadership roles;
            ``(5) the Federal administration of education for Indian 
        children has not effected the desired level of educational 
        achievement or created the diverse opportunities and personal 
        satisfaction that education can and should provide;
            ``(6) true local control requires the least possible 
        Federal interference; and
            ``(7) the time has come to enhance the concepts made 
        manifest in the Indian Self-Determination and Education 
        Assistance Act.

``SEC. 5203. DECLARATION OF POLICY.

    ``(a) Recognition.--Congress recognizes the obligation of the 
United States to respond to the strong expression of the Indian people 
for self-determination by assuring maximum Indian participation in the 
direction of educational services so as to render such services more 
responsive to the needs and desires of those communities.
    ``(b) Commitment.--Congress declares its commitment to the 
maintenance of the Federal Government's unique and continuing trust 
relationship with and responsibility to the Indian people through the 
establishment of a meaningful Indian self-determination policy for 
education which will deter further perpetuation of Federal bureaucratic 
domination of programs.
    ``(c) National Goal.--Congress declares that a major national goal 
of the United States is to provide the resources, processes, and 
structure which will enable tribes and local communities to effect the 
quantity and quality of educational services and opportunities which 
will permit Indian children to compete and excel in the life areas of 
their choice and to achieve the measure of self-determination essential 
to their social and economic well-being.
    ``(d) Educational Needs.--Congress affirms the reality of the 
special and unique educational needs of Indian peoples, including the 
need for programs to meet the linguistic and cultural aspirations of 
Indian tribes and communities. These may best be met through a grant 
process.
    ``(e) Federal Relations.--Congress declares its commitment to these 
policies and its support, to the full extent of its responsibility, for 
Federal relations with the Indian Nations.
    ``(f) Termination.--Congress hereby repudiates and rejects House 
Resolution 108 of the 83d Congress and any policy of unilateral 
termination of Federal relations with any Indian Nation.

``SEC. 5204. GRANTS AUTHORIZED.

    ``(a) In General.--
            ``(1) Eligibility.--The Secretary shall provide grants to 
        Indian tribes, and tribal organizations that--
                    ``(A) operate contract schools under title XI of 
                the Education Amendments of 1978 and notify the 
                Secretary of their election to operate the schools with 
                assistance under this part rather than continuing as 
                contract school;
                    ``(B) operate other tribally controlled schools 
                eligible for assistance under this part and submit 
                applications (which are approved by their tribal 
                governing bodies) to the Secretary for such grants; or
                    ``(C) elect to assume operation of Bureau funded 
                schools with the assistance under this part and submit 
                applications (which are approved by their tribal 
                governing bodies) to the Secretary for such grants.
            ``(2) Deposit of funds.--Grants provided under this part 
        shall be deposited into the general operating fund of the 
        tribally controlled school with respect to which the grant is 
        made.
            ``(3) Use of funds.--(A) Except as otherwise provided in 
        this paragraph, grants provided under this part shall be used 
        to defray, at the discretion of the school board of the 
        tribally controlled school with respect to which the grant is 
        provided, any expenditures for education related activities for 
        which any funds that compose the grant may be used under the 
        laws described in section 5205(a), including, but not limited 
        to, expenditures for--
                    ``(i) school operations, academic, educational, 
                residential, guidance and counseling, and 
                administrative purposes; and
                    ``(ii) support services for the school, including 
                transportation.
            ``(B) Grants provided under this part may, at the 
        discretion of the school board of the tribally controlled 
        school with respect to which such grant is provided, be used to 
        defray operations and maintenance expenditures for the school 
        if any funds for the operation and maintenance of the school 
        are allocated to the school under the provisions of any of the 
        laws described in section 5205(a).
    ``(b) Limitations.--
            ``(1) 1 grant per tribe or organization per fiscal year.--
        Not more than 1 grant may be provided under this part with 
        respect to any Indian tribe or tribal organization for any 
        fiscal year.
            ``(2) Nonsectarian use.--Funds provided under any grant 
        made under this part may not be used in connection with 
        religious worship or sectarian instruction.
            ``(3) Administrative costs limitation.--Funds provided 
        under any grant under this part may not be expended for 
        administrative costs (as defined in section 1128(h)(1) of the 
        Education Amendments of 1978) in excess of the amount generated 
        for such costs under section 1128 of such Act.
    ``(c) Limitation on Transfer of Funds Among Schoolsites.--
            ``(1) In general.--In the case of a grantee that operates 
        schools at more than one schoolsite, the grantee may expend not 
        more than the lesser of--
                    ``(A) 10 percent of the funds allocated for such 
                schoolsite under section 1128 of the Education 
                Amendments of 1978; or
                    ``(B) $400,000 of such funds, at any other 
                schoolsite.
            ``(2) Definition of schoolsite.--For purposes of this 
        subsection, the term `schoolsite' means the physical location 
        and the facilities of an elementary or secondary educational or 
        residential program operated by, or under contract or grant 
        with, the Bureau for which a discreet student count is 
        identified under the funding formula established under section 
        1127 of the Education Amendments of 1978.
    ``(d) No Requirement To Accept Grants.--Nothing in this part may be 
construed--
            ``(1) to require a tribe or tribal organization to apply 
        for or accept; or
            ``(2) to allow any person to coerce any tribe or tribal 
        organization to apply for, or accept,
a grant under this part to plan, conduct, and administer all of, or any 
portion of, any Bureau program. Such applications and the timing of 
such applications shall be strictly voluntary. Nothing in this part may 
be construed as allowing or requiring any grant with any entity other 
than the entity to which the grant is provided.
    ``(e) No Effect on Federal Responsibility.--Grants provided under 
this part shall not terminate, modify, suspend, or reduce the 
responsibility of the Federal Government to provide a program.
    ``(f) Retrocession.--
            ``(1) In general.--Whenever a tribal governing body 
        requests retrocession of any program for which assistance is 
        provided under this part, such retrocession shall become 
        effective upon a date specified by the Secretary that is not 
        later than 120 days after the date on which the tribal 
        governing body requests the retrocession. A later date as may 
        be specified if mutually agreed upon by the Secretary and the 
        tribal governing body. If such a program is retroceded, the 
        Secretary shall provide to any Indian tribe served by such 
        program at least the same quantity and quality of services that 
        would have been provided under such program at the level of 
        funding provided under this part prior to the retrocession.
            ``(2) Status after retrocession.--The tribe requesting 
        retrocession shall specify whether the retrocession is to 
        status as a Bureau operated school or as a school operated 
        under contract under title XI of the Education Amendments of 
        1978.
            ``(3) Transfer of equipment and materials.--Except as 
        otherwise determined by the Secretary, the tribe or tribal 
        organization operating the program to be retroceded must 
        transfer to the Secretary (or to the tribe or tribal 
        organization which will operate the program as a contract 
        school) the existing equipment and materials which were 
        acquired--
                    ``(A) with assistance under this part; or
                    ``(B) upon assumption of operation of the program 
                under this part if the school was a Bureau funded 
                school under title XI of the Education Amendments of 
                1978 before receiving assistance under this part.
    ``(g) Prohibition of Termination for Administrative Convenience.--
Grants provided under this part may not be terminated, modified, 
suspended, or reduced solely for the convenience of the administering 
agency.

``SEC. 5205. COMPOSITION OF GRANTS.

    ``(a) In General.--The grant provided under this part to an Indian 
tribe or tribal organization for any fiscal year shall consist of--
            ``(1) the total amount of funds allocated for such fiscal 
        year under sections 1127 and 1128 of the Education Amendments 
        of 1978 with respect to the tribally controlled schools 
        eligible for assistance under this part which are operated by 
        such Indian tribe or tribal organization, including, but not 
        limited to, funds provided under such sections, or under any 
        other provision of law, for transportation costs;
            ``(2) to the extent requested by such Indian tribe or 
        tribal organization, the total amount of funds provided from 
        operations and maintenance accounts and, notwithstanding 
        section 105 of the Indian Self-Determination Act, or any other 
        provision of law, other facilities accounts for such schools 
        for such fiscal year (including but not limited to those 
        referenced under section 1126(d) of the Education Amendments of 
        1978 or any other law); and
            ``(3) the total amount of funds that are allocated to such 
        schools for such fiscal year under--
                    ``(A) title I of the Elementary and Secondary 
                Education Act of 1965;
                    ``(B) the Individuals with Disabilities Education 
                Act; and
                    ``(C) any other Federal education law, that are 
                allocated to such schools for such fiscal year.
    ``(b) Special Rules.--
            ``(1) In general.--(A) Funds allocated to a tribally 
        controlled school by reason of paragraph (1) or (2) of 
        subsection (a) shall be subject to the provisions of this part 
        and shall not be subject to any additional restriction, 
        priority, or limitation that is imposed by the Bureau with 
        respect to funds provided under--
                    ``(i) title I of the Elementary and Secondary 
                Education Act of 1965;
                    ``(ii) the Individuals with Disabilities Education 
                Act; or
                    ``(iii) any Federal education law other than title 
                XI of the Education Amendments of 1978.
            ``(B) Indian tribes and tribal organizations to which 
        grants are provided under this part, and tribally controlled 
        schools for which such grants are provided, shall not be 
        subject to any requirements, obligations, restrictions, or 
        limitations imposed by the Bureau that would otherwise apply 
        solely by reason of the receipt of funds provided under any law 
        referred to in clause (i), (ii) or (iii) of subparagraph (A).
            ``(2) Schools considered contract schools.--Tribally 
        controlled schools for which grants are provided under this 
        part shall be treated as contract schools for the purposes of 
        allocation of funds under sections 1126(d), 1127, and 1128 of 
        the Education Amendments of 1978.
            ``(3) Schools considered Bureau schools.--Tribally 
        controlled schools for which grants are provided under this 
        chapter shall be treated as Bureau schools for the purposes of 
        allocation of funds provided under--
                    ``(A) title I of the Elementary and Secondary 
                Education Act of 1965;
                    ``(B) the Individuals with Disabilities Education 
                Act; and
                    ``(C) any other Federal education law, that are 
                distributed through the Bureau.
            ``(4) Accounts; use of certain funds.--(A) Notwithstanding 
        section 5204(a)(2), with respect to funds from facilities 
        improvement and repair, alteration and renovation (major or 
        minor), health and safety, or new construction accounts 
        included in the grant under section 5204(a), the grantee shall 
        maintain a separate account for such funds. At the end of the 
        period designated for the work covered by the funds received, 
        the grantee shall submit to the Secretary a separate accounting 
        of the work done and the funds expended to the Secretary. Funds 
        received from these accounts may only be used for the purpose 
        for which they were appropriated and for the work encompassed 
        by the application or submission under which they were 
        received.
            ``(B) Notwithstanding subparagraph (A), 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 25 percent of the total cost of 
        such new construction.
            ``(C) Where the appropriations measure or the application 
        submission does not stipulate a period for the work covered by 
        the funds so designated, the Secretary and the grantee shall 
        consult and determine such a period prior to the transfer of 
        the funds. A period so determined may be extended upon mutual 
        agreement of the Secretary and the grantee.
            ``(5) Enforcement of request to include funds.--If the 
        Secretary fails to carry out a request made under subsection 
        (a)(2) 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 or failure to act on such 
        tribe or organization's request, pursuant to the disputes 
        authority described in section 5209(e).

``SEC. 5206. ELIGIBILITY FOR GRANTS.

    ``(a) Rules.--
            ``(1) In general.--A tribally controlled school is eligible 
        for assistance under this part if the school--
                    ``(A) on April 28, 1988, was a contract school 
                under title XI of the Education Amendments of 1978 and 
                the tribe or tribal organization operating the school 
                submits to the Secretary a written notice of election 
                to receive a grant under this part;
                    ``(B) was a Bureau operated school under title XI 
                of the Education Amendments of 1978 and has met the 
                requirements of subsection (b);
                    ``(C) is a school for which the Bureau has not 
                provided funds, but which has met the requirements of 
                subsection (c); or
                    ``(D) is a school with respect to which an election 
                has been made under paragraph (2) and which has met the 
                requirements of subsection (b).
            ``(2) New schools.--Any application which has been 
        submitted under the Indian Self-Determination and Education 
        Assistance Act by an Indian tribe for a school which is not in 
        operation on the date of enactment of the Student Results Act 
        of 1999 shall be reviewed under the guidelines and regulations 
        for applications submitted under the Indian Self-Determination 
        and Education Assistance Act that were in effect at the time 
        the application was submitted, unless the Indian tribe or 
        tribal organization elects to have the application reviewed 
        under the provisions of subsection (b).
    ``(b) Additional Requirements for Bureau Funded Schools and Certain 
Electing Schools.--
            ``(1) Bureau funded schools.--A school that was a Bureau 
        funded school under title XI of the Education Amendments of 
        1978 on the date of enactment of the Student Results Act of 
        1999, and any school with respect to which an election is made 
        under subsection (a)(2), meets the requirements of this 
        subsection if--
                    ``(A) the Indian tribe or tribal organization that 
                operates, or desires to operate, the school submits to 
                the Secretary an application requesting that the 
                Secretary--
                            ``(i) transfer operation of the school to 
                        the Indian tribe or tribal organization, if the 
                        Indian tribe or tribal organization is not 
                        already operating the school; and
                            ``(ii) make a determination as to whether 
                        the school is eligible for assistance under 
                        this part; and
                    ``(B) the Secretary makes a determination that the 
                school is eligible for assistance under this part.
            ``(2) Certain electing schools.--(A) By not later than the 
        date that is 120 days after the date on which an application is 
        submitted to the Secretary under paragraph (1)(A), the 
        Secretary shall determine--
                    ``(i) in the case of a school which is not being 
                operated by the Indian tribe or tribal organization, 
                whether to transfer operation of the school to the 
                Indian tribe or tribal organization; and
                    ``(ii) whether the school is eligible for 
                assistance under this part.
            ``(B) In considering applications submitted under paragraph 
        (1)(A), the Secretary--
                    ``(i) shall transfer operation of the school to the 
                Indian tribe or tribal organization, if the tribe or 
                tribal organization is not already operating the 
                school; and
                    ``(ii) shall determine that the school is eligible 
                for assistance under this part, unless the Secretary 
                finds by clear and convincing evidence that the 
                services to be provided by the Indian tribe or tribal 
                organization will be deleterious to the welfare of the 
                Indians served by the school.
            ``(C) In considering applications submitted under paragraph 
        (1)(A), the Secretary shall consider whether the Indian tribe 
        or tribal organization would be deficient in operating the 
        school with respect to--
                    ``(i) equipment;
                    ``(ii) bookkeeping and accounting procedures;
                    ``(iii) ability to adequately manage a school; or
                    ``(iv) adequately trained personnel.
    ``(c) Additional Requirements for a School Which Is Not a Bureau 
Funded School.--
            ``(1) In general.--A school which is not a Bureau funded 
        school under title XI of the Education Amendments of 1978 meets 
        the requirements of this subsection if--
                    ``(A) the Indian tribe or tribal organization that 
                operates, or desires to operate, the school submits to 
                the Secretary an application requesting a determination 
                by the Secretary as to whether the school is eligible 
                for assistance under this part; and
                    ``(B) the Secretary makes a determination that a 
                school is eligible for assistance under this part.
            ``(2) Deadline for determination by secretary.--(A) By not 
        later than the date that is 180 days after the date on which an 
        application is submitted to the Secretary under paragraph 
        (1)(A), the Secretary shall determine whether the school is 
        eligible for assistance under this part.
            ``(B) In making the determination under subparagraph (A), 
        the Secretary shall give equal consideration to each of the 
        following factors:
                    ``(i) with respect to the applicant's proposal--
                            ``(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;
                            ``(IV) geographic proximity of comparable 
                        public education; and
                            ``(V) the needs as expressed by all 
                        affected parties, including but not limited to 
                        students, families, tribal governments at both 
                        the central and local levels, and school 
                        organizations; and
                    ``(ii) with respect to all education services 
                already available--
                            ``(I) geographic and demographic factors in 
                        the affected areas;
                            ``(II) adequacy and comparability of 
                        programs already available;
                            ``(III) consistency of available programs 
                        with tribal education codes or tribal 
                        legislation on education; and
                            ``(IV) the history and success of these 
                        services for the proposed population to be 
                        served, as determined from all factors 
                        including, if relevant, standardized 
                        examination performance.
                            ``(C) The Secretary may not make a 
                        determination under this paragraph that is 
                        primarily based upon the geographic proximity 
                        of comparable public education.
                            ``(D) Applications submitted under 
                        paragraph (1)(A) shall include information on 
                        the factors described in subparagraph (B)(i), 
                        but the applicant may also provide the 
                        Secretary such information relative to the 
                        factors described in subparagraph (B)(ii) as 
                        the applicant considers appropriate.
                            ``(E) If the Secretary fails to make a 
                        determination under subparagraph (A) with 
                        respect to an application within 180 days after 
                        the date on which the Secretary received the 
                        application, the Secretary shall be treated as 
                        having made a determination that the tribally 
                        controlled school is eligible for assistance 
                        under the title and the grant shall become 
                        effective 18 months after the date on which the 
                        Secretary received the application, or on an 
                        earlier date, at the Secretary's discretion.
    ``(d) Filing of Applications and Reports.--
            ``(1) In general.--All applications and reports submitted 
        to the Secretary under this part, and any amendments to such 
        applications or reports, shall be filed with the education line 
        officer designated by the Director of the Office of Indian 
        Education Programs of the Bureau of Indian Affairs. The date on 
        which such filing occurs shall, for purposes of this part, be 
        treated as the date on which the application or amendment was 
        submitted to the Secretary.
            ``(2) Supporting documentation.--Any application that is 
        submitted under this chapter shall be accompanied by a document 
        indicating the action taken by the tribal governing body in 
        authorizing such application.
    ``(e) Effective Date for Approved Applications.--Except as provided 
by subsection (c)(2)(E), a grant provided under this part, and any 
transfer of the operation of a Bureau school made under subsection (b), 
shall become effective beginning the academic year succeeding the 
fiscal year in which the application for the grant or transfer is made, 
or at an earlier date determined by the Secretary.
    ``(f) Denial of Applications.--
            ``(1) In general.--Whenever the Secretary refuses to 
        approve a grant under this chapter, to transfer operation of a 
        Bureau school under subsection (b), or determines that a school 
        is not eligible for assistance under this part, the Secretary 
        shall--
                    ``(A) state the objections in writing to the tribe 
                or tribal organization within the allotted time;
                    ``(B) provide assistance to the tribe or tribal 
                organization to overcome all stated objections.
                    ``(C) at the request of the tribe or tribal 
                organization, provide the tribe or tribal organization 
                a hearing on the record under the same rules and 
                regulations that apply under the Indian Self-
                Determination and Education Assistance Act; and
                    ``(D) provide an opportunity to appeal the 
                objection raised.
            ``(2) Timeline for reconsideration of amended 
        applications.--The Secretary shall reconsider any amended 
        application submitted under this part within 60 days after the 
        amended application is submitted to the Secretary.
    ``(g) Report.--The Bureau shall submit an annual report to the 
Congress on all applications received, and actions taken (including the 
costs associated with such actions), under this section at the same 
time that the President is required to submit to Congress the budget 
under section 1105 of title 31.

``SEC. 5207. DURATION OF ELIGIBILITY DETERMINATION.

    ``(a) In General.--If the Secretary determines that a tribally 
controlled school is eligible for assistance under this part, the 
eligibility determination shall remain in effect until the 
determination is revoked by the Secretary, and the requirements of 
subsection (b) or (c) of section 5206, if applicable, shall be 
considered to have been met with respect to such school until the 
eligibility determination is revoked by the Secretary.
    ``(b) Annual Reports.--
            ``(1) In general.--Each recipient of a grant provided under 
        this part shall complete an annual report which shall be 
        limited to--
                    ``(A) an annual financial statement reporting 
                revenue and expenditures as defined by the cost 
                accounting established by the grantee;
                    ``(B) an annual financial audit conducted pursuant 
                to the standards of the Single Audit Act of 1984;
                    ``(C) an annual submission to the Secretary of the 
                number of students served and a brief description of 
                programs offered under the grant; and
                    ``(D) a program evaluation conducted by an 
                impartial evaluation review team, to be based on the 
                standards established for purposes of subsection 
                (c)(1)(A)(ii).
            ``(2) Evaluation review teams.--Where appropriate, other 
        tribally controlled schools and representatives of tribally 
        controlled community colleges shall make up members of the 
        evaluation review teams.
            ``(3) Evaluations.--In the case of a school which is 
        accredited, evaluations will be conducted at intervals under 
        the terms of accreditation.
            ``(4) Submission of report.--
                    ``(A) To tribally governing body.--Upon completion 
                of the report required under paragraph (a), the 
                recipient of the grant shall send (via first class 
                mail, return receipt requested) a copy of such annual 
                report to the tribal governing body (as defined in 
                section 1132(f) of the Education Amendments of 1978) of 
                the tribally controlled school.
                    ``(B) To secretary.--Not later than 30 days after 
                receiving written confirmation that the tribal 
                governing body has received the report send pursuant to 
                subsection (A), the recipient of the grant shall send a 
                copy of the report to the Secretary.
    ``(c) Revocation of Eligibility.--
            ``(1) In general.--(A) The Secretary shall not revoke a 
        determination that a school is eligible for assistance under 
        this part if--
                    ``(i) the Indian tribe or tribal organization 
                submits the reports required under subsection (b) with 
                respect to the school; and
                    ``(ii) at least one of the following subclauses 
                applies with respect to the school:
                            ``(I) The school is certified or accredited 
                        by a State or regional accrediting association 
                        or is a candidate in good standing for such 
                        accreditation under the rules of the State or 
                        regional accrediting association, showing that 
                        credits achieved by the students within the 
                        education programs are, or will be, accepted at 
                        grade level by a State certified or regionally 
                        accredited institution.
                            ``(II) A determination made by the 
                        Secretary that there is a reasonable 
                        expectation that the accreditation described in 
                        subclause (I), or the candidacy in good 
                        standing for such accreditation, will be 
                        reached by the school within 3 years and that 
                        the program offered by the school is beneficial 
                        to the Indian students.
                            ``(III) The school is accredited by a 
                        tribal department of education if such 
                        accreditation is accepted by a generally 
                        recognized regional or State accreditation 
                        agency.
                            ``(IV) The schools accept the standards 
                        promulgated under section 1121 of the Education 
                        Amendments of 1978 and an evaluation of 
                        performance is conducted under this section in 
                        conformance with the regulations pertaining to 
                        Bureau operated schools by an impartial 
                        evaluator chosen by the grantee, but no grantee 
                        shall be required to comply with these 
                        standards to a higher degree than a comparable 
                        Bureau operated school.
                            ``(V) A positive evaluation of the school 
                        is conducted by an impartial evaluator agreed 
                        upon by the Secretary and the grantee every 2 
                        years under standards adopted by the contractor 
                        under a contract for a school entered into 
                        under the Indian Self-Determination and 
                        Education Assistance Act (or revisions of such 
                        standards agreed to by the Secretary and the 
                        grantee) prior to the date of enactment of this 
                        Act. If the Secretary and the grantee other 
                        than the tribal governing body fail to agree on 
                        such an evaluator, the tribal governing body 
                        shall choose the evaluator or perform the 
                        evaluation. If the Secretary and a grantee 
                        which is the tribal governing body fail to 
                        agree on such an evaluator, this subclause 
                        shall not apply.
            ``(B) The choice of standards employed for the purpose of 
        subparagraph (A)(ii) shall be consistent with section 1121(e) 
        of the Education Amendments of 1978.
            ``(2) Notice requirements for revocation.--The Secretary 
        shall not revoke a determination that a school is eligible for 
        assistance under this part, or reassume control of a school 
        that was a Bureau school prior to approval of an application 
        submitted under section 5206(b)(1)(A) until the Secretary--
                    ``(A) provides notice to the tribally controlled 
                school and the tribal governing body (within the 
                meaning of section 1141(14) of the Education Amendments 
                of 1978) of the tribally controlled school which 
                states--
                            ``(i) the specific deficiencies that led to 
                        the revocation or resumption determination; and
                            ``(ii) the actions that are needed to 
                        remedy such deficiencies; and
                    ``(B) affords such authority an opportunity to 
                effect the remedial actions.
            ``(3) Technical assistance.--The Secretary shall provide 
        such technical assistance as is practicable to effect such 
        remedial actions. Such notice and technical assistance shall be 
        in addition to a hearing and appeal to be conducted pursuant to 
        the regulations described in section 5206(f)(1)(C).
    ``(d) Applicability of Section Pursuant to Election Under Section 
5209(b).--With respect to a tribally controlled school which receives 
assistance under this part pursuant to an election made under section 
5209(b)--
            ``(1) subsection (b) of this section shall apply; and
            ``(2) the Secretary may not revoke eligibility for 
        assistance under this part except in conformance with 
        subsection (c) of this section.

``SEC. 5208. PAYMENT OF GRANTS; INVESTMENT OF FUNDS.

    ``(a) Payments.--
            ``(1) In general.--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 85 
                percent 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) Newly funded schools.--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) Late funding.--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) Applicability of certain title 31 provisions.--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) Restrictions.--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.
    ``(b) Investment of Funds.--
            ``(1) Treatment of interest and investment income.--
        Notwithstanding any other provision of law, any interest or 
        investment income that accrues to any funds provided under this 
        part after such funds are paid to the Indian tribe or tribal 
        organization and before such funds are expended for the purpose 
        for which such funds were provided under this part shall be the 
        property of the Indian tribe or tribal organization and shall 
        not be taken into account by any officer or employee of the 
        Federal Government in determining whether to provide 
        assistance, or the amount of assistance, under any provision of 
        Federal law. Such interest income shall be spent on behalf of 
        the school.
            ``(2) Permissible investments.--Funds provided under this 
        part may be invested by the Indian tribe or tribal organization 
        before such funds are expended for the purposes of this part so 
        long as such funds are--
                    ``(A) invested by the Indian tribe or tribal 
                organization only in obligations of the United States, 
                or in obligations or securities that are guaranteed or 
                insured by the United States, or mutual (or other) 
                funds registered with the Securities and Exchange 
                Commission and which only invest in obligations of the 
                United States, or securities that are guaranteed or 
                insured by the United States; or
                    ``(B) deposited only into accounts that are insure 
                by and agency or instrumentality of the United States, 
                or are fully collateralized to ensure protection of the 
                funds, even in the event of a bank failure.
    ``(c) Recoveries.--For the purposes of underrecovery and 
overrecovery determinations by any Federal agency for any other funds, 
from whatever source derived, funds received under this part shall not 
be taken into consideration.

``SEC. 5209. APPLICATION WITH RESPECT TO INDIAN SELF-DETERMINATION AND 
              EDUCATION ASSISTANCE ACT.

    ``(a) Certain Provisions To Apply to Grants.--The following 
provisions of the Indian Self-Determination and Education Assistance 
Act (and any subsequent revisions thereto or renumbering thereof), 
shall apply to grants provided under this part:
            ``(1) Section 5(f) (relating to single agency audit).
            ``(2) Section 6 (relating to criminal activities; 
        penalties).
            ``(3) Section 7 (relating to wage and labor standards).
            ``(4) Section 104 (relating to retention of Federal 
        employee coverage).
            ``(5) Section 105(f) (relating to Federal property).
            ``(6) Section 105(k) (relating to access to Federal sources 
        of supply).
            ``(7) Section 105(l) (relating to lease of facility used 
        for administration and delivery of services).
            ``(8) Section 106(f) (relating to limitation on remedies 
        relating to cost allowances).
            ``(9) Section 106(j) (relating to use of funds for matching 
        or cost participation requirements).
            ``(10) Section 106(k) (relating to allowable uses of 
        funds).
            ``(11) Section 108(c) (Model Agreements provisions 
        (1)(a)(5) (relating to limitations of costs), (1)(a)(7) 
        (relating to records and monitoring), (1)(a)(8) (relating to 
        property), and (a)(1)(9) (relating to availability of funds).
            ``(12) Section 109 (relating to reassumption).
            ``(13) Section 111 (relating to sovereign immunity and 
        trusteeship rights unaffected).
    ``(b) Election for Grant in Lieu of Contract.--
            ``(1) In general.--Contractors for activities to which this 
        part applies who have entered into a contract under the Indian 
        Self-Determination and Education Assistance Act that is in 
        effect upon the date of enactment of the Student Results Act of 
        1999 may, by giving notice to the Secretary, elect to have the 
        provisions of this part apply to such activity in lieu of such 
        contract.
            ``(2) Effective date of election.--Any election made under 
        paragraph (1) shall take effect on the later of--
                    ``(A) October 1 of the fiscal year succeeding the 
                fiscal year in which such election is made; or
                    ``(B) 60 days after the date of such election.
            ``(3) Exception.--In any case in which the 60-day period 
        referred to in paragraph (2)(B) is less than 60 days before the 
        beginning of the succeeding fiscal year, such election shall 
        not take effect until the fiscal year after the fiscal year 
        succeeding the election.
    ``(c) No Duplication.--No funds may be provided under any contract 
entered into under the Indian Self-Determination and Education 
Assistance Act to pay any expenses incurred in providing any program or 
services if a grant has been made under this part to pay such expenses.
    ``(d) Transfers and Carryovers.--
            ``(1) Buildings, equipment, supplies, materials.--A tribe 
        or tribal organization assuming the operation of--
                    ``(A) a Bureau school with assistance under this 
                part shall be entitled to the transfer or use of 
                buildings, equipment, supplies, and materials to the 
                same extent as if it were contracting under the Indian 
                Self-Determination and Education Assistance Act; or
                    ``(B) a contract school with assistance under this 
                part shall be entitled to the transfer or use of 
                buildings, equipment, supplies and materials that were 
                used in the operation of the contract school to the 
                same extent as if it were contracting under the Indian 
                Self-Determination and Education Assistance Act
            ``(2) Funds.--Any tribe or tribal organization which 
        assumes operation of a Bureau school with assistance under this 
        part and any tribe or tribal organization which elects to 
        operate a school with assistance under this part rather that to 
        continue as a contract school shall be entitled to any funds 
        which would carryover from the previous fiscal year as if such 
        school were operated as a contract school.
    ``(e) Exceptions, Problems, and Disputes.--Any exception or problem 
cited in an audit conducted pursuant to section 5207(b)(2), any dispute 
regarding a grant authorized to be made pursuant to this part or any 
amendment to such grant, and any dispute involving an administrative 
cost grant under section 1128 of the Education Amendments of 1978 shall 
be administered under the provisions governing such exceptions, 
problems, or disputes in the case of contracts under the Indian Self-
Determination and Education Assistance Act of 1975. 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. 5210. ROLE OF THE DIRECTOR.

    ``Applications for grants under this part, and all application 
modifications, shall be reviewed and approved by personnel under the 
direction and control of the Director of the Office of Indian Education 
Programs. Required reports shall be submitted to education personnel 
under the direction and control of the Director of such Office.

``SEC. 5211. REGULATIONS.

    ``The Secretary is authorized to issue regulations relating to the 
discharge of duties specifically assigned to the Secretary by this 
part. In all other matters relating to the details of planning, 
development, implementing, and evaluating grants under this part, the 
Secretary shall not issue regulations. Regulations issued pursuant to 
this part shall not have the standing of a Federal statute for the 
purposes of judicial review.

``SEC. 5212. THE TRIBALLY CONTROLLED GRANT SCHOOL ENDOWMENT PROGRAM.

    ``(a) In General.--
            ``(1) Each school receiving grants under this part may 
        establish, at a Federally insured banking and savings 
        institution, a trust fund for the purposes of this section.
            ``(2) The school may provide--
                    ``(A) for the deposit into the trust fund, only 
                funds from non-Federal sources, except that the 
                interest on funds received from grants under this part 
                may be used for this purpose;
                    ``(B) for the deposit in the account of any 
                earnings on funds deposited in the account; and
                    ``(C) for the sole use of the school any noncash, 
                in-kind contributions of real or personal property, 
                such property may at any time be converted to cash.
    ``(b) Interest.--Interest from the fund established under 
subsection (a) may periodically be withdrawn and used, at the 
discretion of the school, to defray any expenses associated with the 
operation of the school.

``SEC. 5213. DEFINITIONS.

    ``For the purposes of this part:
            ``(1) Bureau.--The term `Bureau' means the Bureau of Indian 
        Affairs of the Department of the Interior.
            ``(2) Eligible indian student.--The term `eligible Indian 
        student' has the meaning of such term in section 1127(f) of the 
        Education Amendments of 1978.
            ``(3) Indian tribe.--The term `Indian tribe' means any 
        Indian tribe, band, nation, or other organized group or 
        community, including Alaska Native Village or regional 
        corporations (as defined in or established pursuant to the 
        Alaskan Native Claims Settlement Act, which is recognized as 
        eligible for the special programs and services provided by the 
        United States to Indians because of their status as Indians.
            ``(4) Local educational agency.--The term a `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 such combination of school districts 
        or counties as are recognized in a State as an administrative 
        agency for its public elementary or secondary schools. Such 
        term includes any other public institution or agency having 
        administrative control and direction of a public elementary or 
        secondary school.
            ``(5) Secretary.--The term `Secretary' means the Secretary 
        of the Interior.
            ``(6) Tribal organization.--(A) The term `tribal 
        organization' means--
                    ``(i) the recognized governing body of any Indian 
                tribe; or
                    ``(ii) any legally established organization of 
                Indians which--
                            ``(I) is controlled, sanctioned, or 
                        chartered by such governing body or is 
                        democratically elected by the adult members of 
                        the Indian community to be served by such 
                        organization; and
                            ``(II) includes the maximum participation 
                        of Indians in all phases of its activities.
            ``(B) In any case in which a grant is provided under this 
        part to an organization to provide services benefiting more 
        than one Indian tribe, the approval of the governing bodies of 
        Indian tribes representing 80 percent of those students 
        attending the tribally controlled school shall be considered a 
        sufficient tribal authorization for such grant.
            ``(7) Tribally controlled school.--The term `tribally 
        controlled school' means a school operated by a tribe or a 
        tribal organization, enrolling students in kindergarten through 
        grade 12, including preschools, which is not a local 
        educational agency and which is not directly administered by 
        the Bureau of Indian Affairs.''.

                 TITLE V--GIFTED AND TALENTED CHILDREN

SEC. 501. AMENDMENT TO ESEA RELATING TO GIFTED AND TALENTED CHILDREN.

    Part B of title X of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 8031 et seq.) is amended to read as follows:

                 ``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 1999'.

``SEC. 10202. FINDINGS.

    ``The Congress finds the following:
            ``(1) While the families or communities of some gifted 
        students can provide private programs with appropriately 
        trained staff to supplement public educational offerings, most 
        high-ability students, especially those from inner cities, 
        rural communities, or low-income families, must rely on the 
        services and personnel provided by public schools. Therefore, 
        gifted education programs, provided by qualified professionals 
        in the public schools, are needed to provide equal educational 
        opportunities.
            ``(2) Due to the wide dispersal of students who are gifted 
        and talented and the national interest in a well-educated 
        populace, the Federal Government can most effectively and 
        appropriately conduct scientifically based research and 
        development to provide an infrastructure and to ensure that 
        there is a national capacity to educate students who are gifted 
        and talented to meet the needs of the 21st century.
            ``(3) State and local educational agencies often lack the 
        specialized resources and trained personnel to consistently 
        plan and implement effective programs for the identification of 
        gifted and talented students and for the provision of 
        educational services and programs appropriate for their needs.
            ``(4) Because gifted and talented students generally are 
        more advanced academically, are able to learn more quickly, and 
        study in more depth and complexity than others their age, their 
        educational needs require opportunities and experiences that 
        are different from those generally available in regular 
        education programs.
            ``(5) Typical elementary school students who are 
        academically gifted and talented already have mastered 35 to 50 
        percent of the school year's content in several subject areas 
        before the year begins. Without an advanced and challenging 
        curriculum, they often lose their motivation and develop poor 
        study habits that are difficult to break.
            ``(6) Elementary and secondary teachers have students in 
        their classrooms with a wide variety of traits, 
        characteristics, and needs. Most teachers receive some training 
        to meet the needs of these students, such as students with 
        limited English proficiency, students with disabilities, and 
        students from diverse cultural and racial backgrounds. However, 
        most teachers do not receive training on meeting the needs of 
        students who are gifted and talented.

``SEC. 10203. CONDITIONS ON EFFECTIVENESS OF SUBPARTS 1 AND 2.

    ``(a) Subpart 1.--Subpart 1 shall be in effect only for a fiscal 
year for which subpart 2 is not in effect.
    ``(b) Subpart 2.--
            ``(1) In general.--Subpart 2 shall be in effect only for--
                    ``(A) the first fiscal year for which the amount 
                appropriated to carry out this part equals or exceeds 
                $50,000,000; and
                    ``(B) all succeeding fiscal years.
            ``(2) Continuation of awards.--Notwithstanding any other 
        provision of this part, a State receiving a grant under subpart 
        2--
                    ``(A) shall give special consideration to a request 
                for the continuation of an award within the State, made 
                by any public or private agency, institution, or 
                organization that was awarded a grant or contract under 
                subpart 1 for a fiscal year for which such subpart was 
                in effect; and
                    ``(B) may use funds received under such grant for 
                the purpose of permitting the agency, institution, or 
                organization to continue to receive funds in accordance 
                with the terms of such award until the date on which 
                the award period terminates under such terms.

                ``Subpart 1--Discretionary Grant Program

``SEC. 10211. PURPOSE.

    ``The purpose of this subpart is to initiate a coordinated program 
of scientifically based research, demonstration projects, innovative 
strategies, 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.

``SEC. 10212. GRANTS TO MEET EDUCATIONAL NEEDS OF GIFTED AND TALENTED 
              STUDENTS.

    ``(a) Establishment of Program.--
            ``(1) In general.--Subject to section 10203, from the sums 
        available to carry out this subpart 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, 
        other public agencies, and other private agencies and 
        organizations (including Indian tribes and Indian organizations 
        (as such terms are defined in section 4 of the Indian Self-
        Determination and Education Assistance Act (25 U.S.C. 450b)) 
        and Native Hawaiian organizations) to assist such agencies, 
        institutions, and organizations in carrying out programs or 
        projects authorized by this subpart 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 subpart 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 
subpart may include the following:
            ``(1) Carrying out--
                    ``(A) scientifically based 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 purpose of this subpart.
            ``(2) Professional development (including fellowships) for 
        personnel (including leadership personnel) involved in the 
        education of gifted and talented students.
            ``(3) 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, including summer programs, mentoring 
        programs, service learning programs, and cooperative programs 
        involving business, industry, and education.
            ``(4) Implementing innovative strategies, such as 
        cooperative learning, peer tutoring and service learning.
            ``(5) Programs of technical assistance and information 
        dissemination, including assistance and information with 
        respect to how gifted and talented programs and methods, where 
        appropriate, may be adapted for use by all students.
    ``(c) Coordination.--Scientifically based research activities 
supported under this subpart--
            ``(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 scientifically based 
        research activities which are jointly funded and carried out 
        with such Office.

``SEC. 10213. PROGRAM PRIORITIES.

    ``(a) General Priority.--In the administration of this subpart, the 
Secretary shall give highest priority to programs and projects designed 
to develop new information that--
            ``(1) improves the capability of schools to plan, conduct, 
        and improve programs to identify and serve gifted and talented 
        students; and
            ``(2) assists schools in the identification of, and 
        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).
    ``(b) Service Priority.--In approving applications for assistance 
under section 10212(a)(2), the Secretary shall ensure that in each 
fiscal year at least \1/2\ of the applications approved under such 
section address the priority described in subsection (a)(2).
    ``(c) Subgrants to Local Educational Agencies for Authorized 
Activities.--
            ``(1) In general.--For fiscal year 2001 and succeeding 
        fiscal years, the Secretary shall ensure that a percentage of 
        the excess amount described in paragraph (2) is used to 
        increase (in proportion to any increases in such excess 
        amounts) the number and size of the grants under this subpart 
        to State educational agencies to begin implementing activities 
        described in section 10222(b) through competitive subgrants to 
        local educational agencies.
            ``(2) Excess amount.--For purposes of paragraph (1), the 
        excess amount described in this paragraph is, for fiscal year 
        2001 and succeeding fiscal years, the amount (if any) by which 
        the funds appropriated to carry out this subpart for the year 
        exceed such funds for fiscal year 2000.

``SEC. 10214. GENERAL PROVISIONS FOR SUBPART.

    ``(a) Review, Dissemination, and Evaluation.--The Secretary--
            ``(1) shall use a peer review process in reviewing 
        applications under this subpart;
            ``(2) shall ensure that information on the activities and 
        results of programs and projects funded under this subpart is 
        disseminated to appropriate State and local educational 
        agencies and other appropriate organizations, including 
        nonprofit private organizations; and
            ``(3) shall evaluate the effectiveness of programs under 
        this subpart 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 the Congress not later than 2 
        years after the date of the enactment of the Student Results 
        Act of 1999.
    ``(b) Program Operations.--The Secretary shall ensure that the 
programs under this subpart 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--
    ``(1) shall administer and coordinate the programs authorized under 
this subpart;
            ``(2) shall 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
            ``(3) shall 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.

                   ``Subpart 2--Formula Grant Program

``SEC. 10221. PURPOSE.

    ``The purpose of this subpart is to provide grants to States to 
support programs, teacher preparation, and other services designed to 
meet the needs of the Nation's gifted and talented students in 
elementary and secondary schools.

``SEC. 10222. ESTABLISHMENT OF PROGRAM; USE OF FUNDS.

    ``(a) In General.--In the case of each State that in accordance 
with section 10224 submits to the Secretary an application for a fiscal 
year, subject to section 10203, the Secretary shall make a grant for 
the year to the State for the uses specified in subsection (b). The 
grant shall consist of the allotment determined for the State under 
section 10223.
    ``(b) Authorized Activities.--Each State receiving a grant under 
this subpart shall use the funds provided under the grant to assist 
local educational agencies to develop or expand gifted and talented 
education programs through one or more of the following activities:
            ``(1) Development and implementation of programs to address 
        State and local needs for in-service training programs for 
        general educators, specialists in gifted and talented 
        education, administrators, or other personnel at the elementary 
        and secondary levels.
            ``(2) Making materials and services available through State 
        regional educational service centers, institutions of higher 
        education, or other entities.
            ``(3) Supporting innovative approaches and curricula used 
        by local educational agencies (or consortia of such agencies) 
        or schools or (consortia of schools).
            ``(4) Providing funds for challenging, high-level course 
        work, disseminated through new and emerging technologies 
        (including distance learning), for individual students or 
        groups of students in schools and local educational agencies 
        that do not have the resources otherwise to provide such course 
        work.
    ``(c) Competitive Process.--A State receiving a grant under this 
subpart shall distribute at least 95 percent of the amount of the grant 
to local educational agencies through a competitive process that 
results in an equitable distribution by geographic area within the 
State.
    ``(d) Limitations on Use of Funds.--
            ``(1) Course work provided through emerging technologies.--
        Activities under subsection (b)(4) may include development of 
        curriculum packages, compensation of distance-learning 
        educators, or other relevant activities, but funds provided 
        under this subpart may not be used for the purchase or 
        upgrading of technological hardware.
            ``(2) Administrative costs.--A State receiving a grant 
        under this subpart may use not more than 5 percent of the 
        amount of the grant for State administrative costs.

``SEC. 10223. ALLOTMENTS TO STATES.

    ``(a) Reservation of Funds.--From the amount made available to 
carry out this subpart for any fiscal year, the Secretary shall reserve 
\1/2\ of 1 percent for the Secretary of the Interior for programs under 
this subpart for teachers, other staff, and administrators in schools 
operated or funded by the Bureau of Indian Affairs.
    ``(b) State Allotments.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall allot the total amount made available to carry 
        out this subpart for any fiscal year and not reserved under 
        subsection (a) to the 50 States, the District of Columbia, and 
        the Commonwealth of Puerto Rico on the basis of their relative 
        populations of individuals aged 5 through 17, as determined by 
        the Secretary on the basis of the most recent satisfactory 
        data.
            ``(2) Minimum grant amount.--No State receiving an 
        allotment under paragraph (1) may receive less than \1/4\ of 1 
        percent of the total amount allotted under such paragraph.
    ``(c) Reallotment.--If any State does not apply for an allotment 
under this section for any fiscal year, the Secretary shall reallot 
such amount to the remaining States in accordance with this section.

``SEC. 10224. APPLICATION.

    ``(a) In General.--To be eligible to receive a grant under this 
subpart, a State shall submit an application to the Secretary at such 
time, in such manner, and containing such information as the Secretary 
may reasonably require.
    ``(b) Contents.--Each application under this section shall include 
assurances that--
            ``(1) funds received under this subpart will be used to 
        support gifted and talented students in public schools and 
        public charter schools, including students from all economic, 
        ethnic, and racial backgrounds, students of limited English 
        proficiency, students with disabilities, and highly gifted 
        students;
            ``(2) not less than 95 percent of the amount of the funds 
        provided under the grant shall be used for the purpose of 
        making, in accordance with this subpart and on a competitive 
        basis, subgrants to local educational agencies;
            ``(3) funds received under this subpart shall be used only 
        to supplement, but not supplant, the amount of State and local 
        funds expended for specialized education and related services 
        provided for the education of gifted and talented students; and
            ``(4) the State shall develop procedures to evaluate 
        program effectiveness.
    ``(c) Approval.--To the extent funds are made available for this 
subpart, the Secretary shall approve an application of a State if such 
application meets the requirements of this section.

``SEC. 10225. ANNUAL REPORTING.

    ``Beginning 1 year after the date of the enactment of the Student 
Results Act of 1999, a State receiving a grant under this subpart shall 
submit an annual report to the Secretary that describes the number of 
students served and the activities supported with funds provided under 
this subpart. The report shall include a description of the measures 
taken to comply with paragraphs (1) and (4) of section 10224(b). To the 
extent practicable and otherwise authorized by law, this report shall 
be submitted as part of any consolidated State performance report for 
State formula grant programs under this Act.

   ``Subpart 3--National Center for Research and Development in the 
          Education of Gifted and Talented Children and Youth

``SEC. 10231. CENTER FOR RESEARCH AND DEVELOPMENT.

    ``(a) 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 agencies, or a combination or consortium of such 
institutions and agencies and other public or private agencies and 
organizations, for the purpose of carrying out activities described in 
section 10212(b)(1).
    ``(b) 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 
institutions of higher education, State or local educational agencies, 
or other public or private agencies and organizations.
    ``(c) Coordination.--Scientifically based research activities 
supported under this subpart--
            ``(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 scientifically based 
        research activities which are jointly funded and carried out 
        with such Office.

                    ``Subpart 4--General Provisions

``SEC. 10241. 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. 10242. 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.

``SEC. 10243. DEFINITIONS.

    ``For purposes of this part:
            ``(1) The term `scientifically based research'--
                    ``(A) means the application of rigorous, 
                systematic, and objective procedures to obtain valid 
                knowledge relevant to the education of gifted and 
                talented children; and
                    ``(B) shall include research that--
                            ``(i) employs systematic, empirical methods 
                        that draw on observation or experiment;
                            ``(ii) involves rigorous data analyses that 
                        are adequate to test the stated hypotheses and 
                        justify the general conclusions drawn;
                            ``(iii) relies on measurements or 
                        observational methods that provide valid data 
                        across evaluators and observers and across 
                        multiple measurements and observations; and
                            ``(iv) has been accepted by a peer-reviewed 
                        journal or approved by a panel of independent 
                        experts through a comparably rigorous, 
                        objective, and scientific review.
            ``(2) State.--The term `State' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 10244. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Subpart 1 or 2.--Subject to section 10203, there are 
authorized to be appropriated $10,000,000 to carry out subpart 1 or 2 
for fiscal year 2000 and such sums as may be necessary for each of 
fiscal years 2001 through 2004.
    ``(c) Subpart 3.--There are authorized to be appropriated to carry 
out subpart 3 $1,950,000 for each of fiscal years 2000 through 2004.''.

                  TITLE VI--RURAL EDUCATION ASSISTANCE

SEC. 601. RURAL EDUCATION.

    Part J of title X of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 8271 et seq.) is amended to read as follows:

                  ``PART J--RURAL EDUCATION INITIATIVE

``SEC. 10951. SHORT TITLE.

    ``This part may be cited as the `Rural Education Initiative Act of 
1999'.

``SEC. 10952. FINDINGS.

    ``Congress finds the following:
            ``(1) The National Center for Educational Statistics 
        reports that 46 percent of our Nation's public schools serve 
        rural areas.
            ``(2) While there are rural education initiatives 
        identified at the State and local level, no Federal education 
        policy focuses on the specific and unique needs of rural school 
        districts and schools.
            ``(3) Small school districts often cannot use Federal grant 
        funds distributed by formula because the formula allocation 
        does not provide enough revenue to carry out the program the 
        grant is intended to fund.
            ``(4) Rural schools often cannot compete for Federal 
        funding distributed by competitive grants because the schools 
        lack the personnel needed to prepare grant applications and the 
        resources to hire specialists in the writing of Federal grant 
        proposals.
            ``(5) A critical problem for rural school districts 
        involves the hiring and retention of qualified administrators 
        and certified teachers (especially in reading, science, and 
        mathematics). As a result, teachers in rural schools are almost 
        twice as likely to provide instruction in 3 or more subject 
        areas than teachers in urban schools. Rural schools also face 
        other tough challenges, such as shrinking local tax bases, high 
        transportation costs, aging buildings, limited course 
        offerings, and limited resources.

              ``Subpart 1--Small and Rural School Program

``SEC. 10961. FORMULA GRANT PROGRAM AUTHORIZED.

    ``(a) Alternative Uses.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, an eligible local educational agency may use the 
        applicable funding, that the agency is eligible to receive from 
        the State educational agency for a fiscal year, to support 
        local or statewide education reform efforts intended to improve 
        the academic achievement of elementary school and secondary 
        school students and the quality of instruction provided for the 
        students.
            ``(2) Notification.--An eligible local educational agency 
        shall notify the State educational agency of the local 
        educational agency's intention to use the applicable funding in 
        accordance with paragraph (1) not later than a date that is 
        established by the State educational agency for the 
        notification.
    ``(b) Eligibility.--
            ``(1) In general.--A local educational agency shall be 
        eligible to use the applicable funding in accordance with 
        subsection (a) if--
                    ``(A)(i) the total number of students in average 
                daily attendance at all of the schools served by the 
                local educational agency is less than 600; and
                    ``(ii) all of the schools served by the local 
                educational agency are located in a community with a 
                Rural-Urban Continuum Code of 6, 7, 8, or 9, as 
                determined by the Secretary of Agriculture; or
            ``(B) the agency meets the criteria established in 
        subparagraph (A)(i) and the Secretary, in accordance with 
        paragraph (2), grants the local educational agency's request to 
        waive the criteria described in subparagraph (A)(ii).
            ``(2) Certification.--The Secretary shall determine whether 
        or not to waive the criteria described in paragraph (1)(A)(ii) 
        based on certification provided by the local educational 
        agency, or the State educational agency on behalf of the local 
        educational agency, that the local educational agency is 
        located in an area defined as rural by a governmental agency of 
        the State.
    ``(c) Applicable Funding.--In this section, the term `applicable 
funding' means funds provided under each of titles II, IV, VI, parts A 
and C of title VII, and part I of title X.
    ``(d) Disbursal.--Each State educational agency that receives 
applicable funding for a fiscal year shall disburse the applicable 
funding to local educational agencies for alternative uses under this 
section for the fiscal year at the same time that the State educational 
agency disburses the applicable funding to local educational agencies 
that do not intend to use the applicable funding for such alternative 
uses for the fiscal year.
    ``(e) Supplement Not Supplant.--Funds used under this section shall 
be used to supplement and not supplant any other Federal, State, or 
local education funds that would otherwise be available for the purpose 
of this subpart.
    ``(f) Special Rule.--References in Federal law to funds for the 
provisions of law set forth in subsection (c) may be considered to be 
references to funds for this section.

``SEC. 10962. PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award grants to 
eligible local educational agencies to enable the local educational 
agencies to support local or statewide education reform efforts 
intended to improve the academic achievement of elementary school and 
secondary school students and the quality of instruction provided for 
the students.
    ``(b) Eligibility.--
            ``(1) In general.--A local educational agency shall be 
        eligible to receive a grant under this section if--
                    ``(A)(i) the total number of students in average 
                daily attendance at all of the schools served by the 
                local educational agency is less than 600; and
                    ``(ii) all of the schools served by the local 
                educational agency are located in a community with a 
                Rural-Urban Continuum Code of 6, 7, 8, or 9, as 
                determined by the Secretary of Agriculture; or
            ``(B) the agency meets the criteria established in 
        subparagraph (A)(i) and the Secretary, in accordance with 
        paragraph (2), grants the local educational agency's request to 
        waive the criteria described in subparagraph (A)(ii).
            ``(2) Certification.--The Secretary shall determine whether 
        or not to waive the criteria described in paragraph (1)(A)(ii) 
        based on certification provided by the local educational 
        agency, or the State educational agency on behalf of the local 
        educational agency, that the local educational agency is 
        located in an area defined as rural by a governmental agency of 
        the State.
    ``(c) Allocation.--
            ``(1) In general.--Except as provided in paragraph (3), the 
        Secretary shall award a grant to an eligible local educational 
        agency for a fiscal year in an amount equal to the initial 
        amount determined under paragraph (2) for the fiscal year minus 
        the total amount received under the provisions of law described 
        under section 10961(c) for the preceding fiscal year.
            ``(2) Determination of the initial amount.--The initial 
        amount referred to in paragraph (1) is equal to $100 multiplied 
        by the total number of students, over 50 students, in average 
        daily attendance in such eligible agency plus $20,000, except 
        that the initial amount may not exceed $60,000.
            ``(3) Ratable adjustment.--
                    ``(A) In general.--If the amount made available for 
                this subpart for any fiscal year is not sufficient to 
                pay in full the amounts that local educational agencies 
                are eligible to receive under paragraph (1) for such 
                year, the Secretary shall ratably reduce such amounts 
                for such year.
                    ``(B) Additional amounts.--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.
            ``(5) Census determination.--
                    ``(A) In general.--Each local educational agency 
                desiring a grant under this section shall conduct a 
                census not later than December 1 of each year to 
                determine the number of kindergarten through grade 12 
                students in average daily attendance at the schools 
                served by the local educational agency.
                    ``(B) Submission.--Each local educational agency 
                shall submit the number described in subparagraph (A) 
                to the Secretary not later than March 1 of each year.
    ``(d) Disbursal.--The Secretary shall disburse the funds awarded to 
a local educational agency under this section for a fiscal year not 
later than July 1 of that year.
    ``(e) Special Rule.--A local educational agency that is eligible to 
receive a grant under this subpart for a fiscal year shall be 
ineligible to receive funds for such fiscal year under subpart 2.
    ``(f) Supplement Not Supplant.--Funds made available under this 
section shall be used to supplement and not supplant any other Federal, 
State or local education funds.

``SEC. 10963. ACCOUNTABILITY.

    ``(a) Academic Achievement.--
            ``(1) In general.--Each local educational agency that uses 
        or receives funds under section 10961 or 10962 for a fiscal 
        year shall administer an assessment consistent with section 
        1111 of title I.
            ``(2) Special rule.--Each local educational agency that 
        uses or receives funds under section 10961 or 10962 shall use 
        the same assessment described in paragraph (1) for each year of 
        participation in the program under such section.
    ``(b) State Educational Agency Determination Regarding Continuing 
Participation.--Each State educational agency that receives funding 
under the provisions of law described in section 10961(c) shall--
            ``(1) after the 2d year that a local educational agency 
        participates in a program under section 10961 or 10962 and on 
        the basis of the results of the assessments described in 
        subsection (a), determine whether the students served by the 
        local educational agency participating in the program performed 
        in accordance with section 1111 of title I; and
            ``(2) only permit those local educational agencies that so 
        participated and met the requirements of section 1111(b)(2) of 
        title I to continue to so participate.

            ``Subpart 2--Low-Income And Rural School Program

``SEC. 10971. PROGRAM AUTHORIZED.

    ``(a) Reservations.--From amounts appropriated under section 10982 
for this subpart for a fiscal year, the Secretary shall reserve \1/2\ 
of 1 percent to make awards to elementary or secondary schools operated 
or supported by the Bureau of Indian Affairs to carry out the purpose 
of this subpart.
    ``(b) Grants to States.--
            ``(1) In general.--From amounts appropriated under section 
        10982 for this subpart that are not reserved under subsection 
        (a), the Secretary shall award grants for a fiscal year to 
        State educational agencies that have applications approved 
        under section 10973 to enable the State educational agencies to 
        award subgrants to eligible local educational agencies for 
        local authorized activities described in subsection (c)(2).
            ``(2) Allocation.--From amounts appropriated for this 
        subpart, the Secretary shall allocate to each State educational 
        agency for a fiscal year an amount that bears the same ratio to 
        the amount of funds appropriated under section 10982 for this 
        subpart that are not reserved under subsection (a) as the 
        number of students in average daily attendance served by 
        eligible local educational agencies in the State bears to the 
        number of all such students served by eligible local 
        educational agencies in all States for that fiscal year.
            ``(3) Direct awards to specially qualified agencies.--
                    ``(A) Nonparticipating state.--If a State 
                educational agency elects not to participate in the 
                program under this subpart or does not have an 
                application approved under section 10973 a specially 
                qualified agency in such State desiring a grant under 
                this subpart shall apply directly to the Secretary to 
                receive an award under this subpart.
                    ``(B) Direct awards to specially qualified 
                agencies.--The Secretary may award, on a competitive 
                basis, the amount the State educational agency is 
                eligible to receive under paragraph (2) directly to 
                specially qualified agencies in the State.
    ``(c) Local Awards.--
            ``(1) Eligibility.--A local educational agency shall be 
        eligible to receive funds under this subpart if--
                    ``(A) 20 percent or more of the children aged 5 to 
                17, inclusive, served by the local educational agency 
                are from families with incomes below the poverty line; 
                and
                    ``(B) all of the schools served by the agency are 
                located in a community with a Rural-Urban Continuum 
                Code of 6, 7, 8, or 9, as determined by the Secretary 
                of Agriculture.
            ``(2) Uses of funds.--Grant funds awarded to local 
        educational agencies or made available to schools under this 
        subpart shall be used for--
            ``(1) educational technology, including software and 
        hardware;
            ``(2) professional development;
            ``(3) technical assistance;
            ``(4) teacher recruitment and retention;
            ``(5) parental involvement activities; or
            ``(6) academic enrichment programs.

``SEC. 10972. STATE DISTRIBUTION OF FUNDS.

    ``(a) Award Basis.--A State educational agency shall award grants 
to eligible local educational agencies--
            ``(1) on a competitive basis; or
            ``(2) according to a formula based on the number of 
        students in average daily attendance served by the eligible 
        local educational agencies or schools (as appropriate) in the 
        State, as determined by the State.
    ``(b) Administrative Costs.--A State educational agency receiving a 
grant under this subpart may not use more than 5 percent of the amount 
of the grant for State administrative costs.

``SEC. 10973. APPLICATIONS.

    ``Each State educational agency and specially qualified agency 
desiring to receive 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 require. Such 
application shall include specific measurable goals and objectives to 
be achieved which may include specific educational goals and objectives 
relating to increased student academic achievement, decreased student 
drop-out rates, or such other factors that the State educational agency 
or specially qualified agency may choose to measure.

``SEC. 10974. REPORTS.

    ``(a) State Reports.--Each State educational agency that receives a 
grant under this subpart shall provide an annual report to the 
Secretary. The report shall describe--
            ``(1) the method the State educational agency used to award 
        grants to eligible local educational agencies and to provide 
        assistance to schools under this subpart;
            ``(2) how local educational agencies and schools used funds 
        provided under this subpart; and
            ``(3) the degree to which progress has been made toward 
        meeting the goals and objectives described in the application 
        submitted under section 10973.
    ``(b) Specially Qualified Agency Report.--Each specially qualified 
agency that receives a grant under this subpart shall provide an annual 
report to the Secretary. Such report shall describe--
            ``(1) how such agency uses funds provided under this 
        subpart; and
            ``(2) the degree to which progress has been made toward 
        meeting the goals and objectives described in the application 
        submitted under section 10971(b)(4)(A).
    ``(c) Report to Congress.--The Secretary shall prepare and submit 
to the Committee on Education and the Workforce for the House of 
Representatives and the Committee on Health, Education, Labor, and 
Pensions for the Senate an annual report. The report shall describe--
            ``(1) the methods the State educational agency used to 
        award grants to eligible local educational agencies and to 
        provide assistance to schools under this subpart;
            ``(2) how eligible local educational agencies and schools 
        used funds provided under this subpart; and
            ``(3) progress made in meeting specific measurable 
        educational goals and objectives.

``SEC. 10975. DEFINITIONS.

    ``For the purposes of this subpart--
            ``(1) The term `poverty line' means the 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 (42 U.S.C. 9902(2))) applicable to a 
        family of the size involved.
            ``(2) The term `specially qualified agency' means an 
        eligible local educational agency, located in a State that does 
        not participate in a program under this subpart in a fiscal 
        year, that may apply directly to the Secretary for a grant in 
        such year in accordance with section 10971(b)(4).

                    ``Subpart 3--General Provisions

``SEC. 10981. 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.

``SEC. 10982. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$125,000,000 for fiscal year 2000 and such sums as may be necessary for 
each of 4 succeeding fiscal years to be distributed equally between 
subparts 1 and 2.''.

    TITLE VII--MCKINNEY HOMELESS EDUCATION IMPROVEMENTS ACT OF 1999

SEC. 701. SHORT TITLE.

    This title may be cited as the ``Stewart B. McKinney Homeless 
Education Assistance Improvements Act of 1999''.

SEC. 702. FINDINGS.

    Congress makes the following findings:
            (1) An estimated 1,000,000 children in the United States 
        will experience homelessness this year.
            (2) Homelessness has a devastating impact on the 
        educational opportunities of children and youth; homeless 
        children go hungry at more than twice the rate of other 
        children; have 4 times the rate of delayed development; and are 
        twice as likely to repeat a grade.
            (3) Despite steady progress in school enrollment and 
        attendance resulting from the passage in 1987 of the Stewart B. 
        McKinney Homeless Assistance Act, homeless students still face 
        numerous barriers to education, including residency, 
        guardianship and registration requirements, as well as delays 
        in the transfer of school records, and inadequate 
        transportation service.
            (4) School is one of the few secure factors in the lives of 
        homeless children and youth, providing stability, structure, 
        and accomplishment during a time of great upheaval.
            (5) Homeless children and youth need to remain in school so 
        that they acquire the skills necessary to escape poverty and 
        lead productive, healthy lives as adults.
            (6) In the 12 years since the passage of the McKinney Act, 
        educators and service providers have learned much about 
        policies and practices which help remove the barriers 
        described.

SEC. 703. PURPOSE.

    The purpose of this title is to strengthen subtitle B of title VII 
of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11431 et 
seq.) by amending it--
            (1) to include innovative practices, proven to be effective 
        in helping homeless children and youth enroll, attend, and 
        succeed in school; and
            (2) to help ensure that such individuals receive a quality 
        education and secure their chance for a brighter future.

SEC. 704. EDUCATION FOR HOMELESS CHILDREN AND YOUTH.

    Subtitle B of title VII of the Stewart B. McKinney Homeless 
Education 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 Congress that--
            ``(1) each State educational agency ensure that each child 
        of a homeless individual and each homeless youth has equal 
        access to the same free, 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 review and undertake steps to revise such 
        laws, regulations, practices, or policies to ensure that 
        homeless children and youth are afforded the same free, public 
        education as provided to other children and youth;
            ``(3) homelessness alone is not 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 United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands, according to 
        their respective need for assistance under this subtitle, as 
        determined by the Secretary.
            ``(B)(i) The Secretary shall 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 United States Virgin Islands, 
        Guam, American Samoa, and the Commonwealth of the Northern 
        Mariana Islands.
    ``(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 homeless children, and 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, as the 
        subtitle was then in effect, 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, as the subtitle was 
        then in effect, 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.
            ``(3) Prohibition on segregating homeless students.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) and section 723(a)(2)(B)(ii), in 
                providing a free, public education to a homeless child 
                or youth, no State receiving funds under this subtitle 
                shall segregate such child or youth, either in a 
                separate school, or in a separate program within a 
                school, based solely on such child or youth's status as 
                homeless.
                    ``(B) Exception.--A State that has established a 
                separate school for homeless children in the fiscal 
                year preceding the date of the enactment of the Stewart 
                B. McKinney Homeless Education Assistance Improvement 
                Act of 1999 shall remain eligible to receive funds 
                under this subtitle for such program.
    ``(f) Functions of the Office of Coordinator.--The Coordinator of 
Education of Homeless Children and Youth established in each State 
shall--
            ``(1) 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;
            ``(2) develop and carry out the State plan described in 
        subsection (g);
            ``(3) collect and transmit to the Secretary, information 
        gathered pursuant to paragraphs (1) and (2), at such time and 
        in such manner as the Secretary may require;
            ``(4) 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
            ``(5) in order to improve the provision of comprehensive 
        education and related services to homeless children and youth 
        and their families, coordinate and collaborate with--
                    ``(A) educators, including child development and 
                preschool program personnel;
                    ``(B) providers of services to homeless and runaway 
                children and youth and homeless families (including 
                domestic violence agencies, shelter operators, 
                transitional housing facilities, runaway and homeless 
                youth centers, and transitional living programs for 
                homeless youth);
                    ``(C) local educational agency liaisons for 
                homeless children and youth; and
                    ``(D) community organizations and groups 
                representing 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, 
                enrollment personnel, and pupil services 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)(3);
                    ``(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 shall 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 assurances that--
                            ``(i) except as provided in subsection 
                        (e)(3)(B), State and local educational agencies 
                        will adopt policies and practices to ensure 
                        that homeless children and youth are not 
                        segregated solely on the basis of their status 
                        as homeless; and
                            ``(ii) designate an appropriate staff 
                        person, who may also be a coordinator for other 
                        Federal programs, as a liaison for homeless 
                        children and youth.
            ``(2) Compliance.--Each plan adopted under this subsection 
        shall also demonstrate 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) In general.--Each local educational agency 
                serving a homeless child or youth 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 duration of their 
                                homelessness;
                                    ``(II) if the child becomes 
                                permanently housed, for the remainder 
                                of the academic year; or
                                    ``(III) 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 
                        public school that nonhomeless students who 
                        live in the attendance area in which the child 
                        or youth is actually living are eligible to 
                        attend.
                    ``(B) Best interest.--In determining the best 
                interest of the child or youth under subparagraph (A), 
                the local educational agency shall keep, to the extent 
                feasible, a homeless child or youth in the school of 
                origin, except when doing so is contrary to the wishes 
                of the child's or youth's parent or guardian.
                    ``(C) Enrollment.--(i) Except as provided in clause 
                (iii), a school that a homeless child seeks to enroll 
                in shall, in accordance with this paragraph, 
                immediately enroll the homeless child or youth even if 
                the child or youth is unable to produce records 
                normally required for enrollment, such as previous 
                academic records, proof of residency, or other 
                documentation.
                    ``(ii) The enrolling school shall immediately 
                contact the school last attended by the child or youth 
                to obtain relevant academic and other records.
                    ``(iii) A school described in clause (i) is not 
                required to accept a homeless child until the school 
                receives the immunization records for such child. If 
                the child or youth needs to obtain immunizations, the 
                enrolling school shall promptly refer parent or 
                guardian of the child or youth to the appropriate 
                authorities. If a child is denied enrollment because of 
                the lack of immunization records, the school denying 
                such enrollment shall refer the parents of the homeless 
                child or youth to the liaison in accordance with 
                subparagraph (E).
                    ``(D) 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--
                            ``(i) so that the records are available, in 
                        a timely fashion, when a child or youth enters 
                        a new school district; and
                            ``(ii) in a manner consistent with section 
                        444 of the General Education Provisions Act.
                    ``(E) Enrollment disputes.--If there is a dispute 
                over school selection or enrollment--
                            ``(i) except as provided in subparagraph 
                        (C)(iii), the child or youth shall be 
                        immediately admitted to the school in which 
                        enrollment is sought, pending resolution of the 
                        dispute;
                            ``(ii) the parent or guardian shall be 
                        provided with a written explanation of the 
                        school's decision regarding enrollment, 
                        including the right to appeal the decision; and
                            ``(iii) the parent or guardian shall be 
                        referred to the liaison, who shall carry out 
                        the dispute resolution process as described in 
                        paragraph (6)(D) as expeditiously as possible, 
                        after receiving notice of the dispute.
                    ``(F) Placement choice.--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.
                    ``(G) Definition.--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.
                    ``(H) Contact information.--Nothing in this 
                subtitle shall prohibit a local educational agency from 
                requiring a parent or guardian of a homeless child to 
                submit contact information required by the local 
                educational agency of a parent or guardian of a 
                nonhomeless child.
            ``(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 (20 U.S.C. 6301 et seq.) 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 and technical 
                education;
                    ``(D) programs for gifted and talented students; 
                and
                    ``(E) school nutrition programs.
            ``(5) Coordination.--
                    ``(A) In general.--Each local educational agency 
                serving homeless children and youth that receives 
                assistance under this subtitle shall coordinate the 
                provision of services under this subtitle with local 
                social services agencies and other agencies or programs 
                providing services to homeless children and youth and 
                their families, including services and programs funded 
                under the Runaway and Homeless Youth Act. (42 U.S.C. 
                5701 et seq.).
                    ``(B) Housing assistance.--If 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-
                Gonzales National Affordable Housing Act (42 U.S.C. 
                12705) to minimize educational disruption for children 
                and youth who become homeless.
                    ``(C) Coordination purpose.--The coordination 
                required under subparagraphs (A) and (B) shall be 
                designed to--
                            ``(i) ensure that homeless children and 
                        youth have access to available education and 
                        related support services; and
                            ``(ii) raise the awareness of school 
                        personnel and service providers of the effects 
                        of short-term stays in a shelter and other 
                        challenges associated with homeless children 
                        and youth.
            ``(6) Liaison.--
                    ``(A) Duties.--Each local liaison for homeless 
                children and youth, designated pursuant to subsection 
                (g)(1)(H)(ii), shall ensure that--
                            ``(i) homeless children and youth enroll 
                        in, and have an equal opportunity to succeed 
                        in, schools of that agency;
                            ``(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;
                            ``(iii) the parents or guardians of 
                        homeless children and youth are informed of the 
                        education and related opportunities available 
                        to their children and are provided with 
                        meaningful opportunities to participate in the 
                        education of their children; and
                            ``(iv) public notice of the educational 
                        rights of homeless children and youth is 
                        disseminated where such children and youth 
                        receive services under this Act (such as family 
                        shelters and soup kitchens).
                    ``(B) Notice.--State coordinators and local 
                educational agencies shall inform school personnel, 
                service providers, and advocates working with homeless 
                families of the duties of the liaisons.
                    ``(C) Local and state coordination.--Local 
                educational agency liaisons for homeless children and 
                youth shall, as a part of their duties, coordinate and 
                collaborate with State coordinators and community and 
                school personnel responsible for the provision of 
                education and related services to homeless children and 
                youth.
                    ``(D) Dispute resolution.--Unless another 
                individual is designated by State law, the local 
                educational agency liaisons for homeless children and 
                youth shall provide resource information and assist in 
                resolving disputes under this subtitle, should they 
                arise.
            ``(7) Review and revisions.--
                    ``(A) In general.--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).
                    ``(B) Consideration.--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.
                    ``(C) Special attention.--Special attention shall 
                be given to ensuring the enrollment and attendance of 
                homeless children and youth who are not currently 
                attending school.

``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.--
                    ``(A) In general.--Services under paragraph (1)--
                            ``(i) may be provided through programs on 
                        school grounds or at other facilities;
                            ``(ii) shall, to the maximum extent 
                        practicable, be provided through existing 
                        programs and mechanisms that integrate homeless 
                        children and youth with nonhomeless children 
                        and youth; and
                            ``(iii) shall be designed to expand or 
                        improve services provided as part of a school's 
                        regular academic program, but not replace that 
                        program.
                    ``(B) Services on school grounds.--If services 
                under paragraph (1) are provided on school grounds, 
                schools--
                            ``(i) may use funds under this subtitle to 
                        provide the same 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, subject to the 
                        requirements of clause (ii).
                            ``(ii) except as otherwise provided in 
                        section 722(e)(3)(B), shall not provide 
                        services in settings within a school that 
                        segregates homeless children and youth from 
                        other children and youth except as is necessary 
                        for short periods of time--
                                    ``(I) for health and safety 
                                emergencies; or
                                    ``(II) to provide temporary, 
                                special, supplementary services to meet 
                                the unique needs of homeless children 
                                and youth.
            ``(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. Each such application shall include--
            ``(1) an assessment of the educational and related needs of 
        homeless children and youth in such agency (which may be 
        undertaken as a part of needs assessments for other 
        disadvantaged groups);
            ``(2) 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;
            ``(3) 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;
            ``(4) an assurance that the applicant complies with, or 
        will use requested funds to comply with, paragraphs (3) through 
        (7) of section 722(g); and
            ``(5) a description of policies and procedures, consistent 
        with section 722(e)(3)(B), 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 the requirements of this subtitle and from 
        amounts made available to it under section 726, make 
        competitive subgrants that result in an equitable distribution 
        of geographic areas within the State to local educational 
        agencies that submit applications under subsection (b). Such 
        subgrants shall be awarded on the basis of the need of such 
        agencies for assistance under this subtitle and the quality of 
        the applications submitted.
            ``(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, and meets the 
                requirements of section 722(g)(3);
                    ``(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 State agency 
                determines appropriate.
            ``(3) Quality.--In determining the quality of applications 
        under paragraph (1), the State educational agency shall 
        consider--
                    ``(A) the applicant's needs assessment under 
                subsection (b)(1) and the likelihood that the program 
                presented in the application will meet such needs;
                    ``(B) the types, intensity, and coordination of the 
                services to be provided under the program;
                    ``(C) the involvement of parents or guardians;
                    ``(D) the extent to which homeless children and 
                youth will be integrated within the regular education 
                program;
                    ``(E) the quality of the applicant's evaluation 
                plan for the program;
                    ``(F) the extent to which services provided under 
                this subtitle will be coordinated with other available 
                services; and
                    ``(G) such other measures as the State educational 
                agency considers indicative of a high-quality program.
            ``(4) 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 and 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 and technical education, and 
        school nutrition 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)(A), 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) if 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 plan submitted by a 
State educational agency 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, 
if requested by the State educational agency.
    ``(c) Report.--The Secretary shall develop and issue not later than 
60 days after the date of enactment of the Stewart B. McKinney Homeless 
Education Assistance Improvements Act of 1999, a report to be made 
available to States, local educational agencies, and other applicable 
agencies regarding the following:
            ``(1) Enrollment.--Such report shall review successful ways 
        in which a State may assist local educational agencies to 
        enroll homeless students on an immediate basis. The report 
        issued by the Secretary shall--
                    ``(A) clarify that enrollment includes a homeless 
                child's or youth's right to actually attend school; and
                    ``(B) clarify requirements that States are to 
                review immunization and medical or school records and 
                to make such revisions as appropriate and necessary in 
                order to enroll homeless students in school more 
                quickly.
            ``(2) Transportation.--The report shall also address the 
        transportation needs of homeless students. The report issued by 
        the Secretary shall--
                    ``(A) explicitly state that the goal of the 
                transportation provisions contained in this Act is to 
                provide educational stability by reducing mobility and 
                therefore provide an effective learning environment for 
                homeless children; and
                    ``(B) encourage States to follow programs 
                implemented in State law that have successfully 
                addressed transportation barriers for homeless 
                children.
    ``(d) 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.
    ``(e) 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.
    ``(f) Determination by Secretary.--The Secretary, based on the 
information received from the States and information gathered by the 
Secretary under subsection (e), 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).
    ``(g) Information.--
            ``(1) In general.--From funds appropriated under section 
        726, the Secretary shall, either directly or through grants, 
        contracts, or cooperative agreements, periodically collect and 
        disseminate data and information regarding--
                    ``(A) the number and location of homeless children 
                and youth;
                    ``(B) the education and related services such 
                children and youth receive;
                    ``(C) the extent to which such needs are being met; 
                and
                    ``(D) such other data and information as the 
                Secretary deems necessary and relevant to carry out 
                this subtitle.
            ``(2) Coordination.--The Secretary shall coordinate such 
        collection and dissemination with other agencies and entities 
        that receive assistance and administer programs under this 
        subtitle.
    ``(h) Report.--Not later than 4 years after the date of the 
enactment of the Stewart B. McKinney Homeless Education Assistance 
Improvement Act of 1999, the Secretary shall prepare and submit to the 
President and the Committee on Education and the Workforce of the House 
of Representatives and the Committee on Health, Education, Labor, and 
Pensions of the Senate a report on the status of education of homeless 
children and youth, which shall include information on--
            ``(1) the education of homeless children and youth; and
            ``(2) the effectiveness of the programs supported under 
        this subtitle.

``SEC. 725. DEFINITIONS.

    ``For the purpose of this subtitle, unless otherwise stated--
            ``(1) the terms `local educational agency' and `State 
        educational agency' have the same meanings given such terms 
        under section 14101, of the Elementary and Secondary Education 
        Act of 1965 (20 U.S.C. 8801);
            ``(2) the term ``Secretary'' means the Secretary of 
        Education; and
            ``(3) 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 $36,000,000 for fiscal year 2000 and such 
sums as may be necessary for each of the fiscal years 2001 through 
2004.''.

               TITLE VIII--SCHOOLWIDE PROGRAM ADJUSTMENT

SEC. 801. SCHOOLWIDE FUNDS.

    The Act is amended by adding at the end the following:

               ``TITLE XVI--SCHOOLWIDE PROGRAM ADJUSTMENT

``SEC. 16001. SCHOOLWIDE PROGRAM ADJUSTMENT.

    ``Notwithstanding the provisions of section 1114, a local 
educational agency may consolidate funds under part A of title I, 
together with other Federal, State, and local funds, in order to 
upgrade the entire educational program of a school that serves an 
eligible school attendance area in which not less than 40 percent of 
the children are from low-income families, or not less than 40 percent 
of the children enrolled in the school are from such families.''.