[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 4141 Introduced in House (IH)]

  2d Session
                                H. R. 4141

 To amend the Elementary and Secondary Education Act of 1965, and for 
                            other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 30, 2000

 Mr. Goodling (for himself, Mr. Castle, Mr. McKeon, Mr. Ballenger, Mr. 
    Petri, Mrs. Roukema, Mr. Boehner, Mr. Barrett of Nebraska, Mr. 
  Hilleary, Mr. Greenwood, Mr. DeMint, Mr. Isakson, Mr. Fletcher, Mr. 
    McIntosh, Mr. Norwood, Mr. Upton, and Mr. Sam Johnson of Texas) 
 introduced the following bill; which was referred to the Committee on 
                      Education and the Workforce

_______________________________________________________________________

                                 A BILL


 
 To amend the Elementary and Secondary Education Act of 1965, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Education Opportunities To Protect 
and Invest In Our Nation's Students (Education OPTIONS) Act''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents for this Act is as follows:

                        TITLE I--TRANSFERABILITY

Sec. 101. Short title.
Sec. 102. Purpose.
Sec. 103. Transferability.
          TITLE II--DRUG AND VIOLENCE PREVENTION AND EDUCATION

Sec. 201. DRUG AND VIOLENCE PREVENTION AND EDUCATION
                      TITLE III--TECH FOR SUCCESS

Sec. 301. Tech for success.
                TITLE IV--INNOVATIVE EDUCATION PROGRAMS

Sec. 401. Innovative education program strategies.
               TITLE V--PROGRAMS OF NATIONAL SIGNIFICANCE

             Part A--Fund for the Improvement of Education

Sec. 501. Fund for the improvement of education.
                         Part B--Arts Education

Sec. 511. Arts education.
                     Part C--Public Charter Schools

Sec. 521. Public charter schools.
                        Part D--Civic Education

Sec. 531. Civic education.
                      TITLE VI--GENERAL PROVISIONS

Sec. 601. General provisions.
Sec. 602. Repeals.
Sec. 603. Effective date.

SEC. 3. PURPOSE.

    The purpose of this Act is to provide States and local school 
districts with--
            (1) resources to provide safe learning environments for all 
        students;
            (2) flexibility in managing Federal elementary and 
        secondary education programs and the option to transfer certain 
        education funds between formula programs to more effectively 
        serve their students;
            (3) technologies to enhance academic coursework and prepare 
        for the challenges of the 21st century; and
            (4) less bureaucracy and paperwork and more dollars to the 
        classroom for principals, teachers, and students.

                        TITLE I--TRANSFERABILITY

SEC. 101. SHORT TITLE.

    This title may be cited as the ``State and Local Transferability 
Act''.

SEC. 102. PURPOSE.

    The purpose of this title is to grant flexibility to States and 
school districts to target--
            (1) Federal funds to Federal programs that most effectively 
        address the unique needs of States and localities; and
            (2) additional Federal funds to title I programs.

SEC. 103. TRANSFERABILITY.

    Part B of title XIV of the Elementary and Secondary Education Act 
of 1965 (20 U.S.C. 8801 et seq.) is amended by adding at the end the 
following:

``SEC. 14206. TRANSFERABILITY.

    ``(a) State Transfer Authority.--
            ``(1) In general.--A State may transfer up to 100 percent 
        of nonadministrative State funds allocated to such State which 
        are authorized to be used for State-level activities under any 
        of the following provisions to the allocation of the State 
        under any other of such provisions:
                    ``(A) Title II (excluding national activities).
                    ``(B) Subpart 2 of part A of title III.
                    ``(C) Part A of title IV.
                    ``(D) Title VI.
                    ``(E) Part C of title VII.
                    ``(F) Comprehensive school reform programs as 
                authorized under section 1502 as described on pages 96-
                99 of the Joint Statement of the Committee of 
                Conference included in House Report 105-390 (Conference 
                Report on the Departments of Labor, Health and Human 
                Services, and Education, and Related Agencies 
                Appropriations Act, 1998).
            ``(2) Supplemental funds for title i.--A State may transfer 
        any funds allocated to the State under a provision listed in 
        paragraph (1) to its allocation under title I.
    ``(b) Local Educational Agency Transfer Authority.--
            ``(1) Transfer of funds.--
                    ``(A) In general.--Subject to subparagraphs (C), 
                (D), and (E), a local educational agency may transfer 
                funds allocated to such agency under any of the 
                provisions listed in paragraph (2).
                    ``(B) Supplemental funds for title i.--Subject to 
                subparagraphs (C), (D), and (E), a local educational 
                agency may transfer funds allocated to such agency 
                under a provision listed in paragraph (2) to its 
                allocation under title I.
                    ``(C) Under 30 percent.--A transfer under 
                subparagraph (A) or (B) of up to 30 percent of the 
                funds allocated to a local educational agency under a 
                provision listed in paragraph (2) in a fiscal year may 
                be made without State approval.
                    ``(D) Over 30 percent.--Subject to paragraph (3), a 
                transfer under subparagraph (A) or (B) in a fiscal year 
                of funds allocated to a local educational agency under 
                a provision listed in paragraph (2) in a fiscal year 
                the amount of which, when added to the amount of other 
                transfers by the agency of such funds in such fiscal 
                year, is more than 30 percent of such funds may be made 
                only with the approval of the State.
                    ``(E) Title ii transfers.--If a local educational 
                agency provides assurances that the amount of funds 
                expended for professional development in mathematics 
                and science under title II in a fiscal year will equal 
                or exceed the amount of funds expended for the year 
                preceding the date of enactment of the Education 
                OPTIONS Act such agency may transfer funds allocated to 
                it under title II.
            ``(2) Applicable provisions.--The provisions from which a 
        local educational agency may transfer funds under this 
        subsection are as follows:
                    ``(A) Title II (excluding national activities).
                    ``(B) Subpart 2 of part A of title III.
                    ``(C) Part A of title IV.
                    ``(D) Title VI.
                    ``(E) Part C of title VII.
                    ``(F) Section 310 of the Department of Education 
                Act, 2000, included in the Departments of Labor, Health 
                and Human Services, and Education, and Related Agencies 
                Appropriations Act, 2000 (as enacted into law by 
                section 1004(a)(4) of Public Law 106-113).
            ``(3) Special approval.--If a local educational agency 
        submits to its State a written request to make a transfer under 
        this subsection that requires State approval, such transfer 
        shall be deemed approved by the State unless the State, within 
        60 days after receipt of such transfer request, disapproves 
        such request or promptly notifies the agency in writing of such 
        revisions as may be necessary before the State will approve the 
        transfer.
    ``(c) Limitation.--A State or a local educational agency may not 
transfer any funds allocated to it under title I to any other program 
under this Act.
    ``(d) State Plan and Application Modification; Prenotification.--
Each State transferring funds under this section shall--
            ``(1) modify any plan or application of the State that is 
        applicable to such funds to account for such transfer and 
        submit, within 30 days after the date of such transfer, a copy 
        of such modified plan or application to the Department of 
        Education; and
            ``(2) notify the Department of Education no less than 30 
        days before the effective date of such transfer.
    ``(e)  Local Plan and Application Modification; Prenotification.--
Each local educational agency transferring funds under this section 
shall--
            ``(1) modify any plan or application of the agency that is 
        applicable to such funds to account for such transfer and 
        submit, within 30 days after the date of such transfer, a copy 
        of such modified plan or application to the State; and
            ``(2) notify the State no less than 30 days before the 
        effective date of such transfer.
    ``(f) Applicable Rules.--Except as otherwise provided in this 
subsection, when funds are transferred to an allocation under this 
section, they become funds of the allocation to which they are 
transferred and subject to all the requirements that are applicable to 
that allocation.''.

          TITLE II--DRUG AND VIOLENCE PREVENTION AND EDUCATION

SEC. 201. DRUG AND VIOLENCE PREVENTION AND EDUCATION.

    Title IV of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7101 et seq.) is amended to read as follows:

 ``TITLE IV--SUPPORTING DRUG AND VIOLENCE PREVENTION AND EDUCATION FOR 
                        STUDENTS AND COMMUNITIES

``SEC. 4001. SHORT TITLE.

    ``This title may be cited as the `Supporting Drug and Violence 
Prevention and Education for Students and Communities Act of 2000'.

``SEC. 4002. FINDINGS.

    ``Congress finds as follows:
            ``(1) Students need drug-free and safe schools and 
        communities in order to maximize their academic performance and 
        their future opportunities.
            ``(2) Drug use among children ages 12 through 17 doubled 
        from the historic low year of 1992, when 5.3 percent of youth 
        in that age group were current users, as compared to 11.4 
        percent in 1997. While youth use of some drugs, including 
        hallucinogens, has slightly dropped since 1997, use of other 
        drugs, such as ecstasy, has increased in 1999 (up 1.1 percent 
        in use among 10th graders).
            ``(3) Drug use by youth increases the likelihood that a 
        child will be delinquent, engage in high-risk sexual activity, 
        not finish high school, and commit theft, violence, and 
        vandalism.
            ``(4) Drug use among rural youth is higher than that of 
        youth in large urban centers, and these rural youth abuse quite 
        serious drugs, including methamphetamine and cocaine. Many 
        rural communities have few resources for helping youth avoid 
        drug use.
            ``(5) Drug and violence prevention programs and activities 
        need to include efforts to prevent underage use of tobacco and 
        alcohol, and are more likely to succeed when such efforts are 
        included. Drug and violence prevention research calls for 
        aggressive activities to prevent the use of these gateway 
        drugs.
            ``(6) Students continue to face physical harm while at 
        school. From 1993 to 1997, between 7 to 8 percent of students 
        in grades 9 through 12 were threatened or injured with a weapon 
        on school property over a 12-month period. Roughly 12 percent 
        of students in grades 9 through 12 reported being in a physical 
        fight on school property during a 12-month period between 1993 
        and 1997.
            ``(7) While schools statistically are one of the safest 
        places for youth, students report an increase in their 
        perception that they risk harm while at school, perhaps partly 
        due to the recent instances of extreme violence in schools.
            ``(8) Drug and violence prevention programs that 
        incorporate `protective factors' tend to reduce drug use and 
        violence. Protective factors include a student feeling 
        connected to parents and family, practicing religion and 
        prayer, having parents present at key times of the day, having 
        high educational expectations, feeling part of the school, and 
        having high self-esteem.
            ``(9) After school programs, because they keep youth in 
        supervised settings, prevent drug use and violence at least 
        during the time of those programs. Research indicates that the 
        juvenile crime rate triples between the hours of 3 p.m. and 6 
        p.m., and children in particular are most likely to be victims 
        of a violent crime committed by a non-family member between 2 
        p.m. and 6 p.m.

``SEC. 4003. PURPOSE.

    ``The purpose of this title is to support programs that prevent the 
use of drugs, that prevent violence, that involve parents and 
communities, and that are coordinated with related Federal, State, and 
community efforts and resources to foster a learning environment in 
which students increase their academic achievement, through the 
provision of Federal assistance to--
            ``(1) States for grants to local educational agencies and 
        consortia of such agencies to establish, operate, and improve 
        local programs of drug and violence prevention in elementary 
        and secondary schools;
            ``(2) States for grants to, and contracts with, community-
        based organizations and other public and private nonprofit 
        agencies and organizations for programs of drug and violence 
        prevention and education;
            ``(3) States for grants to local educational agencies and 
        community-based organizations for before and after school 
        programs for youth and continuing educational opportunities for 
        individuals of all ages; and
            ``(4) public and private nonprofit and for-profit 
        organizations to conduct training, demonstrations, and 
        evaluations, and to provide supplementary services for drug and 
        violence prevention.

``SEC. 4004. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated--
            ``(1) $1,033,377,000 for fiscal year 2000, and such sums as 
        may be necessary for each of the five succeeding fiscal years, 
        for State grants under part A; and
            ``(2) $20,000,000 for fiscal year 2000, and for each of the 
        five succeeding fiscal years, for national programs under part 
        B.--

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

``SEC. 4111. RESERVATIONS AND ALLOTMENTS.

    ``(a) Reservations.--From the amount made available under section 
4004(1) to carry out this part for each fiscal year, the Secretary--
            ``(1) shall reserve 0.5 percent (or $5,166,885, whichever 
        is greater) of such amount for grants under this subpart to 
        Guam, American Samoa, the United States Virgin Islands, and the 
        Commonwealth of the Northern Mariana Islands, to be allotted in 
        accordance with the Secretary's determination of their 
        respective needs; and
            ``(2) shall reserve 0.5 (or $5,166,885, whichever is 
        greater) of such amount for the Secretary of the Interior to 
        carry out programs under this part for Indian youth.
    ``(b) State Allotments.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        Secretary shall, for each fiscal year, allocate among the 
        States--
                    ``(A) one-half of the remainder not reserved under 
                subsection (a) according to the ratio between the 
                school-aged population of each State and the school-
                aged population of all the States; and
                    ``(B) one-half of such remainder according to the 
                ratio between the amount each State received under part 
                A of title I for the preceding year and the sum of such 
                amounts received by all the States.
            ``(2) Minimum.--For any fiscal year, no State shall be 
        allotted under this subsection an amount that is less than one-
        half of 1 percent of the total amount allotted to all the 
        States under this subsection.
    ``(c) Reallotment of Unused Funds.--If any State does not apply for 
an allotment under this subpart for a fiscal year, the Secretary shall 
reallot the amount of the State's allotment to the remaining States in 
accordance with this section.

``SEC. 4112. WITHIN-STATE DISTRIBUTION.

    ``(a) Governor's Allocation.--
            ``(1) In general.--The chief executive officer of a State 
        may reserve not more than 10 percent of the total amount 
        allocated to a State under section 4111 for each fiscal year 
        for drug and violence prevention programs and activities in 
        accordance with section 4115.
            ``(2) Law enforcement education partnerships.--The chief 
        executive officer of a State shall use not less than 10 percent 
        and not more than 20 percent of the amount described in 
        paragraph (1) for each fiscal year for law enforcement 
        education partnerships in accordance with section 4115(b)(3).
            ``(3) Administrative costs.--The chief executive officer of 
        a State may use not more than 3 percent of the amount described 
        in paragraph (1) for the administrative costs incurred in 
        carrying out the duties of such officer under this section.
            ``(4) Grant awards.--The chief executive officer of a State 
        shall use the remainder of funds not reserved under paragraphs 
        (2) and (3) to award competitive grants and contracts for 
        programs or activities that improve comprehensive community-
        wide prevention efforts or provide direct services to youth at 
        the local level. Such officer shall award grants based on--
                    ``(A) the quality of the activity or program 
                proposed; and
                    ``(B) how closely the program or activity is 
                aligned with the appropriate principles of 
                effectiveness described in section 4115(a).
    ``(b) State Funds.--
            ``(1) In general.--An amount equal to the total amount 
        reserved to a State under section 4111, less the amount 
        reserved under subsection (a) and paragraphs (2) and (3) of 
        this subsection, for each fiscal year shall be made available 
        to the State and its local educational agencies for drug and 
        violence prevention activities in accordance with section 4115.
            ``(2) State activities.--A State shall use not more than 2 
        percent of the amount available under subsection (1) for State 
        activities described in 4115(c).
            ``(3) State administration.--A State may use not more than 
        2 percent of the amount reserved under paragraph (1) for the 
        administrative costs of carrying out its responsibilities under 
        this part.
    ``(c) Distribution to Local Educational Agency.--
            ``(1) In general.--A State shall distribute not less than 
        96 percent of the amount made available under subsection (b)(1) 
        for each fiscal year to local educational agencies in 
        accordance with this subsection.
            ``(2) Distribution.--(A) Of the amount made available to a 
        State under subsection (b)(1) and not reserved under paragraphs 
        (2) and (3), a State shall distribute--
                    ``(i) 70 percent of such amount to local 
                educational agencies, based on the relative enrollments 
                in public and private nonprofit elementary and 
                secondary schools within the boundaries of such 
                agencies; and
                    ``(ii) 30 percent of such amount to local 
                educational agencies that the State determines have the 
                greatest need for additional funds to carry out drug 
                and violence prevention programs.
            ``(B) Of the amount received under (1), a local educational 
        agency may use not more than 2 percent for the administrative 
        costs of carrying out its responsibilities under this part.
            ``(C) In determining which local educational agencies have 
        the greatest need for additional funds, a State shall consider 
        objective data such as--
                    ``(i) high rates of drug use among youth;
                    ``(ii) high rates of victimization of youth by 
                violence and crime;
                    ``(iii) high rates of arrests and convictions of 
                youth for violent or drug related crime;
                    ``(iv) high incidence of illegal gang activity;
                    ``(v) high rates of referrals of youths to drug 
                abuse treatment and rehabilitation programs;
                    ``(vi) high rates of referrals of youths to 
                juvenile court;
                    ``(vii) high rates of expulsions and suspensions of 
                students from schools;
                    ``(viii) high rates of reported cases of child 
                abuse and domestic violence;
                    ``(ix) local fiscal capacity to fund drug and 
                violence prevention activities and programs without 
                Federal assistance;
                    ``(x) high rates of drug related emergencies or 
                deaths;
                    ``(xi) high degree of geographically rural 
                isolation; and
                    ``(xii) local fiscal capacity to fund before and 
                after school activities for youth without Federal 
                assistance.
            ``(D) The distribution of funds shall reflect the 
        geographical diversity of local educational agencies in the 
        State.
            ``(3) Return of funds to state; reallocation.--
                    ``(A) Return.--Except as provided in subparagraph 
                (B), upon the expiration of the 1-year period beginning 
                on the date that a local educational agency receives 
                its allocation--
                            ``(i) such agency shall return to the State 
                        any funds from such allocation that remain 
                        unobligated; and
                            ``(ii) the State shall reallocate any such 
                        amount to local educational agencies that have 
                        plans for using such amount for programs or 
                        activities on a timely basis.
                    ``(B) Carryover.--In any fiscal year, a local 
                educational agency, may retain for obligation in the 
                succeeding fiscal year--
                            ``(i) an amount equal to not more than 25 
                        percent of the allocation it receives under 
                        this title for such fiscal year; or
                            ``(ii) upon a demonstration of good cause 
                        by such agency or consortium, a greater amount 
                        approved by the State.

``SEC. 4113. STATE APPLICATION.

    ``(a) In General.--In order to receive an allotment under section 
4111 for any fiscal year, a State shall submit to the Secretary, at 
such time as the Secretary may require, an application that--
            ``(1) describes how funds under this subpart will be 
        coordinated with programs under this Act, and other drug and 
        violence prevention programs, as appropriate, in accordance 
        with the provisions of section 14306;
            ``(2) contains the results of the State's needs assessment 
        for drug and violence prevention programs, which shall be based 
        on the results of on-going State evaluation activities, 
        including data on the incidence and prevalence of drug use and 
        violence by youth in schools and communities;
            ``(3) contains assurances that the sections of the 
        application concerning the funds provided to the chief 
        executive officer and the State were developed in consultation 
        and coordination with appropriate State officials and others, 
        including the chief executive officer, the chief State school 
        officer, the head of the State alcohol and drug abuse agency, 
        the heads of the State health and mental health agencies, the 
        head of the State criminal justice planning agency, the head of 
        the State child welfare agency, the head of the State board of 
        education, or their designees, and representatives of parents, 
        students, and community-based organizations, including 
        religious organizations;
            ``(4) contains an assurance that the State will cooperate 
        with, and assist, the Secretary in conducting data collection 
        as required by section 4116;
            ``(5) contains an assurance that the chief executive 
        officer of the State and the chief State school officer will 
        coordinate program administration and activities under this 
        part and will coordinate with drug and violence prevention 
        efforts established by other State agencies; and
            ``(6) contains an assurance that the local educational 
        agencies in the State will comply with the provisions of 
        section 14503 pertaining to the participation of private school 
        children and teachers in the programs and activities under this 
        part.
    ``(b) Governor's Application.--An application submitted under this 
section shall also contain a comprehensive plan for the use of funds 
under section 4115(b) by the chief executive officer that includes--
            ``(1) a statement of the chief executive officer's 
        performance measures for drug and violence prevention. The 
        chief executive officer's performance measures shall consist 
        of--
                    ``(A) performance indicators for drug and violence 
                prevention, and;
                    ``(B) levels of performance for each performance 
                indicator;
            ``(2) a description of the procedures to be used for 
        assessing and publicly reporting progress toward meeting such 
        performance measures;
            ``(3) a description of how the chief executive officer will 
        coordinate such officer's activities under this part with the 
        chief State school officer and with State agencies and 
        organizations involved with drug and violence prevention 
        efforts;
            ``(4) a description of how funds allocated under section 
        4112(a) will be used--
                    ``(A) to ensure no duplication of efforts with 
                other State agencies and local educational agencies 
                with regard to the provision of school-based drug and 
                violence prevention efforts and services; and
                    ``(B) to serve populations not normally served by 
                the State educational agency, such as school dropouts 
                and youth in detention centers;
            ``(5) a description of how the chief executive officer will 
        award funds under section 4115(b) in order to support 
        activities and programs that meet the principles of 
        effectiveness and a plan for monitoring the performance of, and 
        providing technical assistance to, recipients of such funds;
            ``(6) a description of the special outreach activities that 
        will be carried out to maximize the participation of community-
        based organizations, including religious organizations; and
            ``(7) a description of how funds will be used to support 
        community-wide comprehensive drug and violence prevention 
        planning, implementation strategies, and programs, including 
        before and after school and continuing education programs.
    ``(c) State Application.--The State shall include in its 
application a comprehensive plan for the use of funds under section 
4115(c), including the following:
            ``(1) A statement of the State's performance measures for 
        drug and violence prevention that shall be developed in 
        consultation between the State and local officials and that 
        consist of--
                    ``(A) performance indicators for drug and violence 
                prevention; and
                    ``(B) levels of performance for each performance 
                indicator.
            ``(2) A description of the procedures the State will use 
        for assessing and publicly reporting progress toward meeting 
        those performance measures;
            ``(3) A plan for monitoring the implementation of, and 
        providing technical assistance regarding, the drug and violence 
        prevention programs conducted by local educational agencies in 
        accordance with section 4115(d); and
            ``(4) A description of how the State educational agency 
        will coordinate such agency's activities under this part with 
        the chief executive officer's drug and violence prevention 
        programs and with the drug and violence prevention efforts of 
        other State agencies.
    ``(d) General Approval.--A State application submitted to the 
Secretary under this title shall be deemed to be approved by the 
Secretary unless the Secretary makes a written determination, prior to 
the expiration of the 90-day period beginning on the date that the 
Secretary receives the application, that the application is in 
violation of this title.
    ``(e) Disapproval.--The Secretary shall not finally disapprove a 
State application, except after giving the State notice and opportunity 
for a hearing.

``SEC. 4114. LOCAL EDUCATIONAL AGENCY APPLICATION.

    ``(a) In General.--In order to be eligible to receive a 
distribution under section 4112(c) for any fiscal year, a local 
educational agency shall submit, at such time as the State requires, an 
application to the State. Such an application shall be amended, as 
necessary, to reflect changes in the activities and programs of the 
local educational agency.
    ``(b) Development.--(1) A local educational agency shall develop 
its application through timely and meaningful consultation with a local 
or substate regional advisory council, as described in subsection (c).
    ``(2) To ensure timely and meaningful consultation, a local 
educational agency shall, in accordance with subsection (c), establish 
and consult with a local or substate regional advisory council on 
issues regarding the design and development of the program or activity, 
including efforts to meet the principles of effectiveness described in 
section 4115(a). Such meetings with the advisory council shall occur 
beginning at the initial stages of design and development of the 
program or activity.
    ``(c) Advisory Council.--(1) In establishing a local or substate 
regional advisory council, the local educational agency shall include, 
to the extent possible, representatives of local government, business, 
parents, students, teachers, pupil services personnel, appropriate 
State agencies, private schools, the medical profession, law 
enforcement, community-based organizations, religious organizations, 
and other groups with interest and expertise in drug and violence 
prevention, including before and after school and continuing education 
programs.
    ``(2) In addition to assisting the local educational agency to 
develop an application under this section, the advisory council shall, 
on an ongoing basis--
            ``(A) disseminate information about drug and violence 
        prevention programs and activities conducted within the 
        boundaries of the local educational agency;
            ``(B) advise the local educational agency regarding--
                    ``(i) how best to coordinate such agency's 
                activities under this part with other related drug and 
                violence prevention strategies, programs, and 
                activities; and
                    ``(ii) the agencies that administer such programs, 
                projects, and activities; and
            ``(C) review program and activity evaluations and other 
        relevant material and make recommendations to the local 
        educational agency on how to improve such agency's drug and 
        violence prevention programs and activities.
    ``(d) Contents of Applications.--An application submitted by a 
local educational agency under this section shall contain--
            ``(1) a detailed explanation of the local educational 
        agency's comprehensive plan for drug and violence prevention, 
        which shall include a description of--
                    ``(A) how the plan will be coordinated with 
                programs under this Act, and other Acts dealing with 
                drug and violence prevention, as appropriate, in 
                accordance with the provisions of section 14306;
                    ``(B) the local educational agency's performance 
                measures for drug and violence prevention, that shall 
                consist of--
                            ``(i) performance indicators for drug and 
                        violence prevention; and
                            ``(ii) levels of performance for each 
                        performance indicator;
                    ``(C) how such agency will assess and publicly 
                report progress toward attaining its performance 
                measures;
                    ``(D) the drug and violence prevention activity or 
                program (including before and after school programs and 
                continuing education activities) to be funded, 
                including how the activity or program will meet the 
                principles of effectiveness described in section 
                4115(a), and the means of evaluating such activity or 
                program;
                    ``(E) how the local educational agency will 
                coordinate such agency's activities and programs with 
                community-wide efforts to achieve such agency's 
                performance measures for drug and violence prevention;
                    ``(F) how the local educational agency will 
                coordinate such agency's activities and programs with 
                other Federal, State, and local programs for youth drug 
                and violence prevention, including before and after 
                school programs and continuing education activities;
            ``(2) an assurance that drug prevention programs supported 
        under this Act conveys a clear and consistent message that the 
        use of drugs is wrong and harmful; and
            ``(3) such other information and assurances as the State 
        may reasonably require.
    ``(e) Peer Review.--
            ``(1) In general.--In reviewing local applications under 
        this section, a State shall use a peer review process or other 
        methods of assuring the quality of such applications.
            ``(2) Considerations.--(A) In determining whether to 
        approve the application of a local educational agency under 
        this section, a State shall consider the quality of the local 
        educational agency's comprehensive plan, including the degree 
        to which the principles of effectiveness described in section 
        4115(a) are met.
            ``(B) General approval.--A local educational agency's 
        application submitted to the State under this title shall be 
        deemed to be approved by the State unless the State makes a 
        written determination, prior to the expiration of the 90-day 
        period beginning on the date that the State receives the 
        application, that the application is in violation of this 
        title.
            ``(C) Disapproval.--The State shall not finally disapprove 
        a local educational agency application, except after giving 
        such agency notice and opportunity for a hearing.

``SEC. 4115. AUTHORIZED ACTIVITIES.

    ``(a) Principles of Effectiveness.--(1) For a program or activity 
developed pursuant to this part to meet the principles of 
effectiveness, such program or activity shall--
            ``(A) be based upon an assessment of objective data--
                    ``(i) regarding the drug and violence problems in 
                the elementary and secondary schools and communities to 
                be served, including an objective analysis of the 
                current conditions and consequences regarding drug use 
                and violence, including delinquency and serious 
                discipline problems, among students who attend such 
                schools (including private school students who 
                participate in the drug and violence prevention 
                program) that is based on ongoing local assessment or 
                evaluation activities;
                    ``(ii) regarding the current drug and violence 
                prevention strategies, programs, and activities, 
                including before and after school programs and 
                continuing education activities, in such schools and 
                communities; and
                    ``(iii) regarding student academic achievement and 
                current programs and activities to increase student 
                academic achievement.
            ``(B) be based upon an established set of performance 
        measures aimed at ensuring that all elementary and secondary 
        schools and communities served by the local educational agency 
        have a drug-free, safe, and orderly learning environment.
            ``(C) be based upon scientifically based research that 
        provides evidence that the program to be used will prevent or 
        reduce drug use and violence, including delinquency and serious 
        discipline problems among youth.
    ``(2) The program or activity shall undergo a periodic evaluation 
to assess its progress toward achieving its goals and objectives. The 
results shall be used to refine, improve, and strengthen the program, 
and to refine the performance measures. The results shall also be made 
available to the public upon request, with public notice of such 
availability provided.
    ``(3) Waiver.--A local educational agency or community-based 
organization may apply to the State for a waiver of the requirement of 
paragraph (1)(C) to allow innovative activities or programs that 
demonstrate substantial likelihood of success in drug and violence 
prevention or in beneficially serving the community.
    ``(b) Governors' Activities.--
            ``(1) In general.--A chief executive officer of a State 
        shall use funds made available under section 4112(a) for 
        competitive grants or contracts with local educational 
        agencies, parent groups, community-based organizations, 
        religious organizations, and other public entities and private 
        organizations and consortia thereof, including community anti-
        drug coalitions--
                    ``(A) to support drug and violence prevention 
                strategies, programs, and activities, including before 
                and after school activities and continuing education 
                programs, that provide comprehensive community-wide 
                prevention efforts or direct services to prevent drug 
                use and violence in schools and communities; and
                    ``(B) to reward drug and violence prevention 
                programs of exceptional quality.
            ``(2) Considerations.--In making such grants and contracts, 
        a chief executive officer of a State--
                    ``(A) shall require that any program or activity 
                meet the principles of effectiveness;
                    ``(B) shall give priority to programs and 
                activities for populations that need special services 
                or additional resources (such as youth in juvenile 
                detention facilities, runaway or homeless children and 
                youth, pregnant and parenting teenagers, and school 
                dropouts); and
                    ``(C) may require partnerships between local 
                educational agencies and other groups or organizations, 
                including religious organizations, in order to receive 
                funds.
            ``(3) Required activities.--A chief executive officer of a 
        State shall use funds made available under section 4112(a)(2) 
        to award grants to State, county or local law enforcement 
        agencies (including district attorneys) in consortium with 
        local educational agencies or community-based agencies for the 
        purposes of carrying out drug and violence prevention 
        activities, such as--
                    ``(A) programs that provide classroom instruction 
                by uniformed law enforcement officials designed to 
                teach students to recognize and resist pressures to 
                experiment with drugs and that meet the principles of 
                effectiveness;
                    ``(B) programs in which district attorneys provide 
                classroom instruction in the law and legal system, 
                which emphasizes interactive learning techniques such 
                as mock trial competitions; or
                    ``(C) partnerships between law enforcement and 
                child guidance professionals, which may include mental 
                health providers.
    ``(c) State Activities.--
            ``(1) Authorized activities.--A State shall use the funds 
        described in section 4112(b)(2) to plan, develop, and implement 
        capacity building, technical assistance, accountability, 
        program improvement services, and coordination activities for 
        local educational agencies that are designed to support the 
        implementation of drug and violence prevention programs, 
        including before and after school programs and continuing 
        education activities. A State may carry out these activities 
        directly, or through grants and contracts.
    ``(d) Local Educational Agency Activities.--
            ``(1) Program requirements.--A local educational agency 
        shall use funds described in section 4112(c) to develop, 
        implement, and evaluate a comprehensive drug and violence 
        prevention program, which is coordinated with other school and 
        community-based services and programs, that shall--
                    ``(A) be consistent with the principles of 
                effectiveness described in subsection (a);
                    ``(B) be designed to--
                            ``(i) prevent or reduce drug use or 
                        violence, including through the prevention of 
                        delinquency, serious discipline problems and 
                        poor academic performance; and
                            ``(ii) create a well disciplined 
                        environment conducive to learning, which 
                        includes consultation between teachers and 
                        school personnel to identify early warning 
                        signs of drug use and violence and to provide 
                        behavioral interventions as part of classroom 
                        management efforts;
                    ``(C) include activities to promote the involvement 
                of parents in the activity or program, to promote 
                coordination with community groups and coalitions, 
                including religious organizations, and government 
                agencies, and to distribute information about the local 
                educational agency's needs, goals, and programs under 
                this part; and
                    ``(D) address before and after school activities 
                and continuing education needs of youth and adults in 
                the community;
            ``(2) Authorized activities.--Each local educational 
        agency, or consortium of such agencies, that receives a 
        subgrant under section 4112(c) may use such funds to carry out 
        youth drug and violence prevention activities, including before 
        and after school programs and continuing education activities, 
        in the elementary and secondary schools and communities, such 
        as--
                    ``(A) developmentally appropriate drug and violence 
                prevention programs that serve students in both 
                elementary and secondary school and that incorporate a 
                variety of prevention strategies and activities, which 
                may include--
                            ``(i) teaching students that most people do 
                        not use drugs;
                            ``(ii) teaching students to recognize 
                        social and peer pressure to use drugs;
                            ``(iii) teaching students skills for 
                        resisting drug use;
                            ``(iv) engaging students in the learning 
                        process;
                            ``(v) using developmentally appropriate 
                        teaching materials;
                            ``(vi) incorporating activities in 
                        secondary schools that reinforce prevention 
                        activities implemented in elementary schools; 
                        and
                            ``(vii) involving families and communities 
                        in setting clear expectations against drug use 
                        and enforcing consequences for drug use;
                    ``(B) before and after school programs and 
                continuing education opportunities for individuals of 
                all ages, such as--
                            ``(i) integrated educational, recreational, 
                        or cultural programs, including curriculum 
                        based entrepreneurial education programs, 
                        remedial education programs, and extended 
                        learning programs;
                            ``(ii) literacy education programs 
                        (including family literacy services);
                            ``(iii) youth science education programs;
                            ``(iv) consumer, economic, and personal 
                        finance education programs;
                            ``(v) senior citizen and adult education 
                        programs (including programs for individuals 
                        who leave school before graduating from 
                        secondary school, regardless of the age of such 
                        individual);
                            ``(vi) parenting skills education programs;
                            ``(vii) educational children's day care 
                        services;
                            ``(viii) summer and weekend school programs 
                        in conjunction with recreation programs;
                            ``(ix) expanded library service hours to 
                        serve community needs;
                            ``(x) distance learning, technology, and 
                        Internet education programs for individuals of 
                        all ages;
                            ``(xi) educational services for individuals 
                        with disabilities;
                            ``(xii) peer resistance education; and
                            ``(xiii) arts and music education.
                    ``(C) training and development of school personnel 
                in youth drug and violence prevention, including 
                training in early identification, intervention, and 
                prevention of threatening behavior;
                    ``(D) parental involvement and training in youth 
                drug and violence prevention, including early 
                identification of potential youth violence;
                    ``(E) community involvement activities pertaining 
                to youth drug and violence prevention;
                    ``(F) law enforcement and security activities, 
                including the acquisition and installation of metal 
                detectors and the hiring and training of security 
                personnel, that are related to youth drug and violence 
                prevention;
                    ``(G) comprehensive school security assessments;
                    ``(H) creating and maintaining safe zones of 
                passage to and from school to prevent violence and drug 
                use and trafficking;
                    ``(I) counseling, mentoring, and referral services, 
                and other student assistance practices and programs, 
                including training of teachers by school-based mental 
                health service providers in appropriate identification 
                and intervention techniques for disciplining and 
                teaching students at risk of violent behavior;
                    ``(J) services and activities that reduce the need 
                for suspension and expulsion in maintaining classroom 
                order and school discipline;
                    ``(K) establishing and implementing a system for 
                transferring suspension and expulsion records by a 
                local educational agency to any public or private 
                elementary or secondary school;
                    ``(L) allowing students attending unsafe public 
                elementary and secondary schools, as determined by the 
                State, to attend a safe public school, including a 
                public charter school, in the same State as the unsafe 
                public elementary and secondary school, and allowing 
                payment of reasonable transportation costs for such 
                students;
                    ``(M) the development and implementation of 
                character education and training programs that reflect 
                the values of parents, teachers, and local communities, 
                and incorporate elements of good character, including 
                honesty, citizenship, courage, justice, respect, 
                personal responsibility, and trustworthiness;
                    ``(N) testing students for illegal drug use or 
                conducting student locker searches for illegal drugs or 
                drug paraphernalia;
                    ``(O) establishment of school uniform policies;
                    ``(P) emergency intervention services following 
                traumatic crisis events, such as a shooting, major 
                accident, or a drug-related incident, that has 
                disrupted the learning environment;
                    ``(Q) establishing and maintaining a school 
                violence hotline;
                    ``(R) conducting background checks of school 
                personnel;
                    ``(S) expanding and improving school-based mental 
                health services, including early identification of drug 
                use and violence, assessment, and direct individual or 
                group counseling services provided to students, 
                parents, and school personnel by qualified school based 
                mental health services personnel;
                    ``(T) hiring and training coordinators of drug and 
                violence prevention programs serving students in grades 
                six through nine;
                    ``(U) mentoring and tutoring services for students 
                provided by senior citizen volunteers; and
                    ``(V) the evaluation of any of the activities 
                authorized under this subsection.

``SEC. 4116. EVALUATION AND REPORTING.

    ``(a) Data Collection.--
            ``(1) The National Center for Education Statistics shall 
        collect data to determine the frequency, seriousness, and 
        incidence of drug use and violence by youth in schools and 
        communities in the States using, if appropriate, data submitted 
        by the States pursuant to subsection (b).
            ``(2) The Secretary shall submit to the Congress a report 
        on the data collected under this subsection.
    ``(b) State Report.--
            ``(1) In general.--Not later than October 1, 2003, and 
        every third year thereafter, the chief executive officer of a 
        State, in consultation with the State educational agency, shall 
        submit to the Secretary a report on the implementation and 
        outcomes of State and local programs under section 4115.
            ``(2) Special rule.--The report required by this subsection 
        shall be--
                    ``(A) based on the State's ongoing evaluation 
                activities, and shall include data on the prevalence of 
                drug use and violence by youth in schools and 
                communities; and
                    ``(B) made available to the public upon request, 
                with public notice of such availability provided.
    ``(c) Local Educational Agency Report.--Each local educational 
agency receiving funds under this part shall submit to the State such 
information, and at such intervals, as the State reasonably requires to 
complete the State report required by subsection (b), including 
information on the prevalence of drug use and violence by youth in the 
schools and the community and the progress of the local educational 
agency toward meeting its performance measures. The report shall be 
made available to the public upon request, with public notice of such 
availability provided.

                      ``PART B--NATIONAL PROGRAMS

``SEC. 4121. FEDERAL ACTIVITIES.

    ``(a) Program Authorized.--
            ``(1) In general.--From funds made available to carry out 
        this part under section 4004(2), the Secretary, in consultation 
        with the Secretary of Health and Human Services, the Director 
        of the Office of National Drug Control Policy, the Chair of the 
        Ounce of Prevention Council, and the Attorney General, shall 
        carry out programs to prevent the illegal use of drugs and 
        violence among, and promote safety and discipline for, students 
        in elementary and secondary schools based on the needs reported 
        by States and local educational agencies.
            ``(2) Coordination.--The Secretary shall carry out programs 
        described in paragraph (1) directly, or through grants, 
        contracts, or cooperative agreements with public and private 
        nonprofit and for-profit organizations, including religious 
        organizations, and individuals, or through agreements with 
        other Federal agencies, and shall coordinate such programs with 
        other appropriate Federal activities.
            ``(3) Programs.--Programs described in paragraph (1) may 
        include--
                    ``(A) demonstrations and rigorous scientifically 
                based evaluations of innovative approaches to drug and 
                violence prevention based on needs reported by State 
                and local educational agencies;
                    ``(B) the provision of information on drug abuse 
                education and prevention to the Secretary of Health and 
                Human Services for dissemination by the clearinghouse 
                for alcohol and drug abuse information established 
                under section 501(d)(16) of the Public Health Service 
                Act;
                    ``(C) continuing technical assistance to chief 
                executive officers, State agencies, and local 
                educational agencies to build capacity to develop and 
                implement high-quality, effective programs consistent 
                with the Principles of Effectiveness.
    ``(b) Peer Review.--The Secretary shall use a peer review process 
in reviewing applications for funds under this section.

``SEC. 4122. NATIONAL CLEARINGHOUSE FOR AFTER SCHOOL PROGRAMS.

    ``From funds made available to carry this part under section 
4004(2), the Secretary of Education, in consultation with the Secretary 
of Health and Human Services, through the Commissioner on Children, 
Youth, and Families, the Attorney General, and representatives with 
relevant experience from State child care agencies and child care 
resource and referral centers, shall establish a national clearinghouse 
to provide technical assistance regarding establishment and operation 
of after school programs and models of after school programs. The 
national clearinghouse shall be available to the public, including via 
Internet, and shall serve as a resource for child care organizations, 
communities, and individuals seeking to improve the quality and 
availability of after school programs.

                        ``PART C--GUN POSSESSION

``SEC. 4131. GUN-FREE SCHOOL REQUIREMENTS.

    ``(a) Requirements.--
            ``(1) State law.--Each State receiving funds under this Act 
        shall have in effect a State law requiring each local 
        educational agency--
                    ``(A) to expel from school for a period of not less 
                than one year a student who is determined to have 
                brought a firearm to a school under the jurisdiction of 
                a local educational agency in that State, except that 
                such State law shall allow the chief administering 
                officer of such local educational agency to modify such 
                expulsion requirement for a student on a case-by-case 
                basis; and
                    ``(B) to have a policy requiring each elementary 
                and secondary school to refer to the criminal justice 
                or juvenile delinquency system any student who brings a 
                firearm to school.
            ``(2) Construction.--Nothing in this part shall be 
        construed to prevent a State from allowing a local educational 
        agency that has expelled a student from such a student's 
        regular school setting from providing educational services to 
        such student in an alternative setting.
    ``(b) Special Rule.--The provisions of this section shall be 
construed in a manner consistent with the Individuals with Disabilities 
Education Act.
    ``(c) Application to State.--Each local educational agency 
requesting assistance from a State that is provided from funds made 
available to the State under this Act shall provide to the State, in 
the application requesting such assistance--
            ``(1) an assurance that such local educational agency is in 
        compliance with the State law required by subsection (a); and
            ``(2) a description of the circumstances surrounding any 
        expulsions imposed under the State law required by subsection 
        (b), including--
                    ``(A) the name of the school concerned;
                    ``(B) the number of students expelled from such 
                school, including the number of children with 
                disabilities expelled from such school; and
                    ``(C) the type of firearm concerned.
    ``(d) Reporting.--Each State shall report the information described 
in subsection (b) to the Secretary on an annual basis.
    ``(e) Definitions.--For the purpose of this part--
            ``(1) the term `firearm' has the same meaning given to such 
        term under section 921(a)(3) of title 18, United States Code; 
        and
            ``(2) the term `school' does not include a home school, 
        regardless of whether a home school is treated as a private 
        school under State law.

                      ``PART D--GENERAL PROVISIONS

``SEC. 4141. DEFINITIONS.

    ``For the purposes of this title, the following terms have the 
following meanings:
            ``(1) Community-based organization.--The term `community-
        based organization' means a private nonprofit organization that 
        is representative of a community or significant segments of a 
        community and that provides educational or related services to 
        individuals in the community.
            ``(2) Controlled substance.--The term `controlled 
        substance' means a drug or other substance identified under 
        Schedule I, II, III, IV, or V in section 202(c) of the 
        Controlled Substances Act (21 U.S.C. 812(c)).
            ``(3) Drug.--The term `drug' includes controlled 
        substances; the illegal use of alcohol and tobacco; and the 
        harmful, abusive, or addictive use of substances, including 
        inhalants and anabolic steroids.
            ``(4) Drug and violence prevention.--The term `drug and 
        violence prevention' means--
                    ``(A) with respect to drugs, prevention, early 
                intervention, rehabilitation referral, or education 
                related to the illegal use of drugs;
                    ``(B) with respect to violence, the promotion of 
                school safety, such that students and school personnel 
                are free from violent and disruptive acts, on school 
                premises, going to and from school, and at school-
                sponsored activities, through the creation and 
                maintenance of a school environment that is free of 
                weapons and fosters individual responsibility and 
                respect for the rights of others; and
                    ``(C) with respect to before and after school 
                programs and continuing education activities, 
                educational activities for individuals of all ages in 
                the community that operate with a goal of drug and 
                violence prevention in the school or community.
            ``(5) Local educational agency.--The term `local 
        educational agency' includes educational service agencies and 
        consortia of such agencies.
            ``(6) Nonprofit.--The term `nonprofit,' as applied to a 
        school, agency, organization, or institution means a school, 
        agency, organization, or institution owned and operated by one 
        or more nonprofit corporations or associations, no part of the 
        net earnings of which inures, or may lawfully inure, to the 
        benefit of any private shareholder or individual.
            ``(7) School-aged population.--The term `school-aged 
        population' means the population aged 5 through 17, as 
        determined by the Secretary on the basis of the most recent 
        satisfactory data available from the Department of Commerce.
            ``(8) School based mental health services provider.--The 
        term `school based mental health services provider' includes a 
        state licensed or state certified school counselor, school 
        psychologist, school social worker, or other state licensed or 
        certified mental health professional qualified under state law 
        to provide such services to children and adolescents.
            ``(9) School personnel.--The term `school personnel' 
        includes teachers, administrators, guidance counselors, social 
        workers, psychologists, nurses, librarians, and other support 
        staff who are employed by a school or who perform services for 
        the school on a contractual basis.
            ``(10) Scientifically based research.--The term 
        `scientifically based research'--
                    ``(A) means the application of rigorous, 
                systematic, and objective procedures to obtain valid 
                knowledge relevant to youth violence and drug 
                prevention activities and programs; and
                    ``(B) shall include research that--
                            ``(i) employs systemic, 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.
            ``(11) State.--The term `State' means each of the 50 
        States, the District of Columbia, and the Commonwealth of 
        Puerto Rico.

``SEC. 4142. MATERIALS.

    ``(a) `Wrong and Harmful' Message.--Drug prevention programs 
supported under this title shall convey a clear and consistent message 
that the use of drugs is wrong and harmful.
    ``(b) Curriculum.--The Secretary shall not prescribe the use of 
specific curricula for programs supported under this part.

``SEC. 4143. PROHIBITED USES OF FUNDS.

    ``No funds under this title may be used for--
            ``(1) construction (except for minor remodeling needed to 
        accomplish the purposes of this part);
            ``(2) medical services, drug treatment or rehabilitation, 
        except for pupil services or referral to treatment for students 
        who are victims of, or witnesses to, use of drugs or crime; and
            ``(3) activities or programs that discriminate against or 
        denigrate the religious or moral beliefs of students who 
        participate in such activities or programs.

``SEC. 4144. QUALITY RATING.

    ``(a) In General.--The chief executive officer of each State, or in 
the case of a State in which the constitution or law of such State 
designates another individual, entity, or agency in the State to be 
responsible for education activities, such individual, entity, or 
agency is authorized and encouraged--
            ``(1) to establish a standard of quality for drug and 
        violence prevention programs implemented in public elementary 
        and secondary schools in the State in accordance with 
        subsection (b); and
            ``(2) to identify and designate, upon application by a 
        public elementary or secondary school, any such school that 
        achieves such standard as a quality program school.
    ``(b) Criteria.--The standard referred to in subsection (a) shall 
address, at a minimum--
            ``(1) a comparison of the rate of illegal use of drugs and 
        of violent occurrences by students enrolled in the school over 
        a period of time to be determined by the chief executive 
        officer of the State or the individual, entity, or agency 
        described in subsection (a), as the case may be;
            ``(2) the rate of suspensions or expulsions of students 
        enrolled in the school for drug and violence offenses;
            ``(3) the effectiveness of the drug and violence prevention 
        program as proven by scientifically based research;
            ``(4) the involvement of parents and community members in 
        the design of the drug and violence prevention program; and
            ``(5) the extent of review of existing community drug and 
        violence prevention programs before implementation of the 
        public school program.
    ``(c) Request for Quality Program School Designation.--A school 
that wishes to receive a quality program school designation shall 
submit a request and documentation of compliance with this section to 
the chief executive officer of the State or the individual, entity, or 
agency described in subsection (a), as the case may be.
    ``(d) Public Notification.--Not less than once a year, the chief 
executive officer of each State or the individual, entity, or agency 
described in subsection (a), as the case may be, shall make available 
to the public a list of the names of each public school in the State 
that has received a quality program school designation in accordance 
with this section.

``SEC. 4145. CONTINUATION AWARDS.

    ``From funds made available under section 4004(2), the Secretary is 
authorized to continue funding multi-year grants awarded prior to 
fiscal year 2001 under part I of title X, as such part was in effect on 
the day preceding the date of the enactment of the Education OPTIONS 
Act, or the Middle School Coordinator Initiative (as described in title 
III of the Department of Education Act, 2000, (as enacted into law by 
section 1004(a)(4) of Public Law 106-113) and prior appropriations 
Acts, prior to the date of the enactment of the Education OPTIONS Act 
for the duration of the original grant period.

``SEC. 4146. GENERAL ACCOUNTING OFFICE REPORT.

    ``Not later than 1 year after the date of the enactment of the 
Education OPTIONS Act, the General Accounting Office shall transmit to 
Congress a report containing the following:
            ``(1) For each State, a description of the types of after 
        school programs that are available for students in kindergarten 
        through grade 12, including programs sponsored by the Boys and 
        Girls Clubs of America, the Boy Scouts of America, the Girl 
        Scouts of America, YMCA's, and athletic and other programs 
        operated by public schools and other State and local agencies.
            ``(2) For 15 communities selected to represent a variety of 
        regional, population, and demographic profiles, a detailed 
        analysis of the after school programs that are available for 
        students in kindergarten through grade 12, including programs 
        sponsored by the Boys and Girls Clubs of America, the Boy 
        Scouts of America, the Girl Scouts of America, YMCA's, 
        mentoring programs, athletic programs, and programs operated by 
        public schools, churches, day care centers, parks, recreation 
        centers, family day care, community organizations, law 
        enforcement agencies, service providers, and for-profit and 
        non-profit organizations.
            ``(3) For each State, a description of significant areas of 
        unmet need in the quality and availability of after school 
        programs.
            ``(4) For each State, a description of barriers which 
        prevent or deter the participation of children in after school 
        programs.
            ``(5) A list of activities, other than after school 
        programs, in which students in kindergarten through grade 12 
        participate when not in school, including jobs, volunteer 
        opportunities, and other non-school affiliated programs.
            ``(6) An analysis of the value of the activities listed 
        pursuant to paragraph (5) relevant to the well-being and 
        educational development of students in kindergarten through 
        grade 12.

``SEC. 4147. SERVICES PROVIDED BY CHARITABLE, RELIGIOUS, OR PRIVATE 
              ORGANIZATIONS

    ``(a) In General.--A State may administer and provide services 
under the programs and activities described in this title through 
grants and contracts with charitable, religious, or private 
organizations.
    ``(b) Religious Organizations.--The purpose of this section is to 
allow States to provide grants to or to contract with religious 
organizations on the same basis as any other nongovernmental provider 
without impairing the religious character of such organizations, and 
without diminishing the religious freedom of beneficiaries of 
assistance funded under such program.
    ``(c) Nondiscrimination Against Religious Organizations.--In the 
event a State exercises its authority under subsection (a), religious 
organizations are eligible, on the same basis as any other private 
organization, as grant recipients or contractors, to provide assistance 
under any program described in this title if the programs sponsored by 
such religious organization are implemented in a manner consistent with 
the Establishment Clause of the United States Constitution. Except as 
provided in subsection (i), neither the Federal Government, a State, 
nor a local educational agency receiving funds under this title shall 
discriminate against an organization that is or applies to be a 
contractor to provide assistance on the basis that the organization has 
a religious character.
    ``(d) Religious Character and Freedom.--
            ``(1) Religious organizations.--A religious organization 
        with a grant or contract under this title shall retain its 
        religious character and control over the definition, 
        development, practice, and expression of its religious beliefs.
            ``(2) Additional safeguards.--Neither the Federal 
        Government, a State, nor local government shall require a 
        religious organization to--
                    ``(A) alter its form of internal governance; or
                    ``(B) remove religious art, icons, scripture, or 
                other symbols;
        in order to be eligible to receive a grant or contract under 
        this title.
    ``(e) Employment Practices.--A religious organization's exemption 
provided under section 702 of the Civil Rights Act of 1964 (42 U.S.C. 
2000e-1), regarding employment practices, shall not be affected by its 
participation in, or receipt of funds from, programs under this title.
    ``(f) Nondiscrimination Against Beneficiaries.--Except as otherwise 
provided in law, a religious organization shall not discriminate 
against an individual in regard to rendering assistance funded under 
any program described in this title on the basis of religion, a 
religious belief, or refusal to actively participate in a religious 
practice.
    ``(g) Fiscal Accountability.--
            ``(1) In general.--Except as provided in paragraph (2), any 
        religious organization receiving a grant or contracting to 
        provide assistance funded under any program described in this 
        title shall be subject to the same regulations as other 
        recipients or contractors to account in accord with generally 
        accepted auditing principles for the use of such funds provided 
        under such programs.
            ``(2) Limited audit.--If such organization segregates 
        Federal funds provided under such programs into separate 
        accounts, then only the financial assistance provided with such 
        funds shall be subject to audit.
    ``(h) Limitations on Use of Funds for Certain Purposes.--No funds 
provided directly to institutions or organizations to provide services 
and administer programs under this Act shall be expended for sectarian 
worship, instruction, or proselytization.
    ``(i) Preemption.--Nothing in this section shall be construed to 
preempt any provision of a State constitution or State statute that 
prohibits or restricts the expenditure of State funds in or by 
religious organizations.''.

                      TITLE III--TECH FOR SUCCESS

SEC. 301. TECH FOR SUCCESS.

    Title III of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 6801 et seq.) is amended to read as follows:

                     ``TITLE III--TECH FOR SUCCESS

``SEC. 3001. SHORT TITLE.

    ``This title may be cited as the `Tech for Success Act of 2000'.

``SEC. 3002. PURPOSE.

    ``The purposes of this title are as follows:
            ``(1) To provide assistance to states and localities for 
        implementing innovative technology initiatives which lead to 
        increased student academic achievement and which may be 
        evaluated for effectiveness and replicated if successful.
            ``(2) To encourage the establishment or expansion of 
        initiatives, especially those involving public/private 
        partnerships, designed to increase access to technology, 
        particularly in high need local educational agencies.
            ``(3) To promote initiatives which provide school 
        administrators and teachers with the capacity to effectively 
        utilize technology in ways which integrate such technology with 
        challenging State content and student performance standards, 
        through such means as high quality professional development 
        programs.
            ``(4) To support the development of electronic networks and 
        other innovative methods, such as distance learning, of 
        delivering challenging courses and curricula for students who 
        would otherwise not have access to such courses and curricula, 
        especially in isolated regions.
            ``(5) To support the rigorous evaluation of programs funded 
        under this title, especially the impact of such initiatives on 
        student academic performance, and ensuring timely information 
        on the results of such evaluations are widely accessible 
        through electronic means.
            ``(6) To support local efforts for the use of technology to 
        promote parent and family involvement in education and 
        communication among parents, teachers and students.

                ``PART A--TECH FOR SUCCESS GRANT PROGRAM

                    ``Subpart 1--General Provisions

``SEC. 3101. AUTHORIZATION OF APPROPRIATIONS; FUNDING RULE.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this part--
            ``(1) $731,305,000 for fiscal year 2000; and
            ``(2) such sums as may be necessary for each of the 5 
        succeeding fiscal years.
    ``(b) Allocation of Funds Between National and State and Local 
Initiatives.--Except as provided in subsection (c), the amount of funds 
made available under subsection (a) shall be allocated as follows:
            ``(1) Not less than 95 percent shall be made available for 
        State and local technology initiatives pursuant to subpart 2.
            ``(2) Not more than 5 percent may be made available for 
        activities of the Secretary under subpart 3.
    ``(c) Continuation of Funding for Former Programs.--
            ``(1) In general.--Using funds made available under 
        subsection (a), the Secretary is authorized to continue funding 
        multiyear grants under this title (as in effect prior to the 
        enactment of the Education OPTIONS Act) which were awarded 
        prior to fiscal year 2001 for the duration of the original 
        grant period.
            ``(2) Reduction in amount available.--The amount of funds 
        allocated under subsection (b) between State and local 
        technology initiatives and activities of the Secretary shall be 
        reduced by the amount used by the Secretary to continue funding 
        former programs under paragraph (1).

``SEC. 3102. DEFINITIONS.

    ``For purposes of this part, the following definitions shall apply:
            ``(1) In this part and part B, the term `distance learning' 
        means the transmission of educational or instructional 
        programming to geographically dispersed individuals and groups 
        via telecommunications.
            ``(2) The term `eligible local entity' means--
                    ``(A) a high need local educational agency; or
                    ``(B) an eligible local partnership.
            ``(3) The term `eligible local partnership' means a 
        partnership that includes at least one high need local 
        educational agency and at least one--
                    ``(A) local educational agency that can demonstrate 
                that teachers in schools served by that agency are 
                using technology effectively in their classrooms;
                    ``(B) institution of higher education;
                    ``(C) for-profit business or organization that 
                develops, designs, manufactures, or produces technology 
                products or services, or has substantial expertise in 
                the application of technology;
                    ``(D) public or private non-profit organization 
                with demonstrated experience in the application of 
                educational technology; or
                    ``(E) local educational agency which has the 
                potential to become an exemplary model for wide-scale 
                adoption by other local educational agencies on how to 
                effectively integrate technology and proven research-
                based teaching practices which result in improvement in 
                classroom instruction in the core academic subject 
                areas, and the preparation of students to meet 
                challenging State content and student performance 
                standards.
            ``(4) The term `emerging technologies' means the 
        applications that can result from the development of high-
        speed, broad band telecommunications networks and more powerful 
        computer systems.
            ``(5) The term `high need local educational agency' means a 
        local educational agency which serves an elementary or 
        secondary school located in an area--
                    ``(A) in which there is a high percentage of 
                individuals 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)); or
                    ``(B) which is identified by the State as an area 
                with--
                            ``(i) limited access to advanced 
                        telecommunications services,
                            ``(ii) a high ratio of students to 
                        computers within the school, or
                            ``(iii) a high proportion of teachers who 
                        are not computer-proficient.
            ``(6) The term `scientifically based research'--
                    ``(A) means the application of rigorous, 
                systematic, and objective procedures to obtain valid 
                knowledge relevant to education technology; and
                    ``(B) shall include research which--
                            ``(i) employs systematic, empirical methods 
                        which draw on observation or experiment,
                            ``(ii) involves rigorous data analyses 
                        which are adequate to test the stated 
                        hypotheses and justify the general conclusions 
                        drawn,
                            ``(iii) relies on measurements or 
                        observational methods which 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.

       ``Subpart 2--State and Local Technology for Success Grants

``SEC. 3111. DETERMINATION OF AMOUNT OF STATE ALLOTMENT.

    ``(a) In General.--Except as otherwise provided in this subpart, 
each State shall be eligible to receive a grant under this subpart for 
a fiscal year in an allotment determined as follows:
            ``(1) 50 percent shall bear the same relationship to the 
        amount made available under section 3101(b)(1) for such year as 
        the amount such state received under part A for title I for 
        such year bears to the amount received for such year under such 
        part by all States.
            ``(2) 50 percent shall be determined on the basis of the 
        State's relative population of individuals age 5 through 17, as 
        determined by the Secretary on the basis of the most recent 
        satisfactory data.
    ``(b) Reservation of Funds for Bureau of Indian Affairs and 
Outlying Areas.--Of the amount made available to carry out this subpart 
under section 3101(b)(1) for a fiscal year--
            ``(1) the Secretary shall reserve .305 percent (or 
        $2,125,000, whichever is greater) for the Secretary of the 
        Interior for programs under this subpart for schools operated 
        or funded by the Bureau of Indian Affairs; and
            ``(2) the Secretary shall reserve .305 percent (or 
        $2,125,000, whichever is greater) to provide assistance to the 
        outlying areas.
    ``(c) Minimum Allotment.--The amount of any State's allotment under 
subsection (a) for any fiscal year may not be less than one-half of one 
percent of the amount made available under section 3101(b)(1) for such 
year.
    ``(d) Reallotment of Unused Funds.--If any State does not apply for 
an allotment under this subpart for a fiscal year, the Secretary shall 
reallot the amount of the State's allotment to the remaining States in 
accordance with this section.

``SEC. 3112. USE OF ALLOTMENT BY STATE.

    ``(a) In General.--Except as provided in subsection (b), of the 
amount provided to a State from its allotment under section 3111--
            ``(1) the State may use not more than 5 percent to carry 
        out activities under section 3115; and
            ``(2) not less than 95 percent shall be distributed to 
        local educational agencies by the State as follows:
                    ``(A) At least 80 percent shall be used for 
                activities described in section 3116, to be distributed 
                through a formula developed by the State which shall 
                target funds to high need local educational agencies 
                which have submitted plans to the State under section 
                3114, and which may (at the option of the State)--
                            ``(i) be the formula used by the State to 
                        award grants to local educational agencies 
                        under section 3132 (as in effect prior to the 
                        enactment of the Education OPTIONS Act); and
                            ``(ii) set a minimum amount that may be 
                        provided to any recipient.
                    ``(B) Not more than 20 percent shall be awarded 
                through a State-determined competitive process to 
                eligible local entities which have submitted plans to 
                the State under section 3114, to be used to carry out 
                activities consistent with this part.
    ``(b) Continuation of Funding for Former Programs.--
            ``(1) In general.--From funds made available under this 
        ubpart, a State is authorized to continue funding multiyear 
        grants awarded prior to fiscal year 2001 under section 3132 of 
        this title (as in effect prior to the enactment of the 
        Education OPTIONS Act), for the duration of the original grant 
        period.
            ``(2) Reduction in amount available for other activities.--
        The amount available for a State to use under subsection (a) 
        shall be reduced by the amount used by the State to continue 
        funding former programs under paragraph (1).

``SEC. 3113. STATE PLANS.

    ``(a) In General.--To be eligible to receive a grant under this 
subpart, a State shall submit a new or updated statewide, long-range 
strategic educational technology plan to the Secretary at such time, in 
such manner, and containing such information as the Secretary may 
reasonably require.
    ``(b) Contents.--Each State plan submitted under this section shall 
include the following:
            ``(1) A description of how the State will use funds 
        provided under this subpart to improve the academic achievement 
        of all students and to improve the capacity of all teachers to 
        provide instruction in the State, through the use of education 
        technology.
            ``(2) A description of the State's goals for using advanced 
        technology to improve student achievement aligned to 
        challenging State content and student performance standards, 
        including a description of how the State will take steps to 
        ensure that all students in the State, particularly those 
        residing in districts served by high need local educational 
        agencies, will have increased access to educational technology.
            ``(3) A description of the process the State will use for 
        the evaluation of the extent to which education technology 
        funded under this part has been successfully integrated into 
        teaching strategies and school curriculum, has increased the 
        ability of teachers to teach, and has enabled students to meet 
        challenging State content and student performance standards.
            ``(4) A description of how the State will encourage the 
        development and utilization of innovative strategies for the 
        delivery of specialized or rigorous academic courses and 
        curricula through the use of technology and distance learning, 
        particularly for those areas of the State which are isolated 
        and which would not otherwise have access to such courses and 
        curricula.
            ``(5) An assurance that financial assistance provided under 
        this subpart shall supplement, not supplant, State and local 
        funds.
            ``(6) A description of how the State plans to ensure that 
        every teacher within a school funded under this part will be 
        computer-literate and proficient (as determined by the State) 
        by 2004.
    ``(c) Deemed Approval.--A State plan submitted to the Secretary 
under this section shall be deemed to be approved by the Secretary 
unless the Secretary makes a written determination prior to the 
expiration of the 90-day period which begins on the date the Secretary 
receives the application that the plan is in violation of the 
provisions of this part.
    ``(d) Disapproval.--The Secretary may issue a final disapproval of 
a State's application under this subpart only after giving the State 
notice and an opportunity for a hearing.
    ``(e) Dissemination of Information on State Plans.--The Secretary 
shall establish a process under which information on State plans under 
this subpart is made widely available to schools and the general 
public, including through dissemination on the Internet, in a timely 
and user-friendly manner.

``SEC. 3114. LOCAL PLANS.

    ``(a) In General.--An applicant seeking to receive funds from a 
State under this subpart shall submit a new or updated long-range local 
strategic educational technology plan consistent with the objectives of 
the statewide education technology plan described in section 3113(a) to 
the State at such time, in such manner, and accompanied by such 
information as the State may reasonably require.
    ``(b) Contents of Local Plan.--Each local plan described in this 
section shall include the following:
            ``(1) A description of how the applicant will use Federal 
        funds provided under this subpart to improve the academic 
        achievement of all students and to improve the capacity of all 
        teachers to provide instruction through the use of education 
        technology.
            ``(2) A description of the applicant's specific goals for 
        using advanced technology to improve student achievement 
        aligned to challenging State content and student performance 
        standards, including a description of how the applicant will 
        take steps to ensure that all students in the local educational 
        area (particularly those in high poverty and high need schools) 
        have increased access to educational technology, and a 
        description of how such technology will be used to improve the 
        academic achievement for such students.
            ``(3) A description of how the applicant will promote--
                    ``(A) the utilization of teaching strategies and 
                curricula, based upon scientifically based research, 
                which effectively integrate technology into 
                instruction, leading to improvements in student 
                academic achievement as measured by challenging State 
                content and student performance standards; and
                    ``(B) sustained and intensive, high quality 
                professional development, based upon scientifically 
                based research, which increases teacher capacity to 
                create improved learning environments through the 
                integration of technology into instruction through 
                proven strategies and improved content as described in 
                subparagraph (A).
            ``(4) A description of how the applicant will integrate 
        technology across the curriculum and a time line for such 
        integration, including a description of how the applicant will 
        make effective use of new and emerging technologies and 
        teaching practices that are linked to such emerging 
        technologies to provide challenging content and improved 
        classroom instruction.
            ``(5) A description of how the applicant will coordinate 
        education technology activities funded under this subpart, 
        including (but not limited to) professional development, with 
        any such activities provided under other Federal, State, and 
        local programs, including those authorized under title I, title 
        II, title VI, and (where applicable) the Individuals with 
        Disabilities Education Act and the Carl D. Perkins Vocational 
        and Technical Education Act of 1998.
            ``(6) A description of the process the applicant will use 
        for the evaluation of the extent to which funds provided under 
        this subpart were effective in integrating technology into 
        school curriculum, increasing the ability of teachers to teach, 
        and enabling students to meet challenging State content and 
        student performance standards.
            ``(7) If requested by the State--
                    ``(A) a description of how the applicant will use 
                funds provided under this subpart in a manner which is 
                consistent with any broad education technology 
                priorities which may be established by the State 
                consistent with this part; and
                    ``(B) an assurance that any technology obtained 
                with funds provided under this subpart will have 
                compatibility and interconnectivity with technology 
                obtained with funds provided previously under this 
                title (as in effect prior to the enactment of the 
                Education OPTIONS Act).
            ``(8) A description of the applicant's Internet filtering 
        or blocking technology and related enforcement policies.

``SEC. 3115. STATE ACTIVITIES.

    ``(a) In General.--From funds made available under section 
3112(a)(1), a State shall carry out activities and assist local efforts 
to carry out the purposes of this part, which may include the following 
activities:
            ``(1) Developing or assisting applicants in the development 
        and utilization of innovative strategies to deliver rigorous 
        academic programs through the use of technology and distance 
        learning, and providing other technical assistance to such 
        applicants throughout the State, with a priority to high need 
        local educational agencies.
            ``(2) Establishing or supporting joint public and private 
        initiatives to provide interest-free or reduced loans for the 
        acquisition of educational technology for high need local 
        educational agencies and students attending schools within such 
        districts.
            ``(3) Assisting applicants in providing sustained and 
        intensive high-quality professional development based upon 
        scientifically based research in the integration of advanced 
        technologies (including emerging technologies) into curriculum 
        and in using those technologies to create new learning 
        environments, including training in the use of technology to--
                    ``(A) access data and resources to develop 
                curricula and instructional materials;
                    ``(B) enable teachers to use the Internet to 
                communicate with other teachers and to retrieve web-
                based learning resources; and
                    ``(C) lead to improvements in classroom instruction 
                in the core academic subject areas, which effectively 
                prepare students to meet challenging State content and 
                student performance standards.
            ``(4) Assisting applicants in providing all students 
        (including students from nontraditional populations, students 
        with disabilities, and students with limited English 
        proficiency) with access to educational technology.
            ``(5) Establishing or expanding access to technology in 
        neighborhoods served by high need local educational agencies, 
        with special emphasis for access provided through technology 
        centers in partnership with libraries and with the support of 
        the private sector.
            ``(6) Developing enhanced performance measurement systems 
        to determine the effectiveness of education technology programs 
        funded under this subpart, especially in determining the extent 
        to which education technology funded under this part has been 
        successfully integrated into teaching strategies and school 
        curriculum, has increased the ability of teachers to teach, and 
        has enabled students to meet challenging State content and 
        student performance standards.
    ``(b) Limitation on Administrative Costs.--Of the 5 percent of the 
State's allotment under section 3111 which may be used to carry out 
activities under this section, not more than 10 percent may be used by 
the State for administrative costs.

``SEC. 3116. LOCAL ACTIVITIES.

    ``(a) Professional Development.--A recipient of funds made 
available under section 3112(a)(2)(A) shall use not less than 20 
percent of such funds to provide sustained and intensive, high-quality 
professional development, based on scientifically based research, in 
the integration of advanced technologies (including emerging 
technologies) into curriculum and in using those technologies to create 
new learning environments, including training in the use of technology 
to--
            ``(1) access data and resources to develop curricula and 
        instructional materials;
            ``(2) enable teachers to use the Internet to communicate 
        with other teachers and retrieve web-based learning resources; 
        and
            ``(3) lead to improvements in classroom instruction in the 
        core academic subject areas, which effectively prepare students 
        to meet challenging State content and student performance 
        standards.
    ``(b) Other Activities.--In addition to the activities described in 
subsection (a), a recipient of funds made available under section 
3112(a)(2)(A) shall use such funds to carry out other activities 
consistent with this part, which may include the following:
            ``(1) Adapting or expanding existing and new applications 
        of technology to enable teachers to increase student academic 
        achievement through the use of teaching practices and advanced 
        technologies which are based upon scientifically based research 
        and are designed to prepare students to meet challenging State 
        content and student performance standards, and for developing 
        and utilizing innovative strategies to deliver rigorous 
        academic programs.
            ``(2) Developing, expanding, or acquiring education 
        technology as a means to improve the academic achievement of 
        all students.
            ``(3) The establishment or expansion of initiatives, 
        especially those involving public/private partnerships, 
        designed to increase access to technology, particularly for 
        high need local educational agencies.
            ``(4) Using technology to promote parent and family 
        involvement and support communications between parents, 
        teachers, and students.
            ``(5) Acquiring filtering, blocking, or other technologies 
        and activities which are designed to protect students from 
        harmful materials which may be accessed on the Internet.
            ``(6) Using technology to collect, manage, and analyze data 
        to inform school improvement efforts.
            ``(7) Implementing enhanced performance measurement systems 
        to determine the effectiveness of education technology programs 
        funded under this subpart, especially in determining the extent 
        to which education technology funded under this part has been 
        successfully integrated into teaching strategies and school 
        curriculum, has increased the ability of teachers to teach, and 
        has enabled students to meet challenging State content and 
        student performance standards.
            ``(8) Preparing one or more teachers in elementary, middle, 
        and secondary schools as technology leaders who are provided 
        with the means to serve as experts and train other teachers in 
        the effective use of technology.
            ``(9) Establishing or expanding access to technology in 
        neighborhoods served by high need local educational agencies, 
        with special emphasis for access provided through technology 
        centers in partnership with libraries and with the support of 
        the private sector.
    ``(c) Internet Filtering.--
            ``(1) In general.--No funds made available under this 
        subpart to a local educational agency or elementary or 
        secondary school may be used to purchase computers used to 
        access the Internet, or to pay for direct costs associated with 
        accessing the Internet, unless such agency or school has in 
        place, on computers that are accessible to minors, and during 
        use by such minors, technology which filters or blocks--
                    ``(A) material that is obscene;
                    ``(B) child pornography; and
                    ``(C) material harmful to minors.
            ``(2) Disabling during adult use.--An administrator, 
        supervisor, or other authority may disable the technology 
        described in paragraph (1) during use by an adult, to enable 
        unfiltered access for bona fide research or other lawful 
        purposes.
            ``(3) Rule of construction.--Nothing in this section shall 
        be construed to prohibit a local educational agency or 
        elementary or secondary school from filtering or blocking 
        materials other than those referred to in subparagraph (A), 
        (B), or (C) of paragraph (1).
            ``(4) Definitions.--
                    ``(A) Material harmful to minors.--The term 
                `material harmful to minors' has the meaning given such 
                term in section 231(e)(6) of the Communications Act of 
                1934.
                    ``(B) Child pornography.--The term `child 
                pornography' has the meaning given such term in section 
                2256(8) of title 18, United States Code.
                    ``(C) Minor.--The term `minor' has the meaning 
                given such term in section 2256(1) of title 18, United 
                States Code.
            ``(5) Severability.--If any provision of this subsection is 
        held invalid, the remainder of such subsection and this Act 
        shall not be affected thereby.

              ``Subpart 3--National Technology Initiatives

``SEC. 3121. NATIONAL TECHNOLOGY INITIATIVES.

    ``(a) In General.--Using funds made available under section 
3101(b)(2), the Secretary may carry out the following initiatives:
            ``(1) The funding of programs built upon scientifically 
        based research, which utilize technology in education, through 
        the competitive awarding of grants or contracts, pursuant to a 
        peer review process, to States, local educational agencies 
        (including eligible local entities), institutions of higher 
        education, and public and private or nonprofit or for-profit 
        agencies.
            ``(2) The provision of technical assistance to States, 
        local educational agencies, and other grantees under this part 
        (directly or through the competitive award of grants or 
        contracts) in order to assist such States, local educational 
        agencies, and other grantees to achieve the purposes of this 
        part.
            ``(3) Acting through the Office of Educational Technology, 
        the updating of the national long-range educational technology 
        plan developed pursuant to section 3121 (as in effect prior to 
        the enactment of the Education OPTIONS Act) in accordance with 
        the requirements of such section, in order to promote the 
        purposes of this title and to ensure the coordination of 
        Federal efforts to promote the effective use of educational 
        technology.
    ``(b) Study of Use of Technology To Improve Academic Achievement.--
Using funds made available under section 3101(b)(2), the Secretary 
shall conduct an independent, long-term study utilizing scientifically 
based research methods and control groups, on the effectiveness of the 
uses of educational technology on improving student academic 
achievement, and shall include in the study an identification of 
effective uses of educational technology that have a measurable 
positive impact on student achievement.
    ``(c) Priorities.--In funding initiatives under subsection (a), the 
Secretary shall place a priority on projects which--
            ``(1) develop innovative models using electronic networks 
        or other forms of distance learning to provide challenging 
        courses which are otherwise not readily available to students 
        in a particular school district, particularly in rural areas; 
        and
            ``(2) increase access to technology to those residing in 
        districts served by high need local educational agencies.

``SEC. 3122. REQUIREMENTS FOR RECIPIENTS OF FUNDS.

    ``(a) Application.--In order to receive a grant or contract under 
this subpart, an entity shall submit an application to the Secretary 
(at such time and in such form as the Secretary may require), and shall 
include in the application--
            ``(1) a description of the project proposed to be carried 
        out with the grant or contract and how it would carry out the 
        purposes of this subpart; and
            ``(2) a detailed plan for the independent evaluation of the 
        project built upon scientifically based research principles to 
        determine the impact on the academic achievement of students 
        served under such project, as measured by challenging State 
        content and student performance standards.
    ``(b) Non-Federal Share.--
            ``(1) In general.--Subject to paragraphs (2) and (3), the 
        Secretary may require any recipient of a grant or contract 
        under this subpart to share in the cost of the activities 
        assisted under such grant or contract, which may be in the form 
        of cash or in-kind contributions fairly valued.
            ``(2) Increase.--The Secretary may increase the non-Federal 
        share required of a recipient of a grant or contract under this 
        subpart after the first year such recipient receives funds 
        under such grant or contract.
            ``(3) Maximum.--The non-Federal share required under this 
        subsection may not exceed 50 percent of the cost of the 
        activities assisted pursuant to a grant or contract under this 
        subpart.
            ``(4) Notice.--The Secretary shall publish in the Federal 
        Register the non-Federal share required under this subsection.

``SEC. 3123. EVALUATION AND DISSEMINATION.

    ``(a) Evaluation Authority.--In order to identify effective uses of 
educational technology that have a measurable positive impact on 
student achievement, the Secretary shall--
            ``(1) develop tools and provide resources, including 
        technical assistance, for recipients of funds under this 
        subpart to effectively evaluate their activities; and
            ``(2) conduct independent evaluations of the activities 
        assisted under this subpart.
    ``(b) Post-Grant Evaluation Information and Dissemination.--
            ``(1) In general.--The Secretary shall establish a process 
        under which information on each project funded with a grant or 
        contract under this subpart is made widely available to schools 
        and the general public, including through dissemination on the 
        Internet, in a timely and user-friendly manner.
            ``(2) Specific information required.--The information made 
        available and disseminated under paragraph (1) shall at a 
        minimum include the following:
                    ``(A) Upon the awarding of such a grant or contract 
                under this subpart, the identification of the grant or 
                contract recipient, the amount of the grant or 
                contract, the stated goals of the grant or contract, 
                the methods by which the grant or contract will be 
                evaluated in meeting such stated goals, and the 
                timeline for meeting such goals.
                    ``(B) Not later than 12 months after the awarding 
                of such a grant or contract, information on the 
                progress of the grant or contract recipient in carrying 
                out the grant or contract, including a detailed 
                description of the use of the funds provided, the 
                extent to which the stated goals have been reached, and 
                the results (or progress of) the evaluation of the 
                project, meeting the requirements of scientifically 
                based research, funded under the grant or contract.
                    ``(C) Not later than 24 months after the awarding 
                of such a grant or contract (and updated thereafter as 
                appropriate), a follow up to the information described 
                in subparagraph (B).

                  ``PART B--READY TO LEARN TELEVISION

``SEC. 3201. PROGRAM AUTHORIZED.

    ``(a) In General.--The Secretary is authorized to award grants to 
or enter into contracts or cooperative agreements with eligible 
entities described in subsection (c) to--
            ``(1) develop, produce, and distribute educational and 
        instructional video programming for preschool and elementary 
        school children and their parents in order to facilitate 
        student academic achievement;
            ``(2) facilitate the development (directly or through 
        contracts with producers of children and family educational 
        television programming) of educational programming for 
        preschool and elementary school children and accompanying 
        support materials and services that directly promote the 
        effective use of such programming;
            ``(3) facilitate the development of programming and digital 
        content especially designed for nationwide distribution over 
        digital broadcasting channels and the Internet, containing 
        Ready to Learn-based children's programming and resources for 
        parents and caregivers;
            ``(4) enable such entities to contract with other entities 
        (such as public telecommunications entities) so that programs 
        funded under this section are disseminated and distributed by 
        the most appropriate distribution technologies to the widest 
        possible audience appropriate to be served by the programming; 
        and
            ``(5) develop and disseminate training and support 
        materials, including interactive programs and programs 
        adaptable to distance learning technologies which are designed 
        to--
                    ``(A) promote school readiness; and
                    ``(B) promote the effective use of programming 
                developed under paragraphs (2) and (3) among parents, 
                Head Start providers, Even Start and providers of 
                family literacy services, child care providers, early 
                childhood development personnel, and elementary school 
                teachers, public libraries, and after school program 
                personnel caring for preschool and elementary school 
                children.
    ``(b) Availability.--In making grants, contracts, or cooperative 
agreements under this section, the Secretary shall ensure that 
recipients increase the effective use of the programming funded under 
this section by making it widely available with support materials as 
appropriate to young children, their parents, child care workers, Head 
Start providers, and Even Start and providers of family literacy 
services.
    ``(c) Eligible Entities Described.--In this part, an `eligible 
entity' means a nonprofit entity (including a public telecommunications 
entity) which is able--
            ``(1) to demonstrate a capacity for the development and 
        national distribution of educational and instructional 
        television programming of high quality which is accessible by a 
        large majority of disadvantaged preschool and elementary school 
        children; and
            ``(2) to demonstrate--
                    ``(A) a capacity to contract with the producers of 
                children's television programming for the purpose of 
                developing educational television programming of high 
                quality which is accessible by a large majority of 
                disadvantaged preschool and elementary school children, 
                and
                    ``(B) consistent with the entity's mission and 
                nonprofit nature, a capacity to negotiate such 
                contracts in a manner which returns to the entity an 
                appropriate share of any ancillary income from sales of 
                any program-related products.
    ``(d) Cap on Administrative Costs.--An entity receiving a grant, 
contract, or cooperative agreement from the Secretary under this 
section may not use more than 5 percent of the amounts received under 
the grant, contract, or cooperative agreement for the expenses of 
administering the grant, contract, or cooperative agreement.
    ``(e) Coordination of Activities.--An entity receiving a grant, 
contract, or cooperative agreement from the Secretary under this 
section shall work with the Secretary and the Secretary of Health and 
Human Services to--
            ``(1) maximize the utilization by preschool and elementary 
        school children of the programming funded under this section 
        and to make such programming widely available to federally 
        funded programs serving such populations; and
            ``(2) coordinate with Federal programs that have major 
        training components for early childhood development (including 
        Head Start, Even Start, family literacy services, and State 
        training activities funded under the Child Care Development 
        Block Grant Act of 1990) regarding the availability and 
        utilization of materials developed with funds provided under 
        this section to enhance parent and child care provider skills 
        in early childhood development and education.

``SEC. 3202. APPLICATIONS.

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

``SEC. 3203. REPORTS AND EVALUATION.

    ``(a) Annual Report by Grant Recipients to Secretary.--Each entity 
receiving funds under section 3201 shall prepare and submit to the 
Secretary an annual report which contains such information as the 
Secretary may require. At a minimum, the report shall describe the 
program activities undertaken with funds received under such section, 
including information regarding--
            ``(1) the programming that has been developed directly or 
        indirectly by the entity and the target population of the 
        programs developed;
            ``(2) the support and training materials that have been 
        developed to accompany the programming and the method by which 
        such materials are distributed to consumers and users of the 
        programming;
            ``(3) the means by which the programming has been 
        distributed, including the distance learning technologies that 
        have been utilized to make programming available and the 
        geographic distribution achieved through such technologies; and
            ``(4) the initiatives undertaken by the entity to develop 
        public-private partnerships to secure non-Federal support for 
        the development and distribution and broadcast of educational 
        and instructional programming.
    ``(b) Report to Congress.--The Secretary shall prepare and submit 
to the relevant committees of Congress a biannual report on the 
activities funded and carried out under this part, and shall include in 
the report--
            ``(1) a summary of the programming developed using funds 
        provided under section 3201; and
            ``(2) a description of the training materials developed 
        using funds provided under section 3201, the manner in which 
        outreach has been conducted to inform parents and child care 
        providers of the availability of such materials, and the manner 
        in which such materials have been distributed.

``SEC. 3204. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$16,000,000 for fiscal year 2000, and such sums as may be necessary for 
each of the 5 succeeding fiscal years. Not less than 60 percent of the 
amounts authorized to be appropriated under this section for any fiscal 
year shall be used to carry out paragraphs (2) and (3) of section 
3201(a).

                  ``PART C--TELECOMMUNICATIONS PROGRAM

``SEC. 3301. PROGRAM AUTHORIZED.

    ``The Secretary is authorized to make grants to a nonprofit 
telecommunications entity (or a partnership of such entities) for the 
purpose of carrying out a national telecommunications-based program to 
improve the teaching of core academic subjects. The program shall be 
designed to assist elementary and secondary school teachers in 
preparing all students to achieve State content standards.

``SEC. 3302. APPLICATION REQUIRED.

    ``(a) In General.--Any nonprofit telecommunications entity or 
partnership of such entities desiring a grant under this part shall 
submit an application to the Secretary.
    ``(b) Contents of Application.--Each application submitted under 
subsection (a) shall--
            ``(1) demonstrate that the applicant will use the existing 
        publicly funded telecommunications infrastructure, the 
        Internet, and school digital networks (where available) to 
        deliver video, voice, and data in an integrated service to 
        train teachers in the use of materials and learning 
        technologies for achieving State content standards;
            ``(2) assure that the program for which assistance is 
        sought will be conducted in cooperation with States as 
        appropriate, local educational agencies, and State or local 
        nonprofit public telecommunications entities;
            ``(3) assure that a significant portion of the benefits 
        available for elementary and secondary schools from the program 
        for which assistance is sought will be available to schools of 
        local educational agencies which have a high percentage of 
        children counted for the purpose of part A of title I; and
            ``(4) contain such additional assurances as the Secretary 
        may reasonably require.
    ``(c) Approval of Applications; Number of Demonstration Sites.--In 
approving applications under this section, the Secretary shall assure 
that the demonstration program authorized by this part is conducted at 
elementary and secondary school sites in at least 15 States.

``SEC. 3303. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
$8,500,000 for fiscal year 2000, and such sums as may be necessary for 
each of the 5 succeeding fiscal years.''.

                TITLE IV--INNOVATIVE EDUCATION PROGRAMS

SEC. 401. INNOVATIVE EDUCATION PROGRAM STRATEGIES.

    Title VI of the Elementary and Secondary Education Act of 1965 (20 
U.S.C. 7301 et seq.) is amended to read as follows:

          ``TITLE VI--INNOVATIVE EDUCATION PROGRAM STRATEGIES

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

    ``(a) Findings.--The Congress finds that this title--
            ``(1) provides flexibility to meet local needs;
            ``(2) promotes local and State education reforms;
            ``(3) contributes to the improvement of academic 
        achievement for all students.
            ``(4) provides funding for critical activities; and
            ``(5) provides services for private school students.
    ``(b) Statement of Purpose.--It is the purpose of programs under 
this title--
            ``(1) to provide funding to enable States and local 
        educational agencies to implement promising educational reform 
        programs and school improvement initiatives based on 
        scientifically based research;
            ``(2) to provide a continuing source of innovation and 
        educational improvement, including support for library services 
        and instructional and media materials; and
            ``(3) to meet the educational needs of all students, 
        including at risk students.
    ``(c) State and Local Responsibility.--The basic responsibility for 
the administration of funds made available under this title is within 
the States, but it is the intent of Congress that the responsibility be 
carried out with a minimum of paperwork and that the responsibility for 
the design and implementation of programs assisted under this title 
will be mainly that of local educational agencies, school 
superintendents and principals, and classroom teachers and supporting 
personnel, because such agencies and individuals have the most direct 
contact with students and are most likely to be able to design programs 
to meet the educational needs of students in their own school 
districts.

                   ``PART A--STATE AND LOCAL PROGRAMS

``SEC. 6101. ALLOTMENT TO STATES.

    ``(a) Reservations.--From the sums appropriated to carry out this 
title for any fiscal year, the Secretary shall reserve not to exceed 1 
percent for payments to outlying areas to be allotted in accordance 
with their respective needs.
    ``(b) Allotment.--From the remainder of such sums, the Secretary 
shall allot to each State an amount which bears the same ratio to the 
amount of such remainder as the school-age population of the State 
bears to the school-age population of all States, except that no State 
shall receive less than an amount equal to \1/2\ of 1 percent of such 
remainder.

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

    ``(a) Distribution Rule.--
            ``(1) In general.--Subject to paragraph (2), from the sums 
        made available each year to carry out this title, the State 
        shall distribute not less than 85 percent to local educational 
        agencies within such State according to the relative 
        enrollments in public and private, nonprofit schools within the 
        jurisdictions of such agencies, adjusted, in accordance with 
        criteria approved by the Secretary, to provide higher per-pupil 
        allocations to local educational agencies that have the 
        greatest numbers or percentages of children whose education 
        imposes a higher than average cost per child, such as--
                    ``(A) children living in areas with high 
                concentrations of low-income families;
                    ``(B) children from low-income families; and
                    ``(C) children living in sparsely populated areas.
            ``(2) Exception.--100 percent of any amount by which the 
        funds paid to a State under this title for a fiscal year exceed 
        the amount of such funds paid to the State for fiscal year 2000 
        shall be distributed to local educational agencies and used 
        locally for innovative assistance described in section 6301(b).
            ``(3) Limitation on administrative costs.--Not more than 4 
        percent of the funds paid to a State under this title for a 
        fiscal year may be used by the agency for administration and 
        supervision of programs assisted under this title.
    ``(b) Calculation of Enrollments.--
            ``(1) In general.--The calculation of relative enrollments 
        under subsection (a)(1) shall be on the basis of the total of--
                    ``(A) the number of children enrolled in public 
                schools; and
                    ``(B) the number of children enrolled in private 
                nonprofit schools that desire that their children 
                participate in programs or projects assisted under this 
                title, for the fiscal year preceding the fiscal year 
                for which the determination is made.
            ``(2) Construction.--Nothing in this subsection shall 
        diminish the responsibility of local educational agencies to 
        contact, on an annual basis, appropriate officials from private 
        nonprofit schools within the areas served by such agencies in 
        order to determine whether such schools desire that their 
        children participate in programs assisted under this part.
            ``(3) Adjustments.--
                    ``(A) In general.--Relative enrollments under 
                subsection (a)(1) shall be adjusted, in accordance with 
                criteria approved by the Secretary under subparagraph 
                (B), to provide higher per-pupil allocations only to 
                local educational agencies that serve the greatest 
                numbers or percentages of--
                            ``(i) children living in areas with high 
                        concentrations of low-income families;
                            ``(ii) children from low-income families; 
                        or
                            ``(iii) children living in sparsely 
                        populated areas.
                    ``(B) Criteria.--The Secretary shall review 
                criteria submitted by a State for adjusting allocations 
                under paragraph (1) and shall approve such criteria 
                only if the Secretary determines that such criteria are 
                reasonably calculated to produce an adjusted allocation 
                that reflects the relative needs within the State's 
                local educational agencies based on the factors set 
                forth in subparagraph (A).
    ``(c) Payment of Allocations.--
            ``(1) Distribution.--From the funds paid to a State under 
        this title for a fiscal year, a State shall distribute to each 
        eligible local educational agency that has submitted an 
        application as required in section 6303 the amount of such 
        local educational agency's allocation, as determined under 
        subsection (a).
            ``(2) Additional funds.--
                    ``(A) In general.--Additional funds resulting from 
                higher per-pupil allocations provided to a local 
                educational agency on the basis of adjusted enrollments 
                of children described in subsection (a)(1) may, in the 
                discretion of the local educational agency, be 
                allocated for expenditures to provide services for 
                children enrolled in public and private nonprofit 
                schools in direct proportion to the number of children 
                described in subsection (a)(1) and enrolled in such 
                schools within the local educational agency.
                    ``(B) Election.--In any fiscal year, any local 
                educational agency that elects to allocate such 
                additional funds in the manner described in 
                subparagraph (A) shall allocate all additional funds to 
                schools within the local educational agency in such 
                manner.
                    ``(C) Construction.--Subparagraphs (A) and (B) may 
                not be construed to require any school to limit the use 
                of the additional funds described in subparagraph (A) 
                to the provision of services to specific students or 
                categories of students.

                        ``PART B--STATE PROGRAMS

``SEC. 6201. STATE USES OF FUNDS.

    ``A State may use funds made available for State use under this 
title only for--
            ``(1) State administration of programs under this title 
        including--
                    ``(A) supervision of the allocation of funds to 
                local educational agencies;
                    ``(B) planning, supervision, and processing of 
                State funds; and
                    ``(C) monitoring and evaluation of programs and 
                activities under this title;
            ``(2) support for planning, designing, and initial 
        implementation of charter schools as described in part C of 
        title X; and
            ``(3) statewide education reform and school improvement 
        activities and technical assistance and direct grants to local 
        educational agencies which assist such agencies under section 
        6301.

``SEC. 6202. STATE APPLICATIONS.

    ``(a) Application Requirements.--Any State that desires to receive 
assistance under this title shall submit to the Secretary an 
application which--
            ``(1) provides for an annual statewide summary of how 
        assistance under this title is contributing toward improving 
        student achievement or improving the quality of education for 
        students;
            ``(2) sets forth the allocation of such funds required to 
        implement section 6402;
            ``(3) provides that the State will keep such records and 
        provide such information to the Secretary as may be required 
        for fiscal audit and program evaluation (consistent with the 
        responsibilities of the Secretary under this section);
            ``(4) provides assurance that, apart from technical and 
        advisory assistance and monitoring compliance with this title, 
        the State has not exercised and will not exercise any influence 
        in the decisionmaking processes of local educational agencies 
        as to the expenditure made pursuant to an application under 
        section 6303;
            ``(5) contains assurances that there is compliance with the 
        specific requirements of this title; and
            ``(6) provides for timely public notice and public 
        dissemination of the information provided pursuant to paragraph 
        (2).
    ``(b) Statewide Summary.--The statewide summary referred to in 
subsection (a)(2) shall be submitted to the Secretary and shall be 
derived from the evaluation information submitted by local educational 
agencies to the State under section 6303(a)(8). The format and content 
of such summary shall be in the discretion of the State and may include 
statistical measures such as the number of students served by each type 
of innovative assistance described in subsection (b), including the 
number of teachers trained.
    ``(c) Period of Application.--An application filed by the State 
under subsection (a) shall be for a period not to exceed 3 years, and 
may be amended annually as may be necessary to reflect changes without 
filing a new application.
    ``(d) Audit Rule.--Local educational agencies receiving less than 
an average of $5,000 each under this title shall not be audited more 
frequently than once every 5 years.

             ``PART C--LOCAL INNOVATIVE EDUCATION PROGRAMS

``SEC. 6301. TARGETED USE OF FUNDS.

    ``(a) General Rule.--Funds made available to local educational 
agencies under section 6102 shall be used for innovative assistance 
described in subsection (b).
    ``(b) Innovative Assistance.--The innovative assistance programs 
referred to in subsection (a) may include--
            ``(1) professional development activities and the hiring of 
        teachers, including activities consistent with title II, 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;
            ``(2) technology related to the implementation of school-
        based reform programs, including professional development to 
        assist teachers and other school officials regarding how to use 
        effectively such equipment and software;
            ``(3) programs for the development or acquisition and use 
        of instructional and educational materials, including library 
        services and materials (including media materials), 
        assessments, reference materials, computer software and 
        hardware for instructional use, and other curricular materials 
        which are tied to high academic standards and which will be 
        used to improve student achievement and which are part of an 
        overall education reform program;
            ``(4) promising education reform projects, including 
        effective schools and magnet schools;
            ``(5) programs to improve the academic skills of 
        disadvantaged elementary and secondary school students and to 
        prevent students from dropping out of school;
            ``(6) programs to combat illiteracy in the student and 
        adult population, including parent illiteracy;
            ``(7) programs to provide for the educational needs of 
        gifted and talented children;
            ``(8) planning, designing, and initial implementation of 
        charter schools as described in part C of title X;
            ``(9) school improvement programs or activities under 
        sections 1116 and 1117;
            ``(10) education reform projects that provide single gender 
        schools and classrooms, as long as comparable educational 
        opportunities are offered for students of both sexes;
            ``(11) community service programs that use qualified school 
        personnel to train and mobilize young people to measurably 
        strengthen their communities through nonviolence, 
        responsibility, compassion, respect, and moral courage;
            ``(12) curriculum-based youth entrepreneurship education 
        programs with demonstrated records of empowering disadvantaged 
        youth with applied mathematics, entrepreneurial, and other 
        analytical skills;
            ``(13) activities to promote consumer, economic, and 
        personal finance education, such as disseminating and 
        encouraging the best practices for teaching the basic 
        principles of economics and promoting the concept of achieving 
        financial literacy through the teaching of personal financial 
        management skills including the basic principles involved with 
        earning, spending, saving, and investing;
            ``(14) public school choice; and
            ``(15) expanding and improving school-based mental health 
        services, including early identification of drug use and 
        violence, assessment, and direct individual or group counseling 
        services provided to students, parents, and school personnel by 
        qualified school based mental health services personnel.

``SEC. 6302. ADMINISTRATIVE AUTHORITY.

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

``SEC. 6303. LOCAL APPLICATIONS.

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

                      ``PART D--GENERAL PROVISIONS

``SEC. 6401. MAINTENANCE OF EFFORT; FEDERAL FUNDS SUPPLEMENTARY.

    ``(a) Maintenance of Effort.--
            ``(1) In general.--Except as provided in paragraph (2), a 
        State is entitled to receive its full allocation of funds under 
        this part for any fiscal year if the Secretary finds that 
        either the combined fiscal effort per student or the aggregate 
        expenditures within the State with respect to the provision of 
        free public education for the fiscal year preceding the fiscal 
        year for which the determination is made was not less than 90 
        percent of such combined fiscal effort or aggregate 
        expenditures for the second fiscal year preceding the fiscal 
        year for which the determination is made.
            ``(2) Reduction of funds.--The Secretary shall reduce the 
        amount of the allocation of funds under this part in any fiscal 
        year in the exact proportion to which the State fails to meet 
        the requirements of paragraph (1) by falling below 90 percent 
        of both the fiscal effort per student and aggregate 
        expenditures (using the measure most favorable to the State), 
        and no such lesser amount shall be used for computing the 
        effort required under paragraph (1) for subsequent years.
            ``(3) Waivers.--The Secretary may waive, for 1 fiscal year 
        only, the requirements of this section if the Secretary 
        determines that such a waiver would be equitable due to 
        exceptional or uncontrollable circumstances such as a natural 
        disaster or a precipitous and unforeseen decline in the 
        financial resources of the State.
    ``(b) Federal Funds Supplementary.--A State or local educational 
agency may use and allocate funds received under this part only so as 
to supplement and, to the extent practical, increase the level of funds 
that would, in the absence of Federal funds made available under this 
part, be made available from non-Federal sources, and in no case may 
such funds be used so as to supplant funds from non-Federal sources.

``SEC. 6402. PARTICIPATION OF CHILDREN ENROLLED IN PRIVATE SCHOOLS.

    ``(a) Participation on Equitable Basis.--
            ``(1) In general.--To the extent consistent with the number 
        of children in the school district of a local educational 
        agency which is eligible to receive funds under this title or 
        which serves the area in which a program or project assisted 
        under this title is located who are enrolled in private 
        nonprofit elementary and secondary schools, or with respect to 
        instructional or personnel training programs funded by the 
        State from funds made available for State use, such agency, 
        after consultation with appropriate private school officials, 
        shall provide for the benefit of such children in such schools 
        secular, neutral, and nonideological services, materials, and 
        equipment, including the participation of the teachers of such 
        children (and other educational personnel serving such 
        children) in training programs, and the repair or minor 
        remodeling of public facilities as may be necessary for their 
        provision (consistent with subsection (c) of this section), or, 
        if such services, materials, and equipment are not feasible or 
        necessary in one or more such private schools as determined by 
        the local educational agency after consultation with the 
        appropriate private school officials, shall provide such other 
        arrangements as will assure equitable participation of such 
        children in the purposes and benefits of this title.
            ``(2) Other provisions for services.--If no program or 
        project is carried out under paragraph (1) in the school 
        district of a local educational agency, the State shall make 
        arrangements, such as through contracts with nonprofit agencies 
        or organizations, under which children in private schools in 
        such district are provided with services and materials to the 
        extent that would have occurred if the local educational agency 
        had received funds under this title.
            ``(3) Application of requirements.--The requirements of 
        this section relating to the participation of children, 
        teachers, and other personnel serving such children shall apply 
        to programs and projects carried out under this title by a 
        State or local educational agency, whether directly or through 
        grants to or contracts with other public or private agencies, 
        institutions, or organizations.
    ``(b) Equal Expenditures.--Expenditures for programs pursuant to 
subsection (a) shall be equal (consistent with the number of children 
to be served) to expenditures for programs under this title for 
children enrolled in the public schools of the local educational 
agency, taking into account the needs of the individual children and 
other factors which relate to such expenditures, and when funds 
available to a local educational agency under this title are used to 
concentrate programs or projects on a particular group, attendance 
area, or grade or age level, children enrolled in private schools who 
are included within the group, attendance area, or grade or age level 
selected for such concentration shall, after consultation with the 
appropriate private school officials, be assured equitable 
participation in the purposes and benefits of such programs or 
projects.
    ``(c) Funds.--
            ``(1) Administration of funds and property.--The control of 
        funds provided under this title, and title to materials, 
        equipment, and property repaired, remodeled, or constructed 
        with such funds, shall be in a public agency for the uses and 
        purposes provided in this title, and a public agency shall 
        administer such funds and property.
            ``(2) Provision of services.--The provision of services 
        pursuant to this title shall be provided by employees of a 
        public agency or through contract by such public agency with a 
        person, an association, agency, or corporation who or which, in 
        the provision of such services, is independent of such private 
        school and of any religious organizations, and such employment 
        or contract shall be under the control and supervision of such 
        public agency, and the funds provided under this title shall 
        not be commingled with State or local funds.
    ``(d) State prohibition waiver.--If by reason of any provision of 
law a State or local educational agency is prohibited from providing 
for the participation in programs of children enrolled in private 
elementary and secondary schools, as required by this section, the 
Secretary shall waive such requirements and shall arrange for the 
provision of services to such children through arrangements which shall 
be subject to the requirements of this section.
    ``(e) Waiver and Provision of Services.--
            ``(1) Failure to comply.--If the Secretary determines that 
        a State or a local educational agency has substantially failed 
        or is unwilling to provide for the participation on an 
        equitable basis of children enrolled in private elementary and 
        secondary schools as required by this section, the Secretary 
        may waive such requirements and shall arrange for the provision 
        of services to such children through arrangements which shall 
        be subject to the requirements of this section.
            ``(2) Withholding of allocation.--Pending final resolution 
        of any investigation or complaint that could result in a 
        determination under this subsection or subsection (d), the 
        Secretary may withhold from the allocation of the affected 
        State or local educational agency the amount estimated by the 
        Secretary to be necessary to pay the cost of those services.
    ``(f) Determination.--Any determination by the Secretary under this 
section shall continue in effect until the Secretary determines that 
there will no longer be any failure or inability on the part of the 
State or local educational agency to meet the requirements of 
subsections (a) and (b).
    ``(g) Payment From State Allotment.--When the Secretary arranges 
for services pursuant to this section, the Secretary shall, after 
consultation with the appropriate public and private school officials, 
pay the cost of such services, including the administrative costs of 
arranging for those services, from the appropriate allotment of the 
State under this title.
    ``(h) Review.--
            ``(1) Written objections.--The Secretary shall not take any 
        final action under this section until the State and the local 
        educational agency affected by such action have had an 
        opportunity, for not less than 45 days after receiving written 
        notice thereof, to submit written objections and to appear 
        before the Secretary or the Secretary's designee to show cause 
        why that action should not be taken.
            ``(2) Court action.--If a State or local educational agency 
        is dissatisfied with the Secretary's final action after a 
        proceeding under paragraph (1), such agency may, not later than 
        60 days after notice of such action, file with the United 
        States court of appeals for the circuit in which such State is 
        located a petition for review of that action. A copy of the 
        petition shall be transmitted by the clerk of the court to the 
        Secretary. The Secretary thereupon shall file in the court the 
        record of the proceedings on which the Secretary based this 
        action, as provided in section 2112 of title 28, United States 
        Code.
            ``(3) Remand to secretary.--The findings of fact by the 
        Secretary, if supported by substantial evidence, shall be 
        conclusive; but the court, for good cause shown, may remand the 
        case to the Secretary to take further evidence and the 
        Secretary may make new or modified findings of fact and may 
        modify the Secretary's previous action, and shall file in the 
        court the record of the further proceedings. Such new or 
        modified findings of fact shall likewise be conclusive if 
        supported by substantial evidence.
            ``(4) Court review.--Upon the filing of such petition, the 
        court shall have jurisdiction to affirm the action of the 
        Secretary or to set such action aside, in whole or in part. The 
        judgment of the court shall be subject to review by the Supreme 
        Court of the United States upon certiorari or certification as 
        provided in section 1254 of title 28, United States Code.

``SEC. 6403. FEDERAL ADMINISTRATION.

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

``SEC. 6404. DEFINITIONS.

    ``For purposes of this title:
            ``(1) Effective schools programs.--The term `effective 
        schools programs' means school-based programs that may 
        encompass preschool through secondary school levels and that 
        have the objectives of--
                    ``(A) promoting school-level planning, 
                instructional improvement, and staff development;
                    ``(B) increasing the academic achievement levels of 
                all children and particularly educationally 
                disadvantaged children; and
                    ``(C) achieving as ongoing conditions in the school 
                the following factors identified through scientifically 
                based research as distinguishing effective from 
                ineffective schools:
                            ``(i) Strong and effective administrative 
                        and instructional leadership that creates 
                        consensus on instructional goals and 
                        organizational capacity for instructional 
                        problem solving.
                            ``(ii) Emphasis on the acquisition of basic 
                        and advanced academic skills.
                            ``(iii) A safe and orderly school 
                        environment that allows teachers and pupils to 
                        focus their energies on academic achievement.
                            ``(iv) Continuous review of students and 
                        programs to evaluate the effects of 
                        instruction.
            ``(2) School-age population.--The term `school-age 
        population' means the population aged 5 through 17.
            ``(3) Scientifically based research.--The term 
        `scientifically based research'--
                    ``(A) means the application of rigorous, 
                systematic, and objective procedures to obtain valid 
                knowledge relevant to effective schools programs; 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.
            ``(4) State.--The term `State' means each of the 50 States, 
        the District of Columbia, and the Commonwealth of Puerto Rico.

``SEC. 6405. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$365,750,000 for fiscal year 2000 and such sums as may be necessary for 
each of the 5 succeeding fiscal years.''.

               TITLE V--PROGRAMS OF NATIONAL SIGNIFICANCE

             PART A--FUND FOR THE IMPROVEMENT OF EDUCATION

SEC. 501. FUND FOR THE IMPROVEMENT OF EDUCATION.

    Part A of title X of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 8001 et seq.) is amended to read as follows:

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

``SEC. 10101. PROHIBITION ON FEDERALLY SPONSORED TESTING.

    ``Notwithstanding any other provision of Federal law, no funds 
provided under this part to the Secretary or to the recipient of any 
award may be used to develop, pilot test, field test, implement, 
administer, or distribute any federally sponsored national test in 
reading, mathematics, or any other subject, unless specifically and 
explicitly authorized by law.

``SEC. 10102. PROHIBITION ON FEDERAL ENDORSEMENT OF ELEMENTARY AND 
              SECONDARY SCHOOL CURRICULUM.

    ``Notwithstanding any other provision of Federal law, no funds 
provided under this part to the Secretary may be used to endorse, 
approve, or sanction any curriculum designed to be used in elementary 
or secondary schools.

``SEC. 10103. FUND FOR THE IMPROVEMENT OF EDUCATION.

    ``(a) Programs and Projects Authorized.--
            ``(1) In general.--From funds appropriated under this part, 
        the Secretary is authorized to support nationally significant 
        programs and projects to improve the quality of elementary and 
        secondary education at the State and local levels.
            ``(2) Methods for carrying out programs and projects.--The 
        Secretary is authorized to carry out such programs and projects 
        directly, or through grants to or contracts with States or 
        local educational agencies, institutions of higher education, 
        and other public and private agencies, organizations, and 
        institutions, including religious organizations.
    ``(b) Uses of Funds.--The funds appropriated under this part may be 
used for any of the following activities and programs:
            ``(1) Activities to promote systemic education reform at 
        the State and local levels, including--
                    ``(A) scientifically based research to improve 
                student academic achievement at the State and local 
                level; and
                    ``(B) the development and evaluation of strategies 
                for parent and community involvement.
            ``(2) Programs at the State and local levels which are 
        designed to yield significant results, including programs to 
        explore approaches to public school choice and school-based 
        decision-making.
            ``(3) Programs designed to promote public school choice.
            ``(4) Performance rewards for States which--
                    ``(A) make significant progress in eliminating 
                achievement gaps by increasing the proportions of 2 or 
                more groups of students described in section 
                1111(a)(3)(I) who meet State proficiency standards; and
                    ``(B) have agreed to meet specific and numerical 
                performance goals during the term of a performance 
                agreement of at least 5 years in length.
            ``(5) Activities to promote and evaluate coordinated pupil 
        services programs.
            ``(6) Activities to promote consumer, economic, 
        entrepreneurial, and personal finance education, including 
        disseminating and encouraging the best practices for teaching 
        the basic principles of economics and promoting the concept of 
        achieving financial literacy through the teaching of personal 
        financial management skills, including the basic principles 
        involved with earning, spending, saving, and investing.
            ``(7) Studies, evaluations, and dissemination of various 
        education reform strategies and innovations based on 
        scientifically based research being pursued by the Federal 
        Government, States, and local educational agencies.
            ``(8) The identification and recognition of exemplary 
        schools and programs such as Blue Ribbon Schools.
            ``(9) Experiential-based learning programs.
            ``(10) The development and expansion of public-private 
        partnership education programs which extend the learning 
        experience beyond the classroom environment through the use of 
        computers.
            ``(11) An independent study conducted in consultation with 
        appropriate entities, which will provide a multi-level 
        coordinated implementation strategy based on scientifically 
        based research, for effective professional development 
        activities for mathematics and science teachers.
            ``(12) Grants for elementary and secondary school 
        counseling programs under section 10104.
            ``(13) Grants for character education programs under 
        section 10105.
            ``(14) Grants for smaller learning communities within high 
        schools programs under section 10106.

``SEC. 10104. ELEMENTARY AND SECONDARY SCHOOL COUNSELING PROGRAMS.

    ``(a) Grants Authorized.--
            ``(1) In general.--The Secretary may use funds provided 
        under this part to award grants to local educational agencies 
        to enable such agencies to establish or expand elementary and 
        secondary school counseling programs which meet the 
        requirements of subsection (b).
            ``(2) Priority.--In awarding grants under this section, the 
        Secretary shall give special consideration to applications 
        describing programs which--
                    ``(A) demonstrate the greatest need for new or 
                additional counseling services among the children in 
                the schools served by the applicant;
                    ``(B) propose the most promising and innovative 
                approaches for initiating or expanding school 
                counseling; and
                    ``(C) show the greatest potential for replication 
                and dissemination.
            ``(3) Equitable distribution.--In awarding grants under 
        this section, the Secretary shall ensure an equitable 
        geographic distribution among the regions of the United States 
        and among urban, suburban, and rural local educational 
        agencies.
            ``(4) Duration.--A grant under this section shall be 
        awarded for a period not to exceed 3 years.
    ``(b) Requirements for Counseling Programs.--Each program funded 
under this section shall--
            ``(1) be comprehensive in addressing the counseling and 
        educational needs of all students;
            ``(2) use a developmental, preventive approach to 
        counseling;
            ``(3) increase the range, availability, quantity, and 
        quality of counseling services in the elementary and secondary 
        schools of the local educational agency;
            ``(4) expand counseling services through qualified school 
        counselors, school psychologists, and school social workers;
            ``(5) use innovative approaches to increase children's 
        understanding of peer and family relationships, work and self, 
        decision making, or academic and career planning, or to improve 
        peer interaction;
            ``(6) provide counseling services in settings that meet the 
        range of needs of students;
            ``(7) include inservice training, including training for 
        teachers in appropriate identification and intervention 
        techniques for disciplining and teaching students at risk of 
        violent behavior, by school counselors, school psychologists, 
        and school social workers;
            ``(8) involve parents of participating students in the 
        design, implementation, and evaluation of a counseling program;
            ``(9) involve collaborative efforts with community groups, 
        social service agencies, or other public or private entities to 
        enhance the program;
            ``(10) evaluate annually the effectiveness and outcomes of 
        the counseling services and activities assisted under this 
        section;
            ``(11) ensure a team approach to school counseling in the 
        elementary and secondary schools of the local educational 
        agency by maintaining a scientifically based ratio of school 
        counselors, school social workers, and school psychologists to 
        students; and
            ``(12) ensure that school counselors, school psychologists, 
        or school social workers paid from funds made available under 
        this section spend a majority of their time at the school in 
        activities directly related to the counseling process.
    ``(c) Limit on Administration.--Not more than 3 percent of the 
amounts made available under this section in any fiscal year may be 
used for administrative costs to carry out this section.
    ``(d) Definitions.--For purposes of this section, the terms `school 
counselor', `school psychologist', and `school social worker', mean 
individuals qualified, licensed, or certified under State law to 
provide mental health counseling to children and adolescents.

``SEC. 10103. CHARACTER EDUCATION PROGRAM.

    ``(a) Program Authorized.--
            ``(1) In general.--The Secretary may use funds provided 
        under this part to award grants to States, local educational 
        agencies, or consortia of such educational agencies for the 
        design and implementation of character education programs which 
        incorporate the elements of character described in subsection 
        (c).
            ``(2) Duration.--Each grant under this section shall be 
        awarded for a period not to exceed 5 years, of which the 
        recipient may not use more than 1 year for planning and program 
        design.
    ``(b) Contracts Under Program.--
            ``(1) Evaluation.--Each State, local educational agency, or 
        consortia of such educational agencies awarded a grant under 
        this section may contract with outside sources, including 
        institutions of higher education and private and nonprofit 
        organizations, for purposes of evaluating its program and 
        measuring the success of the program toward fostering in 
        students the elements of character described in subsection (c).
            ``(2) Materials and program development.--Each State, local 
        educational agency, or consortia of such educational agencies 
        awarded a grant under this section may contract with outside 
        sources, including institutions of higher education and private 
        and nonprofit organizations, for assistance in developing 
        curriculum, materials, teacher training, and other activities 
        related to character education.
    ``(c) Elements of Character.--The elements of character described 
in this subsection are as follows:
            ``(1) Honesty.
            ``(2) Citizenship.
            ``(3) Courage.
            ``(4) Justice.
            ``(5) Respect.
            ``(6) Personal Responsibility.
            ``(7) Trustworthiness.
            ``(8) Any other elements deemed appropriate by the State, 
        local educational agency, or consortia of such educational 
        agencies receiving a grant under this paragraph.
    ``(d) Selection of Recipients.--
            ``(1) Criteria.--The Secretary shall select States, local 
        educational agencies, or consortia of such educational agencies 
        to receive grants under this section on the basis of the 
        quality of the applications submitted, taking into 
        consideration such factors as--
                    ``(A) the extent to which the proposed character 
                education program fosters in students the elements of 
                character described in subsection (c);
                    ``(B) the extent of parental, student, and 
                community involvement in the program; and
                    ``(C) the likelihood that the goals of the program 
                will be realistically achieved.
            ``(2) Diversity of projects.--The Secretary shall approve 
        applications for grants under this section in a manner which 
        ensures to the extent practicable that the character education 
        programs funded with such grants--
                    ``(A) serve an equitable geographic distribution 
                among the regions of the United States and among urban, 
                suburban, and rural areas; and
                    ``(B) serve schools which serve a high percentage 
                of minorities, Native Americans, students of limited 
                English proficiency, and disadvantaged students.

``SEC. 10104. SMALLER LEARNING COMMUNITIES WITHIN HIGH SCHOOLS.

    ``(a) In General.--The Secretary may use funds provided under this 
part to--
            ``(1) promote the creation of smaller learning communities 
        within high schools in which students may receive greater 
        individual attention and support, including the development and 
        implementation of scientifically based research strategies 
        described in subsection (b) to create such communities; and
            ``(2) develop and implement strategies to include parents, 
        business representatives, institutions of higher education, 
        community-based organizations, and other community members in 
        such communities.
    ``(b) Examples of Strategies to Create Smaller Learning 
Communities.--The strategies described in this subsection to create 
smaller learning communities within high schools may include:
            ``(1) The establishment of learning clusters, `houses', 
        magnet schools, or other approaches to creating schools within 
        schools.
            ``(2) The use of block scheduling.
            ``(3) The use of personal adult advocates, teacher-advisory 
        systems, and other mentoring strategies.
            ``(4) Strategies to reduce teaching loads.
            ``(5) Other innovations designed to increase student 
        academic achievement through the creation of a more 
        personalized high school experience for students.
    ``(c) Size of Communities.--In using funds under this section, the 
Secretary's goal shall be the creation of learning communities of not 
more than 600 students within high schools.

``SEC. 10105. GENERAL PROVISIONS.

    ``(a) Awards Made on Competitive Basis.--The Secretary may make 
awards under this part on the basis of competitions announced by the 
Secretary.
    ``(b) Special Rule.--The Secretary shall ensure that programs, 
projects, and activities supported under this part are designed so that 
the effectiveness of such programs, projects, and activities is readily 
ascertainable and based on scientifically based research.
    ``(c) Peer Review.--The Secretary shall use a peer review process 
in reviewing applications for assistance under this part, and may use 
funds appropriated under this part for the cost of such peer review.
    ``(d) Applications.--An applicant for an award under this part 
shall submit an application which--
            ``(1) establishes clear goals and objectives for its 
        project under this part which are based on scientifically based 
        research; and
            ``(2) describes the activities it will carry out in order 
        to meet the goals and objectives described in paragraph (1).
    ``(e) Evaluations.--A recipient of an award under this part shall--
            ``(1) evaluate the effectiveness of its project in 
        achieving the goals and objectives stated in its application; 
        and
            ``(2) report to the Secretary such information as may be 
        required, including evidence of its progress toward meeting the 
        such goals, to determine the project's effectiveness.
    ``(f) Dissemination of Evaluation Results.--The Secretary shall 
provide for the dissemination of the evaluations of projects funded 
under this part by making the evaluations publicly available upon 
request, and shall publish public notice that the evaluations are so 
available.
    ``(g) Matching Funds.--The Secretary may require recipients of 
awards under this part to provide matching funds from non-Federal 
sources.
    ``(h) Scientifically Based Research Defined.--In this part, the 
term `scientifically based research'--
            ``(1) means the application of rigorous, systematic, and 
        objective procedures to obtain valid knowledge relevant to 
        education activities and programs; and
            ``(2) shall include research which--
                    ``(A) employs systematic, empirical methods which 
                draw on observation or experiment,
                    ``(B) involves rigorous data analyses which are 
                adequate to test the stated hypotheses and justify the 
                general conclusions drawn,
                    ``(C) relies on measurements or observational 
                methods which 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.
    ``(i) Authorization of Appropriations.--For the purpose of carrying 
out this part, there are authorized to be appropriated $50,000,000 for 
fiscal year 2000 and $50,000,000 for each of the 5 succeeding fiscal 
years.''.

                         PART B--ARTS EDUCATION

SEC. 511. ARTS EDUCATION.

    Part D of title X of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 8091 et seq.) is amended to read as follows:

                        ``PART D--ARTS EDUCATION

``SEC. 10401. SUPPORT FOR ARTS EDUCATION.

    ``(a) Findings.--The Congress finds that--
            ``(1) every student can benefit from an education in the 
        arts;
            ``(2) a growing body of research indicates that education 
        in the arts may provide cognitive benefits and bolster academic 
        achievement, beginning at an early age and continuing through 
        school;
            ``(3) qualified arts teachers and sequential curriculum are 
        the basis and core for substantive arts education for students;
            ``(4) arts education programs should be grounded in 
        rigorous instruction and take their place within a structure of 
        direct accountability to parents, school officials, and the 
        community;
            ``(5) opportunities in the arts have enabled persons of all 
        ages with disabilities to participate more fully in school and 
        community activities; and
            ``(6) arts education is a valuable part of the elementary 
        and secondary school curriculum.
    ``(b) Purposes.--The purposes of this part are to--
            ``(1) support systemic education reform by strengthening 
        arts education as an integral part of the elementary and 
        secondary school curriculum; and
            ``(2) help ensure that all students can learn to 
        challenging State content standards and challenging State 
        student performance standards in the arts.
    ``(c) Eligible Recipients.--In order to carry out the purposes of 
this part, the Secretary is authorized to award grants to, or enter 
into contracts or cooperative agreements with--
            ``(1) States;
            ``(2) local educational agencies;
            ``(3) institutions of higher education;
            ``(4) museums and other cultural institutions; and
            ``(5) other public and private agencies, institutions, and 
        organizations.
    ``(d) Authorized Activities.--Funds under this part may be used 
for--
            ``(1) research on arts education;
            ``(2) planning, developing, acquiring, expanding, 
        improving, and disseminating model school-based arts education 
        programs;
            ``(3) the development of model State arts education 
        assessments based on State standards;
            ``(4) the development and implementation of curriculum 
        frameworks for arts education;
            ``(5) the development of model inservice professional 
        development programs for arts educators and other instructional 
        staff;
            ``(6) supporting collaborative activities with other 
        Federal agencies or institutions, arts educators, and 
        organizations representing the arts, including State and local 
        arts agencies involved in arts education;
            ``(7) supporting model projects and programs in the 
        performing arts for children and youth and programs which 
        assure the participation in mainstream settings in arts and 
        education programs of individuals with disabilities through 
        arrangements made with organizations such as the John F. 
        Kennedy Center for the Performing Arts and VSA arts;
            ``(8) supporting model projects and programs to integrate 
        arts education into the regular elementary and secondary school 
        curriculum; and
            ``(9) other activities that further the purposes of this 
        part.
    ``(e) Coordination and Consultation.--
            ``(1) In general.--A recipient of funds under this part 
        shall, to the extent possible, coordinate projects assisted 
        under this part with appropriate activities of public and 
        private cultural agencies, institutions, and organizations, 
        including museums, arts education associations, libraries, and 
        theaters.
            ``(2) Consultation.--In carrying out this part, the 
        Secretary shall consult with other Federal agencies or 
        institutions, arts educators (including professional arts 
        education associations), and organizations representing the 
        arts including State and local arts agencies involved in arts 
        education.
    ``(f) Authorization.--
            ``(1) In general.--For the purpose of carrying out this 
        part, there are authorized to be appropriated $11,500,000 for 
        fiscal year 2000 and such sums as may be necessary for each of 
        the 5 succeeding fiscal years.
            ``(2) Special rule.--Any entity receiving funds under this 
        part shall use such funds only to supplement and not to 
        supplant the amount of funds made available from non-Federal 
        sources for the activities assisted under this part.''.

                     PART C--PUBLIC CHARTER SCHOOLS

SEC. 521. PUBLIC CHARTER SCHOOLS.

    (a) Charter School Defined.--Section 10310(1)(H) (20 U.S.C. 
8066(1)(H)) is amended by inserting ``or in another nondiscriminatory 
manner consistent with State law,'' after ``lottery,''.
    (b) Authorization of Appropriations.--Section 10311 (20 U.S.C. 
8067) is amended--
            (1) by striking ``$100,000,000 for fiscal year 1999'' and 
        inserting ``$145,000,000 for fiscal year 2000''; and
            (2) by striking ``four'' and inserting ``5''.

                        PART D--CIVIC EDUCATION

SEC. 531. CIVIC EDUCATION.

    Part F of title X of the Elementary and Secondary Education Act of 
1965 (20 U.S.C. 8141 et seq.) is amended to read as follows:

                       ``PART F--CIVIC EDUCATION

``SEC. 10601. SHORT TITLE.

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

``SEC. 10602. PURPOSE.

    ``It is the purpose of this part--
            ``(1) to improve the quality of civics and government 
        education, by educating students about the history and 
        principles of the Constitution of the United States, including 
        the Bill of Rights; and
            ``(2) to foster civic competence and responsibility.

``SEC. 10603. GENERAL AUTHORITY.

    ``(a) Grants and Contracts.--The Secretary is authorized to award 
grants to or enter into contracts with the Center for Civic Education 
to carry out civic education activities under sections 10604.

``SEC. 10604. WE THE PEOPLE PROGRAM.

    ``(a) The Citizen and the Constitution.--
            ``(1) In general.--The Center for Civic Education shall use 
        funds awarded under section 10603(a)(1)(A) to carry out The 
        Citizen and the Constitution program in accordance with this 
        subsection.
            ``(2) Educational activities.--The Citizen and the 
        Constitution program--
                    ``(A) shall continue and expand the educational 
                activities of the `We the People . . . The Citizen and 
                the Constitution' program administered by the Center 
                for Civic Education;
                    ``(B) shall enhance student attainment of 
                challenging content standards in civics and government; 
                and
                    ``(C) shall provide--
                            ``(i) a course of instruction on the basic 
                        principles of our Nation's constitutional 
                        democracy and the history of the Constitution 
                        of the United States and the Bill of Rights;
                            ``(ii) at the request of a participating 
                        school, school and community simulated 
                        congressional hearings following the course of 
                        study;
                            ``(iii) an annual national competition of 
                        simulated congressional hearings for secondary 
                        school students who wish to participate in such 
                        a program;
                            ``(iv) advanced training of teachers about 
                        the Constitution of the United States and the 
                        political system the United States created;
                            ``(v) materials and methods of instruction, 
                        including teacher training, that utilize the 
                        latest advancements in educational technology; 
                        and
                            ``(vi) civic education materials and 
                        services to address specific problems such as 
                        the prevention of school violence and the abuse 
                        of drugs and alcohol.
            ``(3) Availability of program.--The education program 
        authorized under this subsection shall be made available to 
        public and private elementary and secondary schools, including 
        Bureau funded schools, in the 435 congressional districts, and 
        in the District of Columbia, the Commonwealth of Puerto Rico, 
        the United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
    ``(b) Project Citizen.--
            ``(1) In general.--The Center for Civic Education shall use 
        funds awarded under section 10603(a)(1)(A) to carry out The 
        Project Citizen program in accordance with this subsection.
            ``(2) Educational activities.--The Project Citizen 
        program--
                    ``(A) shall continue and expand the educational 
                activities of the `We the People . . . Project Citizen' 
                program administered by the Center for Civic Education;
                    ``(B) shall enhance student attainment of 
                challenging content standards in civics and government; 
                and
                    ``(C) shall provide--
                            ``(i) a course of instruction at the middle 
                        school level on the roles of State and local 
                        governments in the Federal system established 
                        by the Constitution of the United States;
                            ``(ii) optional school and community 
                        simulated State legislative hearings;
                            ``(iii) an annual national showcase or 
                        competition;
                            ``(iv) advanced training of teachers on the 
                        roles of State and local governments in the 
                        Federal system established by the Constitution 
                        of the United States;
                            ``(v) materials and methods of instruction, 
                        including teacher training, that utilize the 
                        latest advancements in educational technology; 
                        and
                            ``(vi) civic education materials and 
                        services to address specific problems such as 
                        the prevention of school violence and the abuse 
                        of drugs and alcohol.
            ``(3) Availability of program.--The education program 
        authorized under this subsection shall be made available to 
        public and private middle schools, including Bureau funded 
        schools, in the 50 States of the United States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the United States 
        Virgin Islands, Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands.
    ``(c) Definition of bureau funded school.--In this section the term 
`Bureau funded school' has the meaning given the term in section 1146 
of the Education Amendments of 1978.

``SEC. 10606. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out section 
10604, $9,850,000 for fiscal year 2000 and such sums as may be 
necessary for each of the fiscal years 2001 through 2005.

                      TITLE VI--GENERAL PROVISIONS

SEC. 601. GENERAL PROVISIONS.

    Title XIV of the Elementary and Secondary Education Act is amended 
to read as follows:

                         ``PART A--DEFINITIONS

``SEC. 14101. DEFINITIONS.

    ``Except as otherwise provided, for the purposes of this Act, the 
following terms have the following meanings:
            ``(1) Average daily attendance--
                    ``(A) Except as provided otherwise by State law or 
                this paragraph, the term `average daily attendance' 
                means--
                            ``(i) the aggregate number of days of 
                        attendance of all students during a school 
                        year; divided by
                            ``(ii) the number of days school is in 
                        session during such school year.
                    ``(B) The Secretary shall permit the conversion of 
                average daily membership (or other similar data) to 
                average daily attendance for local educational agencies 
                in States that provide State aid to local educational 
                agencies on the basis of average daily membership or 
                such other data.
                    ``(C) If the local educational agency in which a 
                child resides makes a tuition or other payment for the 
                free public education of the child in a school located 
                in another school district, the Secretary shall, for 
                purposes of this Act--
                            ``(i) consider the child to be in 
                        attendance at a school of the agency making 
                        such payment; and
                            ``(ii) not consider the child to be in 
                        attendance at a school of the agency receiving 
                        such payment.
                    ``(D) If a local educational agency makes a tuition 
                payment to a private school or to a public school of 
                another local educational agency for a child with 
                disabilities, as defined in section 602(3) of the 
                Individuals with Disabilities Education Act, the 
                Secretary shall, for the purposes of this Act, consider 
                such child to be in attendance at a school of the 
                agency making such payment.
            ``(2) Average per-pupil expenditure.--The term `average 
        per-pupil expenditure' means, in the case of a State or of the 
        United States--
                    ``(A) without regard to the source of funds--
                            ``(i) the aggregate current expenditures, 
                        during the third fiscal year preceding the 
                        fiscal year for which the determination is made 
                        (or, if satisfactory data for that year are not 
                        available, during the most recent preceding 
                        fiscal year for which satisfactory data are 
                        available) of all local educational agencies in 
                        the State or, in the case of the United States 
                        for all States (which, for the purpose of this 
                        paragraph, means the 50 States and the District 
                        of Columbia); plus
                            ``(ii) any direct current expenditures by 
                        the State for the operation of such agencies; 
                        divided by
                    ``(B) the aggregate number of children in average 
                daily attendance to whom such agencies provided free 
                public education during such preceding year.
            ``(3) Child.--The term `child' means any person within the 
        age limits for which the State provides free public education.
            ``(4) Child with disability.--The term `child with a 
        disability' means a child--
                    ``(A) with mental retardation, hearing impairments, 
                hearing impairments (including deafness), speech or 
                language impairments, visual impairments (including 
                blindness), serious emotional disturbance (hereinafter 
                referred to as `emotional disturbance'), orthopedic 
                impairments, autism, traumatic brain injury, other 
                health impairments, or specific learning disabilities; 
                and
                    ``(B) who, by reason thereof, needs special 
                education and related services.
            ``(5) Community-based organization.--The term `community-
        based organization' means a public or private nonprofit 
        organization of demonstrated effectiveness that--
                    ``(A) is representative of a community or 
                significant segments of a community; and
                    ``(B) provides educational or related services to 
                individuals in the community.
            ``(6) Consolidated local application.--The term 
        `consolidated local application' means an application submitted 
        by a local educational agency pursuant to section 14302.
            ``(7) Consolidated local plan.--The term `consolidated 
        local plan' means a plan submitted by a local educational 
        agency pursuant to section 14302.
            ``(8) Consolidated state application.--The term 
        `consolidated State application' means an application submitted 
        by a State educational agency pursuant to section 14302.
            ``(9) Consolidated state plan.--The term `consolidated 
        State plan' means a plan submitted by a State educational 
        agency pursuant to section 14302.
            ``(10) County.--The term `county' means one of the 
        divisions of a State used by the Secretary of Commerce in 
        compiling and reporting data regarding counties.
            ``(11) Covered program.--The term `covered program' means 
        each of the programs authorized by--
                    ``(A) part A of title I;
                    ``(B) part B of title I;
                    ``(C) part C of title I;
                    ``(D) part D of title I;
                    ``(E) title II (other than National activities);
                    ``(F) subpart 2 of part A of title III;
                    ``(G) part A title IV (other than section 4115(b));
                    ``(H) title VI;
                    ``(I) comprehensive school reform programs as 
                authorized under section 1502 and described on pages 
                96-99 of the Joint Explanatory Statement of the 
                Committee of Conference included in House Report 105-
                390 (Conference Report on the Departments of Labor, 
                Health and Human Services, and Education, and Related 
                Agencies Appropriations Act, 1998);
                    ``(K) part A of title VII;
                    ``(L) part C of title VII;
                    ``(M) part J of title X; and
                    ``(N) title XII.
            ``(12) Current expenditures.--The term `current 
        expenditures' means expenditures for free public education--
                    ``(A) including expenditures for administration, 
                instruction, attendance, pupil transportation services, 
                operation and maintenance of plant, fixed charges, and 
                net expenditures to cover deficits for food services 
                and student body activities; but
                    ``(B) not including expenditures for community 
                services, capital outlay, and debt service, or any 
                expenditures made from funds received under title I and 
                title VI.
            ``(13) Department.--The term `Department' means the 
        Department of Education.
            ``(14) Educational service agency.--The term `educational 
        service agency' means a regional public multiservice agency 
        authorized by State statute to develop, manage, and provide 
        services or programs to local educational agencies.
            ``(15) Elementary school.--The term `elementary school' 
        means a nonprofit institutional day or residential school, 
        including a public elementary charter school, that provides 
        elementary education, as determined under State law.
            ``(16) Family literacy services.--The term `family literacy 
        services' means services provided to participants on a 
        voluntary basis that are of sufficient intensity in terms of 
        hours, and of sufficient duration, to make sustainable changes 
        in a family, and that integrate all of the following 
        activities:
                    ``(A) Interactive literacy activities between 
                parents and their children.
                    ``(B) Training for parents regarding how to be the 
                primary teacher for their children and full partners in 
                the education of their children.
                    ``(C) Parent literacy training that leads to 
                economic self-sufficiency.
                    ``(D) An age-appropriate education to prepare 
                children for success in school and life experiences.
            ``(17) Free public education.--The term `free public 
        education' means education that is provided--
                    ``(A) at public expense, under public supervision 
                and direction, and without tuition charge; and
                    ``(B) as elementary or secondary school education 
                as determined under applicable State law, except that 
                such term does not include any education provided 
                beyond grade 12.
            ``(18) Gifted and talented.--The term `gifted and 
        talented', when used with respect to students, children or 
        youth, means students, children or youth who give evidence of 
        high performance capability in areas such as intellectual, 
        creative, artistic, or leadership capacity, or in specific 
        academic fields, and who require services or activities not 
        ordinarily provided by the school in order to fully develop 
        such capabilities.
            ``(19) Institution of higher education.--The term 
        `institution of higher education' has the meaning given that 
        term in section 101 of the Higher Education Act of 1965.
            ``(20) Local educational agency.--(A) The term `local 
        educational agency' means a public board of education or other 
        public authority legally constituted within a State for either 
        administrative control or direction of, or to perform a service 
        function for, public elementary or secondary schools in a city, 
        county, township, school district, or other political 
        subdivision of a State, or for such combination of school 
        districts or counties as are recognized in a State as an 
        administrative agency for its public elementary or secondary 
        schools.
            ``(B) The term includes any other public institution or 
        agency having administrative control and direction of a public 
        elementary or secondary school.
            ``(C) The term includes an elementary or secondary school 
        funded by the Bureau of Indian Affairs but only to the extent 
        that such inclusion makes such school eligible for programs for 
        which specific eligibility is not provided to such school in 
        another provision of law and such school does not have a 
        student population that is smaller than the student population 
        of the local educational agency receiving assistance under this 
        Act with the smallest student population, except that such 
        school shall not be subject to the jurisdiction of any State 
        educational agency other than the Bureau of Indian Affairs.
            ``(21) Mentoring.--The term `mentoring' means a program in 
        which an adult works with a child or youth on a 1-to-1 basis, 
        establishing a supportive relationship, providing academic 
        assistance, and introducing the child or youth to new 
        experiences that enhance the child or youth's ability to excel 
        in school and become a responsible citizen.
            ``(22) Other staff.--The term `other staff' means pupil 
        services personnel, librarians, career guidance and counseling 
        personnel, education aides, and other instructional and 
        administrative personnel.
            ``(23) Outlying area.--The term `outlying area' means the 
        United States Virgin Islands, Guam, American Samoa, and the 
        Commonwealth of the Northern Mariana Islands.
            ``(24) Parent.--The term `parent' includes a legal guardian 
        or other person standing in loco parentis.
            ``(25) Public telecommunication entity.--The term `public 
        telecommunication entity' has the same meaning given to such 
        term in section 397(12) of the Communications Act of 1934.
            ``(26) Pupil services personnel; pupil services.--(A) The 
        term `pupil services personnel' means school counselors, school 
        social workers, school psychologists, and other qualified 
        professional personnel involved in providing assessment, 
        diagnosis, counseling, educational, therapeutic, and other 
        necessary services (including related services as such term is 
        defined in section 602(22) of the Individuals with Disabilities 
        Education Act) as part of a comprehensive program to meet 
        student needs.
            ``(B) The term `pupil services' means the services provided 
        by pupil services personnel.
            ``(27) Scientifically based research.--The term 
        `scientifically based research'--
                    ``(A) means the application of rigorous, 
                systematic, and objective procedures to obtain valid 
                knowledge relevant to education activities and 
                programs; 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.
            ``(28) Secondary school.--The term `secondary school' means 
        a nonprofit institutional day or residential school, including 
        a public secondary charter school, that provides secondary 
        education, as determined under State law, except that such term 
        does not include any education beyond grade 12.
            ``(29) Secretary.--The term `Secretary' means the Secretary 
        of Education.
            ``(30) State.--The term `State' means each of the 50 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, and each of the outlying areas.
            ``(31) State educational agency.--The term `State 
        educational agency' means the agency primarily responsible for 
        the State supervision of public elementary and secondary 
        schools.
            ``(32) Technology.--The term `technology' means the latest 
        state-of-the-art technology products and services.

``SEC. 14102. APPLICABILITY OF THIS TITLE.

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

``SEC. 14103. APPLICABILITY TO BUREAU OF INDIAN AFFAIRS OPERATED 
              SCHOOLS.

    ``For purposes of any competitive program under this Act, a 
consortia of schools operated by the Bureau of Indian Affairs, a school 
operated under a contract or grant with the Bureau of Indian Affairs in 
consortia with another contract or grant school or tribal or community 
organization, or a Bureau of Indian Affairs school in consortia with an 
institution of higher education, a contract or grant school and tribal 
or community organization shall be given the same consideration as a 
local educational agency.

   ``PART B--FLEXIBILITY IN THE USE OF ADMINISTRATIVE AND OTHER FUNDS

``SEC. 14201. CONSOLIDATION OF STATE ADMINISTRATIVE FUNDS FOR 
              ELEMENTARY AND SECONDARY EDUCATION PROGRAMS.

    ``(a) Consolidation of Administrative Funds.--
            ``(1) In general.--A State educational agency may 
        consolidate the amounts specifically made available to such 
        agency for State administration under one or more of the 
        programs under paragraph (2) if such State educational agency 
        can demonstrate that the majority of such agency's resources 
        are derived from non-Federal sources.
            ``(2) Applicability.--This section applies to any program 
        under this Act under which funds are authorized to be used for 
        administration, and such other programs as the Secretary may 
        designate.
    ``(b) Use of funds.--
            ``(1) In general.--A State educational agency shall use the 
        amount available under this section for the administration of 
        the programs included in the consolidation under subsection 
        (a).
            ``(2) Additional uses.--A State educational agency may also 
        use funds available under this section for administrative 
        activities designed to enhance the effective and coordinated 
        use of funds under programs included in the consolidation under 
        subsection (a), such as--
                    ``(A) the coordination of such programs with other 
                Federal and non-Federal programs;
                    ``(B) the establishment and operation of peer-
                review mechanisms under this Act;
                    ``(C) the administration of this title;
                    ``(D) the dissemination of information regarding 
                model programs and practices;
                    ``(E) technical assistance under any program under 
                this Act;
                    ``(F) State level activities designed to carry out 
                this title;
                    ``(G) training personnel engaged in audit and other 
                monitoring activities; and
                    ``(H) implementation of the Cooperative Audit 
                Resolution and Oversight Initiative of the Department 
                of Education.
    ``(c) Records.--A State educational agency that consolidates 
administrative funds under this section shall not be required to keep 
separate records, by individual program, to account for costs relating 
to the administration of programs included in the consolidation under 
subsection (a).
    ``(d) Review.--To determine the effectiveness of State 
administration under this section, the Secretary may periodically 
review the performance of State educational agencies in using 
consolidated administrative funds under this section and take such 
steps as the Secretary finds appropriate to ensure the effectiveness of 
such administration.
    ``(e) Unused Administrative Funds.--If a State educational agency 
does not use all of the funds available to such agency under this 
section for administration, such agency may use such funds during the 
applicable period of availability as funds available under one or more 
programs included in the consolidation under subsection (a).

``SEC. 14202. SINGLE LOCAL EDUCATIONAL AGENCY STATES.

    ``A State educational agency that also serves as a local 
educational agency, in such agency's applications or plans under this 
Act, shall describe how such agency will eliminate duplication in the 
conduct of administrative functions.

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

    ``(a) General Authority.--In accordance with regulations of the 
Secretary and for any fiscal year, a local educational agency, with the 
approval of its State educational agency, may consolidate and use for 
the administration of one or more programs under this Act (or such 
other programs as the Secretary shall designate) not more than the 
percentage, established in each such program, of the total available 
for the local educational agency under such programs.
    ``(b) State Procedures.--Within one-year from the date of enactment 
of the Education OPTIONS Act, a State educational agency shall, in 
collaboration with local educational agencies in the State, establish 
procedures for responding to requests from local educational agencies 
to consolidate administrative funds under subsection (a) and for 
establishing limitations on the amount of funds under such programs 
that may be used for administration on a consolidated basis.
    ``(c) Conditions.--A local educational agency that consolidates 
administrative funds under this section for any fiscal year shall not 
use any other funds under the programs included in the consolidation 
for administration for that fiscal year.
    ``(d) Uses of Administrative Funds.--A local educational agency 
that consolidates administrative funds under this section may use such 
consolidated funds for the administration of such programs and for 
uses, at the school district and school levels, comparable to those 
described in section 14201(b)(2).
    ``(e) Records.--A local educational agency that consolidates 
administrative funds under this section shall not be required to keep 
separate records, by individual program, to account for costs relating 
to the administration of such programs included in the consolidation.

``SEC. 14205. CONSOLIDATED SET-ASIDE FOR DEPARTMENT OF THE INTERIOR 
              FUNDS.

    ``(a) General Authority.--
            ``(1) Transfer.--The Secretary shall transfer to the 
        Department of the Interior, as a consolidated amount for 
        covered programs, the Indian education programs under part A of 
        title IX of this Act, and the education for homeless children 
        and youth program under subtitle B of title VII of the Stewart 
        B. McKinney Homeless Assistance Act, the amounts allotted to 
        the Department of the Interior under those programs.
            ``(2) Agreement.--(A) The Secretary and the Secretary of 
        the Interior shall enter into an agreement, consistent with the 
        requirements of the programs specified in paragraph (1), for 
        the distribution and use of those program funds under terms 
        that the Secretary determines best meet the purposes of those 
        programs.
            ``(B) The agreement shall--
                    ``(i) set forth the plans of the Secretary of the 
                Interior for the use of the amount transferred and the 
                performance measures to assess program effectiveness, 
                including measurable goals and objectives; and
                    ``(ii) be developed in consultation with Indian 
                tribes.
    ``(b) Administration.--The Department of the Interior may use not 
more than 1.5 percent of the funds consolidated under this section for 
such department's costs related to the administration of the funds 
transferred under this section.

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

``SEC. 14301. PURPOSE.

    ``The purposes of this part are to improve teaching and learning 
through greater coordination between programs and to provide greater 
flexibility to State and local authorities by allowing the 
consolidation of State and local plans, applications, and reporting.

``SEC. 14302. OPTIONAL CONSOLIDATED STATE PLANS OR APPLICATIONS.

    ``(a) General Authority.--
            ``(1) Simplification.--In order to simplify application 
        requirements and reduce the burden for State educational 
        agencies under this Act, the Secretary, in accordance with 
        subsection (b), shall establish procedures and criteria under 
        which a State educational agency may submit a consolidated 
        State plan or a consolidated State application meeting the 
        requirements of this section for--
                    ``(A) any programs under this Act in which the 
                State participates; and
                    ``(B) such other programs as the Secretary may 
                designate.
            ``(2) Consolidated applications and plans.--A State 
        educational agency that submits a consolidated State plan or a 
        consolidated State application under this section shall not be 
        required to submit a separate State plan or application for a 
        program included in the consolidated State plan or application.
    ``(b) Collaboration.--
            ``(1) In general.--In establishing criteria and procedures 
        under this section, the Secretary shall collaborate with State 
        educational agencies and, as appropriate, with other State 
        agencies, local educational agencies, public and private 
        nonprofit agencies, organizations, and institutions, private 
        schools, and representatives of parents, students, and 
        teachers.
            ``(2) Contents.--Through the collaborative process 
        described in subsection (b)(1) of this section, the Secretary 
        shall establish, for each program under the Act to which this 
        section applies, the descriptions, information, assurances, and 
        other material required to be included in a consolidated State 
        plan or consolidated State application.
            ``(3) Necessary materials.--The Secretary shall require 
        only descriptions, information, assurances, and other materials 
        that are absolutely necessary for the consideration of the 
        consolidated State plan or consolidated State application.

``SEC. 14303. CONSOLIDATED REPORTING.

    ``In order to simplify reporting requirements and reduce reporting 
burdens, the Secretary shall establish procedures and criteria under 
which a State educational agency may submit a consolidated State annual 
report. Such report shall contain information about the programs 
included in the report, including the State's performance under those 
programs, and other matters as the Secretary determines, such as 
monitoring activities. Such a report shall take the place of separate 
individual annual reports for the programs subject to it.

``SEC. 14304. GENERAL APPLICABILITY OF STATE EDUCATIONAL AGENCY 
              ASSURANCES.

    ``(a) Assurances.--A State educational agency that submits a 
consolidated State plan or consolidated State application under this 
Act, whether separately or under section 14302, shall have on file with 
the Secretary a single set of assurances, applicable to each program 
for which such plan or application is submitted, that provides that--
            ``(1) each such program will be administered in accordance 
        with all applicable statutes, regulations, program plans, and 
        applications;
            ``(2)(A) the control of funds provided under each such 
        program and title to property acquired with program funds will 
        be in a public agency, in a nonprofit private agency, 
        institution, or organization, or in an Indian tribe if the law 
        authorizing the program provides for assistance to such 
        entities; and
            ``(B) the public agency, nonprofit private agency, 
        institution, or organization, or Indian tribe will administer 
        such funds and property to the extent required by the 
        authorizing law;
            ``(3) the State will adopt and use proper methods of 
        administering each such program, including--
                    ``(A) the enforcement of any obligations imposed by 
                law on agencies, institutions, organizations, and other 
                recipients responsible for carrying out each program;
                    ``(B) the correction of deficiencies in program 
                operations that are identified through audits, 
                monitoring, or evaluation; and
                    ``(C) the adoption of written procedures for the 
                receipt and resolution of complaints alleging 
                violations of law in the administration of such 
                programs;
            ``(4) the State will cooperate in carrying out any 
        evaluation of each such program conducted by or for the 
        Secretary or other Federal officials;
            ``(5) the State will use such fiscal control and fund 
        accounting procedures as will ensure proper disbursement of, 
        and accounting for, Federal funds paid to the State under each 
        such program;
            ``(6) the State will--
                    ``(A) make reports to the Secretary as may be 
                necessary to enable the Secretary to perform the 
                Secretary's duties under each such program; and
                    ``(B) maintain such records, provide such 
                information to the Secretary, and afford access to the 
                records as the Secretary may find necessary to carry 
                out the Secretary's duties; and
            ``(7) before the plan or application was submitted to the 
        Secretary, the State has afforded a reasonable opportunity for 
        public comment on the plan or application and has considered 
        such comment.
    ``(b) GEPA Provision.--Section 441 of the General Education 
Provisions Act shall not apply to programs under this Act.

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

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

``SEC. 14306. OTHER GENERAL ASSURANCES.

    ``(a) Assurances.--Any applicant other than a State educational 
agency that submits a plan or application under this Act, shall have on 
file with the State educational agency a single set of assurances, 
applicable to each program for which a plan or application is 
submitted, that provides that--
            ``(1) each such program will be administered in accordance 
        with all applicable statutes, regulations, program plans, and 
        applications;
            ``(2)(A) the control of funds provided under each such 
        program and title to property acquired with program funds will 
        be in a public agency or in a nonprofit private agency, 
        institution, organization, or Indian tribe, if the law 
        authorizing the program provides for assistance to such 
        entities; and
                    ``(B) the public agency, nonprofit private agency, 
                institution, or organization, or Indian tribe will 
                administer such funds and property to the extent 
                required by the authorizing statutes;
            ``(3) the applicant will adopt and use proper methods of 
        administering each such program, including--
                    ``(A) the enforcement of any obligations imposed by 
                law on agencies, institutions, organizations, and other 
                recipients responsible for carrying out each program; 
                and
                    ``(B) the correction of deficiencies in program 
                operations that are identified through audits, 
                monitoring, or evaluation;
            ``(4) the applicant will cooperate in carrying out any 
        evaluation of each such program conducted by or for the State 
        educational agency, the Secretary or other Federal officials;
            ``(5) the applicant will use such fiscal control and fund 
        accounting procedures as will ensure proper disbursement of, 
        and accounting for, Federal funds paid to such applicant under 
        each such program;
            ``(6) the applicant will--
                    ``(A) make reports to the State educational agency 
                and the Secretary as may be necessary to enable such 
                agency and the Secretary to perform their duties under 
                each such program; and
                    ``(B) maintain such records, provide such 
                information, and afford access to the records as the 
                State educational agency or the Secretary may find 
                necessary to carry out the State educational agency's 
                or the Secretary's duties; and
            ``(7) before the application was submitted, the applicant 
        afforded a reasonable opportunity for public comment on the 
        application and has considered such comment.
    ``(b) GEPA Provision.--Section 442 of the General Education 
Provisions Act does not apply to programs under this Act.

                           ``PART D--WAIVERS

``SEC. 14401. WAIVERS OF STATUTORY AND REGULATORY REQUIREMENTS.

    ``(a) In General.--Except as provided in subsection (c), the 
Secretary may waive any statutory or regulatory requirement of this Act 
or the Carl D. Perkins Vocational and Technical Education Act of 1998 
for a State educational agency, local educational agency, Indian tribe, 
or school through a local educational agency, that--
            ``(1) receives funds under a program authorized by this 
        Act; and
            ``(2) requests a waiver under subsection (b).
    ``(b) Request for Waiver.--
            ``(1) In general.--A State educational agency, local 
        educational agency, or Indian tribe which desires a waiver 
        shall submit a waiver application to the Secretary that--
                    ``(A) indicates each Federal program affected and 
                each statutory or regulatory requirement requested to 
                be waived;
                    ``(B) describes the purpose and overall expected 
                results of waiving each such requirement;
                    ``(C) describes, for each school year, specific, 
                measurable, educational goals for the State educational 
                agency and for each local educational agency, Indian 
                tribe, or school that would be affected by the wavier;
                    ``(D) explains why the waiver will assist the State 
                educational agency and each affected local educational 
                agency, Indian tribe, or school in reaching such goals.
            ``(2) Additional information.--Such requests--
                    ``(A) may provide for waivers of requirements 
                applicable to State educational agencies, local 
                educational agencies, Indian tribes, and schools; and
                    ``(B) shall be developed and submitted--
                            ``(i)(I) by local educational agencies (on 
                        behalf of such agencies and schools) to State 
                        educational agencies; and
                            ``(II) by State educational agencies (on 
                        behalf of, and based upon the requests of, 
                        local educational agencies) to the Secretary; 
                        or
                            ``(ii) by Indian tribes (on behalf of 
                        schools operated by such tribes) to the 
                        Secretary.
            ``(3) General requirements.--
                    ``(A) In the case of a waiver request submitted by 
                a State educational agency acting in its own behalf, 
                the State educational agency shall--
                            ``(i) provide all interested local 
                        educational agencies in the State with notice 
                        and a reasonable opportunity to comment on the 
                        request;
                            ``(ii) submit the comments to the 
                        Secretary; and
                            ``(iii) provide notice and information to 
                        the public regarding the waiver request in the 
                        manner that the applying agency customarily 
                        provides similar notices and information to the 
                        public.
                    ``(B) In the case of a waiver request submitted by 
                a local educational agency that receives funds under 
                this Act--
                            ``(i) such request shall be reviewed by the 
                        State educational agency and be accompanied by 
                        the comments, if any, of such State educational 
                        agency; and
                            ``(ii) notice and information regarding the 
                        waiver request shall be provided to the public 
                        by the agency requesting the waiver in the 
                        manner that such agency customarily provides 
                        similar notices and information to the public.
    ``(c) Restrictions.--The Secretary shall not waive under this 
section any statutory or regulatory requirements relating to--
            ``(1) the allocation or distribution of funds to States, 
        local educational agencies, or other recipients of funds under 
        this Act;
            ``(2) maintenance of effort;
            ``(3) comparability of services;
            ``(4) use of Federal funds to supplement, not supplant, 
        non-Federal funds;
            ``(5) equitable participation of private school students 
        and teachers;
            ``(6) parental participation and involvement;
            ``(7) applicable civil rights requirements;
            ``(8) the requirement for a charter school under part C of 
        title X; or
            ``(9) the prohibitions regarding--
                    ``(A) State aid in section 14502;
                    ``(B) use of funds for religious worship or 
                instruction in section 14507; and
                    ``(C) activities in section 14513.
    ``(d) Duration and Extension of Waiver.--
            ``(1) In general.--Except as provided in paragraph (2), the 
        duration of a waiver approved by the Secretary under this 
        section may be for a period not to exceed 5 years.
            ``(2) Extension.--The Secretary may extend the period 
        described in paragraph (1) if the Secretary determines that--
                    ``(A) the waiver has been effective in enabling the 
                State or affected recipients to carry out the 
                activities for which the waiver was requested and the 
                waiver has contributed to improved student performance; 
                and
                    ``(B) such extension is in the public interest.
    ``(e) Reports.--
            ``(1) Local waiver.--A local educational agency that 
        receives a waiver under this section shall at the end of the 
        second year for which a waiver is received under this section, 
        and each subsequent year, submit a report to the State 
        educational agency that--
                    ``(A) describes the uses of such waiver by such 
                agency or by schools;
                    ``(B) describes how schools continued to provide 
                assistance to the same populations served by the 
                programs for which waivers are requested; and
                    ``(A) evaluates the progress of such agency and of 
                schools in improving the quality of instruction or the 
                academic performance of students.
            ``(2) State waiver.--A State educational agency that 
        receives reports required under paragraph (1) shall annually 
        submit a report to the Secretary that is based on such reports 
        and contains such information as the Secretary may require.
            ``(3) Indian tribe waiver.--An Indian tribe that receives a 
        waiver under this section shall annually submit a report to the 
        Secretary that--
                    ``(A) describes the uses of such waiver by schools 
                operated by such tribe; and
                    ``(B) evaluates the progress of such schools in 
                improving the quality of instruction or the academic 
                performance of students.
            ``(4) Report to congress.--Beginning in fiscal year 2001 
        and each subsequent year, the Secretary shall submit to 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--
                    ``(A) summarizing the uses of waivers by State 
                educational agencies, local educational agencies, 
                Indian tribes, and schools; and
                    ``(B) describing whether such waivers--
                            ``(i) increased the quality of instruction 
                        to students; or
                            ``(ii) improved the academic performance of 
                        students.
    ``(f) Termination of Waivers.--The Secretary shall terminate a 
waiver under this section if the Secretary determines, after notice and 
an opportunity for a hearing, that the performance of the State or 
other recipient affected by the waiver has been inadequate to justify a 
continuation of the waiver or if the waiver is no longer necessary to 
achieve its original purposes.
    ``(g) Publication.--A notice of the Secretary's decision to grant 
each waiver under subsection (a) shall be published in the Federal 
Register and the Secretary shall provide for the dissemination of such 
notice to State educational agencies, interested parties, including 
educators, parents, students, advocacy and civil rights organizations, 
and the public.

                      ``PART E--UNIFORM PROVISIONS

``SEC. 14501. MAINTENANCE OF EFFORT.

    ``(a) In General.--A local educational agency may receive funds 
under a covered program for any fiscal year only if the State 
educational agency finds that either the combined fiscal effort per 
student or the aggregate expenditures of such agency and the State with 
respect to the provision of free public education by such agency for 
the preceding fiscal year was not less than 90 percent of such combined 
fiscal effort or aggregate expenditures for the second preceding fiscal 
year.
    ``(b) Reduction in Case of Failure To Meet.--
            ``(1) In general.--The State educational agency shall 
        reduce the amount of the allocation of funds under a covered 
        program in any fiscal year in the exact proportion to which a 
        local educational agency fails to meet the requirement of 
        subsection (a) of this section by falling below 90 percent of 
        both the combined fiscal effort per student and aggregate 
        expenditures (using the measure most favorable to such local 
        agency).
            ``(2) Special rule.--No such lesser amount shall be used 
        for computing the effort required under subsection (a) of this 
        section for subsequent years.
    ``(c) Waiver.--The Secretary may waive the requirements of this 
section if the Secretary determines that such a waiver would be 
equitable due to--
            ``(1) exceptional or uncontrollable circumstances such as a 
        natural disaster; or
            ``(2) a precipitous decline in the financial resources of 
        the local educational agency.

``SEC. 14502. PROHIBITION REGARDING STATE AID.

    ``A State shall not take into consideration payments under this Act 
(other than under title VIII) in determining the eligibility of any 
local educational agency in such State for State aid, or the amount of 
State aid, with respect to free public education of children.

``SEC. 14503. PARTICIPATION BY PRIVATE SCHOOL CHILDREN AND TEACHERS.

    ``(a) Private School Participation.--
            ``(1) In general.--Except as otherwise provided in this 
        Act, to the extent consistent with the number of eligible 
        children in areas served by a State educational agency, local 
        educational agency, educational service agency, consortium of 
        such agencies, or another entity receiving financial assistance 
        under a program specified in subsection (b), who are enrolled 
        in private elementary and secondary schools in areas served by 
        such agency, consortium or entity, such agency, consortium or 
        entity shall, after timely and meaningful consultation with 
        appropriate private school officials, provide such children and 
        their teachers or other educational personnel, on an equitable 
        basis, special educational services or other benefits that 
        address their needs under such program.
            ``(2) Secular, neutral, and nonideological services or 
        benefits.--Educational services or other benefits, including 
        materials and equipment, provided under this section, shall be 
        secular, neutral, and nonideological.
            ``(3) Special rule.--Educational services and other 
        benefits provided under this section for such private school 
        children, teachers, and other educational personnel shall be 
        equitable in comparison to services and other benefits for 
        public school children, teachers, and other educational 
        personnel participating in such program and shall be provided 
        in a timely manner.
            ``(4) Expenditures.--Expenditures for educational services 
        and other benefits provided under this section to eligible 
        private school children, their teachers, and other educational 
        personnel serving such children shall be equal, taking into 
        account the number and educational needs of the children to be 
        served, to the expenditures for participating public school 
        children.
            ``(5) Provision of services.--Such agency, consortium or 
        entity described in subsection (a)(1) of this section may 
        provide such services directly or through contracts with public 
        and private agencies, organizations, and institutions.
    ``(b) Applicability.--
            ``(1) In general.--This section applies to programs under--
                    ``(A) part C of title I;
                    ``(B) title II;
                    ``(C) title III;
                    ``(D) title IV; and
                    ``(E) title VII.
            ``(2) Definition.--For the purposes of this section, the 
        term `eligible children' means children eligible for services 
        under a program described in paragraph (1).
    ``(c) Consultation.--
            ``(1) In general.--To ensure timely and meaningful 
        consultation, a State educational agency, local educational 
        agency, educational service agency, consortium of such agencies 
        or entity shall consult with appropriate private school 
        officials during the design and development of the programs 
        under this Act, on issues such as--
                    ``(A) how the children's needs will be identified;
                    ``(B) what services will be offered;
                    ``(C) how, where, and by whom the services will be 
                provided;
                    ``(D) how the services will be assessed and how the 
                results of the assessment will be used to improve such 
                services;
                    ``(E) the size and scope of the equitable services 
                to be provided to the eligible private school children, 
                teachers, and other educational personnel and the 
                amount of funds available for such services; and
                    ``(F) how and when the agency, consortium, or 
                entity will make decisions about the delivery of 
                services, 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.
            ``(2) Disagreement.--If the agency, consortium or entity 
        disagrees with the views of the private school officials on the 
        provision of services through a contract, the agency, 
        consortium, or entity 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.
            ``(3) Timing.--Such consultation shall occur before the 
        agency, consortium, or entity makes any decision that affects 
        the opportunities of eligible private school children, 
        teachers, and other educational personnel to participate in 
        programs under this Act, and shall continue throughout the 
        implementation and assessment of activities under this section.
            ``(4) Discussion required.--Such consultation shall include 
        a discussion of service delivery mechanisms that the agency, 
        consortium, or entity could use to provide equitable services 
        to eligible private school children, teachers, administrators, 
        and other staff.
    ``(d) Public Control of Funds.--
            ``(1) In general.--The control of funds used to provide 
        services under this section, and title to materials, equipment, 
        and property purchased with such funds, shall be in a public 
        agency for the uses and purposes provided in this Act, and a 
        public agency shall administer such funds and property.
            ``(2) Provision of services.--
                    ``(A) The provision of services under this section 
                shall be provided--
                            ``(i) by employees of a public agency; or
                            ``(ii) through contract by such public 
                        agency with an individual, association, agency, 
                        organization, or other entity.
                    ``(B) In the provision of such services, such 
                employee, person, association, agency, organization or 
                other entity shall be independent of such private 
                school and of any religious organization, and such 
                employment or contract shall be under the control and 
                supervision of such public agency.
                    ``(C) Funds used to provide services under this 
                section shall not be commingled with non-Federal funds.

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

    ``If, by reason of any provision of law, a State educational 
agency, local educational agency, educational service agency, 
consortium, or other entity of such agencies, is prohibited from 
providing for the participation in programs of children enrolled in, or 
teachers or other educational personnel from, private elementary and 
secondary schools, on an equitable basis, or if the Secretary 
determines that such agency consortium or entity has substantially 
failed or is unwilling to provide for such participation, as required 
by section 14503, the Secretary shall--
            ``(1) waive the requirements of that section for such 
        agency, consortium, or entity;
            ``(2) arrange for the provision of equitable services to 
        such children, teachers, or other educational personnel through 
        arrangements that shall be subject to the requirements of this 
        section and of sections 14503, 14505, and 14506; and
            ``(3) in making the determination, consider one or more 
        factors, including the quality, size, scope, location of the 
        program and the opportunity of private school children, 
        teachers, and other educational personnel to participate.

``SEC. 14505. COMPLAINT PROCESS FOR PARTICIPATION OF PRIVATE SCHOOL 
              CHILDREN.

    ``(a) Procedures for Complaints.--The Secretary shall develop and 
implement written procedures for receiving, investigating, and 
resolving complaints from parents, teachers, or other individuals and 
organizations concerning violations of section 14503 by a State 
educational agency, local educational agency, educational service 
agency, consortium of such agencies or entity. Such individual or 
organization shall submit such complaint to the State educational 
agency for a written resolution by the State educational agency within 
a reasonable period of time.
    ``(b) Appeals to Secretary.--Such resolution may be appealed by an 
interested party to the Secretary not later than 30 days after the 
State educational agency resolves the complaint or fails to resolve the 
complaint within a reasonable period of time. Such appeal shall be 
accompanied by a copy of the State educational agency's resolution, and 
a complete statement of the reasons supporting the appeal. The 
Secretary shall investigate and resolve each such appeal not later than 
120 days after receipt of the appeal.

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

    ``(a) Review.--
            ``(1) In general.--
                    ``(A) The Secretary shall not take any final action 
                under section 14504 until the State educational agency, 
                local educational agency, educational service agency, 
                consortium of such agencies or entity affected by such 
                action has had an opportunity, for not less than 45 
                days after receiving written notice thereof, to submit 
                written objections and to appear before the Secretary 
                to show cause why that action should not be taken.
                    ``(B) Pending final resolution of any investigation 
                or complaint that could result in a determination under 
                this section, the Secretary may withhold from the 
                allocation of the affected State or local educational 
                agency the amount estimated by the Secretary to be 
                necessary to pay the cost of those services.
            ``(2) Petition for review.--
                    ``(A) If such affected agency consortium or entity 
                is dissatisfied with the Secretary's final action after 
                a proceeding under paragraph (1), such agency 
                consortium or entity may, within 60 days after notice 
                of such action, file with the United States court of 
                appeals for the circuit in which such State is located 
                a petition for review of that action.
                    ``(B) A copy of the petition shall be forthwith 
                transmitted by the clerk of the court to the Secretary.
                    ``(C) The Secretary upon receipt of the copy of the 
                petition shall file in the court the record of the 
                proceedings on which the Secretary based this action, 
                as provided in section 2112 of title 28, United States 
                Code.
            ``(3) Findings of fact.--
                    ``(A) The findings of fact by the Secretary, if 
                supported by substantial evidence, shall be conclusive, 
                but the court, for good cause shown, may remand the 
                case to the Secretary to take further evidence and the 
                Secretary may then make new or modified findings of 
                fact and may modify the Secretary's previous action, 
                and shall file in the court the record of the further 
                proceedings.
                    ``(B) Such new or modified findings of fact shall 
                likewise be conclusive if supported by substantial 
                evidence.
            ``(4) Jurisdiction.--
                    ``(A) Upon the filing of such petition, the court 
                shall have jurisdiction to affirm the action of the 
                Secretary or to set such action aside, in whole or in 
                part.
                    ``(B) The judgment of the court shall be subject to 
                review by the Supreme Court of the United States upon 
                certiorari or certification as provided in section 1254 
                of title 28, United States Code.
    ``(b) Determination.--Any determination by the Secretary under this 
section shall continue in effect until the Secretary determines, in 
consultation with such agency, consortium or entity and representatives 
of the affected private school children, teachers, or other educational 
personnel that there will no longer be any failure or inability on the 
part of such agency or consortium to meet the applicable requirements 
of section 14503 or any other provision of this Act.
    ``(c) Payment From State allotment.--When the Secretary arranges 
for services pursuant to this section, the Secretary shall, after 
consultation with the appropriate public and private school officials, 
pay the cost of such services, including the administrative costs of 
arranging for those services, from the appropriate allocation or 
allocations under this Act.
    ``(d) Prior Determination.--Any by-pass determination by the 
Secretary under this Act as in effect on the day preceding the date of 
enactment of the Education OPTIONS Act shall remain in effect to the 
extent the Secretary determines that such determination is consistent 
with the purpose of this section.

``SEC. 14507. PROHIBITION AGAINST FUNDS FOR RELIGIOUS WORSHIP OR 
              INSTRUCTION.

    ``Nothing contained in this Act shall be construed to authorize the 
making of any payment under this Act for religious worship or 
instruction.

``SEC. 14508. APPLICABILITY TO HOME SCHOOLS.

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

``SEC. 14509. GENERAL PROVISION REGARDING NONRECIPIENT NONPUBLIC 
              SCHOOLS.

    ``Nothing in this Act or any other Act administered by the 
Department 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 or any other Act administered by the 
Department.

``SEC. 14510. SCHOOL PRAYER.

    ``Notwithstanding any provision of law, no funds made available 
through the Department of Education under this Act, or any other Act, 
shall be available to any State or local educational agency which has a 
policy of denying or which effectively prevents participation in, 
constitutionally protected prayer in public schools by individuals on a 
voluntary basis. Neither the United States nor any State nor any local 
educational agency shall require any person to participate in prayer or 
influence the form or content of any constitutionally protected prayer 
in such public schools.

``SEC. 14511. MEMORIALS AND MEMORIAL SERVICES; RULE OF CONSTRUCTION; 
              AND ATTORNEY FEES.

    ``(a) Findings.--Congress finds the following:
            ``(1) The saying of a prayer, the reading of a scripture, 
        or the performance of religious music, as part of a memorial 
        service that is held on the campus of a public elementary or 
        secondary school in order to honor the memory of any person 
        slain on that campus is not objectionable under this Act.
            ``(2) The design and construction of any memorial which 
        includes religious symbols, motifs, or sayings that is placed 
        on the campus of a public elementary or secondary school in 
        order to honor the memory of any person slain on that campus is 
        not objectionable under this Act.
    ``(b) Rule of Construction.--
            ``(1) Payment.--Nothing contained in this Act shall be 
        construed to authorize the making of any payment under this Act 
        for religious worship, instruction, or the construction of any 
        religious memorial.
            ``(2) Memorial service.--This Act shall not be construed to 
        bar--
                    ``(A) the saying of a prayer;
                    ``(B) the reading of a scripture;
                    ``(C) the performance of religious music; or
                    ``(D) the design or construction of any memorial 
                which includes religious symbols, motifs, or sayings;
        as part of a memorial service held or a memorial placed, as the 
        case may be, on the campus of a public elementary or secondary 
        school in order to honor the memory of any person slain on that 
        campus.

``SEC. 14512. ATTORNEYS FEES.

    ``Notwithstanding any other provision of Federal law, a local 
educational agency or public elementary or secondary school may use not 
more than 20 percent of its administrative funds from any program under 
this Act for payment of attorneys fees and related legal services in 
the defense of any legal action, brought against a local educational 
agency, public elementary or secondary school, or agent of any of such 
entities, claiming such agency, school, or agent violated the 
constitutional prohibition against the establishment of religion by 
permitting, facilitating, or accommodating--
            ``(1) a student's religious expression; or
            ``(2) the design or construction of any memorial which 
        includes religious symbols, motifs, or saying as part of a 
        memorial placed on the campus of a public elementary or 
        secondary school in order to honor the memory of a person slain 
        on that campus.

``SEC. 14513. GENERAL PROHIBITIONS.

    ``(a) Prohibition.--None of the funds authorized under this Act 
shall be used--
            ``(1) to develop or distribute materials, or operate 
        programs or courses of instruction directed at youth that are 
        designed to promote or encourage, sexual activity, whether 
        homosexual or heterosexual;
            ``(2) to distribute or to aid in the distribution by any 
        organization of legally obscene materials to minors on school 
        grounds;
            ``(3) to provide sex education or HIV prevention education 
        in schools unless such instruction is age appropriate and 
        emphasizes the health benefits of abstinence; or
            ``(4) to operate a program of contraceptive distribution in 
        schools.
    ``(b) Local control.--Nothing in this section shall be construed 
to--
            ``(1) authorize an officer or employee of the Federal 
        Government to mandate, direct, review, or control a State, 
        local educational agency, or schools' instructional content, 
        curriculum, and related activities;
            ``(2) limit the application of the General Education 
        Provisions Act (20 U.S.C.A. 1221 et seq.);
            ``(3) require the distribution of scientifically or 
        medically false or inaccurate materials or to prohibit the 
        distribution of scientifically or medically true or accurate 
        materials; or
            ``(4) create any legally enforceable right.

``SEC. 14514. PROHIBITION ON FEDERAL MANDATES, DIRECTION, AND CONTROL.

    ``Nothing in this Act shall be construed to authorize an officer or 
employee of the Federal Government to mandate, direct, or control a 
State, local educational agency, or school's curriculum, program of 
instruction, or allocation of State or local resources, or mandate a 
State or any subdivision thereof to spend any funds or incur any costs 
not paid for under this Act.

``SEC. 14515. RULEMAKING.

    ``The Secretary shall issue regulations under this Act only to the 
extent that such regulations are necessary to ensure that there is 
compliance with the specific requirements and assurances required by 
this Act.

``SEC. 14516. REPORT.

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

``SEC. 14517. REQUIRED APPROVAL OR CERTIFICATION PROHIBITED.

    ``(a) In General.--Notwithstanding any other provision of Federal 
law, no State shall be required to have content standards or student 
performance standards approved or certified by the Federal Government, 
in order to receive assistance under this Act.
    ``(b) Construction.--Nothing in this section shall be construed to 
affect requirements under title I of this Act.

``SEC. 14518. PROHIBITION ON ENDORSEMENT OF CURRICULUM.

    ``Notwithstanding any other prohibition of Federal law, no funds 
provided to the Department of Education or to any applicable program 
may be used by the Department to endorse, approve, or sanction any 
curriculum designed to be used in an elementary or secondary school.

                    ``PART F--SENSE OF THE CONGRESS

``SEC. 14614. REDUCING THE READING DEFICIT.

    ``(a) Findings.--The ability to read the English language is the 
cornerstone of academic success. The 1998 National Assessment of 
Educational Progress (NAEP) found that 69 percent of 4th grade students 
are reading below the proficient level. The National Institute of Child 
Health and Human Development (NICHD) has conducted extensive scientific 
research on reading instruction for more than 34 years at a cost of 
more than two hundred million dollars. Federal research in reading 
instruction has concluded that phonemic awareness, direct systematic 
instruction in sound-spelling correspondences, blending of sound-
spellings into words, reading comprehension, and regular exposure to 
interesting books are essential components of any balanced reading 
program.
    ``(b) Sense of Congress.--It is the sense of Congress that--
            ``(1) federally funded education programs which are 
        designed to improve reading skills, should use instructional 
        practices that are grounded in scientifically based research as 
        defined in section 14101(26) of this Act;
            ``(2) reducing the reading deficit is one of the most 
        critical tasks before the nation; and
            ``(3) successful learning in all other areas such as 
        science, history, literature, business and vocational training 
        or computer science requires the ability to read fluently and 
        with comprehension.

``SEC. 14615. SCIENCE ASSESSMENT.

    It is the sense of Congress that State and local assessments in 
science should measure a student's ability to--
            (1) understand scientific facts, results, and concepts;
            (2) design and conduct experiments;
            (3) make arguments based on evidence and data; and
            (4) communicate scientific information.''.

SEC. 602. REPEALS.

    The following provisions are repealed:
            (1) Goals.--Parts A and C of title II and title VI of Goals 
        2000: Educate America Act.
            (2) ESEA.--Part G of title X and title XI of the Elementary 
        and Secondary Education Act of 1965.

SEC. 603. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect on 
October 1, 2000, or the date of enactment of Education OPTIONS Act, 
whichever occurs later.
                                 <all>